Regulatory News:

Boursorama (Paris:BRS):

Banking activity in France: record number of accounts opened

  • 18,286 new current accounts and 14% increase in the number of accounts to 780,749
  • Strong growth in housing loan production, +63% to ?171m
  • Nearly 460,000 customers in France, +13%

Brokerage: 9% growth in the number of orders traded at group level

  • Decrease in traded volumes in Q2-13: Deutsche Börse: -22%; Euronext Paris: -21%; LSE: -8%;
  • 1,325,166 orders executed at group level, +9%

Boursorama Banque: 100% mobile bank thanks to the Responsive Web Design technology

  • A flexible, identical user experience, regardless of the device used: PC, Smartphones, tablets

Good levels of activity in Germany and Spain, deteriorated situation in the United Kingdom

Group gross operating income guidance maintained at end 2013 ? -20/25%

                                   
In ?m       Q2 2012       Q2 2012      

?"
Q2-13/

Q2-12

H1 2012       H1 2013      

?"
H1-13/

H1-12

Net banking income 47.5 49.7 5% 101.7 104.2 3%
Total operating expenses (34.1) (36.4) 7% (71.1) (73.9) 4%
Gross operating income 13.5 13.3 -2% 30.6 30.4 -1%
Net cost of risk (0.5) (0.9) nm (0.8) (1.0) 27%
Profit before tax 12.9 12.3 -5% 29.8 29.3 -2%
Group share of net income       8.1       8.6       7% 18.8       17.6       -7%
 

"In a still challenging environment, Boursorama successfully continues to extend its banking offering, simple, inexpensive, available and secure. Today, nearly 460,000 customers rely on us and we are very proud to announce in the second quarter, a new record for opening accounts and housing loan production" statedMarie Cheval, CEO of Boursorama".

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

  • Group performance

In an economic context still lacking direction and characterised by persistently low rates, the group's Net Banking Income (NBI) increased by 5% to reach ?49.7 million. Brokerage revenues remained stable (9% increase in orders traded at the group level), despite a decrease in volumes executed on European stock exchanges. The media activity in France jumped thanks to the growth in financial and corporate advertising.

Within a context of strong business development, operating expenses increased by 7% to ?36.4 million. The increase is mainly due to the ongoing process enhancement plan in the United Kingdom. Other expenses (real estate and IT costs) increased due to the organic growth. As a result, Gross Operating Income (GOI) is flat at ?13.3 million. The Group Share of Net Income of the second quarter 2013 reached ?8.6 million, up 7% (including an excess tax reversal of ?1.7 million made by the German tax administration).

Over the first half of 2013, the group Net banking income rose 3% to ?104.2 million. Gross operating income was flat at ?30.4 million and the Group share of net income was down 7% at ?17.6 million.

Assets under management increased by 11% to reach ?17.1 billion.

  • France
In ?m       Q2 2012       Q2 2012      

?"
Q2-13/

Q2-12

       H1 2012       H1 2013      

?"
H1-13/

H1-12

Net banking income       36.8       38.9       6% 79.4       83.1       5%
Total operating expenses (23.3) (24.8) 7% (49.4) (51.7) 5%
Gross operating income 13.6 14.1 4% 30.0 31.4 5%
Net cost of risk (0.5) (0.9) nm (0.8) (1.0) 32%
Profit before tax 13.0 13.2 1% 29.2 30.4 4%
Group share of net income       8.4       8.5       2% 18.7       19.6       5%

The France net banking Income in the second quarter 2013 amounted to ?38.9 million (+6%), benefitting from the solid commercial momentum of the banking business. It was nonetheless down 12% compared to the first quarter 2013 due to a lower number of orders processed (-15%) and the negative impact of low rates on the interest margin.

  • Banking NBI: ?24.5 million (+8%), or 63% of NBI France
  • Brokerage NBI: ?11.3 million (-2%), or 29% of NBI France
  • Internet portal revenues: ?3.1 million (+16%), or 8% of NBI France

For the second quarter 2013, operating expenses rose 7% to ?24.8 million. GOI reached ?14.1 million (+4%) and the group share of net income amounted to ?8.5 million (+2%).

  • Banking activity

Accounts opening at a faster rate, nearly 460,000 clients in France (+13%)

During the second quarter 2013, 18,286 new current accounts were opened (+26%); it is a new record after the one registered in the first quarter (17,340). Strengthened by this commercial momentum, Boursorama Banque has confirmed its status as the first online bank in terms of brand awareness, as evidenced by the strong increase in Top of Mind scores (29% vs. 15%) and spontaneous awareness (43% vs. 30%)1.

The increase in client franchise comes with higher balance sheet deposits (+11%) to ?3.7 billion: current account deposits grew by 13% to ?805 million, bank savings account deposits (CSL, LDD, Livret A, etc) also increased by 13% to ?2.1 billion and trading account deposits grew by 3% to ?717 million.

With ?171 million in housing loan production (+63%) in a still declining market2 and the good start of the personal loan offering (?6 million in production), the second quarter 2013 once again underpinned the success of Boursorama online credit offerings.

Boursorama Banque: the first bank to offer a 100% mobile subscription

With the Responsive Web Design (RWD) technology, Boursorama innovates to accompany its customers in their daily life: the information portal and the banking site have now a similar content, regardless of the access device (PC, Smartphone, Tablet). Boursorama's client accesses to all the information available on the boursorama.com website and to the full range of banking products and services, in a simple and legible way in any situation.

Boursorama.com confirms its position as number 1 for economic and financial website information and is the 7th most visited site in France, all information sites combined, with 29 million monthly visits and 286 million pages viewed each month3.

1 Source: Smart Test AEGIS Media, baromètre image notoriété, secteur banque en ligne. June/January 2013 comparison
2 Market down 2% - Source: Observatoire Crédit Logement/CSA; Monthly report, June 2013.
3 Source: Web traffic statistics reported by the OJD, average of 1st half 2013.

  • International
  • In the UK, the number of clients stood at 134,000, deposits were up 6% to ?655 million using constant exchange rates, while the volume of orders executed increased by 2% to 221,752 orders. The NBI was down 25% to ?4.0 million for the second quarter 2013; mainly due to constraints on the investment of Client Money deposits. General expenses increased significantly (+27%) following the roll-out of the process improvement plan and the internalisation of the IT infrastructure. As a result, the group share of net income amounted to -?2.0 million this quarter.
  • In Spain, business progressed significantly: the number of clients stood at 42,000 (+12%) and the number of orders executed registered a record increase of 44%, with nearly 85,000 orders executed; balance sheet deposits grew strongly (+39%) to ?106 million. Self Bank still benefits from a growing brand image for its brokerage and online banking businesses. In the second quarter 2013, the NBI was up 27% to ?2.3 million and operating expenses were flat at ?1.9 million. The group share of net income was positive at ?0.2 million.
  • In Germany, business increased too with roughly 48,000 clients (+11%) and 335,000 orders processed (+42%). The NBI of the second quarter 2013 increased by 25% to ?4.5 million, thanks to a strong number of orders executed. The brokerage business benefitted from the successful launch of the new CFD offering. The performances of the OnVista portal business were, however, below expectations. The group share of net income benefitted from an exceptional item (excess tax reversal made by the tax administration) and reached ?1.9 million.

*********

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

Quarterly consolidated income statement*

      Q2 2012       Q2 2013
 
In ?m       Group       France       UK       Germany       Spain       Group       France       UK       Germany       Spain
Net Banking Income       47.5       36.8       5.3       3.6       1.8       49.7       38.9       4.0       4.5       2.3
Total operating expenses       (34.1)       (23.3)       (4.6)       (4.2)       (1.9)       (36.4)       (24.8)       (5.9)       (3.8)       (1.9)
Gross operating income       13.5       13.6       0.6       (0.6)       (0.1)       13.3       14.1       (1.9)       0.7       0.4
Net cost of risk (0.5)       (0.5)       0.0       0.0       0.0 (0.9)       (0.9)       0.0       0.0       0.0
Profit before tax       12.9       13.0       0.6       (0.6)       (0.1)       12.3       13.2       (2.0)       0.7       0.4
Group share of net income       8.1       8.4       0.4       (0.7)       (0.1)       8.6       8.5       (2.0)       1.9       0.2

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Half year consolidated income statement*

      H1 2012       H1 2013
 
In ?m       Group       France       UK       Germany       Spain       Group       France       UK       Germany       Spain
Net Banking Income       101.7       79.4       10.8       7.7       3.7       104.2       83.1       8.3       8.3       4.5
Total operating expenses       (71.1)       (49.4)       (9.4)       (8.5)       (3.8)       (73.9)       (51.7)       (10.7)       (7.7)       (3.8)
Gross operating income       30.6       30.0       1.4       (0.8)       (0.1)       30.4       31.4       (2.4)       0.6       0.7
Net cost of risk (0.8)       (0.8)       0.0       0.0       0.0 (1.0)       (1.0)       0.0       0.0       0.0
Profit before tax       29.8       29.2       1.4       (0.8)       (0.1)       29.3       30.4       (2.4)       0.6       0.7
Group share of net income       18.8       18.7       0.9       (0.8)       0.0       17.6       19.6       (4.3)       1.9       0.4

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Business indicators

Number of executed orders       Q1-12       Q2-12       Q3-12       Q4-12       2012       Q1-13       Q2-13
Group       1,548,513       1,213,216       1,173,713       1,137,532       5,072,974       1,417,097       1,325,166
France 945,468 701,323 687,535 665,870 3,000,196 804,185 683,555
United Kingdom 255,189 216,731 189,207 192,114 853,241 237,244 221,752
Germany 288,267 236,523 232,892 226,680 984,362 294,900 335,322
Spain       59,589       58,639       64,079       52,868       235,175       80,768       84,537

 

Number of new accounts       Q1-12       Q2-12       Q3-12       Q4-12       2012       Q1-13       Q2-13
Group 45,309 37,077 34,584 38,681 155,651 41,429 38,999
France 35,724 30,672 28,449 32,272 127,117 34,286 33,084
Current accounts 16,983 14,531 12,831 14,811 59,156 17,340 18,286
Savings and other accounts 13,350 11,216 11,387 11,173 47,126 10,482 8,928
Life insurance and MF 1,207 1,689 1,682 2,925 7,503 2,642 2,984
Trading accounts 4,184 3,236 2,549 3,363 13,332 3,822 2,886
United Kingdom 5,682 3,044 2,338 2,284 13,348 1,033 427
Germany 1,368 1,009 1,354 1,835 5,566 2,749 1,788
Spain       2,535       2,352       2,443       2,290       9,620       3,361       3,700

 

Total number of accounts       Q1-12       Q2-12       Q3-12       Q4-12       2012       Q1-13       Q2-13
Group 987,135 998,704 1,015,319 1,040,801 1,040,801 1,068,900 1,096,641
France 658,559 683,590 706,086 729,597 729,597 754,824 780,749
Current accounts 232,172 244,716 255,449 268,167 268,167 283,416 299,586
Savings and other accounts 150,376 160,232 170,077 179,368 179,368 187,751 194,763
Life insurance and MF 125,207 126,269 127,286 127,915 127,915 129,699 131,762
Trading accounts 150,804 152,373 153,274 154,147 154,147 153,958 154,638
United Kingdom 227,658 212,729 204,612 203,681 203,681 202,281 200,099
Germany 41,532 40,999 41,258 42,257 42,257 44,270 45,254
Spain       59,386       61,386       63,363       65,266       65,266       67,525       70,539

 

Outstandings in ?m

       Q1-12       Q2-12       Q3-12       Q4-12       2012       Q1-13       Q2-13
Balance Sheet deposits 4,011 4,152 4,310 4,274 4,274 4,353 4,580
Trading accounts 1,462 1,490 1,602 1,530 1,530 1,478 1,557
Current accounts 651 718 722 746 746 751 810
Savings and other accounts 1,899 1,944 1,986 1,998 1,998 2,124 2,213
Mutual Funds 1,364 1,316 1,400 1,413 1,413 1,526 1,464
Life Insurance 2,479 2,472 2,542 2,572 2,572 2,672 2,712
Securities 7,878 7,472 8,041 8,170 8,170 8,430 8,317
Total AUA       15,732       15,411       16,293       16,430       16,430       16,980       17,073
 

NBI France by activity

In ?m       Q1-12       Q2-12       Q3-12       Q4-12       2012       Q1-13       Q2-13
Total NBI France       42.6       36.8       38.5       40.6       158.5       44.2       38.9
Banking 24.4 22.6 25.8 27.3100.0 29.1 24.5
Brokerage 15.7 11.6 10.8 10.348.4 13.0 11.3
Internet Portal       2.4       2.7       1.9       3.0       10.0       2.1       3.1
 

Balance sheet at 30 June 2013*

In ?m                                        
ASSETS                 LIABILITIES                
      31/03/2013       30/06/2013       31/03/2013       30/06/2013
Customer loans 2,135       2,254 Customer deposits 3,851       4,080
Bank loans (including cash and central banks) 1,461 1,524 Bank liabilities and debt 115 158
Other assets 1,091 1,186 Other liabilities 195 200
Non current assets and goodwill 264 266 Shareholders' equity 790 792
Total assets       4,951       5,230 Total liabilities       4,951       5,230

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Regulatory capital, RWA and Basel II solvency ratios

In ?m       31/03/2013       30/06/2013
Group share of consolidated equity 643.8       644.6
Minority interest 26.8 27.1
Intangibles, Goodwills (239.2) (241.1)
Complementary adjustments - AFS (34.7) (28.6)
Equity 396.8 402.0
Subordinated debt 120.0 120.0
Total equity 516.8 522.0
RWA credit risk 933.0 969.7
RWA market risk 0.0 0.0
RWA operational risk 124.0 124.0
Total RWA 1,057.0 1,093.7
Tier 1 37.5% 36.8%
Global solvency ratios 48.9%       47.7%
 

Boursorama, part of the Société Générale Group, is a major player in online banking in Europe with more than 640,000 customers, 1,040,801 direct accounts and total assets under management of 16.4bn euros at end 2012. In France, Boursorama is the online bank of reference: more than 425,000 customers, at end 2012, rely on its innovative, simple, inexpensive and secure bank offering. Its portal, www.boursorama.com, is the leading financial and economic online information website. Boursorama is also active in the United Kingdom and in Spain in online banking, under the respective brands Selftrade and Self Bank. In Germany, Boursorama is a major player in brokerage and in financial and economic online information, through its brand OnVista.

Boursorama is listed on NYSE Euronext Paris- compartment B- ISIN: FR0000075228 (BRS) - Reuters: FMTX.LN - Bloomberg BRS FP.

For all information on Boursorama, go to: www.groupe.boursorama.fr

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