Very solid 2024 interim results driven by a record activity of local authority lending

Higher recurring income in a volatile economic environment

• Higher recurring net banking income at EUR 103 million (+4% vs 1H23) reflecting the excellent level of activity since 2023
• Operating expenses at EUR 57 million (-8% vs 1H23), resulting from the end of the constitution period of the SRF and operational costs under control (-6% vs 1H23)
• Cost of risk under 1 basis point
• Recurring net result at EUR 31 million (+15% vs 1H23)

Outstanding level of lending to local authorities

• Loan origination of EUR 2.8 billion (+157% vs 1H23), with a particularly sharp increase in loans to large local authorities (EUR 2.1 billion in 1H23)
• Significant growth in use-of-proceeds loans at EUR 976 million (+49% vs 1H23)
• Since 2013, more than EUR 50 billion in loans granted to the French local public sector, including almost EUR 45 billion to local authorities
• Acquisition of loans up to EUR 2.8 billion (+27% vs 1H23)
• Dynamic activity anticipated in 2H24, supported by increasing investment budgets for local authorities

Dynamic export credit refinancing

• 2 transactions for a total amount of EUR 1.7 billion (vs EUR 2.8 billion in 1H23)
• “Deal of the year Central Asia 2023” award at the TXF Global export forum in June 2024
• Very positive business outlook supported by around 170 deals under assessment for a total amount of nearly EUR 68 billion

A very robust financial structure

• Consistently low credit risk metrics with a residual level of past dues of EUR 2 million and a non-performing exposure rate of 0.2% of assets, reflecting the excellent quality of asset portfolio
• CET1 ratio at 37.3 % (37.5% in December 2023), more than 4 times higher than the minimum requirement
• Strong liquidity position with LCR at 270% and NSFR at 123.5% and the successful implementation of long-term financing programs

Implementation of the ESG roadmap

• EUR 512 million of green loans to the French local public sector
• EUR 464 million of social loans in favor of public hospitals and socially driven investments of local authorities

Following the Board meeting on 6 September 2024, Philippe Mills, Chief Executive Officer of Sfil, stated « We achieved an excellent performance in the first half of 2024, driven by a historic level of activity in public sector lending activity. We are fully aligned with the trajectory of our “Objective 2026” strategic plan. All of our employees are fully committed to working alongside our clients to support them in their projects in favor of net-zero transition. »

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