CFM INDOSUEZ Wealth Management - 2020 Annual Report

34 Given the persistent uncertainty regarding the economic effects of the coronavirus pandemic, the ECB expects dividends to remain below 15% of accumulated profits for the 2019 and 2020 financial years. Consequently, the CFM Indosuez Wealth Board of Directors decided to propose, at the General Meeting held on 11 May 2021, a payment of 15%of accumulated profits for the past two financial years, or a dividend of €20.27 per share. Moreover, the Board of Directors wishes to conserve the possibility of paying an interim dividend before the end of the financial year on the basis of a balance sheet duly certified by the Company’s Statutory Auditors. APPROPRIATION OF INCOME Accumulated profit from the 2019 and 2020 financial years €77,429,416 Application of the 15%distribution rate to this total €11,614,412 Retained earnings €217,551,630 Amount of proposed dividends €11,614,710 Retained earnings following distribution of dividends €226,297,720 On this basis, the unit dividend will amount to €20.27 per share to be paid on 27 May 2021. The Board of Directors proposes that shareholders record the balance in retained earnings, in the amount of €8,746 million. PRESENTATION OF THE 2020 INDIVIDUAL ACCOUNTS OF SUBSIDIARIES • SEPARATE FINANCIAL STATEMENTS OF CFM INDOSUEZ GESTION CFM Indosuez Gestion’s net income amounted to slightlymore than €15million in 2020, comparedwith €14.8 million in 2019. The Board of CFM Indosuez Gestion on 15 April 2021 proposed that the investmentmanagement company’s Annual General Meeting scheduled to be held on 21 June 2021 pay dividends representing 95% of its net income for the 2020 financial year, 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 IndosuezWealth’s financial statements for 2021. It should be specified that the non-controlling interest in the entity was acquired by CFM IndosuezWealth at end 2020, ensuring 100% ownership. SEPARATE FINANCIAL STATEMENTS OF CFM INDOSUEZ CONSEIL EN INVESTISSEMENT The net income of CFM Conseil en Investissement came to -€0.1 million in 2020, in linewith 2019 results. Revenuewas down -€0.2million comparedwith 2019, due to a decline in sales activity. Operating expenses were lower than in 2019 due to the impact of the health crisis (decrease in mission allowances and business travel costs, exceptional debt waiver of 50% of the amount of the services agreement between CFM Indosuez and its subsidiaries, etc.). The sole shareholder of CFM Indosuez Conseil en Investissement SASU will propose that negative income for the period be charged against retained earnings. A capital increase of €975,000 (650 shares at €1,500) was carried out in the fourth quarter of 2020. This transaction served to repay the loan granted by CFM IndosuezWealthManagement to its subsidiary in 2013 following the acquisition of a portfolio of life insurance policies. 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 implementationof a formal, exhaustive control system meeting the latest regulatory requirements andGroup rules is the main objective of the Permanent Control department. At CFM Indosuez Wealth Management, the internal control system is applied in accordancewith theOrder of 3 November 2014 on the internal control of companies active in banking, payment services and R E PORT OF THE BOARD OF D I R ECTOR S AT THE ORD I NARY GENE R AL ME E T I NG OF 1 1 MAY 2 0 2 1