CFM INDOSUEZ Wealth Management - 2019 annual report

34 CFM Indosuez Wealth Management for 2019 to retained earnings. The Board of Directors will issue its recommendations for paying dividends to shareholders in the second half of 2020. It could recommend the payment of an extraordinary dividend charged against retained earnings. The Board of Directors’ meeting on 5 May 2020 also authorised the Chairman of the Board of Directors and the Chief Executive Officer to make all necessary changes to the rules regarding how the Annual General Meeting is held and how voting is organised, in accordance with Monegasque legislation adopted in response to the Covid-19 pandemic, and to notify such changes in communications on the CFM Indosuez Wealth website. The presentation of CFM Indosuez Wealth Management’s separate financial statements (under French accounting standards) is amended in light of the above. Accordingly, and pursuant to the decision described above, we propose the following appropriation of income: Net income for the year ended 31 December 2019 €57,068,616 Retained earnings €160,483,014 Total amount €217,551,630 The total amount to be recorded in retained earnings comes to € 217,551,630. presentation of the subsidiaries ’ 2019 separate financial statements Separate financial statements of CFM Indosuez Gestion The Investment and Advisory business line was transferred from CFM Indosuez Wealth Management to its subsidiary CFM Indosuez Gestion on 1 January 2018. CFM Indosuez Gestion’s net income amounted to € 14.8 million in 2019, compared with € 16.6 million in 2018. The meeting of the Board of CFM Indosuez Gestion of 3 April 2020 proposed that the investment management company’s Annual General Meeting scheduled to be held on 22 June 2020 pay dividends representing 95% of its net income for the 2019 financial year, amounting to € 14.1 million, with the balance taken to retained earnings. The impact of this dividend payment from the subsidiary to its parent company will be reflected in CFM Indosuez Wealth’s financial statements for 2020 Separate financial statements of CFM Indosuez Conseil en Investissement The net income of CFM Indosuez Conseil en Investissement came to - € 0.1 million in 2019. Revenues rose by € 0.5 million on the previous year following changes to commission fees paid by CFM Indosuez Wealth (under MiFID II). Expenses were in line with budget forecasts. On 25 June 2020, the sole shareholder of CFM Indosuez Conseil en Investissement SASU will propose that negative income for the period be charged against retained earnings. post - balance sheet events not liable to impact the financial statements closed on 31 december 2019 The Covid-19 epidemic is expected to have a significant negative impact on the global economy, which will worsen if it is not contained quickly. The epidemic has caused supply and demand shocks, leading to a marked slowdown in activity due to the impact of lockdown measures on consumer spending and caution among economic agents, as well as production difficulties, disruptions to supply chains in some sectors and a drop in investment. This will lead to a sharp decline in growth or technical recession in many countries. The consequences will affect the activities of banks’ counterparties and therefore banks themselves. Crédit Agricole Group, which announced support measures for its business and individual clients during the crisis and which has committed to observe the measures announced by the government, expects to be impacted in terms of its revenue, cost of risk and net income. CFM Indosuez Wealth could also be impacted. It is impossible to predict the extent or length of the impact at this stage. internal control Presentation of risk exposure and risk management Internal control system: The bank adjusts its internal control system to changes in its activity and regulations. The implementation of a formal, exhaustive control system meeting the latest regulatory requirements and Group rules is the main objective of the Permanent Control department.