000 euros in France and double at the United Kingdom

Each year confirms the strength and profitability of French banks. More than 21 billion euros of net profits from the 6 in total, most major groups in 2005, against nearly 16 billion euros a year earlier. Impressive growth of 30 which is the result of a good control of costs and the risk to his charge lower but a carrier conditions in most occupations, including in the activities of"market" and capital asset management also. "2005 was shown for the whole of sector performance in substantial growth in all occupations, which proves the success of the Universal Bank model French chosen by all institutions a decade ago", said Renaud de Labarre, responsible of the pole Bank and Finance of the Eurogroup consulting firm.

A price of limited risk

Except rollover conditions, 2006 looks favourable, especially as the cost of the risk should remain limited. "The share of commitments has tended to stagnate, or even to decline over the past ten years for the benefit of the development of capital markets, said Pierre Pouyfaucon, responsible for the activity banks in France in Accenture.". The entry into force of the new Basel II prudential standards and improvement of internal controls have helped strengthen the steering of risk. Moreover, banks largely transferred these risks through the mechanisms of securitization of receivables and derivatives, other institutional as insurance companies.

On the occasion of their quarterly results this week, Credit Agricole SA, Société Générale and BNP Paribas should confirm their seats of very good students in the European class, even if profitability is indented relative to their competitors British or Spanish. And behind these three heavyweights, if performance is less dramatic, the potential for improvement in appears that greatest. "Banks Epargne and Banques Populaires have significant margins of manoeuvre to improve their exploitation coefficient", note and Renaud de Labarre. To ensure the relay of growth in retail banking, French groups also understood the interest to expand their network beyond the hexagonal borders. Recent months have marked a turning point for BNP Paribas (partnership with Chinese Nanjing City Bank, acquisition of UkrSibbank Ukrainian and Italian Banca Nazionale del Lavoro), Société Générale (the Croatian Splitska purchase) and Crédit Agricole (resumption of Egyptian EAB and Ukrainian Index Bank). "For banks, the development in the international retail store within less than a search for economies of scale and integration logic of diversification of income, explains Renaud de Labarre." Watch the speech from BNP Paribas on Banca Nazionale del Lavoro. This is not to create a European retail bank but a second domestic market. "Cross-border transactions, multiply two years should accelerate this year.

Regulations relaxed

First, the regulatory constraints are less strong. "Regulation starts to homogenizing for activities such as the consumer credit, said Pierre Pouyfaucon.". And the prospects for growth in the countries of Eastern and southern Europe do not leave anyone indifferent. The per capita consumption credit outstanding do not exceed 500 EUR in Czech Republic or Poland when they reach 2.000 euros in France and double at the United Kingdom. "Then, the threat of acquisition of European targets by Americans such as Citigroup, Morgan Stanley or the General Electric financial center acts as a catalyst. Finally, the French, Spanish or British establishments the domestic market is largely restructured, have kidneys strong enough to carry out acquisitions at least average size in European countries where the banking sector is still fragmented, as in Germany and Italy.