Regulatory News:

Boursorama (Paris:BRS):

Falling transaction volumes

  • Decrease in traded volumes in 2012 vs. 2011: Euronext Paris: -25%, Deutsche Börse: -24%; LSE: -15%
  • 5.1 million orders executed for the Boursorama group in 2012, -22%

Success of the online banking offering promoted by the audience of boursorama.com

  • boursorama.com: number 1 website for economic and financial news in France
  • Recommendation rate high and up 3 points to 90%, high Net Promoter Score of +51 %
  • Nearly 60,000 current accounts opened, bank deposits up 13% to 3.4 billion euros

Successful orientation towards the housing loan offering

  • Sharp increase in production: +58% to 473 million euros
  • Increase in outstandings by 14% to 1.8 billion euros

Adoption of mobile banking by customers

  • Success of initiatives to increase the use of mobile banking
  • Nearly 30% of customer log-ons via mobile in December 2012, +60% in one year
  • Introduction of mobile applications in Germany and Spain

2013 outlook: provide the best of the bank, online and at the best price

  • Pursuit on the housing loan and introduction of personal credit
  • Launch of an offering for our customers' children
  • Towards a unique user experience: Responsive Web Design and reshaping of the customers' processes
In ?m       Q4 2011       Q4 2012      

?"
Q4-12/
Q4-11

       2011       2012      

?"
2012/
2011

Net banking income 51.7       50.8       -2% 218.7       201.5       -8%
Total operating expenses (32.9) (30.9) -6% (149.0) (134.8) -10%
Gross operating income 18.8 19.9 6% 69.7 66.6 -4%
Net cost of risk (0.5) (1.0) nm (1.5) (2.0) 34%
Profit before tax 18.6 18.4 -1% 68.5 64.0 -7%
Group share of net income 10.3       11.6       13% 43.4       40.4       -7%
 

"Boursorama displays a 2012 result over 40 million euros in a difficult economic environment, which demonstrates the strength and the relevance of its model. The banking business continues to grow, driven by brand awareness, the success of housing loan and day-to-day banking and especially by the increasing satisfaction of our customers. In 2013, Boursorama will continue to provide the best of the bank, online and at the best price particularly with the launch of a personal credit offering." said Inès Mercereau, Chairwoman and Chief Executive Officer of Boursorama.

Unless otherwise stated, comparisons refer to quarter-on-quarter reported data. Figures are in the process of being audited.

  • Good resistance of the group's financial performance in 2012

The year 2012 has been characterised by a difficult macroeconomic environment and sluggish economic indicators for the group's activities: negative growth in the euro zone in 2012 (-0.4%), continued decreases in 10-year OAT and 3-month Euribor rates and the rate of the Livret A maintained at 2.25% in France.

On the stocks markets, trading volumes have fallen sharply. Euronext Paris declined transaction volumes by 25%, Deutsche Börse by 24%, LSE by 15%. In addition, the volatility observed on the stock markets fell strongly in 2012: the average VIX index dropped by 6 points.

In this difficult context, the Boursorama group posted a Net Banking Income (NBI) of 201.5 million euros for 2012, down 8% due to lower brokerage activity, despite the banking activity's growth in France. Operating expenses were greatly reduced (-10%), amounting to 134.8 million euros which enabled to record a Gross Operating Income (GOI) to 66.6 million euros over the year (-4%), reflecting a satisfactory operating performance. The cost of risk at group level is low: 2 million euros. Overall, the strength of the model allows to reach a Group share of net income of 40.4 million euros for the year, down 7%, and to record a Tier One ratio of 41.3%.

In the fourth quarter of 2012 the group posted a NBI down 2% to 50.8 million euros, operating expenses decrease by 6% to 30.9 million euros which allows to post a GOI up to 19.9 million euros (+6%) and a Group share of net income increasing by 13% to 11.6 million euros.

Market conditions observed in 2012 improve significantly in early 2013, as shown by the increase of indices since the fourth quarter of 2012 and higher transaction volumes on Euronext Paris for the month of January 2013 (+12% vs. December 2012).

  • France
In ?m       Q4 2011       Q4 2012      

?"
Q4-12/
Q4-11

       2011       2012      

?"
2012/
2011

Net banking income 39.7       40.6       2% 173.9       158.5       -9%
Total operating expenses (21.7) (19.8) -9% (105.4) (91.6) -13%
Gross operating income 18.0 20.8 15% 68.5 66.9 -2%
Net cost of risk (0.5) (1.0) nm (1.4) (1.9) 33%
Profit before tax 17.8 19.2 8% 67.4 64.3 -4%
Group share of net income 10.2       13.3       31% 42.6       42.5       -0,1%
 

In 2012, the banking business accounted for nearly two-thirds of revenues in France. NBI for France for 2012 amounted to 158.5 million euros, down 9%.

  • Banking NBI: 100.0 million euros (+8%), or 63% of NBI for France
  • Brokerage NBI: 48.4 million euros (-31%), or 31% of NBI for France
  • Revenues from the Internet portal activity: 10.0 million euros (-11%), or 6% of NBI for France

Operating expenses were down by 13% and amounted to 91.6 million euros as a result of the regrouping plan at the head office, monitoring of marketing expenditures and control of other general costs. Boursorama thus achieved a good operating performance, GOI totalled 66.9 million euros (-2%), and the Group share of net income was stable at 42.5 million euros.

In the fourth quarter of 2012 the French NBI was up to 40.6 million euros (+2%). Operating expenses decreased by 9% to 19.8 million euros and enabled to record a strong increase of both GOI (+15% at 20.8 million euros) and Group share of net income (+31% at 13.3 million euros).

  • Banking activity

Success of the online banking offering

All indicators of customer satisfaction improved in 2012: the rate of customer recommendation gained three points and reached for the first time 90%1, Boursorama had a high "Net Promoter Score" of +51%2, and is the first bank in France on this measure (the average score obtained by the French banking sector was -13%). In addition, Boursorama Banque is again recognized as the "cheapest bank" by the magazine Capital and Le Monde Argent in February 20133.

As a result, the client franchise has continued to grow at a rapid pace with 60,000 new current accounts and about 45,000 new bank savings accounts per year. More numerous but also more active, customers made 2.3 million payments by card per month on average during the past year, a 37% increase.

The increase in client franchise was followed by a 13% increase in bank deposits to 3.4 billion euros. Current account deposits grew by 17% to 742 million euros, and bank savings account deposits (CSL, LDD, Livret A, etc.) increased by 14% to 1.2 billion euros, supported by the strong growth of Livret A and LDD deposits (+87%). Trading account deposits reached 736 million euros, up 5%.

The success of the banking offering has been confirmed and the number of customers increased by 13% to more than 425,000 customers.

Successful orientation towards the housing loan offering

The year 2012 was marked by a strong increase of the production of housing loans: +58% to 473 million euros while at the same time the French market fell by 33%4. Total outstandings increased by 14% to 1.8 billion euros.

Boursorama's orientation towards credit has been a success. The online credit offering is competitive and appreciated from clients thanks to several features including: maintaining an attractive pricing policy5, increased product awareness (75% of customers are now familiar with the housing loan offering) and an simple subscription online process, quick, easy to adopt, as evidenced by the sharp increase of online applications recorded (+82% to 37,000).

The increase in production was accompanied by a continued recruitment of upscale clients: private executives represent 51% of borrowers and 65% of clients who took out a loan were less than 35 years old. The average amount of loans granted in 2012 was ?164,500 over an average loan term of 15 years.

Life Insurance: satisfactory performance

Performance in 2012 was satisfactory and the introduction of new products and innovative services allowed to diversify the offering.

  • Life insurance: a new Euro fund, innovations and performances

Life insurance offering was enriched with a new Euro fund. The fund "Euro exclusif" reserved for Boursorama customers only, is a guaranteed capital fund without restraint of investment of unit linked contracts, made up of assets with a real-estate diversification. In addition, the amounts of minimum payments were lowered on "Boursorama Vie" policy (from ?1506) and application is now available without sending a paper form.

In a market showing net outflows for the first time7, Boursorama posted positive net inflows each month of 2012 which amounted to a total of 96 million euros. Outstandings increased by 7% to 2.6 billion euros.

In 2012, Euro funds « Euro Exclusif » and « Eurossima » posted very good performance with respectively 3.62% net and 3.42% net. The "Gestion Pilotée" offering with EDRAM generated very attractive performance too, since the defensive investment strategy reached 7.20% in net return in 2012.

  • Mutual funds: launch of the "Compte d'Epargne Financière Pilotée"

The "Compte d'Epargne Financière Pilotée" launched in partnership with ODDO AM is a savings offering accessible from ?100, divided in four investment profiles and consisting of mutual funds in order to benefit from the dynamics of financial markets. Mutual funds outstandings are stable to 783 million euros with still an overweight in non-monetary funds (89% of assets).

1 Opinion Way survey, December 2012
2 Source: « Customer loyalty in retail banking, global edition 2012 » survey realized by Bain & Company, ranking of banks according to the % of promoters of the brand and the % of detractors. Boursorama with a score of 51% is the first bank in France
3 According to the "executive" profile defined by the magazine Capital and the "employee" and "executive" profiles defined by Le Monde Argent
4 National production down 33%; source: Observatoire Crédit Logement CSA - Monthly report December 2012
5 Annual APR fixed at 31, December 2012, over 14 years at 3.11%, insurance included
6 Initial payment from ?150 and then scheduled payments from ?50/month, or an initial payment of ?300 without scheduled payments
7 Source: Fédération Française des Sociétés d'Assurance (FFSA)

Strong growth in awareness of the Boursorama Banque brand

All banks combined, the growth in awareness brand has been remarkable. Indeed Boursorama's spontaneous awareness score went from 0.6 in 2010 to 10.3% in 2012, and is positioning itself as the first online bank on this segment.

All indicators have improved in the online banking universe. Boursorama Banque confirmed its number 1 position in top-of-mind awareness with 20.8%8 (vs. 20.1% in 2010) and in spontaneous awareness with 34.1%8 (vs. 31.8% in 2010). Assisted awareness maintained its high level, growing to 76.8%8 (vs. 75.3% in 2010).

In September 2012, the item "real bank" appeared among the four criteria that characterize the overall image of Boursorama Banque thanks to the communication on the housing loan.

  • Mobile banking: a reality

The development of online banking and its variation on all mobile devices has enabled Boursorama to be even closer to its customers and to count 2.2 million additional customer contacts. This increase is explained by the introduction of narly thirty new alerts (100,000 alerts were sent on average per month from September to December), a 72% increase in the number of SMS to secure banking transactions (at 4.1 million) and a 32% increase in commercial contacts (to more than 360,000).

The presence of Boursorama in mobile usage was completed during the summer with a tablet application giving access to three domains: information portal, banking, and brokerage. With nearly 30 banking and brokerage operations, the application stands out from others notably by offering the possibility to increase card limits instantly or sending a cheque. Challenges magazine also selected the Boursorama app as one of the top 100 existing tablet apps. Mobile applications have also been introduced for OnVista and Self Bank.

The launch of tablet applications contributed to the increase in mobile banking use in 2012.

In December, nearly 30% of customers were connected via mobile, or 60% more than in December 2011. In one year, card limit changes via mobile increased by six times, and the number of orders executed via mobile was multiplied by 2.5.

  • Brokerage activity: the best of online brokerage

With an extended offering giving access to the Forex, CFDs, and Futures, tariffs adapted to different investor profiles -including the « Découverte » tariff launched at the end of 2011 and whose success continued in 2012-, quality and security on equity orders executed on NYSE Euronext, an innovative alternative platform ("Direct Emetteurs") providing direct access to the warrants and certificates of issuers on extended hours9 and the unique tool that is boursorama.com and its forums, Boursorama offers the best brokerage offering for individual shareholders.

Executing orders was also part of the operations in mobile use which strongly increase: the number of orders executed via Smartphones and tablets has been multiplied by 2.3 in one year.

An efficient offering, adapted tariffs, and extensive information are as many assets that have enabled Boursorama to increase the number of trading accounts by 4% to nearly 155,000, despite a non favourable tax environment for the investment of individuals in stock markets.

  • boursorama.com: number 1 site for economic and financial news in France

After the reshaping of the website in 2011, 2012 was marked by the enrichment of content. Boursorama.com now aggregates new flows of information on rates with CDS quotes via Markit, yields and expert advices from Edmond de Rothschild, additional flows on stocks via MorningStar's recommendation, small and midcap advices from Cercle Finance and a mapping of managers via société.com. Editorial partnerships with Le Monde, L'Express, le Cercle des Economistes or les Editions Francis Lefebvre helped to enrich the economic, legal, tax and assets topics. New tools were also set up, such as real-estate valuation or simulators of interest from assets investments. Finally, the video channel which was launched in mid 2012 attracted online viewers with 25,000 embedded videos generating 5 million views in 2012.

The offering from the boursorma.com Internet portal is now deployed on all Smartphones and tablets devices.

The Internet portal boursorama.com is a partner of the AdExchange platform La Place Média. Advertisers can thus broadcast their advertising campaigns to a targeted and qualified audience.

These improvements helped to reaffirm the leading position of boursorama.com on the economic and financial news: with more than 31.3 million monthly visits, nearly 345 million pages viewed and 560,000 unique visitors on average per day, boursorama.com is the number 1 website for economic and financial news and the 13th most visited website in France 10.

8 Image awareness barometer, Smart Test AEGIS Media, comparison between the average of the scores obtained in 2012 and the 2010 average
9 Extended trading hours: 09:05 am to 8:00 pm and Commerzbank who joined BNP Paribas, Citi and Société Générale as an issuer partner
10 Source: Ranking of website visit frequency established by the OJD, January 2013

  • International

International subsidiaries were more directly impacted by the decline in brokerage activity. Cumulative international NBI was slightly down for 2012 at 43.0 million euros (-4%). Cumulative Group share of net income was negative in 2012 at -2.1 million euros.

  • In Spain, performance was remarkable: 2012 NBI up 5% at 7.2 million euros and Group share of net income at breakeven. Self Bank was awarded for the second consecutive year "best customer service"11.
  • In the United Kingdom, 2012 NBI increased by 11% to 21.3 million euros, i.e. a 4% increase with constant exchange rates. Group share of net income decreased to 0.8 million euros. Investments in the industrial tool will weigh on the 2013 accounts.
  • In Germany, the slowdown in brokerage and media activities resulted in a 23% decrease in NBI to 14.4 million euros. Group share of net income was negative at -3.0 million euros. Following the establishment of a plan to return to breakeven, a restructuring provision was recorded at 0.5 million euros.

11 Award granted following the survey lead by the company Gesfutur XXI and online satisfaction survey lead by TNS

*********

The annual financial information includes this press release and the financial presentation, available at the group's website in the finance section: http://groupe.boursorama.fr

  • Appendix

Quarterly consolidated income statement

The Boursorama accounts are currently being audited by external auditors.

      Q4 2011       Q4 2012
In ?m       Group       France       UK       Germany       Spain       Group       France       UK       Germany       Spain
Net Banking Income       51.7       39.7       4.8       5.4       1.9       50.8       40.6       5.0       3.6       1.7
Operating expenses excluding marketing (28.1)       (18.4)       (3.5)       (4.4)       (1.8) (29.0)       (18.6)       (4.4)       (4.5)       (1.5)
Marketing expenses (4.8) (3.3) (0.5) (0.5) (0.5) (1.9) (1.2) (0.4) (0.2) (0.1)
Total operating expenses       (32.9)       (21.7)       (4.0)       (4.9)       (2.2)       (30.9)       (19.8)       (4.8)       (4.7)       (1.6)
Gross operating expenses       18.8       18.0       0.7       0.5       (0.4)       19.9       20.8       0.3       (1.1)       0.0
Net cost of risk (0.5) (0.5) 0.0 0.0 0.0 (1.0) (1.0) 0.0 0.0 0.0
Profit before tax       18.6       17.8       0.7       0.4       (0.3)       18.4       19.2       0.3       (1.2)       0.0
Group share of net income       10.3       10.2       (0.1)       0.4       (0.2)       11.6       13.3       (0.6)       (1.1)       0.0
 

Annual consolidated income statement

The Boursorama accounts are currently being audited by external auditors.

      2011       2012
In ?m       Group       France       UK       Germany       Spain       Group       France       UK       Germany       Spain
Net Banking Income       218.7       173.9       19.2       18.7       6.9       201.5       158.5       21.3       14.4       7.2
Operating expenses excluding marketing (123.8)       (85.7)       (14.1)       (16.8)       (7.3) (117.5)       (78.1)       (16.4)       (16.7)       (6.3)
Marketing expenses (25.2) (19.7) (2.4) (1.5) (1.7) (17.4) (13.5) (2.4) (0.7) (0.8)
Total operating expenses       (149.0)       (105.4)       (16.4)       (18.2)       (9.0)       (134.8)       (91.6)       (18.8)       (17.4)       (7.1)
Gross operating expenses       69.7       68.5       2.8       0.5       (2.1)       66.6       66.9       2.5       (3.0)       0.1
Net cost of risk (1.5) (1.4) 0.0 0.0 0.0 (2.0) (1.9) 0.0 0.0 0.0
Profit before tax       68.5       67.4       2.8       0.5       (2.1)       64.0       64.3       2.5       (3.0)       0.1
Group share of net income       43.4       42.6       1.4       0.4       (1.1)       40.4       42.5       0.8       (3.0)       0.1
 

Business indicators

Number of executed orders       Q1-11       Q2-11       Q3-11       Q4-11       2011       Q1-12       Q2-12       Q3-12       Q4-12       2012
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       1,137,532       5,072,974
France 1,184,992 892,521 1,034,560 853,893 3,965,966 945,468 701,323 687,535 665,870 3,000,196
United Kingdom 339,050 250,669 301,905 219,006 1,110,630 255,189 216,731 189,207 192,114 853,241
Germany 316,934 250,546 358,858 299,613 1,225,951 288,267 236,523 232,892 226,680 984,362
Spain       55,700       42,291       54,770       55,892       208,653       59,589       58,639       64,079       52,868       235,175

 

Number of new accounts       Q1-11       Q2-11       Q3-11       Q4-11       2011       Q1-12       Q2-12       Q3-12       Q4-12       2012
Group 50,042 40,039 44,095 39,113 173,289 45,309 37,077 34,584 38,681 155,651
France 37,850 32,221 35,562 33,498 139,131 35,724 30,672 28,449 32,272 127,117
Current accounts 16,296 15,785 15,512 15,774 63,367 16,983 14,531 12,831 14,811 59,156
Savings and other accounts 13,371 10,806 12,681 11,927 48,785 13,350 11,216 11,387 11,173 47,126
Life insurance and MF 4,161 3,093 1,863 801 9,918 1,207 1,689 1,682 2,925 7,503
Trading accounts 4,022 2,537 5,506 4,996 17,061 4,184 3,236 2,549 3,363 13,332
United Kingdom 6,537 3,792 3,242 2,132 15,703 5,682 3,044 2,338 2,284 13,348
Germany 1,435 1,056 2,852 1,156 6,499 1,368 1,009 1,354 1,835 5,566
Spain       4,220       2,970       2,439       2,327       11,956       2,535       2,352       2,443       2,290       9,620

 

Total number of accounts       Q1-11       Q2-11       Q3-11       Q4-11       2011       Q1-12       Q2-12       Q3-12       Q4-12       2012
Group 854,198 883, 965 918,981 949,733 949,733 987,135 998,704 1,015,319 1,040,801 1,040,801
France 544,759 570,571 600,993 629,094 629,094 658,559 683,590 706,086 729,597 729,597
Current accounts 174,311 188,524 202,401 217,245 217,245 232,172 244,716 255,449 268,167 268,167
Savings and other accounts 106,880 116,544 127,956 138,536 138,536 150,376 160,232 170,077 179,368 179,368
Life insurance and MF 120,498 122,810 124,543 124,774 124,774 125,207 126,269 127,286 127,915 127,915
Trading accounts 143,070 142,693 146,093 148,569 148,569 150,804 152,373 153,274 154,147 154,147
United Kingdom 219,315 220,977 221,536 221,797 221,797 227, 658 212,729 204,612 203,681 203,681
Germany 39,071 38,897 40,913 41,443 41,443 41,532 40,999 41,258 42,257 42,257
Spain       51,053       53,520       55,539       57,399       57,399       59,386       61,386       63,363       65,266       65,266

 

Outstandings in ?m

       Q1-11       Q2-11       Q3-11       Q4-11       2011       Q1-12       Q2-12       Q3-12       Q4-12       2012
Balance Sheet deposits 3,572 3,684 3,662 3,861 3,861 4,011 4,152 4,310 4,274 4,274
Trading accounts 1,506 1,467 1,397 1,477 1,477 1,462 1,490 1,602 1,530 1,530
Current accounts 571 601 604 639 639 651 718 722 746 746
Savings and other accounts 1,495 1,615 1,661 1,744 1,744 1,899 1,944 1,986 1,998 1,998
Mutual Funds 1,483 1,463 1,243 1,260 1,260 1,364 1,316 1,400 1,413 1,413
Life Insurance 2,375 2,435 2,407 2,394 2,394 2,479 2,472 2,542 2,572 2,572
Securities 8,592 7,960 7,052 6,923 6,923 7,878 7,472 8,041 8,170 8,170
Total AUA       16,021       15,542       14,365       14,438       14,438       15,732       15,411       16,293       16,430       16,430
 

NBI France by activity

In ?m       Q1-11       Q2-11       Q3-11       Q4-11       2011       Q1-12       Q2-12       Q3-12       Q4-12       2012
Total NBI France       45.5       44.7       44.0       39.7       173.9       42.6       36.8       38.5       40.6       158.5
Banking 22.1 23.7 23.2 23.392.2 24.4 22.6 25.8 27.3100.0
Brokerage 21.1 17.6 18.4 13.370.4 15.7 11.6 10.8 10.348.4
Internet Portal       2.3       3.4       2.4       3.1       11.2       2.4       2.7       1.9       3.0       10.0
 

Balance sheet at 31 December 2012

In ?m                                        
ASSETS                 LIABILITIES                
      31/12/2011       31/12/2012       31/12/2011       31/12/2012
Customer loans 1,831 2,040 Customer deposits 3,323 3,800
Bank loans (including cash and central banks) 1,312 1,401 Bank liabilities and debt 58 77
Other assets 826 1,133 Other liabilities 152 185
Non current assets and goodwill 258 264 Shareholders' equity 694 776
Total assets       4,227       4,838 Total liabilities       4,227       4,838
 

Regulatory capital, RWA and Basel II solvency ratios

In ?m       31/12/2011       31/12/2012
Group share of consolidated equity 548.6       629.4
Minority interest 25.6 26.7
Intangibles, Goodwills (231.9) (239.0)
Complementary adjustments - AFS 12.7 (29.7)
Equity 355.0 387.5
Subordinated debt 120.0 120.0
Total equity 475.0 507.5
RWA credit risk 754.4 830.4
RWA market risk 0.0 0.0
RWA operational risk 78.7 107.0
Total RWA 833.1 937.4
Tier 1 42.6% 41.3%
Global solvency ratios 57.0%       54.1%

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 5.1 million orders executed in 2012, 1,040,801 direct accounts and total assets under administration of ?16.4bn at end of 2012. 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

Press
Boursorama
Press and Investor Relations
Diane-Charlotte Kermorgant, +33 1 46 09 53 21
diane-charlotte.kermorgant@boursorama.fr
or
Publicis Consultants
Press Relations
Stéphanie Tabouis, +33 6 05 84 05 03
stephanie.tabouis@consultants.publicis.fr