AFD_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

5

ECONOMIC Presentation of the consolidated financial statements

Intermediate balances Changes in the intermediate balances over the last two financial years are as follows:

NR

2017

2016

Change

NET BANKING INCOME

755 388 367 -12 355 332 -20 313

724 343 381 -98 283 266 -20 246

32 45

Overheads on non-banking operations

Gross operating income

-13

Cost of risk

86 72 66

OPERATING INCOME

NET INCOME

Minority interests

0

NET INCOME - GROUP SHARE

67

AFD Group’s income for 2017bstood at €313M (Group share), up by €67M compared with 2016. Net banking income The contribution of the Group’s various companies to its net banking income (NBI) is as follows:

Net banking income

2017

2016

Change

AFD

620 143 -10

579 153 -11

41

Proparco

-10

Fisea

1 0 0

Soderag Sogefom Propasia

0 2 0

0 2 1

-1

GROUP TOTAL

755

724

32

Net banking income amounted to €755M in 2017, up by €32M compared with 2016bdue to the aggregate effect of the items listed below:

2017

2016

Change

Net banking income

BALANCE OF LOANS/BORROWINGS

550

504

46 -7

Investment income Net interest provisions

24 -8 71 82 36

31

1

-10

Commissions

59 88 40

12 -6 -4 32

Income on instruments at fair value net of currency effects

Other financial income and expenses

GROUP TOTAL

755

724

The change in net banking income was mainly due to: P an increase in the balance of loans/borrowings net of subsidies (+€46M); P an increase in commissions of €12M; P the reduction in income from financial instruments at fair value through profit or loss, net of currency effects (-€6M); P the increase of net provisions for interest of €10M. gross operating income Gross operating income totalled €368M in 2017bversus €381M in 2016. This reduction of €13M is the combined result of the increase in net banking income (+€32M), 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 2017bbudget, which in turn was up 15% on the 2016bbudget. In effect, the budget approved by the Board of Directors estimated operating expenses at €383M with an estimated out-turn of €377M at year end related to the necessary increase in human resources and equipment in the context of AFD’s growth. The increase in expenses for non-banking operations is linked to the increase in staff costs related to increased numbers of employees and the rise in external expenses.

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REGISTRATION DOCUMENT 2017

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