first half 2021 results

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Paris, July 29, 2021

Company results Funding Land for the 1stsemester 2021

The Board of Directors of Compagnie de Financement Foncier met on July 29, 2021, under the chairmanship of Eric Filliat, to approve the 2021 half-year accounts.

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I. ACTIVITY OF THE COMPAGNIE DE FINANCEMENT FONCIER

  • Impact of the COVID-19 health crisis

During the current and lasting health crisis linked to Covid-19 since March 2020, Compagnie de Financement Foncier

continued its activities to serve its customers under very satisfactory conditions.

The estimated overall impact of Covid-19 remains insignificant at 1st half-year 2021. In addition, the cost of risk is very low over the period.

  • Show of obligations land (French covered bonds)

Compagnie de Financement Foncier is continuing to refinance Groupe BPCE under optimal conditions in order to support the growth of its various businesses.

In the 1st half-year 2021, Compagnie de Financement Foncier issued € 1.8 billion of obligations land under excellent conditions, including € 300 million in the form of private placements.

  • In April 2021, Compagnie de Financement Foncier launched its first benchmark of the year for an amount of € 1.5 billion with an eight-year maturity at a rate of -0.10%. The very good conditions under which this transaction was carried out demonstrate the resilience of Compagnie de Financement Foncier’s model, the quality of its signature on the financial markets and the excellent commercial relations it maintains with the investors who support it.
  • Compagnie de Financement Foncier also issued two multi-callable bonds in registered form (Names) in the private placements segment.

As of June 30, 2021, the outstanding obligations land amounts to 53.4 billion euros.

  • Purchases and Disposalss debts

In the 1st half-year 2021, Compagnie de Financement Foncier offered financing for more than € 1bn in assets, split between loans to the public sector granted by the Caisse d’Épargne and the Banques Populaires in particular (€ 743m including € 104m off-balance sheet) and mortgage-backed securities purchased directly from Crédit Foncier.

II. COMPAGNIE DE FINANCEMENT FONCIER INCOME STATEMENT

In millions of euros 1st half from 2021 1st half of 2020
Net interest margin 114 76
Net commissions 16 19
Other bank operating costs -2 -2
Net banking income 128 93
General operating expenses -55 -52
Gross operating income 73 41
Cost of risk 1 1
Gains or losses on fixed assets 0 20
Income before tax 75 62
Income tax -24 -23
Net revenue 51 39

* Proforma take into account the reclassification of the contribution of BPCE’s central body as general operating expenses to net banking income (Group standards) and the reclassification of a provision for other NBI expenses as net interest margin.

Net banking income amounted to € 128 million at 1st half-year 2021, up mainly due to an increase in the net interest margin compared to last year.

General operating expenses amounted to € 55 million, including € 38 million for services provided by Crédit Foncier.

Gross operating income amounted to € 73 million.

The cost of risk remained insignificant with a net reversal of € 1 million at 1st half of 2021.

Net income amounted to € 51 million as of June 30, 2021.

III. BALANCE SHEET INFORMATION

Compagnie de Financement Foncier’s balance sheet stood at € 64.9 billion as of June 30, 2021, compared to € 68.5 billion as of December 31, 2020.

Doubtful outstandings amounted to € 1.2 billion as of June 30, 2021, down € 107 million compared to December 31, 2020. Home loans to individuals represent 99% of these loans.

IV. PRUDENTIAL INFORMATION

Although exempt from regulatory requirements concerning solvency ratios, Compagnie de Financement Foncier calculates a Common Equity Tier One ratio for information purposes. As of June 30, 2021, this ratio remains well above the minimum thresholds specified by regulation CRR 575/2013.

In accordance with the law applicable to companies of credit land, Compagnie de Financement Foncier maintains a coverage rate of over 105%.

Annex

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Unless otherwise indicated, the financial information contained in this press release is estimated and taken from the financial statements of the Company of Funding Land. These statements include the individual accounts and the accompanying explanatory notes, drawn up in accordance with French accounting standards and applicable BPCE standards.

At the date of this press release, the audit of the half-yearly accounts by the Statutory Auditors accounts“) is still in progress.

Company Funding Land is a credit institution registered as a specialized credit institution and a “company of credit land, a French lawyer obligations land issuer, subsidiary of BPCE and fully owned by Credit Land and Groupe BPCE.

Regulated information is available on our website www.foncier.fr section “Financial communication / Regulated information”.

Contacts: Investor relations

E-mail: [email protected]
Phone. : +33 (0) 1 58 73 55 10

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