The annual profit of the Credit Mutuel soaring
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Crédit Mutuel in 2009 reached a very high profit rise to 1.83 billion euros, compared to 440 million euros in 2008, thanks to improved financial markets, according to a statement released Wednesday.The year 2009 was "satisfactory and places us in terms of results at the 3rd largest French banks," commented Stephen Pflimlin, chairman of Crédit Mutuel.
Net banking income (GNP, equivalent to sales) increased from 61.1% to 13.53 billion euros, thanks to new acquisitions, and the gross operating income has been multiplied by 3 to 5 , 2 billion euros.
An enhanced financial strength
The group has strengthened its financial strength in 2009 with capital of 30 billion euros (20%) and a ratio of Tier One (equity reported to bank liabilities) of 11.8% at December 31 (cons 9.8% a year earlier).
Among the reasons given by management to explain the good results of 2009, the bank cites savings up sharply (+13.7%), a business credit strong (+2.9%) and good results in the insurance, second business group.In this regard, Credit Mutuel is the 1st French bancassurance sector damage, with premiums up 4%, and number 4 in life insurance, with sales up 26%. Credit Mutuel has also expanded abroad in 2009. The bank has bought the German bank Citibank Germany, renamed Targobank.
72% of the turnover of Credit Mutuel is provided by the retail, 9.2% by insurance, 12.7% by the investment bank, 3.5% from asset management and private banking, and 1.8% by other activities.
The bank also notes that the cost of risk has increased significantly (+68%), because "the economic crisis has taken over from the financial crisis" in 2009.