Crédit Mutuel Group - 2018 Activity Report CORPORATE AND INVESTMENT BANKING LARGE CORPORATES All in all, the external funding raised on the markets by IN € MILLIONS AND STRUCTURED FINANCING Crédit Mutuel Alliance Fédérale’s group treasury through BFCM and its Crédit Mutuel-CIC Home Loan SFH subsidiary totaled NET BANKING comprise banking and related services provided to large corporates €138 billion at the end of December 2018, a rise of 4.5% on (major accounts) with annual revenue of more than €50 million the previous year. INCOME: 1,074 and to institutional clients.Investment banking covers capital markets, merchant banking,In 2018, the European Investment Bank (EIB) awarded BFCM aNO. 1 FRENCH BANK GROSS OPERATING venture capital, private equity, brokerage and mergers and new €250 million loan package for SMEs and intermediate-sizedFOR PRIVATE EQUITY acquisitions. enterprises, which can be drawn down in two tranches. INCOME: 694 The fi rst €150 million tranche was fully drawn down in the As the leading French bank-owned private Corporate banking, capital markets and investment banking 4th quarter of 2018 for a term of 5 years. The drawdown of equity operator, CM-CIC Investissement is activities are carried out by Banque Fédérative du Crédit Mutuel the second tranche is expectedin the fi rst half of 2019. Crédit Mutuel Alliance Fédérale’s vehicle for NET PROFIT (BFCM), the holding company of Crédit Mutuel Centre Est Europe, equity investment in business. It has a €2.5 billion ATTRIBUTABLE TO and by the Crédit Mutuel Arkéa group. In addition, a new partnership agreement was signed with equity portfolio invested in over 350 investments. the EIB at the end of December 2018 in relation to loans THE GROUP: 585 jointly fi nanced by the EIB that meet the eligibility criteria.Together with its subsidiaries, CM-CIC Investissement CAPITAL MARKETS – REFINANCING* employsnearly 150 people at seven locations in Crédit Mutuel Alliance Fédérale’s central treasury management SERVICES FOR BUSINESSES, FUND France (Paris headquarters, Lyon, Nantes, Bordeaux, relies on an appropriate calibration of short-term and medium-to- MANAGERS AND INSTITUTIONAL INVESTORS Lille, Strasbourg and Toulouse) and eight internationally CORPORATE BANKING long-term funding with the aim of refi nancing the group CM-CIC Market Solutions is the department of CIC in charge (Frankfurt, Zurich, Geneva, London, Montreal, Toronto, comprises banking and related services provided to large effi cientlyand prudently. It takes the form of public issues and of commercial capital markets business for customers New York and Boston). corporates (major accounts) with annual revenue of more private placements on domestic and international markets and a of Crédit Mutuel Alliance Fédérale. All of these activities liquidity reserve that ensures compliance with regulatory liquidity CM-CIC Investissement is one of few PE fi rms to than €50 million and to institutional clients. ratios and the group’s resilience to severe stress. are aimed at providing businesses, institutional investors offer a full spectrum of services from venture capital and asset management companies with investment, and private equity to buyout capital and M&A Investment banking covers capital markets, merchant The gradual upturn in infl ation in the euro zone, the gradual hedging, transaction and market financing solutions, advisory services, enabling it to provide advice and banking, venture capital, private equity, brokerage and halt in asset purchases by the European Central Bank (ECB), as well as post-trade services. make long-term equity investments from €1 million mergers and acquisitions. the continued rise in interest rates in the United States, political to €150 million or more if required. Corporate banking, capital markets and investment risks in Europe and international trade tensions, particularly banking activities are carried out by Banque Fédérative between the United States and China, contributed to the tense du Crédit Mutuel (BFCM), the holding company of and irregular functioning of the debt market in 2018. Crédit Mutuel Centre Est Europe, and by the Crédit Mutuel Arkéa group. *This information relates to the central treasury department of Crédit Mutuel Alliance Fédérale, excluding Targobank in Germany 84 and Spain and excluding CIC’s non-French subsidiaries and branches. 85