International capital adequacy ratio 9.8% 10.2% 11.4% Tier One ratio 7.2% 7.2% 8.1% * On an extended Cooke basis.
Drawing on its expertise in a wide range of complementary areas, it offers not only traditional banking services but also high value-added technology-based services. Natexis Banques Populaires builds long-term domestic and international partnerships with its clientele of large and medium-sized companies, financial institutions and the Banque Populaire Group network.
In light of these good results, at the Annual Shareholders' Meeting we will be recommending a significant increase in the dividend.
In a persistently unsettled environment, all of the financing, investment banking and service businesses reported higher earnings, despite the unfavorable dollar effect.
SHARE PERFORMANCE base 100 as of January 1, 2003 Natexis Banques Populaires shares ended the year at euros 88.55 up 11.4% over the end-2002 price.
Populaires shares. Additionally, conference calls are arranged to explain the bank's financial statements.
■ voting by post, by returning the signed postal voting form after checking the appropriate boxes to indicate their vote on each resolution, or.
Directors Philippe Dupont, Chairman of Natexis Banques Populaires Banque Fédérale des Banques Populaires, represented by Christian Hébrard, Honorary Chairman of CASDEN Banque Populaire Jean-Paul Bechat, Chairman and Chief Executive Officer of Snecma René Clavaud, Chairman of Banque Populaire Centre Atlantique Jean-François Comas, Chief Executive Officer of Banque Populaire Côte d’Azur Claude Cordel, Chairman of Banque Populaire du Midi Daniel Duquesne, Chief Executive Officer of Banque Populaire Loire et Lyonnais Steve Gentili, Chairman of BRED Banque Populaire Alain Jacquier, Chairman of Banque Populaire Bourgogne Franche-Comté Jean de La Chauvinière Richard Nalpas, Chief Executive Officer of Banque Populaire Toulouse-Pyrénées Francis Thibaud, Chief Executive Officer of Banque Populaire du Sud-Ouest Jean-Louis Tourret, Chairman of Banque Populaire Provençale et Corse Robert Zolade, Chairman of H.B.M. (Holding Bercy Management) Jean-Pierre Chavaillard, representing employee-shareholders
In 1996, Committees of the Board were set up and since then, other measures have been taken, reflecting the practices recommended in the Viénot and Bouton corporate governance reports.
Now retired, he is completely independent from all financial services groups. He is Chairman of the Compensation
Officer attend meetings of the Committees. Formal minutes are produced after
The Chairman was also granted 6,000 stock options in his capacity as Chairman and Chief Executive Officer of Banque Fédérale des Banques Populaires.
Populaire Group in connection with the link-up with the Crédit Coopératif
The creation of this new structure represents an important milestone in developing a battalion of internal controllers applying the same standards and procedures across all of our businesses.
London and Dusseldorf helped to drive momentum in the acquisition financing business. Natexis Banques
As part of the international development strategy launched two years ago, in May 2003 Natexis Lease opened a new branch in Madrid.
In 2003, Natexis Factorem kept up the strategy launched the previous year to win new customers and retain existing ones.This strategy paid off in the shape of new growth drivers.
Natexis Factorem, in keeping with the policy decided by the parent company, Natexis Banques
The Credit unit expanded its trading volume on the secondary market, thanks to the increased specialization of its credit market-making and research teams.
In France, the quantitative research teams provide backing to the alternative fund sales forces in Europe and the Americas.
With a market share of 9.1% based on number of transactions (source:AMF),
During 2003, Natexis Private Equity pursued two goals: ■ In France, the company focused on the local expansion capital market, reorganizing its SPEF Développement subsidiary and launching the first two
Third party funds are invested mainly in the venture capital portfolios managed by SPEF Venture and Ventech, and in international portfolios requiring the presence of local investors.
Natexis Private Equity has strengthened its regional private equity offering by setting up a dedicated investment vehicle,
These initiatives, which involved all Financial Services staff, led to an immediate return to profit.
Specialized in trading, clearing and custody software, Slib expanded its pan-European offer by signing up major new clients.
Monaco-based Samic, specialized in off-shore services, launched a major project to prepare for the transition to Basel II and IFRS/IAS.
Populaire regional banks and external clients, and one among employees. This initiative forms part of the quality improvement strategy launched during the year.
ASSETS UNDER MANAGEMENT BY ENTITY in EUR billions at December 31, 2003
offers numerous investment solutions tailored to the needs of international clients interested in diversifying their portfolios.
Insurance entities have stepped up their joint marketing activities with the Banque Populaire regional banks.
Natexis Interépargne's leadership of the employee savings plan market. The integration of
Interépargne's commitment to helping companies reconcile their desire to offer employees attractive benefits with their need to manage their financial resources efficiently.
This represented an increase of 11.5% over the previous year, including 4.9 points attributable to organic growth and 7.4 points due to changes in structure.
Cr ed it in su ra nc e an d cr ed it m an ag em en t
We employ a total of 83 disabled people and maintain close relations with numerous training establishments, taking on around 40 young people each year under apprenticeship or qualification contracts.These figures place us high in the rankings of financial institutions in terms of our contribution to facilitating entry into professional life.
Crédit Maritime Mutuel – a bank affiliated with Banque Fédérale des Banques Populaires – and academia, as well as other specialists, the jury will present its initial selections during 2004.
if the partial impact of US dollar exchange rate fluctuations is excluded, forms part of a weighted risk management policy specifically relying on securitization and syndication transactions.
(EUR36 million); project financing (EUR31 million); aircraft, ship and rolling stock financing (EUR29 million); and financial arrangements (EUR19 million).
■ Employee savings plans In 2003, Intertitres entered the Interépargne group structure. Intertitres is active in the “luncheon, employment service, and holiday voucher” sector and offers promising commercial synergy opportunities. With over thirty million vouchers issued in 2003, Natexis Intertitres is fourth in the restaurant voucher market, with a 7% market share. Its development focuses on small businesses, backed up by the regional Banque Populaire banks network.
The “Losses on premiums” ratio was 40% at the end of 2003, compared to 70.9% at the end of 2002. Excluding the impact of harmonizing the provisioning calculation methods, it would have stood at 52.2%.
Brokerage fees and business provider commissions increased over the period to EUR73 million (up 19%), demonstrating the group’s commercial drive to boost revenues.
Non-divisional NBI stood at EUR92 million compared to - EUR54 million in 2002, for an increase of EUR146 million.
The increase in personnel costs (+ 5.2%) is due to: ■ the carry-forward effect of the increase in employee numbers and salary measures taken in 2002 and 2003; charges resulting from an adjustment to employee-related liabilities; the impact of group structure changes (Intertitres, E.Market, Private Equity divisions and Coface/CNA, Gerling and Kompass), and the increase in charges relating to profit-sharing and incentives; ■ partially offset by the reduction in the average number of employees and variable compensation components.
Finally, provisions for industry and country risks were increased by EUR90 million to take into account potential unknown risks for major European financial market dossiers.
There was a significant yet atypical loss for Banking, Financial and Technology Services in 2002 related to the activity of
This strengthening has led to the introduction of new quantitative and qualitative limits.
■ EUR0.4875 million to EUR0.975 million for a 1% change in foreign exchange volatility.
The global indicators are accompanied by more precise indicators by underlying, maturity and strike price.
Aside from securitization transactions, Natexis Banques Populaires portfolio credit derivatives are of little significance (on the order of EUR100 million in hedge purchases as in hedge sales at the end of December 2003). As to the Natexis Arbitrage division, its credit and convertible bond activity was hedged by purchases of approximately EUR300 million.
Fi na nc ia l i nf or m at io n M
General provisions were increased by EUR90 million for the major European financial market dossiers and country provisions were maintained, excluding foreign exchange, at the December 31, 2002 level.
an ag em en t r ep or t thefundamental conventions of the International Labor Organization Sub-contracting can concern activities that are not specific to banking.
The Company has forged privileged relations with a number of apprentice schools enabling the placement of young people through apprenticeship contracts at the baccalaureate +2 to +5 level.
Customer deposits 12 29,389 22,820 14,264 of which institutional activities 1,137 106 36
Securities held for sale - net of provisions 11 6 0 Non-performing securities - gross 19 26 37 Provisions for non-performing securities (14) (24) (37)
Fi na nc ia l i nf or m at io n Co ns ol id at ed fi na nc ia l s ta te m en ts 7 – Investments in affiliates and associated undertakings and other securities held for investment in EUR millions 2003 2002 2001
Fi na nc ia l i nf or m at io n Co ns ol id at ed fi na nc ia l s ta te m en ts in EUR millions 2002 Additions Disposals Changes in Other 2003 group structure
Transactions traded over-the-counter 681,804 563,322 544,708 Transactions on organized or equivalent markets 123,327 80,528 47,993 805,131 643,850 592,701 Type of market
Deferred income, accrued charges and other liabilities 98 108 106 in EUR millions 2003 2002 2001
December 31, 2003 Less than 3 months 1 to More than Perpetual Total in EUR millions 3 months to 1 year 5 years 5 years
CREDITORS GROUP LTD Information and debt management services 100 98 100 98 (2) (2)
NATEXIS BLEICHROEDER INC Investment company 100 100 100 100 - -
NATEXIS IMMO DEVELOPPEMENT Real estate (formerly SOFEP) construction and renovation company 100 100 100 100 100 100
SUD EST CROISSANCE Private equity (18) (18) 25 25 25 25 * Consolidated on a proportional basis.
With Banque Fédérale des Banques Populaires, a Company shareholder Nature and purpose
Commitments given in favor of financial institutions 2,330 3,619 3,507 Commitments given in favor of customers 18,814 16,999 15,710 of which institutional activities 16 - - 13
Commitments given on behalf of financial institutions 1,344 1,859 1,465 Commitments given on behalf of customers 15,284 13,810 14,133 of which institutional activities 16 5 9 28
In 1991 and 1992, sovereign risks in respect of former BFCE assets were subject to a number of adjustments. These fell into two categories, defeasance-based (removal from the balance sheet) and put option-based. Accordingly, two structures were set up, Edval for the defeasance operation and Worledge for the put option, and consolidated for the first time as of December 31, 2002. The consolidation of these companies, pursuant to Section 10052 of CRC Regulation No. 99-07 on special-purpose entities, required a review of the level of provisions covering loans at risk underlying the put option.
1.4 – Receivables, payables and off-balance sheet commitments denominated in a foreign currency Receivables, payables and off-balance sheet commitment denominated in a foreign currency are translated into euro at exchange rates prevailing at the year-end. Resulting unrealized exchange gains or losses are taken directly to income.
■ Equity securities held for investment are securities acquired in an entity which is to be managed with the aim of increasing its value and obtaining the highest possible capital gain in the long term. Where necessary, a provision is raised to ensure that the net value does not exceed the estimated current value (recent transaction value, value based on profitability, market value for listed securities or other valuation method used at the time of acquisition).
These transactions are performed for one of four purposes: – micro-hedging (transaction-specific); – macro-hedging (overall balance sheet management); – speculative position-taking; – specialized management of a trading portfolio.
1.15 – Corporate income The current tax charge corresponds to the taxes payable in France, at a rate of 35.43%, and at the local prevailing rate for foreign branches.
Application of this new regulation did not impact the financial statements for the year ended December 31, 2002 or the amount of provisions for contingencies and losses recorded in the 2002 opening balance sheet.
Loans and advances to banks 48,331 41,718 21,666 of which accrued interest receivable 3 3 3 of which non-performing loans 1 1 2 of which provisions for loan losses - - (2)
Non-operating property and equipment 4 0 (1) 0 3 Non-operating land and buildings 4 - (1) - 3 Other non-operating property and equipment - - - - -
At January 1, 2003 759 1,746 43 141 140 11 1 2,841 Appropriation of 2002 income - - 10 125 - - 71 206 Dividends paid in 2003 - - - - - - (71) (71) Contribution of Crédifrance Factor securities 4 15 - - - - 19 Contribution of Sopromec securities 6 25 - - - - 31 Deduction for changes in accounting methods - - - - - - (10) (10)
(1) Ancillary income was recorded under Other net banking income in 2001
On country risks: 2 34 1 Charges to provisions (12) (37) (105) Reversals from provisions 17 71 106 Losses covered (3) - Losses not covered - - Recoveries on debts already provided - - -
Losses Investments in affiliates and other securities held for investment (9) (26) (25) Debt securities held for investment (14) - (5)
Guarantee commitments received from 3,783 4,863 4,441 Financial institutions 1,692 1,771 645
Income after tax, but before depreciation, amortization and provisions 3.49 (3.10) 6.19 6.62 5.06
The special committees receive, in line with their needs, assistance from department heads able to help them in their work: the Inspector General, Financial Director, Risk Director, Statutory Auditors and, where necessary, any other manager able to provide the desired technical information. Neither the Chairman nor the Chief Executive Officer attends committee meetings. Formal written minutes are kept of committee discussions, and the committee chairmen present a summary report on their work and conclusions to the Board of Directors.
1.5 – Board of Directors’ Internal Regulations and Directors’ Charter The Board of Directors approved the terms and conditions of Internal Regulations governing its activities and a Directors’ Charter in March 2001.
2.1 – General organization The internal control system of Natexis Banques Populaires is organized from the lowest to the highest operational or functional rung. The Chief Executive Officer, in agreement with the Chairman, defines the organizational structure. He is responsible for the optimum allocation of responsibilities and resources to ensure, in accordance with the strategies defined by the bank’s Board of Directors, the coverage, full assessment and management of risk.
The Board of Directors, which naturally discusses all subjects concerning the strategy and operation of the Company, is the deliberating body that oversees the management of the main risks to which the institution is exposed and ensures the quality and reliability of the internal control system, in accordance with prudential regulations. Accordingly, the Board takes due note of the internal control report and sets the overall limits for capital market risk.
2.2 – Risk monitoring and management policy Natexis Banques Populaires is exposed to 4 categories of risk: ■ credit risks; ■ capital market activity risks; ■ overall interest rate, foreign exchange and liquidity risks; ■ operating risks.
Quantitative monitoring of commitments is carried out via procedures for measuring overruns (ad hoc committees).
The most significant commitments, at the Natexis Banques Populaires level, are monitored by group of counterparties. Such groupings are integrated within the bank reference base.The risk checking system (SI-Risques) can consolidate the counterparty risks for all the major Natexis Banques Populaires subsidiaries. Accordingly, Natexis Banques Populaires possesses the main elements enabling it to consolidate risks or on a daily basis or according to significant dates. In addition to the analyses conducted by Natexis Banques Populaires, there are those performed by Banque Fédérale des Banques Populaires, particularly for meetings of the Group Risk and Audit Committee.
The entities bearing risks for own account trading are the Natexis Banques Populaires Capital Markets division, Natexis Arbitrage, Natexis Bleichroeder Inc., Natexis Bleichroeder SA, Natexis Metals and ABM Corp.
Shareholders confer full powers on the Board of Directors to designate the option beneficiaries, set the terms and conditions for additional option allocation and exercise in accordance with the principles set out above, and perform all formalities for the common stock issue arising from the exercise of these options.
Shareholders, having familiarized themselves with the Board of Directors’ report and the Auditors’ Special Report confer on the Board of Directors full powers to decrease the common stock, on one or more occasions and in the amounts and at the times decided by it, by canceling any portion of the treasury shares as provided for by the law
and in accordance with Articles L225-209 and seq. of the French Commercial Code.
Options available for exercise from 09/22/2004(*) 11/25/2005 09/20/2005 09/11/2006 09/11/2007 Number of options exercised 0 0 0 0 0
Shares issued in contribution for Sopromec Participations securities 336,647 5,386,352 25,248,563.45
Treasury shares Under the share buy-back program authorized by the Annual General Meeting of May 22, 2003, Natexis Banques Populaires held, as of December 31, 2003, 1,470,103 of its own shares (stripped of voting rights), representing 3.06% of the common stock.
The Natexis Banques Populaires Combined General Meeting held on May 22, 2003 approved all provisions of the aforementioned transfer.The transfer will be performed on May 22 with retroactive effect from January 1, 2003. The Banque du Dôme-Crédifrance Factor shares transferred, valued at EUR18,140,419, will be remunerated via the issue of 218,559 new Natexis Banques Populaires shares at a unit price of EUR 83.
SERVICES Banking, Financial and Technology Services 50 Asset Management and Insurance 54
ac ke d se cu ri ti e s an d c o rp o ra te b o n d s.
Jean-Jacques Bonnaud, Chairman of GALAXY FUND Member - Date first appointed: 17 October 2003
These meetings primarily examined: the 2002 annual financial statements and 2003 interim financial statements; I the reports to the Supervisory Board on risk monitoring and internal control, together with the report to the AMF (the French stock-market regulator and successor to the CMF) on the control exercised over investment services supplied by the Company; the projects undertaken during the year; I the Basle II and IAS projects (Risk Control,
The Supervisory Board is assisted in its duties by two specialised committees set up in 1998, namely the Financial and Internal Control Committee and the Remuneration Committee.
I Erecting “Chinese Walls” in order to prevent confidential information circulating between departments, activities or entities, and to avert potential conflicts of interest.
Reports used by operational departments These reports notably focus on: I ensuring operational limits are being respected
The Central Accounting function reports to the General Secretary, who is a member of the Executive Board. It is organised into four main segments: I production of financial statements, consolidation reports and all regulatory reports, I accounting processing of non-operational activities, I accounting control, I accounting standards, procedures and systems
The Executive Board presents the Supervisory Board with a report on the Company’s activity at least once per quarter. It also presents annual parent company and consolidated accounts no later than three months after each financial-year end.
CDC IXIS CAPITAL MARKETS TOKYO BRANCH PricewaterhouseCoopers Compulsory auditing of period–end accounts 23,109 23,413
Regulatory control and internal control of accounting procedures 19,832 Special assignment – tax services 11,688 21,283
Special assignment – tax and legal services 17,462 18,000 Cabinet Touber Compulsory auditing of period–end accounts 20,691 22,000
Private bonds fared well, largely thanks to the plunge in corporate defaults. Linked bonds were much in demand, partly due to uncertainties over future inflation.
Our arbitrage and structured-product business posted excellent results and robust volume growth in attractive conditions. From a qualitative standpoint, we broadened our product range in 2003, especially in Collateralised Debt Obligations (CDOs) and products structured on Asset Backed Securities (ABS), and enhanced our risk management capacity by recruiting several quantitative finance specialists. These developments enabled CDC IXIS Capital
The Research unit also takes an active role in developing CDC IXIS Capital Markets’ commercial relations, notably by delivering regular economic news presentations for clients and taking part in major events organised for domestic and international clients.
Two new indicators were provided for clients in 2003: the Eurozone GDP Leading Indicator which projects eurozone GDP for the current and following quarters, and the Monetary and Financial Conditions Index (MFCI), which calculates and highlights the direction of monetary policy in the main economic blocks (the eurozone, the US and Japan).
On the asset side, the variation stemmed principally from the rise in other assets, this being linked to transactions on financial instruments (option premiums, margin calls and deposit guarantees) and from the increase in the trading securities portfolio, which now accounts for 78% of the overall securities portfolio.
LIABILITIES Borrowings and money market 61.3 54.2 7.1 13.1 Securities sold under repo 22.8 30.8 (8.0) -26.0
In addition, the main stress tests carried out on positions as of 31 December 2003 yielded the following data concerning the impact on the profit & loss account in absolute value terms: - Fixed Income and Foreign Exchange: Variation of interest rates (+100bps): €79.m Variation of volatility (homothety of +50%): €3.8m Paper/swap spreads (+20bps): €110.3m (+35bps on AA and above; +90bps elsewhere)
- Equities: Variation of indices/equities (+25%): €16.1m Variation of index/equity volatility: €52.1m (+20% for ST, +10% for LT)
The reliability of the VaR indicator is measured regularly by comparing it with daily trading results in order to match the potential loss predicted by the VaR indicator with the profit or loss effectively realised.
CDC IXIS Capital Markets is highly demanding as to the quality of issuers in its portfolio and its derivatives counterparties. As at 31 December 2003, 89% of marked-to-market (MtM) exposure concerned signatures rated AAA to A and 97% of signatures were rated investment grade or above. 86% of these signatures were concentrated in the European Economic Area, while in addition, most transactions with North American counterparties were carried out by CDC IXIS Capital Markets North America, a subsidiary of CDC IXIS.
The charts opposite show the breakdown of overall MtM exposure by (i) credit rating, (ii) sector and (iii) geographic region.
I by using a predictive equity allocation derived from a scoring procedure for the different business lines. The resulting allocations are adjusted over time according to the effectiveness of the action plans.
Implementing the first action plans and defining risk indicators In addition to regulatory aspects (i.e. calculating equity capital), the project underway within CDC IXIS Capital Markets is geared to achieving the managerial objectives drawn up by CDC IXIS’s Risk Department, and in particular: I facilitating control of operational risks, by drawing up action plans aimed at reducing the incidence of factors liable to cause risks (preventative action plans) and, where applicable, diminishing the impact of risks (corrective action plans),
Forms of civil liability other than professional civil liability are also covered by insurance policies corresponding to operating needs. Examples of such types of liability concern operations (bodily, material or immaterial damage caused to third parties), Company directors (the financial consequences of
Back-office control The back office was subject to in-depth controls designed to ensure organisation, processes and tools were compatible with the growth and complexity of the business being handled.
Les ressources employees’ capacity to save. A new contractual profit-sharing scheme was concluded for a period of three years.
The day-to-day efforts of the IT Systems Security unit ensured IT security was consistent with the demands of CDC IXIS Capital Markets’ business. Efforts in 2004 will focus on furthering work on the Disaster Recovery Plan (incorporating business-line reorganisations, telecoms assistance, return-to-normal procedures etc.) and enhancing the reliability of the system for managing IT systems access.
CDC IXIS Capital Markets will continue its policy of controlled expansion as a multi-specialist in a selection of high value-added businesses.
CDC IXIS FINANCIAL GUARANTY SA F CDC IXIS Financial Guaranty Holding’s permanent representative on the Supervisory Board (since 16 September 2003; previously Censor)
CIF EUROMORTGAGE SA F Member of Supervisory Board (resigned 8 September 2003) ECUREUIL GESTION SA F CDC Finance-CDC IXIS’s permanent representative on the Supervisory Board
(since 17 July 2003) GIMAR FINANCE SCA F CDC IXIS Capital Markets’ permanent representative on the Supervisory Board SAN PAOLO IMI SpA ITA Member of Board of Directors (since 12 September 2003)
CAISSE NATIONALE DES CAISSES D’EPARGNE SA F Member of Executive Board; Head of Finance and Risks ET DE PREVOYANCE (since 15 December 2003; previously Member of Supervisory Board)
CAISSE NATIONALE DES CAISSES D’EPARGNE ET DE PRÉVOYANCE SA F Vice-Chairman of Supervisory Board (since 15 December 2003)
CASINO GUICHARD PERRACHON (listed) SA F Member of Board of Directors (since 4 September 2003; previously Member of Supervisory Board from 27 May 2003 to 4 September 2003)
(mandate ended 17 July 2003) SPID SA F CDC Finance-CDC IXIS’s permanent representative on the Board of Directors
2003 Mr Philippe WAHL (no longer a director of CDC IXIS Capital Markets since 5 September 2003)
+ Interest and equivalent income on customer transactions 16 208 160 214
In accordance with the measures pertaining to special purpose vehicles defined in regulation CRC 99-07, the Clea 2 and Pangaea entities have been fully consolidated in CDC IXIS Capital Markets’ consolidated accounts since 31 December 2002. The consolidation of these two entities has no significant impact on the consolidated accounts.
The provisions of CRC regulation n° 2002-03 concerning the accounting treatment of credit risk (see 3.10 below), apply to fixed-income investment and marketable securities which notably entail a commitment by the issuer to pay a sum on a pre-determined maturity date.
Fixed-income securities Fixed-income securities are stated at cost, excluding accrued interest. The difference between the cost and redemption value is amortised using the straight-line method over the residual life of the security. At periodend, the securities are valued at their closing price. A provision for depreciation is booked in the event that the market value of a group of securities sharing similar characteristics is lower than the purchase price adjusted by the apportionment of premiums or discounts.
Commissions that are not deemed to be equivalent to interest and which relate to services are recorded on the service provision date.
(1) Including €1,743.88 million of public securities and equivalents as at 31/12/03.
Accrued expenses and marked-to-market adjustments of futures and options 3,687.36 2,745.31
Gain or loss on divestment of long-term equity investments 4.50 (0.08)
Marketable securities The portfolio of marketable securities includes fixed and variable-income securities acquired with the intention of being held long term as a source of revenue or capital gain. Trading securities that are held for over six months and are subsequently reclassified also fall within this category. In this case, restatement is performed at the market price on the transfer date.
2.7 Complex transactions Complex transactions involve combinations of instruments (of identical or different type, nature and valuation methods), that are recorded in a single batch or as a transaction whose accounting treatment is not subject to specific regulations.
Funds for Capital (1) Share Retained Legal Other Interim Profit Equity Total general premium earnings reserve reserves dividends (excl. FGBR) shareholders’
The Company’s purpose is to carry out for its own account and on behalf of its national and international clients: I receipt of funds in connection with its role as a provider of investment services; I issuance of guarantees, endorsements or independent commitments, including guarantees issued for mutual funds and securitised loan funds or for holders of units in such funds, in relation to the provision of investment or financial engineering services, together with the issuance of guarantees for placements, issues of securities or transactions on financial instruments; I all interbank and foreign exchange transactions; I the issuance of loans or the purchase or sale of debt in the course of its intermediation activities, notably for credit derivatives, securitisation and capital market debt transactions, including those involving clients and all operations required for its activity as clearer in forward markets; I provision of all primary and ancillary investment services on regulated and over-the-counter markets relating to French or foreign financial instruments, and in particular: - receipt and transmission of orders on behalf of third parties, - order execution for third parties, - trading for its own account, - portfolio management for third parties and the provision of management advice concerning financial instruments, - issue underwriting or placement, or in relation to financial transactions, the provision of placement guarantees and all services linked to placement and underwriting; I custody and administration services for financial instruments; I issuance of marketable securities, negotiable debt instruments and all other financial instruments; I provision of advice to companies concerning their capital structure, industrial strategy and related issues, together with mergers and acquisitions services; I compiling, distribution and marketing of all varieties of reports in all formats, covering technical considerations, research, analysis and information systems in the financial and economic sector; I acquisition of holdings in any existing or future French or foreign company, whose activities are related directly or indirectly to the Company’s purpose; I and generally, undertaking all commercial, financial or administrative transactions which may be related directly or indirectly to the Company’s purpose, in order to promote the expansion and development of the Company.
1.7. Statutory allocation of profit A sum equivalent to 5% of the year’s net profit, less any previous losses, is deducted and assigned to the legal reserve. This practice ceases to be compulsory when the reserve reaches a level equivalent to one-tenth of the Company’s registered capital; the practice is resumed when the legal reserve falls below this level.
Meetings take place in the Company’s registered office or in any other location stipulated in the documents serving notice of the meeting.