ourexpertise - Crédit Agricole CIB

2010 MANAGEMENT REPORT 3Discontinuing operations2010 2009Change2010/2009€ millionNet banking income (374) (1,347) (72%)Operating expenses (108) (124) (13%)Gross operating income (482) (1,471) (67%)Cost of risk (340) (737) (54%)Pre-tax income (822) (2,208) (63%)Corporate income tax 265 719 (63%)Net income, Group share (557) (1,489) (63%)The continued active portfolio management of discontinuing operationsled to reduce signifi cantly the losses from these operationsthat became less and less material in the Bank’s results. The netincome of discontinuing operations registered a loss of €557 millionat 31 December 2010 compared with a loss of €1,489 millionat the end of 2009, that is to say 63% lower.Exposure to exotic derivatives declined steadily over the year. Itregistered a profi t of €35 million compared with a loss of €72million in 2009.The stabilization plan implemented in June 2009 on the correlationportfolio has led to reduce volatility signifi cantly. The narrowing ofspreads, which had begun in the second quarter of 2009, coupledwith an active implied risk management has resulted in limitingthe loss in net banking income to - €141 million in 2010.Additional impairment losses on the CDOs, CLOs and ABS was of€608 million in 2010 (in NBI and cost of risk) following the slightlytightening of our recovery assumptions in the fi rst semester of2010, compared to a loss of €1.8 billion in 2009. These fi guresinclude counterparty risk on monoline insurers and Credit DerivativeProducts Companies, whose exposures are still reducing.For example, residual exposure to monocline insurers amountedto €159 million at 31 December 2010.Additional information concerning the nature of the main exposuresis provided in the section of the management report entitled« Sensitive Exposures based on the Financial Stability Boardrecommendations« page 108.SHELF-REGISTRATION DOCUMENT CRÉDIT AGRICOLE CIB 2010 83