Annual Report

2023
1
Contents
 CMB Monaco • Annual Report 2023

Management report
04 Our Governance

05 Message from the Chairman – Etienne FRANZI

08 Message from the CEO – Francesco GROSOLI

09 Key figures

Financial report - Statutory accounts

12 Report of the Board of Directors to the Ordinary General Meeting of 7 May 2024

15 Balance sheet as at 31 December 2023 and 2022 before allocation of net profit

16 Income statement as at 31 Decembre 2023 and 2022

17 Changes in main balance sheet items

18 Changes in shareholders’ equity

19 Notes

31 Resolutions presented the Ordinary General Meeting of 7 May 2024

32 Balance sheet as at31 Decembre 2023 and 2022 after allocation of net profit

33 General report of the statutory auditors

34 Special report of the statutory auditors

Financial report - Consolidated accounts

36 Consolidated balance sheet as at 31 Decembre 2023 and 2022 before allocation of net profit

37 Consolidated income statement as at 31 Decembre 2023 and 2022

38 Changes in consolidated equity

39 Notes

44 Report of the statutory auditors on the consolidated financial statements

2
3
Our
governance
 CMB Monaco • Annual Report 2023

Board of Directors as at 31 December 2023

Chairman Etienne FRANZI
Managing Director Francesco GROSOLI
Directors H.E José BADIA Minister Plenipotentiary
Massimo BERTOLINI Head of Mediobanca Group Governance area
Francesco CARLONI Deputy Central Director, Mediobanca
Mario Germano GIULIANI Director, Royalty Pharma PLC
Elisabeth MARKART French Foreign Trade Advisor
Caroline ROUGAIGNON-VERNIN Chairman, Monaco Economic, Social &
Environmental Council
Sveva SEVERI Director, Mediobanca
Marco VITTORELLI Company Director
Alexandra YOUNG Head of Human Resources, Mediobanca

Board of Directors as at 7 May 2024

Chairman Etienne FRANZI
Managing Director Francesco GROSOLI
Directors Makram AZAR Founder and CEO of Full Circle Capital
Massimo BERTOLINI Director of Governance Mediobanca
Francesco CARLONI Deputy Central Director Mediobanca
Mario Germano GIULIANI Director, Royalty Pharma PLC
Elisabeth MARKART French Foreign Trade Advisor
Francesco PERILLI Financial Advisor to Equita SIM
Caroline ROUGAIGNON-VERNIN Chairman, Monaco Economic, Social &
Environmental Council
Sveva SEVERI Director, Mediobanca
Marco VITTORELLI Company Director
Alexandra YOUNG Head of Human Resources Mediobanca

Management Committee
Chief Executive Officer Francesco GROSOLI
Chief Operating Officer Kamran DJAVADI
Head of Innovation &
Chief of Staff Olivier PAGÈS
Head of Front Office Sophie SAURINI
Head of Products &
Services Distribution Jérôme MAMAN
Head of Human Resources Nathalie ARESI
Head of Compliance Philippe AUDRA

Statutory Auditors
Sandrine ARCIN
Jean-Paul SAMBA

4
 Message from
the Chairman
Last year, I said that «the return to normal market it takes to open an account, without prejudice, of
conditions, with the disappearance of negative interest course, to our even more stringent due diligence
rates, suggests that 2023 will be even more satisfactory». requirements.

This has indeed been the case! The roll-out of the electronic signature has also
saved us a considerable amount of time, streamlining
2023 was a record year in terms of both business and exchanges with our clients and the authorities.
results.
At the same time, the work of our teams has been
Consolidated net banking income rose by 47% to made easier by other technological innovations,
191.7 million euros, and net profit by more than 200% such as the migration to the Microsoft cloud and
to 58.3 million euros. the deployment of Microsoft Copilot IA, a personal
assistant based on artificial intelligence, accessible to
Like the rest of the financial community, our Bank all staff.
benefited from the development of the Principality’s
attractiveness under the Government of His Serene These changes have been accompanied by a
Highness Prince Albert II. particular focus on cybersecurity, to ensure that our
clients’ data and assets are as secure as possible.
It also benefited from the general financial climate,
with buoyant equity markets and, as expected, high We have adopted a risk-based approach,
interest rates, peaking at 5.5% for federal funds in the systematically incorporating appropriate cyber-
USA and 4% in the Eurozone for deposits with the security measures into each new innovation, and
European Central Bank. our staff have been regularly briefed and trained on
these issues.
Above all, however, it benefited from greater synergies
with our shareholder, the Mediobanca Group, and Thanks to this rigorous preparation, all the attacks
from further advances in the high quality of service we faced were thwarted.
offered to clients, made possible by the decisive steps
taken this year in our IT transition. The year was also marked by the completion, under
optimum conditions, of the temporary redeployment
The resources deployed in this respect have been of our operating sites in the Principality in the run-
aimed above all at improving the customer experience, up to the major property development planned on
and have resulted in an increase of almost 15% in our the site of our former head office at 23 avenue de la
resources. Costa.

For example, the installation of Salesforce’s For the duration of this operation, Corporate and
Financial Services Cloud product has simplified our Private Banking activities will be carried out at Park
administrative procedures and reduced the time Palace and Wealth Management at Métropole.

5
 CMB Monaco • Annual Report 2023

Finally, pending the outcome of the report dated None of this would have been possible without the
8 December 2022 by the Committee of Experts on unfailing commitment of our teams. On behalf of
the Evaluation of Anti-Money Laundering Measures the Board of Directors, I would like to thank them.
and the Financing of Terrorism (Moneyval), we have Their expertise and motivation have been essential
anticipated the Principality’s likely inclusion on the in enabling us to move forward in an increasingly
Financial Action Task Force’s (FATF) ‘grey list’. complex environment, while balancing safety and
development.
The measures we have taken to this end make us
fully confident in our ability to cope with such an
eventuality, while continuing to offer our clients a Etienne FRANZI
high-quality service.

6
7
 CMB Monaco • Annual Report 2023

Message from
the CEO
The year 2023 was marked by exceptional results For CMB Monaco, 2023 was a remarkable year. We
on the one hand, and by significant geopolitical achieved record net banking income of almost 192
upheavals on the other. The conflict in Ukraine and million euros. This performance was driven by the rise
on the Israeli-Palestinian front, particularly after 7 in interest rates and the strengthening of our Wealth
October, heightened international tensions. Similarly, Management activities. Brokerage activities, which
the friction between China and the United States are directly linked to our ability to design products
has not eased, and among the emerging countries, that meet our clients’ expectations, also recorded
India has further asserted its economic leadership at strong growth.
China’s expense. Despite this climate of uncertainty,
the financial markets showed remarkable resilience Overall, consolidated net profit came to over €58
last year. million, up by more than 200% on last year - a
performance that makes me particularly proud, and
The central banks’ priority at the start of the year was one that would not have been possible without the
clear: to bring inflation under control. Despite the undeniable enthusiasm and efforts of our employees.
risk of a global recession that this ambition entailed, The consolidated cost/income ratio, at 51%, is another
the results have been more positive than expected. key indicator of our profitability.
Inflation has fallen, and there has been no recession.
Although the 2% inflation target was not achieved In conclusion, 2023 confirmed the strength and
in either Europe or the US, the trajectory of price resilience of our business model and strategic vision.
stabilisation is encouraging. Supported by the expertise and continuous efforts of
our employees, as well as by the close collaboration
The US economy defied expectations, with growth with our shareholder the Mediobanca Group, CMB
underpinned by robust fiscal policies and household Monaco is particularly well positioned to continue
demand - the latter linked to a fall in inflation that has to offer attractive investments to our clients and
restored consumer purchasing power. Growth in the to pursue its growth, in an ever-changing global
eurozone was more moderate. environment.

The bond market, which was thought to be moribund,

rose from the ashes, offering attractive yields to Francesco GROSOLI
investors. The equity markets also had a successful
year, particularly the US and eurozone indices.

8
 Consolidated shareholders’ equity (€m)

2023
Key figures
1.136
Volume of customer loans (€m)

2.816
Net banking income (€m)

192
Employees

249
Consolidated net profit (€m)

58
9
 CMB Monaco • Annual Report 2023

Consolidated shareholders’ equity (€m)

1.009 1.068
997.7
987.8

+6%
976.8
966.7

727.9
703.2

increase over
2022. 2015 2016 2017 2018 2019 2020 2021 2022

Volume of customer loans (€m)

2.8
2.3
2.0
1.6

1.2 1.2
1.2
0.9

stable
compared to 2022. 2015 2016 2017 2018 2019 2020 2021 2022

Net banking income (€m)

130
116
103 106
99.4 94

+47%
84.6 83.4

increase over
2022. 2015 2016 2017 2018 2019 2020 2021 2022

Consolidated net profit (€m)

49.2

+213%
increase over
2
16.6 12.3 13.3
14.4 16.3
19

2022. 2015 2016 2017 2018 2019 2020 2021 2022

10
11
Statutory
account
 CMB Monaco • Annual Report 2023

Report of the Board of Directors

to the Ordinary General Meeting of 7 May 2024

The objective set for the major central banks at the Finally, looking ahead, it is gratifying to see that world
beginning of 2023 was quite clear: to reduce inflation, trade indicators are stabilising at the end of 2023, after
even at the risk of a global recession. Looking back two years of decline, which could raise hopes of a
over the past year, it is clear that the results have been global economic recovery, if confirmed.
positive: inflation has fallen, and there has been no
recession.
Tightening begun in 2022 and
The rise in prices began in the second half of 2020, completed in 2023
when the economy recovered from the first wave of
In 2023, the central banks completed the tightening
the Covid-19 pandemic. Inflation peaks were recorded
process begun in 2022. The Fed raised rates four times
in June 2022 in the United States (9.1%) and in October
(+100 basis points), bringing to a close a cycle of eleven
2022 in the eurozone (10.6%).
hikes that began in March 2022, taking the federal
funds rate from 0.25% to 5.5%. As for the ECB, it has
By the end of 2023, inflation will stand at 3.4% in the
also raised its deposit rate, from a negative level in
United States and 2.4% in the eurozone. Although the
July 2022 (-0.5%) to 4.0% in 2023, through ten hikes,
2% target set by the central banks has not yet been
including six in 2023 (+200 bp).
reached, there is no doubt that the process of price
stabilisation is underway.
Faced with these very aggressive monetary measures
by central banks, the bond markets experienced a
With commodity prices stable for several months and
year marked by high volatility. After a start to the year
economic activity normalising after the post-Covid
characterised by falling inflation and fears of a global
period, there is no reason to fear that the disinflation
recession, exacerbated in March by concerns about
process will be interrupted in the months ahead.
US regional banks, sovereign yields began to rise
in the spring and reached their peak in the autumn,
Resilience of economic growth, even exceeding 2022 levels on both short and long
maturities.
particularly in the United States
The real surprise of 2023 was the resilience of These rates then fell rapidly between October
economic growth, particularly in the United States. The and December, in response to falling inflation and
gloomy forecasts at the end of 2022 had placed too accommodative statements by central banks.
much emphasis on the tightening of monetary policies,
underestimating the support that fiscal policies are still Despite this volatility, government bonds recorded
providing to the economy. Moreover, since the second positive returns in 2023, including US bonds which had
half of the year, falling inflation has begun to restore seen the biggest rate rises.
consumers’ purchasing power, which has supported
economic activity. Eurozone bond markets in particular were also subject
to high volatility, but posted higher yields than those
The US economy has proved to be particularly robust, in the United States, even though the ECB raised rates
with growth of around 2.4% in 2023, higher than the more aggressively than the Fed in 2023 (200 bp versus
initial forecasts of barely positive growth for the year. 100 bp).
The eurozone avoided the recession that the estimates
for the end of 2022 had predicted, but its pace of This situation can be explained by the economic
growth was moderate. The positive economic surprises slowdown in the eurozone, which has effectively
only came in the first few months of the year, with a curbed the rise in bond yields, independently of the
slowdown in the spring. ECB’s actions.

The gap between the eurozone and the United States Italian bond yields have also been very volatile, but
is largely due to the relative weakness of China’s their absolute return since the start of the year has
economic performance and world trade, with the been largely positive, supported in particular by the
eurozone remaining highly dependent on its exports. confirmation of the ratings awarded by the agencies
in the autumn.

12
Spread markets posted positive absolute returns overall,
as they were subject to the volatility of underlying
sovereign rates while being protected by the level of Against this backdrop, the Bank continued to grow,
spreads, which had widened significantly in 2022. confirming the success of its strategy.
Consolidated net banking income reached a record
Yields in riskier segments, such as high yield and level of 191.7 million euros, up 47% on 2022, driven
emerging markets, have not reached new highs not only by the rise in interest rates but also by the
compared to 2022. Indeed, the rise in underlying strengthening of our private banking activities.
sovereign rates has been offset by the tightening of
spreads, resulting from the resilience of economic The asset management, both private and collective,
activity, contrary to expectations. and advisory sectors continued to grow, with volumes
representing 30% of customer resources. Together,
Although these spreads have narrowed in 2023, they they accounted for 12% of net banking income and 31%
remain above their usual end-of-cycle levels, making of total commissions. The Advisory business performed
them attractive for 2024. particularly well, with assets up 19% to €1.9 billion.

Brokerage grew by 15% to €30m, thanks to our ability

Buoyant equity markets to design innovative products tailored to our customers’
It was a good year for equity markets, with the needs. It accounted for 41% of commissions.
aggregate US and eurozone indices erasing almost
all their losses of 2022. Emerging markets also posted Despite the rise in financing costs, which led to a
positive performances, albeit more modestly, due in number of repayment arbitrages, we managed to
particular to the weakness of the Chinese stock market. keep total loans stable at 2.8 billion euros thanks to a
high level of new lending. This was achieved without
In the United States and the eurozone, the recovery was compromising our principles of rigour and prudence,
mainly driven by the technology sector, but consumer which enable us to maintain a particularly low level of
discretionary and manufacturing also performed well, provisions.
reflecting optimism about the continuation of the
global economic cycle. In the eurozone, the financial Finally, with the same concern for rigour, cash continued
sector also performed well thanks to the return of to be invested exclusively in bonds issued by leading
interest rates to positive territory. governments and international organisations, or by
our Group, under agreements adapted to the average
Share prices have risen against a backdrop of stable duration of our resources, thus taking advantage of the
earnings in the US and modest growth in Europe. As rise in interest rates.
a result, valuations are higher than at the end of 2022,
but remain attractive over the medium term. General operating expenses rose by 13%, reflect
the efforts made in terms of transformation and
Looking ahead to 2024, the continuation of the digitalisation to further enhance the quality of our
global economic cycle, with moderate inflation and services, as well as risk monitoring.
expectations of a cut in key interest rates, is a positive
factor for companies and may support share prices. Overall, consolidated operating profit came to 87.7
million, and after taking into account the cost of risk,
The euro/dollar exchange rate showed some volatility other non-operating items, and a depreciation charge
in 2023, fluctuating between 1.05 and 1.13 with no clear of €4.7 million for goodwill on fixed assets, consolidated
direction. For 2024, it is possible that the dollar will net profit came to €58.3 million, up by more than 200%
see no definite trend, as it is subject to two mutually on the previous year.
neutralising influences.
Thus, before distribution, consolidated shareholders’
On the one hand, the US economy is expected to grow equity at 31 December 2023 was €1,108 million.
faster than the other developed economies, which
should be favourable for the dollar. On the other hand, For the bank alone, net profit also rose sharply, by 57.4
the continuation of the global economic cycle against million euros, bringing total shareholders’ equity before
a backdrop of reduced uncertainty generally tends to distribution to 1,081 million euros at 31 December 2023.
favour currencies other than the dollar.

13
 CMB Monaco • Annual Report 2023

In view of the high level of shareholders’ equity, which These developments have made it possible to group
goes well beyond regulatory requirements and our all staff together on four sites, with the Victoria site,
operating needs, the Board of Directors is proposing a completed in July 2022, joining the other three. These
dividend payout of 320 million euros. four refurbished sites offer our employees an improved
working environment, enabling us to provide high-
On this basis, the prudential ratios would remain quality services to our customers.
well above the thresholds set by the regulations, in
particular CET 1, which would stand at 24.1%. During the year, a number of transactions covered b y
Article 23 of the Sovereign Order of 5 March 1985 were
The appropriation of net profit would be as follows: continued:

Reserves available for distribution at 01/01/2023 € 824.046.909 Day-to-day banking transactions and reciprocal
services with institutions that have directors in
Retained earnings at 01/01/2023 € 239
common with the Bank,
Profit for the year to 31/12/2023 €57.413.591
Total to be allocated € 881.460.739 IT and administrative services provided to our
subsidiaries Compagnie Monégasque de Gestion
Dividend distribution € 320.000.000 and CMB Asset Management SAM,
Reserves available for distribution at 31/12/2023 € 561.460.500
Real estate transactions carried out jointly with
Retained earnings at 31/12/2023 €239
our subsidiary CMB RED SAM.
Total allocated € 881.460.739
At the end of the year, the Group had 249 employees.
After distribution, total parent company and
consolidated shareholders’ equity would remain at The Board of Directors warmly thanks the Executive
very high levels of 761 million euros and 789 million Management and all the staff for the quality of their
euros respectively. Minority interests in consolidated work, their dedication and the results achieved during
shareholders’ equity amounted to 30 million euros. This the year. It would also like to thank our customers for
is the share of equity held directly by Mediobanca in their loyalty to our company.
the property subsidiary CMB RED, which is 60% owned
by CMB Monaco and 40% by Mediobanca.
The Board of Directors
The year 2023 was also marked by the finalisation of
the redeployment of our facilities in the Principality as
part of the real estate operation planned on the site of
our former head office, at 23 avenue de la Costa.

In July, the Corporate and Private Banking

activities were transferred to the Park Palace, in
a 686 m2 facility with open areas for employees,
reception lounges and safe deposit boxes.

The Grimaldi site has been restructured. The

former branch was closed and since October it
has been home to all our IT activities.

In October, the head office was temporarily

relocated to Métropole, 17 avenue des Spélugues,
during the above-mentioned property
development. The site covers 1,700 sq. m. on
two floors, with the first floor mainly devoted to
welcoming Wealth Management customers and
the second floor reserved for employees.

14
Balance sheet
as at 31 December 2023 and 2022 before allocation of net profit

In thousands of euros 2023 2022

Cash, central banks 163.805 164.928

Due from banks 4.641.576 4.756.333

Customer loans 2.815.811 2.846.861

Bonds and other fixed income securities 974.036 680.528

Equities and other variable income securities 2.348 2.348

Participating interests and other financial investments 1.070 1.050

Interests in related companies 54.460 52.239

Goodwill, intangible assets Property and equipment 19.628 20.924

Property and equipment 91.892 85.487

Other assets 93.768 13.655

Deferred charges - accrued income 29.561 14.609

Total assets 8.887.954 8.638.961

Due to banks 1.920.375 1.410.171

Due to customers 5.687.293 6.118.834

Other liabilities 118.316 27.783

Accrued charges - deferred income 51.815 39.625

Provisions for contingencies and charges 2.196 2.004

General banking risks reserve 27.206 17.206

Share capital 111.110 111.110

Additional paid-in capital 4.573 4.573

Reserves 907.656 883.611

Retained earnings 0 0

Net profit 57.414 24.045

Total liabilities 8.887.954 8.638.961

Commitments and contingencies 2023 2022

Commitments given 1.041.868 1.071.305

Confirmed lines of credit 971.732 1.001.692
Guarantees given 56.734 69.613
Commitments relating to securities transactions 13.402 0
Commitments received 12.042 0
Commitments relating to securities transactions 12.042 0

15
 CMB Monaco • Annual Report 2023

Income statement
as at 31 December 2023 and 2022

In thousands of euros 2023 2022

Banking income and expense

Interest income 314.381 102.146

Interest expense (203.834) (36.791)

Income from variable income securities 24 2.317

Commission and fee income 72.772 70.580

Commission expense (4.421) (4.307)

Net gain (or loss) on disposal of trading account securities 378 832

Net gain (or loss) on disposal of securities available for sale 10.520 (3.617)

Other banking income 18 86

Other banking expense (2.787) (3.613)

Net banking income 187.051 127.633

General operating expenses (81.836) (71.362)

Depreciation and other write-downs of property, equipment and (11.378) (8.876)
intangible assets
Gross operating income 93.837 47.395

Depreciation on property revaluation reserve (4.702) (9.421)

Movement of provisions on loans and off-balance sheet items (2.330) (654)

Operating income 86.805 37.320

Gains and releases of provisions on long-term investments 3.850

Income before tax and non-operating items 86.805 41.170

Non-operating income (400)

Income taxes (19.391) (7.287)

Provisions/reversals for general banking risks and regulated provisions (10.000) (9.438)

Net profit 57.414 24.045

Group share 57.414 24.045

Basic earnings per share 0.103 0.043

Diluted earnings per share 0.103 0.043

16
Changes
in main balance sheet items

In thousands of euros 2023 2022 Variation %

Interbank loans 4.805.380 4.921.261 (115.881) (2.35%)

- Repayable on demand 1.847.468 2.159.896 (312.428) (14.46%)

- Time loans 2.957.912 2.761.365 196.547 7.12%

Customer loans 2.815.811 2.846.861 (31.050) (1.09%)

- Sight accounts 1.231.266 1.062.029 169.237 15.94%

- Other loans 1.584.545 1.784.832 (200.287) (11.22%)

Securities portfolio 976.384 682.876 293.508 42.98%

Total 8.597.575 8.450.998 146.577 1.73%

Interbank deposits 1.920.375 1.410.171 510.204 36.18%

- Repayable on demand 20.974 2.744 18.230 664.38%

- Time loans 1.899.401 1.407.427 491.973 34.96%

Customer deposits 5.687.293 6.118.834 (431.541) (7.05%)

- Repayable on demand 2.436.223 3.187.869 (751.646) (23.58%)

- Time loans 3.247.418 2.924.889 322.529 11.03%

- Special savings accounts 3.652 6.076 (2.424) (39.90%)

Total 7.607.669 7.529.005 78.663 1.04%

17
 CMB Monaco • Annual Report 2023

Changes
in shareholders’ equity

General
Additional Profit
Share Revaluation Retained banking
In thousands of euros paid-in Reserves for the Total
capital difference earnings risks
capital period
reserve

Balance as at
111.110 4.573 753.231 130.380 0 17.206 24.045 1.040.545
31 December 2022
Appropriation of 24.045 (24.045) 0
2022 net profit
Amortisation of 57.883 (57.883) 0
revaluation difference

Profit for the period 2023 57.414 57.414

Allocation to general
10.000 10.000
banking risks reserve

Balance as at
111.110 4.573 835.159 72.497 0 27.206 57.414 1.107.959
31 December 2023
Appropriation of 57.414 (57.414) 0
2023 net profit
Amortisation of 4.702 (4.702) 0
revaluation difference

Balance as at 31/12/2023
111.110 4.573 897.275 67.795 0 27.206 0 1.107.959
after appropriation

18
Notes
to the financial statements for the year ended 31 December 2023

1. Share ownership Off-balance sheet commitments by signature

correspond to irrevocable commitments to provide
At 31 December 2022, the Bank had share capital of cash and guarantees that have not given rise to
€111,110,000 consisting of 555,550 shares with a nominal movements of funds.
value of €200 each, which were held as follows, the
percentages being rounded off: The level of credit risk is assessed using external and/
or internal rating systems. Loans and commitments
Mediobanca: 99.998% by signature are broken down into performing and
i.e. 555,539 shares doubtful loans.

Directors: 0.002% Amounts owed to credit institutions are presented

i.e. 11 shares according to their initial maturity (sight or term) and
amounts owed to customers are presented according
The Bank’s accounts are consolidated in the financial to their nature (special savings accounts and other
statements of Mediobanca Spa, Piazzetta Cuccia Enrico, customer deposits). Accrued interest is recorded under
1 – 20121 Milan – Italy. (https://www.mediobanca.com). related payables.

Guarantees received are recorded in the accounts as

2. Accounting principles off-balance sheet items. They are revalued periodically.
and valuation methods The book value of all guarantees taken out on the same
loan is limited to the amount of the loan outstanding.
The accounting principles and valuation methods
adopted for the preparation of the financial statements
comply with the provisions of Regulation 2020-10 of Impairment
22 December 2020 and ANC Regulation No. 2014-07
of 26 November 2014 on the financial statements of Impairment losses are recognised on receivables for
companies in the banking sector. which recovery has become uncertain, and are deducted
from assets to cover the risk of loss. Impairment losses
are calculated on a receivable-by- receivable basis,
2.1 Provisions for doubtful taking into account the present value of the collateral
receivables received and the costs of taking possession of and
selling the collateral. They are determined at least
Loans and advances to credit institutions and quarterly on the basis of an analysis of the risk and the
customers are governed by ANC regulation 2014-07. collateral available. Impairment losses cover at least
They are broken down according to their residual term uncollected interest on doubtful loans. Impairment
or the nature of the loans: losses for probable proven losses cover all forecast
losses, calculated as the difference between capital
sight and term loans for credit institutions outstanding and forecast cash flows discounted at the
effective rate. Forecast cash flows are determined for
trade receivables, other loans and ordinary each category of receivable on the basis of historical
customer accounts. losses and/or expert opinion, and are then positioned
over time on the basis of schedules determined on the
The customer item includes transactions with financial basis of historical collections.
customers.
Charges to and reversals of impairment losses
Receivables are recorded in the balance sheet at their recognised for the risk of non-recovery are recorded
face value. under «Cost of risk», with the exception of impairment
losses relating to interest on doubtful debts which, like
Accrued interest on receivables is recorded in the the interest thus impaired, are recorded under «Interest
related receivables account with a corresponding and similar income». The reversal of impairment due
entry to the income statement. solely to the passage of time is recorded under «Cost
of risk».

19
 CMB Monaco • Annual Report 2023

2.2 Interest and fees reporting date, they are valued at their market price.
The difference between the acquisition value and the
Interest is recognised in the income statement on an market price is taken to the income statement.
accruals basis.
Available-for-sale securities
Commissions are recorded when they are due, with Pursuant to the provisions of Articles 2331-1 and 2332-
the exception of those treated as interest, which are 1 to 4 of ANC Regulation 2014-07, available-for-sale
therefore recorded on an accruals basis. securities are securities acquired with the intention of
holding them for the medium or long term, other than
A provision is made for unpaid interest if recovery held-to-maturity securities (or participating interests).
appears unlikely, in which case it is excluded from net They are recognised at cost on their date of acquisition.
banking income. Any accrued interest recorded on the acquisition of the
securities is recorded as a receivable.
2.3 Income from the securities
Where the acquisition price of fixed-income securities
portfolio exceeds their redemption price, the difference is
Income from the securities portfolio includes the net amortised over the remaining time to maturity. Where
gains on disposals of securities, bonds and equities. the acquisition price of fixed-income securities is lower
Dividend income on equities is recorded as and when than their redemption price, the difference is recognised
it is received. in income over the remaining time to maturity.

Interest income on bonds held in the portfolio is At each reporting date, an impairment is recognised
recognised on a pro rata basis. for any unrealised capital losses arising from the
difference between the carrying amount, as adjusted
for the amortisation of differences between cost and
2.4 Gains on foreign currency redemption price, and the market price. Unrealised
transactions capital gains are not recognised.

Assets, liabilities and off-balance sheet commitments Participating interests

denominated in foreign currency are expressed in Participating interests are recognised at their historical
euros at the market exchange rates or official fixed cost. At year-end, they are valued on the basis of their
exchange rates in force on the reporting date. “value in use”.

Forward foreign currency transactions are recognised

at the forward exchange rate on the reporting date 2.7 Provision for retirement
and the financial gain or loss is recorded under “Gains benefits
on financial transactions”.
Mandatory pensions and retirement benefits are paid
by specialised bodies to which employer and employee
2.5 Gains on interest rate or contributions are paid. Amounts due in respect of the
currency swaps year are charged to income for the period.

These transactions are treated in the same way as A provision for retirement indemnities, calculated in
lending or borrowing transactions, either in one accordance with agreements signed internally, has
currency or in two different currencies. The amounts been established for active employees.
received or paid in respect of these transactions are
included in the income statement on a pro rata basis. A provision of €0.2m was recognised at 31 December
2023, bringing the total provision to €1.5m.
2.6 Securities transactions
Trading account securities 2.8 General banking risks reserve
Pursuant to the provisions of Articles 2321-1 and 2 and At 31 December 2023, the amount prudently allocated
2322-1 to 3 of ANC Regulation 2014-07, trading account to cover general risks inherent in banking transactions
securities are those that are acquired or sold with the was increased to a total of €27.2m (ANC regulation no.
intention of reselling or repurchasing them in the short 2014-07).
term. They are recognised on their date of acquisition
at cost, excluding acquisition- related expenses but
including accrued interest, where applicable. At each

20
2.9 Fixed assets, depreciation 2.10 Commitments and
and amortisation contingencies
Property, plant and equipment are recognised at cost Forward financial instruments and hedging transactions
and depreciated on a straight-line basis over their are accounted for in accordance with Regulation
useful life. 2015-05.

At 1 January 2017, the Bank carried out a revaluation of The off-balance sheet financial instruments shown
its property portfolio, resulting in an amount of €224.63 under “commitments given” are mainly held for interest
million being transferred to the revaluation reserve. rate hedging purposes. Gains or losses on these
instruments are recorded in the income statement on
This revaluation difference gives rise to additional a pro rata basis.
depreciation calculated over the residual depreciation
period of the assets concerned. 2.11 Tax expense
On 26 April 2022, CMB Monaco sold the «La For the 2023 financial year, the bank remains subject
PALMERAIE» building to its property development to income tax at a rate of 25%, introduced by Sovereign
subsidiary CMB RED, which it owns with MEDIOBANCA, Order 3152 of 19 March 1964.
for €63m. The net book value was €59m, including the
revaluation surplus.
2.12 Related parties
Goodwill included in intangible assets is amortised over The Bank carries out market transactions and cash
ten years. This goodwill corresponds to the acquisition pooling with its parent company, Mediobanca, under
of the Monaco branch of ABN AMRO for €8m in normal market conditions.
November 2006, fully amortised at 31 December 2016,
the acquisition of the Monaco operations of Capitalia
Luxembourg for €18.2m in March 2008, fully amortised 2.13 Impact of the
at 31 December 2018, and the acquisition of part of the Russia-Ukraine crisis
goodwill of CFM Indosuez Monaco, acquired in two
tranches, for €5.3m in December 2016 and €1.2m in The events that have taken place in Ukraine since 2022
February 2017. have had repercussions for the global economy as a
whole, and the stock markets in particular.
According to ANC. Art 1124-5, fixed assets are recognised
at historical cost. They are depreciated on a straight- CMB Monaco applies all the measures resulting from
line basis over their useful lives, as follows: the international sanctions and has implemented all
the due diligence required by these texts.
Customer shares 10 years
At this stage, the Bank has not identified any significant
Leasehold rights not amortised exposure to assets of Russian or Ukrainian issuers.

Software 3 to 5 years Furthermore, the Bank has not identified any risks
arising from the sanctions imposed on Russia that
Fixtures and fittings 10 years could have a material impact on the 2023 financial
statements.
Office equipment 3 to 5 years

IT equipment 3 years

Transport equipment 5 years

21
CMB Monaco • Annual Report 2023

22
3. Other information

3.1 Property, equipment & intangible assets

Property, equipment & intangible assets were as follows as at 31 December 2023 :

In thousands of euros 31/12/2022 Increase Decrease 31/12/2023

Gross amount

Goodwill, intangible assets 63.165 10.107 73.272

Property and equipment 129.422 17.989 (41) 147.370

Prepayments to suppliers 11.877 16.118 (22.787) 5.208

Total gross fixed assets 204.464 44.214 (22.828) 225.850

Depreciation

Goodwill, intangible assets (49.661) (8.721) (58.382)

Property and equipment (48.374) (7.556) (55.930)

Total depreciation (98.035) (16.277) 0 (114.312)

Provisions for impairment of assets (18) (18)

Net value 106.411 27.937 (22.828) 111.520

3.2 Investments in subsidiaries and participating interests

As at 31 December 2023, investments in subsidiaries and participating interests were as follows:

Share % 2023 net Shareholder Net book value

In thousands of euros At cost Provisions
capital interest profit loans 31/12/2023

C.M.G 600 99.92% 592 15 8.913 9.505

CMB RED Sam 75.150 60.00% 45.090 921 45.090

Certificate of association FGDR 956 956

Other companies 113 113

CMG Monaco, SAM: as at 31 December 2023, this subsidiary managed 20 mutual funds, in accordance
with the legislation in force in the Principality, as well as a SICAV under Luxembourg law. As part of the
integration into the MEDIOBANCA group’s Asset Management division, since 1er January 2022 it has been
responsible for the individual management of CMB MONACO’s managed clients under mandate.

CMB AM Monaco was fully integrated into CMB Monaco’s accounts on 25 September 2023 through a
universal transfer of assets and liabilities.

CMB RED SAM, a property development subsidiary owned 60% by CMB Monaco and 40% by MEDIOBANCA.

23
 CMB Monaco • Annual Report 2023

3.3 Provisions for contingencies

Additions Reversals Utilised
Balance as at Balance as at Loans at % of
In thousands of euros during the during the during the
31/12/2022 31/12/2023 31/12/2023 coverage
year year year

Provisions for contingencies

Private risks 192 1.821 (14) 1.999 50.146 4%

Provisions for contingencies
2.004 1.085 (893) (753) 2.196
and charges
Total 2.196 2.906 (907) (753) 4.195 50.146

Au 31 décembre 2023, le montant global des encours douteux, compris dans les comptes ordinaires débiteurs de
la clientèle, s’élève à 50.2 M€. La provision pour dépréciation s’élève quant à elle à 2.0 M€.

3.4 Trading account securities and securities available for sale

2023 2022

Available Trading Total Available Trading Total

In thousands of euros
for sale account portfolio for sale account portfolio

Bonds

Governments 619.775 113.571 733.346 412.379 106.742 519.121

Central authorities 0 0

Banks 0 0

Other financial institutions 240.690 240.690 161.407 161.407

Other non-financial institutions 0 0

Subtotal 860.465 113.571 974.036 573.786 106.742 680.528

Equities & other

Equities, mutual funds, SICAVs 2.348 2.348 2.348 2.348

Subtotal 2.348 0 2.348 2.348 0 2.348

Total 862.813 113.571 976.384 576.134 106.742 682.876

Provisions for impairment
included in the above
(1.585) (4.779)
Unrealised gains (not recognised -
for information only)
6.903 2.367

Trading account securities comprise government bonds loaned by Mediobanca at Mediobanca’s risk. No cash
deposit is made in consideration.

Breakdown of securities Breakdown of trading

2023 2022 2023 2022
by type account securities

Fixed income bonds 860.465 680.528 Listed on an active market 113.571 106.742

Floating income bonds 113.571 Others 0 0

Equities, warrants, others, 2.348 2.348

funds

Total 976.384 682.876 Total 113.571 106.742

24
3.5 Breakdown of customer loans
In thousands of euros 2023 2022

Overdrafts 1.231.266 1.062.029

Other customer loans 1.584.545 1.784.832

Total 2.815.811 2.846.861

3.6 Breakdown of balance sheet items

In thousands of euros Foreign currencies Euros Total euro equivalent

Due from banks 1.846.331 2.959.049 4.805.380

Customer loans 308.744 2.507.067 2.815.811

Deferred charges - accrued income 9.945 19.616 29.561

Other assets 1.112 10.853 11.965

Participating interests and portfolio securities 265.786 766.127 1.031.914

Property, equipment & intangible assets 0 111.520 111.520

Total assets 2.431.919 6.374.232 8.806.151

Due to banks 106.943 1.813.433 1.920.375

Due to customers 2.309.923 3.377.371 5.687.293

Accrued charges, deferred income and provisions for 9.684 44.326 54.011
contingencies

Debt securities

Other liabilities 4.982 31.531 36.513

Shareholders’ equity 1.107.959 1.107.959

Total liabilities 1.431.531 6.374.620 8.806.151

25
 CMB Monaco • Annual Report 2023

3.7 Forward commitments - Off-balance sheet

In thousands of euros 2023 2022

Commitments given 4.775.396 3.664.580

Financing commitments to customers 971.732 1.001.692

Customer order guarantee 56.734 69.613

Foreign currency loans and spot foreign exchange transactions 13.642 259.911

Forward foreign exchange transactions - Currency to be delivered 802.362 1.059.561

Commitments on forward financial instruments 2.917.523 1.273.804

- on interest rate instruments 262.942 212.810

- on foreign exchange instruments 782.549 777.995

- on other instruments 1.872.032 282.998

Securities to be delivered 13.402

Commitments received 5.032.255 3.804.147

Guarantees received on financing for customers 1.367.691 1.466.194

Foreign currency loans and spot foreign exchange transactions 13.647 51.118

Forward exchange transaction - Currency to be received 802.174 1.059.377

Commitments on forward financial instruments 2.836.702 1.227.458

- on interest rate instruments 262.942 212.810

- on foreign exchange instruments 721.083 728.896

- on other instruments 1.852.677 285.752

Titles to be received 12.042

Transactions in interest rate instruments include :

Fixed-for-floating swap contracts to hedge fixed-rate loans with a reference capital of €40m. This is
earmarked micro-hedging.

Swap contracts to hedge interest rate sensitivity risk - macro hedge - Mediobanca amortising over 10
years. At 31 December 2023, the swaps amounted to €223m. CMB pays a variable rate and receives a fixed
rate.

Transactions in foreign exchange instruments» records active positions in options and foreign exchange
accumulators/decumulators.

Transactions in other instruments» records the maximum amount of residual commitments (outstanding amount
at the last known price) accumulated (in absolute value) with the overall commitments calculated on the strike
both on the client side and on the securities market side.

There are no speculative positions in derivatives. These are not isolated open positions. The sale of a market
option is intended to hedge the purchase of a customer option or vice versa.

The sole purpose of these contracts is to reduce the risk to which the hedged item exposes the Group. The results
of the hedging transaction are recognised symmetrically to the hedged transaction.

26
3.8 Securities awaiting settlement under delayed delivery transactions
In thousands of euros Securities due Securities receivable

Securities awaiting settlement 13.402 12.042

Total 13.402 12.042

3.9 Analysis of assets and liabilities by maturity

Less or equal
In thousands of euros 3 months - 1 year 1-5 years Beyond 5 years
to 3 months

Due from banks 4.122.306 651.904 4.525

Accrued income 17.863 8.779 3

Customer loans 696.156 649.378 587.754 870.787

Accrued income 128 621 3.988 6.996

Bonds 83.096 292.787 600.501 0

Total assets 4.919.549 1.603.469 1.196.771 877.783

Less or equal
3 months - 1 year 1-5 years Beyond 5 years
to 3 months

Due to banks 325.043 100.000 795.000 690.000

Accrued expense 995 36 3.554 5.747

Due to customers 4.913.142 585.441 160.112 3.452

Accrued expense 25.140 6

Total liabilities 5.264.320 685.483 958.666

Contingencies and commitments 1 year or less 1-5 years Beyond 5 years

Financing commitments 57.664 35.409 878.656

Guarantee commitments 12.391 38.746 5.597

Commitments on securities 13.402

Commitments given 83.457 74.155 884.253

Financing commitments

Guarantee commitments

Commitments on securities 12.042

Commitments received 12.042

27
 CMB Monaco • Annual Report 2023

3.10 Accrued interest and other accruals included in balance sheet items
In thousands of euros 2023 2022

Accrued income (classified within accounts receivable) 43.948 18.446

Due from banks 26.628 11.558

Customer loans 11.732 5.636

Bonds and other fixed income securities 5.588 1.253

Deferred charges - accrued income 29.561 14.609

Commitments on derivative financial instruments 24.818 10.211

Prepaid expense 2.233 2.378

Accrued income 2.510 2.020

Total assets 73.509 33.055

Accrued expense (within accounts payable) 35.477 12.416

Due to banks 10.332 2.076

Due to customers 25.145 10.340

Accrued charges - deferred income 51.815 39.625

Commitments on derivative financial instruments 18.031 12.535

Deferred income 13 0

Accrued charges 33.739 27.058

Other 32 32

Total liabilities 87.292 52.041

3.11 Employees
2023 2022

Executives 181 173

Senior employees 52 57

Staff 2 1

Total 235 231

28
3.12 Analysis of income and expenses
2023 2022

In thousands of euros Expense income Expense income

Interest

Interbank transactions (73.805) 169.299 (13.162) 47.971

Customer transactions (129.760) 131.354 (23.363) 49.997

Bonds (269) 13.728 (266) 4.178

Subtotal (203.834) 314.381 (36.791) 102.146

Income from variable income securities

Participating interests 24 2.317

Subtotal 24 2.317

Commissions

Customer transactions (874) 17.610 (1.161) 18.042

Securities transactions (3.548) 55.162 (3.145) 52.538

Subtotal (4.421) 72.772 (4.307) 70.580

Trading account securities

Currency transactions 3.622 2.841

Securities transactions (3.244) (2.009)

Subtotal (3.244) 3.622 (2.009) 2.841

Securities available for sale

Net gains and losses 7.393 1

Net changes in provision 3.127 (3.618)

Subtotal 0 10.520 (3.618) 1

General operating expenses

Personnel expenses

- Salaries and bonuses (40.190) (35.705)

- Social security contributions (12.220) (10.975)

General and administrative expenses (29.426) (24.681)

Subtotal (81.836) (71.362)

29
 CMB Monaco • Annual Report 2023

3.13 Breakdown of the cost of risk

In thousands of euros 2023 2022

Reversal of doubtful debt provision 14 50

Reversal of risk provision (litigation) 893 103

Doubtful debt provision (1.821) (172)

Risk provision (litigation) (1.085) (623)

Loss on irrecoverable debt (331) (12)

Total (2.330) (654)

30
Resolutions
presented to the Ordinary General Meeting of 7 May 2024

First resolution Seventh resolution

The shareholders, having heard the reports of the The shareholders, having noted that the terms of office of
Board of Directors and the Statutory Auditors, approve all the Directors expire at the present General Meeting,
the parent company and consolidated balance sheets resolve to renew the terms of office of the following
and income statements, together with the transactions Directors for a period of three years, i.e. until the
reflected in these accounts and summarised in these Shareholders called to approve the financial statements
reports. for the 2026 financial year:

Second resolution • Mr Massimo BERTOLINI

• Mr Francesco CARLONI
The shareholders approve the appropriation of profits as
• Mr Etienne FRANZI
proposed by the Board of Directors:
• Mr Mario Germano GIULIANI
• Mr Francesco GROSOLI
Reserves available for distribution at 01/01/2023 € 824.046.909
• Mrs Elisabeth MARKART
Retained earnings at 01/01/2023 € 239 • Mrs Caroline ROUGAIGNON-VERNIN
• Mrs Sveva SEVERI
Net profit for the year to 31/12/2023 € 57.413.591 • Mr Marco VITTORELLI
• Mrs Alexandra YOUNG
Total to be appropriated € 881.460.739

Dividend distribution € 320.000.000 And also to appoint as Directors:

Reserves available for distribution at 31/12/2023 € 561.460.500 • Mr Makram AZAR

• Mr Francesco PERILLI
Retained earnings at 31/12/2023 € 239

Total allocated € 881.460.739 Mrs Elisabeth MARKART, Mrs Caroline ROUGAIGNON

VERNIN, Mrs Sveva SEVERI, Mrs Alexandra YOUNG, Mr
Makram AZAR, Mr Massimo BERTOLINI, Mr Francesco
Third resolution CARLONI, Mr Etienne FRANZI, Mr Mario Germano
GIULIANI, Mr Francesco GROSOLI, Mr Francesco PERILLI
The shareholders approve the amount of the Statutory and Mr Marco VITTORELLI have each declared that
Auditors’ fees set by the Board of Directors, as shown in they accept their reappointment or their appointment
the profit and loss account for the year. as director and that they comply with the legal rules
governing the holding of directorships.
Fourth resolution
The shareholders, having heard the Statutory Auditors’ Eighth resolution
special report and the Board of Directors’ report on Full and final discharge will be given to H.E. Mr José
agreements governed by Article 23 of the Sovereign Badia, who ceases his duties as director today, at the
Ordinance of 5 March 1895, note the transactions Ordinary General Meeting called to approve the financial
between the Company and its Directors. statements for the current year.

Fifth resolution Ninth resolution

The shareholders, authorise the Directors to enter into The General Meeting, having noted that the term of
the transactions referred to in Article 23 of the Sovereign office of the Statutory Auditors expires at the close of this
Ordinance of 5 March 1895, subject to reporting thereon General Meeting, appoints for the next three financial
to the Annual General Meeting. years, i.e. until the General Meeting called to approve the
financial statements for 2026, Mrs Sandrine Arcin and Mr
Sixth Resolution Jean-Paul Samba as Statutory Auditors and Mrs Bettina
The shareholders discharge the Directors in respect of Ragazzoni-Janin and Mr Tony Guillemot as Substitute
the performance of their duties for the 2023 financial Auditors.
year.

31
 CMB Monaco • Annual Report 2023

Balance sheet
as at 31 December 2023 and 2022 after allocation of net profit

In thousands of euros 2023 2022

Cash, central banks 163.805 164.928

Due from banks 4.641.576 4.756.333

Customer loans 2.815.811 2.846.861

Bonds and other fixed income securities 974.036 680.528

Equities and other variable income securities 2.348 2.348

Participating interests and other financial investments 1.070 1.050

Interests in related companies 54.460 52.239

Goodwill, intangible assets 19.628 20.924

Property and equipment 91.892 85.487

Other assets 93.768 13.655

Deferred charges - accrued income 29.561 14.609

Total assets 8.887.954 8.638.961

Due to banks 2.240.375 1.410.171

Due to customers 5.687.293 6.118.834

Other liabilities 118.316 27.783

Accrued charges - deferred income 51.815 39.625

Provisions for contingencies and charges 2.196 2.004

General banking risks reserve 27.206 17.205

Share capital 111.110 111.110

Additional paid-in capital 4.573 4.573

Reserves 645.070 907.656

Retained earnings 0 0

Total liabilities 8.887.954 8.638.961

32
General report
of the statutory auditors on the year ended 31 December 2023

To the Shareholders, We have audited the various components of the

assets and liabilities as well as the methods used for
their valuation and for the discrimination of income
In accordance with the provisions of Article 25 of Law and expenses. We conducted our audit in accordance
no. 408 of 20 January 1945, we hereby report to you with generally accepted auditing standards. Those
on the general and permanent assignment entrusted standards require that we plan and perform the audit
to us by the Ordinary General Meeting of 31 May to obtain reasonable assurance about whether the
2021 for the financial years 2021, 2022 and 2023. financial statements are free of material misstatement.

The financial statements and corporate documents An audit includes examining, on a test basis,
approved by your Board of Directors were made evidence supporting the amounts and disclosures
available to us within the legal deadlines. in the financial statements, as well as assessing the
accounting principles used and significant estimates
The balance sheet total was €8,887,954k. made by management.

The income statement shows a net profit of In our opinion, the financial statements at 31 December
€57,414k. 2023, as attached to this report and submitted for
your approval, give a true and fair view, in accordance
Our responsibility is to express an opinion on these with legal requirements and professional practice,
financial statements based on our audit. We conducted of the assets and liabilities of your Company at 31
our audit in accordance with professional standards December 2023 and of the results of its operations
applicable in France and with the requirements of for the year then ended.
French banking regulations. Our responsibility is to
express an opinion on these financial statements We have also verified the financial information
based on our review of the transactions carried out contained in the Board of Directors’ report, the
by your company during the year ended 31 December proposed appropriation of net income and compliance
2023, the balance sheet as at 31 December 2023, the with the legal and statutory provisions governing the
income statement for the year and the notes to the Company’s operations. We have no matters to report.
financial statements.

These documents have been drawn up in accordance Monaco, 22 April 2024

with legal requirements and in the same form and
using the same valuation methods as the previous The Statutory Auditors
financial year. Stéphane GARINO, Sandrine ARCIN.

33
 CMB Monaco • Annual Report 2023

Special report
of the statutory auditors on the year ended 31 December 2023

To the Shareholders, General meeting held during the year

During the financial year, you were convened to

In accordance with the provisions of Article 24 of Law attend:
no. 408 of 20 January 1945, we hereby report to you
on the transactions referred to in Article 23 of the the annual Ordinary General Meeting on 26
Sovereign Order of 5 March 1895, carried out during April 2023 to approve the financial statements
the 2023 financial year and on the General Meetings for the year ended 31 December 2022;
held during the same year.
on 25 September 2023, at an Extraordinary
Transactions referred to in Article 23 of the General Meeting for the purpose of dissolving
Sovereign Ordinance of 5 March 1895 CMB ASSET MANAGEMENT S.A.M. and
transferring all of its corporate assets to CMB
We remind you that this refers to any undertaking or MONACO S.A.M., the sole shareholder, without
contract involving a series of successive services of the need for liquidation.
the same or similar nature, made with the company or
on its behalf and in which a Director of your company For these meetings, we verified:
has a direct or indirect interest.
compliance with the legal and statutory
The performance of these transactions during the requirements governing the holding of such
2023 financial year is described in the special report meetings;
prepared by the Board of Directors of your Company.
We have verified the information contained in this the execution of the approved resolutions.
report and have no matters to report.
We did not observe any irregularities.

Monaco, le 22 avril 2024

Les Commissaires aux Comptes

Stéphane GARINO, Sandrine ARCIN.

34
35
Consolidated
accounts
 CMB Monaco • Annual Report 2023

Consolidated balance sheet

as at 31 December 2023 and 2022 before allocation of net profit

In thousands of euros 2023 2022

Cash, central banks 163.805 164.928

Due from banks 4.641.576 4.756.333
Customer loans 2.815.811 2.846.861
Bonds and other fixed income securities 974.425 680.918
Equities and other variable income securities 2.348 2.348
Participating interests and other financial investments 1.070 1.050
Interests in related companies 0 0
Goodwill, intangible assets 21.059 20.924
Property and equipment 160.360 149.832
Other assets 95.285 17.721
Deferred charges - accrued income 32.280 14.309
Total assets 8.908.017 8.655.222
Due to banks 1.920.375 1.410.171
Due to customers 5.677.150 6.105.283
Other liabilities 118.573 30.450
Accrued charges - deferred income 53.762 39.625
Provisions for contingencies and charges 2.196 2.004
General banking risks reserve 27.206 17.206
Share capital 111.110 111.110
Additional paid-in capital 4.573 4.573
Reserves 934.800 916.161
Group share 904.437 886.101
Minority interests 30.364 30.060
Retained earnings 0 0
Net profit 58.270 18.640
Group share 57.890 18.336
Minority interests 381 304
Total liabilities 8.908.017 8.655.222

Commitments and contingencies

Commitments given 1.041.868 1.071.305

Confirmed lines of credit 971.732 1.001.692
Guarantees given 56.734 69.613
Commitments relating to securities transactions 13.402 0
Commitments received 12.042 0
Commitments relating to securities transactions 12.042 0

36
Consolidated income statement
as at 31 December 2023 and 2022

In thousands of euros 2023 2022

Banking income and expense

Interest income 314.381 102.136

Interest expense (203.834) (36.791)

Income from variable income securities 24 17

Commission and fee income 78.629 76.917

Commission expense (4.424) (4.307)

Net gain (or loss) on disposal of trading account securities 378 832

Net gain (or loss) on disposal of securities available for sale 10.520 (3.617)

Other banking income 38 5

Other banking expense (3.988) (4.978)

Net banking income 191.724 130.214

General operating expenses (85.620) (75.924)

Depreciation and other write-downs of property, (11.378) (8.876)
equipment and intangible assets
Gross operating income 94.726 45.414

Depreciation on property revaluation reserve (4.702) (9.421)

Movement of provisions on loans and off-balance sheet items (2.330) (654)

Operating income 87.694 35.339

Gains and releases of provisions on long-term investments 0

Income before tax and non-operating items 87.694 35.339

Non-operating income 0

Income taxes (19.423) (7.261)

Provisions/reversals for general banking risks and regulated provisions (10.000) (9.438)

Net profit 58.270 18.640

Group share 57.890 18.336

Minority interests 381 304

Basic earnings per share 0.104 0.033

Diluted earnings per share 0.104 0.033

37
 CMB Monaco • Annual Report 2023

Changes
in consolidated shareholders’ equity

Consolidated General
Additional
Share reserves and Revaluation Retained banking Net
In thousands of euros paid-in Total
capital retained differences earnings risks profit
capital
earnings reserve

Balance as at 31/12/2022 111.110 4.573 795.202 120.959 0 17.206 18.640 1.067.690

Appropriation of 2022 net profit 18.640 (18.640) 0

Allocations to general 10.000 10.000

banking risk reserve
Amortisation of 4.702 (4.702) 0
revaluation difference

2023 net profit 57.890 57.890

Minority interests 381 381

Balance as at 31/12/2023 111.110 4.573 818.544 116.257 0 27.206 58.271 1.135.961

Minority interests of €30m relate to the share held by MEDIOBANCA via its 40% stake in CMB RED, which is fully
consolidated in CMB Monaco’s consolidated financial statements.

38
Notes
to the consolidated financial statements for the year ended 31 December 2023

The consolidated financial statements of the CMB Consolidation rules

group have been prepared in accordance with the
general accounting principles applicable in France for Intercompany accounts and income and expenses
credit institutions. arising on intra-group transactions that have a material
impact on the consolidated financial statements are
Rules for preparing the eliminated where they concern fully consolidated
subsidiaries.
consolidated financial statements
The group applies the ANC (Autorité des normes Accounting principles
comptables) regulation on the rules of consolidation and valuation methods
for companies governed by the ANC.
The Bank’s accounts are consolidated in the financial We refer to the developments in the notes to the stand-
statements of Mediobanca Spa, Piazzetta Enrico alone financial statements (2 – alinéas 2.1 à 2.12).
Cuccia, 1 – 20121 Milan – Italy.
Impact of the
Consolidation methods Russia-Ukraine crisis
Fully consolidated companies
The events in Ukraine in 2022 impacted the entire
global economy, including the stock markets.
Companies over which the group exercises exclusive
control are fully consolidated, including companies
CMB Monaco applies all the measures arising from
following a different chart of accounts whose business
international sanctions and has implemented all the
is an extension of the banking and financial businesses
due diligence required by these texts.
or concerns related activities, such as real estate and
services companies.
At this stage, the bank has not identified any significant
exposure to assets of Russian or Ukrainian issuers.
The group has exclusive control, through the direct or
indirect holding of the majority of the voting rights,
Moreover, the bank has not identified any risks arising
of the following consolidated companies: CMG, CMB
from the sanctions imposed on Russia that could have
RED.
a significant impact on the 2023 financial statements.
Other participating interests are excluded from the
scope of the consolidated financial statements because
CMB does not exercise significant influence over their
activity.

39
 CMB Monaco • Annual Report 2023

Other information

a. Consolidated goodwill, intangible assets, property and equipment

In thousands of euros 31/12/2022 Increase Decrease 31/12/2023

Gross amount

Goodwill, intangible assets 63.165 10.107 73.272

Property and equipment 279.641 23.553 (42) 303.152

Prepayments to suppliers 11.877 16.118 (22.787) 5.208

Total gross fixed assets 354.683 49.778 (22.829) 381.632

Depreciation

Goodwill, intangible assets (49.661) (8.721) (58.382)

Property and equipment (134.249) (7.564) (141.813)

Total depreciation (183.910) (16.285) 0 (200.195)

Provisions for impairment of assets (18) (18)

Net value 170.755 33.493 (22.829) 181.419

The intra-group sale of the “La Palmeraie” building in April 2022 is eliminated on consolidation as follows: the
intra-group profit included in the inventories of the property development company CMB RED is eliminated and
the inventories are reclassified to fixed assets at the carrying amount on the date of the sale. No impairment has
been identified since that date.

40
b. Breakdown of customer loans
In thousands of euros 2023 2022

Breakdown of loans
Overdrafts 1.231.266 1.062.029
Other customer loans 1.584.545 1.784.832
Total 2.815.811 2.846.861

c. Consolidated provisions for contingencies

Balance as at Additions during Reversals Utilised during Balance as at Loans at % of
In thousands of euros
31/12/2022 the year during the year the year 31/12/2023 31/12/2023 coverage

Provisions for contingencies

Provisions for doubtful customers 192 1.821 (14) 1.999 50.146 4%

Provisions for contingencies and 2.004 1.085 (893) (753) 2.196

charges

Total 2.196 2.906 (907) (753) 4.195 50.146

d. Accrued interest and other accruals included in consolidated balance

sheet items

In thousands of euros 2023 2022

Accrued income (classified within accounts receivable) 43.965 18.447

Due from banks 26.645 11.558
Customer loans 11.732 5.636
Bonds and other fixed income securities 5.588 1.253
Deferred charges - accrued income 29.561 14.309
Commitments on derivative financial instruments 24.818 10.211
Prepaid expense 2.233 2.078
Accrued income 2.510 2.020
Other

Total assets 73.526 32.756

Accrued expense (within accounts payable) 35.478 12.416

Due to banks 10.332 2.076
Due to customers 25.145 10.340
Accrued charges - deferred income 51.950 39.625
Commitments on derivative financial instruments 18.031 12.535
Deferred income 13 0
Accrued charges 33.874 27.058
Other 32 32

Total liabilities 87.428 52.041

41
 CMB Monaco • Annual Report 2023

e. Analysis of income and expenses

In thousands of euros Expense Income

Interest

Interbank transactions (73.805) 169.299

Customer transactions (129.760) 131.354

Bonds (269) 13.728

Subtotal (203.834) 314.381

Income from variable income securities

Participating interests 24

Subtotal 24

Commissions

Customer transactions (875) 17.561

Securities transactions (3.549) 61.068

Subtotal (4.424) 78.629

Trading account securities

Currency transactions 3.622

Securities transactions (3.244)

Subtotal (3.244) 3.622

Securities available for sale

Net gains and losses 7.393

Net changes in provision 3.127

Subtotal 0 10.520

General operating expenses

Personnel expenses

- Salaries and bonuses (42.170)

- Social security contributions (12.967)

General and administrative expenses (30.482)

Subtotal (85.620)

42
f. Breakdown of the cost of risk
In thousands of euros 2023 2022

Breakdown of the cost of risk

Reversal of doubtful debt provision 14 50

Reversal of risk provision (litigation) 893 103

Doubtful debt provision (1.821) (172)

Risk provision (litigation) (1.085) (623)

Loss on irrecoverable debt (331) (12)

Total (2.330) (654)

g. Consolidated employees
2023 2022

Consolidated employees

Executives 193 183

Senior employees 52 58

Staff 4 1

Total 249 244

43
 CMB Monaco • Annual Report 2023

Report of the statutory auditors

on the consolidated financial statements for the year ended 31 December 2023

To the Shareholders, An audit also includes evaluating the appropriateness

of the accounting policies used and the reasonableness
of the material accounting estimates made to draw up
We have audited the accompanying consolidated the financial statements, and assessing their overall
financial statements of CMB Monaco for the year presentation. We believe that our audit provides a
ended 31 December 2023. reasonable basis for our opinion.

The consolidated financial statements have been In our opinion, the consolidated financial statements
approved by the Board of Directors. It is our give a true and fair view of the assets and liabilities,
responsibility to express an opinion on these financial financial position and results of operations of the
statements based on our audit. consolidated group of entities.

Total assets on the balance sheet amount to We also verified the disclosures relating to the Group
8.908.017 K€ contained in the report of the Board of Directors. We
have no matters to report as to the fair presentation
The income statement shows a net profit of of these disclosures and their consistency with the
58.270 K€ consolidated financial statements.

We conducted our audit in accordance with

professional standards, which require that we Monaco, 22 April 2024
follow procedures to obtain reasonable assurance
that the consolidated financial statements are free The Statutory Auditors
from material misstatement. An audit involves the Stépane GARINO, Sandrine ARCIN.
use of sampling techniques in order to obtain audit
evidence to substantiate the amounts and disclosures
contained in the financial statements.

44
 CMB Monaco
17, avenue des Spélugues - 98000 Monaco
+377 93 15 77 77
[email protected]

Coordination, design and production

Ida COMMIN - CMB Monaco
Pierrick COLLIN - CMB Monaco

Photography
Hamed BAKIR

Printing
Multiprint Monaco

The financial statements in English are a faithful translation of the original French version but should not be considered
as legally binding due to the unavailability of English equivalents for certain specific French accounting terms.
Consequently, the English document is intended for information purposes only.

CMB Monaco, a Monaco public limited company duly authorised by the Monegasque Financial Activities Supervisory
Commission (Commission de Contrôle des Activités Financières - CCAF) under number 2014-08 for investment services,
and by the French Prudential Supervisory Authority (Autorité de Contrôle Prudentiel - ACP) for banking service).
 CMB Monaco
17, avenue des Spélugues - 98000 Monaco
+377 93 15 77 77
[email protected]