RA 2004 GB_Partie 1 19/09/05 10:28 Page 1 Annual report Table of contents

Transcription

1 Annual report 2004

2 Crédit Mutuel Group annual report 2004

3 Crédit Mutuel Group annual report 2004 Table of Contents Chairman s statement...8 CNCM Board of Directors...10 Profile and structure of the CM CIC Group...12 Crédit Mutuel-CIC: a profitable development strategy Key figures and Results...16 Sustained activity...19 Resources to support growth...24 Network support services: insurance...27 consumer credit...28 asset management and depository business...29 private banking...30 financing and capital markets...31 real estate financing...32 leasing and rental finance...32 factoring...33 development capital...33 Crédit Mutuel: THE mutual banking group...34 A decentralised organisation...36 Cooperation aimed at socially responsible development...39 Product and services for all economic players: personal banking clients...48 self-employed professionals and corporates...54 agricultural sector...58 associations...60 local administrative authorities...62 Financial management report...64 Results and financial statements of the CM-CIC...66 Balance sheet...74 Profit & loss account...78

4 Crédit Mutuel Group annual report

5 Crédit Mutuel Group annual report 2004 The Chairman s statement In 2004, the Crédit Mutuel group continued to expand profitably and serve its corporate stockholders and customers while strengthening its financial position. As a result of high levels of activity combined with effective risk management, the group improved its results, in particular in retail banking where it remains the 2nd largest bank in France. This essential component of the group s business accounts for 87% of its stable income, including insurance, and contributes 78% to pre-tax profit. The group has improved its productivity and developed new synergies along with CIC, subsidiary of Banque Fédérative du Crédit Mutuel, and continued streamlining the subsidiaries and specialised platforms. The convergence of the group s IT systems was completed in 2004, with only two systems now remaining for the whole network of Crédit Mutuel and CIC banks. This will enable the group to achieve new productivity gains, which have already meant a 5 point reduction in the cost-to-income ratio over the past five years. At 65.9%, this ratio is one of the best on the Paris market.

6 The net income attributable to the group reached 1.5 billion, an increase of 14.6%, after allocating 214 million to the fund for general banking risks. Shareholders funds attributable to the group rose by 11.2% to total 18 billion euros. Dedicated to its 13.8 million members and customers, the group s development strategy relies on a network of 4,990 branches and the expertise of its 56,760 employees. The local presence of this network the 2 nd largest in France combined with decision-making autonomy closer to customers makes for a top-quality relationship, also based on availability and dialogue plus advice on new products and services. These excellent customer relationships already acknowledged in the 2003 TNS Sofres award list were confirmed in 2004 as Crédit Mutuel was ranked first in on-line banking services. The group also owes the quality of its products to its expertise and command of new technologies that enable it to offer innovative bancassurance products to more people. While confirming its cooperative identity and democratic governance, with its 24,000 non-remunerated managers elected by 6.5 million members, the group is pursuing its strategy with the aim of further strengthening its position in bancassurance, extending its product range and widening its activities by relying on its skills in financial innovation and technological leadership. These are the bases on which the group intends to build up new relationships with its partners, both in France and abroad. Etienne Pflimlin 9

7 Crédit Mutuel Group annual report 2004 Board of Directors of the national Confederation Chairman Etienne Pflimlin, Chairman of the Centre Est Europe Federation* Deputy Chairman Georges Coudray, Chairman of the Bretagne Federation Vice Chairmen Amand Denieul, Chairman of the Crédit Mutuel Agricole and Rural Federation Bernard Morisseau, Chairman of the Loire-Atlantique and Centre-Ouest Federation Chief Financial Director Philippe Vasseur, Chairman of the Nord Europe Federation Group Secretary Pierre Filliger, Chairman of the Crédit Mutuel Méditerranée Federation * Etienne Pflimlin and Michel Lucas are also, respectively, Chairman of the Supervisory Board and Chairman of CIC Executive Board. Alain Fradin is also Deputy Chairman of CIC Executive Board

8 Other Supervisors Pierre Arrivé, Chairman of the Océan Federation Michel Bokarius, Director of the Centre Est Europe Federation Gérard Bontoux, Chairman of the Midi-Atlantique Federation François Duret, Chairman of the Centre Federation Alain Fradin, Deputy General Manager of the Caisse Fédérale Centre Est Europe* Jacques Kergoat, General Manager of the Caisse Interfédérale de Crédit Mutuel Others Directors Philippe Andru, Vice Chairman of the Bretagne Federation Jean-Louis Boisson, Vice Chairman of the Centre Est Europe Federation Jacques Chombart, Vice Chairman of the Crédit Mutuel Agricole and Rural Federation André Cormier, General Manager of the Nord Europe Federation Gérard Cormorèche, Chairman of the Sud-Est Federation Louis Crusol, Chairman of the Antilles-Guyane Federation Bernard Daurensan, General Manager of the Océan Federation Jean-François Devaux, Chairman of the Massif Central Federation Jean-Louis Girodot, Chairman of the Ile-de-France Federation Michel Guibert, Chairman of the Anjou Federation André Halipré, Vice Chairman of the Nord Europe Federation Daniel Leroyer, Chairman of the Maine-Anjou, Basse Normandie Federation André Meyer, Director of the Centre Est Europe Federation Albert Peccoux, Chairman of the Savoie-Mont Blanc Federation Jean Quintin, Vice Chairman of the Bretagne Federation Jean-Pierre Schneider, General Manager of the Maine-Anjou, Basse-Normandie Federation Paul Schwartz, Vice Chairman of the Centre-Est Federation Alain Têtedoie, Vice Chairman of the Loire-Atlantique and Centre-Ouest Federation Eckart Thomä, Chairman of the Normandie Federation Christian Touzalin, Chairman of the Sud-Ouest Federation Michel Vieux, Chairman of the Dauphiné-Vivarais Federation Pierre Wicker, General Manager of the Loire-Atlantique and Centre-Ouest Federation Honorary Chairman Louis Lichou General Management Michel Lucas, General Manager* Thierry Brichant, Deputy General Manager State Representative Daniel Besson 11

9 Crédit Mutuel Group annual report 2004 Crédit Mutuel-CIC The 2 nd largest retail bank in France Local presence, advice and innovation are the main features of the Crédit Mutuel-CIC group, the 2 nd largest retail bank in France, catering for the needs of 13.8 million customers. Present in every field of finance, the group is a major player on the market of personal banking customers and in the corporate sector. Its main priority is to provide high-quality relationships and services to its members and customers. The group s strategy, focussed on neighbourhood banking, bancassurance and technological leadership, aims at strong, profitable development, with achievements that are acknowledged by the rating agencies. As the world becomes increasingly accessible, the group s ambition is to provide support for its customers wherever they may be. While maintaining its identity and co-operative core values, the group aims to strengthen its position in bancassurance, expand its product line and broaden its activities, relying on its expertise in financial innovation and its technological strength. These are the bases on which it means to build up new relationships with partners, both in France and abroad.

10 Crédit Mutuel-CIC Profile in 2004 Net banking income: 8.8 billion Net income attributable to the group: 1.5 billion Shareholders funds: 18 billion The 2 nd largest retail bank in France 13.8 million customers 56,760 employees 4,990 branches 15.5% market share for loans 12.8% market share for deposits Saving accounts amounting to billion Loan assets amounting to billion New loans amounting to 47.2 billion (including housing loans amounting to 24.4 billion) 1 st ranking in French bancassurance (non-life) 1 st ranking in non-profit associations 2 nd ranking in electronic banking 2 nd ranking in the agricultural sector 4 th ranking in French life insurance Top quality service for all Crédit Mutuel ranks as the number one bank for on-line banking services on the TNS Sofres award list. 13

11 Crédit Mutuel-CIC A profitable development strategy Key figures and results for 2004 Activity Resources to support growth Network support services

12 Crédit Mutuel-CIC Profitable development strategy Crédit Mutuel-CIC Key figures for 2004 As at December 31 st / /2002 in millions in millions in millions Customers 13.2 million 13.5 million 13.8 million Branches 4,929 4,960 4,990 Employees 54,920 56,340 56,760 BANKING OPERATIONS Aggregate level of funds entrusted 286, , , % 15.6% of which customer-related items 126, , , % 14.4% debt securities issued 113, , , % 15.0% insurance-linked savings 46,517 50,183 56, % 20.4% Outstanding loans 143, , , % 14.7% Market share for deposits (%) Market share for loans (%) ASSETS AND SHAREHOLDERS FUNDS Total assets 347, , , % 11.6% Shareholders Funds (after appropriation of income) 14,288 16,342 18, % 27.4% of which attributable to group 14,066 16,152 17, % 27.7% Solvency Ratio (%) Tier One ratio (%) INCOME Net Banking Income 7,967 8,789 8, % 9.9% Operating expenses 5,473 5,634 5, % 5.4% Gross operating income 2,494 3,154 2, % 19.7% Risk-related costs % -35.3% Net Operating income 1,868 2,430 2, % 38.1% Pre-tax net recurring income 1,957 2,481 2, % 34.2% Corporate income tax % 29.6% Net allocation to Fgbr % -10.8% Net income 1,017 1,324 1, % 49.5% Net income attributable to group 981 1,304 1, % 52.3% Operating expenses (1) / Net income (%) Roe (2) (%) Roa (3) (%) (1) - Incl. Amortisations, Group profit-sharing plan and employee savings plan (2) - Net profit + allocation to Fgbr / shareholder s funds as at january 1 st (3) - Net profit + Allocation to Fgbr / total assets 2 nd Largest retail bank in France

13 Crédit Mutuel-CIC Results for 2004 In 2004, the Crédit Mutuel-CIC group maintained its profitable development trend. Despite an extremely competitive, and increasingly regulated environment, net income attributable to the group rose to euros 1.5 billion (+ 14.6%). The results (before allocation to the fund for general banking risks) reached euros 1.7 billion (+ 8.8%). Stronger financial position. After appropriation of income, shareholders funds went up to euros 18.2 billion (+ 11.4%), including euros 18 billion attributable to the group. Return on equity came to 10.6%. The European solvency ratio was 12.4%, a 0.9 point increase, with a 10.5 Tier one ratio (+ 0.9 point). Crédit Mutuel-CIC: income (in euros million) 1,258 1,595 1,735 Standard & Poor s increased the rating prospects of Crédit Mutuel banks from stable to positive (A+; A-1). The ratings of Banque Fédérative du Crédit Mutuel (a holding of Groupe Centre Est Europe, a direct shareholder of CIC) put it among the best rated euro zone banks: Aa3 with Moody s and AA- with Fitch. These results reflect the profitable development strategy of all group entities, especially in retail banking, where the group is ranked the 2nd largest in France. Stronger synergies among the regional groups of Crédit Mutuel as well as with CIC, subsidiary of BFCM, streamlining and pooling of operating platforms and expertise have all proved fruitful in terms of economies of scale and efficient business activity ,304 Crédit Mutuel-CIC: solvency , Results before allocations to FGBR Net income attributable to groupe Solvency ratio Tier one ratio % Net income attributable to group 17

14 Crédit Mutuel-CIC Profitable development strategy The increase in the volume of activity has helped offset the erosion of the brokerage margin and generated an interest margin that rose by 3.4%, to euros 3.8 billion, while the lower results of CIC market activities reduced the margin on securities transactions by 23.6% to euros 1.2 billion. On the other hand, the net income on insurance business was up by 8.4% to euros 1.3 billion and commissions by 4.1% to euros 2.5 billion, representing 34% of net income on banking business. Overall, net banking income remains virtually unchanged at euros 8.8 billion. Crédit Mutuel-CIC: activity (in euros billion) The group has kept the rise in operating expenses under control (+ 2.4% to euros 5.8 billion), as a result of continued substantial investments together with efficient control of operating costs. Personnel expenses increased by 1.1% (including employee savings and profit-sharing plans) for an average of 56,760 employees (+ 0.7%). The increase by almost 2 points, to 65.9%, of the cost-to-income ratio, owing to the stagnation of NBI, did not jeopardise its favourable trend, as it is still almost three points lower than in Risk-related costs were reduced to euros 405 million (- 44.1%), with the result that net operating income increased by 6.2%, to euros 2.6 billion. Pre-tax net recurring income comes out at euros 2.6 billion (+ 5.9%). The Crédit Mutuel network s contribution is 40% and that of all its subsidiaries including CIC and insurance is 60%. The contribution by activity shows the high proportion of retail banking, which provides 55% of net recurring income, followed by insurance the group s 2 nd largest activity with 23%, investment and corporate banking with 16%, asset management, private banking and others for 6% Loans Deposits Crédit Mutuel-CIC: Net banking income 11% 8% 76% 5% Retail Banking Insurance activities Investments & corporate banking Asset management and private banking Net banking income: 76% for retail banking

15 Sustained activity In 2004, growth in France was boosted by household demand. As a result, there was a decline in household savings and an increase in indebtedness, resulting in GDP growth that is higher in France than the euro zone average. Against this background, Crédit Mutuel-CIC pursued its development on its different market segments, in both savings and loans, the latter being underpinned by a low interest rate environment. In this way, the group strengthened its position and gained market shares. At the core of group activity, retail banking with its three activities banking, insurance and technological services remained buoyant. Thanks to the network s dynamic performance, the total number of customers increased to 13.8 million (+ 278,000) including 12.3 million personal banking customers. The 4,990 branches the 2 nd largest network in France provided true neighbourhood services extended and enhanced by a full range of on-line banking products. SAVINGS: a good year The savings activity, while increasing bank deposits, was dominated by pension savings with the launch of Perp (the pension savings plan for low incomes) and the widespread communication campaign focussed on this product. Within the group, the customer s global approach, the range of products and the different promotion campaigns benefited the entire range of savings vehicles ,5% Crédit Mutuel-CIC: Change in savings entrusted The aggregate amount of savings was up by 7.5%, to euros billion, with an increase in each of its elements: deposits (+ 7.2%), financial banking savings (+ 6.2%), financial insurance-linked savings (+ 11.6%). Following the numerous reforms enacted in 2003, deposits continued to attract substantial funds in Net flows (including interest capitalisation) therefore reached euros 9.7 billion. Total deposits increased by 7.2% to euros billion (+ 6.7% in 2003), outperforming the market which enabled the Crédit Mutuel-CIC group to increase its market share to 12.8% (+ 0.3 point). Liquid savings remained high despite the reduction of the rate of household savings in Non-remunerated deposits attracted considerable funds (euros 2.1 billion). Aggregate levels came to euros 40.1 billion (+ 5.4%) accounting for 28% of total deposits pt 12.5% 12.8% Securities issued Insurance-linked savings Deposits Crédit Mutuel-CIC: Market share in deposits CM CIC + 7.5% for total savings Crédit Mutuel-CIC: Activity 19

16 Crédit Mutuel-CIC Profitable development strategy The aggregate level of bankbooks (not including blue passbooks) amounted to euros 25.8 billion (+ 13.2%), making up 18% of deposits. The main element is still ordinary bankbooks with an aggregate level of euros 13.5 billion (+ 19.3%). The Livret bleu (blue passbook) increased by 5.7% of outstanding amounts, reaching euros 16.4 billion (after + 3.5% in 2003). Thanks to active promotion campaigns and the launch by a number of Crédit Mutuel Federations of the Quattro savings product, which combines home buyer saving schemes and consumer credit, total housing savings increased by 4.6% to euros 30.6 billion. Total demand deposits amounted to euros 31.5 billion (+ 8.2%) as a result of the positive movement of the aggregate level of time deposits (+ 12.9%). As expected, total outstandings of the banking Pep, which is no longer marketed since September 2003, went down (- 1.9% to euros 8.4 billion). Insurance-linked savings benefited from the pension savings campaign, the launch of Perp products having also favoured the other life insurance products. The aggregate levels of insurance-linked savings was up by 11.6% to euros 56 billion (+ 7.9% in 2003). The main reasons why savings were channelled towards this vehicle are concern about financing pensions, tax breaks and high yields. Debt securities issued were affected by the launch of new funds, even though savers confidence in channelling their investments towards shares and some mutual funds is still limited. The aggregate level of debt securities issued progressed by 6.2% (+ 8.3% in 2003) to euros billion thanks to active promotion and good yields. Overall the aggregate level of off-balance sheet savings stood at euros billion, a rise of 7.8% (+ 8.2% in 2003) making up 56.3% of total savings. 16.9% 39.4% 43.7% 5.8% 15.9% 11.4% 27.8% 17.9% 21.2% Crédit Mutuel-CIC: Breakdown of savings entrusted in 2004 Insurance-linked savings Securities issued Deposits Crédit Mutuel-CIC: breakdown of outstanding customer deposits in 2004 Blue passbook Term deposits Popular saving plans Current accounts Home buyers savings Other bankbooks

17 LENDING: the activity remains buoyant Interest rates were once again favourable to lending as the rise in interest rates was postponed. Total loans granted by Crédit Mutuel-CIC increased by 17.5% to euros 47.2 billion; the aggregate level was almost euros 165 billion, nearly doubling the 2003 increase (+ 9.2% compared with + 5%) ,5 % 47.2 Crédit Mutuel-CIC: New loan business This increase, again higher than that of the market, resulted in a 0.3 rise in market share, which reached 12% of domestic lending (and 15.5% of credits to banks). On the housing market financing conditions remained favourable with interest rates at their lowest level ever and loans extending over longer periods. This activity was not affected by the present squeeze on the housing market. Crédit Mutuel-CIC is the 2 nd largest in the field of housing loans, with euros 24.4 billion credits granted (+ 21.5%), the highest ever new loan figure financing one in every five real estate transactions. Outstandings, up by 15.9% to euros 81.7 billion, account for almost 50% of total commitments (46.7% in 2003). The group is one of the main players in marketing the new interest-free loan, having a 25% market share. It is the 2 nd largest network bank for consumer credit, with euros 7.3 billion (+ 4.3%) new loans and an aggregate level of euros 12.5 billion (+ 3%) ,2% Cash facilities Equipment loans Consumer credit Housing Crédit Mutuel-CIC: change in outstanding loans Net doubtful loans Other loans Operating loans Equipment loans & leasing Consumer Housing Debit account + card debits % new loans Crédit Mutuel-CIC: Activity 21

18 Crédit Mutuel-CIC Profitable development strategy The resources made available for corporate customers and businesses specialised staff, a complete range of products continue to prove profitable. Thus, despite an uncertain environment, euros 15.5 billion in new business was contracted for equipment loans and cash facilities, an increase of 18.3%. The group is the 2 nd largest distributor of Bdpme company creation loans with 20.7% of loans granted and, since July 2004, is a leader in the French market of SMEs as main banker (source Coface). The total is euros 29.9 billion for equipment loans (+ 3.4%), and euros 15.4 billion for operating loans (cash management plus commercial loans), up by 4.6%. In leasing, aggregate levels total euros 6.4 billion, a rise of 3.8% compared with ,3 pt 11.7% 12% Crédit Mutuel-CIC: market share in domestic lending CM CIC Given this development of the lending business, risks were under control: the net outstanding total of bad debts remained virtually unchanged (- 0.6%) while provisions were up by 1.5%. The risk-related ratio thus improved by more than 1 point to 3.9% and the coverage ratio increased by more than one point, reaching 61.9%. 7.6% 22.0% 9.4% 5.1% Crédit Mutuel-CIC: breakdown of outstanding loans in % 1.5% 49.6% Net doubtful Other Operating Equipment & leasing Consumer Housing Debit account + card debits 4.3% 3.9% Crédit Mutuel-CIC: change in doubtful loans & coverage ratios 60.6% 61.9% Doubtful loans rates Coverage ratios

19 Leader in BANCASSURANCE and ELECTRONIC BANKING Maintaining its number 1 position in bancassurance (non-life), with premiums progressing by 13.4% to euros 1.7 billion, CM-CIC is ranked 4 th in the life insurance business with a turnover up by 29.1% to euros 7.4 billion and growth rates much higher than those of the market. Insurance subsidiaries generated a cumulated turnover of euros 9.1 billion (+ 25.8%) and a profit of euros million (+4.1%); overall they manage 17.4 million contracts (automobile, housing, personal risk, health, pensions) for personal banking customers, self-employed professionals, the corporate sector and non-profit associations. The commercial and technical teams give priority to fast processing and payment, interactivity and advisory services. In electronic banking, the group is the 2 nd largest player in France with an overall market share of 20.4%, but 27% for payments by card in the retail sector. It managed 1.3 billion payments for a total turnover of euros 53 billion euros, 240,000 affiliated retailers, 7.4 million banking cards and 6,358 ATM. Crédit Mutuel-CIC: electronic banking business Number of ATMs* + 8.5% Cards* (in millions) + 2.1% Number of retail payments* (in millions) % 5,858 6,287 6, ,142 1,214 1, *As lead manager Number 1 bancassureur non-life Crédit Mutuel-CIC: Activity 23

20 Crédit Mutuel-CIC Profitable development strategy Crédit Mutuel-CIC Resources to support growth A bank NEAR-YOU network and MULTI-CHANNEL banking In 2004, the Crédit Mutuel-CIC group strengthened its agency network, the 2 nd largest in France: the 4,990 branches on which clientele relationships are based, offer to 13.8 million customers, including 12.3 million personal banking customers, a true local presence backed up by a complete range of services in its efficient multi-channel distribution structure. The group is thus one of the only French banks present on all distribution channels. It manages 615 million contacts with its customers, upon their initiative, including, among others, 125 million transactions handled at counters and 326 million by ATM. The multi-channel bank alone recorded 160 million contacts (+ 41%), of which three-quarters were through Internet* (113 million contacts, + 72%). The volume of contacts made through vocal media (multimedia call centres and Audiotel) has remained steady at around 33 million. These centres are now fully operational, and are entering into the phase of optimising their activity. Seeking to develop its activities on all the on-line networks, the group is constantly innovating its products and introducing the most modern methods, enhancing them regularly with new features. In particular, the group s websites are continuing to develop. Since the end of end 2004 real estate offers are made directly on-line to Internet surfers; in 2005 the emphasis is on selling products and services on-line. * and direct Internet surfers to the different websites of the regional structures of Crédit Mutuel and CIC. Strong ELECTRONIC BANKING activity Crédit Mutuel-CIC is the 2 nd largest player in France, with 20.4% of the electronic banking market share. It is the 2 nd largest issuer of inter-bank cards, with 7.4 million card-holders. Cash withdrawals from ATMs and automatic counters were on the rise with million withdrawals amounting to euros 15.3 billion. With 240,000 affiliated retailers, the group recorded 1.3 billion payments by card with retailers for a total amount of euros 53 billion (a 27% market share). Most of the 6,400 ATMs are multi-functional. In 2004, the whole ATM network was adapted to the new EMV standards (Eurocard, Mastercard, Visa) in order to improve security. The group s stop payment call centres enable customers to stop payment immediately 24 hours a day 7 days a week. In 2004 the number of holders of all types of cards continued to rise, with a considerable increase in Gold and Visa Premier, the increasingly widespread use of the prestigious Platinum card and the development of the Master Card that comes with services and guarantees adapted to Internet and on-line purchases. For self-employed professionals and small and medium-sized businesses the group is developing the BusinessCard, for managing day-to-day expenses, and the BusinessCard Executive, a prestigious professional card. Crédit Mutuel-CIC was the first bank to offer secure Internet payments for retailers, and these are now also available through Wap. This service is continuing to be expanded and enhanced (over euros 420 million in payments in 2004, + 60% in one year). 2 nd national domestic

21 In 2004 the success of Card was confirmed, a solution of a virtual dynamic card generalised at the end of This service enables customers to make on-line purchases without giving the number of their banking card (payments were trebled in a year with 30,000 transactions a month) will be completed in 2005 by the generalisation of the new Visa standards (3Dsecure) and MasterCard (Ucaf) making it possible to guarantee payment for retailers while making them increasingly secure for the buyer. Thanks to the group s expertise in electronic banking, it has become a partner of large French companies such as France Télécom, Auchan, RATP, the Pinault- Printemps-Redoute group and the motorway companies for handling their bank card transactions. Crédit Mutuel also has branches in about ten countries, mainly in Europe and America. In Germany it has a stake in Fiducia-Cash to handle electronic payment services for German cooperative banks and is experienced with the Geldkarte electronic purse. It is also present on the electronic banking market in Spain, Switzerland, Georgia, Russia, Iran and Cuba. Continuing success for the purchase card Launched in 2002, the purchase card for public entities continued to be popular. At the beginning of 2005, the Ministry of Economy and Finance selected Crédit Mutuel s proposal to implement this card in its central services. Bercy representatives justified their choice as follows: The preference for Crédit Mutuel corresponds to its ability to carry out immediately the tender s specifications, i.e. a great capacity for parametering cards in order to restrict their utilisation to specific suppliers, with authorisation ceilings, fiscal allocation of services, maximum amount of the transaction and its deadline. For contracts already signed with local authorities and the government, Crédit Mutuel-CIC has a 70% market share in the public sector and records a considerable rise in business transacted with the purchase card in the private sector. This service makes it possible for a private or public company to pay its suppliers by delegating without risk the purchase function. It simplifies purchase authorisation procedures, shortens the time necessary for handling invoices and reduces administrative costs. The supplier of the local authority benefits in turn from speedier handling and timely payment. Crédit Mutuel-CIC: Resources to support growth 25

22 Crédit Mutuel-CIC Profitable development strategy Euro-Information, partner of NRJ Mobile towards 3 rd generation cell phones. In January 2005, a subsidiary of NRJ Group, NRJ Mobile, signed a virtual cell phone operator agreement with SFR to become the first 3 rd generation Mvno (Umts Licence). Under this agreement, NRJ is associated with Crédit Mutuel-CIC through Euro-Information, which has a 10% stake in the capital of NRJ Mobile. The subsidiary of NRJ Group will thus benefit from Crédit Mutuel-CIC expertise with regard to information systems, payment systems, insurance, customer management and will be supported by the group s network for marketing and promoting 3rd generation cell phones launched at the end of *A Mvno (Mobile Virtual Network Operator) is an operator of mobile phones that does not have its own frequency spectre or telecommunications infrastructure, and leases capacities from an existing operator. Efficient IT SYSTEMS In 2004 Crédit Mutuel-CIC finished streamlining its IT systems to meet the needs of its networks, with the three last IT switchovers of the CIC group banks (CIAL, SNVB and Banque Transatlantique), and continued with those of specialised activities centres: after CM- CIC Bail, CM-CIC Lease, CM-CIC Securities, CM-CIC Titres, etc. CM-CIC Asset Management was created at the end of 2004 when CIC Asset Management was taken over by Crédit Mutuel Finance. The group now has only two information systems: GTOCM, one of the largest IT platforms in Europe, shared by 13 Crédit Mutuel Federations and all CIC banks; GICM which groups five Crédit Mutuel Federations (Anjou, Bretagne, Massif Central, Océan and Sud- Ouest). Information system partnerships GTOCM-Platform GICM-Platform Antilles-Guyane