Boursorama: Third quarter 2012 results

Regulatory News:

Boursorama (Paris:BRS):

Number of orders from individuals down compared with an exceptional Q3 2011

• 1.2 million orders executed for the group in Q3 2012 (-33%)
• 3.9 million orders executed for the group over the first nine months of 2012 (-23%)

Success of the strategic focus on housing loans in France

• Doubling of online financing applications (+122%) in Q3 2012 to 10,000
• Doubling of loan production (+124%) in Q3 2012 to 134 million euros

Continued growth in banking activity in France

• Around 13,000 new current accounts and more than 11,000 new bank savings accounts
• 3.4 billion euros in balance sheet deposits (+17%) supported by regulated passbook account deposits: +59%
• 7 million payments by card in Q3 2012, +35%
• 30% additional mobile banking users compared to Q2 2012
• Only online bank with a presence in Windows 8

Result close to breakeven for international subsidiaries

Commenting on the release of the third quarter 2012 results, Inès Mercereau, Chairwoman and Chief Executive Officer of Boursorama stated: "The third quarter of 2012 was marked by the success of our housing loan offering, which doubled in quarterly production, the continued growth in online banking in France and the weakness of brokerage activities. Yet the adaptation of the cost structure of Boursorama initiated last year, allows the company to post a quarterly Gross Operating Income up 3% and a Group share of net income of 10 million euros."

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

• Group performance

In comparison with the third quarter of 2011 which recorded exceptionally active financial markets, Boursorama recorded a number of individuals’ orders declining in the third quarter with 1.2 million orders executed for the group (-33%). Between the second and third quarter 2012, all European indices grew (CAC 40 +7.5%, DAX 30 +6.8%, IBEX 35 +5.3%, FTSE 100 +3.5%) however, the volumes were very low¹: thus Boursorama recorded 3.9 million orders executed for the group in the first nine months of 2012, a 23% reduction compared to the first nine months of 2011.

At the same time, the banking franchise continued to grow in France, driven by the continued acquisition of new day to day banking customers and the success of the housing loan offering.

For third quarter 2012, the Boursorama group's Net Banking Income was down 11% at 48.9 million euros. The adaptation of the cost structure, initiated last year in order to preserve the competitiveness of the company resulted in a 16% reduction of operating expenses to 32.9 million euros and allowed to record a gross operating income (GOI) of 16.1 million euros, up 3%. The third quarter's Group share of net income was 10.0 million euros, down 3%.

Over the first nine months of 2012, Group NBI was down 10% at 150.6 million euros. GOI was down 8% at 46.7 million euros, and the Group share of net income was 28.8 million euros, a 13% reduction.

• France

NBI for France for third quarter 2012 amounted to 38.5 million euros, down 13%.

• Banking NBI: 25.8 million euros (+11%), or 67% of NBI for France
• Brokerage NBI: 10.8 million euros (-41%), or 28% of NBI for France
• Revenues from the Internet portal activity: 1.9 million euros (-23%), or 5% of NBI for France

The adjustment of the cost structure which mainly resulted in the reduction of marketing expenses (-52% in the third quarter and -25% over the first nine months), and the full impact of the social plan allowed the company to reduce operating expenses by 22% to 22.3 million euros for the third quarter 2012. The 4% growth in GOI to 16.1 million euros illustrated a satisfactory operating performance. The Group share of net income was up 3%, reaching 10.5 million euros.

• Banking activity

Success of the strategic focus on housing loans

Boursorama's housing loan production doubled in third quarter 2012 to 134 million euros in a declining market². This performance resulted from the highlighting of the simplification of processes, quality of service, rapidity of response (immediate provisional response), a targeted communication campaign during August and September and finally a price proposal which was in the lower range of the market³. The success of this offering demonstrates that housing loan has a rightful place in the offering of a 100% online bank.

Consequence of this positioning, Boursorama recorded more than 10,000 online financing applications during the third quarter 2012, a 122% increase. This rise occurred with a similar risk profile: as in 2011 8% of loan applications received were financed, the average amount of loans granted was stable, the average duration did not evolve, and Crédit Logement granted its guarantee in the same. Outstanding loans increased by 12% to 1.7 billion euros.

¹ _{Decrease in the number of transactions on CAC 40 by 21%, DAX 30 -9%, IBEX 35 -23%, FTSE -25%. Source: Euronext}

² _{National production down 29%; source: Observatoire Crédit Logement CSA - Monthly report for September 2012}

³ _{Annual APR fixed at 30 September 2012 for 14 years at 3.26%}

Continued growth in client franchise

With the opening of nearly 13,000 current accounts and more than 11,000 bank savings accounts during third quarter 2012, the customer base grew by 14%, bringing the number of Boursorama customers in France to nearly 415,000. Customers made seven million payments by card during the past quarter, representing a 35% increase.

The increase in client franchise was accompanied by a 17% increase in balance sheet deposits to 3.4 billion euros. Current account deposits grew by 20% to 718 million euros, bank savings account deposits grew by 19% to 1.9 billion euros, supported by Livret A and LDD deposits, up 59%, and trading account deposits were up 10% at 744 million euros.

• Brokerage activity

Boursorama's level of activity in the third quarter 2012 was down with 687,535 orders executed, or a decrease of 34% compared to a third quarter 2011 exceptionally active.

Despite the rise of European stock indices between the second and the third quarter 2012, the volumes traded declined sharply⁴, in addition the financial transaction tax has been introduced on 1^st August 2012. Thus over the first nine months Boursorama recorded 2.3 million orders (-25%).

• International

Cumulative international NBI over the first nine months of 2012 was stable, amounting to 32.7 million euros, and the Group share of net income over the same period was close to breakeven at -0.4 million euros.

• In the United Kingdom, the brokerage activity's market share was maintained. NBI over the first nine months of 2012 was up 13% at 16.3 million euros, a 5% increase with constant exchange rates.
• In Germany, the downturn in brokerage and media activities was reflected by a 19% decrease in NBI to 10.8 million euros over the first nine months of 2012.
• In Spain, the resurgence in activity observed on the brokerage offering was confirmed: since the beginning of the year, the number of orders executed was up 19%; over the past quarter, it grew by 17% with more than 64,000 orders. NBI for the first nine months of 2012 was up 11%, reaching 5.6 million euros.

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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

⁴_{The daily average number of transactions carried out on the CAC 40 was down 21% compared with second quarter 2012. Source: Euronext.}

• Appendix

Quarterly consolidated income statement*

Nine months consolidated income statement*

*Non audited.

Financial statements reviewed by the Board of Directors on November 6, 2012.

Business indicators

NBI France by activity

Balance sheet at 30 September 2012*

*Non audited

Regulatory capital, RWA and Basel II solvency ratios

About Boursorama

Founded in 1995, Boursorama is a major player in online banking in Europe and is part of the Société Générale Group, with approximately 6.5 million orders executed in 2011, 949,733 direct accounts and total assets under administration of €14.4bn at end of 2011. Boursorama Group is present in four countries. In France, it is market leader in online financial information with the www.boursorama.com portal and a key player in online banking under the Boursorama Banque brand. It is a key online broker in the United Kingdom and Spain under the respective brands of Self Trade and Self Bank. In Germany, Boursorama holds 92.9% of the shares of OnVista AG, and operates under the OnVista Bank brand. Boursorama is listed on NYSE Euronext Paris – compartment B – ISIN: FR0000075228 (BRS) – Reuters: FMTX.LN – Bloomberg BRS FP. For all the latest financial news on Boursorama, go to: http://groupe.boursorama.fr