Boursorama: Second Quarter 2013 Results

Regulatory News:

Boursorama (Paris:BRS):

Banking activity in France: record number of accounts opened

• 18,286 new current accounts and 14% increase in the number of accounts to 780,749
• Strong growth in housing loan production, +63% to €171m
• Nearly 460,000 customers in France, +13%

Brokerage: 9% growth in the number of orders traded at group level

• Decrease in traded volumes in Q2-13: Deutsche Börse: -22%; Euronext Paris: -21%; LSE: -8%;
• 1,325,166 orders executed at group level, +9%

Boursorama Banque: 100% mobile bank thanks to the Responsive Web Design technology

• A flexible, identical user experience, regardless of the device used: PC, Smartphones, tablets

Good levels of activity in Germany and Spain, deteriorated situation in the United Kingdom

Group gross operating income guidance maintained at end 2013 ˜ -20/25%

"In a still challenging environment, Boursorama successfully continues to extend its banking offering, simple, inexpensive, available and secure. Today, nearly 460,000 customers rely on us and we are very proud to announce in the second quarter, a new record for opening accounts and housing loan production” stated Marie Cheval, CEO of Boursorama".

Unless otherwise stated, comparisons refer to quarter-on-quarter reported data. Figures are in the process of being audited.

• Group performance

In an economic context still lacking direction and characterised by persistently low rates, the group’s Net Banking Income (NBI) increased by 5% to reach €49.7 million. Brokerage revenues remained stable (9% increase in orders traded at the group level), despite a decrease in volumes executed on European stock exchanges. The media activity in France jumped thanks to the growth in financial and corporate advertising.

Within a context of strong business development, operating expenses increased by 7% to €36.4 million. The increase is mainly due to the ongoing process enhancement plan in the United Kingdom. Other expenses (real estate and IT costs) increased due to the organic growth. As a result, Gross Operating Income (GOI) is flat at €13.3 million. The Group Share of Net Income of the second quarter 2013 reached €8.6 million, up 7% (including an excess tax reversal of €1.7 million made by the German tax administration).

Over the first half of 2013, the group Net banking income rose 3% to €104.2 million. Gross operating income was flat at €30.4 million and the Group share of net income was down 7% at €17.6 million.

Assets under management increased by 11% to reach €17.1 billion.

• France

The France net banking Income in the second quarter 2013 amounted to €38.9 million (+6%), benefitting from the solid commercial momentum of the banking business. It was nonetheless down 12% compared to the first quarter 2013 due to a lower number of orders processed (-15%) and the negative impact of low rates on the interest margin.

• Banking NBI: €24.5 million (+8%), or 63% of NBI France
• Brokerage NBI: €11.3 million (-2%), or 29% of NBI France
• Internet portal revenues: €3.1 million (+16%), or 8% of NBI France

For the second quarter 2013, operating expenses rose 7% to €24.8 million. GOI reached €14.1 million (+4%) and the group share of net income amounted to €8.5 million (+2%).

• Banking activity

Accounts opening at a faster rate, nearly 460,000 clients in France (+13%)

During the second quarter 2013, 18,286 new current accounts were opened (+26%); it is a new record after the one registered in the first quarter (17,340). Strengthened by this commercial momentum, Boursorama Banque has confirmed its status as the first online bank in terms of brand awareness, as evidenced by the strong increase in Top of Mind scores (29% vs. 15%) and spontaneous awareness (43% vs. 30%)¹.

The increase in client franchise comes with higher balance sheet deposits (+11%) to €3.7 billion: current account deposits grew by 13% to €805 million, bank savings account deposits (CSL, LDD, Livret A, etc) also increased by 13% to €2.1 billion and trading account deposits grew by 3% to €717 million.

With €171 million in housing loan production (+63%) in a still declining market² and the good start of the personal loan offering (€6 million in production), the second quarter 2013 once again underpinned the success of Boursorama online credit offerings.

Boursorama Banque: the first bank to offer a 100% mobile subscription

With the Responsive Web Design (RWD) technology, Boursorama innovates to accompany its customers in their daily life: the information portal and the banking site have now a similar content, regardless of the access device (PC, Smartphone, Tablet). Boursorama’s client accesses to all the information available on the boursorama.com website and to the full range of banking products and services, in a simple and legible way in any situation.

Boursorama.com confirms its position as number 1 for economic and financial website information and is the 7^th most visited site in France, all information sites combined, with 29 million monthly visits and 286 million pages viewed each month³.

¹ Source: Smart Test AEGIS Media, baromètre image notoriété, secteur banque en ligne. June/January 2013 comparison
² Market down 2% - Source: Observatoire Crédit Logement/CSA; Monthly report, June 2013.
³ Source: Web traffic statistics reported by the OJD, average of 1^st half 2013.

• International

• In the UK, the number of clients stood at 134,000, deposits were up 6% to €655 million using constant exchange rates, while the volume of orders executed increased by 2% to 221,752 orders. The NBI was down 25% to €4.0 million for the second quarter 2013; mainly due to constraints on the investment of Client Money deposits. General expenses increased significantly (+27%) following the roll-out of the process improvement plan and the internalisation of the IT infrastructure. As a result, the group share of net income amounted to -€2.0 million this quarter.
• In Spain, business progressed significantly: the number of clients stood at 42,000 (+12%) and the number of orders executed registered a record increase of 44%, with nearly 85,000 orders executed; balance sheet deposits grew strongly (+39%) to €106 million. Self Bank still benefits from a growing brand image for its brokerage and online banking businesses. In the second quarter 2013, the NBI was up 27% to €2.3 million and operating expenses were flat at €1.9 million. The group share of net income was positive at €0.2 million.
• In Germany, business increased too with roughly 48,000 clients (+11%) and 335,000 orders processed (+42%). The NBI of the second quarter 2013 increased by 25% to €4.5 million, thanks to a strong number of orders executed. The brokerage business benefitted from the successful launch of the new CFD offering. The performances of the OnVista portal business were, however, below expectations. The group share of net income benefitted from an exceptional item (excess tax reversal made by the tax administration) and reached €1.9 million.

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The quarterly financial information includes this press release and the financial presentation, available at the group's website in the finance section: http://groupe.boursorama.fr

• Appendix

Quarterly consolidated income statement*

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Half year consolidated income statement*

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Business indicators

NBI France by activity

Balance sheet at 30 June 2013*

* Financial information have been submitted to external auditors for their review. External auditors will publish a report on half year financial information as at June 30, 2013. Financial statements reviewed by the Board of Directors on July 30, 2013.

Regulatory capital, RWA and Basel II solvency ratios

Boursorama, part of the Société Générale Group, is a major player in online banking in Europe with more than 640,000 customers, 1,040,801 direct accounts and total assets under management of 16.4bn euros at end 2012. In France, Boursorama is the online bank of reference: more than 425,000 customers, at end 2012, rely on its innovative, simple, inexpensive and secure bank offering. Its portal, www.boursorama.com, is the leading financial and economic online information website. Boursorama is also active in the United Kingdom and in Spain in online banking, under the respective brands Selftrade and Self Bank. In Germany, Boursorama is a major player in brokerage and in financial and economic online information, through its brand OnVista.

Boursorama is listed on NYSE Euronext Paris- compartment B- ISIN: FR0000075228 (BRS) – Reuters: FMTX.LN – Bloomberg BRS FP.

For all information on Boursorama, go to: www.groupe.boursorama.fr