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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REGISTRATION DOCUMENT 2018