SA INVESTOR PRESENTATION Credit update November 2010 www.bfcm.creditmutuel.fr
Disclaimer 2 This presentation has been prepared by Banque Fédérative du Crédit Mutuel ("") solely for use in the roadshow presentation. Statements that are not historical facts, including statements about Crédit Mutuel CIC s (the CM5 CIC Group ) and s beliefs and expectations, are forward looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward looking statements speak only as of the date they are made, and neither CM5 CIC Group nor undertakes any obligation to update publicly any of them in light of new information or future events. This presentation is confidential and is not to be reproduced by any person, nor be distributed to any person other than its original recipient. CM5 CIC Group and take no responsibility for the use of these materials by any such person. This presentation is not an offer to sell or the solicitation of an offer to purchase any notes and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever Crédit Mutuel & Crédit Mutuel group represent the financial perimeter of CM5 CIC until December 2010 and of CM10 CIC starting as of January 2011 (pages 30,31) CM5 CIC is constituted by the addition of Centre Est Europe, Sud est, Ile de France, Savoie Mont Blanc and Midi Atlantique Fédérations of Crédit Mutuel As of January 2011, Five other Fédérations will join the Group : Loire Atlantique, Normandie, Centre, Dauphiné Vivarais and Méditerranée to constitue CM10CIC
Origins of Crédit Mutuel Group (CM Group) 3 Co operatives roots > At the end of the 19th century, Frédéric Guillaume Raiffeisen (1818 1888), elaborated a new concept to fight against the poverty of farmers and handworkers > He imagined and encouraged the creation of mutual local banks managing the deposits and loans of their members, financing the local farming sector and development of new technologies, under the responsibility of the community members The framework of the Crédit Mutuel is founded: > 1882, creation of the first Caisse de Crédit Mutuel in Alsace (North Eastern part of France) > Loans are granted only to members > Each member of the Caisse has only one vote > No remuneration for the board s members > The financial surplus is not distributed to the members but placed into a non distributable reserve These principles still apply today > Crédit Mutuel is a co operative group at the service of its members > Which promotes a rational development
Crédit Mutuel: a co operative retail oriented Group 4 1,250 Caisses de Crédit Mutuel (CCM) hold the capital of their central bank, the Caisse Fédérale de Crédit Mutuel (CFCM) > CCM and CFCM share a unique banking license The Caisse Fédérale de Crédit Mutuel holds 95% of S.A., a commercial bank which : coordinates the activities of its subsidiaries > finance, insurance, real estate, IT. manages the liquidity and the debt issues of the Group CM Group serves 17.5 million customers > through 4,500 branches in France, Germany, Spain and West European countries 4 million members Vote for their representatives own 1,250 local Caisses de Crédit Mutuel, which own the Caisse Fédérale de Crédit Mutuel S.A. Retail banking, insurance and related activities are the recurrent and dominant sources of revenues > These related activities include private banking, private equity, Corporate & Investment banking > Around 85% of Net Banking Income is derived from the bancassurance activity
Agenda 5 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
Activity: solid performance and improvement of the loan to deposit ratio 6 Market shares in France of CM (end of 2009) > Total customer deposits: 9% > Total customer loans: 13% (21% in home loans) > Insurance: 4.3% in Life & 4.2% in Non Life > Mutual funds: 5.5% Increasing market presence in Western Europe > Acquisition of 333 branches in Germany in 2008 > Co acquisition of 123 branches in Spain in 2010 (in partnership with Banco Popular Espanol) Outstanding Loans bn 230 224.1 220 210 +1.9% 228.3 CM Group clients value a strong partner to support their projects > 228bn in customer loans, up 1.9% over one year > of which 110bn in home loans (+5.7%) in the sound French residential real estate market CM Group clients maintain strong confidence in the Group s financial strength > 34.5bn increase in savings to 409.7bn Of which 7.7bn up in clients deposits Of which 6.3bn up in insurance savings Of which 20.5bn up in financial savings Increase in margin forecast: +4bp in retail banking activities y o y 200 H1 2009 H1 2010 150 Outstanding Deposits bn +5.6% 146.9 140 139.2 130 120 H1 2009 H1 2010
Dynamism and resilient business model lead to an overall good performance in H1 10: 1.1bn Net Income (x2 vs. H1 09) 7 CM Group s profitability driven by: Commercial dynamism > A strong rise in revenues has been confirmed: NBI +16% to 5.5bn in H1 10 > Proven strength of bancassurance model: +18% NBI > Recovery of CM CIC CIB (Corporate and Investment Banking) with a 580m contribution to NBI Revenues by Business Lines Revenues ( m) H1 2009 H1 2010 Δ 10/09 Retail banking 3,632 4,216 16.1% Insurance 412 571 38.6% Private banking 211 198 6.2% CIB 658 580 11.9% Private Equity 16 100 525.0% Corporate center 188 182 3.2% Total NBI 4,741 5,483 15.7% Operating efficiency > Recurrent ability to industrialize processes and reduce cost to income ratio > EBITDA margins up +15 points over 2 years to 41% in H1 2010 A continued reduction in the cost of risk for the Group : 0.6bn ( 27%) > Conservative and prudent approach to risk taking, strong risk management and monitoring m 6,000 5,000 4,000 3,000 2,000 1,000 0 m 1,200 1,000 800 600 400 200 0 3,095 812 Operating Efficiency Cost of Risk & Profitability 507 573 165 4,741 871 H1 2008 H1 2009 H1 2010 5,483 Net Banking Income EBITDA 1,692 2,236 H1 2008 H1 2009 H1 2010 1,112 636 Net profit Cost of risk
Agenda Liquidity Capital Risks Covered Bonds Appendices 8 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
Market Overview Liquidity Capital Risks Covered Bonds Appendices 9 Numerous shocks have impacted liquidity in the short and mid/long term markets in H1 10 > Sovereign debt crisis > Discussions of new regulatory rules for financial institutions > Stress test results 2010 Senior Unsecured Supply by European Financials Mainly offset by the current Eurozone liquidity surplus > The ECB 1 year tender of 442bn maturing in June 2010 was smoothly absorbed by the banking industry Current stage shows progressive return to normality > The ECB last significant tender redemption happened on September 30 th, with 225bn to be rolled over in an unlimited 3 month tender > Having borrowed only 134bn vs. 225bn tendered, European banks ensured a much larger than expected drop in excess liquidity, signaling a healthier outlook for money markets > Banks from core geographies including Italy have a good access to the senior unsecured and covered bond markets 2010 Covered Bond Supply by European Financials Euro zone Sovereign Debt Crisis End of ECB 60bn Covered Bond Purchase Programme Source: Bloomberg, Dealogic as of 18 October 2010
Strong Customer Liquidity Liquidity Capital Risks Covered Bonds Appendices 10 Outstanding Loans, Customers Deposits & Savings The retail banking activity is highly funded by customer deposits > 146bn customer deposits as of June 30 th, 2010 > + 9bn y o y: twice the growth in granted loans 450 400 350 300 250 Loans outstanding Savings Customer deposits > Regular debt issues by within the retail network, savings campaigns 200 150 In addition, customers hold a large amount of Insurance savings and off balance sheet savings > 59bn Insurance savings > 203bn Financial savings (Mutual funds, securities, etc.) > A network of internationally recognized private banks bn 100 50 0 2006 2007 2008 2009 H1 2010 Loans to Deposits ratio / Loans to Savings ratio As a result, the group has a permanent access to a stable and cheap source of funding 1,8 1,6 1,5 1,6 1,4 Loans to deposits ratio at 1.6x and loans to savings ratio at 0.6x 1,2 1,0 0,8 Ratio Loans / Customer deposits Ratio Loans / Savings 0,6 0,4 0,2 0,5 0,6 0,0 2006 2007 2008 2009 H1 2010
Sound Credit Ratings Liquidity Capital Risks Covered Bonds Appendices 11 Short term P 1 A 1 F1+ Senior Unsecured Debt Ratings Long term Aa3 A+ AA Outlook Stable Stable Stable as of March 2010 October 2010 June 2010 CM CIC Covered Bonds Debt Ratings Long term Aaa AAA AAA Outlook Stable Stable Stable
Strong Capacity to Generate Liquidity Liquidity Capital Risks Covered Bonds Appendices 12 Debt Breakdown (1) CM Group applies a strict framework for the management of liquidity risk > Monitored by SA which has the global vision of liquidity risk of the Group > Based on a centralized ALM management, which defines common rules to all group entities The Group liquidity management policy relies on > Applying a regulatory one month liquidity ratio for all the entities of the group > Liquidity buffer negociable & ECB eligible, appropriate to specific and systemic stress The liquidity buffer is exclusively composed of ECB eligible assets > Limiting transformation ratios for commercial banking to 90% by time band from 3 months to 7 years > Limiting the reliance on the interbank market > Diversifying funding sources Banque de France by type of investors 5% Corporates Banks 2% 53% Insurance 2% by geography France 59% UK 20% by currencies Network (2) 3% Funds 15% Asia & ME US 3% 8% Financial institutions 20% Europe 10% (1) Short, medium and long term funding excluding deposits (2) Bonds issued by for the retail network As of September 2010
Medium and Long Term Funding Issuing Policy Liquidity Capital Risks Covered Bonds Appendices 13 2010 MLT issuance plan of 13bn > 14 bn raised as at October > already completed Some of AA Senior Unsecured Bond 2010 Issues Size Format Maturity Spread > bor 6M+ Total MLT outstanding: 54bn > Collateralized Public Issues: 26bn > Unsecured Public Issues: 23bn > Retail Network Issues: 5bn Jan 10 850 1.5Y 2011 40bp Mar 10 1,250 3Y 2013 50 bp Jul 10 1,000 10Y 2020 135 bp Sep 10 500 2Y 2012 50 bp Oct 10 (LT2) 1,000 10Y 2020 143bp A competitive position in tough debt markets AAA CM CIC Covered Bond 2010 Issues Size Format Maturity Spread > bor 6M+ Jan 10 1,500 5Y 2015 38 bp Feb 10 1,000 7Y 2017 52 bp Jun 10 1,000 3Y 2013 35 bp Sep 10 1,000 10Y 2020 73 bp
Agenda 14 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
Group s equity capital: 10.3% T1 ; 9.5 % Core T1 15 Capital s breakdown H1 2010 Core capital is constituted by members shares and reserves > Each member cannot hold up to 50,000 > Average investment is 16,000 > Regular and continual inflow of subscription by the members > Massive inflow of member s subscription by special campaign Members equity 21% Non distributable reserves 60% Minority interests 12% Perpetual Subordinated Notes 7% TOTAL 100% Hybrid instruments Core Tier 1 bn 20,0 2.3 2.3 15,0 3.3 Low pay out policy and automatic capitalization > more than 90% of annual net profit are locked in bylaw non distributable reserves 10,0 16.9 15.6 13.4 5,0 0,0 2008 2009 H1 2010 Total Regulatory Capital RWA ( bn) 147,6 152,3 152,4 Core Tier One 9.5% 10% 10.3% 8.8% 16.7 17.3 18.2 bn 2008 2009 H1 2010
Agenda Liquidity Capital Risks Covered Bonds Appendices 16 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
A 228bn loan portfolio with balanced and good quality assets Liquidity Capital Risks Covered Bonds Appendices 17 Breakdown of Assets portfolio by categories of loans 228.3 bn loans as of June 30 th 2010 > Of which 210.6 redeemable: +7.4% > 88% in local banking activities Individuals consumer finance 12% Others 9% Corporate, SME & private 31% Home loans are the core of lendings > 48% ( 110.4bn) of total outstanding > Y o Y increase: +5.7% > Low risk as the French property market is very sound 120 100 80 bn Individuals home loans 48% Breakdown of Assets portfolio by internal rating 110.5 2% E E D, E+ A,B,C 60 40 20 38.6 4% 26.3 5% 32.5 20% 20.4 6% 0 Home Loans Equipment Consumer Finance Overdrafts Operations
Credit risk Liquidity Capital Risks Covered Bonds Appendices 18 Credit risk evolution and provisions for doubtful loans > Stabilization of doubtful loans > 600m increase in credit reserves Cost of risk > The 2008 2009 increase of Group s average cost of risk is due to the integration of new Consumer Finance Businesses > General reduction in cost of risk confirmed in 2010 CM Group doubtful loans & credit reserves ( bn) 2008 2009 H1 2010 Gross outstanding customer loans 214 225 232 NPL 6.7 10.5 11.4 Loans loss reserves 4.8 6.6 7.2 Doubtful loan ratio 3.1% 4.7% 4.9% Stock of provisions to NPL 72% 63% 63% CM Group cost of risk % 2008 2009 H1 2010 annual base Retail banking w/o Consumer Finance 0.22 0.34 0.25 Individuals 0.08 0.11 0.11 o/w Home loans 0.06 0.10 0.09 Retailers, Craftsmen, Self Employed, etc. 0.37 0.57 0.45 SME 0.47 0.88 0.45 CIB 0.24 0.93 0.28 Private banking 0.02 0.06 0.18 Consumer Finance Targo bank 3.72 3.48 Consumer Finance Cofidis 5.47 5.99 TOTAL 0.22 0.77 0.66
Agenda Liquidity Capital Risks Covered Bonds Appendices 19 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
A sound French housing market Liquidity Capital Risks Covered Bonds Appendices 20 Structurally the French home loan market is a sound and strong market > Low home ownership ratio (59%) among the lowest in Europe > Favorable structural factors (growing population, pension planning, strong and structural demand) Prices recovered by 2.2% in 2009 > After a 10% decrease in 2008, less than most European markets > and are stabilizing since the beginning of the year Sales volumes have increased by 4% from Q4 2009 to Q1 2010 > Following a 7% decrease in 2009 House Price Index (Base=Sep/05) Source: CGEDD, Banque de France, Eurostat Activity in volume (real estate) Low risk with only prime home loans and conservative origination policy > Borrowers repayment cannot exceed 33% of the disposable income > Close analysis of the client (work status, regularity of income, credit history) > Home loans are attributed to the client and not to the asset > 89% of home loans have a fixed rate to maturity Number of transactions Source: FNAIM/CGEDD Source: CGEDD
CM Group, strong presence in the French home loan business Liquidity Capital Risks Covered Bonds Appendices 21 Crédit Mutuel Group is one of the leader in this low risk profile French Home Loans market > #3 in household home loans with a 21% market share as of year end 2009 > 110bn outstanding home loans as of end June 2010 Strengths of CM Group home loan business > Strong franchise in retail banking > Knowledge of the local market and of clients > Cross selling with insurance business line Focus on organic growth bn 120 100 80 76.7 Total Credit Outstanding = 228 bn overdrafts 14% lease, eqpmt & others 26% Outstanding Home Loans 93.3 consumer finance 12% 102.45 104.4 106.9 Home loans 48% +5.7% (12 months) 110.4 60 40 20 0 Dec. 2006 Dec. 2007 Dec. 2008 Jun. 2009 Dec. 2009 Jun. 2010
CM CIC Covered Bonds: the AAA issuer of CM Group Liquidity Capital Risks Covered Bonds Appendices 22 CM CIC Covered Bonds (CM CIC CB) > A French credit institution, licensed and supervised by the Autorité de Contrôle Prudentiel (ACP), the French Banking Supervisory Authority > Audited by PricewaterhouseCoopers and Ernst & Young CM CIC CB has a limited purpose designed to be bankruptcy remote > Its single purpose is to issue covered bonds and provide funding to the Group s entities > Limited recourse and non petition clauses included in all contracts signed with third parties > Double recourse to SA and to the collateral surety ( cover pool of home loans) In case of a Borrower Event of Default: automatic enforcement of the Collateral Surety > Regulated by common law: European collateral directive provisions transposed into the French Monetary and Financial Code (Article L211 38 July 2005) > Segregation of the assets by the Collateral Providers (CM5 CIC) to the benefit of the Issuer (CM CIC CB) > Assets will be entirely transferred in case of enforcement of the Collateral Surety > CM CIC Covered Bonds will benefit from the new legal framework (SFH) which has been approved by French Parliament in October 2010 (Bankruptcy law, UCITS 22.4 compliance, etc.)
CM CIC Covered Bonds Cover Pool Liquidity Capital Risks Covered Bonds Appendices 23 Only prime residential mortgages and guaranteed home loans (no RMBS, no securitization, no substitution assets) Underlying properties exclusively located in France % of CM CIC CB's Cover Pool > 10% > 5% and < 10% > 2% and < 5% > 1% and < 2% < 1% Only residential loans under French law Only loans originated by CM Group are eligible > Mastering the underwriting procedures > Unique IT system to support the different processes No loans in arrears in the cover pool Restrictive eligibility criteria Home Loan origination > Present in the whole country > Over weighted in the wealthy areas (Paris, Lyon, Strasbourg, French Riviera )
To conclude 24 A group with a strong identity and sound credit profile Its image as a safe retail bank has been strengthened during the financial crisis A business model serving members and clients, combining constant progress and caution A well balanced asset portfolio with high quality standards Satisfactory level in Group s capital (with a 10.3% T1 ratio and 9.5% core T1 ratio) Good capacity to source liquidity internally (deposits) and externally (debt markets) Equipped in human, material and financial resources for a continuous growth
Agenda 25 Crédit Mutuel Group Highlights Focus on Liquidity Focus on Capital Focus on Risks Focus on CM CIC Covered Bonds Appendices Contact details
26 1. Positioning & Rankings
Crédit Mutuel Group s World & Western Europe rankings in terms of Tier 1 capital 27 Top 25 : Western Europe ($M) 2010 Crédit Mutuel, a major player with solid rankings Source: The Banker Regional ranking World ranking Bank Country Tier 1 capital 1 4 Royal Bank of Scotland UK 123,859 2 5 HSBC Holdings UK 122,157 3 8 BNP PARIBAS France 90,648 4 9 SANTANDER Spain 81,578 5 10 Barclays UK 80,449 6 12 Lloyds Banking Group UK 77,034 7 13 Crédit Agricole Group France 75,504 8 17 Unicredit Italy 56,245 9 18 Groupe BPCE France 54,141 10 19 Société Générale France 49,990 11 20 Deutsche Bank Germany 49,576 12 21 ING Bank Netherlands 49,013 13 24 Rabobank Group Netherlands 46,383 14 25 Intesa San paolo Italy 43,523 15 27 Commerzbank Germany 42,536 16 29 Crédit Mutuel Group France 39,595 17 30 BBVA Spain 39,271 18 31 Crédit Suisse Group Switzerland 35,118 19 35 UBS Switzerland 30,842 20 37 Nordea Group Sweden 28,209 21 41 Dexia Belgium 25,321 22 42 Standard Chartered UK 24,582 23 46 Caja de Ahorros y Pen. De Barcelona la Caixa Spain 23,557 24 48 Danske Bank Denmark 22,722 25 52 KBC Group Belgium 22,228
A local bank with very solid positions thanks to powerful competitive strengths 28 A powerful distribution capacity, demonstrated by leading positions in France > Logistical and technological capacities to support growth of distribution network Retail banking 3 3 3 3 rd largest retail bank 3 rd home loan provider 3 rd banking network for consumer credit Corporate banking 3 2 1 3 rd largest bank for SME 2nd largest agricultural bank 1 st bank for associations & work councils An innovative strategy to meet clients' needs > Major player in the growth of electronic payment methods > Pioneer of bancassurance in France in 1970 and in mobile phone distribution in 2005 > Pioneer in CCTV, alarm and equipment protection systems Bancassurance Pioneering technological bank 1 1st Non life l insurance 2 2 nd biggest in electronic money in France 4 4th in life bancassurance 1 Top mobile phone bank
Crédit Mutuel topped rankings for customers relationship 29 2010 Award for Best Bank «Podium TNS Sofres» 2010 award for best bank in customers relationship
CM10 CIC (*) = Networks 30 A cooperative bank with a low risk profile, focused on retail banking via different networks CM10 network CIC network + Normandie (Caen) + Ile de France (Paris) Centre Est Europe BSD-CIN + CIC-EST (Strasbourg) Centre Loire Atlantique (Orléans) Sud Est & (Lyon) Centre Ouest Savoie Mont Blanc (Nantes) (Annecy) Dauphiné Vivarais (Valence) Midi-Atlantique Midi Méditéranée (Toulouse) (Marseille) CIO-BRO S-Bordelaise Lyonnaise Banque + (*) CM5 CIC becomes CM10 CIC in January 2011
Fédérations Centre Est Europe ; Sud-Est ; Île-de-France ; Savoie-Mont Blanc ; Midi Liquidity Atlantique ; Capital Dauphiné-Vivarais Risks Covered ; Bonds Appendices Loire Atlantique Centre Ouest ; Normandie ; Centre ; Méditerranéen CM10 CIC organisation As of January 2011 100 % 100 % 51 % 50 % 31 Caisses 80 % ACM 20 % Caisse Fédérale de Crédit Mutuel 95 % () 5 % 50 % 20 % plateforme 50 % 19.9 % Local Banks = Caisses de Crédit Mutuel de : 92.3 % 4,99 % Centre Est Europe Sud Est Île-de-France Savoie-Mont Blanc Midi Atlantique Loire Atl. Centre Ouest Centre Normandie Dauphiné Vivarais Méditerranéen SME BECM Finance * Asset Management * Bail * Covered Bonds * Epargne Salariale * Gestion * Laviolette Financement * Securities * Titres Sofémo FactoCIC BECM ESN * = CM-CIC IT Euro Information EID --EIP EIS --Sicorfé EPS EIDS ETS Euro GDS Euro P3C Euro TVS EurAfric Information IID // DPS Keynectis CardProcess NRJ Mobile Axxès Insurance ACM GACM ACM Vie SAM ACM Vie SA Sérénis Vie ACM IARD Sérénis IARD ACM Services Partners RACC Seguros RMA Watanya Astree ICM Life ICM Ré Procourtage Real estate * Agence Immobilière * Lease * Participation Immobilière SAR Est...... Sofedim CMH * = CM-CIC Private bk CIC Bq Transatlantique BT Luxembourg BT Belgium Banque de de Luxembourg CIC Suisse Banque Pasche Dubly Douilhet BLC Gestion GPK Finance SA CIC Banque Privée Private equity CIC Finance Bq de de Vizille IPO Holding, Nord CIC Nord Ouest Est CIC Est Ouest CIC Ouest Sud Ouest CIC Société Bordelaise Sud Est CIC Lyonnaise de banque 100 % 100 % 100 % 100 % 100 %
A progressive and well controlled European development, purely retail banking focused 32 Norway Sweden Ireland No presence in Ireland United Kingdom Denmark Netherlands Germany Belgium Lux. Poland Iberian Peninsula < 3.1% of consolidated NBI Portugal Morocco Spain Algeria Tunisia Switzerland Italy Italy < 0.2% of consolidated NBI Czech Rep. Austria Slovenia Croatia Bosnia Slovakia Hungary Serbia Macedonia Albania Greece Central & Eastern Europe < 0.3% of consolidated NBI Romania No presence in Greece
Latest developments: strategic positions reinforced throughout the financial crisis 2008 2009 2010 Internal growth 33 Opening of new branches Partnerships in IT, insurance with other Crédit Mutuel Fédérations Acquisitions Banco Popular France Citibank Deutschland Cofidis 50% of Banque Casino Alliances & Partnerships Long term alliance with Banco Popular 5% stake acquired in Nov 2010 Industrial Partnership with Dexia Acceleration of strategic focus on core business model (retail banking) with organic growth completed by acquisitions and partnerships > Wider product coverage > Geographical conquest
34 2. Financials
Income statement for H1 10 vs H1 09 H1 10 CM Group P&L ( m) Retail Banking Insurance CIB Private Banking Private Equity Holding Interco TOTAL NBI 4,216 571 580 198 100 39 (222) 5,483 % of consolidated NBI 73.9% 10.0% 10.2% 3.5% 1.8% 0.7% 100.0% Overheads (2,511) (189) (139) (149) (13) (468) 222 (3,247) Cost to income ratio 59.6% 33.0% 24.0% 75.3% 13.3% 59.2% EBITDA 1,705 383 441 49 87 (429) 0 2,236 Cost of risk (652) 0 58 (5) 0 (37) 0 (636) OPERATING PROFIT 1,054 383 499 44 87 (466) 0 1,600 Net gains/losses on other assets & equity accounted cies 6 12 (0) (0) 0 6 (0) 24 PRE TAX PROFIT 1,060 395 499 44 87 (460) 0 1,624 Income tax (357) (120) (138) (9) (2) 114 (0) (513) NET PROFIT 702 275 360 35 85 (346) 0 1,112 35 H1 09 CM Group P&L ( m) Retail Banking Insurance CIB Private Banking Private Equity Holding Interco TOTAL NBI 3,632 412 658 211 16 8 (196) 4,741 % of consolidated NBI 73.6% 8.3% 13.3% 4.3% 0.3% 0.2% 100.0% Overheads (2,371) (182) (135) (144) (12) (401) 196 (3,049) Cost to income ratio 65.3% 44.3% 20.5% 68.3% 75.3% 64.3% EBITDA 1,261 229 523 67 4 (393) (0) 1,692 Cost of risk (716) 0 (143) 2 (0) (14) 0 (871) OPERATING PROFIT 545 229 380 69 4 (407) (0) 821 Net gains/losses on other assets & equity accounted cies 18 12 (0) 0 0 5 (0) 34 PRE TAX PROFIT 562 241 380 69 4 (402) (0) 854 Income tax (209) (61) (108) (18) (1) 115 (0) (281) NET PROFIT 353 180 272 52 3 (287) (0) 573
Income statement for FY 2009 vs FY 2008 FY 2009 CM Group P&L ( m) Retail Banking Insurance CIB Private Banking Private Equity Holding Interco TOTAL NBI 7,691 956 1,532 397 49 190 (590) 10,226 % of consolidated NBI 75.2% 9.4% 15.0% 3.9% 0.5% 1.9% 100.0% Overheads (4,712) (364) (271) (303) (28) (965) 590 (6,052) Cost to income ratio 61.3% 38.0% 17.7% 76.4% 57.3% 59.2% EBITDA 2,980 593 1,262 94 21 (775) 0 4,174 Cost of risk (1,538) 0 (379) 1 0 (71) 0 (1,987) EBIT 1,442 593 882 95 21 (846) 0 2,187 Net gains/losses on other assets and equity accounted cies 22 21 (0) 0 0 (126) 0 (83) PRE TAX PROFIT 1,464 614 882 95 21 (972) 0 2,103 Income tax (497) (165) (273) (24) (1) 293 0 (668) NET PROFIT 967 448 610 70 20 (680) 0 1,435 FY 2008 CM Group P&L ( m) Retail Banking Insurance CIB Private Banking Private Equity Holding Interco TOTAL NBI 4,818 781 26 427 112 1 (370) 5,795 % of consolidated NBI 78.1% 12.7% 0.4% 6.9% 1.8% 0.0% 100.0% Overheads (3,242) (313) (239) (272) (38) (652) 370 (4,387) Cost to income ratio 67.3% 40.1% 935.5% 63.6% 34.3% 75.7% EBITDA 1,576 468 (214) 156 73 (651) 0 1,409 Cost of risk (421) 0 (530) (108) 1 (6) 0 (1,064) EBIT 1,154 468 (744) 47 74 (656) 0 344 Net gains/losses on other assets and equity accounted cies 12 17 0 0 0 8 (0) 37 PRE TAX PROFIT 1,167 485 (744) 47 74 (649) 0 381 Income tax (358) (95) 268 (5) 2 316 (0) 127 NET PROFIT 809 390 (476) 42 77 (333) 0 509 36
Balance Sheet & Key Figures 37 Elements of balance sheet ( m) June 2010 June 2009 Total Assets 447,475 428,535 Customer leases incl. Finance leases 228,255 224,081 Assets under management and in custody 409,654 375,165 o/w customer deposits 146,901 139,167 o/w insurance savings 59,359 53,077 Equity capital & super subornitated loans 24,439 22,632 Employees at end of period 50,451 49,996 Number of points of sale 3,875 3,906 Number of customers 15,957,469 15,836,082
38 3. CM CIC Covered Bonds : Investor Report
Investor Report September 2010 39 Collateral Description TOTAL_LOAN_BALANCE 25 422 147 AVERAGE_LOAN_BALANCE 84 989 NUMBER_OF_LOANS 299 123 WA_SEASONING 52 WA_REMAINING_TERM 189 NUMBER_BORROWERS 250 952 NUMBER_OF_PROPERTIES 259 992 WA UNINDEXED LTV 0,66 WA INDEXED LTV 0,60 WA INT FL OAT RATE 3,43 Unindexed LTV ranges Indexed LTV ranges Total Loan Balance Nb borrowers Total Loan Balance Nb borrowers 0% to 40% 3 358050 67 164 5 062 015 91 131 40% to 50% 2 455373 27 804 3 052 701 30 600 50% to 60% 3 198559 31 215 3 589 733 31 627 60% to 70% 3 931175 34 642 4 025 713 32 694 70% to 80% 4 877041 39 989 4 340 061 32 737 80% to 85% 2 717539 21 073 2 130 722 15 533 85% to 90% 2 608339 19 284 1 959 077 14 041 90% to 95% 1 639982 11 843 1 262 126 8 867 95% to 100% 554238 4 073 0 0 100% to 105% 73 173 532 0 0 105% to 999% 8 679 69 Current arrears ranges distribution Nb months in arrears Total Lo an Balance Number of loans 0 25 422 147 299 123 > 0
Portfolio Breakdown September 2010 40 Unindexed LTV ranges 0 to 40% > 40% to 50% >50% to 60% > 60% to 70% > 70% to _80% > 80% to 85% > 85% to 90% > 90% to 95% > 95% to 100% > 100% to 105% SEASONING in months 1m to 11 79 377 74 047 117 339 144 079 183 135 101 428 124 049 79 726 16 684 2 532 12m to 23 162 125 126 979 161 711 195 960 237 594 127 293 107 114 35 928 15 813 2 125 24m to 35 441 185 339 040 446 614 536 295 660 044 365 849 236 927 108 628 32 698 3 216 36m to 59 1 191 358 981 148 1 318 639 1 721 589 2 259 427 1 460 739 1 636 196 1 144 689 393 689 45 201 60m to 999 1 484 005 934 159 1 154 255 1 333 252 1 536 842 662 229 504 052 271 011 95 353 20 098 PROPERTY TYPE FLAT 1 173 475 872 903 1 153 630 1 507 441 2 011 786 1 144 831 1 177 545 752 781 251 326 33 811 HOUSE 2 184 575 1 582 470 2 044 929 2 423 733 2 865 255 1 572 708 1 430 794 887 201 302 912 39 362 OCCUPENCY TYPE BUY to LET 251 508 219 363 327 783 480 615 741 537 479 157 507 645 326 811 101 192 14 255 OWNER 2 974 807 2 152 156 2 775 642 3 340 387 4 008 526 2 181 899 2 046 006 1 291 185 448 320 57 738 SECOND HOME 131 735 83 854 95 134 110 172 126 978 56 482 54 688 21 987 4 725 1 180 LOAN_PURPOSE CONSTRUCTION 563 159 427 379 583 404 722 067 893 731 510 047 469 482 272 781 75 549 8 435 PURCHASE 2 707 481 1 980 251 2 553 371 3 127 692 3 881 399 2 148 999 2 091 839 1 328 448 444 972 61 084 RENOVATION 87 410 47 743 61 784 81 416 101 911 58 493 47 018 38 753 33 716 3 654 PAY_FREQUENCY MONTHLY 3 353 117 2 453 503 3 195 728 3 927 027 4 870 794 2 711 807 2 603 189 1 637 824 553 613 73 021 QUARTERLY 4 932 1 870 2 831 4 147 6 247 5 732 5 150 2 158 624 151 INT_RATE_TYPE FLOATING RATE 448 473 307 736 410 721 552 491 757 689 488 956 507 784 397 310 183 123 26 095 FIX RESET < 2 years 3 669 1 977 2 542 5 243 2 627 1 873 1 818 731 302 0 FIX RESET 2y to 5y 11 854 7 671 12 265 19 928 39 424 18 691 17 520 5 809 2 721 129 FIX RESET> 5y 2 894 053 2 137 989 2 773 032 3 353 512 4 077 301 2 208 019 2 081 217 1 236 132 368 091 46 948 RANKS GARANTORS 2 479 952 1 719 251 2 179 874 2 559 447 2 879 435 1 419 857 1 179 270 552 583 109 412 10 730 NO PRIOR RANKS 878 098 736 122 1 018 685 1 371 728 1 997 606 1 297 682 1 429 069 1 087 399 444 826 62 443 RANKS in numbers GARANTORS 47 329 18 542 20 462 21 791 23 126 10 706 8 481 3 962 950 101 NO PRIOR RANKS 20 901 9 408 10 920 13 087 17 199 10 501 10 928 7 950 3 145 434
Asset Cover Test September 2010 ASSET COVER TEST 41 Date of Asset Cover Test 19 oct 10 Adjusted Aggregate Asset Amount (AAAA) R Aggregate Covered Bond Outstanding Principal Amount (AAAA) = A + B + C + D (Y + Z) R Asset Cover Test Ratio 1,12 Adjusted Aggregate Asset Amount (AAAA) 19 151 309 076 Aggregate Covered Bond Outstanding Principal Amount 17 155 000 000 Asset Cover Test Result (PASS/FAIL) PASS A A = min(a1;a2) 19 625 897 167 A1 Adjusted Home Loan Outstanding Principal Amount 25 001 322 027 A2 a*b 19 625 897 167 Unadjusted Home Loan Outstanding Principal Amount (a) 25 422 146 589 Asset Percentage (b) 77,20% B Cash Collateral Account 0,00 C Aggregate Substitution Asset Amount (or ASAA ) 0,00 ASAA level limit 20,00% ASAA level is acceptable TRUE D Permitted Investments 0,00 Y Payments under Issuer Hedging Agreement 0,00 Y is equal to: (i) ZERO before any Issuer Hedging Agreement shall be entered into by the Issuer subject to, and in accordance with, the hedging Strategy (ii) otherwise, an amount equal to the payments due under the Issuer Hedging Agreements (plus interest thereon) within the period of alpha pl us 2 months preceding the relevant Asset Cover Test Date where alpha means the period between 2 interest payment Z WAM * Covered Bond Outstanding Principal Amount * 1,00% 474 588 090 WAM 2,77 years Negative Carry Adjustement 1,00% Name of Series Outstanding Principal Amount Scheduled Maturity Date Remaining Maturity Series 1 2500 000 000 17 juil. 12 1,74 years Series 2 2000 000 000 2 nov. 10 0,04 years Series 4 155000 000 8 oct. 18 7,97 years Series 5 2500 000 000 2 nov. 11 1,04 years Series 6 2500 000 000 2 mai 11 0,53 years Series 7 3000 000 000 27 nov. 13 3,11 years Series 8 1500 000 000 21 janv. 15 4,26 years Series 9 1000 000 000 25 avr. 17 6,52 years Series 10 1 000 000 000 14 juin 13 2,65 years Series 11 1 000 000 000 9 sept. 20 9,89 years
42 4. Contact details
Contact details 43 Christian Klein, Managing Director CFO > kleincr@cmcic.fr / T : +33 (0) 1 45 96 79 01 Christian Ander, Head of Funding & Capital Raising > andercr@cmcic.fr / T : +33 (0) 1 45 96 79 20 Jerome Linder, Head of FIG > linderje@cmcic.fr / T : +33 (0) 1 40 16 28 30 www.bfcm.creditmutuel.fr Eric Cuzzucoli, Head of Funding > cuzzucec@cmcic.fr / T : +33 (0) 1 40 16 28 11 www.cmcic cb.com Sandrine Cao Dac Viola, Head of Investor Relations > caodacsa@cmcic.fr / T : +33 (0) 1 40 16 28 13 / F : +33 (0) 1 45 96 79 19