Boursorama: Third quarter 2012 results

  Boursorama: Third quarter 2012 results           A more diversified banking momentum thanks to housing loans                Q3 2012 Group share of net income: €10.0m, down 3%            9 months 2012 Group share of net income: €28.8m, down 13%  Business Wire  BOULOGNE-BILLANCOURT, France -- November 07, 2012  Regulatory News:  Boursorama (Paris:BRS):  Number of orders from individuals down compared with an exceptional Q3 2011    *1.2 million orders executed for the group in Q3 2012 (-33%)   *3.9 million orders executed for the group over the first nine months of     2012 (-23%)  Success of the strategic focus on housing loans in France    *Doubling of online financing applications (+122%) in Q3 2012 to 10,000   *Doubling of loan production (+124%) in Q3 2012 to 134 million euros  Continued growth in banking activity in France    *Around 13,000 new current accounts and more than 11,000 new bank savings     accounts   *3.4 billion euros in balance sheet deposits (+17%) supported by regulated     passbook account deposits: +59%   *7 million payments by card in Q3 2012, +35%   *30% additional mobile banking users compared to Q2 2012   *Only online bank with a presence in Windows 8  Result close to breakeven for international subsidiaries                                             Δ                            Δ In €m                 Q3 2011  Q3 2012  Q3-12/  9M 2011  9M 2012  9M-12/                                             Q3-11                        9M-11 Net banking income     54.7     48.9     -11%     167.0    150.6    -10% Total operating        (39.2)    (32.9)    -16%     (116.1)   (103.9)   -11% expenses Gross operating        15.6      16.1      3%       50.9      46.7      -8% income Net cost of risk       0.1       (0.2)     n.m.     (0.9)     (1.0)     3% Profit before tax      15.6      15.9      2%       49.9      45.6      -9% Group share of net     10.2     10.0     -3%      33.1     28.8     -13% income                                                                           Commenting on the release of the third quarter 2012 results, Inès Mercereau, Chairwoman and Chief Executive Officer of Boursorama stated: "The third quarter of 2012 was marked by the success of our housing loan offering, which doubled in quarterly production, the continued growth in online banking in France and the weakness of brokerage activities. Yet the adaptation of the cost structure of Boursorama initiated last year, allows the company to post a quarterly Gross Operating Income up 3% and a Group share of net income of 10 million euros."    Unless otherwise stated, comparisons refer to quarter-on-quarter reported               data. Figures are in the process of being audited.    *Group performance  In comparison with the third quarter of 2011 which recorded exceptionally active financial markets, Boursorama recorded a number of individuals’ orders declining in the third quarter with 1.2 million orders executed for the group (-33%). Between the second and third quarter 2012, all European indices grew (CAC 40 +7.5%, DAX 30 +6.8%, IBEX 35 +5.3%, FTSE 100 +3.5%) however, the volumes were very low^1: thus Boursorama recorded 3.9 million orders executed for the group in the first nine months of 2012, a 23% reduction compared to the first nine months of 2011.  At the same time, the banking franchise continued to grow in France, driven by the continued acquisition of new day to day banking customers and the success of the housing loan offering.  For third quarter 2012, the Boursorama group's Net Banking Income was down 11% at 48.9 million euros. The adaptation of the cost structure, initiated last year in order to preserve the competitiveness of the company resulted in a 16% reduction of operating expenses to 32.9 million euros and allowed to record a gross operating income (GOI) of 16.1 million euros, up 3%. The third quarter's Group share of net income was 10.0 million euros, down 3%.  Over the first nine months of 2012, Group NBI was down 10% at 150.6 million euros. GOI was down 8% at 46.7 million euros, and the Group share of net income was 28.8 million euros, a 13% reduction.    *France                                             Δ                            Δ In €m                 Q3 2011  Q3 2012  Q3-12/  9M 2011  9M 2012  9M-12/                                             Q3-11                        9M-11 Net banking income     44.0     38.5     -13%     134.2    117.9    -12% Total operating        (28.5)    (22.3)    -22%     (83.7)    (71.8)    -14% expenses Gross operating        15.5      16.1      4%       50.5      46.1      -9% income Net cost of risk       0.1       (0.2)     n.m.     (0.9)     (0.9)     -2% Profit before tax      15.5      15.9      2%       49.5      45.1      -9% Group share of net     10.2     10.5     3%       32.4     29.2     -10% income                                                                           NBI for France for third quarter 2012 amounted to 38.5 million euros, down 13%.    *Banking NBI:  25.8 million euros (+11%), or 67% of NBI for France   *Brokerage NBI: 10.8 million euros (-41%), or 28% of NBI for France   *Revenues from the Internet portal activity: 1.9 million euros (-23%), or     5% of NBI for France  The adjustment of the cost structure which mainly resulted in the reduction of marketing expenses (-52% in the third quarter and -25% over the first nine months), and the full impact of the social plan allowed the company to reduce operating expenses by 22% to 22.3 million euros for the third quarter 2012. The 4% growth in GOI to 16.1 million euros illustrated a satisfactory operating performance. The Group share of net income was up 3%, reaching 10.5 million euros.    *Banking activity  Success of the strategic focus on housing loans  Boursorama's housing loan production doubled in third quarter 2012 to 134 million euros in a declining market^2. This performance resulted from the highlighting of the simplification of processes, quality of service, rapidity of response (immediate provisional response), a targeted communication campaign during August and September and finally a price proposal which was in the lower range of the market^3. The success of this offering demonstrates that housing loan has a rightful place in the offering of a 100% online bank.  Consequence of this positioning, Boursorama recorded more than 10,000 online financing applications during the third quarter 2012, a 122% increase. This rise occurred with a similar risk profile: as in 2011 8% of loan applications received were financed, the average amount of loans granted was stable, the average duration did not evolve, and Crédit Logement granted its guarantee in the same. Outstanding loans increased by 12% to 1.7 billion euros.  ^1 [Decrease in the number of transactions on CAC 40 by 21%, DAX 30 -9%, IBEX 35 -23%, FTSE -25%. Source: Euronext]  ^2 [National production down 29%; source: Observatoire Crédit Logement CSA - Monthly report for September 2012]  ^3 [Annual APR fixed at 30 September 2012 for 14 years at 3.26%]  Continued growth in client franchise  With the opening of nearly 13,000 current accounts and more than 11,000 bank savings accounts during third quarter 2012, the customer base grew by 14%, bringing the number of Boursorama customers in France to nearly 415,000. Customers made seven million payments by card during the past quarter, representing a 35% increase.  The increase in client franchise was accompanied by a 17% increase in balance sheet deposits to 3.4 billion euros. Current account deposits grew by 20% to 718 million euros, bank savings account deposits grew by 19% to 1.9 billion euros, supported by Livret A and LDD deposits, up 59%, and trading account deposits were up 10% at 744 million euros.    *Brokerage activity  Boursorama's level of activity in the third quarter 2012 was down with 687,535 orders executed, or a decrease of 34% compared to a third quarter 2011 exceptionally active.  Despite the rise of European stock indices between the second and the third quarter 2012, the volumes traded declined sharply^4, in addition the financial transaction tax has been introduced on 1^st August 2012. Thus over the first nine months Boursorama recorded 2.3 million orders (-25%).    *International  Cumulative international NBI over the first nine months of 2012 was stable, amounting to 32.7 million euros, and the Group share of net income over the same period was close to breakeven at -0.4 million euros.    *In the United Kingdom, the brokerage activity's market share was     maintained. NBI over the first nine months of 2012 was up 13% at 16.3     million euros, a 5% increase with constant exchange rates.   *In Germany, the downturn in brokerage and media activities was reflected     by a 19% decrease in NBI to 10.8 million euros over the first nine months     of 2012.   *In Spain, the resurgence in activity observed on the brokerage offering     was confirmed: since the beginning of the year, the number of orders     executed was up 19%; over the past quarter, it grew by 17% with more than     64,000 orders. NBI for the first nine months of 2012 was up 11%, reaching     5.6 million euros.                                    *********     The quarterly financial information includes this press release and the    financial presentation, available at the group's website in the finance                      section: http://groupe.boursorama.fr  ^4[The daily average number of transactions carried out on the CAC 40 was down 21% compared with second quarter 2012. Source: Euronext.]    *Appendix  Quarterly consolidated income statement*             Q3 2011                                    Q3 2012 In €m      Group   France  UK     Germany  Spain  Group   France  UK     Germany  Spain Net Banking    54.7    44.0    4.2    4.8      1.7    48.9    38.5    5.5    3.1      1.8 Income Operating expenses    (32.9)  (23.7)  (3.3)  (4.2)    (1.7)   (29.8)  (20.0)  (4.3)  (4.0)    (1.5) excluding marketing Marketing   (6.2)    (4.8)    (0.5)   (0.6)     (0.2)   (3.1)    (2.3)    (0.4)   (0.2)     (0.2) expenses Total operating  (39.2)  (28.5)  (3.8)  (4.8)    (2.0)  (32.9)  (22.3)  (4.7)  (4.2)    (1.7) expenses Gross operating  15.6    15.5    0.4    0.0      (0.3)  16.1    16.1    0.9    (1.1)    0.2 expenses Net cost    0.1      0.1      0.0     0.0       0.0     (0.2)    (0.2)    0.0     0.0       0.0 of risk Profit before     15.6    15.5    0.4    0.0      (0.3)  15.9    15.9    0.9    (1.1)    0.2 tax Group share of   10.2    10.2    0.3    (0.1)    (0.2)  10.0    10.5    0.5    (1.1)    0.1 net income                                                                                               Nine months consolidated income statement*             9 months 2011                                9 months 2012 In €m      Group    France  UK      Germany  Spain  Group    France  UK      Germany  Spain Net Banking    167.0    134.2   14.4    13.3     5.0    150.6    117.9   16.3    10.8     5.6 Income Operating expenses    (95.7)   (67.3)  (10.6)  (12.4)   (5.5)   (88.5)   (59.5)  (12.0)  (12.1)   (4.8) excluding marketing Marketing   (20.4)    (16.4)   (1.8)    (1.0)     (1.2)   (15.5)    (12.3)   (2.0)    (0.5)     (0.6) expenses Total operating  (116.1)  (83.7)  (12.4)  (13.3)   (6.7)  (103.9)  (71.8)  (14.0)  (12.7)   (5.5) expenses Gross operating  50.9     50.5    2.1     0.0      (1.7)  46.7     46.1    2.3     (1.8)    0.1 expenses Net cost    (0.9)     (0.9)    0.0      0.0       (0.0)   (1.0)     (0.9)    0.0      0.0       0.0 of risk Profit before     49.9     49.5    2.1     0.0      (1.7)  45.6     45.1    2.3     (1.8)    0.1 tax Group share of   33.1     32.4    1.5     0.1      (0.9)  28.8     29.2    1.4     (1.9)    0.0 net income                                                                                                   *Non audited.  Financial statements reviewed by the Board of Directors on November 6, 2012.  Business indicators  Number of executed      Q1-11      Q2-11      Q3-11      Q4-11      2011       Q1-12      Q2-12      Q3-12 orders Group         1,896,676  1,436,027  1,750,093  1,428,404  6,511,200  1,548,513  1,213,216  1,173,713 France         1,184,992   892,521     1,034,560   853,893     3,965,966   945,468     701,323     687,535 United         339,050     250,669     301,905     219,006     1,110,630   255,189     216,731     189,207 Kingdom Germany        316,934     250,546     358,858     299,613     1,225,951   288,267     236,523     232,892 Spain         55,700     42,291     54,770     55,892     208,653    59,589     58,639     64,079                                                                 Number of     Q1-11      Q2-11      Q3-11      Q4-11      2011       Q1-12      Q2-12      Q3-12 new accounts Group          50,042      40,039      44,095      39,113      173,289     45,309      37,077      34,584 France         37,850      32,221      35,562      33,498      139,131     35,724      30,672      28,449 Current        16,296      15,785      15,512      15,774      63,367      16,983      14,531      12,831 accounts Savings and other          13,371      10,806      12,681      11,927      48,785      13,350      11,216      11,387 accounts Life insurance      4,161       3,093       1,863       801         9,918       1,207       1,689       1,682 and MF Trading        4,022       2,537       5,506       4,996       17,061      4,184       3,236       2,549 accounts United         6,537       3,792       3,242       2,132       15,703      5,682       3,044       2,338 Kingdom Germany        1,435       1,056       2,852       1,156       6,499       1,368       1,009       1,354 Spain         4,220      2,970      2,439      2,327      11,956     2,535      2,352      2,443                                                                 Total number  Q1-11      Q2-11      Q3-11      Q4-11      2011       Q1-12      Q2-12      Q3-12 of accounts Group          854,198     883, 965    918,981     949,733     949,733     987,135     998,704     1,015,319 France         544,759     570,571     600,993     629,094     629,094     658,559     683,590     706,086 Current        174,311     188,524     202,401     217,245     217,245     232,172     244,716     255,449 accounts Savings and other          106,880     116,544     127,956     138,536     138,536     150,376     160,232     170,077 accounts Life insurance      120,498     122,810     124,543     124,774     124,774     125,207     126,269     127,286 and MF Trading        143,070     142,693     146,093     148,569     148,569     150,804     152,373     153,274 accounts United         219,315     220,977     221,536     221,797     221,797     227, 658    212,729     204,612 Kingdom Germany        39,071      38,897      40,913      41,443      41,443      41,532      40,999      41,258 Spain         51,053     53,520     55,539     57,399     57,399     59,386     61,386     63,363  Outstandings  Q1-11      Q2-11      Q3-11      Q4-11      2011       Q1-12      Q2-12      Q3-12 in €m Balance Sheet          3,572       3,684       3,662       3,861       3,861       4,011       4,152       4,310 deposits Trading        1,506       1,467       1,397       1,477       1,477       1,462       1,490       1,602 accounts Current        571         601         604         639         639         651         718         722 accounts Savings and other          1,495       1,615       1,661       1,744       1,744       1,899       1,944       1,986 accounts Mutual Funds   1,483       1,463       1,243       1,260       1,260       1,364       1,316       1,400 Life           2,375       2,435       2,407       2,394       2,394       2,479       2,472       2,542 Insurance Securities     8,592       7,960       7,052       6,923       6,923       7,878       7,472       8,041 Total AUA     16,021     15,542     14,365     14,438     14,438     15,732     15,411     16,293                                                                                                      NBI France by activity  In €m           Q1-11  Q2-11  Q3-11  Q4-11  2011   Q1-12  Q2-12  Q3-12 Total NBI       45.5   44.7   44.0   39.7   173.9  42.6   36.8   38.5 France Banking          22.1    23.7    23.2    23.3    92.2    24.4    22.6    25.8 Brokerage        21.1    17.6    18.4    13.3    70.4    15.7    11.6    10.8 Internet        2.3    3.4    2.4    3.1    11.2   2.4    2.7    1.9 Portal                                                                            Balance sheet at 30 September 2012*  In €m                                                       ASSETS                             LIABILITIES                            30/06/2012  30/09/2012                  30/06/2012  30/09/2012 Customer     1,889       1,936        Customer        3,646       3,776 loans                                  deposits Bank loans (including                             Bank cash and     1,412        1,520        liabilities     63           72 central                                and debt banks) Other        1,018        1,052        Other           148          172 assets                                 liabilities Non current      260          263          Shareholders’   722          751 assets and                             equity goodwill Total       4,579       4,771        Total          4,579       4,771 assets                                 liabilities                                                                       *Non audited  Regulatory capital, RWA and Basel II solvency ratios  In €m                               31/12/2011  30/09/2012 Group share of consolidated equity   548.6       604.8 Minority interest                    25.6         26.5 Intangibles, Goodwills               (231.9)      (237.1) Complementary adjustments - AFS      12.7         (16.3) Equity                               355.0        377.9 Subordinated debt                    120.0        120.0 Total equity                         475.0        497.9 RWA credit risk                      754.4        813.0 RWA market risk                      0.0          0.0 RWA operational risk                 78.7         91.0 Total RWA                            833.1        904.0 Tier 1                               42.6%        41.8% Global solvency ratios               57.0%       55.1%                                                     About Boursorama  Founded in 1995, Boursorama is a major player in online banking in Europe and is part of the Société Générale Group, with approximately 6.5 million orders executed in 2011, 949,733 direct accounts and total assets under administration of €14.4bn at end of 2011. Boursorama Group is present in four countries. In France, it is market leader in online financial information with the www.boursorama.com portal and a key player in online banking under the Boursorama Banque brand. It is a key online broker in the United Kingdom and Spain under the respective brands of Self Trade and Self Bank. In Germany, Boursorama holds 92.9% of the shares of OnVista AG, and operates under the OnVista Bank brand. Boursorama is listed on NYSE Euronext Paris – compartment B – ISIN: FR0000075228 (BRS) – Reuters: FMTX.LN – Bloomberg BRS FP. For all the latest financial news on Boursorama, go to: http://groupe.boursorama.fr  Contact:  Boursorama Diane-Charlotte Kermorgant, +33 1 46 09 53 21 Press and Investor Relations diane-charlotte.kermorgant@boursorama.fr or Publicis Consultants Stéphanie Tabouis, +33 6 05 84 05 03 Press Relations stephanie.tabouis@consultants.publicis.fr  
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