Natexis Banques Populaires' Net Banking Income was weakened by the problems encountered by the Investment Banking business.
Through a single and clearly identifiable point of access, Natexis Banques Populaires offers clients a full array of solutions covering both daily banking transactions and more complex needs, such as equity financing, structured finance, securities services and employee savings solutions.
Lastly, the partnership agreement signed in 2001 between the Banque Populaire Group and DZ
A training drive is currently in process at all levels of the Bank to prepare employees for the changing environment. Major steps have also been taken to adapt middle management both to growing technical demands and the arrival of young hires.
In 2002,Coface had revenues of EUR973 million and Net income of EUR18.8 million. During the year, the company launched an ambitious corporate project. Dubbed New Impulse, the project has far reaching aims.These include reining in costs, improving international integration, reorganizing the product and service offer, strengthening risk management and enhancing the service offered to the company's 83,000 clients worldwide.
financing market, serving substantially all major French companies as well as banks and other financial institutions. It ranks among the top lenders to large and medium-sized companies in France, and is also one of the leading factors.
For instance, more cross-business links have been woven, to ensure greater consistency and efficiency with the underlying objective of attracting new clients and fostering client loyalty.
In 2003, Natexis Factorem will continue to build synergies with the Banque Populaire Group.
Agent for the Ile de France Regional Goverment commercial paper program, the first of its kind by a French local authority.
Capital Markets business line. Through the acquisition, Natexis Banques Populaires can now sell equity products across the globe. On the primary markets, the Bank has become a genuine contender for the position of lead manager and has
In 2002, Natexis Bleichroeder's role as global coordinator and leader manager of the Marionnaud
Natexis Private Equity, provides financing at each stage of a company’s development, from seed capital to mezzanine finance, bringing it to the point where it is ready to launch an
Despite the weak stock markets, assets under management climbed to EUR72.5 billion from
The offering for each client population has been fine-tuned. Inter-business unit synergies have also been implemented, especially in the areas of socially responsible funds, multi-manager funds, alternative funds and private asset management.
Group’s ambition to become a recognized player in the bancassurance sector.
Natexis Banques Populaires entities adopt a consistent approach to addressing operational risk, in order to properly assess each information system’s level of exposure, and put in place the requisite security measures.
Périgord Noir Festival created other opportunities for young musicians to perform at prestigious events in the classical music calendar.
sustainable development opportunity for management and shareholders to come together and exchange views. It was preceded by a broad-based consultation process to identify the topics of particular interest to shareholders, including risk management, sustainable development and corporate governance. Webcasts of the General Meeting could be viewed for several weeks afterwards.
The Board comprises 15 directors (including one director representing employee shareholders) and a censor. The Chief Executive Officer of the Company is not a director.
Richard Nalpas AGM of 2003 Director CEO of Banque 05/23/02 Populaire Toulouse-Pyrénées
Permanent Representative of the Banque Populaire Group, Director of: IRDI SA
Banque Fédérale des Banques Populaires, represented by Paul Loriot followed by Christian Hébrard 10,065
■ The Financial services sector is closely linked to the stock market. As such, the fall recorded in 2002 is relatively limited: activity NBI is EUR172 million, down only 7% on 2001.
Asset Management and Insurance activities reported income of EUR84 million (EUR96 million in 2001), despite the unfavorable economic climate for these businesses. Expenses in 2002 include the regrouping of various entities of this division at the “Rives de Seine” site.
77Breakdown of Corporate and International Banking loan outstandings by economic sector
Reverse repurchase agreements, which primarily concern government securities, increased substantially to EUR27.7 billion following the significant development of this activity created in 2001.
Selective waste sorting was introduced in 2002 at Rives de Seine (new Paris site).
Special-purpose entities: special-purpose entities encompass three types of transaction: A – Securitization Since 2000, Natexis Banques Populaires has performed four synthetic securitization transactions on its own account, the principle behind which is described in note 2.3.
Of the three criteria used to assess control of the vehicle, the sole determinant criteria is the “majority of risks” criteria: Initially, NBP intends to syndicate the majority of risks within one year; once in full development, the syndication of over 50% of liquidity lines and the letter of credit shall be effective at all times. Under these conditions, the vehicle is excluded from the scope of consolidation.
Article 84 of the 2001 amended Finance Act (No. 20011276 of December 28, 2001) extends until December 31, 2005, the mandate entrusted to Natexis Banques Populaires and companies under its control to manage, on behalf of the State, certain fund-raising and other institutional activities relating to the public purse. Transactions performed pursuant to this mandate are recorded separately in the accounts and certain of them may be guaranteed by the State. These arrangements constitute the net assets of Natexis Banques Populaires that are allocated to institutional activities relating to the public purse, to which the State and other related creditors are specifically entitled.
Goodwill is revalued periodically in order to revise,where necessary, the amortization schedule.
1.6 – Foreign currency translation The balance sheets of foreign subsidiaries and branches are translated into euro at year-end rates of exchange (as published by the Banque de France) except for capital, reserves and charges to capital which are translated at historical rates.The resulting translation gains or losses are taken directly to shareholders’ equity.
Items specific to insurance activities are grouped together in the following headings: ■ insurance company investment portfolios in assets and insurance company technical reserves in liabilities, ■ “gross margin on insurance operations” in the income statement.
Non-operating property and equipment and intangible assets Non-operating property and equipment and intangible assets are depreciated over their estimated useful lives (30 to 40 years).
The net deferred tax balance is recorded within Accrued income, prepaid expenses and other assets.
Lease financing and operating leases 5,482 5,267 5,119 Accrued interest receivable 98 113 62 Provisions for loan losses (176) (176) (163)
4.1 – Other loans to customers in EUR millions 2002 2001 2000
Non-performing loans and advances to banks 90 79 95 Provisions for loan losses against non-performing loans and advances to banks (62) (55) (59) Non-performing customer loans 1,176 1,173 1,121 Provisions for loan losses against non-performing customer loans (663) (686) (643) Non-performing lease financing 280 236 266 Provisions for loan losses against non-performing lease financing (176) (176) (163)
(3) Of which: listed 5,451 7,231 7,628 transferred to/from securities held for sale (18) (1,678) subordinated - 5 201 issued by public institutions 742 776 617 doubtful securities 92 106 53 provisions (50) (48) (26) disposals before maturity (1,104) (1,346) -
As of December 31, 2002, reinsurers’ shares of technical reserves were transferred from Insurance company investment portfolios to Accrued income, prepaid expenses and other assets, while amounts receivable on deposits with grantor companies were transferred from Accrued income, prepaid expenses and other assets to Insurance company investment portfolios.The account balances as of December 31, 2000 and December 31, 2001 were adjusted accordingly for this reclassification to enable year-on-year comparison, in the amount of EUR2,291 million and EUR2,258 million for fiscal years 2001 and 2000 respectively.
Real-estate activities 0 0 4 Europolis invest Holding - - 4 of which Share in net income/(loss) - - 1
Assets leased out under non-financial operating leases 256 - (30) - - 226
Other operating property and equipment (120) (32) 17 (72) 5 (202)
As of December 31, 2002, reinsurers’ shares of technical reserves were transferred from Insurance company investment portfolios to Accrued income, prepaid expenses and other assets, while amounts receivable on deposits with grantor companies were transferred from Accrued income, prepaid expenses and other assets to Insurance company investment portfolios. The account balances as of December 31, 2000 and December 31, 2001 were adjusted accordingly for this reclassification to enable year-on-year comparison, in the amount of EUR2,291 million and EUR2,258 million for fiscal years 2001 and 2000 respectively.
(3) Change in method regarding the amortization of the difference 1 between the purchase and redemption price of inflation-indexed bonds
Net fee and commission income 499 549 586 25 – Net gains/(losses) on trading account securities in EUR millions 2002 2001 2000
Net gains/(losses) on disposals of fixed assets 2 - - - (1) -
BANQUE POPULAIRE ASSET MANAGEMENT (2) Management of Collective Savings Schemes 100 100 70 70 70 70
COFACE INTERCREDIT CZECHIA Information and debt management services 97 71 (5) (5) (5) (5)
COFACERATING.AT Information and debt management services 100 92 (5) (5) (5) (5)
COFACERATING.COM Information and debt management services 100 98 (5) (5) (5) (5)
NATEXIS ALGERIE (formerly AL AMANA BANQUE) Bank 100 100 100 100 100 98
TURBO S.A. Commercialization of Turbo software (1) (1) (1) (1) 51 51
39 – Comparative consolidated financial statements excluding the impact of full consolidation of Coface
Net gains/(losses) on debt securities held for investment - - -
Depreciation, amortization and provisions for impairment of property and equipment and intangible assets (29) (24) (29)
All shareholders may vote by correspondence using a voting form addressed to the Company in accordance with applicable law and regulations.
First resolution: approval of the financial statements Overview: This resolution asks shareholders to approve the financial statements for fiscal year 2002.
– to the legal reserve in the amount of EUR10,301,863.30 leaving distributable earnings of EUR196,891,282.83
Pursuant to Articles 225-209 to 225-212 of the French Commercial Code, and after having heard the Board of Directors’ report and the prospectus approved by the Commission des Opérations de Bourse, shareholders hereby authorize the Board of Directors and Executive Management to buy shares representing a maximum of 5% of the capital stock, or currently 2,372,141 shares.
Decide to cancel shareholder preferential subscription rights to the shares issued as a result of the conversion or redemption of bonds or the exercise of warrants.
Fiscal year The fiscal year runs from January 1 through December 31.
The Extraordinary Shareholders’ Meeting of May 31, 2001 authorized the Board of Directors to increase the capital stock over a period of five years, on one or more occasions, up to a maximum of 2,500,000 shares, by way
(4) of which 1,321,486 shares subscriptions to ESOPs 258,527 shares conversion of perpetual subordinated securities convertible into shares 12,000 shares exercise of stock subscription options 2,947 shares conversion of bonds convertible into shares
After the transfer of its operating activities in July 1999 to Natexis S.A., the CCBP became the Banque Fédérale des Banques Populaires (BFBP).
Natexis Asset Square 68-76, quai de la Rapée – 75606 Paris Cedex 12 www.assetsquare.fr
Natexis Assurances 68-76, quai de la Rapée – 75606 Paris Cedex 12
Natexis Investissement 5-7, rue de Monttessuy – 75340 Paris Cedex 07 www.natexis-investissement.com
New address, as of 30 June 2003: 47, quai d’Austerlitz – 75648 Paris Cedex 13
In view of this prospect, the ratings agency Standard & Poor’s marked CDC IXIS Capital Markets’ long-term credit rating with a negativ outlook, whereas the other agencies made no change to their existing ratings.
Banque et Caisse d'Epargne de l'Etat, Luxembourg**, (appointed 3 November 1998) Represented by Raymond Kirsch Chairman of BCEEL
CDC IXIS CAPITAL MARKETS – LONDON BRANCH PricewaterhouseCoopers Compulsory auditing of period-end accounts 39 932 38 397
Elected “Deal of the Year” by PFI magazine. CDC IXIS Capital Markets selected as sole lead manager for the issue of bonds for France’s A28 motorway.
Client-driven expertise The macroeconomic and financial research team headed by Patrick Artus continued its client-driven analysis and evaluation of financial markets during the year. The range of publications is primarily distributed in hardcopy form to CDC IXIS Capital Markets’ domestic and international clients and can also be consulted on the Group’s website.
Compiling investment strategies Our market research activities focus on providing advice and analysis on investment and arbitrage strategy in interest-rate markets. To do this, we use economic and financial scenarios established by country specialists as well as relative value analysis. The results primarily concern money markets, government bonds, swaps and foreign exchange, the aim being to facilitate arbitrage and thereby enhance profitability (derivatives and structured products). ■
Market risks 10-day VaR averaged €87m for fixed income and foreign exchange, and €67m for equity trading.
The Internal Control function reports directly to the Chairman of the Executive Board and its remit covers three objectives, namely to: •ensure that risk management, control and compliance processes are reliable; •ensure new products are developed in a secure manner; •verify on a regular basis the state of progress as regards the implementation of issued recommendations and their concrete translation in working practices.
During 2002, Internal Control focused its efforts on preventing operational risks, containing market risks within business lines and branches (especially for recent or fast-changing activities), and specifically analysing certain complex cross-departmental processes (e.g. the calculation agent function for structured issues, forex positions).
As at 31 December 2002, CDC IXIS Capital Markets and its subsidiary, CDC IXIS Securities, employed 933 staff on permanent contracts, versus 829 a year earlier. IT and back-office staff employed on permanent contracts by structures not included in the scope of consolidation amounted to 267 at the end of 2002, versus 254 a year earlier.
During the course of the year, the Paris-based consolidated workforce rose 13.3%, from 692 to 777. On a same-structure basis, the workforce in the branches was unchanged. Note, however, that the reorganisation of CDC IXIS and CDC IXIS Capital Markets’ Frankfurt operations led to a 16-person increase in staff at CDC IXIS Capital Market’s Frankfurt branch (primarily through the integration of accounting and risk control teams).
Two significant agreements were signed in 2002, one concerning contractual profit sharing and the other regulatory profit sharing signed for the whole of the CDC IXIS Group. ■
NUMBER % % OF VOTING NUMBER % % OF VOTING NUMBER % % OF VOTING OF SHARES OF CAPITAL RIGHTS OF SHARES OF CAPITAL RIGHTS OF SHARES OF CAPITAL RIGHTS
CDC IXIS CAPITAL MARKETS SA F Member of Executive Board; Joint Head of Front Office CDC IXIS SECURITIES SA F Chairman of Executive Board CDC IXIS LCF ROTHSCHILD MIDCAPS SA F Permanent representative of CDC IXIS Securities on the Supervisory Board FILINKS SAS F Member of Supervisory Committee
CDC IXIS ITALIA HOLDING SA F Permanent representative of CDC Finance-CDC IXIS on the Supervisory Board
CDC HOLDING FINANCE (EX-SODEVE) SA F Member of Board of Directors (resigned 21 January 2002)
Director’s fees received in 2002 in exchange for responsibilities exercised within CDC IXIS Capital Markets: €3,200 2002 MR DANIEL LEBEGUE
CREDIT FONCIER DE FRANCE (listed) SA F Member of Supervisory Board (resigned 28 January 2002) GROUPE GERER SA F Permanent representative of CNCEP
ALLIANCE ENTREPRENDRE SA F Permanent representative of Ecureuil Participations on the Board of Directors
CNP ASSURANCES (listed) SA F Member of Supervisory Board COMPAGNIE FINANCIERE EULIA SA F Member of Board of Directors (since January 2002)
In the absence of a specific accounting text, credit derivatives have been accounted for by analogy with the transactions with which they share similar risk characteristics (options, swaps and securities) and based on management intention: •Transactions carried out for hedging purposes are valued in the same way as the hedged item; •The results of isolated open position transactions which are executed in the context of a long-term holding, are valued pro-rata temporis with provision for possible unrealised losses. In the case of operations deemed equivalent to options, possible provisions for unrealised losses are determined with respect to the non-apportioned premium amount.
Trading Marketable Investment Total Trading Marketable Investment Total securities securities securities securities securities securities
Note 7 Fixed assets €m Book value Advances Provisions Total of securities
Forward currency transactions Euros to be received against non-euro currencies to be delivered - euros to be received 57,789 51,045 - non-euro currencies to be delivered 55,195 52,688
Derivatives transactions concluded with the parent company primarily result from the mirror operations undertaken when CDC IXIS Capital Markets was created, bearing in mind that CDC continues to act as an interface with the original clients. Insofar as similar relations are being gradually established with CDC IXIS, the above figures also take into account the profit from transactions with CDC IXIS as from 2000 (private-sector activities transfered into a separate subsidiary).
DEBTS REPRESENTED BY SECURITIES Interest-bearing notes Interbank market securities and negotiable debt instruments 11,041 10,737 8,016
- Interest and equivalent expenses on customer transactions (76) (100) (44)
Forward currency transactions undertaken for purposes other than hedging are valued at the forward rate corresponding to the residual term.
2.2 Bank receivables and debts Receivables and debts include current accounts, loans, borrowings and securities purchased and sold under resale or repurchase agreements.
Swapswire 0.43 - - 0.43 NS NS NS ID number: 4027741 35 Basinghall Street, London EC2V 5DB
Fund Capital Share Retained Legal Other Interim Profit Equity Total for general (1) premium earnings reserve reserves dividends attributable consolidated banking account to group equity €m risks (excl. FGBR)
2001 dividend in respect of 2000 profit (55.60) Other variations 0.15 (94.00)