AFD - 2019 Universal registration document

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:

2019 839 487 352 -150 202 182

2018

Change

NR

Net banking income

646 432 214

193

Overheads on non-banking operations

55

Gross operating income

138

Cost of risk

-67

-83 56 45 13 57

Operating income

146 138

Net income

Minority interests

-10

-22

NET INCOME - GROUP SHARE

172

115

AFD Group’s income for 2019 was €172M (Group share), up €57M compared with 2018. NET BANKING INCOME The contribution of the Group’s various companies to its net banking income (NBI) is as follows:

2019

2018

Change

Net banking income

AFD

682 168

501 150

180

Proparco

18

Fisea

-13

-6

-7

Soderag Sogefom Propasia

0 3 0

0 1 0

0 2 0

5

GROUP TOTAL

839

646

193

NBI amounted to €839M in 2019, up €193M from 2018 due to the combined effect of the following items:

2019

2018

Change

Net banking income

Balance of loans/borrowings

615

557

58

Investment income Net interest provisions

16

8

8

4

-6

10 41 93

Commissions

120

79

Income on instruments at fair value net of currency effects

55 29

-37

Other financial income and expenses

45

-16

GROUP TOTAL

839

646

193

The increase in general expenses was planned in AFD’s 2019 budget, which in turn was up 12% on the 2018 budget. In effect, the budget approved by the Board of Directors estimated operating expenses at €468M, with an estimated out- turn of €464M at year-end related to the implementation of the necessary human and material resources in the context of AFD’s growth. The increase in general expenses is therefore linked to the rise in staff costs, corresponding to the additional workforce and higher external expenses.

The change in NBI is mainly due to the increase in income from financial instruments at fair value through profit or loss net of currency effects (+€93M), improvement in the balance of loans/ borrowings (+€58M) and the increase in fees during the financial year (+€41M). GROSS OPERATING INCOME Gross operating income totalled €352M in 2019 versus €214M in 2018. This €138M increase is the combined result of the sharp rise in NBI (+€193M), which largely offset by the negative impact of the increase in general expenses (+€55M).

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UNIVERSAL REGISTRATION DOCUMENT 2019