Crédit Mutuel Group - 2018 Activity Report JOINT INTERVIEW WITH THE CHAIRMAN AND cohesion and confidence within the Where do things stand now on bank and our technological transformation, THE CHIEF EXECUTIVE OFFICERCrédit Mutuel group, by offering servicesthis matter?to achieve ongoing improvement in adapted to each entity. Crédit Mutuel is customer relationships and customer and a strong and diversified group, with a Pierre-Édouard Batard: CNCM advisor experiences. This draws in well-known brand name that reflects the has always been committed above particular on deployment of artificial CRÉDIT MUTUEL’S RESULTS constantly renewed trust of our customers all to unity and to protecting members. intelligence and constant enhancement and members. A response has been It is responsible for ensuring consistency of the functions of websites and mobile REFLECT THE SUCCESS OF provided to each of the criticisms addressed throughout the network, the smooth applications. to Confédération Nationale du Crédit Mutuel operation of the federations and local We are firmly convinced that technology ITS BUSINESS MODEL. (CNCM) in 2014. banks and the group’s financial and must serve people and not the other way NICOLAS THÉRY, The subject is now closed. economic stability. around. The challenge facing us is to give We have now gained fresh momentum CNCM will continue to fulfill its role as our advisors more time so that they can Chairman, Confédération Nationale du Crédit Mutuel through a modernized model. We are guarantor of Crédit Mutuel’s collective fully understand our customers’ needs. PIERRE-ÉDOUARD BATARD, ready to face the future with a mutual interests – those of the local banks, The customer relationship is the Chief Executive Officer model that has retained its hallmark members, customers, employees and cornerstone of our business and, thanks strengths while being updated to meet investors, particularly with regard to to technology, the advisors can dedicate our local presence on the ground; the challenges of the present day. the serious consequences that could their time entirely to their customers it is our group’s greatest strength. arise from the decision to disaffiliate. and build close ties with the people It is this cohesion that enables investment How would you describe the It is precisely because CNCM has this duty they support on a daily basis. and development. Crédit Mutuel group’s 2018 results? to protect that, in February, it adopted At Crédit Mutuel, technology will always Pierre-Édouard Batard: The Crédit a “general decision” defining the terms be used to help people. Financial and economic circles are Mutuel group achievedrecord results this and conditions of disaffiliation. worried by the possibility of another year, with a net profit of €3.5 billion that The disaffiliation procedure has now Is the mutual banking model still major financial crisis. How is Crédit confirms the value of our business model been clarified and the banks that wish a valid response to the challenges Mutuel preparing itself? and local roots. With 5,700 branches to leave Crédit Mutuel must comply with ofthe 21 century?st nationwid orkforce increased it to the letter and fully assume all their Pierre-Édouard Batard: The basis of Pierre-Édouard Batard: Tensions have by more than 1,500 jobs this year.e, our w responsibilities in terms of protecting always existed at economic and financial members, customers, employees and the the mutual movement is to give individuals levels. We are of course vigilant, but we We are therefore part of a group that collective solidarity of Crédit Mutuel that or groups of individuals greater power are unworried as the Crédit Mutuel group is doing particularly well, whose model has enabled the local banks to develop. to act on the social, economic, political is solid. is sustainable and growing. Ultimately, the decision can only be taken or environmental conditions they face. Crédit Mutuel came top of the French Lastly, Crédit Mutuel's results prove the by the members of each of the local banks It has therefore never been more relevant, banks in the most recent stress test success of its diversification strategy with full knowledge of the issues at stake and seems an obvious response to performed by the E French society’s present need for greater uropean Union. –and we shall continue to redefine our and related consequences. This result reflects the solidity of our business well outside the limits of its proximity. At a time when French people mutual bank business model, which traditional frontiers. It is the culmination Crédit Mutuel is responding to are seeking to make their voice heard and involves reinvesting almost all our profit. of a number of years of major the challenges of the in-depth demanding greater social justice, a mutual The group provides on the one hand the transformations atall the federations – transformation undergone by model guarantees local roots and solidarity necessary strength to ensure each reflecting the genuine commitment economic and financial agents among individuals. federation’s development, and on the of all the people working at every level through multiple investments. Crédit Mutuel is and will continue to be a other hand solidarity between the various nationwide. We must not forget that How does the group makeinnovationdecentralized banking group that entrusts regions. it is unity and solidarity that set our part of the daily work of its employees? maximum decision-making powers to Confédération Nationale du group apart. Nicolas Théry: In 2018 we stepped up the neighborhood entities that are France is experiencing unprecedented in inequality that endangers our social Crédit Mutuel embarked on a major the transformation of our bsnessmdui oel the local banks. In a globalized world, social tensions. How has Crédit contract. reorganization ofits governan 2018 saw two federations based on a strategy of diversification in the best response is to be a strong player Mutuel, a deeply committed player at ce reaffirm the desire to leavir all our businesses. We strengthened with national and European reach, while A bank’s role is more important than ever in 2016. How is this progressing? e the local level, responded to this at such moments. We must fight against the Crédit Mutuel group. our position as a multiservice neighborhood remaining very close to its local regions. crisis? social fragmentation. We must give all our Nicolas Théry: Crédit Mutuel has just customers the capacity to develop projects completed the reorganization of its Nicolas Théry: The purpose of a bank, governance. I would once again like particularly a cooperative bank such as and therefore have faith in themselves to thank Pascal Durand, who worked Crédit Mutuel, is to stay as close as and in their future. Our role, especially at hard for three years to modernize THE PURPOSE OF A BANK LIKE CRÉDIT MUTUEL possible to its customers and give them such a time, is both to protect what has the Confédération’s governance. IS TO STAY AS CLOSE AS POSSIBLE TO ITS support at every stage in their lives. already been achieved and help make Our organization can congratulate itself We are by no means indifferent to the the future possible. on a successful combination of unity CUSTOMERS AND GIVE THEM SUPPORT AT discontent expressed by part of the French At Crédit Mutuel, our aim is very simple: and subsidiarity. The Confédération is population; indeed, the scale and the we want to be the bank for everyone. effectively at the service of the federations EVERY STAGE IN THEIR LIVES. nature of this crisis has revealed a rise This determination is expressed through and local banks to ensure consistency, 12 13 elcnonleeyB okDc neanriFo :ttindAe :rco toothohPP