THEFRENCHBANKI
NG MARKETI
NFI
GURES
Contents
INTRODUCTION
2
1
3
THE BANKING SECTOR IN 2012
1.1
Credit institutions, investment firms and payment institutions
1.1.1 A broad shareholder base for French-owned institutions
1.1.2 A sector that is open to foreign capital
1.2
Extensive use of the European passport
1.2.1 Access to the French market
1.2.2 Passporting by French institutions
3
4
5
7
7
10
2
EARNINGS INCREASED ON A PARENT COMPANY BASIS IN 2012
12
3
STRUCTURE OF PARENT COMPANY BALANCE SHEETS
17
3.1
A change in the composition of liabilities, with the focus on deposit-taking
3.1.1 Main liability components
3.1.2 Customer deposits
3.1.3 Financing in the form of securities
17
17
20
22
3.2
Banks continued to finance the economy
3.2.1 Main asset components
3.2.2 Loans to customers continued to increase in France in 2012
3.2.3 Investments in the form of securities
23
23
24
28
4
4.1
VIGILANCE STILL NECESSARY FOR CERTAIN RISKS
Rebalancing of bank balance sheets constrained
4.2
Credit risk
4.2.1 Quality of loan assets
4.2.2 Home loans
29
29
33
33
34
APPENDICES
36
GLOSSARY
52
TABLES AND CHARTS
54
Sector data
INTRODUCTION
Despite challenging economic conditions, France’s credit institutions and insurance entities proved resilient in
2012, with parent company accounts showing that earnings improved overall compared with 2011. The French
banking system continued to finance the economy, while pursuing balance sheet adjustment measures. Insurers,
meanwhile, reported an improved prudential situation, helped by a strong showing from financial markets in 2012.
This report describes the situation of the French banking and insurance market based on an aggregation of parent
company data sent to the Autorité de contrôle prudentiel et de résolution (ACPR) by the institutions and entities
under its supervision. Note that the analyses based on individual data provided in this report may differ from those
based on consolidated information contained in other reports published by the ACPR that primarily concern
France’s leading banking groups, rather than the domestic market as a whole.
Accordingly, on an aggregate, parent company basis, in 2012, the French banking sector posted net income of
EUR 15.1 billion overall, up 38% compared with 2011, but EUR 10 billion lower than in 2010. Overall net banking
income grew by 7.8% to EUR 115.7 billion at end-2012. Insurance entities, taken as a whole, also posted an
improvement in net income, reporting EUR 7.7 billion in 2012 after EUR 6.9 billion in 2011. However, the overall
increase concealed a contrast between life insurance, where underwriting income jumped from EUR 1.9 billion to
EUR 6.4 billion between 2011 and 2012, and non-life insurance, which saw income fall by EUR 0.7 billion to EUR
3.4 billion in 2012.
The aggregate total assets of French credit institutions came to EUR 8,390 billion at 31 December 2012, up 0.5%
compared with 2011. The overall balance sheet saw substantial changes, particularly on the liabilities side, with an
increase in the share of customer deposits. With the interbank market still relatively flat, banks put the focus back
on deposit-taking in 2012 as the maximum investment ceilings were raised for Livret A and then LDD passbooks.
The increase in the passbook ceilings did not seem to materially affect the life insurance sector, which did however
record in 2012 its first ever annual net outflow of funds (although this was small in relation to total outstandings).
The EUR 135.5 billion in premiums collected in life insurance as a whole in 2012 was down 5.5% compared with
the previous year. The surge in net investment income in 2012 (EUR 69.9 billion, up from EUR 23.8 billion in
2011) did however more than make up for the decline in premiums, which was exacerbated by the increase in
surrenders. As a result, life insurance posted strong results in 2012. It was a different situation in non-life insurance,
where premiums climbed to EUR 117.8 billion but the overall increase in loss ratios impacted earnings, which
ended up at a level comparable to that of recent years.
The insurance sector was lifted in 2012 by a sharp increase in unrealised capital gains for all types of insurer.
Amounting to EUR 157.8 billion at 31 December 2012, these gains were equal to 7.6% of the sector’s aggregate
total assets at book value (EUR 2,068.8 billion) and to 7.1% of assets at market value, which helped to enhance
solvency among insurance entities.
The ACPR will continue to carefully monitor the risks faced by the banking and insurance sectors. In this regard,
work on strengthening liquidity in the banking system and improving coverage of regulated commitments in the
insurance sector must be pursued. In the insurance sector, the ACPR will pay especially close attention to
developments on the health insurance market.
2
Sector data
BANKS
1 The banking sector in 2012
1.1
Credit institutions, investment firms and payment institutions
The decline in the population of credit institutions authorised in France observed in 2012 (634 institutions 1 at end2012 compared with 656 at end-2011, (table 1) forms part of a trend that has been in place for several years and
illustrates ongoing consolidation within the sector as well as efforts to adjust banking and financial system
structures. The fall in the number of authorised institutions chiefly concerned financial corporations (11 fewer),
banks (4 fewer), branches of European Economic Area (EEA) credit institutions (4 fewer) as well as mutual and
cooperative banks (3 fewer). The numbers of municipal credit banks and specialised financial institutions remained
unchanged.
The total number of investment firms authorised by the ACPR fell slightly to 94 at end-2012. Compared with 2011,
in a continuation of the trend from the previous year, the number of payment institutions authorised by the ACPR
increased from 12 to 17, whereas the number of branches of payment institutions set up under the freedom of
establishment was unchanged, at 4. The number of credit institutions authorised to do business in Monaco was
broadly the same, at 25.
Table 1 Credit institutions, investment firms and payment institutions in France, and
credit institutions in Monaco
2002
A - CREDIT INSTITUTIONS AUTHORISED IN FRANCE
1. INSTITUTIONS AUTHORISED TO ENGAGE IN ALL BANKING TRANSACTIONS
1.1. Banks
o/w branches of banks headquartered in third countries
1.2. Mutual and cooperative banks
1.3. Municipal credit banks
2. FINANCIAL CORPORATIONS
3. SPECIALISED FINANCIAL INSTITUTIONS
B - BRANCHES OF EEA CREDIT INSTITUTIONS DOING BUSINESS UNDER THE FREEDOM
OF ESTABLISHMENT
TOTAL France (A + B)
2011
Change
2012/2011
2012
924
590
572
-18
418
310
303
-7
263
197
193
-4
28
22
21
-1
135
95
92
-3
20
18
18
-
490
277
266
-11
16
3
3
-
51
66
62
-4
975
656
634
-22
Source: ACPR.
1
including EEA branches under the freedom of establishment.
3
Sector data
Table 1 (continued)
2002
C - CREDIT INSTITUTIONS AUTHORISED IN MONACO
2011
Change
2012/2011
2012
37
24
25
1
33
23
24
1
32
23
24
1
1
0
0
-
2. FINANCIAL CORPORATIONS
4
1
1
-
2.1. Financial corporations engaging in different types of business and belonging to the
French Association of Financial Corporations
4
1
1
-
1012
680
659
- 21
1. INSTITUTIONS AUTHORISED TO ENGAGE IN ALL BANKING TRANSACTIONS
1.1. Banks (a)
1.2. Institution comparable to a municipal credit bank belonging to the French Banking
Federation (a)
TOTAL France and Monaco (A + B + C)
(a) Crédit Mobilier de Monaco became a bank in September 2011.
INVESTMENT FIRMS
Investment firms authorised by the ACPR
Branches of investment firms doing business under the freedom of establishment
TOTAL
Paym ent institutions
Payment institutions authorised by the ACPR
Branches of payment institutions doing business under the freedom of establishment
TOTAL
Change
2012/2011
2002
2011
2012
146
97
93
-4
23
52
49
-3
169
149
142
-7
2002
2011
2012
12
17
5
4
4
-
16
21
-
Change
2012/2011
5
Source: ACPR.
The French banking and financial system is characterised by a broad shareholder base and wide international
exposure, which is illustrated both by the significant presence of foreign institutions in France and that of French
credit institutions abroad.
Thus, at end-2012, of the 634 credit institutions operating in France, 448 (71%) were French-owned and 186 (29%)
were foreign-owned (table 2 and table 3).
1.1.1
A broad shareholder base for French-owned institutions
Out of the total number of credit institutions owned by French capital, at end-2012, 329 (73% of the total) belonged
to non-public banking groups, of which 244 (54%) to French mutual banking groups and 85 (19%) to large private
groups (Table 2). The remainder (27% of the total) were controlled by shareholders in other economic sectors: 34
institutions (8% of the total) were owned by industrial, commercial and service sector groups, 29 (7%) by other
financial or shared ownership groups, 27 (6%) by the public sector, 18 (4%) were mostly held by individual
shareholders and 10 (2%) were owned by insurance groups. Industrial and commercial groups continued to
represent a significant share of the ownership of credit institutions, which is not always the case in comparable
countries such as Germany, Italy and the USA. The share of credit institutions owned by insurance groups,
however, remained relatively low.
4
Sector data
Table 2 French-owned credit institutions, by type of ownership at end-2012
Num ber of
shareholding
groups in
2012
Num ber of credit institutions in 2012
Ow nership
Mutual
banks
Banks
Large private-sector banking groups
30
55
3
4
Public-sector banking institutions
Mutual banking groups
Insurance companies
Industrial, commercial, services,
construction and public w orks,
professional groups
o/w public sector
Institutions w ith mixed ow nership
(credit institutions, investors,
institutional investors)
Financial
corporations
Total
20
85
2
27
4
59
91
94
244
4
4
1
5
10
7
14
1
20
2
34
23
2
6
22
29
26
1
1
1
9
18
17
448
84
Diversified financial groups
Natural persons
TOTAL
Other (a)
9
125
92
1
210
21
(a) Municipal credit banks and specialised financial institutions.
Source: ACPR.
1.1.2
A sector that is open to foreign capital
The French banking and financial system is open to foreign institutions. At end-2012, of the 186 credit institutions
under foreign control, 130 were banks, 55 were financial corporations, and one was a specialised financial
institution (table 3). There were also 62 investment firms, 7 payment institutions and 75 representative offices
under foreign control (table 4).
Table 3 Foreign-owned credit institutions, by type of ownership and geographical origin
Num ber of credit institutions at end-2012
Banks
Ow nership
Financial corporations and SFIs
OECD
Third
countrie
s
countrie
EEA
Other
OECD
Total
Third
countrie
s
countrie
EEA
Other
Banking group branches
62
6
15
83
Banking group subsidiaries
10
5
10
25
19
Insurance companies
3
1
4
2
Financial groups
2
4
Industrial, commercial, services
1
3
Total
Total
num ber
of
groups
99
Natural persons
Mixed banking and financial ow nership
TOTAL
3
1
79
22
1
7
4
9
1
4
2
3
3
29
130
33
1
3
23
2
5
7
7
13
12
21
11
0
4
3
5
56
137
20
3
Source: ACPR.
5
Sector data
Of the 186 credit institutions under foreign control, whether in the shape of subsidiaries or branches, 112 were
owned by EEA residents, chiefly from the UK (31), Germany (23), Belgium (13), Italy (11) and the Netherlands
(10) (Tables 3, 4 and 5).
The 74 credit institutions controlled by third countries (non-EEA) are mostly American (a total of 29 institutions,
comprising 9 banks, 19 financial corporations and 1 specialised financial institution).
Table 4 Foreign presence in France’s banking and financial system
CREDIT INSTITUTIONS
BANKS
Branches
European Economic Area
Third countries
Com panies incorporated in France
European Economic Area
Subsidiaries of foreign-ow ned banks
Companies controlled by non-bank investors
Mixed banking and financial ow nership
Third countries
Subsidiaries of foreign-ow ned banks
Companies controlled by non-bank investors
Mixed banking and financial ow nership
FINANCIAL CORPORATIONS
European Economic Area
Financial corporations for various purposes
Third countries
Financial corporations for various purposes
SPECIALISED FINANCIAL INSTITUTIONS
INVESTMENT FIRMS (a)
European Economic Area
Branches
Unpassported branches
Firms incorporated in France
Third countries
PAYMENT INSTITUTIONS
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
264
248
240
237
239
230
214
204
195
186
168
164
161
161
161
155
147
142
137
130
80
52
28
88
82
55
27
82
81
55
26
80
84
59
25
77
88
64
24
73
93
70
23
62
93
70
23
54
91
68
23
51
88
66
22
49
83
62
21
47
47
40
40
34
33
21
16
13
11
10
10
8
8
9
9
9
7
7
7
6
1
1
1
1
1
1
1
16
16
15
15
14
16
15
15
14
15
13
15
14
15
14
13
13
13
13
13
2
2
2
3
3
3
2
2
2
2
95
83
78
75
76
74
66
61
57
55
68
58
57
55
54
53
42
36
33
33
27
25
21
20
22
21
24
25
24
22
1
1
1
1
2
1
1
1
1
1
55
53
52
56
67
75
71
76
66
62
44
23
21
11
42
24
18
11
41
23
1
17
11
43
28
1
14
13
54
41
1
12
13
63
52
11
12
61
53
8
10
66
59
7
10
55
52
3
11
51
49
2
11
0
0
0
0
0
0
0
1
7
7
1
4
3
1
2
4
3
1
2
European Econom ic Area branches
Com panies governed by French law
European Economic Area
Third countries
REPRESENTATION OFFICES
European Economic Area
Third countries
(a) Excl. portfolio management companies.
Source: ACPR.
75
78
75
74
78
80
77
74
77
75
35
40
39
39
31
44
28
46
31
47
32
48
29
48
27
47
27
50
27
48
6
Sector data
1.2
1.2.1
Extensive use of the European passport
Access to the French market
BRIEFING
Freedom of establishment
The freedom of establishment is the ability for an operator of a Member State of the European Economic Area (EEA) to provide its services in
another Member State through a permanent establishment. This passporting approach, which until recently was exercised by setting up branches,
has developed since implementation of the payment services and electronic money directives through agents (payment services) and distributors
(electronic money).
Freedom to provide services (FPS)
The freedom to provide services is the ability for an operator of a Member State to provide services in another Member State without being
established there.
Freedom of establishment through branches
Of the 115 branches of European credit institutions and investment firms established in France (table 5), those with
headquarters in the UK are the most numerous, with 63 establishments in 2012. After growing strongly until 2008,
the number of British branches appears to have stabilised, due in particular to the implementation of the Markets in
Financial Instruments Directive. This enabled investment firms from any Member State to benefit from mutual
recognition on a wider range of services and instruments, notably forward financial instruments, and to use tied
agents to provide certain investment services on their behalf.
The European passport is widely used to set up branches in France, but its use is tending to decline slightly,
particularly owing to reorganisations dictated by economic conditions and the financial crisis. However this
approach continues to be extensively used by institutions from outside the EEA. With just a single authorised entity
in one of the EEA countries, these institutions can exercise their passport rights to do business in one or more other
EEA countries. Thus, of the 115 branches of institutions with their headquarters in an EEA Member State recorded
in France at 31 December 2012, 53 belonged to groups whose ultimate owners are non-EEA shareholders, or 46%
of the population (compared with 38% at end-2010).
7
Sector data
Table 5 Branches of credit institutions, investment firms and payment institutions in
France
2002
Notifying countries
2009
2010
2011
2012
74
123
127
UK
31
60
64
66
63
Germany
12
16
15
14
15
Italy
6
7
7
7
6
Netherlands
4
7
7
5
4
Spain
8
6
6
6
4
13
27
28
24
23
16
45
49
53
53
USA
9
28
30
32
32
Japan
2
4
5
4
4
Sw itzerland
1
3
3
4
4
Lebanon
1
1
1
1
1
Canada
0
2
2
3
3
Other countries
3
7
8
9
9
Other countries
Passported branches w here the ultim ate ow ners are outside the EEA
122
115
Source: ACPR.
Use of agents and distributors of electronic money
Since Payment Services Directive 2007/64/EC of 13 November 2007 was implemented, use of agents to supply
these services within French territory has developed considerably. In 2012, 5,310 agents were reported by
European payment institutions, or nearly double the number recorded in 2011. These notifications came from two
European States: Ireland, which accounted for 55% of the notifications, and the UK, which was responsible for
45%. Implementation of the second Electronic Money Directive (2009/110/EC) also led to about 20 notifications
concerning the use of distributors by UK electronic money institutions.
Freedom to provide services
Freedom to provide services (FPS) is the other way of using the EEA passport, allowing institutions to do business
in another EEA country without having a permanent establishment there. The number of institutions that report
their intention to operate under the FPS is the only available indicator for assessing this type of business. At 31
December 2012, 540 credit institutions, 2,499 investment firms, 160 payment institutions and 27 European
electronic money institutions were authorised to operate in France under the FPS (table 6). In the space of a year,
the number of institutions giving notification of their intention to operate in France rose by 9% (the same as in
2011), after a 14% increase in 2010, climbing from 2,965 in 2011 to 3,226 in 2012.
8
Sector data
Table 6 FPS notifications at 31 December 2012
Free provision of services in France
Notifications from 540
Notifications from
Notifications from 160 Notifications from 27
credit institutions
2,499 investm ent
paym ent institutions
authorised in another
firm s authorised in
authorised in another
EEA country
88
another EEA country
54
EEA country
5
Austria
29
23
Belgium
27
18
2
5
3
Country
electronic m oney
institutions
Germany
Bulgaria
Cyprus
5
82
Denmark
15
15
1
Spain
22
25
3
Estonia
1
1
Finland
8
5
Greece
2
10
authorised in another
EEA country
1
Hungary
7
2
Ireland
37
46
4
Iceland
6
Italy
27
7
1
Latvia
2
1
Liechtenstein
5
13
Luxembourg
62
44
3
3
Malta
8
8
1
1
Norw ay
4
25
Netherlands
68
94
Lithuania
1
1
8
Poland
2
2
Portugal
18
5
Czech Rep.
1
2
80
1,996
123
Slovakia
2
1
Slovenia
1
4
Romania
UK
Sw eden
TOTAL
1
16
11
540
2,499
160
22
27
Source: ACPR.
9
Sector data
1.2.2
Passporting by French institutions
Freedom of establishment
French institutions mainly use the European passport to set up establishments in Germany, Italy, the UK, Spain
and, to a lesser extent, Belgium. Since 2009, the number of passported branches opened by French institutions has
stabilised and even fallen somewhat. With the total standing at 161 at end-2012, compared with 168 at end-2011
(table 7), it reflects the same reorganisational reasons as those mentioned above for banks elsewhere in Europe.
Table 7 Branches opened by credit institutions, investment firms and payment
institutions in other EEA countries
Notified countries
2002
2009
2010
2011
2012
UK
20
24
24
22
22
Germany
17
26
26
26
26
Italy
16
25
24
26
24
Spain
16
21
23
24
24
Belgium
12
15
16
18
17
Luxembourg
7
5
5
5
5
Netherlands
6
7
7
7
8
Portugal
6
8
8
8
7
Other countries
15
34
33
32
28
115
165
166
168
161
Total
Source: ACPR.
French payment institutions also provided notifications on 55 agents, mainly in Germany.
Freedom to provide services
At 31 December 2012, a total of 1,262 notifications had been received from 156 French credit institutions and
610 notifications from 51 French investment firms seeking to do business in another EEA country, plus 92
notifications from 6 French payment institutions (table 8). The countries most favoured by French institutions are,
in order:
-
the UK (99), Italy (98), Belgium (90), Germany (85) and Spain (77) for credit institutions;
-
Belgium (47), the Netherlands (43), the UK (40), Germany (36) and Luxembourg (37) for investment
firms.
The same countries feature, albeit on a far smaller scale, for the six French payment institutions doing business
under the FPS (around five or six notifications per country).
10
Sector data
Table 8 FPS notifications in effect at 31 December 2012
Free provision of services in other EEA countries
Country
Notifications from 156
Notifications from 51
Notifications from 6
credit institutions
investm ent firm s
paym ent institutions
authorised in France
85
authorised in France
36
Austria
51
22
3
Belgium
90
47
6
Bulgaria
20
8
3
Germany
authorised in France
5
Cyprus
19
11
2
Denmark
45
19
2
Spain
77
35
5
Estonia
20
12
2
Finland
39
22
2
Greece
42
17
2
Hungary
28
13
4
Ireland
50
25
4
Iceland
16
10
1
Italy
98
34
5
Latvia
19
12
2
Liechtenstein
18
13
Lithuania
19
12
3
Luxembourg
74
37
5
Malta
20
12
2
Norw ay
30
18
1
Netherlands
69
43
4
Poland
32
13
4
Portugal
63
31
4
Czech Rep.
25
13
3
Romania
26
8
5
UK
99
40
5
Slovakia
24
12
3
Slovenia
17
12
3
Sw eden
47
23
2
1,262
610
92
TOTAL
Source: ACPR.
11
Sector data
2 Earnings increased on a parent company basis in 2012
This year, all the statistics and analyses presented in this section of the report are based entirely on a review of the
parent company accounts of resident credit institutions. An analysis to end-2012 of the consolidated accounts of
France’s leading banking groups, which was the subject of a separate report, 2 showed that, based on consolidated
data, the six leading French banking groups demonstrated their resilience in 2012 and continued to finance the
economy, although slack economic conditions were a drag on their earnings.
The analyses presented in the remainder of this report are based on an aggregation of the individual data reported
by all institutions on a parent company basis. This approach is used to provide a detailed description of the French
banking system based on two measures: 3
-
“domestic business”: describes the business and situation of French and foreign banks in France
(metropolitan and overseas territories);
-
“all business”: domestic business plus the accounts of foreign branches of French credit institutions. This
measure is preferred, data permitting.
The analyses on a parent company basis provided in this report may differ from those conducted on a consolidated
basis and previously published by the ACPR concerning France’s leading banking groups (see Box 1). For
example, whereas the large groups’ consolidated net banking income (NBI) fell (even after several restatements for
a more refined analysis), the NBI of the overall population making up the French banking system, measured on a
parent company basis, rose to EUR 115.9 billion in 2012, after EUR 105.8 billion in 2011, an increase of 7.9%
(table 9). The NBI of foreign branches totalled EUR 12.8 billion, accounting for a significant share of the overall
NBI (11.0%).
Box 1: Main methodological differences between the analyses based on consolidated and
aggregate parent company data published by the ACPR
The differences between these two types of analysis stem partly from the use of different accounting
frameworks and from the fact that they differ in terms of their coverage of entities and geographical areas.
The analysis of large French banking groups is based on an examination of their consolidated accounts, which
are prepared under International Financial Reporting Standards (IFRS). Among other things, IFRS require many
balance sheet and income statement items to be measured at fair value. Conversely, analyses on a parent
company basis draw on accounts prepared according to French accounting standards, which stress measurement
at historical cost and make less use of fair-value measurement. 4
As regards differences in scope and geographical coverage, the consolidated accounts encompass all financial
and non-financial entities held in the shape of subsidiaries or branches by French banking groups, whether or
not these entities are resident. This kind of analysis makes it possible to describe the entire business – including
international activities – of French banking groups. In contrast, analyses on an aggregate parent company basis
encompass the accounts of all credit institutions resident in France, including French credit institutions that are
subsidiaries of foreign groups.
Another difference involves intra-group transactions. By their construction, consolidated accounts eliminate
these transactions in the balance sheet and income statement. In the case of aggregate parent company data, the
presence of intra-group transactions does not in principle cause intermediate operating totals in the aggregate
2
“La situation des grands groupes bancaires français à fin 2012”, Autorité de contrôle prudentiel et de résolution, Analyses et Synthèses, No. 13, June 2013.
3
“Domestic business” and “All business” are marked at the bottom of the tables and figures to indicate which measure is used.
4
This box is not intended to enumerate all the differences between the accounting frameworks, but rather to highlight some of the main differences.
12
Sector data
income statement of resident credit institutions to be overestimated, insofar as these transactions offset each
other (income for member A of a group is matched by an expense in the income statement of member B).
On the balance sheet, the risk of double counting mainly involves interbank transactions and securities
transactions, on both sides of the balance sheet. In the case of transactions with customers, and particularly with
non-financial customers, the share of intra-group transactions is much smaller and only involves certain
customer categories.
Table 9 Simplified income statement of credit institutions
Domestic business
(EUR billion)
Net bank operating income (a)
2010
2011
All business
% change
2012/2011
2012
2010
2011
% change
2012/2011
2012
87.9
90.7
98.8
9.0
101.9
102.5
111.0
8.3
3.6
4.8
4.4
-8.1
3.7
4.8
4.7
-2.5
Net banking income (a)
91.6
95.5
103.2
8.1
105.7
107.3
115.7
7.8
Overheads
57.8
59.4
60.7
2.2
65.0
67.0
68.0
1.5
Gross operating income
31.1
33.1
39.6
19.6
37.7
37.1
44.5
19.9
Operating income
22.3
20.2
28.8
42.3
27.8
22.8
34.6
52.1
Net capital gains on fixed assets
-2.3
-10.3
-13.6
-32.8
-2.5
-10.4
-13.7
-31.5
Pretax operating income
20.0
10.0
15.2
52.0
25.3
12.3
20.9
69.6
Net income
(a) Provisional data
21.1
9.6
11.0
14.6
25.1
10.9
15.1
38.3
Net ancillary and miscellaneous income
Scope: all credit institutions
N.B. Intermediate operating totals may not be equal to the sum of intermediate items because of rounding. This is true for all the tables in this
section.
Source: ACPR
Overheads in domestic business rose by 2.2% in 2012, mainly owing to increased personnel costs, which account
for 56% of this item (appendix 2). Gross operating income and operating income 5 were both up strongly, increasing
by 19.6% and 42.3% respectively. By contrast, heavy net losses on fixed assets (EUR 13.7 billion, appendix 2.),
stemming chiefly from equity interests in related companies, had a major impact on pretax operating income, which
came to EUR 15.2 billion in 2012, after EUR 10.0 billion in 2011.
Net income amounted to EUR 11.0 billion in 2012 for domestic business, or 14.6% higher than in 2011. Including
the income of foreign branches (EUR 4.1 billion) gives net income for all business of EUR 15.1 billion, or 38.3%
higher than in 2011. Net income levels for 2012 are however below those recorded in 2010 and before the crisis, as
illustrated by figure 1.
5
Operating income is obtained by deducting the following from gross operating income: a) net allocations to provisions and loan losses and
b) net allocations to provisions for risks and liabilities.
13
Sector data
Figure 1 Main intermediate operating totals
(EUR billion)
140
+7.8%
120
100
80
60
+19.9%
+52.1%
40
+69.6%
+38.3%
20
0
-20
Net banking income
2006
Gross operating
income
2007
Operating income
2008
Pretax operating
income
2010
2009
2011
Net income
2012
Scope: all credit institutions, all business.
Source: ACPR.
As a ratio of average total assets for the year, NBI also improved in 2012, climbing by one-tenth of a percentage
point compared with 2011 (figure 2) to 1.4% of total assets. This ratio fell to as low as 1.1% at the peak of the crisis
in 2008, when the NBI of the French banking system was at its lowest level since 2002. The high of 2009 (1.5%)
was due to a rebound in NBI and a slight contraction in total assets. In the last three years, the ratio of NBI to total
assets has been between 1.3% and 1.4%, or lower than pre-crisis levels.
Figure 2 NBI/total assets ratio
(EUR billion)
(EUR billion)
9 000
180
8 000
160
7 000
140
6 000
120
5 000
100
2.03%
2.08%
2.00%
4 000
1.85%
1.84%
80
1.50%
1.49%
3 000
1.39%
1.33%
1.38%
60
1.08%
2 000
40
1 000
20
0
0
2002
2003
2004
2005
NBI/total assets ratio
2006
2007
2008
Total assets (LHS)
2009
2010
2011
2012
Net banking income (RHS)
Scope: all credit institutions, all business.
Source: ACPR.
14
Sector data
The operating income/total assets ratio (figure 3) was 0.4% in 2012, up one-tenth of a percentage point compared
with 2011. While this ratio remains below pre-crisis levels (2002-2006 average), it has nevertheless returned to its
level of 2007. Operating income stood at EUR 34.6 billion in 2012 as measured by all business, or close to levels
seen in 2006.
Figure 3 Operating income/total assets ratio
(EUR billion)
EUR billion
9,000
90
8,000
80
7,000
70
6,000
60
5,000
50
4,000
3,000
2,000
0.60%
40
0.69%
0.69%
30
0.61%
0.58%
0.41%
0.37%
1,000
0.37%
-0.03%
0.41%
0.28%
20
10
0
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
-10
-1,000
Operating income/total assets ratio
Total assets (LHS)
Operating income (RHS)
Scope: all credit institutions, all business.
Source: ACPR.
Calculated on a parent company basis, the cost-to-income ratio at credit institutions fell by 3.9 percentage points
between 2011 and 2012 to reach 61.5% at end-2012 (figure 4). This ratio summarises the relationship between all
operating and structural costs and NBI (appendix 2).
Figure 4 Cost-to-income ratio
90%
84.4%
80%
68.4%
70%
62.4%
64.4%
65.4%
2010
2011
61.5%
60.2%
60%
50%
40%
30%
20%
10%
0%
2006
2007
2008
2009
2012
Scope: all credit institutions, all business.
Source: ACPR.
15
Sector data
However, an analysis of how cost-to-income levels are dispersed reveals that the median ratio remained stable at
65%, indicating that control of operating costs improved among only some credit institutions (figure 5). Improving
profitability is a key challenge for French banks, which have undertaken and must pursue efforts in this area.
Figure 5 Spread of the cost-to-income ratio
100%
90%
80%
70%
Quartile 3
60%
50%
30%
Median
Aggregate
ratio
20%
Quartile 1
40%
10%
0%
2010
2011
2012
Scope: all credit institutions, all business.
Source: ACPR.
16
Sector data
3 Structure of parent company balance sheets
3.1
A change in the composition of liabilities, with the focus on deposit-taking
The aggregate total assets of the French banking system grew by just 0.5% between end-2011 and end-2012, rising
from EUR 8,349 billion to EUR 8,390 billion on all business. This represented a break from the trend of the last
two years, which featured far higher growth rates (6.6% between 2010 and 2011, 4% between 2009 and 2010).
3.1.1
Main liability components
In terms of liabilities (figure 6), interbank transactions and securities transactions contracted significantly, by
EUR 145 billion and EUR 66 billion respectively between end-2011 and end-2012. This was partly offset by an
increase in customer deposits, 6 which rose by EUR 123 billion (5.7%) over 2012.
Figure 6 Liability components
(EUR billion)
9 000
8 000
7,061
7 000
6,041
6 000
5 000
516
513
435
456
7,508
587
613
1 000
595
8,349
8,390
1,091
1,249
629
600
2,665
2,599
2,140
2,263
885
621
2,507
2,653
1,785
1,893
2,133
2,311
3 000
2 000
777
2,778
2,798
4 000
7,830
7,662
1,484
1,657
1,355
1,578
1,899
1,736
1,538
1,824
1,679
déc. 06
déc. 07
déc. 08
déc. 09
déc. 10
déc. 11
déc. 12
0
Money market and interbank transactions
Securities transactions
Miscellaneous
Customer deposits
Provisions, equity and retained earnings
Scope: all credit institutions, all business.
Source: ACPR.
6
Customer deposits include transactions with financial customers (EUR 370 billion) and transactions with non-financial customers (EUR 1,892 billion).
In this report, when unspecified the term “customer” refers to this combined group.
17
Sector data
Box 2: Share of currency transactions on the balance sheet
The proportion of currency transactions is tending to decline on both sides of the balance sheet (figure 7). Further,
the respective shares of assets and liabilities in foreign currencies have changed places since mid-2011. Until mid2011, liabilities in foreign currencies exceeded assets in foreign currencies, but since the crisis of summer 2011,
when access to dollar refinancing came under strain, liabilities in foreign currencies have fallen sharply.
Meanwhile, despite increasing temporarily (2009-2011), assets in foreign currencies have shrunk steadily to a
level much like that of liabilities, at around 14% of the balance sheet.
Figure 7 Share of currency transactions on the balance sheet
2006
2007
2008
2009
2010
2011
Share of liabilities in foreign currencies, total balance sheet
Share of assets in foreign currencies, total balance sheet
Scope: all credit institutions, domestic business.
Source: ACPR.
Dec.
Sept.
June
March
Dec.
Sept.
June
March
Dec.
Sept.
13%
June
13%
March
14%
Dec.
14%
Sept.
15%
June
15%
March
16%
Dec.
16%
June
17%
Sept.
17%
March
18%
Dec.
18%
Sept.
19%
June
19%
March
20%
Dec.
20%
2012
18
Sector data
Box 3: Interbank transactions
Following an increase in the absolute value of interbank transactions in 2011 on the liabilities and assets sides
alike, only interbank transactions on the liabilities side showed a decline in 2012 (EUR 2,317 billion after
EUR 2,488 billion in 2011) whereas those on the assets side rose by EUR 30 billion to 2,580 billion (figure 8).
On the liabilities side, the “due to banks” item, which records central bank and commercial bank refinancing,
showed large movements (appendix 5.). After increasing by EUR 263 billion between 2010 and 2011, partly linked
to the first VLTRO, 7 this item contracted by EUR 175 billion between 2011 and 2012, reflecting in particular
partial VLTRO repayments by French banks in 2012.
On the assets side, the overall increase of EUR 30 billion from 2011 to 2012 reflected several countervailing
factors, including a EUR 127 billion increase in assets held with central banks (with substantial use of the deposit
facility of the European Central Bank – ECB) and a EUR 93 billion contraction in other interbank loans (appendix
5.). The change in interbank assets also reflects transactions by French banks with Caisse des Dépôts et
Consignations under the mechanism for centralising regulated savings. 8
Figure 8 Interbank transactions
(EUR billion)
(EUR billion)
3,000
2,108
2,000
2,207
2,240
2,292
2,550
2,580
1,810
1,606
3,000
2,000
1,434
1,000
1,000
0
0
-1,000
-2,000
-1,000
-1,554
-1,744
-2,000
-1,989
-2,369
-3,000
dec. 04
dec. 05
dec. 06
Interbank loans
Interbank borrowing
dec. 07
-2,579
dec. 08
-2,316
-2,169
dec. 09
dec. 10
-2,488
dec. 11
-2,317
-3,000
dec. 12
Loans under repurchase agreements
Borrowing under repurchase agreements
Scope: all credit institutions, all business.
Source: ACPR.
Off the balance sheet, financing commitments received from credit institutions (EUR 421 billion) were almost three
times greater than commitments given (EUR 153 billion; appendix 9). This is due to recognition off the balance
sheet of lines available from the central bank in a situation where not all posted collateral is used.
7
Very Long-Term Refinancing Operation. The first VLTRO was carried out by the ECB on 23 December 2011.
8
Total outstanding funds centralised with Caisse des Dépôts, including reinvestment, increased by EUR 33 billion to EUR 255.5 billion at end-2012, up 14.8%
compared with end-2011 (EUR 222.5 billion). Source: Annual Savings Fund Report (CDC).
19
Sector data
3.1.2
Customer deposits
In 2012, the contraction in interbank transactions and securities transactions on the liabilities side (7.9% and 2.5%
respectively) was largely offset by an increase in deposits collected from customers, which increased overall by
EUR 123 billion, or 5.8% between end-2011 and end-2012. The distribution of deposit-taking is described in
figure 9. The increase in deposits, which supports all types of short-term investments, reflects households’
increased preference for liquidity during uncertain times. The three main savings segments benefited: savings
accounts subject to special rules, 9 which saw an increase of EUR 57 billion (up 7.2% compared with end-2011),
followed by term accounts, with a EUR 42 billion increase (12.8% over one year) and finally credit balances on
current accounts, which were up EUR 30 billion (4.9%).
Figure 9 Customer deposits
(EUR billion)
2,500
2,263
2,000
1,500
1,000
857
634
500
371
370
31
0
Total customer
deposits
dec. 06
Savings accounts Credit balances on Term accounts
subject to special current accounts
rules
dec. 08
dec. 10
dec. 07
dec. 09
Financial
customers
dec. 11
Other
dec. 12
Scope: all credit institutions, all business.
Source: ACPR.
Looking closer, the EUR 57 billion growth for savings accounts subject to special rules stemmed chiefly from the
increase in outstandings in Livret A and Livret Bleu passbooks, which rose by EUR 34 billion (15.3%) to almost
EUR 250 billion at end-2012 (domestic business, resident and non-resident customers, figure 10).
The 25% increase in the ceiling for Livret A passbooks on 1 October 2012 explains much of this surge, as
substantial additional inflows were noted in Q4 (figure 11). Sustainable Development (LDD) passbooks also saw a
EUR 22 billion increase to EUR 92.2 billion at end-2012. This increase of almost one-third compared with the level
at end-2011 was similarly attributable to the fact that the ceiling on LDD passbooks was doubled.
Even so, the sharp increase in investments in these passbooks did not materially impact outstanding amounts held
in other savings products subject to special rule inasmuch as the largest annual declines remained measured, at
1.5% for Popular Savings passbooks and 1.4% for Popular Savings schemes.
9
Ordinary passbooks belong to this category.
20
Sector data
Figure 10 Savings accounts subject to special rules
(EUR billion)
300
250
200
150
100
50
0
dec. 06
dec. 07
dec. 08
dec. 09
dec. 10
dec. 11
dec. 12
N.B.: "Other" refers to other savings accounts subject to special rules.
Scope: all credit institutions, domestic business.
Source: ACPR.
In terms of quarterly change (figure 11), in the first quarter of 2012, deposit-taking initially heavily benefited
ordinary passbook accounts (5% growth between December 2011 and March 2012). These passbooks continued to
see growth until September 2012. Then, in the fourth quarter, there was a major transfer of savings from ordinary
passbooks to Livret A and LDD accounts after their ceilings were increased. Households thus put funds temporarily
into ordinary passbook accounts in 2012 before using the excess deposits to put money into Livret A and LDD
passbooks when the ceilings were raised in the fourth quarter. By the end of the year, ordinary passbooks were
back at the level where they began the period.
21
Sector data
Figure 11 Savings accounts subject to special rules: quarterly change
(EUR billion)
300
250
200
150
100
50
0
dec. 11
march 12
june 12
sept. 12
dec. 12
N.B.: "Other" refers to other savings accounts subject to special rules.
Scope: all credit institutions, domestic business.
Source: ACPR.
However, the impact of this increase in deposits on bank refinancing needs to be put into perspective, given that a
sizeable proportion of the funds collected on Livret A and LDD passbooks are centralised with the Caisse des
Dépôts et Consignations. 10
3.1.3
Financing in the form of securities
Securities transactions, which totalled EUR 2,600 billion on the liabilities side at end-2012, are divided into three
main categories:
– debt securities issued by banks (EUR 1,268 billion);
– securities sold under repurchase agreements (EUR 638 billion);
– other transactions in debt securities (EUR 693 billion), which include transactions in trading securities and
derivative instruments.
Total outstanding debt securities in issuance increased slightly (2.9%) to reach EUR 1,267.9 billion at end-2012
(figure 12.). After declining by 19.1% in 2011, banks’ issues of negotiable debt securities recovered in 2012, rising
by 2.2%. Outstanding bonds in issuance continued to increase (1.4%) between 2011 and 2012. Interbank market
securities also increased although volumes remain small.
10
The effects of this are described in the discussion on the credit-to-deposit ratio in section 4.
22
Sector data
Figure 12 Debt evidenced by a certificate
(EUR billion)
1 400
1, 267.9
1 200
1 000
800
650.7
600
529.7
400
200
65.5
22.0
0
Total
Negotiable debt
securities
dec. 09
Bonds
dec. 10
Interbank market
securities
dec. 11
Other debt
dec. 12
Scope: all credit institutions, domestic business.
Source: ACPR.
3.2
3.2.1
Banks continued to finance the economy
Main asset components
The composition of the aggregate assets of the French banking system also changed. As measured by all business,
including branches, loans to customers 11 fell slightly (1%) to EUR 2,409 billion but rose by 0.7% as measured by
domestic business (below, particularly 3.2.2). In addition, although they fell, investments in the form of securities
(EUR 2,177 billion at end-2012) remained banks’ second-largest asset item, followed by money market and
interbank transactions, which, after growing strongly in 2011, showed a more moderate increase in 2012 (1.9%,
figure 13. and Box 3 on interbank transactions).
French credit institutions did sizeable amounts of business on markets in forward financial instruments. Notional
outstandings, which do not reflect actual risks, 12 totalled EUR 91,376 billion (appendices 1 and 9). Moreover, a
portion of these outstandings corresponds to hedges and trades carried out for customers.
11
As with deposits, “customer loans” include loans to financial customers (EUR 163.2 billion) and loans to non-financial customers (EUR 2,118.4 billion,
appendix 5). Securitised loans are not reintegrated.
12 Notional outstandings record the notional value of the underlyings of derivative product contracts, not the risks generated.
23
Sector data
Figure 13 Asset components
(EUR billion)
9,000
7, 662
8,000
7, 061
7,000
6, 041
6,000
412
411
5,000
4,000
522
430
2, 540
458
858
481
8, 390
1, 216
1, 324
491
485
2, 252
2, 177
2, 434
2, 409
954
496
2, 510
2, 224
2, 303
2, 288
2, 218
2, 393
1, 684
1, 958
1, 995
dec-10
dec-11
dec-12
2, 203
3,000
2, 142
2,000
752
7, 508
8, 349
7, 830
1, 844
1,000
1, 170
1, 428
1, 655
1, 727
dec-06
dec-07
dec-08
dec-09
0
Money market and interbank transactions
Securities transactions
Miscellaneous
Loans to customers
Fixed assets
Scope: all credit institutions, all business.
Source: ACPR.
3.2.2
Loans to customers continued to increase in France in 2012
The slight decline in customer loans within banks’ assets 13 across all business between end-2011 and end-2012
(EUR 24.8 billion, or 1%) did not result from domestic business but reflected loans by foreign branches of credit
institutions, whose outstanding loans shrank by EUR 41.1 billion over one year (17.0%) to just above
EUR 200 billion (table 10).
In domestic business, loans to customers increased by EUR 16 billion (0.7%) to EUR 2,208.3 billion. Loans to
resident non-financial customers, which make up the lion’s share of total outstandings (87%, or
EUR 1,911.7 billion at end-2012), were responsible for virtually all of the increase (EUR 16 billion).
13
In contrast with the Banque de France’s published monetary statistics, securitised loans, which are no longer included in banks’ assets owing to their
transfer, are not reintegrated in the loan statistics provided in this report.
24
Sector data
Table 10
Loans to customers
(EUR billion)
Dec. 10
Dec. 11
Dec. 12
Change 2012/2011
Amount
Loans to customers (all business)
Loans to customers (domestic business)
o/w Loans to non-financial customers
(domestic business)
. Loans to resident non-financial customers
(in France)
. Loans to non-resident non-financial
customers (in France)
Loans to customers (foreign business via
branches)
Scope: all credit institutions.
%
2,394.0
2,433.8
2,409.0
-24.8
-1.0%
2,124.3
2,192.0
2,208.3
16.3
0.7%
2,011.0
2,105.0
2,113.8
8.8
0.4%
1,815.8
1,895.7
1,911.7
16.0
0.8%
195.2
209.3
202.1
-7.2
-3.4%
269.7
241.8
200.7
-41.1
-17.0%
Source: ACPR.
The main sectors to benefit from the increase in bank loans to resident non-financial customers (as measured by
domestic business) were households (2.0%, after 4.9% between 2010 and 2011) and general government (3.0%).
Outstanding loans from banks to non-financial corporations contracted slightly (1.2%). Lending to insurance
entities, 14 which was already at modest levels (EUR 9.2 billion at end-2012), declined even further (16.4%). Loans
granted in France to non-resident non-financial customers also shrank, by 3.4%, see figure 14 and appendix 8.
Figure 14 Loans to non-financial customers, by category of agent
(EUR billion)
1,200
1, 044,4
1,000
800
669.4
600
400
202.1
188.7
200
9.2
0
Households
dec.06
Non-financial
corporations
dec.07
dec.08
General government Insurance companies
dec.09
dec.10
dec.11
Non-residents
dec.12
Scope: all credit institutions, domestic business.
Source: ACPR.
14
This category of agents is grouped with non-financial customers in the SURFI documents filed by banks.
25
Sector data
In terms of loans in foreign currencies granted to resident non-financial customers (figure 15), the following trends
were in evidence:
-
loans in foreign currencies to households were relatively steady at low levels (1.7% to 1.8% of total
lending to households on average over the 2010-2012 period);
-
there was a net decline in the share of loans in foreign currencies granted to non-financial corporations
(2.0% of total loans granted to companies at end-2012, after 2.8% at end-2011 and 3.2% at end-2010);
-
the volume of total outstanding loans in foreign currencies made to insurance entities was small but still
accounted for a larger share of total outstanding loans extended than in other sectors (15-17% of total loans
extended to insurance entities);
-
total outstanding loans in foreign currencies to general government were at a low level and accounted for a
small share of total lending to the sector (0.3% at end-2012).
Figure 15 Loans in foreign currencies granted to resident non-financial customers
(EUR billion)
22
20
18
16
14
12
10
8
6
4
2
0
2010
Non-financial corporations
2011
Households
Insurers and pension funds
2012
General government
Scope: all credit institutions, domestic business.
Source: ACPR.
A closer observation of the types of loans granted to non-financial customers in France (figure 16) shows an
increase in home loans (2.7%) and equipment loans (1.6%) between end-2011 and end-2012. Over the same period,
cash loans fell by 6.3%, continuing the decline that began in 2011, with the trend becoming more pronounced over
the second part of the year 2012 (figure 17).
26
Sector data
Figure 16 Lending to non-financial customers, by loan type
Figure 17 Lending to non-financial customers, by loan type: quarterly change
(EUR billion)
1,200
1,000
800
600
400
200
0
Home loans
Equipment
loans
dec. 11
Cash loans
march 12
Leasing
Overdrafts Export credits
june 12
sept. 12
Trade
receivables
Other loans
dec. 12
Scope: all credit institutions, domestic business.
Source: ACPR.
27
Sector data
3.2.3
Investments in the form of securities
The securities portfolios of credit institutions represent 15% of their aggregate total assets. 15 The total amount of
securities held by credit institutions in their portfolios came to EUR 1,235 billion, down slightly (0.8%) compared
with 2011. The decline was mainly due to the contraction in the held-for-sale portfolio (6.2%), which was not
offset by the increase in the investment portfolio (4.5%, figure 18). Meanwhile, after falling abruptly in the
previous year (21.8%), the trading portfolio, which is measured at market value, increased slightly compared with
end-2011 but still remained far off its peak of December 2007.
BRIEFING
Securities portfolios in the assets of credit institutions are defined by CRB Regulation 90-01 of 23 February 1990
on the recognition of securities transactions. 16
Trading securities are fixed- or variable-income securities acquired with a view to resale after a short period and
which are deemed to have an active trading market (Article 2 of CRB Regulation 90-01).
Investment securities are fixed-income securities that the institution intends and is able to hold to maturity
(Article 7 of CRB Regulation 90-01).
Held-for-sale securities are securities that do not meet the criteria required to be classified in the other portfolios
(Article 5 of CRB Regulation 90-01).
Portfolio securities are investments that are carried out on a regular basis with the sole objective of generating a
capital gain in the medium term, without any intention to make a long-term investment in the development of the
issuing company’s business assets or to participate actively in the company’s operational management (Article 9
bis of CRB Regulation 90-01).
Figure 18 Securities portfolio of credit institutions
(EUR billion)
1,000
900
800
700
600
502.4
500
428.6
400
302.8
300
200
100
1.5
0
Held-for-sale
Trading
dec. 06
dec. 07
dec. 08
Investment
dec. 09
dec. 10
Portfolio
dec. 11
dec. 12
Scope: all credit institutions, domestic business.
Source: ACPR.
These changes reflect reallocations between portfolios resulting from the financial crisis. In 2008, owing to the
downturn in market conditions and the inability to price certain securities, the accounting authorities authorised
transfers 17 of financial assets (notably from the trading portfolio to the held-for-sale and investment portfolios),
both for parent company and consolidated accounts.
15
Other securities transactions (securities received under repurchase agreements and other transactions) are detailed in appendix 5.
16
17
According to Article 19 of CRB Regulation 90-01 (amended), fixed-income securities that, following acquisition, are no longer negotiable
on an active market or regarding which a change in strategy is made necessary by exceptional market conditions, may be transferred to the
investment securities category.
28
Sector data
4 Vigilance still necessary for certain risks 18
4.1
Rebalancing of bank balance sheets constrained
In France, the volume of bank lending to financial and non-financial customers is structurally higher than the
volume of deposits taken from those same customers. However, the gap has been closing for several years
(figure 19). This funding gap reduced from around EUR 500 billion in 2008 to less than EUR 150 billion at
end 2012.
Figure 19 Customer loans and deposits over time
(EUR billion)
(EUR billion)
2,500
2,500
2007
2008
2009
Loans to customers
2010
2011
Customer deposits
dec.
sept.
1,500
june
1,500
march
1,600
dec.
1,600
sept.
1,700
june
1,700
march
1,800
dec.
1,800
sept.
1,900
june
1,900
march
2,000
dec.
2,000
sept.
2,100
june
2,100
march
2,200
dec.
2,200
sept.
2,300
june
2,300
march
2,400
dec.
2,400
2012
Scope: all credit institutions, all business.
Source: ACPR.
The loan-to-deposit ratio 19 on a parent company basis expresses loans to financial and non-financial customers as a
proportion of deposits made by those customers. At end 2012, it stood at a 12-year low of 106% (figure 20).
The sharp fall in the ratio, which dropped four percentage points in one year, is the result of a slight 1% decline in
loan exposure across all activities combined with continued growth in deposits, up 4%.
18
For detailed developments on the analysis of risks on a consolidated basis see Analyses et Synthèses, No. 13, June 2013.
19
Conversely, the ratio set out in Analyses et Synthèses, No. 13, June 2013 is calculated on a consolidated basis for France’s six major banking groups, using
data from FINREP reports.
29
Sector data
Figure 20 Loan-to-deposit ratio
135%
130%
125%
120%
115%
110%
105%
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
march
june
sept.
dec.
100%
106%
2001
2002
2000
2003
2004
2005
2006
2007
Scope: all credit institutions, all business.
Source: ACPR - not restated for centralisation with CDC savings fund.
2008
2009
2010
2011
2012
However, this ratio should be adjusted to reflect the fact that a proportion of deposits in regulated passbook savings
accounts (Livret A and equivalent accounts, Sustainable Development passbook accounts and People’s Passbook
savings accounts) are transferred to Caisse des Dépôts et Consignations (CDC) savings fund. Credit institutions are
required to transfer the bulk of the deposits they collect in these accounts to the savings fund, which uses these
resources notably to finance social housing. 20 While deposits in passbook savings accounts are recognised on
banks’ balance sheets, not all the corresponding funds are available for banks to use for lending. This means that
the ratio is automatically less favourable than the one obtained simply by using accounting data.
After adjusting to take into account only those deposits that are actually available (by deducting deposits
transferred to the CDC savings fund, including compound interest, estimated on the basis of CDC data), 21 the ratio
comes out significantly higher (figure 21). However, the fact remains that the ratio has improved, falling to a tenyear low in 2012.
20
21
For a detailed analysis of regulated savings, see reports produced by the Observatoire de l’épargne réglementée (regulated savings monitoring unit/OER).
Prior to 2005, these estimates include passbook and home savings accounts transferred to the CDC savings fund; after 2005, they include Livret A,
Livret Bleu, People’s Passbook and Sustainable Development passbook accounts, with the exception of 2012, for which the data cover only Livret A and
Sustainable Development passbook accounts.
30
Sector data
Figure 21 Loans and deposits over time
Comparison of loan-to-deposit ratios including and excluding deposits transferred to the CDC
savings fund
170%
160%
150%
140%
130%
120%
120%
110%
106%
100%
Loan-to-deposit ratio exc. funds centralised at CDC
Loan-to-deposit ratio
Scope: all credit institutions, all business.
Sources: ACPR and annual report of the CDC savings fund.
Briefing
Regulated savings collected in the form of Livret A and equivalent accounts, Sustainable Development accounts
and People’s Passbook savings accounts are used by the Caisse des Dépôts et Consignations (CDC) savings fund
and banks primarily to finance social housing and urban policy, SMEs and sustainable infrastructure. On average,
65% of total deposits in Livret A and Sustainable Development accounts and 70% of total deposits in Popular
Savings passbooks are transferred to the savings fund.
In accordance with legislation, the use of funds held by the savings fund is determined by the minister responsible
for the economy, and funds transferred to the savings fund are primarily used to finance social housing. To ensure
that the savings fund always has sufficient resources, the value of deposits transferred to the fund from Livret A
and Sustainable Development passbooks must be greater than or equal to 125% of total lending by the fund for
social housing and urban policy. As a preventive measure, CDC notifies the government and banks offering these
accounts whenever this ratio falls below 135%.
31
Sector data
Box 4: Bank liquidity ratios improve as new regulatory ratios are introduced
Refinancing conditions for French banks improved markedly in 2012 (Box 3). Like all euro area banks, France’s
have benefited from the positive impact of the various measures adopted by the ECB starting at the end of 2011
and continuing throughout 2012: Very Long Term Refinancing Operations (VLTRO), the widening of the range of
collateral eligible for ECB funding, a 25 basis point cut in policy rates, the extension of euro/dollar swap
agreements with the US Federal Reserve and the announcement of Outright Monetary Transactions (OMT).
French credit institutions’ regulatory liquidity ratios have thus improved substantially since end 2011 (figure 22),
while regulations began to be tightened in 2010. Institutions have begun the process of adjusting their balance
sheets to reflect the new Basel III liquidity standards (the Liquidity Coverage ratio, or LCR, and the Net Stable
Funding Ratio, or NSFR).
Figure 22 Aggregate regulatory liquidity ratio
160%
160%
150%
150%
140%
140%
130%
130%
120%
120%
110%
110%
Regulatory regime change
2007
2008
2009
2010
2011
dec.
sept.
june
march
dec.
sept.
june
march
dec.
sept.
june
march
dec.
sept.
june
march
dec.
sept.
june
march
100%
dec.
100%
2012
Scope: all credit institutions, all business.
Source : ACPR.
Briefing
French banks are required at all times to maintain a liquidity ratio of at least 100% (see the Ministerial Order of 5
May 2009, which replaced Regulation 88-01 of 22 February 1988 on liquidity with effect from 30 June 2010). This
one-month liquidity ratio takes into account liquidity available at more than one month and certain run-off
assumptions for all sources of funds, as well as the existence of long-term refinancing agreements.
CRD 4 provides for the introduction of two new liquidity ratios: the LCR measures the coverage of liquidity
requirements over 30 days, while the NSFR is a structural measure of maturity transformation over a one-year
period.
In 2014, only a reporting requirement will be introduced. The LCR itself will become binding in 2015, with full
effect in 2018; the NSFR will enter into force in 2018. French banks will continue to be required to meet the
current one-month regulatory liquidity ratio until the LCR takes effect.
32
Sector data
4.2
Credit risk
4.2.1
Quality of loan assets
Non-performing customer loans across all activities were up 7.2% at end 2012, standing at EUR 88.1 billion,
compared with EUR 82.2 billion a year earlier (figure 24).
The gross non-performing loan ratio also increased year on year from 3.5% to 3.8%, up 0.3 percentage points
(figure 23). This change reflects an increase in non-performing loan exposure, while aggregate lending exposure
remained more or less steady. Conversely, the ratio for non-performing loans granted by branches outside France
rose sharply to 6.5%, up from 5.2% in 2011. This change was driven by a decline in lending by branches outside
France while the total level of non-performing loans was similar to that in 2011.
Figure 23 Gross non-performing loan ratio
7%
7%
6.5%
6%
6%
5%
5%
3.8%
4%
3.6%
3%
4%
3%
2%
2%
1%
1%
0%
0%
dec. 06
dec. 07
All business
dec. 08
dec. 09
Domestic business
dec. 10
dec. 11
dec. 12
Business via foreign branches
Scope: all credit institutions, aggregate business, all customer loans.
Source: ACPR.
Provisions for non-performing loans increased less quickly than the associated risks (with provisions up 3.6%,
compared with a 7.2% increase in non-performing loans; see above). The gross non-performing loan provision ratio
thus declined slightly over the period, standing at 51.8% at end 2012 – very close to the average over the past four
years but below pre-crisis levels.
33
Sector data
Figure 24 Gross non-performing loan provision ratio
4.2.2
Home loans
Home loans are mainly aimed at personal customers (figure 25) for the purchase of either owner-occupied or buyto-let property.
Figure 25 Home loans by type of borrower
(EUR billion)
(EUR billion)
1,000
1,000
900
900
800
800
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
Individuals
Sole traders
Other economic agents (a)
(a) Other economic agents include general government, non-financial companies, non-profit institutions serving
households, and insurance companies.
Scope: all credit institutions, domestic business.
Source: ACPR.
34
Sector data
Owing to persistently poor macroeconomic conditions and an incipient decline in property prices, there is a risk
that the quality of French banks’ residential mortgage portfolios will deteriorate. Indeed, within the sample used for
the ACPR’s annual survey in this area, the non-performing loan ratio on home loans rose to 1.5% in 2012, up from
1.4% in 2011 (figure 26.).
Figure 26 Non-performing loan ratio on home loans over time
2.0%
4.0%
3.52%
3.5%
1.47%
1.5%
3.0%
2.5%
1.14%
1.0%
2.0%
1.5%
1.0%
0.5%
0.5%
0.0%
0.0%
2007
2008
2009
Gross non-performing home loans
2010
o/w fixed rate
2011
2012
o/w variable rate
Source: annual SGACPR survey on home financing .
In these conditions, the ACPR continues to attentively monitor the risks associated with residential mortgage
lending by French banks. It also continues to add to its tools, as illustrated, for example, by the 2012 overhaul of
the ACPR annual home loans questionnaire, which resulted, in particular, in the publication of two documents: one
on home loans, the other on financing for property professionals. 22
22
“Le financement de l’habitat en 2012”, Autorité de contrôle prudentiel, Analyses et Synthèses, N° 18, July 2013, and “Le financement des professionnels de
l’immobilier par les banques françaises en 2012”, Autorité de contrôle prudentiel, Analyses et Synthèses, N° 17, July 2013.
35
Sector data
APPENDICES
APPENDIX 1 KEY DATA FOR CREDIT INSTITUTIONS ............................................................................ 37
APPENDIX 2 AGGREGATE INCOME STATEMENT OF CREDIT INSTITUTIONS ............................... 38
APPENDIX 3 PROVISIONS TO GROSS OPERATING INCOME RATIO .................................................. 39
APPENDIX 4 AVERAGE COSTS AND RETURNS ......................................................................................... 40
APPENDIX 5 AGGREGATE BALANCE SHEET OF CREDIT INSTITUTIONS......................................... 41
APPENDIX 6 CHANGE IN AGGREGATE POSITION OF CREDIT INSTITUTIONS ............................... 43
APPENDIX 7 FUNDS RECEIVED FROM CUSTOMERS ............................................................................... 44
APPENDIX 8 LOANS TO NON-FINANCIAL CUSTOMERS, BY SECTOR AND LOAN TYPE ............... 45
APPENDIX 9 OFF-BALANCE SHEET COMMITMENTS OF CREDIT INSTITUTIONS ......................... 46
APPENDIX 10 TOTAL PROVISIONING RATE ............................................................................................. 47
APPENDIX 11 AGGREGATE FINANCIAL SITUATION OF INVESTMENT FIRMS ............................... 48
APPENDIX 12 AGGREGATE INCOME STATEMENT OF INVESTMENT FIRMS .................................. 50
APPENDIX 1 DATA FOR CREDIT INSTITUTIONS ................................................................................... 41
APPENDIX 2 AGGREGATE INCOME STATEMENT OF CREDIT INSTITUTIONS .............................. 42
APPENDIX 3 PROVISIONS TO GROSS OPERATING INCOME RATIO ................................................. 43
APPENDIX 4 AVERAGE COSTS AND RETURNS ........................................................................................ 44
APPENDIX 5 AGGREGATE BALANCE SHEET OF CREDIT INSTITUTIONS ....................................... 45
APPENDIX 6 CHANGE IN AGGREGATE POSITION OF CREDIT INSTITUTIONS ............................. 47
APPENDIX 7 FUNDS RECEIVED FROM CUSTOMERS ............................................................................. 48
APPENDIX 8 LOANS TO NON-FINANCIAL CUSTOMERS, BY SECTOR AND LOAN TYPE.............. 49
APPENDIX 9 OFF-BALANCE SHEET COMMITMENTS OF CREDIT INSTITUTIONS ....................... 50
APPENDIX 10 TOTAL PROVISIONING RATE .............................................................................................. 51
APPENDIX 11 AGGREGATE FINANCIAL SITUATION OF INVESTMENT FIRMS ................................ 52
APPENDIX 12 AGGREGATE INCOME STATEMENT OF INVESTMENT FIRMS ................................... 54
36
Sector data
Appendix 1 Key data for credit institutions
Business data
(EUR billion)
2010
2011
Change
2012/2011
( %)
2012
Balance sheet total
7,832
8,349
8,390
0.5%
Customer loans
2,394
2,434
2,409
-1.0%
Securities portfolio
2,303
2,252
2,177
-3.3%
636
497
502
1.1%
o/w trading securities
Customer deposits
2,134
2,140
2,263
5.8%
o/w sight deposits
579
604
634
4.9%
o/w savings accounts subject to special rules
755
799
857
7.2%
Positions on financial futures (a)
91,293
95,922
91,376
-4.7%
(a) These notional outstandings recorded off-balance sheet are an indicator of the trading volumes on these markets, but do not reflect
the risks taken.
Scope: all credit institutions, all business.
Source: ACPR.
Earnings data
(EUR billion)
Net banking income
2010
2011
Change
2012/2011
(%)
2012
105.7
107.3
115.7
Overheads
68.0
70.2
71.2
1.4%
Gross operating income
37.7
37.1
44.5
19.9%
Net allocations to provisions and loan losses
7.8%
8.8
11.7
14.3
22.6%
Operating income
27.8
22.8
34.6
52.1%
Pretax operating income
25.3
12.3
20.9
69.6%
25.1
10.9
15.1
38.3%
Net incom e
Scope: all credit institutions, all business.
Source: ACPR.
Main ratios for business and earnings
(%)
2010
2011
2012
Average cost of customer deposits
1.68
2.02
1.91
Average return on customer loans
4.45
4.48
4.29
Overall banking margin
1.27
1.28
1.30
Cost-to-income ratio
64.4
65.4
61.5
6.7
2.9
4.2
Return on equity
Scope: all credit institutions, domestic business.
Source: ACPR.
37
Sector data
Appendix 2 Aggregate income statement of credit institutions
Metropolitan France
(EUR billion)
NET BANK OPERATING INCOME (a)
. money market and interbank transactions
All business
87,95
90,67
98,82
Change
2012/2011
( %)
9,0
3,17
5,83
5,32
-0,6(d)
(d)
2010
2011
2012
2010
2011
2012
101,93
102,48
111,03
3,89
6,44
4,84
Change
2012/2011
en %
8,4
-1,6(d)
60,41
59,40
55,71
-4,1
66,18
65,97
61,07
-4,8(d)
8,84
-22,18
9,24
34,7(d)
10,65
-24,84
11,53
35,8(d)
-1,45
-0,73
0,06
0,9(d)
-1,69
-1,01
-0,18
0,8(d)
3,64
3,93
4,20
0,3(d)
4,04
4,32
4,61
0,3(d)
-13,89
13,30
-5,52
-20,8(d)
-13,58
18,95
-2,15
-20,8(d)
. financial services
14,85
15,34
14,46
-1,0(d)
15,76
17,03
15,59
-1,4(d)
. other operating revenue
10,92
15,05
15,41
0,4(d)
15,00
14,62
15,53
0,9(d)
3,63
4,79
4,41
-8,2
3,74
4,82
4,70
-2,7
NET BANKING INCOME (a)
91,58
95,46
103,23
7,9
105,68
107,30
115,73
7,9
OVERHEADS
57,76
59,43
60,71
2,2
64,96
66,97
67,99
1,5
. personnel
32,58
32,93
34,25
2,2(d)
37,15
37,46
38,87
2,1(d)
. other overheads
25,18
26,50
26,46
-0,1(d)
27,81
29,51
29,12
-0,6(d)
2,77
2,93
2,93
0,1
3,05
3,19
3,21
0,6
31,05
33,11
39,59
18,9
37,66
37,14
44,52
20,1
Net allocations to provisions and loan losses (c)
7,53
10,56
12,55
18,7
8,81
11,65
14,28
22,4
Net allocations to provisions for risks and liabilities
1,21
2,31
-1,74
-
1,06
2,73
-4,39
-
22,32
20,23
28,78
41,2
27,80
22,76
34,63
52,5
Net capital gains on fixed assets
-2,27
-10,26
-13,63
-33,9
-2,53
-10,43
-13,72
-32,6
PRETAX OPERATING INCOME
20,05
9,97
15,16
48,7
25,27
12,33
20,91
69,2
NET INCOME
21,12
9,60
11,00
12,0
25,08
10,88
15,06
38,6
. customer transactions
. securities transactions (b)
o/w repurchase agreements
. leasing transactions
. off-balance sheet transactions
NET ANCILLARY AND MISCELLANEOUS INCOME
Depreciation and provisions for tangible and intangible fixed assets
GROSS OPERATING INCOME
OPERATING INCOME
(a) Excluding interest on non-performing loans
(b) Including allocations to provisions for impairment of securities held for sale and portfolio securities
(c) Including interest on non-performing loans.
(d) Proportional change, in percentage points.
Scope: all credit institutions, all business.
Source: ACPR.
38
Sector data
Appendix 3 Provisions to gross operating income ratio
(EUR billion)
150%
15
119.5%
14.5
14.3
100%
11.7
10
10.0
38.0%
5
12.4%
0.6%
0
38.7%
50%
22.2%
4.8
2.7
1.2
1.3
8.8 26.2%
2.6
1.1
2.7
0%
-1.1
-4.4
-5
-50%
2006
2007
2008
2009
2010
2011
2012
Net allocations to provisions and loan losses (LHS)
Net allocations to provisions for risks and liabilities (LHS)
Cost of risk / gross operating income (RHS)
Scope: all credit institutions, aggregate business.
Source: ACPR.
39
Sector data
Appendix 4 Average costs and returns
(%)
2010
2011
2012
Average cost of borrow ing (including money market securities)
1.68
2.02
1.91
Average return on loans
4.45
4.48
4.29
Debt securities (other than money market securities)
2.18
2.05
2.51
Subordinated debt
4.52
4.79
4.79
Return on securities portfolio
3.94
2.00
4.57
Average cost of borrow ing
1.95
2.23
2.21
Average return on loans
2.08
2.35
2.24
1.27
1.28
1.30
1. Customer transactions
2. Securities transactions
3. Money market transactions
4. Overall banking margin
NB: Data updated for 2010 and 2011 ow ing to a change in the scope of reference ("aggregate business").
Scope: all credit institutions, all business.
Source: ACPR.
40
Sector data
Appendix 5 Aggregate balance sheet of credit institutions
(EUR billion )
Dec. 10
Dec. 11
Dec. 12
Change 2012/2011
Amount
ASSETS
TREASURY AND INTERBANK TRANSACTIONS
. Cash in hand, balances w / central banks and post office
banks
. current accounts
. Deposits and loans
. securities bought under repurchase agreements
. Other loans
Loans to customers
. loans to non-financial customers
. loans to financial customers
. securities bought under repurchase agreements
. overdrafts
. non-performing loans
. other loans
SECURITIES TRANSACTIONS
. securities bought under repurchase agreements
. trading securities
. securities held for sale
. portfolio securities
. investment securities
. other transactions
FIXED ASSETS
. subordinated loans
. shares in affiliated entities
. fixed assets
. financial and operating leases
. other assets
MISCELLANEOUS
TOTAL ASSETS
Scope: all credit institutions, all business.
Source: ACPR.
%
1,684.66
1,957.71
1,995.24
37.53
1.9
99.23
144.97
272.48
127.51
88.0
213.39
1,088.83
14.62
268.59
2,394.04
2,076.53
183.00
0.20
81.26
38.64
14.42
2,303.14
607.79
635.53
439.58
2.02
261.62
356.60
496.36
44.74
331.96
29.00
87.99
2.68
953.32
7,831.53
211.96
1,281.98
16.38
302.42
2,433.79
2,142.70
155.93
1.14
80.22
38.14
15.67
2,251.47
592.27
496.82
457.12
1.66
289.59
414.02
490.48
43.50
326.43
29.16
88.77
2.62
1,215.50
8,348.95
118.82
1,240.76
17.90
345.28
2,408.97
2,118.38
163.15
0.45
68.98
42.44
15.57
2,176.54
585.20
502.38
428.59
1.54
302.77
356.05
485.37
39.35
324.25
28.87
89.44
3.45
1,324.32
8,390.44
-93.13
-41.22
1.52
42.86
-24.82
-24.32
7.23
-0.69
-11.24
4.31
-0.10
-74.93
-7.07
5.56
-28.52
-0.12
13.18
-57.97
-5.12
-4.15
-2.18
-0.28
0.67
0.83
108.82
41.49
-43.9
-3.2
9.3
14.2
-1.0
-1.1
4.6
-60.4
-14.0
11.3
-0.6
-3.3
-1.2
1.1
-6.2
-7.0
4.6
-14.0
-1.0
-9.5
-0.7
-1.0
0.8
31.7
9.0
0.5
41
Sector data
(EUR billion )
LIABILITIES
CASH AND INTERBANK TRANSACTIONS
. central banks and post office banks
. credit balances on current accounts
. due to banks
. securities sold under repurchase agreements
. other borrow ing
FUNDS OWED TO CUSTOMERS
. borrow ing from financial customers
. securities sold under repurchase agreements
. credit balances on current accounts
. savings accounts subject to special rules
. credit balances on term accounts
. certificates of deposit and savings certificates
. other liabilities
SECURITIES TRANSACTIONS
. securities sold under repurchase agreements
. debts evidenced by a certificate
o/w : . money market securities
. bonds
. other transactions
PROVISIONS, SHAREHOLDERS’ EQUITY
. grants and public funding
. sundry provisions and mutual guarantee deposits
. subordinated debt
. equity capital, reserves and fund for general banking risks
RETAINED EARNINGS/LOSSES
MISCELLANEOUS
TOTAL LIABILITIES
Scope: all credit institutions, all business.
Source: ACPR.
Dec. 10
1,538.66
5.92
103.11
1,127.66
29.63
272.34
2,133.85
433.54
2.89
578.64
755.34
332.32
2.21
28.92
2,652.57
630.34
1,320.05
787.17
478.56
702.17
583.64
6.35
83.78
172.13
321.38
37.36
885.46
7,831.53
Dec. 11
1,823.80
1.83
103.27
1,390.83
27.60
300.28
2,139.80
374.87
0.58
604.29
799.26
328.91
2.30
29.61
2,664.90
663.86
1,232.53
636.51
522.39
768.50
590.09
6.71
96.01
153.81
333.56
39.24
1,091.13
8,348.95
Dec. 12
1,679.24
3.83
92.81
1,214.98
20.24
347.39
2,262.92
370.09
0.12
633.95
856.73
370.93
2.02
29.09
2,598.52
638.01
1,267.90
650.65
529.75
692.62
562.31
6.53
80.29
133.50
341.99
38.12
1,249.33
8,390.44
Change 2012/2011
Amount
%
-144.55
2.00
-10.45
-175.85
-7.36
47.11
123.11
-4.78
-0.46
29.66
57.47
42.03
-0.28
-0.52
-66.38
-25.86
35.36
14.14
7.36
-75.89
-27.78
-0.18
-15.72
-20.31
8.43
-1.11
158.20
41.49
-7.9
109.3
-10.1
-12.6
-26.7
15.7
5.8
-1.3
-79.6
4.9
7.2
12.8
-12.3
-1.8
-2.5
-3.9
2.9
2.2
1.4
-9.9
-4.7
-2.7
-16.4
-13.2
2.5
-2.8
14.5
0.5
42
Sector data
Appendix 6 Change in aggregate position of credit institutions
(EUR billion)
(EUR billion)
9,000
8, 390
8,000
7, 540
9,000
8,000
7,000
7,000
6,000
6,000
5,000
5,000
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0
0
dec. 06
dec. 07
dec. 08
Domestic business
dec. 09
dec. 10
dec. 11
dec. 12
All business
Source: ACPR.
43
Sector data
Appendix 7 Funds received from customers
Dec. 11
(EUR billion)
NonResidents
residents
BORROWING FROM FINANCIAL
212.28
SECURITIES SOLD UNDER REPURCHASE
0.00
CREDIT BALANCES ON CURRENT
516.23
FACTORING ACCOUNTS
7.74
COLLATERAL DEPOSITS
5.59
SAVINGS ACCOUNTS SUBJECT TO SPECIAL
777.89
o/w: - ordinary passbooks
179.81
- Livret A and Livret Bleu passbooks
214.67
- Young persons’ passbooks
7.00
- People’s savings passbooks
52.44
- Sustainable development passbooks
69.37
- HOME SAVINGS SCHEMES/ACCOUNTS
222.71
- POPULAR SAVINGS SCHEMES
24.39
- Other savings accounts subject to special
7.36
CREDIT BALANCES ON TERM ACCOUNTS
198.35
CERTIFICATES OF DEPOSIT AND SAVINGS
2.27
CERTIFICATES
OTHER AMOUNTS DUE
4.62
ACCRUED INTEREST PAYABLE
6.63
TOTAL
1,731.58
Total
Dec. 12
% of
NonResidents
structure
residents
Total
Annual
% of
change in
%
structure
120.41
0.00
38.13
0.57
2.62
12.56
7.36
1.80
0.01
0.02
0.13
2.99
0.22
0.01
49.20
332.69
0.00
554.37
8.31
8.21
790.45
187.18
216.47
7.01
52.46
69.50
225.70
24.61
7.36
247.55
17.0
0.0
28.3
0.4
0.4
40.4
9.6
11.1
0.4
2.7
3.6
11.5
1.3
0.4
12.7
188.83
0.00
511.94
7.62
5.44
832.31
178.92
247.24
6.95
51.67
92.03
223.41
24.05
7.68
218.27
110.95
0.00
44.51
0.54
2.55
14.35
8.27
2.39
0.01
0.02
0.18
3.24
0.22
0.03
54.19
299.78
0.00
556.45
8.17
7.99
846.67
187.20
249.63
6.96
51.69
92.21
226.65
24.27
7.71
272.46
14.9
0.0
27.7
0.4
0.4
42.2
9.3
12.4
0.3
2.6
4.6
11.3
1.2
0.4
13.6
-9.9
0.4
-1.7
-2.6
7.1
0.0
15.3
-0.7
-1.5
32.7
0.4
-1.4
4.7
10.1
0.00
0.20
0.65
224.27
2.27
4.81
7.27
1,955.85
0.1
0.2
0.4
100.0
2.00
4.79
6.58
1,777.78
0.00
0.30
0.52
227.92
2.00
5.10
7.09
2,005.70
0.1
0.3
0.4
100.0
-12.0
5.8
-2.5
2.5
-
Scope: all credit institutions, activity in France, financial and non-financial customers
Source: ACPR.
44
Sector data
Appendix 8 Loans to non-financial customers, by sector and loan type
Credits by sector, 2010 - 2012
(EUR billion)
2010
Residents
2011
1,815.78
2012
1,895.66
1,911.65
Change,
Amount
15.99
Annual
change, %
0.8%
-1.2%
Non-financial companies
648.78
677.76
669.37
-8.40
Households
976.11
1,023.69
1,044.39
20.70
2.0%
Insurance companies
8.44
11.02
9.21
-1.81
-16.4%
General government
182.44
183.19
188.69
5.49
3.0%
195.19
209.33
202.12
-7.22
-3.4%
Total, non-financial custom ers
2,010.97
2,104.99
Scope: all credit institutions, domestic business, non-financial customers.
Source: ACPR.
2,113.77
8.77
0.4%
Non-residents
Credits by sector and loan type, 2012
Residents
(EUR billion)
Dec. 12
Trade receivables
Non-financial
companies
Sole
proprietors
Individuals
Insurance
companies
General
government
Non-profit institutions
Non-residents
Annual change
(%)
Total
serving households
11.30
0.11
0.00
0.00
2.64
0.15
8.58
22.78
4.78
0.00
0.00
0.00
0.01
0.00
33.84
38.63
0.7
Cash loans
106.27
8.00
127.23
2.67
7.78
0.52
57.78
310.23
-6.4
Equipment loans
288.71
34.04
0.00
0.62
161.77
10.88
51.11
547.13
1.6
Housing loans
102.48
85.93
753.48
0.24
2.62
1.87
20.43
967.05
2.7
Other loans
59.22
0.97
2.58
1.18
9.37
0.42
17.34
91.08
-0.3
Overdrafts
32.81
1.66
7.25
0.80
1.69
0.99
9.17
54.36
-0.6
Consumer leases and similar operations
61.13
2.78
4.83
0.06
2.81
0.68
3.00
75.29
-0.8
2.67
0.01
0.00
3.65
0.00
0.01
0.87
7.21
-11.7
0.4
Export credits
Subordinated loans
Grand total
669.37
133.50
895.37
9.21
188.69
15.52
202.12
2,113.77
Relative share of economic agents (%)
31.7
6.3
42.4
0.4
8.9
0.7
9.6
100.0
Annual change (%)
-1.2
-1.4
2.5
-16.4
3.0
2.9
-3.4
0.4
-10.3
Source: ACPR.
45
Sector data
Appendix 9 Off-balance sheet commitments of credit institutions
(EUR billion)
Dec. 10
Dec. 11
Dec. 12
Change 2012/2011
Amount
%
FINANCING COMMITMENTS
Given:
- to credit institutions
189.47
157.54
152.52
-5.02
-3.2
- to customers
849.51
792.88
727.85
-65.04
-8.2
483.83
432.10
420.60
-11.50
-2.7
56.72
39.77
63.31
23.54
59.2
- to credit institutions
412.42
439.92
355.69
-84.23
-19.1
- to customers
663.34
668.85
679.03
10.18
1.5
- from credit institutions
472.06
557.41
517.48
-39.94
-7.2
- from customers
585.51
655.92
620.08
-35.84
-5.5
220.25
184.98
256.09
71.11
38.4
0.00
0.00
0.00
0.00
0.0
220.41
188.48
259.26
70.78
37.6
0.12
0.12
0.17
0.05
41.7
Currencies to be received
5,844.36
6,072.09
6,618.41
546.32
9.0
Currencies to be delivered
5,852.66
6,060.48
6,629.46
568.98
9.4
91,292.73
80,214.63
95,922.30
84,739.48
91,375.83
81,426.33
-4,546.47
-3,313.14
Transactions in currency instruments
3,086.96
3,261.23
3,327.23
66.00
2.0
Transactions in other instruments
7,991.14
7,921.59
6,622.27
-1,299.32
-16.4
Received:
- from credit institutions
- from customers
GUARANTEE COMMITMENTS
Given:
0.0
Received:
COMMITMENTS ON SECURITIES
Securities to be received
o/w securities sold with a repurchase option
Securities to be delivered
o/w securities bought with a repurchase option
CURRENCY TRANSACTIONS
COMMITMENTS IN RESPECT OF FORWARD
FINANCIAL INSTRUMENTS
Transactions in interest rate instruments
-4.7
-3.9
Scope: all credit institutions, all business.
Source: ACPR.
46
Sector data
Appendix 10 Total provisioning rate
(EUR billion)
120
240%
212.6%
100
175.8%
80
100.3
97.4
139.4%
101.7
90.7
124.5%
60
160%
132.1%
142.8%
67.0
200%
120%
124.6%
56.9
40
80%
56.3
20
40%
0
0%
dec. 06
dec. 07
dec. 08
dec. 09
Gross non-performing loans
dec. 10
dec. 11
dec. 12
Total provisioning rate
N.B. : The numerator of the total provisioning rate comprises asset and liability provisions , while the denominator comprises
gross non-performing loans, regardless of the type of counterparty or transaction (loans and securities).
Scope: all credit institutions, business in France.
Source: ACPR.
47
Sector data
Appendix 11 Aggregate financial situation of investment firms
EUR billion
Dec. 2010
Dec. 2011
Dec. 2012
Change
(%)
ASSETS
Money market and interbank market transactions
57.60
68.72
68.20
-0.7
0.53
0.49
1.04
109.7
Securities and other transactions
290.93
229.23
252.07
10.0
Trading securities
124.81
60.44
106.28
75.8
. Options bought
77.01
74.79
58.23
-22.2
. Securities held for sale and portfolio securities
19.90
17.74
15.14
-14.6
0.00
0.00
0.00
-100.0
7.45
7.52
4.20
-44.2
4.27
2.01
3.99
98.5
8.63
15.16
13.49
-11.1
47.40
50.36
50.38
0.0
. Non-performing assets and accruals
1.46
1.21
0.37
-69.7
Capital assets
0.61
0.71
0.62
-12.0
. Subordinated loans
0.01
0.01
0.01
-1.9
. Shares in affiliated entities
0.28
0.34
0.29
-13.3
. Net fixed assets
0.32
0.36
0.32
-11.2
. Non-performing assets and accruals
0.00
0.00
0.00
4.6
Shareholders and partners
0.00
0.00
0.00
-
349.66
299.15
321.93
7.6
103.85
75.20
86.99
15.7
1.46
2.05
2.84
38.5
232.03
206.87
216.65
4.7
28.88
17.62
19.15
8.7
111.64
104.95
92.33
-12.0
Customer transactions
. investment securities
. Securities bought under repurchase
agreements
. Trading and settlement accounts
. Sundry debtors
. Accruals and deferred income
Total assets
LIABILITIES
Money market and interbank market transactions
Credit balances on customer accounts
Securities and other transactions
Securities transactions
Options sold
. Debts evidenced by a certificate
17.98
22.17
25.28
14.0
o/w: . money market securities
16.11
20.70
24.20
16.9
1.86
1.47
1.08
-26.7
4.00
2.69
5.30
96.9
28.82
20.43
32.73
60.3
5.3
. bonds
. Trading and settlement accounts
. Securities sold under repurchase agreements
. Sundry creditors
. Accruals and deferred expenses
. Accrued interest payable
Provisions, shareholders’ equity
4.49
7.82
8.23
36.12
31.08
33.48
7.7
0.11
0.11
0.13
21.4
11.15
13.91
14.90
7.2
. Subordinated debt
0.26
0.52
0.47
-8.9
. Provisions
9.34
11.53
12.22
6.0
. Premiums related to capital stock and reserves
0.53
0.58
0.86
49.1
. Capital
1.01
1.28
1.34
5.1
Retained earnings/losses (+/-)
0.61
0.51
0.47
-8.3
Excess of income/loss over charges (+/-)
Total liabilities
Scope: all investment firms, aggregate business.
Source: ACPR.
0.57
0.61
0.08
-87.4
349.66
299.15
321.93
7.6
48
Sector data
appendix 11 (continued)
(EUR billion)
Dec. 2010
Dec. 2011
Dec. 2012
Change
(%)
OFF-BALANCE SHEET
Financing commitments
Given
2.46
3.07
2.70
Received
14.79
16.80
3.22
-11.9
Given
2.15
1.45
0.98
Received
5.73
6.37
5.04
Securities to be received
4.25
2.92
4.88
67.2
Securities to be delivered
4.93
4.03
5.08
25.9
. Currencies to be received
44.37
51.37
68.53
33.4
. Currencies to be delivered
p
31.79
32.57
45.41
39.5
2,692.66
2,884.96
2,704.57
-6.3
12.01
7.72
12.27
58.9
Guarantee commitments
-32.3
Commitments on securities
Currency transactions
instruments
Other off-balance sheet commitments
Scope: all investment firms, aggregate business.
Source: ACPR.
49
Sector data
Appendix 12 Aggregate income statement of investment firms
EUR billion
Dec. 2010
Dec. 2011
Dec. 2012
Change
2012/2011
(%)
Money market and interbank transactions
0.36
0.49
1.24
150.9
. interest expense
1.66
3.39
0.71
-78.9
. interest revenue
2.02
3.88
1.95
-49.7
-0.25
-18.89
0.69
-
. expenses
4.00
21.46
1.96
-90.9
o/w repurchase agreements
0.14
0.22
0.12
-44.3
o/w bond interest
0.01
0.01
0.00
-99.8
. revenues
3.76
2.57
2.65
2.9
o/w repurchase agreements
Transactions in forw ard financial instruments
(propriety trading)
. expenses
0.05
0.10
0.06
-38.0
1.84
20.22
-0.48
-
444.78
592.25
431.63
-27.1
. revenues
446.62
612.47
431.15
-29.6
Financial services/expenses
1.04
1.04
0.88
-15.7
. interbank transactions
0.01
0.01
0.01
-24.3
. customer transactions
0.01
0.00
0.00
-93.6
. securities transactions
0.39
0.32
0.27
-15.9
. foreign exchange transactions
0.00
0.00
0.00
35.6
. commitments on securities
0.00
0.00
0.00
-
. forw ard financial instrument transactions
0.28
0.32
0.29
-9.7
. provision of financial services
0.36
0.38
0.31
-20.5
Financial services/income
1.64
1.76
1.51
-14.1
. interbank transactions
0.01
0.01
0.01
-27.9
. customer transactions
0.01
0.02
0.02
-5.7
. securities transactions
0.12
0.13
0.11
-14.2
. foreign exchange transactions
0.00
0.00
0.00
9.2
. commitments on securities
0.00
0.01
0.01
67.7
. forw ard financial instrument transactions
0.10
0.11
0.10
-8.3
. provision of financial services
1.39
1.48
1.26
-14.9
Foreign exchange transactions
-0.07
0.13
-0.01
-
. expenses (losses)
1.29
1.48
1.97
33.5
. income (gains)
1.23
1.60
1.96
22.0
income from equity interests and subordinated debt
0.12
0.07
0.08
13.5
expenses on subordinated loans
0.01
0.02
0.02
7.3
other bank operating income
0.06
0.07
0.05
-32.7
other bank operating expenses
0.09
0.07
0.06
-14.5
net ancillary and miscellaneous income
0.06
0.04
0.03
-26.5
NET BANKING INCOME
2.63
2.77
2.14
-22.5
Securities transactions (propriety trading)
Scope: all investment firms, aggregate business.
Source: ACPR.
50
Sector data
EUR billion
Dec. 2010
Dec. 2011
Dec. 2012
Change
2012/2011
(%)
Overheads
1.88
1.84
1.82
. personnel
1.01
1.04
1.06
1.6
. taxes
0.05
0.05
0.05
-6.0
. external services
. other operating expenses (rebilled expenses)
Depreciation and provisions for tangible and
intangible fixed assets
GROSS OPERATING INCOME
Net allocations to provisions and loan losses (incl.
interest on non-performing loans)
Net allocations to provisions for risks and liabilities
-1.3
1.02
0.92
0.88
-4.8
-0.20
-0.17
-0.16
-196.4
0.08
0.09
0.11
33.0
0.68
0.84
0.21
-74.6
0.03
-0.03
-0.04
-221.4
-0.10
0.05
0.01
-80.3
OPERATING INCOME
0.75
0.82
0.24
-70.5
Net capital gains on fixed assets
0.03
-0.04
-0.02
-149.4
PRE-TAX OPERATING INCOME
0.77
0.78
0.22
-71.5
Exceptional income
0.01
0.00
0.01
581.9
Exceptional expenses
0.01
0.00
0.01
129.5
Net allocation to reserve for general banking risks
0.00
0.00
0.00
-
. Allocations to reserve for general banking risks
0.00
0.00
0.00
-8.9
. Writebacks from reserve for general banking risks
0.00
0.00
0.00
-
Net allocations to regulatory provisions
0.00
0.00
0.00
-
Corporate income tax
0.16
0.13
0.15
11.8
0.61
0.64
0.07
-88.3
NET INCOME
Scope: all investment firms, aggregate business.
Source: ACPR.
51
Sector data
Glossary
Aggregate business
In the Banks section of this report, the term covers "domestic business" (see
below) done by resident credit institutions, and the business conducted by
their foreign branches (which are not legal persons).
Cost of risk
Allowances net of reversals of valuation allowances for credit risk, plus
losses on bad debts, less amounts recovered on written-off loans.
Cost-to-income ratio
Ratio of operating expense to net banking income. The ratio measures total
operating and committed costs (general & administrative expenses,
depreciation and provisions for tangible and intangible fixed assets) as a
percentage of net banking income.
"Customer transactions" concern all economic agents apart from credit
institutions, within the meaning of Article 3-7 of Banque de France
Regulation 91-01.
"Customer transactions" do not include business done with:
- credit institutions
- Caisse des Dépôts et Consignations
- central banks and banks of issue for activities not concerning money
market and interbank transactions on the assets and liabilities sides of the
balance sheet
- domestic and international banking and financial institutions
- companies conducting banking transactions as part of their regular
business outside France
- foreign branches of reporting institutions.
Customers are divided into financial and non-financial (see below).
Customers
Domestic business
In the Banks section of this report, the term covers the business done by credit
institutions resident in metropolitan France, Monaco and overseas
departments (DOM). See Aggregate business.
Financial customers
Financial customers, whether resident or non-resident, include collective
investment schemes, debt securitisation schemes, and financial institutions
other than credit institutions (notably investment firms and brokers, asset
management companies, cash management companies and debt management
funds).
Freedom to provide services
The right for an institution with its registered office or a branch in a Member
State of the European Economic Area to provide services in another Member
State. Accordingly, the freedom to provide services refers to the ability of a
company based in one Member State to guarantee a risk in another Member
State.
Gross operating income
Net banking income less operating expenses
IFRS
International Financial Reporting Standards, drafted by the International
Accounting Standards Board (IASB) to gradually replace International
Accounting Standards (IAS).
52
Sector data
Liquidity Coverage Ratio
(LCR)
Proportion of highly liquid assets available to meet obligations at one month
(provided for in the Basel III reform). See Briefing in subsection 4 of the
Banks section of this report.
Net banking income
Difference between income from banking operations and the related
expenses.
Net Stable Funding Ratio
(NSFR)
Ratio of one-year liquidity (provided for in the Basel III reform).
Non-financial customers
Non-financial customers, whether resident or non-resident, include
households (individuals, sole proprietors, and non-profit institutions serving
households), non-financial companies, insurance companies and general
government. In addition, non-resident non-financial customers include
international organisations and foreign civil servants based in France.
Gross operating income, less cost of risk, plus other income, less other
expenses
Operating income
Overheads
Wages, salaries and administrative expenses
Securities portfolio
Securities portfolios recorded on the assets side of a credit institution's
balance sheet are defined in CRB Regulation 90-01 of 23 February 1990 on
the accounting treatment of securities transactions.
See Briefing in subsection 3 of the Banks section of this report.
SURFI
Unified financial reporting system for collating regulatory and prudential data
http://www.banque-france.fr/e-surfi/tableaux/tableaux.htm
53
Sector data
Tables and charts
TABLE 1
CREDIT INSTITUTIONS, INVESTMENT FIRMS AND PAYMENT INSTITUTIONS IN FRANCE, AND CREDIT
INSTITUTIONS IN MONACO ................................................................................................................................................... 3
TABLE 2
FRENCH-OWNED CREDIT INSTITUTIONS, BY TYPE OF OWNERSHIP AT END-2012 ........................................................ 5
TABLE 3
FOREIGN-OWNED CREDIT INSTITUTIONS, BY TYPE OF OWNERSHIP AND GEOGRAPHICAL ORIGIN AT END-2012... 5
TABLE 4
FOREIGN PRESENCE IN FRANCE’S BANKING AND FINANCIAL SYSTEM ........................................................................ 6
TABLE 5
BRANCHES OF CREDIT INSTITUTIONS, INVESTMENT FIRMS AND PAYMENT INSTITUTIONS IN FRANCE ................... 8
TABLE 6
FPS NOTIFICATIONS AT 31 DECEMBER 2012 ..................................................................................................................... 9
TABLE 7
BRANCHES OPENED BY CREDIT INSTITUTIONS, INVESTMENT FIRMS AND PAYMENT INSTITUTIONS IN OTHER EEA
COUNTRIES ......................................................................................................................................................................... 10
TABLE 8
FPS NOTIFICATIONS IN EFFECT AT 31 DECEMBER 2012 ................................................................................................ 11
TABLE 9
SIMPLIFIED INCOME STATEMENT OF CREDIT INSTITUTIONS ........................................................................................ 13
TABLE 10
LOANS TO CUSTOMERS ..................................................................................................................................................... 25
FIGURE 1
MAIN INTERMEDIATE OPERATING TOTALS ............................................................................................................... 14
FIGURE 2
NBI/TOTAL ASSETS RATIO .......................................................................................... ERREUR ! SIGNET NON DÉFINI.
FIGURE 3
OPERATING INCOME/TOTAL ASSETS RATIO ............................................................................................................. 15
FIGURE 4
COST-TO-INCOME RATIO .............................................................................................................................................. 17
FIGURE 5
SPREAD OF THE COST-TO-INCOME RATIO ................................................................................................................ 16
FIGURE 6
LIABILITY COMPONENTS.............................................................................................................................................. 17
FIGURE 7
SHARE OF CURRENCY TRANSACTIONS ON THE BALANCE SHEET........................................................................ 18
FIGURE 8
INTERBANK TRANSACTIONS ....................................................................................................................................... 19
FIGURE 9
CUSTOMER DEPOSITS .................................................................................................................................................. 22
FIGURE 10
SAVINGS ACCOUNTS SUBJECT TO SPECIAL RULES ................................................................................................ 21
FIGURE 11
SAVINGS ACCOUNTS SUBJECT TO SPECIAL RULES: QUARTERLY CHANGE ....................................................... 22
FIGURE 12
DEBT EVIDENCED BY A CERTIFICATE ........................................................................................................................ 25
FIGURE 13
ASSET COMPONENTS ................................................................................................................................................... 26
FIGURE 14
LOANS TO NON-FINANCIAL CUSTOMERS, BY CATEGORY OF AGENT ................................................................... 25
FIGURE 15
LOANS IN FOREIGN CURRENCIES GRANTED TO RESIDENT NON-FINANCIAL CUSTOMERS................................ 26
FIGURE 16
LENDING TO NON-FINANCIAL CUSTOMERS, BY LOAN TYPE ................................................................................... 27
FIGURE 17
LENDING TO NON-FINANCIAL CUSTOMERS, BY LOAN TYPE: QUARTERLY CHANGE ...... ERREUR ! SIGNET NON
DÉFINI.
SECURITIES PORTFOLIO OF CREDIT INSTITUTIONS ................................................................................................. 28
FIGURE 18
FIGURE 19
CUSTOMER LOANS AND DEPOSITS OVER TIME........................................................................................................ 29
FIGURE 20
LOAN-TO-DEPOSIT RATIO ............................................................................................................................................ 30
FIGURE 21
LOANS AND DEPOSITS OVER TIME............................................................................................................................. 31
FIGURE 22
AGGREGATE REGULATORY LIQUIDITY RATIO ......................................................................................................... 32
FIGURE 23
GROSS DOUBTFUL DEBT RATIO ................................................................................................................................. 33
FIGURE 24
GROSS NON-PERFORMING LOAN PROVISION RATIO ............................................................................................... 34
FIGURE 25
HOME LOANS BY TYPE OF BORROWER..................................................................................................................... 34
FIGURE 26
NON-PERFORMING LOAN RATIO ON HOME LOANS OVER TIME .............................................................................. 35
54
ISSN : 2112-7891
Editorial Director: Danièle Nouy
Report from the ACPR General Secretariat
www.acpr.banque-france.fr