Compagnie de Financement Foncier: Results for the first half of
2024
Press release for full and effective
distribution
Paris, July 19, 2024
Compagnie de Financement Foncier results
for the 1st half of
2024
On July 19, 2024, Compagnie de Financement
Foncier’s Board of Directors, chaired by Éric FILLIAT, met to
approve the interim financial statements for 2024.
***
I. COMPAGNIE DE FINANCEMENT FONCIER’S BUSINESS
ACTIVITY
In a resilient global economy despite growing
geopolitical tensions, Compagnie de Financement Foncier’s
performance in the 1st half of 2024 remained consistent
with its strategic guidelines, aligned closely with Groupe BPCE, as
well as with its own management commitments.
- Issuance of covered
bonds
In the 1st half of 2024, Compagnie de
Financement Foncier issued €4.11bn of covered bonds, including
€3.5bn in euro benchmark public format.
- In April 2024, Compagnie de
Financement Foncier tapped the primary market for a €2bn
dual-tranche issuance. The two tranches of €1.25bn and €750m were
issued with maturities of three and eight years. The high level of
oversubscription in this transaction, despite market volatility,
attests to its success.
- In May 2024, a €1.5bn issuance was
carried out with a six-year maturity. The diversity of investors in
this transaction testifies to the quality of Compagnie de
Financement Foncier’s investor base.
The currency diversification offered by
Compagnie de Financement Foncier once again materialized, with a
CHF issuance in January for an equivalent value of €161m at the
transaction date, and a USD issuance in February for an equivalent
value of €139m at the transaction date.
Always attentive to the market and its
investors, Compagnie de Financement Foncier has made a remarkable
entry into the Social Bond market: its inaugural issuance in
October 2023 was awarded first prize in the “Social Covered Bond of
the Year” category at the Sustainable Debt Awards in April
2024.
- Refinancing of Groupe BPCE
receivables
In the 1st half of 2024, in line with
its strategic guidelines and despite a highly volatile interest
rate environment, Compagnie de Financement Foncier refinanced a
total of €2.466bn in receivables for Groupe BPCE institutions. A
specific refinancing of state-guaranteed loans (SGL) was also
carried out for €1.375bn.
II. COMPAGNIE DE FINANCEMENT FONCIER’S INCOME
STATEMENT
|
In millions of euros |
1st half
2024 |
1st half
2023 |
|
Net interest margin |
75 |
115 |
|
Net commissions |
4 |
7 |
|
Other bank operating charges (net) |
-1 |
-2 |
|
Net banking income |
78 |
120 |
|
General operating expenses |
-27 |
-35 |
|
Gross operating income |
51 |
85 |
|
Cost of risk |
1 |
1 |
|
Gains or losses on long-term investments |
0 |
0 |
|
Income before tax |
52 |
86 |
|
Income tax |
-13 |
-24 |
|
Net income |
39 |
62 |
Net banking income came to €78m, down €42m on
the 1st half of 2023.
General operating expenses came to €27m, down
€8m on the same half of the previous year, due to lower invoicing
for services provided by Crédit Foncier and income from the
restatement of the contribution to the Single Resolution Fund
(SRF).
Gross operating income reached €51m.
The cost of risk was a net reversal of €1m,
reflecting the quality of the loans carried on Compagnie de
Financement Foncier’s balance sheet. It includes an improvement in
individual risk and a net reversal of collective risk in line with
the decline in outstandings.
The overall tax expense was €13m.
Net income was €39m at June 30, 2024, compared
with €62m at June 30, 2023.
III. BALANCE SHEET INFORMATION
Compagnie de Financement Foncier’s balance sheet
total stood at €61.4bn at June 30, 2024, compared with €60.3bn at
December 31, 2023.
In the 1st half of 2024, in line with
the strategy put in place, the refinancing of Groupe BPCE’s
institutions focused mainly on the public sector, increasing the
relative proportion of this type of asset on Compagnie de
Financement Foncier’s balance sheet.
At June 30, 2024, outstanding obligations
foncières amounted to €53.1bn, including related debts, up on
December 31, 2023 (€51.7bn).
IV. PRUDENTIAL INFORMATION
Although exempt from regulatory requirements in
terms of solvency ratios, Compagnie de Financement Foncier
establishes, for information purposes, a Common Equity Tier One
(CET 1) ratio at its limits. At June 30, 2024, this ratio remains
well above the thresholds set out in regulation 575/2013 (CRR).
In accordance with the legislation applicable to
Sociétés de Crédit Foncier, Compagnie de Financement
Foncier maintains a coverage ratio for its privileged liabilities
of more than 105%.
Appendices
***
Unless otherwise stated, the financial data
in this press release are currently estimated and taken from the
financial statements of Compagnie de Financement Foncier. These
include the individual financial statements and related explanatory
notes, prepared in accordance with French accounting standards and
applicable Groupe BPCE standards.
At the date of publication of this press
release, the audit procedures carried out by the Statutory Auditors
on the interim financial statements are in progress.
Compagnie de Financement Foncier is a credit
institution, approved as a specialized credit institution and a
Société de Crédit Foncier, affiliated with BPCE and a 100%
subsidiary of Crédit Foncier and Groupe BPCE.
Regulated information is available on the
website https://foncier.fr/ in the “Financial
communication/Regulated information” section.
Contact: Investor Relations
Email: ir@foncier.fr
Tel.: +33 (0) 1 58 73 55 10
- Compagnie de Financement Foncier - Results for the first half
of 2024
