Record earnings for Crédit Mutuel Arkéa in 2016, confirming the effectiveness of its business model
The Board of Directors of Crédit Mutuel Arkéa, meeting in Brest under the Chairmanship of Jean-Pierre Denis, has approved the 2016 financial statements. In a difficult economic environment and while undergoing a profound transformation, Crédit Mutuel Arkéa achieved record earnings. Its strong commercial and financial performance reflects the effectiveness of the particularly original and audacious strategy implemented by the Group since 2008 and confirms its intrinsic financial strength. Its business diversification has clearly borne fruit and provides a solid basis for facing, with determination, the future and the challenges of the transformation underway in the banking sector.
- Net banking and insurance income grew by 4.1% to €1.85 billion, a record level that reflects its strong business momentum;
- Operating income rose by 6.9% to €466 million under the combined effects of a contained rise in operating expenses and an almost 5% reduction in the cost of risk;
- Net income, Group share was up by 13.5% compared with 2015, reaching a record €336 million;
- The cost-to-income ratio improved by -0.2 point to 69.2%;
- The Common Equity Tier One solvency ratio remains far above the regulatory requirement at 15.3%, confirming the group’s intrinsic strength and providing an unprecedented reserve for continuing growth and investment.
350,100 new clients
At sales levels, the Group maintained a very strong growth momentum, with operating performances in line with its targets.
- Its client portfolio increased by 9.8% (350,100 new clients), bringing the total to 3.94 million.
- New lending amounted to €10.9 billion bringing total outstanding loans to €47.13 billion (+5.1%) …… ;
- In terms of savings, the overall total grew by 16.3% to more than €100 billion (€100.5 billion) thanks to the inclusion of Keytrade. At same scope, savings grew by 6.7%;
- In non-life and protection insurance, , the Group recorded a 3.4% increase in its portfolio, with 372,200 new policies bringing the total to 2.01 million policies.
The Board of Directors of the Confédération Nationale du Crédit Mutuel (CNCM) met today in connection with the penalty procedure initiated last October against the Crédit Mutuel Arkéa interfederal savings bank. At the meeting, Crédit Mutuel Arkéa, through its Chairman Jean-Pierre Denis, not only demonstrated the illegality of the procedure and the baselessness of the accusations, but also reaffirmed Crédit Mutuel Arkéa's determination to preserve its autonomy and defend its decentralized cooperative banking model whose operational and economic effectiveness has a proven track record. Jean-Pierre Denis proposed that further discussions be held soon to define the terms and conditions of an orderly separation.
Crédit Mutuel Arkéa has taken note of the decision of the French Council of State (Conseil d’Etat) issued earlier today, which sets aside the Rennes Administrative Court’s judgement of August 25, 2016.
Crédit Mutuel Arkéa: 96.4% vote in favor of autonomy
Following the ballots that took place between October 19 and 21, 2016, the three federations of Crédit Mutuel Arkéa (Bretagne, Massif Central and Sud-Ouest) came out overwhelmingly in favor of the project championed by the group. 96.4% of the 333 votes cast were in favor of creating Crédit Mutuel Arkéa’s own central governing body. This vote, which shows the group’s collective support for the management-led project, is a strong signal to the Confédération Nationale du Crédit Mutuel (CNCM) that it needs to find a solution that both complies with banking regulations and respects Crédit Mutuel Arkéa’s autonomy.
Following today’s General Meeting of the Confédération Nationale du Crédit Mutuel (CNCM), Crédit Mutuel Arkéa would like to reassert the following facts: The governance of the CNCM still does not comply with European requirements: “Its status as an association does not allow for appropriate supervision” according to the ECB’s own words...