SFIL Annual financial report 2018

1 I Management report 12 SFIL Annual Financial Report 2018 1.2 – BREAKDOWN OF OUTSTANDING PUBLIC SECTOR LOANS AND SECURITIES The outstanding loans and securities on SFIL’s balance sheet totaled EUR 56.2 billion, of which EUR 52.9 billion to public sector. The majority of outstandings in 2018 were with the French public sector, which accounted for 87% of the total. New loans are now exclusively originated with the French local public sector. Outstanding loans in respect of the export credit activity accounted for EUR 1.1 billion on the balance sheet as of December 31, 2018. EUR 2.1 billion in collateral at end-2018, down EUR 0.3 billion compared with end-2017. –– Other changes in assets correspond mainly to scheduled repayments on the loan and securities portfolio for EUR 4.8 billion, the decrease in the balance of the Banque de France account for EUR -0.6 billion and the early repay‑ ment of assets for EUR 0.1 billion. It should be noted that as of December 31, 2018, the SFIL Group held EUR 4.0 billion in cash surplus investment secu‑ rities (banking sector and European public sector) 85.9% 9.2% 4.9% 87.2% 8.8% 4.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 100% 90% France Italy Other country 12/31/2017 (1) 12/31/2018 (1) These are proforma 2017 figures including public sector securities but excluding banking securities as of December 31, 2017. Excluding France, the two largest exposures concerned local government entities in Italy and central government entities in Italy (9%) and Switzerland (1%). Loans and securities with counterparties outside France corresponded to granular and geographically diverse exposures to public sector entities. These exposures, excluding cash investments, were origi‑ nated in the past and are now in run-off. France’s relative share was up slightly from 2017. The French local public sector is the only area of activity that continued to grow, for the following reasons: •  the acquisition of the loans granted by La Banque Postale to local government entities and public hospitals; CAFFIL acquired EUR 3.4 billion of loans in this area in 2018; •  the new loans granted within the framework of the reduction of the sensitivity of structured loans, for a total of EUR 0.2 billion; • drawdowns on export loans for EUR 0.9 billion. For France’s relative share of 87% in 2018, the following graph shows the breakdown of loans and securities granted to the French local public sector by type of counterparty. 5% 3% Public hospitals Departments Regions 15% 13% 5% French Republic (export credit) Others 59% Municipalities French public sector loans and bonds