1.Presentation
of Crédit Mutuel Arkéa

1.1Crédit Mutuel Arkéa’s business model

1.2Group profile

Crédit Mutuel Arkéa is a cooperative banking and insurance group. Crédit Mutuel Arkéa is made up of the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations and their 291 local member banks, as well as around 40 specialised subsidiaries. Crédit Mutuel Arkéa is not listed on the stock market. It belongs to its members, who are both shareholders and customers. They guide its strategy, at each decision-making level, within the framework of a democratic system and according to the principle of “one person one vote”. Crédit Mutuel Arkéa is affiliated with Confédération Nationale du Crédit Mutuel, which is the central institution of the Crédit Mutuel network, in accordance with Article L.511-30 of the French Monetary and Financial Code.

Crédit Mutuel Arkéa has a balanced and diversified profile. It covers all banking and insurance business lines (excluding corporate and investment banking, discontinued since 2009) while occupying growing positions in the real estate services, connected technologies and services to individuals markets (remote assistance, remote security, etc.).

As a company with a mission, Crédit Mutuel Arkéa has always sought to reconcile financial strength, regional roots, a culture of innovation, a strategy of openness and sustainable and responsible growth with a long-term outlook. It is committed to a form of financing that serves the regions and their stakeholders and to supporting the environmental and societal transitions. Crédit Mutuel Arkéa has chosen to support two transitions as a priority: the climate transition and the preservation of natural capital; the transition to an inclusive and balanced society in the regions.

A benchmark player in all its markets – from retail banking to white label services for major financial and retail accounts – Crédit Mutuel Arkéa aims to develop a cooperative and collaborative banking model that provides the best response to aspirations and lifestyles. Crédit Mutuel Arkéa thus chooses open innovation, by sharing and pooling its expertise with that of its ecosystem – companies, start-ups, local authorities, etc. – to offer sustainable solutions that create value for all. Crédit Mutuel Arkéa is convinced that this collaborative approach is, today and tomorrow, the main source of progress and the best response to societal, technological, and environmental challenges.

As a regional group, Crédit Mutuel Arkéa is committed to maintaining regional decision-making centres and employment areas. From its regional bases, the group operates nationwide and serves customers throughout Europe through its banks and online services as well as its subsidiaries specialising in the business-to-business market.

Key figures at 31 December 2023

The figures presented are in accordance with IFRS 4 until 2021 and then IFRS 17 from 2022.

Solvency and ratings

Common Equity Tier 1 ratio (CET1)

At 31 December 2023

Rated by Fitch Ratings and Moody’s Investors Service, Crédit Mutuel Arkéa has high-quality ratings.

Non-financial rating

Overall performance

Crédit Mutuel Arkéa’s non-financial performance expresses the positive and negative externalities of the group’s actions on its stakeholders as well as its own direct footprint in euros.

It amounted to €9.4 billion for the 2023 financial year, stable compared to 2022.

It breaks down by sphere of influence as follows:

1.3Sustainable finance and overall performance

1.3.1Sustainable finance

Faced with the environmental emergency, the financial sector has a key role to play in accelerating the evolution towards a more sustainable economic growth model, by taking into account non-financial issues (ESG) alongside financial criteria alone. Crédit Mutuel Arkéa intends to be fully committed to this major challenge, on the one hand, by directing capital towards investments and financing with a positive impact and beneficial effects for society and the environment and, on the other hand, by reconciling its financial performance with its non-financial, social and environmental performance.

Thus, on 1 December the group’s Board of Directors adopted its first climate objectives for 2030, as an extension of its membership of the Net-Zero Banking Alliance (NZBA), joined in 2022. These new climate objectives set the course that will guide its contribution to decarbonisation in the medium term.

The group has also formalised new commitments as part of its sectoral policies which define a set of rules governing the transactions offered to companies operating in sectors that emit high levels of greenhouse gases and have impacts on health and/or the environment. The group’s approach is reflected in strong actions that lead to certain waivers and support for sectoral transformations and transitions, via offers, services and systems adapted for stakeholders.

Coal, oil and gas sectors

Since 2021, Crédit Mutuel Arkéa has adopted and strengthened exit trajectories for the coal and oil and gas sectors. It has undertaken to phase out coal by the end of 2027 worldwide and has strengthened its framework for financing and investment to companies whose activity is related to coal (energy extraction and production), with the aim of directing financial flows towards low-carbon technologies and resources. The group also refrains from any new financing of projects dedicated to fossil fuels and of players involved in unconventional fossil fuels.

Residential real estate sector

Crédit Mutuel Arkéa set itself a target in 2023 of a 23% reduction by 2030 in the carbon intensity per square meter financed in the home loan portfolio of the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations. It will do this by strongly encouraging energy renovation projects, by financing new housing with lower emissions and by paying the greatest possible attention to the social and economic dimension of housing in its regions.

Air transport sector

With regard to air transport, Crédit Mutuel Arkéa undertakes, for financing not intended for airlines and new financing allocated to the acquisition of commercial aircraft, that any new financing complies with carbon intensity criteria, in line with the decarbonisation trajectory based on the "Net Zero Emissions by 2050" as defined by the International Energy Agency. In addition, since 1 January 2024, any new financing of aircraft for business and private aviation is prohibited, regardless of the customer’s sector of activity, unless the aircraft financed is not a direct CO2 emitter.

Steel sector

Crédit Mutuel Arkéa is committed to achieving an average CO2 emissions intensity of 1,024 kgCO2/metric ton of steel in 2030 for its steel financing portfolio. Crédit Mutuel Arkéa’s portfolio is below this trajectory because it finances only one steel-producing company, whose current carbon intensity is lower than the average for the sector. The group wants to be able to support players in the steel sector who are committed to the decarbonisation of their activity.

Cement sector

Crédit Mutuel Arkéa has set itself the target of achieving an average CO2 emissions intensity of 463 kgCO2/metric ton of cement in 2030, a decrease of 24% compared to its portfolio at 31 December 2022. The group wishes to maintain support for the cement sector by financing players committed to a trajectory in line with the IEA’s NZE 2050 scenario.

In addition to these initial targets for the particularly high-carbon-emitting sectors of its portfolio, Crédit Mutuel Arkéa aims to be exemplary and has set a target of reducing its direct emissions by 38% by 2030 (electricity, in situ use of fossil fuels for heating, domestic hot water, etc.), from 2,880 tCO2e at the end of 2021 to 1,785 tCO2e at the end of 2030.

The NZBA and TCFD reports as well as Crédit Mutuel Arkéa’s sectoral policies (coal, oil, gas, health, tobacco, controversial weapons and defence, agriculture and viticulture, air transport, real estate financing, human rights) are available on the group’s website.

(See also the Statement of Non-Financial Performance in chapter 4 of this Universal Registration Document).

1.3.2Crédit Mutuel Arkéa

Crédit Mutuel Arkéa has designed a methodology to calculate and monetise non-financial performance. This approach enables the group to measure and manage its overall performance, combining financial performance and non-financial performance, both expressed in euros. Non-financial performance expresses the positive and negative externalities of Crédit Mutuel Arkéa’s actions on its stakeholders and its direct impact on its ecosystem. The methodology for measuring non-financial performance is based on internal and external data, impact indicators, monetisation indices and a general formula.

1.3.2.1Crédit Mutuel Arkéa’s approach 

1.3.2.1.1Measure non-financial performance at the service of the group’s ambitions

1.3.2.1.1.1A single goal: to drive the group’s overall performance

The group’s Raison d'être (Purpose) is “to be a player in a world that takes a long-term view and takes into account the major societal and environmental challenges facing our planet for future generations”. The Transitions 2024 strategic plan serves this Purpose and aims to position the group on a sustainable growth trajectory.

The group’s objective is to generate financial and non-financial value for its stakeholders (members and customers, suppliers, employees), support them in their transition by contributing to the successful consideration of societal and environmental issues, thus ensuring the sustainability of the activities of all players in the economy.

1.3.2.1.1.2Develop a new system to measure non-financial performance

In order to be able to measure and manage non-financial performance, the group has developed a methodology, designed with technical input from experts at PricewaterhouseCoopers, in order to select the relevant non-financial indicators for the group and its stakeholders.

This methodology values the group’s ability to have an impact on its ecosystems through:

• its investment and financing choices;
• its purchasing policy;
• its human resources policy.

The purpose of measuring the non-financial impacts of Crédit Mutuel Arkéa’s activities is to assess:

• its commitment in accordance with its Purpose and its initiatives included in the strategic plan;
• the impact of its decisions, actions and offers on its stakeholders.

1.3.2.1.2General principles

To measure Crédit Mutuel Arkéa’s overall performance, it is necessary to have a common language with a common unit of measurement, the euro, for financial and non-financial value. The financial result reflects the creation of financial value when the measurement of non-financial impacts is intended to express in euros the positive and negative externalities of Crédit Mutuel Arkéa’s actions on its stakeholders through impact indicators relevant to its activities, and its direct footprint.

An externality characterises the fact that Crédit Mutuel Arkéa has created, through its activity, an external effect by providing its stakeholders, without monetary compensation, a utility, or a benefit free of charge, or, on the contrary, a nuisance or a damage without compensation.

These externalities are numerous and may be different depending on the stakeholders.

1.3.2.2Methodological approach

1.3.2.2.1Areas of impact

The methodology developed by the Crédit Mutuel Arkéa group is based on relevant non-financial indicators in the areas of environmental and socio-economic impact. The choice of impacts to be included was based on a cross-analysis of financial and non-financial materialities to measure the relevant externalities for Crédit Mutuel Arkéa.

1.3.2.2.2The issue of data availability

The approach adopted consists of identifying the financial and non-financial data required to calculate the impact. Data collection is adapted according to the availability of information. Thus, today, the methodology follows a “sectorial” top-down approach in order to capitalise as best as possible on the existing one and it will gradually evolve into a “granular” bottom-up approach in order to refine the measurement of impacts.

1.3.2.2.3External database

In order to ensure the reliability of the calculations and with a desire for transparency, the methodology is based on public reference databases.

More specifically, for the choice of monetisation indices, two main approaches are used:

• “Calculation of damages” or “Value of benefits”:
  • the benefit of a measure corresponds to the damage that it is likely to avoid by its implementation.
• “Avoidance cost”:
  • the costs of a measure correspond to the investments that may have to be implemented to avoid all or part of the damage.

Examples of sources used to value non-financial indicators

ADEME, Assurance Maladie (national insurance), INSEE, the Ministry for Regional Cohesion and Relations with Local Authorities, the European Commission, Eurostat, the OECD, the European Environment Agency.

Examples of sources used for monetisation indices

France Stratégie, the French Banking Federation, the family allowance funds, the Directorate General of Local Authorities, INSEE, the Ministry of Solidarity and Health, the Ministry of Higher Education and Scientific Research, Eurostat, the OECD, etc.

1.3.2.2.4Measurement and monetisation of impacts

The monetary value of the impact of each non-financial indicator, or its monetisation, is obtained by multiplying:

• its value (1);
• a monetisation index (2);
• a Crédit Mutuel Arkéa share (3).

1.3.2.3Presentation of non-financial indicators

For Crédit Mutuel Arkéa as a whole, 25 impact indicators have been selected at this stage for the measurement of non-financial impacts. Some of these indicators are generic because they are applicable to all business sectors and others are specific because they are only relevant for certain sectors. They are of two types:

• external indicators (relating to the activity of customers and suppliers);
• internal indicators (relating to Crédit Mutuel Arkéa’s internal activity).

External indicators

Internal indicators

The detailed methodological framework is available on the Crédit Mutuel Arkéa website.

1.4A company with a mission

Our Raison d’être (Purpose)

In line with its Purpose and the deployment of its medium-term strategic plan, Transitions 2024, in May 2022 the group adopted the status of a "company with a mission", which constitutes the most demanding level of commitment under the Pacte law in terms of environmental and societal responsibility. It is one of the very first banking groups to acquire this status.

Our 5 commitments

Crédit Mutuel Arkéa’s mission is structured around the five commitments that stem from its Purpose. These commitments form the basis of the Group’s long-term strategy, serving the regions and all of its stakeholder.

The Mission Committee

A Mission Committee, composed of nine members, the majority of whom are from outside the group, ensures that each of these commitments is respected and that they are at the heart of decisions taken at all levels and in all parts of the group. This Mission Committee is chaired by Eric Challan Belval, Chairman of La Feuillière, a pioneering company in the recycling of office paper (see also Chapter 4 Statement of Non-Financial Performance).

See 2022 Mission report

1.5Crédit Mutuel Arkéa in a few dates

1.5 Crédit Mutuel Arkéa in a few dates

For more than 15 years, Crédit Mutuel Arkéa has been committed to defending its autonomy within CNCM in order to preserve its model and its ability to decide on and conduct its own strategy. The deep disagreements over the governance of Crédit Mutuel as well as the multiple attempts at centralisation led the elected representatives of the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations, brought together in Crédit Mutuel Arkéa, to opt for the project of disaffiliation and exit from Crédit Mutuel in 2018. In July 2022, Crédit Mutuel Arkéa asked for serious and structured discussions with the Confédération Nationale du Crédit Mutuel (CNCM), to rebuild a Crédit Mutuel that respects pluralism and subsidiarity, while fully recognising CNCM’s prudential role. In August 2022, the group made concrete proposals to CNCM to find a solution to the conflict. This project aimed to define the outlines of a guaranteed autonomy framework for Crédit Mutuel Arkéa. In January 2023, Crédit Mutuel Arkéa and CNCM agreed on the framework and method for conducting a negotiation process. The aim is to preserve the group’s cohesion and strengthen the autonomy of its members, thus seeking an alternative to the disaffiliation project pursued until now by the directors of Crédit Mutuel Arkéa. Under the aegis of CNCM, these negotiations gave rise to reviews carried out by Crédit Mutuel’s main executive officers of Crédit Mutuel's regional groups, followed by a discussion between the elected officers of Crédit Mutuel. 

On 2 May 2023, the Boards of Directors of Crédit Mutuel Arkéa and the Crédit Mutuel de Bretagne and Sud-Ouest federations unanimously adopted a political memorandum of understanding (MOU) for a united and plural Crédit Mutuel.

This MOU was then unanimously adopted on 3 May 2023 by the Board of Directors of CNCM, with its members representing the 19 federations, employees and independent directors.

This agreement consolidates a mode of operation that preserves the originality and strength of Crédit Mutuel’s cooperative and mutualist model, based on unity, solidarity and subsidiarity, respectful of both the prudential powers of the central institution and the autonomy of federations and regional groups.

Through reciprocal progress, the work led to an MOU whose main measures are described below:

• Application of the principles of subsidiarity and autonomy within the Crédit Mutuel group.
  The regional groups freely determine their strategy and, more broadly, their business plan, in compliance with prudential rules.
• Articulation of the free competitive development of the respective subsidiaries with respect for the principle of the territoriality of the Crédit Mutuel banks. 

3.	The names and use of the “Crédit Mutuel” brand.
	The domestic brand “Crédit Mutuel” has historically been registered by CNCM, which is responsible for and owns it on behalf of Crédit Mutuel members. However, the independent use of separate brands, incorporating the terms Crédit Mutuel, is possible by the federations and local banks using their own name. For example:

• CNCM governance 
• This includes: 
  • the creation of a Deputy Vice-Chairmanship, which will be assigned by right to the Chairman of Fédération du Crédit Mutuel de Bretagne, who will also chair the Risk Committee; 
  • a right of veto granted to the federations in the event of harm to their vital interests (employment, regional decision-making centres, subsidiaries, information system, purpose, etc.). 

The agreement reiterates CNCM’s role in its public service mission. It ensures the proper functioning and cohesion of the group in order to guarantee its financial stability, its solidity and the protection of depositors and members. As such, it is the main contact for the supervisory and resolution authorities that control the Crédit Mutuel group on a consolidated basis. Likewise, it represents the collective interests of Crédit Mutuel with regard to the authorities and the profession, in addition to the individual interests defended by each.

In this context, the Articles of Association of CNCM were then adapted and rewritten to integrate all the provisions recorded in this memorandum of understanding, and were validated on 22 June in their new version, at the General Meeting of CNCM. In accordance with the French Monetary and Financial Code, they were also submitted for approval to the Minister of the Economy.

Thus, on 7 July 2023, Crédit Mutuel Arkéa officially approved its retention and that of its federations within Crédit Mutuel, and ended the disaffiliation project initiated in April 2018. 

The first work has begun, and is continuing, to transpose this agreement into the frameworks and general texts governing the operation of Crédit Mutuel.

For this reason, Crédit Mutuel Arkéa remains vigilant and actively participates in the proper execution of the work to transpose the MOU.

Crédit Mutuel Arkéa will continue to work with commitment and vigilance to maintain its strategic autonomy over time.

1.6The Crédit Mutuel Arkéa business lines

Crédit Mutuel Arkéa, with the support of the expertise developed in its specialised subsidiaries and central departments, has a comprehensive and competitive range of products and services. In a constantly changing environment, driven in particular by the digital transformation, changes in consumer habits and environmental and societal concerns, Crédit Mutuel Arkéa remains particularly attentive to the emergence of new business lines and activities, relying in particular on open partnerships.

Breakdown of revenues by sector

Brand portfolio

Retail banking for individuals and professionals
Crédit Mutuel Arkéa’s historical business, retail banking for individuals and professionals (farmers, craftsmen, shopkeepers, self-employed professionals) is mainly deployed through the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest branch networks. These federations, which employ around 4,000 people, embody the group’s regional roots and close relationships with its 2.3 million members and customers. The ongoing quest for relational excellence is reflected in the implementation of a new local branch format, which demonstrates in a very concrete manner the importance the group attaches to the close ties that unite it with its members and customers. These new spaces reinforce the branch’s essential role as a place of expertise and exchange between the customer and his or her usual banking adviser, while using the most modern technology to energise the relationship and facilitate decision-making. This relational proximity is also experienced remotely thanks to the digital services and mobile applications developed by the two federations, which allow each customer to benefit, wherever they may be, from permanent access to all of the banking-insurance products and services.
	A bank-insurer for one in two people in Brittany, Crédit Mutuel de Bretagne has more than 3,000 employees, 2,000 directors and more than 1.8 million members and customers. Present in the four Breton departments (Côtes d'Armor, Finistère, Ille-et-Vilaine and Morbihan) and with a network of more than 300 reception points, Crédit Mutuel de Bretagne works with private individuals, associations, professionals, farmers, and companies with revenue of less than €30 million. It offers comprehensive solutions for all: current account and associated services, savings and investments, loans, insurance, and provident insurance. Its market share is nearly 33% for home loans and 25% for deposits.
	With 85 points of sale in the Charente, Dordogne, and Gironde departments, Crédit Mutuel du Sud-Ouest currently has over 1,000 employees, 550 directors and 440,000 members and customers. It works with the same types of customers as Crédit Mutuel de Bretagne. Enjoying regular growth, Crédit Mutuel du Sud-Ouest positions itself as a true partner in local economic life. It regularly strengthens the network in its region, modernises its network and develops innovative concepts, always at the service of its members and customers.
	The group, with Arkéa Banque Privée, which is attached to Arkéa Investment Services, has a structure specifically dedicated to wealth management. Arkéa Banque Privée relies on a network of ten reception centres (seven branches and three offices) throughout the country.
	A pioneer in multi-channel banking, Crédit Mutuel Arkéa, alongside its traditional physical networks, has made online banking one of the driving forces behind its strategy of conquest. The continuous development of new online services, the dematerialisation of procedures and subscriptions, banking applications and new payment methods are illustrations of this. Fortuneo Banque and Keytrade Bank are the two commercial brands of Arkéa Direct Bank. Fortuneo Banque and Keytrade Bank now have more than 1,000,000 customers in France and Belgium.
	The group, in partnership with Le Télégramme newspaper, is also the initiator of Kengo, a platform for participatory finance (or crowdfunding) by donation, designed to support business projects and associations in Brittany. Since its creation, Kengo has already made it possible to finance 100 projects.
	In addition, the group relies on solid expertise in both consumer credit at the point of sale through Financo and in loan restructuring and debt consolidation through Crédit Foncier et Communal d’Alsace et de Lorraine (CFCAL). Created in 1986, Financo is a leading player in financing in the automobile, motorbike, and leisure vehicle markets, as well as in the home equipment and housing renovation markets. Financo, which relies on a network of more than 4,500 partner points of sale, serves 470,000 customers. In May 2023, Financo acquired the status of a company with a mission and has adopted a Purpose that reflects its ambition for tomorrow: “In cooperation with our partners, we are committed to supporting and financing everyone’s projects for a responsible and sustainable future".   Created in 1872, and specialising in the consolidation of mortgage and non-mortgage loans as well as real estate loans, CFCAL operates nationwide via a network of 450 independent intermediaries in banking transactions. CFCAL also offers "BANK AS A SERVICE BY ARKÉA", intended for professionals who wish to offer their customers financial services, in particular payment and payment account services. Since this year, CFCAL has been offering savings products: passbook and term accounts. The latter are designed for private individuals via an intermediated distribution model (Placement-direct.fr, Meilleurtaux savings).
Non-banking activities for individuals
	Crédit Mutuel Arkéa offers its retail customers innovative solutions, outside the strictly banking sector, through its subsidiaries dedicated to connected services: Arkéa Assistance, specialising in remote assistance services for individuals, and Arkéa Sécurité for remote home surveillance. Their services are marketed under the Arkéa On Life brand. Innovative solutions for serviced senior residences, independent residences and nursing homes are marketed under the Arkéa Creative Care brand.
	Arkéa Immobilier Conseil selects, on behalf of the networks of the two federations, new and renovated real estate products and programmes throughout the country that are eligible for the main tax schemes (Pinel, Pinel Outre-Mer, LMNP, Malraux, Monument Historique, Déficit Foncier, Nue-propriété).
	Crédit Mutuel Arkéa is also a major shareholder in the Izimmo group, specialised in the valuation and marketing of investment and acquisition property products. Izimmo operates in the various business lines of the new property market. In 2022, the group announced that it had acquired a majority stake in Liberkeys, a new real estate agency, via Izimmo.
	Created in 2021, the subsidiary Arkéa Flex bases its development on Flex technology, a patented design technique that makes it possible to create flexible and scalable buildings while reducing the ecological footprint of real estate projects.
	Armorique Habitat, a social housing company, manages a portfolio of 6,700 housing units, which it owns in more than 250 communes in the Finistère, Côtes-d’Armor and Morbihan departments. Armorique Habitat was the first subsidiary of the group to become a company with a mission (2021). In doing so, the company wanted to promote and strengthen the positive impact of its action in the service of social housing and the balanced development of the region. Armorique Habitat also collaborates with Arkéa Assistance for the renovation of existing homes as well as for new programmes to increase the safety of senior residents through innovative solutions (home automation and home security).
Retail banking for companies, professionals, and real estate players
As a leading banking player in the retail market, Crédit Mutuel Arkéa also supports all players involved in regional economic development, including businesses, local authorities, healthcare institutions, and players in real estate developers, social housing and the social (third sector) economy. The Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest networks also have specific teams and structures to support companies.
	Crédit Mutuel Arkéa also relies on a centre of expertise based on a commercial bank (Arkéa Banque Entreprises et Institutionnels), which brings together all the skills required by this clientele. A comprehensive range of solutions is offered to companies and local authorities, including financing, treasury functions, leasing with Arkéa Crédit Bail, insurance, cash management, factoring under the Arkéa Factoring brand, wealth management for entrepreneurs, etc. Arkéa Banque E&I works with almost 15,000 customers (businesses, local authorities, and institutions) and supports the public sector throughout France through its 21 offices. Priority is given to supporting public policies promoting housing, economic development, health, and the environmental transition by directly financing local authorities as well as their satellites that provide local services to the population (low-rent housing, semi-public companies, public institutions, public utilities, etc.). Thus, the group is in contact with 18 of the 22 metropolises, 70 departments and 9 regions in mainland France.
	Arkéa Lending Services is a simple and responsible financing platform that combines all private debt solutions for SMEs, mid-sized companies, real estate professionals, social landlords and local public sector players. The subsidiary supports borrowers in the entire transaction from the creation and filing of the online application until the signing of the contractual documentation.
	The group is also a major player in private equity in France, with €13 billion under management devoted to the financing and development of companies. Crédit Mutuel Arkéa, which groups all its private equity activities under the Arkéa Capital brand, is able to support managers at all stages of their company’s development, from start-up to mid-cap companies (ETI). One of its investment vehicles - Arkéa Capital 2 - is backed by a philanthropic endowment fund - PhiNOE -, serving the development of companies and associations as well as job creation in the regions. PhiNOE offers three complementary schemes: interest-free loans on trust at 0% interest, subsidies, and personalised support (assistance with strategy, commercial advice, etc.).
	Crédit Mutuel Arkéa holds a minority stake in the capital of Pytheas Capital Advisors, a young financial investment consultancy firm. The fintech is developing a reverse factoring solution that enables corporate customers to reduce their payment times to suppliers.
BtoB market and services
Crédit Mutuel Arkéa is developing commercial, technical, and even capital-intensive partnerships with other financial institutions, mass-market retailers, e-commerce players, etc. This white-label banking services activity is experiencing continuous growth within the group. For the customer, the outsourcing of business processes deemed non-strategic not only enables it to reduce costs, but also provides a competitive edge by allowing it to focus on its core business while benefiting from state-of-the-art products and services that comply with regulations. For Crédit Mutuel Arkéa, these partnerships enable it to capitalise on its know-how and technological expertise and to consolidate its development at national and European level. For example, the group processes payments for Amazon in France and provides IT services, management, and middle-office services on behalf of Axa Banque. The group also successfully rolled out IT infrastructures and white-label services for My Money Group as part of the acquisition of the retail banking activities of HSBC France. The new network is called CCF. For Crédit Mutuel Arkéa, these partnerships make it possible to promote its know-how and its technological expertise and to consolidate its development on a national and European scale. For example, the group processes payments for Amazon in France and provides IT services, management, and middle-office services on behalf of Axa Banque. The group also successfully rolled out IT infrastructures and white-label services for My Money Group as part of the acquisition of the retail banking activities of HSBC France. The new network is called CCF.
	The subsidiary Arkéa Banking Services, a full-service bank approved by the Banque de France, offers a full range of white-label banking services. It works with Allianz Banque, La Banque Postale, Adyen, Brink’s France, Systèmes U, Axa Banque and My Money Group. Arkéa Banking Services also works with several fintechs.
	ProCapital is a securities services provider for financial institutions and asset management companies that wish to benefit from a modular offering, from account management and execution of their customers’ orders to the creation of transactional websites. It carries out more than 10 million transactions per year on behalf of around 20 financial institutions (Louvre Banque Privée, La Banque Postale Gestion Privée, Deutsche Bank, Meeschaert Gestion Privée and CNP Assurances).
	Monext is the leader in its market, specialising in electronic transactions combining payment technologies and services. Thus, every day, millions of consumers use its services to pay for an hour of parking, fill up on petrol, run errands, buy online, etc. It supports more than 12,000 vendors and processes more than 40% of e-commerce transactions in France (Amazon, Française des Jeux, Le Mouvement Leclerc, Rue du Commerce, Voyage Privé, Ventes Privées, PMU, Carrefour, Intermarché, etc.). Monext processes more than 6 billion transactions each year.
	Nextalk, a multi-channel contact centre for banking players, is an offshoot of Monext and provides a first level of customer relations and 24/7 banking assistance. This white-label service makes it possible to maintain human contact and build customer loyalty among traditional and mobile bank customers. Nextalk works with around 60 companies and handles more than 5.5 million calls per year.
In addition to these companies specialising in BtoB, other subsidiaries are developing BtoB activities through the distribution of their products via external networks (Suravenir, Suravenir Assurances, etc.).
Insurance and asset management
Crédit Mutuel Arkéa began setting up insurance and asset management subsidiaries in the 1980s. Suravenir, Suravenir Assurances, Novélia, Arkéa Investment Services (the brand that brings together the asset management expertise), each in its field of activity, enable Crédit Mutuel Arkéa’s networks to offer comprehensive and competitive services. Their products are also distributed by networks outside the group and via internet players and brokers.
Personal protection insurance
	With nearly 3 million individual and professional customers, Suravenir is one of the leading players in the personal protection insurance market in France. Suravenir specialises in the design, production, and management of life insurance (individual and group life insurance), personal protection insurance (loan insurance, temporary death insurance) and company retirement savings contracts. Its contracts are marketed by a large number of distribution partners: banking networks, internet channel, independent wealth management advisors via Vie Plus, etc. It manages more than €50.5 billion in life insurance outstandings.
Non-life insurance
	Suravenir Assurances covers all the property and casualty insurance needs of individuals: home and private life, car, motorbike, health, long-term care, life accident coverage, etc. It manages more than 2.3 million contracts on behalf of more than 800,000 insured people. The contracts are distributed by the group’s commercial networks (Crédit Mutuel de Bretagne, Crédit Mutuel du Sud-Ouest) as well as by partners (A comme Assure, Apivia Courtage, LSA Courtage, Wilov).
	In October 2023, Crédit Mutuel Arkéa sold Novélia, its subsidiary specialising in insurance brokerage, to Kéreis.
Asset management and wealth management
	Federal Finance, under the Arkéa Investment Services brand, coordinates all of the group’s asset management specialists. Several areas of management expertise are grouped together: Federal Finance Gestion, Schelcher Prince Gestion and Swen Capital Partners. Arkéa Investment Services manages €66 billion in assets.
	Federal Finance Gestion offers a range of more than 100 funds that cover all asset classes (equities, bonds, multi-management, quantitative, index-linked, money market, diversified), all tax frameworks (PEA, PEA SME, life insurance or securities accounts), the main business sectors and geographical areas, numerous management styles and specific themes such as Socially Responsible Investment (SRI) and employee savings. Its offers are distributed through Crédit Mutuel Arkéa’s networks and directly to institutional investors, major accounts, private banks, fund managers and independent asset management advisers. A pioneer in socially responsible investment, Federal Finance Gestion includes Environment, Societal and Governance (ESG) criteria as a priority in its investment processes, with the conviction that the consideration of non-financial criteria is a source of long-term value for the companies in which it invests.
	Schelcher Prince Gestion deploys investment solutions for institutional customers, private banks, fund managers and independent wealth management advisers in France and abroad. It places financial and non-financial analysis at the heart of its management without asset class or geographical area limits with a simple objective: to offer its customers the best risk-adjusted return. Schelcher Prince Gestion currently manages €7.5 billion
	In February 2021, Federal Finance, under the Arkéa Investment Services brand, became the majority shareholder of Catella Asset Management, renamed Arkéa Real Estate. The company – a specialist in investment activities, asset and property management on behalf of third parties (French and international institutional investors, family offices and high net worth individuals) – has more than €1.4 billion in real estate assets under management and aims to host Arkéa Investment Services’ future developments in the area of real estate.
	Created at the end of 2021, Arkéa REIM believes in a rapidly changing real estate model and positions itself as the real estate fund management company serving the savings of its customers. With the aim of offering innovative real estate savings products so that each saver can build a solid and resilient portfolio. It markets SCI Silver Avenir, SCI Territoires Avenir and SCPI Transitions Europe. Arkéa Investment Services completed its range of real estate services with the creation of Onata, an activity dedicated to supporting project owners, owners or investors in their creation projects, real estate valuation and restructuring.
	Swen Capital Partners, created in partnership with the OFI group, is a leading player in unlisted responsible investment with €7 billion in assets under management and/or advisory in Europe. Convinced of the necessary transformation in the face of the societal and environmental challenges of today and tomorrow, Swen Capital Partners strives to offer investors the best financial and non-financial performance and applies ESG criteria to all its investments, in the belief that companies that anticipate change and accept transformation will be the leaders of tomorrow.

1.7Crédit Mutuel Arkéa strategy

Guaranteed autonomy within a united and plural Crédit Mutuel

At an Extraordinary General Meeting on 7 July 2023, the Chairpersons of the local banks of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest unanimously voted to maintain Crédit Mutuel Arkéa and its federations within a united and plural Crédit Mutuel. This vote, which officially ended the Crédit Mutuel Arkéa disaffiliation project initiated in 2018, followed the signing, on 3 May, by the Confédération Nationale du Crédit Mutuel (CNCM), Crédit Mutuel Arkéa and the 19 federations of an agreement which preserves the cohesion of Crédit Mutuel and guarantees the autonomy of its members. These new Articles of Association were then approved on 22 June by the General Meeting of the CNCM.

This agreement is based on the following principles:

• Application of the principles of subsidiarity and autonomy within the Crédit Mutuel group. The regional groups can therefore freely determine their strategy and, more broadly, their business plan, in compliance with prudential rules.
• Articulation of the free competitive development of the subsidiaries while complying with the principle of territoriality of the Crédit Mutuel banks. 
• The possibility for federations and local banks to use distinct brands, based on their own name, incorporating the term "Crédit Mutuel".
• Creation of a delegated Vice-Chairmanship within CNCM. This function is assigned by right to the Chairperson of the Crédit Mutuel de Bretagne federation, who also chairs the Risk Committee. 

• A right of veto granted to the federations in the event of harm to their vital interests (employment, regional decision-making centres, subsidiaries, information system, purpose, etc.).

The 2024 financial year will see the completion of the deployment of Crédit Mutuel Arkéa’s medium-term plan (MTP), called Transitions 2024. Launched in January 2021, it has initiated a dynamic of transformation of the business lines and positioned the group on a sustainable growth trajectory at the service of societal and environmental transitions.

It is action-oriented and aims to effectively translate the group’s Purpose into its business lines.

In an unprecedented context, where the health crisis has revealed the urgency of environmental, social, and regional transitions, Transitions 2024 has been built around the following priorities:

• the operational implementation of the five commitments of the Raison d’être (Purpose);
• the group’s development issues;
• developments in the banking and insurance sector;
• the reality of the regions and customers;
• citizens’ expectations of companies, so that they can participate even more in the societal, ecological, and solidarity-based revolution.

The aim of this plan is to make Crédit Mutuel Arkéa the agile financial partner for future transitions, serving local authorities and their stakeholders. The aim is to choose a responsible growth strategy and to seek overall performance, in a balanced approach between financial performance and positive impact.

Conceived in a participative way, with representatives of all stakeholders and anchored in the reality of our business lines, Transitions 2024 accentuates the group’s long-term trajectory and reaffirms the originality of its model.

It is in line with its long-standing strengths:

• local roots and proximity to the regions;
• a collaborative and cooperative identity;
• an agile and entrepreneurial spirit;
• an opening to the world around;
• the vitality of its partnership ecosystem;
• its values of humanity and solidarity;
• its culture of innovation.

In concrete terms, Transitions 2024 demonstrates the group's commitment to supporting environmental and regional transitions, through its offers, business lines, practices and relationships with its customers, directors and employees. It is structured around four strategic areas that constitute priorities for action to guide the business model and which are supported by five implementation levers. Transitions 2024 has instilled a collective dynamic throughout the group. More than 586projects have been identified and nearly 280 have already been finalised. The main achievements of 2023 can be found in section 1.8 “Highlights” of the 2023 financial year.

At the end of 2023, Crédit Mutuel Arkéa started work on its next strategic plan. Usually designed with a medium-term approach, this time the plan will cover a longer period of six years, up to 2030. This plan for 2030 will consist of two three-year phases with the possibility of thus being adapted in 2027 to better meet emerging challenges and economic changes.

This choice reflects the group’s desire to continue its action over the long term. It will make it possible to set a forward-looking vision, by continuing to integrate the major challenges of the ecological transition, the digital revolution, and the complex world in which the banking and insurance sector must evolve. It should strengthen the group’s uniqueness and identity, that of a cooperative bank that practices finance that serves the regions and their players over the long term, by giving them that “time capital” and “trust capital” that are often lacking elsewhere.

1.82023 Highlights

January

Federal Finance Gestion launches the AIS Biodiversity First fund, an innovative fund that invests in companies that aim to reduce biodiversity and carbon footprints by at least 50%, as well as alignment with the objectives of the Paris Agreement by limiting future emissions of greenhouse gases.

Press release

Arkéa Assistance markets, in addition to its remote assistance solutions, a new digital offer called “Ensemble” (together) for family caregivers. This smartphone application includes Care Management services, thanks to a home-care expert who offers caregivers specially adapted and personalised solutions to help their loved ones affected by decreased independence.

Press release

The group has subscribed to the fund FrenchFood Positive Impact, launched by FrenchFood Capital. The fund invests in French agri-food SMEs working for more sustainable food. FrenchFood Positive Impact has already made two investments : a minor investment in Huileries Gid (department 33) and a majority stake in the company Difagri (department 85), a specialist in food supplements for animals.

Find out more

ProCapital, the investment services subsidiary, has set out its Corporate Societal Responsibility (CSR) policy up to 2025. "Cap Durable" – this is its name – is based on four objectives:

• Implement an impact strategy by disseminating the fundamentals of Cap Durable (sustainable course);
• Act for solidarity by involving employees;
• Be a responsible employer by continuing to commit to well-being and fulfilment at work, as well as to diversity and equal opportunities;
• Reduce the Company’s carbon footprint by raising employee awareness of environmental issues.

Press release

The group has acquired a stake in the capital of "Brest Commerces", the new property company of Brest Métropole. Objective: to strengthen the commercial appeal of the city centre by acquiring vacant businesses, carrying out the necessary work, and then leasing these premises to project owners, thus preventing them from incurring a heavy investment when starting up their activity. Brest Commerces expects around thirty acquisitions by 2025.

Find out more

Arkéa Capital, RAISE Investissement and Dzeta Group are providing €140 million in refinancing to the group Child Worldwide Fashion (CWF). This support will enable the European leader in luxury and high-end ready-to-wear children’s clothes to optimise its distribution model, integrate new brands into its portfolio and accelerate its development through online and international sales platforms.

Press release

Crédit Mutuel Arkéa is the first private player to sign the data ethics charter as part of an initiative initiated by Brest Métropole and the City of Brest. Particularly attentive to the preservation and strengthening of the relationship of trust that it maintains with its stakeholders, Crédit Mutuel Arkéa considers the issues related to the use of data as an important driver of growth for the group. It therefore intends to contribute to the construction of a community of private and public players centred around this ethical and responsible framework, committed to working, for example, on the implementation of the Local Public Data Service, and to collectively examine the possibility of making anonymised data available in the public interest.

Press release

Confronted daily with the consequences of climate change in its portfolios of insured assets, Suravenir Assurances presents its climate strategy developed according to the framework of the international Assessing low Carbon Transition (ACT) initiative . This climate strategy sets out the company’s goals in terms of reducing carbon emissions and revolves around three pillars:

• reduce its own direct and indirect emissions;
• encourage the transition to a low-carbon economy by providing lower emission solutions in its offers and financing more responsible projects;
• actively participate in the preservation and development of carbon sinks to contribute to greater capacity to absorb global emissions.

At the same time, the company is planning to upgrade its Multirisques Habitation (multi-risk home insurance) or MRH offer. Objective: to offer services that limit the carbon footprint of policyholders through compensation geared towards the circular economy.

Press release

Crédit Mutuel Arkéa participates in the new investment fund launched by Go Capital – Impact Océan Capital – dedicated to the financing of innovative companies in the maritime economy in France. By supporting the financial and industrial structuring of an under-capitalised sector in France, the fund will support companies with innovative technologies working for the protection of the oceans, the decarbonisation of maritime activities and the sustainability of the maritime industry.

Press release

February

Crédit Mutuel du Sud-Ouest has acquired a stake in the new "Foncière de Dordogne", created by the Dordogne Departmental Council, through its semi-public company Semiper, and "Banque des Territoires". Its purpose is the acquisition, rehabilitation, financing, and operation of property for commercial use, crafts or services in order to revive local economic activity in medium-sized towns and villages.

Press release

March

Crédit Mutuel Arkéa is the first bank to present its results in terms of global performance including both financial and non-financial aspects. By measuring its environmental and socio-economic impacts, Crédit Mutuel Arkéa is providing a practical illustration of its aim of being a positive-impact bank focusing not only on its financial performance but also on the non-financial impact of its initiatives on behalf of its stakeholders.

Press release

Monext, the subsidiary specialising in payment transactions, is building its new head office of 6,000 m² in the Aix-en-Provence business park in order to bring together its teams, currently on two sites, and respond to strong business growth. “We are working on interior design so that this workplace is very high quality and suits hybrid working, in order to mix teleworking and physical attendance so that everyone will enjoy coming to the office", underlines Guillaume Prin, Chairman of the Management Board. The move is planned in 2024.

Find out more

The small port of Loguivy-de-la-Mer, in Ploubazlanec (department 22) is the first French port, at the initiative of the maritime cooperative "Docks et Mer", to equip itself with an AdBlue station intended mainly for fishing vessels. AdBlue is added to the diesel used in diesel engines to limit emissions of gases such as nitrogen oxide, which is particularly harmful to health and the environment. The station was created thanks to Crédit Mutuel de Bretagne and its maritime division. “Without their support, we would not have been able to do it”, states Yannick Hémeury, Chairman of Docks et Mer. And adds “Until such time as clean energy alternatives – such as electric propulsion, hydrogen, or biofuels – are sufficiently developed, I believe that diesel has a future for the world of fishing. This transition system has a good environmental impact. "

Find out more

Suravenir and Swen Capital Partners launch a dedicated fund committed to the energy and ecological transition: "Suravenir Infrastructures Durables". It will finance future infrastructure projects with a very ambitious objective of aligning at least 70% of its investments with the European taxonomy.

Press release

Welcoming senior citizens while facilitating the work of professionals in residences and nursing homes, this is the challenge taken up by the new B2B brand, Arkéa Creative Care, which offers tailor-made and innovative systems, such as artificial intelligence to anticipate falls, touch panels with video calls to maintain social contact or connected watches for tracking location, to meet the needs of professionals in the sector.

Find out more

Arkéa Capital launches Arkéa "Cap'Atlantique". Arkéa Cap’Atlantique is aimed at individual investors wishing on the one hand, to give meaning to their savings by supporting employment, growth, and the transition of the regions, and, on the other hand, to diversify their portfolio by accessing an asset class generally reserved for institutional investors. Arkéa Cap’Atlantique, whose aim is to raise €40 million, aims to build a diversified portfolio of 10 to 20 unlisted SMEs and mid-sized companies in the growth phase that have solid fundamentals, proven profitability, and a tried and tested business model. The selected companies will be located in the heart of the Brittany, Pays de la Loire and Nouvelle-Aquitaine regions.

Press release

Endowment fund PhiNOE, created in 2020 at the initiative of Arkéa Capital, has just published the measurement in euros of its non-financial impact for the year 2022, directly inspired by the methodology developed by the group. PhiNOE posted convincing results in line with its values. For outstanding loans of €1.1 million at 31 December 2022, its non-financial impact amounted to €1.2 million, a positive social and economic impact of 109%.

Press release

April

Crédit Mutuel de Bretagne and the French Association for Law and Economic Initiative (ADIE) have signed a partnership agreement for the amount of €100,000 for the next two years, to fund the endowment fund “PAC-TE” (Equity Contribution Loans – Ecological Transition), which will replace the equity capital of entrepreneurs to finance more sustainable vehicles. In addition, the fund will also aim to finance any initiative to reduce the carbon footprint of entrepreneurs.

Press release

May

Arkéa Capital participates in a new fundraising of €12 million carried out by the company Edflex, specialising in the centralisation of e-learning training content. 

Press release

The Regional Water Board of Dunkirk has committed to an ambitious project, combining the construction of a collective drinking water softening unit and the installation of smart meters, partially financed by an "Arkéa PACT" impact loan of €5.7 million from Arkéa Banque E&I, in addition to the traditional loan of €5 million also granted by the group’s subsidiary to complete the overall budget of the project.

Press release

€169 million is the amount of the group’s commitment to hospitals in western France (Rennes, Groupement hospitalier de Bretagne Sud-Lorient, University Hospital of Bordeaux). This figure was reached following a €15 million investment made by Federal Finance Gestion on behalf of Suravenir in the bond issue launched by the University Hospital of Brest to finance its development project.

Press release

Having become a company with a mission in 2022, Crédit Mutuel Arkéa publishes its first mission report. It presents the mission roadmap, breaking down the five commitments of its Purpose into operational objectives associated with measurement indicators.

Mission report

The Board of Directors of Confédération Nationale du Crédit Mutuel votes unanimously, members representing the 19 federations, employees and independent directors, in favour of a political memorandum of understanding for a united and plural Crédit Mutuel. This agreement consolidates a mode of operation that preserves the originality and strength of Crédit Mutuel’s cooperative and mutualist model, based on unity, solidarity and subsidiarity, respectful of both the prudential powers of the central institution and the autonomy of federations and regional groups.

Press release

Financo acquires the status of a company with a mission and adopts a Purpose, now included in its Articles of Association, and which reflects its ambition for the future: “In cooperation with our partners, we are committed to supporting and financing everyone’s projects for a responsible and sustainable future”. Financo relies on the following three commitments:

• Develop and promote its business models and partnerships that reconcile financial and non-financial performance;
• Support its partners and customers to meet environmental and societal challenges by designing adapted and innovative solutions;
• Strengthen the commitment of its team by cultivating the conditions for the professional performance and fulfilment of each employee.

Press release

June

Arkéa Banque E&I has granted a loan of €2.5 million to the Régie des Eaux de Terre de Provence (Provence water board) to finance the construction of a new wastewater treatment plant in Cabannes-Saint-Andiol in the Bouches-du-Rhône department. This operation is part of an investment plan rolled out by the water operator for the renovation of its facilities in order to ensure a quality supply and in sufficient quantity throughout its region, strongly impacted by the consequences of global warming.

Press release

Arkéa Capital signed the value-sharing commitment charter led by France Invest, a professional organisation bringing together more than 400 French asset management companies as well as nearly 180 consulting firms. Our private equity subsidiary is thus committed to playing a leading role in its investments in order to increase the number of employees covered by a value-sharing scheme (value-sharing bonuses, profit-sharing or incentive schemes) in the short term, and promote long-term employee shareholding and the sharing of capital gains.

The value-sharing commitment charter

Since 12 June, the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations have been offering a 0% loan, with no administration fees, for the purchase of a bicycle whether electric or not, for private individuals (up to €6,000) and professionals (up to €10,000), whether or not they are customers of one of the networks.

Find out more

Arkéa REIM takes stock of its first year of activity. The property management subsidiary, which manages three investment vehicles – Territoires Avenir, Transitions Europe and Silver Avenir – has crossed the €1 billion mark in outstandings under management. It expects an increase of around 30% in 2023 and intends to continue to diversify its assets. In mid-June, SCI Territoires Avenir acquired its first serviced residence for senior citizens in the heart of Nancy. The transaction represents a volume of approximately €19 million.

Press release

Arkéa Banque Entreprises et Institutionnels, Caisse d’Epargne Île-de-France and La Banque Postale have granted a €70 million loan to finance the Marie-Lannelongue Hospital reconstruction project in Le Plessis-Robinson (department 92). Specialising in cardiac and thoracic surgery, the hospital, in its new format, will cover a total surface area of 28,000 m², will be equipped with 220 beds, ten operating theatres and will be able to accommodate up to 11,000 patients per year. Work has already begun and will be completed in 2025.

Press release

Crédit Mutuel de Bretagne and EcoTree have signed a partnership agreement to offer a tree each time a “new-born” savings account is opened. This welcome offer complements the federation’s current system, which until then only offered a donation of €20 when opening a passbook account. EcoTree has more than 1,000 hectares of forests, the ecosystem of which it preserves throughout France.

Press release

Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest are marketing a new multi-risk home insurance (MRH) policy produced by Suravenir Assurances, in a “Positive” plan. This new plan is based on the circular economy and support for the ecological transition. Instead of systematically replacing a damaged movable or real estate asset with a new product, subscribers to the MRH policy in the "Positive" plan will be offered, as soon as possible, the repair of the damaged asset. If the repair of the movable asset is impossible, then a reconditioned asset will be offered. In addition, the Positive MRH plan relies on innovative data analysis to identify risks related to climate events to which the insured asset is exposed as soon as it is taken out.

Press release

Arkéa Banque Entreprises & Institutionnels launches “Arkéa Impulse”, a loan dedicated to the financing of environmental and social transition projects. This loan makes it possible to support, over the long term and with subsidised conditions, transition projects whose return on investment is not always immediate. The very first “Arkéa Impulse” loan, taken out by Brest Métropole Habitat, should enable the energy renovation of 600 social housing units in Finistère.

Press release

Hélène Bernicot is appointed Chairwoman of the "Communauté des entreprises à mission" (CEM). This association is the benchmark institution in France concerning companies with a mission. It brings together companies of all sizes, all sectors and all legal forms, companies with a mission or on the way to adoption, as well as researchers who are committed to rethinking the place of the company within our society. Hélène Bernicot shares the presidency with Guillaume Desnoës, entrepreneur and co-founder of the Alenvi network.

Press release

July-August

In line with the memorandum of understanding adopted last May, and the subsequent revision of CNCM’s Articles of Association, the Chairmen of the local banks of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, meeting at an Extraordinary General Meeting, unanimously voted to maintain Crédit Mutuel Arkéa and its federations within a single Crédit Mutuel. This vote officially ends the Crédit Mutuel Arkéa disaffiliation project initiated five years ago.

Press release

€8 million is the amount of funds raised by Le Train, the leading private high-speed rail company for inter- and intra-regional connections. A fundraising that will make it possible to prepare the start of the operation of its service by 2026. Crédit Mutuel Arkéa renews its support for the project by reinvesting in the company’s capital. This support is a concrete illustration of the group’s responsible investment strategy, serving the regions and their inhabitants.

Find out more

Arkéa Capital published its fourth ESG report, including a focus on the PhiNOE endowment fund, a section dedicated to responsible investment and an ESG analysis of the subsidiary’s portfolio.

ESG report

Arkéa Banque Entreprises et Institutionnels launches the PACT Carbon loan, in partnership with Carbometrix, to support its customers in their decarbonisation. This new loan offer, available from €2 million, was designed to allow borrowers to benefit from an interest rate bonus. This new system is based on a single non-financial criterion: the reduction of carbon intensity. In addition, the PACT Carbone loan offers a bonus aimed at valuing counterparties that have achieved a reduction target in line with a carbon trajectory compatible with the objectives of the Paris Agreement.

Press release

Launched a year ago, the Wines & Spirits sector aims to support the development of sustainable agricultural and wine-growing systems, by combining economic performance with positive environmental and social impacts. Driven by the Crédit Mutuel du Sud-Ouest federation and Arkéa Banque Entreprises et Institutionnels, this sector is based on a truly collective dynamic and illustrates our group’s commitment to development and future transitions in key economic sectors of the regions. Crédit Mutuel du Sud-Ouest has thus significantly accelerated its activity in the Cognac market: its customer portfolio has increased by 10% since January 2023; outstanding loans have increased by 54% and savings by more than 80% since June 2022.

Press release

September

The group is implementing its ambition to act in favour of responsible and protective real estate with the launch of its real estate department, deployed around three priority strategic areas: housing, transitions, and the regions. This department structures, densifies and improves the clarity of the solutions offered by the group in order to develop strategic, commercial and operational synergies between the various business lines and internal expertise for the benefit of all customers: individuals, professionals, companies and institutions.

Press release

A company with a mission since 2022, Kengo.bzh, the crowdfunding platform through donations, has just been awarded the B Corp label (movement of positive impact companies), in recognition of its commitment to sustainable development and its impact in Brittany. This international certification is awarded to companies that meet the highest standards in terms of social, environmental, and societal responsibility. 

Press release

Present in Occitanie, Nouvelle-Aquitaine, Île-de-France, Auvergne-Rhône-Alpes and Pays de la Loire, the Toulouse real estate group LP Promotion (€250 million in turnover and 300 employees) obtained total corporate financing of €34 million from Arkéa Banque E&I and Caisse d’Épargne Midi-Pyrénées. This fundraising will enable it to double its resources in the Paris region, to continue to build its regional network (it currently has nine branches) and to diversify its future real estate projects. LP Promotion covers the entire residential path: the main residence, home ownership, service residences for students, young professionals, and seniors as well as co-working spaces.

Find out more

Nexity, a global real estate operator, entrusts Suravenir with the creation and management of Nexity Life, a new fully digital life insurance contract dedicated to real estate. Available from an initial payment of €100, Nexity Life offers two euro-denominated funds (Suravenir Rendement 2 and Suravenir Opportunités 2), 12 unit-linked funds and 2 management options (free or free advised).

Press release

Fitch Ratings raises all the ratings of the Crédit Mutuel Arkéa group. These new ratings confirm the group’s financial strength and its attractiveness to investors. In particular, Fitch Ratings justifies the increase in these ratings by signing the memorandum of understanding on guaranteed autonomy, which “considerably strengthens the cohesion of the Crédit Mutuel group while maintaining significant regional autonomy”. The rating agency assesses “Crédit Mutuel Arkéa as an essential component of Crédit Mutuel as a whole”. These new ratings also reflect “the assessment of the stable and profitable business model of the group’s retail and commercial banking”.

Press release

Schelcher Prince Gestion launches Schelcher Working Capital Financing, a new cash investment offer backed by trade receivables in collaboration with the fintech Pytheas Capital. The objective is to finance the operating cycle of companies in a context of diminished liquidity by offering them flexibility to manage their cash flow and their payment schedules. 

Press release

October

As a sponsor of the University of Western Brittany (UBO), the group, in its maritime sector, supports the creation of the MeGadoRe (for Medical Gadolinium Recycling) chair led by three lecturer-researchers. MeGadoRe has three main objectives: to inform the radiological community of the impact of medical imaging on the marine environment; create chemical recycling processes for unused and discarded medical Gadolinium; and assess the possibilities of recovering medical Gadolinium and propose applicable solutions to the community to significantly reduce the footprint of medical activity on the environment.

Find out more

Maine-et-Loire Habitat, the public housing office (OPH), which manages a stock of 16,000 social rental housing units, has taken out two PACT Carbone impact loans for an amount of €7 million. Arkéa Banque Entreprises et Institutionnels, the Fédération des Offices Publics de l’Habitat (FOPH) and Arkéa Banque E&I have signed a partnership agreement. Objective: to support FOPH and its 186 members (representing a real estate portfolio of 2.3 million homes) in their ESG strategy thanks to the various impact financing schemes offered by our subsidiary.

Press release

During the summer, Fortuneo committed to donating 1 cent to the Surfrider Foundation for any payment by bank card of a minimum amount of €10. In total, €109,118.39 was collected and will be used to support the 2023 Ocean Initiatives campaign, the association’s flagship programme aimed at raising public awareness about the protection of the oceans and organising the collection of waste washed up on beaches and along waterways throughout Europe.

Press release

Suravenir signs a new partnership with the neo-bank Colbr, which takes the form of the launch of a 100% digital life insurance contract: Colbr Life. Founded in 2021, Colbr offers a global and digital investment platform that combines human advice and control of the most advanced technologies to help individuals optimise their investments.

Find out more

The group is the first banking institution to offer developers a generative artificial intelligence (AI) model in French and, above all, low energy. This new technology makes it possible to generate coherent texts and images through deep learning. Designed by Crédit Mutuel Arkéa’s internal teams, this model is in line with the commitments made in terms of open innovation and the transparent use of data.

Press release

Financo calls on Bleckwen to fight credit fraud even more effectively, particularly in automotive financing. Bleckwen brings along its expertise in fraud detection algorithms and Financo shares its market knowledge. 

Press release

November

The Ciaran and Domingos storms hit France hard and particularly its west coast. Suravenir Assurances registered more than 20,600 claims, an absolute record for the company for a climate event. To deal with the situation, the company, with the support of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, Nextalk and volunteers from Suravenir, is implementing exceptional measures: reinforced appeals and claims management; extension of reporting deadlines; acceleration of the payment of indemnities thanks to a simplification of the procedures and the reduction of the requests for supporting documents; easing of emergency rehousing measures for policyholders whose homes have been made uninhabitable by bad weather. The Fonds de Solidarités Assurances and the Solidarités programmes of CMB and CMSO are also activated to support the most vulnerable people.

Suravenir Assurances press release

Crédit Mutuel de Bretagne press release

Galapagos Gourmet has taken out a €3 million Pact Trajectoire ESG impact loan from Arkéa Banque Entreprises et Institutionnels. This financing will notably enable the installation of photovoltaic power plants on several production sites in Lanvallay (department 22) and Quimper (department 29). 

Press release

Kereis signs an agreement for the acquisition of Novélia from Crédit Mutuel Arkéa. Novélia will contribute to the development plans of Kereis, which wants to strengthen its wholesale distribution division. The partnership relationships between Novélia and the entities of the Crédit Mutuel Arkéa group will be maintained. This acquisition will enable Novélia to maintain its level of profitability and accelerate its growth in a rapidly consolidating brokerage market.

Press release

As part of the maritime business sector, Crédit Mutuel Arkéa, Crédit Mutuel du Sud-Ouest and Arkéa Banque Entreprises et Institutionnels become preferred partners of the Association des Ports de Plaiss de l’Atlantique (APPA). The objective is to support the association in the implementation of actions in favour of the responsible development of the activities of its 53 marinas, from the Loire-Atlantique to the Spanish Basque Country, whether on the economic, environmental or tourism fronts. 

Press release

Semberizh, the regional semi-public company in which Crédit Mutuel Arkéa is a shareholder, carries out a capital increase totalling €15.1 million in order to better support local authorities and companies in their projects and to invest in equity or via its subsidiaries (BreizhImmo, BreizhCité, BreizhEnergie). The operation is also accompanied by the creation of a new subsidiary, BreizhTourisme, a real estate asset management company dedicated to the tourism sector, in which the group holds 6% of the capital.

Press release

Financo launches its new energy renovation platform: Nidomio. The latter connects individuals with trusted professionals, enables everyone to know their rights in terms of aid and directs them towards possible financing.

Find out more

CFCAL is continuing to diversify its offer and has launched a 100% digital passbook savings account with a new partner meilleurtaux.com ("best rate").

Find out more

Suravenir strengthens its partnership with Hedios with the launch of two new investment frameworks for 'H-ranges': a Retirement Savings Plan (Suravenir PER) and a capitalisation contract for legal entities (Hedios Capi Société). As an independent company, Hedios is helping to make the structured products asset class more accessible, notably through digital tools. It has more than 5,000 customers with outstandings of €500 million.

Press release

Crédit Mutuel de Bretagne has set up the salary rounding system for its employees. Launched in partnership with the organisation Microdon, the salary rounding makes it possible, on a voluntary basis, to make a monthly micro-donation to the Grain de Sel charity. This association, chosen by employees, aims to provide a fun and stress-free environment for hospitalised children. The proposed salary rounding is carried out to the nearest euro and may be supplemented by a fixed amount.

Find out more

La Française de l’Énergie (FDE), which specialises in setting up energy production and recovery sites via on a local basis, has taken out an ESG “Impulse” loan for €5.8 million with Arkéa Banque E&I on behalf of its subsidiary Gazonor. It is the main producer of gas and green electricity from mining gas in France and Belgium.

Press release

Arkéa Banque E&I signs a partnership with Birdeo, a recruitment and HR consulting firm specialising in CSR. Thanks to People4Impact, a subsidiary of Birdeo, the bank’s customers will now be able to benefit from tailor-made support enabling them to best apply their impact-related regulatory obligations (Climate law, CSRD, etc.) and create new CSR-related development opportunities: executive training, carbon assessments, responsible purchasing policy, etc.

Press release

Crédit Mutuel du Sud-Ouest rewarded the 10 winners of its "Territoires Solidaires" appeal for projects, selected from among 94 applications. Made possible by the mobilisation of all its local banks, this competition works to support the structures of the social and solidarity ("third sector") economy in its region. More than €92,000 in donations to the 10 winning charities, including Grand Sud-Ouest Guide Dogs, Les Butineurs du Bonheur and Hand to Hand.

December

Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest have awarded prizes for the 7th edition of the "Idées neuves" trophy, which rewards innovative entrepreneurial projects. The winners will benefit from personalised support for one year, provided by the Tactique association in Brittany and by Cosme, a collective of cooperative freelancers, in Nouvelle-Aquitaine.

Arkéa Assistance has launched “Smart'Assistance”, a new remote assistance offer on smartphone, backed by its Ensemble mobile app. It is already available from its retailer partners as a white label - Générale des Services offers it under the Nomade brand - and will be accessible to individuals in early 2024. This solution offers a remote assistance service on smartphone with geolocation, a listening room 7 days a week, 24 hours a day and makes it possible to issue alerts using an SOS button in the event of an incident (fall, fainting, danger, etc.).

Find out more

Head of Risk Management since 2019, Elisabeth Quellec has been appointed Head of the group’s Retail Customers Division and also joins the group’s Executive Committee. She succeeds Frédéric Laurent, who has chosen to retire.

Press release

Crédit Mutuel Arkéa has become a minority shareholder of the cooperative company Windcoop, which is developing a low-carbon shipping solution using new container sailing ships. Its future vessel, which will be built by the Piriou shipyard, of which Crédit Mutuel Arkéa is also a partner, will operate a first maritime freight line between Marseilles and Madagascar in 2026. Windcoop has also set itself the objective of integrating the local populations of the destinations of its maritime freight lines into the company’s dynamic, by offering fair and decent working conditions, whether on-board, on-shore or in terms of wages.

Press release

Crédit Mutuel Arkéa announces the renewal of its partnership with the Alli'Homme association, in charge of contractual monitoring and the technical implementation of environmental services. As the association’s first customer three years ago, this renewal marks the group’s desire to strengthen its investment alongside agricultural players in the region.

Press release

In Nouvelle-Aquitaine, the Boards of Directors of the local banks and the CMSO federation have responded to the appeal of food banks and committed to donating more than €100,000 to structures in their region: the food bank of Gironde, Secours Populaire, the Red Cross, Restos du Cœur, etc.

The Arkéa Arena, the concert hall on the right bank of Bordeaux in Floirac, enjoyed record attendance in 2023 with more than 500,000 spectators this year alone. Since it opened in 2018, it has welcomed more than two million spectators and orchestrated 612 events. For 2024, the Arkéa Arena plans a full season with more than 100 events already confirmed.

Main awards for 2023

Financial Innovation

The approach used to calculate overall performance initiated by Crédit Mutuel Arkéa has been rewarded by the financial marketplace at the Finance Leaders’ Summit. The group has won the Gold Trophy in the “Major Group Finance Department” category. The jury highlighted the innovative nature and transformation of the Finance Department in line with the group’s Purpose; and in the “Best ESG initiative” category for the innovative and inspiring aspect of the approach and the clarity of the indicators. Crédit Mutuel Arkéa was also recognised at the Digital Finance Awards in the CSR category.

Everyday banking

The independent comparator Pricebank takes an interest in the prices and services offered by 19 French banks, giving them two ratings out of 20. Fortuneo Banque, the least expensive of all, wins the title of best bank with a cumulative score of 34.2/40. Crédit Mutuel de Bretagne took first place on the podium for banking services with a great score of 17.7/20. Fortuneo also won the Banking Trophy - "Tarifs 2024" - as well as the Quality Award, which goes to companies offering the highest level of satisfaction to their customers. Fortuneo wins the first everyday banking advisor award with 85% of customers satisfied. These awards are given by the comparator MoneyVox.

Find out more

Find out more

Asset management

"Trophées Sicav", organised by "Le Revenu", recognised Crédit Mutuel Arkéa and its asset management companies, Federal Finance Gestion and Schelcher Prince Gestion, by awarding the Gold Trophy for best asset management company over three years and the 2023 Golden Trophy for the best Europe Bonds range over three years.

Press release

Life insurance

"Vie Plus" Suravenir's arm dedicated to wealth management advisors and specialised brokers, is ranked first in the Pension and Life Insurance categories of the 30th supplier ranking drawn up by the magazine "Gestion de Fortune" (wealth management). The ranking is based on ratings collected from 4,500 independent advisors.

Find out more

"Le Revenu" has awarded, for its 46th edition, a Gold Trophy for life insurance contracts to Fortuneo Vie, a support provided by Suravenir, in the “Internet contracts” category. Suravenir was also honoured for "Patrimoine Vie Plus" (wealth management category) and "Yomoni Vie" (thematic contracts category).

Find out more

Fortuneo was also awarded the Academy Award for best internet life insurance contract by the "Gestion de Fortune" jury.

Find out more

CSR

Fortuneo obtained the Responsible Digital Label, which rewards companies that commit to reducing the environmental, economic, and social impact of digital technology. This certification is valid for a period of 36 months, with a mid-term update to ensure that the commitments are being properly met.

Press release

A year of sport

January

A major partner of the Union Bordeaux Bègles rugby team since 2018, Arkéa has renewed its partnership with this Top 14 side until 2028. This agreement “Testifies to our desire to support ambitious and large-scale sports projects in our regions”, said Julien Carmona.

Press release

February

As the title sponsor of the Pro Cycling Breizh teams managed by Emmanuel Hubert, Arkéa has extended its commitment for two additional seasons until the end of 2025.

Find out more

July

Crédit Mutuel Arkéa becomes the title sponsor of the future stadium project for the Ligue 1 Stade Brestois 29 football club. By becoming the title sponsor of the new stadium, Crédit Mutuel Arkéa is part of a shared history, spanning more than 50 years, and reaffirms its desire to build an ambitious future for Stade Brestois 29 by endowing it with a modern and fit for purpose infrastructure to underpin its sporting reputation and, more broadly, to strengthen the appeal of the region.

Press release

August

A partner of Vannes Rugby Club since 2021, Arkéa is strengthening its commitment for the 2023-2024 season. Arkéa now features in the centre of the professional team's jersey which plays in the Pro D2 division and also on the Jersey of the second team of the Breton rugby club. This renewal testifies to Crédit Mutuel Arkéa’s desire to support the sporting ambitions of Vannes Rugby Club, whose values mirror its own. In addition to the sporting aspect, Vannes RFC has a unifying influence in its region with nearly 500 sponsors and a large and loyal public.

Press release

October

The Arkéa Samsic teams end the 2023 season with a record of 14 wins and 42 other places. For the men, the main wins were obtained by young riders with great potential such as Kévin Vauquelin and Luca Mozzato, as well as by Jenthe Biermans and Arnaud Démare, who joined the team during the season. For its first year in the UCI World Tour – the highest international level – the men's team is ranked 19th in the world. For the women, it is worth highlighting the great performance of Amandine Fouquenet, who won the French Cyclo-cross Cup with flying colours. The Breton won four of the six rounds this season, including the last on the Flamanville track in Normandy. The Arkéa-Samsic team will change its name as of 1 January 2024 and will become Arkéa B&B Hotels. The arrival of the hotel chain will enable the sports structure to move up a gear. The budget dedicated to the girls will double and a “development” team will be created. It will enable a dozen young riders to train in several disciplines (road, cyclo-cross, track).

Find out more

November

A successful transatlantic start for the Imoca Paprec Arkéa: Yoann Richomme and Yann Eliès, at the forefront throughout the race, finished the Jacques Vabre transatlantic race in a very good second place. They completed the Atlantic crossing in 12 days, 1 hour 41 minutes and 16 seconds and maintained a lead of 9 minutes over the Sam Goodchild-Antoine Koch duo.

Find out more

December

Yoann Richomme wins the first edition of the Return to Base, the solo “return” leg of the Jacques Vabre transatlantic race. The skipper added a first Imoca title and a second prestigious victory under the Paprec Arkéa colours, after the Route du Rhum last year in Class 40. All eyes are now on the 2024 season with a comprehensive programme: a construction phase, two transatlantic races (The Transat, New York - Vendée) before the Vendée Globe, which will start on 10 November 2024.

Find out more

January 2024

The start of the first edition of the Arkéa Ultim Challenge - Brest, an unprecedented round-the-world race, happened on 7 January. This is the first solo race organised aboard Ultim maxi-trimarans, these giants of the seas. Six skippers – Charles Caudrelier, Eric Péron, Anthony Marchand, Thomas Coville and Armel Le Cléac'h – left Finistère for a west-to-east trip, via the three capes: the Cape of Good Hope in South Africa, Cape Leeuwin in Australia, and Cape Horn in Chile, before coming back up the Atlantic and returning to Brest, about fifty days for the fastest. By lending its name to this new event, Crédit Mutuel Arkéa is supporting a flagship event organised in Brest, in the heart of one of the group’s historic cradles, in line with its commitment to regional development.

Arkéa – B&B Hotels wins its first French cyclo-cross championship title in Camors, in the Morbihan department. Holder of the title, Clément Venturini won in the sprint, his sixth title of French Champion. Amandine Fouquenet is vice-champion of France's elite women, with Anaïs Morichon 3rd. Lastly, Rémi Lelandais is ranked second in the "Espoirs" category.

1.9The agenda

Agenda subject to modifications

1.10Solidarity relationships

The Crédit Mutuel group, within the meaning of Article L.511-20 of the French Monetary and Financial Code (CMF), is governed by the latter, in particular Articles L.511-30 to L.511-32 of the CMF relating to central bodies and Articles L.512-55 to L.512-59 relating to Crédit Mutuel.

In accordance with these provisions, CNCM was entrusted with the representation of the Crédit Mutuel banks affiliated with the Crédit Mutuel network at the European Central Bank and the French authority for prudential control and resolution (ACPR), as well as the duty of ensuring the cohesion of this network and the application of the legislative and regulatory provisions specific to credit institutions, to exercise administrative, technical and financial control over the organisation and management of each bank and to take all necessary measures for the correct operation of the network, in order to guarantee its financial stability and the protection of depositors and members.

Within the framework of its public authority prerogatives, General Decision 1-2020 relating to solidarity was taken by the CNCM as well as General Decision 2-2020 concerning the implementation of measures in phases of proven financial difficulty or resolution.

1.10.1Solidarity links within Crédit Mutuel Arkéa

The solidarity mechanism provided for within Crédit Mutuel Arkéa is an inter-federal mechanism based on Article R.511-3 of the French Monetary and Financial Code.

This text stipulates that the European Central Bank (ECB) may, on the proposal of the ACPR, for mutual and cooperative groups, issue a collective licence to a regional or federal bank for itself and for all the banks affiliated to it “providing that the liquidity and solvency of the local banks are guaranteed as a result of this affiliation”.

Crédit Mutuel Arkéa benefits from this collective approval for itself and for all the local banks that are members of the Crédit Mutuel de Bretagne and Sud-Ouest federations, inasfar as this membership guaranteed the liquidity and solvency of the local banks.

The solidarity mechanism is organised by the financial regulations contained in each of the general operating rules specific to the federations of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest, and the internal regulations of Crédit Mutuel Arkéa. It is binding only on the member local banks, these federations and Crédit Mutuel Arkéa. Furthermore, it does not create any obligations of the member local banks vis-à-vis third parties. In other words, Crédit Mutuel Arkéa members are not bound by any passive solidarity with third parties, and creditors of a local mutual member bank can only turn to that bank and not to any other or to Crédit Mutuel Arkéa in any other way.

This solidarity mechanism is essentially reflected in the constitution, at the level of each federation, of the federal fund that ensures the equalisation of the results of the local member banks, in accordance with General Decision no. 1-2020 of the Confédération nationale du Crédit Mutuel (CNCM).

The federal fund is fed by allocations from local funds and includes the federal solidarity fund and the federal reserve fund.

• The federal solidarity fund ensures the equalisation of the results of the local member banks by means of endowments and subsidies. Any local bank that has been in deficit for a period of three (3) consecutive years is subject to a special review. A recovery plan is set up with the departments of the federation concerned and Crédit Mutuel Arkéa. At the end of the recovery period set out in the plan, if the deficit is confirmed, the federation concerned, in consultation with Crédit Mutuel Arkéa, decides on the future of the local bank.
• The federal reserve fund may intervene in favour of local member banks whose net position is negative or whose results are negative, as well as in favour of those that have been victims of an exceptional disaster.

The federation decides each year on the level of endowment to this fund. The federal reserve fund is managed by the Federation. Requests for intervention submitted to it are examined by a Committee of administrators.

In addition to this federal fund, Crédit Mutuel Arkéa can also intervene directly in the form of advances, subsidies or loans granted to local member banks in difficulty.

In addition, Crédit Mutuel Arkéa provides support to its subsidiaries within the framework of prudential supervision systems on a consolidated basis (Articles 7 and 8 of EU Regulation 575/2013, as amended, supplemented by ad hoc intra-group financial liquidity agreements), the system provided for in the CMF under Article L.511-42, as well as the additional supervision obligations described in the Order of 3 November 2014 on the additional supervision of financial conglomerates, as amended, and transposing European Directive 2002/87/EC, as amended.

1.10.2Solidarity links within Crédit Mutuel

Crédit Mutuel’s solidarity system is designed to ensure the liquidity and solvency of all the institutions affiliated to Confédération Nationale du Crédit Mutuel (CNCM) at all times in order to prevent any default. It is based on a set of rules and mechanisms set up at regional group level and at confederal level.

As a reminder, the solidarity between CNCM affiliates is unlimited.

• Provisions applicable at the level of regional groups

The solidarity mechanism provided for within the Regional Federation concerned is a mechanism that is based on Article R.511-3 of the CMF, independently of the statutory provisions relating to the joint and several liability of members within the limit of the nominal value of the shares subscribed by the member.

Each federation must set up a solidarity system between the local banks within its territorial jurisdiction.

This system must enable a local bank to avoid a long-term deficit and/or to ensure the recovery of a deteriorated situation. It ensures the equalisation of the results of the member funds by means of a federal fund, through contributions, in the form of contributions or subsidies. The contribution obligation is imposed on all funds (including the federal or inter-federal fund), or only on funds with positive results, depending on the regulations of the federal fund concerned in force. The contributions, which ensure equalisation, and the subsidies must make it possible to cover the losses recorded in the financial year and any tax deficits carried forward. The equalisation subsidies must include the sums necessary to pay the remuneration of the shares. Subsidies paid by the Federal Fund are normally repayable.

Implementation of recovery measures at the level of “regional groups” within the meaning of the “GCIs”. A system reviewed and updated annually enables the regional group to monitor a certain number of key indicators, included in the risk appetite framework adopted by the CNCM’s Board of Directors, and to implement the corrective measures provided for in the recovery plan if the indicators are exceeded.

In the event of difficulty and under the control of the CNCM, a regional group may request assistance from another regional group, particularly in the implementation of the recovery plan.

If no regional solidarity solution has been put in place or has not restored compliance with the key indicators within the timeframe set out in the recovery plan, or if objective elements allow for an early conclusion that the implementation of these solutions would prove insufficient, the national solidarity mechanism is implemented.

• Provisions adopted at national level

Confédération Nationale du Crédit Mutuel is responsible, without limitation, for ensuring the cohesion of its network and the smooth operation of its affiliated institutions. To this end, it must take all necessary measures, in particular to guarantee the liquidity and solvency of each of these institutions and of the network group (Article L.511-31 of the French Monetary and Financial Code).

According to the procedures laid down by the GCIs, the necessary interventions may be decided by the CNCM Board of Directors if it is found that the mechanisms existing at the level of the regional groups are insufficient to deal with any difficulties.

2.Corporate
governance

The provisions of Article L.225-37 and L. 225-37-4 of the French Commercial Code stipulate that the Board of Directors shall present to the General Meeting a corporate governance report attached to the management report referred to in the same article. However, the corresponding information may be presented in a specific section of the management report. This report gives an account of the composition of the Board and the application of the principle of balanced representation of women and men on the Board, the conditions for preparing and organising its work, as well as any limitations that the Board of Directors may place on the powers of executive management. As Crédit Mutuel Arkéa is not a company whose shares are admitted to trading on a regulated market, it has decided not to refer to the AFEP-MEDEF Code. However, it refers to the Governance Guide for Cooperatives and Mutuals, which contains a number of recommendations so that this model revolves around six key values: democratic governance, non-profit or limited profitability, a relationship of trust and respect with and between members, the logic of commitment to the community, roots in the regions and finally the long-term management vision, values to which Crédit Mutuel Arkéa adheres.

Crédit Mutuel Arkéa complies with current regulations on corporate governance applicable to credit institutions. In this respect, it should be noted that the European Banking Authority issued guidelines on internal governance dated 8 December 2021 (EBA/GL/2021/05), with which the company intends to comply fully.

Since its creation, the Crédit Mutuel Arkéa cooperative Public Limited Company (PLC) (the parent company of our group) has chosen an organisation that is separate from its governance, structured around a Board of Directors chaired by Julien Carmona and an Executive Committee chaired by its Chief Executive Officer, Hélène Bernicot, assisted by three Deputy Chief Executive Officers: Anne Le Goff, Bertrand Blanpain and Frédéric Laurent.

Crédit Mutuel Arkéa is a cooperative Public Limited Company with variable capital (société anonyme coopérative à capital variable). There are no valid delegations of authority granted by the General Shareholders’ Meeting in the area of capital increases pursuant to Articles L.225-129-1 and L.225-129-2 of the French Commercial Code.

2.1Conditions for the preparation of the corporate governance report

The corporate governance report is prepared in accordance with the provisions of Article L.225-37 of the French Commercial Code. The Board of Directors reports on the composition and application of the principle of balanced representation of women and men within its membership, the conditions for preparing and organising the Board’s work and the internal control and risk management procedures implemented by the company, detailing in particular those procedures relating to the preparation and processing of accounting and financial information for the parent company financial statements and, where applicable, for the consolidated financial statements. Without prejudice to the provisions of Article L.225-56 of the French Commercial Code, this report also indicates any limitations that the Board of Directors may place on the powers of executive management.

The preparation of the report is coordinated by Crédit Mutuel Arkéa’s General Secretary and Corporate Communications Department, which, in addition to providing ongoing assistance to the Board’s work and missions, is also responsible for providing general secretarial services for the Appointments and Governance Committee and the Board of Directors’ Strategy and Corporate Social Responsibility Committee. In addition, the General Secretary and Corporate Communications Department has received contributions for the preparation of this report from:

• the General Inspection and Periodic Control Department, which is responsible for the General Secretary of the Board of Directors’ Risk and Internal Control Committee;
• the Finance and Overall Performance Department responsible for the General Secretary of the Financial Statements Committee;
• the Dynamics and Human Relations Department responsible for the General Secretary of the Compensation Committee.

The Statutory Auditors verify that the corporate governance report included in Crédit Mutuel Arkéa’s 2023 Universal Registration Document incorporates the information required by Article L.225-37-4 of the French Commercial Code. This report is then examined by the Board of Directors. It will be presented for approval to the Annual General Shareholders’ Meeting (the local banks of Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations).

2.2The Board of Directors of Crédit Mutuel Arkéa

2.2.1Composition of the Board of Directors

The Board of Directors is composed of 20 directors and 2 non-voting Board members:

• 16 directors from the cooperative movement (6 women and 10 men), 2 directors not from the cooperative movement (2 women);
• 2 non-voting Board members, not from the cooperative movement, (1 woman and 1 man);
• 2 employee directors (1 woman and 1 man).

The directors and non-voting Board members, with the exception of employee directors, of Crédit Mutuel Arkéa are elected at the General Meeting by all shareholders, including the 291 Chairpersons of the local banks of the two federations that make up Crédit Mutuel Arkéa. These directors are themselves elected by the members, who are also customers, of their local banks at the General Meeting of their local banks, in accordance with the cooperative model of “one person one vote”. There is no procedure for allocating multiple voting rights.

This elective system, whose electorate is made up of all our members, ensures genuine customer representation on Crédit Mutuel Arkéa’s governing bodies and guarantees that the Board of Directors is independent from the company’s management.

Employee directors are appointed by the Group Works Council.

The directors of the Board representing the members are of French nationality and are proposed by the federations that make up Crédit Mutuel Arkéa:

• 12 directors in respect of the banks affiliated to the Crédit Mutuel de Bretagne federation;
• 4 directors in respect of the banks affiliated to the Crédit Mutuel du Sud-Ouest federation.

Many Crédit Mutuel Arkéa directors also sit on the governing bodies of one or more group subsidiaries. In line with Crédit Mutuel Arkéa’s cooperative identity, the vast majority of directors sitting on the Boards of Directors and Supervisory Boards of these subsidiaries are cooperative members elected or appointed by the members and their representatives.

Directors and non-voting Board members who are not from the cooperative movement are also elected by the Annual General Meeting. Their candidacies are subject to pre-selection by the Appointments and Governance Committee and approval by Crédit Mutuel Arkéa’s Board of Directors. They sit on the Board for their expertise and the complementary nature of the analyses they provide to the deliberating body.

In 2023, Valérie Barlois-Leroux and Monique Huet held the positions of directors on the Board of Directors not from the cooperative movement. Frédéric Lemoine was also elected a non-voting Board member, not from the cooperative movement, at the General Meeting of 11 May 2023 and thus joined Isabelle Maury, elected at the General Meeting of 10 May 2022.

The employee directors are appointed by the Group Works Council for a period of three years. The Group Works Council meeting of 8 February 2023 renewed the position of Marie Vignal-Renault and appointed Jean Le Nir as employee directors. The latter succeeded Jean-François Gourvenec, appointed on 31 March 2022.

Crédit Mutuel Arkéa’s Combined General Meeting was held on 11 May 2023 at the Arkéa Arena in Bordeaux.

The General Meeting is convened electronically, and the notice of meeting is also made available to shareholders on their intranet in order to ensure a high attendance rate. A paperless sign-in system and voting by electronic boxes were used. The attendance rate at the General Meeting was 91.6% (84% in 2022).

The General Meeting, on an ordinary basis, elected and reappointed its directors and non-voting Board members, approved its financial statements and the terms and conditions for the appropriation of income for the financial year, approved the total amount of compensation paid to the regulated staff and approved the appointments of the incumbent auditor and the alternate as part of the five-year cooperative audit process. On an extraordinary basis, it approved minor changes in the text of the Articles of Association, following the change of the body in charge of appointing directors representing employees.

The business address of Crédit Mutuel Arkéa’s directors and corporate officers is: 1, rue Louis Lichou – 29480 Le Relecq-Kerhuon – France.

With regard to the composition of the Board, at the 2023 General Meeting, the following changes were approved:

• the non-reappointment of the position of Marta Dias, at the request of the person concerned and her future replacement through the co-option mechanism;
• the reappointments of Thierry Bougeard, Valérie Blanchet-Lecoq, Philippe Chupin, Patrick Le Provost and Dominique Trubert, from the Crédit Mutuel de Bretagne federation, for a period of three years;
• the reappointments of Monique Huet and Valérie Barlois-Leroux, directors not from the cooperative movement, for a period of three years;
• the appointment of Frédéric Lemoine as a non-voting Board member, not from the cooperative movement, for a period of three years.

On 7 July 2023, an exceptional Ordinary General Meeting was held in an essentially remote format from the Palais de la Bourse in Bordeaux (postcode 33000).

This General Meeting was exclusively devoted to the approval of the retention of Crédit Mutuel Arkéa and its federations within Crédit Mutuel and the discontinuation of the disaffiliation project initiated in April 2018.

The participation rate was 97%. The resolution was unanimously approved.

This meeting was followed by a meeting of the Board of Directors which, on the proposal of the Crédit Mutuel de Bretagne federation, co-opted Stéphane Cloarec as director, replacing Marta Dias. This co-option will be subject to ratification at the 2024 Annual General Meeting.

Thus, 45% of the Board of Directors is made up of women.

The Board of Directors has been chaired by Julien Carmona since 4 June 2021.

Pursuant to Article L.511-58 of the French Monetary and Financial Code and the position of the French Prudential Supervisory and Resolution Authority (ACPR), the functions of Chairman of the Board of Directors and Chief Executive Officer of Crédit Mutuel Arkéa are separated.

Only the Chairman may act on behalf of the Council and speak on its behalf. He may, in close cooperation with the Executive Management, represent Crédit Mutuel Arkéa in its high-level relations, particularly with major customers, partners and public authorities, at regional, national, and international level. The Chairman drives the group’s strategy towards autonomous, high-performance development, attached to its territorial roots and respectful of cooperative values and the company’s Raison d’être (Purpose).

The Board of Directors has a Vice-Chairwoman, Sophie Violleau, who is also Chairwoman of the Crédit Mutuel du Sud-Ouest federation. The Vice-Chairperson may represent Crédit Mutuel Arkéa on behalf of the Chairman.

The Board has two lead directors: Monique Huet, Climate and Environmental Risks Officer, and Valérie Moreau, ESG-Climate Officer.

A representative of the Central Social and Economic Committee also attends the meetings of the Board of Directors in an advisory capacity.

The age limit for Directors is set by the Articles of Association at 65 years old for a first election and 70 years old for a reappointment. The three-year position is renewable up to three times, except for the Chairpersons of the federations, the Vice-Chairperson of Crédit Mutuel du Sud-Ouest and the four departmental Chairpersons of the Crédit Mutuel de Bretagne federation, for which no limitation, other than that related to age, is applicable.

The Board of Directors has internal operating rules and regulations. These rules confirm the essential missions of Crédit Mutuel Arkéa’s Board of Directors, set out the operating procedures of the body and set out the rights and obligations of each director and non-voting Board member. These rules of procedure were supplemented by the Crédit Mutuel Arkéa Directors’ Charter, which sets out the duties of the Board’s 22 members. This charter lists the individual skills of the members of the Board of Directors in order to guarantee a collective skillset suited to the exercise of sound and effective governance of the Company. It also aims to ensure that the members of the Board of Directors are able to act independently and in a committed manner and refers to the guidelines set by the European Banking Authority (guidelines EBA/GL/2021/05 and EBA/GL/2021/06 point 9.3), which identify the notion of independence as “the fact that a member of the management body in his or her supervisory function has no current or recent relationship or ties, of any nature whatsoever, with the institution in question or its management, which could influence the member’s objective and balanced judgment or reduce his or her ability to make independent decisions”.

This notion is supported by a grid comprising 11 formal independence criteria. 19 of the 20 directors on the Board of Directors meet at least 10 of these criteria and can therefore be considered as independent.

As Chairman of the Board of Directors of Crédit Mutuel Arkéa, Julien Carmona is paid for his duties. He is therefore not subject to the formal independence criteria set by this grid. The details of his compensation are given in Section 2.8.2.1 "Chairman of the Board of Directors of Crédit Mutuel Arkéa".

The number of independent members must be defined according to a principle of proportionality aiming to match, in a consistent manner, the governance arrangements with the risk profile and the business model.

The Board of Directors of Crédit Mutuel Arkéa therefore fully exercises its role in accordance with the provisions of the Articles of Association, the rules of procedure of a financial nature, its operating rules, its Directors' Charter, and the charters specific to each of its specialised committees.

In summary:

The composition of the Board of Directors at 31 December 2023 was as follows:

The composition of the Board of Directors at 31 December 2023 is detailed below.

Julien CARMONA
Chairman of Crédit Mutuel Arkéa, 53 years 1st appointment: 11.05.2021 Term expires: 2024	Summary biography Holder of a master’s degree and an associate professor of history, a graduate of the École Normale Supérieure and the École Nationale d’Administration, Julien Carmona began his career in the public service (national education). After joining the Finance Inspectorate in 1997, he joined BNP Paribas in 2000 before being appointed Economic Advisor to the President of the French Republic in 2004. In 2007, he became a member of the Management Board and Chief Financial Officer of the Caisse d’Épargne group (now BPCE), then joined SCOR SE as Deputy Chief Executive Officer (2009-2012), then Nexity (2014-2021), where he successively held the positions of Deputy General Manager, then Deputy Chief Executive Officer. He joined the Board of Directors of Crédit Mutuel Arkéa in 2021 and was elected Chairman. He was also elected Chairman of the Crédit Mutuel de Bretagne federation on 10 June 2022.
	Other positions held within Crédit Mutuel Arkéa
	Director of Caisse de Crédit Mutuel du Relecq-Kerhuon Chairman of the Crédit Mutuel de Bretagne federation
	of which positions held in subsidiaries
	Chairman of the Board of Directors of Arkéa Capital Holding since 24.04.2023
	Other positions held outside Crédit Mutuel Arkéa
	Vice-Chairman of the Board of Directors of Confédération Nationale du Crédit Mutuel and Chairman of the Risk Committee since 15.05.2023 Vice-Chairman of the Board of Directors of Caisse Centrale de Crédit Mutuel since 07.05.2023 Member of the April Advisory Committee since 07.06.2023 Director representing Crédit Mutuel Arkéa on the Board of Directors of the Paris Europlace association since 28.06.2023 Director representing Suravenir on the "Fonds Stratégique de Participations"
	Terms of office expired during the last five financial years
	Deputy Chief Executive Officer of NEXITY SA Chairman of the Board of Directors of CREDIT FINANCIER LILLOIS Chairman of SIG 30 PARTICIPATIONS Chairman of NEXIMMO 39 Chairman of SARI INVESTISSEMENTS SAS Chairman of NEXIM 4 SAS Chairman of NEXIMMO 12 SAS Chairman of NEXIMMO 19 SAS Director of NEXITY IMMOBILIER D'ENTREPRISE SA Director of EDOUARD DENIS DEVELOPPEMENT Member of the Supervisory Board of BUREAUX A PARTAGER Member of the Supervisory Board of NEW PORT SAS
	of which positions abroad
	Germany Manager of NEXITY DEUTSCHLAND GmbH Chairman of the Supervisory Board of PANTERA AG   Belgium Chairman of the Board of Directors of CITY GARDEN REAL ESTATE Director of NEXITY BELGIUM Director of G&G IMMO SA   Spain Sole Director of DOMUS SOROLLA   Italy Consigliere et Amministratore delegato of AGENXITY SRL Consigliere et Amministratore delegato of NEXITY HOLDING ITALIA SRL Amministratore unico of NEXITY MILANO OLGIATI SRL Amministratore unico of NEXITY MILANO PORTA VOLTA SRL Amministratore unico of LIVRAGHI 18 SRL Amministratore unico of NEXITY RESCALDINA SRL Amministratore unico of NEXITY MILANO FARAVELLI SRL Amministratore unico of NEXITY TRENTA DUE SRL Amministratore unico of NEXITY TRENTATRE SRL Amministratore unico of NEXITY TRENTAQUATRO SRL Amministratore unico of NEXITY TRENTRACINQUE SERL Amministratore unico of NEXITY TRENTASEI SRL   Poland Manager of NEXITY POLSKA Sp Z.o.o Manager of NEXITY POLSKA 303 Sp Z.o.o Manager of NP 7 Sp Z.o.o Manager of NP 8 Sp Z.o.o Manager of NP 9 Sp Z.o.o Manager of NP 10 Sp Z.o.o Manager of NP 11 Sp Z.o.o Manager of NP 12 Sp Z.o.o Manager of NP 14 Sp Z.o.o Manager of NP 15 Sp Z.o.o Manager of NP 16 Sp Z.o.o Manager of NP 18 Sp Z.o.o Manager of NP 19 Sp Z.o.o Manager of NP 20 Sp Z.o.o Manager of NP 21 Sp Z.o.o Manager of NP 23 Sp Z.o.o   Portugal Manager of NEXITY PORTUGAL LDA Manager of NEXITY PORTUGAL NP1 LDA Manager of NEXITY PORTUGAL NP2 LDA Manager of NEXITY PORTUGAL NP3 LDA Manager of NEXAE VILAMOURA

Sophie VIOLLEAU
Vice-Chairwoman Crédit Mutuel Arkéa, 51 years 1st appointment: 21.04.2016 Term expires: 2025	Summary biography A graduate of the Institut Supérieur des Hautes Études Économiques et Commerciales, Sophie Violleau has held various positions in marketing since 1994. In 2008, she founded Parenteo Services, a personal services company, and co-managed it until 2022. She is now the Manager of SDV Holding. She is also Chairwoman of the non-profit, public-interest Bocké Foundation, which manages 11 accommodation establishments for dependent elderly people in the Gironde department and the Basque region. She was elected Vice-Chairwoman of Caisse de Crédit Mutuel de la Couronne in 2015 and became Chairwoman of the Crédit Mutuel du Sud-Ouest federation in 2020.
	Other positions held within Crédit Mutuel Arkéa Chairwoman of the Crédit Mutuel du Sud-Ouest federation Chairwoman of the Crédit Mutuel du Sud-Ouest regional bank Director of Caisse de Crédit Mutuel de la Couronne Chairwoman of the Board of Directors of the Crédit Mutuel Arkéa endowment fund since 10.07.2023   of which offices held in subsidiaries Chairwoman of the Board of Directors of Suravenir Assurances Chairwoman of the Board of Directors of Nouvelle Vague until 30.09.2023 Permanent representative of Crédit Mutuel Arkéa, then Chairwoman of the Supervisory Board of Arkéa Capital since 26.04.2023 Director, then Chairwoman of the Board of Directors of Arkéa Capital Investissement since 26.04.2023 Director of Arkéa Capital Holding Vice-Chairwoman of the Supervisory Board of Apivia Director of Château Calon Ségur	Other positions held outside Crédit Mutuel Arkéa Manager of SDV HOLDING Director of Entreprendre Au Feminin Charente until 07.02.2023 Chairwoman of the Éric et Odette Bocké Foundation   Terms of office expired during the last five financial years Manager of SARL Parenteo Services

Valérie BARLOIS-LEROUX
Director not from the cooperative movement of Crédit Mutuel Arkéa, 54 years 1st appointment: 14.05.2020 Term expires: 2026	Summary biography A graduate of ESCP and a former high-level sportswoman, Olympic fencing medalist, Valérie Barlois-Leroux spent 24 years at the Bouygues Construction group, where she held various positions (at the head office and in subsidiaries), including in the Human Resources Department, the Sales Department and the Real Estate Development Department. She then served as Director of Development and Partnership Relations at Enéal (Action Logement group) until July 2021. Since September 2021 she has held the position of Deputy Chief Executive Officer in charge of human development at BCA Expertise.
	Other offices held within a Crédit Mutuel Arkéa subsidiary Chairwoman of the Board of Directors of Arkéa	Other positions held outside Crédit Mutuel Arkéa Member of the Board of Directors of COJOP Paris 2024 (association) Chairwoman of Ambition 2.24 – Nouvelle Aquitaine (association)   Terms of office expired in the last five financial years Chairwoman of Kalymnos SAS

Valérie BLANCHET-LECOQ
Director of Crédit Mutuel Arkéa, 58 years 1st appointment: 14.05.2020 Term expires: 2026	Summary biography Valérie Blanchet-Lecoq holds a degree in business law and a DESS (post-graduate diploma) in business law. She has been a lawyer since 1994. After having practiced in various law firms, she now practices her profession at the law firm Jurilor located in Quéven (department 56), where she is co-manager. She was elected director of Caisse de Crédit Mutuel de Lorient Porte des Indes in 2016.
	Other positions held within Crédit Mutuel Arkéa Director of Caisse de Crédit Mutuel de Lorient Porte des Indes   of which offices held in subsidiaries Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Suravenir	Other positions held outside Crédit Mutuel Arkéa Co-Managing lawyer of SELARL Jurilor

Thierry BOUGEARD
Director of Crédit Mutuel Arkéa, 66 years 1st appointment: 04.05.2017 Term expires: 2026	Summary biography Thierry Bougeard holds a BP accountant’s diploma and has held various positions at Organic Bretagne, then since 2007 at RSI Bretagne as regional manager of service relations. He was elected a director of Caisse de Crédit Mutuel de Rennes St-Sauveur in 1990, then Vice-Chairman in 2000 and Chairman in 2004. He has been Vice-Chairman again since 2017.
	Other positions held within Crédit Mutuel Arkéa Vice-Chairman of the Crédit Mutuel de Bretagne federation Vice-Chairman of Caisse de Crédit Mutuel de Rennes St-Sauveur   of which offices held in subsidiaries Chairman of the Board of Directors of Arkéa Lending Services Chairman of the Board of Directors of Arkéa SCD Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Arkéa Banking Services Director of Arkéa Capital Holding	Terms of office expired during the last five financial years Director of the Federal Service EIG

Philippe CHUPIN
Director of Crédit Mutuel Arkéa, 42 years 1st appointment: 14.05.2020 Term expires: 2026	Summary biography Philippe Chupin holds a degree in agricultural engineering and a master’s degree in international trade. He began his career at the Côtes-d’Armor Chamber of Agriculture. He currently holds the position of manager of Danbred France as a non-partner manager. He became a director of Caisse de Crédit Mutuel de Saint-Brieuc Centre-ville in 2008, Vice-Chairman in 2011 and Chairman in 2012.
	Other positions held within Crédit Mutuel Arkéa Chairman of Caisse de Crédit Mutuel de Saint-Brieuc Centre-ville Director and member of the Board of the Crédit Mutuel de Bretagne federation   of which offices held in subsidiaries Chairman of the Supervisory Board of Arkéa Banque Entreprises et Institutionnels	Other positions held outside Crédit Mutuel Arkéa Manager – non-partner manager of Danbred France

Stéphane CLOAREC
Director of Crédit Mutuel Arkéa, 52 years old 1st appointment: 07.07.2023 Term expires: 2026	Summary biography Holder of a master’s degree in Economics, Stéphane Cloarec began his career as a portfolio manager at Cogédis. He then joined Crédit Agricole as an agricultural customer manager. Since 2005 he has been the finance manager of the Le Kreisker school complex in Saint Pol de Léon. After having been a deputy for 12 years, he was elected mayor of the municipality of Saint Pol de Léon in 2020 and Vice-Chairman of the Haut Léon community of municipalities. He is also a director of Caisse de Crédit Mutuel de Saint Pol de Léon and an elected member of the banking federation.
	Other positions held within Crédit Mutuel Arkéa Director of Caisse de Crédit Mutuel de Saint Pol de Léon Director and member of the Board of the Crédit Mutuel de Bretagne federation Chairman of the UES Arkade Negotiation Committee until 12.12.2023	Other positions held outside Crédit Mutuel Arkéa Mayor of the municipality of Saint Pol de Léon Director, permanent representative of Crédit Mutuel Arkéa on the Board of SEMBREIZH until 18.12.2023

Pascal FAUGERE
Director of Crédit Mutuel Arkéa 61 years 1st appointment: 11.05.2021 as non-voting Board member Term expires: 2025	Summary biography Holder of an Economic Certificate from the CPECF and a Master II of the Grande École programme from Kedge Business School, Pascal Faugère has pursued his professional career in the field of economic development in France and abroad. At the Bordeaux Gironde Chamber of Commerce and Industry, he has held the position of Chief Executive Officer since 2016, having successively held the positions of Chief Executive Officer of Enterprises and Vocational Training and Director of Economic Development and International Relations. Alongside his consular career, he has held the position of Head of Mission in various countries in Africa, Eastern Europe, at the World Bank, the European Union, and the UN. Since 2020, he has been a director of Caisse du Crédit Mutuel de Barrière du Médoc.
	Other positions held within Crédit Mutuel Arkéa Director of Caisse du Crédit Mutuel de Barrière du Médoc Director of the Crédit Mutuel du Sud-Ouest federation Director of the regional branch of Crédit Mutuel du Sud-Ouest   of which offices held in subsidiaries Member of the Supervisory Board of Arkéa Capital Director of Arkéa Capital Investissement	Other positions held outside Crédit Mutuel Arkéa Chief Executive Officer of the Bordeaux Chamber of Commerce and Industry Director of Vinexposium Director of Entrepôts Vins Export until 26.03.2023 Director of Socodev Director of Bordeaux Place de la Bourse until 20.02.2023

Monique HUET
Director not from the cooperative movement of Crédit Mutuel Arkéa, Climate and environmental risks officer, 64 years 1st appointment: 04.05.2017 Term expires: 2026	Summary biography A graduate of HEC, Monique Huet has spent her career in the energy sector, working for the EDF and then Gaz de France groups. She was Chief Financial Officer of GDF Production Nederland BV in Holland and then of the Exploration & Production Business Unit of the Engie group. Today she is active in consulting and training. She is a certified director of Sciences Po - Institut Français des Administrateurs and an active member of the IFA ESG Club.
	Other positions held within Crédit Mutuel Arkéa including the subsidiaries Member of the Supervisory Board of Suravenir	Other positions held outside Crédit Mutuel Arkéa Chief Executive Officer of Openfields

Sophie LANGOUET-PRIGENT
Director of Crédit Mutuel Arkéa 56 years 1st appointment: 10.05.2022 Term expires: 2025	Summary biography Holder of a Master’s degree in biochemistry and a European doctorate in toxicology, Sophie Langouët-Prigent is Director of Research at the National Institute of Health and Medical Research (Inserm).
	Other positions held within Crédit Mutuel Arkéa Chairwoman of Caisse de Crédit Mutuel de Rennes Sainte Anne Saint Martin   of which offices held in subsidiaries Vice-Chairwoman of the Supervisory Board of Arkéa Banque Entreprises et Institutionnels	Other positions held outside Crédit Mutuel Arkéa Vice-Chairwoman of the University of Rennes 1 until 02.05.2023 Vice-Chairwoman of the Rennes 1 Foundation until 16.11.2023 Member of the representative body of the Banque de France Advisory Board Director of the École des Hautes Études en Santé Publique (EHESP) Member of the Management Committee of the Institute for Research in Health, Environment and Work (IRSET)

Anne-Gaëlle LE BAIL
Director of Crédit Mutuel Arkéa, 50 years 1st appointment: 21.04.2016 Term expires: 2025	Summary biography A graduate of ESC Montpellier and the holder of a postgraduate degree in macroeconomics from the University of Mannheim, Anne-Gaëlle Le Bail has held various financial management and management controller positions in industrial companies in France and in European environments since 1996. She has worked in the automotive industry, the manufacture of photovoltaic panels and the medical industry, most often at production sites based in France. Familiar with technical projects requiring strong human support, she has worked on both financial monitoring and transformation projects. She is now Chief Financial Officer at the STERIS Group. She was elected Chairwoman of Caisse de Crédit Mutuel d’Eysines in 2015.
	Other positions held within Crédit Mutuel Arkéa Vice-Chairwoman of the Crédit Mutuel du Sud-Ouest federation Chairwoman of Caisse de Crédit Mutuel d’Eysines   of which offices held in subsidiaries Chairwoman of the Supervisory Board of Monext Member, then Chairwoman of the Supervisory Board of Suravenir since 23.05.2023	Terms of office expired in the last five financial years Member of the Supervisory Board of Arkéa Bourse Retail Member of the Supervisory Board of Arkéa Direct Bank

Jean LE NIR
Employee director of Crédit Mutuel Arkéa, 50 years 1st appointment by the Group Works Council: 08.02.2023 Term expires: 2026	Summary biography Holder of a degree in Accounting and Financial Studies, Jean Le Nir began his career in 1999 at Suravenir as an accountant in charge of technical accounting for loan and protection insurance. He then joined the Group’s Finance Department in 2003, where he held various positions, including Group Management Controller and then Project Manager. An elected employee representative for many years, he served as secretary of the Central Works Council from 2016 to 2019. He joined AIS in 2020, where he is currently Head of the Activities, Reporting and Projects team in the Finance Department. Jean Le Nir also holds the ICCF (International Certificate in Corporate Finance) taught by HEC Paris.
	Other positions None

Patrick LE PROVOST
Director of Crédit Mutuel Arkéa, 67 years 1st appointment: 04.05.2017 Term expires: 2026	Summary biography Patrick Le Provost is an agricultural engineer and a graduate of the French Institute of Management. From 1980, he held various positions within the Côtes-d’Armor Health Defence group, and then the position of Chief Executive Officer of the Brittany Health Defence group between 1994 and 2018. He was elected director of Caisse de Crédit Mutuel du Gouët et du Lie in 2003 and also served as its Vice-Chairman for many years.
	Other positions held within Crédit Mutuel Arkéa Vice-Chairman of the Crédit Mutuel de Bretagne federation Vice-Chairman of Caisse de Crédit Mutuel de Pays du Gouët et du Lie since 19.04.2023   of which offices held in subsidiaries Chairman of the Supervisory Board of Financo until 11.05.2023 Chairman of the Supervisory Board of CFCAL Member of the Supervisory Board of Nextalk Chairman of the Board of Directors of Arkéa Capital Holding until 24.04.2023 Director of Arkéa SCD Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Arkéa Capital Investissemennt Member of the Supervisory Board of Arkéa Capital

Yves MAINGUET
Director of Crédit Mutuel Arkéa, 66 years 1st appointment: 16.05.2018 Term expires: 2024	Summary biography Yves Mainguet holds a Master’s degree in accounting and financial sciences and techniques and is a chartered accountant. He was elected director of Caisse de Crédit Mutuel de Rennes Saint Sauveur in 2005 and has been Chairman since 2017.
	Other positions held within Crédit Mutuel Arkéa Chairman of Caisse de Crédit Mutuel de Rennes Saint Sauveur   of which offices held in subsidiaries Member of the Supervisory Board of Federal Finance Permanent representative of Federal Finance on the Supervisory Board of Federal Finance Gestion Member of the Supervisory Board of Schelcher Prince Gestion	Other positions held outside Crédit Mutuel Arkéa Vice-Chairman of the mixed management body Arcolib Member and founder of Gesprolib Chairman of the Board of Directors of APCAS since 04.07.2023   Terms of office expired in the last five financial years Managing partner of the accounting firm Bolloré-Mainguet

Erwan MEUDEC
Director of Crédit Mutuel Arkéa, 38 years 1st appointment: 10.05.2022 Term expires: 2025	Summary biography Holder of an engineering degree in computer science, Erwan Meudec began his career at Localeo. He then joined IBM as a consultant where he carried out various missions in the banking sector before taking on commercial responsibilities, still working on major accounts. He is currently a garden centre manager. He has also been a director of Caisse de Crédit Mutuel de Landerneau since 2016.
	Other positions held within Crédit Mutuel Arkéa Director of Caisse de Crédit Mutuel de Landerneau Director of the Crédit Mutuel Arkéa endowment fund since 10.07.2023   of which offices held in subsidiaries Member, then Vice-Chairman of the Supervisory Board of Arkéa Banking Services since 25.05.2023 Member of the Board of Directors of Nouvelle Vague until 15.05.2023 Chairman of the Board of Directors of Pumpkin Member of the Supervisory Board of Arkéa Direct Bank until 16.05.2023

Luc MOAL
Director of Crédit Mutuel Arkéa, 66 years 1st appointment: 16.05.2018 Term expires: 2024	Summary biography Luc Moal holds a master’s degree in territorial public management and began his career with France Télécom before becoming Citizenship Manager for the city of Brest. He was elected director of Caisse de Crédit Mutuel de Brest Recouvrance in 1996 and became Chairman in 2001. He is currently a director of Caisse de Crédit Mutuel de Brest Rive Droite.
	Other positions held within Crédit Mutuel Arkéa Vice-Chairman of the Crédit Mutuel de Bretagne federation Director of Caisse de Crédit Mutuel de Brest Rive Droit   of which offices held in subsidiaries Chairman of the Supervisory Board of Arkéa Crédit Bail Chairman of the Supervisory Board of ProCapital Member of the Supervisory Board of Monext	Other positions held outside Crédit Mutuel Arkéa Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Bellatrix SAS Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Team Spirit Racing   Terms of office expired in the last five financial years Member of the Supervisory Board of Arkéa Banque Entreprises et Institutionnels Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Arkéa Banking Services

Valérie MOREAU
Director of Crédit Mutuel Arkéa, ESG-Climate Officer, 51 years 1st appointment: 16.05.2019 Term expires: 2025	Summary biography Holder of a master’s degree in human sciences and business coaching, Valérie Moreau specialises in human resources and management. After starting her career as an advisor at Pôle Emploi, she worked there for 10 years as a manager and as an agency manager, while also carrying out training assignments at a management university. In 2020, she created the firm Auxilium Talents and works as a professional coach. She has been elected to the Caisse de Crédit Mutuel de Montpon Menesterol since 2013 and has been Vice-Chairwoman since 2015.
	Other positions held within Crédit Mutuel Arkéa Director and member of the Bureau of the Crédit Mutuel du Sud-Ouest federation Director of the regional branch of Crédit Mutuel du Sud-Ouest Vice-Chairwoman of the Caisse de Crédit Mutuel de Montpon Menesterol   of which offices held in subsidiaries Member of the Supervisory Board of Arkéa Banking Services until 25.05.2023 Vice-Chairwoman, then Chairwoman of the Supervisory Board of Federal Finance since 24.05.2023 Vice-Chairwoman, then Chairwoman of the Supervisory Board of Federal Finance Gestion since 24.05.2023 Director of Arkéa Real Estate Director of Arkéa Real Estate Investment Management Chairman of the Board of Directors of the Phinoé fund

Colette SÉNÉ
Director of Crédit Mutuel Arkéa, 64 years 1st appointment: 11.05.2001 (Caisse Interfédérale du Crédit Mutuel) 06.05.2015 (Crédit Mutuel Arkéa) Term expires: 2024	Summary biography Colette Séné has a two-year university degree in law and having worked in the civil service as a manager of social action and child protection systems, has held a position for 10 years in a social action area on the Morbihan Departmental Council as a socio-professional integration officer. She is a director of Caisse de Malestroit-Serent and served as its Vice-Chairman and Chairman for several years.
	Other positions held within Crédit Mutuel Arkéa Vice-Chairwoman of the Crédit Mutuel de Bretagne federation Director of Caisse de Crédit Mutuel de Malestroit-Sérent   of which offices held in subsidiaries Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Arkéa Direct Bank Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Nextalk Chairwoman of the Supervisory Board of Financo since 11.05.2023 Member of the Board of Directors of Arkéa SCD since 02.05.2023	Terms of office expired in the last five financial years Director of Suravenir Assurances

Dominique TRUBERT
Director of Crédit Mutuel Arkéa, 63 years 1st appointment: 14.05.2020 Term expires: 2026	Summary biography Dominique Trubert holds a professional agricultural diploma, a certificate of specialisation in cattle and pig farming, as well as a BPA in accounting and management. He has been running his pig farm in Gévezé since 1984. He was elected director of the Caisse de Crédit Mutuel de Pacé-Vezin in 2006. Since 2020, he has been Chairman of Caisse de Bretagne de Crédit Mutuel Agricole.
	Other positions held within Crédit Mutuel Arkéa Director and member of the Board of the Crédit Mutuel de Bretagne federation Director of Crédit Mutuel de Pacé-Vezin Chairman of the Caisse de Bretagne de Crédit Mutuel Agricole (CBCMA)   of which offices held in subsidiaries Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of Arkéa Crédit Bail	Other positions held outside Crédit Mutuel Arkéa Manager of the GAEC du Verger Tixue

Marie VIGNAL-RENAULT
Employee director of Crédit Mutuel Arkéa, 44 years 1st appointment by the ECC: 19.02.2020 Term expires: 2026	Summary biography Marie Vignal-Renault holds a Master’s degree in Applied Foreign Languages with a major in Business and Commerce. She began her career at the Regional Tourism Committee of Brittany where she held various positions. She joined Crédit Mutuel Arkéa in 2007 as a customer relationship manager and now holds the position of management assistant in the network support structure in the Head Office of the Côtes d’Armor department.
	Other offices None

Isabelle MAURY
Non-voting Board member of Crédit Mutuel Arkéa 55 years 1st appointment: 10.05.2022 Term expires: 2025	Summary biography Holder of a specialised Master’s degree in Financial Techniques from ESSEC, Isabelle Maury has spent most of her career in major banking groups as Head of Risk, Compliance and Internal Audit, including 12 years on the BPCE Group Executive Committee. An expert in risk, compliance, audit, regulation, and governance functions, in 2017 she created the IM7 Consulting brand to support managers in addressing these issues.
	Other positions held within Crédit Mutuel Arkéa None	Other positions held outside Crédit Mutuel Arkéa Independent Director of RCI Banque Independent Director of ABC Arbitrage Independent Director of H2O AM Europe Independent Director of H2O Monaco SAM Independent Director of H20 AM LLP

Frédéric LEMOINE
Non-voting Board member of Crédit Mutuel Arkéa since 11.05.2023 58 years 1st appointment: 11.05.2023 Term expires: 2026	Summary biography A graduate of the Institut d’Études Politiques in Paris, the École des Hautes Études Commerciales and holder of a law degree, a former student of the École Nationale d’Administration and a former financial inspector, Frédéric Lemoine worked at the beginning of his career with both public and private responsibilities. He has been director of a hospital, Deputy Director of the Office of the Minister of Labour and Social Affairs, Chief Financial Officer of Capgemini, Deputy General Secretary of the Élysée between 2002 and 2004, Chairman of the Supervisory Board of Areva and Senior Advisor to McKinsey. In 2009 and until the end of 2017, he became Chairman of the Management Board of Wendel, leading a network of international companies and chairing the Board of Directors of Bureau Veritas. A specialist in governance (he has served on the boards of around fifteen listed and unlisted companies), he is currently Chairman and Chief Executive Officer of Allegro Cantabile, an investment and consulting company that he created in 2018, and an advisor on strategic developments to the Chairman of Meridiam, a company specialising in the development of sustainable infrastructures.
	Other positions held within Crédit Mutuel Arkéa None	Other positions held outside Crédit Mutuel Arkéa Chairman and Chief Executive Officer of Allegro Cantabile Director of Pictet Alternative Advisors Holding until 01.06.2023 Director of Pictet Alternative Advisor SA until 01.06.2023

2.2.2Preparation and organisation of the work

The Board of Directors met 13 times in 2023 (10 meetings in 2022). 8 of them were held by means of telecommunications in accordance with the operating rules. The attendance rate of directors at the Board meetings was 95% (also 95% in 2022).

Julien Carmona chaired all meetings of the Board of Directors.

The Board of Directors relies on the resources of Crédit Mutuel Arkéa’s General Secretary and Corporate Communications Department for the preparation and organisation of its meetings. Meeting agendas are drawn up by the Chairman after consultation with Executive Management. One week before the meeting, a file containing the items to be studied and discussed at the Board meeting is made available to the directors in their digital environment. In addition, the Chairman communicates information on the group’s business and strategy to each director.

The meetings held by the Board of Directors were devoted to:

• The business:
  • monitoring external economic, banking, and financial news and internal current issues,
  • monitoring the group’s business, results, risks, and prudential ratios and those of its main component parts through a report presented at each meeting;
• The strategy:
  • monitoring progress and decision-making regarding "Project Liberté" (defence of the entrepreneurial freedom and identity of Crédit Mutuel Arkéa): validation of the guaranteed long-term autonomy MoU associated with the abandonment of the disaffiliation project,
  • the adoption of the Armaments, Aviation and Real Estate sector policies, and the revision of the Health, Tobacco, Coal, Oil and Gas, Energy, Agriculture and Viticulture sector policies with an extension to the agri-food sector,
  • setting the group’s general guidelines for the year,
  • decision-making with regard to the acquisition and merger of companies, the acquisition of holdings, external growth operations and disposals, and monitoring of ongoing partnerships,
  • the creation of the Crédit Mutuel Arkéa endowment fund, 
  • monitoring the “Transitions 2024” strategic plan;
• The accounts:
  • approving the group’s parent company financial statements and consolidated financial statements;
• Risk limits and control systems:
  • adapting the prudential framework and limits applicable to the group and all its components,
  • reviewing the annual report on the internal control of the company and the group, the ICAAP and ILAAP reports, and Pillar 3,
  • changes in regulations leading to a strengthening of internal control (permanent control, periodic control and compliance control);
• The appointments within Crédit Mutuel Arkéa and HR systems:
  • appointments and compensation reviews falling within the prerogatives of the Board.

This work and discussion made it possible to determine the direction of the activity and to carry out the necessary checks and verifications.

In addition, the Board’s annual strategic seminar was devoted to the initial discussions and orientations of the next Strategic Plan, which will continue to be worked on in 2024.

In order to enable the Board to develop and maintain the skills of its members, the directors’ Charter lists the various individual skills of the members of the Board of Directors and lists the key skills related to membership of the various specialised committees. The members of the Board of Directors benefit from a remote training platform dedicated to the directors of Crédit Mutuel Arkéa and its subsidiaries.

Thus, in addition to any training courses taken individually by directors on the training platform, the entire Board of Directors was trained in 2023 on:

• the protection of personal data;
• IFRS 17;
• managing a cyber crisis;
• ESG risks;
• human rights; and
• biodiversity.

2.2.3Specialised committees

Five specialised committees complete the work and provide input to the Board of Directors. Each committee has an operating charter that sets out the committee’s missions and organisational procedures. An assessment of the committees is carried out each year as part of the assessment of the operation of the Board of Directors and formally as part of the triennial assessment of the operation of Crédit Mutuel Arkéa’s Board of Directors.

A specialised committee exists and is responsible for formulating an opinion on credit applications that exceed the powers of the group Credit Committee, when these applications require a commercial response within a timeframe that does not allow them to be examined in full by the Board of Directors. The opinion issued by this committee then precedes a decision by the executive officers, and is subject to information and ratification by the Board of Directors at its next Ordinary Meeting.

2.2.3.1Strategy and Societal Responsibility Committee

The role of the Strategy and Corporate Social Responsibility Committee is to drive Crédit Mutuel Arkéa’s strategic thinking and assist the Board of Directors in its work. Its role consists of:

• driving/coordinating the group’s strategic thinking;
• reviewing proposed capital transactions;
• ensuring the integration of sustainable finance into the heart of the group’s strategy;
• assisting the Board of Directors of Crédit Mutuel Arkéa in its work.

During the 2023 financial year, it met 11 times (8 meetings in 2022). The average attendance rate over the year was 79%, with the following breakdown for members still in office on 31 December 2023:

The subjects dealt with during the financial year were numerous. For example, the Strategy and Corporate Social Responsibility Committee analysed:

• partnership projects, external growth, and the restructuring of the capital of subsidiaries;
• the adoption of the Armaments, Airline and Real Estate sector policies and the review of the Coal, Oil, Gas, Health, Tobacco, Energy, Agri and Viti sectoral policies;
• the monitoring of the Transitions 2024 medium-term plan;
• the validation of NZBA commitments;
• the group asset management strategy;
• the development of confederal relations and discussions on the opening of negotiations with a view to defining a framework for guaranteed long-term autonomy.

2.2.3.2Compensation Committee

The role of the Compensation Committee is to ensure the overall consistency of compensation policies and practices within Crédit Mutuel Arkéa and its regulated subsidiaries.

During the 2023 financial year, it met 13 times, including 2 joint meetings with the Risks and Internal Control Committee (11 meetings in 2022). The average attendance rate over the year was 87%, with the following breakdown for members still in office on 31 December 2023:

In 2023, the work of the Compensation Committee focused on:

• compensation policy and practices of the Crédit Mutuel Arkéa group;
• annual reports on the group’s compensation policies and practices;
• compensation of executive corporate officers of the Crédit Mutuel Arkéa group;
• scope of the regulated population;
• compensation of members of the regulated population;
• compensation policies of regulated subsidiaries;
• compensation of the executive officers of the group’s regulated entities;
• Compensation Committee Charter.

In addition, in 2023, the Compensation Committee attended an awareness-raising session on the key elements of the compensation policy.

2.2.3.3Appointments and Governance Committee

The role of the Appointments and Governance Committee is to assist the Board of Directors of Crédit Mutuel Arkéa by issuing:

• proposals for the appointment of corporate officers of subsidiaries and permanent representatives on the governing bodies of companies in which Crédit Mutuel Arkéa holds financial interests;
• reasoned opinions on the Chairman’s proposals for the appointment of the Chief Executive Officer and Deputy Chief Executive Officers before validation by the Board of Directors and on proposals by executive management for the appointment of individuals to key functions;
• recommendations for changes to processes in order to improve good governance practices as well as proposals for succession plans for the subsidiaries’ corporate officers.

It also evaluates the functioning of the Board of Directors.

During the 2023 financial year, it met 10 times (11 meetings in 2022). The average attendance rate over the year was 96%, with the following breakdown:

In 2023, the committee worked on:

• the selection of candidates for reappointment and/or appointment as members of the Boards of Directors and Supervisory Boards of group entities as part of the 2023 and 2024 General Meetings;
• the appointment of Crédit Mutuel Arkéa representatives to the governing bodies of companies in which the group holds an interest;

• reviewing the appointment of executive officers to Crédit Mutuel Arkéa’s Executive Committee and to the management bodies of the subsidiaries;
• reviewing the candidacy of the Chief Risk Officer and Head of Risk Management;
• in-depth studies to strengthen the procedures for supervising the exercise of offices, in particular by strengthening gender balance within governing bodies and harmonising age-related practices within the various entities and the review of the limits set by the secondary governance charter for the reappointment of positions;
• monitoring the work of the Compliance and Permanent Control Department on conflicts of interest;
• the review of succession plans for the Chairpersons of the Boards of the group’s entities;
• monitoring the work carried out by the Dynamics and Human Relations Department with regard to the creation of talent pools for senior executives and managers;
• the updating of Crédit Mutuel Arkéa’s Directors' Charter, the secondary governance charter, the framework procedure for training and the operating rules of the Board of Directors;
• in terms of training and enhancing the skills of the directors of the group’s entities, the definition of training courses adapted to the profiles and characteristics of the entities and the formalisation of a training plan for Crédit Mutuel Arkéa’s directors.

The committee is responsible for proposing the composition of the corporate bodies of the group as a whole, the subsidiaries and Crédit Mutuel Arkéa.

As the primary quality of a Board is the balance of its composition as well as the skills and ethics of its members, the committee pays particular attention when examining candidates for reappointment or appointments in the group’s integrated subsidiaries to ensure that they:

• increase the number of people of the under-represented gender in the governing bodies of group companies, particularly with regard to the provisions of the “Pacte” law;
• seek a diversity and complementarity of profiles for an efficient and experienced functioning of the various Boards of Directors and Supervisory Boards;
• except in special cases, set up supervisory bodies with elected representatives of the local banks of the Crédit Mutuel de Bretagne and Crédit Mutuel du Sud-Ouest federations.

This work is carried out in consultation with the Chairpersons of the Boards, the executive officers, and the managers of the division.

2.2.3.4Financial Statements Committee

The role of the Financial Statements Committee is to assist the Board of Directors in assessing the financial information and checking its reliability. Its role consists of:

• being informed about accounting principles and their evolution;
• monitoring the effectiveness of the internal control systems with regard to the procedures relating to the preparation and processing of accounting and financial information;
• examining the financial statements of Crédit Mutuel Arkéa before they are presented to the Board of Directors;
• monitoring the work programme of the Statutory Auditors and examining the conclusions of their work.

The Committee held 5 meetings in 2023 (5 meetings in 2022). The average attendance rate over the year was 83%, with the following breakdown for members still in office on 31 December 2023:

In 2023, the committee’s work focused on:

• Financial performance:
  • Review of the financial statements at 31 December 2022,
  • The opinion of the GIPCD on the closing of the accounts of the Crédit Mutuel banks,
  • The opinion of the Statutory Auditors on the annual financial statements;
• Non-financial performance:
  • The measurement of non-financial impacts at 31 December 2022;
• The 2023 financial plan;
• The presentation of the review of the 2022 internal control system;
• The presentation of the audit approach for 2023;
• The accounting principles and methods applicable to the interim financial statements;
• Educational materials on IFRS and prudential regulations (Vademecum);
• Presentation of the impacts of the first-time adoption of IFRS 17 on the consolidated financial statements at 1 January 2022 and 1 January 2023;
• A summary of the Statutory Auditors’ work on the first-time adoption of IFRS 17;
• The closing of the interim consolidated financial statements;
• The opinion of the Statutory Auditors on the interim financial statements;
• The preparation of the closing on 31 December 2023;
• The positions of the Statutory Auditors.
• Vademecum training - prudential, IFRS.

2.2.3.5Risk and Internal Control Committee

The role of the Risk and Internal Control Committee (RICC) is to assist the Board of Directors in its responsibility for monitoring Crédit Mutuel Arkéa’s risks and internal control system.

15 meetings were held in 2023 (10 meetings in 2022). The average attendance rate over the year was 93%, with the following breakdown for members still in office on 31 December 2023:

In 2023, the committee’s work focused on:

• In terms of periodic control:

Summary presentation of audit assignments and monitoring of the completion of assignments finalised during 2023,

Presentation of the 2022 annual summary of the network periodic control assignments,

Review of the 2022 annual internal control report,

Half-yearly review of the status of implementation of recommendations:

- issued by the French Prudential Supervisory and Resolution Authority (ACPR) and the European Central Bank,

- issued by the GIPCD and the internal audit structures of the subsidiaries,

Presentation of progress on the 2023 periodic control plan,

Information on changes in GIPCD risk mapping,

Presentation of the draft periodic control plan for 2024:

- draft plan of the Periodic Network Monitoring Department,

- draft plan of the business line Periodic Control Department,

- draft plan of the Internal Fraud Prevention Department;

- work of the Account Certification team and the Technical Services and Projects Department,

Information on the periodic control process for the risk related to the outsourcing of activities and on the periodic control process for cyber risk,

Information on internal audit effectiveness indicators,

Information on the audit assignments included in the CNCM 2023 plan and concerning Crédit Mutuel Arkéa,

Information on the results of the approval mission conducted by CNCM’s General Inspection Division;

• In terms of compliance and permanent control:

Review of the activity and results of permanent control and compliance control:

- at 31 December 2022,

- at 31 March 2023,

- at 30 June 2023,

- at 30 September 2023,

Review of the internal control report on the fight against money laundering and terrorist financing and the freezing of assets for the 2022 financial year,

2023 annual review of AML-TF activity,

Review of the AMF annual report for the 2022 financial year,

Presentation of the update of the ML/TF group’s risk classification,

Information on the ACPR control mission concerning the asset freezing system,

Information on the ACPR control mission on the marketing of unit-linked life and pension insurance contracts,

Information on the CNIL control mission on the categorisation of expenses by Fortuneo,

Information on the monitoring of subsidiaries by the compliance function,

Review of changes to the whistleblowing system,

Review of the compliance function’s opinion on the group compensation policy and the Arkéa SCD compensation policy (including for the regulated population),

Review of the Compliance Charter;

• In terms of risk monitoring and surveillance:

Regular information on the risk situation,

Geographical focus on credit risk,

Focus on ESG risks and expectations for 2023,

Focus on the treatment of recommendations on the review of climate risks,

Focus on the effects of the context on real estate,

Presentation of risk reporting:

- at 31 December 2022,

- at 31 March 2023,

- at 30 June 2023,

- at 30 September 2023,

Review of risk mapping,

Review of the ICAAP report and statement for the period 2023-2025,

Review of the ILAAP report and statement for the period 2023-2025 and presentation of the liquidity crisis management plan,

Review of the Pillar 3 report,

Review of the update of the risk appetite framework and presentation of the draft 2024 limits,

Proposal to amend the Risk Appetite Statement,

Review of the risk management function’s opinion on the group compensation policy and the SCD compensation policy (including for the regulated population),

Approval of Crédit Mutuel Arkéa’s contribution to the Crisis Recovery Plan (CRP),

Updating of the risk management function Charter,

Annual information on the Contingency and Business Continuity Plan system,

Information on the processing of the ECB Letter on Leveraged Transactions,

Information on the ECB inspection mission on the ICAAP,

Information on the EBA Stress Test,

Information on the progress of the Resolution work,

Information on the priorities of the Supervisory and Resolution authorities,

Presentation on the revision of the Forward Looking methodology,

Presentation of the follow-up letter to the on-site inspection on interest rate risk in the banking book (OSI-2021-FRCMU-0180223),

Presentation of the work carried out with CNCM on the risk management function as part of the work initiated on guaranteed autonomy;

• In terms of closing the accounts:

Review of the observations made by the Financial Statements Committee on the presentations of the financial statements at 31 December 2022 and 30 June 2023 (accounting principles, financial statements, summaries and analyses, work of the Statutory Auditors, etc.);

• Update on the work of the supervisory authorities:

Update on the work at each meeting,

Information on the follow-up letter to the on-site inspection on the assessment of the business model management framework (OSI-2022-FRCMU-0198180).

• The work also covered:

A review of the group’s equity transactions,

Monitoring of the requests made by the Risk and Internal Control Committee,

Presentation of the committee’s activity report for the year 2022,

Feedback from the members of the committee on the reports transmitted for the years 2022 and 2023,

Opinion of the members of the committee on the periodic control work,

Review of the Periodic Control Charter,

Review of the update of the procedure for the appointment and dismissal of the head of the group’s internal audit function,

Review of the update of the Operating Charter of the Periodic Control Committee,

Review of the update of the Risk and Internal Control Committee’s operating charter,

Information on digital asset initiatives,

Information on the interview of the Chairman of the RICC of 6 March 2023 with the JST,

Information on the meeting of the Chairpersons of the Crédit Mutuel Audit Committees of 5 September 2023.

2.2.3.6Credit Review Committee

The Credit Review Committee is responsible for issuing an opinion on loan applications that exceed the powers of the group Credit Committee, if these applications require a commercial response within a timeframe that does not allow them to be examined in full by the Board of Directors, with the latter intervening after the fact to ratify the committee's opinion.

5 meetings were held in 2023 (8 meetings in 2022). The average attendance rate over the year was 95%, with the following breakdown:

The assessment of the work carried out by the committee was presented to the Board of Directors on 7 July 2023.

This assessment concludes that the committee is operating efficiently, with detailed scrutiny of the issues presented to it.

2.2.4Review of the operation of the Board of Directors

At least once a year, at the initiative of the Chairman of the Appointments and Governance Committee, an item on the agenda of Crédit Mutuel Arkéa’s Board of Directors is devoted to assessing the operation of the Board and its specialised committees. Every three years, the Appointment and Compensation Committee, alone or with the assistance of a consultant, carries out a formal evaluation of the Board of Directors.

The last formal assessment was carried out during the 2021 financial year by the Appointments and Governance Committee with the assistance of Mazars, supported by the General Secretary and Corporate Communications Department.

The latter made it possible to highlight a consistent approach compared to other institutions and concluded that the directors exercised effective governance.

A new formal assessment will be carried out in 2024.

In 2023, an item was included on the agenda of the Board of Directors meeting in December following the completion of an annual assessment based on three areas:

• an anonymous self-assessment questionnaire allowing the members to position themselves with regard to the skills and postures listed in the Directors' Charter;
• an anonymous questionnaire to assess the Board of Directors on three main themes: its composition, expertise, and organisation;
• a specific questionnaire sent to the Chairpersons of committees and commissions, including an additional topic concerning relations with Management.

The results were very positive and confirmed the commitment of the directors and their improved skills, particularly in environmental, social and governance matters. They also praise the quality and completeness of the materials presented to them, which enable them to deliberate in an informed manner. They also underline the climate of trust that exists both with the Chairman of the Board and Management.

The overall rating awarded to the Board’s operations remained high and is improving.

2.3Executive corporate officers

The executive corporate officers of Crédit Mutuel Arkéa at 31 December 2023 were:

Hélène BERNICOT
Chief Executive Officer of Crédit Mutuel Arkéa, 48 years	Summary biography A graduate of Sciences Po Paris and a chartered accountant, Hélène Bernicot began her career with eight years in financial audit at Mazars, where she led various audit assignments for major groups. She joined Crédit Mutuel Arkéa in 2004. She successively held various positions within the Finance Department, then the Human Resources Department, and contributed to the group’s strategic thinking. In 2016, she joined the General Coordination Committee and in 2019 the group’s Executive Committee, in charge of the General Secretary and Corporate Communications Department. In 2020, she was appointed Chief Executive Officer of Crédit Mutuel Arkéa.
	Other positions held within Crédit Mutuel Arkéa Chief Executive Officer and permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Arkéa SCD Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Swen Capital Partners	Other positions held outside Crédit Mutuel Arkéa Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of the Office of financial banking coordination Co-Chairwoman of the Board of Directors of the "Community of companies with a mission" since 27.06.2023

Anne LE GOFF
Deputy Chief Executive Officer of Crédit Mutuel Arkéa, 50 years	Summary biography A qualified member of the French Institute of Actuaries and a graduate of the Centre des Hautes Études d’Assurances, Anne Le Goff joined Suravenir, the personal protection insurance subsidiary of Crédit Mutuel Arkéa, in 1996. In 2006, she joined the group’s central services, where she held responsibilities in the areas of control and risk management, before joining the office of the Chairman. After holding the position of Corporate Secretary, in 2012 she became Head of the group’s General Secretary and Corporate Communications Department. Appointed Deputy Chief Executive Officer in 2016, she heads the Development Support Division of Crédit Mutuel Arkéa, which covers the Finance and Overall Performance, Financial Markets, Risk, Legal, Compliance and Permanent Control, Organisation and General Resources, and Institutional Relations Departments, as well as the General Secretary and Corporate Communications Department of Crédit Mutuel Arkéa. Along with Hélène Bernicot, she has, since February 2020, been part of the two-person group executive management team.
	Other positions held outside Crédit Mutuel Arkéa Non-executive member of the Management Board of the Rennes School of Business Member of the CSR Committee of Ouest France since 25.10.2023

Bertrand BLANPAIN
Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division 60 years	Summary biography A graduate of ESCP Europe, holder of a master’s degree in economics and a post-graduate degree in political economy, Bertrand Blanpain began his professional career at Drouot Assurances (1986-1987) before continuing his career at Groupe Caisse d'Epargne (1987-2015), where he held various executive management positions in sales, human resources, banking operations and finance. He joined Crédit Mutuel Arkéa in June 2015 as Commercial Director of Arkéa Banque Entreprises et Institutionnels, then Chief Executive Officer and Chairman of the Management Board. He has also been a member of the Executive Committee of Crédit Mutuel Arkéa and Head of the Corporate and Institutional Division since 2016, and Deputy Chief Executive since 2021.
	Other positions held within Crédit Mutuel Arkéa Chairman of the Management Board of Arkéa Banque Entreprises et Institutionnels	Other positions held outside Crédit Mutuel Arkéa Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Sofiouest Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Nexity Permanent representative of Crédit Mutuel Arkéa on the Supervisory Board of New Port

Frédéric LAURENT
Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division, 61 years	Summary biography A computer engineer by training, Frédéric Laurent joined Crédit Mutuel de Bretagne in 1985. He held various positions within IT and then, after leading the changeover to the euro for the entire group, in 2020 he became Head of IT for the subsidiaries, before being appointed three years later as Director of Banking Products. From 2007 to 2012, he was Chairman of the Executive Board of Federal Finance, before being appointed Deputy Chief Executive Officer in charge of Crédit Mutuel Arkéa’s Innovation and Operations Division in 2012. He then took over the management of the Retail Customer Division in 2020, before being appointed Deputy Chief Executive Officer in 2021.
	Other positions held within Crédit Mutuel Arkéa Chairman of the Management Board of Arkéa Bourse Retail	Other positions held outside Crédit Mutuel Arkéa Representative of Crédit Mutuel Arkéa on the Board of Directors of Paylib Services Representative of Crédit Mutuel Arkéa on the Board of Directors of CCI Métropolitaine Bretagne Ouest Permanent representative of Crédit Mutuel Arkéa on the Board of Directors of Bellatrix Sas

The Executive Management (Hélène Bernicot and Anne Le Goff) is vested with the broadest powers to act in all circumstances on behalf of the company and to represent it in its relations with third parties. It exercises its powers within the limits of the corporate purpose and subject to those powers expressly granted by law to Shareholders’ Meetings and the Board of Directors.

As Deputy Chief Executive Officers, Bertrand Blanpain and Frédéric Laurent have the necessary powers to exercise effective management of the Crédit Mutuel Arkéa group’s business and, more specifically, to act, in all circumstances, in the context of its activities related to the functions and missions entrusted to the Corporate and Institutional Division for the former and to the Retail Customer Division for the latter. These powers are governed by an engagement letter and a formal delegation for each of them. They have powers of representation both internally and with regard to third parties.

2.4Executive management bodies and their work

Crédit Mutuel Arkéa’s Executive Committee is the group’s Executive Management body in charge of the group’s strategic management and the development of its overall performance, in line with its Purpose and values. Its role consists of:

• proposing to the Board of Directors of Crédit Mutuel Arkéa the group’s strategic orientations and risk appetite framework;
• steering the implementation of the strategy defined by the Board of Directors by integrating environmental issues, including climate, social and governance issues;
• setting the objectives of the Group’s component parts in relation to this strategy, allocating the human, financial and IT resources necessary for their implementation and monitoring their achievement;
• reviewing the group’s organisational and general interest issues, particularly in terms of human resources;
• regularly reviewing the group’s financial position and its risk exposure in relation to its appetite;
• reviewing external growth and equity investments aimed at strengthening and developing the group’s business model;
• taking decisions aimed at improving the profitability of the group’s activities and carrying out the necessary arbitrations for the entities in the group’s interest (internal invoicing, IT plan, definition, and implementation of synergies).

The existence of balanced representation between women and men, particularly on the Executive Committee, the Executive Management Committee and more generally in management functions, is regularly monitored through performance indicators. Programmes are also deployed specifically to support the development of female talent and a network of ambassadors continues to work actively to raise cultural awareness. The group’s gender diversity policy is described in the Statement of Non-Financial Performance in Section 4.5.4 of this document.

The Executive Committee meets weekly and at 31 December 2023 consisted of:

The percentage of women on the Executive Committee was 37.5% at 31 December 2023.

The Executive Management Committee meets periodically to address strategic issues requiring a cross-functional approach and also includes the following members of the Executive Committee:

Within the framework of its prerogatives and powers, in order to ensure the relevance and quality of its decisions, Crédit Mutuel Arkéa’s General Management structures its organisation around cross-functional committees in which one or more members of the Executive Management Committee take part. These committees are:

• the Periodic Control Committee;
• the Compliance and Permanent Control Committee;
• the Capital Management and ALM Committee;
• the group Credit Committee;
• the Customer Commitments Committee;
• the Risk Monitoring Committee;
• the Counterparties Committee;
• the Purchasing Committee;
• the Real Estate Committee;
• the Innovation Committee;
• the AML-TF Committee;
• the External Fraud Prevention Committee;
• the group IT Risk Governance Committee.

2.5Agreements benefitting corporate officers

During the 2023 financial year, three new agreement for the benefit of the corporate officers was presented to the Board of Directors.

On 27 February 2023, the Board of Directors approved the provisions of amendments to the employment contract of Hélène Bernicot, Chief Executive Officer of Crédit Mutuel Arkéa, and of Anne Le Goff, Deputy Chief Executive Officer.

These amendments to the suspension of the employment contract state the following provisions:

• the date of suspension of the employment contract;
• the conditions for reinstatement at the end of the term of office;
• the terms of compensation in the event of dismissal or termination within the 12 months following the end of the term of office of Chief Executive Officer of Crédit Mutuel Arkéa and of the Deputy Chief Executive Officer.

On 27 February 2023, the Board of Directors approved the provisions of the agreement relating to compensation for the termination of the term of office of Julien Carmona, Chairman of the Board of Directors of Crédit Mutuel Arkéa.

The agreement states the absence of compensation in the event of termination of the corporate office, for any reason whatsoever.

2.6Conflicts of interest at the level of administrative and management bodies

Crédit Mutuel Arkéa has set up a framework for preventing and managing conflicts of interest, which sets out the rules applicable within the group for identifying, preventing, and managing proven, potential, apparent or perceived conflicts of interest.

Crédit Mutuel Arkéa’s system for preventing and managing conflicts of interest covers any professional situation in which the discretion or decision-making power of a person, company or organisation may be influenced or impaired in its independence or integrity by personal considerations or by pressure exercised by a third party. The system also covers any situation which arises when the independent, impartial, and objective exercise of a person’s functions is liable to be influenced by another public or private interest distinct from that which he or she must defend in those functions.

The framework system defines the roles and responsibilities of the various players, including those of Crédit Mutuel Arkéa’s management body and the Compliance and Permanent Control Department. It specifies the procedures for identifying and detecting conflicts of interest, in particular by setting out the detection criteria.

A conflict of interest may arise from failure to comply with one of the following principles:

• the primacy of the customer’s interests (commercial pressure, financial incentive, advantage, possibility of financial gain or avoidance of financial loss at the customer’s expense, interest in the result of a service provided, of a transaction carried out, etc.);
• fairness in the treatment of customers (privileged treatment of a customer);
• the separation of activities (insufficient separation between certain activities within an entity or between entities of the group likely to facilitate the dissemination of confidential or privileged information);
• independence of functions (inappropriate influence resulting in depriving the person concerned of his or her freedom of judgement).

In view of the update of the EBA guidelines on internal governance, the framework system for the prevention and management of conflicts of interest specifies the conditions for granting loans to members of the management body and related parties. In particular, it defines the approval framework for loans granted to them. This framework includes, depending on the thresholds, an opinion from the compliance verification function.

Risk mapping determines potential conflicts of interest with regard to the activities carried out within the Crédit Mutuel Arkéa group or situations encountered in the life of the company. The mapping also identifies staff conflicts of interest, including the interests of their closest family members.

Measures to prevent conflicts of interest are implemented by applying:

• the rules of good conduct and the rules of procedure;
• the principle of separation of activities and operations with regard to the activities exposed;
• a compensation policy that promotes sound and effective risk management;
• a framework governing exposure to inside information;
• a procedure for appointing leaders (executive and non-executive) and permanent representatives to Crédit Mutuel Arkéa governance bodies.

Each case is treated individually. However, standard preventive measures can be used in certain situations:

• ethical commitment of the employee/manager in a conflict of interest situation to act honestly and loyally;
• abstention during a vote;
• implementation of the four-eyes rule;
• limitation of the possibility of subscribing to a mandate;
• compartmentalisation of committees.

Any situation of proven, potential, perceived or apparent conflict of interest must be brought to the attention of the compliance officer. To this end, the Crédit Mutuel Arkéa group has deployed a dedicated conflict of interest declaration form, accessible to all employees on the group’s intranet.

For the directors of Crédit Mutuel Arkéa, several potential conflicts of interest have been identified to date:

• Julien Carmona, Chairman of the Board of Directors of Crédit Mutuel Arkéa, in view of his position in the APRIL Advisory Committee;
• Valérie Blanchet-Lecoq could potentially find herself in a situation of conflict of interest with regard to her professional activities as a lawyer and manager of the firm Jurilor;
• Pascal Faugère, a director, could find himself in a situation of conflict of interest given his position as Chief Executive Officer of the Bordeaux Chamber of Commerce and Industry (CCI Bordeaux) and positions related to his functions;
• Sophie Langouet-Prigent, a director, could find herself in a situation of conflict of interest given her position as Vice-Chairwoman in charge of partnerships at the University of Rennes 1, for which Crédit Mutuel Arkéa is a sponsor;
• Monique Huet, a director, could potentially find herself in a situation of conflict of interest with regard to her professional activities as Chief Executive Officer of Open Fields SAS;
• Stéphane Cloarec, a member of the Board of Directors, could potentially find himself in a situation of conflict of interest with regard to his professional activities as administrative and financial manager of the Kreisker school complex and his political roles.

For these two situations, specific information and supervision measures, in particular relating to abstention, have been taken.

With regard to the executive officers:

• Hélène Bernicot, Chief Executive Officer of Crédit Mutuel Arkéa, has a personal relationship with François-Régis Bernicot, Chairman of the Management Board of Suravenir, a subsidiary of Crédit Mutuel Arkéa;
• Anne Le Goff, Deputy Chief Executive Officer, could potentially find herself in a situation of conflict of interest with regard to her role on the Ouest-France CSR Committee.

These conflicts of interest are subject to specific supervision and organisational measures.

A conflict of interest register is used to record sensitive activities or situations, identify conflicts of interest and the systems put in place to manage them. This register also makes it possible to monitor identified conflicts of interest. The compliance officer is responsible for maintaining this register, identifying appropriate measures and updating the monitoring of conflict of interest situations.

Every year, the system for preventing and managing conflicts of interest is the subject of a report by the Crédit Mutuel Arkéa group’s compliance function presented to the Compliance and Permanent Control Committee and the Appointments Committee of Crédit Mutuel Arkéa.

Each group entity is responsible for implementing the group's framework policy within its own organisation in order to meet its obligations to prevent, identify and manage potential or actual conflicts of interest. To this end, each entity maintains a register to record the conflict of interest situations examined and monitors any unresolved conflict situations.

A permanent control framework is made available to the group’s entities so that they can check compliance with the framework system.

In addition, awareness-raising and training actions are regularly conducted for employees of Crédit Mutuel Arkéa networks and Crédit Mutuel Arkéa central functions. A training schedule is drawn up each year in line with regulatory changes in order to raise employee awareness, in particular of ethics and the rules of good financial conduct.

In addition, training in the prevention and management of conflicts of interest was offered to Crédit Mutuel Arkéa’s directors in 2023 via the remote training platform.

2.7Internal control

2.7.1Internal control system

The organisation of internal control is described in the group’s Internal Control Charter, which was updated following the decree of 6 January 2021 relating to the AML-TF system and internal control as well as the freezing of assets and prohibition of the provision or use of funds or economic resources, and that of 25 February 2021 amending the Order of 3 November 2014 on internal control. The group’s Internal Control Charter was approved by the Board of Directors on 26 November 2021.

Work was carried out in 2023 to clarify and formalise the roles and responsibilities of each party involved in the first and second level of permanent control within Crédit Mutuel Arkéa, in accordance with Article 12 of the Decree of 3 November 2014, as well as the breakdown of the permanent control activities exercised by each line of defence. At 31 December 2023, the Group’s Internal Control Charter was being updated to incorporate the changes proposed as part of this work and will be proposed for approval to the Crédit Mutuel Arkéa Board of Directors on 28 February 2024. Consequently, the description of internal control provided below does not include these changes.

The internal control system is organised in each entity according to the “three lines of control” model, in accordance with the texts of the Basel Committee and the European Banking Authority and the amended Order of 3 November 2014 (Article 12):

• first line of control: all employees and operational management, in all entities. Operational staff are primarily responsible for the risks incurred and the associated controls during the execution of the process itself. Operational management is responsible for their identification, prevention and management and the implementation of any corrective actions;
• second line of defence: compliance function, risk management function and independent units dedicated to the second level of permanent control. These functions are responsible, by delegation from the executive officers, for ensuring that risk management systems are defined and implemented correctly. They define a general normative framework and implement their system for the part that concerns them;
• third line of defence: internal audit function. It is organised centrally and hierarchically within a department: the General Inspection and Periodic Control Department. It operates directly within Crédit Mutuel Arkéa structures and through periodic control delegation agreements duly drawn up with each of the group’s subsidiaries: the General Inspection and Periodic Control Department.

The internal control functions conduct their actions in accordance with the group’s Purpose. They contribute, through their audit and control work, to the appropriation and respect of this Purpose by all group entities.

2.7.1.11st line of defence: operational staff

The 1st line of defence is provided by employees exercising operational activities. These employees identify the risks associated with their activity and comply with the procedures and limits set. Each employee and each line of operational activity has the responsibility to take into account and control the risks to which the activity is exposed, to comply with the procedures and limits set, to implement appropriate controls to mitigate the risks inherent in the activities and to report risks not mitigated by these controls.

The operational structures must integrate, in their day-to-day action, the need to respect the principles set by the group in order to act in compliance with the rules set out for compliance within the group. Each group employee is thus an active participant in the process and contributes through his or her actions to controlling the risk of non-compliance.

2.7.1.22nd line of defence

The 2nd line of defence is provided by the Compliance Function and the risk management function and by one or more independent second-level units.

2.7.1.2.1Compliance function

In order to prevent the risk of non-compliance, the group has set up a system based on a body of rules and an organisation based on the complementarity of actions, the objective being for the group to give confidence to customers, suppliers, employees, managers and supervisory authorities in the products, the company and its actions.

A Compliance Charter, which complements the Internal Control Charter, defines the principles and rules applicable to prevent and control the risk of non-compliance within the group.

The Charter thus reminds us that the scope of compliance is based on four major areas:

• financial security, including the fight against money laundering and terrorist financing (AML-TF);
• business conduct and professional ethics;
• the protection of customers’ interests, including the protection of personal data;
• fiscal transparency.

The organisation of the system set up within the group is therefore based on the complementary nature of the actions of the Compliance and Permanent Control Department (CPCD), the heads of compliance control for the entities and the business line operational staff, as well as on the close relationship maintained with the group’s management bodies.

2.7.1.2.1.1Compliance and Permanent Control Department (CPCD)

It reports to the Head of Compliance and Permanent Control Department, who in turn reports to the Deputy Chief Executive Officer in charge of the Development Support Division, who is also a member of Crédit Mutuel Arkéa’s Executive Committee.

In order to ensure consistent practices throughout the group, the Compliance and Permanent Control Department leads and coordinates the implementation of the group’s compliance control systems, including the fight against money laundering and terrorist financing and the protection of personal data.

The CPCD coordinates the overall implementation of the group system. To this end, it:

• identifies, assesses, and maps the risks of non-compliance;
• develops, updates, and coordinates the framework systems in line with legislative and regulatory changes affecting the group’s activities;
• monitors the risks of non-compliance through:
  • monitoring any regulatory developments falling within the scope of compliance and likely to impact compliance control systems. The CPCD shares information with the compliance managers of the group’s entities and participates in their meetings,
  • the permanent control of compliance:
    • control of the implementation of the framework systems by the entities through interviews, collection of reports and controls. When recommendations are made, they are followed up annually. In 2023, all the entities were met with for the:
    • validation of the operational implementation of the systems by the entities,
    • coordination of the collection of information necessary for the preparation of activity reports sent to the supervisory authorities;
  • steering and monitoring of indicators related to the risk of non-compliance:
    • definition of key risk indicators,
    • definition of alert thresholds for major indicators;
• coordinates the group compliance verification function through:
  • advising and assisting the compliance officers of the group’s entities in the implementation of their obligations,
  • the deployment of prevention, detection, control or reporting tools made available to group entities,
  • meeting with the entities through thematic discussions on compliance systems and the annual meeting as part of the annual review with the CPCD,

• the continuous improvement of the quality of data collected on customers in the context of the fight against money laundering and terrorist financing and the fight against tax fraud (notably FATCA and OECD/CRS),
• training initiatives to help strengthen a common compliance culture within the group (training sessions on compliance control systems systematically offered to new compliance control managers when they take up their positions, training of new employees joining Crédit Mutuel Arkéa in the general principles of compliance, training of the management bodies of group entities in the risk of non-compliance, etc.). Crédit Mutuel Arkéa considers that the best practices or good reflexes of all stakeholders contribute to the robustness and effectiveness of the compliance system;

• consolidates and monitors significant events of non-compliance within the group:
  • to enrich the risk mapping,
  • to inform the management bodies of the major inadequacies and failures observed in group (CPCC(1), RICC(2), Crédit Mutuel Arkéa’s Board of Directors) and of the monitoring of indicators with alert thresholds defined in the group's risk appetite framework;
• advises, assists, and raises the awareness of management bodies to the risks of non-compliance;
• reports on the activity and results of the audit to the management bodies:
  • each quarter, at the permanent CPCC chaired by the Deputy Chief Executive Officer in charge of the Development Support Division, who is also an executive officer of Crédit Mutuel Arkéa,
  • each quarter, to the RICC, whose role is to assist Crédit Mutuel Arkéa’s Board of Directors in its risk control responsibilities. An annual report on the fight against money laundering and the financing of terrorism is also presented to the RICC,
  • every six months, to the Board of Directors of Crédit Mutuel Arkéa, which ensures the quality of the systems implemented and the degree of control of the risks to which the group is exposed, as well as the effectiveness of the related compliance controls,
  • each quarter, within the dashboard of the Board of Directors of Crédit Mutuel Arkéa, the monitoring of non-compliance risk indicators with alert thresholds defined in the group’s risk appetite framework, of any possible opening of disciplinary proceedings against a group entity, major inadequacies and failures identified in terms of compliance in the group’s entities,
  • each year, a specific update on the protection of personal data is sent by the Data Protection Officer (DPO) to the Executive Committee of Crédit Mutuel Arkéa,
  • an annual report on the AML-TF activity is presented to the RICC.

2.7.1.2.1.2Group entity managers responsible for verifying compliance

A compliance officer is responsible for ensuring that each entity complies with the principles laid down by the group in terms of prevention and control of the risk of non-compliance.

As direct line managers, the managers of the subsidiaries propose the appointment of a compliance officer for their entity, subject to validation by the group’s compliance officer under a “reinforced functional reporting line”.

This officer identifies, assesses, and monitors the risk of non-compliance within the entity. He or she applies the compliance framework defined by the group to his entity and defines the compliance measures specific to his entity’s activity. He or she advises and reports on the performance of the mission to the entity’s executive officers and supervisory body.

The functional organisation thus set up within the group aims to strengthen business expertise as closely as possible to the activity and to give each entity manager a sense of responsibility.

2.7.1.2.2Risk Management Function

The general mission of the risk management function, in accordance with regulatory requirements (see the Order of 3 November 2014 and guidelines of the European Banking Authority on internal governance), is to ensure the implementation of systems for measuring and monitoring Crédit Mutuel Arkéa’s risks.

Its organisation covers all the risks of all the group’s entities. On a consolidated basis, it provides an overall view of all the risks associated with the group’s banking and non-banking activities on a cross-functional and forward-looking basis.

The purpose of the risk management function is to ensure that the level of risks incurred is compatible with the guidelines set by Crédit Mutuel Arkéa’s supervisory body, which has set the following priority objectives in this area:

• operate within limits consistent with its Purpose, overall performance strategy and objective, financial capabilities, and regulatory risk requirements;
• deliver high-quality, relevant, controlled information to the supervisory body and to the group’s executive officers and supervisory authorities, with each group entity being responsible for managing its risks.

To this end, it relies on the following resources:

• a declaration and management of its risk appetite via a cross-analysis of its business model and risk mapping;
• governance of the risk management function clearly specifying the roles between the various component parts of the group;
• common methods, procedures, and tools to carry out risk analysis, particularly in the context of the launch of new products, new activities or the completion of exceptional transactions;

• an information system covering the management of each risk and each activity and allowing both “local” management by entity and consolidation at group level;
• a risk dashboard covering all group risks and entities.

Responsibility within Crédit Mutuel Arkéa is assigned to Crédit Mutuel Arkéa’s Head of Risk Management, who is independent of the business lines and reports to the Deputy Chief Executive Officer in charge of the Development Support Division and the executive officer of Crédit Mutuel Arkéa. Ultimate responsibility for risk management at the operational level remains with the executive officers of each entity, whether or not its activities are outsourced.

The Head of the group’s risk management function is responsible for organising the smooth operation of this function, ensuring that the executive officers and the group’s supervisory body are properly informed, and ensuring and/or participating in the application of group procedures for his or her area of responsibility.

It intervenes upstream and downstream of operational risk management by the entities and provides consolidated risk monitoring at group level. The results are communicated, using appropriate channels and frequency, to the Risk Monitoring Committee and to the group’s senior management, as well as to the Risk and Internal Control Committee and the Board of Directors of Crédit Mutuel Arkéa. The head of the group’s risk management function relies for this purpose on the network of correspondents appointed in each group entity and on a consolidated information system.

The risk management function is organised functionally, in addition to the hierarchical organisation. Each institution in the group, whether a bank or not, appoints a manager for the risk management function for its scope, with one manager per type of risk.

Functional links are provided at three levels:

• between the head of the risk management function of the group and the Head of the risk management function of each entity;
• between the head of the risk management function of each entity and the designated managers for each type of risk within that entity;
• between the head of the group’s risk management function and the group’s risk managers by type of risk.

This organisation of the risk management function and the resources at its disposal contribute to the compliance of Crédit Mutuel Arkéa’s risk exposure with the risk appetite framework and risk policy defined by its supervisory body. In this respect, all of the documents forming the risk appetite framework constitute the standard which contains the group’s system of limits.

2.7.1.3Permanent control

The organisation of “permanent control” is based on the provisions of the group’s internal control charter, which establishes two levels of permanent control within Crédit Mutuel Arkéa as follows:

• First-level permanent controls: operational controls implemented within the processes, before their settlement, and assimilated to risk management systems; operational controls implemented post these processes and giving rise to consolidated reports;
• Second-level permanent controls: controls implemented by the compliance function, the risk management function and by the independent units dedicated to the second level of permanent control. This second level is in turn divided into two types of control respecting the principle of independence of the controlled units:
  • second-level “Compliance/FGR” permanent control: second-level permanent control carried out by a person from the risk management and/or compliance function; the monitoring and verification systems implemented by the risk management and compliance functions constitute permanent second-level controls,
  • “RCP/CP” second-level permanent control: controls performed by the second-level permanent control manager, assisted or not by a team, in the case of subsidiaries, and by the permanent controllers, reporting directly to the Compliance and Permanent Control Department (CPCD), in the case of Crédit Mutuel Arkéa, the group’s parent company.

With this distinction in mind, the organisation of permanent control and compliance monitoring at Crédit Mutuel Arkéa is based on the following principles:

• the organisation of permanent control covers all risks for all the group’s business lines, regardless of the legal structure of the activities generating these risks:
• ultimate responsibility for compliance with regulatory requirements in terms of permanent control lies with the executive officers of each entity and Crédit Mutuel Arkéa for the consolidated view;
• each subsidiary entity, in accordance with the principles of proportionality and subsidiarity, organises the permanent control and compliance monitoring process within its own organisation and reports directly to Crédit Mutuel Arkéa;
• those in charge of the permanent second level control of a process do not intervene in the execution of this process in order to ensure a seal between permanent first level control and permanent second level control;
• the quality of permanent control is part of the assessment of the steering or management of an activity.

This organisation enables Crédit Mutuel Arkéa’s decision-making bodies to guide risk-taking and control its potential effects with reasonable assurance.

Crédit Mutuel Arkéa’s Compliance and Permanent Control Department (CPCD), which reports to the Deputy Chief Executive Officer in charge of the Development Support Division, is responsible for supervising the permanent control and compliance control managers of the group’s subsidiaries for the permanent control and compliance of the structures within the global 15589 scope(3) for the permanent control and compliance control system at the consolidated level.

2.7.1.4Accounting organisation

The group’s accounting and financial information is prepared by the Finance and Overall Performance Department.

The organisation centralises the key activities that guarantee the quality of accounting information within the group’s scope of consolidation. The Finance and Overall Performance - Accounting Department defines the accounting rules and methods, designs and maintains accounting systems (the validation of specificities related to insurance and leasing activities is delegated to dedicated business teams). The Finance and Overall Performance - Accounting Department determines and implements the control and analysis procedures necessary for the preparation and processing of accounting information for both Crédit Mutuel Arkéa and all delegating subsidiaries, including the financial statements justification process in relation to all entities contributing to the accounting data. The organisation of the production of accounting information is based on two activities: bookkeeping and group consolidation. The processing of accounting transactions and the preparation of accounting and financial data are part of a decentralised organisation whereby each contributing entity is responsible for the quality of the data it produces.

Bookkeeping (preparation of parent company financial statements and related consolidation packages) and the production and distribution of regulatory statements by group entities are carried out directly by the companies’ Finance Departments or by Crédit Mutuel Arkéa’s Finance and Overall Performance - Accounting Department under a formal delegation of authority. The Finance and Overall Performance - Accounting Department collects all accounting information and consolidates data.

The Finance and Overall Performance - Accounting Department has prepared an accounting control guide for all entities that contribute to the accounting information, listing the key controls intended to cover the accounting risk. It leads and coordinates the accounting control system and summarises the results.

Each entity contributing to the accounting information undertakes a quarterly certification sent to Crédit Mutuel Arkéa’s Finance and Overall Performance - Accounting Department on:

• the quality of individual accounts;
• the respect for the group’s principles;
• the conformity of accounting procedures.

This certification includes the results of all the major controls defined in the group’s accounting control guide. All information providers contributing to the preparation of accounting and financial data formally certify to the Finance and Overall Performance - Accounting Department the implementation of the fundamental controls designed to ensure the reliability of the accounting and financial data under their responsibility.

This internal certification process is part of the group’s overall risk management system and provides the Finance and Overall Performance - Accounting Department, as the department responsible for the preparation and quality of the group’s consolidated financial statements, with assurance that there are no major anomalies that could call into question:

• the regularity and sincerity of the accounting information;
• the completeness, effectiveness, and relevance of the system;
• the security of the processes for preparing and processing accounting information.

The Finance and Overall Performance - Financial Steering Department coordinates the management control system of the various group entities, which contributes to the security of financial data, through the budget control and results analysis functions.

These processes are governed by procedures specific to the Finance and Overall Performance – Accounting Department and are controlled by the Statutory Auditors, in addition to the group’s involvement.

A Financial Statements Committee completes the system. It assists Crédit Mutuel Arkéa’s Board of Directors in assessing financial information and checking its reliability. It examines the group’s financial statements and its components before their presentation to the Board of Directors and monitors the effectiveness of the internal control systems with regard to the procedures relating to the preparation and processing of accounting and financial information. The Financial Statements Committee met five times in 2023.

2.7.1.53rd line of defence: the internal audit function and periodic control

Periodic control is carried out by the General Inspection and Periodic Control Department (GIPCD), which is responsible for the internal audit function. The head of this function reports to the Chief Executive Officer of Crédit Mutuel Arkéa and functionally to the Chairperson of the latter. It carries out its activities across all the group’s structures in accordance with the periodic control framework adopted and implemented within the group. It should be noted that, in the case of subsidiaries, the GIPCD acts within the framework of duly regulated agreements delegating the exercise of periodic control. Throughout the group, GIPCD thus exercises its control in accordance with the terms, conditions and procedures set out in the provisions of the Order of 3 November 2014 on the internal control of companies in the banking, payment services and investment services sector subject to the supervision of the French Prudential Supervisory and Resolution Authority (ACPR), as amended.

GIPCD’s mission is to provide independent and objective assurance on the compliance of the group’s activities and to provide consulting services that contribute to creating added value and improving the degree of control over the group’s operations. It helps the group to achieve its objectives by assessing, using a systematic and methodical approach, its risk management, control, and corporate governance processes to determine whether they are appropriate and operate in a manner to ensure that:

• risks are identified and managed appropriately;
• the interaction between the different players in corporate governance takes place as necessary;
• significant financial, management and operating information is accurate, reliable, and issued in a timely manner to the management and supervisory bodies;
• employee actions comply with the rules, standards, procedures, laws, and regulations in force;
• resources are acquired economically, used efficiently and adequately protected;
• programmes, plans, and objectives are achieved;
• the quality and continuous improvement of the organisation’s internal control processes are encouraged;
• significant legislative and regulatory issues impacting the organisation are identified and dealt with appropriately.

To carry out its missions, GIPCD has developed a body of procedures, particularly in the areas of periodic control of business and network risks.

In addition, GIPCD is continuing the process of strengthening internal skills initiated within the Periodic Control Department for business risks and periodic control of the networks, in particular by means of formal qualifications. At the end of 2023, at the end of the training courses followed during the year, nine employees had obtained a certificate, including the “Certified Information Systems Auditor” (or CISA) certificate, the AMF certificate, or the certificate “Certified Internal Auditor” (or CIA). Five auditors are undergoing training to obtain the latter.

In order to carry out its missions, the GIPCD has developed its own risk mapping; this is one of the main sources, along with the business lines' multi-year periodic control plans, for drawing up the annual periodic control plan, the themes of which are also determined on the basis of the following items:

• topics that the Head of the risk management function at Crédit Mutuel Arkéa and the Head of Compliance and Permanent Control, as well as the Head of second level permanent control at Crédit Mutuel Arkéa, consider desirable to audit;
• the subjects of the assignments provided for in the plan and arbitrated or postponed;
• taking into account the areas of control of the French ACPR, the Inspectorate General of the Banque de France, the European Central Bank, and the supervisory authorities involved in the scope of foreign subsidiaries and branches (National Bank of Belgium – NBB, and Financial Services and Market Authority – FSMA);
• the contribution of the members of the group Executive Committee and the managers of each of the group’s reporting entities that have been formally requested by the GIPCD to contribute to the development of their entity’s periodic control plan.

The GIPCD and the General Inspection Department of CNCM hold regular discussions during the preparation of their respective annual audit plans in order to coordinate the work of the various internal audit teams.

The principle of carrying out a post-acquisition review, within six months of being integrated into the group, of any significant acquisition is also implemented as part of the multi-year periodic control plan.

This plan distinguishes between a specific control programme applied to the networks of Crédit Mutuel’s local mutuals and subsidiaries’ branches, and a programme concerning the activities of the group’s central management, companies, and subsidiaries. In order for the audit cycle to be defined according to an approach proportionate to the risks, the periodic control plan includes annual assignments covering the main risks relating in particular to the areas of credit, savings, capital markets and accounting processes, IT, liquidity, solvency and operational risks. The plan of periodic control assignments thus drawn up is validated by the Risk and Internal Control Committee, which is an offshoot of the supervisory body, and adopted by Crédit Mutuel Arkéa’s Board of Directors. The preparation of the 2023 periodic control plan was part of this process. In addition, as part of the decision taken by the ACPR concerning the certification of the annual financial statements of the Crédit Mutuel local banks, the GIPCD carries out an annual audit of the financial statements of the Crédit Mutuel Arkéa local banks before they are presented to the General Meeting of members, in accordance with accounting auditing standards.

Furthermore, in terms of control, the GIPCD is specifically responsible for the detection and treatment of internal fraud. In this context, it is responsible for deploying a remote control system by sampling and, in general, contributing to the prevention and detection of internal fraud by appropriate means. In this area, the GIPCD is specifically in charge of auditing employee accounts and ensuring that directors comply with their obligations, in accordance with applicable regulations and in compliance with the laws, standards and principles adopted by Crédit Mutuel Arkéa.

2.7.2Governance of internal control

2.7.2.1Role of the management body in its executive function

The executive officers of the group are responsible for effectively determining the direction of the business (Article L.511-13 of the French Monetary and Financial Code).

In particular, they implement the internal control systems, adapting them to the various risks to which the group is exposed.

They inform the group’s supervisory body of the progress of this implementation and the status of the systems, as well as the degree of risk control they provide.

Specialised committees at executive level are also involved in the internal control system.

2.7.2.1.1Group Compliance and Permanent Control Committee

The Compliance and Permanent Control Committee (CPCC) is chaired by Crédit Mutuel Arkéa’s Deputy Chief Executive Officer in charge of the Development Support Division.

The group’s Head of the Retail Customer Division, the Head of the BtoB and Specialised Services Division, the Director of the Innovation and Operations Division, the Director of Banking Products, and the group Head of Legal are also members.

The Head of Compliance and Permanent Control is secretary to the CPCC, and the Head of Risk Management and the Deputy Manager of General Inspection and Periodic Control are present as guests.

The mission of the CPCC is to:

• centrally ensure the quality of the permanent control system covering all risks related to the group’s activities;
• ensure the quality of the group’s compliance control systems in the following areas: financial security, including AML-TF, professional conduct and ethics, customer protection, including personal data protection, and fiscal transparency;

As such, the committee:

• analyses the main indicators and quarterly business items enabling it to assess the effectiveness of the systems;
• monitors any observed shortcomings and deficiencies in compliance, the indicators and alert thresholds defined in the group’s risk appetite framework and, if they are exceeded, monitors the actions undertaken;
• ensures, for non-compliance or major regulatory changes requiring a cross-functional compliance project, that a structure is in charge of managing the project and, failing that, appoints this structure;
• validates the framework systems and requests exemptions applicable to all group entities in the areas of permanent control and compliance;
• approves the permanent control plans of the group’s entities and any arbitration during the year;
• can request any additional analysis or action contributing to better risk management.

The committee ensures that it assesses the impact on customers of the decisions it is required to make. In the event of an impact, the committee organises feedback on the implementation.

The committee examines and approves any significant changes to the permanent control or compliance verification system, based on the work of the Crédit Mutuel Arkéa group Compliance and Permanent Control Department.

It met five times in 2023, on 17 February, 24 May, 18 July, 4 October, and 22 November.

2.7.2.1.2Risk Monitoring Committee

The group Risk Monitoring Committee ensures the consolidated governance and management of the group’s risks under the risk management function.

The committee is composed of the Director of the Retail Customer Division, who is also Deputy Chief Executive Officer and an executive officer, who chairs it, the Director of the Innovation and Operations Division, the Director of the Corporate and Institutional Division, the Director of the Product Division, and the Director of Human Resources.

The committee’s duties include:

• setting the main lines of the group’s risk policy (principles, risk mapping and risk appetite framework, control systems and methods of implementation), ensuring that the regular update of this policy includes the ESG-climate criteria for the risks concerned, and issuing an opinion on the relevance of this policy before its presentation to the management body;
• examining the strategic changes planned at the level of the entities and likely to have an impact on their risk profile and their risk appetite framework, and the prior review of equity transactions falling under the responsibility of the Executive Management Committee;
• defining the system of limits and the delegations (overall and detailed) for the approval of the management body and ensuring regular monitoring of compliance with these limits;
• validating management policies for all types of risks such as credit risk, market risk, operational risk, environmental risk, etc. Risk management systems (procedures and tools, including the internal rating system and ESG), as well as the associated crisis management and business continuity systems;
• monitoring the main risk areas across the group:
  • analysing and reviewing changes, particularly in scope, and their impact in terms of risk,
  • reviewing financial (results, capital, and capital requirements) or non-financial exposures and impacts,
  • consolidated risk review, including FGR risks not directly supervised by the RD or subject to dedicated committees (non-compliance risk, IT risk, interest rate and liquidity risk),
• validating and monitoring risk, preventive or curative action plans;
• proposing an analysis and monitoring of the impacts of regulatory changes in terms of risk;
• preparing and approving regulatory risk reports (ICAAP, PPR/PRC, Pillar 3, ORSA, etc.);
• providing the management body with an informed opinion on issues relating to emerging risks (including ESG risks).

The committee meets at least six times a year, or more if current events so require. In 2023, the Risk Monitoring Committee was called upon 17 times.

2.7.2.1.3Periodic Control Committee

Chaired by the Chief Executive Officer of Crédit Mutuel Arkéa, this committee is responsible for assessing the quality of periodic control, in particular the consistency of the systems for measuring, monitoring, and managing the risks incurred at the consolidated level, and for proposing additional actions as necessary. It is involved in defining the annual periodic control programme.

It takes note of the conclusions of the control and audit reports, reviews the recommendations contained in these reports and monitors their implementation.

The members of the committee are:

• the CEO (Chairperson);
• the Director of Institutional Relations;
• the Head of the Corporate and Institutional Division;
• the Head of the Retail Customer Division;
• the Head of the Product Division;
• the Head of the General Inspection and Periodic Control Department;
• the Deputy Head of the General Inspection and Periodic Control Department.

The Head of the business line Periodic Control Department acts as secretary for the meetings.

The frequency of meetings is set at a minimum of six times a year. The Periodic Control Committee met nine times in 2023.

2.7.2.2Role of the management body in its supervisory function

The group’s supervisory body periodically verifies the quality of the systems implemented and the degree of control of the risks to which the group is exposed, on the basis of the information provided to it by the Chairman of the group Risk and Internal Control Committee and the Head of the General Inspection and Periodic Control Department (in particular the information required for the annual report on internal control in accordance with the amended Order of 3 November 2014 on the internal control of banking, payment services and investment services companies subject to the supervision of the French Prudential Supervisory and Resolution Authority (ACPR).

The group’s supervisory body is also informed on the basis of information provided by the group’s Head of Compliance and Permanent Control, who presents the activity and results of permanent control and compliance monitoring to Crédit Mutuel Arkéa’s Risk and Internal Control Committee on a quarterly basis, and provides a summary of compliance and permanent control work to Crédit Mutuel Arkéa’s Board of Directors every six months.

The group’s supervisory body is informed by Crédit Mutuel Arkéa’s Head of the Risk Management Department of the measurement and monitoring of risks to which the group is exposed (in particular the information required for the annual report on the measurement and monitoring of risks in accordance with the amended Order of 3 November 2014 on the internal control of banking, payment services and investment services companies subject to the supervision of the ACPR).

Specialised committees of the supervisory body are also involved in the internal control system, the Risks and Internal Control Committee and the Financial Statements Committee, as described in Section 2.2.3 "Specialised committees".

The mission of the group Risk and Internal Control Committee is to assist the supervisory body in its responsibility for risk control in accordance with the provisions of the amended Order of 3 November 2014 on the internal control of banking, payment services and investment services companies subject to the supervision of the ACPR.

With regard to the accounting treatment of transactions, the Financial Statements Committee analyses and controls the global and consolidated financial statements before they are presented to the Supervisory Board.

The supervisory body of each Crédit Mutuel Arkéa subsidiary validates the application of the charter’s principles and their adaptation to the entity and entrusts their implementation to the executive officers.

2.8Compensation of corporate officers

2.8.1Compensation policy for corporate officers for the financial year 2024

2.8.1.1General principles

The compensation policy for corporate officers, i.e. the Chairman of the Board of Directors, the Chief Executive Officer, the Deputy Chief Executive Officers, the salaried Deputy Chief Executive Officers and the members of the Board of Directors of Crédit Mutuel Arkéa, is defined by the Board of Directors on the basis of proposals from the Compensation Committee in accordance with the overall compensation policy of the Crédit Mutuel Arkéa group.

Designed to promote sound and effective risk management, Crédit Mutuel Arkéa’s compensation policy is consistent with the group’s economic strategy, objectives, values, and long-term interests, does not encourage risk-taking that exceeds the level of risk defined by the group and includes measures to avoid conflicts of interest.

The compensation of Crédit Mutuel Arkéa’s executive corporate officers complies with:

• the regulatory framework set by the French Monetary and Financial Code (Articles L.511-71 et seq. and R.511-18 et seq.);
• the prudential provisions applicable to credit institutions and investment companies (CRD Package);
• the provisions of Law no. 47-1775 of 10 September 1947 on the status of cooperation;
• the provisions on public limited companies whose securities (other than shares) are admitted to trading on a regulated market of the French Commercial Code applicable to compensation;
• the confederal framework on compensation - Identified population of the Confédération de Crédit Mutuel.

The compensation of the executive corporate officers is decided annually by the Board of Directors, on the recommendation of the Compensation Committee.

The compensation policy for executive corporate officers takes into account the following objectives in its principles:

• alignment with the Raison d'être (Purpose) and commitments as a Company with a mission as defined by the Board of Directors of Crédit Mutuel Arkéa:
  • by being in line with the economic strategy, objectives, values, and interests of the Crédit Mutuel Arkéa group,
  • by integrating both financial and non-financial assessment factors, so that the compensation policy implemented strives to maintain consistency between the overall compensation of employees, the performance of Crédit Mutuel Arkéa group and the individual performance of employees;
• the need for the Crédit Mutuel Arkéa group to attract, motivate and retain profiles that are recognised as high performers and particularly competent in the group’s fields of activity;
• consistency with the compensation and employment conditions of the Crédit Mutuel Arkéa group’s employees (in particular the compensation structure, assessment criteria or changes in compensation) and market practices observed in companies in the same sector;
• while ensuring appropriate risk management and regulatory compliance, and ensuring that conflicts of interest are avoided and that decisions are made fairly.

The Chairman of the Board of Directors receives an indemnity to compensate for the time devoted to the administration of Crédit Mutuel Arkéa. He receives no variable compensation.

The compensation of the Chief Executive Officer, the Deputy Chief Executive Officer and the salaried Deputy Chief Executive Officers is structured as follows:

• fixed compensation (FC), which makes it possible to retain and motivate managers and which values the experience and responsibilities exercised. It represents a significant part of total compensation and is used as a basis for determining the ceilings for variable compensation;
• the annual variable compensation depends on the financial and non-financial performance of the year, and is part of a multi-year framework in line with the Crédit Mutuel Arkéa group strategy.

The payment of their variable compensation is not guaranteed and may not, in any event, have the effect of limiting the capacity of Crédit Mutuel Arkéa or the group to strengthen its equity capital. In addition, the Chief Executive Officer, the Deputy Chief Executive Officer and the salaried Deputy Chief Executive Officers are members of the regulated population and, as such, they are subject to the rules relating to the vesting and payment of a portion of their variable compensation. Thus, 75% of their variable compensation is subject to annual withholding and/or deferred payment over a total period of six years.

2.8.1.2Fixed compensation

The Chairman of the Board of Directors receives an indemnity to compensate for the time devoted to the administration of Crédit Mutuel Arkéa.

The Chief Executive Officer and the Deputy Chief Executive Officers receive fixed compensation.

The amount of the fixed compensation, based on a study carried out by Willis Towers Watson, is determined by the Board of Directors on the proposal of the Compensation Committee taking into account:

• the experience and scope of responsibility of the executive corporate officers compared to a panel of executives in the banking and financial sector, as established by Willis Towers Watson;
• market practices and compensation observed for similar functions in comparable companies.

Chairman of the Board of Directors of Crédit Mutuel Arkéa

The compensation of the Chairman of the Board of Directors of Crédit Mutuel Arkéa is exclusively fixed and its amount, determined by the Board of Directors on the proposal of the Compensation Committee, takes into account:

• the professional experience required to assume the position of Chairman of the supervisory body of a credit institution such as Crédit Mutuel Arkéa, whose performance is sustainable without excessive risk-taking;
• the responsibilities for supervision, monitoring, and control, including risk management, associated with this function;
• the key role of the Chairman in initiating the Board of Directors’ determination of the group’s strategic direction;
• representing the company in its high-level relations with public authorities, banking supervisors and the company’s strategic stakeholders;
• maintaining relations with the local member banks and federations making up the Crédit Mutuel Arkéa group;
• ensuring that the Board of Directors is balanced, in addition to its proper functioning;
• market practices and compensation observed for similar functions in companies in the same sector.

For the Chairman of the Board of Directors, the amount of annual compensation amounts to seven hundred thousand euros from 1 January to 30 April 2024. As of 1 May 2024, it amounts to seven hundred and eighty thousand euros.

Chief Executive Officer of Crédit Mutuel Arkéa

The Chief Executive Officer of Crédit Mutuel Arkéa receives a fixed compensation, the amount of which is determined by the Board of Directors on the recommendation of the Compensation Committee and takes into account:

• the experience and scope of responsibilities of the Chief Executive Officer compared to a panel of executives in the banking and financial sector;
• market practices and compensation observed for similar functions in comparable companies.

For Hélène Bernicot, Chief Executive Officer of Crédit Mutuel Arkéa, the annual fixed compensation for the 2024 financial year amounts to four hundred and eighty-seven thousand five hundred euros.

Deputy Chief Executive Officer of Crédit Mutuel Arkéa

The Deputy Chief Executive Officer of Crédit Mutuel Arkéa receives a fixed compensation, the amount of which is determined by the Board of Directors on the recommendation of the Compensation Committee and takes into account:

• the experience and scope of responsibilities of the Deputy Chief Executive Officer compared to a panel of executives in the banking and financial sector;
• market practices and compensation observed for similar functions in comparable companies.

For Anne Le Goff, Deputy Chief Executive Officer of Crédit Mutuel Arkéa, the annual fixed compensation for the 2024 financial year amounts to four hundred and seventy thousand euros.

Deputy Chief Executive Officers – employees

The Deputy Chief Executive Officers of Crédit Mutuel Arkéa, employees of Arkéa SCD, receive a fixed compensation, approved by the Compensation Committee and the Board of Directors, the amount of which takes into account:

• the experience and scope of responsibilities of the Deputy Chief Executive Officers compared to a panel of executives in the banking and financial sector;
• market practices and compensation observed for similar functions in comparable companies.

For Bertrand Blanpain, Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division, the annual fixed compensation for the 2024 financial year amounts to three hundred and forty-five thousand euros.

For Frédéric Laurent, Deputy Chief Executive Officer of Crédit Mutuel Arkéa from 1 January to 29 February 2024, the annual fixed compensation for the 2024 financial year amounts to three hundred and five thousand euros.

2.8.1.3Annual variable compensation

The Chief Executive Officer, Deputy Chief Executive Officer and salaried Deputy Chief Executive Officers receive variable compensation according to the principles described below.

The Board of Directors, on the proposal of the Compensation Committee, sets the criteria for assessing the AVC for executive corporate officers each year. The AVC is intended to reflect sustainable performance in line with the risk appetite framework as well as, where appropriate, exceptional performance by executive corporate officers or their very strong involvement in the performance of the missions entrusted to them in view of the scope of their responsibilities.

For the Chief Executive Officer and the Deputy Chief Executive Officer, variable compensation may reach 100% of the amount of fixed compensation.

For the Deputy Chief Executive Officers with an employment contract, the variable compensation can reach 80% (target level) of the fixed compensation in case of achievement of all the objectives and 100% (ceiling level) in case of exceptional performance.

The AVC indicators, which are set by the Board of Directors in line with the group’s multi-year plan, are established in accordance with Crédit Mutuel Arkéa group’s risk appetite framework, which seeks to set them at a level that is compatible with its overall performance objectives while ensuring that it is always able to control them. The levels of risk and risk control are criteria that are subject to great attention and are particularly selective in the direction of the group’s development.

All of the principles applicable to members of the group’s regulated population are applied to the executive corporate officers who are also members of the regulated population.

• Variable compensation is conditional on compliance with the thresholds defined in the group’s risk appetite framework for the three indicators below:
  • the bank solvency ratio (CET1),
  • the commitment ratio,
  • the operating ratio;
• payment of a portion of their variable compensation, equal to 50%, deferred over five years;
• payment of a portion of the compensation in cash indexed to a composite indicator calculated on the basis of group consolidated criteria;
• the payment of deferred variable compensation is subject to compliance with the Crédit Mutuel Arkéa group’s CET1 risk appetite threshold at each payment date;
• allocation, vesting and/or payment of variable compensation taking into account the risks taken, via ex-ante and ex-post risk adjustment mechanisms.

2.8.1.4Financial and similar instruments

In accordance with regulatory obligations, the payment of variable compensation is made as follows, for the deferred and non-deferred portion:

• half in cash;
• half in cash indexed to a composite indicator calculated on the basis of consolidated group criteria and paid at the end of a 12-month retention period.

2.8.1.5Benefits in kind

As a benefit in kind, the Chairman of the Board of Directors receives company housing and a company car.

Benefits in kind for the Chief Executive Officer, Deputy Chief Executive Officer and salaried Deputy Chief Executive Officers consist of a company car.

2.8.1.6Employee savings plans

The salaried Deputy Chief Executive Officers benefit from an employee savings scheme.

2.8.1.7Employment contract and corporate office

Chairman of the Board of Directors of Crédit Mutuel Arkéa

The Chairman of the Board of Directors of Crédit Mutuel Arkéa does not have an employment contract.

Chief Executive Officer of Crédit Mutuel Arkéa

The employment contract of the Chief Executive Officer of Crédit Mutuel Arkéa has been suspended since 13 February 2020 for the duration of her term of office, to be automatically resumed at the end of her term.

Deputy Chief Executive Officer of Crédit Mutuel Arkéa

The employment contract of the Deputy Chief Executive Officer of Crédit Mutuel Arkéa, has been suspended since 13 February 2020 and for the duration of her term of office, to be automatically resumed at its end.

Salaried Deputy Chief Executive Officers of Crédit Mutuel Arkéa

The Deputy Chief Executive Officers in charge of the Entreprises et Institutionnels and Retail Customer Divisions hold an employment contract.

The real nature of the contract is reflected in the subordination to the Chief Executive Officer and, in addition, the Deputy Chief Executive Officers exercise full technical functions.

2.8.1.8Severance payments

Chairman of the Board of Directors of Crédit Mutuel Arkéa

In the event of termination of his term of office as Chairman of the Board of Directors, for any reason whatsoever, the Chairman shall not receive any compensation in this respect.

Chief Executive Officer of Crédit Mutuel Arkéa

In the event of termination of her term of office as Chief Executive Officer by the company for any reason whatsoever excluding misconduct or failure as defined by applicable law and regulations, subject to having exercised the function of Chief Executive Officer for at least two years, the Chief Executive Officer will receive a maximum indemnity equal to two years’ compensation (calculated on the basis of the fixed compensation received during the twelve months preceding the date of the termination of the term of office, to which is applied a multiplying factor i evaluated prorata temporis over the first 3 years of office and capped at 2 thereafter (i = 1 + a/36, a being the number of months spent, capped at 36)), and the benefits in kind constituted by the provision of a company car.

• If the variable rate is higher than 50% on average over the last three years of the term of office (or during the term of office if the term of office was shorter), the compensation will be paid in full;
• If at least 33% of an average variable rate is not obtained over this reference period, no compensation will be paid;
• Between 33% and 50%, the amount of the compensation is determined by applying this average level.

Its payment is subject to the recognition of a level of Tier 1 capital (CET1) of the Crédit Mutuel Arkéa group at least equal to the requirements of the supervisor (taking into account both the requirements of Pillar 1 and the global requirements for capital buffers, and Pillar 2 (P2R) capital requirements notified to the CMA group by the ECB.

In addition, in the event of dismissal notified to Hélène Bernicot or of contractual termination of the employment contract, within twelve months following the termination of her term of office, the amount of compensation for termination of her term of office as Chief Executive Officer of the company added to the amount of the statutory or contractual compensation for dismissal or contractual termination may in no case exceed the higher of (i) the compensation for termination of office and (ii) the statutory or contractual compensation for dismissal.

Deputy Chief Executive Officer of Crédit Mutuel Arkéa

In the event of termination of her term of office as Chief Executive Officer by the company for any reason whatsoever excluding misconduct or failure as defined by applicable law and regulations, subject to having exercised the function of Chief Executive Officer for at least two years, the Chief Executive Officer will receive a maximum indemnity equal to two years’ compensation (calculated on the basis of the fixed compensation received during the twelve months preceding the date of the termination of the term of office, to which is applied a multiplying factor i evaluated prorata temporis over the first 3 years of office and capped at 2 thereafter (i = 1 + a/36, a being the number of months spent, capped at 36)), and the benefits in kind constituted by the provision of a company car.

• If the variable rate is higher than 50% on average over the last three years of the term of office (or during the term of office if the term of office was shorter), the compensation will be paid in full;
• If at least 33% of an average variable rate is not obtained over this reference period, no compensation will be paid;
• Between 33% and 50%, the amount of the compensation is determined by applying this average level.

Its payment is subject to the recognition of a level of Tier 1 capital (CET1) of the Crédit Mutuel Arkéa group at least equal to the requirements of the supervisor (taking into account both the requirements of Pillar 1 and the global requirements for capital buffers, and Pillar 2 (P2R) capital requirements notified to the CMA group by the ECB.

In addition, in the event of dismissal notified to Anne Le Goff or of contractual termination of the employment contract, within twelve months following the termination of her term of office, the amount of compensation for termination of her term of office as Deputy Chief Executive Officer of the company added to that of the legal or contractual compensation for dismissal or contractual termination may in no case exceed the higher of (i) the compensation for termination of office and (ii) the statutory or contractual compensation for dismissal.

2.8.1.9Retirement

Chairman of the Board of Directors of Crédit Mutuel Arkéa

The Chairman of the Board of Directors benefits from a defined contribution pension plan.

Chief Executive Officer of Crédit Mutuel Arkéa

On retirement, and provided she has been with the group for at least five years, the Chief Executive Officer of Crédit Mutuel Arkéa receives a termination benefit equal to seven twelfths of her annual compensation.

The Chief Executive Officer benefits from a defined contribution pension plan.

Deputy Chief Executive Officer of Crédit Mutuel Arkéa

At the time of her retirement, and provided she has been with the group for at least five years, the Deputy Chief Executive Officer of Crédit Mutuel Arkéa receives a termination benefit equal to seven twelfths of her annual compensation.

The Deputy Chief Executive Officer benefits from a defined contribution pension plan.

Salaried Deputy Chief Executive Officers of Crédit Mutuel Arkéa

On retirement, and provided they have been with the group for at least five years, Crédit Mutuel Arkéa’s Deputy Chief Executive Officers receive a termination payment equal to seven twelfths of their annual compensation. The Deputy Chief Executive Officers also receive end-of-career leave calculated at twenty-three days for each year spent as a senior executive of the Crédit Mutuel Arkéa group.

The salaried Deputy Chief Executive Officers benefit from a defined contribution pension plan.

2.8.1.10Loans, advances, and guarantees granted to executive corporate officers

Crédit Mutuel Arkéa’s executive corporate officers may be granted loans.

These loans, which constitute current transactions, are granted under normal market conditions and are subject to appropriate documentation that can be made available to the banking supervisory authorities on request.

2.8.1.11Compensation of the members of the Board of Directors

The rules for the allocation of compensatory allowances for time spent paid in respect of the duties performed by members of the Board of Directors of Crédit Mutuel Arkéa were adopted by the Board of Directors on 22 May 2015 on the advice of the Compensation Committee. They have been reviewed several times. On 2 June 2023, the Board of Directors approved the amendment to the Board of Directors’ operating rules on the point relating to compensation (Article 11).

The rules are now as follows for directors and non-voting Board members from the cooperative movement:

• a fixed annual compensation for each elected director or non-voting Board member of ten thousand euros (gross);
• an additional fixed annual compensation for the Vice-Chairperson of seven thousand one hundred and fifty euros (gross);
• attendance compensation per meeting for each director or non-voting Board member present at a meeting of the Board of Directors of seven hundred and fifteen euros (gross) up to an annual maximum of sixteen thousand euros (gross), including fixed compensation;
• an annual limit of eighteen thousand euros gross (including fixed and variable compensation).

In addition, the Board of Directors adopted, by resolution of 2 June 2017, on the proposal of the Compensation Committee, the rules for the allocation of compensation paid to directors not from the cooperative movement: These rules were also adjusted by the amendment approved by the Board of Directors on 8 April 2022 and extended to non-voting Board members not from the cooperative movement: New changes were approved by the Board of Directors on 2 June 2023.

The rules are now as follows:

• a fixed annual compensation of ten thousand euros (gross);
• attendance compensation per meeting for each director or non-voting Board member not from the cooperative movement present at a meeting of the Board of Directors of one thousand nine hundred and thirty-five euros (gross);
• an annual limit of thirty-two thousand euros gross (including fixed compensation and compensation per meeting).

With regard to the specialised committees and commissions, since the deliberation of the Board of Directors on 2 June 2023, the same provisions apply to all directors, whether or not from the cooperative movement, and are as follows: :

• a fixed annual compensation for each specialised committee Chairperson of three thousand five hundred and eighty euros (gross);
• attendance compensation of seven hundred and fifteen euros (gross) per specialised committee meeting;
• attendance compensation of three hundred euros (gross) per advisory committee meeting;
• an annual limit of fourteen thousand three hundred euros (gross), in respect of compensation per meeting, all committees combined.

In respect of their duties within Crédit Mutuel Arkéa’s subsidiaries, the subsidiaries, the directors of Crédit Mutuel Arkéa also benefit from:

• a fixed annual sum for each Chairperson of a subsidiary of three thousand nine hundred and twenty euros (gross);

• attendance fee per meeting for each Chairperson of four hundred and thirty euros (gross); and
•  

•  attendance fee per meeting for each director of three hundred and sixty euros (gross).

Finally, in addition to the allocation rules set out above, it is specified that the directors of Crédit Mutuel Arkéa may, in some cases, receive lump-sum compensation for their duties within federal bodies.

2.8.2Fixed, variable, and exceptional components of total compensation and benefits of any kind paid during the 2023 financial year or granted in respect of the 2023 financial year

2.8.2.1Chairman of the Board of Directors of Crédit Mutuel Arkéa

Fixed compensation

The annual compensatory allowance of Julien Carmona, in his capacity as Chairman of the Board of Directors of Crédit Mutuel Arkéa, was set, for 2023, at seven hundred thousand euros.

Retirement

The annual individual and conditional supplementary pension rights of Julien Carmona at 31 December 2023 consisted of a supplementary defined-contribution life annuity, estimated at two thousand eight hundred and ninety eight euros (gross).

Benefits in kind

Julien Carmona, in his capacity as Chairman of the Board of Directors of Crédit Mutuel Arkéa, is provided with a company car and company housing.

These components constitute his compensation as Chairman for all the duties he performs within the Group. He does not receive any additional indemnities or directors’ fees for his other positions within the group, nor any compensation for external positions held as the group’s representative.

2.8.2.2Chief Executive Officer of Crédit Mutuel Arkéa

Fixed compensation

The annual fixed compensation of Hélène Bernicot, in her capacity as Chief Executive Officer of Crédit Mutuel Arkéa, was set at four hundred and eighty-seven thousand euros for 2023.

Annual variable compensation

The conditions for the payment of variable compensation and the level of achievement of the individual objectives set for Hélène Bernicot, in her capacity as Chief Executive Officer of Crédit Mutuel Arkéa having been met, the Board of Directors approved the payment of annual variable compensation the amount of which represents 100% of the gross fixed annual compensation, i.e. four hundred and eight seven thousand five hundred and fifty euros for 2023, it being specified that 50% of this compensation is deferred over five years and is subject to payment and vesting conditions and changes to a composite index.

Retirement

At 31 December 2023, the estimated actuarial amount of the individual pension (Article 39) for the benefit of the Chief Executive Officer, crystallised at 31 December 2019, was, in accordance with Article D. 225-104-1 of the French Commercial Code, sixty seven thousand nine hundred and thirty-nine euros.

Under the supplementary defined-contribution pension plan, the annual individual and conditional supplementary pension rights of Hélène Bernicot, at 31 December 2023, consisted of a life annuity, estimated at six thousand  and ninety-one euros.

Benefits in kind

Hélène Bernicot, in her capacity as Chief Executive Officer, is provided with a company car.

2.8.2.3Deputy Chief Executive Officer of Crédit Mutuel Arkéa

Fixed compensation

The annual fixed compensation of Anne Le Goff, in her capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa, was set at four hundred and seventy thousand euros for 2023.

Annual variable compensation

The conditions for the payment of variable compensation and the level of achievement of the individual objectives set for Anne Le Goff, in her capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa having been met, the Board of Directors approved the payment of annual variable compensation, the amount of which represents 100% of the gross annual compensation, i.e. four hundred and seventy thousand euros for 2023, it being specified that 50% of this compensation is deferred over five years and is subject to payment and vesting conditions and changes to a composite index.

Retirement

At 31 December 2023, the estimated actuarial amount of the individual annuity (Article 39) for the Deputy Chief Executive Officer, crystallised at 31 December 2019, was established, in accordance with Article D.225-104-1 of the French Commercial Code, to eighty-seven thousand two hundred and thirty euros.

Under the supplementary defined-contribution pension plan, Anne Le Goff’s annual individual and conditional supplementary pension rights at 31 December 2023, consisted of a life annuity, estimated at eight thousand six hundred and seventy-nine (gross).

Benefits in kind

Anne Le Goff, in her capacity as Deputy Chief Executive Officer, is provided with a company car.

2.8.2.4Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division

Fixed compensation

The annual fixed compensation of Bertrand Blanpain, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division, was set at three hundred and twenty-five thousand euros for 2023.

Annual variable compensation

The conditions for the payment of variable compensation and the level of achievement of the individual objectives set for Bertrand Blanpain, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division, having been met, the Board of Directors approved the payment of an annual variable compensation, the amount of which represents 97.5% of the gross fixed annual compensation, i.e. three hundred and sixteen thousand eight hundred and seventy-five euros (gross) for 2023, it being specified that 50% of this compensation is deferred over five years and is subject to payment and vesting conditions and changes to a composite index.

Retirement

At 31 December 2023, the estimated actuarial amount of the individual annuity (Article 39) for the Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division at 31 December 2019, was, in accordance with Article D.225-104-1 of the French Commercial Code, ten thousand three hundred and sixty-seven euros.

Under the supplementary defined-contribution pension plan, the annual individual and conditional supplementary pension rights of Bertrand Blanpain, at 31 December 2023, consisted of a life annuity, estimated at seven thousand seven hundred and fifty-four euros (gross).

Benefits in kind

Bertrand Blanpain, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Corporate and Institutional Banking Division, is provided with a company car.

2.8.2.5Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division

Fixed compensation

The annual fixed compensation of Frédéric Laurent, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division, was set at three hundred and five thousand euros for 2023.

Annual variable compensation

The conditions for the payment of variable compensation and the level of achievement of the individual objectives set for Frédéric Laurent, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division having been met, the Board of Directors approved the payment of annual variable compensation, the amount of which represents 100% of gross fixed annual compensation, i.e. three hundred and five thousand euros for 2023, it being specified that 50% of this compensation is deferred over five years and is subject to payment and vesting conditions and changes to a composite index.

Retirement

At 31 December 2023, the estimated actuarial amount of the individual annuity (Article 39) for the Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division, crystallised at 31 December 2019, was, in accordance with Article D.225-104-1 of the French Commercial Code, fifty-two thousand five hundred and fifty-five euros.

Under the supplementary defined-contribution pension plan, Frédéric Laurent’s annual individual and conditional supplementary pension rights, at 31 December 2023, consisted of a life annuity, estimated at eleven thousand four hundred and sixty-five euros (gross).

Benefits in kind

Frédéric Laurent, in his capacity as Deputy Chief Executive Officer of Crédit Mutuel Arkéa in charge of the Retail Customer Division, is provided with a company car.

2.8.2.6Performance trends

Evolution of the compensation granted to each of the executive corporate officers compared to the group’s performance over the last five financial years (data in € millions):

2.8.3Table of individual compensation of executive corporate officers

The gross compensation awarded to Crédit Mutuel Arkéa’s executive corporate officers is detailed in the tables below:

Julien Carmona, Chairman of the Board of Directors

(1) €33,561 - adjustments for 2021 made in 2022 (-€22,327) = €11,234

Hélène Bernicot, Chief Executive Officer

Terms of vesting and payment of variable compensation in respect of 2023

In accordance with the compensation policy approved by the Board of Directors on 27 February 2023, payment of the variable compensation awarded is not guaranteed and may not, in any event, have the effect of limiting the capacity of Crédit Mutuel Arkéa or the group to strengthen their equity. In addition, as the Chief Executive Officer is a member of the regulated population, rules relating to the vesting and payment of a portion of her variable compensation are applied. Thus, 25% of the variable compensation awarded in respect of the 2023 financial year is paid in cash in 2024. The remaining 75% is subject to withholding and/or deferred payment subject to conditions, over a total period of six years.

In 2023, Hélène Bernicot was paid one hundred and sixty-two thousand three hundred and thirty-nine euros in gross variable compensation for the years 2021 and 2022.

Anne Le Goff, Deputy Chief Executive Officer

Terms of vesting and payment of variable compensation in respect of 2023

In accordance with the compensation policy approved by the Board of Directors on 27 February 2023, payment of the variable compensation awarded is not guaranteed and may not, in any event, have the effect of limiting the capacity of Crédit Mutuel Arkéa or the group to strengthen their equity. In addition, as the Deputy Chief Executive Officer is a member of the regulated population, rules relating to the vesting and payment of a portion of her variable compensation are applied. Thus, 25% of the variable compensation awarded in respect of the 2023 financial year is paid in cash in 2024. The remaining 75% is subject to withholding and/or deferred payment subject to conditions, over a total period of six years.

In 2023, Anne Le Goff was paid one hundred and sixty-six thousand nine hundred and ninety-one euros in gross variable compensation for the years 2021 and 2022.

Bertrand Blanpain, salaried Deputy Chief Executive Officer

Terms of vesting and payment of variable compensation in respect of 2023

In accordance with the compensation policy approved by the Board of Directors on 27 February 2023, payment of the variable compensation awarded is not guaranteed and may not, in any event, have the effect of limiting the capacity of Crédit Mutuel Arkéa or the group to strengthen their equity. In addition, as the salaried Deputy Chief Executive Officer is a member of the regulated population, rules relating to the vesting and payment of a portion of his variable compensation are applied. Thus, 25% of the variable compensation awarded in respect of the 2023 financial year is paid in cash in 2024. The remaining 75% is subject to withholding and/or deferred payment subject to conditions, over a total period of six years.

In 2023, Bertrand Blanpain was paid one hundred and sixty-two thousand two hundred and sixty-one euros in gross variable compensation for the years 2021 and 2022.

Frédéric Laurent, salaried Deputy Chief Executive Officer

Terms of vesting and payment of variable compensation in respect of 2023

In accordance with the compensation policy approved by the Board of Directors on 27 February 2023, payment of the variable compensation awarded is not guaranteed and may not, in any event, have the effect of limiting the capacity of Crédit Mutuel Arkéa or the group to strengthen their equity. In addition, as the salaried Deputy Chief Executive Officer is a member of the regulated population, rules relating to the vesting and payment of a portion of his variable compensation are applied. Thus, 25% of the variable compensation awarded in respect of the 2023 financial year is paid in cash in 2024. The remaining 75% is subject to withholding and/or deferred payment subject to conditions, over a total period of six years.

In 2023, Frédéric Laurent was paid one hundred and eighty thousand three hundred and fourteen euros in gross variable compensation for 2021, 2022 and 2023.

2.8.4Table of compensation of the members of the Board of Directors

In accordance with the law of 10 September 1947, the duties of a member of the Board of Directors entitle the holder to the reimbursement of expenses against receipts, as well as the payment of compensation for time spent on the administration of the cooperative.

3.Overall performance

3.1Recent trends and outlook

3.1.1Economic and regulatory environment in 2023

In 2023, global growth showed undeniable resilience thanks to the exceptional performance of the US economy. Three years after the global pandemic, one year after the invasion of Ukraine by Russia, which caused extraordinary inflation for the 21st century in advanced economies, global activity has slowed down but has not seriously weakened. The first half of the year was marked by a banking crisis in the United States and Switzerland, notably with the bankruptcies of Silicon Valley Bank and Crédit Suisse.

This less pronounced than expected slowdown illustrates several factors. Households and businesses generally benefited from exceptional aid during the pandemic, which made it possible to cope with this new inflationary shock without a significant deterioration in their financial health but at the cost of ever higher government debt. Then, new European public aid intended to limit the surge in energy prices in 2022, before easing in 2023, made it possible to limit the recessive effects of such a shock. Overall, the labour market has shown tremendous resilience. In the eurozone and the United States, the unemployment rate remains close to the lowest levels on record.

In 2023, the growth of the US economy reached 2.5%, which means that it was at a level 8% higher than that prevailing before the pandemic crisis. In the eurozone, the weakness of activity (0.5% in 2023) contrasted with the dynamism of the United States. However, the performance was mixed. Germany was a poor performer, ending the year in a still precarious position, with a decline of 0.3% over the year. The level of Germany’s GDP appears to be virtually unchanged compared to that prevailing before the crisis (whereas the gap reached 8% for the United States, around 3% for Italy and Spain and about 2% for France).

Controlling inflation was the leitmotif of 2023. While uncertainties about its decline were considerable, they were greatly dissipated at the dawn of 2024. The eurozone appeared vulnerable to the inflationary consequences of the pandemic, then the Russian invasion of Ukraine. To avoid a perpetuation of inflationary pressures, central banks significantly increased their key rates in 2023. In addition to the negative consequences on the distribution of loans and the evolution of the money supply, this determination has made it possible to keep the long-term inflation forecasts of economists and markets anchored below the 3% threshold. Better yet, at the end of 2023, 10-year forecasts were close to 2%. As a result, short-term rates tended to decrease at the end of the year, a sign of an expected normalisation of monetary policy in 2024.

The increase in long-term rates during the first 10 months of 2023 was the only downside to the resilience of US activity. This increase reflected the fear that inflation might resist, in a context of continued sustained growth and persistent tensions in the labour market. In response, and faced with a restrictive discourse from central bankers stating their ability to go further with their key rate increases (“higher for longer”), long-term bond yields soared at the beginning of the autumn (at 10 years, the highest since 2007 for the United States). At the end of the year, yields reversed within a few weeks when the decline in inflation proved to be faster than expected, as highlighted by many central bankers.

The equity markets rose more than expected in 2023. This momentum is mainly due to the good performance of American activity, which led the largest companies to announce profits in excess of expectations. Beyond this picture, however, two points are noteworthy. In March 2023, the failures of several US regional banks highlighted a lack of supervision and regulation of intermediate-sized banks in the United States. As a result, investors shunned US regional banking equities in 2023 (-26% over the year, versus +24% for the benchmark S&P 500). On another notable point, a rally took place at the end of 2023 when investors strengthened their expectations of a normalisation of monetary policies in 2024, with no significant impact on activity. From 27 October to the end of 2023, the S&P 500 rose by around 15% and the Stoxx Europe 600 by 11%. One downside, however, is that the concentration of securities within the equity indices is increasing, such as on the S&P 500: up by around 25% in 2023, 72% of the index’s securities underperformed in relation to the index, a first. The flagship US index of the 500 largest listed companies saw the “magnificent seven” (seven US equities in the technology sector, very popular with investors: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla), account for two thirds of the increase. These seven securities individually saw their capitalisation grow by around 50 to 240% in 2023.

In France, growth was 0.9% for the full year 2023. However, this result reflects two distinct phases. The growth of the economy was initially a surprise on the upside in the first half of the year, even recording the highest GDP growth among the major countries of the eurozone in the second quarter. Then, the results of the second half of the year were more disappointing, with activity stagnating during the last two quarters of the year. The main factors behind this slowdown were (i) a less buoyant international context than in 2022; (ii) the deterioration of French household confidence, particularly in the context of a correction in the real estate market; (iii) restrictive financing conditions, in line with the monetary policy of the European Central Bank (ECB).

Trend in French GDP in 2022 and 2023, quarterly and year-on-year

In 2023, French household confidence appeared to be well below its historical average. A sign of fragility, the number of over-indebtedness applications filed was up by 8% compared to 2022: 121,617 applications were filed during the year. However, the level of deposits in 2023 remained 15% lower than in 2019. This observation reflects the fact that the savings accumulated during the crisis still make it possible to absorb the inflationary shock. The savings rate in the third quarter of 2023 (17.4% of disposable income) was still slightly higher than its long-term average of 15%.

In 2023, business leaders also lost confidence in the direction of the French economy, according to INSEE surveys. In the end, corporate bankruptcies increased (55,492 according to the Banque de France, after 41,249 in 2022), but without going through the roof (57,000 on average over the period 2015-2019).

The regulatory environment in 2023 was marked by the political agreement on the European banking package, the standardised declaration of information on European financial conglomerates, the continuation of work to resolve bank failures, as well as projects related to the ecological transition and the crypto-asset markets.

The Member States of the European Union agreed on the transposition of the Basel Accords, and in particular on:

• the gradual implementation of the capital floor (output floor) until 2030 for capital requirements calculated using internal models, at 72.5% of the capital requirement under the standardised approach.
• This floor applies to each entity, with the possibility of an exemption at the hands of the Member States allowing it to be applied at the highest level of consolidation within their jurisdiction, an option that is expected to be activated by France;
• the new rules for calculating capital requirements for the various risks (credit, market, operational) including the improvement of the risk weighting of investments in the insurance sector not deducted from regulatory capital;
• the framework for assessing the competence and good repute of members of the management bodies and key function holders (fit and proper);
• changes related to ESG risk management.

The European banking package combining the European regulation on prudential requirements applicable to credit institutions (Capital Requirement Regulation - CRR and the Capital Requirement Directive - CRD) is expected to come into force in early 2025.

In accordance with the mandate entrusted to it by CRR2, the European Banking Authority published a report in October 2023 on the prudential treatment of environmental and social risks. According to this report, it considers that the application of penalising or favourable environmental factors is inappropriate to progress according to a risk-based approach. Targeted improvements to Pillar 1 tools are recommended to accelerate the integration of these risks into the prudential framework,

The European Central Bank has published its expectations regarding the disclosure, by financial conglomerates, of significant concentrations of risks and significant intragroup transactions, in application of the European technical standards published at the end of 2022. It reiterates that each financial conglomerate is notified individually of the reporting requirements applied to it.

The year 2023 also marked the end of the transition period during which the Single Resolution Board established the resolution framework of the Banking Union and set up the Single Resolution Fund reaching the required level of 1% of deposits covered for all participating Member States.

The High Council for Financial Stability introduced a 3% sector systemic risk buffer targeting banking exposures to large, highly indebted companies, for an initial period of two years. This new requirement, in force since 1 August 2023, replaces the previous Large Exposures measure, which expired on 30 June 2023.

With regard to the conditions for granting loans, the High Council for Financial Stability made technical adjustments concerning the maximum flexibility margin of 20%:

• the assessment of the quarterly change in the use of the flexibility margin by credit institutions should be assessed over three rolling quarters;
• the free share of the total flexibility margin increased from 20 to 30% without the share reserved for first-time workers, within the total flexibility margin, being affected by this measure.

3.1.2Outlook for 2024

Developed economies are expected to slow in 2024. The decline in inflation is ongoing, but is not yet completely certain. The ability of the monetary authorities to ease their policy from the beginning of 2024 appears limited. As a result, financing conditions will remain restrictive in the first half of the year and penalise investment by individuals and companies.

The good news comes from the very limited extent of the expected cycle trough. With growth estimated at 2.8% in 2024, activity is likely to be resilient compared to previous periods of slowdown. In 2009, following the financial crisis, the global economy contracted by 0.1%. Then in 2020, the pandemic led to a 2.8% drop in activity. From 2000 to 2019, the average pace of global growth was 3.8%. However, growth of less than 3% has only occurred three times since 2000 (2001-2002, 2009, 2020).

In total, average annual growth in the United States should reach 1% in 2024 (after 2.3% in 2023) while that of the eurozone (four main countries: Germany, France, Italy and Spain) is expected to be 0.6% (after 0.6%). China is expected to post growth of 4.3%, a historically low level against a backdrop of the real estate and confidence crisis.

In France, activity should grow little in 2024 (+0.6%), penalised by the financial deterioration of companies and the decline in investment. Despite the expected easing of the ECB’s monetary policy, rates in the French economy are expected to fall only very moderately over the next few quarters, torn between two antagonistic effects. On the one hand, French “risk-free” rates are expected to fall under the effect of a future adjustment of market expectations concerning the ECB’s landing rate level: expectations are for the ECB’s deposit rate to fall to 2.25% by January 2026, in line with the deterioration of the economy and the fall in inflation. On the other hand, this same deterioration in the economy would encourage a further increase in risk premiums, which would ultimately increase the costs of financing the economy, despite the slight drop in “risk-free” rates. Companies are suffering from high levels of financial and production expenses, as highlighted by the downward trend in cash levels at the end of 2023. The spectre of a scissor effect hovers over the French production system. After an already significant rebound in 2023 (+34% to 55,492), defaults are expected to accelerate again throughout the year until reaching a peak of 69,000 in early 2025. This forecast does not constitute an acute crisis scenario, but the situation will be very different across sectors: the risk is significant for companies that have not been able to pass on the increase in their production costs or that are highly exposed to restrictive financing conditions, in particular real estate and construction.

In 2024, the disinflation process should continue in France and the rest of the eurozone, accompanied by the weakening of domestic and international demand. The slowdown in French prices is, however, less rapid than in the rest of the eurozone, where “anti-energy shock” public aid has been less generous over the past two years. Finally, French inflation should gradually converge towards the ECB’s target and reach an average of 2.2% in 2024 (+2.1% at the end of the year).

The rebuilding of household purchasing power provides hope for a more dynamic second half of the year. It is true that inflation, which is moderating, should help restore confidence in households and the easing of financing conditions will increase their purchasing capacity. In the second half of the year, the drop in interest rates combined with a rebound in purchasing power should once again enable French consumption to grow.

In 2024, the correction in the real estate market should continue in terms of volumes, while the decline in prices remains moderate for existing real estate. At the same time, the momentum remains worrying in the new segment, with a historically low volume of housing starts. In terms of forecasting, although very moderate, the expected decrease in rates on home loans and the decrease in property prices could allow volumes to gradually stabilise, in a context of rising real wages. This scenario is broadly consistent with the latest surveys conducted among banks, which expect home loans to stabilise, even if levels were to remain low.

On the bond market, the monetary tightening process has come to an end for the US Federal Reserve and the European Central Bank. In the eurozone, the deposit rate peaked at 4% in September 2023, while in the United States the range of Fed funds rates has remained at [5.25% - 5.5%] since July 2023. In 2024, the decline in inflation following the slowdown in activity should allow for a gradual reduction in key rates. However, it will not be a question of adopting an accommodating monetary policy but rather of supporting the decline of inflation that would still remain above the 2% target in 2024, in the eurozone and the United States. At the end of 2024, the ECB’s deposit rate would thus reach 3.25% while the upper range for Fed funds would be 4%.

Bond yields will remain at relatively high levels in the United States, as in the eurozone. On the one hand, the weakness of growth, the adjustment of inflation and the reduction in key rates by the ECB are easing the pressure on long-term rates. On the other hand, the reduction in the ECB’s balance sheet will increase pressure, via the non-reinvestment of securities maturing under the APP, then the PEPP (from July the ECB will reduce this portfolio by €7.5 billion per month), in a context where bond issue programmes will remain high in the eurozone, or even reach record highs in several countries (France, Italy, etc.). In total, in 2024, for the eurozone as a whole, the amount of sovereign debt to be absorbed by the market should increase by 5 to 10% to represent around €650 billion. The so-called peripheral countries, such as Italy, are likely to be more affected by this imbalance between the supply and demand of public debt. However, the various safeguards put in place by the European authorities (European recovery plan, still flexible reinvestment of the PEPP and the ECB’s Transmission Protection Instrument) will make it possible to avoid a real fragmentation of the European markets.

In terms of supervision and resolution, institutions will have to meet the new requirements and projects initiated in 2023 by the European authorities, notably concerning the new framework for the recovery and resolution of credit institutions, sustainability as well as declarations and publications of financial and non-financial information.

The European Commission has published its proposal to adapt and strengthen the current framework for banking crisis management and deposit insurance (CMDI framework) by adding provisions for medium-sized and small banks, while continuing to preserve financial stability, improving the protection of taxpayers and depositors, as well as protecting the real economy from the effects of bank failures.

The publication of the legislative texts is expected in the first half of 2024.

The European Banking Authority in charge of implementing the European banking package relating to the prudential requirements applicable to credit institutions (Capital Requirement Regulation - CRR and Capital Requirement Directive - CRD) will publish, throughout 2024, technical clarifications such as regulatory and implementing technical standards, guidelines and reports.

In particular, its mandate for the prudential treatment of ESG risks was enhanced with an order for two new reports:

• a report on the availability of the data and the application of a standardised method for the identification and classification of exposures subject to ESG risks;
• a report on the effective risk of exposures subject to ESG factors, and an analysis of additional changes to the prudential framework.

It should also include work on the construction of climate transition plans for banks.

The Corporate Sustainability Reporting Directive (CSRD) adopted in December 2022, which aims to strengthen the rules on the publication of non-financial information, has been transposed into French law by an Order of 6 December 2023.

The new requirements will apply from 2025 to the 2024 financial year.

This directive is supplemented by sustainability standards (ESRS - European Sustainability Reporting Standards) adopted by the European Commission. In 2024, implementation guidelines are expected on specific topics such as the value chain or materiality assessment.

The Digital Operational Resilience Act (DORA), designed to ensure the cyber resilience of financial entities, will come into force in January 2025. During the year 2024, the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority will publish various technical standards specifying the requirements of this regulation.

The regulation on crypto-assets markets (MiCA - Markets in Crypto-Assets) adopted in 2023 will come into force from December 2024. It sets up a harmonised and specific framework for crypto-asset markets and establishes specific rules for related services and connected activities. Technical standards, developed by the European Securities and Markets Authority in collaboration with the European Banking Authority, are expected in 2024.

The regulatory environment for corporate taxation is marked by the entry into force, on 1 January 2024, of the Global anti-Base Erosion proposal (GloBE) rules in the 2024 Finance Law. The purpose of these regulations is to guarantee effective taxation of 15%, assessed by jurisdiction, for groups of companies with revenue of at least €750 million.

The Single Resolution Board, which is entering a new phase of work, wishes to focus on the operationalisation of resolution tools and the implementation of comprehensive resolution tests in the event of a crisis in order to ensure the effectiveness of resolution plans and strategies developed by banks.

In addition, it will verify, annually, the financial resources available to the Single Resolution Fund before deciding to raise new contributions.

The High Council for Financial Stability has raised the countercyclical capital buffer rate to 1% since 2 January 2024.

The European Central Bank is continuing its Integrated Reporting Framework (IREF) project, launched in 2020, which aims to improve and simplify reporting requirements; the aim is to avoid duplication, standardise concepts and, ultimately, reduce the reporting burden for banks.

The IReF regulation should be published in 2024, for adoption by the European Commission in 2025 and a first declaration in 2027.

The entry into force of the regulation establishing a European Single Access Point (ESAP) which gradually sets up, until 2030, a platform for collecting financial and non-financial information published by European companies, as well as the request for the publication of prudential information on the website of the European Banking Authority from 2025, will make it possible to access this information in an efficient and centralised manner.

3.1.3Post balance sheet events

Nil

3.2Business activity

3.2.1Customers

The customer portfolio was stable at 5.1 million customers. On a like-for-like basis(1), the customer increased by 4.4% in 2023, with more than 215,000 additional customers attracted mainly by the online bank (+165,000 customers), and retail banking (+38,000 customers).

Customer portfolio (in millions)

3.2.2Loans

Outstanding loans(2) grew by 6.9% to reach €87.5 billion.

Loan production reached €15.6 billion in 2023, down 23% after the all-time high in 2022 of €20.2 billion.

Loan production by loan type in 2023

Loans outstanding by loan type in 2023

Loan production (in € billions)

Loans outstanding (in € billions)

3.2.3Savings

Total outstanding savings reached €167.3 billion, up 7.9% compared to the end of 2022. This increase in outstandings was due to:

• bank deposits for €4.1 billion, with strong bank savings inflows offset by a decrease in current accounts in credit (-€4 billion);
• insurance and financial savings for €8.2 billion, with strong inflows combined with increases in asset valuations in line with changes in the financial markets.

Outstanding savings (in € billions)

Net savings inflows in 2023 reached €11.6 billion, a record level up by 43.5% compared to 2022.

The highlights are:

• net inflows in interest-bearing bank savings of €6.9 billion, up by €1.0 billion compared to 2022, which was a record year for bank savings;
• net inflows into insurance savings plans of €0.7 billion, down by €0.8 billion;
• net inflows in financial savings of €4.0 billion, up by €5.3 billion (outflows in 2022).

Net inflows of savings (in € billions)

3.2.4Shares

Outstanding shares were up 6.2% to €2.9 billion.

3.2.5Business to-business (BtoB) services

Assets under custody were down by 30.5% to €59.8 billion in 2023.

The group processed a volume of 10.1 million stock market orders, a decrease of 5.3% compared to 2022, following three very dynamic years in terms of order volumes processed.

The BtoB customer portfolio (managed by ProCapital Securities Services, Monext, Nextalk, Arkéa Banking Services) was up by 4.8% year-on-year, reaching 1,989 customers.

3.2.6Non-life insurance

Non-life insurance contracts are distributed through the group’s own networks and through networks outside Crédit Mutuel Arkéa group.

Premiums earned in the portfolio increased by 5.6% compared to 2022, reaching €502 million. At the end of 2023, 32% of these contributions were made by external networks.

New business premiums were stable compared to 2022, reaching €63 million. 47% of these contributions were made by external networks.

Earned premiums on the non-life insurance portfolio (in € millions)

Weight of external networks in earned premiums in the portfolio

3.3Net financial income

In 2023, the Crédit Mutuel Arkéa group generated net income attributable to equity holders of the parent of €417 million, down 37.2% compared to 2022 (an historical level)(3).

The operating ratio rose(4) by 9.0 points to 71.8%.

3.3.1Revenues(5)

Revenues were down 11.0%, or €265 million, compared to 2022 to €2,140 million.

The analysis of revenues is based on the sectoral breakdown presented in the financial statements.

3.3.1.1Banking sector

The banking sector comprises retail banking for individual customers (Crédit Mutuel’s local banks, Arkéa Direct Bank, including Fortuneo and Keytrade, Financo and CFCAL), corporate banking (Arkéa Banque Entreprises et Institutionnels, Arkéa Crédit Bail, Arkéa Capital Investissement et Partenaire) and subsidiaries involved in Business Process Outsourcing (BPO) (Monext, Nextalk, Arkéa Banking Services and ProCapital Securities Services).

Banking sector revenues declined by €239 million compared to 2022, to €1,593 million.

On a like-for-like basis(6), revenues decreased by €247 million to €1,586 million: This decrease is explained by the unfavourable impact of the change in the formula for calculating TLTRO interest decided at the end of 2022 by the European Central Bank and by a smaller contribution in 2023 than in 2022 from private equity activities;

• the impact of the TLTRO on 2023 revenues was a negative €70 million;
• in 2023, the Group recorded a decrease in the revaluation of private equity investments of €154 million.

3.3.1.2Insurance and asset management sector

The insurance and asset management sector includes life insurance (Suravenir), non-life insurance (Suravenir Assurances), brokerage (Novélia) and asset management companies (Federal Finance, Schelcher Prince Gestion, Arkéa Real Estate, Arkéa REIM, Arkéa Capital Gestion and Swen Capital Partners).

Revenues from the insurance and asset management sector were down by €25 million compared to 2022 at €547 million.

On a like-for-like basis(7), revenues were down by €24 million to €533 million, in particular due to the unfavourable impact of storms Ciaran and Domingos, which reduced 2023 revenues by €23 million.

3.3.2Operating expenses

Operating expenses amounted to €1,537 million, up by €26 million, or 1.7%.

On a like-for-like basis(8), operating expenses increased by €67 million to €1,520 million:

• employee benefits expenses increased by €18 million to €804 million, driven by salary reviews and growth in the group’s headcount;
• other expenses were up by €41 million to €565 million, due to the effect of price increases (inflation, energy costs) and the group’s major projects;
• depreciation, amortisation, impairment and provisions increased by €12 million to €125 million.

3.3.3Cost of risk

The cost of risk decreased by €42 million to €94 million:

• the cost of risk on performing loans was a declined by €16 million in 2023 compared to an allocation of €86 million in 2022, in particular due to the significant change in the methodology for estimating the parameters used in the calculation of expected losses (see Section 5.2.2.2 "Provisions for credit risk");
• the cost of risk on doubtful and disputed customer loans was up by €61 million to €110 million with an increase in provisions on previously declassified loans and new cases downgraded (see Section 5.4.3 "Provisioning and cost of risk").

The cost of risk represented 0.11% of outstandings on the balance sheet of customer commitments.

3.3.4Return on asset

The return on assets, corresponding to the net accounting income in relation to the total assets on a consolidated basis, stood at 0.22% in 2023.

3.3.5Regulatory capital and ratios

3.3.5.1Internal capital adequacy assessment process

Crédit Mutuel Arkéa group is subject to the prudential regulations applicable to credit institutions, insurance companies and financial conglomerates:

• the regulations applicable to credit institutions result from the transposition into French law of the Capital Requirement Directive 4 (CRD 4) and the Capital Requirement Regulation (CRR), these texts corresponding to the roll-out of the so-called Basel III proposals. The regulations are supplemented by the transposition into French law of the Banking Recovery and Resolution Directive (BRRD). 
• Following the implementation of Basel III, several texts published in 2019 and making up what is called the “banking package” have supplemented or amended the regulations in force. These new CRR 2, CRD 5 and BRRD 2 texts came into force gradually from 2019 to June 2021;
• since 2016, the regulations applicable to insurance companies have been derived from the transposition of the Solvency 2/Omnibus 2 directives into French law;
• the regulations applicable to financial conglomerates result from the transposition of the Financial Conglomerates Directive into French laws. The purpose of this regulation is to ensure that all of the conglomerate’s risks (aggregating banking and insurance activities) are covered by the group’s consolidated shareholders’ equity.

The solvency ratios for banks and financial conglomerates are calculated in accordance with the standards in force at the closing date by Crédit Mutuel Arkéa’s Accounting Department, based on the level of weighted risk calculated by the Risk Department.

At the end of 2022, the European Central Bank (ECB) notified Crédit Mutuel Arkéa of a Pillar 2 (P2R – Pillar 2 mandatory) requirement of 2.75% applicable for the year 2023 from 1 January. This requirement is to be constituted in the form of at least 56.25% of CET1 capital and 75% of Tier 1 capital.

Throughout 2023 Crédit Mutuel Arkéa met its minimum ratio requirements. Each quarter, the ratios are calculated on the basis of the accounts closing and then compared with the minimum requirements set by the supervisor for each ratio.

Insurance solvency ratios are calculated and monitored by the group’s insurance companies.

Crédit Mutuel Arkéa’s ALM Management Department monitors all these ratios and steers the consolidated solvency ratios of the banking business and the financial conglomerate.

On the basis of regulatory statements, assumptions about the development of the group’s business and appropriate capital requirement forecasts, the Balance Sheet Management Department makes projections of ratios over the coming years (minimum 3 years). These projections are presented regularly to Executive Management, notably at meetings of the Capital Management and ALM Committee, and are supplemented with crisis scenarios. The objective is to anticipate the group’s capital requirements and propose optimisation measures to ensure long-term compliance with internal and regulatory requirements.

3.3.5.2Solvency ratios

3.3.5.2.1Regulatory capital

Common Equity Tier 1 (CET 1) capital amounted to €8.4 billion and represented 84% of total regulatory capital. It increased by €0.9 billion in 2023, mainly due to the integration of the undistributed profit for the year, the net inflows of cooperative shares on new B shares carried out during the year and the positive effect of the application since 1 January 2023, of IFRS 17 “Insurance contracts” and IFRS 9 “Financial instruments” to insurance activities.

Tier 2 capital decreased by €0.09 billion in 2023 due to the gradual downgrading of subordinated debt as an equity instrument and in the absence of any issues during the year.

Regulatory capital reached €10.0 billion at the end of 2023.

3.3.5.2.2Risk-Weighted Assets

Risk-Weighted Assets (RWA) are calculated on the basis of on- and off-balance sheet exposures. They are calculated and broken down by type of risk and are used in the calculation of solvency ratios.

At the end of 2023, risk-weighted assets amounted to €49.7 billion, up by €5.2 billion. This change is mainly due to the increase in outstanding loans and the application from 1 January 2023 of IFRS 17 and IFRS 9 to insurance activities. 94% of risk-weighted assets were composed of credit risk.