HALF-YEARLY FINANCIAL REPORT JUNE 30, 2008

Transcription

1 HALF-YEARLY FINANCIAL REPORT JUNE 30, 2008 Copies of this document are available at no expense from the headquarters of Banque Fédérative du Crédit Mutuel. The document may also be downloaded electronically from the issuer s website Banque Fédérative du Crédit Mutuel Société Anonyme (Public limited company) with a capital of 302,192,250 Headquarters: 34 rue du Wacken B.P Strasbourg Cedex Telephone: Telegraph address: CREDIMUT Telex: CREMU X F Fax: SWIFT address: BFCM FR 2A R.C.S. Strasbourg B

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3 CONTENTS Chapter I Responsible persons Responsible for the half-yearly financial report Certificate of responsible person... 4 Chapter II INFORMATION ON TRENDS The forward looking declaration on the BFCN prospects Known trends, uncertainty or request or any engagement or event reasonably likely to materially influence the prospects of the issuer for at least the current financial year... 5 Chapter III HALF-YEARLY FINANCIAL STATEMENTS Intermediate half yearly information Half yearly activity report Condensed consolidated financial statements... 9 Chapter IV REPORT OF THE STATUT ORY AUDITORS ON THE FINANCIAL STATEMENTS AFTER LIMITED EXAMINATION OF THE HALF-YEARLY ACCOUNTS...32 Chapter V DOCUMENTS AVAILABLE TO THE PUBLIC Documents available to the public Person responsible for information

4 Chapter I Responsible persons 1.1. Responsible person for the half-yearly financial report Mr. Michel LUCAS, Director General, Banque Fédérative du Crédit Mutuel Certificate of responsible person I certify that to the best of my knowledge the condensed financial statements for the past six months have been drawn up in accordance with the applicable accounting standards, and give a faithful image of the assets, financial situation, and earnings of the company and of the companies included in the consolidation, and that the half-yearly activity report attached is a faithful representation of the important events occurring in the first six months of the financial year, of their effect on the financial statements, of the main transactions between the related parties and a description of the major risks and uncertainties for the remaining six months of the financial year. Signed in Strasbourg, August 4, 2008 Managing Director Michel LUCAS - 4 -

5 Chapter II INFORMATION ON TRENDS 2.1. Forward-looking declaration on BFCN prospects Outlook for 2008: During the last twelve months, the crisis in the financial markets has had increasingly extensive effects. Tensions in the inter-bank market and on interest rates have made for tougher general terms for financing economic activity, to an extent such that the crisis has now spread to segments beyond the North American residential property market and its mechanisms of finance. The financial markets more generally have been affected. Share prices have fallen almost every where, and reduced liquidity affects a number of trading compartments. These factors had a highly unfavorable impact on the CIC branch in New York, and on the group's market activities, which reported negative net banking income. Such unfavorable trends, if they persist or become more pervasive, are liable to lead to lower earnings for the group in Known trends, uncertainties, demands, engagements or events reasonably likely to materially influence the prospects of the issuer for the current financial year and possibly beyond In this context, the main risk factors liable to influence the level of earnings for the financial year in progress are: Increase in counter party risks for customers and banks; Tougher terms of access by the group to refinancing (lack of liquidity in the inter-bank markets and higher interest rates); Loss of value in market positions. These elements are in greater part due to the macro-economic developments characteristic of the crisis in the financial markets, and which are difficult at this point in time to identify with precision

6 Chapter III HALF-YEARLY FINANCIAL STATEMENTS 3.1. Intermediate half yearly information Half yearly activity report BFCM Group comment on activity and results of 1 st half 2008 Difficult economic environments for the banking industry The crisis in the financial markets, which originally affected only the sub prime compartment, has gradually become more pervasive and multiform. The extremely adverse conditions in the financial markets have been accompanied by a contraction in lending, while inflationary risks have come to the fore again. This environment has caused great difficulty to the banks in their trading activity and operations. The difficulties they face in refinancing and their substantial asset write-downs have further adversely affected the levels of earnings and the equity of the banking sector. In the United States, the Federal Reserve has had to use all the instruments available to it to avoid a systemic crisis in the financial markets, and has done so by directly organizing the rescue of certain banks and by injecting liquidity into the markets. The conditions under which the banks conduct their business have continued to deteriorate. Inter-bank lending rates remain high, and the costs of long term finance are rising. BFCM activity on behalf of the CM4-CIC group The Banque Fédérative du Crédit Mutuel (BFCM) acts as a holding company and a central point of refinance for the CM4-CIC group. This mission is performed in the first instance on behalf of the four branch networks of the Crédit Mutuel, namely Crédit Mutuel Centre Est Europe, Crédit Mutuel Sud-Est, Crédit Mutuel Ile-de-France and Credit Mutuel Savoie Mont-Blanc(CM4). The sources of funds available to BFCM from deposits of 37.9 billion,* increased by 3.7% compared to year end At the same time, the refinancing of the lending of these networks increased by 6.2% to 53.1 billion*. On the other hand, the deposits held by CIC and its regional banks as up to June 30 amounted to 9.1 billion* and refinance granted amounted to 31.6 billion.* To perform its role as a source of finance for the network, the BFCM issues bonds on the security of its subsidiary CM-CIC Covered Bonds, which are AAA rated by the three main rating agencies. The outstanding debt is 6 billion*, after a further issuance of 1.5 billion* in the first half (* excluding attached receivables or payables). Retail Banking Operations June 30, 2008 June 30, 2007 Change Net banking income 1,636 1,544 +6% Income % (in millions) The retail banking business is mainly in the hands of the CIC group, which continued to develop its network, resulting in: - 6 -

7 - Winning 170,121 new customers (+4.4%), raising its private, professional and corporate customer base to 4,079,399 accounts on June 30, 2008 from 3,909,278 on June 30, 2007; - 16% rise in the total loans to customers ( 88,724 million on June 30, 2008 as against 76,511 million on June 30, 2007); - 16% rise in deposits ( 53,939 million on June 30, 2008 as against 46,376 on June 30, 2007); % increase in the number of contracts in the insurance business from 1,923,696 on June 30, 2007 to 2,227,053 on June 30, 2008 with further growth in services. The Banque de l Economie du Commerce et de la Monétique is a BFCM subsidiary specializing in services to industrial and other players in the real estate sector. In spite of the difficult environment, particularly in the field of financing real estate professionals, business volumes grew strongly in the first half. The development of the corporate market offset the reduction in lending to the real estate markets more generally. The loan book increased by 14% over 6 months, and sources of funds by 11%. Against this backdrop, BECM was able to increase its NBI by 7% as compared to the first half of Overall, the increase in NBI and well-controlled general expenses (+1% compared to first half of 2007), resulted in retail banking sector earnings increasing by 5% to million. Finance Banking and trading activity June 30, 2008 June 30, 2007 Change Net banking income ns Income ns (in millions) The finance banking businesses reported a rise in their NBI from 154 million on June 30, 2007 to 207 million on June 30, Against the backdrop of the crisis in the financial markets, the NBI of the market activities of the BFCM and the CIC stood at 310 million on June 30, 2007 and at million on June 30, Positions have been valued under IFRS at market prices, which were adversely affected by falling stock prices and by the rise in credit spreads in a market whose continuing characteristic has been restricted liquidity, and where prices are not necessarily a reflection of the value of the underlying assets. A return in the market to the conditions and liquidity for securities trading which obtained at year-end 2007, would result in positive NBI. The NBI of the market-related activities of the New York subsidiary of the CIC fell to a negative 224 million on June 30, 2008 as against 11 million in surplus on June 30, This branch possesses a RMBS 1 portfolio of 2.8 billion, 95% comprised of AAA rated securities, of which 37% are guaranteed by the American Federal agencies. The steep deterioration in the conditions of market trading has adversely affected the value of its holdings in securities when marked to market by reference to external broker prices, in a market qualified as "illiquid." Insurance June 30, 2008 June 30, 2007 Change Income % The insurance business is operated by the Groupe des Assurances du Crédit Mutuel (GACM) and its subsidiaries. Income stated under IFRS from the insurance business was broadly unchanged as compared to the first half of 2007, in spite of premium income easing down by 13.4%. 1 RMBS: Residential mortgage backed securities

8 The decline in consolidated premium income was more especially the consequence of lower inflows of life assurance premiums, which fell by 23.4%. At the same time, GACM reported excellent progress in its other insurance businesses. Its property and casualty insurance business premium income rose by 12.2%. Growth was supported in the first half by the transfer, from Suravenir Assurance to ACM IARD SA, of the non-life business of the Fédération de Crédit Mutuel de Loire Atlantique and the Centre Ouest. The transfer was approved by the Comité des Entreprises d'assurance (Comittee of Insurance Companies) on the June 19, 2008, and took effect on January 1, Correlatively, GACM withdrew as a shareholder of Suravenir Assurance, a company in which it had held a 34% stake. The value of the financial assets and the shadow accounting as provided for under IAS 39 and IFRS 4 negatively affected earnings in the amount of 30 million. General expenses increased by 8.1% overall. The technical results of the various branches were good and contributed to stable levels of income, further supported by sound trends in the fundamentals of the business. Other sectors and results of the BFCM group Private banking NBI increased slightly to 225 million as at June 30, 2008, from 223 million on June 30, In the financial markets, which were affected by a crisis of confidence, the group's asset management businesses on behalf of high net worth individuals continued to achieve organic growth in the first six months of As a result of the completion of extraordinary non-recurrent transactions in the previous financial year, private equity NBI, which stood at 318 million on June 30, 2007, fell to 77 million on June 30, 2008, On June 30, 2008, the all-inclusive NBI of the BFCM group stood at 2,143 million as against 3,010 million on June 30, Operational expenses fell to 1,595 million on June 30, 2008 from million in June The cost of risk rose from 64 million to 142 million. Overall net income was 354 million (as against 990 million in the first half of 2007), of which 273 million attributable. Consolidated book shareholder's equity was 10.7 billion (not including super subordinated securities). Given this financial solidity, BFCM was able early in July 2008 to enter into an exclusive contract for the acquisition at year-end 2008 of the Citibank German banking network, and early in June, to acquire Banco Popular France. CIC was also able, at the end of March 2008, to raise its business profile in Morocco by increasing its stake in Banque Marocaine du Commerce Extérieur (BMCE) from 10% to 15%

9 3.1.2 Condensed consolidated financial statements The consolidated financial statements presented below were drawn up under IAS

10 FINANCIAL STATEMENTS BALANCE SHEET Notes in millions of euros Cash, cash equivalent due from central Banks Financial assets at fair value through profit or loss Derivative hedging instruments - Assets Available-for-sale financial assets Loans to and receivables from credit institutions Loans to and receivables from customers Interest rate hedged portfolio - revaluation difference Financial assets held to maturity Current taxation 12a Deferred taxation 12b Regularization accounts and other assets Shareholdings in companies consolidated by equity method Investment properties Tangible assets and real estate leasing Intangible assets Goodwill Total assets

11 BALANCE SHEET LIABILITIES Notes in millions of euros Due to central Banks Financial liabilities at fair value through profit or loss 20a Hedging instruments - liabilities Due to credit institutions Customer deposits Securitized debt payables Interest rate hedged portfolio revaulation difference Current taxation 12a Deffered taxation 12b Regularization accounts and other liabilities Technical provisions for insurance contracts Provisions for contingencies and liabilities Subordinated debt Shareholders' equity Shareholders' equity - Group share Capital paid up Additional paid-in capital Consolidated reserves Unrealized or deferred gains or losses Profit for financial year Shareholders' equity - Minority interests Total liabilities

12 PROFIT AND LOSS STATEMENT Notes June 30, 2008 June 30, 2007 Dec 31, 2007 in millions of euros Interest,income and equivalent Interest,expense and equivalent Commissions (income) Commissions (expenses) Net profit on financial operations Net gains or losses on portfolios at fair value through profit or loss Net gains or losses on available-for-sale financial assets Income from other activities Net banking income General operating expenses Depreciation and amortization Gross operating profit Cost of risk Operating profit Interest on net profit of companies consolidated by equity method Net gains or losses on other assets Profit before tax Corporate income tax Total net profit Consolidated profit - Minority interest NET PROFIT

13 CASH FLOW STATEMENT In millions of euros 1st half 1st half Full year Net profit Tax Profit before tax Plus or minus net allowance for amortisation of tangilble and intangible assets Minus impairment of goodwill and depreciation of other fixed assets Plus or minus net provisions Plus or minus share in profit of companies consolidated by the equity method Net gains or losses on investment activities (Plus) or minus (Income) / expenses of financing activities Plus or minus other movements Equals Total non-monetary items included in net profit before tax and other adjustments Cash inflow/outflow relatiing to interbank transactions (*) Cash inflow/outflow relating to customer transactions (*) Cash inflow / outflow relating to transactions related to other financial assets or liabilities (*) Cash inflow/outlfow relating to transactions related to other non-financial assets or liabilities Minus tax paid Equals net decrease/(increase) in cash related to operating assets and liabilities NET CASH FLOW RELATED TO OPERATING ACTIVITIES (A) Cash inflow/outflow relating to aquisition and disposal of financial assets and long term investments (*) Cash inflow/outflow relating to investments in real estate (*) Cash inflow/outflow relating to tangible and intangible assets (*) NET CASH FLOW RELATED TO INVESTMENT ACTIVITIES (B) Cash flow from / to shareholders (*) Other net cash flows arising from financing activities (*) TOTAL NET CASH FLOW RELATED TO FINANCING ACTIVITIES ( C ) EFFECT OF CHANGES IN FOREIGN CURRENCY ON CASH AND CASH EQUIVALENTS ( D ) Net inlfow (outflow) in cash and cash equivalents (A + B + C + D) Net cash flow generated by operating activities (A) Net cash flow generated by investment activities (B) Net cash flow related to financing activites ( C ) Effect of change in foreign currency on cash and cash equivalent (D) Cash and cash equivalents at start of year Cash accounts and accounts with central banks (assets and liabilities) Net balance of accounts, demand deposits and loans with banks Cash and cash equivalent at end of year Net balance of cash accounts and accounts with central banks Net balance of cash accounts, demands/deposits and loans with banks NET CASH FLOW VARIATION

14 CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY Shareholders' equity, group share Capital Additional Reserves + / - deferred Profit Total paid-in (1) values of capital AFS assets Minority interests (2) Balance as at January 1, Consolidated profit Appropriation of profit from previous financial year Dividend distribution Capital increase Change in foreign currency translation Change in fair value of AFS assets (2) Effects of change of scope of consolidation Balance as at December 31, Balance as at January 1, Consolidated profit Appropriation of profit from previous financial year Dividend distribution Capital increase Change in foreign currency translation Change in fair value of AFS assets (2) Effects of changes in scope of consolidation Solde au (1) Reserves as of December 31, 2007 in the amount of 108 million for the legal reserve, of 891 million for reserves required by company statutes (objects and articlesof association), and 5,909 million other reserves. (2) AFS: Available for sale 14

15 INFORMATION ON BALANCE SHEET AND PROFIT AND LOSS STATEMENT The notes are presented in millions of euros NOTE 1 - Principles and accounting methods The principles and accounting methods are identical to those applied in the close-out of the financial year ending December 31, They have been drawn up in line with the accounting framework of the International Financial Reporting Standards (IFRS) as adopted by the European Union on June 30, This IFRS framework inclcludes standards IAS 1 to 41, IFRS 1 to 7 and their SIC and IFRIC interpretations adopted on the same date. The summary documents are presented according to the recommendation CNC 2004-R.03. The European Union did not adopt any new standards in the first half of The following new standards and interpretations were adopted in 2007, but were not applied in the first half of 2008: IFRS 8 "Operating segments" whose mandatory date of application is January 1, 2009 and IFRIC 11 to be applied from January 1, 2009, being without effect on the financial statements. These intermediate financial statements have been drawn up in accordance with the standard IAS 34 relating to intermediate financial information enabling the publication of condensed financial statments. These financial statements are supplementary to the financial statements for the financial year ending December 31, 2007 presented in the reference document The group's business is not seasonal or cyclical in nature. Estimates and hypotheseses may have been made at the time of assessment of elements in the balance sheet. NOTE 2 - Breakdown of balance sheet and profit and loss statement by activity and geographical zone Activities are as follows: The retail bank includes the network of regional banks and CIC Ile-de-France, as well as all the specialist businesses selling products through the network, including real estate and equipment leasing, factoring, mutual fund management, employee trust fund (épargne salariale ) and real estate. The insurance business is handled by the Crédit Mutuel insurance group. The finance and market activities include: a) financing major companies and institutional customers, specialist finance, international and foreign subsidiaries; b) market activities in the wider sense of the word, i.e. including interest rate and foreign exchange transactions and equities, whether exercised on behalf of customers or on own account, including market intermediation. Private banking activities including companies whose primary purpose is private banking, both in France and abroad. Private equity exercised on own account and financial engineering make up a separate arm of the business. The holding structure covers elements not allocated to specific business lines and logistics organizations, including intermediate holding companies, real estate occupied by the bank for its business use, lodged in specific entities, as well as IT entities. The consolidated entities are shown as wholly attached to their main business lines, and by their contiribution to their consolidated financieal statements. The only exceptions are two entities, CIC and BFCL, which operate across several business lines. In this case, parent company financial statements reflect these analytically under differentiated headings, the same principles applying to the balance sheet. Breakdown of profit and loss statement by activity June 30, 2008 retail insurance finance private private structure inter Total banking and markets banking equity and holding activities Net Banking Income General expenses Gross operating profit Cost of risk Gain on other assets* Profit before tax Corporate income tax Net book profit Minority interests 81 Attributable net profit 273 June 30, 2007 retail insurance finance private private structure inter Total pro forma banking and markets banking equity and holding activities Net Banking Income General expenses Gross operating profie Cost of risk Gain on other assets* Profit before tax Corporate income tax Net book profit Minority interests 128 Attributable net profit 862 * including net profit of entities consolidated by the equity method and goodwill impairment June 30, 2007 retail insurance finance private private structure inter Total published banking and markets banking equity and holding activities Net Banking Income General expenses Gross operating profie Cost of risk Gain on other assets* Profit before tax Corporate income tax Net book profit Minority interests 128 Attributable net profit 862 * including net profit of entities consolidated by the equity method and goodwill impairment 15

16 Breakdown of balance sheet by geographical zones ASSETS France Europe Other Total France Europe Other Total outside France coutnries* outside France countries* Cash and cash equivalent, due from Central Banks Financial assets at fair value through profit or loss Financial hedging instruments - Assets Available-for-sale financial assets Loans to and borrowing from credit institutions Loans to and liabilities with respect to customers Financial assets held to maturity Shareholdings in companies consolidated by the equity method Liabilities France Europe Other Total France Europe Other Total outside France coutnries* outside France countries* Due to Central Banks Fiancial liabilities at fair value through profit and loss Derivative hedging instruments - Liabilities Due to credit institutions Customer deposits Securitized debt payables * USA, Singapore, Tunisia and Morocco Breakdown of profit and loss statement by geographical zone June 30, 2008 June 30, 2007 France Europe Other Total France Europe Other Total outside France coutnries* outside France countries* Net Banking Income General expense Gross operating profit Cost of risk Gains on other assets** Net book profit Overall net profit Attributable net profit * USA, Singapore, Tunisia and Morocco ** including net profit of entities consolidated by the equity method and goodwill impairment 16

17 NOTE 3 - Scope of consolidation In accordance with the opinion of the Banking Commission, the group parent company is made up of the companies in the scope of consolidation. The entities making up the group are: - Fédération du Crédit Mutuel Centre Est Europe (FCMCEE), - Fédération du Crédit Mutuel du Sud-Est (FCMSE), - Fédération du Crédit Mutuel d'ile-de-france (FCMIDF), - Fédération du Crédit Mutuel de Savoie-Mont Blanc (FCMSMB), - Caisse Fédérale du Crédit Mutuel Centre Est Europe (CFCMCEE), - Caisse Régionale du Crédit Mutuel Sud-Est (CRCMSE), - Caisse Régionale du Crédit Mutuel Ile-de-France (CRCMIDF), - Caisse Régionale du Crédit Mutuel de Savoie-Mont Blanc (CRCMSMB), - Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Centre Est Europe, - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Sud-Est. - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Ile-de-France - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel de Savoie-Mont Blanc - le Cautionnement Mutuel de l'habitat (CMH) Par rapport au 31 décembre 2007, les changements concernant le périmètre de consolidation sont : entrées du périmètre : Banco Popular France, Agefor SA Genève, Alternative Gestion SA Genève, Calypso Management Company, IPO Ingénierie, LRM Advisory SA, Pasche SA Montevideo, Serficom Family Office Inc, Valeroso Management Ltd sorties du périmètre : CM-CIC Mezzanine, Suravenir Assurances fusions : Financière Armen avec IPO Sociétés Percentage Method Percentage Method Control Interest * Control Interest * A. Banking network Banque de l'economie du Commerce et de la Monétique FC FC Banque du Crédit Mutuel Ile-de-France (BCMI) FC FC CIC Banque CIO - BRO CIC FC FC CIC Banque Scalbert Dupont - CIN CIC FC FC CIC Bonnasse Lyonnaise de Banque (BLB) CIC FC FC Crédit Industriel et Commercial (CIC) CIC FC FC CIC Lyonnaise de Banque (LB) CIC FC FC CIC Société Bordelaise (SBCIC) CIC FC FC CIC Est (ex Société Nancéienne Varin Bernier) CIC FC FC Banco Popular France FC NC B. Subsidiaries of banking network SCI La Tréflière EM EM SOFEMO - Société Fédérative Europ.de Monétique et de Financement FC FC Banque de Tunisie CIC EM EM CM-CIC Asset Management (ex Crédit Mutuel Finance) FC FC CM-CIC Epargne salariale (ex CIC Epargne salariale) CIC FC FC CM-CIC Bail (ex Bail Equipement) CIC FC FC CM-CIC Bail Belgium CIC FC FC CM-CIC Gestion CIC FC FC CM-CIC Lease CIC FC FC Factocic CIC FC FC CM-CIC Laviolette Financement CIC FC FC Saint-Pierre SNC CIC FC FC SNVB Financements CIC FC FC Sofim CIC FC FC CM-CIC Covered Bonds FC FC C. Finance, banking and trading activities Ventadour Investissement FC FC Cigogne Management CIC FC FC CM-CIC Mezzanine CIC NC FC CM-CIC Securities CIC FC FC D. Private banking Agefor SA Genève CIC FC NC Alternative Gestion SA Genève CIC FC NC CIC Suisse (ex Banque CIAL Suisse) CIC FC FC Banque de Luxembourg CIC FC FC Banque Pasche (Liechtenstein) AG CIC FC FC Banque Pasche Monaco SAM CIC FC FC CIC Private Banking - Banque Pasche CIC FC FC CIC Banque Transatlantique CIC FC FC Banque Transatlantique Belgium CIC FC FC Banque Transatlantique Jersey CIC FC FC BLC gestion CIC FC FC Calypso Management Company CIC FC NC Dubly-Douilhet CIC FC FC GPK Finance CIC FC FC LRM Advisory SA CIC FC NC Pasche (International) Services Ltd Gibraltar CIC FC FC Pasche Bank & Trust Ltd Nassau CIC FC FC Pasche Finance SA Fribourg CIC FC FC Pasche Fund Management Ltd CIC FC FC Pasche International Holding Ltd CIC FC FC Pasche SA Montevideo CIC FC NC 17

18 Companies Percentage Method Percentage Method Control Interest * Control Interest * Banque Transatlantique Luxembourg (ex Mutual Bank Luxembourg) CIC FC FC Serficom Family Office Inc CIC FC NC Serficom Family Office SA CIC FC FC Serficom Maroc SARL CIC FC FC Transatlantique Finance CIC FC FC Valeroso Management Ltd CIC FC NC E. Private equity CIC Finance CIC FC FC CIC Investissement (ex CIC Capital Développement) CIC FC FC CIC Investissement Alsace (ex Finances et Stratégies) CIC FC FC CIC Investissement Est (ex SNVB Participations) CIC FC FC CIC Investissement Nord (ex CIC Régions Expansion ) CIC FC FC CIC Vizille Participation (ex CIC Lyonnaise de Participations) CIC FC FC Financière Ar men CIC MER FC Financière Voltaire CIC FC FC Institut de Participations de l'ouest (IPO) CIC FC FC IPO Ingénierie CIC FC NC Sudinnova CIC FC FC CIC Banque de Vizille CIC FC FC Vizille Capital Finance CIC FC FC Vizille Capital Innovation CIC FC FC F. Structure and logistics CMCP - Crédit Mutuel Cartes de Paiement EM EM Euro-Information EM EM Adepi CIC FC FC CIC Migrations CIC FC FC CIC Participations CIC FC FC Cicor CIC FC FC Cicoval CIC FC FC Efsa CIC FC FC Gesteurop CIC FC FC Gestunion 2 CIC FC FC Gestunion 3 CIC FC FC Gestunion 4 CIC FC FC Impex Finance CIC FC FC Marsovalor CIC FC FC Pargestion 2 CIC FC FC Pargestion 3 CIC FC FC Pargestion 4 CIC FC FC Pargestion 5 CIC FC FC Placinvest CIC FC FC Sofiholding 2 CIC FC FC Sofiholding 3 CIC FC FC Sofiholding 4 CIC FC FC Sofinaction CIC FC FC Ufigestion 2 CIC FC FC Ufigestion 3 CIC FC FC Ugépar Service CIC FC FC Valimar 2 CIC FC FC Valimar 4 CIC FC FC VTP 1 CIC FC FC VTP 5 CIC FC FC G. Insurance companies ACM IARD GACM FC FC ACM Nord IARD GACM EM EM ACM Vie GACM FC FC Serenis Assurances (ex Assurances du Sud) GACM FC FC Astree GACM EM EM Euro Protection Services GACM FC FC Foncière ACM (ex ACM Retraite) GACM FC FC Groupe des Assurances du Crédit Mutuel (GACM) GACM FC FC ICM Life GACM FC FC ICM Ré GACM FC FC Immobilière ACM GACM FC FC Partners GACM FC FC Procourtage GACM FC FC SCI Socapierre GACM FC FC Serenis Vie (ex Télévie) GACM FC FC Suravenir Assurances GACM NC EM RMA-Watanya GACM EM NC 18

19 Companies Percentage Method Percentage Method Control Interest * Control Interest * H. Other companies ACM GIE GACM FC FC ACM Services GACM FC FC Massena Property GACM FC FC Massimob GACM FC FC SA Saint Germain GACM FC FC SCI ADS GACM FC FC SNC Fonciere Massena GACM FC FC CIC = Company belonging to the sub-group of Compagnie Financière CIC GACM = Company belng to the sub-group of Groupe des Assurances du Crédit Mutuel * Method: FC = Full Consolidation PC = Proportional Consolidation EM = Equity Method NC = Non Consolidated MER = Merged NOTE 4 - Cash, cash equivalent, Central Banks Loans to and receivables from credit institutions Cash, cash equivalent, Central Banks Central Banks of which mandatory reserves Cash, cash equivalent TOTAL Loans to and receivables from credit institutions Crédit Mutuel network accounts Other ordinary accounts Loans Other receivables Securities not listed in an active market Loan of securities Individually impaired receivables 8 12 Attached receivables Provisions -8-8 TOTAL NOTE 5 - Financial assets at fair value through profit or loss.securities Government securities Bonds and other fixed income securities Listed Unlisted Securities and other variable income securities Listed Unlisted Derivative instruments Other financial assets of which securities loaned 0 0 TOTAL NOTE 6 - Hedging derivative instruments Assets Liabilities Assets Liabilities. Cash flow Hedge value change recorded in shareholders' equity value change recorded in profit and loss Fair value hedging (change recorded in P&L total) TOTAL

20 Analysis of derivative instruments June 30, 2008 Dec 31, 2007 Notional Assets Liabilities Notional Assets Liabilities Derivative instruments Interest rate instruments Swaps Other firm contracts Options and conditional instruments Forex instruments Swaps Other firm contracts Options and conditional instruments Other than interest rate and forex swaps Swaps Other firm contracts Options and conditional instruments Sub-total Derivative hedging instruments Fair Value Hedge Swaps Other firm contracts Options and conditional instruments Cash Flow Hedge Swaps Other firm contracts 0 0 Options and conditional instruments 0 0 Sub-total TOTAL NOTE 7 - Available-for-sale financial assets. Government securities Bonds and other fixed income securities Listed Unlisted Equities and other variable income securities Listed Unlisted Capitalized securities Securities held for sale Other long term securities Shares in affiliated companies Attached receivables TOTAL Of which listed shareholdings Some of the equity lines held have a market price substantially below their cost price. Given the current special conditions in the equity markets, the group has not yet considered that the observable fall in share prices was in practice of a long-term nature. This position will be re-examined between now and the end of the financial year, depending on the observed changes in the financial markets. NOTE 8 - Loans to and receivables from customers Sound loans and receivables Commercial lending Other lending to customers home purchase lending other lending and receivables including securities lending Attached receivables Securities not listed in an active market Individually impaired receivables Provisions SUB TOTAL I

21 Finance leasing (net investment) Equipment, plant machinery Real estate Individually impaired receivables Provisions SUB TOTAL II Reinsurance receivables TOTAL of which equity loans 0 0 of which subordinated loans Lease finance transactions with customers Operating Acquisition Disposal Other Close Gross book value Write-down of unrecoverable installments due Net book value NOTE 9 - Interest rate hedged portfolio valuation difference Description of assets and liabilities hedged, and hedging instruments Fair value Change in fair value Fair value of interest rate risk by portfolio. Financial assets Financial liability NOTE 10 - Financial assets held to maturity.securities Government securities Bonds and other fixed income securities Listed Unlisted Attached receivables 5 6 TOTAL GROSS Provisions for depreciation 0-3 TOTAL NET NOTE 11 - Change in provisions for impairment Dec 31, 2007 Allowance Write-back Other June 30, 2008 Loans to and receivables from credit institutions Loans to and receivables from customers Available-for-sale securities Held-to-maturity securities Total NOTE 12 a - Current taxation Assets P/L Liabilities P/L NOTE 12 b - Deferred taxation Assets P/L Assets (by shareholders' equity) Liabilities P/L Liabilities (by shareholders' equity)

22 NOTE 13 - Regularization account and other assets Regularization account assets Securities received on account of settlement Foreign currency adjustment accounts 25 6 Accrued assets Other regularization accounts Sub-total Other assets Other security settlements accounts / transaction accounts Other receivables Inventory and equivalent 1 0 Other uses -3-4 Sub-total Other insurance assets Insurance and re-insurance receivables TOTAL NOTE 14 - Shareholdings in companies consolidated by the equity method Interest in net profit of companies consolidated by the equity method Equitable Profit percent Equitable Profit percent interest contribution interest contribution Banque de Tunisie SCI Tréflière CMCP Euro Information Subsidiaries of GACM sub-goup Of which RMA Watanaya Of which Suravenir* 31 7 Of which ACM Nord Of which ASTREE TOTAL *Disposal outside group NOTE 15 - Investment properties Value at beginning of financial year Increase Decrease Other changes Value at end of financial year Historic cost Amortization and depreciation Net value NOTE 16 - Tangible assets Basic accounting procedure Value at beginning of financial year Increase Decrease Other changes Value at end of financial year Historic cost Land for own business operations Buildings for own business operations Other tangible fixed assets Total Amortization and depreciation Land for own business operations Buildings for own business operations Other tangible fixed assets Total Net value NOTE 17 - Intangible assets Dec 31, 2007 Acquisitions Disposals Other changes June 30, 2008 Historic cost. Assets acquired software other Total Amortization and depreciation. Assets acquired software other Total Net value

23 NOTE 18 - Goodwill Subsidiaries Dec 31, 2007 Increase Decrease Other change June 30, 2008 Groupe CIC IPO Pérénnité 0 0 Banque du Luxembourg Groupe ACM 8 8 Sous-groupe ACM Banque Transatlantique 6 6 Banque Pasche GPK Finance Banco Popular France* Other 7 7 TOTAL (*) In accordance with IFRS 3, goodwill has been provisionally calculated on the basis of the net book value of the asset and will be readjusted on the basis of the fair value of assets and liabilities NOTE 19 - Central banks Due to credit institutions Central banks Central banks CCP 0 0 Total Debt to credit institutions Borrowing Other debts Securites lending Attached debt Total NOTE 20 a - Financial liabilities on securities at fair value through profit or loss Financial liabilities on securities held for trading purposes Financial liabilities on securities assessed by fair value through profit or loss TOTAL NOTE 20 b - Financial liabilities on securities held for trading purposes.short sale of securities - Government securities Bonds and other fixed income securities Equities and other variable income securities Trading derivatives Other financial liabilities held for trading purposes TOTAL NOTE 20 c - Financial liabilities on securities assessed by fair value hedges.securities issued - Bonds Certificates of deposit Other Liabilities arising from securities loaned with obligation to repurchase Subordinated debt 0 0. Liabilities inter-bank to customers 0 1. Other fair value hedge liabilities 0 0 TOTAL

24 NOTE 21 - Customer deposits. Special savings accounts instant access or on demand deposits term deposits Liabilities attached to savings accounts Sub-total Ordinary accounts Term accounts and borrowings Securities lending Reinsurance liabilities Attached debt Sub-total TOTAL NOTE 22 - Securitized debt payables Short term lending TMI & TCN Bonds Attached liabilities TOTAL NOTE 23 - Regularization accounts and other liabilities Regularization accounts - liabilities Accounts unavailable due to debt recovery proceedings Foreign exchange adjustment accounts Expenses payable Other regularization accounts Sub-total Other liabilities Accounts booking securities / transaction settlements Settlements outstanding on securities transactions Other creditors Sub-total Other insurance liabilities Other insurance liabilities 0 0 Insurance and reinsurance debt 0 0 Due to credit institutions, depostis and pledges received Sub-total TOTAL NOTE 24 - Technical provisions on insurance contracts Life Non-life Units of account Other TOTAL NOTE 25 - Provisions for contingencies and liabilities Opening balance Write-back for Allowance for financial year financial year (provisions used Write-back for financial year Other changes (provisions not used) Balance at close Provisions for counterparty risk - on commitments by signature on finance and guarantee commitments on country risks provision for risk on other receivable Other provisions for counterparty risk Provisions for risks other than counterparty risks - provisions for post-employment benefits provisions for disputes provision épargne logement home purchase savings schemes provision tax provisions for other contingencies Other provisions for contigneies and liabilities* TOTAL (*) Other provisions for contingences and liabilities include provisions on GIE enterprise groupings in the amount of 60 million 24

25 Commitments on post-employment benefits and similar Defined benefit pension commitments and equivalent, outside standard caisses de retraite Opening balance Allowance for Write-back for financial year financial year Other variations Balance at close pensions schemes End of career indemnity Top-up pensions Bonuses related to médailles du travail (Length of service bonus and other equivalents) Sub-total Defined benefit pension commitments provided by group pensions schemes Provisions for shortfalls in pension schemes and equivalent Sub-total Commitments with respect to early retirement of employees Commitments Sub-total TOTAL In the calculation of post-employment benefits and equivalent, the assumption is made of a discount rate equal to the long tem yield on government bonds. These assumptions are reviewed annually and by country, taking into consideration regulatory conditions The AFB industry branch agreement of March 29, 2005 and the law on social security finance of 2007 promulgated on December 22, 2006 formed part of this review. NOTE 26 - Subordinated debt Subordinated debt Equity loans Non-fixed term subordinated debt Other debt 0 0 Attached debt TOTAL Main subordianted debt Type Date Amount Amount Rate Maturity Issuance Issuance end of year Banque Fédérative du Crédit Mutuel TSR 50 M 50 M 5, Banque Fédérative du Crédit Mutuel TSR 700 M 700M 6, Banque Fédérative du Crédit Mutuel TSR 800 M 800 M 5, Banque Fédérative du Crédit Mutuel TSS 1600 M 1600 M indéterminate Banque Fédérative du Crédit Mutuel TSR M 1000 M g Banque Fédérative du Crédit Mutuel TSR M 300 M h Banque Fédérative du Crédit Mutuel TSR M 300 M i CIC TSR M 300 M a CIC TSR M$ 350 M$ b CIC Participatif M 137 M c d CIC TSDI M 200 M e CIC TSDI M 550 M f a Euribor 3 months basis points b Libor USD 6 months + 55 basis points c Minimum 85% (TAM+TMO)/2 Maximum 130% (TAM+TMO)/2 d Non amortizable, but reimbursable at borrower discretion with effect from May 28,1997 at 130% nominal revalued by 1.5% annually for subsequent years e Euribor 6 months basis points f Euribor 6 months increased by 107 basis points in the first ten years and for the following years and failing early redemption increased by 207 basis points. g Euribor 3 months + 25 basis points h Yield on state borrowing basis points i Yield on state borrowing plus basis points NOTE 27 - Shareholders' equity - attributable share. Capital Consolidated reserves Reserves, regulated Reserves for foreign currency translation Other reserves (Including effects of first application) Retained earnings -2 0 TOTAL Profit Sub-total Unrealised gains of losses or deferred gains or losses* related to: - Available-for-sale assets Hedging derivatives 0 0 Sub-total TOTAL * balance net of corporate income tax. 25