Activity/organization/distribution structure

Retail banking is Crédit Mutuel Alliance Fédérale's core business and accounts for 67% of its net banking income. It encompasses the Crédit Mutuel banking and insurance network, the CIC banking and insurance network, Banque Européenne du Crédit Mutuel, the Targobank branches in Germany and Spain, Cofidis Group, Banque Casino and all the specialized business lines whose products are marketed by the networks: insurance brokerage, equipment leasing and leasing with purchase option, real estate leasing, factoring, asset management, employee savings and real estate sales and management.

In 2019, the retail banking networks posted strong activity levels thanks to good sales momentum and the cross-selling of new products and services aimed at adapting both to customer needs and to the persistent low interest environment. New business in retail banking increased over the year as a whole. Inflows of funds reached nearly €280 billion in 2019 versus €267.5 billion in 2018. Total lending came to €317.3 billion in 2019, a year-on-year increase of 7%.

Crédit Mutuel banking and insurance network (1)

Drawing on the expertise of 17,275 employees, the Crédit Mutuel local network supports the projects of 7.128 million personal customers, professionals, farmers and associations. Retail banking covers current accounts, payments, savings, loans and insurance for all customers.

Crédit Mutuel offers its 6.2 million personal customers specially designed products for every stage of life, whether they are taking out a loan to pay for driving lessons, renting or buying their first apartment or signing up for life insurance, as well as a range of useful everyday services such as mobile phones, broadband and remote home surveillance.

The professional customer base of 503,000 crafts people, traders and self-employed professionals also benefit from dedicated employee savings and provident and health insurance solutions designed for managers and employees. For farmers, Crédit Mutuel offers solutions to help with the purchase or leasing of agricultural equipment. Its 84,000 farming customers also benefit from an offering of insurance against weather disasters and to manage their exposure to harvest prices.

The specific needs of clubs, associations, charitable foundations, works committees and non-profit organizations, which make up 4% of retail banking customers, are also covered. This includes the collection of donations or membership fees via a partnership with HelloAsso, a free online payment system.

As an unlisted cooperative bank, Crédit Mutuel is owned by each of its customer-members, all of whom are invited to attend the general meeting of their local bank. There are 4.78 million members, with 81% of customers who are members of their local cooperative bank. Customers have multi-channel access to services at all times, via a network of 1,920 branches as well as by phone, mobile app and the website.

Recent events

In 2019, customer deposits rose to €120.8 billion, an increase of 8%. Funds under management in life insurance continued to grow, rising to €40.4 billion in 2019 from €38.2 billion in 2018. Loan receivables rose by 5.8% to €134.5 billion, driven by home loans and consumer loans. We continued to diversify our revenue sources over the year, as illustrated by the growth in the inventory of complementary services sold: +3.8% in property and casualty insurance, +6.4% in mobile telephones and +4.1% in anti-theft protection via Homiris.

In 2019, Crédit Mutuel was named the best French banking group by Global Finance magazine for the fifth year in a row, and by World Finance magazine for the eighth time.

Crédit Mutuel was also named the most popular bank in France by the Posternak-IFOP2 survey and the Trophées Qualité, with a remarkably high rate of satisfaction among customers for its branch banking services.

(1) The data provided in this paragraph are based on the scope of consolidation as at December 31, 2019, i.e. 11 federations.

Key figures in 2020

7.467 million customers

14,799 employees

1,962 branches

141.7 billion in customer deposits

an increase of 17.4%

148.6 billion in customer loans

an increase of 10.5%

3,186 million in net banking income

an increase of 3.3%

492 million in net profit

an increase of 3.4%

www.creditmutuel.fr

CIC banking and insurance network

Retail banking is CIC's core business and comprises a branch banking network made up of five regional banks and CIC Île-de-France, together with the specialized business lines whose products it markets: insurance brokerage, equipment and real estate leasing, factoring, asset management, employee savings and real estate sales and management. Drawing on the expertise of its 20,092 employees, the CIC retail banking network meets the needs of 5.22 million personal customers, professionals, farmers, non-profit organizations and businesses.

CIC adopts a strong customer-focused approach with a high quality, efficient and up-to-the-minute multi-channel offering. Customers can carry out their banking transactions either by direct contact with their advisor at 1,874 branches in France or opt for online or mobile banking.

Recent events

The network ensures ongoing support for its customers and helps them to finance their projects. In 2019, the network's loan commitments rose by 5.9%, which was driven by increases in home loans (+6.1%) and loans for capital purchases (+7.9%). In parallel, customer deposits rose by 11.5%, thanks to current account balances, passbook deposits and term deposits mainly held by businesses and professionals. Life insurance saw a net increase in funds under management amid tough competition. Diversification activities saw strong sales momentum in products and services, in particular an increase in the number of remote banking contracts (+8.7%), anti-theft protection via Homiris (+4.4%), telephone services (+5.7%) and electronic payment terminals (+3.6%).

Drawing on the developments achieved in 2018, CIC is continuing to improve online and app-based functions and thus increase the autonomy to customers (online claims declaration, online loan subscription). CIC also launched a new version of its electronic invoice management service, CIC e-facture, which is very popular among companies.

In 2019, CIC enhanced its offerings in each customer segment:

  • a new 10-year civil liability insurance policy to round out the insurance range for building professionals;
  • the digitization of CIC-AGRI and CIC-APPRO which secure and develop relations with partners;
  • PayAsso, a payment solution aimed at clubs and associations which notably features a free(1) donation collection service;
  • the offering aimed at start-ups and innovative companies to which were added CIC Start Export, which helps firms expand internationally, and CIC Start ComFi, which helps them with their communication needs in relation to fundraisings.

Already a partner of Fédération Française de Natation and Fédération Nationale de la Plaisance et Pêches de Mer, CIC signed new partnerships in 2019 with Fédération Française de Cyclisme and Fédération Française de Jeux Vidéo. CIC also backs sports-related businesses, notably via the second CIC Esport Business Awards and the signing of a new partnership with Ligue Française de League of Legends. Over the last ten years, CIC has supported the business creation associations Union des Auto Entrepreneurs and Moovjee.

(1) Offer limited to 1,500 donations per calendar year.

Key figures in 2020

5.35 million customers

19,809 employees

1,837 branches

159.7 billion in customer deposits

an increase of 23.6%

155.4 billion in customer loans

an increase of 13.6%

3,649 million in net banking income

a decrease of 2.1%
[data for retail banking only / excluding specialized businesses]

www.cic.fr

Banque Européenne du Crédit Mutuel (BECM)

A specialist in the corporate and real estate companies market in France and Germany and in the real estate development market in France, Banque Européenne du Crédit Mutuel is a moderately sized, customer-focused and responsive company. BECM offers all companies a high level of specialization and value added.

It draws on its in-depth knowledge of local markets to offer specialized services for German businesses operating in France and for the German subsidiaries of French companies. In the real estate market, it acts as a partner to real estate developers and property companies.

BECM serves nearly 21,900 customers in France and outside France. It operates a sales network of 54 branches, including 45 in France and a subsidiary in Monaco. It recently expanded its regional presence with new branches in Annecy and Aix-en-Provence and a second office in Paris, which helped lead to growth in new business in 2019.

Recent events

Measured in terms of monthly average capital, customer loans grew by 8% to €16.4 billion in 2019. Deposits grew strongly by 28.7% to reach €16.9 billion. Net banking income rose by 7.6% to €323 million.

In 2019, the migration to a new-generation IT system in Germany opened up new opportunities to strengthen and diversify business in terms of cash flow management, structured lending, international lending and asset management for institutional clients.

Key figures in 2020

23,787 customers

441 employees

56 branches

19.8 billion in customer deposits

an increase of 17%

18 billion in customer loans,

an increase of 9.7%

306 million in net banking income

a decrease of 5.2%

60.5 million in net profit

a decrease of 47.4%

www.becm.fr

TARGOBANK Germany

Targobank operates 337 branches in Germany's 250 largest cities, meeting the needs of 3.9 million retail and business customers to whom it provides banking, insurance, factoring and lease financing solutions. As a market leader in consumer credit and factoring, Targobank combines the advantages of an online bank with those of branch banking, offering its customers quick and efficient service and personal advice in branch, at home or by phone.

Recent events

The bank registered particularly strong activity in 2019. Outstanding loans rose by 9.0% (1) to €20 billion, due in particular to a 13% rise in market share in installment loans, from 9.0% in 2018 to 10.2% in 2019. Customer deposits reached €18.9 billion in 2019, an increase of 11.2%.

The product range for business customers, which was previously limited to sole proprietorships and the liberal professions, was extended to more complex legal entities (partnerships and companies).

In 2019, Targobank was again highly ranked in the annual survey conducted by the German Institute for Service Quality (DISQ), in which around 10,000 customers took part. As in the previous year, the bank was ranked second-highest among nationwide banks in terms of customer satisfaction.

In human resources, the bank received certification from the Top Employers institute for the quality of life in the workplace it offers to its 7,400 employees. A new campaign under the slogan BANK.ECHT.ANDERS (the "authentically different bank") was also launched with the aim of boosting the Targobank employer brand.

Finally, 2019 saw the development of AI solutions for automating and optimizing back-office processing and preventing fraud, and the introduction of agile methods for project management in the bank's service center.

(1) The growth data in this paragraph are based on pro forma business data, i.e. that of the retail + corporate activities (leasing, factoring and investment loans).

Key figures in 2020

3.7 million customers

337 points of sale

20.8 billion in customer loans

an increase of 3.9%(1)

21.3 billion in customer deposits

an increase of 12.7%

1,660.4 millions d'euros de produit net bancaire

an increase of 5.8%

TARGOBANK Spain

Wholly-owned by BFCM, Targobank Spain is a generalist bank that serves personal customers, professionals and businesses. With 88 branches located in the country's biggest areas of economic activity, Targobank offers its 125,600 customers a broad range of banking and insurance products and services. It offers a network of bilingual advisors and a French-language mobile app for its French-speaking customers.

Recent events

Gross loan receivables reached €2.4 billion in 2019 while customer deposits reached €2 billion, an increase of €100 million compared with 2018.

In 2019, significant restructuring was carried out to facilitate the rollout of a new network organization designed to boost multi-channel growth. This led to the introduction of a new digital-only current account, the launch of the new website and various developments to the mobile app, such as budget and card management tools and more user-friendly methods of obtaining information.

(1) The growth data in this paragraph are based on pro forma business data, i.e. that of the retail + corporate activities (leasing, factoring and investment loans).

Key figures in 2020

134,700 customers

85 branches

2.5 billion in customer loans

an increase of 7.7% compared with 2019

2 billion in customer deposits

no change in relation to 2019

www.targobank.es

Beobank in Belgium

Beobank offers personalized products and services to individuals, self-employed and small businesses. It supports its clients in the realization of their personal and professional projects by offering banking and non-banking products and services that are based on values of responsibility and respect.

Key figures

742,000 customers

979 employees

218 sales outlets

www.beobank.be