43 bank deposits ensure the overall liquidity coverage ratio (LCR) is observed. Loans and receivables from credit institutions reduced by 15% to €1,416million. On the liabilitiesside, shareholders' equitywas€349million, excluding €4.5 million in funds for general banking risks. The change in equity between December 2020 and December 2021 (-6.6million) results fromthe allocation of the 2020 result to retained earnings following thedividend distribution in May 2021 in the context of the constraints imposed by theECB. An additional dividend distribution in December 2021 hasbeendeducted fromretainedearnings, once the ECB constraints have been lifted. The negative impact of the interest rates on our margins was more than offset by very robust brokerage and loan activities. Net banking income, up by 8% compared to 2020, amounted to €119.7 million. The level of operating expenses is up by 8% compared to theprevious financial year and thus reflectsanacceleration of IT and digital investments in a health context that is generally calmer. CFM Indosuez Wealth Management’s separate financial statements show a profit of €24.8 million in 2021 (after income tax for an amount of €4.7 million), integrating the dividends of the wealth management subsidiary (€14.3 million). APPROPRIATION OF INCOME As a reminder: in the context of the Covid-19 pandemic, the European Central Bank (ECB) and the Autorité de ContrôlePrudentiel (ACPR)madestrong recommendations on 27 March 2020 to the banks under their supervision not to distribute dividends until at least the beginning of October 2020 and as long as the coronavirus crisis and its impact on the economy in general and on the activity of the banks' counterparties and, by extension, on the banks themselves, required an adaptation of the distribution mechanism. Consequently, the CFM Indosuez Board of Directors’ meeting on 5 May 2020was unable to propose a payment of dividends, and instead recommended that theOrdinary Annual General Meetingof 19June2020allocate theentire profit for 2019, or a total of €217,552 million, to retained earnings. The Ordinary General Meeting of 11 May 2021, on the proposal of the Board of Directors, decided to distribute 15% of the accumulated profits of the last two financial years, i.e. a dividend amount of €11,614,710 and a unit dividend of €20.27 per share to be paid on 27 May 2021, with the delta of €8,746 million recorded as retained earnings, thus bringing the reserves following thedividend distribution to €226,297,720. In view of the lifting of the distribution constraints on 30 September 2021 by the European authorities and the Autorité de Contrôle Prudentiel, the Board of Directors of CFM IndosuezWealth, at itsmeeting of 14October 2021, proposed that the distribution of an additional dividend be put to the vote of an Ordinary General Meeting to be held on 7 December 2021. The Ordinary General Meeting convened extraordinarily on 7 December 2021, on the proposal of the Board of Directors, decided on a distribution of 35 euros per share to be paid on 13 December 2021. This additional dividend amounting to €20,055,000 was deducted from the free reserves (retained earnings) to the same extent. The Board of Directors meeting of 15 March 2022 has decided to propose to the Ordinary General Meeting to be held on 19 May 2022 that the profit for the financial year be allocated as follows: ALLOCATION OF INCOME Result for the year 2021..................................€24,845,049 Retained earnings fromthe previous year. ..€206,462,865 Proposed dividend amount.............................€24,810,900 Retained earnings following distribution of dividends..................................................€206,497,014 On this basis, the unit dividend will amount to €43.30 per share to be paid on 24 May 2022. The Board of Directors proposes that theMeeting record the balance in retained earnings in the amount of €34,149. Finally, 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. PRESENTATION OF THE 2021 INDIVIDUAL ACCOUNTS OF SUBSIDIARIES SEPARATE/INDIVIDUAL FINANCIAL STATEMENTS OF CFM INDOSUEZ GESTION CFM Indosuez Gestion’s net income amounted to slightly more than€18million in 2021, comparedwith€15.1million in 2020. Revenues increased by 19% compared to the previous year (+€3.5m), with the retrocession base between CFM Indosuez WM and its subsidiary essentially relating to securities revenues, thus following the trend observed in CFM IWM. The Board of CFM Indosuez Gestion on 20 April 2022 proposed that the investment management company’s Annual General Meeting scheduled to be held on 21 June 2022 pay dividends representing at least 95% of its net income for the 2021 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 Indosuez Wealth’s financial statements for 2022.
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