SFIL - Half-year financial report 2020

The general context for the half year was the COVID-19 pandemic, including the effects on SFIL's business which are covered in the report body, notably in the sections devoted to highlights, risk management, results of operations and in the notes to the condensed consolidated financial statements. The items relating to the context characterizing SFIL are recalled below.

SFIL was authorized as a bank by the Autorité de contrôle prudentiel et de résolution (ACPR) on January 16, 2013. Since SFIL was created, the French Republic has played a special role in its operation by contributing 75% of its capital and, as the reference shareholder, assuring prudential authorities of its strong commitment to provide financial support, in keeping with current banking regulations. The Caisse des dépôts et consignations (CDC) and La Banque Postale (LBP) respectively hold 20% and 5% of the Company’s capital. This entirely public shareholder structure, which will remain so in the project consisting of entrusting control of SFIL to the Caisse des Dépôts, is one of the characteristics of public development bank including SFIL. SFIL holds 100% of the capital of Caisse Française de Financement Local (CAFFIL), its sole subsidiary, a specialized financial institution with the status of a société de crédit foncier (SCF) governed by articles L.513-2 et seq. of the Monetary and Financial Code.

SFIL lies at the heart of a system that serves the State’s commitment to provide French local government entities and public healthcare institutions with continuous and efficient access to long-term bank financing, alongside the offers of commercial banks and French and European public institutions operating in this sector. This system, which was launched within the framework of the European Commission's decision of December 28, 2012, makes it possible to refinance loans from La Banque Postale to the French local public sector. It has shown its strong resilience in the context of the crisis due to the COVID-19 pandemic.

Similarly, in 2015, the State entrusted SFIL with a second public interest mission: to refinance buyer credits guaranteed by Bpifrance Assurance Export (BPIAE) in the name and on behalf of the French Republic, which helps increase the competitiveness of large export contracts negotiated by French companies. The aim is to provide market financing in volumes and for periods suited to large export credits, at conditions that are those of the best issuers of French covered bonds, by building on the issue capabilities of SFIL and its subsidiary CAFFIL. This refinancing system, authorized by the European Commission on May 5, 2015, renewed for a 7-year term on May 7, is open to all banks that are active in the European Union and partners of French exporters for their credits guaranteed by Bpifrance Assurance Export in the name and on behalf of the French Republic. As regards the plan announced in March 2018 to extend the benefit of SFIL’s export credit refinancing system to loans eligible for the guarantee on projects with a strategic interest for the French overseas economy, the decree covering loan insurance and the finance law relating to the enhanced guarantee came into force in December 2018. The next stage is European Commission approval.

The report is accessible here.