AFD - 2018 Registration document
5
FINANCIAL INFORMATION
Economic presentation of the consolidated financial statements
INTERMEDIATE BALANCES Changes in the intermediate balances over the last two financial years are as follows:
2017
Change
2018
NR
Net banking income
646 432 214
755 388 367
-109
Overheads on non-banking operations
45
Gross operating income
-154
Cost of risk
-67
-12
-55
Operating income
146 138
355 332
-209 -195
Net income
Minority interests
-22
-20
-3
NET INCOME - GROUP SHARE
115
313
-198
AFD Group’s income for 2018 was €115M (Group share), down €198M compared with 2017. NET BANKING INCOME The contribution of the Group’s various companies to its net banking income (NBI) is as follows:
2017
Change
2018
Net banking income
AFD
501 150
620 143
-119
Proparco
7 4 0
Fisea
-6
-10
Soderag Sogefom Propasia
0 1 0
0 2 0
-1
0
GROUP TOTAL
646
755
-109
NBI amounted to €646M in 2018, down €109M from 2017 due to the combined effect of the following items:
2017
Change
2018
Net banking income
Balance of loans/borrowings
557
550
7
Investment income Net interest provisions
8
24
-16
-6
-8
3 8
Commissions
79
71 82 36
Income on instruments at fair value net of currency effects
-37
-120
Other financial income and expenses
45
9
GROUP TOTAL
646
755
-109
The change in NBI is mainly due to the fall in income from financial instruments at fair value through profit or loss, net of currency effects (-€120M). This is linked to the introduction of IFRS 9, creating additional volatility with a new loan portfolio and associated hedges which are now measured at fair value through profit or loss. GROSS OPERATING INCOME Gross operating income totalled €214M in 2018 versus €367M in 2017. The €154M decrease is the combined result of the fall in NBI (-€109M), coupled with the negative impact of an increase in non-banking operating expenses (+€45M). The increase in non-banking operating expenses was planned in AFD’s 2018 budget, which in turn was up 13% on the 2017
budget. In effect, the budget approved by the Board of Directors estimated operating expenses at €418M, with an estimated out- turn of €417M at year-end related to the implementation of the necessary human and material resources in the context of AFD’s growth. The increase in non-banking operating expenses is therefore linked to the rise in staff costs, corresponding to the additional workforce and higher external expenses (extensive need for consultants and various assignments).
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www.afd.fr
REGISTRATION DOCUMENT 2018
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