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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 1 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.
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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 1 half of 2024 remained consistent with its strategic guidelines, aligned closely with Groupe BPCE, as well as with its own management commitments.
In the 1 half of 2024, Compagnie de Financement Foncier issued €4.11bn of covered bonds, including €3.5bn in euro benchmark public format.
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.
In the 1 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
Net banking income came to €78m, down €42m on the 1 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 1 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
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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
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