The Caisse des dépôts (CDC) was able to weather the tremors of the financial markets and a quadrupling of the Livret A rate to present Thursday a solid net profit of 4.2 billion euros, however down 9% over one year. “These results are really very good,” said Eric Lombard, CEO of the group, to AFP, despite an “adverse” market context last year. The “Caisse” had approached 4.6 billion euros in profit in 2021. In detail, the savings fund, where a large part of the regulated savings of the French is centralized and managed, posted last year 886 million euros in net income, compared to 710 million euros in 2021 (+24%).
This performance is noteworthy because the cost of Livrets A, Livrets de développement durable et solidaire (LDDS) and other popular savings accounts (LEP) increased sharply due to a quadrupling of the rate last year, from 0.5 % to 2%, in two stages, on February 1 and August 1. It amounts to 5.8 billion euros for 2022.
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Encouraging results
The CDC was able to cushion the shock thanks to the products of bonds indexed to inflation, which were very profitable last year, but also by passing on the rise in the rate to the loans it grants, to local authorities and public companies or even social housing organizations. The general section, which brings together all the other activities of the group, generated a net result of 3.3 billion euros, against 3.9 billion euros in 2021 (-15%), due in particular to devaluation of certain assets.
The financial arm of the State and guardian of the Livret A account benefited from the good performance of its subsidiaries, such as the manager of the high voltage network RTE or the ski area operator Compagnie des Alpes, which also owns leisure parks. It will pay the State the sum of 2.4 billion euros in respect of the results of the savings fund and the general section, but also via a form of corporate tax.
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Nuclear and retirement homes
The Livret A contribution to financing the revival of nuclear power, mentioned by Eric Lombard himself on January 10 during a hearing at the National Assembly and then more recently by the Minister for Energy Transition Agnès Pannier-Runacher, “does not would in no way upset” the current funding policy of the venerable institution, assures its director general.
The cost of the program of six new generation EPR2 reactors is estimated by EDF at 51.7 billion euros (excluding financing costs). For comparison, this is the equivalent of the net balance of deposits on Livret A and LDDS accounts since January 2022. Eric Lombard, reappointed to his post in January, also returned to the Orpea file.
The group of retirement homes, in turmoil since the publication in early 2022 of the investigative book “Les Fossoyeurs” and its revelations of mistreatment and financial irregularities, must come under the control of a group led by the Caisse des dépôts and including insurers like CNP Assurances, Maif and MACSF. The CDC hopes that the entry into the capital will materialize after the summer.
Several crucial steps must be taken by then, lists Eric Lombard: obtaining a favorable decision from the Commercial Court of Nanterre (Hauts-de-Seine) in charge of the accelerated safeguard procedure, the implementation of the capital increase operation, an exemption from the Financial Markets Authority (AMF) for the company to remain listed on the stock exchange. The year 2023 is however likely to be less prosperous for the “Caisse”, which should see the burden of remuneration for regulated savings double.