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1. Executive Summary
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TABLE OF CONTENTS
1. Executive Summary 2
2. Market Overview 8
3. Market Data 10
4. Market Segmentation 11
5. Market Outlook 12
7. Competitive Landscape 23
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7.4. How have leading companies managed emerging competition from challengers/disruptors?...24
8. Company Profiles 26
9. Macroeconomic Indicators 46
Appendix 48
Methodology............................................................................................................................................ 48
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LIST OF TABLES
Table 1: France retail savings & investments market value: $ billion, 2015–19 10
Table 2: France retail savings & investments market geography segmentation: $ billion, 2019 11
Table 3: France retail savings & investments market value forecast: $ billion, 2019–24 12
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LIST OF FIGURES
Figure 1: France retail savings & investments market value: $ billion, 2015–19 10
Figure 2: France retail savings & investments market geography segmentation: % share, by value, 201911
Figure 3: France retail savings & investments market value forecast: $ billion, 2019–24 12
Figure 4: Forces driving competition in the retail savings & investments market in France, 2019 13
Figure 5: Drivers of buyer power in the retail savings & investments market in France, 2019 14
Figure 6: Drivers of supplier power in the retail savings & investments market in France, 2019 16
Figure 7: Factors influencing the likelihood of new entrants in the retail savings & investments market in
France, 2019 18
Figure 8: Factors influencing the threat of substitutes in the retail savings & investments market in France,
2019 20
Figure 9: Drivers of degree of rivalry in the retail savings & investments market in France, 2019 21
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2. Market Overview
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government reaped around EUR 2.1bn ($2.3bn) from selling shares in its lottery making it the largest IPO since French
glass bottle maker Verallia went public in October 2019.
The deposits segment was the market's most lucrative in 2019, with total investments of $1,743.8bn, equivalent to
71.5% of the market's overall value. The equities segment contributed investments of $327.4bn in 2019, equating to
13.4% of the market's aggregate value.
Bank deposits are the most common form of financial investment, therefore it is unsurprising that the deposit
segment is the most valuable retail savings and investment segment. However, low interest rates on deposit accounts
has made this form of saving less attractive to consumers. By December2019, average interest rate on bank deposits
fell by 5 basis points over a year from 0.63% to 0.58%. despite lower interest returns in comparison to mutual funds,
equity investments and bond investments, bank deposits are more secure and consumers are less at risk of losing
capital making them the preferred way to ensure financial security.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 1.9% for the five-year period
2019 - 2024, which is expected to drive the market to a value of $2,676.2bn by the end of 2024. Comparatively, the
German and UK markets will grow with CAGRs of 2.2% and 1.9% respectively, over the same period, to reach
respective values of $4,464.6bn and $3,210.0bn in 2024.
Fears surrounding the impact of COVID-19 have significantly impacted the global economy and is expected to have a
negative effect on the retail savings and investment market the outbreak could potential cause the market to contract
0.6% in 2020 as the economy has come to a standstill thanks to the impacts of COVID-19. Retail equity and mutual
fund holdings are expected to take the brunt of the economy's slowdown as consumers become more cautious when
it comes to investing in companies which could struggle as a consequence of the pandemic.
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3. Market Data
Table 1: France retail savings & investments market value: $ billion, 2015–19
Figure 1: France retail savings & investments market value: $ billion, 2015–19
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4. Market Segmentation
Table 2: France retail savings & investments market geography segmentation: $ billion, 2019
Geography 2019 %
United States 43,947.6 37.9
Germany 4,005.9 3.5
United Kingdom 2,927.1 2.5
France 2,440.3 2.1
Italy 2,382.3 2.1
Rest Of The World 60,130.4 51.9
Figure 2: France retail savings & investments market geography segmentation: % share, by value, 2019
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5. Market Outlook
Table 3: France retail savings & investments market value forecast: $ billion, 2019–24
Figure 3: France retail savings & investments market value forecast: $ billion, 2019–24
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6.1. Summary
Figure 4: Forces driving competition in the retail savings & investments market in France, 2019
Rivalry in the French retail saving and investment market is strong. There are a large number of financial service
providers competing with each other by providing attractive interest on their saving and investment products,
although the countries low interest environment has limited the ability of banks to offer competitive rates.
Digitalization has created new ways in which banks can offer their services to consumers, generally by becoming more
consumer friendly.
Market uncertainty caused by the COVID-19 pandemic could lead to market consolidation and will weaken deposits,
savings and investment volumes in 2020. The virus will also weaken the threat of new entrants as investors become
more cautious with their spending and consumers are less likely to make savings deposits. Financial technology
companies are the most likely companies to infiltrate the market by offering innovative customer centric saving and
investment products, however entry could become tougher as traditional banks expand their digital capabilities.
Financial institutions are the key players within the retail saving and investment market. The companies who operate
inside the investments and savings market offer products and services such as deposit accounts, investment funds,
and wealth management solutions. Other market players include companies that allow individuals to trade directly in
bonds and equities (e.g. online trading websites). Since this analysis concentrates on individual consumers, as
opposed to institutional investors, buyer power is weakened due to the relatively small size of customers in relation to
market players.
Substitutes to the four classes of savings and investments considered in this profile include life insurance and pension
schemes, investment in real estate – particularly homes - and alternative investments, such as hedge funds.
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Financial institutions are the key players within the retail saving and investment market. The companies who operate
inside the investments and savings market offer products and services such as deposit accounts, investment funds,
and wealth management solutions. Other market players include companies that allow individuals to trade directly in
bonds and equities (e.g. online trading websites). Since this analysis concentrates on individual consumers, as
opposed to institutional investors, buyer power is weakened due to the relatively small size of customers in relation to
market players. Moreover, the large number of potential customers present within this market weakens buyer power
further, since the loss of one customer is unlikely to have a significant impact on a company’s operations. In addition,
saving and investing in finds is considered an essential service by most.
Almost all citizens in France have had some form of savings account and those that don’t are likely to have
investments in bonds equities or mutual funds. As saving is beneficial to most buyer power is significantly reduced
however alternative investment options can mitigate this.
The 2008 economic crisis has led to an erosion of customers' trust in banks as safe places to deposit savings, and has
thus reduced the number of buyers, particularly for those banks that were most affected. Moreover, their reputation
is quite vulnerable to corruption scandals and misconduct practices. For example, in July 2014, BNP Paribas pleaded
guilty to two criminal charges and agreed to pay almost $9bn to resolve accusations that it violated US sanctions
against Sudan, Cuba, and Iran. It is also serving a five year 'probation' in the US for these activities. Additionally, Credit
Agricole was fined approximately $130m for being one of the accused banking firms to have engaged in fixing Euribor
rates based on which consumer loan products are based. Most recently UBS Group AG was ordered to pay more than
EUR4.5bn ($5.1bn) by a Paris court that found the bank guilty of transferring funds of wealth French clients into Swiss
bank accounts. Shares of USB fell by 4.8% as a result. Ultimately a history of bank scandals has tinted the public’s trust
in banks and made them more aware of potential misconduct which may and may encourage consumers to switch
accounts. This has increased buyer power
Switching costs vary according to the product in question. For example, in the case of deposit accounts offered by
some players, switching costs are virtually non-existent, and changing an account operator does not cause any
penalties or fees. However, in some other financial institutions, or in the case of different saving and investments
products, switching costs exist. For example, a number of traditional deposit accounts require a notice period before
withdrawals are made, with a penalty being incurred (usually in the form of loss of interest) for early withdrawals.
Some products, such as bonds, are fixed for a specific period of time, ranging from one year to upwards of 50 years.
Should a customer sell their bond before it matures, a transaction fee (a percentage of the total value of the bond)
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will be incurred. If the customer sells during times when interest rates increase, they may have to decrease the price
of their bond in order to find a buyer. In these cases, the bond will be sold at a loss, as sellers will not receive their
entire principal back.
Products and services in this market are strongly differentiated; varying according to returns and risk rates, notice
periods, fixed-term etc. Differentiation by target customer group is also common - for example, packages aimed at
pensioners, students, children etc. Customer loyalty is also a significant factor in this market; with trust in the banking
sector particularly low in recent years following the global financial crash, customers have shown themselves
increasingly likely to switch. Buyers' decisions are dependent on individual circumstances and risk preferences.
However, many retail banks are now able to offer most product ranges meaning that buyers have multiple options.
As the market is considered here to be purely business to consumer (B2C), there is no possibility of financial
institutions integrating forwards or their customers integrating backwards. In concordance buyers lack the capital and
infrastructure to become a player.
Overall, buyer power is moderate.
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A robust data and voice communications infrastructure is becoming increasingly important for the whole financial
services industry, globally, not only to improve relations between industry members but also to connect to their
customers. New products are designed increasingly on this basis.
ICT has now become completely pervasive in all aspects of financial services, both in the B2C market and in the
business to business (B2B) market. Players operating within this market therefore need a reliable and secure ICT
infrastructure in place. Mobile platforms increase the accessibility to managing savings and investments, improve
customer loyalty, increase frequency of transactions, gather customer analytics using AI, and generally improve
customer services. Financial institutions therefore need to adopt premium mobile applications in order to compete
with rival companies thereby increasing the power of suppliers.
In this area supplier power has increased of late. BNP Paribas announced in July 2017 the intention to reform the
retail banking arm of the company to improve profitability. Personnel and IT costs are the largest components of
banks’ total costs and, as such, are important drivers of cost/income ratios. Banks that report the lowest ratios benefit
from the lowest personnel and IT costs. Consequently, those suppliers able to provide sophisticated IT services at the
lowest cost are able to exert more power over the market than used to be the case.
Online equity trading facilities and online banking have been important parts of the savings and investment markets,
developing a raft of new B2B systems for electronic trading, which have come to the fore in recent years. These B2B
systems require high specification connectivity, meaning speed, quality and availability of services. For a major player,
the complexity of its software and hardware requirements means that relatively few suppliers will be able to offer
suitable solutions, and these tend to be large companies, such as IBM or Microsoft. This strengthens the position of
hardware and software suppliers, IT consultants, and internet service providers. The importance of security in this
market means that players do not look outside of a few trusted names to provide their IT solutions, increasing the
supplier power of the active companies.
Infrastructure providers are usually ICT giants: they command very high bargaining power, as few suppliers have the
ability to analyze the complex ICT needs of a major bank and provide necessary solutions. A commitment to one
supplier's product may impose higher switching costs on a market player. One example is the cost of training staff to
use a new software system, which is not easily recovered, if the company later decides to move to a different product.
In this market, there is little chance of players’ backward integration into creating their own IT systems and this
further strengthens the position of suppliers. Market players generally require good alarm systems, often linked
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directly to a security company. Most banks and similar institutions operate extensive branch networks, and also need
key employees with high levels of competence in areas such as finance, investment, and accounting, with staffing
costs correspondingly forming a significant part of total costs for financial institutions.
Supplier power in this market is assessed as strong overall.
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Historically entry into the retail savings and investment market has been immensely difficult, entrants need an
excessive amount of capital in order to cover any losses which may arise from macroeconomic factors and to compete
on the same scale as market leaders. In France large financial institutions such as BNP Paribas, Credit Agricole, Groupe
BPCE and Societe Generale dominate the saving and investment market, these companies have extensive amounts of
capital, strong brand imagery and a well-established infrastructure. The only reasonable means by which a new player
could emerge would be through a major foreign bank buying a smaller French based bank. The economies of scale
needed to offer attractive products could then be achieved. Growth in the French economy improves the chances of
this happening even though the market in the Canada is extremely competitive. Poor economic growth experienced in
2018 could act as a deterrent. Provision of a purely online service, such as facilitating trading in equities, is the most
cost effective option, since both fixed costs and exit costs are considerably lower.
Reputation is pivotal in this market, particularly after the global financial crisis, which undermined trust in financial
institutions. This distrust of existing financial bodies may provide an opening for new banks to enter the market, whilst
the main players are weakened. However, companies that already have the infrastructure in place may find market
entry easier. For example, the French postal service, La Poste, launched its banking service, Banque Postale, at the
beginning of 2007.
Regulation by the Banque de France in France is generally rigorous, and compliance with regulatory demands forms a
barrier to market entry. Regulation tends to be focused on privacy, disclosure, fraud prevention, anti-money
laundering, anti-terrorism, and anti-usury lending. Moreover, in January 2010, the merger of four banking and
insurance supervisory authorities led to the establishment of the Autorité de Contrôle Prudential (ACP), which
operates as an independent supervisor under the auspices of the Banque de France. Since the onset of the financial
crisis in 2008, regulations have tightened further in a bid to prevent further problems emerging in the banking
industry. Furthermore, proposals to change the laws and regulations governing the financial services market are
frequently introduced, making it hard for market players to determine the effect regulation may have on business in
the future.
In times of an uncertain global economic situation, and the recession that has been felt on a global scale, customers
are often less likely to risk their money in products that follow the stock exchange or by investing in company shares.
Many consumers turned to low risk products, where there initial investment and returns are guaranteed, although
very low rates of interest are turning the tables as people look for returns.
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One potential area for entrants is the FinTech space. It is now possible for a financial institution to run purely via an
app and this is certainly the case with deposits as the maintenance of such an account is very low. France is yet to see
the strides seen in the UK, US and Canada in this area, suggesting there is definitely space. Solid uptake of banking
apps from traditional players suggest French consumers do not have an issue with using apps but it remains to be
seen if anybody will look to fill what appears to be a gap. What’s more, incumbents are investing large sums of money
into the digitalization of their own financial services which could weaken the impact emerging fintechs have on the
French market.
Although the market has not achieved the same rates of growth that have been recorded in other developed
countries, steady expansion still makes the market an attractive place to do business, attracting new entrants.
However, a few very large players dominate the market, meaning any new entrant would likely have to be a large
foreign bank able to acquire a smaller player to gain access – the costs of setting up from scratch and then winning a
sizable amount of market share being prohibitively high.
The French retail saving and investment market has demonstrated moderate rate of growth between 2015 – 2019,
rising at a CAGR of 2.9%. However, fluctuations in the performance of the market could deter entrants. for example, in
2017 and 2019 the market experienced strong annual growth of 5.9% and 6.4% respectively however in alternating
years’ growth was not has prominent. Just 0.4% growth was experienced in 2016 and -0.8% in 2018. Uncertainty over
the markets performance each year could discourage financial companies from wanting to infiltrate an unpredictable
market place.
2020 is expected to bring further market uncertainty as a result of the COVID-19 pandemic which has caused the
French government to facilitate an economic lockdown and the closure of industry and business to slow the spread of
the virus. the government quickly introduced a system whereby companies can temporarily put staff on reduced or no
hours while the state picks up all or most of their net wages for unworked time. However, weakened incomes will
result in less consumer capital to invest in savings and investment which will weaken volumes over the year.
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Substitutes to the four classes of savings and investments considered in this profile include life insurance and pension
schemes, investment in real estate – particularly homes - and alternative investments, such as hedge funds. The true
threat of substitution is difficult to pin down here, since there is such a broad range of potential alternatives, and
individual customers' preferences with regard to risk and return differ considerably. For large financial institutions,
these substitutes pose little threat to their business as most leading players offer a diverse range of financial services
including alternatives to saving and investment products.
Wider macroeconomic factors are the primary drivers of investment and savings decisions however; for example
lower interest rates decrease the return on savings in banks and building societies, which may in turn encourage
savers to invest in alternatives such as property, company shares and fixed term bonds. Rates in France are currently
very low, increasing the threat of substitute investments.
Overall, the threat of substitutes is assessed as moderate.
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The major players in this market are all large multinational organizations, whose sheer size works to drive up rivalry.
This rivalry is compounded by the difficulties market players often experience in differentiating themselves from each
other. While each institution typically offers a wide range of products to suit individual consumers, this means that for
each product offered by one bank, a rival likely offers something very similar. While big companies like BNP Paribas,
Societe Generale and Credit Agricole dominate, there are numerous alternative providers for consumers to choose
from.
Established banks, such as BNP Paribas, Societe Generale and Credit Agricole are faced increasing amounts of
competition from the likes of new online low-cost banks such as N26 or Orange bank. Low cost banks are now
expected to have a 5% share of the French market totaling 120 million accounts.
Fixed costs within this market are high, especially for institutions with bricks-and-mortar branches. Exit costs are also
fairly high and include the sunk costs of advertising and brand building, and funding severance packages for laid-off
employees. Both fixed costs and exit costs are considerably lower for players operating solely online, such as internet
share trading sites.
A moderate rate of growth in the French market has worked to alleviate rivalry somewhat in recent years, although
low ECB rates are forcing banks to go to the absolute limit in terms of what returns they can offer.
Historically, competition in the retail saving and investment market has been dictated by interest rates. Financial
service providers offering the most attractive returns for savings, deposits and managed funds will tend to attract the
most customers. However, in recent years, customers’ expectations of what a financial service company should be has
evolved. Consumers are demanding better quality customer service, financial experiences and digital products which
has caused rivalry to increase with leading companies now able to differentiate their products to achieve a
competitive advantage without changing interest rates. It has also led to a dramatic increase in the number of players
in the market as fintechs offering digital savings and investment services create new rivalries in the market space.
In order to improve economic activity in France, the country’s credit supply has increased over the last two years.
Loans for housing and small to medium sized enterprises (SME) have been increasing due to the low-cost of financing
and improved confidence. A low interest rate environment in the Euro Area has driven demand, especially since the
implementation of the quantitative easing (asset-purchase programme) by the European Central Bank in 2015. If
these policies work as intended, economic growth should improve the condition of retail savings and investment
market through wage growth, reducing rivalry.
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An expected tightening of the monetary policy during the forecast period will slow demand for credit, mainly in non-
revolving channels and that is expected to slightly benefit revolving credit. A reduced flow of credit card debt
increases the chances of money being put into retail savings and investment products, but this possibility has been
tempered by growth in debt.
Periods of weak economic growth experienced in 2016 and 2018 increase degree of rivalry within the France retail
saving and investment market. Poor growth means players must compete more vigorously in order to achieve strong
growth themselves and maintain or increase their market share. However, this was offset by strong growth in 2019.
The future of the market looks uncertain with the impacts of the ongoing COVID-19 pandemic still being felt across
the world. Disruption to business operations and domestic income has weakened the financial position of French
households and the retail saving and investment market anticipates weaker volumes of investment as a consequence.
The outbreak could cause the market to consolidate as the country slips into a recession. Some banks and smaller
financial institutions may struggle to operate during a period of economic turmoil.
Rivalry is assessed as moderate overall.
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7. Competitive Landscape
The French retail savings and investment market is dominated by the country’s largest retail banks. These
organizations provide integrated financial services and have acquired the largest number of account holders over a
long period of time which has enabled them to build superior deposit volumes and assets under management to
provide attractive saving and investment options for customers. In recent years, digital banking has revolutionized the
market with online and mobile banks such as Monabanq and Orange bank acquiring customers with easy to use
transparent digital banking platforms. This has resulted in traditional financial institutes accelerating the digitalization
of their own services to maintain their competitive market position.
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acquired 1.8 million customers in France and Italy in 2019. In the same year, Credit Agricole’s customer deposit
balance totaled EUR 856.1bn ($961.9bn) and had EUR 1,794.7bn ($2,016bn) of assets under management.
Groupe BPCE is the second largest banking group in France and performs a full range of banking and insurance
activities, serving 36 million customers worldwide. It provides retail banking and insurance services in France through
its two major cooperative networks, Banque Populaire and Caisse d’Epargne. With Natixis, it also provides Asset &
Wealth Management, Corporate & Investment Banking and Payment services around the world. In 2019, Banque
Populaire increased its number of customers by 1.8% year-on-year to over 5 million and increased the volume of
individual deposits and savings by 5.8% to reach a total of EUR 157bn ($176.4bn). Caisses d’Epargne acquired over
460,000 new individual customers in 2019 and increased retail deposit and saving volumes by 2.4% to EUR 347.7bn
($390.6bn) taking the group’s total up to EUR 504.7bn ($567bn). Natixis is ranked among the world’s leading asset
managers with EUR 934bn ($1,049bn) of assets under management in 2019.
Société General is one of the leading European financial services groups, providing finance services for 31 million
individual clients, businesses and institutional investors around the world. In 2019 the groups French retail customer
deposits grew 4.4% to EUR 210.7bn ($236.7bn). The banks financial savings fell 0.9% to EUR 106.4bn (119.5bn) with
mutual funds dropping 31.0%.
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Although fintechs struggle to compete at the same level as the likes BNP Paribas, Credit Agricole, Groupe BPCE and
Societe Generale. Banking group many have still induced competition between leading players. Blockchain, Big Data,
Cloud, Artificial Intelligence, and Robotics all give online and mobile financial companies a competitive advantage
however they lack the capital and recognition to compete on a large scale. If the market leaders can successfully
adopt this new technology they will be able to improve their products which will intensify the degree of competition
within the market. Traditional banks have also recognized that the development of digital banking services are
essential in attracting younger generations and to prevent emerging fintech companies from becoming competitors in
the future.
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8. Company Profiles
BNP Paribas SA (BNP) is a diversified financial group that provides retail and corporate and institutional banking
solutions. Its retail banking portfolio comprises digital banking, leasing and financing, long-term corporate vehicle
leasing, loans and insurance solutions, savings and investment products, and deposit services and payment cards. It
also offers asset and wealth management, private banking, real estate services, cash management, and factoring
solutions. The group’s corporate and institutional banking solutions include securities services, capital markets,
financing, treasury solutions, structured finance, derivatives, and risk management solutions, and financial advisory.
The group has a presence in Europe, the Middle East and Africa, Asia-Pacific, and the Americas. BNP is headquartered
in Paris, France.
The bank reported interest income of (Euro) EUR35,723 million for the fiscal year ended December 2018 (FY2018), an
increase of 6.4% over FY2017. The net interest income after loan loss provision of the bank was EUR18,298 million in
FY2018, compared to net interest income after loan loss provision of EUR18,284 million in FY2017. In FY2018, the
bank recorded a net margin of 10.2%, compared to a net margin of 10.8% in FY2017.
BNP Paribas SA (BNP) is a diversified financial services provider offering retail and corporate banking, private and
investment banking, and investment solutions. As of December 31, 2018, it had assets of EUR2,044.2 billion, net loans
of EUR765.8 billion, and deposits of EUR876.8 billion.
BNP classifies its operations into three segments: Retail Banking and Services, Corporate and Institutional Banking,
and Other Activities.
As of December 31, 2018, it operated in 72 countries across the Americas, Europe, Africa, the Middle East, and Asia
Pacific.
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Credit Agricole SA (Credit Agricole) is a provider of banking and related financial services. It offers a range of retail and
corporate banking, investment banking, and insurance solutions. Its retail banking portfolio includes savings products,
accounts, debit cards, credit cards; and loans for mortgage, student, vehicle, real estate, agricultural, and personal
needs. The corporate banking comprises business financing, term deposits, treasury management, cash management,
among other services. The company offers investment banking solutions such as asset management, and merger and
acquisition advisory. Credit Agricole also offers insurance for health, death and disability, life, creditor, and property
and casualty risks. It has presence across Europe, the Americas, Africa, the Middle East, and Asia. Credit Agricole is
headquartered in Paris, France.
The bank reported interest income of (Euro) EUR24,817 million for the fiscal year ended December 2018 (FY2018), an
increase of 0.5% over FY2017. The net interest income after loan loss provision of the bank was EUR10,489 million in
FY2018, compared to net interest income after loan loss provision of EUR10,854 million in FY2017. In FY2018, the
bank recorded a net margin of 5.4%, compared to a net margin of 4.8% in FY2017.
Head office: 12 place des Etats-Unis Montrouge cedex, Paris, Ile-de-France, France
Number of Employees: 73346
Website: www.credit-agricole.fr
Financial year-end: December
Ticker: ACA
Stock exchange: Euronext Paris
Credit Agricole SA (Credit Agricole) is a provider of banking and financial services. It offers retail, corporate and
investment banking; insurance; brokerage; structured finance; and private banking. As of December 31, 2018, it had
total assets of EUR1,624.4 billion, total deposits of EUR739.7 billion, and net loans of EUR366.3 billion.
Credit Agricole operates under six segments: Large Customers, Asset Gathering, French Retail Banking-LCL, Specialized
Financial Services, International Retail Banking, and Corporate Centre.
It serves about 51 million customers and has presence in 47 countries in Europe, the Americas, Africa, the Middle East
and Asia. It operated through 10,700 branches including 6,800 branches in France through regional banks, as of
December 31, 2018.
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8.3. BPCE SA
BPCE SA (BPCE) is bankig group that offers a range of commercial banking, insurance, corporate finance, investment
management and financial solutions. It provides loans and credits, demand deposits, savings accounts, regulated
home savings products, life and non life insurance products, debit and prepaid cards, equities, sureties and
guarantees, lease financing and consumer credit to entrepreneurs, local businesses and business owners. The group
offers mergers and acquisition advisory services, strategic and acquisition finance, investment and risk management
services. BPCE also provides online banking contactless payment and payments processing services. The group’s
operations are spanned across Europe, America, Asia-Pacific and Africa. BPCE is headquartered in Paris, France.
BPCE SA (BPCE) offers a range of commercial banking, insurance, corporate finance, investment management, and
financial solutions. It provides a range of loans and credits, demand deposits, savings accounts, regulated home
savings products, life and non-life insurance products, debit and prepaid cards, equities, sureties and guarantees,
lease financing and consumer credit to entrepreneurs, local businesses and business owners in France. As of
December 31, 2018, it had assets of EUR1,273.9 billion, net customer loans of EUR659.3 billion, and customer deposits
of EUR530.3 billion.
BPCE operates four segments: Retail Banking and Insurance, Asset and Wealth Management, Corporate and
Investment Banking, and Corporate Center.
Had nine million cooperative shareholders and served 30 million customers through bank branches with operations
across Europe, Africa and Mediterranean, North and South America, and Asia/Oceania, as of December 31, 2018.
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Societe Generale S.A. (Societe Generale or 'the group') is a European financial services groups. The group is involved in
the provision of a range of financial services, including international retail banking, corporate and investment banking,
asset management, and securities services. Societe Generale is also a major player in the businesses of specialized
financial services and insurance and private banking, and global investment management and services. The group has
operational presence in Europe, Africa and the Middle-East, Asia and Oceania, and the Americas. It is headquartered
in Paris, France.
The bank reported interest income of (Euro) EUR22,678 million for the fiscal year ended December 2018 (FY2018), a
decrease of 4.2% over FY2017. The net interest income after loan loss provision of the bank was EUR11,945 million in
FY2018, compared to net interest income after loan loss provision of EUR9,067 million in FY2017. In FY2018, the bank
recorded a net margin of 8.3%, compared to a net margin of 4.1% in FY2017.
Societe Generale S.A. (Societe Generale or 'the group') is engaged in the provision of a range of financial services,
including retail banking, specialized financial services and insurance, private banking, global investment management
and services, and corporate and investment banking. Societe Generale operates in Europe, Africa, the Middle-East,
Asia, Oceania, and the Americas.
The group operates through four business segments: Global Banking and Investor Solutions, French Retail Banking,
International Retail Banking and Financial Services, and Corporate Centre.
Under the Global Banking and Investor Solutions (GBIS) segment, Societe Generale covers the global activities of
corporate and investment banking, asset and wealth management, and securities services and brokerage. The Societe
Generale Corporate and Investment Banking (SG CIB) has operational presence in Europe, the Middle East, Africa, the
Americas and the Asia-Pacific region. SG CIB offers strategic advisory services to large corporates, financial
institutions, sovereigns, and to the public sector for their development as well as market access to finance this
development. SG CIB also offers services for investors managing savings investments according to set risk/return
targets. SG CIB is further divided into two business lines: global markets, and financing and advisory. The global
market combines the equities and fixed income, currencies and commodities market activities in a single and global
platform, offering a multi-product view and optimized cross-asset solutions. The financing and advisory covers
strategic hedging activities for major customers, mergers and acquisitions advisory services, as well as global finance
activities combining structured financing, vanilla financing, fund-raising (debt or equity), financial engineering and
hedging solutions for issuers. In FY2018, the Global Banking And Investor Solutions segment reported revenues of
EUR8,846 million, which accounted for 35.1% of the company's total revenue.
Industry Profiles
The French Retail Banking segment is formed from the alliance of three complementary brands: Societe Generale, a
leading national bank; Credit du Nord, a group of regional banks; and Boursorama, France’s leading online bank. The
three brands offer products and services suited to the needs of a diversified base of over 11 million individual
customers and more than 810,000 businesses and professional customers. The French networks distribute insurance
products from Sogecap and Sogessur, subsidiaries operating within the International Retail Banking and Financial
Services segment. In FY2017, the French Retail Banking segment reported revenues of EUR7,860 million, which
accounted for 31.2% of the company's total revenue.
The International Retail Banking and Financial Services (IBFS) segment includes the international retail banking
segment and specialized financial services and insurance segment. It comprises of the banking networks and the
consumer finance activities in specialized business lines including insurance; operational vehicle leasing and fleet
management; and vendor and equipment finance. This segment serves individual and business customers in Europe;
Russia; and Africa, Asia, the Mediterranean Basin and Overseas. The international retail banking combines the
international banking networks and consumer finance activities. The international retail banking offers multi-product
financing solutions for individual customers and partner businesses such as car loans available at dealerships and in-
store financing, direct financial solutions for individual customers (via point-of-sale networks, business introducers or
by using customer prospect databases). It operates in Europe, Russia, the Mediterranean Basin, and Sub-Saharan
Africa. Financial services to corporates and insurance comprises of a set of business lines able to meet the specific
needs of individual, professional and business customers in France and abroad. It offers insurance solutions (Societe
Generale Insurance), financing and management solutions for automobile fleets (ALD Automotive), and vendor and
equipment financing solutions for professionals (Societe Generale Equipment Finance). In FY2018, the International
Retail Banking and Financial Services segment reported revenues of EUR8,317 million, which accounted for 33% of the
company's total revenue.
Corporate Centre segment includes the income and expenses that do not relate directly to the activity of the core
businesses. It includes the management of the registered office’s property portfolio; the group’s equity investment
portfolio; and the Treasury function for the group; certain costs related to cross-functional projects and certain costs
incurred by the group and not re-invoiced. It also includes any difference with respect to the group’s tax rate. In
FY2018, the Corporate Centre segment reported revenues of EUR182 million, which accounted for 0.7% of the
company's total revenue.
Industry Profiles
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Industry Profiles
9. Macroeconomic Indicators
Industry Profiles
Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
Industry Profiles
Association Française des Banques, 18, rue La Fayette, F - 75009 Paris, FRA
Tel.: 33 1 4800 5037
Fax: 33 1 48 5041
www.afb.fr
Industry Profiles
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