1. Overview 1 2 3 Corporate overview and strategic analysis 4 5 6 7
BRP course - Team 6

2. DOMINO GROUP 3. Corporate overview and strategic analysis
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3. Corporate overview and strategic analysis
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DOMINO GROUP
3.1.Group Presentation
Universal bank – mainly traditional banking
banking and financial products and services to households and corporate customers
Regional Bank – operating across FRANCE (home market), Germany, Switzerland and the UK
Listed on the NYSE Euronext
Significant Bank in France (not qualifying as G-SII or O-SII);
Retail Mortgages – the main product (40% of total loan portfolio)
Retail Deposit Funded (80% of total funding)
The Recovery Plan does not include the criteria upon which the bank is considered significant in France (market share, volumes, number of transactions) - Art. 6 (3)(a)(i) and (ii) RTS Content of Recovery Plans
BRP course - Team 6
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3. DOMINO GROUP 3. Corporate overview and strategic analysis
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3. Corporate overview and strategic analysis
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DOMINO GROUP
This Chapter of RP does not cover all the essential information comprised by Art. 6 (3)(a)(i) and (ii) RTS Content of Recovery Plans
What percentage of the Group’s income is generated in France;
A description of all entities covered by the RP, activities and percentage of income generated by them;
Compass Bank UK is a material legal entity due to the fact that it provides significant funding to the group and is significant for the UK retail banking;
More information on risk strategy and business plan should be provided.
BRP course - Team 6
Name of the Author

4. DOMINO GROUP 3. Corporate overview and strategic analysis
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3. Corporate overview and strategic analysis
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DOMINO GROUP
3.5. Core Business Lines (CBLs) - Art. 6 (3)(a)(iii) RTS Content of Recovery Plans
Domino Group identified four CBLs (by contribution to revenue and to profit):
Retail
Large Corporates and Institutions
SMEs
Banking Services
The RP comprises inconsistencies regarding the information on profit shares by business segmentation
e.g. Banking Services’ profit share is 16% on page 10, but 12% on page 12 of the Recovery Plan; Group Function & Other’s profit share is 9% on page 10, but 17% on page 12 of RP.
More information on “Group Function & Other” is also needed.
Domino Group should consider Retail Deposit as a CBL based on the qualitative criterion of “funding/liquidity source” - EBA Report of 06 March 2015 on Recovery Planning , page 14 – Criteria for identifying core business lines. Retail Deposit Funded represents 80% of Total Funding.
BRP course - Team 6
Name of the Author

5. DOMINO GROUP 3. Corporate overview and strategic analysis
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3. Corporate overview and strategic analysis
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DOMINO GROUP
3.6. Critical Functions (CFs) - Art. 6 (3)(a)(iii) RTS Content of Recovery Plans
Domino Group identified Account Servicing (including Retail deposit current accounts) as a CF across France.
RP should provide the more accurate information regarding the market share of retail deposits in each of the other three countries in order to assess the systemic importance of Retail Deposits Accounts. According to RP, in each of the other three countries, the Group’s market share is below 10% of the market for deposits or credit. According to paragraph 3.4.(9) EBA Report of 06 March 2015 on Recovery Planning, “for economic functions like retail deposits, a market share of 3% and 5% was generally considered a level appropriate for determining criticality, considering that the market for this service is often fragmented.”
The Compass bank perform also critical function in UK given it has a large share in the UK retail mortgage market (significant domestic retail bank ranking third in the country in terms of market share for lending and second for deposits).
Mapping of CFs and CBLs to material legal entities and branches - Art. 6 (3)(b) RTS Content of Recovery Plans – not covered by Recovery Plan
BRP course - Team 6
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6. DOMINO GROUP 3. Corporate overview and strategic analysis
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3. Corporate overview and strategic analysis
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DOMINO GROUP
3.7. Interconnectedness
The bank do not provide explanation for:
External interconnections and intra-group operational interconnections;
Legal interconnectedness, which shall cover material legally binding agreements between entities of a group including, for example, the existence of domination agreements and profit and loss transfer agreements;
Operational interconnectedness, which concerns functions that are centralised in one legal entity or branch and are important for the functioning of other legal entities, branches or the group, in particular centralised information technology functions, treasury functions, risk functions or administrative functions; any existing group financial support agreements concluded in accordance with Article 19 of Directive 2014/59/EU including the parties to the agreement, the form of the financial support and the conditions associated with the provision of the financial support;
External interconnectedness including at least: (i) significant exposures and liabilities to main counterparties; (ii) significant financial products and services which are provided by the entity or entities covered by the recovery plan to other financial market participants; (iii) significant services which third parties provide to the entity or entities covered by the recovery plan.
BRP course - Team 6
Name of the Author