Registration Document And Annual Financial Report 2009

2009

Registration Document

And Annual Financial Report

The original french document was filed with the AMF (French Securities Regulator)

on April 28, 2010 , in accordance with the 212-13 article of the General Regulation

of the AMF. It may be used to support a financial operation if accompanied by a

prospectus duly approuved by the AMF.

2 Crédit du Nord Group - Registration Document 2009

Freely translated from french.

3Crédit du Nord Group - Registration Document 2009

ACTIVITY 5

Key figures as at December 31, 2009 ...................................................................................... 6

2009 highlights ......................................................................................................................... 8

Group structure ...................................................................................................................... 10

CONSOLIDATED FINANCIAL STATEMENTS 11

Management report ................................................................................................................ 12

Chairman’s Report on Internal Control and Risk Management ................................................ 32

Report of the Statutory Auditors on the Chairman’s Report on Internal Control

and Risk Management ........................................................................................................... 44

Consolidated balance sheet ................................................................................................... 46

Consolidated income statement ............................................................................................. 48

Change in shareholders’ equity .............................................................................................. 50

Statement of cash flows ......................................................................................................... 53

Notes to the consolidated financial statements ....................................................................... 54

Statutory Auditor’s Report on the consolidated financial statements ..................................... 136

INDIVIDUAL FINANCIAL STATEMENTS 138

2009 Management Report ................................................................................................... 139

Five-year financial summary .................................................................................................. 141

Individual Balance sheet at December 31 ............................................................................. 142

Income statement ............................................................................................................... 144

Notes to the individual financial statements .......................................................................... 145

Information on the Corporate Officers ................................................................................... 184

Statutory Auditors’ Report on the Annual Financial Statements ............................................ 196

Statutory Auditors’ Special Report on Regulated Agreements

and Commitments with Third Parties .................................................................................... 198

General Meeting of Shareholders (Draft resolutions) ............................................................. 200

ADDITIONAL INFORMATION 203

General description of Crédit du Nord .................................................................................. 204

Group activity ....................................................................................................................... 207

Responsibility for the registered document and audit ........................................................... 208

Concordance tables ............................................................................................................. 209

1

2

3

4

Contents


� Corporate Governance

as December 31, 2009

Z Board of Directors Z Date of 1st appointment Z Term of mandate *

Chairman of the Board of Directors

Alain PY October 1, 2002 2012

Directors

Séverin CABANNES February 21, 2007 2012

Pascal COULON July 23, 2009 2012

Patrick DAHER September 15, 2005 2013

Jean-Pierre DHERMANT ** November 16, 2006 2012

Bruno FLICHY April 28, 1997 2011

Angélina HOLVOET ** December 19, 2009 2012

Jean-François SAMMARCELLI November 3, 2009 2013

Patrick SUET May 3, 2001 2011

Vincent TAUPIN November 3, 2009 2011

* General Meeting of Shareholders convened to approve the financial statements for the fiscal year ended.

** Employee representative

The Board of Directors met four times during the course of 2009 in order to examine the budget, yearly and half-yearly accounts

and discuss strategic decisions concerning commercial, organisational and investment policies.

The Compensation Committee, consisting of two Directors – Didier ALIX and Patrick SUET, met to submit a proposal to the Board

of Directors concerning fixed and performance-based compensation, including benefits, for corporate officers.

Z Executive Committee

Alain PY, Chairman and Chief Executive Officer,

Marc BATAVE, Executive Vice Chairman,

Alain CLOT, Executive Vice Chairman,

Jean-Pierre BON, Deputy Chief Executive Officer (Finance Division),

Pierre BONCOURT, Head of Human Resources,

Jean DUMONT, Head of the Central Risk Division,

Thierry LUCAS, Head of Information Systems, Projects and Banking Operations,

Gilles RENAUDIN, Head of Legal Affairs and Controls,

Jérôme FOURRE, Head of Communications (attends Executive Committee meetings)


Key figures as at December 31, 2009 ...................6

2009 highlights ......................................................8

Group structure ................................................... 10

Activity


1 I Activity IKey fi gures as at December 31, 2009

� Key figures as at December 31, 2009Group: consolidated figures

Z Balance sheet

(in EUR millions)

31/12/2009

IAS/IFRS

31/12/2008

IAS/IFRS

% change

2009/2008

IAS/IFRS

Customer deposits 18,349.8 19,496.9 -5.9

Customer loans 25,496.7 25,761.4 -1.0

Shareholders’ equity (1) 2,164.3 1,912.8 +13.1

Doubtful loans (gross) 1,653.4 1,364.3 +21.2

Depreciation on individually impaired loans -801.1 -656.6 +22.0

TOTAL BALANCE SHEET 38,506.3 40,740.9 -5.5

ASSETS UNDER MANAGEMENT (2) 25,123.3 23,470.9 +7.0

(1) Includes income in progress

(2) Excluding custody for third parties and restated for the mutual funds included in life insurance products

Z Income

(in EUR millions)

31/12/2009

IAS/IFRS

31/12/2008

IAS/IFRS

% change

2009/2008

IAS/IFRS

Net Banking Income 1,579.8 1,543.9 +2.3

Gross Operating Income 534.0 512.4 +4.2

Operating income before corporation tax 460.0 382.5 +20.3

Consolidated net income 347.9 252.7 +37.7


I Activity IKey fi gures as at December 31, 2009

Z Ratios

(as %) 31/12/2009 31/12/2008

Cost of risk / outstanding loans 0,82 0,51

Shareholders’ equity / Total balance sheet 5,62 4,70

Consolidated solvency ratio (1) 8,90 % 8,32 %

Tier 1 capital (2) / weighted assets (1) 8,50 % 7,23 %

(1) After application of additional floor capital requirements, i.e. with a floor of 80% at 31/12/09 and 90% at 31/12/08.

(2) Tier One

(1) and (2) include net income, net of forecasted dividend payout.

Z Ratings31/12/2009 31/12/2008

Standard and Poor’s ST A - 1 A - 1 +

LT A + AA -

Fitch ST F1 + F1

LT A + A +

Intrinsic (*) BC BC

(*) The intrinsic rating is Crédit du Nord Group’s individual rating as determined by the rating agency, i.e. separate from Société Générale Group.

Z Contribution of Crédit du Nord (parent company)

(in EUR millions)

31/12/2009

IAS/IFRS

31/12/2008

IAS/IFRS

% change

2009/2008

IAS/IFRS

Net Banking Income 1 006,1 1 016,4 - 1,0

Gross Operating Income 335,4 354,2 - 5,3

Net income 299,9 224,7 + 33,5


1 I Activity I2009 highlights

� 2009 highlights

Z Network structure

In 2009, the banks of Crédit du Nord Group expanded their network with the opening of 14 branches to the public:

Crédit du Nord

Amiens Alexandre Dumas

Cesson-Sévigné

Colombes

Montigny le Bretonneux

Paris Malesherbes

Paris Pyrénées

Paris Rennes

Banque Courtois

Montauban Cladel

Banque Nuger

Aurillac

Banque Kolb

Sens

Banque Laydernier

Saint Jean de Maurienne

Banque Tarneaud

Angoulême Saint Cybard

Challans

Vannes

Z Individual customers

January

Launch of the Livret A savings passbook

All banks have been able to distribute the Livret A savings

passbook since January 1, 2009. Our advisers can open

Livret A passbooks by creating passbooks for customers

not yet holding them or via transfer for customers holding

Livret A or Bleu passbooks with historic distributors.

Launch of online account statement option

Starting June 23, 2009, Individual Crédit du Nord Group

customers subscribing to the Internet service may ask to

receive their account statements online.

October

Launch of Antarius Duo

An increasing number of French banking customers are

taking advantage of life insurance products to build up

savings. To meet this expectation, the banks of Crédit du

Nord Group launched Antarius Duo, an easy and userfriendly

life insurance policy. Antarius Duo is a life insurance policy

offering subscribers various management approaches

corresponding to different risk profiles. Antarius Duo offers

subscribers the chance to save at their own pace, without

having to worry about financial management concerns and

while enjoying life insurance tax benefits.

Z Professionals and Associations

January

Launch of the Livret A savings passbook

for Associations

On January 1, 2009, the Livret A was added to our range

of products for Associations.

The Livret A offers our customers a number of benefits:

� returns exempt of taxes and social security contributions;

� a high limit;

� savings available at all times, with customers able to enter

funds through one-off and/or regular payments.

May

Launch of Webaffaires Immo

The banks of Crédit du Nord Group are partners with real

estate professionals and have acquired in-depth knowledge

of their specific requirements and environment.

They now offer property management unions and

administrators an innovative online payment solution known

as Webaffaires Immo, allowing tenants and co-owners to

pay their rent or expenses online.


I Activity I2009 highlights

Z Business and Institutional customer market

February

Launch of Canvassing Insurance Financing

Within the framework of our partnership with Coface, and to

aid our customers in their penetration of new export markets,

we offer financing for the canvassing expenses incurred by

companies via the Canvassing Insurance policy signed with

Coface. Through this insurance, companies with annual

revenue of less than EUR 150 million are able to canvas foreign

markets in complete security. This insurance now comes with

the option of bank financing for canvassing expenses.

Z Financial operations

Over the course of 2009, Crédit du Nord helped its customers

prepare and carry out many types of financial transactions:

� IPOs;

� takeovers, public buyout offers, squeeze-out procedures;

� disposal/recovery of a business;

� LMBOs;

� debt relief and syndication;

� acquisitions;

� sales of small companies to larger companies operating

in the same sector.

These transactions were completed by Crédit du Nord’s

Finance Division, some of which in cooperation with Étoile

ID, Crédit du Nord Group’s venture capital company, and

brokerage firm Gilbert Dupont.

Z Awards and distinctions

February

2009 Qualiweb/Strategies Award: Crédit du Nord

Group acknowledged once again

At the 2009 Qualiweb/Strategies Awards for online customer

relations, Crédit du Nord Group ranked No. 2 in the “Banking-

Financing” category. This award recognises the quality of

response provided by the Internet Banking webmasters

team to e-mails submitted by Group customers through our

websites.

March

Competition surveys

For the fifth year in a row, Crédit du Nord Group has

outperformed the top French banks (1) in terms of customer

satisfaction in the Individual and Professional Customer

markets and is No. 2 in the Business Customer market.

May

2009 Awards for best SICAVs and funds

At Le Revenu’s 2009 Awards for best SICAVs and funds,

held on May 28, 2009, the magazine awarded Crédit du

Nord Group the Silver Trophy for the best range of three-year

sector-oriented equity funds and the Bronze Trophy for the

best three-year EUR-denominated bond range (in the branch

banking category).

(1) Competition surveys performed by CSA: from March 2 to April

4, 2009 based on a sample of 4,527 Individual customers of the

market’s top 11 banks; from March 2 to April 9, 2009 based on a

sample of 3,363 Professional customers of the market’s top 10 banks;

from March 2 to April 2, 2009 based on a sample of 2,700 Business

customers of the market’s top 10 banks.


1 I Activity IGroup structure

� Group structure

The diagram below presents the links between the main Crédit du Nord Group entities.

Direct shareholdings are listed as well as the overall percentage of capital directly or indirectly held by the Group.

The consolidation scope is presented in its entirety in Note 2.

A presentation of the businesses of the main Group entities is provided in Note 45

NORD ASSURANCESCOURTAGE

ETOILE ID STAR LEASE NORBAILSOFERGIE

KOLB INVESTISSEMENT

S.F.A.G. SC FORT

DE NOYELLESCREDINORD

CIDIZE

PARTIRA

CREDITDU NORD

99,80%99.80%

99.90%

2.36%

7.14 %

7.08%

69.42%

100%ETOILE

GESTIONHOLDING

BANQUE KOLB

BANQUE COURTOIS

BANQUE LAYDERNIER

BANQUE RHONE-ALPES

BANQUE NUGER

BANQUE TARNEAUD

SDB

GILBERT DUPONT

NORFINANCE

GD ET ASSOCIES

NORBAIL

IMMOBILIER

ANTARIUS BANQUE

POUYANNE

0.20% 0.20%

0.10%

21.43%

78.44% 96.82% 3.18%

1.65% 1.51%

98.34% 63.19%

99.96%

0.04%

NORIMMO

0.07 %

0.46%

2.83%

7.73%

2.91%

99.87% 100% 100% 99.99% 64.70% 80%

100% 100% 100% 100 % 100%

100%

100% 100% 100% 50% 35%

100% 100% 100% 100%


Management report ............................................. 12

Chairman’s Report on Internal Control and Risk Management ........................................ 32

Consolidated balance sheet ............................... 46

Consolidated income statement ......................... 48

Change in shareholders’ equity .......................... 50

Statement of cash flows ..................................... 53

Notes to the consolidated financial statements ............................................ 54

Statutory Auditor’s Report on the consolidated financial statements .....................136

Consolidated fi nancial

statements


2 I Consolidated fi nancial statements IManagement report

� Management reportFISCAL YEAR 2009

Z A global economic crisis of unprecedented magnitude

At the end of 2008, the global economy was hit with a crisis

of a magnitude and gravity not seen since the end of World

War II. The failure of US investment bank Lehman Brothers

brought growth to a sudden halt across almost all regions

of the world, with economic activity becoming so weak that

most countries (with the exception of China and a few other

emerging countries) saw their GDP slide in 2009. After years

of nearly 100% employment, unemployment is on the rise

in the majority of the world’s industrialized countries. The

unemployment rate in the US and Europe is expected to

come out at around 10% for end -009.

The monetary and government authorities of the major

industrialised countries did not sit on their hands when

confronted with the severity of the crisis. Under the aegis

of the G20, the economic majors set up aggressive fiscal

stimulus plans in early 2009, with the support of the central

banks, which worked in coordination to implement particularly

accommodating monetary policies. The benchmark rates of

the largest central banks thus hit extremely low levels, with

the FED and ECB in particular launching unconventional

measures aimed at shoring up the bond market. These

economic stimulus measures sparked a mid-2009 recovery

in industrialized countries. The return to growth in the second

half was nonetheless a very fragile one, as the impact of the

crisis on private-sector demand and investment could still

be intensely felt.

Commodities and energy prices, which had peaked and

caused an inflationary spiral until mid-2008, subsequently

plummeted in early 2009 under the weight of falling demand

and the shift in investment towards other asset classes. This

trend reversed over the course of the year as the economic

situation gradually improved and the substantial liquidity on

the markets was reinvested in these assets.

Like all European countries, France fell victim to the recession

and saw its GDP drop by about 2% in 2009, owing to the

collapse of industrial output and sharp contraction in demand.

At 63,000, the number of business failures in 2009 was the

highest since 1993. The unemployment rate is forecasted at

around 9% for end 2009.

The recessionary environment caused the stock markets

to plunge at the start of the year. They were able to start

climbing again with economic activity gradually returning

to normal as from the second half. In France, the CAC 40

closed at 3,936 points on December 31, 2009, i.e. up 22%

over the year as a whole.

With such a harsh crisis gripping its key asset

management and SME markets, Crédit du Nord

Group consolidated its gross operating income

but was nonetheless hurt by the higher cost of

risk.

Results at December 31, 2009 were drawn up under IFRS.

They are compared to 2008 figures, which were also drawn

up under IFRS.

Crédit du Nord Group posted consolidated NBI growth

of 2.3% and GOI growth of 4.2% at December 31, 2009.

Operating income shed 14.2% due to the increase of over

50% in cost of risk compared to 2008. Operating income

totalled EUR 460.0 million, including EUR 122.6 million in

capital gains on the disposal of asset management subsidiary

Etoile Gestion to AMUNDI, and EUR 7.1 million recorded

on the disposal of the Group’s stake in Dexia-C.L.F Banque

when Société Générale bought the 20% of Crédit du Nord’s

capital held by Dexia. Consolidated net income amounted

to EUR 347.9 million. Excluding capital gains on disposals,

consolidated net income fell 11.9% on 2008.

ROE came out at 19.8% for a Tier One ratio of 8.5%.

2008 results were impacted substantially by the results

generated by the Group’s asset management company,

Etoile Gestion, which was forced to sell off assets held by

some of its funds, leading to a loss of EUR 72.2 million.

Furthermore, as a member of the economic interest group,

“Carte Bleue”, Crédit du Nord benefited from the 2008 IPO

of Visa Inc. in the United States, in the form of shares and

dividends with a positive impact of EUR 12.0 million on NBI.

Finally, the Group had to recognise its financial liabilities at

fair value, in accordance with IFRS, generating a positive

impact of EUR 28.4 million on NBI at December 31, 2008.

Conversely, the tightening of credit spreads and slight dip in

assets under management in 2009 resulted in an expense of

EUR 16.3 million, booked at December 31, 2009.

Adjusted for these items, in addition to changes in PEL and

CEL provisions, Group NBI rose by 1.3% at December 31,

2009.


I Consolidated fi nancial statements IManagement report

In 2009’s trying economic environment, the Group was

able to limit the increase in its operating expenses to 1.4%.

Consequently, GOI adjusted for non-recurring items posted

a slightly positive improvement of 1.1% over 2008.

The margin on deposits declined by 5.7% in 2009, mainly

due to easing of interest rates and the fact that the rate of

return on regulated savings accounts was maintained at

a high level at the start of the fiscal year. This price effect

was only partially offset by the strong performance in sight

deposits across all markets.

The margin on loans improved, as the process of restoring

margin levels, begun in 2008, carried over into 2009, with

the rise in the cost of access to cash integrated into our

pricing scales. Nevertheless, the economic recession

resulted in the collapse of business investment and corporate

financing requirements. Faced with falling revenue, the

inventory reduction movement, reduced supplier payment

deadlines and government measures aimed at speeding

up VAT repayment, companies significantly reduced their

drawdowns on short-term credit lines and instead called

upon their receivables.

Strong consumer uncertainties during the crisis, coupled

with the property market downturn, led to a decline in new

housing loans in 2009 compared to 2008, which was,

it should be pointed out, a historically high benchmark.

Outstanding housing loans continued to rise, however, driven

by substantial new lending in 2008 and at the end of 2009,

with an improving margin level. Uses of revolving credit lines

made satisfactory progress, although they tended to slow

towards the end of the fiscal year. Conversely, the economic

crisis and its negative impact on consumption generated a

sharp downturn in new personal loans over the majority of

the year. There was nevertheless a turnaround towards the

end of the year, linked to the rise in car sales in France linked

to the scrap bonus programme.

On the whole, the margin on loans rose by 13.2% in 2009,

thanks to the rebuilding of margin rates.

Income from service fees recorded respectable growth of

3.2%, as a result of the expansion of the customer base, the

contributions of new branches, and the efforts to improve

the range of banking and insurance products and services.

These positive factors were partially offset by the negative

impact of the decline in flows from our SME and professional

customers.

In 2009’s persistently uncertain financial and stock market

environment, the Group’s financial fees dropped by 10.9%,

excluding losses on the disposal of Etoile Gestion assets

in 2008.

In 2009, only life insurance fees improved, driven by growth

of net inflows and assets under management.

Asset management company Etoile Gestion returned to the

growth track in 2009, after incurring losses on disposals of

assets in 2008. Adjusted for this exceptional effect, Etoile

Gestion’s NBI was down 19.4%, owing to the impact that

the troubles plaguing the market and the decline in equity

products had on its management fees. Bear in mind that

Etoile Gestion was removed from the consolidation scope

on December 31, 2009, when Société Générale Group

contributed its asset management business to AMUNDI.

Against the backdrop of the economic and financial crisis,

and given the lack of transactions on the primary market

(completely closed since the crisis started), the NBI

generated by brokerage firm Gilbert Dupont, specialising in

small and mid cap stocks, nevertheless picked up by 2.9%

at December 31, 2009.

Crédit du Nord expands the coverage

of its network with new branch openings

Without setting a deliberate goal as it did for the 2004 2008

period, Crédit du Nord Group nonetheless opened 14

branches to the public in 2009.

The development of these new branches was perfectly in

line with expectations, with growth in NBI a little higher than

expected, thanks to a dynamic approach to gaining new

market share in the individual customers market and a slightly

higher-than-expected share of professional customers in

the Bank’s customer base. Moreover, the branch openings

enabled a number of individual customers in large cities, and

particularly in the Paris and greater Paris area, to transfer

their accounts to branches closer to their place of residence,

thereby facilitating their banking relations.

In five years, over 140 new branches have been opened in

high-potential areas spread out across mainland France.

These new branches are making significant contributions

to Crédit du Nord Group’s commercial and financial

performances, and their development represents a real

growth driver.

Crédit du Nord presses ahead with major

technical and organisational projects

Crédit du Nord is wrapping up technical and infrastructure

projects launched a number of years ago, while laying the

foundation for new renovation projects to be carried out with

Société Générale’s retail networks.



The workstation in branches boasts new functionalities,

including new working situations and new products and

services. This major Group project is coming to full maturity

with its individual customers, with the integration of all Front

and Middle Office working situations in the workstation. 2010

will see this programme finalised with the extension of the

workstation to professional and business customers.

The regulatory project concerning the transition to the

new Basel II prudential standards, which called for the

renovation of the information system and the overhauling

of the risk management and steering systems, entered into

the operational phase. The valuation of weighted assets has

been used to calculate capital requirements under Basel II

since 2008. Crédit du Nord Group received authorization

from the banking authorities to use advanced credit risk

calculation methods on nearly all of its outstanding loans.

From an organisational standpoint, the Middle Office

streamlining project launched by Crédit du Nord three years

ago is progressing according to plan. This project, which will

be completed in early 2010, takes account of changes in

customer behaviour with the development of telephone and

internet banking. New functionalities have been added to

the workstation, particularly in the area of loan management

processes, which are now automated.

Furthermore, the flow system renovation project is aimed at

taking the obligation to adopt payment systems under SEPA

and turning it into an opportunity to consolidate the bank’s

flow strategy.

Efforts to modernise and unify the functional components of

the Multi-channel system were continued in 2009, resulting

more specifically in the delivery of the new Internet portal.

In sales, a renovated steering application based on a single

data model was gradually deployed throughout the network

in 2009. This application should help the network improve

its sales dynamic and improve the number of products and

services to which customers subscribe.

Crédit du Nord also launched several new projects this year,

including the overhaul of portfolio management processes

and applications in order to optimise the monitoring and

prevention of breaches, and the renovation of marketing tools

for the launch of national and regional campaigns.

Finally, the Group also initiated the modernisation and

extension of the Internet offering to professional and business

customers.

The methodical and automated implementation of the

information system’s renovation provides Crédit du Nord with

a high-quality system.

A joint project with Société Générale to establish a single

system for managing SG Group’s retail banks could,

consequently, draw on those of the most high¬performance

IT assets developed by Crédit du Nord.



Z Commercial activity

The present analysis of Crédit du Nord Group’s commercial

activity extends across the entire scope of the Group’s banks,

i.e. Crédit du Nord and its six subsidiary banks: Courtois,

Rhône-Alpes, Tarneaud, Laydernier, Nuger and Kolb.

Indicators shown relate to euro-denominated businesses,

which account for virtually all of the Group’s activities.

Outstanding loans and growth in customer bases are based

upon period-end figures (i.e. end-December).

Stepped-up development of the customer base

and further efforts to improve customer loyalty

during the economic crisis

Growth in the Individual customer base remained solid at

1.9% year-on-year, in a relatively unsupportive environment

for banking mobility. At December 31, 2009, the individual

customer base came out at 1.4 million, representing an

increase of 100,000 customers over three years.

The expanding customer base drew on the Group’s efforts

to win new customers, notably through recommendations,

prevention of departures and contributions from new

branches.

INDIVIDUAL CUSTOMER BASE

Number of customers (in thousands)

1,318 1,356

+2.8%

1,391 1,418

2006 2007 2008 2009

+2.6%+1.9%

This growth went hand-in-hand with the sharp pick-up in the

rate of product sales to customers. The number of customers

with six or more products remained at a high level (44.3%).

New products and services were launched in 2009. Over

the course of the year, more than 175,000 Livret A savings

passbooks were opened by our customers or their children,

for total savings deposits of EUR 670 million at December 31.

New services included the “Accidents de la Vie (Everyday

Accidents) policy, an offering developed with insurer

Sogessur, which provides customers with financial coverage

for accidents occurring in everyday life. This life insurance

policy complements, and completes, the Group’s range

of personal insurance policies. Its launch proved to be a

commercial success, with over 20,000 policies sold over the

year.

In the life insurance field, the overhaul of the commercial

offering with the year-end launch of the new Antarius Duo

policy was promising, with 10,700 policies sold in just three

months.

In addition, the Antarius Protection Famille (family protection)

policy, which was very well received after its launch in 2008,

enjoyed further success in 2009, with 20,500 policies sold

by the end of the year (up 47% on 2008).

Lastly, the Protection Juridique (legal protection) policy

enjoyed continued success as well: 3 years after its launch,

nearly 30,000 policies have been sold. Year-on-year, this

represented an improvement of 12.1% at December 31,

2009.

Access to the Bank via remote channels continued to rise

at a very fast pace, with almost 28 million visitsns to the

individual customers website recorded this year. The number

of active contracts climbed by 19.8%.

Rates of growth are calculated on the basis of precise figures and not on the basis of the rounded figures presented in the charts. This remark applies to all

of the charts featured in this document



Expanding the Professional customer base remained

a priority this year, though the crisis called for adopting a

more selective approach. The customer base was relatively

stable, with a 1.0% increase in the number of sight accounts

year-on-year, thanks in large part to contributions from new

branches in spite of the measures taken to prevent risks and

the rise in non-performing loans. This result testifies to the

quality of Crédit du Nord Group’s close-knit network, with

dedicated account managers to deal with both the private

and commercial aspects of banking relations, counter

services in all Group branches and a tailored offering.

Speaking directly to the confidence of our customers,

the number of automated service contracts for retailers

posted growth of 1.3%, while the number of subscribers

to the Convention Alliance package rose by 5.0% on 2008

(with 59.1% of customers subscribing). Furthermore,

the percentage of customers having established both a

commercial and a private relationship with the Bank rose

by 1.5 points to around 50%. In terms of life insurance,

the number of subscriptions to the Étoile Sécurité policy,

designed as an additional savings vehicle providing coverage

in the event of accidental death, climbed by 6.5% on 2008;

similarly, in the individual customers market, the Protection

Juridique policy enjoyed further success, with nearly 5,500

policies sold by end-December 2009. Year-on-year, this

represented an improvement of 11.1%.

The number of Plans d’Epargne Interentreprises (inter-

company savings plans) created for small businesses,

individual entrepreneurs and independent professionals

posted yet another significant increase of 13.4% year-on-

year.

PROFESSIONAL CUSTOMER SIGHT

ACCOUNTS (at December 31)

Number of sight accounts (in thousands)

157.7 163.0

+4.2 %

1 391 164.6

2007 2008 2009

+3.4 % +1.0 %

Visits to the Professional Customers website rose

substantially, with over 10 million visits recorded in 2009 (i.e.

up 13.9% on 2008).

The Business customer base expanded very slightly by

0.6% on 2008, hurt by the rise in certain customers’ non-

performing loans and the slowdown in market share gains

during the crisis, though with an increase in penetration of

the highest-revenue companies.

Nearly three out of four companies now hold an active

Internet contract, i.e. up 6 points year-on-year. The number

of visits to the Business customers website stood at almost

4 million in 2009, i.e. a gain of 9.2% on 2008.

A competition survey (1) of customer satisfaction carried out in

2009 by CSA on a representative panel of customers across

all its main markets placed Crédit du Nord Group first out

of the main French banks in the individual and professional

customer markets and second on the business customer

market, on most of the issues cited: overall customer

satisfaction, image, trust, advisers. The results of the survey

reflected the excellent quality of our customer relations,

which are the foundation of our growth model.

BUSINESS CUSTOMER BASE

Number of customers (in thousands)

27.6 28.7

+4.1%

29.9 29.7

2006 2007 2008 2009

+4.2%

-0.6%

(1) Source: CSA survey institute, from March 2, 2009 to April 9, 2009,

competition survey (telephone survey)



Savings deposits on the rise

Driven by positive developments on the financial markets,

savings deposits improved in 2009 as the economic crisis

continued.

Having collapsed in late 2008 under the weight of the

financial crisis, the stock markets fell even further at the start

of 2009. With economic activity gradually returning to normal

starting in the second quarter, the stock markets took off

again, with the CAC 40 recording a 22.3% increase over the

year as a whole. In light of this valuation effect and net new

inflows, savings deposits (on and off-balance sheet) limited

their decline to 1.3% on average year-on-year.

Sight deposits posted considerable growth across all markets,

i.e. individual customers, and particularly professional and

business customers, as money market investments became

less attractive due to the decline in short rates. Furthermore,

the 275-bp drop in the rate of return on regulated savings

accounts, which took place on three separate occasions

(February 1, May 1 and August 1, 2009), drove individual

customers to increase the cash levels in their sight accounts

over the entire year.

ON-BALANCE SHEET SAVINGS DEPOSITS

(annual averages)

(in EUR billions)

8.11

5.60

3.05

8.64

5.50

4.06

8.91

5.44

4.71

2006 2007 2008 2009

16.75 18.19 19.06 18.95

DAV

+6.5%

-1.8%

+33.1%

+3.1%

-1.0%

+16.1%

9.29

6.33

3.33

+4.2%

+16.2%

-29.2%

+8.6%+4.8%

-0.6%

CERS* Other deposits

After delivering robust growth in 2008, term deposit accounts

saw their volumes plummet by 67.6% year-on-year, owing to

the steep drop in short rates. This capital was shifted towards

EUR-denominated life insurance policies or reinvested in

short-term bank savings products.

Consequently, net inflows in Livret A savings passbooks

(sales of which began at the start of the year) made swift

gains, reaching EUR 670 million by the end of 2009.

On the whole, liquid bank savings were stable in 2009, with

losses limited to just 1.2% on 2008.

The life insurance business expanded significantly in 2009,

outperforming the market on the back of a strong showing

from Private Banking. Net inflows came out at a solid +17.0%

as customers turned away from term deposit accounts

and risk aversion swept over the financial markets. The

percentage of unit-linked policies dropped steeply compared

to EUR-denominated policies, reflecting the withdrawal of

customers towards lower-risk investment vehicles. In light

of the positive valuation effect on unit-linked policies at

December 31, 2009, life insurance outstandings nonetheless

rose by an average of 6.3% year-on-year.

The taxation of home savings plans aged 12 years or more

(in force since January 1, 2006) again led to a net outflow

in outstandings over 2009. On a positive note, the rate of

withdrawals slowed significantly and a positive net inflow

trend was even observed in the second half of the year, as

the rate of return on this product became competitive again

versus the rate of return on certain other savings products.

Despite the rally on the financial markets, assets under

management in medium- and long-term mutual funds

were stable, showing a very small improvement of 1.1% at

December 31, 2009. The number of market orders slowed,

ending up stable for the year, thus reflecting the wait-and-

see attitude and risk aversion on the part of customers.

Net inflows of medium- and long-term mutual funds were

once again negative in 2009, under the influence of a natural

inclination towards redemptions, though the trend started to

improve towards the end of the year.

* CERS: Comptes d’Epargne à Régime Spécial – special regime savings

accounts (passbook accounts, sustainable development savings

accounts, etc.) or similar plans (e.g. home savings plans)



OFF-BALANCE SHEET SAVINGS DEPOSITS

(annual averages)

(in EUR billions)

5.54

7.60

8.84

4.86

5.77

8.03

9.73

4.97

4.25

7.89

9.82

3.40

3.85

7.90

10.43

2.71

2006 2007 2008 2009

26.85 28.51 25.35 24.89

Other custody

+10.1%

+5.6%

+2.3%

+0.9%

+4.1% -26.4%

-1.8%

-31.6%

+6.2%-11.1%

-1.8%

Life insurance ST mutual funds Medium-to-long-term

mutual funds

+6.3%

+0.1%

-20.4%

-9.3%

Assets under management in short-term mutual funds

climbed by 0.1% on average year-on-year. Money market

mutual funds reserved for individual and professional

customers shed 0.3% due to the particularly low level of short

rates, with customers defecting to other savings products.

With money market investments becoming less attractive

for companies owing to the drop in short rates, business

customer subscriptions also dropped off. Even so, assets

under management in short-term mutual funds dedicated

to business and institutional customers made a slight

improvement of 0.3%. What’s more, negotiable medium-

term notes sold by Crédit du Nord met with success, allowing

the bank to meet its medium-term liquidity needs.

Direct ownership of securities rose by 23.3% in value terms at

December 31, 2009, boosted by a positive valuation effect.

Uncertainties born of the economic crisis

cause new loans to individual customers to

slide

In 2008, growth in new housing loans was driven by the solid

positioning of our pricing schedules coupled with persistently

strong demand for loans, despite the gradual rebuilding of

margins and the integration of the higher cost of access to

cash.

The very strong uncertainties born of the economic crisis have

since driven the property market downward, thus leading to

a drop in demand and in new housing loans in 2009, despite

a rebound towards the end of the year. Total disbursements

of housing loans were limited to EUR 2.2 billion at December

31, 2009, i.e. down 26.1% on 2008. It should be noted,

however, that 2008 made for a high comparison base (up

22.8% on 2007). The percentage of customers onboarded

via housing loans was maintained at around 10%, testifying

to our ability to win over new customers. In addition, the

rebuilding of margins which began in late 2008 continued

throughout 2009 even though competition intensified.

In this challenging environment, Crédit du Nord continued to

implement a cautious and selective risk policy, setting rules for

the required level of customer contributions and reasonable

debt ratios, and by offering only fixed- or adjustable-rate

loans limited to terms of under 25 years.

NEW HOUSING LOANS

(in EUR millions)

2,530

-26.1%

2,383 2,927 2,164

2006 2007 2008 2009

-5.8% +22.8%



NEW PERSONAL LOANS

(in EUR millions)

+4.3%-8.5% -8.9%

750 782 715 651

2006 2007 2008 2009

The economic crisis and its negative impact on consumption

generated a downturn in new personal loans over the majority

of the year. There was nevertheless a turnaround towards the

end of the year, linked to the rise in car sales in France on the

back of scrap bonuses. The drop in new personal loans over

2009 was limited to 8.9%.

LOANS TO INDIVIDUAL CUSTOMERS

(annual averages)

(in EUR billions)

8.96

1.50

0.33

9.62

1.60

0.32

10.54

1.65

0.32

11.3

1.63

0.30

2006 2007 2008 2009

10.79 11.54 12.51 13.26

Housing loans

+6.1%

+7.4% +9.6%

+3,6%

+7.5%

-1.2%

+7.0%

+8.5%+6.0%

Consumer loans Overdrafts

As a result of the «wait-and-see»-ism and caution adopted

by consumers during the crisis, combined with the risk

prevention measures implemented by the network, individual

customer overdrafts decreased by an average of 8.1% in

2009.

The use of revolving credit lines remained on an uptrend,

with growth picking up to an average of 2.9% in 2009 on the

back of the overhauled commercial offering completed two

years ago and our efforts to increase the number of products

and service subscriptions per customer. The rate of growth

slowed, however, towards the end of the year.

Loans to businesses (1) deeply impacted by the

recession

The magnitude of the economic recession, its propagation

to all business sectors, and the uncertainties surrounding

the likelihood of a sustainable recovery caused business

investments to positively plunge in 2009. New capex loans

shed 19.6% in volume and 14,900 in number as December

31, 2009. Despite the problems generated by the crisis, the

Group continued to aid its customers with their projects,

without making any substantial changes to its cautious

lending policy aiming for profitability and risk control.

BUSINESS LOANS – CAPEX

(including PBE) (2)

(in EUR billions)

1,723

+14.1%

+18.9% -19.6%

1,579 1,802 2,143

2006 2007 2008 2009

(1) including loans to business, professional and institutional customers.

(2) including special financing arrangements.



LEASING ACTIVITY

(in EUR millions)

521

+12.7%

587 717 489

+22.2%

-31.7%

2006 2007 2008 2009

Given the decline in economic activity, new leasing activity

fell sharply (-31.7%) despite the Group’s solid strategic

determination to increase business lending in this format,

which is more secure for the bank.

The collapse in activity over the majority of the year, the

associated decline in corporate revenue, and the impact

of the accelerated repayment of VAT by the government

all resulted in a major contraction in short-term credit lines,

with companies calling instead upon their receivables.

At December 31, 2009, outstanding short-term loans to

businesses were down 17.7% year-on-year.

OUTSTANDING BUSINESS LOANS

(annual averages)

(in EUR billions)

5.17

1.84

1.44

5.72

1.60

1.53

6,44

1,67

1,79

8.44 8.84 9.90 9.82

Medium & long-term loans

+10.6%

-13.1%

+6.2%

+12.6 %

+4.6%

+17.3%

6.97

1.37

1.47

+8.3%

-17.7%

-17.8%

+4.7%

+12.0%

-0.8%

Commercial & cash loans Overdrafts and others

2006 2007 2008 2009

Change in total outstanding business loans excluding one-

off carry of CDN papers: +0.2% (i.e. -15.6% in outstanding

short-term loans).



Z Financial developments

The figures presented below are taken from the Group’s fully

consolidated financial statements.

Two subsidiaries were removed from the consolidation scope

in fiscal year 2009: Etoile Gestion and Dexia-C.L.F Banque.

The breakdown of changes in the consolidation scope is

presented in Note 2 to the consolidated financial statements.

The figures shown were prepared under IFRS, including IAS

32 and 39 and IFRS 4.

In order to provide complementary information on specific

accounting items, reference will be made to managerial

accounting analyses applicable to different scopes of

consolidation as explained in the accompanying text.

These analyses concern Retail Banking, whose NBI accounts

for over 90% of Group NBI.

(in EUR millions)

(including change in PEL/CEL provision) 31/12/2009 31/12/2008

% change

2009/2008

Net interest and similar 816.9 829.9 -1.6

Net fee income 762.9 714.0 +6.8

NBI 1,579.8 1,543.9 2.3

After the write-back of the provision for future commitments

on PEL home savings products (EUR 1.6 million in 2009 vs.

EUR 1.7 million in 2008), NBI increased by 2.3%.

Bear in mind that in 2008, the Group’s asset management

company was obligated to sell off assets to ensure the

liquidity of certain funds. The capital loss on the disposal of

these assets totalled EUR 72.2 million. At the same time, the

Group had to recognise its financial liabilities at fair value, in

accordance with IFRS, generating a positive impact of EUR

28.4 million on NBI.

Conversely, this valuation resulted in an expense of EUR 16.3

million in fiscal year 2009.

Adjusted for (i) this non-recurring loss, (ii) changes in

provisions for future commitments on PEL and CEL home

savings products, (iii) the IPO of Visa Inc. and (iv) the change

in fair value of the liabilities, NBI increased by 1.3%.

Despite a substantial drop in financial fees linked to the

persistently uncertain market environment, this NBI growth

drew on the solid resilience of the sales margin on the back of

low interest rates, aiding the rebound in the margin on loans.

The margin on loans suffered, however, as the adjustment of

interest rates on special regime savings accounts came late

given the circumstances on the market.

NET BANKING INCOME (at December 31)

Consolidated Group scope (in EUR millions)

1,516.0

+5.4%

1,597.5 1,543.9 1,579.8

-3.4%+2.3%

2006 2007 2008 2009



An analysis of the full scope of consolidation of the Group’s

banks is useful in gaining a better understanding of NBI and

the underlying trends in its different components.

The sales margin improved by 1.7%, i.e. EUR 12.0 million,

thanks to the major rebound in the margin on loans (though

hurt by the decline in the margin on deposits).

The margin on loans rose by 13.2%, i.e. EUR 36.3 million,

owing to the rebuilding of margins begun in 2008.

Due to the low demand for loans during the crisis, volumes

of business and consumer loans underwent regular declines.

By end-December, outstanding loans were nevertheless up

by 3.6% thanks to a 7.8% rise in capex loans and a 7.5%

increase in housing loans, driven by new lending in 2008 and

despite the sharp drop in short-term business loans (-7.3%).

The margin on deposits shed 5.7%, i.e. EUR 24.3 million, due

to a very negative price effect.

The downturns in the rate of return on Livret A savings

passbooks (from 4.00% in January 2009 to 1.25% at August

1 and unchanged since) were too gradual compared to

market rates, which remained at an exceptionally low level

throughout the year.

However, these rate declines did not impact special-regime

savings deposits, which increased sharply (+16.2%). This

rise was partially offset, however, by ongoing net outflows

from home saving plans and accounts which began in late

2005 (-9.6%) and the substantial net outflows from term

deposits (-29.3%). It should be noted that sight deposit

volumes made a major comeback in terms of growth at the

end of the fiscal year, reaching an average of +4.1% for 2009,

thanks in large part to a hefty rise in business customer sight

deposits (+7.8% vs. +3.0% in 2008). The more moderate

growth in individual customer sight deposits (+1.6%) can be

attributed to the shift towards special-regime savings and life

insurance products, both of which offered attractive returns.

On the whole, net interest and similar income shed 1.6%.

The cost of the search for regulatory liquidity had a major

negative impact on the first half of 2009. However, given

that this phenomenon has its roots in late 2008, a positive

comparison base effect arose towards the end of 2009.

Restated for (i) the change in the fair value of financial

liabilities, (ii) the IPO of Visa Inc and (iii) the change in

provisions for future commitments on PEL and CEL home

savings products, net interest and similar income were up

5.6%.

NET FEE INCOME (at December 31)


364.5

348.9

405.8

384.5

443.2 457.3

270.8 305.6

713.4 790.3 714.0 762.9

Service fees

+11.3%

+10.2%

+9.2%

-29.6%

+3.2%

+12.8%

+10.8% +6.8%

- 9.7%

Financial fees

2006 2007 2008 2009

Consolidated net fee income rose by 6.8%. Excluding losses

on the disposal of Etoile Gestion assets in the first half of

2008, consolidated net fee income fell by 3.0% over the

year. This poor performance is attributable to the change in

financial fees which, excluding losses on the disposal of Etoile

Gestion assets, slid by 10.9% due to the sharply negative

impact of the significantly deteriorated financial environment.

Income from service fees picked up by 3.2%, driven by the

expansion of the customer base and robust sales of products,

which helped offset the decline in customer savings deposits.



Z Operating expenses

(in EUR millions) 31/12/2009 31/12/2008

% change

2009/2008

Personnel expenses -634.9 -617.5 +2.8

Taxes -30.9 -29.0 -6.6

Other expenses -304.8 -310.4 -1.8

Depreciation and amortization -75.2 -74.6 +0.8

TOTAL OPERATING EXPENSES -1,045.8 -1,031.5 +1.4

General operating expenses rose just 1.4% to EUR

1,045.8 million.

Offset against the streamlining of the Middle Office structure

launched in 2006, the rise in the headcount required to open

14 new branches to the public in 2009 resulted in a Group

headcount decrease of 1.6%.

Personnel expenses rose by 2.8% (i.e. 1.6% adjusted for

fluctuations in compensation paid out through profit-sharing

schemes).

Taxes were increased by a relatively high 6.6%, compared

to the relatively low tax rate in 2008 (owing to the positive

resolution of old disputes with the tax authorities).

Thanks to the Group’s significant cost-cutting efforts

undertaken from 2008, and despite the 5.3% rise in rent and

rental charges on property (mainly linked to the application

of inappropriate revision formulas during the crisis), other

expenses declined by 1.8% over the year. The biggest cuts

were made in supplies and outsourcing (-28.7% and -12.2%,

respectively).

The increase in amortization was limited to 0.8% due to the

maturity of the amortization expense on IT projects.

The deployment of IT projects in 2009 amounted to EUR

28.4 million, down 1.1% on 2008. The corresponding

amort izat ion expense total led EUR 25.4 mi l l ion

(EUR 26.7 million in 2008).

31/12/2009 31/12/2008

% change

2009/2008

Pro rata staff count in activity – Group 7,605 7,725 -1.6

Average net staff count present – Group (1) 8,737 8,775 -0.4

(1) including apprenticeship and temporary employment agreements.



OPERATING EXPENSES (at December 31)


1,045.8

+3.7% +1.9% +1.4%

2006 2007 2008 2009

975.9 1,011.9 1,031.5

GROSS OPERATING INCOME

(at December 31)


534.0

+8.4%

-12.5%

2006 2007 2008 2009

540.1 585.6 512.4

+4.2%

Consolidated net income gained 4.2% to EUR 534.0 million.

Excluding PEL/CEL effects, the change in financial liabilities,

and after the correction of the Visa Inc. IPO and losses on

the disposal of Etoile Gestion assets in 2008, gross operating

income was up 1.1%.

Gross operating income

(in EUR millions) 31/12/2009 31/12/2008

% change

2009/2008

NBI 1,579.8 1,543.9 +2.3

General operating expenses -1,045.8 - 1,031.5 +1.4

GOI 534.0 512.4 +4.2



COST-TO-INCOME RATIO (at December 31)

Consolidated Group scope (as %)

66.264.4 63.3 66.8

2006 2007 2008 2009

The cost-to-income ratio improved by 0.6 points compared

to December 31, 2008.

Excluding exceptional items (mentioned above), operating

expenses/NBI were relatively stable at 65.6% vs. 65.5% at

the end of 2008.

Z Cost of risk

Crédit du Nord Group’s consolidated cost of risk (1) totalled

EUR 207.8 million at end-2009 versus EUR 132.0 million at

end-2008 and EUR 73.5 million at end-2007. Divided by total

net lending by the Group, cost of risk came out at 0.82%,

thus representing a substantial improvement compared to

December 31, 2008.

This change reflects the impact on our customers (particularly

SMEs) of the extremely challenging crisis plaguing the

economy since mid-2008, the impacts of which could very

much still be seen in 2009.

(1) Cost of risk represents the net provisioning charge on banking activities (allocations to provisions less write-backs), plus non-provisioned losses on

irrecoverable loans, less amounts recovered on amortized loans. Under IFRS, cost of risk includes the effect of discounting of provisions due to the

delay in recovering cash flows on doubtful loans (principal and interest).

(in EUR millions) 31/12/2009 31/12/2008

% change

2009/2008

Cost of risk - 207.8 - 132.0 - 73.5

Outstanding loans 25,496.7 25,761.4 24,060.1

Cost of risk / outstanding loans 0.82 % 0.51 % 0.31 %



Crédit du Nord Group’s loan business predominantly

targets French customers, whose economic environment

continued to deteriorate sharply over the large majority of

fiscal year 2009. The landscape for French VSEs and SMEs

was hit especially hard. In the wake of a highly depressed

first half, these companies often recorded stable activity at

best (though at low levels) in the second half of the year. In

France, 2009 once again saw a major rise in the number of

collective proceedings that were both preventative (ad hoc

mandates, conciliations, safeguard procedures) and curative

(restructuring and liquidation under the supervision of the

court) in nature.

Against this backdrop, the ratio of doubtful and disputed

loans to total loans stood at 6.3%.

It should be noted that neither individual nor professional

customers saw a significant rise in their cost of risk over the

fiscal year.

Furthermore, the Group maintained its usual provisioning

policy.

(in EUR millions) 31/12/2009 31/12/2008 31/12/2007

Doubtful and disputed loans (gross) 1,653.4 1,364.3 1,187.4

Depreciation for individually impaired loans -801.0 -656.6 -602.4

Gross doubtful and disputed loans/gross

outstanding loans 6.3% 5.3% 4.9%

Net doubtful and disputed loans/net outstanding

loans 3.3% 2.7% 2.4%

Provisioning ratio for doubtful and disputed loans

(includes lease finance) 48.4% 48.1% 50.7%

Z Operating income before corporation tax

(in EUR millions) 31/12/2009 31/12/2008

% change

2009/2008

GOI 534.0 512.4 +4.2

Cost of risk -207.8 -132.0 +57.4

OPERATING INCOME 326.2 380.4 -14.2

Net income from companies account for by the equity method 3.1 2.1 +47.6

Gains or losses on fixed assets 130.7 - -

OPERATING INCOME BEFORE CORPORATION TAX 460.0 382.5 +20.3



OPERATING INCOME (at December 31)


-67.6

472.5

-73.5

512.1

-132.0

-207.8

380.4 326.2

2006 2007 2008 2009

540.1GOI 585.6 512.4 534.0

Cost of risk

+8.7%

+8.4%

+79.6% +57.4%

-25.7% -14,2%

Operating income

Taking cost of risk into account, Crédit du Nord Group

generated operating income of EUR 326.2 million in 2009,

a decrease of 14.2% on December 31, 2008. Excluding

the above-mentioned exceptional items, operating income

dropped by 17.0%.

Thanks to the exceptional capital gains generated by the

contribution of the asset management business to AMUNDI

and the disposal of the stake held in subsidiary Dexia-C.L.F

Banque, operating income before corporation tax amounted

to EUR 460 million (+20.3%).

Z Net income

(in EUR millions) 31/12/2009 31/12/2008

% change

2009/2008

OPERATING INCOME BEFORE CORPORATION TAX 460,0 382,5 + 20,3

Corporate tax - 102,1 - 123,3 - 17,2

Minority interests 10,0 6,5 + 53,8

CONSOLIDATED NET INCOME AFTER TAXES 347,9 252,7 + 37,7

Finally, consolidated net income after taxes came out at 347.9 million, up 37.7% compared to December 31, 2008. Excluding

all above-mentioned exceptional items, consolidated net income declined by 14.3%.



Z Shareholders’ Equity (under Basel II standards)

Movements which affected Group shareholders’ equity in

2009 included the incorporation of consolidated net income

after distribution of dividends into reserves.

After-tax return on book equity came in at 19.8% (2) at end-

2009 for a Tier One ratio of 8.5%(2) (3), compared with an

ROE of 14.9% (2) and a Tier One ratio of 7.2%(2) (3) in 2008.

ROE in 2009 was substantially boosted by the capital gains

generated on the contribution of the asset management

business to AMUNDI and the disposal of the stake in Dexia-

C.L.F Banque.

Restated for 2008 and 2009 exceptional items, ROE came

out at 13.6% (2), vs. 16.2% (2) last year.

The solvency ratio observes the calculation method

determined by the French Banking Commission (Basel II

solvency ratio). It is established on a consolidated «banking»

basis and eliminates the contribution of insurance entities.

Prudential capital, comprised of core capital and

supplementary capital, is determined in accordance with

CRBF Regulation No. 90-02 in force. Supplementary capital

is not included in the 100% core capital limit.

Regulation No. 95-02 on prudential supervision of market

risks allows for the inclusion of tertiary capital and, to this

end, allows for subordinated issues with an initial maturity

of two years or more. Crédit du Nord Group does not make

use of this possibility.

The solvency ratio represents the amount of capital available

to meet all of the risks to which the Bank is exposed.

Minimum capital requirements are set at 8% of these risks,

expressed in terms of weighted exposures with respect to

credit risks and in terms of capital requirements multiplied by

12.5 with respect to market risks and operational risks. Risks

are calculated using internal models for which the Group

received approval from the French Banking Commission in

2007.

Basel II introduces new deductions, half of which are

applicable to core capital and half to supplementary capital

(shareholdings in companies engaged in financial operations,

inadequacy of provisions).

Crédit du Nord observed the prudential solvency ratios over

the course of 2009.

(in EUR millions) 31/12/2009 31/12/2008

Shareholders’ equity at year-end (1) 2,164.3 1,912.8

o/w Group share (1) 2,107.3 1,862.4

Average shareholders’ equity (1) 2,038.6 1,901.5

BIS-weighted credit risk 13,700.6 14,501.8

Shareholders’ equity (2) 1,489.3 1,688.6

Consolidated solvency ratio (2) (3) 8.90 % 8.32%

o/w Tier One (2) (3) 8.50 % 7.23%

(1) Includes income in progress.

(2) Includes income in progress, net of forecasted dividend payout.

(3) After application of additional floor capital requirements, i.e. with a floor of 80% at 31/12/09 and 90% at 31/12/08; excluding the floor effect, the

solvency ratio was 10.87% at 31/12/09 and 11.64% at 31/12/08, and the Tier One stood at 10.38% at 31/12/09 and 10.13% at 31/12/08.

Z Financial assets

In light of the asset write-downs carried out since 2007, the portfolio of securities taken from the fund managed by Etoile Gestion

stood at EUR 1,196.2 million at December 31, 2009.

Note that there are no derivative credit products booked on Crédit du Nord’s balance sheet.



2009 was one of the worst years for the global economy

since 1945: economic activity was so week that, with the

exception of a few emerging companies (with China leading

the pack), most economies found themselves in a recession;

France saw its GDP fall by over 2%. Industrial output has

been at a standstill for several months, despite a slow

movement towards recovery observed in the second half

of the year, while consumption has remained sluggish. The

crisis has had a hard-felt impact on the employment scene.

The unemployment rate is expected to reach about 9% at

end-2009 in France.

Crédit du Nord Group was by no means spared from the

crisis, which hit asset management customers and SMEs

the hardest. The Bank nonetheless succeeded in maintaining

dynamic commercial activity, having in particular continued

to expand its individual customer base. Despite having

deliberately adopted a more selective commercial approach

and development policy, the Group saw only a limited decline

in its professional and business customer bases. This

performance confirmed the resilience of its business model,

based on close relations with its customers and the balanced

distribution of its business portfolio between the individual,

professional and business customer markets.

Excluding non-recurring items, the Group posted NBI growth

of 1.3% in 2009, despite the decline in financial fees, which

were particularly impacted by the economic and financial

crisis, and the decline in the margin on deposits. The change

in operating expenses was kept under control. Operating

income, however, took a major turn for the worse, with net

cost of risk increasing by over 50% compared to 2008.

In the wake of the timid rebound launched in the second

half of the year, the greatest consensus is leaning towards a

positive growth scenario for 2010: several activity indicators

appear to be saying that the recovery seen in the sectors

hit hardest, combined with the widespread implementation

of accommodating monetary policies, are beginning to bear

fruit. The equity markets have picked up again, and the fact

that the CAC 40 alone has remained at around 4,000 points

is a huge growth driver for our financial fees. Having said that,

the economies are expected to remain in a tough spot over

the coming months, especially in Europe where consumption

could continue to be impacted by rising unemployment and

where no recovery in business investment can be expected

until production capacity usage rates have returned to

normal.

Starting in the second quarter of 2010, cost of risk may

therefore begin to decrease slightly from the high point

reached over the past year.

Economists are now raising questions about what will

happen after the crisis, particularly in terms of the weight

of public debt, its restrictive impact on domestic demand,

and on monetary policy, which is expected to remain

accommodating until at least the end of the first half of 2010.

In spite of this environment, Crédit du Nord Group is

determined to maintain its commercial development policy

across all markets, in line with its full service local banking

model. This commercial momentum should help it lay the

best possible groundwork for the post-crisis period and will

continue to underpin the structural increase in its results.

To this end, 14 branches were opened to the public in 2008

in high-potential areas, in line with the Group’s selective

policy for expanding its geographic coverage. A few more

branch openings are scheduled to take place in 2010. This

type of momentum guarantees Crédit du Nord’s medium-

term profitability.

In addition to expanding its network, Crédit du Nord can

anchor its NBI growth in the growth of savings deposits by

continuing to promote the Livet A savings passbook as well

as its life insurance products with the overhaul of the sales

offering in late 2009 and the promising launch of the new

Antarius Duo policy.

On the lending front, the return to positive NBI growth should

support demand for individual loans and lead to a moderate

recovery in drawdowns on short-term credit lines and in flows

in the professional and business customer segments.

At the same time, efforts to streamline processes will be

stepped up in order to further improve management of

operating expenses, which are expected to continue rising,

but at a slower pace than in previous years, due to the maturity

of the amortization expense on IT projects, the slowdown

in the branch opening programme, and the initiatives

undertaken to reduce current expenses. Furthermore, in

2010 Crédit du Nord is launching a programme entitled

«Convergence» with Société Générale, the goal of which is

to share Group best practices, build a shared information

system drawing on the assets of each of the networks, and

advance the synergy development programme in certain

non-commercially differentiating activities.

Finally, risk management will continue to be stressed during

this persistently trying period, thus facilitating the widespread

availability of many risk management tools deployed by the

Group in recent years and in 2010.

Z Outlook



Z 2 or 3 market branches opened to the public in 2009

Amiens Alexandre Dumas

Paris PyrénéesParis Rennes, Paris Malesherbes

Saint-Jean-de Maurienne

Aurillac

Montauban Cladel

AngoulèmeSaint Cybard

Challans

Vannes

Montigny-le-Bretonneux

Colombes

Sens

Cesson-Sévigné

A

CD

E

B

Régions Crédit du Nord

A Les Provinces du Nord / Nord MétropoleB PicardieC Normandie - Haute BretagneD Île de FranceE Provence-Alpes-Côte d’Azur

Filiales

1 Banque Courtois2 Banque Kolb3 Banque Laydernier4 Banque Nuger5 Banque Rhône-Alpes6 Banque Tarneaud

1

2

3

4 56



Crédit du Nord Group does not have a uniform network of branches throughout France. As a result, while its share of the

domestic market was ranged from 1.3% to 1.4% at September 30, 2009, it occupies particularly stronger market shares in

those areas in which it has been long established, notably north-western France, the Limousin region (Banque Tarneaud), the

Auvergne region (Banque Nuger) and in the Midi-Pyrénées region (Banque Courtois).

6,5 %

4,9 %3,8 %

1,1 %

4.0%

1.0%1.2%

0.8%

0.1%0.6%0.3%

2.4%

0.9%

0,3 %

0.0%0.2%

1,5 %

0,7 %

0,9 % 1,1 %

0,3%

0,3%0,4 % 0,9 %

1,2%

1,8 %

2,8 %

2,5 % 2,1 %

1,9 %1,3 %

Source: Local statistics in deposits/loans recorded by the Banque de France

6.4%

4.5%3.5%

1.1%

0.8%

0.6% 1.1%

0.3%

0.2%0.5% 1.0%

1.0%

1.7%

2.8%

2.0% 2.0%

1.7%1.4%

0.2%

1.4%

1.4%

0,1% to 1,5%0 1,6% to 3% >3% 0,1% to 1,5%0 1,6% to 3% >3%

6.1%

0.9%0.7%

1.2%

1.9% 0.9% 1.4%

1.5%1.8%

Market share in loans (all customer

segments combined) of Crédit du Nord

Group at September 30, 2009

Domestic market share: 1.4%

Market share in deposits (all customer

segments combined) of Crédit du Nord

Group at September 30, 2009

Domestic market share: 1.3%


2 I Consolidated fi nancial statements IChairman’s Report on Internal Control and Risk Management

� Chairman’s Report on Internal Control and Risk

Management

Prepared for fiscal year 2009, in accordance with Article L.225-37 of the French Commercial Code, this report covers the preparation and organisation of the activities of the bank’s Board of Directors as well as its Internal Control procedures.

Note:

The information presented below concerns fiscal year 2009. As from January 1, 2010, the functions of Chairman of the

Board of Directors and Chief Executive Officer have been separated. This has resulted in a certain number of changes

in the organisation of the Board’s activities and on the role of the Chief Executive Officer. These changes are detailed

in the 2010 report.

Z Preparation and organisation of the boardis activities

The Board of Directors typically meets three times a year at

least: in February, July and October.

The agenda of all Board meetings is set by the Chairman and

Chief Executive Officer during a preparatory meeting with

the Corporate Secretary, and following consultation with the

Executive Committee. During the preparatory meeting, the

following points are reviewed:

– items that must be examined by the Board pursuant to

the law;

– items of particular interest, in order to report to the Board

on the proper functioning of the Company and its strategic

choices (sales, organisational and investment strategies,

etc.).

Directors, the list of whom is presented in the Registration

Document, are convened no less than two weeks before

the planned date of the Board meeting. Their notification

includes:

– the agenda of the meeting;

– the draft minutes of the preceding Board meeting.

In addition to the Directors the following also participate in

Board meetings:

– the Executive Vice Chairmen and the Deputy Chief

Executive Officer;

– the other members of the Executive Committee concerned

by items on the agenda;

– the Statutory Auditors;

– the Corporate Secretary in his capacity as Secretary of

the Board;

– the Secretary of the Central Workers’ Council.

The information pack sent to each Director includes:

– the reports prescribed by law: Management Report,

Chairman’s Report on the Board’s activities and on

internal control procedures, etc.;

– draft resolutions for shareholders’ meetings;

– draft resolutions whose purpose is to inform the Board or

on which the Directors must make a decision.

For the Board meetings called to approve the annual financial

statements, the following information must also be sent:

– to each Director: a list of all other company directorships

held by the Director, it being the responsibility of each

Director to verify and amend the list as necessary;

– to the Chairman and Statutory Auditors, by virtue of current

regulations, a list of all significant agreements entered into

between Crédit du Nord and its senior managers and/or

those companies with which Crédit du Nord shares senior

managers or shareholders.

Board meetings last approximately three hours.


I Consolidated fi nancial statements IChairman’s Report on Internal Control and Risk Management

Items are presented by the Chairman, by a member of the

General Management, and in particular by the Deputy Chief

Executive Officer in his capacity as Chief Financial Officer,

or by the Project Manager where the item in question is of

a technical nature. A deliberation process ensues in which

views and opinions are expressed, at the close of which the

Board is asked to vote, where necessary.

A draft of the minutes of the meeting is prepared by the

Secretary of the Board, who submits the same to the

Chairman and members of the Executive Committee present

at the meeting. The draft minutes are then submitted for the

approval of the Board at the start of the following meeting.

There are no Internal Rules governing the Board, nor is

there a code of corporate governance; information on

the accumulation of mandates and the independence of

Directors is presented in the Registration Document.

General Meetings of Shareholders are convened in

accordance with all currently applicable laws and regulations.

All shareholders receive a meeting notice.

Limits to the powers of the Chief Executive Officer

The Chairman of the Board of Directors is also Chief Executive

Officer.

The term of office and remuneration of the Chief Executive

Officer are determined by the Board of Directors.

The Chairman and Chief Executive Officer is vested with

extensive powers to act under all circumstances on behalf of

the company, within the limits set out by the corporate bylaws

and excluding those powers expressly attributed by law to

the Shareholders’ Meetings and the Board of Directors.

The Chairman and Chief Executive Officer is supported by

two Deputy Chief Executive Officers.The scope and term of

the powers granted to the Executive Vice Chairmen, as well

as their remuneration, were set by the Board of Directors on

the proposal of the Chairman and Chief Executive Officer.

Both Executive Vice Chairmen have the same powers as

the Chairman and Chief Executive Officer in respect of third

parties.

The company has a Special Compensation Committee

consisting of two Directors.

The compensation of the Chairman and Chief Executive

Officer and the Executive Vice Chairmen is established by

the Board of Directors. Said compensation is comprised of

a fixed component and a performance-based component

linked to the company’s results. Detailed information is

provided in the section entitled “Information on the Corporate

Officers” of the annual report.

Z Internal control procedures

This report discusses the internal control procedures that

apply to all entities within Crédit du Nord Group. The various

units involved in internal control helped to prepare those parts

of the report.

The activities of Crédit du Nord Group are subject to a secure

control framework, in that they must comply with both

banking regulations and the systems and procedures of its

majority shareholder (I).

As a network bank with strong regional roots and a customer-

base essentially comprised of individuals and SMEs, Crédit

du Nord and its subsidiaries are exposed to risks, the most

significant of which is counterparty risk (II).

Due to its chosen business mix, Crédit du Nord Group has

limited exposure to risks related to international and real

estate activities.

Internal control at Crédit du Nord Group has been based on

a system that separates permanent and periodic controls (III).

As regards accounting and financial management, a

common information system is shared by virtually all Group

companies and in particular the banking subsidiaries. This

information system provides subsidiaries with access to all

Crédit du Nord rules and procedures and facilitates their

implementation, while allowing Crédit du Nord to centralise

all data required to monitor the results and activities of Group

companies in real time (IV).

I. A SECURE FRAMEWORK

1- Regulated reporting

The annual reports on internal control and the measurement

and supervision of risks, prepared in accordance with Articles

42 and 43 of CRBF Regulation No. 97-02, as amended, are

transmitted to the decision-making body, addressed to the

Statutory Auditors and to the main shareholder.

The French Banking Commission receives reports from each

subsidiary of Crédit du Nord, along with the consolidated

report of Crédit du Nord Group.

Each year, the Group’s RSCIs (Heads of Investment Service

Compliance) submit a general report on compliance with

investment service provider requirements and a special

report addressing a specific topic to the AMF (French market

authority). These reports are also submitted to the decision-

making body of each entity.



2- Control procedures of the shareholder

As part of Société Générale Group since 1997, Crédit du

Nord also benefits from the control system established by its

majority shareholder.

The shareholder’s internal control system focuses primarily

on risk exposure, the accuracy of financial and management

accounting data, and the quality of information systems.

Systematic controls are performed by the majority shareholder

as part of a programme of regular visits to Group entities

aimed at ensuring that the defined standards are being met.

As the majority shareholder is itself a banking establishment,

continuous comparisons between the two networks

facilitates the analytical review of accounts and risks.

II. MAIN BANKING RISKS

1- Counterparty risk

The credit policy of Crédit du Nord Group is based on a set

of rules and procedures concerning lending, delegation of

responsibilities, risk monitoring, rating and classification of

risk, and the identification of impaired risks.

This policy is defined by the Central Risk Division, which

reports directly to the Chairman and Chief Executive Officer.

The identification of counterparty risk impairment is the

responsibility of all personnel in charge of managing,

monitoring and controlling risks, i.e. the sales function, risk

management function, risk control department and periodic

control department.

Risk management is organised on two levels:

The Central Risk Division (DCR), which reports directly to the

Chairman and Chief Executive Officer of Crédit du Nord and

reports functionally to the Risk Division of Société Générale.

This division assists with the definition of credit policies,

oversees their implementation and participates in the credit

approval process.

The DCR is responsible for identifying and classifying risks,

and also participates in the risk control process, determining

the proper provisioning for doubtful loans and collections of

doubtful loans.

The Regional and Subsidiary Risk Departments, which report

directly to the Regional Managers or Subsidiary Chairmen

and which report in functional terms to Crédit du Nord’s

Central Risk Division, are responsible for implementing the

Group’s credit policies and managing risks at their level.

Their main areas of activity are: the credit approval process;

monitoring and classification of risks; recovery of doubtful

and disputed loans.

Specialised committees and systems

In order to monitor and manage risk, Crédit du Nord Group

has set up specialised risk committees and structures at both

a Group and a regional/subsidiary level.

– a Risk Committee, chaired by the Chairman and Chief

Executive Officer, that meets once a month. A member of

the Risk Division of the majority shareholder also sits on

this committee;

– a Regional Risk Strategy Committee that meets once a

year in each region and at each subsidiary. This committee

is chaired by the Chairman and Chief Executive Officer of

Crédit du Nord;

– a review of impaired risks is performed every six months

by the Control and Provisioning Division of the DCR.

On the Group’s main customer markets, the risk monitoring

and control procedures have been enhanced by risk

modelling systems developed while preparing to implement

Bale II adequacy ratio.

These committees and structures regularly contribute to the

definition of risk policy, the implementation of this policy, the

examination of significant risks, the monitoring of impaired

risks, provisioning for risks and overall risk analysis.

Crédit du Nord also prepares a quarterly report on major

regulatory risks for its majority shareholder, which is

then consolidated and submitted to the French Banking

Commission.

2- Interest rate, exchange rate and liquidity

risk (excluding market activities)

With regard to global risk management, Crédit du Nord

Group distinguishes the management of structural balance

sheet risks (Asset and Liability Management or ALM) from the

management of risks related to trading activities.

2-1 Asset and liability management (ALM)

Reporting directly to the Finance Division of Crédit du Nord,

the ALM unit comes under the authority of the Head of the

Financial Management Division.

It is responsible for monitoring and analysing Crédit du Nord

Group’s exposure to maturity mismatch, interest rate and

liquidity risks.

All decisions concerning the management of any interest rate

and/or liquidity mismatch positions generated by the Group’s

client-driven activities are made by the ALM Committee,

which meets on a monthly basis under the chairmanship of

the Chairman and Chief Executive Officer. A member of the



Finance Division of the majority shareholder also sits on this

committee.

Liquidity risk

The ALM unit monitors the outstandings and regulatory ratios

of Crédit du Nord and its subsidiaries. Short-term liquidity

management, on the other hand, is delegated to each

subsidiary as part of its cash management activities and is

subject to certain limits (i.e. liquidity requirements).

Changes in the structure of the balance sheet are managed

by the ALM unit and monitored by the ALM Committee,

which in turn determines the refinancing requirements of

the Group’s entities. A quarterly report on liquidity risk is

submitted to the majority shareholder.

Interest rate risk

All assets and liabilities of Group banks, excluding those

related to trading activities, are subject to an identical set of

rules governing interest rate risk management.

The ALM Committee delegates the management of short-

term interest rate risk to the Weekly Cash Flow Committee.

This risk is managed in large part by the following two

indicators:

– the daily short term interest rate, which is subject to limits;

– exposure to short rates incurred by all balance sheet

transactions, which is also subject to a limit.

The Weekly Cash Flow Committee makes sure these limits

are observed.

The overall interest rate risk of Crédit du Nord Group is

subject to exposure limits in euros and local currencies. The

observance of these limits is verified within the framework of

reports to the majority shareholder.

Crédit du Nord Group operates a consistent hedging policy

against ALM risks and implements the appropriate hedges

to reduce the exposure of Group entities to interest rate

movements.

The hedging activities of the ALM unit cover all Crédit du Nord

Group entities.

Each Group entity is monitored individually and hedged on

an ad hoc basis.

Note that the Group is equipped with the ALM application,

«Almonde». «Almonde» is used to produce the Weekly Cash

Flow Committee’s reports, the ALM Committee indicators and

the quarterly shareholders’ report. The hedge effectiveness

tests required by the new international financial reporting

standards (IFRS) are performed using market valuations

calculated by Evolan (software used by the Trading Room).

«Evolan» supplies a reliable restatement of positions, as

asset-liability mismatches are now exhaustive and calculated

as a monthly average.

2-2 Trading activity

Transactions involving derivatives linked to customer

transactions are, generally, hedged by Crédit du Nord

shareholder Société Générale, since Crédit du Nord holds

only limited proprietary positions in these products.

The control of limits assigned to these trading activities by

the General Management are monitored by the Treasury

and Foreign Exchange Department in accordance with the

standards adopted by the shareholder.

The results of these activities are checked by the appropriate

audit teams (see «Market risks» below).

3- Market risks linked to client driven

transactions

Crédit du Nord consistently matches customer orders, mainly

through its shareholder Société Générale, thus significantly

reducing its exposure to market and counterparty risks.

A specialised unit from the Treasury and Foreign Exchange

Department monitors market and counterparty risks.

These risks are calculated on a daily basis and compared

with the limits. Any overruns are reported to the specialist unit

in the Treasury and Foreign Exchange Department.

A report on limit controls is submitted to the shareholder

once every two weeks. The CFO also receives a weekly

status report on results and limits and a monthly report on

changes in limits from the Treasury and Foreign Exchange

Department. The Chairman and Chief Executive Officer also

receives a quarterly report on changes in limits from the

Treasury and Foreign Exchange Department.

In addition, a weekly review of any limit overruns is submitted

to the Head of the Central Risk Division.

4- Operational risks

The business activities of the various Group entities are

exposed to a whole series of risks (administrative, accounting,

legal, IT, etc.), which are covered by the term «Operational

risks».

In accordance with the recommendations of the Basel

Committee, and in consultation with the majority shareholder,

operational risks have been newly classified. Moreover, all

losses in excess of an amount set at EUR 10,000 for Crédit

du Nord Group are systematically reviewed.



Major projects are monitored by the Steering Committee. The

Chairman and Chief Executive Officer sits on the Committee

for the most significant projects.

Within the Central Risk Management Division, the Operational

Risk Management Department steers and coordinates the

procedures implemented Groupwide in terms of Operational

Risks, Business Continuity Plans, crisis management and

central management of IT authorisations.

The division uses a network of Operational Risk

Correspondents working in the different head office entities,

at the subsidiaries and throughout the operating network.

An Operational Risk Committee, comprising members

of the General Management, the Head of the Legal Affairs

and Controls Division (DAJDC), the Head of the Central Risk

Division, the Head of Information Systems, Projects and

Banking Operations, and the Head of Operational Risks,

meets three times a year.

This committee reviews operational losses and the mapping

of operational risks, and also assesses the progress of

Business Continuity Plans and the Crisis Management

system.

Furthermore, the Head of Operational Risks is a member

of the Compliance Committee and the Internal Control

Coordination Committee (CCCI) of Credit du Nord.

An Operational Risk Review Meeting, with the participation

of the Head of Information System Security, the Head of

Operational Risks and the Heads of Internal Control, meets

prior to delivery of each new IT application or new version of

an existing application in order to ascertain risk in terms of

availability, integrity, confidentiality, testability, control (audit

trail) and compliance

An IT Security Committee, chaired by the Head of

Information System Security, meets three times a year.

A Crisis Plan is designed to convene a crisis unit at any time,

at one or more sites established for this purpose, comprised

of a core unit containing continuous services called upon

independently of the type of crisis and working under the

authority of the crisis manager who oversees the crisis and

reports to the General Management. This unit can request

the presence of any executives, managers and experts

directly concerned by the event.

The strategic Head Office entities, i.e. those needed to ensure

the continuity of operations, prepared a Business Continuity

Plan. This plan is in addition to the continuity procedures

already in place throughout the network.

5- Non-compliance risk

In accordance with the rules applicable to credit institutions,

special procedures were developed to address non-

compliance risk, defined by the consequences (penalties,

financial losses, damaged reputation) liable to result from

failure to comply with regulations governing banking and

financial activities.

At Crédit du Nord, the Corporate Secretary is Head of

Compliance; at its subsidiaries, the Head of the executive

body fulfils this role.

Crédit du Nord’s Head of Compliance reports to the

executive body where necessary, and provides a link with

the Compliance Committee of Société Générale Group, on

which he sits.

Crédit du Nord’s Compliance Committee has the following

duties:

– ensuring the effectiveness and consistency of the structure

and procedures relating to compliance;

– identifying new non-compliance risks;

– developing quantitative and qualitative indicators needed

to monitor anomalies;

– monitoring major anomalies and assessing the

effectiveness of corrective measures.

Crédit du Nord Group’s Management Committee, on which

the heads of the main subsidiaries sit, periodically reviews

progress on compliance issues.

Before being launched, each new product or significant

modification to an existing product is reviewed to make sure

the risks are properly identified and addressed. A written

opinion is then prepared by the Head of Compliance.

Management and the internal control teams are responsible

for controlling compliance.

The Heads of Compliance ensure that all employees

have access to the directives governing compliance with

regulations. They also see to it that the proper compliance

training initiatives are in place.

Guidelines stipulate the rules which apply to outsourced

banking and financial services.



III. ORGANISATION OF INTERNAL CONTROL

A member of the Executive Committee supervises a Legal

Affairs and Controls Division (DAJDC), whose scope

of authority covers Permanent Control, Periodic Control,

Compliance, Investment Services Compliance (RCSI), Ethics

and Anti-Money Laundering, and Legal Affairs and Disputes.

An Internal Control Coordination Committee (CCCI) meets

twice a year, under the authority of the Chairman and Chief

Executive Officer, and is comprised of the members of

the Executive Committee, the Heads of Periodic Control,

Permanent Control, Compliance, Operational Risks,

Information System Security, Ethics, RSCI and Anti-Money

Laundering.

Over the course of fiscal year 2009, the incident alert

system was expanded to meet new regulatory requirements

pertaining to the information of the Board of Directors and the

French Banking commission on the most serious incidents.

1- Permanent Control

The head of each entity or department must carry out a

Level One permanent control of transactions carried out

under his responsibility. Operating branches must adhere to

a predetermined plan (detailing frequency and risks to be

controlled), formalise certain controls performed. Specialist

supervisory staff also assist branches in the day-to-day

monitoring of accounts.

A Level Two permanent control is conducted by dedicated

personnel who report directly to the relevant Regional

Manager, Subsidiary Manager or Functional Division, and

report functionally to the Head of Permanent Control of Crédit

du Nord.

The scheduling and details of these controls are determined

by the Head of Permanent Control, in conjunction with the

Central Risk Division with respect to counterparty risk.

The Head of Permanent Control reports on his activities to

the General Management of Crédit du Nord.

1-1 Regional and subsidiary Level One and

Two administrative and accounting controls

The Line Management Control Manual defines day-to-day

security requirements covering, inter alia, reception desks,

the opening of mail and filing of documents, as well as a

limited number of controls that require formalisation at the

supervisory level (recognition of securities in branches,

sensitive procedures such as anti-money laundering, MiFID

compliance, etc.). These controls may be delegated on

the condition that each delegation of power is subject to

supervisory control.

Level Two controls are performed by dedicated personnel

who report directly to the Regional Manager or to the

Chairmen of the subsidiaries. These controls are performed

using specific «control forms» prepared with the Head of

Permanent Control, and according to a pre defined plan

which specifies the frequency of controls based on the

degree of risk that each procedure or transaction represents.

Level Two control teams consisted of 70 staff members at

end-December 2009.

Whenever an on-site control of a procedure is performed,

the procedure is rated for its degree of compliance with

applicable rules, using a software application. This allows the

Head of Permanent Control to map procedural compliance

at both a local and national level.

Following each of these assignments, the Periodic Control

department evaluates the control structures for the regions

in which the audited entities are based.

1- 2 Level One and Two risk controls of regions and

banking subsidiaries

Level One permanent controls are carried out at the regional

and subsidiary level by the sales management and by the

Risk Department of the region or subsidiary in question.

In accordance with the Line Management Control Manual,

the Branch or Business Centre Manager is responsible for

overseeing compliance with delegated limits and the validity

of loan decisions taken by subordinate staff to whom the

limits are assigned (customer advisers, etc.), as well as for

controlling any credit limit overruns at the branch or business

centre. These controls are performed monthly, are formalised

and may not be delegated.

As line manager, the Group Director receives the reports on

the Level Two controls. He assists the branches in preparing a

response to these reports and supervises the implementation

of the Auditors’ recommendations.

Regional or subsidiary Risk Divisions are responsible for

supervising limit overruns and the proper classification

of risks. They primarily ensure the appropriateness of

counterparty classification. They may decide to classify loans

as “performing loans under watch” or to reclassify them as

“doubtful” in the event loans are renewed, loans requests are

made in the interim or overruns are identified.



Level Two controls are performed by regional or subsidiary

Risk Controllers, as well as Central Risk Control. The Level

Two control unit consisted of 29 staff members at end-

December 2009.

The role of regional or subsidiary Risk Controllers is to

continuously ensure that loans classified as «performing

loans» merit their classification. They examine and monitor

“performing loans under watch” and “doubtful loans” for the

purpose of reclassifying them if necessary. They oversee the

proper application of rules relating to ratings.

The majority of their work is carried out with the help of

computer applications and the monthly delegated limit

reports. These controls can be performed on site or remotely.

During the course of on-site controls, Risk Controllers use

sampling tests to verify: the quality of branch risks; the

quality of risk management performed by operational staff,

with special attention given to monitoring procedures and

compliance with Level One control requirements.

1-3 Central Risk Control, under the DCR’s Control

and Provisioning Division, performs the

following duties:

– ensuring that the regions and subsidiaries apply the risk

management system defined by the Central Risk Division,

as defined in the Credit Policy Manual;

– controlling compliance with applicable rating rules;

– continuously overseeing counterparty risks remotely via

the centralised monitoring of limit overruns and deferred

settlement market (SRD) margin calls;

– performing on-site audits;

– conducting a quarterly analysis of changes in impaired

risks, with particular attention given to risks linked to

“performing loans under watch» and «doubtful loans».

Annual on-site audits conducted by the Control and

Provisioning Division include:

– audits of all loans approved by Regional Managers,

Chairmen of subsidiaries and/or regional or subsidiary

Risk Managers. Of these loans, a sample of 20 to 40

(maximum), with an emphasis on business loans, is

taken and examined for the appropriateness of the credit

decisions, with an effort to avoid duplicating any controls

performed by the regions or subsidiaries;

– the entity’s risk monitoring system established by the Risk

Department;

– the audit of the appropriateness of risk classifications,

particularly in respect of loans classified as «performing

loans under watch» or «doubtful loans», and of their

management (Branch, Out-of-Court Collection, Special

Regional Affairs, Special Head Office Affairs).

Moreover, the analysis of changes in risks and, more

particularly, in impaired risks linked to “performing loans

under watch”, “doubtful loans”, “non-performing loans” and

“disputed loans” throughout Crédit du Nord Group is used to

compile a summary report by region, subsidiary and market.

Monitoring of these changes and in the associated level of

provisioning is performed by Central Risk Control, mainly

during the half-yearly reviews of impaired risks.

1-4 Level One and Two controls of functional

divisions and specialised subsidiaries

Certain functional divisions, including Financial Affairs

(DAF), Finance, Banking Operations, Wealth and Asset

Management (DPGA, which mainly oversees discretionary

private banking), and Information Systems and Projects,

have their own Level Two Controllers who report directly

to the Head of the Division (exceptionally, the controllers

of the Financial Affairs and Wealth and Asset Management

Divisions report directly to Crédit du Nord’s RSCI), and report

functionally to the Head of Permanent Control.

The same is true for specialised subsidiaries Étoile Gestion

and Gilbert Dupont (Crédit du Nord’s brokerage firm), as

well as for the fixed income and foreign exchange activity

(Treasury and Foreign Exchange Division), which is part of

the Finance Division.

In 2009, two controllers reporting to the Head of Permanent

Control came to support the functional divisions without

Level Two controllers.

At end-December 2009, there were 19 such controllers.

Internal control at Norfinance Gilbert Dupont, which is

coordinated by the Financial Affairs Division, is carried out by

the Administrative Controller of the Nord Métropole region,

and by the Wealth and Asset Management Division for

private banking.

The size of the specialised subsidiary sometimes means

that its senior director carries out these controls (e.g. Norbail

Immobilier and Norbail Sofergie).

In other cases, internal control is outsourced. Starlease

subcontracts internal control to Franfinance, while the

internal control of Antarius is outsourced to Crédit du Nord’s

insurance partner, Aviva.



1-5 Permanent Control Committee

A Permanent Control Committee meets twice a year in the

presence of the Chairman and Chief Executive Officer. It

comprises the Heads of Permanent Control, the Central Risk

Division, Compliance, Periodic Control, the CFO, the Head

of Information Systems, Projects and Banking Operations

(DSIP) and the Head of DAJDC.

The Committee’s role is to ensure the consistency and

effectiveness of the Permanent Control system. It examines

the summary of the main observations presented by the

division heads involved in the Group’s Permanent Control

system; analyses and assesses any significant anomalies

identified by the various internal or external audit teams; and

is informed of the progress on the correction of anomalies

selected.

2- Periodic Control System

Crédit du Nord Group’s Periodic Control system covers all

Crédit du Nord Group activities.

The number of staff members dedicated to periodic controls

was unchanged at end-December 2009 (22 people) and

mainly included university graduates, supervised by senior

inspectors with experience in risk controls and administrative

and accounting countries, all of whom are supervised by

a member of the General Management. An audit leader

specialising in IT provides support where needed or

conducts targeted inspections of the central or decentralised

IT systems or payment systems.

The Head of Periodic Control reports on his activities to

the General Management of Crédit du Nord, mainly during

meetings of the Periodic Control Committee (two of which

were held in 2009), the annual Audit Committee meeting held

in the presence of the Head of Group Internal Audit of Société

Générale, and meetings of the Internal Control Coordination

Committee (two of which were held in 2009).

He is placed under the functional authority of the Head of

Group Internal Audit of Société Générale and under the

hierarchical authority of the Head of the Legal Affairs and

Controls Division (DAJDC) of Crédit du Nord, which ensures

that the Head of Periodic Control operates independently

from those structures on which it conducts its assignments.

The various entities in the operating network are controlled

approximately once every five years, depending on the

priorities established by the General Management and any

audits performed by the shareholder.

These audits conform to written procedure and are based

upon a pre-selection of loans to be audited on-site. They are

broken down into three phases: pre-audit, on-site audit and

audit report.

The Periodic Control Department analyses the administrative

and accounting operations of the audited entities, as well

as their exposure to different types of risk (notably to

counterparty risk). These audits also cover Basel II regulations

pertaining to counterparty and operational risks.

It also assesses the quality of Level One and Two controls

and carries out audits of Head Office divisions or on specific

topics chosen by the General Management.

Audits of specialised entities often involve a preliminary

learning phase, which can lead the General Management to

make use of the specialised audits conducted by the majority

shareholder.

The reports prepared upon completion of the audits are

directly submitted to the General Management by the Head

of Periodic Control.

Monitoring of the implementation of recommendations

appearing in the reports is carried out by the Head of

Permanent Control, under the authority of the Head of

Periodic Control, in accordance with procedures which were

enhanced in 2008.

3- Ethics and Investment Service Compliance

Under the authority of DAJDC, this Division ensures that the

rules of professional conduct governing relations between

the Bank, its employees and its customers are well defined,

understood and observed.

Banking and financial compliance guidelines that all staff

must adhere to are outlined in a specific appendix to the

company bylaws, which are distributed to all staff. Added to

these principles are a number of specific measures relating

to certain activities (e.g. discretionary portfolio managers).

In addition to compliance with AMF regulations, and in

particular principles of organisation and rules of professional

conduct defined in Book III of the General Regulations of the

AMF, this Division is also in charge of anti-money laundering

and anti-terrorism financing procedures.

Anti-money laundering is essentially based on knowledge

of the Bank’s customers, vigilance in the processing of

transactions (blacklists of countries and individuals), specific

monitoring of certain payment instruments (cheques,

electronic payments) and the flagging of isolated transactions

or a series of transactions by a single customer.

The decree of January 31, 2009, which transposed the third

European anti-money laundering and terrorism financing

directive into French law, was addressed in an internal

directive and, from September 2009, in a training course

provided to all relevant staff.

This decree enhanced KYC requirements in the onboarding

process, and in the event unusual activity is detected at the



central level, and calls for the supervision of certain risky

customers or transactions by the branches.

Each of the Group’s legal entities nevertheless has a Tracfin

agent in charge of declarations of suspicious activity for his

entity, and a Head of Investment Service Compliance.

IV. PRODUCTION AND CONTROL

OF FINANCIAL AND MANAGEMENT

ACCOUNTING DATA

The Chief Financial Officer, who reports directly to the

Chairman and Chief Executive Officer and is a member of

the Executive Committee, is responsible for the production

and control of financial and management accounting data.

As such, he oversees the proper application of

applicable accounting rules and guidelines, and monitors

recommendations issued by the Statutory Auditors.

1- Production of accounting data

1-1 Role of the Accounting and Summary

Information Department (DCIS)

This department, under the authority of the CFO, fulfils two

major roles

– accounting structure and procedures: a centralised

definition for the whole of Crédit du Nord Group of a set

of accounting rules conforming to current accounting

regulations, including the definition of accounting

frameworks and procedures, the management of the

internal charts of accounts and the definition of parameters

by type of report, etc.;

– production and analysis of accounting and financial

reports: preparation of the individual company and

consolidated financial statements for Crédit du Nord

Group, preparation of regulatory status reports for the

various supervisory authorities (Banque de France, French

Banking Commission, etc.).

1-2 Accounting information system

Crédit du Nord’s information system is a multi bank network:

all seven Group banks are managed on the same information

network.

As such, they share the same processing systems for banking

transactions and the same summary reporting systems.

The summary system for accounting production is comprised

of the Benchmark Summary Database (BSR), which is

supplied daily with accounting entries from the different

operating systems. The BSR data is then transferred to the

end-of-month balance database (inventories): the Expanded

Benchmark Summary Database (BSRE), which includes

non-accounting data from repositories (e.g. economic agent

code, residence code, etc.) or from operating systems (e.g.

duration, interest rates, etc.).

At the hub of Crédit du Nord Group’s summary system, the

BSRE is notably used to:

– provide data for all accounting and tax-related reports;

– prepare the different regulatory reports (BAFI, Cofinrep,

etc.);

– provide data for risk drivers in the Basel II ratio

determination process, thus ensuring «native» accounting

consistency.

This unified IT architecture shared by all Group banks is

instrumental in improving accounting consistency throughout

the Group. DCIS oversees the definition and validity of

accounting rules and procedures, from the point of input to

the preparation of the financial statements.

– the accounting treatment of Group-wide transactions

is based on automated procedures. Regardless of

whether the accounting frameworks are defined at the

accounting user level (over two-thirds of book entries) or

defined automatically by operating system software, all

accounting procedures have been defined, tested and

approved by DCIS.

Manual entries, which are limited and on the decline, are

subject to restrictive authorisations and numerous controls.

– accounting databases are interfaced to automatically

input data into the consolidation packages and reports

intended for the French Banking Commission and the

Banque de France.

1-3 Production of accounting data

Preparation of individual financial statements and

individual consolidation packages

The figures presented in regulatory reports and individual

consolidation packages are pre-estimated using parameters

managed centrally by DCIS.

Each “controlled” entity (using the same accounting

information system) then records all non-automated items

at the balance sheet date (representing a very low volume

of entries).

Finally, each entity controls, analyses and records, where

applicable, the adjustment accounting entries for all financial

reports.



Once approved, the entities transmit the regulatory reports

to the supervisory authorities and the individual financial

statements are published.

All “non-controlled” entities transmit consolidation packages

as produced by their internal accounting systems, in

accordance with the Group’s rules and procedures,

in addition to the regulatory reports transmitted to the

supervisory authorities.

The consistent application of accounting principles and

methods is ensured by meetings organised by DCIS with

the accounting managers of the Group’s companies in order

to present and comment on current accounting issues as

well as any account-closing decisions made by the Group.

This frequent contact ensures that the key points of each

account closing have been integrated and interpreted by

each company within the Group.

Account consolidation process

This phase culminates with the production of the consolidated

financial statements, used for Group management, legal and

regulatory publications as well as shareholder reports.

During this phase, individual consolidation packages from

Group companies are controlled and approved, consolidation

entries are booked and intercompany eliminations are

recognised. The consolidated financial statements are then

analysed and approved before they are released internally and

externally. The majority of these operations are performed on

a monthly basis, which increases the reliability of the process.

Group tax consolidation and reporting are also carried out

during this phase.

2- Internal accounting control

2-1 At the network branch level

The day-to-day monitoring of accounts is carried out by staff

at the banking services divisions for the branches and by staff

at the business assistance units for the business centres.

They use a day-to-day account monitoring application

developed and maintained by DCIS, which identifies

accounts requiring further examination (balance or directional

anomalies, failure to comply with regulatory thresholds,

manual entries).

The formalised and reported Level One control to ensure

that this monitoring is property performed is carried out by

the Line Manager of the staff in charge of monitoring the

accounts.

The Level Two control is conducted quarterly by the regional

and subsidiary Permanent Control departments.

2-2 At the Head Office division levelge

Each Head Office division is responsible for overseeing

accounting operations within its entity. The monitoring of

accounts is performed daily by division staff, who also use

the day-to-day account monitoring application. A Level One

supervisory control is performed. The finalization of this

control will be formalised in 2010.

The Level Two control is performed annually by the Permanent

Control department of the Head Office; the application of this

procedure to all Head Office Divisions will be completed in

2010.

2-3 Control of preparation of individual and

consolidated financial statements

The process of consolidating accounting data and preparing

consolidated financial statements is subject to several types

of control.

Control of data input:

The software used to generate the consolidated reports

includes configurable data consistency tests.

As long as the reporting company has not satisfied control

requirements, it may not transmit accounting information to

DCIS.

Once received, the consolidation packages sent by each

consolidated company are analysed, corrected as necessary,

and approved, notably with the help of tests for consistency

with preceding monthly reporting packages and budgets,

where available, and with unusual events for the month.

Entries specific to consolidation are then recorded.

Lastly, DCIS performs a variation analysis of consolidated

statements, focusing primarily on changes in equity levels.

Control of consolidation tools:

A Group chart of accounts specific to consolidation is

managed by DCIS and aids in breaking down information to

improve analysis.

Careful attention is paid to the configuration of the

Group consolidation system, and the various automated



consolidation processes are subject to validations and

controls.

Lastly, the automation of the monthly consolidated reporting

process in itself helps to control changes in data over time

and the understanding of any problems as they arise.

All of these controls help guarantee the quality of accounting

documents.

Accounting controls:

The purpose is to ensure the quality of accounting document

preparation by setting up a certification process.

To this end, Société Générale has launched an «accounting

control process management» project, drawing on the

lessons of a SOX-type approach.

The aim of this approach is to provide Société Générale

Group with a consolidated view of accounting controls in

order to:

– enhance the accounting control system;

– ensure the quality of the financial statement preparation

process and of the accounting and financial information

published (certification process).

– meet the request issed by the Group’s Audit Committee.

Crédit du Nord Group is taking part in this project.

2-4 Organisation established to guarantee the

quality and reliability of the audit trail

The audit trail is present from the beginning to the end of

the information chain at Crédit du Nord Group. Given the

complexity of different banking systems and data production

circuits, this trail is comprised of various tools interconnected

by references which are representative of search keys.

It is defined by procedures established at each phase of the

data production circuit.

The audit trail is organised to be able to optimally respond

to different types of search queries. In fact, a different tool

is used depending on whether the user wishes to locate a

specific event or to recreate the production of a regulatory

filing comprised of a large number of accounting entries and

requiring the tracking of reference tables.

The tools used by Crédit du Nord Group include:

– a search application ranging from Event Reports (CREs)

to accounting entries with an audit trail at the accounting

user level,

– accounting database search engines (accounting flows

and balances),

– search engines that work within report preparation

applications (regulatory reporting software, consolidation

software, etc.).

Furthermore, the accounting documents used to monitor

and control accounting operations are archived for durations

set forth by legal and contractual texts.

2-5 Isolation and monitoring of assets held for

third parties

As an investment service provider with custody of customer

assets, Crédit du Nord is required

– to protect the rights of its customers to the financial

instruments belonging to them,

– to prevent their use for proprietary purposes, barring

customer approval.

Monitoring and management of assets held for third parties

over the long term are separate from proprietary activities and

are handled by separate departments and accounts.

IT authorisations for the applications used for both activities

are restricted and separate, thus facilitating their separate

management.

The Statutory Auditors issue an annual report on the

measures taken by the Group to ensure the protection of

customer assets.

3- Preparation and control of financial

and management accounting data

3-1 Production of financial and management

accounting data

Crédit du Nord Group bases its financial management on

financial accounting data.

Analytical accounting data needed for the financial

management of Crédit du Nord Group are generated by

the accounting information system and operating systems,

which are able to break down data by item and by entity. This

information is stored in a unified management database,

which covers Crédit du Nord and its six banking subsidiaries.

The Financial Management Division (DGF), placed under the

authority of the CFO, manages the integration of general

accounting data into the analytical accounting items on the

basis of the rules defined by the unit in charge of Group ALM

and the match-funding of assets and liabilities.The analytical

accounting system enables a switch from an interest paid/

received view to an analytical approach in terms of margins

on notional match-funding.



Information from the management database is accessible

from the branch level up to the Group level and is identical

from one level to the next. As a result, the data can be

used by all Crédit du Nord Group management control

teams, including subsidiaries, regional divisions, functional

departments and the Financial Management Division, which

use this information in particular to prepare the half-yearly

management report.

3-2 Verification of financial and management

information

Financial and management accounting data is controlled

during the monthly data entry process by checking that all

balance sheet, income statement and operating system data

gathered by the Group have been properly integrated into

the analytical framework. Variations in totals and material

movements are systematically analysed. Downstream of

the process, a monthly reconciliation is also performed

by comparing the financial accounting figures with the

management reporting figures.

Budgets are monitored, in the presence of the General

Management, three times a year: twice in the first half, during

the Regional Board Meetings of the Group’s regions and

subsidiaries, and once in the third quarter during the budget

meeting. These meetings, which are systematically attended

by the Deputy Chief Executive Officer or the Head of the

DGF, review the change in net banking income, operating

expenses, investments and the main risk indicators.

A Cost Monitoring Committee, which includes the

Chairman and Chief Executive Officer and the head-office

divisional managers, meets four times during the course of

the year. A DGF executive reviews the change in network

operating expenses.

An IT Project Monitoring Committee meets quarterly with

the Chairman and Chief Executive Officer in order to examine

the progress of projects and their financial impact on budgets

and medium-term planning.

Chairman of the Board of Director

Jean-François SAMMARCELLI


2 I Consolidated fi nancial statements IReport of the Statutory Auditors on the Chairman’s Report on Internal Control and Risk Management

�Report of the Statutory Auditors

on the Chairman’s Report on Internal Control

and Risk ManagementFiscal year ended december 31, 2009

This is a free translation into English of a report issued in French and it is provided solely for the convenience of English

speaking users. This report should be read in conjunction with and construed in accordance with French law and professional

standards applicable in France.

Information on internal control and risk management procedures relating to the preparation and processing

of accounting and financial information

The professional standards require that we perform the necessary procedures to assess the fairness of the information

provided in the Chairman’s report in respect of the internal control and risk management procedures relating to the preparation

and processing of the accounting and financial information. These procedures consist mainly in:

� obtaining an understanding of the internal control and risk management procedures relating to the preparation and

processing of the accounting and financial information on which the information presented in the Chairman’s report is

based and of the existing documentation;

� obtaining an understanding of the work involved in the preparation of this information and of the existing documentation;

� determining if any material weaknesses in the internal control procedures relating to the preparation and processing of

the accounting and financial information that we would have noted in the course of our work are properly disclosed in the

Chairman’s report.

Statutory auditors’ report, prepared in accordance with article L. 225-235 of the French Commercial Code (Code de commerce), on the report prepared by the Chairman of the Board of Directors of Crédit du Nord

To the Shareholders,

In our capacity as statutory auditors of Crédit du Nord and in accordance with article L. 225-235 of the French Commercial

Code (Code de commerce), we hereby report on the report prepared by the Chairman of your company in accordance with

article L. 225-37 of the French Commercial Code (Code de commerce) for the year ended December 31, 2009.

It is the Chairman’s responsibility to prepare and submit for the Board of Directors’ approval a report on internal control and

risk management procedures implemented by the company and to provide the other information required by article L. 225-37

of the French Commercial Code (Code de commerce) relating to matters such as corporate governance.

Our role is to:

– report on any matters as to the information contained in the Chairman’s report in respect of the internal control and risk

management procedures relating to the preparation and processing of the accounting and financial information,

– confirm that the report also includes the other information required by article L. 225-37 of the French Commercial Code

(Code de commerce). It should be noted that our role is not to verify the fairness of this other information.

We conducted our work in accordance with professional standards applicable in France


I Consolidated fi nancial statements IReport of the Statutory Auditors on the Chairman’s Report

on Internal Control and Risk Management

On the basis of our work, we have no matters to report on the information relating to the company’s internal control and risk

management procedures relating to the preparation and processing of the accounting and financial information contained in

the report prepared by the Chairman of the Board of Directors in accordance with article L. 225-37 of the French Commercial

Code (Code de commerce).

Neuilly-sur-Seine, April 9, 2010

The Statutory Auditors

French original signed by:

DELOITTE & ASSOCIES ERNST & YOUNG et Autres

Jean-Marc MICKELER Bernard HELLER

Other disclosures

We confirm that the report prepared by the Chairman of the Board of Directors also contains the other information required by

article L. 225-37 of the French Commercial Code (Code de commerce).


2 I Consolidated fi nancial statements IConsolidated balance sheet

� Consolidated balance sheet

Z Assets

(in EUR millions) Notes 31/12/2009 31/12/2008

Cash, due from central banks 4 958.1 684.0

Financial assets measured at fair value through profit or loss 5 1,305.0 1,483.5

Hedging derivatives 6 274.5 213.3

Available-for-sale financial assets 7 5,698.1 5,657.0

Due from banks 8 3,500.5 5,390.0

Customer loans 9 23,476.5 23,769.7

Lease financing and similar agreements 10 1,859.2 1,836.0

Revaluation differences on portfolios hedged against interest rate risk 161.0 155.7

Held-to-maturity financial assetsv 11 58.2 59.4

Tax assets 12 190.4 313.4

Other assets 13 527.3 628.1

Non-current assets held for sale - -

Deferred profit sharing 23 - 60.1

Investments in subsidiaries and affiliates accounted for by the equity

method 7.4 10.4

Tangible and intangible fixed assets 14 436.3 426.5

Goodwill 15 53.8 53.8

TOTAL 38,506.3 40,740.9


I Consolidated fi nancial statements IConsolidated balance sheet

Z Liabilities


Due to central banks 2.2 1.8

Financial liabilities at fair value through profit or loss 5 695.1 677.8

Hedging derivatives 6 316.7 282.8

Due to banks 17 3,552.0 3,988.3

Customer deposits 18 18,314.6 19,478.4

Debt securities 19 7,345.1 8,893.0

Revaluation differences on portfolios hedged against interest rate risk 35.2 18.5

Tax liabilities 12 469.1 439.2

Other liabilities 13 989.3 972.6

Liabilities linked to non-current assets held for sale - -

Underwriting reserves of insurance companies 23 3,840.1 3,260.2

Provisions 16 148.0 145.0

Subordinated debt 22 634.6 670.5

TOTAL DEBT 36,342.0 38,828.1

Subscribed capital 740.3 740.3

Equity instruments and associated reserves 124.6 117.3

Retained earnings 882.3 759.8

Net income 347.9 252.7

Sub-total 2,095.1 1,870.1

Gains or losses booked directly to equity 24 12.2 -7.7

Sub-total equity, Group share 2,107.3 1,862.4

Minority interests 57.0 50.4

TOTAL SHAREHOLDERS’ EQUITY 2,164.3 1,912.8

TOTAL 38,506.3 40,740.9


2 I Consolidated fi nancial statements IConsolidated income statement

� Consolidated income statement

(in EUR millions) Notes 2009 2008

% change

2009/2008

Interest and similar income 29 1,607.6 1,918.5 -16.2

Interest and similar expenses 29 -797.7 -1,132.1 -29.5

Dividend income 3.9 16.6 -76.5

Commissions (income) 30 879.5 900.7 -2.4

Commissions (expenses) 30 -116.6 -186.7 -37.5

Net gains or losses on financial transactions 3.8 16.3 -76.7

o/w net gains/losses on financial instruments at fair value

through profit or loss 31 -13.2 11.5 -

o/w net gains/losses on available-for-sale financial assets 32 17.0 4.8 -

Income from other activities 33 18.5 25.3 -26.9

Expenses from other activities 33 -19.2 -14.7 30.6

Net banking income 28 1,579.8 1,543.9 2.3

Personnel expenses 34 -634.9 -617.5 2.8

Taxes -30.9 -29.0 6.6

Other expenses 35 -304.8 -310.4 -1.8

Amortisation and depreciation and impairment of intangible

and tangible fixed assets 36 -75.2 -74.6 0.8

Total operating expenses -1,045.8 -1,031.5 1.4

Gross operating income 534.0 512.4 4.2

Cost of risk 37 -207.8 -132.0 57.4

Operating income 326.2 380.4 -14.2

Net income from companies accounted for by the equity

method 38 3.1 2.1 47.6

Net income/expenses from other assets 39 130.7 - -

Impairment losses on goodwill - - -

Earnings before tax 460.0 382.5 20.3

Income tax 40 -102.1 -123.3 -17.2

Consolidated net income 357.9 259.2 38.1

Minority interests 41 10.0 6.5 53.8

CONSOLIDATED NET INCOME 347.9 252.7 37.7

Consolidated net earnings per share (in EUR) 3.76 2.73

Number of shares making up the company’s capital 92,532,906 92,532,906


I Consolidated fi nancial statements IConsolidated income statement

Z Statement of net income and gains and losses booked directly to equity *

(in EUR millions) 2009 2008


Translation gain (loss) - -

Revaluation of available-for-sale assets 33.9 -71.0

Revaluation of derivatives qualified as cash flow hedges - -

Share of gains or losses booked directly to equity from companies accounted for

by the equity method - -

Taxes -14.2 20.7

Total gains or losses booked directly to equity 19.7 -50.3

NET INCOME AND GAINS AND LOSSES BOOKED DIRECTLY TO EQUITY 377.6 208.9

of which Group share 367.8 202.2

of which minority interests 9.8 6.7

* See Note 24.


2 I Consolidated fi nancial statements IChange in shareholders’ equity

� Change in shareholders’ equity

(in EUR millions)

Capital and associated reserves

Retained

earnings

Gains and losses booked

directly to equity

Share-

holder’s

equity

Group

share

Share-

holder’s

equity

Minority

interests

Total

consoli-

dated

share-

holder’s

equity

Common

stocks

Equity instr.

& associated

reserves

Elimination

of treasury

stock

Retained

earnings

Change in

fair value

of avalaible

for sale

assets

Change in

fair value

of hedging

derivatives

Deferred

tax on

change in

fair value

SHAREHOLDERS’

EQUITY AT DECEMBER

31, 2007 740.3 110.4 - 949.0 43.9 - -1.1 1,842.5 47.7 1,890.2

Increase in common stock - -

Elimination of treasury

stock - -

Issuance of equity

instruments - -

Equity component of

share-based payment

plans 7.4 7.4 7.4

2008 dividends paid -189.7 -189.7 -4.0 -193.7

Impact of acquisitions

and disposals on minority

interests - -

Sub-total of changes

linked to relations with

shareholders - 7.4 - -189.7 - - - -182.3 -4.0 -186.3

Changes in value of

financial instruments

having an impact on

shareholders’ equity -71.2 -71.2 0.2 -71.0

Changes in value of

financial instruments as a

percentage of income - -

Tax impact of change

in value of financial

instruments having an

impact on shareholders’

equity or as a % of income 20.7 20.7 20.7

2008 net income 252.7 252.7 6.5 259.2

Sub-total - - - 252.7 -71.2 - 20.7 202.2 6.7 208.9

Change in equity of

associates and joint

ventures accounted for by

the equity method - -

Translation differences and

other changes -0.5 0.5 - -

Sub-total - -0.5 - 0.5 - - - - - -

SHAREHOLDERS’

EQUITY AT

DECEMBER 31, 2008 740.3 117.3 - 1,012.5 -27.3 - 19.6 1,862.4 50.4 1,912.8


I Consolidated fi nancial statements IChange in shareholders’ equity

(in EUR millions)

Capital and associated reserves

Retained

earnings

Gains and losses booked

directly to equity

Share-

holder’s

equity

Group

share

Share-

holder’s

equity

Minority

interests

Total

consoli-

dated

share-

holder’s

equity

Common

stocks

Equity instr.

& associated

reserves

Elimination

of treasury

stock

Retained

earnings

Change in

fair value

of avalaible

for sale

assets

Change in

fair value

of hedging

derivatives

Deferred

tax on

change in

fair value

SHAREHOLDERS’

EQUITY AT DECEMBER

31, 2008 740.3 117.3 - 1,012.5 -27.3 - 19.6 1,862.4 50.4 1,912.8

Increase in common stock - -

Elimination of treasury

stock - -

Issuance of equity

instruments - -

Equity component of

share-based payment

plans 6.6 6.6 6.6

2009 dividends paid -129.5 -129.5 -3.2 -132.7

Impact of acquisitions

and disposals on minority

interests - -

Sub-total of changes

linked to relations with

shareholders - 6.6 - -129.5 - - - -122.9 -3.2 -126.1

Changes in value of

financial instruments

having an impact on

shareholders’ equity 34.1 34.1 -0.2 33.9

Changes in value of

financial instruments as a

percentage of income - -

Tax impact of change

in value of financial

instruments having an

impact on shareholders’

equity or as a % of income -14.2 -14.2 -14.2

Translation differences and

other changes 0.7 -0.7 - -

2009 net income 347.9 347.9 10.0 357.9

Sub-total - 0.7 - 347.2 34.1 - -14.2 367.8 9.8 377.6

Change in equity of

associates and joint

ventures accounted for by

the equity method - -

Sub-total - - - - - - - - - -

SHAREHOLDERS’

EQUITY AT

DECEMBER 31, 2009 740.3 124.6 - 1,230.2 6.8 - 5.4 2,107.3 57.0 2,164.3


2 I Consolidated fi nancial statements IChange in shareholders’ equity

Z Basel II prudential capital

At end-2009, total prodential capital stood at EUR 1,489.3 millions.

(in EUR millions) 31/12/2009 31/12/2008

BOOK SHAREHOLDERS' EQUITY, GROUP SHARE 2,107.3 1,862.4

Estimate of provisional dividends -323.9 -129.5

Minority interests 57.0 50.4

Estimate of provisional dividends of minority interests -4.8 -

Prudential deductions (1) -221.3 -202.4

PRUDENTIAL CORE CAPITAL 1,614.3 1,580.9

Basel II deductions (2) -192.0 -112.2

TIER ONE CAPITAL 1,422.3 1,468.7

Supplementary capital 401.4 474.5

Other deductions -334.4 -254.6

PRUDENTIAL CAPITAL 1,489.3 1,688.6

(1) Goodwill, intangible fixed assets and IFRS prudential filters.

Unaudited information pertaining to Pillar 3 under Basel II regulations applicable to Crédit du Nord Group is available

at www.groupe.credit-du-nord.com.


I Consolidated fi nancial statements IStatement of cash fl ows

� Statement of cash flows

(in EUR millions) 31/12/2009 31/12/2008

NET CASH INFLOW/OUTFLOW RELATED TO OPERATING ACTIVITIES

Net income (I) 357,9 259,2

Amortisation expense on tangible and intangible fixed assets 76,7 75,7

Net allocation to provisions (including underwriting reserves of insurance companies)* 519,4 336,9

Net income/loss from companies accounted for by the equity method -3,1 -2,1

Deferred taxes 58,6 99,2

Net income from the sale of long-term available-for-sale assets and consolidated subsidiaries -130,7 -0,1

Change in deferred income 5,2 6,8

Change in prepaid expenses 9,1 -18,9

Change in accrued income 82,3 -21,8

Change in accrued expenses -148,0 8,0

Other changes (mainly adjustment in the value investments held to guarantee unit-linked policies 9,8 80,3

Non-monetary items included in net income and other adjustments (not including income on

financial instruments measured at fair value through profit or loss) (II) 479,3 564,0

Net income on financial instruments measured at fair value through profit or loss (III) 13,2 -11,5

Interbank transactions 1 959,1 -472,2

Transactions with customers -1 018,2 -245,3

Transactions related to other financial assets and liabilities -695,3 -433,1

Transactions related to other non-financial assets and liabilities 16,0 -157,8

Net increase/decrease in cash related to operating assets and liabilities (IV) 261,6 -1 308,4

NET CASH INFLOW/OUTFLOW RELATED TO OPERATING ACTIVITIES (A)=(I)+(II)+(III)+(IV) 1 112,0 -496,7

NET CASH INFLOW/OUTFLOW RELATED TO INVESTMENT ACTIVITIES

Cash flow/outflow related to acquisition and disposal of financial assets and long-term investments -16,9 -172,2

Tangible and intangible fixed assets -83,4 -77,2

NET CASH INFLOW/OUTFLOW RELATED TO INVESTMENT ACTIVITIES (B) -100,3 -249,4

NET CASH INFLOW/OUTFLOW RELATED TO FINANCING ACTIVITIES

Cash flow from/to shareholders -132,7 -193,7

Other net cash flows arising from financial activities -45,8 -2,0

NET CASH INFLOW/OUTFLOW RELATED TO FINANCING ACTIVITIES (C) -178,5 -195,7

NET INFLOW/OUTFLOW IN CASH AND CASH EQUIVALENTS (A) + (B) + (C) 833,2 -941,8

CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the start of the year

Net balance of cash accounts and accounts with central banks (excluding related receivables) 680,5 1352,9

Net balance of accounts, demand deposits and loans with banks 370,0 639,4

Cash and cash equivalents at the close of the year

Net balance of cash accounts and accounts with central banks (excluding related receivables) 954,7 680,5

Net balance of accounts, demand deposits and loans with banks 929,0 370,0

NET INFLOW/OUTFLOW IN CASH AND CASH EQUIVALENTS 833,2 -941,8

* Amounts reclassified with respect to the financial statements published at December 31, 2008: the value adjustments to investments carried out for unit-linked insurance policies

were reclassified under «Net allocation to provisions and impairment».


2 I Consolidated fi nancial statements INotes to the consolidated fi nancial statements

� Notes to the consolidated financial statements

CONTENTS

Note 1 Principles and methods of consolidation,

accounting principles 55

Note 2 Consolidation scope 76

Note 3 Risk management 78

Note 4 Cash, due from central banks 89

Note 5 Financial assets at fair value through

profi t or loss 90

Note 5 bis Financial liabilities at fair value through

profi t or loss 91

Note 6 Hedging derivatives 92

Note 7 Available-for-sale assets 92

Note 8 Due from banks 94

Note 9 Customer loans 95

Note 10 Lease fi nancing and similar agreements 97

Note 11 Held-to-maturity fi nancial assets 98

Note 12 Tax assets and liabilities 99

Note 13 Other assets and liabilities 99

Note 14 Fixed assets 100

Note 15 Goodwill 102

Note 16 Summary of depreciations 102

Note 17 Due to banks 103

Note 18 Customer deposits 104

Note 19 Securitised debt repayables 104

Note 20 PEL/CEL mortgage saving accounts 105

Note 21 Employee benefi ts 106

Note 22 Subordinated debt 110

Note 23 Insurance activities 111

Note 24 Gains and losses booked directly to equity 113

Note 25 Assets and liabilities by period remaining

to expiration 114

Note 26 Commitments 115

Note 27 Foreign exchange transactions 117

Note 28 Net Banking income 117

Note 29 Interest and similar income 118

Note 30 Commissions 119

Note 31 Net income and expense from fi nancial

instruments at fair value through profi t or loss 120

Note 32 Net gains or losses on available-for sale

fi nancial assets 120

Note 33 Income and expenses from other activities 121

Note 34 Frais de personnel 121

Note 35 Others charges 126

Note 36 Provisions, impairment and depreciation

of tangible and intangible fi xed assets 127

Note 37 Cost of risk 127

Note 38 Income from companies accounted for

by the equity method 128

Note 39 Net gains or losses on other assets 128

Note 40 Income tax 128

Note 41 Minority interests 129

Note 42 Statement of fair value 130

Note 43 Transactions with related parties 130

Note 44 Contribution to net income by business

line and company 132

Note 45 Activities of subsidiaries and affi liates 133


I Consolidated fi nancial statements INotes to the consolidated fi nancial statements

� Note 1 Principles and methods of consolidation, accounting principles

MAIN RULES FOR EVALUATING AND PRESENTING THE CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to European Regulation No. 1606/2002 of July 19,

2002 concerning the application of International Accounting

Standards, the consolidated financial statements of Crédit du

Nord Group (“the Group”) for the year ended December 31,

2009, were prepared in compliance with IFRS (International

Financial Reporting Standards) as adopted by the European

Union and in force at said date (the IFRS are available on

the website of the European Commission at the following

address:

http://ec.europa.eu/internal_market/accounting/

ias_fr.htm#adopted-commission.

The Group is fully subject to these standards as it regularly

issues redeemable subordinated notes which are admitted

to trading on the primary market.

The IFRS framework includes IFRS (International Financial

Reporting Standards) 1 to 8 and IAS (International Accounting

Standards) 1 to 41, as well as the interpretations of these

standards as adopted by the European Union at December

31, 2009.

The Group also made use of the provisions of IAS 39, as

adopted by the European Union, relating to macro fair value

hedge accounting (IAS 39: “carve out”).

The consolidated financial statements are presented in euros.

The principal valuation and presentation rules applied during

the preparation of the consolidated financial statements are

indicated below.

Excluding the application of the new standards and

amendments described below, these principles and

accounting methods were applied consistently in 2008 and

2009.

Z Use of estimates

In drawing up the consolidated financial statements, the

application of the accounting principles and methods

described below leads Management to develop assumptions

and make estimates which may have an impact on the

amounts booked to the income statement, on the valuation

of balance sheet assets and liabilities, and on the disclosures

presented in the notes to the consolidated financial

statements.

In order to make these estimates and develop these

assumptions, Management uses data available at the

date on which the consolidated accounts were prepared

and may be called upon to use its own judgement. By

nature, the valuations based on these estimates contain

risks and uncertainties regarding their materialisation in

the future, particularly in light of the financial crisis which

developed in 2008. Consequently, the final future results

of the transactions in question may be different from these

estimates and therefore have a significant impact on the

financial statements.

The use of estimates primarily concerns the following

valuations:

� the fair value on the balance sheet of financial instruments

not listed on an active market, recorded in «Financial

assets or liabilities at fair value through profit or loss»,

«Hedging instruments» or «Available-for-sale financial

assets» (see Notes 5 to 7), and the fair value of unlisted

instruments for which this information must be presented

in the notes to the financial statements;

� the amount of depreciation of “Loans and receivables”,

“Available-for-sale financial assets”, “Held-to-maturity

financial assets”, lease financing and similar agreements,

tangible and intangible assets, and goodwill (see Note 16);

� provisions recorded on the liabilities side of the balance

sheet, including provisions for employee benefits and

underwriting reserves of insurance companies (see Notes

21 and 23);

� the initial value of goodwill recognised for business

combinations (see Note 15).

Z Segment reporting

Given that insurance and intermediation activities are non-

material in relation to banking activities, Crédit du Nord Group

only reports on one business segment. Similarly, as Crédit

du Nord Group is a national banking group, it only reports on

one geographic segment



Z IFRS and IFRIC interpretations applied by the Group as from January 1, 2009

Standards and interpretations Date of publication by IABS Date of adoption by European Union

IFRIC 11 " IFRS 2 - Group and treasury share transactions" November 2, 2006 June 1, 2007

IFRS 8 "Operating segments" November 30, 2006 November 21, 2007

Amendments to IAS 23 "Borrowing costs" March 29, 2007 December 10, 2008

Amendment to IFRS 2 "Vesting conditions and cancellations" January 17, 2008 December 16, 2008

IFRIC 13 "Customer loyalty programmes" June 28, 2007 December 16, 2008

IFRIC 14 "The Limit on a Defined Benefit Asset, Minimum Funding

Requirements and Their Interaction" July 4, 2007 December 16, 2008

IAS 1 (revised) "Presentation of financial statements" September 6, 2007 December 17, 2008

Amendments to IAS 32 and IAS 1 "Financial instruments puttable at the

option of the holder and obligations arising on liquidation" February 14, 2008 January 21, 2009

Improvements to IFRS - May 2008 - except IFRS 5 May 22, 2008 January 23, 2009

Amendments to IFRS 1 and IAS 27 "Cost of investment in a subsidiary,

jointly controlled entity or associate" May 22, 2008 January 23, 2009

Amendments to IFRS 7 and IFRS 4 "Improving disclosures about derivative

instruments" March 5, 2009 November 27, 2009

Amendments to IFRIC 9 and IAS 39 "Reassessment of embedded

derivatives" March 12, 2009 November 27, 2009

The application of these new provisions had no significant

impact on the Group’s results and shareholders’ equity. .

IFRIC 11 «IFRS 2 - Group and Treasury Share

Transactions»

This interpretation of IFRS 2 («Share-based payments»)

sets forth the accounting treatment to apply in the individual

financial statements of each entity in a Group which receives

services from the employees, to record share-based

payments carried out by one or more entities within the

Group (parent company or another entity within the same

Group). However, as regards the clarification pertaining to the

individual or separate financial statements of an entity in the

Group which does not alter the accounting treatment at the

consolidated level, the application of this interpretation had

no impact on the Group’s financial statements.

IFRS 8 “Operating segments”

This standard amends the segment reporting to be provided

in the notes to the financial statements, requiring said

information to be identical to the information presented to the

Group’s main operational decision-makers for the purposes

of making decisions concerning the distribution of resources

to the Group’s sectors of activity and the evaluation of their

performances.

The application of this standard had no impact on the

presentation of the notes to the financial statements. Given

that insurance and intermediation activities are non-material

in relation to banking activities, Crédit du Nord Group only

reports on one operating segment.

Amendment to IAS 23, “Borrowing costs”

The purpose of this amendment was to eliminate the option

of recognising all borrowing costs as expenses and to require

entities to capitalise borrowing costs directly relating to the

acquisition, production or construction of eligible assets.

Insofar as the Group already applies the optional accounting

treatment, which has become mandatory, the application

of this amendment had no impact on the Group’s financial

statements.

Amendment to IFRS 2, “Vesting conditions and

cancellations”

This amendment clarified the definition of vesting conditions

as well as the accounting treatment of vesting conditions and

the cancellation of share-based payment plans.

IFRIC 13 “Customer loyalty programmes”

IFRIC 13 offers a more detailed interpretation of the

accounting treatment of customer loyalty programmes. The

Group is not affected by this interpretation, which therefore



had no impact on the Group’s net income or shareholders’

equity.

IFRIC 14 «The Limit on a Defined Benefit Asset,

Minimum Funding Requirements and Their

Interaction»

This interpretation clarifies how to determine the limit

placed on the amount of a surplus (linked to repayments

or reductions in future contributions) in a pension plan that

can be recognised as an asset, and how a minimum funding

requirement affects that asset.

IAS 1 (revised) “Presentation of financial statements”

The impact of this revised standard was to change the format

of the Group’s financial statements.

In accordance with this revised standard, the Group

maintained a distinct presentation of the consolidated

income statement in order to detail the components of its

net income, and also presents (in a new statement beginning

with this net income) the breakdown of gains and losses

booked directly to equity («Report of net income and gains

and losses booked directly to equity»).

The new additional information pertaining to gains and losses

booked directly to equity, required by IAS 1 (revised), are

presented in Note 24 to the financial statements.

Amendments to IAS 32 and IAS 1 «Financial

instruments puttable at the option of the holder and

obligations arising on liquidation»

These amendments clarify the accounting classification of

financial instruments puttable at the option of the holder or

in the event of the issuer’s liquidation.

Improvements to IFRS - May 2008 - except IFRS 5

As part of the annual procedure to improve International

Financial Reporting Standards, the IASB published 35 minor

amendments to 20 different standards. These amendments

will become mandatory for fiscal years beginning on January

1, 2009 (with the exception of the amendments to IFRS

5, “Non-current assets held for sale and discontinued

operations”, of which the date of first application has been

moved forward to fiscal years beginning on July 1, 2009).

Amendments to IFRS 1 and IAS 27 “Cost of

investment in a subsidiary, jointly controlled entity or

associate”

These amendments only concern entities presenting their

individual financial statements under IFRS for the first time.

Consequently, they had no impact on the Group’s financial

statements.

Amendments to IFRS 7 and IFRS 4 «Improving

disclosures about derivative instruments»

These amendments require the publication of additional

disclosures in the notes to the financial statements pertaining

to financial instruments, and particularly on the fair value

measurements and liquidity risk associated with these

instruments.

Amendments to IFRIC 9 and IAS 39 “Reassessment

of Embedded Derivatives»

These amendments confirm that, for entities having carried

out the reclassifications authorised by the amendments to

IAS 39 and IFRS 7, it is necessary to reassess embedded

derivatives by taking account of the conditions which

prevailed at the time of their initial recording.

The Group did not make use of the reclassification provided

by IAS 39 during financial year 2008.

Z IFRS applied in advance by the Group

IFRS 3 (revised), “Business combinations”, and IAS

27 (revised), “Consolidated and separate financial

statements”

The Group applied both revised standards, published on

January 10, 2008 and adopted by the European Union

on June 3, 2009, prior to January 1, 2009. Their purpose

was to amend the accounting treatment of acquisitions and

disposals of consolidated subsidiaries.

The main changes pertained to the accounting treatment of

acquisition-related costs and contingent considerations, the

calculation of goodwill, the assessment of non-controlling

interests in the acquired entity, the treatment of step

acquisitions and the calculation of proceeds on disposals

upon the loss of control of a consolidated entity. The

application of these revised standards is forward-looking and

therefore had no impact on the treatment of acquisitions prior

to January 1, 2009.



Z Account standards and interpretations

that the group will apply in the future

Not all of the standards and interpretations published were

adopted by the European Union as at December 31, 2009.

These standards and interpretations shall not become

mandatory until January 1, 2010 or the date of their adoption

by the European Union. Consequently, they were not applied

by the Group in 2009.

Accounting standards, amendments and interpretations adopted by the European Union

Standards and interpretations

Date of adoption

by European Union

Application dates: financial years

beginning from

IFRIC 12 "Service concession arrangements" March 25, 2009 March 29, 2009

IFRIC 15 "Agreements for the construction of real estate" July 22, 2009 December 31, 2009

IFRIC 16 "Hedges of a net investment in a foreign operation" June 4, 2009 July 1, 2009

IFRIC 17 "Distribution of non-cash assets to owners" November 26, 2009 October 31, 2009

IFRIC 18 "Transferts of assets from customers" November 27, 2009 October 31, 2009

IFRS 1 (revised) "First-time adoption of international financial reporting

standards" November 25, 2009 January 1, 2010

Amendment to IAS 32 "Classification of rights issued" December 23, 2009 February 1, 2010

Amendment to IAS 39 for eligible hedged items September 15, 2009 July 1, 2010

IFRIC 12 “Service concession arrangements”


accounting treatment of service concession arrangements.

As it does not concern the Group’s activities, it will not have

an impact on net income or shareholders’ equity.

IFRIC 15 “Agreements for the construction of real

estate”


accounting treatment of revenue from the sale of real estate,

particularly from the sale of residential buildings.

IFRIC 16, “Hedges of a net investment in a foreign

operation”


accounting treatment of hedges of a net investment in a

foreign operation. The future application of this interpretation

should have no impact on the Group’s net income or

shareholders’ equity.

IFRIC 17, “Distribution of non-cash assets to

owners”

IFRIC 17 addresses the measurement and accounting

treatment of the distribution of non-cash assets to owners.

IFRIC 18, “Transfers of assets from customers”

This interpretation covers the accounting treatment of

transfers of property, plant and equipment to the accounts

of the receiving entity. It determines the circumstances and

conditions in which the revenue associated with this transfer

of assets from customers must be recognised within the

framework of a commercial agreement.

IFRS 1 (revised), “First-time adoption of international financial reporting standards”

This revision of IFRS 1 deals exclusively with presentation

format, which was completely overhauled and simplified,

whereas the technical content remained unchanged. This

restructuring will make it possible to incorporate future

changes in standards more easily.

Amendment to IAS 32 «Classification of rights

issues»

This amendment covers the accounting treatment of

subscription rights (pre-emptive subscription rights, options,

warrants, etc.) issued in a functional currency other than the

issuer’s currency. These rights were previously recognised

as derivatives. Now, under certain restrictive conditions, they

can be classified under shareholders’ equity, regardless of

the currency in which their exercise price is denominated.

Amendment to IAS 39 for eligible hedged items

This amendment will stipulate the conditions of application

of the provisions of IAS 39 on hedging in two specific cases:

the hedging of inflation risk and the incorporation of the time

value of options in hedge accounting. This amendment will

be applied retroactively.



Accounting standards and interpretations not yet adopted by the European Union

at December 31, 2009

Standards and interpretations Date of publication by IASB

Application dates: financial years

beginning from

IFRS 9 "Financial instruments" (Phase 1: classification and measurement) November 12, 2009 January 1, 2013

IFRIC 19 "Extinguishing financial liabilities with equity instruments" November 26, 2009 July 1, 2010

Improvements to IFRS - April 2009 April 16, 2009 July 1, 2009 at the earliest

Amendments to IFRS 2 "Group cash-settled share-based payment" June 18, 2009 January 1, 2010

Amendments to IFRS 1 "First-time adoption of international financial

reporting standards: additional exceptions" July 23, 2009 January 1, 2010

IAS 24 (revised) "Related party disclosures" November 4, 2009 January 1, 2011

Amendments to IFRIC 14 "Prepayments of a limited funding requirement" November 26, 2009 January 1, 2011

IFRS 9 «Financial instruments - Phase 1:

classification and measurement»

This standard, which represents the first phase in the

overhaul of the provisions of IAS 39, defines a new method

of classification and measurement of financial assets. The

classification and measurement of financial liabilities, the

methodology for impairing financial assets, as well as hedging

transactions shall be addressed in subsequent phases to

complete IFRS 9.

Financial assets will be classified in three categories

(amortised cost, fair value through profit or loss, and fair

value through other comprehensive income) depending on

the details of their contractual flows and the way the entity

manages its financial instruments («business model»).

Debt instruments (loans, receivables or debt securities) shall

be recorded at their amortised cost, provided that they are

held for the purpose of receiving contractual cash flows and

they present standard characteristics (the cash flows must

be solely payments of principle and interest on the principal

outstanding). All other debt instruments are measured at fair

value through profit or loss.

Equity instruments shall be recorded at fair value through

profit or loss, except in the event of an irrevocable OCI option

(provided that these instruments are not held for transaction

purposes and classified as such under financial assets at fair

value through profit or loss).

Embedded derivatives shall no longer be booked separately

from the financial host instruments, where they are financial

assets within the scope of IFRS 9. Instead the hybrid assets

in their entirety are measured at fair value through profit or

loss.

IFRIC 19 «Extinguishing financial liabilities with

equity instruments»

This interpretation provides guidance on how a debtor entity

should handle the accounting treatment of a debt-for-equity

swap. The equity instruments must be measured at their

fair value. The difference between the book value of the

cancelled debt and the fair value measurement of the equity

instruments issued must be booked to profit or loss.

Improvements to IFRS - April 2009

As part of the annual procedure to improve International

Financial Reporting Standards, the IASB published 12

amendments to 20 existing standards. These amendments

shall become mandatory for financial years beginning from

July 1, 2009 at the earliest.

Amendments to IFRS 2 «Group cash-settled share-

based payment»

The IASB provided guidance on how a subsidiary should

record in its financial statements any transactions within

the Group whose payment is share-based and which shall

be settled in cash. Goods and services received must be

measured by the subsidiary from its own point of view and

not take into account the accounting treatment by the Group,

which pays for the goods and services in cash or securities.

Amendments to IFRS 1 “First-time adoption

of international financial reporting standards:

additional exceptions”

These amendments introduce new exceptions concerning

the retroactive application of IFRS by entities belonging

to certain business sectors (oil and gas assets, lease

agreements) and adopting IFRS for the first time.



IAS 24 (revised) «Related party disclosures»

This revised version simplifies the disclosures made by

entities controlled exclusively or jointly by the government

or on which the government exercises a notable influence,

and clarifies the concept of a related party for these entities.

Amendments to IFRIC 14 «Prepayments of a limited

funding requirement»

This amendment sets forth the conditions under which a net

asset may be recorded under a post-employment benefits

scheme in the event of exceptional prepayments to reduce

future contributions.

PRESENTATION OF THE FINANCIAL STATEMENTS

In the absence of a model imposed by IFRS, the format used

for the financial reports complies with the format for financial

reports proposed by the Conseil National de la Comptabilité

(French accounting standards board) in Recommendation

No. 2009-R-04 of July 2, 2009, which cancelled and replaced

Recommendation No. 2004-R-03 of October 27, 2004. This

new recommendation introduced the changes to IAS 1, as

adopted by the European Union on December 17, 2008.

The Group thus maintained a distinct presentation of

the consolidated income statement in order to detail the

components of its net income, and also presents (in a new

statement beginning with this net income) the breakdown of

gains and losses booked directly to equity («Report of net

income and gains and losses booked directly to equity»).

The new additional disclosures pertaining to gains and losses

booked directly to equity, required by IAS 1 (revised), are

presented in Note 24 to the financial statements:

� disclosures on the transfer of gains and losses booked

directly to equity to net income and;

� disclosures on taxes pertaining to each component of the

gains and looses booked directly to equity.

PRINCIPLES OF CONSOLIDATION

Companies that do not qualify as significant under the

Group’s accounting standards have been excluded from the

consolidation scope. In order to qualify as not significant,

Group companies must meet all of the following three criteria

for two consecutive fiscal years:

� total assets of under EUR 10 million;

� net income of below EUR 1 million;

� no ownership of a stake in the capital of a consolidated

company.

The voting rights taken into consideration in order to

determine the Group’s degree of control over an entity

and the corresponding consolidation method include

potential voting rights where these can be freely exercised

or converted at the time the assessment is made. Potential

voting rights are instruments such as call options on ordinary

shares outstanding in the market or rights to convert bonds

into new ordinary shares.

The following methods of consolidation are used:

Z Full consolidation (IAS 27)

Group companies which are exclusively owned and

controlled by Crédit du Nord Group are fully consolidated.

Full consolidation involves recognising the full value of all

subsidiary assets and liabilities, net of minority interests in

both shareholders’ equity and net income.

The exclusive control over a subsidiary is the power to govern

the financial and operating policies so as to obtain benefits

from its activities. Control results from:

� either owning, directly or indirectly, the majority of the

voting rights in the subsidiary;

� or having the power to appoint or remove the majority

of members of the administrative, management or

supervisory bodies of the subsidiary or to command the

majority of the voting rights at meetings of these bodies;

� or having the power to exercise a dominant influence over

the subsidiary through an agreement or provisions in the

company’s bylaws.



Z Proportionate consolidation (IAS 31)

Group companies which are jointly owned and controlled

by Crédit du Nord Group are consolidated proportionately.

This method consists in recognising a proportion of the

company’s assets and liabilities equal to the percentage of

Group ownership in the company, rather than the value of

the ownership interest in the company. Minority interests are

not booked.

Joint control is the sharing of control over a subsidiary

by a limited number of partners or shareholders, where

the financial and operating policies of said subsidiary are

determined by mutual agreement.

A contractual agreement must specify that the consent of

all partners or shareholders is required for exercising control

over the economic activity of the subsidiary and for all

strategic decisions.

Z Equity method (IAS 28)

Companies in which the Group holds a significant ownership

are consolidated using the equity method. Significant

influence is defined as the power to influence the policies of

a subsidiary without exercising control over said subsidiary.

This can result from representation on the management

or supervisory bodies, participation in the policy-making

process, the existence of significant intercompany

transactions, interchange of managerial personnel or the

provision of essential technical information. The Group is

presumed to exercise significant influence if it holds, directly

or indirectly, at least 20% of the voting rights.

Under the equity method, Crédit du Nord substitutes

the value of the ownership interest in the company with a

proportionate share of the company’s equity and net income.

The net difference resulting from this substitution is recorded

under «Consolidated reserves». The Group’s share in

the company’s income is recorded under «Income from

companies accounted for by the equity method».

Z Specific treatment of special purpose

entities (SIC 12)

The distinct legal structures, Special Purpose Entities or

SPEs, created specifically to manage a transaction or

group of similar transactions are consolidated if they are

substantially controlled by the Group, even in the absence

of capital ties.

The following criteria are used on a non-cumulative basis

to assess whether a special purpose entity is controlled by

another entity:

� the SPE’s activities are being conducted on behalf of the

Group so that the Group obtains benefits from the SPE’s

operation;

� the Group has the decision-making powers to obtain

the majority of the benefits of the SPE, whether or not

this control has been delegated through an “auto-pilot”

mechanism;

� the Group has the ability to obtain the majority of the

benefits of the SPE;

� the Group retains the majority of the risks of the SPE.

In consolidating SPEs considered to be substantially

controlled by the Group, those parts of entities not held by

the Group are recognised as debt in the balance sheet.

Z Restatements and eliminations

The financial statements of consolidated companies are

restated as necessary according to Group accounting

principles. Consolidated net assets and net income are

presented after eliminations for intra-group transactions.

Z Business combinations and goodwill

(IFRS 3)

Crédit du Nord Group uses the purchase method to account

for its business combinations. In order to determine goodwill,

IFRS 3 requires that all assets, liabilities, off-balance sheet

items and contingent liabilities of the acquired entities be

valued individually at fair value, regardless of their purpose.

The analyses and appraisals necessary for the initial valuation

of these items, and any corrections to the value based on

new information, must be carried out within 12 months of

the date of acquisition.

Upon the first consolidation of a company, an analysis

is performed to determine the difference between the

acquisition cost of the shares and the assessed fair value of

the proportion of the net assets acquired. This difference is

then booked to correct the value of the balance sheet items

and commitments of the consolidated company, on the

one hand, and recorded as intangible assets, as defined by



IAS 38. Any residual balance is recorded as goodwill. If the

residual difference is positive, it is booked on the assets side

of the consolidated balance sheet under “Goodwill”. If the

difference is negative, it is immediately recognised in profit

or loss.

Goodwill is carried on the balance sheet at historical cost,

and is subject to impairment tests whenever there is any

indication that its value may have diminished, and at least

once a year. At the acquisition date, each item of goodwill is

attributed to a Cash Generating Unit (CGU) which is expected

to derive benefits from the acquisition. Any impairment of

goodwill is calculated based on the recoverable value of the

relevant CGU. When the recoverable value of the CGU is less

than its carrying value, an irreversible impairment is recorded

in the consolidated income statement for the period under

“Impairment of goodwill”. At present, the Group has only

defined one CGU: the retail bank.

For transactions executed from January 1, 2009, the

accounting treatment described above was amended

due to the early application of IFRS 3 (revised), «Business

Combinations», and IAS 27 (revised) «Consolidated and

separate financial statements». The main changes were as

follows:

� costs directly associated with acquisitions are now

booked to the income statement for the period;

� contingent considerations are included in the acquisition

cost at their fair value on the date control is obtained,

regardless of their nature. This recording is made to

equity or debt (depending on the method of settlement):

subsequent revisions of these gaps are booked to the

income statement for financial debts within the scope of

IAS 39 and in accordance with the appropriate standards

for debts not falling within the scope of IAS 39. In the event

of equity instruments, these revisions do not give rise to

remeasurement.

� non-controlling interests can, at the date control is

obtained, be measured either at fair value (with a fraction

of the goodwill allocated to these non-controlling interests)

or at their proportionate share of the acquiree’s net assets

(continued use of the previous method described above).

The choice between these two approaches must be made

individually for each acquisition. Subsequent acquisitions

of non-controlling interests are then systematically booked

to equity, regardless of the choice made when control was

obtained.

� during an acquisition, contingent liabilities are booked to

the consolidated balance sheet where they represent a

current obligation (and no longer a potential obligation, as

was previously the case) at the acquisition date and where

their fair value can be reliably measured.

� the acquiree’s deferred tax assets not recognised at the

date control was obtained are subsequently booked on

the income statement with no goodwill adjustment.

� on the date control was obtained, any share in the entity

previously held by the Group is remeasured at its fair value

and booked to the income statement. In the event of a

step acquisition, goodwill is determined in reference to the

fair value at the date control was obtained and no longer

in reference to the fair value of the assets and liabilities

acquired at each transaction date.

� when a Group loses control of a consolidated subsidiary,

any share it keeps is remeasured at fair value and booked

to the income statement.

Z Non-current assets held for sale and

discontinued operations

A fixed asset or group of assets and liabilities is deemed

to be «held for sale» if its carrying value will primarily be

recovered via a sale and not through its continuing use. For

this classification to apply, the asset must be immediately

available for sale and its sale must be highly probable. Assets

and liabilities falling under this category are reclassified as

“Non-current assets held for sale” and “Liabilities directly

associated with non-current assets classified as held for

sale”, with no netting.

Any negative differences between the fair value less costs to

sell off non-current assets and groups of assets held for sale

and their net carrying value is recognised as an impairment

loss in profit or loss. Non-current assets held for sale are no

longer amortised as from their reclassification.

An operation is classified as discontinued at the date the

Group has actually disposed of the operation, or when the

operation meets the criteria to be classified as held for sale.

Discontinued operations are recognised as a single item in

the financial statements for the period, at their net income for

the period up to the date of sale, combined with any net gains

or losses on their disposal or on the fair value less costs to

sell of the assets and liabilities making up the discontinued

operations. Similarly, cash flows generated by discontinued



operations are booked as a separate item in the statement

of cash flows for the period

Z Fiscal year-end

The consolidated financial statements were prepared on

the basis of accounts closed on December 31, 2009 for all

consolidated companies.

ACCOUNTING PRINCIPLES

These accounting principles have been applied since

January 1, 2005.

Z Classification and valuation of financial

assets and liabilities

In general, regardless of their category (held-to-maturity

securities, available-for-sale securities, securities at fair value

through profit or loss), sales and purchases of securities are

recognised on the balance sheet on the date of settlement-

delivery. Loans are initially recognised on the date of

disbursement.

Derivative financial assets and liabilities at fair value through

profit or loss are booked at their trading date.

When initially recognised, financial assets and liabilities are

measured at fair value including transaction costs (with the

exception of financial instruments recognised at fair value

through profit or loss) and are classified under one of the

following financial categories.

Loans and receivables

Loans and receivables include non-derivative fixed- or

determinable-income financial assets which are not listed on

an active market and which are not held for trading purposes

or held for sale from the time of their acquisition or issuance.

Loans and receivables are presented on the balance sheet

under “Due from banks” or “Customer loans”, depending on

the counterparty. They are valued after their initial recognition

at their amortised cost, based on the effective interest rate,

and may be subject to impairment if appropriate

Financial assets and liabilities at fair value

through profit or loss

This category covers financial assets and liabilities held for

trading purposes. They are measured at fair value at the

balance sheet date and recorded on the balance sheet under

“Financial assets and liabilities at fair value through profit

or loss”. Changes in fair value are booked on the income

statement for the period, under the heading “Net gains or

losses on financial instruments at fair value through profit

or loss.”

Added to financial assets and liabilities held for trading

purposes are non-derivative financial assets and liabilities

that the Group has designated at fair value through profit

or loss, in application of the option provided by IAS 39, as

defined in the amendment thereto in June 2005. The Group

uses this option in the following cases.

� to book certain compound instruments at fair value

and thereby avoid the need to separate out embedded

derivatives that would otherwise have to be booked

separately. These include unlisted securities containing

embedded derivatives (convertible bonds or bonds

redeemable in shares) as well as structured issues

of negotiable medium-term notes and structured

borrowings;

� to eliminate or reduce discrepancies in the accounting

treatment of certain financial assets and liabilities. The

Group thus recognises at fair value through profit or loss

the financial assets held to guarantee unit-linked policies

of its life insurance subsidiaries to ensure their financial

treatment matches that of the corresponding insurance

liabilities. Under IFRS 4, insurance liabilities have to be

recognised according to local accounting principles.

The revaluations of underwriting reserves on unit-linked

policies, which are directly linked to revaluations of the

financial assets underlying their policies, are accordingly

recognised in profit or loss. The fair value option thus

allows the Group to record changes in the fair value of

the financial assets through profit or loss so that they

match fluctuations in the value of the insurance liabilities

associated with these unit-linked policies.

� to measure the fair value of securities held for venture

capital activities, where the Group’s stake is between

20% and 50%, as the performance of these securities is

valued on the basis of fair value in accordance with a duly

documented risk management or investment strategy.

The business of capital venture companies involves

investing in financial assets in order to make a profit from

their total return in the form of dividends and changes in

fair value.



Held-to-maturity investments

This category includes non-derivative fixed- or determinable-

income assets with a fixed maturity, which are listed on

an active market and which the Group has the intention

and ability to hold to maturity. They are valued after their

acquisition at their amortised cost and may be subject to

impairment if appropriate. Amortised cost includes account

premiums, discounts and transaction costs. These financial

assets are recorded on the balance sheet under “Held-to-

maturity financial assets”.

Available-for-sale financial assets

This category covers non-derivative financial assets held for

an indefinite period and which the Group may sell at any

time. By default, these are financial assets which are not

classified in one of the three categories above. Available-for-

sale financial assets are measured at fair value at the balance

sheet date, and any changes in value excluding accrued or

earned interest are recorded in shareholders’ equity under

“Unrealised gains or losses”.

Accrued or earned interest on fixed-income securities is

recorded in profit or loss under “Interest and similar income

– transactions in fixed-income financial instruments”.

Income from equity securities classified as available-for-sale

securities is booked to profit or loss under “Dividend income”.

Changes in fair value are only recognised in profit and loss,

under « Net gains or losses on available-for-sale financial

assets” when the asset is sold or permanently impaired.

Write-downs affecting equity securities classified as available-

for-sale assets may not be reversed.

Reclassification of financial assets

After their initial recognition on the Group’s balance sheet,

financial assets may not be reclassified as “Financial assets

at fair value through profit or loss”.

A financial asset initially recorded on the balance sheet

under “Financial assets at fair value through profit or loss”

may be reclassified in different categories under the following

conditions:

� if a fixed- or determinable-income financial asset held

for trading purposes can no longer be traded on an

active market following its acquisition, and the Group

has the intention and the ability to hold the asset for the

foreseeable future or to maturity, then this financial asset

may be reclassified in «Loans and receivables», subject to

compliance with the applicable eligibility criteria;

� if rare circumstances lead to a change in holding strategy

for non-derivative financial assets or equity investments

initially held for trading purposes, these assets may be

reclassified either as “Available-for-sale financial assets”

or as “Held-to-maturity financial assets”, subject to

compliance with the applicable eligibility criteria.

Under no circumstances may derivative financial instruments

or financial assets using fair value option be reclassified in

a category other than «Financial assets and liabilities at fair

value through profit or loss».

Financial assets initially recorded as “Available-for-sale

financial assets” may be transferred to “Held-to-maturity

financial assets”, subject to compliance with the appropriate

eligibility criteria.

Furthermore, if a fixed- or determinable-income financial asset

initially recorded under “Available-for-sale financial assets” is

no longer available for sale following its acquisition, and the

Group has the intention and the ability to hold the asset for

the foreseeable future or to maturity, then this financial asset

may be reclassified in «Loans and receivables», subject to

compliance with the applicable eligibility criteria.

Reclassified financial assets are transferred to their new

category at their fair value at the date of reclassification after

which they are valued in accordance with the provisions

applicable to the new category.

The amortised cost of financial assets reclassified from

“Financial assets at fair value through profit or loss”

or “Available-for-sale financial assets” to “Loans and

receivables”, as well as the amortised cost of financial assets

reclassified from “Financial assets at fair value through profit

or loss” to “Available-for-sale financial asset”, are determined

on the basis of expected future cash flow estimates made on

the date of reclassification. The estimate of expected future

cash flows must be revised at each balance sheet date; in the

event of an increase in estimates of future inflows following a

rise in their recoverability, the effective interest rate is adjusted

on a forward-looking basis; however, if there is an objective

indication of impairment resulting from an event which took

place after the reclassification of the financial assets in

question, and this event has a negative impact on initially

expected future cash flows, a write-down on the asset in

question is booked to “Cost of risk” on the income statement.

Financial liabilities measured at amortised cost

using the effective interest method

Group borrowings that are not classified as “Financial

liabilities measured at fair value through profit or loss” are

initially booked at cost, corresponding to the fair value of the



sums borrowed net of transaction costs. This debt is valued

at amortised cost at the end of the financial period, using the

effective interest method.

Amounts due to banks, Customer deposits

Amounts due to banks and customer deposits are classified

according to their initial duration and type into: demand

(demand deposits, current accounts) and term borrowings

in the case of banks; special savings accounts and other

deposits for customers.

Accrued interest on these amounts is recorded as related

payables through profit or loss. This debt includes pension

transactions, in the form of securitised debt payables, carried

out with these economic operators.

Securitised debt payables

These liabilities are classified by type of security: medium-

term notes, savings bonds, negotiable debt instruments,

bonds and other debt securities (with the exception of

subordinated notes, which are classified under subordinated

debt).

Interest accrued and payable in respect of these securities is

booked as related payables through profit or loss. Bond issue

and redemption premiums are amortised using the effective

interest rate method over the life of the bonds in question.

The resulting charge is recorded as interest expenses in profit

or loss.

Subordinated debt

This item includes all dated or undated subordinated

borrowings, which in the event of the liquidation of the

borrowing company may only be redeemed after all other

creditors have been paid. Interest accrued and payable

in respect of subordinated debt, if any, is shown with the

underlying abilities as related payables.

Z Derecognition of financial assets

and liabilities

The Group derecognises all or part of a financial asset (or

group of similar assets) when the contractual rights to the

cash flows on the asset expire or when the Group has

transferred the contractual rights to receive the cash flows

and substantially all of the risks and rewards of ownership

of the asset.

Where the Group has transferred the cash flows of a financial

asset but has neither transferred nor retained substantially all

the risks and rewards of its ownership and has not retained

control of the financial asset, the Group derecognises it and

recognises separately as asset or liability any rights and

obligations created or retained as a result of the asset’s

transfer. If the Group has retained control of the asset, it

continues to recognise it on the balance sheet to the extent

of its continuing involvement in that asset.

When a financial asset is derecognised in its entirety, a gain

or loss on disposal is recorded in the income statement for

the difference between the carrying value of the asset and

the payment received for it, adjusted where necessary for

any unrealised profit or loss previously recognised directly

in equity.

The Group only derecognises all or part of a financial liability

when it is extinguished, i.e. when the obligation specified in

the contract is discharged, cancelled or expires.

Z Impairment of financial assets

Financial assets carried at amortised cost

The criteria for determining whether the credit risk on an

individual loan is identified are similar to those used under

French regulations to determine whether a loan is doubtful.

At each balance-sheet date, the Group determines whether

there is objective evidence that any asset or group of

individually assessed financial assets has been impaired as

a result of one or more events occurring since they were

initially recognised (“a loss-generating event”) that has (have)

an impact on the estimated future cash flows of the asset

or group of financial assets which can be reliably estimated.

The Group first determines if there is objective evidence of

impairment in any individually significant financial assets,

and similarly, whether individually or collectively, for financial

assets which are not individually significant. Notwithstanding

the existence of a guarantee, the criteria used to determine

probable credit risk on individual outstanding loans include

the occurrence of one or more payments at least over 90

days due (six months for real estate and property loans and

nine months for municipal loans), or, even in the absence of

missed payments, the existence of probable credit risk or the

presence of procedures to contest the loan.

In the event there is no objective evidence of impairment for

a financial asset, whether considered individually significant

or not, the Group includes this financial asset in a group of

financial assets presenting similar credit risk and collectively

subjects them to an impairment test.

If a loan is considered to carry an identified credit risk which

makes it probable that the Group will be unable to recover

all or part of the amount owed by the counterparty under

the initial terms and conditions of the loan agreement,



notwithstanding any loan guarantees, an impairment loss is

booked for the loan in question, and deducted directly from

the value of the asset.

The amount of the impairment loss is equal to the difference

between the carrying value of the asset and the present

value, discounted at the original effective interest rate, of

the total estimated recoverable sum, taking into account

the value of any guarantees. The impaired receivable

subsequently generates interest income, calculated by

applying the effective interest rate to the net carrying value

of the receivable. Impairment allowances and reversals,

losses on non-recoverable loans and amounts recovered on

impaired loans are booked under “Cost of risk”.

In a homogenous portfolio, as soon as a credit risk is

incurred on a group of receivables, collective impairment

loss is recognised without waiting for the risk to individually

affect one or more receivables. This impairment loss is

directly deducted from the value of the loans/receivables in

the balance sheet. The collective impairment losses cover,

on the one hand, the credit risk incurred on a portfolio of

counterparties which are sensitive or on the watch-list, and,

on the other hand, sector risk exposure.

Performing loans under watch

Within the “Performing loan” risk category, the Group has

created a subcategory called “Performing loans under watch”,

to cover loans/receivables requiring closer surveillance. This

category includes loans/receivables where certain evidence

of deterioration has appeared since they were granted.

The Group conducts historical analyses to determine the

rate of classification of these loans/receivables as doubtful

and the impairment ratio, and updates these analyses on a

regular basis. It then applies these figures to homogenous

groups of receivables in order to determine the amount of

impairment.

Impairment due to sector credit risk

The Group’s Central Risk Division regularly lists the business

sectors that it considers represent a high probability of

default in the short-term due to recent events that may have

caused lasting damage to the sector. A rate of classification

as doubtful loans is then applied to the total outstandings in

these sectors in order to determine the volume of doubtful

loans. Impairments are then booked for the overall amount of

these outstanding loans, using impairment ratios which are

determined according to the historical average impairment

rates of doubtful customers, adjusted to take into account

an analysis of each sector by an independent expert on the

basis of the economic environment.

Available-for-sale financial assets

Where there is evidence of lasting impairment to an available-

for-sale financial asset, an impairment loss is booked to

profit or loss. Where a non-permanent unrealised capital

loss has been directly booked to shareholders’ equity and

subsequently objective evidence of lasting impairment

emerges, the Group recognises the total accumulated

unrealised loss previously booked to shareholders’ equity in

profit or loss:

� under “Cost of risk” for debt instruments (fixed-income

securities);

� under “Net gains or losses on available-for-sale financial

assets” for equity instruments (equity securities).

The sum of the cumulated loss is calculated as the difference

between the acquisition cost of the security (net of any

repayments of principal and amortisation) and its current fair

value, minus, if necessary, any loss of value on the security

previously booked through profit or loss.

For listed equity instruments, a significant or prolonged

decline in their share price to a value below their acquisition

cost constitutes an objective indication of impairment. The

Group believes this is particularly the case for listed equities

which present, at the balance sheet date, unrealised losses

exceeding 50% of their acquisition cost, as well as for listed

equities posting unrealised losses for a continuous period of

24 months or more prior to the balance sheet date. Other

factors, such as the financial situation of the issuer or its

development prospects, may lead the Group to conclude that

it may not recover its investment even if the above-mentioned

criteria were not met. In such cases, an impairment loss is

recorded on the income statement for the difference between

the share’s listed price at the balance sheet date and its

acquisition cost.

For unlisted equity instruments, the impairment criteria used

are the same as those described above.

Impairment losses recognised through profit or loss on

equity instruments considered as available-for-sale are not

reversed until the financial instrument is sold. Once an equity

instrument has been impaired, any further loss of value is

booked as an additional impairment loss. However, losses of

value on debt instruments are reversed through profit or loss

if the instruments subsequently appreciate in value



The impairment criteria for debt instruments are similar to

those applied for the impairment of financial assets measured

at amortised cost.

Z Derivatives and hedging

IAS 39 requires that all derivatives be recognised at fair

value in the balance sheet, and that variations in value be

recognised in profit or loss for the period, with the exception

of financial derivatives classified as cash flow hedges for

accounting purposes. Derivatives are recorded on the

balance sheet at the trading date.

Derivative instruments are divided into two categories:

Trading financial derivatives

Financial derivative instruments are considered to be trading

financial derivatives by default, unless they are designated

as hedging instruments for accounting purposes. They

are booked in the balance sheet under «Financial assets

or liabilities at fair value through profit or loss». Changes in

fair value are booked on the income statement under the

heading “Net gains or losses on financial instruments at fair

value through profit or loss.”

Changes in fair value of derivative contracts entered into with

counterparties which end up defaulting are booked under

«Net gains or losses on financial instruments at fair value

through profit or loss» until the date the instruments are

cancelled and recognised on the balance sheet, for the fair

value at this same date of the receivable or debt vis-à-vis the

counterparties in question. Any subsequent impairments on

these receivables are recorded under “Cost of risk” on the

income statement.

Derivative instruments in the «Trading» category include rate

swaps, caps, floors and collars, interest-rate options, futures

contracts, Matif contracts and forex options.

Hedging derivatives

Under IFRS, hedge accounting is deemed to be an

exceptional treatment and is therefore subject to very strict

requirements.

As a result, as soon as the hedge is established, Crédit du

Nord Group produces documentation indicating: the item

hedged, the risk to be hedged, the type of financial derivative

used and the evaluation method applied to measure the

effectiveness of the hedge.

The hedge must be highly effective, such that variations in the

value of the derivative hedging instrument offset variations

in the value of the hedged instrument. This effectiveness is

measured when the hedge is first set up and throughout its

life.

Depending on the type of risk hedged, the Group defines the

derivative financial instrument as a fair value hedge, a macro

fair value hedge, a cash flow hedge or a net investment

hedge.

Fair value hedge

The main instruments used for fair value hedges are interest

rate swaps.

In a fair value hedge, the hedging derivative is measured

at fair value through profit or loss, as is the portion of the

hedged item that is exposed to the hedged risk, i.e. the gains

or losses on the hedged item attributable to the hedged

risk adjust the carrying amount of the hedged item and are

recognised in profit or loss under «Net gains or losses on

financial instruments at fair value through profit or loss –

Derivative financial instruments».

For interest rate derivates, accrued interest income or

expenses on the hedging derivative are booked to profit or

loss under the same heading, at the same time as the interest

income or expense related to the hedged item.

The Group discontinues the hedge, on a forward-looking

basis, if:

� the effectiveness criteria for the hedging instrument are

no longer respected;

� the financial derivative is sold or terminated early;

� the hedged item is sold before maturity.

As a result, with the exception of the last case, the balance

sheet value of the hedged item is no longer adjusted to take

into account variations in value, and cumulated gains or

losses on the previously hedged item are amortised over the

remaining life of the item.

Macro hedging

In this type of hedge, interest rate derivatives are used to

hedge the Group’s overall structural interest rate risk. Crédit

du Nord Group has decided to use the carve-out version of

IAS 39 as adopted by the European Union, which facilitates:

� the use of fair value hedge accounting for macro-hedges

used in Asset & Liability Management including customer

demand deposits in the fixed rate positions being hedged;



� the application of the effectiveness test required by IAS

39, adopted in the European Union.

The main instruments used for macro fair value hedges are

interest rate swaps and cap purchases.

Financial derivatives used for macro fair value hedges are

accounted for in a similar way to derivatives used in fair value

hedges. Changes in the fair value of the macro-hedged

portfolio are booked in the balance sheet under ”Revaluation

differences on hedged items” through profit or loss.

Cash flow hedge

Crédit du Nord Group has no financial instruments in

its balance sheet classified as cash flow hedges or net

investment hedges.

Embedded derivatives

An embedded derivative is a component of a hybrid

instrument. While hybrid instruments are not measured at

fair value through profit or loss, the Group does separate

embedded derivatives from their host instrument where, on

the initiation of the transaction, the economic characteristics

and risks associated with the embedded derivatives are not

closely linked to the characteristics and risks of the host

instrument and where they meet the definition of a derivative

financial instrument. Once separated, the derivative financial

instrument is booked at fair value on the balance sheet under

“Financial assets and liabilities at fair value through profit or

loss” under the terms described above.

Z Foreign exchange transactions

At period-end, monetary assets and liabilities denominated

in foreign currencies are converted into euros (Crédit du

Nord Group’s operating currency) at the prevailing spot rate.

Realised or unrealised foreign exchange losses or gains are

recognised in profit or loss.

Foreign exchange contracts are valued at the spot rate on

the balance sheet date. Forward contracts are valued using

the forward exchange rate for the remaining maturity, and

changes in fair value are recorded on the income statement.

Z Provisions (IAS 37) – Excluding

provisions for employee benefits

Provisions, excluding those related to employee benefits

and credit risks, represent liabilities, the timing or amount

of which cannot be precisely determined. Provisions are

booked where the Group has a commitment to a third party

which makes it probable or certain that it will never incur an

outflow of resources to this third party without receiving at

least an equivalent value in exchange.

The estimated amount of the expected outflow is then

discounted to present value to determine the size of the

provision, where this discounting has a significant impact.

Allocations to and write-backs of provisions are booked

through profit or loss under the items corresponding to the

future expense.

At Crédit du Nord Group, provisions are made up of

provisions for disputes and provisions for general risks.

Contingent liabilities, where they exist, are not accounted for

but are disclosed in the notes to the financial statements.

Z Commitments under “contrats

d’épargne logement” (mortgage

savings agreements)

Comptes d’épargne-logement (CEL or mortgage savings

accounts) and plans d’épargne-logement (PEL or mortgage

savings plans) are savings schemes for individual customers

(in accordance with Law No. 65 554 of July 10, 1965), which

combine an initial deposit phase in the form of an interest-

earning savings account with a lending phase where the

deposits are used to provide property loans. The latter phase

is subject to the previous existence of the savings phase and

is therefore inseparable from it. The deposits collected and

loans granted are booked at amortised cost.

These schemes generate two types of commitments for the

Group: the obligation to lend subsequently to the customer

at an interest rate set upon the signing of the agreement,

and the obligation to pay interest on the customer’s savings

in the future at an interest rate set upon the signing of the

agreement, for an indefinite period.

Commitments with future adverse effects for the Group are

subject to provisions booked as balance-sheet liabilities,

any changes in which are recorded on the interest margin

line under “Net Banking Income”. These provisions relate

exclusively to commitments under mortgage savings

accounts and schemes existing at the date of the provision’s

calculation.

Provisions are calculated for each generation of home

savings schemes, on the one hand, with no netting between

the different generations of schemes, and for all home



savings accounts taken together, which constitutes a single

all-encompassing generation, on the other hand.

During the savings phase, provisions are calculated

according to the difference between average expected

outstanding savings and minimum expected outstanding

savings, both of which are determined statistically based on

historical observations of actual customer behaviour.

During the lending phase, provisions are calculated according

to loans already issued but not yet due at the balance sheet

date, as well as future loans considered as statistically

probable on the basis of customer savings deposits on the

balance sheet at the date of calculation and on historical

observations of actual customer behaviour.

A provision is booked if the discounted value of expected

future earnings for a given generation of mortgage savings

products is negative. The provision is estimated on the basis

of interest rates available to individual customer for equivalent

savings and loan products, with similar estimated life and

date of inception.

Z Tangible and intangible assets

(IAS 16, 36, 38, 40)

Operating and investment fixed assets are booked on the

balance sheet at cost. Borrowing expenses incurred to fund

a lengthy construction period for the fixed assets are included

in the acquisition cost, along with other directly attributable

expenses. Investment subsidies received are deducted from

the cost of the relevant assets.

Fixed assets purchased before December 31, 1976 are booked

at their estimated value in use in accordance with the legal

revaluation rules published 1976.

As soon as they are fit for use as decided by the Group,

fixed assets are depreciated over their useful life using the

straight-line method.

Any residual value of the asset is deducted from its

depreciable amount.

Where one or several components of a fixed asset are used

for different purposes or to generate economic benefits over

a different time period from the asset considered as a whole,

these components are depreciated over their own useful

life. The Group has applied this approach to its operating

and investment properties, breaking down said assets into

at least the following components, with their corresponding

depreciation periods:

Infrastructures

Major structures 50 yrs

Doors and windows, roofing 20 yrs

Façades 30 yrs

Technical

installation

Elevators

10-30 yrs

Electrical installations

Electricity generators

Air conditioning, smoke

extractors

Heating

Security & surveillance

installations

Plumbing

Fire safety equipment

Fixtures & fittings Finishing, surroundings 10 yrs

These depreciation periods are listed as an indication only

and may vary depending on the type fixed asset.

Depreciation periods for other categories of fixed assets

depend on their useful life, usually estimated in the following

ranges:

Safety and publicity equipment 5 yrs

Transport 4 yrs

Furniture 10 yrs

IT and office equipment 3-5 yrs

Software (acquired or developed) 3-5 yrs

Business software purchased from third parties is capitalised

and depreciated using the straight-line method over a period

of 3-5 years. Software developed internally is capitalised

and depreciated, in the same way as business software,

if it stems from an IT project involving significant amounts

which the Group expects to yield future benefits. Fixed costs

correspond to the development phase and include the

costs related to the detailed design, programming, testing

of the software, and to the production of the technical

documentation.

Fixed assets are subject to impairment tests whenever

there is an indication that their value may have diminished.

Evidence of a loss in value is assessed at every balance sheet

date. Impairment tests are carried out on assets grouped

by cash-generating unit. Where a loss is established, an

impairment loss is booked to the income statement, which

may be reversed if there is an improvement in the conditions

that initially led to it being recognised. The impairment loss

reduces the depreciable amount of the asset and thus also

affects its future depreciation schedule.



The useful life and the residual value of fixed assets are

reviewed annually. If this data needs to be changed, the

depreciation schedule is modified accordingly.

Z Leases (IAS 17)

There are two categories of lease transaction:

� finance leases, which transfer substantially all the risks

and rewards incidental to ownership to the lessees;

� operating leases, which are leases other than finance

leases.

Lease finance receivables are recognised in the balance

sheet under “Finance lease receivables” and represent the

Group’s net investment in the lease, calculated as the present

value of the minimum payments to be received from the

lessee, plus any unguaranteed residual value, discounted at

the interest rate implicit in the lease.

Interest included in the lease payments is booked under

income from other banking activities on the income

statement such that the lease generates a constant periodic

rate of return on the lessor’s net investment. In the event of

a decline in unguaranteed residual value, used in calculating

the lessor’s gross investment in the lease financing contract,

an expense is recorded to correct the amount of financial

income already booked.

Fixed-assets arising from operating lease activities are

presented in the balance sheet under “Investment fixed

assets” and are treated accordingly. In the case of buildings,

they are booked under “Real estate leasing”. Income from

lease payments is recognised in the income statement on

a straight-line basis over the life of the lease under “Other

banking income”.

Z Loan commitments

Financing commitments which are not considered as financial

derivative instruments are initially booked at their fair value.

These financing commitments are subsequently provisioned,

if necessary, in accordance with accounting principles relating

to “Provisions – excluding provisions for employee benefits”.

Z Financial commitments given

The Group initially recognises financial guarantees given as

financial instruments at their fair value, then subsequently

values them at the higher of the two amounts between the

amount of the obligation and the initially recorded amount,

minus the amortisation of the guarantee commission where

applicable. If there is objective evidence of impairment,

financial guarantees given are provisioned as balance sheet

liabilities.

Z Interest income and expenses

Interest income and expenses are booked to the income

statement for all financial instruments valued at amortised

cost using the effective interest rate method.

The effective interest rate is taken to be the rate that discounts

the future cash inflows and outflows over the expected life

of the instrument to the book value of the financial asset or

liability. To calculate the future cash flows, the Group takes

into account all the contractual provisions of the financial

instrument without taking account of possible future loan

losses. The calculation includes commission paid or received

between the parties where these are assimilable to interest,

transaction costs and all types of premiums and discounts.

When a financial asset or a group of similar financial assets

has been impaired following an impairment of value,

subsequent interest income is booked through profit or loss

using the same interest rate that was used to discount the

future cash flows when measuring the loss of value.

Provisions that are booked as balance sheet liabilities,

except for those related to employee benefits, generate

interest expenses for accounting purposes. This expense

is calculated using the same interest rate as was used to

discount to present value the expected outflow of resources

that gave rise to the provision.

Z Commissions (lAS 18)

Crédit du Nord Group books its commission revenues on the

income statement according to the nature of the transaction

for which they are charged.

Fees for one-off services are booked to income when the

service is provided.

Fees for ongoing services are spread across the duration of

the service.

Commissions that are part of the effective return of a financial

instrument are accounted for as an adjustment to the

effective return of the financial instrument.



Z Employee benefits (IAS 19)

In accordance with IAS 19 and IFRS 2, the Group recognises

four categories of benefit:

Pension commitments and benefits

Commitments under statutory pension systems are covered

by the contributions paid to independent pension funds

which then manage all payments of retirement benefits.

Under IAS 19, these are defined contribution plans, which

limit the company’s liability to the subscription paid into the

plan, and which do not commit the company to a specific

level of future benefit. Contributions paid are booked as an

expense for the year in question.

All commitments under defined benefit plans are valued

using an actuarial method.

Defined benefit plans commit the Group, either formally or

constructively, to pay a certain amount or level of future

benefits and the Group therefore bears the medium- and

long-term actuarial and financial risk.

Said plans cover several types of benefits, notably any

residual complementary benefits afforded by specialist

pension funds.

Since 1 January 1994, pursuant to an agreement signed

by all French banks on 13 September 1993, the banking

institutions of the Group, excluding Crédit du Nord, are

no longer affiliated with specialist pension funds and are

henceforth affiliated with the ARRCO-AGIRC funds of

the general system. This agreement gave rise to residual

commitments to current retirees and active employees (for

periods of employment in the Group prior to 31 December

1993).

For Crédit du Nord, following the Branche agreement of

February 25, 2005, which provided for the amendment of

the provisions relating to complementary benefits, and in

light of the negative balance of its pension fund, an internal

agreement was signed in 2006 setting forth the following

provisions:

� for beneficiaries of complementary benefits still employed

with Crédit du Nord, the value of the complementary

benefits was transferred to a supplementary savings plan

outsourced to an insurer;

� retirees and beneficiaries of a survivor’s pension were

given a choice of opting for a single lump-sum payment

of their complementary benefits.

Any residual complementary benefits are therefore linked to

retirees and beneficiaries of a survivor’s pension who did not

opt for a single lump-sum payment of their complementary

benefits, on the one hand, and to beneficiaries no longer

employed with Crédit du Nord, on the other hands.

Employee benefits also include termination benefits,

complementary retirement plans and post-employment

medical care. These commitments and the coverage thereof

as well as the main underlying assumptions therein are

outlined in Note 21. Valuations are performed once a year

by an independent actuary, using the projected unit credit

method, on the basis of data as at August 31.

Pre-retirement benefits consist exclusively of those benefits

payable by Group companies between the effective day of

departure of an employee and the date from which they are

covered by their respective pension schemes. Said benefits

are provisioned in full as soon as an agreement is signed.

«Actuarial differences» reflect the difference between

actuarial assumptions and actual figures as well as the

impact of any change in actuarial assumptions. In the

specific case of pension benefits, these differences are only

booked in part on the income statement where they exceed

10% of the maximum between the discounted value of the

commitment and the fair value of the plan assets (referred

to as the «corridor» method). The proportion of said booked

differences is equal to the surplus defined above divided by

the average residual working lives of the beneficiaries. If a

plan has plan assets, these are valued at fair value at the

balance sheet date and are subtracted from the recorded

commitments.

The annual charge booked under personnel expenses for

defined benefit plans includes:

� additional entitlements vested by each employee (current

service cost);

� interest costs arising from the unwinding of the discounting

effect;

� the expected return on plan assets (gross yield);

� the amortisation of actuarial gains and losses and past

service cost;

� the effect of settlement or curtailment of plans.



Other long-term benefits

IAS 19 defines long-term benefits as benefits paid to

employees more than 12 months after the end of the period

in which they rendered the related service.

In various Group companies, staff may benefit from time

savings accounts as well as seniority bonuses. These

obligations are valued using the same actuarial method

described above and are provisioned in full (including any

actuarial gains or losses). These plans do not have plan

assets. The different commitments and the assumptions

used are detailed in Note 21. Commitment valuations

are performed by an independent actuary once a year.

For commitments excluding time savings accounts, the

valuation made on December 31 was calculated on the basis

of data as at August 31. For commitments linked to time

savings accounts, the valuation made on December 31 was

calculated on the basis of data as at December 31.

Share-based payments

As the Group does not issue listed shares, its employees are

entitled to the equity instruments of the majority shareholder.

Share-based payments include payments in equity

instruments and cash payments, whose amount depends

on the performance of equity instruments.

Under the employee shareholder scheme, all the Group’s

current and former staff are entitled to participate in the

parent company’s capital increase reserved for employees.

During the period in which the employees subscribe to

parent company shares, Crédit du Nord Group books, on

a straight-line basis, a personnel expense equivalent to the

difference between the fair value of the shares acquired and

the subscription price paid by the employee.

The fair value of the acquired securities takes into account

the cost of the associated legal obligatory holding period,

estimated using interest rates available to beneficiaries to

estimate the free disposal ability.

The overall discount therefore takes into account the total

number of shares subscribed by employees, the difference

between the acquisition price fixed by the Board of Directors

and the share price on the day of the announcement of the

subscription price, as well as the cost of the holding period

as defined by financial market parameters.

This accounting treatment complies with the provisions of

the CNC statement dated December 21, 2004, relating to

company savings plans.

Société Générale Group’s stock option plans offer certain

employees of Crédit du Nord Group the option of purchasing

or subscribing to Société Générale shares. Under IFRS 2,

these stock option plans are treated as share-based

payments.

If the Group has adequate statistics on the behaviour of

option beneficiaries, Group stock option plans are valued by

an independent actuary using a binomial model. If this data is

not available, the Black & Scholes model is used. The options

are valued on the date on which the employee is notified of

the award, without waiting for the conditions that trigger the

award to be met.

The cost of the plan, measured at the assignment date,

is booked under “Personnel expenses” on a straight-line

basis over the vesting period, which is the period between

the award date and the date at which the options can first

be exercised and recognised in shareholders’ equity, in

accordance with IFRIC 11.

Z Income taxes (IAS 12)

The income tax expense includes:

� current income tax for the fiscal year including dividend

tax credits and tax credits actually used for tax settlement

purposes. Said tax credits are booked under the same line

item as the income to which they relate;

� deferred taxes.

Current income tax

In France, standard income tax is 33.33%. Since January

1, 2007, long-term capital gains on equity investments

have been taxed at 15% for shares in companies whose

main activity is real estate and tax-exempt for other equity

investments (subject to a share for fees and expenses of

5% of net income on capital gains during the fiscal year).

Added to this is a Social Security Contribution of 3.3% (after a

deduction of EUR 0.763 million) initiated in 2000. In addition,

under the regime of parent companies and subsidiaries,

dividends received from companies in which the equity

investment is at least 5% are tax-exempt (with the exception

of a share for fees and expenses equivalent to 5% of the

dividends paid).

Tax credit arising in respect of revenues from receivables

and security portfolios, when they are effectively used for the

settlement of corporate tax due for the fiscal year, are booked

under the same line item as the revenues to which they relate.

The corresponding income tax expense is kept in the income

statement under “Income tax”.



Deferred taxes

Deferred taxes are recognised whenever there is a temporary

difference between the book values of assets and liabilities

on the balance sheet and their respective tax base, where

said differences will have an impact on future tax payments.

Deferred taxes are calculated based on a tax rate which has

been approved or almost approved and should be in effect

at the time when the temporary difference will reverse. These

deferred taxes are adjusted in the event of a change in the tax

rate. Their calculation is not subject to discounting.

In France, the «Contribution Economique Territoriale»

(CET), established by the 2010 Finance Act published on

December 31, 2009, will replace the professional tax as

from January 1, 2010; the expense corresponding to this

contribution shall be booked entirely to «Other administrative

expenses» and shall not be recorded under taxes on

the income statement. The implementation of this new

contribution therefore had no impact on the tax rate used at

December 31, 2009 for the determination of deferred taxes.

Deferred tax assets may result from temporary deductible

differences or tax loss carry forwards. Deferred tax assets

are only recognised if it is likely that the tax entity in question

has the prospect of recovering them over a given time period,

particularly by deducting these differences and tax loss carry

forwards from future profits.

Current and deferred taxes are booked to tax income or

expenses, under «Corporate tax» on the consolidated

income statement, with the exception of deferred taxes

relating to gains or losses booked directly to equity amongst

«Unrealised or deferred gains or losses», for which the

expense or income is booked to the same line under equity.

These deferred taxes are calculated according to the liability

method by applying the expected effective tax rate (including

temporary increases) for the period in which the tax asset is

to be applied to income. The amount of deferred tax assets

and liabilities recognised in this manner is detailed in Note 12

to the balance sheet.

Since fiscal year 2000, Crédit du Nord has opted to apply

the Group’s tax regime to those of its subsidiaries in which it

holds a direct or indirect ownership interest of at least 95%.

The convention adopted is that of neutrality.

Z Insurance activity

General framework

Antarius, a mixed (life and non-life) insurance company, is

the Group’s only consolidated insurance company, which is

jointly held with Aviva.

Capitalisation reserve

The capitalisation reserve of insurance companies consists

of capital gains generated on the sale of obligations and

is designed to offset subsequent capital losses. The

capitalisation reserve is split between technical reserves and

shareholders’ equity according to forecasts of future capital

losses and therefore of the use of reserves. As the recognition

of part of the capitalisation reserve under shareholders’

equity generates a taxable temporary difference, Credit du

Nord Group records a deferred tax liability in its consolidated

financial statements

Financial assets and liabilities

The financial assets and liabilities of companies which are

part of the subsidiary Antarius are booked and valued using

methods described above for the valuation of financial

instruments.

Underwriting reserves of insurance companies

Under IFRS 4 on insurance contracts, underwriting reserves

for life and non-life insurance contracts are still measured

using the methods defined under local regulations.

Embedded derivatives which are not valued with reserves

are booked separately.

Under the “shadow accounting” principles defined in IFRS

4, an allocation to a provision for deferred profit-sharing is

booked in respect of insurance contracts that provide for

discretionary profit-sharing. This provision is calculated to

reflect the potential rights of policyholders to unrealised

capital gains on financial instruments measured at fair value

or their potential liability for unrealised losses.

IFRS 4 also requires that a liability adequacy test be carried

out to assess whether underwriting reserves are sufficient.

Z Terms and conditions for establishing

fair value

Fair value is the amount for which an asset can be exchanged,

or a liability settled, between knowledgeable, willing parties in

an arm’s length transaction.

The fair value used to measure a financial instrument is, firstly,

the listed price where the financial instrument is listed on an

active market. In the absence of an actively traded market,

fair value is determined using valuation techniques.

A financial instrument is regarded as listed on an active

market if quoted prices are readily and regularly available

from an exchange, dealer, broker, pricing service or regulatory

agency, and those prices represent real and regularly

occurring transactions on an arm’s length basis.



A market is considered to be inactive on the basis of

indicators such as the significant decline in trading volumes

and the level of activity on the market, the significant disparity

between prices available over time and between the different

market operators mentioned above or the length of time that

has transpired since the most recent transactions took place

on the market on an arm’s length basis.

Where the financial instrument is traded on different markets

and the Group has immediate access to these markets, the

financial instrument’s fair value is represented by the most

beneficial market price. Where there is no listing for a given

financial instrument, but the components of the instrument

are listed, fair value is equal to the sum of the listed prices

of the various components of the financial instrument and

including the buy or sell price of the net position, given the

direction of the transaction.

Where the financial instrument’s market is not actively

traded, its fair value is determined using valuation techniques

(internal valuation models). Depending on the financial

instrument, these include the use of data derived from recent

transactions, fair values of substantially similar instruments,

discounted cash flow models, option valuation models and

valuation parameter models. These valuations are adjusted

notably to reflect (where applicable and depending on the

financial instruments in question and their associated risks)

the buy or sell price of the net position and model risks in the

case of complex products.

Where observable market data are used as valuation

parameters, fair value is equal to market price, and the

difference between the transaction price and the value

derived from the internal valuation model, which represents

the sales margin, is immediately booked to the income

statement. However, where the valuation parameters are

not observable or the valuation models are not recognised

by the market, the financial instrument’s fair value at the time

of the transaction is deemed to be the transaction price

and the sales margin is generally recorded on the income

statement for the duration of the product’s life, except

where held to maturity or where sold prior to maturity for

certain products, given their complexity. For issued products

subject to significant redemptions on a secondary market

and products for which there are listings, the sales margin is

recorded on the income statement in accordance with the

method used to determine the price of the product. Where

a product’s valuation parameters become observable, the

part of the sales margin not yet booked is recorded on the

income statement.

The methods described below are used by the Group to

determine the fair value of financial instruments carried at fair

value through profit or loss and financial instruments carried

on the balance sheet at amortised cost, for which the fair

value is given in the notes to the financial statement purely for

information purposes.

Fair value of securities

Listed securities

The fair value of listed securities is determined on the basis

of their market price at the balance sheet date.

Unlisted securities

� the fair value of unlisted equity instruments as the

proportion of the restated net asset value that the

securities represent, when possible, as the last known

price paid for the securities in purchase, subscription

or sale transaction, taking into account certain potential

valuations of assets or liabilities.

� for debt instruments, fair value is determined by

discounting future cash flows to present value at market

rates.

Securities containing embedded derivatives

In the case of securities containing embedded derivatives,

the fair value is calculated for the combined instrument.

Fair value of loans

At Crédit du Nord Group, fair value of the following assets is

assumed to be their carrying amount:

� short-term loans (with an initial maturity of one year or

less), insofar as their sensitivity to interest rate risk and

credit risk for the fiscal year is negligible;

� floating-rate loans, due to the frequency of interest rate

adjustments (at least once a year for all products), except

in the case of a significant variation in the credit spread

of a borrower.

In the case of fixed-rate loans with an initial maturity of over

one year, and in the absence of an active market for bank

loans, Crédit du Nord Group decided to determine the fair

value of these assets by using internal valuation models. The

method used consists in discounting to present value the

future recoverable flows of principal and interest payments

over the remaining term to maturity at the interest rate on new

lending in the month of calculation, for groups of similar loans

with the same maturity.

Fair value of finance lease contracts

Crédit du Nord Group determines the fair value of finance

lease contracts using internal valuation models:

� for property leases (Norbail Immobilier), all future

recoverable cash flows are discounted to present value

for the remaining term of the contract, at the market rate

increased by the initial margin on the contract.



� for equipment leases (Star Lease), all remaining payments

(including their residual value) are discounted to present

value over the remaining term of the contract at the

average weighted interest rate on new lending in the

previous month.

Fair value of financial guarantees given

Given the nature of the financial guarantees given by Société

Générale Group, fair value is taken to be the same as book

value.

Fair value of debt

In general, in the case of floating-rate debt, current account

deposits and debts with an initial maturity of one year or less,

fair value is assumed to correspond to their carrying amount.

For fixed-rate borrowing with initial maturities of more than

one year, and in the absence of an actively traded market

for these debts, fair value is taken to be the present value of

future cash flows discounted at the market rate in effect at

the balance sheet date.

For deposits in regulated savings accounts excluding PEL

contracts, Crédit du Nord Group considers that the applicable

rate is a market rate as it is identical for all establishments in

the sector and the carrying amount is therefore considered

to be representative of their fair value.

The fair value of PEL deposits is assumed to be their carrying

amount minus any provisions for PEL accounts

Fair value of debt securities

Negotiable medium-term notes, excluding structured issues,

are booked at amortised cost. The fair value of issued

negotiable medium-term notes is determined using internal

valuation models and by discounting future cash flows using

a zero coupon yield curve.

Structured issues of negotiable medium-term notes are

booked at fair value, which is determined either from prices

obtained from counterparties or from internal valuation

models that use observable market parameters.

The fair value of the Crédit du Nord Group’s certificates of

deposit is assumed to be their carrying amount, insofar as

all the certificates of deposit have maturities of less than one

year.

Fair value of subordinated debt

Given that “titres participatifs” are quoted on an active

market, their fair value is determined on the basis of their

quoted price at the balance sheet date.

Redeemable subordinated notes are comparable to listed

bonds and their fair value is taken to be their quoted price on

Euronext at the balance sheet date.

Fair value of financial derivatives

Interest rate derivatives (interest rate swaps and

options)

Crédit du Nord Group calculates the fair value of interest

rate derivatives using internal valuation models that take into

account market data. As a result, the fair value of swaps

is calculated by discounting future interest flows to present

value. The fair value of interest rate options is calculated on

the basis of valuations with measurements of future events,

in accordance with the Black & Scholes method.

Forward contracts

These are derivative financial instruments carried at fair value

on the balance sheet, with changes in fair value recognised

in profit or loss. The fair value of a forward contract is

determined by the remaining forward term at the balance

sheet date.

Fair value of fixed assets

The fair value of the Group’s investment property is

determined on the basis of an external assessment by an

independent property expert.

The most important properties are assessed annually and

other properties every three to four years (unless a particular

event has a significant impact on the value of the asset).

Between each appraisal, fair value is estimated using internal

valuation models (capitalisation calculation)



� N ote 2Consolidation scope

31/12/2009 31/12/2008

Consolidation

method

Ownership

interest

Ownership

voting rights

Consolidation

method

Ownership

interest

Ownership

voting rights

Crédit du Nord

28, place Rihour

59800 Lille full Consolidating company full Consolidating company

Banque Rhône-Alpes

20-22, boulevard Edouard Rey

38000 Grenoble full 99.99 99.99 full 99.99 99.99

Banque Tarneaud

2-6, rue Turgot

87000 Limoges full 80.00 80.00 full 80.00 80.00

Banque Courtois

33, rue de Rémusat

31000 Toulouse full 100.00 100.00 full 100.00 100.00

Banque Kolb

1-3, place du Général-de-Gaulle

88500 Mirecourt full 99.87 99.87 full 99.87 99.87

Banque Laydernier

10, avenue du Rhône

74000 Annecy full 100.00 100.00 full 100.00 100.00

Banque Nuger

7, place Michel-de-l’Hospital

63000 Clermont-Ferrand full 64.70 64.70 full 64.70 64.70

Norbail Immobilier

50, rue d’Anjou

75008 Paris full 100.00 100.00 full 100.00 100.00

Star Lease

59, boulevard Haussmann

75008 Paris full 100.00 100.00 full 100.00 100.00

Etoile ID


75008 Paris full 100.00 100.00 full 100.00 100.00

Norfinance Gilbert Dupont et Associés

42, rue royale

59000 Lille full 100.00 100.00 full 100.00 100.00

Societe de Bourse Gilbert Dupont

50, rue d’Anjou

75008 Paris full 100.00 100.00 full 100.00 100.00

Norimmo


75008 Paris full 100.00 100.00 full 100.00 100.00

Turgot gestion

2-6, rue Turgot

87000 Limoges full 80.00 100.00 full 80.00 100.00

Etoile Gestion (1)


75008 Paris

entity removed from consolidation scope

at December 31, 2009 full 97.03 99.99

Etoile Gestion Holding (1)


75008 Paris full 97.73 100,00 - - -

(1) The Etoile Gestion shares held by CDN Group entities were contributed to Etoile Gestion Holding at December 31, 2009.

On the same day, Etoile Gestion Holding then contributed the newly held Etoile Gestion shares to Amundi, a company created from the merger of the asset management

activities of the Société Générale and Crédit Agricole groups.

Subsequent to this transaction, Etoile Gestion Holding held 3.0% of Amundi’s capital.



31/12/2009 31/12/2008

Consolidation

method

Ownership

interest

Ownership

voting rights

Consolidation

method

Ownership

interest

Ownership

voting rights

Anna Purna


75008 Paris full 100.00 100.00 full 100.00 100.00

Nice Broc


75008 Paris full 100.00 100.00 full 100.00 100.00

Nice Carros


75008 Paris full 100.00 100.00 full 100.00 100.00

Kolb Investissement


75008 Paris full 100.00 100.00 full 100.00 100.00

Nord Assurances Courtage

28, place Rihour

59800 Lille full 100.00 100.00 full 100.00 100.00

Norbail Sofergie


75008 Paris full 100.00 100.00 full 100.00 100.00

Sfag


75008 Paris full 100.00 100.00 full 100.00 100.00

Partira


75008 Paris full 100.00 100.00 full 100.00 100.00

Crédinord Cidize


75008 Paris full 100.00 100.00 full 100.00 100.00

SC Fort De Noyelles


75008 Paris full 100.00 100.00 full 100.00 100.00

Banque Pouyanne

12, place d’armes

64300 Orthez equity 35.00 35.00 equity 35.00 35.00

Dexia-C.L.F Banque

1 passerelle des Reflets

Tour Dexia La Défense 2

92919 La Défense Cedex

entity removed from consolidation scope

at December 31, 2009 equity 20.00 20.00

Antarius (1)


75008 Paris proportionate 50.00 50.00 proportionate 50.00 50.00

(1) Including sub-consolidated insurance UCITS.

In addition, the following companies, in which the Group holds

ownership interests ranging from 33.21% to 100%, were not

included in the consolidation scope: Starquatorze, Starquinze,

Starseize, Stardixsept, Stardixhuit, Starvingt, Star vingt trois,

Starvingt six, Starvingt sept, Starvingt huit, Starvingt neuf,

Startrente, Startrente quatre, Startrente cinq, Startrente six,

Startrente sept, Startrente huit, Startrente neuf, Starquarante,

Amerasia 3, Amerasia 4, Silk1, Snc Obbola, Snc Wav II,

Immovalor service, Cofipro, Scem Expansion, Snc Hedin, Snc

Legazpi, Snc Nordenskiöld and Snc Verthema.



� Note 3Risk management

This note describes the main risks incurred on the Group’s

banking activities, i.e.:

� credit risk: the risk of losses stemming from the inability of

a counterparty to meet its financial commitments;

� structural risk: the risk of loss or of residual depreciation

in balance sheet items arising from variations in interest

rates or exchange rates;

� liquidity risk: the risk that the Group may not be able to

meet its financial commitments when they mature;

� market risk: the risk of loss resulting from changes in

market rates and prices, in correlations between these

elements, and in their volatility.

CREDIT RISK

The provision of loans makes a significant contribution to

Crédit du Nord Group’s development and results. However,

it also exposes the Group to credit and counterparty risk,

i.e. to the risk of partial or complete default on the part of

the borrower.

For this reason, all lending activities are monitored and

controlled by a dedicated organisational structure, the risk

function, which is independent from the commercial divisions

and coordinated by the Central Risk Division (DCR), and are

subject to a body of rules and procedures governing the

granting of loans, delegation of responsibilities, monitoring

of risks, rating and classification of risks, identification of

deteriorations in credit risk and loan impairment.

Z Organisation

The Central Risk Division, which reports directly to the

Chairman of Crédit du Nord, contributes to the development

and profitability of the Group by ensuring that the risk

management framework in place is both sound and effective.

To this end, it ensures that a consistent approach to risk

assessment and monitoring is applied at the Group level.

� It assists in the definition of the Group’s credit policies and

oversees its implementation;

� It defines or validates methods and procedures for

analysing, rating, approving and monitoring risk;

� It contributes to the assessment of credit risk during

the loan granting process by giving an opinion on the

transactions put forward by the commercial divisions;

� It takes part in controlling and provisioning risks, and in the

recovery of non-disputed doubtful loans;

� It identifies all Group risks;

� It monitors the consistency and adequacy of the risk

management information system.

The Central Risk Division reports on its activity and general

changes in the Group’s risk exposure to the General

Management at Monthly Risk Committee meetings. This

committee takes decisions on the main strategic issues: risk-

taking policies, measurement methods, analyses of portfolios

and of the cost of risk, detection of credit concentrations, etc.

Each region of Crédit du Nord parent company and each

Crédit du Nord banking subsidiary has a Risk Division which

reports to the Regional Manager or Subsidiary Chairman

and is responsible for implementing the Group’s credit policy

and managing risk exposure within their particular region or

subsidiary. The Risk Divisions report on a functional level to

the Central Risk Division.

Z Procedures and methods

Loan approval

The Group has a strict procedure for the provision of loans

to counterparties:

� a preliminary examination is conducted of all applications

for loans to ensure full information has been obtained

before any risk is incurred;

� aid in the decision-making process via the establishment

of counterparty and loan ratings;

� analysis and decision-making within the sales units and

risk units at the most relevant level in accordance with the

risk involved;

� decisions to grant loans must be formally set out in a

dated and signed written or electronic document that

specifies the limits of the commitment and the period of

validity of the approval.

� the notion of Group is integrated into risk appreciation

and an internal lead manager is designated for each

Group identified, who is responsible for presenting a

consolidated credit application.



The lending procedure also complies with a number of

the core principles of the Group’s credit policy which are

designed to limit counterparty risk.

� loans are mainly provided for the financing of operations

and customers in mainland France. However, loans may

be provided to certain neighbouring or OECD member

countries, under specific conditions;

� division and distribution of risk;

� counter-guarantees must be sought from specialised

companies such as CREDIT LOGEMENT for residential

property loans and OSEO for loans to professionals and

businesses;

� wherever possible, loans provided to finance a business’s

operating cycle should be secured with customer

receivables;

� Investments in equipment and property by professional

and business customers should preferably be funded

through lease finance agreements;

� guarantees and collateral are systematically sought.

Measurements of internal ratings system risks

For several years, the Group has used internal quantitative

models for measuring credit risk as a tool in the loan approval

process. These models have gradually been extended to

include the main customer markets in which the Group

operates.

Beginning in 2005, these internal rating models (some of

which were based on Société Générale Group models) were

amended to take account of new regulatory requirements.

There are three pillars to the Group’s internal rating system

for the business customer market:

� internal rating models drawing on:

– the counterparty rating (debtor’s probability of default

at one year);

– the loan rating (loss in the event of default);

� a body of procedures which covers banking principles and

the rules for using the models (scope, frequency of rating

revision, approval procedure, etc.);

� the human judgment of those involved in the ratings

process who apply the models in compliance with the

relevant banking principles and whose expertise is

invaluable in drawing up the final ratings.

The Rating Systems Governance unit, created in 2007,

oversees the adequacy of ratings models and their rules of

use, and monitors compliance with rating procedures.

Across all of its operating markets, the Group has

progressively developed its credit risk management policy,

with ratings now forming an integral part of its day-to-day

operations.

Risk management and control

All employees of commercial and risk functions are

responsible for risk management within the Group. It is

incumbent upon all employees to observe the limits and

terms of loan decisions, show vigilance and respond quickly

in detecting the deterioration of a counterparty’s financial

situation, and take the necessary measures to reduce the

risk incurred by the Bank. Loan decisions are addressed in

a monthly report.

The purpose of risk control is to continuously verify the

quality of counterparty risks to which Crédit du Nord Group

is exposed through its lending operations, and to make sure

that its commitments are classified in the appropriate risk

categories. This is an integral part of the processes defined

by the Group’s three-level control system (supervisory,

permanent and periodic controls).

The Central Risk Division and Legal Affairs and Controls

Division have developed risk analysis tools with a view to

optimising risk controls: these tools are updated on a regular

basis, notably to adjust to regulatory changes.

Management of non-disputed doubtful loans is usually

conferred to dedicated teams (out-of-court collection of

individual customer loans, special affairs, etc.). Where

doubtful loans become disputed, however, they are handed

over to teams specialising in collections of disputed loans.

Provisions for impairment

A counterparty is deemed to be in default where any of the

following takes place:

� a significant deterioration in the counterparty’s financial

situation creates a strong probability that it will not be able

to meet all of its commitments and thus represents a risk

of loss for the bank;

� one or more instalments have gone unpaid for at least 90

days and/or a collection procedure is instigated (180 days

for housing loans);

� a proceeding such as bankruptcy, compulsory liquidation

or legal protection is underway.

Once reclassified, doubtful loans are usually reviewed to

determine the possibilities of recovering the Bank’s funds.

This analysis takes into account the financial position of the

counterparty, its economic prospects and the guarantees

called up or which may be called up. The collection flows

thus determined are discounted to calculate the appropriate

level of provisioning.



The appropriateness of these provisions is reviewed quarterly,

under the supervision of the Central Risk Division.

Crédit du Nord also sets aside general portfolio based

provisions, which are reviewed quarterly, in order to factor in

any credit risks incurred on similar portfolio segments before

any impairments are recorded at an individual counterparty

level.

Z Credit risk exposure

The table below outlines the credit risk exposure of the Group’s

financial assets before any bilateral netting agreements and

collateral (notably any cash, financial or non-financial assets

received as collateral and any guarantees received from legal

entities).

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Assets at fair value through profit or loss (excluding floating-rate

securities) 131.0 262.8 -131.8 -50.2

Hedging derivatives 274.5 213.3 61.2 28.7

Available-for-sale financial assets (excluding floating-rate securities) 5,248.0 5,331.4 -83.4 -1.6

Due from banks 3,500.5 5,390.0 -1,889.5 -35.1

Customer loans 23,476.5 23,769.7 -293.2 -1.2

Revaluation differences on portfolios hedged against interest rate risk 161.0 155.7 5.3 3.4

Lease financing and similar agreements 1,859.2 1,836.0 23.2 1.3

Held-to-maturity financial assets 58.2 59.4 -1.2 -2.0,

Exposure of balance sheet commitments, net of impairments 34,708.9 37,018.3 -2,309.4 -6.2

Financial commitments given 3,102.8 3,060.6 42.2 1.4

Financing guarantees given 8,175.7 7,698.7 477.0 6.2

Provisions on guarantees and endorsements -35.5 -22.0 -13.5 61.4

Exposure of off-balance sheet commitments, net of impairment 11,243.0 10,737.3 505.7 4.7

TOTAL 45,951.9 47,755.6 -1,803.7 -3.8

Z Additional analysis of the loan portfolio

(IFRS 7)

This analysis covers concentration risk as well as unpaid or

impaired loans.

Disclosures relating to risk concentration

Crédit du Nord Group’s core business is Retail Banking

in France, which naturally ensures diversification of

risks. Concentration risks are monitored with respect to

counterparties and economic sectors.

� counterparty concentration risk is reviewed during

the loan approval phase, during which the Group’s

commitments are systematically summarised: it is also

subject to a special half-yearly review (along with sector

concentration risk). At September 30, 2009, commitments

linked to the top 10 counterparties accounted for 10.5%

of outstandings for Crédit du Nord Group’s business and

professional customers (excluding lease finance and

disputed loans), i.e. representing no change year-on-

year. Of these counterparties, the top three were major

construction companies with commitments primarily in

the form of guarantees on very diversified markets (with

low historical risks).

� sector concentration risk is reviewed on a half-yearly

basis (at March 31 and September 30). At September

30, 2009, a single sector accounted for over 10% of

outstandings for the Group’s business and professional

customers: construction, with a rather favourable

positioning in terms of the type of risk (see above). The

No. 2 sector was wholesale trade (8%), comprised of

highly divided outstandings. All other sectors accounted

for less than 5% of business and professional customer

outstandings.



Breakdown in loan outstandings

Gross outstandings(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Performing and not unpaid or impaired 24,536.8 24,288.0 248.8 1.0

As a % of total gross outstandings 93.2 % 94.3%

Unpaid but not impaired 139.7 109.1 30.6 28.0

As a % of total gross outstandings 0.5% 0.4%

Impaired 1,653.4 1,364.3 289.1 21.2

As a % of total gross outstandings 6.3% 5.3%

TOTAL GROSS OUTSTANDINGS 26,329.9 25,761.4 568.5 2.3

The relative percentage of gross impaired outstandings rose in 2009 due to the significant overall deterioration in the economic

environment. At December 31, 2009, they accounted for 6.3% of total outstandings, vs. 5.3% at end-2008.

Unimpaired outstandings with past due amounts

Unimpaired outstandings with past due amounts increased by 28% in 2009, also due to the worsening economic environment.

The total amount nevertheless remained low (0.5% of outstanding loans).

(in EUR millions) 0-29 days 30-59 days 60-89 days 90-179 days 180 days-1 yr > 1 yr TOTAL

Business and institutional customer

loans 13.3 1.9 1.3 0.7 0.8 - 18.0

Very small company & property

company loans 15.0 6.2 4.0 2.9 0.7 1.5 30.3

Mortgage lending 36.0 18.5 9.1 7.9 1.9 - 73.5

Other individual customer loans 13.2 2.5 1.1 0.9 0.2 - 17.8

TOTAL 77.5 29.1 15.6 12.4 3.7 1.5 139.7

The amounts presented in the table above refer to the total

amounts of loans (remaining principle, interest and unpaid

portions) with past due amounts. These loans primarily

concern payments less than 90 days overdue.

When payments are more than 90 days overdue (180 days

for property loans), the loans are reclassified as “doubtful

loans”.

A small number of customers may, on an exceptional basis,

be kept or reclassified in the performing loans category where

they agree to rectify their payment status.

Due to the impact of the economic climate, our business

customers saw a considerable increase in overdue

payments from their clients in 2009. At December 31, 2009,

these overdue payments totalled EUR 12.2 million for our

customers in the performing loans category on this market

(vs. EUR 4 million at end-2008).

Impaired loans reclassified as performing loans

after renegotiation

“Renegotiated” loans cover al l customer groups.

Renegotiated loans are loans that have been restructured

(in terms of principal and/or interest rates and/or maturities)

due to the probability that the counterparty will be unable to

meet its commitments in the absence of such a restructuring.

This does not include commercial renegotiations freely

entered into by the Bank in order to maintain the quality of its

relations with a customer.

These loans are identified from automated data retrieval

for small loans to individual customers, and from reporting

forms for other loans. They correspond to loans restructured

between October 1, 2007 and December 31, 2008, when

they were in default, and for which their post-restructuring

status qualified them for reclassification as performing loans.

The amount of loans restructured since October 1, 2008

was insignificant (EUR 0.5 million) at the en of 2009, as the

majority of the loans restructured over the period were still

identified as being in default at December 31, 2008.

Crédit du Nord Group’s banking practices call for most

customers whose loans have been renegotiated to be

maintained in the “impaired loans” category, as long as the

bank remains uncertain of their ability to meet their future

commitments (definition of default under Basel II).



Guarantees on impaired loans or loans with

past due amounts

In 2006, Crédit du Nord developed an IT application for

managing guarantees received by the Bank.

At end-2007, Crédit du Nord’s risk management systems

began using this new database, with the exception of data

relating to non-performing (disputed) loans, in the process of

being incorporated into the database.

The following method was used to calculate the rate of loans

covered by guarantees: the amount of guarantees was

capped at the amount of the loan guaranteed, on a loan by

loan basis. As a result, certain guarantees were not included,

such as guarantees on loans already benefiting from an

intrinsic guarantee (e.g. those linked to the mobilisation of

customer receivables).

� For individual customers (including property investment

companies owned by individuals): mortgages were

considered as fully guaranteed; for other medium-term

loans to property investment companies, guarantees were

noted at their recorded value in the database. By default,

other loans were considered as not covered by guarantees.

� For other customers: short-term loans were considered

as not covered by guarantees, with the exception of

receivable-backed loans, which were considered as fully

guaranteed.

Mortgages were considered as fully guaranteed; for other

medium-term loans, guarantees were noted at their recorded

value in the database.

Some guarantees were not counted because their real value

in the event are called is difficult to estimate (particularly for

pledges of unlisted securities, personal sureties except for

those of major guarantors, etc.).

Guarantees on impaired outstandings at Dec. 31, 2009

(in EUR millions) Doubtful Coverage rate

Non-performing

doubtful Coverage rate

Business and institutional customer loans 179.8 29.6% 278.7 NC

Very small company & property company loans 184.3 55.8% 292.5 NC

Mortgage lending 148.1 100.0% 94.9 NC

Other individual customer loans 98.0 - 174.8 NC

TOTAL 610.2 49.9% 840.9 NC

For our Business customers, the magnitude of the crisis in 2009 resulted in the accelerated declaration of default of previously

well-rated counterparties (thus with less well-guaranteed outstandings). Hence the change in 2009 in the rate of loans covered

by guarantees in this customer category.

Guarantees on unimpaired outstandings with past due amounts at December 31, 2009

(in EUR millions) Due amounts on loans Coverage rate Other due amounts Coverage rate

Business and institutional customers 4.3 93.4% 13.7 NC

VSEs and Property investment companies 26.0 82.0% 4.3 NC

Housing loans to individual customers 73.5 100.0% - NC

Other loans to individual customers 14.5 - 3.4 NC

TOTAL 118.3 83.6% 21.4 NC

For business customers, the Risk function validates procedures governing the periodic revaluation of guarantees, which is

notably performed during annual loan reviews and systematically when a loan is reclassified as doubtful.



STRUCTURAL INTEREST RATE AND EXCHANGE RATE RISKS

With regard to the Group’s structural risk management, Crédit

du Nord Group distinguishes the management of structural

balance sheet risks (Asset and Liability Management or ALM)

from the management of risks related to trading activities.

� Structural interest rate and exchange rate risks are incurred

on client-driven and propriety activities (transactions

involving shareholders’ equity and investments

– Wherever possible, client-driven transactions are

hedged against interest rate and exchange rate risks,

either through micro-hedging (individual hedging

of each commercial transaction) or macro-hedging

techniques (hedging of portfolios of similar commercial

transactions within a treasury department).

– Interest rate risks on proprietary transactions must also

be hedged as far as possible. There is no exchange

rate risk on these transactions at Crédit du Nord.

The general principle is to reduce positions exposed to

interest rate and exchange rate risk as much as possible

by regularly implementing appropriate hedges.

Consequently, structural interest rate and exchange rate

risks are only borne on residual positions.

� Management of interest rate and exchange rate risks

associated with market activities is addressed in the

section entitled, “Market risks linked to trading activities”.

Z Organisation of the management of

structural interest rate and exchange

rate risks

The principles and standards for managing these risks are

defined by the shareholder. However, each entity is primarily

responsible for managing these risks.

Crédit du Nord Group therefore develops its own models,

measures its risks and sets up hedges on an ad hoc basis,

within the framework defined by these risk management

standards.

The majority shareholder’s assets and liability management

department carries out a Level Two control on the risk

management performed by the entities.

At Crédit du Nord, the ALM division, which reports directly

to the Finance Division and comes under the authority of the

Financial Management Division, is responsible for monitoring

and analysing global, interest rate, liquidity and maturity

transformation risk.

All decisions concerning the management of any interest rate

and/ or liquidity mismatch positions generated by the Group’s

client-driven activities are made by the ALM Committee,

which meets on a monthly basis under the chairmanship of

the Chairman and Chief Executive Officer in 2009 and the

CEO in 2010. A member of the Finance Division from the

majority shareholder also sits on this committee.

It should be noted that the ALM Committee delegates the

management of short-term interest rate risk to the Treasury

and Foreign Exchange Department. This department is

responsible for approving hedging transactions with an initial

maturity of less than one year, needed to limit short-term

interest rate exposure.

The Weekly Cash Flow Committee monitors this exposure by

examining the following indicators each week:

� the short-term fixed interest rate position. In absolute

value terms, this position must remain under EUR 1,500

million.

� exposure to short rates incurred by all transactions, which

is limited to EUR 3 million.

Z Structural interest rate risk

Structural interest rate risk arises from residual positions

(surplus or deficit) in fixed-rate positions with future maturities.

All assets and liabilities of Group banks, excluding those

related to trading activities, are subject to an identical set of

rules governing interest rate risk management.

The Group’s principal aim is to reduce each entity’s

exposure to interest rate risk as much as possible, once the

transformation policy has been defined.

Consequently, Crédit du Nord Group follows a policy of

systematically hedging structural interest rate risk and, where

applicable, implements the hedges needed to reduce the

exposure of Group entities to interest rate movements.

To this end, the overall interest rate risk of Crédit du Nord

Group is subject to sensitivity limits set by the Finance

Committee of the majority shareholder. Sensitivity is defined

as the variation in the net present value of future (maturities

of up to 20 years) residual fixed-rate positions (surplus or

deficits on assets and liabilities) for a 1% parallel shift in the

yield curve. The observance of these limits is verified within

the framework of regular reports to the shareholder. Crédit

du Nord Group’s overall limit is EUR 63.3 million (representing

around 4.3% of shareholders’ equity).



Over 2009, the overall sensitivity of Crédit du Nord Group’s

net present value (measured quarterly for the purpose of Risk

Phase reporting) reached EUR 3.17 million at December 31,

2009, following a parallel shift in the yield curve of +1%.

It remained well below this limit in each quarter, for each

period (short, medium and long term).

Note that a sensitivity limit was set at EUR 1 million for Swiss

francs by the majority shareholder with the aim of issuing

property loans in Swiss francs to Swiss customers.

The sensitivity of the Group’s net present value in Swiss

francs came out at CHF -0.16 million at December 31, 2009,

i.e. EUR - 0.11 million for a parallel shift of +1% of the yield

curve. From an overall standpoint or by period, sensitivity

was below the EUR 1 million limit throughout 2009.

Z Measurement and monitoring

of structural interest rate risk

In order to quantify its exposure to structural interest rate

risks, the Group analyses all fixed-rate assets and liabilities

with future maturities to identify gaps. These positions come

from operations remunerated or charged at fixed rates and

from their maturities.

Assets and liabilities are generally analysed independently

without any a priori matching. Maturities on outstandings are

determined on the basis of the contractual terms governing

transactions (loans, etc.) or based on adopted conventions.

These conventions are the result of models of customer

behaviour patterns (special savings accounts, rates of early

repayments, etc.) as well as conventional assumptions

relating to certain aggregates (principally shareholders’ equity

and sight deposits).

Once the Group has identified the gaps in its fixed rate

positions (surplus or deficit), it calculates their sensitivity (as

defined above) to variations in interest rates. The stress tests

currently used correspond to an immediate parallel shift of

+1% and -1% in the yield curve.

The analysis of structural interest rate risks at Crédit du Nord

revealed that:

� all on- and off-balance sheet transactions are match-

funded, according to their specific characteristics

(maturity, interest rate, explicit or implicit options). A model

developed by the ALM unit («notional balance sheet»

model) is used to monitor indicators of interest rate risk

management, in particular a fixed-rate limit, as well as the

risks associated with options appearing on the balance

sheets of Group entities;

� options risk is also subject to regular monitoring and the

implementation of appropriate hedges (purchases of caps

or swaps);

� sight deposits and regulated savings products are subject

to specific modelling to lock in medium- and long-term

yields. The conservative nature of the models has enabled

the Group’s banks to maintain their interest margin.

Z Structural exchange rate risk

The overall foreign exchange position is kept within

conservative limits and remains small relative to the bank’s

net shareholders’ equity.

Z Hedging of interest rate and exchange

rate risks

In order to protect the bank’s balance sheet against certain

market risks, Crédit du Nord Group uses hedges designated

as fair value hedges for accounting purposes.

It also manages the exposure of its fixed-rate financial assets

and liabilities (mainly loans/borrowings, security issues and

fixed-rate securities) to risks of variations in long-term interest

rates, by setting up hedges recorded as fair value hedges for

accounting purposes, principally using interest rate swaps

and caps.

In order for these transactions to qualify as hedges, the

Group documents the hedging relationship in detail, from

inception, specifying the risk hedged, the risk management

strategy and the way in which the effectiveness of the hedge

will be documented.

The bank’s aim is to prevent an accounting reclassification of

portfolios of hedging derivatives in order to protect the bank

against an unfavourable variation in the fair value of an item

which, as long as the hedge is effective, has no impact on

profit or loss, but could affect it if the item were eliminated

from the balance sheet.

Tests are regularly carried out to prove the hedging

relationship and measure its effectiveness. These tests are

both forward-looking and retrospective.

The future effectiveness of the hedge is calculated using

a sensitivity analysis that integrates probable scenarios for

changes in market parameters.

Retrospective effectiveness is assessed by comparing the

variations in fair value of the hedging instrument with the

variations in fair value of the hedged item. The hedge is

deemed effective if variations in the fair value of the hedged

item are almost fully offset by the variations in fair value of the

hedging instrument, i.e. the ratio between the two variations



is in the 80% - 125% range (sliding quarter-on-quarter

changes).

Effectiveness is measured on a forward-looking basis each

quarter (expected effectiveness over future periods) as well

as retrospectively (actual effectiveness).

In 2009, Crédit du Nord Group restructured the portfolio of

derivatives used to hedge limited adjustable-rate mortgages

in order to better guard against the risk of losses in the

event of interest rate hikes. This restructuring called for the

improvement of the method for assessing the effectiveness

of the hedging of limited adjustable-rate mortgages, which

is now identical to the method used for the accounting

treatment of loans marketed by the network under the

Société Générale brand.

LIQUIDITY RISK

Z Organisation of the management

of liquidity risk

The principles and standards for the management of liquidity

risk are defined by the majority shareholder. As Crédit du

Nord is nevertheless responsible for managing its liquidity

and complying with regulatory restrictions, it develops its

own models, measures its liquidity positions and finances

its activities or reinvests surplus cash in accordance with the

standards defined at the Group level.

Z Measurement and monitoring

of liquidity risk

Crédit du Nord acts as the central refinancing unit of the

Group’s banks and financial subsidiaries. The ALM unit

monitors outstanding loans and regulatory ratios. While

short-term liquidity management is delegated to each

subsidiary as part of its cash management activities and is

subject to certain limits.

Crédit du Nord has had to finance some of its subsidiaries

while maintaining a high level of liquidity. In accordance with

the regulations governing liquidity (CRB regulation 88-01),

Crédit du Nord’s short-term ratio averaged 131% over 2009,

which is significantly higher than regulatory requirements.

Z Mismatch risk

Changes in the structure of the balance sheet are carefully

monitored and managed by the ALM unit in order to

determine and adjust the refinancing requirements of the

Group’s entities.

The elimination of the ratio of capital and long-term funds (by

the Order of June 28, 2007, repealing CRBF Regulation No.

86-17) removed the long-term funding requirement. Crédit du

Nord Group nonetheless decided to continue calculating this

indicator pending the upcoming deployment of an internal

liquidity management application.

Measurement of the Group’s long-term financing

requirements is based on budget estimates and results of

past transactions, making it possible to plan appropriate

financing solutions.

Crédit du Nord Group’s financing requirements result from:

� its commercial activities. The Group saw strong growth

in outstanding housing loans (+7.5%) and capital

expenditure loans (+8.3%) in 2009. Deposits experienced

less sustained growth, however (+4.2% for sight deposits

and +16.2% for special savings accounts);

� and the recovery of commercial paper formerly held by

funds managed by Étoile Gestion: the redemption of

about EUR 1.1 billion in securities over 2007 and 2008 put

pressure on the Group’s financing requirements in 2009.

Despite the impacts of the financial crisis, Crédit du Nord

Group had no trouble securing its financing, mainly thanks

to its substantial, diversified deposits, which account

for a large portion of its short-, medium- and long-term

resources. Short-term deposits with contractual schedules

(term accounts, certificates of deposits and medium-term

negotiable bonds sold to customers) are also closely

monitored on a monthly basis as of 2008. This monitoring

enabled the Group to precisely follow developments in these

outstandings over the year.

To meet its short-term requirements, as part of its cash flow

management, the Group was led to issue a large number

of certificates of deposit (average annual outstandings of

more than EUR 5 billion) and to take advantage of the cash

injections carried out by the ECB (EUR 500 million borrowed

in March, EUR 300 million in April, EUR 750 million in June).

As regards long-term refinancing transactions, Crédit du

Nord Group executed the following financing transactions

over 2009, for a total amount around EUR 2 billion:

� Crédit du Nord launched a EUR 748 million medium- and

long-term structured product programme;

� over the course of 2009, Crédit du Nord obtained

almost EUR 1 billion from the Société de Financement

de l’Economie Française (SFEF). These loans range in

maturity from two to five years;

� Crédit du Nord obtained three loans from the Casse de

Refinancement de l’Habitat totalling EUR 225 million.

These loans range in maturity from four to ten years.



During the liquidity crisis, Crédit du Nord launched a project

to optimise its capital pool. The Group has a large capital

pool providing it with a capacity that exceeds its current

requirements. Works aimed at enhancing the information

system were initiated in order to ensure the optimal

allocation of the collateral pool, in conjunction with the works

undertaken by the shareholder in this area.

A quarterly report on mismatch risk is submitted to the

majority shareholder.

MARKET RISKS LINKED TO TRADING ACTIVITIES

All capital market activities carried out by Crédit du Nord

Group are client-driven. In terms of both products and

regions, Crédit du Nord Group only conducts transactions on

its own behalf in business segments where it has significant

customer interests. The primary purpose of its activities in

this area is to maintain a regular presence on the financial

markets in order to be able to offer its clients competitive

price quotations.

As part of this fundamental strategy

� Crédit du Nord holds only a few positions on derivatives

and regularly matches customer orders through its

shareholder, thereby significantly reducing its exposure to

market and counterparty risks;

� with regard to other instruments, the trading limits

imposed on the cash position in terms of geographic

regions, authorised volumes and the duration of open

positions are determined jointly with the bank’s majority

shareholder and are kept low relative to Crédit du Nord’s

equity.

Although the main responsibility for risk management falls

naturally to the front office managers, responsibility for

supervision lies with a special structure which is part of the

Treasury and Foreign Exchange Department. This structure

notably carries out the following functions:

� permanent monitoring of positions and results, in

collaboration with the front office;

� verification of the market parameters used to calculate

risks and results;

� daily calculation of market risk, using a formal and secure

procedure;

� daily limit monitoring for each activity.

Z Methods of measuring market risk

Market risk is assessed using three main indicators which are

used to define exposure limits:

� the 99% Value at Risk (VaR) method, in accordance

with the regulatory internal model, a composite indicator

for day-to-day monitoring of market risks incurred by the

bank, in particular covering most of the regulatory scope

of its trading activities;

� stress-test measurements, based on the decennial

shock-type indicator, are established by Société Générale

and transmitted to Crédit du Nord so that it can incorporate

them into its limit monitoring methods;

� complementary limits (sensitivity, nominal, holding

periods, etc.) which ensure consistency between the

total risk limits and the operational limits used by the front

office. These limits also enable risks only partially detected

by VaR or stress-test measurements to be controlled (as

is the case for options).

Value at Risk (VaR) method

This method was introduced at the end of 1996 and is

constantly being improved with the addition of new risk

factors and the extension of the scope covered. The new risk

parameters and changes in the scope of the portfolios are

incorporated by Société Générale into the TRAAB application,

and Crédit du Nord then receives the new updated versions.

Société Générale then uses files sent back by Crédit du Nord

in TRAAB format to calculate the VaR.

The method used is the “historical simulation” method, which

is based on the following principles:

� the creation of a database containing historical information

on the main risk factors which are representative of the

Société Générale Group’s positions (interest rates, share

prices, exchange rates, commodity prices, volatility,

credit spreads, etc.). VaR is therefore calculated using a

database of several thousand risk factors;

� the definition of 250 scenarios, corresponding to one-day

variations in these market parameters over a sliding one

year period;

� the application of these 250 scenarios to the daily market

parameters;

� the revaluation of daily positions, on the basis of the

adjusted daily market conditions, and on the basis of

a revalaution taking into account the non-linearity of

positions.



The 99% Value at Risk is the largest loss that would be

incurred after eliminating the top 1% of the most unfavourable

occurrences: over one year, or 250 scenarios, it corresponds

to the average of the second and third largest losses

observed.

Crédit du Nord has access to an application developed by

Société Générale known as TRAAB (gross annual actuarial

rate of return) used by the Treasury and Foreign Exchange

Department since June 30, 1998, which incorporates the data

(taken from the Treasury and Foreign Exchange Department’s

operating system) required to calculate risk profiles on a daily

basis. This information is also used by Société Générale for

its own consolidated risk monitoring. The model is based on

a historical data series of daily movements in interest rate

or exchange rate instruments, which are applied to daily

positions in order to measure risk with a 99% confidence

interval and sensitivity to 10 basis points.

The table below shows the evolution of the Group’s 99%

Value at Risk over the course of 2009. The values given have

the following characteristics:

� change in the portfolio over a holding period of 1 day;

� a confidence interval of 99%;

� historical data considered for the last 260 business days.

Trading Value at Risk (VaR): breakdown by risk factor

1 day – 99% / FY 2009

(in EUR thousands) Foreign exchange Treasury Currency

Securities and

off-balance sheet

interest rate

Compensation

effect Overall

02/01/2009 -112 -105 -108 110 -215

Minimum -310 -215 -148 NS (1) -329

Maximum -24 -34 -22 NS (1) -75

Average -81 -98 -69 96 -152

31/12/2009 -44 -48 -62 51 -103

LIMITS -1 000 -1 000

(1) Compensation is not significant, minimum/maximum potential losses do not occur on the same date.

A confidence interval of 99% means that over a one-day

period, there is a 99% probability that an eventual loss will

not exceed the defined value.

Compensation is defined as the difference between the

total VaR and the sum of the VaRs per risk factor. It reflects

the extent of elimination between the different type of risks

(interest rate, equity, exchange rate, commodities).



Value at Risk (1 DAY - 99%)

(in EUR thousands)

02/01/2009 02/03/2009 02/05/2009 02/07/2009 02/09/2009 02/11/2009

-200

-300

-400

-100

0

Limitations in the VaR calculation

The VaR assessment is based on a conventional model and

assumptions: the main methodological limitations therein are

as follows:

� the use of «1-day» shocks assumes that all positions can

be unwound or hedged within one day, which is not the

case for some products and in some crisis situations;

� the use of the 99% confidence interval does not take into

account any losses arising beyond this interval; the VaR

is therefore an indicator of losses under normal market

conditions and does not take into account exceptionally

large fluctuations;

� VaR is calculated using closing prices, so intra-day

fluctuations are not taken into account;

� there are a number of approximations in the VaR

calculation. For example, benchmark indices are used

instead of certain risk factors and, in the case of some

activities, not all of the relevant risk factors are taken into

account which can be due to difficulties in obtaining daily

data, and options held in the trading portfolio are not taken

into account.

Crédit du Nord controls the limitations of the VaR model by:

� systematically assessing the relevance of the model by

back-testing to verify that the number of days for which

the negative result exceeds the VaR complies with the

99% confidence interval;

� supplementing the VaR system with stress test

measurements. Note that, in today’s environment of

dislocated markets, the historical 99% 1-day VaR is less

relevant than other risk indicators, such as stress tests.

Z Allocation of limits and organisation of

limit monitoring

Capital market exposure limits are allocated as follows:

a proposal is drawn up internally and presented to the

Executive Committee. If approved, it is transmitted to the

Risk Division of Société Générale (the market risk team) for

their opinion. The proposed limits are reviewed at least every

two years, and the last review was carried out in June 2009.

Once a final opinion has been received, the limits are sent

by Société Générale to the Chairman’s office and are then

compiled and integrated into the daily monitoring and

reporting system.

A monitoring report is submitted daily to Société Générale, in

which any overruns are reported.

Counterparty exposure limits are allocated as follows:

� in the case of banking counterparties, the Treasury and

Foreign Exchange Department opens a file for each

counterparty and records the details of requests for credit

lines by product and duration. The file is then submitted to

the relevant teams at Société Générale and to the Central

Risk Division for approval and validation. The allocated

limits are entered into the daily monitoring and reporting

systems;



� where the counterparty is a customer, the manager in

charge of the account asks for the limits from the Regional

and Subsidiary Risk Divisions. These limits allocated for

the products are then fed into the monitoring systems.

The Finance Division also receives a weekly status report on

results and limits from the Treasury and Foreign Exchange

Department, along with a monthly report indicating changes

in risk exposure and results. The CEO and the Chief Financial

Officer also receive a quarterly report on changes in limits.

� Note 4Cash, due from central banks

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Cash 175.4 166.4 9.0 5.4

Due from central banks 781.5 515.9 265.6 51.5

Related receivables 1.2 1.7 -0.5 -29.4

TOTAL 958.1 684.0 274.1 40.1

Fair value 958.1 684.0



� Note 5 Financial assets at fair value through profit or loss

(in EUR millions)

31/12/2009 31/12/2008

Valuation

determined

using prices

published

on an active

market (L1)

Valuation

technique

based on

observable

market

data (L2)

Valuation

based on

unobservable

parameters

(L3) Total

Valuation

determined

using prices

published

on an active

market (L1)

Valuation

technique

based on

observable

market

data (L2)

Valuation

based on

unobservable

parameters

(L3) Total

ASSETS

TRADING PORTFOLIO

Treasury notes and similar securities - - - - - - - -

Bonds and other debt securities 11.4 - - 11.4 53.1 - - 53.1

Shares and other equity securities 13.9 - - 13.9 25.3 - - 25.3

Other financial assets - - - - - - - -

SUB-TOTAL TRADING ASSETS 25.3 - - 25.3 78.4 - - 78.4

FINANCIAL ASSETS USING FAIR

VALUE OPTION THROUGH PROFIT

OR LOSS

Treasury notes and similar securities - - - - - - - -

Bonds and other debt securities 4.7 114.9 - 119.6 4.3 205.4 - 209.7

Shares and other equity securities (1) 2.2 1,070.5 - 1,072.7 1.7 962.4 - 964.1

Other financial assets - - - - - - - -

SUB-TOTAL OF FINANCIAL ASSETS

USING FAIR VALUE OPTION

THROUGH PROFIT OR LOSS 6.9 1,185.4 - 1,192.3 6.0 1,167.8 - 1,173.8

SUB-TOTAL OF SEPARATE ASSETS

RELATING TO EMPLOYEE BENEFITS - - - - - - - -

TRADING DERIVATIVES

Interest rate instruments - 41.9 - 41.9 - 73.1 - 73.1

Firm transactions - 32.4 - 32.4 - 65.4 - 65.4

Swaps - 32.4 - 32.4 - 65.4 - 65.4

FRA - - - - - - - -

Options - 9.5 - 9.5 - 7.7 - 7.7

Options on organised markets - - - - - - - -

OTC options - - - - - - - -

Caps, floors, collars - 9.5 - 9.5 - 7.7 - 7.7

Foreign exchange instruments - 45.5 - 45.5 - 158.2 - 158.2


Options - 3.5 - 3.5 - 2.5 - 2.5

Equity and index instruments - - - - - - - -

Other forward financial instruments - - - - - - - -

Instruments on organised markets - - - - - - - -

OTC instruments - - - - - - - -

SUB-TOTAL TRADING DERIVATIVES - 87.4 - 87.4 - 231.3 - 231.3

TOTAL ASSETS AT FAIR VALUE

THROUGH PROFIT OR LOSS (1) 32.2 1,272.8 - 1,305.0 84.4 1,399.1 - 1,483.5

(1) Including UCITS.



� Note 5 bisFinancial liabilities at fair value through profit or loss

(in EUR millions)

31/12/2009 31/12/2008

Valuation

determined

using prices

published

on an active

market (L1)

Valuation

technique based

on observable

market

data (L2)

Valuation

based on

unobservable

parameters

(L3) Total

Valuation

determined

using prices

published

on an active

market (L1)

Valuation

technique based

on observable

market

data (L2)

Valuation

based on

unobservable

parameters

(L3) Total

LIABILITIESTRADING PORTFOLIO

Securitised debt payables - - - - - - - -

Amounts payable on borrowed

securities - - - - - - - -

Bonds and other debt securities sold

short - - - - - - - -

Shares and other equity securities sold

short 0.5 - - 0.5 2.8 - - 2.8

Other financial liabilities - - - - - - - -

SUB-TOTAL TRADING LIABILITIES 0.5 - - 0.5 2.8 - - 2.8

TRADING DERIVATIVES

Interest rate instruments - 67.0 - 67.0 - 68.3 - 68.3


Swaps - 59.3 - 59.3 - 61.7 - 61.7

FRAs - - - - - - - -

Options - 7.7 - 7.7 - 6.6 - 6.6

Options on organised markets - - - - - - - -

OTC options - - - - - - - -

Caps, floors, collars - 7.7 - 7.7 - 6.6 - 6.6

Foreign exchange instruments - 41.7 - 41.7 - 133.6 - 133.6


Options - 3.5 - 3.5 - 2.6 - 2.6

Equity and index instruments - - - - - - - -

Other forward financial instruments - - - - - - - -

Instruments on organised markets - - - - - - - -

OTC instruments - - - - - - - -

SUB-TOTAL TRADING DERIVATIVES - 108.7 - 108.7 - 201.9 - 201.9

SUB-TOTAL FINANCIAL LIABILITIES

USING FAIR VALUE OPTION

THROUGH PROFIT OR LOSS - 585.9 - 585.9 - 473.1 - 473.1

TOTAL FINANCIAL LIABILITIES AT

FAIR VALUE THROUGH PROFIT OR

LOSS 0.5 694.6 - 695.1 2.8 675.0 - 677.8

(in EUR millions)

31/12/2009 31/12/2008

Fair value

Amount repayable

at maturity

Difference between

fair value and amount

repayable at maturity Fair value

Amount repayable

at maturity

Difference between

fair value and amount

repayable at maturity

TOTAL OF FINANCIAL LIABILITIES

MEASURED USING FAIR VALUE

OPTION THROUGH PROFIT OR

LOSS (1) 585.9 624.1 -38.2 473.1 557.3 -84.2

(1) Balance sheet liabilities were impacted by the change in fair value of +EUR 16.3 million (at December 31, 2009) attributable to the Group’s own credit risk.

This change corresponds to an expense of EUR -16.3 million booked through profit or loss.



� Note 6Hedging derivatives

(in EUR millions)

31/12/2009 31/12/2008

Assets Liabilities Assets Liabilities

Fair value hedge (1) 274.5 316.7 213.3 282.8

Interest rate instruments

Firm transactions 259.4 316.7 204.6 282.8

Swaps 259.4 316.7 204.6 282.8

Options 15.1 - 8.7 -

Caps. floors. collars 15.1 - 8.7 -

Cash flow hedge - - - -

TOTAL 274.5 316.7 213.3 282.8

(1) Including Macro Fair Value Hedge derivatives.

� Note 7Available-for-sale assets

(in EUR millions)

31/12/2009 31/12/2008

Valuation

determined

using prices

published

on an active

market

(L1)

Valuation

technique

based on

observable

market data

(L2)

Valuation

based on

unobservable

parameters

(L3) Total

Valuation

determined

using prices

published

on an active

market

(L1)

Valuation

technique

based on

observable

market data

(L2)

Valuation

based on

unobservable

parameters

(L3) Total

CURRENT ASSETS

Treasury notes and similar

securities 1,698.0 - - 1,698.0 500.5 - - 500.5

o/w related receivables 7.4 4.7

o/w write-downs - -

Bonds and other debt

securities 1,504.4 2,045.6 - 3,550.0 1,079.6 3,751.3 - 4,830.9

o/w related receivables 41.2 54.2

o/w write-downs -13.1 -9.7

Shares and other equity

securities (1) 1.1 69.1 4.1 74.3 1.0 94.8 3.4 99.2

o/w related receivables - -

o/w impairments -4.5 -4.6

SUB-TOTAL 3,203.5 2,114.7 4.1 5,322.3 1,581.1 3,846.1 3.4 5,430.6

Long-term investment

Securities 5.1 - 370.7 375.8 5.0 0.4 221.0 226.4

o/w related receivables - 0.3

o/w impairments -4.9 -4.7

SUB-TOTAL 5.1 - 370.7 375.8 5.0 0.4 221.0 226.4

TOTAL AVAILABLE-FOR-

SALE FINANCIAL ASSETS 3,208.6 2 114.7 374.8 5,698.1 (2) 1,586.1 3,846.5 224.4 5,657.0

o/w loaned securities - - - - - - -

1) Including UCITS.

(2) o/w EUR 996.8 million in callable securities whose valuation reflects the exercise of the call by the issuer in accordance with market practices.

This amount is spread out over the following call dates:

- EUR 11.6 million in 2010





Movements in available-for-sale assets


Balance at January 1 5,657.0 5,141.0

Acquisitions 3,725.4 1,392.4

Disposals/redemptions/mergers -3,800.6 -728.5

Reclassification (outflows) of available-for-sale financial assets - -33.1 (3)

Change in scope -28.8 (4) -

Gains and losses on changes in fair value booked to equity 159.8 (5) -111.5

Change in write-downs on fixed-income securities booked to equity. -3.4 -9.7

Change in impairment of equity instruments -0.2 0.8

Change in related receivables -10.5 5.1

Foreign exchange differences -0.6 0.5

BALANCE AT DECEMBER 31 5,698.1 5,657.0

(3) Given that certain available-for-sale assets (OBSAARs) were intended to be held to maturity, a reclassification at fair value was carried out between these two categories at

December 31, 2008, in the amount of EUR 33.1 million.

(4) The amount reported on this line corresponds to the removal of Etoile Gestion from the consolidation scope at December 31, 2009.

(5) The difference from the Change in value of financial instruments line under Shareholders’ equity, totalling EUR 126.7 million, came from the Insurance - Deferred profit sharing line

Change in inventory of available-for-sale assets whose valuation is not based on market parameters

(in EUR millions)

Treasury notes

and similar

securities

Bonds and

other debt securities

Shares and other

equity securities

Long term

investment securities Total

Opening balance at January 1, 2009 - - 3.4 221.0 224.4

Acquisitions 161.7 161.7

Disposals/redemptions -0.1 -2.5 -2.6

Transfers to N2 -

Transfers from N2 -

Gains and losses for the period booked to equity 0.8 -9.1 -8.3

Change in write-downs on fixed-income securities

booked through profit or loss -

O/w : increase -

write-back -

others -

Impairment of equity instruments booked through

profit or loss -0.2 -0.2

Change in related receivables -0.2 -0.2

Foreign exchange differences -

CLOSING BALANCE AT DECEMBER 31, 2009 - - 4.1 370.7 374.8



� Note 8Due from banks

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Current accounts 1,282.6 825.9 456.7 55.3

Overnight deposits and loans and others 1,602.6 1,866.6 -264.0 -14.1

Loans secured by overnight notes - - - -


TOTAL DEMAND AND OVERNIGHTS 2,885.6 2,693.7 191.9 7.1

Term deposits and loans 521.3 856.3 -335.0 -39.1

Loans secured by notes and securities - - - -

Securities acquired under term repurchase agreements 0.5 1,716.5 -1,716.0 -100.0

Subordinated loans and participating securities 90.7 89.1 1.6 1.8


TOTAL TERM 615.4 2,696.8 -2,081.4 -77.2

TOTAL GROSS 3,501.0 5,390.5 -1,889.5 -35.1

PROVISIONS FOR IMPAIRMENT -0.5 -0.5 - -

TOTAL NET 3,500.5 5,390.0 -1,889.5 -35.1

Fair value of amounts due from banks 3,500.5 5,389.9

Note that, at December 31 2009, EUR 1,435.5 million of the total amount due from banks represented transactions with Société

Générale Group (EUR 2,017.3 million at December 31, 2008).

Amounts due from banks outside France represented 6.4% of the total amount on the balance sheet. These banks are mainly

situated in the European Economic Area. Other countries represented 1.3% of the balance-sheet outstanding



� Note 9Customer loans

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Trade notes 703.5 758.4 -54.9 -7.2

Related receivables 0.8 0.4 0.4 100.0

TOTAL TRADE NOTES 704.3 758.8 -54.5 -7.2

Other customer loans

Short-term loans 1,894.5 2,146.3 -251.8 -11.7

Export loans 42.3 71.1 -28.8 -40.5

Equipment loans 4,911.5 4,907.2 4.3 0.1

Housing loans 11,674.6 11,137.1 537.5 4.8

Other loans 3,254.7 2,985.8 268.9 9.0


TOTAL OTHER CUSTOMER LOANS 21,834.4 21,319.0 515.4 2.4

Overdrafts 1,669.4 2,054.8 -385.4 -18.8


TOTAL OVERDRAFTS 1,693.0 2,092.8 -399.8 -19.1

GROSS AMOUNT 24,231.7 24,170.6 61.1 0.3

Depreciation for individually impaired loans -783.4 -646.1 -137.3 21.3

Depreciation for groups of homogeneous receivables -32.2 -30.2 -2.0 6.6

DEPRECIATION -815.6 -676.3 -139.3 20.6

NET AMOUNT 23,416.1 23,494.3 -78.2 -0.3

Securities purchased under resale agreements (including related

receivables) 60.4 275.4 -215.0 -78.1

TOTAL AMOUNT OF CUSTOMER LOANS 23,476.5 23,769.7 -293.2 -1.2

Fair value of customer loans 23,743.3 23,278.1

The provisioning rate for doubtful customer loans was 51.9% vs. 50.4% at December 31, 2008 (excluding depreciation for

groups of homogeneous receivables).



Breakdown of other customer loans (1)

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Non-financial customers 21,775.8 21, 245.7 530.1 2.5

Business customers 9,467.1 9,526.3 -59.2 -0.6

Individual customers 11,306.9 10,814.5 492.4 4.6

Local authorities 7.5 9.1 -1.6 -17.6

Professional customers 784.8 775.4 9.4 1.2

Governments and central administrations 95.5 0.7 94.8 -

Others 114.0 119.7 -5.7 -4.8

Financial customers 1.8 1.8 - -

TOTAL BREAKDOWN OF OTHER CUSTOMER LOANS 21,777.6 21,247.5 530.1 2.5


TOTAL OTHER CUSTOMER LOANS (1) 21,834.4 21,319.0 515.4 2.4

(1) The breakdown by sector now includes doubtful loans. Data at December 31, 2008 were restated accordingly.

Other customer loans are mainly based in France (96.5% of total). The remaining amount is represented for the most part by

customers who are nationals of one of the member states of the European Economic Area or Monaco (1.9% of the remaining

amount).

Analysis of performing customer loans and receivables (including related receivables)

Commercial receivables and other performing customer loans held on «Invididuals» totalled EUR 11,180.6 million (49.1% of

performing outstandings). Performing outstandings excluding Individual customers (50.9% of total) break down as follows:

Food and agriculture 2.9%

Consumer goods 1.3%

Metals, minerals Ind. 2.0%

Machinery and equipment 1.5%

Construction 3.2%

Transport and logistics 2.4%

Wholesale trade 6.9%

Automobiles 0.2%

Retail trade 6.6%

Forestry, paper 0.8%

Retail estate 33.9%Chemicals, rubber, plastic

0.8%

Business services 7.3%

Utilities 1.3%

Hotels and catering 4.3%

Media and telecoms 0.8%

Multi-activity conglomerates 4.7 %

Education, associations 1.6%

Healthcare, social services 3.0 %

Finance and insurance 13.7 %

Public administrations 0.1%

Others 0.7%



� Note 10 Lease financing and similar agreements

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Non-real estate lease financing agreements 1,387.8 1,414.5 -26.7 -1.9

Real estate lease financing agreements 489.1 432.6 56.5 13.1


SUB-TOTAL 1,877.3 1,847.3 30.0 1.6

Depreciation for individually impaired loans -17.6 -10.5 -7.1 67.6

Depreciation for lease finance assets -0.5 -0.8 0.3 -37.5

SUB-TOTAL -18.1 -11.3 -6.8 60.2

NET AMOUNT 1,859.2 1,836.0 23.2 1.3

Fair value of receivables on lease financing and similar assets 1,872.8 1,822.3

Lease financing outstandings rose by 1.3% versus December 31, 2008. Activity in the real estate financing sector made

significant gains over the period. Conversely, activity in the non-real estate financing sector, carried out by the subsidiary Star

Lease, decreased slightly. Star Lease’s operations break down as follows: 57% industrial equipment, 37% transport equipment,

4% IT hardware and 2% office equipment.

Breakdown of lease financing outstandings (excluding doubtful outstandings)

(in EUR millions) 31/12/2009 31/12/2008

Gross investments 2,004.5 1,987.3

Less than one year 607.8 587.9

1-5 years 1,142.0 1,133.9

More than five years 254.7 265.5

Present value of minimum payments receivable 1,808.6 1,783.1

Less than one year 586.5 568.9

1-5 years 998.5 987.4

More than five years 223.6 226.8

Unearned financial income 127.6 140.8

Non-guaranteed residual values receivable by the lessor 68.3 63.4



� Note 11 Held-to-maturity financial assets

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Treasury notes and similar securities - - - -

Listed - - - -

Unlisted - - - -

Related receivables - - - -

Bonds and other debt securities 58.2 59.4 -1.2 -2.0

Listed 41.8 43.7 -1.9 -4.3

Unlisted 16.3 15.4 0.9 5.8


Provisions for impairment - - - -

TOTAL HELD-TO-MATURITY FINANCIAL ASSETS 58.2 59.4 -1.2 -2.0

Fair value of held-to-maturity financial assets 58.4 59.5

Changes in held-to-maturity financial assets


Balance at January 1 59.4 3.9

Acquisitions - 23.7 (1)

Redemptions (at maturity) -2.3 -1.5

Changes in impairment - -

Reclassification (inflows) of held-to-maturity financial assets - 33.1 (2)

Others 1.1 0.2

BALANCE AT DECEMBER 31 58.2 59.4

(1) Exclusively OBSAARs.

(2) Given that certain available-for-sale assets (OBSAARs) were intended to be held to maturity, a reclassification at fair value was carried out between these two categories at

December 31, 2008, in the amount of EUR 33.1 million



� Note 12Tax assets and liabilities

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Current tax assets 102.3 187.0 -84.7 -45.3

Deferred tax assets 88.1 126.4 -38.3 -30.3

k on balance sheet items 88.1 125.6 -37.5 -29.9

k on items credited or charged to shareholders’ equity

for unrealised gains or losses - 0.8 -0.8 -

TOTAL TAX ASSETS 190.4 313.4 -123.0 -39.2

Current tax liabilities 111.9 115.4 -3.5 -3.0

Deferred tax liabilities 357.2 323.8 33.4 10.3

k on balance sheet items 362.6 342.6 20.0 5.8

k on items credited or charged to shareholders’ equity

for unrealised gains or losses -5.4 -18.8 13.4 -71.3

TOTAL TAX LIABILITIES 469.1 439.2 29.9 6.8

Deferred taxes on shareholders’ equity pertain to unrealised gains or losses on available-for-sale securities and on deferred

profit sharing for the insurance business

� Note 13 Other assets and liabilities

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

OTHER ASSETS

Securities transactions 6,5 7,4 -0,9 -12,2

Guarantee deposits paid 28,2 100,1 -71,9 -71,8

Accruals and other liabilities 245,1 271,7 -26,6 -9,8

Depreciation -0,2 -0,2 - -

Other insurance assets 247,7 309,2 -61,5 -19,9

TOTAL OTHER ASSETS 527,3 688,2 -160,9 -23,4

OTHER LIABILITIES

Accounts payable after cashing 212,9 246,8 -33,9 -13,7

Securities transactions 139,0 134,7 4,3 3,2

Guarantee deposits received 60,7 10,7 50,0 -

Expenses payable on employee benefits 88,2 79,4 8,8 11,1

Accruals and other liabilities 483,1 494,9 -11,8 -2,4

Other insurance liabilities 5,4 6,1 -0,7 -11,5

TOTAL OTHER LIABILITIES 989,3 972,6 16,7 1,7



� Note 14 Fixed assets

(in EUR millions)

Gross value at

31/12/2008 Inflows Outflows

Change in scope and

reclassifications

Intangible assets

Software created 176.9 28.4 -0.1 -

Software purchased 79.0 3.8 -1.6 3.1

Other intangible assets 24.9 3.0 - -4.7

SUB-TOTAL – INTANGIBLE ASSETS 280.8 35.2 -1.7 -1.6

Tangible assets

Land and buildings 172.2 7.5 -1.3 7.3

IT hardware 125.9 10.3 -5.3 1.2

Other intangible assets 430.6 32.6 -12.2 -8.9

SUB-TOTAL – TANGIBLE ASSETS 728.7 50.4 -18.8 -0.4

Non-operating property 20.1 0.1 -0.6 1.0

Operating lease activities 13.4 - - -

Real estate leasing 13.4 - - -

Equipment leasing - - - -

SUB-TOTAL – INVESTMENT FIXED ASSETS 33.5 0.1 -0.6 1.0

TOTAL – TANGIBLE AND INTANGIBLE FIXED ASSETS 1,043.0 85.7 -21.1 -1.0



Gross value at

31/12/2009

Cumulated amortisation and

depreciation at 31/12/08

Amortisation and depreciation for the year

Net value at

31/12/2009

Net value at

31/12/2008Allocations

Write-backs

used

Change in scope and

reclassifications

205.2 -86.7 -25.4 0.1 - 93.2 90.2

84.3 -69.5 -5.9 1.7 0.7 11.3 9.5

23.2 -0.1 - - - 23.1 24.8

312.7 -156.3 -31.3 1.8 0.7 127.6 124.5

185.7 -56.1 -4.9 1.0 - 125.7 116.1

132.1 -103.1 -10.7 5.3 - 23.6 22.8

442.1 -284.3 -28.4 11.8 - 141.2 146.3

759.9 -443.5 -44.0 18.1 - 290.5 285.2

20.6 -9.2 -1.1 0.9 - 11.2 10.9

13.4 -7.5 -0.3 1.4 - 7.0 5.9

13.4 -7.5 -0.3 1.4 - 7.0 5.9

- - - - - - -

34.0 -16.7 -1.4 2.3 - 18.2 16.8

1,106.6 -616.5 -76.7 22.2 0.7 436.3 426.5



� Note 15 Goodwill

(in EUR millions)

Gross value at 31/12/2008 53.8

Acquisitions and other increases -

Disposals and other decreases -

GROSS VALUE AT 31/12/2009 53.8

Impairment of goodwill at 31/12/2008 -

Impairment losses -

IMPAIRMENT OF GOODWILL AT 31/12/2009 -

Under IFRS, goodwill is no longer amortised. It is subject to an impairment test once a year.

Net value at 31/12/2008 53.8

NET VALUE AT 31/12/2009 53.8

Main sources of net goodwill at December 31, 2009

(in EUR millions)

Banque Courtois 10.2

Banque Laydernier 12.8

Banque Kolb 22.3

Banque Tarneaud 3.3

Fortis branches 5.2

NET VALUE AT 31/12/2009 53.8

� Note 16Summary of depreciations

Depreciation and amortisation

(in EUR millions) Notes

Asset

depreciations

at 31/12/2008 Allocations

Write-backs

available

Write-backs

used Others

Asset

depreciations

at 31/12/2009

Banks 8 0.5 - - - - 0.5

Customer loans 9 646.1 331.1 -154.3 -39.5 - 783.4

Provisions for homogeneous receivables 9 30.2 2.1 -0.1 - - 32.2

Lease financing and similar agreements (1) 10 11.3 15.3 -6.8 -1.7 -0.5 17.6

Available-for-sale assets (1) 7 18.9 3.9 -0.3 - - 22.5

Held-to-maturity assets 11 - - - - - -

Fixed assets 14 3.5 - -1.6 -0.3 - 1.6

Others 13 0.2 0.1 -0.1 - - 0.2

TOTAL 710.7 352.5 -163.2 -41.5 -0.5 858.0

1) O/w net provisions impacting counterparty risk: EUR 12.2 million.



Provisions

(in EUR millions)

Provisions at

31/12/2008 Allocations

Write-backs

available

Write-backs

used

Discount

effect Others

Provisions at

31/12/2009

Provisions for post-employment benefits 66.4 10.1 -0.8 -24.7 - - 51.0

Provisions for long-term benefits 28.1 10.7 -1.7 -4.8 - - 32.3

Provisions for severance pay - - - - - - -

Provisions for other employee benefits 3.0 2.2 -0.8 -0.9 - - 3.5

Provisions for property risks (2) 0.4 - - - - - 0.4

Provisions for disputes (3) 12.7 1.7 -1.5 -0.7 0.2 - 12.4

Provisions for off-balance sheet commitments

with credit institutions - - - - - - -

Provisions for off-balance sheet commitments

with customers 22.0 22.1 -8.6 - - - 35.5

Other provisions (3) (4) 12.4 2.7 -2.2 - - - 12.9

TOTAL PROVISIONS 145.0 49.5 -15.6 -31.1 0.2 - 148.0

(2) Provisions for property risks cover termination losses relative to investments in property programmes.

(3) o/w net provisions relative to net cost of risk: EUR 0.1 million.

(4) o/w home savings provision: EUR 9.3 million at December 31, 2009 versus EUR 10.9 million at December 31, 2008, i.e. a net write-back of EUR 1.6 million over the year (see

Note 20).

� Note 17Due to banks

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Current accounts 177.1 248.2 -71.1 -28.6

Overnight deposits and borrowings 373.3 378.8 -5.5 -1.5

Borrowings secured by overnight notes - - - -

Securities sold under repurchase agreements overnight - - - -

Related payables 0.1 1.0 -0.9 -90.0

TOTAL DEMAND DEPOSITS 550.5 628.0 -77.5 -12.3

Term deposits and borrowings 2,942.5 3,311.8 -369.3 -11.2

Borrowings secured by notes and securities - - - -

Securities sold under term repurchase agreements - - - -


TOTAL TERM DEPOSITS 2,957.8 3,333.0 -375.2 -11.3

Revaluation of hedged items 43.7 27.3 16.4 60.1

TOTAL 3,552.0 3,988.3 -436.3 -10.9

Fair value of amounts due to banks 3,552.0 3,988.3 , ,

Note that at December 31, 2009, EUR 1,794.3 million of the total due to banks represented transactions with

Société Générale Group.



� Note 18Customer deposits

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Demand regulated savings accounts 5,008.2 4,086.3 921.9 22.6

Term regulated savings accounts 1,629.1 1,618.4 10.7 0.7

Demand and overnight accounts 10,611.0 10,139.9 471.1 4.6

Companies and individual entrepreneurs 6,292.7 6,073.3 219.4 3.6


Financial customers 15.8 6.0 9.8 163.3

Others 506.0 482.5 23.5 4.9

Term accounts 382.3 1,666.0 -1,283.7 -77.1

Companies and individual entrepreneurs 264.5 829.0 -564.5 -68.1

Individual customers 94.1 808.1 -714.0 -88.4

Financial customers - 0.9 -0.9 -

Others 23.7 28.0 -4.3 -15.4

Borrowings secured by notes and securities - 150.0 -150.0 -

Securities sold under repurchase agreements overnight 71.8 261.0 -189.2 -72.5

Securities sold under term repurchase agreements 535.2 1,428.4 -893.2 -62.5


Guarantee deposits 0.7 0.7 - -

TOTAL 18,314.6 19,478.4 -1,163.8 -6.0

Fair value of customer deposits 18,314.4 19,478.3

� Note 19 Securitised debt repayables

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Savings certificates 11.7 14.4 -2.7 -18.8

Money market and negotiable debt securities 6,997.0 8,201.7 -1,204.7 -14.7

Bonds 304.9 554.7 -249.8 -45.0


SUB-TOTAL 7,344.8 8,892.7 -1,547.9 -17.4

Revaluation of hedged items 0.3 0.3 - -

TOTAL 7,345.1 8,893.0 -1,547.9 -17.4

Fair value of debt securities 7,378.3 8,904.9



� Note 20PEL/CEL mortgage saving accounts

A. Outstanding deposits in PEL/CEL accounts

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

PEL accounts

Less than 4 years old 181.5 170.8 10.7 6.3

Between 4 and 10 years old 657.9 655.5 2.4 0.4

More than 10 years old 536.6 587.4 -50.8 -8.6

SUB-TOTAL 1,376.0 1,413.7 -37.7 -2.7

CEL accounts 282.8 298.9 -16.1 -5.4

TOTAL 1,658.8 1,712.6 -53.8 -3.1

B. Outstanding housing loans granted with respect to PEL/CEL accounts

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %


Between 4 and 10 years old 13.8 28.2 -14.4 -51.1


TOTAL 60.3 56.4 3.9 6.9

C. Provisions for commitments linked to PEL/CEL accounts (1)

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

PEL accounts

Less than 4 years old - 3.7 -3.7 -

Between 4 and 10 years old 2.1 - 2.1 -

More than 10 years old 5.4 - 5.4 -

SUB-TOTAL 7.5 3.7 3.8 102.7

CEL accounts 0.1 5.3 -5.2 -98.1

Drawn down loans 1.7 1.9 -0.2 -10.5

TOTAL 9.3 10.9 -1.6 -14.7

(1) These provisions are booked as Allowances for general risk and commitments.



D. Methods used to establish the parameters

for valuing provisions

The parameters used for estimating the future behaviour

of customers are derived from historical observations of

customer behaviour patterns over periods of between 10 and

15 years. The value of these parameters can be adjusted if

any changes are subsequently made to regulations that might

undermine the effectiveness of past data as an indicator of

future customer behaviour.

The values of the different market parameters used, notably

interest rates and margins, are calculated on the basis of

observable data and constitute a best estimate, at the date of

valuation, of the future value of these elements for the period

concerned, in line with the retail banking division’s policy of

interest rate risk management.

The discount rates used are derived from the zero coupon

swaps vs. Euribor yield curve at the date of valuation,

averaged over a 12-month period.

� Note 21Employee benefits

A. Post-employment defined contribution plans

Defined contribution plans limit the Group’s liability to the

contributions paid to the plan but do not commit the Group

to a specific level of future benefits.

The main defined contribution plans provided to employees

of the Group are located in France.

They include State pension plans and other national

retirement plans such as ARRCO and AGIRC, pension

schemes for which the only commitment is to pay annual

contributions (PERCO) and multi-employer plans.

Expenses relating to these plans totalled EUR 55.4

million at December 31, 2009 vs. EUR 54.3 million at

December 31, 2008.



B. Post-employment benefit plans (defined benefit plans) and other long-term benefits

B1. Reconciliation of assets and liabilities recorded in the balance sheet

(in EUR millions)

31/12/2009 31/12/2008

Post employment benefitsOther

long-term

benefits Total plans


long-term


Pension

plans Others

Pension

plans Others

Breakdown of provisions recorded in the

balance sheet 34.5 16.5 32.2 83.2 50.3 16.1 28.1 94.5

Breakdown of assets recorded in the

balance sheet - - - - - - - -

Net provision 34.5 16.5 32.2 83.2 50.3 16.1 28.1 94.5

BREAKDOWN OF DEFICIT

IN THE PLAN

Present value of defined benefit

obligations 107.2 - - 107.2 116.2 - - 116.2

Fair value of plan assets -68.2 - - -68.2 -59.0 - - -59.0

ACTUARIAL DEFICIT (A) 39.0 - - 39.0 57.2 - - 57.2

PRESENT VALUE OF UNFUNDED

OBLIGATIONS (B) 17.4 16.4 32.2 66.0 17.8 14.0 28.1 59.9

Unrecognised items

Unrecognised Past Service Cost 1.0 - - 1.0 1.1 - - 1.1

Unrecognised net actuarial gain/loss 20.9 -0.1 - 20.8 23.6 -2.1 - 21.5

Separate assets - - - - - - - -

Plan assets impacted by change in Asset

Ceiling - - - - - - - -

TOTAL UNRECOGNISED ITEMS (C) 21.9 -0.1 - 21.8 24.7 -2.1 - -22.6

NET PROVISION A + B - C 34.5 16.5 32.2 83.2 50.3 16.1 28.1 94.5

Notes :

1. For defined-service pension schemes, in accordance with IAS 19, Crédit du Nord Group uses the projected credit units method to calculate

employee benefits, and amortises actuarial gains and losses which exceed 10% of the greater of the defined benefit obligations or funding

assets on the estimated average remaining working life of the employees participating in the plan (corridor method). The Group uses the

straight-line method over the residual working lives of employee beneficiaries to recognise past service cost resulting from an amendment

of the plan.

2. Pension plans include pension benefits as annuities and end of career payments. Pension benefit annuities are paid additionally to State

pension plans.Other post employment benefit plans are insurance schemes covering accidental death at 3 institutions located in France.

Other long-term employee benefits include deferred bonuses, flexible working provisions (compte épargne temps) and long-service awards.

3. The present value of defined benefit obligations have been valued by independent qualified actuaries.

4. Information regarding plan assets:

k only end of career payments and additional complementary retirement plans are partially covered by assets managed by an external

company;

k the fair value of plan assets is comprised of 16.4% bonds, 64.5% equities, 19.1% money market funds and 3% property investments.

5. In general, the expected rates of return on scheme assets are based on a weighted average of expected returns on each category of assets

at fair value.

6. Benefits payable under post-employment plans in 2010 are estimated at EUR 14.5 million.



The actual return on plan and separate assets was, in millions of euros:

(as a % of the item measured) 31/12/2009 31/12/2008

Plan assets 13.0 -37.3

Separate assets - -

(in EUR millions) 31/12/2009 31/12/2008


Separate assets - -

B2. Charges actuarielles des régimes

(in EUR millions)

31/12/2009 31/12/2008


long-term



long-term


Pension

plans Others

Pension

plans Others

Current service cost for the year,

including social security contributions 4.6 0.2 3.8 8.6 4.6 0.3 4.1 9.0

Employee contributions - - - - - - - -

Interest cost 7.1 0.9 1.6 9.6 6.8 0.8 1.7 9.3

Expected return on plan assets -3.8 - - -3.8 -5.1 - - -5.1

Expected return on separate assets - - - - - - - -

Amortisation of past service cost 1.1 - - 1.1 11.2 - - 11.2

Amortisation of gains/losses 0.5 -0.1 3.6 4.0 - - -4.5 -4.5

Settlement - - - - - - - -

TOTAL NET CHARGES

RECOGNISED IN THE INCOME

STATEMENT 9.5 1.0 9.0 19.5 17.5 1.1 1.3 19.9

B3. Changes in net liabilities of post-employment plans booked to the balance sheet

B3a. Changes in the present value of defined benefit obligations

(in EUR millions)

2009 2008

Pension

schemes

Other

plans

Total

post-employ.

Pension

schemes

Other

plans

Total

post-employ.

VALUE AT JANUARY 1 134.0 14.0 148.0 133.0 14.5 147.5

Current service cost, including social security

contributions 4.6 0.2 4.8 4.6 0.3 4.9

Interest cost 7.1 0.9 8.0 6.8 0.8 7.6

Employee contributions - - - - - -

Actuarial gains/loses generated over the fiscal year 2.3 1.9 4.2 -8.4 -1.1 -9.5

Foreign currency exchange adjustment - - - - - -

Benefit payments -23.4 -0.6 -24.0 -13.0 -0.5 -13.5

Past service cost generated over the fiscal year - - - 11.0 - 11.0

Acquisition of subsidiaries - - - - - -

Transfers and others - - - - - -

VALUE AT DECEMBER 31 124.6 16.4 141.0 134.0 14.0 148.0



B3b. Variations de la juste valeur des actifs du régime et des actifs distincts

(en millions d’euros)

2009 2008

Pension

schemes

Other

plans

Total

post-employ.

Pension

schemes

Other

plans

Total

post-employ.

Value at January 1 59,0 - 59,0 81,7 - 81,7

Expected return on plan assets 3.8 - 3.8 5.1 - 5.1

Expected return on separate assets - - - - - -

Actuarial gains/loses generated over the fiscal year 3.9 - 3.9 -27.1 - -27.1

Foreign currency exchange adjustment - - - - - -


Employer contributions 3.1 - 3.1 4.3 - 4.3

Benefit payment -1.1 - -1.1 -5.0 - -5.0

Acquisition of subsidiaries - - - - - -

Transfers and others -0.5 - -0.5 - - -

VALUE AT DECEMBER 31 68.2 - 68.2 59.0 - 59.0

2009 2008

Expected return on assets (separate and plan assets) 6.6% 6.6%

Future salary increase (including inflation) 3.5% 3.5%

B4. Main assumptions for post employment plans

The expected rate of return on assets (separate and plan

assets) has been 6.6% since 2005. The range in the

expected rate of return on assets is due to the composition

of the assets.

The discount rate used depends on the term of each plan

(2.94% for up to 3 years / 3.86% for up to 5 years / 5.01%

for up to 10 years / 5.35% for up to 15 years and 5.69% for

up to 20 years).

The average remaining lifetime is established individually by

benefit for each Group entity and is calculated taking into

account turnover assumptions.

Inflation depends on the term of each plan (1.90% for up to

3 years / 2.51% for up to 5 years / 2.57% for up to 10 years

/ 2.62% for up to 15 years and 2.66% for up to 20 years).

B5. Sensitivities analysis of post-employment defined benefit obligations compared to main

assumption ranges

(as % of item measured)

2009 2008

Pension schemes Other plans Pension schemes Other plans

Variation of +1% in discount rate

Impact on defined benefit obligations at December 31 -5.9% -13.5% -4.8% -12.4%

Impact on total expenses -10.6% -23.3% -8.4% -20.7%

Variation of +1% in expected return on assets

(plan assets and separate assets)

Impact on plan assets at December 31 1.0% - 1.0% -

Impact on total expenses -14.5% - -9.6% -

Variation of +1% of future salary increases

net of inflation

Impact on defined benefit obligations at December 31 7.1% 17.5% 5.4% 16.1%

Impact on total expenses 13.8% 33.7% 11.1% 29.3%



B6. Experience adjustments on post-employment defined benefit obligations

(in EUR millions) 31/12/2009 31/12/2008

Defined benefit obligations 124.6 134.0

Fair value of plan assets 68.2 59.0

Deficit / (negative: surplus) 56.4 75.0

Experience adjustments on plan liabilities -4.0 -5.6

Experience adjustments on plan assets 3.9 -27.1

� Note 22Subordinated debt

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Equity investments - - - -

Redeemable subordinated notes 592.5 638.3 -45.8 -7.2

Undated subordinated notes - - - -

Interest payable 9.4 10.2 -0.8 -7.8

Revaluation of hedged items 32.7 22.0 10.7 48.6

TOTAL 634.6 670.5 -35.9 -5.4

The fair value of subordinated debt was EUR 607.2 million at December 31, 2009 (EUR 634.7 million at December 31, 2008)

calculated entirely via reference to a price quoted on an active market.

Schedule of redeemable subordinated notes issued by Crédit du Nord

2010 2011 2012 2013 2014 Others

Outstanding

at 31/12/2009

Outstanding

at 31/12/2008

Subordinated debt 151.5 160 - - - 281 592.5 638.3



� Note 23Insurance activities

Underwriting reserves of insurance companies

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Underwriting reserves for unit-linked policies 978.9 876.1 102.8 11.7

Life insurance underwriting reserves 2,792.8 2,382.5 410.3 17.2

Non-life insurance underwriting reserves 2.1 1.6 0.5 31.3

TOTAL 3,773.8 3,260.2 513.6 15.8

Provisions for deferred profit sharing (1) (2) 66.3 -60.1 126.4 -

Share of underwriters -232.0 -221.1 -10.9 4.9

Underwriting reserves of insurance companies (including

deferred profit sharing) net of underwriters' share 3,608.1 2,979.0 629.1 21.1

(1) o/w a provision for deferred profit sharing for assets at fair value through shareholders’ equity of EUR 66.3 million at December 31, 2009 and EUR 60.4 million at December 31,

2008.

Statement of changes in underwriting reserves of insurance companies

(in EUR millions)

Underwriting reserves

for unit-linked policies

Life insurance

underwriting reserves

Non-life insurance

underwriting reserves

Reserves at 01/01/2009 876.1 2,382.5 1.6

Allocation to insurance reserves 163.1 417.1 0.4

Revaluation of unit-linked policies -76.1 - -

Charges deducted from unit-linked policies 8.6 - -

Transfers and arbitrage 7.2 -7.1 -

New customers - - -

Profit sharing - 0.3 -

Others - - -

RESERVES AT DECEMBER 31, 2009 (EXCLUDING

DEFERRED PROFIT SHARING) 978.9 2,792.8 2.0

In accordance with IFRS and Group principles, the Liability Adequacy Test (LAT) was carried out at December 31, 2009.

This test is based on stochastic models, consistent with a Market Consistent Embedded Value approach.



Net investments by insurance companies

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Financial assets at fair value through profit or loss

Treasury notes and similar securities - - - -

Bonds and other debt securities 116.3 206.2 -89.9 -43.6

Shares and other equity securities 1,072.7 964.1 108.6 11.3

Due from banks - - - -

Available-for-sale financial assets , , , ,

Treasury notes and similar securities 254.7 279.3 -24.6 -8.8

Bonds and other debt securities 2,397.2 1,763.3 633.9 35.9

Shares and other equity securities 42.7 30.8 11.9 38.6

Held-to-maturity financial assets - - - -

Investment property - - - -

TOTAL 3,883.6 3,243.7 639.9 19.7

Technical income from insurance companies


2009/2008 change

in value in %

Earned premiums 591.3 523.0 68.3 13.1

Cost of benefits (including changes in reserves) -708.9 -190.7 -518.2 -

Net income from investments 165.5 -286.6 452.1 -

Other net technical income/expenses -27.4 -25.5 -1.9 7.5

CONTRIBUTION TO OPERATING INCOME BEFORE

ELIMINATION OF INTRA-GROUP OPERATIONS 20.5 20.2 0.3 1.5

Elimination of intra-group operations -1.5 -1.5 - -

CONTRIBUTION TO OPERATING INCOME AFTER

ELIMINATION OF INTRA-GROUP OPERATIONS 19.0 18.7 0.3 1.6

Net fee income (1)


2009/2008 change

in value in %

Fees received

Acquisition fees 12,4 11,9 0,5 4,2

Management fees 32,7 30,7 2,0 6,5

Others 0,1 0,1 - -

Fees paid

Acquisition fees -10,7 -10,7 - -

Management fees -10,8 -9,4 -1,4 14,9

Others -1,3 -1,5 0,2 -13,3

TOTAL FEES 22,4 21,1 1,3 6,2

(1) This table presents the contribution of fees before the elimination of intra-group operations.



� Note 24Gains and losses booked directly to equity

(in EUR millions) 31/12/2009 Period 31/12/2008

Change in gains and losses booked directly to

equity

Translation difference - - -

Revaluation difference over the period

Recycled to the income statement

Revaulation of available-for-sale assets (1) 6.8 33.9 -27.1

Revaluation difference over the period 38.9

Recycled to the income statement -5.0

Revaluation of hedging derivatives - - -

Revaluation difference over the period

Recycled to the income statement

Amounts transferred in the value of the hedged

item

Share of unrealised or deferred gains or losses on

companies accounted for by the equity method - - -

Taxes 5.4 -14.2 19.6

TOTAL 12.2 19.7 -7.5

Minority interests - -0.2 0.2

GROUP SHARE 12.2 19.9 -7.7

(in EUR millions)

31/12/2009 31/12/2008

Gross Tax Net of tax Gross Tax Net of tax

Translation differences - - - - - -

Revaluation of available-for-sale assets 6.8 5.4 12.2 -27.1 19.6 -7.5

Revaluation of hedging derivatives - - - - - -

Share of unrealised or deferred gains or losses on

companies accounted for by the equity method - - - - - -

Total gains and losses booked directly to equity 6.8 5.4 12.2 -27.1 19.6 -7.5

Minority interests - - - 0.2 - 0.2

GROUP SHARE 6.8 5.4 12.2 -27.3 19.6 -7.7

Breakdown of revaluation differences on available-for-sale assets

(in EUR millions) Unrealised capital gains Unrealised capital losses Net revaluation

Unrealised gains and losses on available-for-sale financial assets 28.4 -0.3 28.1

Unrealised gains and losses on available-for-sale debt instruments 1.7 -23.3 -21.6

Unrealised gains and losses on assets reclassified under Loans and

Receivables - - -

Unrealised insurance company gains and losses 92.8 -92.5 0.3

o/w on available-for-sale financial assets 1.3 - 1.3

o/w on available-for-sale debt instruments and assets reclassified

under Loans and Receivables 91.5 -26.2 65.3

o/w deferred profit sharing - -66.3 -66.3

TOTAL 122.9 -116.1 6.8



� Note 25Assets and liabilities by period remaining to expiration

Contractual maturities of financial liabilities (1)

At December 31, 2009(in EUR millions)

Less than

3 months 3 months - 1 year 1 - 5 years > 5 years Undated Total

Due to central banks 2.2 - - - - 2.2

Financial liabilities at fair value through

profit or loss (excluding derivatives) 7.9 122.4 347.0 148.0 - 625.3

Due to banks 704.3 938.7 1,608.2 257.1 - 3,508.3

Customer deposits 17,957.4 168.6 180.1 8.5 - 18,314.6

Debt securities 4,251.5 878.7 1,350.4 865.7 - 7,346.3

Subordinated debt 0.2 160.7 160.0 281.0 - 601.9

TOTAL LIABILITIES 22,923.5 2,269.1 3,645.7 1,560.3 - 30,398.6

Loan commitments given 941.5 572.5 1,346.9 241.9 - 3,102.8

Guarantee commitments given 285.2 482.2 1,219.9 1,558.7 - 3,546.0

TOTAL COMMITMENTS GIVEN 1,226.7 1,054.7 2,566.8 1,800.6 - 6,648.8

(1) The amounts indicated are the contractual amounts excluding estimated interest

Underwriting reserves of insurance companies (2)


Less than

3 months 3 months - 1 year 1 - 5 years > 5 years Undated Total

Underwriting reserves of insurance

companies 66.4 - - 3,773.7 - 3,840.1

(2) Maturities of book amounts.

Notional maturities of commitments on financial derivatives (3)


0-1 year 1-5 years More than 5 years Total

Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities


Firm transactions

Swaps 6 952,2 6 952,5 6 405,9 6 405,6 5 302,2 5 302,2 18 660,3 18 660,3

FRA - - - - - - - -

Options

Caps, floors, collars 383,7 260,6 1 625,5 380,9 493,4 223,6 2 502,6 865,1

Foreign exchange instruments

Foreign exchange options 111,3 111,3 1,7 1,7 - - 113,0 113,0

Other forward financial instruments

Other forward instruments - - - - - - - -

(3) These items are presented based on the maturities of the financial instruments.



� Note 26Commitments

A. Financing commitments given and received

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

COMMITMENTS GIVEN

Loan commitments

To banks 230.0 103.4 126.6 122.4

To customers 2,872.8 2,957.2 -84.4 -2.9

Guarantee commitments

On behalf of banks 150.8 256.9 -106.1 -41.3

On behalf of customers 3,395.2 3,536.8 -141.6 -4.0

On behalf of insurance activities 304.1 272.2 31.9 11.7

Others 4,325.6 3,632.8 692.8 19.1

COMMITMENTS RECEIVED

Loan commitments

From banks 1,340.2 - 1,340.2 -

Guarantee commitments

From banks 7,690.3 6,831.8 858.5 12.6

From customers 237.6 237.4 0.2 0.1

Others (1) 102.1 84.8 17.3 20.4

(1) o/w EUR 102.1 million in guarantee commitments received from government administrations and local authorities at December 31, 2009 (vs. EUR 71.7 million

at December 31, 2008).

At December 31, 2009, Société Générale Group’s financing and guarantee commitments totalled EUR 0.1 million vs. EUR 6.3

million at December 31, 2008.

The financing commitments and guarantees given to Société Générale Group amounted to EUR 1,595.2 million vs. EUR 210.02

million at December 31, 2008.

B. Securities transactions and foreign exchange transactions

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Securities transactions

Securities to be received 2.8 54.3 -51.5 -94.8

Securities to deliver 12.7 78.2 -65.5 -83.8

Foreign exchange transactions

Currency to be received 4,460.4 6,291.8 -1,831.4 -29.1

Currency to deliver 4,457.3 6,273.5 -1,816.2 -29.0

At December 31, 2009, commitments of this nature with Société Générale Group stood at EUR 567.7 million (vs. EUR 423.7

million at December 31, 2008).



C. Financial derivatives

(in EUR millions)

31/12/2009 31/12/2008

Assets Liabilities Assets Liabilities

TRADING FINANCIAL DERIVATIVES


Firm transactions

Swaps 6 008,5 6 008,5 8 687,4 8 687,4

FRAs - - - -

Options

OTC options - - - -

Caps, floors, collars 981,5 865,1 717,4 758,1

Foreign exchange instruments

Foreign exchange options 113,0 113,0 83,7 83,7


Instruments on organised markets - - - 2,0

SUB-TOTAL TRADING FINANCIAL DERIVATIVES 7 103,0 6 986,6 9 488,5 9 531,2

FAIR VALUE HEDGE INSTRUMENTS (1)


Firm transactions

Swaps 12 651,8 12 651,8 13 217,7 13 217,7

Options

Caps, floors, collars 1 521,1 - 1 522,0 -

SUB-TOTAL HEDGING INSTRUMENTS 14 172,9 12 651,8 14 739,7 13 217,7

TOTAL 21 275,9 19 638,4 24 228,2 22 748,9

(1) Including macrohedging derivatives at fair value through profit or loss.

At December 31, 2009, commitments of this nature with Société Générale Group stood at EUR 17,196.4 million (vs. EUR

20,459.0 million at December 31, 2008).

Note that, under the current regulations, transactions processed on behalf of and on the order of customers are classified in

the “Trading” category, even if any hedging of them is classified in “Fair value hedging through profit or loss”.



� Note 27Foreign exchange transactions

(in EUR millions) Euro CHF GBP USD JPY

Other

currencies

31/12/2009

Total

ASSETS

Short-term 4,002.8 68.4 71.6 148.6 40.1 127.1 4,458.6

Customer loans 25,296.0 107.5 3.1 87.6 1.7 0.8 25,496.7

Other assets 8,533.9 - 0.2 16.9 - - 8,551.0

TOTAL 37,832.7 175.9 74.9 253.1 41.8 127.9 38,506.3

LIABILITIES

Short-term 2,925.6 84.7 23.5 479.2 13.1 28.1 3,554.2

Customer deposits 18,060.4 6.9 28.4 237.1 2.5 14.5 18,349.8

Securitised debt repayables 7,176.0 13.5 112.6 43.0 - - 7,345.1

Other liabilities 9,240.6 - 0.1 16.4 - 0.1 9,257.2

TOTAL 37,402.6 105.1 164.6 775.7 15.6 42.7 38,506.3

FOREIGN EXCHANGE COMMITMENTS

Currencies bought, not yet

received 1,380.3 269.5 267.7 1,822.2 31.5 689.2 4,460.4

Currencies sold, not yet delivered 1,808.9 344.3 177.2 1,295.6 57.3 774.0 4,457.3

NET POSITION

Assets 37,832.7 175.9 74.9 253.1 41.8 127.9 38,506.3

Liabilities 37,402.6 105.1 164.6 775.7 15.6 42.7 38,506.3

Net foreign exchange

commitments -428.6 -74.8 90.5 526.6 -25.8 -84.8 3.1

BALANCE 1.5 -4.0 0.8 4.0 0.4 0.4 3.1

Currency positions are kept within very conservative limits, with respect of prudential capital, which stood at EUR 1,489.3

million. As a result, the largest net position, in CHF, accounted for 0.27% of prudential capital.

Note that the euro represents a very significant share of the Group’s total transactions. The most significant foreign currency

exposure besides the euro, i.e. the dollar and the Swiss franc, accounted for 1.4% and 0.2% of total assets, respectively.

� Note 28Net Banking income

(in EUR millions)

Notes 2009 2008

2009/2008 change

in value in %

Interest and similar income 29 809.9 786.4 23.5 3.0

Fees and commissions 30 762.9 714.0 48.9 6.8

Income from equity securities 3.9 16.6 -12.7 -76.5

Net gains/losses on financial instruments at fair value

through profit or loss 31 -13.2 11.5 -24.7 -

Net gains/losses on available-for-sale Financial assets 32 17.0 4.8 12.2 -

Income and expenses from other businesses 33 -0.7 10.6 -11.3 -

NET BANKING INCOME 1,579.8 1,543.9 35.9 2.3

% of commissions in NBI 48.3% 46.2%



� Note 29Interest and similar income


2009/2008 change

in value in %

Interest and similar income from

Transactions with banks 67.5 167.3 -99.8 -59.7

Transactions with customers 1,081.2 1,217.3 -136.1 -11.2

Transactions in financial instruments 305.2 382.4 -77.2 -20.2

Available-for-sale financial assets 163.2 237.8 -74.6 -31.4

Held-to-maturity financial assets 1.7 0.9 0.8 88.9

Securities lending - - - -

Hedging derivatives 140.3 143.7 -3.4 -2.4

Finance leases 153.7 151.5 2.2 1.5

Real estate lease financing agreements 72.9 73.6 -0.7 -1.0

Non-real estate lease financing agreements 80.8 77.9 2.9 3.7

Other interest and similar income - - - -

SUB-TOTAL 1 607.6 1 918.5 -310.9 -16.2

Interest and similar expenses from

Transactions with banks -91.7 -147.0 55.3 -37.6

Transactions with customers -255.6 -391.2 135.6 -34.7

Transactions in financial instruments -393.3 -537.1 143.8 -26.8

Securitised debt repayables -152.6 -378.3 225.7 -59.7

Subordinated and convertible debt -29.6 -30.8 1.2 -3.9

Securities borrowing - - - -

Hedging derivatives -211.1 -128.0 -83.1 64.9

Finance leases -56.9 -56.1 -0.8 1.4

Real estate lease financing agreements -51.9 -49.4 -2.5 5.1

Non-real estate financing agreements -5.0 -6.7 1.7 -25.4

Other interest and similar expenses -0.2 -0.7 0.5 -71.4

SUB-TOTAL -797.7 -1,132.1 334.4 -29.5

TOTAL INTEREST AND SIMILAR INCOME 809.9 786.4 23.5 3.0


2009/2008 change

in value in %

Net income/expenses from

Transactions with banks -24.2 20.3 -44.5 -

Transactions with customers 825.6 826.1 -0.5 -0.1

Short-term loans 134.1 156.9 -22.8 -14.5

Export loans 1.4 4.1 -2.7 -65.9

Equipment loans 162.3 193.9 -31.6 -16.3

Housing loans 531.3 526.5 4.8 0.9

Other loans -3.5 -55.3 51.8 -93.7

Transactions in financial instruments -88.1 -154.7 66.6 -43.1

Finance leases 96.8 95.4 1.4 1.4

Others -0.2 -0.7 0.5 -71.4

TOTAL INTEREST AND SIMILAR INCOME 809.9 786.4 23.5 3.0



� Note 30Commissions


2009/2008 change

in value in %

Fee income

Transactions with banks - - - -

Transactions with customers 247.9 240.7 7.2 3.0

Securities transactions 6.4 5.5 0.9 16.4

Foreign exchange transactions and financial derivatives 1.8 1.9 -0.1 -5.3

Loan and guarantee commitments 21.7 22.9 -1.2 -5.2

Services 601.7 629.7 -28.0 -4.4

Others - - - -

SUB-TOTAL 879.5 900.7 -21.2 -2.4

FEE EXPENSE

Transactions with banks -0.7 -0.7 - -

Securities transactions -4.7 -78.8 (1) 74.1 -94.0

Foreign exchange transactions and financial derivatives -0.1 -0.1 - -

Loan and guarantee commitments -0.3 -0.5 0.2 -40.0

Others -110.8 -106.6 -4.2 3.9

SUB-TOTAL -116.6 -186.7 70.1 -37.5

TOTAL NET FEES AND COMMISSIONS 762.9 714.0 48.9 6.8

(1) o/w exceptional expenses of EUR -72.2 million at December 31, 2008 linked to losses on disposals of assets from funds managed by Étoile Gestion.

This fee income and expenses includes:

k fee income, excluding EAT * linked to financial instruments

not measured at fair value through profit or loss 269.5 263.7 5.8 2.2

k fee income relating to trust or similar activities 173.6 200.8 -27.2 -13.5

k fee expenses, excluding EAT * linked to financial instruments

not measured at fair value through profit or loss -0.3 -0.5 0.2 -40.0

k fee expenses relating to trust or similar activities -16.1 -18.4 2.3 -12.5

* Effective Interest Rate.



� Note 31

Net income and expense from financial instruments at fair value through profit or loss


2009/2008 change

in value in %

Net gain/loss on non-derivative financial assets held for trading 4.8 6.9 -2.1 -30.4

Net gain/loss on financial assets measured using fair value

option -0.1 4.1 -4.2 -

Net gain/loss on non-derivative financial liabilities held for trading - - - -

Net gain/loss on financial liabilities measured using fair value

option (1) -19.8 29.8 -49.6 -

Gain/loss on derivative financial instruments held for trading -2.6 -38.6 36.0 -93.3

Net gain/loss on hedging instruments, Statement of fair value 35.7 -61.9 97.6 -

Revaluation of hedged items attributable to hedged risks -38.5 63.0 -101.5 -

Ineffective portion of cash flow hedge - - - -

Net gain/loss on foreign exchange transactions 7.3 8.2 -0.9 -11.0

TOTAL -13.2 11.5 -24.7 -

(1) Including an expense of EUR -16.3 million for the improvement of the Group’s credit spread on the revaluation of the Group’s financial liabilities at December 31, 2009 (versus

income of EUR 28.4 million at December 31, 2008).

Net income and expense from financial assets and liabilities at fair value through profit or loss is measured using valuation

techniques based on observable parameters.

The income from this margin is therefore not impacted by the change in the fair value of instruments initially valued using

valuation parameters not based on market data.

� Note 32Net gains or losses on available-for sale financial assets


2009/2008 change

in value in %

CURRENT ACTIVITIES

Gains on sale 2.7 2.6 0.1 3.8

Losses on sale -0.8 -0.7 -0.1 14.3

Impairment of equity instruments -0.1 - -0.1 -

Net capital gain on the sale of available-for-sale financial assets

(insurance activity) 7.0 -1.5 8.5 -

SUB-TOTAL 8.8 0.4 8.4 -

LONG-TERM EQUITY INVESTMENTS -

Gains on sale 8.6 5.2 3.4 65.4

Losses on sale - - - -

Impairment of equity instruments -0.4 -0.8 0.4 -50.0

SUB-TOTAL 8.2 4.4 3.8 86.4

TOTAL 17.0 4.8 12.2 -



� Note 33Income and expenses from other activities


2009/2008 change

in value in %

INCOME FROM OTHER ACTIVITIES

Real estate development (1) 0.1 0.1 - -

Real estate leasing (2) 5.8 6.2 -0.4 -6.5

Equipment leasing 1.4 1.7 -0.3 -17.6

Other activities (3) 11.2 17.3 (3) -6.1 -35.3

SUB-TOTAL 18.5 25.3 -6.8 -26.9

EXPENSES FROM OTHER ACTIVITIES

Real estate development (1) -0.2 -0.1 -0.1 100.0

Real estate leasing -1.7 -1.6 -0.1 6.2

Equipment leasing -0.3 -0.2 -0.1 50.0

Other activities -17.0 (4) -12.8 -4.2 32.8

SUB-TOTAL -19.2 -14.7 -4.5 30.6

NET AMOUNT -0.7 10.6 -11.3 -

(1) Income and expenses from property development are mainly generated by Norimmo Group (registered estate agents), whose activity is now marginal.

(2) O/w rent on investment property: EUR 3.0 million at December 31, 2009 and EUR 2.7 million at December 31, 2008.

(3) O/w net income on insurance business: EUR 8.2 million at December 31, 2008, which breaks down into income of EUR 979.7 million and expenses of EUR 971.5 million.

(4) O/w net income on insurance business: EUR -4.2 million at December 31, 2009, which breaks down into income of EUR 790.9 million and expenses of EUR 795.1 million.

� Note 34Frais de personnel

A. Personnel expenses


2009/2008 change

in value in %

Employee compensation -379.8 -366.0 -13.8 3.8

Social security charges and payroll taxes -93.3 -92.2 -1.1 1.2

Retirement expenses -65.6 -71.7 6.1 -8.5

Defined contribution plans -55.4 -54.3 -1.1 2.0

Defined benefit plans -10.2 -17.4 7.2 -41.4

Other social security charges and taxes -51.9 -50.3 -1.6 3.2

Employee profit-sharing and incentives -50.9 -43.3 -7.6 17.6

Transfer of charges 6.6 6.0 0.6 10.0

TOTAL -634.9 -617.5 -17.4 2.8

Performance-based compensation paid in 2009 for 2008 came out at EUR 18.5 million.



B. Headcount

2009 2008

2009/2008 change

in value in %

Registered workforce (1) 8,680 8,797 -117 -1.3

Average staff count in activity (1) 8,737 8,775 -38 -0.4

Average staff count in activity compensated

by Crédit du Nord Group 7,939 7,956 -17 -0.2

Maternity leave, qualification/apprenticeship contracts 798 819 -21 -2.6

(1) Excluding staff at Banque Pouyanne.

C. Share-based payment plans

Expenses recorded on the income statement


2009/2008 change

in value in %

Net expenses from stock option purchase plans -2.9 -4.2 1.3 -31.0

Net expenses from stock option and free share allocation plans -2.5 -2.9 0.4 -13.8

TOTAL -5.4 -7.1 1.7 -23.9

The charge described above relates to equity-settled stock-option plans attributed after November 7, 2002 and to

all cash-settled plans.



Z Main characteristics of stock-option plans

Equity-settled stock option plans for Crédit du Nord Group employees for the year ended December 31, 2009 are briefly

described hereunder.

Stock options

Issuer: Société Générale 2009 2008 2007 2006 2005 2004 2003

Type of plan

Subscription

options

Subscription

options

Purchase

options

Purchase

options

Purchase

options

Purchase

options

Purchase

options

Shareholders’ agreement 27/05/2008 30/05/2006 30/05/2006 29/04/2004 29/04/2004 23/04/2002 23/04/2002

Board of Directors decision 09/03/2009 21/03/2008 19/01/2007 18/01/2006 13/01/2005 14/01/2004 22/04/2003

Number of stock options granted (1) 58,068 63,535 47,444 82,485 324,361 332,860 236,978

Term of validity of options 7 years 7 years 7 years 7 years 7 years 7 years 7 years

Settlement SG shares SG shares SG shares SG shares SG shares SG shares SG shares

Vesting period

09/03/2009 -

31/03/2012

21/03/2008 -

31/03/2011

19/01/2007 -

19/01/2010

18/01/2006-

18/01/2009

13/01/2005-

13/01/2008

14/01/2004-

14/01/2007

22/04/2003-

22/04/2006

Performance-based (2) yes yes

no, except

corporate

officers no no no no

Conditions linked to departure from Group Lost Lost Lost Lost Lost Lost Lost

Conditions linked to dismissal Lost Lost Lost Lost Lost Lost Lost

Conditions linked to retirement Maintained Maintained Maintained Maintained Maintained Maintained Maintained

In event of death

Maintained

6 months

Maintained

6 months

Maintained

6 months

Maintained

6 months

Maintained

6 months

Maintained

6 months

Maintained

6 months

Share price at grant date (in euros)

(average of 20 days prior to grant date) 23.18 63.60 115.60 93.03 64.63 60.31 44.81

Discount 0% 0% 0% 0% 0% 0% 0%

Exercise price (in euros) 23.18 63.60 115.60 93.03 64.63 60.31 44.81

Options exercised at December 31, 2009 - - - - - 19,414 111,031

Options forfeited at December 31, 2009 - - - 4,911 13,000 24,529 37,578

Options outstanding at December 31, 2009 58,068 63,535 47,444 77,574 311,361 288,917 88,369

Number of shares reserved at December

31, 2009 - - (3) (3) (3) 288,917 88,369

Share price of shares reserved (in euros) - - (3) (3) (3) 44.51 45.11

Total value of shares reserved

(in EUR millions) - - (3) (3) (3) 12.9 4.0

First authorised date for selling the

shares 31/03/2013 21/03/2012 19/01/2011 18/01/2010 13/01/2009 14/01/2008 22/04/2007

Delay for selling after vested period 1 year 1 year 1 year 1 year 1 year 1 year 1 year

Fair value (% of share price at grant date) 27% 24% 18% 16% 17% 21% 25%

Valuation method used to determine

fair value Monte-Carlo Monte-Carlo Monte-Carlo Monte-Carlo Monte-Carlo Monte-Carlo Monte-Carlo

(1) In accordance with IAS 33, as a result of the detachment of Société Générale share preferential subscription rights, the historical share date has been adjusted by the coefficient

given by Euronext which reflects the part attributable to the share after detachment following the capital increase which took place in the fourth quarter of 2006, the first quarter

of 2008 and the fourth quarter of 2009.

(2) The performance-based conditions are described in the section pertaining to corporate governance in Société Générale Group’s registration document. At December 31, 2008, it

was determined that EPS performances on which 2009 stock option attributions were based would not be attained. It was also determined that the EPS performances on which

2009 stock option attributions were based would be attained at a level of 14%.

(3) 2005, 2006 and 2007 stock option plans have been hedged using call options.



Free shares

Issuer: Société Générale 2009 2008 2007 2006

Type of plan Free shares Free shares Free shares Free shares

Shareholders’ agreement 27/05/2008 30/05/2006 30/05/2006 09/05/2005

Board of Directors decision 20/01/2009 21/03/2008 19/01/2007 18/01/2006

Number of free shares granted 123,732 75,144 30,768 35,938

Settlement SG shares SG shares SG shares SG shares

Vesting period

20/01/2009 -

31/03/2012

21/03/2008 -

31/03/2010

19/01/2007 -

31/03/2009

18/01/2006 -

31/03/2008

21/03/2008 -

31/03/2011

19/01/2007 -

31/03/2010

18/01/2006 -

31/03/2009

Performance-based (1) yes yes

ROE conditions

for a list of

beneficiaries

ROE conditions

for a list of

beneficiaries

Conditions linked to departure from Group lost lost lost lost

Conditions linked to dismissal lost lost lost lost

Conditions linked to retirement maintained maintained maintained maintained

In event of death

Maintained

6 months

Maintained

6 months

Maintained

6 months

Maintained

6 months

Share price at grant date (in euros) 23.36 58.15 116.61 93,66

Shares delivered at December 31, 2009 - - 13,592 33,414

Shares forfeited at December 31, 2009 1,248 1,730 3,584 2,524

Shares outstanding at December 31, 2009 122,484 73,414 13,592 -

Number of shares reserved at December 31, 2009 122,484 73,414 13,592 -

Share price of shares reserved (in euros) 60.98 100.88 112.00 -

Value of shares reserved (in EUR millions) 7.5 7.4 1.5 -

First authorised date for selling the shares 31/03/2014 31/03/2012 31/03/2011 31/03/2010

31/03/2013 31/03/2012 31/03/2011

Delay for selling after vested period 2 years 2 years 2 years 2 years

Fair value (% of share price at grant date) 78%

- Vesting period 2 years 87% 86% 86%

- Vesting period 3 years 81% 81% 81%

Valuation method used to determine fair value Arbitrage Arbitrage Arbitrage Arbitrage

(1) The performance conditions are described in the corporate governance chapter of the Société Générale Registration Document. For 2007 stock option attributions with a ROE

performance-based condition, it has been determined that this condition will not be met. At December 31, 2009, it was determined that the EPS performances on which the

2008 stock option attributions were based would not be attained. It was also determined that the EPS performances on which the 2009 stock option attributions were based

would be attained at a level of 14%.

Furthermore, Banque Tarneau attributed 12,000 shares for all of its employees in 2009. These shares were valued at EUR

59.89 and have an acquistion period of three years.



Statistics concerning stock-option plans

Main figures concerning Crédit du Nord Group stock-option plans for the year ended December 31, 2009:

Weighted average

remaining

contractual life

Weighted average

fair value at grant

date

Weighted average

share price at

exercise date

(euros)

Number of options

Plan

2009

Plan

2008

Plan

2007

Plan

2006

Plan

2005

Plan

2004

Plan

2003

Options outstanding

at January 1, 2009 - - - - 61,038 44,968 76,510 294,764 272,427 94,460

Options granted in 2009 - - - 58,068 2,497 2,476 4,190 18,162 16,785 6,249

Options forfeited in 2009 - - - - - - 3,126 1,565 295 12,228

Options exercised

in 2009 - - 49.29 - - - - - - 112

Options expired in 2009 - - - - - - - - - -

Outstanding options

at December 31, 2009 34 months 12.54 - 58,068 63,535 47,444 77,574 311,361 288,917 88,369

Exercisable options

at December 31, 2009 - - - - - - 48,786 311,361 288,917 88,369

The main assumptions used to value Société Générale stock option plans are as follows:

2009 2008 2007 2006 2005 2003-2004

Risk-free interest rate 3.0% 4.2% 4.2% 3.3% 3.3% 3.8%

Implicit share volatility (1) 55.0% 38.0% 21.0% 22.0% 21.0% 27.0%

Forfeited rights rate 0 % 0% 0% 0% 0% 0%

Expected dividend (yield) 3.5% 5.0% 4.8% 4.2% 4.3% 4.3%

Expected life (after grant date) 5 years 5 years 5 years 5 years 5 years 5 years

(1) The implicit volatility used is that of Société Générale 5-year share options traded OTC (TOTEM database), which was around 55% in 2009.

This implicit volatility reflects the future volatility.

Allocation of SG shares with a discount

As part of the Group employee shareholding policy, Société

Générale offered on April 23, 2009 to employees of the Group

the opportunity to subscribe to a reserved capital increase

at a share price of EUR 27.09, with a discount of 20% to the

average share price of the Société Générale share for the 20

prior to the offering date.

566,973 shares were attributed, representing an expense of

EUR 2.9 million euros for the Group after taking into account

the qualified five-year holding period. The valuation model

used, which complies with the recommendation of the

National Accounting Council on the accounting treatment of

company savings plans, compares the gain the employees

would have obtained if they had been able to sell the shares

immediately and the notional cost that the 5-year holding

period represents to the employees. This notional 5-year

holding period cost is valued as the net cost of the Société

Générale shares cash purchase financed by a non-affected

and non-revolving five-year credit facility and by a forward

sale of these same shares with a 5-year maturity.

The main market parameters used to value this notional

5-year holding cost, determined at the attribution date, are:

� average price of the Société Générale share over the

subscription period: EUR 39.63;

� risk-free interest rate: 2.79%;

� interest rate of a non-affected 5-year credit facility

applicable to market players benefiting from non-

transferable shares: 6.5%.

The notional 5-year holding period is valued at 18.7% of

Société Générale’s share price at the attribution date.



� Note 35Others charges


2009/2008 change

in value in %

Rent and rental charges -45.2 -41.7 -3.5 8.4

Lease finance charges -0.4 -0.4 - -

External services and other -254.9 -259.0 4.1 -1.6

Temporary employees and external contractors -3.4 -4.5 1.1 -24.4

Telecoms expenditure -10.4 -9.4 -1.0 10.6

Transport and travel -18.3 -20.7 2.4 -11.6

Charges reinvoiced to third parties 6.0 2.5 3.5 140.0

Transfer of charges 21.8 22.8 -1.0 -4.4

TOTAL OTHER CHARGES -304.8 -310.4 5.6 -1.8

2009 saw a decline in other operating expenses, which fell by

1.8% compared to December 31, 2008.

In addition, the figures in the preceding table, line to line, are

gross, i.e. before any capitalisation; if and when charges are

capitalised, they also appear, deducted from total, in the last

line, «Transfer of charges».

Note that, in according with the measures provided for in

accounting regulations, and in respect of these measures, in

2009 Crédit du Nord capitalised EUR 21.8 million in charges

from the «External services and other» entry (vs. EUR 22.8 million

at end-2008). This sum corresponds to the expenses generated

by the production of different software packages for the Group’s

internal use. After capitalisation, these software packages are

amortised over 3 to 5 years as of their installation.

In 2009, the Group’s global audit budget for the Statutory

Auditors and the members of their networks stood at, for fully

and proportionately consolidated companies, EUR 972,000

excluding tax (excluding expenses and outlay).

This sum is entered into the heading «External services and

other» and breaks down as follows:

(in EUR thousands)

DELOITTE ERNST & YOUNG OTHERS

2009 2008 2009 2008 2009 2008

Statutory Auditors, certification, examination of individual

and consolidated accounts, for fully and proportionately

consolidated companies 512.0 527.0 319.0 239.0 141.0 130.3

Additional assignments - 16.0 - 25.0 - -

TOTAL 512.0 543.0 319.0 264.0 141.0 130.3



� Note 37Cost of risk


2009/2008 change

in value in %

COUNTERPARTY RISK

Net allocation for impairment -204.6 -126.9 -77.7 61.2

Losses not covered by provisions -8.2 -13.8 5.6 -40.6

Amounts recovered on amortised receivables 5.9 8.1 -2.2 -27.2

SUB-TOTAL -206.9 -132.6 -74.3 56.0

OTHER RISKS

Net allowance for other provisions and liability items -0.1 1.5 -1.6 -

Losses not covered by provisions -0.8 -0.9 0.1 -11.1

SUB-TOTAL -0.9 0.6 -1.5 -

TOTAL -207.8 -132.0 -75.8 57.4

� Note 36Provisions, impairment and depreciation of tangible and intangible fixed assets

Operating fixed assets


2009/2008 change

in value in %

Intangible fixed assets -31.3 -32.3 1.0 -3.1

Tangible fixed assets -43.9 -42.3 -1.6 3.8

DEPRECIATION AND AMORTISATION -75.2 -74.6 -0.6 0.8

O/w computer hardware and software -42.0 -42.6 0.6 -1.4

Note that the amortisation expense of IT hardware and

software represented EUR 75.2 million euros of the total EUR

42.0 million depreciation allowance (i.e. 56% of total), thus

clearly reflecting the Group’s focus on investment over recent

years in both IT equipment for the Group’s sales network and

specific central operating systems.



� Note 39Net gains or losses on other assets


2009/2008 change

in value in %

Disposal of shares in Etoile Gestion 122.6 - 122.6 -

Disposal of shares in Dexia-C.L.F 7.1 - 7.1 -

Capital gains or losses on disposals of operating fixed assets 1.0 - 1.0 -

TOTAL 130.7 - 130.7 -

� Note 40Income tax


2009/2008 change

in value in %

Current taxes -43.5 -24.1 -19.4 80.5

Deferred taxes -58.6 -99.2 40.6 -40.9

TOTAL -102.1 -123.3 21.2 -17.2

No non-financial companies are consolidated using the

equity method.

The income of EUR 3.1 million from financial companies in

2009 is due to the Group’s proportionate share in Banque

Pouyanne (EUR 0.6 million in 2009 vs. EUR 1.0 million in

2008) and Dexia-C.L.F. Banque (EUR 2.5 million in 2009 vs.

EUR 1.1 million in 2008).

As Dexia-CLF Banque was sold in December 2009, CDN

Group’s proportionate share of this entity was recorded for

the full year.

� Note 38Income from companies accounted for by the equity method


2009/2008 change

in value in %

Financial 3.1 2.1 1.0 47.6

Non-financial - - - -

TOTAL 3.1 2.1 1.0 47.6



� Note 41Minority interests


2009/2008 change

in value in %

SHARE OF MINORITY INTERESTS

IN CONSOLIDATED NET INCOME 10,0 6,5 3,5 53,8

In France, standard corporate income tax is 33.3%.

Since January 1, 2007, long-term capital gains on equity

investments have been tax-exempt, subject to taxation of

a share for fees and expenses of 1.66%. Added to this is a

Social Security and Solidarity Contribution of 3.3% (after a

deduction of EUR 0.76 million) initiated in 2000. In addition,

under the regime of parent companies and subsidiaries,

dividends received from companies in which the equity

investment is at least 5% are tax-exempt.

The normal tax rate applicable to French companies to

determine their deferred tax is 34.43% and the reduced

rate is 1.72% depending on the nature of the transactions

in question.

Reconciliation of the difference between the Group’s normative tax rate and its effective tax rate:

The share of minority interests in consolidated net income is mainly generated by Banque Tarneaud and Banque Nuger.


Income before tax and net income from companies accounted for by the equity

method 456.9 380.4

Normal tax rate applicable to French companies (including 3.3% contribution) 34.43% 34.43%

Permanent differences -10.09% -0.40%

Differential on items taxed at reduced rate -1.18% -0.49%

Tax differential on profits taxed outside France -0.52% -0.41%

Gain due to tax consolidation -0.21% -0.88%

Adjustments and dividend tax credits 0.05% -0.02%

Change in tax rate - -

Other items -0.13% 0.18%

Group effective tax rate 22.35% 32.41%



For financial instruments which are recognised at fair value in the balance sheet, the figures given in the notes should not be

taken as an estimate of the amount that would be realised if all such financial instruments were to be settled immediately.

� Note 42Statement of fair value

At 31/12/2009

(in EUR millions)

Net book value

Total NBV Fair value

Floating

rate

Fixed rate

Not broken

down

Less than 1

year

More than 1

year

FAIR VALUE OF ASSETS

Due from banks 3,082.0 271.8 146.7 3,500.5 3,500.5

Customer loans 7,269.1 212.5 15,994.9 23,476.5 23,743.3

Lease financing and similar agreements 197.0 87.3 1 574.9 1,859.2 1,872.8

Held-to-maturity financial assets - 0.1 58.1 58.2 58.4

Investments in subsidiaries and affiliates accounted for

by the equity method 7.4 7.4 7.4

Fixed assets (excluding intangible assets) 308.7 308.7 604.5

FAIR VALUE OF LIABILITIES

Due to banks 2,459.5 126.6 965.9 3,552.0 3,552.0

Customer deposits 11,491.0 5,305.9 1,517.7 18,314.6 18,314.4

Debt securities 5,404.2 1,329.6 611.3 7,345.1 7,378.3

Subordinated debt 65.3 9.2 560.1 634.6 607.2

� Note 43Transactions with related parties

In accordance with the definitions provided under IAS 24, Crédit du Nord’s related parties include the following: members of the

Board of Directors, corporate officers (the Chairman and Chief Executive Officer and the two Deputy Chief Executive Officers)

and their respective spouses and any children residing in their family home, on the one hand, and affiliated companies, on the

other.

Z A. SENIOR MANAGERS

A.1. Remuneration of the Group’s managers (1)

This includes amounts effectively paid by Crédit du Nord Group to directors and corporate officers as remuneration (including

employer charges), and other benefits under IAS 24, paragraph 16, as indicated below:


2009/2008 change

in value in %

Short-term benefits 1,8 1,0 0,8 80,0

Post-employment benefits 0,3 0,3 - -

Long-term benefits - - - -

Termination benefits - - - -

Share-based payments 0,4 0,5 -0,1 -20,0

TOTAL 2,5 1,8 0,7 38,9

(1) At December 31, 2009, there were three Corporate Officers: the Chairman and Chief Executive Officer, and two Deputy Chief Executive Officers. As the appointment of the two

Deputy CEOs took place on November 1, 2008, their appointments only appear for the period since that date in the 2008 figures.



Information about company directors contains a detailed description of the remuneration and benefits of the Crédit du Nord’s

senior managers.

A.2. Related party transactions

The transactions with members of the Board of Directors, Chief Executive Officers and members of their families included in

this note comprise loans and guarantees outstanding at December 31, 2009 and securities transactions. These transactions

are insignificant.

Z B. PRINCIPAL SUBSIDIARIES AND AFFILIATES

Crédit du Nord Group has reported the following companies as affiliated entities: on the one hand Antarius, consolidated using

the proportional method, and on the other hand Société Générale Group with which it carries out transactions.

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

OUTSTANDING ASSETS WITH RELATED PARTIES

Financial assets at fair value through profit or loss 24.2 66.2 -42.0 -63.4

Other assets 1,654.0 4,218.5 -2,564.5 -60.8

TOTAL OUTSTANDING ASSETS 1,678.2 4,284.7 -2,606.5 -60.8

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

OUTSTANDING LIABILITIES WITH RELATED PARTIES

Financial liabilities at fair value through profit or loss 29.6 25.8 3.8 14.7

Customer deposits - - - -

Other liabilities 3,555.2 3,546.2 9.0 0.3

TOTAL OUTSTANDING LIABILITIES 3,584.8 3,572.0 12.8 0.4


2009/2008 change

in value in %

NBI FROM RELATED PARTIES

Interest and similar income -109.3 13.2 -122.5 -

Fees and commissions -5.8 -6.3 0.5 -7.9

Net income from financial transactions 6.3 -126.2 132.5 -

Net income from other activities - - - -

NBI -108.8 -119.3 10.5 -8.8

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

COMMITMENTS TO RELATED PARTIES

Loan commitments given - - - -

Guarantee commitments given 1,595.2 210.2 1,385.0 -

Forward financial instrument commitments 17,196.4 20,459.0 -3,262.6 -15.9



� Note 44Contribution to net income by business line and company

Due to the restatements inherent in the consolidation process the contribution of Group companies to consolidated net

income may differ significantly from amounts appearing in individual financial statements. The following table presents the net

contribution (i.e. after restatement for consolidation purposes) by company, grouped by sector of activity, to consolidated net

income.

Contribution to consolidated net income (Group share)


Crédit du Nord 162.0 135.4

Banque Rhône-Alpes 30.9 28.5

Banque Tarneaud 22.9 18.5

Banque Courtois 40.5 33.2

Banque Laydernier 13.7 10.9

Banque Nuger 6.6 4.4

Banque Kolb 11.7 8.9

Norbail Immobilier 2.6 3.5

Gilbert Dupont (brokerage firm) 0.7 0.7

Star Lease 4.5 5.0

Dexia-C.L.F Banque (1) 2.5 1.1

Nord Assurances Courtage 1.2 1.1

Other companies 10.8 9.8

SUB-TOTAL BANKING 310.6 261.0

Etoile Gestion (2) 23.8 -21.6

Etoile Gestion Holding (2) - -

SUB-TOTAL ASSET MANAGEMENT 23.8 -21.6

Antarius (3) 13.5 13.3

SUB-TOTAL INSURANCE 13.5 13.3

TOTAL 347.9 252.7

(1) As Dexia-C.L.F Banque was sold in December 2009, CDN Group’s proportionate share of this entity was recorded in accordance with previous years for a full year on the income

statement under «companies accounted for by the equity method».

(2) The shares of Etoile Gestion held by CDN Group entities were contributed to Etoile Gestion Holding at December 31, 2009.

2009 income on the Etoile Gestion line presented above (EUR 23.8 million) corresponds to Credit du Nord Group’s share of this entity’s income for full-year 2009.

(3) including sub-consolidated insurance mutual funds.

Share of each activity in overall net income

2009 2008

Banking 89.3% 103.3%

Asset management 6.8% -8.6%

Insurance 3.9% 5.3%



� Note 45Activities of subsidiaries and affiliates

The figures provided below are taken from the companies’ IFRS reporting packages, prior to consolidation restatements.

Z A. Banks

Name

(% shareholding)

(in EUR millions) Date

Total

balance

sheet

Customer

deposits

Customer

loans

Net

Income Remarks

BANQUE RHONE-ALPES 31/12/09 2,533.7 1,404.9 2,088.2 32.6 The interest margin on customers* dropped by 6.1% while net

fees remained stable compared to 2008. NBI was positively

impacted by Etoile Gestion’s income: the dividend received

from this entity was negative in 2008 and positive in 2009.

Operating expenses remained under control, whereas the

cost of risk underwent a sharp increase.

The rise in net income (+19.9%) can therefore be attributed

primarily to the capital gain on the disposal of Etoile Gestion

shares (EUR 8.8 million).

(99.99%) 31/12/08 2,676.2 1,411.8 2,200.0 27.2

BANQUE TARNEAUD 31/12/09 2,538.4 1,256.7 1,976.8 30.8 The interest margin on customers* dropped by 4.3%

while fees picked up by 2.4% compared to 2008. NBI was

positively impacted by Etoile Gestion’s income: the dividend

received from this entity was negative in 2008 and positive in

2009. Operating expenses remained under control, whereas

the cost of risk underwent a sharp increase. The rise in net

income (+43.9%) can therefore be attributed primarily to

the capital gain on the disposal of Etoile Gestion shares

(EUR 9.0 million).

(80.00%) 31/12/08 2,396.1 1,195.6 1,933.8 21.4

BANQUE COURTOIS 31/12/09 3,144.1 1,741.6 2,614.9 42.7 The interest margin on customers* rose by 3.2% while fees

remained stable compared to 2008. NBI was positively



Operating expenses remained under control, whereas the

cost of risk underwent a sharp increase. The rise in net

income (+36.9%) can therefore be attributed primarily to

the capital gain on the disposal of Etoile Gestion shares

(EUR 9.6 million).

(100;00%) 31/12/08 3,092.9 1,695.6 2,557.1 31.2

BANQUE LAYDERNIER 31/12/09 1,126.1 683.7 961.7 14.9 The interest margin on customers* rose by +1.2% while

fees remained stable compared to 2008. NBI was positively



Operating expenses were in line with last year, whereas

the cost of risk underwent a sharp increase. The rise in net

income of 40.6% can be attributed to the capital gain on the

disposal of Etoile Gestion shares (EUR 3.6 million).

(100,00 %) 31/12/08 1,157.0 653.8 958.9 10.6

BANQUE KOLB (1) 31/12/09 1,137.0 639.0 1,011.4 12.7 The interest margin on customers* fell by 8.3% while fees

remained stable compared to 2008. NBI was nevertheless

positively impacted by Etoile Gestion’s income: the dividend

received from this entity was negative in 2008 and positive in

2009. Operating expenses remained under control. The rise

in net income of 51.2% can be attributed to the capital gain

on the disposal of Etoile Gestion shares (EUR 3.6 million).

(99,87 %) 31/12/08 1,174.7 642.4 1,023.0 8.4



Name

(% shareholding)


Total

balance

sheet

Customer

deposits

Customer

loans

Net

Income Remarks

BANQUE NUGER 31/12/09 585.0 447.8 425.5 10.8 The interest margin on customers* increased by 7.7%. Fees

rose slightly compared to 2008. NBI was positively impacted

by Etoile Gestion’s income: the dividend received from this

entity was negative in 2008 and positive in 2009. Operating

expenses remained under control, whereas the cost of risk

underwent a sharp increase. The rise in net income (+74.2%)

can therefore be attributed primarily to the capital gain on the

disposal of Etoile Gestion shares (EUR 2.9 million).

(64.70%) 31/12/08 574.6 433.2 422.5 6.2

BANQUE POUYANNE 31/12/09 234.7 186.4 128.5 2.7

Net income fell by 10% over 2009.(35.00%) 31/12/08 220.1 196.4 126.9 3.0

* interest margin on customers, excluding lease financing

(1) As this is a lease financing company, the income and outstandings presented here were taken from the financial accounts to best reflect the economic reality.

Z B. Specialised banks and financial institutions

Name

(% shareholding)


Total

balance

sheet

Customer

deposits

Customer

loans

Net

Income Remarks

BROKERAGE FIRM

GILBERT DUPONT 31/12/09 39.8 - - 1.1Brokerage firm Gilbert Dupont’s net income fell by 21.4%

compared to 2008. This decline was mainly attributable to

a rise in operating expenses (+6.6%) partially offset by the

increase in NBI (+2.9%). (100.00%) 31/12/08 53.5 - - 1.4

NORBAIL IMMOBILIER (1) 31/12/09 506.0 23.8 477.3 2.9

Norbail Immobilier is a Crédit du Nord Group leasing

company. 2009 net income dropped by 21.6% versus 2008,

due mainly to the decline in net income on lease financing

(-14.1%) and in net income on operating leases (-14.8%)

compared to 2008.(100.00%) 31/12/08 441.3 18.6 425.4 3.7

TURGOT GESTION (1) 31/12/09 1.4 - - 1.1

The leasing activity of Banque Tameaud has been redirected

from Turgot Gestion towards Star Lease, a Crédit du Nord

Group leasing company. The sharp rise in net income versus

2008 is mainly attributable to the capital gain on the disposal

of long-term investment securities (EUR 1.0 million).(80.00%) 31/12/08 1.5 - - 0.1

NORFINANCE

G. DUPONT ET ASSOCIES 31/12/09 22.5 9.5 - 1.9Norfinance is an asset management company. 2009 net

income rose by 18.8% versus 2008, mainly due to the

capital gain from the disposal of Etoile Gestion shares

(EUR 0.6 million).(100.00%) 31/12/08 17.6 5.5 - 1.6

DEXIA-C.L.F BANQUE 31/12/09 2,970.2 1,501.1 1,255.1 12.3 DEXIA-C.L.F Banque’s net income improved significantly

on 2008. Crédit du Nord Group’s shareholding in Dexia-CLF

Banque was sold over the month of December 2009. (0.00% versus 20.00%

at 31 December 2008)

31/12/08 3,944.0 1,880.7 2,050.3 5.3

NORBAIL SOFERGIE (1) 31/12/09 63.1 3.5 47.5 -0.5Norbail Sofergie continued to expand its wind farm financing

business in 2009. The development of its net banking income

helped significantly reduce the loss recorded in 2009 versus

2008.(100.00%) 31/12/08 56.6 2.3 40.4 -1.4

STAR LEASE (1) 31/12/09 1,515.8 2.0 1,328.2 4.5 Star Lease is a Crédit du Nord Group leasing company. Star

Lease’s 2009 NBI rose by 5.8% versus 2008. The increase in

net risk nevertheless resulted in a 10.0% decline in net income.(100.00%) 31/12/08 1,518.7 1.5 1,361.6 5.0

(1) As these are lease financing companies, the income and outstandings presented here were taken from the financial accounts to best reflect the economic reality.



Z C. Others Companies

Name

(% shareholding)


Total

balance

sheet

Net

Income Remarks

ETOILE GESTION 31/12/09 67.5 25.3 The Etoile Gestion brokerage firm manages UCITS for Crédit du Nord Group. In

2008, the impact of the financial crisis resulted in the recording of an exceptional

expense of EUR 72.2 million.

The environment was more positive in 2009, resulting in a positive income of

EUR 25.3 million.

As part of the merger of the asset management activities of SG Group and Crédit

Agricole Group, Etoile Gestion was sold by Crédit du Nord Group. Etoile Gestion

was consolidated by AMUNDI as at 31 December 2009 and is therefore no longer

a part of Crédit du Nord’s consolidation scope.

(0.00% versus 97.03%

at 31 December 2008)

31/12/08 95.8 -36.7

ANTARIUS 31/12/09 8,040.7 27.1 Antarius, which was created through a partnership with Aviva, is Crédit du

Nord Group’s life insurance company. Net income rose by 1.9% versus

31 December 2008 to EUR 27.1 million, thanks in large part to the increase of

13.3% in premiums acquired.(50.00%) 31/12/08 6,729.7 26.6

ETOILE ID 31/12/09 30.5 6.3 Etoile ID, Crédit du Nord Group’s venture capital company, derives the majority of

its income from capital gains on disposals and revenues on securities. Its portfolio

is comprised exclusively of unlisted companies.

Fiscal year 2009 was highlighted by disposals generating substantial caiptal gains

of EUR 6.5 million (excluding reversals of provisions).

(100.00%) 31/12/08 35.0 6.7

SFAG 31/12/09 4.6 -The company’s business remains very marginal.

(100.00%) 31/12/08 4.6 -

CREDINORD CIDIZE 31/12/09 20.2 0.5 This company, specialising in certain market activities, posted income of

EUR 0.5 million in 2009. Most of its assets are comprised of long-term investment

securities.(100.00%) 31/12/08 83.0 0.9

NORIMMO 31/12/09 8.6 1.2 Norimmo is a registered estate agent engaged in property development. Its 2009

income was stable compared to 2008. This income was comprised in part by the

net income contributed by its subsidiaries, Nice Broc and Nice Carros. Note that

the entity’s tax expense was borne by its partners.(100.00%) 31/12/08 8.6 1.2

ANNA PURNA 31/12/09 - -

These three companies are subsidiaries of Norimmo and specialised in real

estate and property operations. Their 2009 income was stable on 2008: Nice

Broc generated income of EUR 1.3 million, up 8.3% on 2008.

(100.00%) 31/12/08 - -

NICE BROC 31/12/09 8.3 1.3

(100.00%) 31/12/08 8.2 1.2

NICE CARROS 31/12/09 1.1 -

(100.00%) 31/12/08 1.1 -0.1

NORD ASSURANCES

COURTAGE 31/12/09 6.6 1.8This insurance brokerage company generated earnings before taxes of EUR 1.8

million in 2009, up 5.9% versus 2008.

Note that the entity’s tax expense was borne by its partners.(100.00%) 31/12/08 6.4 1.7

PARTIRA 31/12/09 1.7 -Partira manages a residual inventory of assets comprised of shares in property

investment companies.(100.00%) 31/12/08 1.7 -

KOLB INVESTISSEMENT 31/12/09 11.1 1.3This holding company, acquired in 2001, owns 21.4% of Banque Kolb. Its income

is derived almost exclusively from dividends received from the latter.(100.00%) 31/12/08 9.8 1.6

SC FORT DE NOYELLES 31/12/09 0.9 -This property development company was created in 2005 for a single property

construction and rental operation.(100.00%) 31/12/08 0.9 -

ETOILE GESTION

HOLDING 31/12/09 155.0 -

The Etoile Gestion shares held by Crédit du Nord Group entities were contributed

to Etoile Gestion Holding at 31 December 2009.

On the same day, Etoile Gestion Holding then contributed the newly held Etoile

Gestion shares to Amundi, a company created from the merger of the asset

management activities of the Société Générale and Crédit Agricole groups.

Subsequent to this transaction, Etoile Gestion Holding held 3.0% of Amundi’s

capital.

(97.73%)


2 I Consolidated fi nancial statements IStatutory Auditor’s Report on the consolidated fi nancial statements

� Statutory Auditor’s Report on the consolidated

financial statementsFiscal year ended december 31, 2009


In compliance with the assignment entrusted to us by your

annual general Meeting, we hereby report to you, for the year

ended December 31, 2009, on:

� the audit of the accompanying consolidated financial

statements of Crédit du Nord;

� the justification of our assessments;

� the specific verification required by law.

The consolidated financial statements have been approved

by the Board of Directors. Our role is to express an opinion on

these consolidated financial statements, based on our audit.

Z I. Opinion on the consolidated financial statements

We conducted our audit in accordance with professional

standards applicable in France; those standards require that

we plan and perform the audit to obtain reasonable assurance

about whether the consolidated financial statements are

free of material misstatement. An audit involves performing

procedures, using sampling techniques or other methods of

selection, to obtain audit evidence about the amounts and

disclosures in the financial statements. An audit also includes

evaluating the appropriateness of accounting policies used

and the reasonableness of accounting estimates made, as

well as the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion..

In our opinion, the consolidated financial statements give

a true and fair view of the assets and liabilities, and of the

financial position of the Group as at December 31, 2009 and

of the results of its operations for the year then ended in

accordance with IFRSs as adopted by the European Union.

Without qualifying our opinion, we draw your attention to the

matter set out in Note 1 to the financial statements which

details the changes in accounting methods applied by the

Group as from January 1, 2009, and in particular the early

application of IFRS 3 (revised), «Business Combinations»,

and IAS 27 (revised), «Consolidated and separate financial

statements».

Z II. Justification of our assessments

The accounting estimates used in the preparation of the

consolidated financial statements as at December 31,

2009 were made in a persistently unfavourable economic

and market environment. It is in this context that, in

accordance with the requirements of Article L. 823-9 of

the French Commercial Code relating to the justification of

our assessments, we draw your attention to the following

matters:

This is a free translation into English of the statutory auditors’ report on the consolidated financial statements issued in French

and it is provided solely for the convenience of English-speaking users.

The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or not.

This information is presented below the audit opinion on the consolidated financial statements and includes an explanatory

paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments

were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not

to provide separate assurance on individual account balances, transactions or disclosures.

This report also includes information relating to the specific verification of information given in the group’s management report.

This report should be read in conjunction with and construed in accordance with French law and professional auditing standards

applicable in France.


I Consolidated fi nancial statements IStatutory Auditor’s Report on the consolidated fi nancial statements

� In preparing the financial statements, as indicated in

Note 1 to the financial statements, your Company makes

provisions to cover the credit risks which are inherent

to its activities. Bearing in mind the specific context of

the financial crisis, we have reviewed and tested the

procedures implemented by Management to identify and

assess non-recovery risks and determine the amount of

individual and collective provisions necessary.

� In the context of the financial crisis, as indicated in the

Note 1 to the financial statements, your company uses

internal models to value financial instruments which are

not listed on active markets. As such, we have reviewed

the system for controlling the models used and assessed

the data and assumptions used, as well as the integration

of the risks and results associated with these instruments.

� Furthermore, in this context, we have examined the

controls of accounting data on financial instruments which

can no longer be traded on active markets, or whose

valuation parameters are no longer observable, as well as

the methods used to value said instruments.

� As indicated in Note 3, your company carried out

estimated designed to take into account the impact of

the change in its credit risk on the valuation of certain

financial liabilities measured at fair value. We have verified

the appropriateness of the parameters used in these

estimates.

� In preparing its financial statements, your company also

makes significant accounting estimates, in accordance

with the methods described in Note 1 to the financial

statements, notably relating to the fair value of financial

instruments carried at amortised cost, the valuation

of goodwill, pension commitments and other post-

employment benefits. Bearing in mind the specific context

of the crisis, we have reviewed and tested the procedures

implemented by management, the assumptions and

parameters used, and ensured that these accounting

estimates are based on documented methods in

accordance with the principles described in Note 1 to the

financial statements.

These assessments were made as part of our audit of the

consolidated financial statements taken as a whole and,

therefore contributed to the opinion we formed which is

expressed in the first part of this report.

Z III. Specific verification

As required be law, we have also verified, in accordance with

professional standards applicable in France, the information

presented in the group’s Management Report. We have no

matters to report as to its fair presentation and its consistency

with the consolidated financial statements.







2009 Management Report .................................139

Five-year financial summary ..............................141

Individual Balance sheet at December 31 .........142

Income statement .............................................144

Notes to the individual financial statements ......145

Information on the Corporate Officers ...............184

Statutory Auditors’ Report on the Annual Financial Statements ..................196

Statutory Auditors’ Special Report on Regulated Agreements and Commitments with Third Parties ................198

Draft resolutionsGeneral Meeting of Shareholders of May 12, 2010 ................................................200

Individual fi nancial

statements


I Individual fi nancial statements I2009 Management Report

� 2009 Management Report

While the end of 2009 held the promise of a slow recovery in

economic activity, the year was nonetheless highlighted by an

unprecedented recession which affected the main economic

indicators and most business sectors.

With such a harsh crisis gripping its key asset management

and business customer markets, Crédit du Nord Group

consolidated its gross operating income but was nonetheless

hurt by the higher cost of risk.

Z Fiscal year activity

Owing to uncertainties arising from the economic crisis,

outstanding customer loans marked time (-2.7%) after

several years of continuous growth. For individual customers,

although outstanding housing loans rose again in 2009

(+5.2%), driven by a high number of new loans in 2008, the

decline in the property market led to a drop in new housing

loans in 2009. For business customers, the recession and

uncertainties concerning the possibility of a lasting recovery

led to a collapse in business investments, with inventory

reductions generating a sharp contraction in demands for

loans. Outstanding treasury and capex loans fell by 10.0%

and 1.1%, respectively.

Outstanding sight deposits (+2.9%) rose across all markets

(individual customers and particularly professional and

business customers) given the low appeal of money market

investments and regulated savings products in the wake

of the drop in short rates and rates of return. The drop in

short rates also explains the substantial fall in term account

deposits (-78.7%), with capital having been transferred to

regulated sight savings accounts (+22.6%). Consequently,

net inflows in Livret A savings passbooks (sales of which

began at the start of the year) made swift gains, reaching

EUR 411.9 million.

Driven by positive developments on the financial markets,

custody of securities managed by the Bank for its clients rose

significantly: EUR 20.2 billion in 2009 versus EUR 18.6 billion

in 2008. The share of UCITS dropped by 51.8% to 48.9%.

Z 2009 Net Income

In 2008, net banking income was impacted by various

non-recurring items: by the negative income from asset

management company Etoile Gestion which was obligated

to sell off assets held by some of its funds, causing Crédit

du Nord to record an exceptional expense of EUR -51.2

million; by write downs (EUR -58.8 million) on long-term

investment securities bought from the Etoile Gestion funds

and by dividends (+EUR 9.3 million) received from VISA

Incorporation.

In 2009, net banking income amounted to EUR 1,054.7

million, up 13.2%. Adjusted for the above items and for

net write-backs of provisions booked in 2009 on long-term

investment securities bought from the Etoile Gestion funds

(+EUR 33.9 million), net banking income declined by 1.1%.

Despite a substantial drop in financial fees linked to the

persistently uncertain market environment, this stabilisation

in NBI drew on the solid resilience of the sales margin on the

back of low interest rates, aiding the rebound in the margin

on loans.

Operating expenses totalled EUR 672.5 million. As in previous

years, operating expenses were kept under control with

respect to the previous fiscal year (+1.3% versus +1.8%

last year).

In light of all these factors, gross operating income came

out at EUR 382.2 million (+42.8%). Restated for the above-

mentioned items, it was down 5.5%.

Cost of risk (EUR -114.2 million) rose by 33.4% in the wake of

a sharp rise in 2008. This change reflects the impact on our

customers (particularly business customers) of the extremely

challenging crisis plaguing the economy since mid-2008,

the impacts of which could very much still be seen in 2009.

Operating income stood at EUR 268.0 million.

Within the framework of the Amundi deal (contribution of

Société Générale’s Group’s asset management business

to Crédit Agricole Asset Management), Crédit du Nord

generated a capital gain of EUR 87.8 million linked to the

contribution of its entire stake in Etoile Gestion to the new

entity. Thanks to this capital gain and the gain from the sale

of the share held in Dexia-C.L.F Banque (+EUR 11.5 million),

earnings before taxes amounted to EUR 368.5 million.

After corporate tax, net income for fiscal year 2009 came out

at EUR 331.4 million versus EUR 168.2 million in 2008.


3 I Individual fi nancial statements I2009 Management Report

Z Outlook

The outlook for the economic situation points to a slow

improvement which should benefit all players on the economic

scene. In spite of the uncertain environment, Crédit du Nord

Group is determined to maintain its commercial development

policy across all markets, in line with its full service local

banking model.

The various investments undertaken in recent years, both

in terms of branch openings as well as technical and

organisational projects, will be continued. This type of

momentum guarantees Crédit du Nord’s medium-term

profitability.

Z Timetable of accounts payable

The maturity dates correspond to the payment dates listed on

the invoices or to supplier terms and conditions, independent

of their date of receipt.

At Crédit du Nord, supplier invoices are processed centrally

for the most part. The Purchasing Department records the

invoices and carries out the payments requested by all of the

functional departments. The network branches have special

teams to process and pay their own invoices.

In accordance with Crédit du Nord’s internal control

procedures, invoices are only paid after they are approved

by the departments which ordered the services. Once the

approval is obtained, they are entered into a joint application,

with payments made according to the terms set by the

suppliers.

Unmatured debt

Matured debt Total(in EUR million) 1 to 30 days 31 to 60 days More than 60 days

Amount at 31/12/2009 2.1 0.1 - - 2.2


I Individual fi nancial statements IFive-year fi nancial summary

� Five-year financial summary

2009 2008 2007 2006 2005

CAPITAL AT YEAR-END

Common stock (in euros) 740,263,248 740,263,248 740,263,248 740,263,248 740,263,248

Shares outstanding 92,532,906 92,532,906 92,532,906 92,532,906 92,532,906

RESULTS OF OPERATIONS FOR THE YEAR (in EUR thousands)

Revenue, without tax (1) 1,698,558 2,126,540 2,009,819 1,675,274 1,497,077

Net banking income (NBI) 1,054,647 931,564 1,062,358 973,749 903,044

Income before tax, depreciation, provisions

and profit-sharing 520,679 404,049 468,649 400,172 366,353

Income tax -37,134 -14,635 -30,672 -83,078 -72,242

Income after tax, depreciation, provisions

and profit-sharing 331,356 168,230 336,109 238,017 180,834

Total dividends (2) 323,865 129,546 189,692 175,813 143,426

EARNINGS PER SHARE (in euros)

Earnings after tax and profit-sharing but before

depreciation and provisions (3) 4.98 4.05 4.48 3.17 2.88

Income after tax, depreciation, provisions

and profit-sharing (3) 3.58 1.82 3.63 2.57 1.95

Dividend per share (2) 3.50 1.40 2.05 1.90 1.55

EMPLOYEE DATA

Number of employees 5,913 5,965 5,918 5,850 5,856

Total payroll (in EUR thousands) 263,915 260,091 257,216 246,059 236,419

Total benefits (social security, social works, etc.)

(in EUR thousands) (4) 113,801 113,314 111,933 117,396 117,163

(1) Defined as the sum of bank operating income and other income deducted for interest paid on swaps.

(2) For the financial year.

(3) Based on the number of shares issued at year-end.

(4) 2008 figures have been adjusted with respect to those published last year.


3 I Individual fi nancial statements IIndividual Balance sheet at December 31

� Individual Balance sheet at December 31

Z Assets


Cash, due from central banks and postal accounts 783.2 485.8

Treasury notes and assimilated 4 1,441.5 221.1

Due from banks 2 5,034.4 6,939.2

Current accounts 2,502.7 2,531.2

Term accounts 2,531.7 4,408.0

Transactions with customer 3 14,482.5 14,877.2

Commercial loans 352.6 391.1

Other customer loans 13,336.1 13,339.4

Overdrafts 793.8 1,146.7

Bonds and other debt securities 4 4,416.3 6,529.6

Shares and other equity securities 4 1.2 0.9

Equity investments and other long-term investment securities 5 93.2 96.0

Investments in subsidiaries and affiliates 5 806.6 725.2

Leases and rentals with option to purchase 5.6 6.7

Intangible assets 6 123.2 120.0

Tangible assets 6 196.5 194.8

Capital subscribed but unpaid - -

Treasury shares - -

Other assets 7 247.9 398.8

Accrued income 7 389.9 596.5

TOTAL 28,022.0 31,191.8

Z Off-Balance sheet items


Loan commitments given 2,328.2 2,276.2

To banks 228.0 127.6

To customers 2,100.2 2,148.6

Guarantee commitments given 3,476.0 3,696.1

To banks 239.1 346.0

To customers 3,236.9 3,350.1

Securities commitments given 1.3 51.0

Securities acquired with option to repurchase or recover - -

Other commitments given 1.3 51.0

TOTAL COMMITMENTS GIVEN 17 5,805.5 6,023.3


I Individual fi nancial statements IIndividual Balance sheet at December 31

Z Liabilities


Due to central banks and postal accounts 2.2 1.8

Due to banks 9 4,122.4 4,532.6

Current accounts 743.5 910.5


Transactions with customers 10 12,158.5 13,450.2

Special and regulated savings accounts 4,318.2 3,756.6



Other debts 7,840.3 9,693.6


Term accounts 756.9 2,617.3

Debt securities 12 8,061.8 9,629.2

Short-term notes 12.0 14.4

Money market and negotiable debt securities 7,744.5 9,057.1

Bonds 305.3 557.7

Other liabilities 13 383.0 395.7

Accrued expenses 13 813.1 858.4

Provisions 14 131.1 129.0

Subordinated debt 15 637.2 683.7

Shareholders’ equity 16 1,712.7 1,511.2

Subscribed capital 740.3 740.3

Additional paid-in capital 10.4 10.4

Reserves 628.9 591.2

Badwill - -

Regulated provisions 0.8 0.9

Retained earnings 0.9 0.2


TOTAL 28,022.0 31,191.8

Z Off-Balance sheet items


Loan commitments received 1,340.2 -

From banks 1,340.2 -

Guarantee commitments received 5,243.1 4,671.5

From banks 5,243.1 4,671.5

Securities commitments received 1.3 50.6

Securities sold with option to repurchase or recover - -

Other commitments received 1.3 50.6

TOTAL COMMITMENTS RECEIVED 17 6,584.6 4,722.1


3 I Individual fi nancial statements IIncome statement

� Income statement

(in EUR millions) Notes 2009 2008

Interest and similar income 925.5 1 268.8

Interest and similar expenses -381.1 -860.8

Net interest and similar income (expenses) 20 544.4 408.0

Income from equity securities 20 108.8 103.4

Fee income 489.2 504.0

Fee expenses -49.3 -48.7

Net fee income or (expenses) 21 439.9 455.3

Gains or losses on trading portfolio transactions 20 -73.2 24.7

Gains or losses on investment portfolio and similar transactions 20 33.7 -58.5

Other banking income 10.5 9.3

Other banking expenses -9.4 -10.6

Net other banking income (expenses) 1.1 -1.3

NET BANKING INCOME 19 1,054.7 931.6

Personnel expenses 23 -422.5 -412.4

Other operating expenses 24 -190.8 -192.4

Amortisation and depreciation expense on tangible and intangible fixed assets 24 -59.2 -59.1

Operating expenses, depreciation and amortisation expense 22 -672.5 -663.9

GROSS OPERATING INCOME 382.2 267.7

Cost of risk 25 -114.2 -85.6

OPERATING INCOME 268.0 182.1

Gains or losses on fixed assets 26 100.5 0.7

PRE-TAX PROFIT 368.5 182.8

Exceptional income - -

Income tax 27 -37.1 -14.6

Net allocation to regulated provisions - -

NET INCOME 331.4 168.2


I Individual fi nancial statements INotes to the individual fi nancial statements

� Notes to the individual financial statements

� Note 1Accounting principles and valuation method

Crédit du Nord’s individual financial statements were drawn

up in accordance with the provisions of CRB (Banking

Regulation Committee) Regulation No. 91-01 applicable to

credit institutions, and the generally accepted accounting

principles of the French banking profession. The presentation

of the financial statements complies with the provisions

of CRC (Accounting Regulation Committee) Regulation

No. 2000-03 relating to individual financial statements of

companies under the authority of the CRBF (French Banking

and Financial Regulation Committee), amended by CRC

Regulation No. 2005-04 of November 3, 2005.

Z Change in accounting methods

relating to fiscal year 2009

Over the course of fiscal year 2009, Crédit du Nord applied

CRC Regulation No. 2009-04 of December 3, 2009 relating

to the valuation of swaps and amending CRC Regulation

No. 90-15 relating to the accounting treatment of interest rate

and currency swaps.

This change in method had no significant impact

Z Due from banks and customers

Amounts due from banks and customers are recorded on the

balance sheet at face value. They are classified according to

their initial duration or type into: demand (current accounts

and overnight transactions) and term accounts in the case

of banks; customer receivables financing, current accounts

and other loans in the case of customers.

Amounts due from banks and customers include outstanding

loans and repurchase agreements for which the securities

are not delivered, entered into with these economic parties.


receivables through profit or loss.

Z Amounts due to banks,

customer deposits

Amounts due to banks and customer deposits are classified

according to their initial duration and type into: demand

(demand deposits, current accounts) and term borrowings

in the case of banks; special savings accounts and other

deposits for customers. Amounts due to banks and customer

deposits include repurchase agreements for which the

securities are not delivered.


payables through profit or loss.

Z Debt securities

These liabilities are classified by type of security: medium-term

notes, savings bonds, negotiable debt instruments, bonds

and other debt securities (with the exception of subordinated

notes, which are classified under subordinated debt).

Interest accrued and payable in respect of these securities

is booked as related payables through profit or loss. Bond

issuance and redemption premiums are amortised using the

actuarial method over the life of the related borrowings. The

resulting charge is recorded as interest expenses through

profit or loss.

Z Subordinated debt

This item includes all dated or undated subordinated

borrowings, which in the event of the liquidation of the

borrowing company may only be redeemed after all other

creditors have been paid. Interest accrued and payable

in respect of subordinated debt, if any, is shown with the

underlying abilities as related payables.


3 I Individual fi nancial statements INotes to the individual fi nancial statements

Z Impairment of individual outstanding

loans due to probable credit risk

In accordance with CRC Regulation No. 2002-03, published

on December 12, 2002, if a loan is considered to bear a

probable risk that all or part of the sums owed by the

counterparty under the initial terms and conditions of the

loan agreement will not be recovered, and regardless of the

existence of loan guarantees, the loan in question is classified

as doubtful. In any event, outstanding loans are reclassified

as doubtful where one or more payments is “90 days

overdue” (six months for real estate and property loans, nine

months for municipal loans), or where, any missed payments

notwithstanding, there is a probable risk of loss or where a

loan is disputed.

Unauthorised overdrafts are classified as doubtful loans

after a period of no more than three uninterrupted months

during which the account limits are exceeded (limits of which

individual customers are notified; limits resulting from legal

or de facto agreements with other categories of customers).

Where a given borrower’s loan is classified as a «doubtful

loan», any other loans and commitments of the same borrower

are also automatically classed as doubtful, regardless of any

guarantees.

Doubtful loans and non-performing loans give rise to

impairment for the probable portion of doubtful and non-

performing loans that will not be recovered, recorded

as an asset write-down. The amount of the impairment

loss for doubtful and non-performing loans is equal to the

difference between the book value of the asset and the

present value discounted for estimated recoverable future

cash flows, taking into account the value of any guarantees,

discounted at the original effective interest rate of the loans.

The impaired receivable subsequently generates interest

income, calculated by applying the effective interest rate to

the net book value of the receivable. Impairment allowances

and reversals, losses on non-recoverable loans and amounts

recovered on impaired loans are booked under “Cost of risk”.

Doubtful loans can be reclassified as performing loans once

there is no longer any probable credit risk and once payments

have resumed on a regular basis according to the initial

contractual schedule. Moreover, doubtful loans which have

been restructured may be reclassified as performing.

In the event the creditworthiness of the borrower is such that

after a reasonable period of classification in doubtful loans, a

reclassification to normal loan status is no longer plausible, the

loans is specifically classified as a non-performing loan. This

status is conferred at close-out or upon cancellation of the loan

agreement and, in any event, one year following classification

in doubtful loans, with the exception of doubtful loans for

which the contractual clauses are respected and/or doubtful

loans with valid enforceable guarantees. Restructured loans

for which the borrower has not respected payment schedules

are also classified as non-performing loans.

Z Performing loans under watch (“3S”)

Within the “Performing loan” risk category, Crédit du Nord has

created a subcategory called “Performing loans under watch”,

to cover loans/receivables requiring closer supervision. This

category includes loans/receivables where certain evidence

of deterioration has appeared since they were granted.

The Group conducts historical analyses to determine the

rate of classification of these loans/receivables as doubtful

and the impairment ratio, and updates these analyses on a

regular basis. It then applies these figures to similar groups of

receivables in order to determine the amount of impairment.

Z Impairment due to sector credit risk

This type of impairment is not made on an individual loan

basis and covers several classes of risk, including regional

sector risk (global risk in sectors of the regional economy

undermined by specific unfavourable business conditions).

Crédit du Nord’s Central Risk Division regularly lists the

business sectors that it considers to represent a high

probability of default in the short term due to recent events

that may have caused lasting damage to the sector. A rate

of classification as doubtful loans is then applied to the total

outstanding in these sectors in order to determine the volume

of doubtful loans. Impairments are then booked for the overall

amount of these outstanding loans, using impairment ratios

which are determined according to the historical average

rates of doubtful customers, adjusted to take into account

an analysis of each sector by an independent expert on the

basis of the economic environment.

Z Securities portfolio

Securities are classified according to their type (Treasury notes

and assimilated, bonds and other fixed-income securities,

shares and other equity securities) and according to the

purpose for which they were required (trading, short-term

investment, investment, equity investments and subsidiaries,

other long-term investment securities, shares intended for

portfolio activity).



Sales and purchases of securities are recognised in the

balance sheet on the date of settlement-delivery.

In accordance with the provisions of amended CRB

Regulation No. 90-01 relating to the accounting treatment

of securities transactions, as amended by CRC Regulation

No. 2008-17, the rules for classifying and evaluating each

portfolio category are as follows:

Trading securities

Trading securities include all positions taken on liquid markets

with the intention of reselling the securities or of selling them to

customers in the short term. At the close of the fiscal year, the

securities are measured at their market value. The net balance

of differences resulting from price changes is recorded to

income.

Trading securities are recorded on the balance sheet at cost,

net of expenses.

Trading securities no longer held with the intention for reselling

them in the short term, no longer held for market-making

purposes, or for which the specialised portfolio management

strategy for which they are held no longer offers a recent

profit-taking profile in the short term, can be transferred to the

“Short-term Investment Securities” or “Investment Securities”

category if:

� an exceptional market situation requires a change in

holding strategy;

� or if the fixed-income securities can no longer be traded on

an active market following their acquisition, and if Crédit du

Nord intends and is able to hold them for the foreseeable

future or until their maturity.

Transferred securities are recorded in their new category at

their market value on the date of transfer.

Short-term investment securities

This category includes securities which are not included with

trading securities, investment securities, equity investments

and subsidiaries, other long-term investment securities or

shares intended for portfolio activity.

Short-term investment securities are recorded at cost, net

of expenses. Accrued interest at the time of purchase is

recorded as related receivables. The difference between the

value on the date of acquisition and the redemption value of

these securities is spread on a pro rata basis over the period

remaining to the date of redemption. This difference is spread

using the actuarial method.

At year-end, the value of the securities is estimated on the

basis of the most recent price in the case of listed securities,

or according to probable market value in the case of unlisted

securities.

Unrealised capital losses resulting from this valuation are

amortised, while capital gains are not recorded.

Short-term investment securities can be transferred to the

“Investment Securities” category if:

� an exceptional market situation requires a change in

holding strategy;

� or if the fixed-income securities can no longer be traded on

an active market following their acquisition, and if Crédit du

Nord intends and is able to hold them for the foreseeable

future or until their maturity.

Investment securities

Investment securities include fixed-income securities

purchased with the intention of holding them until maturity

and financed by earmarked permanent resources. The

difference between the value on the date of acquisition and

the redemption value of these securities is spread on a pro

rata basis over the period remaining to the date of redemption.

This difference is spread using the actuarial method.

At the close of the accounts, unrealised losses are determined

by a book-to-market value comparison but are not amortised.

Unrealised gains are not recorded.

Equity investments and subsidiaries

Equity investments and subsidiaries include the securities of

companies in which a significant fraction of capital (10-50%

for affiliates, over 50% for subsidiaries) is held over the long

term. These investments are recorded at cost, including

expenses.


basis of their useful value, derived mainly using the net asset

value method. Unrealised capital losses are amortised, while

potential capital gains are not recorded.

Other long-term investment securities

Long-term investment securities include investments made

by Crédit du Nord in order to foster the development of lasting

business relations by creating a special link with the issuing

company without exercising any influence on its management

due to the small percentage of voting rights attached to said

investments.




basis of their useful value, derived mainly using the net asset

value method. Unrealised capital losses are amortised, while

potential capital gains are not recorded.

Shares intended for portfolio activity

This category of securities covers investments made on a

regular basis with the sole aim of realising a capital gain in

the medium term and without making a long-term investment

in the development of the issuing company, or participating

actively in its operational management. This category notably

includes shares held for venture capital activities.

These securities are recorded at cost, net of any expenses.

At year-end, they are valued at their «useful value» which

is determined by taking into account the issuer’s general

growth prospects and the projected holding period. The

useful value of listed securities is determined by referring to

the stock market price over a sufficiently long period and by

taking into account the projected holding period. Unrealised

capital losses resulting from this valuation are amortised,

while unrealised capital gains are not recorded.

Securities lending and borrowing

Loaned securities are removed from the asset line item in

which they appeared and a receivable equal to the book

value of the loaned securities is recorded. At year-end, this

receivable is valued according to the rules applicable to the

original portfolio from which the securities were loaned.

Borrowed securities are recorded to assets in the appropriate

line item, while a debt of securities vis-à-vis the lender is

recorded to liabilities. At year-end, borrowed securities

appearing in assets follow the accounting rules applicable to

trading securities. Conversely, the debt recorded to liabilities

is valued at market. Compensation generated by securities

lending or borrowing is recorded on a pro rata basis to income.

Securities with repurchase or resale options

The amount of the repurchase agreement (the security

sales price) is recorded to assets (securities purchased)

or to liabilities (securities sold). Compensation relating to

repurchase agreements is recorded on a pro rata basis to

income.

Securities pledged remain as originally booked to assets and

are valued according to the rules applicable to the portfolio

to which they belong. Income relating to these securities is

also recorded as if the securities were still in the portfolio.

Symmetrically, securities purchased in this manner are not

included in the bank’s securities portfolio.

Income from the securities portfolio

Income from stocks, dividends and interim dividends is

recognised as it is received. Income from bonds is booked

to income on a prorata basis. Interest accrued at the time of

purchase is entered in a deferred income account.

Income from securities disposals

Capital gains and losses are calculated on the basis of the

gross value of securities sold and selling costs are deducted

from the proceeds of the disposal.

Z Tangible and intangible fixed assets

Fixed assets purchased before December 31, 1976 are

recorded on the balance sheet at their “useful value”,

estimated according to the rules of the “legal revaluation of

1976”, while fixed assets acquired after that date are entered

at cost.

Borrowing expenses incurred to fund a lengthy construction

period for the fixed assets are included in the acquisition cost,

along with other directly attributable expenses. Investment

subsidies received are deducted from the cost of the relevant

assets.

Software developed internally is capitalised and depreciated,

in the same way as business software, if it stems from an IT

project involving significant amounts declared as strategic

by Crédit du Nord, which expects it to yield future benefits.

In accordance with Note No. 31 issued in 1987 by the

CNC (French National Accounting Council), fixed costs

correspond solely to the costs related to the detailed design,

programming, testing of the software, and to the production

of the technical documentation.

As soon as they are fit for use, fixed assets are depreciated

over their useful life using the straight-line method. Any

residual value of the asset is deducted from its depreciable

amount.

Where one or several components of a fixed asset are used

for different purposes or to generate economic benefits over

a different time period from the asset considered as a whole,

these components are depreciated over their own useful life.

Crédit du Nord has applied this approach to its operating

purposes investment property, breaking down its assets into



at least the following components, with their corresponding

depreciation periods:

Infrastructures

Major structures 50 years

Doors and windows, roofing 20 years

Façades 30 years

Technical

installations

Elevators

10

to

30 years

Electrical installations

Electricity generators

Air conditioning, smoke

extraction

Heating

Security and surveillance

installations

Plumbing

Fire safety equipment

Fixtures & fittings Finishings, surroundings 10 years

Depreciation periods for other categories of fixed assets

depend on their useful life, usually estimated in the following

ranges:

Safety and publicity equipment 5 yrs

Transport 4 yrs

Furniture 10 yrs

IT and office equipment 3 to 5 yrs

Software (developed or acquired) 3 to 5 yrs

These depreciation periods are listed as an indication only

and may vary depending on the specific characteristics of

the fixed assets in question.

Land, lease rights and business premises are not depreciated.

Fixed assets are subject to impairment tests whenever there

is an indication that their value may have diminished. Where

an impairment loss is booked to the income statement, it can

be reversed if there is a change in the conditions that initially

led to it being recognised. The impairment loss reduces the

depreciable amount of the asset and thus also affects its

future depreciation schedule.

The useful life and the residual value of fixed assets are

reviewed annually. If data needs to be changed, the

depreciation schedule is modified accordingly.

Z Provisions

Provisions, excluding those related to employee benefits

and loans, represent liabilities, the timing or amount of which

cannot be precisely determined. Provisions are booked

where the Group has a commitment to a third party which

makes it probable or certain that it will never incur an outflow

of resources to this third party without receiving at least an

equivalent value in exchange. The estimated amount of the

expected outflow is then discounted to present value to

determine the size of the provision, where this discounting

has a significant impact.

Z Commitments under home savings

accounts

Home savings accounts and plans are savings schemes for

individual customers, in accordance with Law No. 65-554 of

July 10, 1965, which combine an initial deposit phase in the

form of an interest-earning savings account with a lending

phase where the deposits are used to provide property loans.

By regulation, this latter phase is subject to the previous

existence of the savings phase and is therefore inseparable

from it. The deposits collected and loans granted are booked

at amortised cost.

These schemes generate two types of commitments for Crédit

du Nord: the obligation to lend subsequently to the customer

at an interest rate set upon the signing of the agreement,

and the obligation to pay interest on the customer’s savings

in the future at an interest rate set upon the signing of the

agreement, for an indefinite period.

Commitments with future adverse effects for Crédit du Nord

are subject to provisions booked as balance-sheet liabilities,

any changes in which are recorded on the interest margin

line under “Net Banking Income”. These provisions relate

exclusively to commitments under home savings accounts

and schemes existing at the date of the provision’s calculation.

Provisions are calculated for each generation of home savings

schemes, on the one hand, with no netting between the

different generations of schemes, and for all home savings

accounts taken together, which constitutes a single all-

encompassing generation, on the other hand.

During the savings phase, provisions are calculated according

to the difference between average expected customer

savings deposits and minimum expected customer savings

deposits, both of which are determined statistically based on

historic observations of actual customer behaviour.

During the lending phase, provisions are calculated according

to loans already issued but not yet due at the balance sheet

date, as well as future loans considered as statistically

probable on the basis of customer savings deposits on

the balance sheet at the date of calculation and on historic

observations of actual customer behaviour.



A provision is booked if the discounted value of expected

future earnings for a given generation of home savings

products is negative. These earnings are estimated on

the basis of interest rates available to individual customers

for equivalent savings and loan instruments, with similar

estimated life and date of inception.

Z Transactions in forward financial

instruments or options

Interest rate swaps

This category covers all transactions relative to swaps, FRAs,

caps, floors, collars and interest rate options, accounted for

under amended CRB Regulation No. 90 15.

From origination, these contracts are classified in four

separate categories and recorded in distinct accounts. The

risks and income/expenses relative to each category are

subject to specific monitoring:

a) Contracts whose purpose is to maintain open positions in

order to benefit from any eventual interest rate movements.

All relative income and expenses are booked to the

income statement on a prorata basis. Unrealised losses,

determined by a book-to-market value comparison, are

provisioned. Unrealised gains are not recorded.

b) Contracts whose purpose is to hedge interest rate risk

affecting one specific item or a homogeneous set of

items (also called «microhedges»). All relative income

and expenses are booked to the income statement on a

prorata basis in the same manner as those relating to the

hedged item. The same applies to unrealised gains and

losses.

c) Contracts whose purpose is to hedge and manage

the institution’s global interest rate risk (also called

“macrohedges”). All relative income and expenses are

booked to the income statement on a prorata basis.

Unrealised gains and losses, determined by a book-to-

market value comparison, are not recognised.

d) Contracts whose purpose is to specifically manage a

trading portfolio. All relative income and expenses are

recorded to income symmetrically with income and

expenses relating to trades made in the opposite direction.

This symmetry is respected by valuing the contracts at

market value and by recording changes in value from one

closing date to the next.


This category covers futures, Matif contracts, and exchange-

traded interest-rate and forex options, which are booked in

accordance with amended CRB Regulation No. 88-02.

Margin calls paid or received on futures and Matif contracts of

a speculative nature, or on contracts used to hedge marked-

to-market positions, are recorded directly to income.

In the event these contracts are used to hedge non marked-

to-market items, margin calls are recorded in suspense

accounts in order to be distributed, after contracts are settled,

on a pro rata basis over the remaining life of the hedged

transactions.

Premiums paid or received are entered in suspense accounts.

Premiums on unexpired and unexercised exchange-traded

options are re-valued on the closing date. Revaluations are

treated in the same manner as margin calls.

At the time of expiration or exercise of the option, premiums

are either recorded immediately to income (speculative

options, hedge options on marked-to-market items), or

distributed on a pro rata basis over the residual life of the

hedged transactions (hedge options on non marked-to-

market items).

Z Foreign exchange transactions

At period-end, monetary assets and liabilities denominated in

foreign currencies are converted into euros at the prevailing

spot rate. Realised or unrealised foreign exchange losses or

gains are recognised in profit or loss.

Foreign exchange contracts are valued at the spot rate on

the balance sheet date. Forward contracts are valued using

the forward exchange rate for the remaining maturity, and

variations in fair value are recorded on the income statement.

Z Guarantees given and received

Guarantees given at the request of customers or banks

are recorded as off-balance sheet items in the amount of

the commitment. For guarantees received, only those from



lending institutions, States, government administrations and

local authorities are recorded.

Off-balance sheet guarantees and endorsements correspond

to irrevocable cash loan commitments and guarantee

commitments which did not give rise to any fund movements.

Where necessary, these financing guarantees and

commitments are subject to provisions.

Z Employee benefits

Crédit du Nord has elected to apply CNC Recommendation

2003 R01, relative to the rules for booking and evaluating

pension commitments and other related benefits.

Pension commitments and benefits

Commitments under statutory pension systems are covered

by the contributions paid to independent pension funds which

then manage all payments of retirement benefits.

All commitments under defined benefit plans are valued using

an actuarial method.

Said plans cover several types of benefits, notably any residual

complementary benefits afforded by specialist pension

funds. Following the Branche agreement of February 25,

2005, which provided for the amendment of the provisions

relating to complementary benefits, and in light of the negative

balance of its pension fund, Crédit du Nord signed an internal

agreement in 2006 setting forth the following provisions:

� for beneficiaries of complementary benefits still employed

with Crédit du Nord, the value of the complementary

benefits was transferred to a supplementary savings plan

outsourced to an insurer;

� retirees and beneficiaries of a survivor’s pension were given

a choice of opting for a single lump-sum payment of their

complementary benefits.

Any residual complementary benefits are therefore linked to

retirees and beneficiaries of a survivor’s pension who did not

opt for a single lump-sum payment of their complementary

benefits, on the one hand, and to beneficiaries no longer

employed with Crédit du Nord, on the other hands.

In the case of Crédit du Nord, valuations are performed by an

independent actuary once a year, with the valuation made on

December 31 calculated on the basis of data as at August 31.

These commitments and the coverage thereof as well as the

main underlying assumptions therein are outlined in the notes

to the financial statements.

Employee benefits also include end-of-career benefits,

complementary retirement plans and post-employment

medical care and life insurance. These commitments and the

coverage thereof as well as the main underlying assumptions

therein are outlined in the notes to the financial statements.

Commitment valuations are performed by an independent

actuary using the projected credit units method, twice a year,

with the valuation of December 31 calculated on the basis of

data as at August 31.

In accordance with Note 2004/A dated January 21, 2004 of

the Emergency Committee of the CNC, the Group uses the

straight-line method over the average residual working lives

of employee beneficiaries to account for the amendments

linked to Law No. 2003-775 of August 21, 2003 governing

pension reforms.

«Actuarial differences» reflect the difference between actuarial

hypothesis and actual figures as well as the impact of any

change in actuarial hypothesis. In the specific case of pension

benefits, these differences are only booked in part on the

income statement where they exceed 10% of the discounted

value of the commitment (referred to as the «corridor»

method). The proportion of said booked differences is equal

to the surplus defined above divided by the average residual

working lives of the beneficiaries. If a plan has plan assets,

these are valued at fair value at the balance sheet date.

Z Other long-term benefits

Crédit du Nord’s personnel can also benefit from time savings

accounts as well as from various seniority bonuses. These

benefits are calculated according to the same actuarial

method described above and are provisioned in full, as are any

actuarial differences. These commitments and the coverage

thereof as well as the main underlying assumptions therein are

outlined in the notes to the financial statements. Commitment

valuations are performed by an independent actuary once

a year. For commitments excluding time savings accounts,

the valuation made on December 31 was calculated on the

basis of data as at August 31. For commitments linked to time

savings accounts, the valuation made on December 31 was

calculated on the basis of data as at December 31

Interest and fee income

Interest and similar fee income are recorded on the income

statement on a prorata basis.

Fees are booked according to the type of services to which

they relate.

Fees for one-off services are booked to income when the

service is provided.

Fees for continuous services are booked over the life of the

service rendered.



Commissions that are part of the effective return of a financial

instrument are accounted for as an adjustment to the effective

return of the financial instrument.

Z Taxes

All taxes (excluding income tax) whose assessment refers to

items for the fiscal year in question are recorded as expenses

for said year, whether or not the tax was actually paid during

the course of the fiscal year.

Current income tax

Current income tax for the fiscal year includes dividend

tax credits and tax credits actually used for tax settlement

purposes. Said tax credits are booked under the same line

item as the income to which they relate.

In France, standard corporate income tax is 33.33%.

In addition, a social security contribution of 3.3% (after

deduction from taxable income of EUR 0.763 million), was

introduced in 2000. Since January 1, 2007, long-term capital

gains on equity investments have been taxed at 15%, while

capital gains on other equity investments are tax-exempt,

subject to a share for fees and expenses of 5% of net income

on capital gains during the fiscal year. In addition, under the

regime of parent companies and subsidiaries, dividends

received from companies in which the equity investment is

at least 5% are tax-exempt (with the exception of a share for

fees and expenses equivalent to 5% of the dividends paid).

Tax credit arising in respect of revenues from receivables

and security portfolios, when they are effectively used for the

settlement of corporate tax due for the fiscal year, are booked

under the same line item as the revenues to which they relate.

The corresponding income tax expense is kept in the income

statement under «Income Tax”.

Since January 1, 2006, the annual flat-rate corporate tax (IFA

or imposition forfaitaire annuelle) has been deducted from

taxable income and recorded under “Taxes” in accordance

with Note No. 2006-05 of the CNC.

Deferred taxes

Deferred taxes are recognised whenever there is a difference

between the carrying amount of assets and liabilities in the

balance sheet and their respective tax base, which will have

an impact on future tax payments.

Deferred taxes are calculated based on a tax rate which has

been voted or almost voted and should be in effect at the

time when the temporary difference will reverse. If there is a

change in the tax rate, the corresponding effect is booked

under “Income Tax” on the income statement.

Crédit du Nord recognises deferred tax assets for deductible

temporary differences, tax loss carry-forwards and deferred

depreciation liable to be deducted from future taxable income.

These deferred taxes are calculated according to the liability

method by applying the expected effective tax rate (including

temporary increases) for the period in which the tax asset is

to be applied to income. Since fiscal year 2000, Crédit du

Nord has opted to apply the Group’s tax regime to those of

its subsidiaries in which it holds a direct or indirect ownership

interest of at least 95%. The convention adopted is that of

neutrality.



� Note 2Due from banks

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Demand and overnight accounts 2,502.5 2,530.2 -27.7 -1.1


Total demand receivables 2,502.7 2,531.2 -28.5 -1.1

Term accounts 2,423.9 2,556.7 -132.8 -5.2

Loans secured by notes and securities - 1,710.8 -1,710.8 -100.0

Subordinated loans 90.9 89.1 1.8 2.0


Doubtful loans (gross) - 0.5 -0.5 -100.0

Doubtful loans (impairment) - -0.5 0.5 -100.0

Non-performing loans (gross) 0.5 - 0.5 -

Non-performing loans (impairment) -0.5 - -0.5 -

Total term receivables 2,531.7 4,408.0 -1,876.3 -42.6

TOTAL 5,034.4 6,939.2 -1,904.8 -27.4

The schedule of term receivables due from banks (excluding related receivables) at December 31, 2009 was as follows:

Maturity < 3 months 3 months to 1 yr 1 to 5 yrs > 5 yrs Total

Term accounts 435.8 450.3 1,202.2 335.6 2,423.9

Subordinated loans 0.2 19.6 67.9 3.2 90.9

TOTAL 436.0 469.9 1,270.1 338.8 2,514.8

Of the total amount due from banks, the following were intra-Group transactions

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Transactions with Crédit du Nord Group 2,181.6 2,059.9 121.7 5.9

Transactions with Société Générale Group 1,194.5 1,804.6 -610.1 -33.8

TOTAL 3,376.1 3,864.5 -488.4 -12.6



� Note 3Transactions with customers

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Commercial loans 337.5 380.8 -43.3 -11.4


Total performing commercial loans 337.8 381.0 -43.2 -11.3

Short-term loans 1,244.2 1,381.9 -137.7 -10.0

Capital expenditure loans 2,988.6 3,022.8 -34.2 -1.1

Housing loans 7,444.8 7,078.5 366.3 5.2

Other loans 1,201.0 1,164.0 37.0 3.2

Subordinated loans and participating securities 2.0 2.5 -0.5 -20.0

Loans secured by notes and securities 60.4 274.8 -214.4 -78.0

Non-attributed stock 31.9 77.9 -46.0 -59.1


Total other performing customer loans 13,006.8 13,046.6 -39.8 -0.3

Overdrafts 708.8 1,058.2 -349.4 -33.0


Total performing overdrafts 721.7 1,080.3 -358.6 -33.2

SUB-TOTAL PERFORMING LOANS 14,066.3 14,507.9 -441.6 -3.0

Doubtful loans (gross) 369.3 358.7 10.6 3.0

Doubtful loans (impairment) -76.8 -76.5 -0.3 0.4

Non-performing loans (gross) 488.3 375.4 112.9 30.1

Non-performing loans (impairment) -364.6 -288.3 -76.3 26.5

SUB-TOTAL DOUBTFUL LOANS 416.2 369.3 46.9 12.7

TOTAL 14,482.5 14,877.2 -394.7 -2.7

Impairment rate for doubtful loans: 51.5,% 49.7,%

- o/w non-performing loans: 74.7,% 76.8,%

- o/w other loans: 20.8,% 21.3,%

Term receivables due from customers (excluding related receivables and non-allocated stock) at December 31, 2009 can be

broken down as follows:


Commercial loans 335.9 1.6 - - 337.5

Other customer loans 745.7 1,407.3 5,189.4 5,536.2 12,878.6

Subordinated loans and participating securities 0.1 0.4 1.5 - 2.0

Loans secured by notes and securities 60.4 - - - 60.4

TOTAL 1,142.1 1,409.3 5,190.9 5,536.2 13,278.5



� Note 4Securities portfolio

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Trading securities 1.7 40.2 -38.5 -95.8

Short-term investment securities 5,780.2 6,654.3 -874.1 -13.1

Investment securities 77.1 57.1 20.0 35.0

TOTAL 5,859.0 6,751.6 -892.6 -13.2

Z Breakdown by portfolio

31/12/2009 31/12/2008

Listed Unlisted Total Listed Unlisted Total

Trading securities

Treasury notes and assimilated - - - - - -

Bonds and other fixed-income securities - 1.7 1.7 - 40.2 40.2

Shares and other equity securities - - - - - -

SUB-TOTAL (1) - 1.7 1.7 - 40.2 40.2

Short-term investment securities

Treasury notes and assimilated 1,438.1 - 1,438.1 221.1 - 221.1

Bonds and other fixed-income securities 87.6 4,281.8 4,369.4 94.4 6,361.1 6,455.5

Shares and other equity securities 0.1 4.8 4.9 0.1 4.9 5.0

Write-downs -24.3 -18.1 -42.4 -35.1 -37.5 -72.6

SUB-TOTAL (2) 1,501.5 4,268.5 5,770.0 280.5 6,328.5 6,609.0

Investment securities

Treasury notes and assimilated - - - - - -

Bonds and other fixed-income securities 41.8 35.8 77.6 41.5 16.7 58.2

Shares and other equity securities - - - - - -

Write-downs - -0.6 -0.6 -0.1 -1.2 -1.3

SUB-TOTAL (3) 41.8 35.2 77.0 41.4 15.5 56.9

TOTAL (1)+(2)+(3) 1,543.3 4,305.4 5,848.7 321.9 6,384.2 6,706.1

Related receivables (4) 10.3 45.5

TOTAL (1)+(2)+(3)+(4) 5,859.0 6,751.6

o/w:

Treasury notes and assimilated 1,441.5 221.1

Bonds and other fixed-income securities 4,416.3 6,529.6

Shares and other equity securities 1.2 0.9



Z Additional information on securities:

Short-term investment portfolio

31/12/2009 31/12/2008

Estimated value of short-term investment securities

Unrealised capital gains 9,1 4,1

• Unrealised capital gains on shares and other equity securities 3,1 2,4

• Unrealised capital gains on bonds and other fixed-income securities 6,0 1,7

Shares of UCITS held - -

Subordinated notes 81,8 88,4

Premiums and discounts relating to short-term investment securities 3,9 4,5

Investment portfolio

The investment portfolio is wholly comprised of OBSAARs (bonds with redeemable and/or acquisition warrants).

Three new transactions were booked to the investment portfolio for EUR 18.9 million (excluding related receivables).

The schedule (excluding related receivables) for fixed-income investment securities (treasury notes and bonds) is as follows:


Treasury notes and assimilated 640.6 797.5 - - 1,438.1

Bonds and other fixed-income securities 2,082.0 73.8 227.1 1,986.5 4,369.4

TOTAL 2,722.6 871.3 227.1 1,986.5 5,807.5

� Note 5Equity investments and subsidiaries

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Equity investments and other long-term investment securities 93.2 96.0 -2.8 -2.9

Shares in affiliates 806.6 725.2 81.4 11.2

TOTAL 899.8 821.2 78.6 9.6



The equity investments and subsidiaries portfolio evolved as follows over fiscal year 2009:

(in EUR millions)

Short-term

investment securities

Other long-term

investment securities

Real estate

investment companies Total

Gross book value

Amount at December 31, 2008 756.2 65.4 0.3 821.9

Investments 107.7 0.4 - 108.1

Disposals -28.8 -0.2 - -29.0

Other changes -0.2 -0.2 - -0.4

Amount at December 31, 2009 834.9 65.4 0.3 900.6

Write-downs

Amount at December 31, 2008 0.7 - - 0.7

Allocations to provisions 0.1 - - 0.1

Reversals - - - -

Other changes - - - -

Amount at 31 December 2009 0.8 - - 0.8

NET VALUE AT DECEMBER 31, 2009 834.1 65.4 0.3 899.8

The changes in the equity investment portfolio can be primarily

attributed to three transactions.

Within the framework of the Amundi deal (contribution of

Société Générale’s Group’s asset management business to

Crédit Agricole Asset Management), on 31 December 2009

Crédit du Nord contributed all of its Etoile Gestion shares

(net book value EUR 19.8 million) to Etoile Gestion Holding.

In exchange for this contribution, Crédit du Nord received

shares in Etoile Gestion Holding totalling EUR 107.6 million.

The same day, Etoile Gestion Holding contributed these newly

held shares to Amundi.

Furthermore, two disposals took place in 2009: sale of all

Dexia-C.L.F Banque shares (EUR 1.5 million) and partial sale

of the Visa Incorporation shares (EUR 1.0 million).

� Note 6Fixed assets

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Operating fixed assets

Land and buildings 94.2 87.1 7.1 8.2

Other tangible fixed assets 100.4 105.5 -5.1 -4.8

Developed intangible fixed assets 93.2 90.2 3.0 3.3

Other tangible fixed assets 30.0 29.8 0.2 0.7

Net value of operating fixed assets 317.8 312.6 5.2 1.7

Fixed assets (excluding operating fixed assets)

Land and buildings 0.7 0.8 -0.1 -12.5

Other tangible fixed assets 1.2 1.4 -0.2 -14.3

Net value of fixed assets (excluding operating fixed assets) 1.9 2.2 -0.3 -13.6

FIXED ASSETS 319.7 314.8 4.9 1.6



(in EUR millions)

Tangible operating fixed assets Tangible fixed

assets (excl. op.

fixed assets) (1)

Intangible fixed assets

TotalLand & Buildings Others Developed Acquired

Gross book value

Amount at December 31, 2008 123.0 385.9 7.0 176.9 94.6 787.4

Inflows 3.6 27.8 - 28.4 5.3 65.1

Outflows - -2.5 -0.1 - - -2.6

Other changes 6.8 -15.9 - -0.1 -0.9 -10.1


Depreciation and amortisation


Allocations during fiscal year 2009 (see

Note 24) 3.2 25.6 0.3 25.4 5.0 59.5

Depreciation relating to asset disposals - -2.5 -0.1 -0.1 - -2.7

Other changes 0.1 -8.6 - - -0.8 -9.3


NET VALUE AT DECEMBER 31, 2009 94.2 100.4 1.9 93.2 30.0 319.7

(1) Allocations to depreciation of fixed assets (excluding operating fixed assets) are included in Net Banking Income

IT investments totalled EUR 33.7 million in 2009, down 22.0%

on 2008, and accounted for 51.8% of total investments in

2009. On the whole, EUR 28.4 million in development

expenses for certain major IT software projects were

capitalised in 2009, vs. EUR 29.2 million in 2008, of which

EUR 21.8 million from “Other expenses” (see Note 24) and

EUR 6.6 million from “Personnel expenses” (see Note 23).

� Note 7Accruals and other accounts receivable

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Other assets 247.9 398.8 -150.9 -37.8

Sundry debtors 195.9 351.9 -156.0 -44.3

Premiums on derivatives purchased 20.4 15.8 4.6 29.1

Others 31.6 31.1 0.5 1.6

Accruals and other accounts receivable 389.9 596.5 -206.6 -34.6

Securities received for deposit 19.4 8.1 11.3 139.5

Deferred taxes 39.9 54.6 -14.7 -26.9

Income to be received 212.3 415.9 -203.6 -49.0

Prepaid expenses 32.1 49.8 -17.7 -35.5

Others 86.2 68.1 18.1 26.6

TOTAL 637.8 995.3 -357.5 -35.9



� Note 8Depreciation and amortisation

Depreciation and amortisation deducted from assets can be broken down as follows:

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Impairment of loans to banks 0.5 0.5 - -

Impairment of customer loans 441.4 364.8 76.6 21.0

Write-downs on short-term investment securities 42.4 72.6 -30.2 -41.6

Write-downs on investment securities 0.6 1.3 -0.7 -53.8

Write-downs on equity investments and other long-term

investment securities 0.8 0.7 0.1 14.3

TOTAL 485.7 439.9 45.8 10.4

Changes in depreciation and amortisation

(in EUR millions)

Stock

31/12/2008

Allocations to

provisions

Write-backs

and uses

Other

changes

Stock

31/12/2009

Impairment of loans to banks 0.5 0.5 -0.5 - 0.5

Impairment of customer loans 364.8 184.6 -108.0 - 441.4

Write-downs on short-term investment securities 72.6 9.2 -39.2 -0.2 42.4

Write-downs on investment securities 1.3 - -0.7 - 0.6

Write-downs on equity investments and other long-term

investment securities 0.7 0.1 - - 0.8

TOTAL 439.9 194.4 -148.4 -0.2 485.7

Changes in depreciation and amortisation impacting Net Banking Income (Note 19): 5.8 -39.2

Changes in depreciation and amortisation impacting “Cost of risk” (Note 25): 188.5 -108.5

Changes in depreciation and amortisation impacting income from

short-term investment securities (Notes 5 and 26): 0.1 -0.7



� Note 9Due to banks

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Demand and overnight accounts 743.4 909.5 -166.1 -18.3


Total demand borrowings 743.5 910.5 -167.0 -18.3

Term accounts 3,362.6 3,600.4 -237.8 -6.6


Total term borrowings 3,378.9 3,622.1 -243.2 -6.7

TOTAL 4,122.4 4,532.6 -410.2 -9.0

The schedule of term borrowings from banks (excluding related payables) can be broken down as follows at December 31, 2009:

Maturity < 3 months 3 months to 1 yr 1 yr to 5 yrs > 5 yrs Total

Term accounts 154.6 1,039.0 1,990.6 178.4 3,362.6

TOTAL 154.6 1,039.0 1,990.6 178.4 3,362.6

Of the total amount due to banks, the following were intra-Group transactions:

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Transactions with Crédit du Nord Group 594.8 543.8 51.0 9.4

Transactions with Société Générale Group 1,785.8 988.6 797.2 80.6

TOTAL 2,380.6 1,532.4 848.2 55.4



� Note 10Transactions with customers

(in EUR millions)

31/12/2009

31/12/2008

2009/2008 change

in value in %

Demand special savings accounts 3,223.0 2,628.6 594.4 22.6

Term special savings accounts 1,049.7 1,058.0 -8.3 -0.8

Demand and overnight accounts

Companies and individual entrepreneurs 4,013.8 4,002.2 11.6 0.3


Financial customers 29.2 23.9 5.3 22.2

Others 332.2 318.4 13.8 4.3

SUB-TOTAL 7,010.5 6,812.9 197.6 2.9

Term accounts

Companies and individual entrepreneurs 135.7 489.7 -354.0 -72.3

Individual customers 64.1 516.1 -452.0 -87.6

Financial customers - 0.9 -0.9 -100.0

Others 19.5 21.5 -2.0 -9.3

SUB-TOTAL 219.3 1,028.2 -808.9 -78.7

Borrowings secured by notes and securities - 150.0 -150.0 -100.0

Securities sold under repurchase agreements overnight 71.8 261.0 -189.2 -72.5

Securities sold under term repurchase agreements 535.2 1,428.4 -893.2 -62.5

Guarantee deposits 0.5 0.4 0.1 25.0


TOTAL 12,158.5 13,450.2 -1,291.7 -9.6

The schedule of term special savings accounts, term accounts and securities sold under term repurchase agreements can be

broken down as follows:


Term special savings accounts 950,1 18,5 80,9 0,2 1,049,7

Term accounts 123,0 80,0 16,3 - 219,3

Securities sold under term repurchase agreements 535,2 - - - 535,2

TOTAL 1,608,3 98,5 97,2 0,2 1,804,2

Assets under custody for customers stood at EUR 20.2 billion, of which UCITS accounted for 48.9%.



� Note 11Home savings accounts and plans

A. Outstanding deposits in PEL/CEL accounts

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

PEL accounts


Four to 10 years old 416.2 417.7 -1.5 -0.4


SUB-TOTAL 890.4 922.4 -32.0 -3.5

CEL accounts 167.2 177.1 -9.9 -5.6

TOTAL 1,057.6 1,099.5 -41.9 -3.8

B. Outstanding housing loans granted with respect to PEL/CEL accounts

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Less than 4 years old 2.5 11.1 -8.6 -77.5

4 to 10 years old 7.8 15.8 -8.0 -50.6

More than 10 years old 24.1 5.1 19.0 -

TOTAL 34.4 32.0 2.4 7.5

C. Provisions for commitments linked to PEL/CEL accounts (1)

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

PEL accounts

Less than 4 years old - 2,3 -2,3 -100,0

4 to 10 years old 1.4 - 1.4 -

More than 10 years old 3.8 - 3.8 -

SUB-TOTAL 5.2 2.3 2.9 126.1

CEL accounts 0.1 3.2 -3.1 -96.9

Drawn down loans 0.9 1.0 -0.1 -10.0

TOTAL 6.2 6.5 -0.3 -4.6

(1) These provisions are booked as Allowances for general risk and commitments (see Note 14).

D. Methods used to establish the parameters for valuing provisions

The parameters used for estimating the future behaviour

of customers are derived from historical observations of

customer behaviour patterns over periods of between 10 and

15 years. The value of these parameters can be adjusted if

any changes are subsequently made to regulations that might

undermine the effectiveness of past data as an indicator of

future customer behaviour.

The values of the different market parameters used, notably

interest rates and margins, are calculated on the basis of

observable data and constitute a best estimate, at the date of

valuation, of the future value of these elements for the period

concerned, in line with the retail banking division’s policy of

interest rate risk management.

The discount rates used are derived from the zero coupon

swaps vs. Euribor yield curve at the date of valuation,

averaged over a 12-month period.



� Note 12Debt securities

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Savings certificates 10.0 12.1 -2.1 -17.4

Money market and negotiable debt securities 7,714.4 8,933.7 -1,219.3 -13.6

Bonds 305.0 555.0 -250.0 -45.0


TOTAL 8,061.8 9,629.2 -1,567.4 -16.3

The schedule for debt securities (excluding related payables) was as follows at December 31, 2009:


Savings certificates 6.6 1.4 2.0 - 10.0

Money market and negotiable debt securities 4,224.5 744.1 1,540.8 1,205.0 7,714.4

Bonds - 155.0 150.0 - 305.0

TOTAL 4,231.1 900.5 1,692.8 1,205.0 8,029.4

� Note 13Accruals and other accounts payable

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Other accounts payable 383,0 395,7 -12,7 -3,2

Sundry creditors 234,2 237,9 -3,7 -1,6

Payments remaining on non paid-up securities (1) 136,6 145,0 -8,4 -5,8

Premiums on derivatives sold 12,1 12,6 -0,5 -4,0

Others 0,1 0,2 -0,1 -50,0

Accruals 813,1 858,4 -45,3 -5,3

Unavailable accounts in collection accounts 232,7 252,3 -19,6 -7,8

Deferred taxes 205,6 168,5 37,1 22,0

Expenses payable 282,3 394,2 -111,9 -28,4

Deferred income 51,3 39,0 12,3 31,5

Others 41,2 4,4 36,8 -

TOTAL 1 196,1 1 254,1 -58,0 -4,6

(1) Of which, at December 31, 2009: Antarius (EUR 45.0m) - Hedin (EUR 28.1m) - Verthema (EUR 21.5m) - Nordenskiöld (EUR 28.7m) - Legazpi (EUR 11.0m)



� Note 14Provisions

The changes in provisions over fiscal year 2009 can be broken down as follows:

(in EUR millions)

Stock at

31/12/2008

Allocations to

provisions

Reversals

and use

Other

Changes

Stock at

31/12/2009

Provisions for post-employment benefits 56.2 9.4 -21.5 - 44.1

Provisions for long-term benefits 18.4 6.8 -4.2 - 21.0

Provisions for other employee benefits 1.4 0.7 -0.5 - 1.6

Provisions for property risks 0.4 - - - 0.4

Provisions for disputes with customers 7.3 1.1 -0.7 0.2 7.9

Impairment due to sector credit risk 19.4 0.5 - - 19.9

Provisions for off-balance sheet commitments 11.9 15.7 -3.6 - 24.0

Provisions for PEL/CEL commitments 6.5 - -0.3 - 6.2

Other provisions 7.5 0.1 -1.6 - 6.0

TOTAL 129.0 34.3 -32.4 0.2 131.1

Changes in provisions impacting “Net Banking Income” (Note 19): - -1.0

Changes in provisions impacting “Operating expenses” (Note 23): 16.9 -26.2

Changes in provisions impacting “Cost of risk” (Note 25): 17.4 -5.2

Provisions for property risks cover termination loss relative

to property programmes in which Crédit du Nord is invested.

Impairment due to sector credit risk, which is not made on

an individual loan basis, covers several classes of unrealised

risk, including regional sector risk (global risk in sectors of

the regional economy undermined by specific unfavourable

business conditions).

� Note 15Subordinated debt

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Subordinated notes and borrowings 627,5 673,2 -45,7 -6,8

Interest payable 9,7 10,5 -0,8 -7,6

TOTAL 637,2 683,7 -46,5 -6,8

No new redeemable subordinated notes were issued in 2009.



Z Details of redeemable subordinated notes issued by Crédit du Nord

Issuance in June 1998 of a total 300 million French francs

with the following characteristics:

Size: 300 million French francs

(EUR 45.73 million)

Principal: 5,000 FF (EUR 762.25)

Number of notes: 60,000

Issue price: 100.87 %

Maturity: 12 yrs

Coupon: 5.40% of principal

Redeemable at par on: June 5, 2010

Issuance in October 1998 of a total 300 million French francs


Size: 300 million French francs

(EUR 45.73 million)

Principal: 5,000 FF (EUR 762.25)


Issue price: 100.18% of principal

Maturity: 12 yrs


Redeemable at par on: October 12, 2010

Issuance in June 1999 of a total EUR 40 million


Size: EUR 40 million

Principal: EUR 1,000


Issue price: 100% of principal

Maturity: 12 yrs



Issuance in October 1999 of a total EUR 30 million






Maturity: 12 yrs



Issuance in May 2000 of a total EUR 40 million






Maturity: 10 yrs


Redeemable at par on: May 5, 2010

Issuance in November 2000 of a total EUR 20 million






Maturity: 10 yrs


Redeemable at par on: November 3, 2010

Issuance in May 2001 of a total EUR 40 million






Maturity: 10 yrs


Redeemable at par on: May 23, 2011







Maturity 10 yrs





Issuance in June 2004 of a total EUR 50 million



Principal: EUR 300



Maturity: 12 yrs



Issuance in July 2005 of a total EUR 100 million






Maturity: 10 years and 25 days

Coupon: Principal x ((1 + CNO-TEC

10 - 0.48%)^1/4 - 1)

Redeemable at par on: July 25, 2015

Issuance in October 2006 of a total EUR 100 million






Maturity: 10 yrs





Principal: EUR 66 million

Number of notes: EUR 300

Issue price: 220,000

Maturity: 100.01% of principal

Coupon: 12 yrs

Redeemable at par on: 4.15% of principal


For all redeemable subordinated notes, Crédit du Nord

has placed a self-imposed ban on the early amortisation of

subordinated notes via redemption, but reserves the right

to carry out early amortisation via stock market purchases

and the public offer of exchange or purchase of redeemable

subordinated notes.

The unamortised credit balance of the issuance premiums of

these borrowings stands at EUR 11,700.

� Note 16Shareholders’ equity

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Common stock 740.3 740.3 - -

Additional paid-in capital and reserves 639.3 601.6 37.7 6.3

Additional paid-in capital 10.4 10.4 - -

Legal reserve 74.0 74.0 - -

Ordinary reserve 554.0 516.0 38.0 7.4

Regulated reserve 0.9 1.2 -0.3 -25.0

Retained earnings 0.9 0.2 0.7 -

Net income 331.4 168.2 163.2 97.0

Regulated provisions 0.8 0.9 -0.1 -11.1

TOTAL SHAREHOLDERS’ EQUITY 1,712.7 1,511.2 201.5 13.3



The change in shareholders’ equity can be broken down as follows:

(in EUR millions) Common stock

Other

shareholders’equity Total

Shareholders’ equity at Dec. 31, 2008 740,3 770,9 1 511,2

3rd Resolution of the General Meeting of Shareholders of May 13,2009 (1) -129,5 -129,5

Net income 331,4 331,4

Reversals of provisions and regulated reserves in accordance

with legal provisions in force -0,4 -0,4

SHAREHOLDERS’ EQUITY AT DEC. 31, 2009 740,3 972,4 1 712,7

(1) Distribution of a dividend of EUR 129.5 million to shareholders.

Société Générale owned 100% of Crédit du Nord’s capital at

December 31, 2009. As a result, Crédit du Nord’s accounts

are fully consolidated in Société Générale’s consolidated

accounts.

Z Proposed distribution of earnings

Net income for fiscal year 2008 amounted to EUR

331,356,413.03.

Given that the legal reserve has been fully allocated, and

that net income plus retained earnings from fiscal year 2008

(i.e. EUR 872,371.84) resulted in total income available for

distribution of EUR 332,228,784.87, the following proposals

will be submitted to the General Meeting:

� distribution of a dividend of EUR 323,865,171.00 to

shareholders, i.e. a dividend per share of EUR 3.50;

� allocation of EUR 8,000,000.00 to the ordinary reserve;

� allocation of EUR 363,613.87 to retained earnings.

� Note 17Off-balance sheet commitments

A. Financing commitments given and received

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Financing commitments to banks 228.0 127.6 100.4 78.7

Financing commitments to customers 2,100.2 2,148.6 -48.4 -2.3

Guarantee commitments to banks 239.1 346.0 -106.9 -30.9

Guarantee commitments to customers 3,236.9 3,350.1 -113.2 -3.4

Financing commitments from banks 1,340.2 - 1,340.2 -

Guarantee commitments from banks 5,243.1 4,671.5 571.6 12.2

Guarantee commitments from customers 98.6 70.0 28.6 40.9

(1) Since 2009, a financing commitment received from the Banque de France was recorded for the amount it accepted for assets used as collateral.



C. Forward financial instruments

(in EUR millions) Trading Speculative

Macro

hedging

Micro

hedging

Total

31/12/2009

Total

31/12/2008

Contract category under CRB

Regulation 90/15 D A C B

Firm transactions

On organised markets

Futures - - - - - -

OTC

Interest rate swaps - 2,256.0 18,829.5 2,177.9 23,263.4 26,082.5

FRAs - - - - - -

Options


Interest rate options - - - - - -

Foreign exchange options - - - - - -

OTC


Foreign exchange options - - - 226.1 226.1 167.4

Other options - - - - - -

Caps - 1,335.0 2,195.3 - 3,530.3 3,774.8

Floors - 295.7 - 224.5 520.2 208.8

TOTAL - 3,886.7 21,024.8 2,628.5 27,540.0 30,233.5

At end-2009, of all off-balance sheet commitments,

commitments with the Group totalled EUR 24,304.5 million

(of which EUR 17,756.3 million with Société Générale Group

and EUR 6,548.2 million with Crédit du Nord Group). Note

that, under current regulations, transactions processed

on behalf of and on the order of customers are classified

in Category A (speculative), even if any hedging of them is

classified in Category C (macrohedging). Also note that Crédit

du Nord does not manage trading portfolios.

B. Securities transactions and foreign exchange transactions

(in EUR millions) 31/12/2009 31/12/2008

2009/2008 change

in value in %

Securities transactions

Securities to be received 1.3 50.6 -49.3 -97.4

Securities to deliver 1.3 51.0 -49.7 -97.5

Securities acquired with option to repurchase or recover - - - -

Forward exchange transactions

Currency to be received 4,115.9 5,694.3 -1,578.4 -27.7

Currency to deliver 4,113.2 5,671.1 -1,557.9 -27.5



Finally, in accordance with CRC Regulation 2004-16, the fair value of financial derivatives is indicated in the table below:

Defined contribution plans limit Crédit du Nord’s liability to the

contributions paid to the plan but do not commit the Group

to a specific level of future benefits.

The main defined contribution plans provided to Crédit du

Nord employees notably include State pension plans and

other national retirement plans such as ARRCO and AGIRC,

pension schemes for which the only commitment is to pay

annual contributions (PERCO) and multi-employer plans.

Expenses relating to these plans totalled EUR 35.9 million

at December 31, 2009 vs. EUR 35.4 million at December

31, 2008.

� Note 18Post-employment defined contribution plans

A. Post-employment defined contributions plans

(in EUR millions) Trading Speculative

Macro

hedging

Micro

hedging

Total

31/12/2009

Total

31/12/2008

Contract category under CRB Regulation

90/15 D A C B

Firm transactions


Futures - - - - - -

OTC

Interest rate swaps - -3.0 -116.7 132.6 12.9 8.6

FRAs - - - - - -

Options



Foreign exchange options - - - - - -

OTC


Foreign exchange options - - - -0.1 -0.1 -0.1

Other options - - - - - -

Caps - -1.4 10.5 - 9.1 0.5

Floors - 1.9 - 1.6 3.5 3.6

TOTAL - -2.5 -106.2 134.1 25.4 12.6



B. Post-employment benefit plans (defined benefit plans) and other long-term benefits

B1. Reconciliation of assets and liabilities recorded in the balance sheet

(in EUR millions)

31/12/2009 31/12/2008


long-term



long-term


Pension

plans Others

Pension

plans Others

Breakdown of provisions recorded in the

balance sheet 29.4 14.7 21.0 65.1 41.8 14.4 18.4 74.6

Breakdown of assets recorded in the

balance sheet - - - - - - - -

Net provisions 29.4 14.7 21.0 65.1 41.8 14.4 18.4 74.6

BREAKDOWN OF THE DEFICIT

IN THE PLAN

Present value of defined benefit

obligations 82.5 - - 82.5 89.4 - - 89.4

Fair value of plan assets -50.0 - - -50.0 -43.6 - - -43.6

BALANCE OF PLAN ASSETS (A) 32.5 - - 32.5 45.8 - - 45.8

PRESENT VALUE OF UNFUNDED

OBLIGATIONS (B) 17.4 14.6 21.0 53.0 17.8 12.5 18.4 48.7

Unrecognised items

Unrecognised Past Service Cost 1.1 - - 1.1 1.2 - - 1.2

Unrecognised net actuarial gain / loss 19.4 -0.1 - 19.3 20.6 -1.9 - 18.7

Separate assets - - - - - - - -

Plan assets impacted by change

in Asset Ceiling - - - - - - - -

TOTAL UNRECOGNISED ITEMS (C) 20.5 -0.1 - 20.4 21.8 -1.9 - 19.9

BALANCE (A+B-C) 29.4 14.7 21.0 65.1 41.8 14.4 18.4 74.6

Notes :

1. For defined-service pension schemes, Crédit du Nord uses the projected credit units method to calculate employee benefits, and amortises

actuarial gains and losses which exceed 10% of the greater of the defined benefit obligations or funding assets on the estimated average

remaining working life of the employees participating in the plan (corridor method). Crédit du Nord uses the straight-line method over the

residual working lives of employee beneficiaries to recognise past service cost resulting from an amendment of the plan.

2. Pension plans include pension benefits as annuities and end-of-career payments. Pension benefit annuities are paid additionally to State

pension plans.Other post-employment benefit plans are insurance schemes covering accidental death.Other long-term employee benefits

include deferred bonuses, flexible working provisions (compte épargne temps) and long-service awards.

3. The present value of defined benefit obligations have been valued by independent qualified actuaries.

4. Information regarding plan assets:

k only end-of-career payments and additional complementary retirement plans are partially covered by assets managed by an external

company.

k the fair value of plan assets is comprised of 16.9% bonds, 66.2% equities, 16.9% money market funds.

5. In general, the expected rates of return on scheme assets are based on a weighted average of expected returns

on each category of assets at fair value.

6. Benefits payable under post-employment plans in 2010 are estimated at EUR 11.6 million.



The actual return on plan and separate assets was:

(as a % of the item measured) 31/12/2009 31/12/2008


Separate assets - -

(in EUR millions) 31/12/2009 31/12/2008


Separate assets - -

B2. Actuarial costs of plans

(in EUR millions)

31/12/2009 31/12/2008


long-term



long-term


Pension

plans Others

Pension

plans Others

Service cost (including social security

contributions) 3.3 0.2 2.2 5.7 3.4 0.2 2.3 5.9

Employee contribution - - - - - - - -

Interest cost 5.8 0.8 1.0 7.6 5.4 0.7 1.1 7.2

Expected return on plan assets -2.8 - - -2.8 -3.9 - - -3.9

Amortisation of past service cost 1.1 - - 1.1 8.3 - - 8.3

Amortisation of gains/losses 0.4 -0.1 2.6 2.9 - - -2.0 -2.0

Settlement - - - - - - - -

TOTAL NET CHARGES

RECOGNISED IN THE INCOME

STATEMENT 7.8 0.9 5.8 14.5 13.2 0.9 1.4 15.5

B3. Changes in net liabilities of post-employment plans booked to the balance sheet

B3a. Changes in the present value of defined benefits obligations

(in EUR millions)

2009 2008

Pension

schemes

Other

plans

Total

post-employ.

Pension

schemes

Other

plans

Total

post-employ.

VALUE AT JANUARY 1 107.2 12.5 119.7 106.2 13.0 119.2

Current service cost (including social security

contributions) 3.3 0.2 3.5 3.4 0.2 3.6

Interest cost 5.8 0.8 6.6 5.4 0.7 6.1


Actuarial gains/losses generated over the fiscal year 2.7 1.7 4.4 -5.5 -0.9 -6.4

Benefit payments -19.1 -0.6 -19.7 -10.5 -0.5 -11.0

Past service cost generated over the fiscal year - - - 8.2 - 8.2

Settlement - - - - - -

Transfers and others - - - - - -

VALUE AT DECEMBER 31 99.9 14.6 114.5 107.2 12.5 119.7



B3b. Changes in fair value of plan assets and separate assets

(in EUR millions)

2009 2008

Pension

schemes

Other

plans

Total

post-employ.

Pension

schemes

Other

plans

Total

post-employ.

VALUE AT JANUARY 1 43.6 - 43.6 62.3 - 62.3

Expected return on plan assets 2.9 - 2.9 3.8 - 3.8

Expected return on separate assets - - - - - -

Actuarial gains/losses generated over the fiscal year 2.9 - 2.9 -22.0 - -22.0


Employer contributions 1.1 - 1.1 3.3 - 3.3

Benefit payments - - - -3.8 - -3.8

Transfers and others -0.5 - -0.5 - - -

VALUE AT DECEMBER 31 50.0 - 50.0 43.6 - 43.6

B4. Main assumptions for post-employment plans

2009 2008

Expected return on assets (separate and plan assets) 6.6% 6.6%

Future salary increase (including inflation) 3.5% 3.5%

The expected rate of return on assets (separate and plan

assets) has been 6.6% since 2005. The range in the expected

rate of return on assets is due to the composition of the assets.

The discount rate used depends on the term of each plan

(2.94% for up to 3 years / 3.86% for up to 5 years / 5.01%

for up to 10 years / 5.35% for up to 15 years and 5.69% for

up to 20 years).

The average remaining lifetime is established individually

by benefit and is calculated taking into account turnover

assumptions.

Inflation depends on the term of each plan (1.90% for up to

3 years / 2.51% for up to 5 years / 2.57% for up to 10 years

/ 2.62% for up to 15 years and 2.66% for up to 20 years).

B5. Sensitivities analysis of post-employment defined benefit obligations compared to main

assumption ranges

(as % of item measured)

2009 2008

Pension schemes Other plans Pension schemes Other plans

Variation of +1% in discount rate

Impact on present value of defined benefit

obligations at December 31 -5.7% -13.2% -4.7% -12.1%

Impact on total expenses -10.5% -23.3% -8.1% -20.6%

Variation of +1% in expected return on assets

(plan assets and separate assets)

Impact on plan assets at December 31 1.0% - 1.0% -

Impact on total expenses -9,1% - -30,0% -

Variation of +1% in future salary increases

(net of inflation)

Impact on present value of defined benefit

obligations at December 31 6.7% 17.1% 5.0% 15.7%

Impact on total expenses 13.8% 33.8% 10.8% 29.2%



B6. Experience adjustments on post-employment defined benefit obligations

(in EUR millions) 31/12/2009 31/12/2008

Defined benefit obligations 99.9 107.2

Fair value of plan assets 50.0 43.6

Deficit / (negative: surplus) 49.9 63.6

Experience adjustments on plan liabilities -3.4 -4.1

Experience adjustments on plan assets 2.9 -22.0

� Note 19Net banking income (NBI)


2009/2008 change

in value in %

Interest and similar income 544.4 408.0 136.4 33.4

Net fee income 439.9 455.3 -15.4 -3.4

Income from equity securities 108.8 103.4 5.4 5.2

Gains or losses on trading portfolio transactions -73.2 24.7 -97.9 -

Gains or losses on short-term investment portfolio transactions 33.7 -58.5 92.2 -

Other banking income (expenses) 1.1 -1.3 2.4 -

NET BANKING INCOME 1,054.7 931.6 123.1 13.2

Share of net fee income in Net Banking Income 41.7% 48.9%

Overall, Net Banking Income increased by 13.2% in 2009. This change resulted mainly from the rise in interest and similar

income (See Note 20).



� Note 20Interest and similar income, other income from securities

Z Net interest and similar income

The change in interest and similar income can be broken down as follows:


2009/2008 change

in value in %

Interest and similar income on


Transactions with banks (including central banks) 123.8 174.2 -50.4 -28.9


Transactions with customers 655.3 751.6 -96.3 -12.8

Commercial loans 12.6 20.5 -7.9 -38.5

Other customer loans , , , ,

Short-term loans 87.3 101.4 -14.1 -13.9

Capital expenditure loans 96.4 125.6 -29.2 -23.2

Home loans 335.6 329.3 6.3 1.9

Other loans 49.9 62.0 -12.1 -19.5

Overdrafts 59.1 91.4 -32.3 -35.3


Other interest and similar income 13.5 12.4 1.1 8.9

Bonds and other fixed-income securities 136.1 293.8 -157.7 -53.7

SUB-TOTAL 925.5 1,268.8 -343.3 -27.1

Interest and similar income on

Transactions with banks -95.1 -170.1 75.0 -44.1

Transactions with banks (including central banks) -95.1 -158.7 63.6 -40.1

Loans secured by notes and securities - -11.4 11.4 -100.0

Transactions with customers -100.1 -203.3 103.2 -50.8

Special savings accounts (1) -78.3 -106.7 28.4 -26.6

Other amounts due to customers -14.3 -64.0 49.7 -77.7

Loans secured by notes and securities -7.3 -32.0 24.7 -77.2

Other interest and similar income -0.2 -0.6 0.4 -66.7

Debt securities -185.9 -487.4 301.5 -61.9

SUB-TOTAL -381.1 -860.8 479.7 -55.7

Net income/expenses from



Bonds and other fixed-income securities 136.1 293.8 -157.7 -53.7

Debt securities -185.9 -487.4 301.5 -61.9

TOTAL 544.4 408.0 136.4 33.4



Z Income from equity securities


2009/2008 change

in value in %

Income from equity securities 108.8 103.4 5.4 5.2

TOTAL INCOME FROM EQUITY SECURITIES 108.8 103.4 5.4 5.2

Income from equity securities is comprised mainly of EUR

78.4 million in dividends received from subsidiaries and

EUR 21.7 million in positive earnings from partnerships in

which Crédit du Nord is a shareholder, vs. EUR 83.4 million

in dividends received from subsidiaries and EUR 7.1 million

in positive earnings from partnerships in 2008. Furthermore,

a dividend from VISA Incorpoation of EUR 9.3 million was

recorded in 2008.

Z Income from the trading portfolio


2009/2008 change

in value in %

Income from fixed income instruments -79.2 15.0 -94.2 -

Income from foreign exchange instruments 5.4 6.0 -0.6 -10.0

Income from trading securities 0.6 3.7 -3.1 -83.8

GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS -73.2 24.7 -97.9 -

Z Income from the short-term investment portfolio


2009/2008 change

in value in %

Amortisation -5.8 -60.0 54.2 -90.3

Reversals 39.2 1.6 37.6 -

Income from disposals 0.3 -0.1 0.4 -

GAINS OR LOSSES ON SHORT-TERM INVESTMENT

PORTFOLIO TRANSACTIONS 33.7 -58.5 92.2 -

In 2009, impairment reversals were mainly linked to bonds for EUR 13.1 million and negotiable debt instruments for EUR 25.6

million which had been impaired in 2008.



� Note 21Net fee income

Net fee income can be broken down by type, as follows:


2009/2008 change

in value in %

Fee income from


Securities transactions 80.3 92.3 -12.0 -13.0

Foreign exchange transactions 1.2 1.2 - -

Financing and guarantee commitments 16.8 16.2 0.6 3.7

Services 238.5 244.6 -6.1 -2.5

SUB-TOTAL 489.2 504.0 -14.8 -2.9

Fee income from

Transactions with banks -0.7 -0.7 - -

Foreign exchange transactions -0.1 - -0.1 -

Financing and guarantee commitments -0.4 -0.3 -0.1 33.3

Services -48.1 -47.7 -0.4 0.8

SUB-TOTAL -49.3 -48.7 -0.6 1.2

TOTAL NET FEE INCOME 439.9 455.3 -15.4 -3.4

� Note 22Operating expenses


2009/2008 change

in value in %

Personnel expenses -422.5 -412.4 -10.1 2.4

Taxes -17.4 -16.7 -0.7 4.2

Other expenses -173.4 -175.7 2.3 -1.3

Depreciation and amortisation -59.2 -59.1 -0.1 0.2

OPERATING EXPENSES -672.5 -663.9 -8.6 1.3



� Note 23Personnel expenses

Personnel expenses, which came out at EUR 422.5 million, can be broken down as follows:


2009/2008 change

in value in %

Employee compensation -249.2 -243.6 -5.6 2.3

Social security charges and payroll taxes -70.8 -71.1 0.3 -0.4

Retirement expenses -44.3 -48.4 4.1 -8.5

Defined contribution schemes -35.9 -35.4 -0.5 1.4

Defined benefit plans -8.4 -13.0 4.6 -35.4

Other social security charges and taxes -35.5 -34.5 -1.0 2.9

Employee profit-sharing and incentives -29.3 -20.8 -8.5 40.9

o/w incentives -17.7 -15.1 -2.6 17.2

o/w profit-sharing -4.8 - -4.8 -

Transfer of charges 6.6 6.0 0.6 10.0

TOTAL -422.5 -412.4 -10.1 2.4

«Employee compensation» includes salaries, changes in provisions in company liabilities excluding complementary benefits.

«Social security charges and payroll taxes» includes contributions to statutory benefit plans excluding pensions.

«Retirement expenses - defined contribution plans» includes contributions to statutory and retirement plans and complementary pension plans as well as benefits payable for

retirement.

«Retirement expenses - defined benefit plans» includes changes in provisions for complementary retirement pension plans and insurance premiums and payments for retirement

benefits.

«Other social security charges and taxes» covers all other salary charges paid to specialised bodies.

“Employee profit-sharing and incentives (including top-ups)” includes sums paid for employee profit-sharing schemes, incentives and top-ups paid by the Group’s businesses on

payments by employees into the company savings plan.

“Transfer of charges” corresponds to personnel expenses capitalised for the development of business software.


2009/2008 change

in value in %

Average staff count in activity 5,415 5,415 - -

Staff count recorded at December 31 5,913 5,965 -52 -0.9

Compensation of the administrative and decision-making bodies stood at EUR 2.2 million as at December 31, 2009



� Note 24Other operating expenses, depreciation and amortisation

Z Other operating expenses


2009/2008 change

in value in %

Taxes -17.4 -16.7 -0.7 4.2

Other expenses -173.4 -175.7 2.3 -1.3

Rent and rental charges -36.1 -31.2 -4.9 15.7

Sub-contracting expenses -72.9 -80.8 7.9 -9.8

Postal and telecommunication expenses -17.9 -16.6 -1.3 7.8

Transport and travel -11.0 -13.4 2.4 -17.9

Sales development and marketing operations -9.5 -10.3 0.8 -7.8

Other operating expenses -47.8 -46.2 -1.6 3.5

Transfer of charges 21.8 22.8 -1.0 -4.4

TOTAL -190.8 -192.4 1.6 -0.8

The figures in the table above, line to line, are gross, i.e. before

any capitalisation: if and when charges are capitalised, they

also appear, deducted from total, in the last line, “Transfer of

charges”.

Note that, in accordance with the measures provided for in

accounting regulations, and in respect of these measures, in

2009 Crédit du Nord capitalised EUR 21.8 million in charges

from the «Sub contracting expenses» entry (vs. EUR 22.8

million at end-2008). This sum corresponds to the expenses

generated by the production of different software packages

for internal use at Crédit du Nord. After capitalisation, these

software packages are amortised over 3 to 5 years as of their

installation.

In 2009, the Group’s global audit expenses for the Statutory

Auditors amounted to EUR 405,000 excluding tax (excluding

expenses and outlay). This sum is entered into the heading

“Other operating expenses”, which can be broken down as

follows:

(in EUR millions)

Deloitte Ernst & Young

2009 2008 2009 2008

Statutory Auditors, certification,examination

of individual and consolidated accounts -180.5 -177.0 -180.5 -177.0

Additional assignments -14.0 -5.0 -30.0 -25.0

Z Amortissements


2009/2008 change

in value in %

Amortisation expense on tangible fixed assets -28.8 -27.8 -1.0 3.6

Depreciation expense on tangible fixed assets - - - -

Amortisation expense on intangible fixed assets -30.4 -31.3 0.9 -2.9

TOTAL -59.2 -59.1 -0.1 0.2



� Note 25 Cost of risk

(in EUR millions)

2009

2008

2009/2008 change

in value in %

Impairment of doubtful loans (1) -114.2 -85.6 -28.6 33.4

TOTAL -114.2 -85.6 -28.6 33.4

(1) o/w disputes -1.6 1.1

Cost of risk can be broken down as follows:


Allowance for the fiscal year (see Notes 8 and 14) -205.9 -176.0

Losses not covered by impairments -6.7 -7.7

Losses covered by impairments -19.2 -30.7

Reversals (including uses of impairments) (see Notes 8 and 14) 113.7 123.3

Amounts recovered on impaired loans 3.9 5.5

TOTAL -114.2 -85.6

Note that «Cost of risk» corresponds exclusively to

counterparty risk relative to banking intermediation activities.

Allowances and reversals for other risks are recorded to the

same accounts as the covered expenses.

In the difficult environment of 2009, cost of risk shot up

33.4% on 2008. Divided by the total number of outstanding

loans, the level of provisioning stood at 0.79% (2) in 2009

versus 0.58% in 2008 and 0.26% in 2007. Also note that

Crédit du Nord booked EUR 19.9 million in «Allowances for

credit risks» (see Note 14).

(2) 0.76%, excluding provisions on MALACHITE securities (rerversed

during the purchase of certain Etoile Gestion assets) for EUR 3.4 million.

� Note 26Gains or losses on fixed assets

(in EUR millions)

2009

2008

2009/2008 change

in value in %

Net income from equity investments 99.8 0.2 99.6 -

Net income from investment securities 0.7 - 0.7 -

Net income from disposals of operating fixed assets - 0.5 -0.5 -100.0

TOTAL 100.5 0.7 99.8 -

Net income from equity investments was mainly derived from

the capital gain on the sale of Dexia-C.L.F Banque shares for

EUR 11.5 million and a gross capital gain of EUR 87.8 million

generated on the contribution of all Etoile Gestion shares to

Etoile Gestion Holding (Note 5).



� Note 27Income tax


2009/2008 change

in value in %

Current income tax -51,4 -16,4 -35,0 -

Deferred tax -52,7 -59,0 6,3 -10,7

Gain due to tax consolidation 67,0 60,8 6,2 10,2

TOTAL -37,1 -14,6 -22,5 154,1

Since January 1, 2000, Crédit du Nord, as the head of the

Group, has established the overall net income relative to the

companies belonging to the tax consolidation scope (Art. 223

A to U of the French General Tax Code).

The tax consolidation convention adopted is that of

neutrality. This means that, as regards corporate tax (as

well as the additional social security contributions and the

social contribution on profits), the tax is determined by the

subsidiaries as if there were no tax consolidation.

Once calculated, after deduction of any dividend tax credits

and tax credits, these amounts are due to the parent company.

The tax savings in 2009 resulting from this tax consolidation

came out at EUR 67.0 million, which was booked to income.

As a result, the corporate tax (an expense of EUR 37.1 million)

corresponds to:

� current tax of EUR 51.4 million (representing income tax

payable for 2009);

� deferred tax on temporary differences totalling EUR 52.7

million (expenses);

� tax consolidation income of EUR 67.0 million (income).

Z Breakdown of the tax expense

The tax expense can be broken down as follows in relation to pre-tax income:

Pre-tax income 368.5

Theoretical tax expense -126.9

Normal tax rate, including temporary increases 34.43%

Permanent differences and other items -8.01%

Tax differential on profits taxed outside France -0.64%

Differential on items taxed at a reduced rate -9.77%

Net gain of tax consolidation -6.00%

Miscellaneous 0.06%

Apparent tax rate, including temporary increases 10.07%

Real tax expense -37.1



� Note 28Information concerning subsidiaries and equity investments

At December 31, 2009

(in EUR thousands) Capital

Reserves

and

retained

earnings

Share of

capital

owned (in %)

Net asset

value of

shares

owned

Unpaid loans

and advances

Guarantees

and endorse

given

Net

Banking

Income

2009 Net

Income

Dividends

received

in 2009

Obser-

vations

A. Information concerning subsidiaries and equity investments owned by Crédit du Nord, whose net

asset value exceeds 1% of the bank’s capital.

Subsidiaries (at least 50% of capital owned)

Banque Courtois

33, rue Rémusat

31000 Toulouse 17,384 123,464 100.00 54,056 56,794 32,160 154,678 42,764 21,078

Banque Tarneaud

2-6, rue Turgot

87000 Limoges 26,529 134,250 80.00 74,881 48,500 67,993 116,750 30,506 7,428

Banque Rhône-Alpes

20-22, boulevard Edouard Rey

38000 Grenoble 11,917 118,756 98.34 93,886 45,051 3,953 132,800 32,384 19,044

Norbail Immobilier

50, rue d’Anjou

75008 Paris 8,000 10,017 100.00 7,811 441,260 85,440 7,695 3,325 1,500

Société de Bourse Gilbert

Dupont

50, rue d’Anjou

75008 Paris 3,806 7,306 99.99 8,062 - - 13,970 1,113 - (1)

Banque Nuger

7, place Michel-de-

l’Hospital

63000 Clermont-Ferrand 11,445 34,162 63.19 13,921 - 3,402 33,861 10,794 2,365

Banque Laydernier

10, avenue du Rhône

74000 Annecy 24,789 32,516 96.82 44,435 101,633 4,573 61,758 14,824 5,550

Etoile ID


75008 Paris 15,400 7,644 100.00 22,977 - - 6,801 6,554 5,282

Banque Kolb

1-3, place du Général-de-

Gaulle

88500 Mirecourt 14,099 48,679 78.44 46,606 3,975 4,634 60,200 13,385 4,554

Kolb Investissement


75008 Paris 77 9,714 100.00 38,964 - - 1,321 1,273 -

Star Lease


75008 Paris 55,000 19,171 100.00 55,000 1,316,562 352,077 22,479 4,509 -

Etoile Gestion Holding

170, place Henri-Régnault

92043 Paris-la-Défense 155,000 - 69.42 107,595 10 - - -4 -

Hedin


75008 Paris 32,147 -7,374 94.99 30,540 - - -3,406 -3,593 -

Nordenskiöld


75008 Paris 32,656 -7,135 94.99 31,023 - - -2,370 -2,435 -



At December 31, 2009

(in EUR thousands) Capital

Reserves

and

retained

earnings

Share of

capital

owned (in %)

Net asset

value of

shares

owned

Unpaid loans

and advances

Guarantees

and endorse

given

Net

Banking

Income

2009 Net

Income

Dividends

received

in 2009

Obser-

vations

Verthema


75008 Paris 24,451 -5,379 94.99 23,229 - - -1,787 -1,852 -

Legazpi

17, cours Valmy

92800 Puteaux 23,888 -5,366 50.00 11,944 - - -2,063 -2,067 -

Equity investments (less than 50% of capital owned)

Crédit Logement

50, boulevard Sébastopol

75003 Paris 1,253,975 57,785 3.00 38,852 86,665 112,000 169,002 85,103 2,423 (2)

Sicovam Holding

18, rue La Fayette

75009 Paris 10,265 620,095 6.10 14,889 - - 10,959 -82,408 627 (3) (4)

Antarius


75008 Paris 284,060 5,297 49.99 142,407 - - 55,820 27,077 11,451

Croissance

Nord Pas-de-Calais

Euralliance - Porte A

2 avenue de Kaarst

59777 Euralille 47,500 5,890 13.20 7,883 - - 6,882 289 -

(2) (4)

B. General information concerning other subsidiaries and equity investments

Subsidiaries not covered in Paragraph A

a) French subsidiaries

(combined) - - - 11,243 158,841 43,245 - - -

b) Foreign subsidiaries

(combined) - - - - - - - - -

Equity investments (5) not covered in Paragraph A

a) French equity

investments (combined,

incl. property dvlpt.

companies) - - - 17,934 24,316 7,053 - - 391

b) Foreign equity

investments (combined) - - - 2,400 - - - - 28

1) The company’s 2009 net income is partially included in Crédit du Nord’s net income.

(2) Data in italics pertain to Dec. 31, 2008 (2009 data unavailable).

(3) Data in italics taken at July 31, 2009.

(4) For non-banking companies, revenue is indicated rather than Net Banking Income.

(5) Including equity investments of less than 10% recorded in equity investment accounts, in accordance with the provisions of the internal charts of accounts.

Note Net income and Net Banking Income for 2009 are indicated for some companies, subject to the approval of the financial statements by the General Meeting of Shareholders

scheduled to meet in 2010.



� Note 29Main changes in the investment portfolio in 2009

Crédit du Nord carried out the following transactions on its

securities portfolio during fiscal year 2009:

Creation:

None

Acquisition:

Valeur Pierre Alliance (merger with Valeur Pierre 3)

Participation in capital increases:

Etoile Gestion Holding (formerly Starquarante et un) - Adevia

(formerly Artois Developpement) - Caisse de Refinancement

de l’Habitat

Liquidation – complete disposal:

Etoile Gestion - Dexia-C.L.F Banque - Axecia - Valeur Pierre

3 (merger with Valeur Pierre Alliance) - Les Parcs de Sausset

- Groupe Seagull - Etudes Rochelaises - Automatisme Avenir

Informatique - Lep Group PLC

Reduction of equity investment:

Visa Inc - Financière Tour Boieldieu - FCPR PME France

investissement A - Caisse de Refinancement de l’Habitat -

Swift - SAS Carte Bleue - FCPI Gen-i

In accordance with the provisions of Article L.233.6 of the

French Commercial Code, the table below summarises the

significant changes in Crédit du Nord’s investment portfolio

recorded in 2009 (note that legal thresholds exist at 5%,

10%, 20%, 33% and 50%).

Upwards threshold crossings:

Threshold Company

% of capital

31/12/2009 previous

50%

Etoile Gestion Holding

(formerly Starquarante et un) 69,42% 0,00%

Downward threshold crossings:

Threshold Company

% of capital

31/12/2009 previous

5% Axecia 0,00% 5,00%

20% Dexia-C.L.F Banque 0,00% 20,00%

20% Les Parcs de Sausset 0,00% 20,00%

50% Etoile Gestion 0,00% 64,05%


3 I Individual fi nancial statements IInformation on the Corporate Offi cers

� Information on the Corporate Officers

Over the course of 2009, the composition of the Board of Directors was affected by the following events:

� the appointment of Messrs. Stefaan DECRAENE, Pierre MARIANI, Philippe RUCHETON, Jean-François SAMMARCELLI

and Vincent TAUPIN;

� the renewal of the mandates of Messrs. Didier ALIX and Patrick DAHER;

� the resignations of Messrs. Didier ALIX, Stefaan DECRAENE, Jacques GUERBER, Hugo LASAT, Pierre MARIANI, Alex

PEYTAVIN, Christian POIRIER, Philippe RUCHETON and Alain PY.

� finally, following the elections of Employee Directors at the end of the year, Ms. Angélina HOLVOET was elected and replaced

Fabien FOUTRY, while Messrs. Pascal COULON and Jean-Pierre DHERMANT were re-elected.

Alain PY (resigned December 31, 2009)

– Chairman and CEO, Crédit du Nord (*);

– Chairman of the Board of Directors: Antarius (*);

– Permanent Representative of Crédit du Nord

• on the Supervisory Board: Banque Rhône-Alpes

(09/2002 to 02/2007);

• on the Board of Directors: Banque Rhône-Alpes

(since 02/2007);

– Director: Banque Tarneaud (*), Banque Laydernier (since

02/2007), SGAM (*).

Marc BATAVE

– Executive Vice Chairman, Crédit du Nord (since 11/2008);

– Chairman of the Board of Directors: NORBAIL Immobilier

(03/ 2000 to 01/2007); STAR LEASE (09/2001 to 12/2006);

– Chairman of the Supervisory Committee: Banque Courtois

(since 05/2008); Banque KOLB (since 09/2005);

– Chairman of the Supervisory Committee: SNC Etoile

Gestion (*)

– Permanent Representative of Crédit du Nord: Banque

KOLB (05/2001 to 09/2005); Banque Pouyanne (02/2004

to 12/2006);

– Director: Antarius (*); Banque Tarneaud (*); Étoile ID

(formerly SPTF) (since 02/2004); STARLEASE (*); NORBAIL

Immobilier (since 05/2007);

– Member of the Supervisory Committee: Norfinance Gilbert

Dupont –SNC- (*);

Alain CLOT (resigned December 31, 2009)

– Chairman and Chief Executive Officer: Coupole Investment

Management (2007 to 10/2008);

– Chairman of the Board of Directors: SGAM IBERIA

(06/2004 to 12/2008); SGAM - SUISSE (12/2007 to

10/2008);

– Chairman: SGAM (10/2005 to 09/2008); SGAM AI (02/2004

to 10/2008); SGAM Index (formerly PARGESFOND)

(05/2005 to 10/2008); VOURIC (05/2008 to 06/2008);

– Chief Executive Officer: SGAM (02/2004 to 09/2008);

– Executive Vice Chairman, Crédit du Nord (11/2008 to

12/2009)

– Director: BAREP Asset Management SGAM (05/2004 to

06/2009); SOGECAP DSFS (12/2004 to 12/2008); SGAM

JAPON (since 06/2004); SGAM GROUP LTD (03/2004 to

04/2009); SBI FM SGAM (since 12/2004); SGAM Invest

Liquidités Euro (04/2002 to 01/2009); Banque Rhôme-

Alpes (02/2009 to 12/2009)

– Member of the Supervisory Board: Banque Nuger

(05/2009 to 12/2009)

(*) Mandats exercés pendant les 5 dernières années.

Mandates and functions held over the past five years


I Individual fi nancial statements IInformation on the Corporate Offi cers

Didier ALIX (resigned November 31, 2009)

– Chairman and Chief Executive Officer: Sogébail (*);

– Chairman of the Supervisory Board: Komercni Banka (*);

– Deputy Chief Executive Officer: Société Générale (since

09/2006);

– Director: Crédit du Nord (since 07/2007); Franfinance (*) ;

Yves Rocher (*); Sogessur (2003 to 11/2006); Fiditalia (2003

to 12/2006); Banque Roumaine de Développement (*);

National Société Générale Bank SAE (NSGB) (*); Société

Générale de Banques au Cameroun (*); Société Générale

de Banques au Sénégal (*); Société Générale au Liban (*);

MSR International Bank (2005 to 12/2006);

– Director and Vice-Chairman: Société Générale de Banques

en Côte d’Ivoire (*);

– Member of the Supervisory Board: Société Générale

Marocaine de Banques (*); Groupama Banque (2003 to

10/2006);

– Permanent Representative of Salvépar on the Board

of Directors of Latécoère (2005 to 12/2006);

– Permanent Representative of Salvépar on the Board

of Directors of Latécoère (since 01/2007).

Séverin CABANNES

– Deputy Chief Executive Officer : Société Générale (since

05/2008);

– Director: Crédit du Nord (since 02/2007); Fiditalia (01/2007

to 04/2008); Genefimmo Cafi 1 (04/2007 to 04/2009); SG

Global Solution RESG/ITS (since 2007); Rosbank BHFM

(05/2008 to 06/2009); TCW Group (since 06/2009) ;

Amundi Group (since 31/12/2009);

– Member of the Supervisory Board: Komercni Banka (*);

Groupe Steria SCA (since 02/2007).

Patrick DAHER

– Chairman of the Board of Directors: Compagnie DAHER

(since 2005);

– Chairman of the Supervisory Board : Grand Port Maritime

de Marseilles (2009)

– Chief Executive Officer: Compagnie DAHER (since 2005);

– Director and CEO: Sogemarco DAHER (since 2005);

– Director: Crédit du Nord (since 09/2005); DAHER

International Développement (since 2005); DAHER

Aérospace Ltd (2007); DAHER Inc. (2007); DAHER Sawley

Ltd (2005 to 2006); LISI (since 04/2008)

– Permanent Representative of DAHER MTS: Océanide

since 2005

– Permanent Representative of DAHER FLS: Transports

Angeleri (2005).

Stefaan DECRAENE

(resigned December 11, 2009)

– Chairman of the Board of Directors: Adinfo Belgium

(01/2005 to 05/2009) ; Dexia Asset Management

Luxembourg ; Dexia Participation Luxembourg (since

07/2009) ; FEBELFIN ; Dexia Foundation (ASBL) (02/2006

to 06/2009) ;

– Director : Crédit du Nord (05/2009 to 12/2009) ;

Denizbank ; Dexia (since 07/2009) ; Dexia Banka

Slovensko (since 03/2009) ; Dexia Banque Belgique ; Dexia

Bank International Luxembourg (since 02/2009) ; Dexia

Insurance Belgium ; Dexia Nederland Holding ; Europalia

International SCRL ; RBC Dexia Invesors Services Limited

(since 04/2009) ; Voka Vlaams Economisch Verbond ;

– Member of the Supervisory Board: Aviva France ( 2004

to 11/2008).



Bruno FLICHY

– Director: Crédit du Nord (*) ; Eiffage (*) ; Aviva Participations (*);

Dexia Banque Belgique (since 02/2004); Aviva France

(since (11/2008);

– Member of the Supervisory Board: Aviva France (2004 to

11/2008).

Jacques GUERBER (resigned January 23, 2009)

– Vice-Chairman of Management Committee: Dexia SA

(2006 to 11/2008);

– Vice-Chairman of the Board of Directors: Dexia Asset

Management France (2003 to 09/2004);

– Director: Dexia SA (05/2007 to 10/2008); Dexia Crédit

Local (since 2007); Dexia Banque Belgique SA (since

2006); Dexia Banque Internationale à Luxembourg (since

03/2007); Crédit du Nord (02/2000 to 01/2009); Financial

Security Assurance Ltd(*); Dexia Participation Luxembourg

(since 06/2007); Dexia Insurance (2003 to 02/2006);

– Member of the Management Committee: Dexia Banque

Internationale à Luxembourg (2006 to 02/2007); Dexia

Banque Belgique (2006 to 02/2007);

– Chairman of the Supervisory Board: Dexia Municipal

Agency (*);

– Chairman of the Management Board: Dexia Crédit Local

(2003 to 01/2006);

– Chairman of the Board of Directors: IFAX (2003 to

11/2004);

– Member of the Supervisory Board: Financière Centuria

(2003 to 10/2007);

– Permanent Representative of Dexia Crédit Local: Dexia

Finance (2003 to 06/2006).

Hugo LASAT

– Chairman of the Board of Directors: Dexia Asset

– Management SA (since 04/2003); Dexia Asset

Management Luxembourg (since 02/2007); Dexia Banque

Privée (since 03/2007);

– Chairman: Crédit du Nord (02/2007 to 01/2009); Dexia

Bank Denmark (since 03/2005); Dexia Insurance (since

05/2007); Popular Banca Privada (since 03/2006);

Denizbank AS (since 01/2007);

– Member of the Management Committee: Dexia SA (2007).

Pierre MARIANI (resigned December 11, 2009)

– Director: Crédit du Nord (05/2009 to 12/2009) ; Dexia

(deputy director since 05/2009) ; Dexia Banque Belgique ;

Dexia Crédit Local ; Dexia Banque Internationale

Luxembourg ; EDF (since 11/2009) ;

– Member of the Supervisory Board: Aviva France (2004 to

11/2008).

Christian POIRIER (resigned October 22, 2009)

– Chairman: SOGEFINANCEMENT SAS (until 05/2005);

– Director: Crédit du Nord 04/1997 to 10/2009) ; Fiditalia

(until 09/2009) ; Genefinance (until 09/2009) ; Sogébail

(2003 to 03/2007) ; Deltacrédit (2006 to 09/2009) ; Fimat

Banque (2007) ; Génébanque (05/2007 to 09/2009) ;

Généval (06/2007 to 09/2009) ; UIB (08/2007 to 09/2009) ;

Rosbank BHFM (2009)

– Member of the Supervisory Board: Groupama Banque

(until 10/2009); Komercni Banka (*);

– Permanent Representative of Société Générale: Crédit

Logement (2003 to 04/2007); ECS (*); SOGECAP (03/2007

to 09/2009); OSEO SOFARIS (05/2005 to12/2006); SIAGI

(08/2006 to 12/2006);

Philippe RUCHETON

(resigned December 11, 2009)

– Chairman: Dexia Municipal Agency (since 05/2009);

– Member of the Supervisory Board: Dexia Municipal Agency

(since 05/2009);

– Director: Crédit du Nord (05/2009 to 12/2009); Dexia

Asset Management Luxembourg (since 02/2009); Dexia

Crédit Local (since 02/2009); Dexia Insurance Belgium

(since 05/2009);

Patrick SUET

– Chairman of the Board of Directors: Généras SA (*);

– Chairman of SGBT Luxembourg (since 06/2009);

– Member of the Supervisory Board: Lyxor Asset

Management (since 05/2005); Lyxor International Asset

Management (since 05/2005);

– Director: Crédit du Nord (*); Généras SA (*); Sogé

Participations (04/2001 to 05/2008); Clickoptions (*); SGBT

Luxembourg (since 11/2006);



Jean-François SAMMARCELLI

– Deputy Chief Executive Officer of Société Générale since

2009

– Chairman of the Board of Directors: CGA (since 2005);

– Director: Crédit du Nord (since 11/2009); SOGECAP (since

03/2005); SOGESSUR (*); SG Equipement Finances (*);

SOGESSUR (since 12/2006); SOGEPROM (since 2009);

Boursorama (since 05/2009); Généfinance, Généfim and

Mibank (until 2006); Société Financière Lyonnaise (until

2005);

– Member of the Supervisory Board of: SKB Banka (until

05/2009); SG Marocaine de Banque (since 2007); public

limited company “Fonds de garantie des dépôts” (since

06/2009);

– Permanent Representative of SG FSH on the Board of

Directors of Franfinance (since 12/2007);

– Non-Voting Director of Ortec Expansion (since 04/2009).

Vincent TAUPIN

– Chairman and Chief Executive Officer: Boursorama

(05/1999 to 12/2009);

– Director: Crédit du Nord (since 11/09); Antarius (since

12/2009); Euromirabelle (until 06/2009); Talos Securities

Limited (until 12/2009); Talos Holdings Limited (until

12/2009); Veritas (until 07/2008); ESGL (until 03/2008);

Amundi Group (since 12/2009);

– Member of the Supervisory Board of public limited

company “On Vista Bank” (09/2009 to 12/2009).

Pascal COULON

– Employee Director: Crédit du Nord (since 07/2009).

Jean-Pierre DHERMANT


Angélina HOLVOET


To the best of Crédit du Nord’s knowledge, there are no conflicts of interest between Crédit du Nord and the members of the

Board of Directors, with respect to either their personal or professional interests.

Other information

Shares held by the Directors

� In accordance with Article 11 of the by-laws, the Directors

hold at least 10 shares.

Ethics

� All Directors refrain from carrying out transactions in the

shares of the companies on which (and to the extent that)

they hold, by virtue of their offices, information which has

not yet been made public.



SENIOR MANAGEMENT REMUNERATION POLICY

The remuneration of the three senior management corporate

officers includes:

� fixed annual compensation;

� performance-based compensation in the form of a bonus,

paid at the end of each fiscal year following the closing

of accounts, which is determined as a percentage of the

fixed compensation.

Mr. Alain PY: as his fixed annual compensation had not

been revised since 2007, it was decided that it would be

raised by 5% in 2009. The percentage of his performance-

based compensation, initially set by decision of the Board of

Directors meeting of July 26, 2006, re-approved by the Board

of Directors meeting of February 20, 2009, is 60% maximum

of the fixed annual compensation; this percentage shall be

valid through to the expiry of his mandate.

Payment of the percentage of fixed compensation indicated

above is subject to return on equity reaching a pre-determined

percentage, set at 16.6% for fiscal year 2009 by the Board of

Directors on February 20, 2009.

If for any given fiscal year, return on equity observed does not

match return on equity expected, the amount of performance-

based compensation, expressed as a percentage of the

fixed compensation, is modified in proportion to the ratio

between return on equity observed divided by return on equity

expected.

Messrs. BATAVE and CLOT: the Special Compensation

Committee, which met on February 20, 2009, proposed that

the directors maintain their fixed compensation and benefits

(company car, housing) at the same level.

Their performance-based compensation is set at 40%

maximum of their fixed compensation; for 2009, this rate will

be paid if the bank’s 2009 ROE reaches 16.6%.

Post-mandate benefits

Alain PY benefited from the supplementary pension plan for

senior group managers of Société Générale, to which he was

entitled as an employee of Société Générale.

This plan guarantees that at the date on which their pension

benefits are settled by Social Security, beneficiaries will receive

a total amount equal to a percentage of compensation serving

as a base, determined according to the number of annuities

taken into account and capped at 70% of said compensation.

The base compensation is the fixed compensation plus

performance-based compensation (equal to 5% of fixed

compensation). The pension for which the Company is

responsible is equal to the difference between the overall

pension defined above and all pension funds and similar

benefits paid by Social Security and all other retirement plans

for the beneficiary’s salaried activity. 60% of said pension shall

be paid to any surviving spouse in the event of the death of

a beneficiary.

Mr. Alain PY remained a corporate off icer unti l

December 31, 2009, the date on which he resigned in order

to take his retirement. None of the costs of Mr. PY’s pension

shall be borne by Crédit du Nord, as it is fully covered by

Société Générale.

Alain Clot benefited from the complimentary pension plan

for senior group managers, to which he was entitled as an

employee of Société Générale. This complementary regime

was set up in 1991. At the date of settlement of their Social

Security pension, it offers beneficiaries a total pension equal

to the product of the following two terms:

� the average, over the last ten years of the beneficiary’s

career, of the fraction of fixed compensation exceeding

«Tranche B” of the AGIRC, plus performance-based

compensation equal to 5% of fixed compensation;

� the rate equal to the number of annuities corresponding

to the beneficiary’s periods of employment with Société

Générale divided by 60.

AGIRC’s “Tranche C” pension, acquired by the beneficiary

for employment with Société Générale, is deducted from

this overall pension. The complementary allocation paid by

Société Générale is increased for beneficiaries having raised

at least three children and for those taking their retirement

after age 60. It cannot be less than one-third of the full-rate

value of service of AGIRC “Tranche B” points acquired by

the beneficiary since his or her entry in Société Générale’s

“Unclassified” category.

Mr. Alain CLOT remained a corporate officer until

December 31, 2009, the date on which he resigned. No

pension costs shall be borne by either Crédit du Nord

or Société Générale, as these benefits depend on the

employee’s continued employment with the company upon

the settlement of the pension.

Marc BATAVE holds an employment contract with Crédit

du Nord, the application of which was suspended during

his appointment in November 2008, and for the term of his

corporate mandate.

This employment contract will become fully effective again in

the event of the termination of the corporate mandate, at the

date of said termination, for any reason whatsoever.

For the term of his corporate mandate, Marc BATAVE shall

maintain all of the benefits acquired prior thereto as an

employee of Crédit du Nord. He shall notably maintain the

benefit of the provisions of the supplementary pension plan



for senior group managers established by the Supervisory

Board of Crédit du Nord on September 5, 1996.

This plan guarantees that, at the date on which the pension

benefits are settled by Social Security, beneficiaries shall

receive an additional pension corresponding to the difference

between:

� an amount equal to 50% of the average, calculated

over the last five best years out of the last ten years of

employment, of the annual gross sums received for

employment with Crédit du Nord Group, although the

amount thus determined may not exceed 60% of the

annual contractual compensation for these same years;

� if less, the total of the pension plans (excluding increases

for large families) and other income acquired from Social

Security, of any other basic plans, of any other statutory

retirement plans by distribution or capitalisation, of any

compensation received for dismissible positions after

retirement, and of any compensation received from

positions held prior to employment with the Group.

It has been expressly agreed that during the term of the

mandate, fixed compensation (excluding the annual allocation

linked to the mandate addressed above) and performance-

based compensation, paid during the term of the mandate,

shall be considered as salaried employment periods and

compensations for the determination of the amount of

guarantees provided for by this plan at the appropriate time.

Messrs. PY, BATAVE and CLOT do not benefit from any

provisions providing for compensation in the event they are

led to step down from their corporate mandates.

At the Board of Directors’ meeting of November 3, 2009, Mr.

Alain PY – Chairman and Chief Executive Officer of Crédit du

Nord – notified the Board that, in order to take his retirement,

he was tendering his resignation as Chairman and Chief

Executive Officer on December 31, 2009.

At the same meeting of the Board, the decision was made

to separate the duties of the Chairman from those of the

Chief Executive Officer. Consequently, on January 1, 2010,

Mr. Jean-François SAMMARCELLI became Chairman of

the Board of Directors of the Bank, and Mr. Vincent TAUPIN

became Chief Executive Officer.

ATTENDANCE FEES PAID TO DIRECTORS

The amount of attendance fees was set at EUR 75,000 by the

General Meeting of Shareholders on May 4, 2000.

The rules for distributing attendance fees among directors,

drawn up by the Board of Directors on March 12, 1998, are

as follows:

� half of the attendance fees are distributed in equal parts

among the directors;

� the balance is divided up among directors in proportion to

the number of Board meetings attended by each director

during the fiscal year. The share belonging to absentees

is not redistributed among the other directors but is kept

by Crédit du Nord.



STANDARDISED TABLES IN COMPLIANCE WITH AFEP/MEDEF AND AMF RECOMMENDATIONS

AFEP/MEDEF AND AMF RECOMMENDATIONS

The Board of Directors of Crédit du Nord examined and decided to apply the AFEP/MEDEF recommendations on compensation

of senior management corporate officers.

The standardised presentation of their compensation, prepared in accordance with AFEP/MEDEF recommendations, is

presented below.

Table 1

STATEMENT OF COMPENSATION, OPTIONS AND SHARES AWARDED TO EACH SENIOR MANAGEMENT CORPORATE OFFICER

Fiscal year 2008 Fiscal year 2009

Alain PY, Chairman and Chief Executive Officer

Remuneration due for the fiscal year (detailed in Table 2) 541,517 684,710

Valuation of options awarded during the fiscal year (detailed in Table 4) 357,746 0

Valuation of performance-based shares awarded during the fiscal year

(detailed in Table 6) 96,510 0

TOTAL 995,773 684,710

Marc BATAVE, Executive Vice Chairman (*)


Valuation of options awarded during the fiscal year (detailed in Table 4) 0 28,300


(detailed in Table 6) 0 39,122

TOTAL 26,667 373,963

Alain CLOT, Executive Vice Chairman (*)


Valuation of options awarded during the fiscal year (detailed in Table 4) 0 0


(detailed in Table 6) 0 0

TOTAL 46,668 411,752

(*) The mandates of Messrs. BATAVE and CLOT as Executive Vice Chairmen began on November 1, 2008.The compensation indicated concerns the period during which these

mandates were held during fiscal year 2008.



Table 2

STATEMENT OF COMPENSATION PAID TO EACH SENIOR MANAGEMENT CORPORATE OFFICER (1)

Fiscal year 2008 Fiscal year 2009

Amount

paid

Amount due

for the fiscal year

Amount

paid

Amount due

for the fiscal year

Alain PY, Chairman and Chief Executive Officer

- fixed compensation 360,000 360,000 378,000 378,000

- performance-based compensation (2) 251,748 176,184 176,184 255 000

- exceptional compensation 0 0 47,328 (3) 47,328(3)

- attendance fees 0 0 0 0

- benefits in kind (3) 5,333 5,333 4,382 4,382

TOTAL 617,081 541,517 558,566 684,710

Marc BATAVE, Executive Vice Chairman (4)

- fixed compensation 26,667 26,667 205,000,(6) 205,000,(6)

- performance-based compensation (2) 0 0 0 81,000

- exceptional compensation 0 0 0 14,000


- benefits in kind (3) 1,579 1,579 6,541 6,541

TOTAL 28,246 28,246 306,541 306,541

Alain CLOT, Executive Vice Chairman (4)

- fixed compensation 46,668 46,668 280,000 280,000

- performance-based compensation (2) 0 0 0 126 000

- exceptional compensation 0 0 0 0


- benefits in kind (3) 0 0 5,752 5,752

TOTAL 46,668 46,668 285 752 411 752

(1) Compensation items are denominated in euros, on a gross pre-tax basis.

(2) The criteria based on which these items were calculated are detailed in the section pertaining to the compensation of corporate officers.

(3) This amount includes the payment of paid holiday and the monetisation of days in the Time Savings Account.

(4) Provision of a company car.

(5) For the period of activity at Crédit du Nord as Chairman and Chief Executive Officer (2 months in 2008 and 12 months in 2009).

(6) o/w EUR 25,000 in compensation paid for the impacts of the suspension of the employment contract with Crédit du Nord.

(7) Concerns the provision of a company car and the payment of a housing allowance, paid on a prorata basis for the period during which the mandate was exercised, i.e.

EUR 3,835 and EUR 2,706, respectively, for 2009.



Table 3

STATEMENT OF ATTENDANCE FEES

Members of the Board

Attendance fees

paid in 2008

Attendance fees

paid in 2009

Alain PY (1) 5,000 5,000

Marc BATAVE - -

Alain CLOT - -

Didier ALIX 4,375 5,000

Séverin CABANNES (1) 5,000 4,375

Pascal COULON (2) - 3,750

Patrick DAHER 3,750 4,375

Stefaan DECRAENE - 1,875

Jean-Pierre DHERMANT (2) 4,375 5,000

Bruno FLICHY 4,375 5,000

Fabien FOUTRY (3) - 3,750

Jacques GUERBER (4) 4,375 -

Hugo LASAT (4) 3,125 -

Pierre MARIANI (5) - 2,500

Axel MILLER (4) 3,125 -

Alex PEYTAVIN (2) 5,000 1,250

Christian POIRIER (1) 5,000 3,750

Marie-Christine REMOND (4) 5,000 -

Philippe RUCHETON (5) - 2,500

Patrick SUET (1) 5,000 5,000

TOTAL 57,500 53,125

(1) Paid to Société Générale

(2) Paid to the CFDT Crédit du Nord union

(3) Paid to the CGT du Crédit du Nord union

(4) Director having left prior to the first Board meeting of 2009

(5) Paid to Dexia SA

Table 4

STOCK OPTIONS AWARDED DURING THE FISCAL YEAR TO EACH SENIOR MANAGEMENT

CORPORATE OFFICER BY THE ISSUER AND BY ANY COMPANY BELONGING TO THE GROUP

Name of senior

management

corporate officer

Date

of plan

Type of options

(purchase or

subscription)

Valuation of options

based on the method

used for the consolidated

accounts (1)

Number of options

awarded during

the

fiscal year

Strike

price

Exercise

period

Alain PY 09/03/2009 Subscription 5.88 0 €23.18

09/03/2012

to 03/03/2016

Marc BATAVE 09/03/2009 Subscription 5.88 4,813 €23.18

09/03/2012

to 03/03/2016

Alain CLOT 09/03/2009 Subscription 5.88 0 €23.18

09/03/2012

to 03/03/2016

(*) This value corresponds to the value of the options at the time they were awarded, in accordance with IFRS 2, after primarily taking into account a potential discount linked to

performance criteria and the probability of the individual’s continued presence in the company at the end of the acquisition period, but before the averaging effect under IFRS 2 of

the expense over the acquisition period.



Table 5

STOCK OPTIONS AWARDED DURING THE FISCAL YEAR

Name of senior management corporate officer

Date

of plan

Number of options exercised

during the fiscal year Strike price

Alain PY No options exercised in 2009

Marc BATAVE No options exercised in 2009

Alain CLOT No options exercised in 2009

TOTAL 0

Table 6

PERFORMANCE-BASED SHARES AWARDED TO EACH CORPORATE OFFICER (1)

Performance-based shares awarded

to each corporate officer

over the fiscal year, by issuer

Date

of plan (2)

Number of shares

awarded during

fiscal year 2008

Valuation of

shares (3) Acquisition date

Date

of availability

Performance

based

Alain PY 20/01/2009 0 17.38€ 31/03/2012 31/03/2014 Yes (5)

Marc BATAVE 20/01/2009 2,251 17.38€ 31/03/2012 31/03/2014 Yes (5)

Alain CLOT 20/01/2009 0 17.38€ 31/03/2012 31/03/2014 Yes (5)

TOTAL 2,251

(1) Performance-based shares are free shares awarded to corporate officers, in accordance with Articles L.225-197-1 et seq. of the French Commercial Code, and which are subject

to additional requirements provided for by the AFEP/MEDEF recommendations of October 2008.

(2) Date of the Board of Directors meeting.

(3) Value of the shares at the time they were awarded, in accordance with IFRS 2, after primarily taking into account a potential discount linked to performance criteria and the

probability of the individual’s continued presence in the company at the end of the acquisition period, but before the averaging under IFRS 2 of the expense over the acquisition

period.

(4) The performance-based conditions were established by the parent company, Société Générale, and are detailed in the section entitled «Corporate Governance» in its registration

document.

Table 7

PERFORMANCE-BASED SHARES (*) PERMANENTLY AWARDED TO EACH SENIOR

MANAGEMENT CORPORATE OFFICER DURING THE FISCAL YEAR

Date of plan

Number of shares which became

available during the fiscal year

Alain PY 18/01/2006 413

Alain PY 19/01/2007 309

Marc BATAVE 18/01/2006 163

Marc BATAVE 19/01/2007 165

Alain CLOT 18/01/2006 187

Alain CLOT 19/01/2007 171

TOTAL 1 408

(*) Performance-based shares are free shares awarded to corporate officers, in accordance with Articles L.225-197-1 et seq. Of the French Commercial Code, and which are subject

to additional requirements provided for by the AFEP/MEDEF recommendations of October 2008.



Table 8

HISTORY OF STOCK OPTIONS AWARDED

INFORMATION ON SUBSCRIPTIONS OR PURCHASES (1)

Date of Board of Directors meeting 09/03/09 21/03/08 19/01/07 18/01/06 13/01/05 14/01/04 22/04/03 16/01/02

Total number of shares (2) available for

subscription or purchase 1,344,552 2,328,296 1,418,954 1,738,367 4,656,319 4,270,014 4,110,784 3,614,262

o/w number of shares available for

subscription or purchase by the corporate

officers

Corporate officer 1: Alain PY 0 22,774 18,118 25,649 40,040 38,300 33,902 23,200

Corporate officer 2: Marc BATAVE (3) 4,813

Corporate officer 3: Alain CLOT (3) 0

Beginning of exercise period 09/03/12 21/03/11 19/01/10 18/01/09 13/01/08 14/01/07 22/04/06 16/01/05

Expiry date 08/03/16 20/03/15 18/01/14 17/01/13 12/01/12 13/01/11 22/04/10 15/01/09

Subscription or purchase price (4) 23.18 63.60 115.60 93.03 64.63 60.31 44.81 57.17

Terms of exercise (where the plan

includes several tranches)

Number of share subscriptions

at Dec. 31, 2009 411 0 0 2,174 53,340 727,877 2,543,311 2,685,280

Total number of cancelled

or expired stock options 419,986 54,570 47,763 89,728 244,220 134,496 205,783 928,982

Number of stock options remaining

at period end 924,155 2,273,726 1,371,191 1,646,465 4,358,759 3,407,641 1,361,690 0

(1) The table covers only those plans in which corporate officers were awarded stock options.

(2) Exercising an option gives the holder the right to one Société Générale share. This table reflects the adjustments made following capital increases. This line does not reflect the

options exercised since the date of allocation.

(3) Appointed as a corporate officer on November 1, 2008.

(4) The subscription or purchase price is equal to the average of the 20 share prices preceding the Board of Directors meeting.

Table 9

STOCK OPTIONS AWARDED TO THE TOP TEN EMPLOYEES (NON CORPORATE OFFICERS)

OF CRÉDIT DU NORD GROUP AND OPTIONS EXERCISED BY THESE EMPLOYEES

Total number of options

awarded/share subscriptions

or purchases Average weighted price

Options awarded during the fiscal year, by the issuer, to the top ten employees

of Crédit du Nord Group (the number indicated is the highest number of options

awarded) 4,409 € 24.45

Options held by the issuer, exercised during the fiscal year, by the top ten

employees of Crédit du Nord Group (the number indicated is the highest number of

options exercised) 112 € 44.81

* A single exercise in 2009



Table 10

SITUATION OF THE SENIOR MANAGEMENT CORPORATE OFFICERS

Dates of mandates

Employment contract

with Crédit du Nord (1)

Supplementary

pension plan (2)

Compensation or

benefits due or liable

to be due as a result of

the termination of the

mandate or a change

in position

Compensation

relative to a non-

competition clause

start end yes no yes no yes no yes no

Alain PY

Chairman and CEO 2002 2009 X X X X

Marc BATAVE

Executive Vice Chairman 2008 2009 X (3) X X X

Alain CLOT

Executive Vice Chairman 2008 2009 X X X X

(1) As regards the combination of a corporate mandate with an employment contract, the only positions addressed by the AFEP/MEDEF recommendations are Chairman of the

Board of Directors, the Chairman and Chief Executive Officer, and the Chief Executive Officer of companies with a Board of Directors.

(2) Detailed information on the supplementary pension plans is provided in the section entitled «Information on the corporate officer».

(3) Employment contract through to October 31, 2008, suspended since the start of the mandate


3 I Individual fi nancial statements IStatutory Auditors’ Report on the Financial Statements

� Statutory Auditors’ Report on the Financial

StatementsYear ended december 31, 2009


In compliance with the assignment entrusted to us by your

annual general meeting, we hereby report to you, for the year

ended December 31, 2009, on:

� the audit of the accompanying financial statements of

Crédit du Nord;

� the justification of our assessments;

� the specific verifications and information required by law.

These financial statements have been approved by the

board of directors. Our role is to express an opinion on

these financial statements based on our audit.

Z I. Opinion on the financial statements

We conducted our audit in accordance with professional

standards applicable in France; those standards require that

we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material

misstatement. An audit involves performing procedures,

using sampling techniques or other methods of selection, to

obtain audit evidence about the amounts and disclosures in

the financial statements. An audit also includes evaluating

the appropriateness of accounting policies used and the

reasonableness of accounting estimates made, as well as the

overall presentation of the financial statements. We believe

that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion.

In our opinion, the financial statements give a true and fair

view of the assets and liabilities and of the financial position

of the company as at December 31, 2009, and of the results

of its operations for the year then ended, in accordance with

French accounting principles.

Without qualifying our opinion, we draw your attention to

the matter set out in Note 1 to the financial statements,

which details changes in accounting methods resulting from

the application, as from fiscal year 2009, of the new CRC

accounting regulation on the valuation of swaps.

Z II. Justification of our assessments

The accounting estimates used to prepare the individual

financial statements as at December 31, 2009 were made in a

persistently unfavourable economic and market environment.

It is in this context that, in accordance with the requirements

of Article L. 823-9 of the French Commercial Code relative to

the justification of our assessments, we bring to your attention

to the following matters:

� In preparing the financial statements, as indicated in

Note 1 to the financial statements, your Company makes

provisions to cover the credit risks which are inherent

to its activities. Bearing in mind the specific context of

the financial crisis, we have reviewed and tested the

procedures implemented by Management to identify and

assess non-recovery risks and determine the amount of

individual and collective provisions necessary.

This is a free translation into English of the statutory auditors’ report on the financial statements issued in French and it is provided

solely for the convenience of English-speaking users.

The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or

not. This information is presented below the audit opinion on the financial statements and includes an explanatory paragraph

discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were

considered for the purpose of issuing an audit opinion on the financial statements taken as a whole and not to provide separate

assurance on individual account balances, transactions or disclosures.

This report also includes information relating to the specific verification of information given in the management report and in

the documents addressed to the shareholders.

This report should be read in conjunction with and construed in accordance with French law and professional auditing standards

applicable in France.


I Individual fi nancial statements IStatutory Auditors’ Report on the Financial Statements

� In the specific context of the current financial crisis, as

detailed in Note 1 to the financial statements, your

company uses internal models to measure financial

instruments that are not listed on active markets. Our

procedures consisted in reviewing the control procedures

for the models used, assessing the underlying data and

assumptions, and verifying that the risks and results

related to these instruments were taken into account.

� Also, in this context, we have reviewed the control

procedures relating to the identification of financial

instruments that can no longer be traded on an active

market or for which market parameters could no longer

be observed, and the methodology used for their valuation

as a consequence.

� In preparing its financial statements, your company

also made significant accounting estimates, using the

methods described in Note 1 to the financial statements.

These estimates notably relate to the valuation of equity

investments and portfolio securities, as well as pension

commitments and other post-employment benefits.

Bearing in mind the specific context of the crisis, we have

reviewed and tested the procedures implemented by

Management, the assumptions and parameters used, and

ensured that these accounting estimates are based on

documented methods in accordance with the principles

described in Note 1 to the financial statements.

These assessments were made as part of our audit of

the financial statements taken as a whole and, therefore,

contributed to the opinion we formed which is expressed in

the first part of this report.

Z III. Specific verifications and information

We have also performed, in accordance with professional

standards applicable in France, the specific verifications

required by French law.

We have no matters to report as to the fair presentation and the

consistency with the financial statements of the information

given in the management report of the Board of Directors,

and in the documents addressed to the shareholders with

respect to the financial position and the financial statements.

Concerning the information given in accordance with the

requirements of article L. 225-102-1 of the French Commercial

Code (code de commerce) relating to remunerations and

benefits received by the directors and any other commitments

made in their favour, we have verified its consistency with

the financial statements, or with the underlying information

used to prepare these financial statements and, where

applicable, with the information obtained by your company

from companies controlling your company or controlled by

it. Based on this work, we have formulated the following

observation on the accuracy and fairness of this information:

this information does not include all of the compensation and

benefits paid by the company controlling your company to the

corporate officers for their mandates, duties or assignments

other than those exercised at or for Crédit du Nord Group.

In accordance with French law, we have verified that the

required information concerning the purchase of investments

and controlling interests and the identity of the shareholders

and holders of the voting rights and mutual shareholders has

been properly disclosed in the management report.







3 I Individual fi nancial statements IStatutory Auditors’ Report on Related Party Agreements and Commitments

� Statutory Auditors’ Report on Related Party

Agreements and Commitments Year ended december 31, 2009


In our capacity as Statutory Auditors of your company, we hereby

report on certain related party agreements and commitments.

Z Agreements and commitments authorized during the year

In accordance with Article L. 225-40 of the French Commercial

Code, we have been advised of certain related party agreements

and commitments which received prior authorization from your

Board of Directors.

We are not required to ascertain the existence of any other

agreements and commitments but to inform you, on the basis

of the information provided to us, of the terms and conditions of

those agreements and commitments indicated to us. We are

not required to comment as to whether they are beneficial or

appropriate. It is your responsibility, in accordance with Article

R.225-31 of the French commercial code (Code de Commerce),

to evaluate the benefits resulting from these agreements and

commitments prior to their approval.

We performed those procedures which we considered

necessary to comply with professional guidance issued by the

national auditing body (Compagnie Nationale des Commissaires

aux Comptes) relating to this type of engagement. These

procedures consisted in verifying that the information provided

to us is consistent with the documentation from which it has

been extracted.

1. With Société Générale, shareholder

of your company

Nature and purpose

Pooling of IT infrastructures.

Conditions

In the interest of generating Groupwide synergies, a sub-

contracting agreement with a Société Générale department

(GTS) was developed in the first half of 2009 and implemented

on August 1, 2009. This sub contracting agreement pertained

to the deployment, production and maintenance of IT technical

infrastructure services, and involved the invoicing in euros of

expenses incurred by GTS in 2009. Your Board of Directors,

which met on July 23, 2009, authorized the signing of the

necessary agreements for the implementation of this agreement.

The invoicing of the services rendered in 2009 totalled

EUR 3.2 million without tax.

2. With Star 41, now Etoile Gestion Holding

Nature and purpose

Contribution of Etoile Gestion shares to holding company

Star 41.

Conditions

This contribution, authorized by the Board of Directors’ meeting

of October 22, 2009, took place within the framework of the

merger of the asset management activities of Société Générale

and Crédit Agricole. Crédit du Nord and its subsidiaries

contributed the shares they held in Etoile Gestion (Crédit du Nord

Group’s asset management company) to holding company

Star 41, renamed Etoile Gestion Holding at the end of 2009.

In exchange, Crédit du Nord and its subsidiaries received a

3% shareholding in Crédit Agricole Asset Management Group

(Amundi).

The contribution took place at the real value of the shares, i.e.

EUR 107,594,800 for Crédit du Nord, resulting in a book capital

gain of EUR 87,757,944.80.

3 With Société Générale, shareholder

of your company

Nature and purpose

Protocol signed between Société Générale, Société Générale

Asset Management, Crédit du Nord and Star 41.

This is a free translation into English of a report issued in French and it is provided solely for the convenience of English

speaking users. This report should be read in conjunction with and construed in accordance with French law and professional

standards applicable in France.


I Individual fi nancial statements IStatutory Auditors’ Report on Related Party Agreements and Commitments

Conditions

Within the framework of the creation of Amundi, your Board

of Directors, which met on October 22, 2009, authorized the

signing of a protocol defining the rules between the different

parties. Consequently, Crédit du Nord assumes responsibility

for the provisions of the Framework Agreement, Guarantee

Agreement and Shareholders Agreement, for which Société

Générale and SGAM served as guarantors of its commitment

towards the entities of Crédit Agricole Group.

In addition to the terms of management of Star 41’s stake in

CAAM, the protocol establishes Société Générale’s intent to

purchase shares in Star 41 in favour of Crédit du Nord Group,

and Crédit du Nord Group’s intent to sell the Star 41 shares in

favour of Société Générale.

Z Commitment with no prior authorization

We also hereby report on the commitment covered by Article L.

225-42 of the French Commercial Code.

Our role is to advise you, on the basis of the information provided

to us, of the terms and conditions of these agreements and

commitments and of the reasons for which authorization was

not requested.

In accordance with Article L. 823-12 of the French Commercial

Code, we inform you that this commitment did not receive prior

authorization of your Board of Directors, was not, by omission,

brought into compliance with the provisions of Law No. 2007-

1223 of August 21, 2007. This authorisation was given after the

fact by your Board of Directors on February 17, 2010.

With Mr. Marc BATAVE, Deputy CEO

Nature and purpose

Pension commitments in favour of Mr. Marc Batave.

Conditions

Mr. Marc BATAVE holds an employment contract with Crédit

du Nord, the application of which was suspended during his

appointment as Deputy CEO in November 2008 and for the term

of his corporate mandate.

During the term of his corporate mandate, Mr. Marc BATAVE

shall maintain all of the benefits acquired prior thereto as an

employee of Crédit du Nord. He shall notably maintain the benefit

of the provisions of the supplementary pension plan for senior

group managers established by the Supervisory Board of Crédit

du Nord on September 5, 1996.

This plan guarantees that, at the date on which the pension

benefits are settled by Social Security, beneficiaries shall receive

an additional pension corresponding to the difference between:

� an amount equal to 50% of the average, calculated over the

last five best years out of the last ten years of employment, of

the annual gross sums received for employment with Crédit

du Nord Group, although the amount thus determined may

not exceed 60% of the annual contractual compensation for

these same years;

� if less, the total of the pension plans (excluding increases for

large families) and other income acquired from Social Security,

of any other basic plans, of any other statutory retirement

plans by distribution or capitalisation, of any compensation

received for dismissible positions after retirement, and of

any compensation received from positions held prior to

employment with the Group.

It has been expressly agreed that during the term of the

mandate, fixed compensation (excluding the annual allocation

linked to the mandate addressed above) and performance-

based compensation, paid during the term of the mandate,

shall be considered as salaried employment periods and

compensations for the determination of the amount of

guarantees provided for by this plan at the appropriate time.

Mr. Marc BATAVE’s mandate as Deputy CEO was renewed

by the Board of Directors on January 7, 2010.







3 I Individual fi nancial statements IGeneral Meeting: Draft resolutions

� Draft resolutions - General Meeting

of Shareholders of May 12, 2010

Z Resolutions within the authority of the Ordinary General Meeting

First resolution

Approval of the consolidated

financial statements

The General Meeting of Shareholders, under the conditions required by Ordinary

General Meetings as to quorum and majority, having been informed of the Statutory

Auditors’ report on the consolidated financial statements, approves the transactions

cited therein, the balance sheet closed December 31, 2009, and the income statement

for fiscal year 2009.

The General Meeting approves the net income after taxes (Group share) of EUR

347,935,000.00.

Second resolution

Approval of the individual

financial statements and

release of the Chairman and

Chief Executive Officer and

Directors from their duties

The General Meeting of Shareholders, under the conditions required by Ordinary General

Meetings as to quorum and majority, having been informed of the Board of Directors’

report and the Statutory Auditors’ general report on the individual financial statements,

approves the transactions cited therein, the balance sheet closed December 31, 2009,

and the income statement for fiscal year 2009. The General Meeting approves the net

income after taxes of EUR 331,356,413.03.

Consequently, the General Meeting fully and without reservation releases the Chairman

and Chief executive Officer and Directors from their mandates for said fiscal year.

Third resolution

Distribution of earnings

The General Meeting, under the conditions required by Ordinary General Meetings as to

quorum and majority, is distributing the net income after taxes of EUR 331,356,413.03.

Given that the legal reserve has been fully allocated, and that net income plus retained

earnings from fiscal year 2008 (i.e. EUR 872,371.84) resulted in total income available for

distribution of EUR 332,228,784.87, the General Meeting is allocating this sum as follows:

– Distribution of a dividend of EUR 323,865,171.00 to shareholders, i.e. a dividend

per share of EUR 3.50;

– Allocation of EUR 8,000,000.00 to the ordinary reserve;

– Allocation of EUR 363,613.77 to retained earnings.

The ordinary reserve will thus be increased from EUR 554,000,000.00

to EUR 562,000,000.00.

For individuals domiciled in France, the dividend is subject to income tax on a progressive

scale and is eligible for the deduction resulting from Article 158-3-2° of the French

General Tax Code, unless the option is taken, prior to depositing the dividends or

income of a similar nature received over the same year, to pay the flat-rate withholding

tax provided for in Article 117 quater of the French General Tax Code.

In accordance with the law, shareholders are hereby reminded that the following

dividends were distributed over the past three years:

– fiscal year 2008: EUR 1.40 per share (1)



(1) Dividend eligible for the 40% tax deduction in favour of individual shareholders or for the flat-rate

withholding tax.

(2) Dividend eligible for the 40% tax deduction in favour of individual shareholders.


I Individual fi nancial statements IGeneral Meeting: Draft resolutions

Fourth resolution

Agreements addressed by

Articles L 225-38 et seq.

of the French Commercial

Code

The General Meeting, under the conditions required by Ordinary General Meetings as

to quorum and majority, has been informed of the Statutory Auditors’ Special Report

on agreements addressed by Articles L 225-38 et seq. of the French Commercial Code

and approves this report.

Fifth resolution

Approval of the co-opting

of a Director

The General Meeting, under the conditions required by Ordinary General Meetings

as to quorum and majority, hereby approves the co-opting of Mr. Jean-François

SAMMARCELLI to replace Mr. Didier ALIX, having resigned, in his duties as Director for

the remaining term of Mr. ALIX’s mandate, i.e. until the General Meeting convened to

approve the financial statements for the fiscal year ended December 31, 2012.

Sixth resolution


of a Director


quorum and majority, hereby approves the co-opting of Mr. Vincent TAUPIN to replace

Mr. Christian POIRIER, having resigned, in his duties as Director for the remaining term

of Mr. POIRIER’s mandate, i.e. until the General Meeting convened to approve the

financial statements for the fiscal year ended December 31, 2010.

Seventh resolution


of a Director


to quorum and majority, hereby approves the co-opting of Mr. Didier ALIX to replace

Mr. Alain PY, having taken his retirement, in his duties as Director for the remaining term

of Mr. PY’s mandate, i.e. until the General Meeting convened to approve the financial

statements for the fiscal year ended December 31, 2011.

Eighth resolution

Appointment of a Director


to quorum and majority, hereby appoints Philippe HEIM as a Director for a term of four

years. His mandate shall expire at the end of the General Meeting held to approve the

financial statements for the fiscal year ending December 31, 2013.

Ninth resolution



quorum and majority, hereby appoints Ms./Mr............... as a Director for a term of four

years. His/her mandate shall expire at the end of the General Meeting held to approve

the financial statements for the fiscal year ending December 31, 2013.

Tenth resolution



quorum and majority, hereby appoints Ms./Mr............... as a Director for a term of four

years. His/her mandate shall expire at the end of the General Meeting held to approve

the financial statements for the fiscal year ending December 31, 2013.

Eleventh resolution

Adjustment of the total

budget for attendance fees


to quorum and majority, having read the Board of Directors’ report, hereby establishes

the annual budget for attendance fees to be paid to the Directors at EUR 65,000 as

from fiscal year 2010, until further notice.


3 I Individual fi nancial statements IGeneral Meeting: Draft resolutions

Z Resolutions within the authority of the Extraordinary General Meeting

Twelfth resolution

Capital increase reserved

for employees

The General Meeting, having noted the provisions of Article 29 of Law 2001-152 of

February 19, 2001 on employee savings, under the conditions required by Extraordinary

General Meetings as to quorum and majority, having read the Board of Directors’

report and the Statutory Auditors’ Special Report, hereby authorises the Board of

Directors, in accordance with the provisions of Articles L. 225-129 and L. 225-138 of

the French Commercial Code and under the terms and conditions of Article L. 443-5

of the French Labour Code, to increase the share capital in one or more transactions at

its own discretion, up to a maximum nominal amount of EUR 7,402,632, via the issue

of shares purchasable in cash and reserved, where applicable in separate tranches,

for the employees and former employees of the Company belonging to a Company

Savings Plan.

The present delegation calls for the shareholders to forego their preferred subscription

rights in favour of the adherents to a Company Savings Plan;

The present delegation is valid for a period of two years as from the present General

meeting.

The General Meeting hereby delegates all powers to the Board of Directors to implement

the present authorisation, within the limit of the legal and regulatory provisions in force,

notably for the purpose of:

� setting the subscription price of new shares, within the legal limits;

� approving all terms and conditions of the transaction or transactions to follow and,

in particular:

– setting, where applicable, the terms and conditions of seniority which the

beneficiaries of the new shares must meet and, within the legal limits, the period

of time granted to subscribers to pay up these shares;

– determining whether or not the subscriptions must be carried out directly or via

a mutual fund;

– deciding the amount of the issue, the duration of the subscription period, the

date of first entitlement to dividends and, in general, all terms and conditions of

each issue;

� at its own discretion, after each capital increase, deducting the expenses of the

capital increase from the amount of the associated premiums and withdrawing the

necessary sums from this amount to raise the legal reserve to 10% of the new capital;

� carrying out all related acts and formalities required to record the completion of each

capital increase in the amount of the shares actually acquired, making any related

amendments to the by-laws and, in general, taking any necessary actions.

Thirteenth resolution

Powers

All powers are granted to bearers of a copy or extract of the minutes of this General

Meeting of Shareholders to carry out all formalities and publications relating to the

preceding resolutions.


Additional information

General description of Crédit du Nord ............... 204

Group activity ..................................................... 207

Responsibility for the registered document and audit ........................................... 208

Concordance tables ........................................... 209


4 I Additional information IGeneral description of Crédit du Nord

� General description of Crédit du Nord

Z Company nameCrédit du Nord

Z Head Office28, place Rihour - 59000 Lille, France

Z Legal formA limited liability company (Société Anonyme) registered

in France and governed by Articles L. 210-1 et seq. of the

French Commercial Code.

The company has the status of a bank governed by Articles

L. 311-1 et seq. of the French Monetary and Financial Code.

Z Registration numberSIREN No. 456 504 851 RCS Lille

Z APE activity code651 C

Z Creation and expiration dateCrédit du Nord was founded in 1848 under the company

name “Comptoir national d’escompte de l’arrondissement

de Lille».

It adopted the status of a public limited company (société

anonyme) in 1870 and took the name “Crédit du Nord” in

1871.

The date of expiration of the company is set at 21 May 2068,

barring dissolution before this date or an extension thereof

as provided by law.

Z Corporate purpose (article 3 of the by laws)

The purpose of the company, under the conditions set forth

by the laws and regulations applicable to credit institutions,

is to perform with individuals or corporate entities, in France

or abroad:

- any and all banking transactions;

- any and all transactions related to banking transactions,

including, in particular, all investment or related services

as referred to in Articles L. 321-1 and 321-2 of the French

Monetary and Financial Code;

- any and all acquisitions of ownership interests in other

companies.

In accordance with the conditions set forth by the French

Banking and Financial Regulation Committee, the company

may also regularly engage in any and all transactions other

than those mentioned above, including in particular insurance

brokerage.

Generally, the company may, on its own behalf, on behalf

of third parties or jointly, engage in any and all financial,

commercial, industrial, agricultural or real estate transactions

that are directly or indirectly related to the above mentioned

activities or are likely to facilitate the execution thereof.

Z Share capitalThe company’s share capital is set at EUR 740,263,248. It

is divided into 92,532,906 fully paid-up shares with a face

value of EUR 8.

The shares comprising the company’s capital are not subject

to any pledge agreements.

Z Form of sharesAll shares must be registered.

Z Disclosure requirementsNo restrictions have been made to legal provisions concerning

ownership thresholds.

Z Share transfer approvalThe General Meeting of 28 April 1997 ruled that the

assignment, sale or transfer of shares to a third party which

does not have the right to be a shareholder for any reason

whatsoever, except in the event of estate transmission,

liquidation, community property between spouses or transfer

to a spouse or next-of-kin, is subject to the company’s

approval in order to become final.


I Additional information IGeneral description of Crédit du Nord

Z Parent company documentsThe documents relating to Crédit du Nord, including its

bylaws, financial statements, and the reports presented at

its General Meetings by the Board of Directors or Statutory

Auditors, can be consulted at 59, boulevard Haussmann,

75008 Paris, France

Z Fiscal yearFrom 1 January to 31 December.

Z Allocation and distribution of income (Article 22 of the by laws)

Net income for the year is determined in accordance with all

currently applicable laws and regulations. At least 5% of net

income for the year, less previous accumulated losses if any,

must, by law, be set aside to form a legal reserve until this

reserve reaches one-tenth of share capital.

Net income available after said allocation to legal reserves,

as well as any earnings carried over, constitutes «income

available for distribution» from which dividends may be

paid out and/or funds allocated to ordinary, extraordinary or

special capital reserves as approved by the General Meeting

on the basis of the recommendations made by the Board of

Directors.

The General Meeting called to approve the financial

statements of the fiscal year may, in respect of all or part

of final or interim dividends proposed for distribution, offer

each shareholder the choice between payment of the final or

interim dividends in cash or in shares, under the conditions

set forth by the currently applicable legislation. Shareholders

must exercise this option for the entire amount of final or

interim dividends to be received for the fiscal year.

Except in the case of a reduction in share capital, no distribution

to shareholders may take place where shareholders’ equity is

or would as a result of said distribution be lower than the sum

of the company’s share capital plus any legal reserves which,

in accordance with the law or under the company’s bylaws,

are not available for distribution.

Z General Meeting (Article 19 of the by laws)

The General Meeting, if it is regularly constituted, represents

all the shareholders and exercises the powers devolved to

it by law.

It is convened to statute on those issues listed on the

agenda in accordance with the currently applicable legal and

regulatory provisions.

The right to take part in the Meeting is subject to registration

of shares in the name of the shareholder at least five days

before the date of the meeting.

Z Profit-sharingA profit-sharing agreement was signed on 7 June 2007 which

applies to fiscal years 2007 through 2009.

AII payments therein are calculated on the basis of 6% of

gross operating income adjusted for certain parameters.

35% of profit-sharing is paid out in equal amounts (capped

at EUR 4 million), with the remainder paid in proportion to

gross annual salaries excluding performance bonuses. Total

profit-sharing is capped at 8% of gross fiscal remuneration

paid to all company employees in the year in question.

Crédit du Nord makes an additional «employer’s contribution»

where employees pay any profit-sharing into the Company

Savings Plan or into the Company Pension Savings Plan

(PERCO), in accordance with pre-defined scales and limits.


4 I Additional information IGeneral description of Crédit du Nord

Z Change in capital

2009 2008 2007 2006 2005

Shares outstanding 92,532,906 92,532,906 92,532,906 92,532,906 92,532,906

Par value per share (in EUR) 8 8 8 8 8

Share capital (in EUR) 740,263,248 740,263,248 740,263,248 740,263,248 740,263,248

Maximum no. of new shares (*) - - - - -,

Shares outstanding adjusted for potential dilution 92,532,906 92,532,906 92,532,906 92,532,906 92,532,906

Adjusted potential share capital (in EUR) 740,263,248 740,263,248 740,263,248 740,263,248 740,263,248

(*) Created by convertible debt and/or the exercise of stock options.

Z Ownership and voting rights (as at 31 December 2009)

Société Générale 100% (*)

Members of the Management Bodies -

Employees (via specialised fund managers) -

(*) On December 11, 2009, Société Générale became Crédit du Nord’s sole shareholder by purchasing the 20% stake half-owned by Dexia Crédit Local.

Z Double voting rightsNone.

Z Changes in ownership in the last three yearsOn December 11, 2009, Dexia Crédit Local and Dexia Banque Belgique each sold the 10% stakes they held in Crédit du Nord

to Société Générale, making Société Générale the sole shareholder of Crédit du Nord with a shareholding of over 99%.

Z Dividend payments - A dividend per share of EUR 1.55 was paid out in respect of FY 2005.

- A dividend per share of EUR 1.90 was paid out in respect of FY 2006.



- A dividend of EUR 3.50 per share for fiscal year 2009 will be proposed at the General Meeting of May 12, 2010.

Z Stock market informationNot applicable: Crédit du Nord shares are not listed on any markets.


I Additional information IGroup activity

� Group activity

Z Use of patents and licencesNot applicable.

Z Legal risksCrédit du Nord is a credit institution approved in its capacity

as a bank. As such, it may engage in any and all banking

transactions.

It is also authorized to provide any and all investment or

related services as referred to in Articles L. 321-1 and L.

321-2 of the French Monetary and Financial Code. As an

investment service provider, Crédit du Nord is subject to

the applicable regulatory framework, in particular prudential

rules and the controls of the French Banking Commission. All

managers and employees are bound by professional secrecy,

the breach of which is subject to criminal penalties.

Crédit du Nord is also an insurance broker.

Z Litigation and extraordinary circumstances

To date there are no extraordinary circumstances and/or

ongoing litigation that may have, or may have had in the

recent past, a significant effect on the business, income,

financial position or assets and liabilities of Crédit du Nord or

its subsidiaries.

Z Other special risksTo the best of Crédit du Nord’s knowledge, no such risk

currently applies

Z InsuranceGeneral policy

Crédit du Nord’s insurance policy aims to obtain the best

coverage with respect to the risks to which it is exposed.

A certain number of major risks are covered by policies taken

out as part of Société Générale’s Global Insurance Policy,

while others are covered by policies taken out by Crédit du

Nord.

Risks covered by the Société Générale Global

Insurance Policy

1. Theft/fraud

These risks are included in a «global banking» policy that

insures the banking activities of Crédit du Nord and its

subsidiaries.

2. Professional liability insurance

The consequences of any lawsuits are insured under the

global policy. The level of coverage is the best available on

the market.

3. Operating losses

The consequences of an accidental interruption in activity

are insured under the global policy. This policy complements

the business continuity plans.

4. Third-party liability insurance

of Corporate Officers

The purpose of this policy is to cover the company’s managers

and directors in the event of claims filed against them and

invoking their liability.

Risks covered by Crédit du Nord policies

1. Buildings and their contents

Buildings and their contents are insured by a multi-risk policy

with a ceiling of EUR 76,500,000.

2. IT risks

This insurance covers any loss or damages to equipment

(hardware, media) used to process information.

3. Liability insurance linked to operations

This insurance covers any pecuniary damages to third parties

incurred by all persons or equipment deemed necessary for

the company’s operations.

Other risks linked to activities

Within the framework of all Group contracts, Crédit du Nord

offers customers death and invalidity insurance on their loans

(property, consumer loans, etc.).


4 I Additional information IResponsibility for the registered document and audit

� Responsibility for the registered document

and audit

Z Responsibility for the registered document

Vincent TAUPIN, Chief Executive Officer

Z Certification of the person responsible for the registered document

I hereby certify, having taken all reasonable measures to

this end, that to the best of my knowledge, the information

contained in this registered document is true and that there

are no omissions that could impair its meaning.

I certify that to the best of my knowledge, the financial

statements were drawn up in accordance with applicable

accounting standards and present fairly, in all material

respects, the financial position and results of the parent

company and of the entire Group as constituted by the

consolidated companies, and that the Management Report

accurately reflects the development of business, results and

the financial situation of the parent company and of the entire

Group as constituted by the consolidated companies, as well

as a description of the main risks and uncertainties to which

they are exposed.

I received a letter of completion from the statutory auditors in

which they state that they verified the information in respect of

the financial position and accounts presented in the registered

document and that they read through the entire document.

The historic financial information presented in the registered

document was addressed in statutory auditors’ reports,

which appear on pages XXX - XXX and XXX XXX of this

document. In addition, financial information for fiscal year

2008 was incorporated for reference purposes from pages

XXX and XXX-XXX of the 2008 registered document. The

statutory auditors’ reports referring to the 2007, 2008 and

2009 annual company and consolidated financial statements

contain observations.

Paris, April 28, 2010

Chief Executive Officer,

Vincent TAUPIN

Z Statutory auditors

ERNST & YOUNG & AUTRES

Represented by Bernard HELLER

Address:

41, rue d’Ybry – 92200 Neuilly-sur-Seine, France

Date appointed:

May 18, 2006 for a term of six fiscal years

Substitute auditor:

PICARLE et Associés

DELOITTE & ASSOCIÉS

Represented by Jean-Marc MICKELER

Address:

185, avenue Charles de Gaulle – 92200 Neuilly-sur-Seine,

France

Date appointed:

May 18, 2006 for a term of six fiscal years

Substitute auditor:

Société BEAS


I Additional information IConcordance tables

� Concordance tables

Z 1. Table de concordance du Document de Référence

In accordance with Article 28 of CE Regulation No. 809/2004 of April 29, 2004, the following information is included for reference

purposes in the registered document:

� individual and consolidated financial statements for the fiscal year ended December 31, 2008, the related Statutory Auditors’

reports and the Group Management Report appearing on pages 44-200, page 149, page 208 and pages 12-31 of the

registered document filed with the AMF on April 28, 2009 under No. D.09-0323;

� individual and consolidated financial statements for the fiscal year ended December 31, 2007, the related Statutory Auditors’

reports and the Group Management Report appearing on pages 44-167, pages 147-148, pages 174-175 and pages 12-31

of the registered document filed with the AMF on April 25, 2008 under No. D.08-0294.

� the chapters of registered document Nos. D. 09-0323 and D. 08-0294 not listed above are either not applicable

for investors or are covered in another section of this registered document.

Chapters

Page number

of the registered document

1. Responsibility for the registered document 208

2. Statutory auditors 208

3. Select financial information

3.1. Select historic financial information for the issuer,

for each fiscal year 6-7

3.2. Select financial information for interim periods –

4. Risk factors 39-40; 78 to 89; 207

5. Information concerning the issuer

5.1. History and development of the company 204

5.2. Investments 8; 13-14; 30; 100-101

6. Overview of activities

6.1. Core businesses 15 to 20

6.2. Key markets 31; 95-96

6.3. Exceptional events 12; 128; 139; 179

6.4. Degree of issuer dependence on patents, licences, industrial,

commercial, and financial contracts, and upon new manufacturing

processes 207

6.5. Basis of issuer statements concerning its competitive position 31

7. Organisation chart

7.1. Overall description of the Group 10

7.2. List of major subsidiaries 133 to 135; 181-182


4 I Additional information IConcordance tables

Chapters

Page number


8. Buildings, plant and equipment

8.1. Major existing or planned tangible fixed assets 100-101

8.2. Environmental issues with the potential to influence the use

of tangible assets –

9. Overview of financial situation and results

9.1. Financial situation 21 to 29

9.2. Operating income 21 to 27

10. Cash flow and capital

10.1. Information on the issuer’s capital 28; 46 to 52

10.2. Source and amount of the issuer’s cash flow 53

10.3. Information on the issuer’s borrowing conditions

and financing structure 94; 103-104; 110

10.4. Information concerning any restrictions on the use of capital

having influenced or capable of influencing the issuer’s

transactions –

10.5. Information concerning the expected sources of financing

needed to honour the commitments listed

in chapters 5.2 and 8.1 –

11. Research and development, patents and licences –

12. Information on trends 29

13. Profit forecasts or estimates -

14. Administrative, Management and Supervisory bodies and

General Management

14.1. Board of Directors and General Management 4

14.2. Conflicts of interest involving the administrative, management

and supervisory bodies, and General Management 184 to 187

15. Compensation and benefits

15.1. Amount of compensation paid and benefits in kind 188 to 195

15.2. Total amount provisioned or recorded by the issuer

for the payment of pensions and other benefits 130-131

16. Corporate Governance

16.1. Expiry of current mandates 4

16.2. Service agreements binding members

of the administrative bodies –

16.3. Information on the issuer’s Audit Committee

and Compensation Committee 4; 188-189

16.4. Declaration indicating whether or not the issuer complies with

corporate governance policy –


I Additional information IConcordance tables

Chapters

Page number


17. Employees

17.1. Number of employees 23; 122

17.2. Ownership interests and stock options of Directors 190 to 195

17.3. Agreement allowing for employees to invest in the issuer’s capital 206

18. Key shareholders

18.1. Shareholders owning more than 5% of the share capital or voting

rights 206

18.2. Other voting rights 206

18.3. Ownership of the issuer 206

18.4. Agreement of which the issuer is aware, the implementation

of which could lead to a change in ownership at a future date –

19. Transactions with affiliâtes 130-131 ; 133 to 135; 181-182

20. Financial information concerning the issuer’s financial

situation and results

20.1. Historic financial information 46 to 135; 139 to 183

20.2. Pro forma financial information _

20.3. Financial statements 46 to 135; 139 to 183

20.4 Verification of annual historic financial information 136-137; 196-197

20.5. Date of latest financial information 46 ; 142

20.6. Interim financial information –

20.7. Dividend policy 206

20.8. Legal and arbitrage procedures 207

20.9. Significant change in the financial or commercial situation 29

21. Additional information

21.1. Share capital 204

21.2. Articles of incorporation and by laws 204-205

22. Major contracts –

23. Information from third parties, expert certifications

and interest declarations –

24. Documents available to the public 204

25. Information on ownership interests 133 to 135; 181-182


4 I Additional information IConcordance tables

Z 2. Concordance table for the Annual Financial Report

In accordance with Article 222-3 of the General Regulations of the Autorité des Marchés Financiers (French market authority),

the annual financial report mentioned in Section I of Article L.451-1-2 of the French Monetary and Financial Code includes the

items described in the following pages of the Registration Document:

Chapters

Page number


Annual financial report

Certification of the person responsible for the registration document 208

Management report

- Analysis of the results, financial situation, and risks of the parent company

and the consolidated group, and list of powers delegated for the purposes of capital

increases (Article L.225-100 and L.225-100-2 of the French Commercial Code). N.A.

- Information required by Article L.225-100-3 of the French Commercial Code

relating to items liable to have on impact on the public offer. N.A.

- Information relating to share buybacks (Article L.225-211 paragraph 2

of the French Commercial Code). N.A.

Financial statements

- Annual financial statements 139 to 183

- Statutory Auditors’ Report on the Annual Financial Statements 196-197

- Consolidated financial statements 46 to 135

- Statutory Auditors’ report on the consolidated financial statements 136-137

This registration document is available online at www.groupe-credit-du-nord.com

Responsible for the information : Jean-Pierre Bon – Tel : 33 (0)1 40 22 23 91 – Email : [email protected]