RCI Banque

2019: ANOTHER RECORD YEAR FOR RCI BANK AND SERVICES DESPITE A DOWNTURN IN THE AUTOMOTIVE MARKET - Seite 3

The total cost of risk, which includes the write-off of loans granted to the startup Marcel for €11.4 million (0.02% of APA), remains controlled at 0.37% of APA, compared with 0.33% in 2018, confirming a robust underwriting and collection policy.

Pre-tax income came out at €1,327 million at end-2019 (compared with €1,215 million in 2018). Excluding items relating to the sale of mobility startups to Renault M.A.I., pre-tax income increased by €62 million. This confirms RCI Bank and Services’ ability to pursue its profitable growth momentum.

THE GROUP CONTINUES TO DIVERSIFY ITS REFINANCING POLICY

RCI Bank and Services issued the equivalent of €2.9 billion on the public bond market in senior format. The group successively launched a 5.5-year fixed-rate issue of €750 million, a dual-tranche issue of €1.4 billion (a 4-year fixed-rate for €750 million, a 7-year fixed-coupon for €650 million) and a 3.5-year fixed-rate issue of €600 million. In parallel, the company issued CHF 200 million at a fixed rate over 5 years, a transaction that will serve both to diversify the investor base and finance assets denominated in this currency.

RCI Bank and Services also issued a subordinated Tier 2 bond of €850 million. With a ten-year contractual maturity, this issue can be reimbursed after 5 years and strengthens the solvency ratio.

In secured refinancing, RCI Bank and Services placed a public securitization backed by automotive loans in Germany for €975.7 million, of which €950 million in senior notes and €25.7 million in junior notes.

This alternation of maturities, coupon types and issue formats is an integral part of the strategy to diversify financing sources, led for several years by the group, and serves to reach the greatest number of investors.

Deposits from retail customers in France, Germany, Austria, the UK and Brazil⁶ (savings accounts and term deposits) totalled €17.7 billion at end-December 2019, up from €15.9 billion at end-December 2018, and accounted for nearly 35% of net assets at end-December 2019.

RCI BANK AND SERVICES CLOSELY ADDRESSES THE NEW BEHAVIOUR OF ALLIANCE BRAND CUSTOMERS

RCI Bank and Services continued to develop its e-payment offer in 2019. 400,000 transactions were realized by Alliance brands customers via the RCI e-payment solution, up 27.4% compared to 2018. RCI Bank and Services notably supported the launch of New ZOE, Clio 5, New Captur and New Juke through online pre-bookings of vehicles. After the UK, Dacia customers in Germany can now buy and finance the model of their choice 100% online. RCI Bank and Services also supported the launch of the new Renault Arkana in Russia by providing customers with a fully digitalized purchase process.