Half-year 2006 results

Transcription

1 Half-year 2006 results 1

2 Contents Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix Banque Populaire Group's consolidated financial statements to June 30, 2006 and June 30, 2005 are presented in accordance with IFRS and are therefore fully comparable in terms of the accounting standards applied. "Banques Populaires" as the basis of consolidation consists of: 19 Banque Populaire regional banks, Casden Banque Populaire, Crédit Coopératif, Crédit Maritime Mutuel, BICEC and MA Banque 2

3 Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix 3

4 Group Banque Populaire Group in the first half of 2006 (1/5) First-half highlights: Record commercial and financial performance by both the Banque Populaire banks and Natexis Banques Populaires Net banking income Gross operating income : up 16% to 4,720m : up 29% to 1,873m like-for-like Net income attributable to equity holders of the parent: up 36% to 1,032m Major strategic initiative: NatIxis with Caisse d'epargne Group 4

5 Group Banque Populaire Group in the first half of 2006 (2/5) Banque Populaire Banks: Strong revenue and earnings growth Net banking income: up 8.6% to 2,818m Net income attributable to equity holders of the parent * : up 23.4% to 587m Very good commercial performance Very high-quality franchise (upper socio-economic personal customers, professionals and SMEs) Steady growth based on an ambitious long-term new branch opening strategy high customer take-up levels Collective effectiveness enhanced by implementation of the new Strategic Plan and the development of new segmentation tools * Dividends, paid by BFBP, excluded 5

6 Group Banque Populaire Group in the first half of 2006 (3/5) Banque Populaire Banks (cont): The cost/income ratio improved very sharply again to 62.2% (-2.8 points) with no decrease in spending on development with good control of information system costs, the first return on major investment to establish a single IT platform (i-bp) Good results enhanced cyclically by low credit provisions and the impact of new accounting standards (NBI before provisions for homebuyers' savings shemes: up 5.8%) 6

7 Group Banque Populaire Group in the first half of 2006 (4/5) Natexis Banques Populaires: Growth accelerated while profitability improved still further: Net banking income: up 29% to 1,928M Net income attributable to equity holders of the parent: up 56% to 539m while credit provisions remained low Strong sales momentum in all businesses with noteworthy performances by the Corporate and Institutional Banking and Capital Markets core business (NBI: up 43%) The cost/income ratio improved very substantially (-5.1 points) to 58.6%, with significant continuing investment in people and systems 7

8 Group Banque Populaire Group in the first half of 2006 (5/5) Natexis Banques Populaires (cont): Performance was ahead of the business plan thanks to: Better exploitation of the broad corporate and institutional client base Development of cross-selling Enhancement of the product offering Renewed strong growth in high value-added businesses Increased international expansion of all the Bank's businesses Very good results recognized by the market (share price, rating agencies) 8

9 Group Further improvement in operating efficiency m 4,720 Steady rise of net banking income, driven entirely by organic growth 4,066 1,458 2,595 2,608 2,828 1,873 2,847 Costs were kept under control at the same time as major investment was made in growth 1,684 1,751 Expenses grew significantly more slowly than revenue 1,471 1, ,095 NBI H105 Expenses NBI Expenses Gross operating income H106 Cost/income ratio H % H % -3.8 pts Banques Populaires (including BFBP) Natexis Banques Populaires consolidated contribution Consolidated gross operating income 9

10 Group Impairment charges and other credit provisions The credit risk environment is still very favourable Annualized cost of risk: 19 bp credit risk-weighted assets vs average of 37 bp from 2003 to 2005 H105 Credit provisions ( m) H106 Particularly spectacular decline among corporate clients Coverage ratio maintained at high level (80.6%) H105 H106 Credit provisions (annualized)/ credit risk-weighted assets (basis points) 10

11 Group The balance sheet is still very strong Steady Tier 1 capital generation bn Total regulatory capital H05/1H06 +13% Tier 1 capital: up 14% * Tier one % Growth in capital makes it possible to combine substantial growth in loans outstanding with one of the strongest balance sheets in the market Tier 1 ratio: 8.4% Tier 2, Tier /30/05 12/31/05 06/30/06 Capital +10% Further increase in number of member-stakeholders up 8% * to 3.1 million member-stakeholders Banque Populaire Group Crédit Agricole Group (Q106) BNP Paribas Société Générale Tier 1 ratio 8.4% 8.0% 7.6% 7.3% * over 12 months 11

12 Group Balanced deposit and loan growth bn Customer savings Customer deposits Personal customers Corporate clients & small businesses Other (1) Life insurance Employee benefits planning Mutual funds % Personal customers Corporate clients & small businesses % personal customers Other 06/30/05 12/31/05 06/30/06 Assets managed Other 06/30/05. 12/31/05 06/30/06 Outstanding loans (1) Client certificates of deposit and debt instruments 12

13 Group Consolidated income statement m H106 H105 H106/H105 Net banking income 4,720 4, % Operating expenses (2,847) (2,608) Gross operating income 1,873 1, % Impairment charges and other credit provisions (164) (178) Operating income 1,709 1, % Share of income of associates 11 5 Gains or losses on other assets 11 7 Change in value of goodwill - - Income taxes (568) (443) Net income before minority interests 1, % Minority interests (131) (92) Net income att. to equity holders of the parent 1, % Annualized ROE 15.9% 13.5% +2.4 pts 13

14 Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix 14

15 Banques Populaires Income statement m H106 H105 H106/H105 Net banking income 2,818 2, % Operating expenses (1,753) (1,686) Gross operating income 1, % Impairment charges and other credit provisions (166) (168) Operating income % Share of income of associates 6 1 Gains or losses on other assets 2 9 Change in value of goodwill - - Income taxes (317) (262) Net income before minority interests % Minority interests (3) (13) Net income att. to equity holders of the parent % 15

16 Banques Populaires Composition of net banking income m Other 2,594 2,818 H105/H % Fee and commission income increased sharply (up 12%), with particularly strong growth in commissions on securities transactions (up 30%) Fee and commission income % Determined strategy to enhance customer take-up Interest margin % 7.6 contracts per customer Intensification of sales activity in customer savings H105 Net banking income H106 Lower contribution from interest margin against a background of interest rate rises and very strong competitive pressure on loans Increased volatility in movements due to IFRS (NBI before PEL/CEL provisions * : up 5.8%) Payment media Loans Insurance Securities transactions H105/H % +16% +12% +30% Accounts, services, other % H105 H106 Commission income (customers) * provisions for homebuyers' savings scheme 16

17 Banques Populaires A powerful multi-brand platform Even closer to customers 63 branches opened during the first half (net: 49) 2,856 branches at June 30, 2006 Business center expansion: up business centers More than 1,000 customer-service employees recruited (6 months) 2/3 of employees allocated to network Closeness enhanced by development of remote channels 174 new automatic teller machines 4,144 ATMs at June 30, million incoming calls to call centers Internet connections up 40%, subscribers up 50% 55 million internet connections 17

18 Banques Populaires Personal customers: successes and initiatives 220,000 new clients, of which 39% with 'young' customers 6,240,000 personal Banques Populaires customers Still strong position in upper socio-economic segment Pick-up in life insurance growth Life insurance: significantly better performance than the market Gross new money in unit-linked: up 103% (market: up 75%) Outstandings: up 13% (market: up 11%) - success of Fructi-Pulse and Fructi-Néo policies Personal risk insurance: good start for Autonomis dependency product Property and casualty insurance: 558,000 (up 12%) Increase in new money from customer deposits despite change in homebuyers savings schemes regulations: 53bn in outstandings (up 4%) New loans increased to 7.6bn (up 19%), driven by home loans Outstanding home loans: 47.1 bn (up 15%) Outstanding consumer loans: 8.1 bn (up 4%) Partnership agreement signed with Mutuelle des Etudiants for loans without parental guarantee Sales innovation Carte Football Banque Populaire : first affinity card in French market 18

19 Banques Populaires Small businesses: enhanced leadership position No. 2 in French market 1 craftsman in 3 1 tradesman in 4 Banques Populaires customers 2,300 dedicated advisers Business start-ups: number one ranking confirmed with 30% market share Development of 'twin relationships' Steady new lending growth: up 6% 34 Socama mutual guarantee companies supporting investment Increase in new business: up 20% (by value) Success of Socama loans confirmed in partnership with FEI Express Socama loan: new business up 28% Transmission Socama loan: successful launch with more than 72m in new business Expansion of electronic banking 280,000 cards for small businesses 12 million transactions 187,000 small retailer contracts 267 million items processed 19

20 Banques Populaires Corporate clients: a key player 1 out of every 2 SMEs has a relationship with the Group Leading principal banker to SMEs Closer to customers through opening of new business centers Enhanced relationships with SMEs through 4 priorities: Being the leading receivables management bank Accelerated growth in factoring contracts: new contracts up 38% Capturing transactions, particularly specialised transactions Restructuring of cash management products with creation of Actiflow product Expanding internationally Increase in international development advice business with Natexis Pramex International: revenues up 8% with more than 200 new contracts signed during first half Expanding employee benefits planning Solid strengths with number 1 position in employee savings and leading role in marketing of CESU benefits 20

21 Banques Populaires Impetus of strategic plan Sales performance in line with four major thrusts of the strategic plan Pursue strategy of winning new business, particularly in personal customers market (branch opening, customer segmentation, multi-channel operations) Enhance customer loyalty and take-up (customer savings and bancassurance) Improve collective efficiency, particularly thanks to technological potential of shared information systems platform Enhance new business portfolio 21

22 Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix 22

23 NBP Income statement m H106 H105 H106/H105 Net banking income 1,928 1, % Operating expenses (1,131) (950) Gross operating income % Impairment charges and other credit provisions 2 (10) Operating income % Share of income of associates 5 7 Gains or losses on other assets 8 (3) Change in value of goodwill - - Income taxes (239) (174) Net income % Minority interests (35) (15) Net income att. to equity holders of the parent % Annualized ROE 20.9% 15.8% +5.1 pts 23

24 NBP Corporate and Institutional Banking and Markets Strong momentum in all business sectors Continuing expansion of cross-selling High value-added businesses strengthened Sharp acceleration of growth in all structured finance and capital markets activities (fixed income and foreign exchange desks) equity brokerage (particularly in the USA) and primary markets in Europe commodities financing thanks to increase in revenue from Energy & Metals businesses international business with growth in NBI from financial institutions and corporate finance Very good results Strong revenue growth Sharp improvement in cost/income ratio to 54.4% (-6.4 points), one of the best in investment banking Very substantial growth in profitability m Net banking income Operating expenses Gross operating income Credit provisions Income before income taxes Global Debt & Derivatives Markets Δ: +89% % Natural Resources Δ: +32% % 69 9% H (434) % % 78 10% H (339) 218 (4) 210 Equity Group Δ: +53% Corporate France Δ: -2% International +43% +66% +79% Δ: +26% Mergers and Acquisitions NBI ( m) Δ: 1H06/1H05 24

25 NBP Private Equity and Wealth Management 13% Private equity Large gains realized in the first half Rapid rebuilding of stock of deferred gains High pace of investment m Net banking income H H % More than half of assets under management are for third parties Wealth Management Operating expenses Gross operating income Credit provisions (48) (45) 104 (3) +100% Outstanding loans: 5.3 bn (up 12%) Income before income taxes % Net banking income: up 32% Substantial improvement in profitability First results of restructuring in Luxembourg and good progress in Paris Private Equity 230 Δ: +77% 90% 25 10% Wealth Management Δ: +32% NBI ( m) Δ: 1H06/1H05 25

26 NBP Services All businesses performed well Life insurance Strong growth in gross new money: up 65%, driven by the success of Fructi-Pulse and Fructi-Néo Outstanding unit-linked policies: up 20% Employee benefits planning Assets under management: up 25% to 16.6bn New money increased by 1.8bn thanks to expansion of relationships with customers and addition of new customers Asset management: net banking income up 28% Financial services Strong growth of market orders in France (up 71%) Managed assets: 447bn Banking services Cards managed: up 5% to 5.7 million with 355 million cardholder transactions (up 9%) Investor servicing - NBI: 3m (x2.5) m Net banking income Operating expenses Gross operating income Credit provisions Income before income taxes Asset management Δ: +28% Insurance Δ: +14% % Employee benefits planning Δ: +18% % 45 10% H (237) NBI ( m) 23% 84 20% 83 19% 77% H (216) 141 (1) 138 Banking services Δ: +23% Financial services Δ: +14% Investor Servicing Δ: n.m. +20% +35% +35% Δ: 1H06/1H05 26

27 NBP Receivables Management 22% 78% Coface Good sales momentum Insurance premiums: up 12% Services revenue: up 7% Slight deterioration in loss ratio, though it remains very low (47%) m Net banking income Operating expenses Gross operating income H (276) 135 H (255) % -10% International expansion Credit provisions (5) (3) Continuing growth in Russia with launch of a valuation tool for Russian SMEs Income before income taxes % Factorem 18% increase in factored receivables to 6.6bn Expansion of VR Factorem (German subsidiary) with factored receivables up 50% Natexis Factorem Coface 14% 86% Δ:+12% Δ: - NBI ( m) Δ: 1H06/1H05 27

28 NBP Balance sheet bn 06/30/06 12/31/05 Tier 1 capital: up 7% over 6 months Tier 1 ratio satisfactory at 8% Tier 1 ratio Total regulatory capital Tier 1 capital 8.0% % Risk-weighted assets Hedging rate raised to 91.9% Non-performing loans NPL share* % % Fall in proportion of non-performing loans (-0.4 point) in customer loans portfolio Provisions ** Hedging rate % % * based on customer loans ** individually and collectively 28

29 NBP Natexis Banques Populaires share performance 14, ,5 11, H106 based on average number of shares Earnings per share 06/30/04. 06/30/05 06/30/06 Net asset value per share based on number of shares at end of period Change 7/1/99 09/01/06 1/1/06 09/01/ Natexis Banques Populaires NBP +300% +46% CAC % +9% 12 0 Euro Stoxx Bank Euro Stoxx Bank +46% +13% CAC Price 1/1/06 09/01/ : IFRS 4 29

30 Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix 30

31 Group Conclusion This excellent first-half performance reflects: not only a number of favourable cyclical factors (credit provisions, provisions for homebuyers savings schemes etc.) but also very strong economic and financial fundamentals whose value is realized by a balanced long-term strategy Banque Populaire Group is entering a decisive stage in its history in excellent shape: the strategic alliance with Caisse d Epargne Group for the forthcoming transformation of Natexis Banques Populaires into NatIxis will be built on solid foundations. 31

32 Banque Populaire Group Banque Populaire Banks Natexis Banques Populaires Conclusion Appendix 32

33 Appendix Banque Populaire Group Number of employees p.34 Consolidated financial statements: Statement of income p.35 Balance sheet p.36 to p.37 Cash flow statement p.38 to p.39 Weighted risks p.40 Rankings p.41 Banque Populaire Banks Map of Banque Populaire regional banks p.42 Customer loans p.43 Assets managed p.44 Personal customers p.45 to p.46 Small businesses and corporate clients p.47 to p.48 Remote banking p.49 Natexis Banques Populaires Consolidated financial statements: Statement of income p. 50 Balance sheet p. 51 to p. 52 Cash flow statement p.53 to p.54 Corporate and institutional banking and markets p.55 Private equity and wealth management p. 56 Managed assets p.57 Services p.58 to p.60 Receivables management p.61 Credit risk p. 62 to p.63 Selected deals p.64 to p.65 33

34 Appendix Number of employees Group Banques Populaires Banques Populaires Crédit Maritime Mutuel MA Banque BICEC Processing centers Financing, investment banking and services Natexis Banques Populaires Natexis Banques Populaires subsidiaries o/w: Coface Banque Fédérale des Banques Populaires Other subsidiaries Total at June 30, 2006 o/w: international 31,151 28, ,749 4,537 9,212 4, ,831 4,832 Total number of employees expressed as full-time equivalent, excluding maternity, sick and unpaid leave 34

35 Appendix Consolidated income statement Group m Interest and similar income Interest and similar expenses Fee and commission income Fee and commission expense Net gains/losses on financial instruments at fair value through profit or loss Net gains or losses on available-for-sale financial assets Income from other activities Expenses from other activities Net banking income Operating expenses Amortization, depreciation and impairment Gross operating income Impairment charges and other credit provisions Operating income Share of income of associates Gains or losses Change in value of goodwill Income before income taxes Income taxes Net income Minority interests Net income attributable to equity holders of the parent H106 6,361 (4,168) 1,793 (439) ,781 (3,079) 4,720 (2,684) (163) 1,873 (164) 1, ,731 (568) 1,163 (131) 1,032 H105 5,159 (3,416) 1,565 (395) ,826 (3,124) 4,066 (2,463) (145) 1,458 (178) 1, ,292 (443) 849 (92)

36 Appendix Consolidated balance sheet assets Group m Cash and balances with central banks and post offices Financial assets meas. at fair value through profit or loss Hedging instruments Available-for-sale financial assets Loans and advances to banks Loans and advances to customers Interest rate hedging reserve Held-to-maturity financial assets Current income tax assets Deferred income tax assets Other assets Non-current assets held for sale Investments in associates Investment property Property, plant & equipment Intangible assets Goodwill TOTAL ASSETS 06/30/06 12/31/05 2,884 3,129 42,380 33, ,898 48, , , , ,210 1, , ,920 55, , , , ,154 1, ,711 36

37 Appendix Consolidated balance sheet liabilities Group m Due to central banks and post offices Financial liabilities at fair value through profit or loss Hedging instruments Deposits from banks Customer deposits Debt securities in issue Interest rate hedging reserve Current income tax liabilities Deferred income tax liabilities Other liabilities Liabilities associated with non-current assets held for sale Insurance companies technical reserves Provisions Subordinated debt Equity attributable to equity holders of the parent Share capital and reserves Retained earnings Unrealized or deferred gains or losses Net income for the period Minority interests TOTAL LIABILITIES AND EQUITY 06/30/ , ,862 97,654 63, ,855-31,327 1,818 5,936 14,642 8,883 4, ,032 1, ,119 12/31/ , , ,483 49, ,517-29,677 1,922 6,404 13,699 8,383 3, ,522 1, ,711 37

38 Appendix Cash flow statement (1/2) Group m Earnings before tax +/-Net charge to depreciation and amortization of property, plant & equipment and intangible assets +/-Impairment charges of goodwill and other non-current assets +/-Net charge to other provisions (including insurance reserves) +/-Share of income of associates +/-Net loss/(gain) on investing activities +/-Net loss/(gain) on financing activities +/-Other movements =Total non-cash items included in income before income taxes and other adjustments +/-Decrease/(increase) in interbank and money market items +/-Decrease/(increase) in customer items +/-Decrease/(increase) in other financial assets or liabilities +/-Decrease/(increase) in non-financial assets or liabilities -Income taxes paid =Net decrease/(increase) in operating assets and liabilities Total net cash provided/(used) by operating activities (A) +/-Decrease/(increase) in financial assets and investments in associates +/-Decrease/(increase) in investment property +/-Decrease/(increase) in property, plant & equipment and intangible assets Total net cash provided/(used) by investing activities (B) 06/30/06 1, (29) 2,079 (11) (166) - (203) 1,832 5,540 (18,614) 13, (509) 337 3,900 (3,240) (85) (217) (3,542) 12/31/05 2, (9) 2,953 (15) (414) - (79) 2,743 1,168 (10,426) 1,340 3,486 (868) (5,299) (6) (1,841) (159) (209) (2,209) 38

39 Appendix Cash flow statement (2/2) Group m +/-Cash received from/(paid to) shareholders +/-Other cash provided/(used) by financing activities Total net cash provided/(used) by financing activities (C) Effect of exchange rate changes on cash and cash equivalents (D) Net increase/(decrease) in cash & cash equivalents (A + B + C + D) Net cash provided/(used) by operating activities (A) Net cash provided/(used) by investing activities (B) Net cash provided/(used) by financing activities (C) Effect of exchange rate changes (D) Opening cash & cash equivalents Cash with/due from central banks (assets & liabilities) Interbank balances Closing cash & cash equivalents Cash with/due from central banks (assets & liabilities) Interbank balances Change in cash & cash equivalents 06/30/06 (36) (602) (638) (98) (378) 3,900 (3,542) (638) (98) 509 2,713 (2,203) 131 1,911 (1,780) (378) 12/31/ ,148 1, (880) (6) (2,209) 1, ,390 3,329 (1,939) 509 2,713 (2,203) (880) 39

40 Appendix Risk-weighted assets Group bn /30/03, 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 Natexis Banques Populaires Banques Populaires 40

41 Appendix Some rankings Group Ranking * Employee benefits planning Business start-up loans SME principal banker Franchise financing Solidarity-based savings Microcredit financing Company information Equity research French agency bond issues Mutual funds distributor (Natexis Asset Management) Factoring LBO financing (number of deals) Credit insurance world ranking * Rankings are national except for credit insurance 41

42 Appendix Banques Populaires Banque Populaire Banks 19 Banque Populaire regional banks with one merger being studied Casden Banque Populaire, Crédit Coopératif B.P. du Nord B.P. de l Ouest Bred B.P. B.P. Rives de Paris Bred B.P. B.P. Lorraine Champagne B.P. d Alsace B.P. Atlantique B.P. Val de France B.P. Bourgogne Franche-Comté B.P. Sud-Ouest B.P. Centre Atlantique B.P. Toulouse-Pyrénées B.P. Massif Central B.P. Occitane B.P. du Sud B.P. Loire et Lyonnais B.P. des Alpes B.P. Provençale B.P. et Corse Côte-d'Azur Martinique, Guadeloupe, Réunion (Bred B.P.) (Provençale et Corse) 42 merger feasibility study

43 Appendix Customer loans Banques Populaires bn Consumer loans % Personal customers Home loans % Operating loans Corporate clients and small businesses Equipment loans % Other 06/30/05. 12/31/05 06/30/06 Outstanding loans 43

44 Appendix Assets managed Banques Populaires bn Demand deposits % % Life insurance Regulated savings Mutual funds Time deposits (1) /30/05. 12/31/05 06/30/06 06/30/05. 12/31/05 06/30/06 Other (2) Customer deposits Customer savings (1) including client certificates of deposit and debt instruments (2) employee savings, SCPI shares, equities and bonds under management 44

45 Appendix Banques Populaires Personal customers (1) Personal customers 5,700,000 5,900,000 6,130,000 6,241,000 12/31/03. 12/31/04 12/31/05 06/30/06 Insurance Policies (number) Non-life (motor and home) Personal risk Life insurance (premiums) 06/30/06 5,075, ,000 4,517,218 2,742m 06/30/05 4,538, ,990 4,049,151 1,803m +12% +12% +11% +52% 600, , , , , , , ,000 06/30/02. 12/31/02 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 558, , , , , , , ,850 Number of non-life policies 45

46 Appendix Personal customers (2) Banques Populaires Loans bn +18% 9.0 Consumer Home H104 H105 H106 New consumer and home loans Sources of funds bn Demand deposits +4% Savings* /30/05. 12/31/05 06/30/06 Outstanding liabilities /05/ / 05/03 31/ 05/04 31/05/ 05 31/ 05/06 Sources of funds market share source: Banque de France * EARS savings accounts + time accounts 46

47 Appendix Small businesses and corporate clients (1) Banques Populaires Corporate clients Small businesses New loans bn +9% H104 H105 H106 New small business & corporate lending Banques Populaires 30% Other 3% 15% Crédit Agricole CIC 12% 3% Crédit du Nord 8% 7% Société Générale LCL 6% 8% 8% BNPParibas Crédit Mutuel Caisses d Epargne New company loans (national market share) Small business card market % 278, Number of transactions H million 1H million 06/30/02. 06/30/03 06/30/04 06/30/05 06/30/06 Number of small business cards (thousand) 47

48 Appendix Banques Populaires Small businesses and corporate clients (2) Small retailer contracts /31/01. 06/30/02 12/31/02 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 Small retailer contracts (thousand) H201 H102 H202 H103 H203 H104 H204 H105 H205 H106 Transactions (million) Prêt investment loans with FEI guarantee m LBO loans Express loans = Q106 Q206 H106 New lending 48

49 Appendix Remote banking Banques Populaires Internet-based customer-bank relationships Number of subscribers 1,700, ,500, ,300, ,195,698 1,250,000 1,100,000 1,019,553 1,064, , , , , ,460, ,600, Total connections (millions) Customer take-up rate - Personal: 38% -Corporate: 44% 100,000 Q105 Q205 Q305 Q405 Q106 Q206 0 Internet customers 181, ,449 33,568 69, , ,198 Number Pages viewed Accounts H106 30,140, ,000 Jan Feb Mar Apr May Jun Total number of orders 49

50 Appendix Consolidated income statement NBP m Interest and similar income Interest and similar expenses Fee and commission income Fee and commission expense Net gains or losses on financial instruments at fair value through profit and loss Net gains or losses on available-for-sale financial assets Income from other activities Expenses from other activities Net banking income Operating expenses Amortization, depreciation and impairment Gross operating income Impairment charges and other credit provisions Net operating income Share of income of associates Gains or losses Change in value of goodwill Income before income taxes Income taxes Net income Minority interests Net income attributable to equity holders of the parent H106 3,359 (2,723) 743 (376) ,371 (2,654) 1,928 (1,091) (40) (239) 574 (35) 539 H105 2,248 (1,958) 619 (337) ,311 (2,643) 1,491 (910) (40) 541 (10) (3) (174) 361 (15)

51 Appendix Consolidated balance sheet assets NBP m Cash and balances with central banks and post offices Financial assets meas. at fair value through profit or loss Hedging instruments Available-for-sale financial assets Loans and advances to banks Loans and advances to customers Interest rate hedging reserve Held-to-maturity financial assets Current income tax assets Deferred income tax assets Other assets Non-current assets held for sale Investments in associates Investment property Property, plant & equipment Intangible assets Goodwill TOTAL ASSETS 06/30/06 12/31/ ,022 26, ,583 51,020 55,508-7, , , , ,240 56,099 49,200-7, , , ,119 51

52 Appendix Consolidated balance sheet liabilities NBP m Due to central banks and post offices Financial liabilities at fair value through profit or loss Hedging instruments Deposits from banks Customer deposits Debt securities in issue Interest rate hedging reserve Current income tax liabilities Deferred income tax liabilities Other liabilities Liabilities associated with non-current assets held for sale Insurance companies technical reserves Provisions Subordinated debt Equity attributable to equity holders of the parent Share capital and reserves Retained earnings Unrealized or deferred gains or losses Net income for the period Minority interests TOTAL LIABILITIES AND EQUITY 06/30/ , ,095 17,984 49, ,142-27, ,290 5,876 3,552 1, ,814 12/31/ , ,853 23,990 37, ,490-26, ,293 5,357 3,224 1, ,119 52

53 Appendix Cash flow statement (1/2) NBP m Earnings before tax +/-Net charge depreciation/amortization of property, plant & equipment & intangible assets +/-Impairment charges of goodwill and other non-current assets +/-Net charge to other provisions (including insurance reserves) +/-Share of income of associates +/-Net loss/(gain) on investing activities +/-Net loss/(gain) on financing activities +/-Other movements =Total non-cash items included in income before income taxes and other adjustments +/-Decrease/(increase) in interbank and money market items +/-Decrease/(increase) in customer items +/-Decrease/(increase) in other financial assets or liabilities +/-Decrease/(increase) in non-financial assets or liabilities -Income taxes paid =Net decrease/(increase) in operating assets and liabilities Total net cash provided/(used) by operating activities (A) +/-Decrease/(increase) in financial assets and investments in associates +/-Decrease/(increase) in investment property +/-Decrease/(increase) in property, plant & equipment and intangible assets Total net cash provided/(used) by investing activities (B) 06/30/ (24) 1,853 (5) (153) ,747 3,378 (12,324) 10, (239) (1,604) 4,164 (2,395) (68) (66) (2,529) 12/31/05 1, (10) 2,507 (14) (308) - (278) 1, (7,274) 454 3,196 (309) (3,528) (490) (2,747) (143) 105 (2,786) 53

54 Appendix Cash flow statement (2/2) NBP m +/-Cash received from/(paid to) shareholders +/-Other cash provided/(used) by financing activities Total net cash provided/(used) by financing activities (C) Effect of exchange rate changes on cash and cash equivalents (D) Net increase/(decrease) in cash & cash equivalents (A + B + C + D) Net cash provided/(used) by operating activities (A) Net cash provided/(used) by investing activities (B) Net cash provided/(used) by financing activities (C) Effect of exchange rate changes on cash and cash equivalents (D) Opening cash & cash equivalents Cash with/due from central banks (assets & liabilities) Interbank balances Closing cash & cash equivalents Cash with/due from central banks (assets & liabilities) Interbank balances Change in cash & cash equivalents 06/30/06 (38) (1,096) (1,134) (86) 415 4,164 (2,529) (1,134) (86) (6,508) (193) (6,315) (6,093) (717) (5,376) /31/05 (116) , (1,773) (490) (2,786) 1, (4,735) 170 (4,906) (6,508) (193) (6,315) (1,773) 54

55 Appendix Corporate and Institutional Banking and Markets NBP bn Corporate France Lease financing International financing Commodities Structured finance Other * H104 H105 H106 Average outstandings * Financial engineeringand syndications activities; optimization and placing of credit 55

56 Appendix NBP Private Equity and Wealth Management Private Equity m Proprietary portfolio Investments Divestments (sale price) H H LBO 23% International 33% Own-account managed assets (a) Managed private equity funds Investments Divestments (sale price) Third party managed assets (b) 1, ,302 1, ,179 Expansion financing 31% Venture capital 13% Total managed assets (a)+(b) 2,533 2,469 Breakdown of investments (first-half 2006) Wealth Management bn International wealth engineering % Private asset management /30/05. 12/31/05 06/30/06 Assets under management 56

57 Appendix Managed assets NBP bn Net new money 5.7 Valuation Personal customers 12/31/05. Outstandings 06/30/06 Corporate clients Insurance Real estate inv management Wealth management Employee benefits planning 1% 5% 22% 14% 58% Mutual funds Real estate Cash 2% 35% 24% 3% 9% 27% Shares Diversified Bonds Guarantees Managed assets Breakdown by type of asset excluding wealth management 57

58 Appendix Services (1) NBP Employee benefits planning Employee accounts managed (million) 35,000 30, , , ,000 11,563 10,000 8,754 9,183 9,870 5, , , , , * 20,905 +6% % 25,800 25, , Corporate clients (number) 0 12/31/00 06/30/01 12/31/01 06/30/02 12/31/02 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 * impact of early unblocking measures 0 Insurance bn Unit-linked % /31/02. 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 Life insurance outstandings 58

59 Appendix Services (2) NBP Banking services 1,239 1,311 1,298 1,392 1,429 1,448 1,465 1,507 1, H201 H102 H202 H103 H203 H104 H204 H105 H205 H106 Number of high-volume G-SIT transactions (million) cards (million) transactions (million) 0 12/31/01 06/30/02 12/31/02 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 12/31/05 06/30/06 Number of cards and cardholder transactions (million)

60 Appendix Services (3) NBP Financial Services bn % /30/01 12/31/01 06/30/02 12/31/02 06/30/03 12/31/03 06/30/04 12/31/04 06/30/05 31/12/05 30/06/ H101 H201 H102 H202 H103 H203 H104 H204 H105 H205 H106 Assets in custody Number of transactions (million) 60

61 Appendix Receivables Management NBP Coface m m Rest of world % % France Insurance % % Services Italy 72 11% % Germany Sales by region Sales by business Natexis Factorem 46% 47% 78% 3.9 bn % cost ratio loss ratio combined ratio H200 H101 H201 H102 H202 H103 H203 H104 H204 H105 H205 H106 Ratios Factored receivables 61

62 Appendix Credit risk by region NBP Rest of European Economic Area 23.1% France Rest of Europe North America Latin America Africa and Middle East Asia-Pacific Other 3.3% 9.0% 1.8% 2.8% 2.6% 57.2% Total outstanding : 140.3bn 62

63 Appendix Credit risk by client industry NBP Services Energy Holding companies Real estate Retail & distribution Construction Administration Mechanical & electrical engineering Communication Basic industries Technology Foods International commodities trading Consumer goods Pharmaceuticals & healthcare Tourism, hotels & leisure Utilities Other 0.9% 4.3% 3.9% 3.0% 2.8% 2.8% 2.2% 6.4% 6.3% 6.3% 6.2% 5.8% 5.5% 5.4% 7.4% 8.5% 11.5% 10.9% Total outstanding: 80.7bn excluding financial institutions and insurance 63

64 Appendix Selected deals (1) NBP Corporate lending February 2006 March 2006 April 2006 May 2006 June 2006 June 2006 EUR 300,000,000 Mandated Lead Arranger Bookrunner Agent EUR 4,000,000,000 Mandated Lead Arranger Bookrunner EUR 900,000,000 Mandated Lead Arranger Bookrunner EUR 300,000,000 Mandated Lead Arranger Bookrunner Agent EUR 700,000,000 Mandated Lead Arranger Sole Bookrunner Agent EUR 1,500,000,000 Mandated Lead Arranger Structured finance Brazil January 2006 January 2006 LBO February 2006 ABN Amro Capital France Project Finance May 2006 Kuwait 2006 June 2006 France CVRD USD 50,000,000,000 Pre-Export Finance Facility Mandated Lead Arranger Senior Unsecured Corporate Revolving Facility 500 million Arranger & Bookrunner Sales: EUR 250,000,000 Mandated Lead Arranger & Bookrunner Greater Equate USD2.5 billion Petrochemical Complex Mandated Lead Arranger China Southern Airlines French Optimised Lease for 3 Airbus A USD 130,000,000 Arranger & Agent Financing of the acquisition of France Printemps EUR 1 billion Sole Mandated & Lead Arranger 64

65 Appendix Selected deals (2) NBP Bond issues 500m 200m 400m 1.750bn 1,150m / 600m 429m 350m E3M + 20bp May 2009 Co-manager March % May 2016 Joint Bookrunner April % May 2016 Joint Bookrunner May % / 4.75% May 2013 / May 2016 Joint Bookrunner May % March 2018 Joint Bookrunner June % October 2016 Joint Bookrunner June 2006 Equities Placing of 8% of share capital 18m Lead manager Eurolist IPO 130m Co-lead manager Capital increase with preferential subscription rights 2,500m Co-lead manager Alternext IPO 20m Lead manager Capital increase without preferential subscription rights 13m Lead manager Eurolist IPO 1,300m Co-lead manager February 2006 March 2006 March 2006 June 2006 June 2006 March

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