Regulatory News:

Boursorama (Paris:BRS):

Banking activity in France: a record quarter in a difficult economic environment

  • 17,340 new current accounts opened
  • Growth in balance sheet deposits to ?3.5 billion, +9%
  • Doubling of housing loan production and launch of the Personal Loan

Online brokerage: good start of the year thanks to the rebound of equity markets

  • Increase in volumes traded in Q1 2013 vs. Q4 2012: Euronext Paris: +15%; Deutsche Börse: +14%; LSE: +12% but down vs. Q1 2012: Deutsche Börse: -14%; Euronext Paris and LSE: -9%
  • 1.4 million orders executed for the Boursorama group in Q1 2013, up 25% from Q4 2012 but down 8% versus Q1 2012

Contrasted situations abroad

  • United Kingdom: poor results and a process enhancement plan underway
  • Good results in Germany and Spain

2013 outlook

  • Proactive growth in banking activity: on the way to 500,000 customers, 75,000 new current accounts by the end of the year, and development of credit
  • Process enhancement plan underway in the United Kingdom
  • Decline expected of the 2013 group results: a decline of group GOI around 20% to 25% versus 2012
  • Investment and innovation to continue the on line banking growth in France
In ?m   Q1 2012   Q1 2013  

?"
Q1-13/

Q1-12

Net banking income 54.2   54.6   1%
Total operating expenses (37.0) (37.5) 1%
Gross operating income 17.1 17.1 0%
Net cost of risk (0.3) (0.1) -67%
Profit before tax 16.8 17.0 1%
Group share of net income 10.7   9.0   -17%

Commenting on the release of the first quarter 2013 results, Marie Cheval, Chief Executive Officer of Boursorama stated: "Boursorama Banque good performance in France confirms that our simple, complete, cheap and 100% online offering is a perfect fit for new customers' behaviours. We want to reach 500,000 customers by year end 2013."

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

  • Group performance

In first quarter 2013, the Boursorama group posted a Net Banking Income (NBI) of ?54.6 million, up 1%, benefiting from the good performance of the banking activity in France and the rebound observed in the brokerage activity compared with fourth quarter 2012 (number of orders processed for the group up 25% at 1.4 million).

Operating expenses were stable at ?37.5 million (+1%), yielding a Gross Operating Income (GOI) of ?17.1 million, unchanged compared with first quarter 2012. Cost of risk remains low: ?0.1 million.

The 17% decline in the Group Share of Net Income to ?9.0 million is explained primarily by a reduction in deffered tax assets in the United Kingdom.

  • France
In ?m   Q1 2012   Q1 2013  

?"
Q1-13/

Q1-12

Net banking income 42.6   44.2   4%
Total operating expenses (26.2) (26.9) 3%
Gross operating income 16.4 17.3 5%
Net cost of risk (0.3) (0.1) -58%
Profit before tax 16.2 17.2 6%
Group share of net income 10.3   11.1   7%

NBI for France for first quarter 2013 amounted to ?44.2 million, up 4%.

  • Banking NBI: ?29.1 million (+19%), or 66% of NBI France;
  • Brokerage NBI: ?13.0 million (-17%), or 29% of NBI France;
  • Internet portal revenues: ?2.1 million (-14%), or 5% of NBI France;

Operating expenses reached ?26.9 million, up 3%, while the net cost of risk decreased sharply to ?0.1 million (-58%). Boursorama thus achieved good operational performance with a 5% increase in GOI to ?17.3 million and a 7% increase in the group share of net income to ?11.1 million.

Banking activity achieved a record quarter in a difficult economic environment

During first quarter 2013, the client franchise continued to grow: the number of new current accounts opened reached a record level at 17,340, and 10,482 bank savings accounts were also opened.

The number of current accounts was up 22% at 283,416, while the number of customers increased 13% to 441,013.

The continued development of the banking activity was accompanied by a 9% increase in balance sheet deposits to ?3.5 billion. Current account deposits grew by 15% to ?747 million, and bank savings account deposits increased 11% to ?2.1 billion, including a doubling of Livret A and LDD deposits.

First quarter 2013 was also characterised by the excellent performance of the Life Insurance offering: gross inflows reached ?84 million (+36%), including 27% in account units. The new "Euro Exclusive" fund confirmed its attractiveness and already represents 20% of the quarterly inflows of Euro funds.

A credit offering for all customers' needs

During the quarter, Boursorama enriched its credit offering: after housing loans, with rates still among the market's most competitive1, Boursorama Banque launched at the end of 2012 the Loan against Securities, which provides access to a "credit Lombard" offering at 2.25%. Also, a new consumer credit offering was proposed at the very attractive rate of 3.40%2.

Boursorama Banque's customers now have a full range of very well positioned credit offerings that are fully accessible online through a simple, quick and innovative process.

This offering confirmed its attractiveness for customers: first quarter 2013 was thus marked by record housing loan production: +97% to ?171 million, while the national market was down 23%3.

In total, outstanding loans grew 21% to ?1.9 billion.

  • International
  • In the United Kingdom, Selftrade took a break in recruiting new customers in order to focus its resources on improving its processes in agreement with the English regulator. In addition to these investments will be those required to equip Selftrade with its own IT infrastructure. In addition, regulatory changes regarding the procedures for managing Client Money deposits and a reduction in deferred tax assets also had effects on the entity's results. In total, the group share of net income amounted to -?2.3 million. No improvement is expected by year end 2013.
  • In Germany, the recovery of the brokerage activity (number of orders executed up 30% compared with fourth quarter 2012) and the initial positive effects of the restructuring in fourth quarter 2012 (17% decrease in operating costs) allowed OnVista to post earnings at breakeven. OnVisa also enriched its product offering with the launch of a CFD offering.
  • In Spain, Self Bank saw a record level of activity on its online brokerage offering (number of orders executed up 36%). The 15% increase in NBI and rigorous management of operating expenses yielded a positive group share of net income of ?0.2 million.
  • Group Balance sheet

A 2% increase of balance sheet to ?5.0bn was registered at end march 2013. The Group Loan to Deposit ratio was up to 55% compared with 52% in March 2012. It was 60% in France. The Tier One ratio is at 37.5%. The management of housing loan growth generates ALM revenues.

  • Outlook 2013
  • Proactive growth in banking activity in France
    • On the way to 500,000 customers and 75,000 new current accounts by the end of the year
    • Development of credit
  • Process enhancement plan underway in the United Kingdom
  • Expected decline of group results in 2013
    • Group GOI ? -20/25% (environment unchanged)
  • Investment and innovation to continue the online banking growth in France

*********

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

  • Appendix

Business indicators

Number of executed orders   Q1-12   Q2-12   Q3-12   Q4-12   2012   Q1-13
Group   1,548,513   1,213,216   1,173,713   1,137,532   5,072,974   1,417,097
France 945,468 701,323 687,535 665,870 3,000,196 804,185
United Kingdom 255,189 216,731 189,207 192,114 853,241 237,244
Germany 288,267 236,523 232,892 226,680 984,362 294,900
Spain   59,589   58,639   64,079   52,868   235,175   80,768
 
Number of new accounts   Q1-12   Q2-12   Q3-12   Q4-12   2012   Q1-13
Group 45,309 37,077 34,584 38,681 155,651 41,429
France 35,724 30,672 28,449 32,272 127,117 34,286
Current accounts 16,983 14,531 12,831 14,811 59,156 17,340
Savings and other accounts 13,350 11,216 11,387 11,173 47,126 10,482
Life insurance and MF 1,207 1,689 1,682 2,925 7,503 2,642
Trading accounts 4,184 3,236 2,549 3,363 13,332 3,822
United Kingdom 5,682 3,044 2,338 2,284 13,348 1,033
Germany 1,368 1,009 1,354 1,835 5,566 2,749
Spain   2,535   2,352   2,443   2,290   9,620   3,361
 
Total number of accounts   Q1-12   Q2-12   Q3-12   Q4-12   2012   Q1-13
Group 987,135 998,704 1,015,319 1,040,801 1,040,801 1,068,900
France 658,559 683,590 706,086 729,597 729,597 754,824
Current accounts 232,172 244,716 255,449 268,167 268,167 283,416
Savings and other accounts 150,376 160,232 170,077 179,368 179,368 187,751
Life insurance and MF 125,207 126,269 127,286 127,915 127,915 129,699
Trading accounts 150,804 152,373 153,274 154,147 154,147 153,958
United Kingdom 227,658 212,729 204,612 203,681 203,681 202,281
Germany 41,532 40,999 41,258 42,257 42,257 44,270
Spain   59,386   61,386   63,363   65,266   65,266   67,525

 

Outstandings in ?m

   Q1-12   Q2-12   Q3-12   Q4-12   2012   Q1-13
Balance Sheet deposits 4,011 4,152 4,310 4,274 4,274 4,353
Trading accounts 1,462 1,490 1,602 1,530 1,530 1,478
Current accounts 651 718 722 746 746 751
Savings and other accounts 1,899 1,944 1,986 1,998 1,998 2,124
Mutual Funds 1,364 1,316 1,400 1,413 1,413 1,526
Life Insurance 2,479 2,472 2,542 2,572 2,572 2,672
Securities 7,878 7,472 8,041 8,170 8,170 8,430
Total AUA   15,732   15,411   16,293   16,430   16,430   16,980

Quarterly consolidated income statement*

  Q1 2012   Q1 2013
In ?m   Group   France   UK   Germany   Spain   Group   France   UK   Germany   Spain
Net Banking Income   54.2   42.6   5.5   4.1   1.9   54.6   44.2   4.4   3.8   2.2
Total operating expenses   (37.0)   (26.2)   (4.7)   (4.2)   (1.9)   (37.5)   (26.9)   (4.8)   (3.9)   (1.9)
Gross operating expenses   17.1   16.4   0.8   (0.1)   0.0   17.1   17.3   (0.4)   (0.1)   0.3
Net cost of risk (0.3)   (0.3)   0.0   0.0   0.0 (0.1)   (0.1)   0.0   0.0   0.0
Profit before tax   16.8   16.2   0.8   (0.1)   0.0   17.0   17.2   (0.4)   (0.1)   0.3
Group share of net income   10.7   10.3   0.5   (0.1)   0.0   9.0   11.1   (2.3)   0.0   0.2

*Non audited. Financial statements reviewed by the Board of Directors on May 2, 2013.

NBI France by activity

In ?m   Q1-12   Q2-12   Q3-12   Q4-12   2012   Q1-13
Total NBI France   42.6   36.8   38.5   40.6   158.5   44.2
Banking 24.4 22.6 25.8 27.3100.0 29.1
Brokerage 15.7 11.6 10.8 10.348.4 13.0
Internet Portal   2.4   2.7   1.9   3.0   10.0   2.1

Balance sheet at 31 March 2013*

In ?m            
ASSETS         LIABILITIES        
  31/12/2012   31/03/2013   31/12/2012   31/03/2013
Customer loans 2,040   2,135 Customer deposits 3,800   3,851
Bank loans (including cash and central banks) 1,401 1,461 Bank liabilities and debt 77 115
Other assets 1,133 1,091 Other liabilities 185 195
Non current assets and goodwill 264 264 Shareholders' equity 776 790
Total assets   4,838   4,951 Total liabilities   4,838   4,951

*Non audited. Financial statements reviewed by the Board of Directors on May 2, 2013.

Regulatory capital, RWA and Basel II solvency ratios

In ?m   31/12/2012   31/03/2013
Group share of consolidated equity 629.4   643.8
Minority interest 26.7 26.8
Intangibles, Goodwills (239.0) (239.2)
Complementary adjustments - AFS (29.7) (34.7)
Equity 387.5 396.8
Subordinated debt 120.0 120.0
Total equity 507.5 516.8
RWA credit risk 830.4 933.0
RWA market risk 0.0 0.0
RWA operational risk 107.0 124.0
Total RWA 937.4 1,057.0
Tier 1 41.3% 37.5%
Global solvency ratios 54.1%   48.9%

About Boursorama

Founded in 1995, Boursorama is a major player in online banking in Europe 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 part of the Société Générale Group and is present in four countries. In France, it is market leader in online financial information with the www.boursorama.com portal and the France leading online bank 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

1 APR of 3.06% over 14 years fixed at 31 March 2013, including insurance.

2 Offer valid for any individual or joint Boursorama Personal Loan application completed and signed before 31/05/2013 for a term of less than 36 months, reserved for anyone who has been a Boursorama customer for at least three months and holds a Boursorama bank card.

3 National production down 23%; source: Observatoire Crédit Logement CSA - Monthly report, March 2013.

Press Contacts:
Boursorama
Press and Investor Relations
+33 1 46 09 58 10
service.comm@boursorama.fr
or
Publicis Consultants
Press Relations
Stéphanie Tabouis, +33 6 03 84 05 03
stephanie.tabouis@consultants.publicis.fr