French banks’ CACEIS venture now operational
FRANCE – CACEIS, a new securities services joint venture between two major French banks, is now operational.
The new outfit, jointly owned by Crédit Agricole and Groupe Caisse d’Epargne, was presented to the press by the bank’s top management at an event in Paris this week.
Caisse Nationale’s investment banking chief Anthony Orsatelli has been named chairman for a two-year term while Crédit Agricole’s asset management head Thierry Coste becomes vice chairman.
The supervisory board is made up of equal numbers of representatives of both shareholders – “reflecting the equality in their partnership”.
The three-strong management board are appointed for five-year terms. Chairman François Marion will focus on audit, compliance, risk, finance and human resources.
Chief executive Michel Bois’ focus will be on subsidiaries based in France, operations and information systems.
And management board member Guillaume Fromont will handle units outside France, sales and business development.
“The organization of the CACEIS Group is currently in progress with the recent appointment of its senior management team, the implementation of the company’s overall supervisory structure, the launch of the brand and adoption of a single commercial approach,” CACEIS said.
The venture reflects both groups’ determination to combine the securities services businesses of their respective subsidiaries, Crédit Agricole Investor Services and IXIS Investor Services.
Their stated aim is to create a “major European institution offering financial services to institutional investors and major corporations”.
The owners say CACEIS will benefit from the financial strength of its shareholders. It will have over €300m of Tier 1 shareholder equity and is expected to generate net banking income of about €500 million in 2005.
It will have and gross operating income in excess of €100m and some 2,400 staff.
“From the very outset, CACEIS ranks as a major player in the European market in its core business lines: depositary and custodian banking services, fund administration, and corporate trust services,” they say.
It will be one of the world’s top 10 global custodians with total assets under custody of €1.435trn in the institutional segment alone.
It is also the number one depositary bank in France with a 35% market share and the largest bank in terms of assets held with Euroclear France – with a 35% market share. It will also be the largest administrator of collective investment vehicles in France, again with a market stake of 35%.
CACEIS will be the fourth largest fund administrator in Luxembourg and one of Europe’s leading fund administrators, with €681bn in assets and more than 5,000 portfolios.