2005 Annual Report - Banque PSA Finance

www.banquepsafinance.com
2005
Annual report

BOARD OF DIRECTORS MANAGEMENT STATUTORY AUDITORS
YANN DELABRIÈRE YANN DELABRIÈRE PRICEWATERHOUSECOOPERS AUDIT
Chairman & Chief Executive Officer Chairman & Chief Executive Officer MAZARS & GUÉRARD
HERVÉ GUYOT HERVÉ GUYOT ALTERNATE AUDITORS
Chief Operating Officer Chief Operating Officer GUILLAUME POTEL
YVES NICOLAS
JEAN-MARTIN FOLZ
Director
PEUGEOT S.A.
Permanent Representative:
JEAN-CLAUDE HANUS
AUTOMOBILES PEUGEOT
Permanent Representative:
FRÉDÉRIC SAINT-GEOURS
AUTOMOBILES CITROËN
Permanent Representative:
CLAUDE SATINET
BANQUE PSA FINANCE
Société anonyme incorporated in France
Common stock: €177,408,000
Head office: 75, avenue de la Grande-Armée - 75116 Paris
Registered in France: number B 325 952 224 - siret 325 952 224 00013
APE code 651 C
Interbank code 13168N
Phone: + 33 (0)1 46 39 66 33 - Fax: + 33 (0)1 46 39 54 03
As of February 7, 2006

Banque PSA Finance, a wholly-owned Peugeot S.A. subsidiary, finances the purchase of Peugeot and Citroën vehicles in eighteen
countries worldwide. It finances the vehicle and replacement parts inventories of Peugeot and Citroën dealers and offers retail
and fleet customers a diversified range of financing solutions and related services.
Contents
BANQUE PSA FINANCE
Key Figures _________________________________________________________________________________________________________________________________________________________________________________ 2
Chairman’s Letter ________________________________________________________________________________________________________________________________________________________________ 3
Financial Highlights ___________________________________________________________________________________________________________________________________________________________ 4
Banque PSA Finance Business Review ________________________________________________________________________________________________ 6
Results and Outlook ________________________________________________________________________________________________________________________________________________________ 13
Refinancing strategy _______________________________________________________________________________________________________________________________________________________ 14
Ratings ______________________________________________________________________________________________________________________________________________________________________________________________ 16
Financial Risk Management __________________________________________________________________________________________________________________________________ 16
Credit Risk Management __________________________________________________________________________________________________________________________________________ 17
Internal Control _______________________________________________________________________________________________________________________________________________________________________ 19
Banque PSA Finance in 2005 _____________________________________________________________________________________________________________________________ 21
Consolidated financial statements _______________________________________________________________________________________________________________ 24
ANNUAL AND EXTRAORDINARY STOCKHOLDERS’ MEETING
APRIL 24, 2006
Banque PSA Finance - 2005 annual report
1

KEY FIGURES
KEY FIGURES
Number of vehicles financed, retail loans
(in thousands of vehicles)
182
38.8
Used vehicles New vehicles Total
619
801
Germany
Austria
Belux
Spain
France
Hungary
Italy
180
623
803
189
657
846
192
2001 2002 2003 2004 2005
21.0
23.4
22.3
30.1
10.6
26.4
11.0
25.7
28.2
28.6
12.9
2 Banque PSA Finance - 2005 annual report
640
832
30.3
30.5
188
7.0
660
23.7
848
Penetration rate by country at Dec. 31, 2005 (as a %)
(new vehicles financed / new PSA Peugeot Citroën vehicles registered)
152
Consolidated stockholders’ equity
Consolidated net income
194
287
44.1
Netherlands
Poland
Portugal
United Kingdom
Slovakia
Switzerland
Czech Republic
Argentina
Brazil
Mexico
Stockholders’ Equity and net income at Dec. 31
(in millions of euros)
1,490
1,675
1,786
2,106
331
405 2,429
2001 2002 2003 2004 2005
IFRS standards since 2004
27.1
BPF Group
Outstanding retail and wholesale loans at Dec. 31
(in millions of euros)
Wholesale
loans
4,352
12,863
17,215
4,809
Retail loans
and other
13,878
18,687
4,531
15,136
Total Securitized loans
19,667
5,421
15,760
21,181
5,564
16,853
2001 2002 2003 2004 2005
IFRS standards since 2004
Outstandings by country at Dec. 31, 2005
(in millions of euros)
638
Germany
2,461
87
180
306
635
703
Austria
Belux
2,340
1,514
6,613
Spain
France
51
34
Net banking revenue
(in millions of euros)
797
913
1,350
799
Hungary
Italy
276
Wholesale loans
Retail loans
Securitized loans
1,897
Netherlands
Poland
Portugal
United Kingdom
Slovakia
Switzerland
Czech Republic
Argentina
Brazil
Mexico
1,037
60
150
435
753
12
46269
33 255
9
92
876
933
2001 2002 2003 2004 2005
IFRS standards since 2004
22,417
0 55
17
80
226
41
0

CHAIRMAN’S LETTER
CHAIRMAN’S LETTER
2005 was another year of business growth, with outstanding loans and new lending to
Peugeot and Citroën customers both increasing by some 6%. The sustained expansion
reflects our success in holding onto the strong positions that we have acquired in various
host countries. However, it is also attributable to sharply improved performance in the
European countries where our position eroded somewhat in 2004, as well as in Central
Europe and Latin America.
Increased business volumes were accompanied by the high margins that were also a
feature of 2004, thanks to the low refinancing rates enjoyed in the first three quarters.
They testify to the effectiveness of our marketing policy and the ongoing success of
our combined financing and service solutions. Sales of service contracts expanded by
a very satisfactory 16.3%, led by a strong showing in auto insurance, a market in which we are aiming to gradually become a
significant player.
Net income attributable to equity holders rose 23% to €402 million, representing 1.8% of outstanding loans. Robust business
growth and sustained margins contributed to the increase, as did advances in the area of costs. The use of high quality risk selection
and management tools provided scope for a significant reduction in the cost of risk, while sound cost discipline ensured that
operating expenses rose at a slower rate than revenue. The higher income paved the way for a significant rise in the dividend
combined with a 15% increase in equity.
As well as achieving strong business and earnings growth, during 2005 our Bank also continued to broaden its geographic
reach. Operations in Mexico were extended to include the provision of wholesale financing to Peugeot dealers, while in China
our partnership with the Bank of China to finance Peugeot and Citroën car sales was finalized. We will begin offering wholesale
financing to Peugeot and Citroën dealers in China and retail financing to their customers in 2006, and will also set up a business
base in Turkey.
Internally, considerable time and effort was devoted to preparing for the implementation of the new international regulations
known as “Basel II”. The new procedures and disclosures will provide clearer evidence than in the past of the quality of our
loan book and of our system of internal control, which was considerably strengthened in 2005. For these reasons, we intend
to complete the migration to Basel II as quickly as possible.
All of these favorable developments should lead to another year of business growth in 2006, not only in our traditional market
of Western Europe, but also in our newer markets of Latin America, Central Europe and now China. Concerning our earnings
outlook, despite a significantly less favorable interest rate environment than in 2005, all of our teams are committed to ensuring
that our Bank’s high level of profitability is maintained.
Yann Delabrière
Chairman
Banque PSA Finance - 2005 annual report
3

NEW FINANCING
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
(in millions of euros)
Retail loans
2005 2004 % change
Number of vehicles financed 848,303 ( * ) 831,769 +2.0
Amount of financing (excluding interest)
Wholesale loans
9,152 8,661 +5.7
Number of vehicles financed 2,103,721 2,117,299 -0.6
Amount of financing
Outstanding loans at December 31
By type of customers
38,992 37,284 +4.6
Retail loans 16,853 15,760 +6.9
Of which securitized retail loans 1,655 2,416 -31.5
Wholesale loans 5,564 5,421 +2.6
Total 22,417 21,181 +5.8
(*) Including financing in Mexico, where Banque PSA Finance's subsidiary acts as a broker between the marque Peugeot and its dealer
network and the local bank partner
CONSOLIDATED FINANCIAL DATA
At december 31 (in millions of euros) 2005 2004 % change
Consolidated stockholders’ equity before income appropriation 2,429 2,106 +15.3
Total assets 26,704 25,524 +4.6
European capital adequacy ratio
Financial results
9.30% 9.88%
Net banking revenue 933 876 +6.5
Pre-tax income 608 514 +18.3
Net income for the year 405 331 +22.4
Profit attributable to equity holders of the parent 402 326 +23.3
4 Banque PSA Finance - 2005 annual report

Mexico
♦ ❍
BUSINESSES OF THE MAIN BANQUE PSA FINANCE GROUP COMPANIES
Country % Company Automotive Refinancing
interest Financing
Germany Banque PSA Finance SA Niederlassung Deutschland ■ � ❍
Austria 100% PSA Finance Austria Bank AG ■ � ❍
Belgium
Luxemburg
Brazil
■�❍
■�
Argentina
Spain
Portugal ■�❍
■�❍
100% PSA Finance Belux ■ � ❍
Spain Banque PSA Finance – Sucursal en España ■ � ❍
France Banque PSA Finance ▲
100% Crédipar Group ■ � ❍
98% Sofira ❍
100% Sofib ❍
Hungary 100% PSA Finance Hungaria ■ ❍
Italy Banque PSA Finance – Succursale in Italia ■ � ❍
Netherlands 100% PSA Finance Nederland B.V. ■ � ❍
100% Peugeot Finance International NV. ▲
Poland Banque PSA Finance SA Oddzial w Polsce ■ ❍
100% PSA Finance Polska Sp. � ❍
Portugal Banque PSA Finance – Succursal em Portugal ■ �
100% PSA Gestao Comercio E Aluguer de Veiculos � ❍
United Kingdom Banque PSA Finance – Branch in UK ■ �
50% PSA Finance Plc ( * ) ■ �
100% PSA Wholesale Ltd ❍
Slovakia 100% PSA Finance Slovakia S.r.o. ■ � ❍
Switzerland 100% PSA Finance Suisse S.A. ■ � ❍
Czech Republic 100% PSA Finance Ceska Republika S.r.o. ■ � ❍
Argentina 50% PSA Finance Argentina S.A. ■ �
Brazil 100% Banco PSA Finance Brazil S.A. ■ ❍
100% PSA Finance Arrendamento Mercantil S.A. �
Mexico 100% Banque PSA Finance Mexico, S.A. de C.V. ♦ ❍
(*) Manages outstanding loans existing at December 31, 2001
Netherlands
■�❍
▲
Belux
■�❍
Switzerland
France ■�❍
■�❍
▲
Germany
■�❍
Czech Republic
■�❍
Austria
■�❍ Hungary
United Kingdom
■�❍
Poland
■ ❍�
Slovakia
■�❍
■ ❍
Italy
■�❍
■ Retail financing (installment sales)
� Retail financing (leases with purchase options
or long-term rentals)
❍ Wholesale financing
▲ Refinancing of Banque PSA Finance entities
♦ Brokerage of retail financing products
Banque PSA Finance - 2005 annual report
5

Slight increase in PSA Peugeot Citroën
worldwide sales in a highly competitive market
PSA Peugeot Citroën worldwide unit sales rose 0.4% to
3,390,000 vehicles in 2005, reflecting a strong performance
in international markets, where unit sales gained 8.3% during
the year, and a contraction in Western Europe, where sales
declined 2.7% in an environment shaped by flat demand and
aggressive competition.
In Western Europe the Group’s new car and light commercial
vehicle registrations declined 2.1% to 2,355,000 units, in a
market up just 0.2%. Market share eased to 14.3% from
14.6% the year before, as the Group continued to focus on
margins rather than volumes in a tight market.
Unit sales outside Western Europe continued to expand, rising
to 1,029,500 vehicles (738,000 Peugeots and 291,500 Citroëns)
and representing a 30.4% share of consolidated worldwide
sales compared with 28.2% in 2004 and 24.9% in 2003.
For the PSA Peugeot Citroën Group as a whole, highlights of
the year included:
- The sustained popularity of the Peugeot 407, which sold
241,400 units and saw its line-up broadened by the year-end
introduction of the Coupé version.
6 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE BUSINESS REVIEW
BANQUE PSA FINANCE BUSINESS REVIEW
PEUGEOT AND CITROËN SALES
BANQUE PSA FINANCE REVENUES
In the eighteen countries of Western Europe, Latin America
and Central Europe where Banque PSA Finance operated
in 2005, new PSA Peugeot Citroën vehicle registrations
edged back 0.1% to 2,432,700 units.
The Bank’s business base was virtually the same as in 2004,
with the exception of Mexico, where 2005 was the first full
year of operation of a local unit set up in November 2004. In
2006, the base will be extended to China, with the start-up
of operations of a local finance company in partnership with
the Bank of China.
- The success of the Citroën C4, which was launched in
November 2004 and sold 237,100 units in its first full year
on the market.
- The continued resilience of the Peugeot 307, whose sales
eased just 10.5% to 520,400 units. Sales were supported
by the launch of the 307 Sedan in China and the June rollout
of the restyled New 307.
- Sustained firm sales of the Peugeot 206, which, with
676,500 units sold, was still Europe’s best selling compact.
- The robust resistance of the Xsara Picasso, which sold
186,000 units in a segment where competing line-ups
were extensively renewed during the year.
- The strong 12.1% increase in Peugeot 607 sales, led by the
introduction of the V6 HDi engine with DPF.
- The June launch of the Peugeot 107 and the Citroën C1,
which met their targets for the year with sales of 31,700
and 30,100 units respectively.
- Steady sales of the Peugeot Partner and Citroën Berlingo,
which held firm at their historic highs, with 313,900 units
sold.
� RETAIL FINANCING
Further strong improvement in business
performance
In new vehicle financing, 2005 saw significant new
improvement in the Bank’s business performance, with its
penetration of Peugeot and Citroën sales rising to 27.1% from
26.3% in 2004.
Western Europe
In France, Crédipar’s business results continued on an
upward trend, as the penetration rate widened to 30.1%

from 29.8% in 2004. This confirmed the effectiveness of
a system based on assertive marketing and an extensive
range of solutions.
The most significant gains were in the United Kingdom,
where the new vehicle penetration rate climbed to 28.6%
from 22.2% in 2004. The improvement was led by the
emphasis on seamlessly integrating local financing solutions
with those offered by the marques, which represents an
important competitive advantage in driving further business
expansion in the UK.
Market share increased in five other countries. Gains were
particularly strong in Austria, where a large number of
targeted campaigns were successfully conducted in the
second half and where the December launch of a variablerate
financing solution is expected to provide critical support
for future growth.
Banque PSA Finance – Succursale in Italia maintained its high
penetration, demonstrating its successful response to the
upsurge in competition.
The only two European countries where performance
declined in 2005 were Spain and Portugal, as the decision to
abandon certain low-margin market segments led to an
expected reduction in volumes. Redeployment to a new
business base is expected to be completed in 2006.
Latin America
Peugeot and Citroën enjoyed strong growth in registrations in
Brazil and Argentina, driving a sharp increase in loan originations,
of 29% and 66% respectively.
In Brazil, Banco PSA Finance Brazil financed 23.7% of
Peugeot and Citroën sales, up 0.6 points, confirming the
NEW RETAIL FINANCING
BANQUE PSA FINANCE BUSINESS REVIEW
effectiveness of the sales organization set up under the
partnership with ABN Amro. In Argentina, where the auto
finance market is still very small, PSA Finance Argentina, the
joint venture with the BBVA Group’s Banco Frances,
increased its penetration rate to 7.0% in its second year in
business. The year also saw the development of marketing
programs and the structuring of the company’s product
offering.
In Mexico, the company set up in November 2004 turned in
a remarkable performance in its first full year of business,
with a penetration rate of 44.1%. While continuing to leverage
HSBC’s logistics operations, the company plans to change
its business license in 2006 to be able to carry its retail loans
in its balance sheet.
Central Europe
The most significant developments in Central Europe
concerned the operations in Poland and the Czech Republic,
where Bank’s penetration rates rose, respectively, 2.6 points
(to 25.7% from 23.1%) and 4.6 points (to 30.5% from
25.9%). In its second full year of operation, the Hungarian
finance company reported a penetration rate of 10.6%,
reflecting the difficulties of an extremely competitive
market.
In used vehicle financing, the Bank continued to actively
support dealer needs, adapting its solutions to each market
and consistently seeking the most effective mix of business
growth and risk containment.
In all, the number of new and used vehicle loan orginations
rose by 2.0% during the year, representing a 5.7% increase
in amounts financed.
2005 2004 % change
Number of contracts
Installment sales 614,114 608,743 +0.9
Leasing activity 234,189 223,026 +5.0
Total
In millions of euros (excluding interest)
848,303 831,769 +2.0
Installment sales 6,043 5,827 +3.7
Leasing activity 3,109 2,834 +9.7
Total 9,152 8,661 +5.7
Banque PSA Finance - 2005 annual report
7

8 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE BUSINESS REVIEW
NUMBER OF NEW AND USED VEHICLES FINANCED BY BANQUE PSA FINANCE
Retail financing by country
(number of vehicles) 2005 2004 % change
Germany 102,161 93,072 +9.8
Austria 9,824 7,685 +27.8
Belgium-Luxemburg 32,251 30,155 +7.0
Spain 98,779 114,637 -13.8
France 330,834 319,996 +3.4
Hungary 2,541 4,425 -42.6
Italy 70,304 79,169 -11.2
Netherlands 11,810 13,147 -10.2
Poland 9,111 8,824 +3.3
Portugal 18,825 19,823 -5.0
United Kingdom 107,770 102,721 +4.9
Slovakia 1,277 1,144 +11.6
Switzerland 10,929 10,631 +2.8
Czech Republic 4,669 3,970 +17.6
Argentina 3,873 2,338 +65.7
Brazil 25,829 20,032 +28.9
Mexico 7,516
Total 848,303 831,769 + 2.0
BANQUE PSA FINANCE PENETRATION RATES
PSA Peugeot Citroën New vehicles Banque PSA Finance
Market share by registrations ( * ) financed ( * ) penetration rates (%)
countries 2005 2004 2005 2004 2005 2004
Germany 202,100 193,000 78,335 71,081 38.8 36.8
Austria 32,100 31,200 6,749 5,098 21.0 16.3
Belgium-Luxemburg 122,900 122,500 28,797 26,845 23.4 21.9
Spain 394,400 392,000 88,143 100,306 22.3 25.6
France 785,000 772,100 236,246 230,255 30.1 29.8
Hungary 18,500 24,700 1,962 3,948 10.6 16.0
Italy 240,500 270,700 63,441 71,067 26.4 26.3
Netherlands 69,300 80,400 7,642 7,483 11.0 9.3
Poland 32,600 36,500 8,372 8,332 25.7 23.1
Portugal 52,300 51,700 14,749 15,927 28.2 30.8
United Kingdom 283,300 312,600 81,014 69,293 28.6 22.2
Slovakia 9,700 8,600 1,250 1,035 12.9 12.0
Switzerland 28,000 28,800 8,487 8,124 30.3 28.2
Czech Republic 14,400 14,700 4,385 3,814 30.5 25.9
Argentina 50,200 32,800 3,511 2,170 7.0 6.6
Brazil 80,400 63,800 19,065 14,727 23.7 23.1
Mexico 17,000 7,474 44.1
Total 2,432,700 2,435,600 659,622 639,505 27.1 26.3
(*) Cars and light commercial vehicles

A dynamic marketing strategy
In 2005, the Bank continued to focus on supporting the
marketing strategies of the two marques, in line with its
strategic vision.
As part of this commitment, it continued to broaden its range
of finance products and services, so that carbuyers can
choose just the right solution, either in the dealership or from
each marque’s specialized organizations. Examples include
integrated products that enable customers to sign up for such
marque delivered services as maintenance and extended
warranties or offer the possibility of trading in the car when
(or even before) the finance agreement expires. These
products represent an increasingly significant portion of total
loan originations.
Initiatives were also taken with the marques to offer a more
coordinated response to the special needs of fleet buyers. This
was particularly the case for long-term leasing solutions, which
will be a major growth driver for the years ahead.
Lastly, the Bank remained committed to contributing effectively
to new model launches, promotional campaigns, weekend
OUTSTANDING LOANS
BANQUE PSA FINANCE BUSINESS REVIEW
open houses and other events organized by the two marques,
with attractive financing solutions and, when needed, an
extensive on-site presence.
In all of these areas, where customer and dealer satisfaction
are paramount, the Bank has set the highest standards of quality
throughout the life of the loan, from signing to final payment.
As part of the process that has enabled all of its operations to
be certified ISO 9001 for many years now, the Bank is driving
continuous, strong improvement in quality performance in every
aspect of its business.
Continued growth in the retail loan book
The retail loan book amounted to €16,853 million at the
end of 2005, an increase of 6.9% over the year. This robust
growth, which was similar to the previous year’s, was
driven by the recent increase in loan originations, and
particularly the new gains enjoyed in 2005.
The above figure includes the automobile loans sold to the
Auto ABS special purchase vehicle as part of the Bank’s
securitization program.
(In millions of euros)
Retail loans outstanding
Dec. 31, 2005 Dec. 31, 2004 % change
Net of deferred income and allowances for credit losses 16,853 15,760 +6.9
Banque PSA Finance - 2005 annual report
9

New developments in the service business
The service business continued to expand rapidly in 2005. A
total of 1,133,936 contracts were sold, representing an increase
of 16.3% compared with the previous year’s 975,016.
The strongest gains were in automobile services, led by auto
insurance. Developed with the backing of specialist partners,
the auto insurance solutions marketed under the Peugeot and
Citroën brands are now available in nearly all the Bank’s host
countries. This expanded geographic reach drove an increase
in the number of policies sold to over 171,000 in 2005 from
37,200 in 2004.
10 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE BUSINESS REVIEW
OUTSTANDING LOANS BY COUNTRIES
Outstanding loans at December 31, 2005 Outstanding loans at December 31, 2004
Wholesale Wholesale
(in millions of euros)
Countries
loans Retail loans Total loans Retail loans Total
Germany 638 2,461 3,099 587 2,198 2,785
Austria 87 180 267 88 150 238
Belgium-Luxemburg 306 635 941 301 591 892
Spain 703 2,340 3,043 578 2,330 2,908
France 1,514 6,613 8,127 1,502 6,278 7,780
Hungary 34 51 85 39 43 82
Italy 799 1,350 2,149 754 1,256 2,010
Netherlands 276 269 545 333 257 590
Poland 46 60 106 50 50
Portugal 150 435 585 143 414 557
United Kingdom 753 1,897 2,650 884 1,836 2,720
Slovakia 12 9 21 8 5 13
Switzerland 92 255 347 90 250 340
Czech Republic 33 55 88 31 33 64
Argentina 17 17 7 7
Brazil 80 226 306 33 112 145
Mexico 41 41
Total 5,564 16,853 22,417 5,421 15,760 21,181
Sales of other automobile services, including maintenance,
extended warranties and assistance, were up 5.6% over 2004.
In 2005, an average of 1.33 service contracts were sold for
every new or used vehicle financed. This was above the
average of 1.17 in 2004 and there is still room plenty of room
for growth, particularly in the countries of Western Europe
other than France. The Bank also intends to take advantage
of the latest European Union insurance directive to strengthen
its positions in local auto insurance markets as and when the
directive is incorporated in their national law.

SERVICES
(number of contracts) 2005 2004 % change
Financial services 541,054 538,308 +0.5
Car insurance 171,040 37,184 +360.0
Vehicle related-services 421,842 399,524 +5.6
Total 1,133,936 975,016 +16.3
WHOLESALE FINANCING
In 2005, Banque PSA Finance continued to work closely with
Peugeot and Citroën dealers to support their business
expansion. Thus, in Mexico, local subsidiary BPF Mexico
began offering financing for Peugeot dealers in December.
NEW WHOLESALE FINANCING
Outstanding wholesale financing at December 31, 2005
amounted to €5,564 million, an increase of 2.6% over the
year-earlier figure. The strongest growth was in spart parts
financing, whose outstandings rose 13% after gaining 26.1%
in 2004.
2005 2004 % change
Number of vehicles
Amount (in millions of euros)
2,103,721 2,117,299 -0.6
Vehicles 34,657 33,483 +3.5
Replacement parts 4,335 3,801 +14.0
Total 38,992 37,284 +4.6
WHOLESALE OUTSTANDING LOANS
BANQUE PSA FINANCE BUSINESS REVIEW
(in millions of euros)
Outstanding loans at December 31
2005 2004 % change
Vehicles 5,051 4,967 +1.7
Replacement parts 513 454 +13.0
Total 5,564 5,421 +2.6
Banque PSA Finance - 2005 annual report
11

12 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE BUSINESS REVIEW
WHOLESALE FINANCING BY COUNTRY
(number of vehicles financed) 2005 2004 % change
Germany 224,065 208,462 +7.5
Austria 34,114 33,802 +0.9
Belgium-Luxemburg 106,105 112,670 -5.8
Spain 308,862 303,660 +1.7
France 635,835 623,477 +2.0
Hungary 16,975 12,470 +36.1
Italy 232,701 262,599 -11.4
Netherlands 72,631 87,006 -16.5
Poland 27,950 29,405 -4.9
Portugal 49,259 46,642 +5.6
United Kingdom 272,619 319,172 -14.6
Slovakia 9,628 5,771 +66.8
Switzerland 33,107 31,585 +4.8
Czech Republic 13,997 15,270 -8.3
Brazil 65,873 25,308 +160.3
Total 2,103,721 2,117,299 -0.6
Management information system upgrades
In 2005, the Bank pursued the project launched five years
ago to migrate all operating units to a single information
systems solution.
Since 2002, the new retail financing system has been rolled
out to four finance companies, in the United Kingdom,
Germany, Switzerland and Austria. The deployment process
continued in 2005 and the new system will be fully
operational in Spain and Portugal in early 2006, with Italy next
in line for migration. In tandem with this deployment,
Crédipar’s business acquisition system has been extensively
upgraded. Offering state-of-the-art dealer applications and
optimized processes, the new system has been fully
operational since April of last year.
Two years ago, the Bank decided to set up wholesale
financing platforms shared by several countries. Three such
platforms are now up and running, covering ten countries
including Italy and Germany which migrated in 2005. The
new system, which has played a key role in standardizing
operating processes between countries and reducing costs,
will be rolled out to all subsidiaries and branches outside
France over the next three years.

RESULTS AND OUTLOOK
� RESULTS FOR THE YEAR
Consolidated pre-tax income totaled €608.4 million in 2005,
an increase of 18.3% over the previous year. Net income rose
23.3% to €401.7 million from €326 million.
This performance was primarily attributable to a combination
of business growth, higher margins and tight control over costs
and credit risks.
Net banking revenue rose by a strong 6.5% (up €57 million) to
€933 million. The increase was entirely due to growth in the
loan book, which remained just as profitable as in 2004 thanks
to stable margins on new lending.
Banking expenses included €9.3 million in costs related to
purchases of interest rate swaps to cap refinancing costs on
new lending.
General operating expenses amounted to €288 million versus
€279 million in 2004, an increase of 3.2%.
Gross operating profit was 7.8% higher, at €632 million.
Cost of risk expressed as a percentage of average net loans
(referred to as the “credit loss ratio”) stood at 0.12%. Retail
financing cost of risk includes the effect of improved
segmentation of non-performing loans, leading to the application
of provision rates that reflect actual risks more accurately.
Without these improvements, made possible by the
introduction of more advanced statistical and management
systems, the credit loss ratio would have been 0.24%. Overall,
credit losses in the various countries remained at a very
satisfactory level, attesting to the quality of risk selection
processes and the effectiveness of collection procedures
tailored to the situation of each individual debtor.
RESULTS AND OUTLOOK
RÉSULTATS ET PERSPECTIVES
� A STRONGER CAPITAL BASE
In line with the Bank’s policy of regularly increasing its Tier
One capital to keep pace with business growth, at the
Annual Meeting, stockholders will be asked to approve a
recommendation to reinvest 60% of net income for the year,
leading to a €241 million increase in equity, and to pay out
€161 million in dividends.
In June 2005, the Bank redeemed the €150 million in
subordinated securities issued in 2000 under the five-year
early redemption option.
After taking into account this transaction and the
recommended appropriation of income, regulatory capital
amounts to €2,062 million, up 3.4% on December 31, 2004.
This puts the Bank’s European capital adequacy ratio at
9.30% and the Tier One ratio at 9.61%. The Tier One ratio is
higher because no deduction is made for deposits set up
under the Bank’s securitization programs.
� OUTLOOK FOR 2006
In light of the Bank’s strong marketing momentum in 2005,
the current year should see a further significant increase in
retail loans. Banque PSA Finance also expects to continue
to broaden its geographic reach, with the start up of
operations by the finance company in China in partnership
with the Bank of China and the development of the business
base in Turkey.
Banque PSA Finance - 2005 annual report
13

REFINANCING STRATEGY
REFINANCING STRATEGY
Banque PSA Finance’s financing strategy is supported by a
capital base in line with regulatory requirements,
strengthened each year by the transfer to reserves of a
significant proportion of the year’s net income, as well as by
diversified external refinancing sources and lenders, asset
and liability maturity matching, and a strong liquidity cushion
through the availability of permanent liquidity reserves and
undrawn confirmed credit lines.
� DIVERSIFYING SOURCES
OF FINANCING
The Bank’s policy focuses on consistently maintaining a good
balance among the various sources of financing.
At December 31, 2005, 34% of financing was provided by
bank facilities (2004: 33%), 58% by the capital markets
(2004: 54%) and 8% by loan securitizations (2004: 13%).
Securitized loans totaled €1,853 million at December 31,
2005, after taking into account the winding down of the asset
pools for the 2001 securitization since July 2003 and the 2002
securitization since July 2004. In first-half 2006, the
contribution of securitizations to total refinancing will increase,
with the launch of a new program, this time involving the
securitization of lease financing.
� A DIVERSIFIED LENDER BASE
Banque PSA Finance continues to have a diversified lender
base, as demonstrated by the geographical breakdown of
refinancing secured during 2005 with an initial maturity of
twelve months or more. This breakdown has changed little
in the past three years.
14 Banque PSA Finance - 2005 annual report
This strategy, which was pursued throughout 2005, ensures
that Banque PSA Finance is not reliant on the PSA Peugeot
Citroën Group manufacturing and sales companies for its
financing. It also guarantees the sustainability of lending
operations even in periods of financial market turbulence.
Sources of refinancing (in millions of euros)
Dec. 03 Dec. 04 Dec. 05
Total Assets 24,362 25,524 26,704
O/w ext. refin. 20,150 21,245 22,354
1,989
2,256
2,430
Stockholders’ equity
+ subordinated debt
2,223
2,023
1,920
Other
liabilities
7,627
7,006
6,067
Bank
facilities
11,737
11,514
12,874
Capital
markets
Internal refinancing External refinancing
Geographic breakdown of the lender base
Refinancing with an initial maturity of 12 months or more,
as of December 31, 2005
France 38%
Other 2%
CEECs 2%
Germany + Austria 26%
Benelux 8%
Italy 9%
Spain 5%
UK + Ireland 9%
Nordic countries 1%
2,346
2,725
1,853
Securitizations

� MATURITIES
At December 31, 2005, 71% of refinancing had an initial
maturity of twelve months or more, representing continued
solid coverage of potential liquidity risk.
Last year’s increase in capital markets programs was split
evenly between short and long term funds.
Short-term programs amounted to €3,147 million at
December 31, 2005, while issues with maturities of more than
one year under the Bank’s EMTN program totalled €4.7 billion.
Excluding securitization, outstandings under long-term programs
(more than one year) amounted to €9,727 million, an increase
of €722 million compared with December 31, 2004.
� LIQUIDITY RESERVES
Banque PSA Finance has a strict policy of maintaining
liquidity reserves of more than €2,250 million at all times, in
the form of available cash or cash equivalents. Total available
cash and cash equivalents amounted to €2,585 million at
December 31, 2005.
� CAPITAL MARKETS PROGRAMS
� UNDRAWN CONFIRMED LINES OF CREDIT
At December 31, 2005, Banque PSA Finance had two
undrawn confirmed credit lines totaling €6 billion, of which
€3.3 billion expires in July 2010 and €2.7 billion in June 2008,
obtained from syndicates of leading banks.
In addition to these syndicated lines, the Bank has access to
confirmed medium-term bilateral bank facilities that are only
partly drawn down. The €962 million balance available at
December 31, 2005 can be drawn down at any time, as an
alternative source of financing to short-term capital markets
programs.
Visit www.banquepsafinance.com to find out more about Banque PSA Finance’s debt issuance programs, program
documentation, credit rating and outstandings. Information is updated monthly.
ISSUER TYPE Limit at Outstanding at
Rating (active programs) Dec. 31, 2005 Dec. 31, 2005
S&P Moody’s Short-term in millions
A2 P1 Banque PSA Finance CD EUR 2,500 EUR 1,547
A2 P1 Sofira
Long-term
BT EUR 1,800 EUR 1,600
A- A2 Banque PSA Finance BMTN EUR 1,000 EUR 297
A- A2 Banque PSA Finance (and PFI NV) EMTN EUR 12,500 EUR 9,195 ( * )
(*) Excluding accrued interest and issuing costs.
REFINANCING STRATEGY
Capital Markets (in millions of euros)
Dec. 03 Dec. 04 Dec. 05
Long-term capital markets 9,897 9,005 9,727
Short-term capital markets 1,840 2,509 3,147
Total (excl. securitized loans) 11,737 11,514 12,874
815
1,402
1,547
CD + CP
1,025
1,107
1,600
817
776
458
9,080
8,229
9,269
BT Bonds + BMTN EMTN
Short-term capital markets Long-term capital markets
Banque PSA Finance - 2005 annual report
15

RATINGS
16 Banque PSA Finance - 2005 annual report
CREDIT RATING AND FINANCIAL RISK MANAGEMENT
On January 13, 2006, Standard & Poor’s confirmed its
A- long-term rating and A2 short-term rating with positive
outlook. On July 18, 2005, Moody’s Investor Service confirmed
FINANCIAL RISK MANAGEMENT
� CURRENCY RISK
Banque PSA Finance does not take currency positions. The
assets and liabilities of each entity are matched through the
use of appropriate financial instruments.
� INTEREST RATE RISK
Bank policy aims at neutralizing the effects of changes in
interest rates on the operating margin of each entity, by using
appropriate financial instruments to match interest rate
profiles between assets and liabilities. Concerning assets,
interest rate swaps are purchased on the market as soon as
new retail financing is granted to convert interest on the loans
to a variable rate based on a 3-month benchmark. In practice,
the swaps are purchased at ten day intervals, covering pools
of loans with the same maturity originated in the previous
ten days. Wholesale financing is granted at rates based on
short-term market rates, while the liquidity reserve is invested
at the same rates. This means that all of the Bank’s interestbearing
assets are at short-term rates.
Concerning liabilities, all new debt paying interest at a fixed
rate for more than six months is converted to a rate based
on a 3-month benchmark.
its A2 long-term rating and P1 short-term rating with stable
outlook.
These management techniques serve to neutralize interest
rate risks on the Bank’s balance sheet.
In order to cap the refinancing cost of new retail financing in
euros to be granted in 2006, Banque PSA Finance has
purchased swaptions (options on interest rate swaps) expiring
in the first, second and third quarters, on a total notional
amount of €3,768 million. The use of swaptions may be
continued in 2006, depending on market opportunities. In
January, options were purchased covering forecast loan
originations in the fourth quarter.
� COUNTERPARTY RISK
Banque PSA Finance’s exposure to counterparty risks is
limited to its use of derivatives governed by standard FBF or
ISDA agreements and very short-term cash investments.
Counterparties are all first-class financial institutions.

CREDIT RISK MANAGEMENT
Cost of risk expressed as a percentage of average net loans
before securitization (referred to as the “credit loss ratio”)
stood at 0.12% in 2005.
Retail financing cost of risk includes the effect of improved
segmentation of non-performing loans, leading to the application
of provision rates that reflect actual risks more accurately.
Without these improvements, made possible by the
introduction of more advanced statistical and management
systems, the credit loss ratio would have been 0.24% of
average net loans.
The ratio attests to the Bank’s ability to reconcile the
competing demands of business growth and control over
credit risks.
In wholesale financing, the low credit loss ratio is supported
by tried and tested decision-making processes which
guarantee a rapid response to any problems.
In retail financing, it is attributable to the quality of customer
selection methods and processes, and to the highly-effective
systems for dealing with payment incidents, combining the
ability to process very large transaction volumes with a tailored
management approach taking into account differing situations.
In the six countries where the new retail financing system
has been deployed, customer selection is based on a
CREDIT RISK MANAGEMENT
centralized credit scoring system administered and overseen
by a unit responsible for optimizing parameters and interfaces
to obtain the best possible results in each individual country.
Portugal and Italy are due to migrate to the system in 2006.
The system for dealing with payment incidents is equipped
with applications that automatically resubmit direct debits
and issue reminder letters, as well as call center applications.
In the four main countries – France, the United Kingdom,
Germany and Spain – the system enables all payment
incidents to be managed by a single center (based in
Levallois-Perret, Redhill, Frankfurt and Madrid respectively).
Regional hubs have been organized around two of the
countries – Germany and Spain – to enable the system to be
used by other countries. The Frankfurt center handles
collection procedures for Austria and Switzerland, while the
Madrid center provides the same service for Portugal. All of
these countries share the same applications. To achieve the
highest levels of efficiency, a competence and management
center was set up in the Bank’s Levallois-Perret office in 2005
to track and manage the operating platforms in real time.
Risk processes for the wholesale and fleet financing business
are overseen by a central unit responsible for coordinating
all aspects of the process. A similar structure exists for the
retail financing business
Banque PSA Finance - 2005 annual report
17

BASEL II
CREDIT RISK MANAGEMENT
COST OF RISK VERSUS AVERAGE NET LOANS
France International Total
(in millions of euros)
2005
Amount Rate (in %) Amount Rate (in %) Amount Rate (in %)
Retail financing -10.1 -0.17 32.8 0.33 22.7 0.14
New vehicles -7.2 -0.16 27.4 0.33 20.2 0.16
Used vehicles -1.2 -0.12 5.4 0.33 4.2 0.16
Direct customers -1.7 -0.70 - - -1.7 -0.70
Wholesale financing 1.0 0.05 1.6 0.05 2.6 0.05
Total
2004
-9.1 -0.12 34.4 0.26 25.3 0.12
( * )
Retail financing 35.4 0.62 33.7 0.36 69.1 0.46
New vehicles 24.7 0.56 27.1 0.34 51.8 0.42
Used vehicles 7.5 0.75 6.6 0.51 14.1 0.61
Direct customers 3.2 1.25 - - 3.2 1.25
Wholesale financing 0.1 0.01 2.2 0.07 2.3 0.05
Total 35.5 0.49 35.9 0.29 71.4 0.36
(*) After change in accounting for credit risk allowances.
Banque PSA Finance’s Basel II project has three core aims:
- To implement credit risk measurement approaches based
on internal credit ratings.
- To deploy a Basel II-compliant operational risk tracking,
measurement and management system.
- To adapt risk management systems and financial disclosures
based on the second and third pillars of Basel II.
18 Banque PSA Finance - 2005 annual report
The internal credit rating system will be rolled out according
to a phased process, with the aim of covering around 80%
of the Bank’s loan book by the end of this year.
The project is being overseen by a steering committee made
up of members of the Bank’s Executive Committee and all the
experts involved in the project.

INTERNAL CONTROL
� AN EFFICIENT SYSTEM BUILT AROUND
REGULAR FIRST-TIER CONTROLS
The Bank’s system of internal control is built around regular
first-tier controls backed by an organization structure in which
each individual’s authority and responsibilities are clearly
defined.
The basis of the control process consists of structured
delegations of authority applicable to all operating units and
corporate departments, which determine the levels at which
decisions must be made particularly in the following areas:
- Loan approvals
- Customer credit terms
- New products
- Expenditure commitments
- Banking and financial transactions
- General administrative issues.
Concerning banking and financial transactions, two signatures
are required for all financial transactions carried out by the
Bank, as well as to open and operate bank accounts except
for incoming payments. At its meeting on March 4, 2005,
the Board of Directors decided to extend the application of this
rule to the Bank’s corporate officers.
Within the operating units, the process is backed by ex-ante
or ex-post controls performed within a framework set by the
corporate departments responsible for the following main
functions:
- Sales and marketing policies
- Wholesale and fleet financing
- Retail financing risk assessments and commitments
- Collections
- Human resources management
- International development.
Lastly, a management reporting system has been set up to
monitor the activities of all subsidiaries and branches, for
both budget control and risk tracking purposes. In the area
of customer credit risks, for example, the management
reporting system is used to monitor monthly changes in the
loan book’s credit quality, based on loss analyses showing
INTERNAL CONTROL
where the loans were originated. The management reports
also provide analyses of loan acceptance behavior and the
characteristics of each loan application, including those that
are turned down. Other reports provide details of the volume
and age of past-due installments, as well as of any recoveries
on loans that have been written off.
At Group level, committees have been set up to determine
and implement Bank policies in the areas of internal control
and decision-making processes during regular meetings.
The main committees are:
- The Risks Committee, which meets at two-monthly intervals
to monitor changes in retail financing non-performing loans
and credit losses.
- The Margins Committee, which meets every month to
review changes in retail lending margins and competitive
position indicators.
- The Product Processes Committee, which meets at least
once every quarter to review proposed annual product plans
and authorize the development of new financing and service
products requested by the subsidiaries and branches.
- The Group Credit Committee, which reviews and approves
wholesale and fleet financing applications representing large
amounts that require approval at the highest level. The
Group Credit Committee also decides on the discretionary
lending authority to be granted to managers at different
levels in the organization.
- The Refinancing Committee, which reviews the results of
the Bank’s refinancing and interest rate risk management
activities, approves overall strategies and sets limits on
counterparty risks.
- The Legal Committee, which deals with all issues concerning
changes in the contractual framework governing the Bank’s
transactions and reviews the implications of significant
changes in banking laws, regulations and case law.
- The Control Committee, which is responsible for driving
constant improvement in the overall system of internal
control and all control mechanisms.
- The Audit Committee, set up in accordance with France’s
corporate governance regulations.
Banque PSA Finance - 2005 annual report
19

INTERNAL CONTROL
An in-depth reorganization of internal control
to keep pace with changes in banking
regulations
In order to comply with the new regulatory requirements
introduced in CCLRF standard 97-02 which are applicable from
January 1, 2006, in the latter part of 2005 the Bank took steps
to reorganize its internal control structure. Internal control is
now organized around two core areas of responsibility, one
concerning periodic controls and the other dealing with recurring
controls.
Periodic controls consist of internal audits of all of the activities
of Banque PSA Finance, its subsidiaries and branches, as well
as of operations outsourced to banking partners in emerging
countries or to the PSA Peugeot Citroën Group (information
systems, accounting and cash management), conducted
according to a three-year audit plan. The internal auditors also
perform one-off audits of these different entities
Recurring controls cover three areas – compliance, risk
management and control over operational risks.
The compliance unit is responsible for establishing standards,
procedures and controls to ensure that the Bank complies with
all applicable regulations. It regularly monitors all legal and
regulatory changes that create new obligations for the Bank,
in order to assess their impact and ensure that they are
implemented without delay. It deploys throughout the
organization all necessary measures to inform and train
employees in compliance issues. The compliance unit is made
up of a headquarters team and a network of correspondents
in the subsidiaries and branches.
20 Banque PSA Finance - 2005 annual report
The risk management unit is responsible for monitoring risks
on a consolidated basis and participating in their overall
management, in compliance with current regulations and taking
into account the changes that will be made with the
implementation of Basel II.
The operational risk control unit develops, deploys and leads
existing recurring controls at headquarters level and at the
subsidiaries and branches, to ensure that operational risks are
controlled as efficiently as possible at all times. It is responsible
for mapping the main risks and the related controls. It oversees
the control reporting system, manages the internal control selfassessment
process and is leading the operational risk
management aspects of the Basel II project. The unit is based
at the Bank’s headquarters and has dotted-line authority over
local operational risk controllers, who in turn report to the
manager of their subsidiary or branch.
Several committees act in an oversight capacity with regard to
the system of internal control. These include the Audit
Committee, the Control Committee and the Risks Committee,
whose roles are unchanged, and a new Compliance Committee
set up at the beginning of this year.
While this new organization was being devised and
implemented, during 2005 the Bank also took steps to further
enhance the contribution of information systems to the
implementation of recurring accounting and other controls.
Work was also continued on the information systems
contingency plan, with the aim of moving on to the next stage
which consists of deploying a standard plan among all
subsidiaries and branches in France and abroad.

BANQUE PSA FINANCE IN 2005
In 2005, Banque PSA Finance reported net profit of
€380,238,017.40. A change of accounting method in the
accounts of the Spanish branch led to a €65,219,615.17
increase in retained earnings brought forward from 2004. The
Bank’s income statement is presented and discussed in the
appendix to this report.
� PROPOSED RESOLUTIONS
At the Annual Meeting, stockholders will be asked to approve
the financial statements of the Bank and the Group, as
presented, and to set the 2005 dividend at €14.50 per share.
If approved, the dividend will be paid as from April 25, 2006.
Stockholders will also be asked to approve the Auditors’ special
report on related party agreements.
The Board of Directors will recommend that Peugeot S.A.
be re-elected as a director for a further six-year term expiring
in 2012.
In addition, the Board of Directors will recommend renewing
the appointment of Mazars & Guérard as Statutory Auditors and
of Guillaume Potel as Alternate Auditor for a further six-year
term expiring in 2012.
The Board of Directors is also recommending renewal of the
appointment of PricewaterhouseCoopers as Statutory Auditors
and the appointment of Etienne Boris as Alternate Auditor to
replace Yves Nicolas whose term expires at the close of the
April 24, 2006 Annual Meeting. Both appointments will be for a
six-year term expiring in 2012.
The Annual Meeting will be asked to renew in advance, for a
period of twenty-six months, the authorization given to the Board
of Directors on March 30, 2004 to issue new shares with preemptive
subscription rights for existing stockholders. Share
issues carried out under this authorization would not have the
effect of increasing the capital to more than €261,280,000.
Lastly, in accordance with Article L. 225-129-6 of the Commercial
Code, the Board of Directors is required to table at the Annual
Meeting a resolution authorizing the Board to carry out an
employee rights issue. The aggregate par value of shares issued
under this authorization would not exceed €3,200,000.
BANQUE PSA FINANCE IN 2005
� I. ORDINARY RESOLUTIONS
FIRST RESOLUTION
Approval of the Management Report and the
financial statements of the Bank
The General Meeting, having considered the financial
statements of the Bank, the Board of Directors’ Management
Report for 2005 and the Auditors’ report, approves the Board
of Directors’ Management Report in its entirety.
The Annual Meeting approves the financial statements of
the Bank for 2005 which show a profit of €380,238,017.40.
SECOND RESOLUTION
Approval of the consolidated financial
statements
The General Meeting, having considered the consolidated
financial statements, as well as the Board of Directors’
comments and the Auditors’ report on the consolidated
financial statements, approves the consolidated financial
statements for 2005 as presented.
THIRD RESOLUTION
Appropriation of profit
The Annual Meeting notes that profit available for distribution,
consisting of profit for the year of €380,238,017.40 and
retained earnings of €288,411,877.63 brought forward from
the previous year, amounts to €668,649,895.03.
The Annual Meeting resolves to appropriate profit available
for distribution as follows:
- To the payment of a dividend €160,776,000.00
- To other reserves €3,402,959.79
- To retained earnings €504,470,935.24
The dividend of €14.50 per share will be paid as from
April 25, 2006. Eligible stockholders will qualify for the 40%
tax rebate introduced in Article 158, 3-2° to 4° of the General
Tax Code on the total amount of the dividend.
The Annual Meeting notes that dividends paid in respect of
2002, 2003 and 2004 amounted to €4.60, €7.42 and €8.62
respectively.
Banque PSA Finance - 2005 annual report
21

FOURTH RESOLUTION
Approval of the Auditors’ special report on
related party agreements
After considering the Auditors’ special report on related party
agreements, stockholders will be asked to approve this
report.
FIFTH RESOLUTION
Re-election of a director
The Annual Meeting, voting on a motion tabled by the Board
of Directors, resolves to re-elect Peugeot S.A. as a director
for a six-year term expiring at the Annual Meeting called in
2012 to approve the 2011 financial statements.
SIXTH RESOLUTION
Renewal of the appointment of a Statutory
Auditor and Alternate Auditor
The Annual Meeting resolves to renew the appointment of
Mazars & Guérard, 39, rue Wattignies, 75012 Paris, as
Statutory Auditors and of Guillaume Potel, 39, rue Wattignies,
75012 Paris, as Alternate Auditor, for a six-year term expiring
at the Annual Meeting called in 2012 to approve the 2011
financial statements.
SEVENTH RESOLUTION
Renewal of the appointment of a Statutory
Auditor
The Annual Meeting resolves to renew the appointment of
PricewaterhouseCoopers, 63, rue de Villiers, Neuilly-sur-Seine
(Hauts-de-Seine), as Statutory Auditors for a six-year term
expiring at the Annual Meeting called in 2012 to approve the
2011 financial statements.
EIGHTH RESOLUTION
Appointment of an Alternate Auditor
The Annual Meeting, having noted that the term as Alternate
Auditor of Yves Nicolas, 32, rue Guersant, 75017 Paris, expires
at the close of the meeting, resolves to appoint Etienne Boris,
63, rue de Villiers, Neuilly-sur-Seine (Hauts-de-Seine) as
Alternate Auditor for PricewaterhouseCoopers, for a six-year
term expiring at the Annual Meeting called in 2012 to approve
the 2011 financial statements.
22 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE IN 2005
� II. EXTRAORDINARY RESOLUTIONS
NINTH RESOLUTION
Authorization to issue shares and share
equivalents
The General Meeting, having considered the Board of
Directors’ report and the Auditors’ special report, resolves, in
accordance with Articles L. 225-129-2 and L. 228-92 of the
Commercial Code:
I. To give the Board of Directors a twenty-six month
authorization, from the date of this Meeting, to decide to
increase the share capital on one or several occasions by:
a) Issuing, in France or abroad, in euros, Banque PSA Finance
shares and/or any securities other than shares
denominated in euros or in foreign currencies, and/or
b) Issuing bonus shares or increasing the par value of existing
shares, to be paid up by capitalizing income, reserves or
additional paid-in capital.
II. That the aggregate par value of shares issued under this
authorization, directly or indirectly (including the par value
of any shares to be issued to protect the rights of existing
holders of share equivalents) shall not have the effect of
increasing the share capital from its current level of
€177,408,000 to more than €261,280,000, not including
the value of any issue and/or redemption premiums.
III. That stockholders shall have a pre-emptive right to
subscribe for the securities issued under this authorization
pro rata to their existing interests.
IV. That:
a) Any shares not taken up by stockholders exercising their
pre-emptive rights shall be offered to the other
stockholders without any limit on the number of shares
that may be subscribed by each individual stockholder.
b) If the capital is increased by issuing bonus shares paid up
by capitalizing income, reserves or additional paid-in capital,
any rights to fractions of shares shall be non-transferable.
In this case, the corresponding shares will be sold and the
sale proceeds will be allocated among the holders of rights
to fractions of shares no more than 30 days after the date
on which the whole number of shares attributed to them
is recorded in their stock account.

c) In the event that this authorization is used to issue
compound securities, stockholders shall not have any preemptive
right to subscribe for the shares to be issued to
holders of these securities.
This authorization supersedes the authorizations given to the
Board of Directors by the General Meeting of March 30, 2004
for all capital increases.
TENTH RESOLUTION
Authorization to carry out an employee rights
issue
The General Meeting, having considered the Board of
Directors’ report and the Auditors’ special report, resolves, in
accordance with Article L. 225-129-6 of the Commercial
Code, to authorize the Board of Directors to issue shares to
employees on one or several occasions, provided that the
aggregate par value of the shares issued under this
authorization does not exceed €3,200,000.
The General Meeting gives full powers to the Board of
Directors to decide the amount of the share issue or issues,
within the limit of the total authorized amount, the timing of
the issues and the terms and conditions of each issue. The
Board of Directors shall decide the issue price of the new
shares in accordance with Article L. 443-5 of the Labor Code,
the method by which the shares are to be paid up, the
subscription period and the terms governing the exercise of
employees’ subscription rights.
Financial authorization in force before the annual
and extraordinary stockholders’ meeting,
April 24, 2006
BANQUE PSA FINANCE IN 2005
The Board of Directors shall have the necessary powers to
decide and sign any and all legal documents, take any and
all measures, amend the bylaws to reflect the new capital
and carry out any and all necessary formalities to complete
the capital increase authorized under this resolution.
This authorization is given for a period of twenty-six months
from the date of this Meeting.
Financial authorization resulting
from the annual and extraordinary
stockholders’ meeting, April 24, 2006
Annual and extraordinary Maximum Maximum
stockholders’ meeting Date Duration Term capital Use Date Duration Term capital
Issue of shares
and share equivalents
with pre-emptive March 30, 26 May 30, €261,280,000 April 24, 26 June 24, €261,280,000
subscription rights 2004 months 2006 No 2006 months 2008
Banque PSA Finance - 2005 annual report
23

Contents
Consolidated financial statements for the years ended
December 31, 2005 and 2004
Statutory auditors’ report on the consolidated financial statements __________________ 26
Consolidated balance sheet ________________________________________________________________________________________________________________________________ 28
Consolidated statement of income ___________________________________________________________________________________________________________ 29
Consolidated statement of changes in equity attributable
to equity holders of the parent and minority interests ____________________________________________________ 30
Consolidated statement of cash flows _________________________________________________________________________________________________ 31
Notes to the consolidated financial statements for the years ended
December 31, 2004 and 2005 _________________________________________________________________________________________________________________________ 32
24 Banque PSA Finance - 2005 annual report

BANQUE PSA FINANCE
Consolidated financial statements for the years
ended December 31, 2005 and 2004
In millions of euros
Banque PSA Finance - 2005 annual report
25

To the Shareholders,
Following our appointment as statutory auditors by your
Annual General Meeting, we have audited the accompanying
consolidated financial statements of Banque PSA Finance
for the year ended December 31, 2005.
These consolidated financial statements have been approved
by the Board of Directors. Our responsibility is to express an
opinion on these financial statements based on our audit.
These financial statements have been prepared for the first
time in accordance with IFRSs as adopted for use in the
European Union. They include comparative information
restated in accordance with the same standards in respect of
financial year 2004.
26 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Statutory auditors’ report on the consolidated financial statements
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2005
This is a free translation into English of the statutory auditors’ report issued in French and is provided solely for the
convenience of English speaking users. The statutory auditors’ report includes information specifically required by French
law in such reports, whether modified or not. This information is presented below the opinion on the consolidated financial
statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting
and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated
financial statements taken as a whole and not to provide separate assurance on individual account captions or on information
taken outside of the consolidated financial statements.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing
standards applicable in France.
I. OPINION ON THE CONSOLIDATED
FINANCIAL STATEMENTS
We conducted our audit in accordance with the professional
standards applicable in France. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free
from material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements give a
true and fair view of the assets and liabilities and of the financial
position of the Group as at 31 December 2005 and of the
results of its operations for the year then ended in accordance
with IFRSs as adopted for use in the European Union.
II. JUSTIFICATION OF OUR ASSESSMENTS
In accordance with the requirements of article L. 823-9 of
the French Commercial Law (Code de commerce) relating
to the justification of our assessments, we bring to your
attention the following matters:
• Regarding the first-time adoption of International
Financial Reporting Standards (IFRS) to prepare the 2005
consolidated financial statements, the comments on the
consolidated statement of changes in equity and on the
consolidated statement of cash flows and note 15 set out
all of the disclosures required concerning the change in
accounting standards at January 1, 2004, and describes
the steps taken to ensure that the financial statements
presented for 2005 and 2004 in accordance with IFRS are
comparable.
CONSOLIDATED FINANCIAL STATEMENTS
Statutory auditors’ report on the consolidated financial statements
The Statutory Auditors
• For all companies with banking operations, significant
accounting estimates have to be used when provisioning
for credit risks. Banque PSA Finance sets aside provisions
to cover credit risks that are inherent to its business
(note 2 par.C.6.3). As part of our assessment of these
estimates we have analysed the changes mentioned in
note 31 and, more generally, we have examined the control
procedures used for monitoring credit risks, for assessing
the risk of non-recovery, and for covering these risks by
provisions.
These assessments were made in the context of our audit of
the consolidated financial statements taken as a whole, and
therefore contributed to the opinion we formed which is
expressed in the first part of this report.
III. SPECIFIC VERIFICATION
In accordance with professional standards applicable in
France, we have also verified the information given in the
group’s management report. We have no matters to report
as to its fair presentation and its consistency with the
consolidated financial statements.
Neuilly-sur-Seine and La Défense, February 13, 2006
PricewaterhouseCoopers Audit Mazars & Guérard
Jacques Lévi Hervé Hélias Thierry de Bailliencourt
Banque PSA Finance - 2005 annual report
27

� EQUITY AND LIABILITIES
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004 Jan. 1, 2004
Central banks, post office banks - - -
Financial liabilities at fair value through profit or loss (note 13) 184 215 35
Hedging instruments (note 14) 149 227 330
Deposits from credit institutions (notes 15 and 33) 7,627 7,006 6,064
Due to customers (note 16) 300 372 331
Debt securities (notes 17 and 33)
Fair value adjustments to debt portfolios hedged against interest
14,751 14,242 14,063
rate risks (note 18) 55 97 74
Current tax liabilities 78 44 48
Deferred tax liabilities (note 32) 292 262 232
Accruals and other liabilities (note 19) 766 731 838
Provisions (note 20) 73 72 63
Subordinated debt (note 21) - 150 203
Equity 2,429 2,106 1,809
- Equity attributable to equity holders of the parent 2,391 2,067 1,746
- Share capital 177 177 177
- Capital in excess of par value of stock 332 332 332
- Reserves 1,477 1,232 963
- Deferred gains and losses 3 - -
- Net income for the year 402 326 274
- Minority interests 38 39 63
Total equity and liabilities 26,704 25,524 24,090
The notes on pages 32 to 66 form an integral part of the consolidated financial statements.
28 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET
� ASSETS
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004 Jan. 1, 2004
Cash, central banks, post office banks (note 3) 10 21 115
Financial assets at fair value through profit or loss (note 4) 2,788 2,918 2,649
Hedging instruments (note 5) 161 171 187
Available-for-sale assets (note 6) - 1 16
Loans and advances to credit institutions (note 7) 625 444 575
Customer loans and receivables (notes 8 and 33)
Fair value adjustments to finance receivables portfolios
22,417 21,181 19,656
hedged against interest rate risks (note 9) (19) 44 63
Held-to-maturity investments - - -
Current tax assets 18 40 69
Deferred tax assets (note 32) 45 43 67
Accruals and other assets (note 10) 452 467 519
Investments in associates and joint ventures - - -
Property and equipment (note 11) 48 51 51
Intangible assets (note 11) 78 62 42
Goodwill (note 12) 81 81 81
Total assets 26,704 25,524 24,090

CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of income
CONSOLIDATED STATEMENT OF INCOME
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004
Net interest revenue on customer transactions 1,332 1,256
- Interest and other revenue on assets at amortized cost (note 25) 1,384 1,352
- Fair value adjustments to finance receivables hedged against interest rate risks (note 22) (63) (19)
- Interest expense on hedging instruments (79) (102)
- Fair value adjustments to hedging instruments (note 22) 71 21
- Interest expense on customer transactions (note 26) (10) (10)
- Other revenue and expense (note 27) 29 14
Net investment revenue 61 57
- Interest and dividends on marketable securities 46 27
- Fair value adjustments to assets valued using the fair value option (note 22) 2 2
- Gains and losses on sales of marketable securities 13 29
- Business acquisition costs - (1)
Net refinancing cost (584) (552)
- Interest and other revenue from loans and advances to credit institutions 10 7
- Interest on deposits from credit institutions (note 28) (205) (188)
- Interest on debt securities (note 29) (398) (389)
- Expenses related to off-balance sheet items (7) (11)
- Fair value adjustments to financing liabilities hedged against interest rate risks (note 22) 41 (19)
- Interest on hedging instruments 25 34
- Fair value adjustments to hedging instruments (note 22) (40) 20
- Fair value adjustments to financing liabilities valued using the fair value option (note 22) (1) -
- Debt issuing costs (9) (6)
Net gains and losses on trading transactions (1) -
- Interest rate instruments (1) (1)
- Currency instruments - 1
Margin on sales of services 125 115
- Revenues 149 140
- Expenses (24) (25)
Net banking revenue (note 33) 933 876
General operating expenses (notes 30 and 33) (288) (279)
- Personnel costs (123) (119)
- Other general operating expenses (165) (160)
Depreciation and amortization (12) (11)
Gains and losses on disposals of fixed assets (1) -
Gross operating profit 632 586
Cost of risk (notes 31 and 33) (25) (71)
Operating profit (note 33) 607 515
Impairment on goodwill - -
Interest cost on pension obligations (2) (1)
Expected return on external pension funds 1 1
Other non-operating items 2 (1)
Pre-tax income 608 514
Income taxes (note 32) (203) (183)
Net income for the year 405 331
- o/w minority interests 3 5
- o/w attributable to equity holders of the parent (earnings per share: €36.20) 402 326
Banque PSA Finance - 2005 annual report
29

30 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in equity attributable to equity holders of the parent and minority interests
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
AND MINORITY INTERESTS
Share capital and other reserves Reserves Deferred gains and losses (net of tax)
Capital in Deferred gains Profit Equity
excess of and losses attributable attributable to
Share par value of Treasury Translation Revaluation on financial to equity of equity holders Minority Total
(in millions of euros) Capital stock (1)
stock Reserves Reserve Reserve instruments (2) (3) the parent of the parent interests equity
Equity at January 1, 2004 – French GAAP
Effect on opening equity of fair value adjustments,
177 332 - 991 - - - 274 1,774 63 1,837
before tax (4) Effect on opening equity of the change of method
(5) (5) (5)
concerning pension obligations, before tax (14) (14) (14)
Deferred tax effect of the change of method (5) (9) (9) (9)
Net effect on opening equity of IFRS adjustments (28) (28) (28)
Equity at January 1, 2004 – IFRS 177 332 - 963 - - - 274 1,746 63 1,809
Appropriation of prior-year income 267 (274) (7) (30) (37)
Income for the year (5) (6) - 326 326 5 331
Fair value adjustments - - - - - - -
Translation adjustments 2 2 1 3
Equity at December 31, 2004 - IFRS 177 332 - 1,232 - - - 326 2,067 39 2,106
Appropriation of prior-year income (5) (6) 230 (326) (96) (5) (101)
Income for the year (5) (6) - 402 402 3 405
Fair value adjustments (3) Deferred taxes on unrealized or deferred
- - - 5 5 - 5
gains or losses - - - (2) (2) - (2)
Translation adjustments 15 15 1 16
Equity at December 31, 2005 - IFRS 177 332 - 1,477 - - 3 402 2,391 38 2,429
Share capital amounts to €177 million, made up of 11,088,000 common shares, all fully paid. There
were no changes in capital during the year.
(1) Including the Banque PSA Finance legal reserve.
(2) Including fair value adjustments to cash flow hedges.
(3) The intrinsic value of swaptions at maturity is recognized over the life of the external swap purchased
as a hedge of the outstanding loans (fair value hedge) (see note 5).
(4) Detail of this amount is given in note 3.2 of the Banque PSA Finance 2004 Consolidated Financial
Statements prepared in accordance with IFRS.
(5) Compared with the published IFRS financial statements for the year ended December 31, 2004,
recognition of a deferred tax liability on revaluation of the underlying assets of subsidiary Vernon
Wholesale Investment Company Limited had an impact of €(15) million on the opening balance
sheet at January 1, 2004. In light of the time factor, the liability was reduced by
€1 million at December 31, 2004 and by another €1 million at December 31, 2005.
(6) Compared with the published IFRS financial statements for the year ended December 31, 2004, the
Group has elected to value a liability using the fair value option. The impact net of deferred taxes
was €(4) million at December 31, 2004 and €(1) million at December 31, 2005.
Consolidated regulatory capital calculated in accordance with regulation 90-02 of the Comité de la Réglementation Bancaire et Financière :
French GAAP
Pro forma
French GAAP
(in millions of euros)
Tier 1 capital
Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2003
Consolidated equity 2,429 2,126 1,837
Unrealized capital gains on cash flow hedges (3) - -
Proposed dividend, PSA Peugeot Citroën Group (161) (96) (7)
Proposed dividend, minority interests (3) (5) (28)
Intangible assets (50) (40) (28)
Goodwill (81) (76) (81)
Total Tier 1 capital 2,131 1,909 1,693
Tier 2 capital
Subordinated debt - 150 173
Equity interests in credit institutions - (1) (16)
Guarantees granted to SPVs (69) (64) (25)
Total Tier 2 capital (69) 85 132
Regulatory capital 2,062 1,994 1,825

CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of cash flows
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004
Income attributable to equity holders of Banque PSA Finance 402 330
Minority interests in income of subsidiaries (1) 3 5
Change in depreciations of non-performing loans (2) - -
Change in depreciation, amortization and other provisions (2) 11 13
Change in deferred taxes (1) 26 56
Cash flow
Increase/decrease in
442 404
- loans and advances to credit institutions 4 16
- deposits from credit institutions 499 1,053
Change in customer loans and receivables (2) Increase/decrease
(1,029) (1,448)
- in amounts due to customers (74) 41
- on financial assets at fair value through profit or loss (3)(4) 133 (265)
- on financial liabilities at fair value through profit or loss (35) 23
- on hedging instruments (62) (91)
- issue (repayment) of debt securities 470 204
Change in other operating assets (20) 98
Change in other operating liabilities 62 (117)
Net cash provided by operating activities 390 (82)
Acquisitions of subsidiaries (1) (1)
Purchases of fixed assets (32) (36)
Proceeds from disposals of fixed assets 8 5
Effect of changes in scope of consolidation 1 8
Net cash used by investing activities (24) (24)
Dividends paid to PSA (96) (7)
Dividends paid to minority interests (5) (30)
Issue of shares - -
Repayment of subordinated debt (150) (53)
Net cash used by financing activities (251) (90)
Effect of changes in exchange rates on cash and cash equivalents (1) -
Net change in cash and cash equivalents 114 (196)
Cash and cash equivalents at beginning of year 521 717
Cash, central banks, post office banks 21 115
Marketable securities, excluding accrued interest (3) - -
Current account advances and loans and advances at overnight rates (4) 440 555
Checks and bills presented for collection 60 47
Cash and cash equivalents at end of period 635 521
Cash, central banks, post office banks 10 21
Marketable securities, excluding accrued interest (3) - -
Current account advances and loans and advances at overnight rates (4) 625 440
Checks and bills presented for collection - 60
(1) Compared with the published IFRS financial statements for the year ended
December 31, 2004, recognition of a deferred tax liability on revaluation of
the underlying assets of subsidiary Vernon Wholesale Investment Company
Limited had an impact of €(15) million on the opening balance sheet at January
1, 2004. In light of the time factor, the liability was reduced by €1 million at
December 2004 and by another €1 million at December 31, 2005.
(2) The change in depreciations of non-performing loans is now included under
“Change in customer loans and receivables”. In the IFRS financial statements
for the year ended December 31, 2004, the change for provisions in credit
losses was identified separately in the amount of €34 million. The change in
provisions for doubtful wholesale commitments is now included under
“Change in customer loans and receivables”. In the IFRS financial
statements for the year ended December 31, 2004, it was included under
“Change in depreciation, amortization and other provisions” in the amount of
€7 million.
(3) The change in marketable securities is now included under “Increase/decrease
on financial assets at fair value through profit or loss”. In the IFRS financial
statements for the year ended December 31, 2004, the change in marketable
securities was included under “Cash and cash equivalents” in the sum of
€216 million.
(4) In the published IFRS financial statements for the year ended December 31,
2004, marketable securities in the amount of €71 million at January 1, 2004
and €86 million at December 31, 2004 were included in “Current accounts
advances and loans and advances at overnight rates”. They are now included
in “Financial assets at fair value through profit or loss” in the amount of
€15 million (see notes 4 and 7).
Banque PSA Finance - 2005 annual report
31

� A. CHANGES IN GROUP STRUCTURE
Changes in Group structure in 2004 were as follows.
In February 2004, Banque PSA Finance set up a wholly
owned subsidiary in the United Kingdom, Arche Investment
Limited. This company is fully consolidated.
In February 2004, PSA Finance Deutschland GmbH,
Banque PSA Finance’s banking subsidiary in Germany, sold
€1 billion worth of automobile loans to the 2004-1 fund of
the Auto ABS securitization vehicle. Auto ABS is fully
consolidated.
PSA Finance Ceska Republika, which is wholly owned
by PSA Financial Holding B.V., a Dutch subsidiary of
Banque PSA Finance, has been fully consolidated since
March 2004.
PSA Finance Hungaria, which is 97.50%-owned by
PSA Financial Holding B.V. and 2.50% by Banque PSA Finance,
has been fully consolidated since May 2004.
PSA Finance Slovakia, which is wholly owned by PSA Financial
Holding B.V., has been fully consolidated since July 2004.
Assupar, an insurance brokerage wholly owned by Crédipar,
was merged into Crédipar on November 30, 2004.
32 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2004 and 2005
NOTE 1 – GROUP STRUCTURE
Changes in Group structure in 2005 were as follows.
In December 2004, the Group set up a new subsidiary in
Mexico, which is 80%-owned by PSA Finance Nederland
B.V. and 20% by Banque PSA Finance. It has been fully
consolidated since September 30, 2005.
In April 2005, Banque PSA Finance set up a new branch in
Poland, which provides installment credit for retail customers
and wholesale financing for dealers.
On September 29, 2005, the German subsidiary PSA Finance
Deutschland GmbH was merged into Banque PSA Finance
and became a branch.
In October 2005, the agreement between Bank of China and
the PSA Peugeot Citroën Group led to the creation of Dong
Feng Peugeot Citroën Auto Finance Company Limited, which
is 50%-owned by Bank of China, 25% by PSA Finance
Nederland BV and 25% by Dong Feng Peugeot Citroën
Automobile Company Limited. The share capital was paid up
pending the company’s incorporation and registration. The
investment will be accounted for using the equity method
as soon as the company becomes operational in 2006.

� B. LIST OF CONSOLIDATED COMPANIES
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Direct Indirect % interest at
interest interest December 31
Companies Country % % Held by 2005 2004
Branches
UK branch United Kingdom - - - -
Spanish branch Spain - - - -
Portuguese branch Portugal - - - -
Italian branch Italy - - - -
Polish branch Poland - - - -
Deutsch branch Germany - - - -
Fully consolidated companies
Sales financing in France
Sofira France 98 - 98 98
Crédipar France 100 - 100 100
Loca-Din France - 100 Crédipar 100 100
CLV France - 100 Crédipar 100 100
Dicoma
Sales financing outside France
France - 99.97 Crédipar 99.97 99.97
PSA Wholesale Ltd United Kingdom 100 - 100 100
PSA Finance Plc United Kingdom - 50 PSA Wholesale Ltd 50 50
PSA Finance Deutschland GmbH Germany - - - 100
PSA Finance Nederland B.V Netherlands - 100 PSA Financial Holding B.V. 100 100
PSA Finance Belux Belgium 6.51 93.49 PSA Financial Holding B.V. 100 100
PSA Gestao-Comercio Portugal 97 1 PSA Financial Holding B.V. 98 98
PSA Finance Suisse S.A Switzerland 82.35 17.65 PSA Financial Holding B.V. 100 100
PSA Finance Austria Bank AG Austria 100 - 100 100
Banco PSA Finance Brasil SA Brazil 100 - 100 100
PSA Arrendamento Mercantil SA Brazil 100 - 100 100
PSA Finance Argentina Compania Financiera SA Argentina 50 - 50 50
PSA Finance Polska Sp.zo.o. Poland 100 - 100 100
PSA Finance Ceska Republika S.R.O. Czech Republic 0.05 99.95 PSA Financial Holding B.V. 100 100
PSA Finance Hungaria R.T. Hungary 2.50 97.50 PSA Financial Holding B.V. 100 100
PSA Finance Slovakia Slovakia 0.16 99.84 PSA Financial Holding B.V. 100 100
Banque PSA Finance Mexico SA DE CV
Other companies
Mexico 20 80 PSA Financial Holding B.V. 100 -
Sofib France 100 - 100 100
SNDA France 100 - 100 100
Vernon Wholesale Investment Company Ltd United Kingdom - 100 PSA Wholesale Ltd 100 100
Peugeot Commercial Paper GmbH Germany 100 - 100 100
PSA Financial Holding B.V. Netherlands 100 - 100 100
Peugeot Finance International N.V. Netherlands 100 - 100 100
PSA Factor Italia S.p.A Italy - 94.54 Italian branch 94.54 94.54
Arche Investment Limited
Special purpose entities
United Kingdom 100 - 100 100
FCC Auto ABS – Compartiment 2001-1 France - - 100 100
FCC Auto ABS – Compartiment 2002-1 France - - 100 100
FCC Auto ABS – Compartiment 2004-1 France - - 100 100
Banque PSA Finance - 2005 annual report
33

In accordance with European regulation 1660/2002 dated
July 19, 2002, the 2005 consolidated financial statements
have been prepared in accordance with the International
Financial Reporting Standards (IFRSs) and International
Accounting Standards (IASs) formulated by the International
Accounting Standards Board (IASB) and the related
interpretations in force as of December 31, 2005. The Group
has not adopted any accounting principles that have not yet
been endorsed by the international or European authorities.
The financial statements are presented in the format
recommended by the “Conseil National de la Comptabilité”
in opinion no. 2005-07 dated June 21, 2005. They include an
opening balance sheet prepared in accordance with IFRS 1
– First-time Adoption of International Financial Reporting
Standards and financial statements for 2005 together with
2004 comparatives prepared on the same basis.
The consolidated financial statements include the financial
statements of Banque PSA Finance and the French and
foreign companies in the Banque PSA Finance Group, based
on the consolidation methods described in note A. below.
The individual financial statements of foreign subsidiaries are
prepared in accordance with the accounting principles in force
in the countries where they do business. These statements
are adjusted to comply with Group accounting policies for
inclusion in the consolidated financial statements.
Significant accounting policies applied by the Group are
described in notes A. to E. below.
The term “related companies” refers to all PSA Peugeot Citroën
Group subsidiaries.
� A. BASIS OF CONSOLIDATION
Consolidation methods
Companies in which Banque PSA Finance directly or indirectly
holds a majority interest are fully consolidated. The same
method is applied to companies where the majority of the
risks and rewards of the business lie with the Group, directly
or indirectly.
Certain companies meeting the above criteria are not
consolidated because they are not material in relation to the
consolidated financial statements. Investments in these
34 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 2 – ACCOUNTING POLICIES
companies are recorded under “Available-for-sale assets”
(see note C.4. below).
All significant intragroup transactions and balances are
eliminated in consolidation.
Translation of financial statements of foreign
subsidiaries
Balance sheets of foreign companies are translated at the
year-end exchange rate. Income statement items of foreign
companies are translated on a month-by-month basis at the
average monthly rate.
Gains and losses resulting from translation of the financial
statements of foreign subsidiaries are recorded in equity
under “Translation reserve”.
Main consolidation adjustments
Recognition and measurement of derivative
instruments, hedge accounting (IAS 39)
In the financial statements of the individual subsidiaries,
the fair value principle applicable under IAS 39 –
Financial Instruments: Recognition and Measurement,
does not apply. Measurement at fair value of derivative
instruments, financial assets and certain financial
liabilities at fair value through profit or loss, and
application of hedge accounting in accordance with
IAS 39 therefore give rise to certain consolidation
adjustments. The underlying principles are described
in note C. Financial assets and liabilities, below.
Deferred taxes
Certain adjustments to the accounts of subsidiaries to
comply with Group accounting policies, and timing
differences between the recognition of certain items of
income and expense for statutory financial reporting and
tax purposes or arising from consolidation adjustments, can
generate temporary differences between the tax base and
adjusted income. In accordance with IAS 12 – Income
Taxes, deferred taxes are recognized in the consolidated
financial statements for these differences, using the liability
method. Deferred tax assets are recognized for tax loss
carryforwards only in cases where they can reasonably be
expected to be recovered.

No provision has been made for deferred taxes on the
undistributed earnings of subsidiaries, as these earnings are
considered as having been permanently reinvested.
Goodwill
Goodwill is the excess of the cost of shares in a consolidated
company, including transaction expenses, over the Group’s
equity in the fair value at the acquisition date of the identifiable
assets and liabilities acquired. It was amortized on a straightline
basis over 20 years until December 31, 2003.
In accordance with IFRS 3 – Business Combinations, goodwill
is no longer amortized, but is tested for impairment annually
or more frequently if events or changes in circumstances
indicate that it might be impaired. Impairment tests are based
on the recoverable amount of the corresponding cash
generating unit (CGU), defined as the smallest identifiable
group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups
of assets (see note B.3. below). The method used to measure
the recoverable amount of CGUs is described in note B.3.
Impairment of long-lived assets.
Crédipar goodwill
The fair market value of Crédipar at December 31, 1998 was
calculated in connection with the acquisition by Banque PSA
Finance of the 50% interest in Crédipar held by Sovac S.C.A.
Following final adjustments in 1999, as allowed under generally
accepted accounting principles, the initial goodwill was
determined to be €100 million. After deducting accumulated
amortization for the period to December 31, 2003, Crédipar
goodwill amounted to €75 million at January 1, 2004.
Sofib goodwill
Sofib was acquired from PSA Peugeot Citroën on April 1, 1999.
Goodwill arising on the acquisition totaled €7.6 million. After
deducting accumulated amortization for the period to
December 31, 2003, Sofib goodwill recognized in the
opening IFRS balance sheet at January 1, 2004 amounted
to €6 million.
� B. FIXED ASSETS
B.1. Intangible assets
In accordance with IAS 38 – Intangible Assets, the portion
of the cost of developing software for internal use, that
corresponds to internal or external costs directly attributable
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
to creating the software or improving its performance, is
recognized as an intangible asset when it is probable that
the costs will generate future economic benefits. The
capitalized costs are amortized over the estimated useful
life of the software, not to exceed 12 years. Other software
purchases and development costs are recognized as an
expense.
B.2. Property and equipment
In accordance with IAS 16 – Property, Plant and Equipment,
property and equipment are stated at cost. Property and
equipment other than land are depreciated by the straightline
method over the following estimated useful lives:
Buildings 20 to 30 years
Leased vehicles 4 years
Other 4 to 10 years
These estimated useful lives are reviewed at each year-end
and adjusted where necessary.
B.3. Impairment of long-lived assets
In accordance with IAS 36 – Impairment of Assets, property
and equipment and intangible assets are tested for
impairment annually, or more frequently if events or changes
in circumstances indicate that they might be impaired. Assets
with indefinite useful lives must be tested for impairment at
least once a year. Goodwill is the only indefinite-lived asset
carried in the Group accounts.
Impairment tests are performed at the level of cash generating
units (CGU), which are defined as the smallest identifiable
group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups
of assets. The value in use of CGUs is measured as the net
present value of estimated future cash flows. If this value is less
than the CGU’s net book value, an impairment loss is
recognized in operating margin. The impairment loss is first
recorded as an adjustment to the carrying amount of any
goodwill allocated to the CGU and the remainder of the loss is
allocated to the other assets of the unit.
At Banque PSA Finance, CGUs correspond to operations in
each individual country.
Banque PSA Finance - 2005 annual report
35

� C. FINANCIAL ASSETS AND LIABILITIES
Financial assets and liabilities are recognized and measured
in accordance with IAS 39. IAS 39 was endorsed in part by
the European Commission on November 19, 2004.
Regulation EC 1864/2005 published on November 16, 2005
also provides the option of accounting for certain liabilities
at fair value retrospectively from January 1, 2005 and for the
2004 comparatives. The Group has elected to use this option
in certain instances (see paragraph C.3. below).
The Group is not concerned by the provisions of IAS 39
regarding the application of hedge accounting to demand
deposits, which in their current formulation have not been
endorsed by the European Commission.
C.1. Derivative instruments – application of
hedge accounting
C.1.1. Recognition and measurement
All derivative instruments are recognized in the balance sheet
at fair value. Except for instruments designated as cash flow
hedges (see below), gains and losses arising from remeasurement
at fair value are recognized in profit or loss.
Derivative instruments may be designated hedging instruments
in one of two types of hedging relationships:
- fair value hedge, corresponding to a hedge of the exposure
to changes in fair value of an asset or liability due to changes
in exchange rates or interest rates;
- cash flow hedge, corresponding to a hedge of the exposure
to variability in cash flows from existing or future assets or
liabilities.
Derivative instruments qualify for hedge accounting when:
- at the inception of the hedge there is formal designation
and documentation of the hedging relationship;
- the effectiveness of the hedging relationship is demonstrated
at its inception;
- the actual effectiveness of the hedging relationship is also
demonstrated at each period end.
The effects of hedge accounting are as follows:
- for fair value hedges of existing assets and liabilities, the
hedged portion of the asset or liability is recognized in the
balance sheet and measured at fair value. Gains and losses
arising from remeasurement at fair value are recognized in
profit or loss, and are offset by the effective portion of the
loss or gain arising from remeasurement at fair value of the
36 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
hedging instrument. Fair value adjustments to hedged
financial assets and liabilities are reported under “Cumulative
gains and losses on portfolios hedged against interest rate
risks”, in assets for hedged finance receivables and in
liabilities for hedged debt;
- for cash flow hedges, the effective portion of the gain or
loss arising from remeasurement at fair value of the hedging
instrument is recognized in equity. The cumulative gains
and losses recognized in equity are included in profit or loss
when the hedged item affects profit or loss.
The ineffective portion of the gain or loss arising from
remeasurement at fair value of both fair value and cash flow
hedges is recognized in profit or loss.
C.1.2. Derivative financial instruments – financial
statement presentation
Balance sheet:
- derivative instruments are stated in the balance sheet at
fair value, net of accrued interest;
- fair values of derivative instruments used as hedges are
recognized under “Hedging instruments”, in assets when
the fair value is positive and in liabilities when it is negative;
- derivative instruments that do not qualify for hedge
accounting are included in “Financial assets at fair value
through profit or loss” when the fair value is positive, and
in “Financial liabilities at fair value through profit or loss”
when it is negative.
Income statement:
- gains and losses arising from remeasurement at fair value
of fair value hedges are recognized under the same caption
as the losses and gains on the hedged items;
- the ineffective portion of gains and losses arising from
remeasurement at fair value of cash flow hedges is also
reported under “Hedging gains and losses”;
- gains and losses arising from remeasurement at fair value
of derivative financial instruments not designated as hedges
are recognized under “Net gains (losses) on trading
transactions”, with the exception of:
• derivative financial instruments used to hedge short-term
cash investments: gains or losses are recognized under
“Fair value adjustments to assets valued using the fair
value option”;
• derivative financial instruments used to hedge certain
liabilities valued using the fair value option: gains and
losses are recognized under “Fair value adjustments to
financing liabilities valued using the fair value option”.

C.2. Financial assets at fair value through profit
or loss
Banque PSA Finance liquidity reserves are invested partly in
fixed income securities and hedged using interest rate swaps.
In the interests of simplicity, these fixed income securities are
accounted for using the fair value option, whereby changes in
the fair value of the hedged securities are recognized directly
in profit or loss, together with the offsetting change in fair value
of the swaps. Liquidity reserves are also partly invested in
mutual funds, whose units are not consolidated because they
do not meet the criteria regarding control or rights in the majority
of the benefits and corresponding risks (see IAS 27 – Consolidated
financial statements and accounting for investments in
subsidiaries or SIC 12 – Consolidation - Special Purpose Entities).
This caption also includes the positive fair value of other
derivative instruments that do not qualify for hedge
accounting under IAS 39.
C.3. Financial liabilities at fair value through
profit or loss
This item comprises liabilities valued using the fair value option.
The Group has elected to use this option on a very limited basis
to improve the presentation of its financial statements by
recognizing fair value adjustments to the liabilities symmetrically
with the fair value adjustments made to the derivative financial
instruments used to hedge the interest rate risk on those
liabilities. Accordingly, the fair value adjustments include any
changes in Banque PSA Finance’s issuer spread.
This caption also includes the negative fair value of other
derivative instruments that do not qualify for hedge
accounting under IAS 39, including interest rate derivative
instruments intended to hedge financial assets or liabilities at
fair value through profit or loss.
C.4. Available-for-sale assets
Available-for-sale assets consist mainly of investments in
companies that are not yet consolidated. These investments
are stated at cost, which the Group considers is representative
of fair value.
C.5. Held-to-maturity investments
These are fixed income securities that are acquired with the
positive intention of being held to maturity. They are stated
at amortized cost, corresponding to redemption value less
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
amortization of premiums and discounts. Premiums and
discounts are amortized to profit or loss over the holding
period.
C.6. Loans and receivables
In the notes to the financial statements, loans and receivables
are analyzed between:
- retail financing, which includes installment sales, buyback
contracts and long-term leases (see note C.6.1. below);
- wholesale financing, corresponding to floor-plan or spare
parts financing for the Peugeot and Citroën captive and
independent dealer networks;
- other customer loans and receivables.
Loans and receivables recognized in the balance sheet
correspond to Banque PSA Finance’s net commitment in
respect of these receivables. Therefore, as well as the
outstanding principal and accrued interest, the carrying value
of finance receivables also includes:
- Commissions paid to referral agents as well as external
direct administrative expenses, which are added to the
outstanding principal.
- Contributions received from the marques and transaction
fees, which are deducted from the outstanding principal.
- Guarantee deposits received at the inception of finance
leases, which are deducted from the amount financed.
The carrying value of finance receivables does not reflect the
impact of applying hedge accounting (see note C.6.2. below).
Interest income is allocated by the effective interest method,
with the effective interest rate being the rate that exactly
discounts estimated future cash receipts through the
expected life of the loan.
C.6.1. Lease financing
In accordance with IAS 17 – Leases and IAS 39, vehicles
leased to customers are treated as in-substance loans
because the risks and rewards of ownership of the vehicle do
not lie with Banque PSA Finance. Consequently, rental
revenues and depreciation expense on the vehicles are
adjusted in order to present each transaction as a loan.
C.6.2. Hedges of interest rate risks on outstanding
loans and receivables
Outstanding loans are generally hedged against interest rate
risks, using fair value hedges that qualify for hedge
accounting. Accordingly, gains and losses arising from
Banque PSA Finance - 2005 annual report
37

emeasurement at fair value of the hedged portion of the
loans are recognized in profit or loss (see note C.1.1.
Derivative instruments – recognition and measurement).
C.6.3. Impairment losses
Impairment losses on finance receivables are deducted from
their carrying value in the balance sheet, as soon as a loss
event occurs.
Impairment losses are identified separately under specific
line items.
Retail financing impairment losses:
- An impairment loss is recognized on sound loans when the
borrower defaults on a single installment (loss event).
Impairment is assessed based on the probability of the
outstanding loan being classified as non-performing and on
the discounted average loss rate.
- Impairment losses on non-performing loans:
- Banque PSA Finance has set up a database containing
historical collection data for non-performing loans (defined
as loans with at least one installment more than 90 days
past due). These data are used to determine the discounted
average loss rate, which serves as the basis for calculating
impairment losses on non-performing and doubtful loans.
The discounted average loss rate is calculated using the
effective interest method.
Wholesale financing impairment losses
For wholesale finance receivables, impairment losses for
known credit risks are determined on a case-by-case basis.
When a finance receivable is considered as irrecoverable, it
is written off through profit or loss. The previously-recognized
impairment loss is also reversed through profit or loss. Any
subsequent recoveries are credited to the income statement
under “Cost of risk”.
C.7. Financing liabilities
Upon initial recognition, financing liabilities are measured at
the amount of the net proceeds received. Their carrying
amount therefore comprises the outstanding principal and
accrued interest, plus:
- debt issuance and set-up costs,
- issue or redemption premiums, if any.
Interest expense is allocated by the effective interest method,
with the effective interest rate being the rate that exactly
discounts estimated future cash outflows through the
expected life of the debt.
38 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
C.7.1. Hedges of interest rate risks on financing
liabilities
Financing liabilities hedged by interest rate swaps are
remeasured at fair value in accordance with hedge accounting
principles applicable to fair value hedges. Gains and losses
arising from remeasurement at fair value of the hedged
portion of the liability are recognized in profit or loss and are
offset by the effective portion of changes in the fair value of
the swaps (see note C.1.1. Derivative instruments –
recognition and measurement).
C.7.2. Debt securities
Debt securities include certificates of deposit, bonds,
interbank instruments and money market securities, other
than subordinated securities which are reported under
“Subordinated debt”.
� D. PENSION OBLIGATIONS
In addition to standard pensions payable under local legislation,
Group employees receive supplementary pension benefits
and retirement bonuses. These benefits are paid under
defined contribution and defined benefit plans. The payments
made under defined contribution plans are in full discharge
of the Group’s liability and are recognized as an expense.
In accordance with IAS 19 – Employee Benefits, obligations
under defined benefit plans are measured by independent
actuaries using the projected unit credit method. This method
sees each period of service as giving rise to an additional unit
of benefit entitlement and measures each unit separately to
build up the final obligation, which is then discounted to
present value. The calculations mainly take into account:
- an assumed retirement age, generally 60 for employees in
France or over-60 for employees who, by the time of their
60th birthday, have not contributed over a sufficiently long
period to be entitled to a full pension under the governmentsponsored
scheme;
- a discount rate;
- an inflation rate;
- assumptions concerning future salary levels and staff
turnover rates.
Actuarial valuations are performed every year for the main
plans, and once every three years for the other plans, with
more frequent valuations conducted if necessary to take
account of changes in actuarial assumptions.

Changes in actuarial assumptions and experience adjustments
– corresponding to the effects of differences between the
previous actuarial assumptions and what has actually occurred –
give rise to actuarial gains and losses. These gains and losses
are recognized in the income statement by the corridor
method, which consists of recognizing a specified portion of
the net cumulative actuarial gains and losses that exceed the
greater of 10% of the present value of the defined benefit
obligation (before deducting plan assets) and 10% of the fair
value of any plan assets.
In accordance with IFRS 1 – First-time Adoption of
International Financial Reporting Standards, all cumulative
actuarial gains and losses at January 1, 2004 have been
recognized in the balance sheet and the corresponding
adjustment has been recorded in equity.
The total projected benefit obligation, including the portion
not recognized due to the deferral of actuarial gains and losses,
is covered by external funds. Because of the deferral of
actuarial gains and losses, in some cases the amount of these
external funds exceeds the recognized projected benefit
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
obligation, leading to the recognition of an asset in “Other
non-current assets” in an amount not exceeding the sum of
net actuarial losses and unrecognized past service costs.
Other employee benefits covered by provisions concern, for
the French subsidiaries:
- long-service awards,
- the remaining liability towards the “Caisse de Retraite du
Personnel Bancaire”, pension fund for banking sector
employees.
� E. OTHER COMMITMENTS
In accordance with IAS 39, irrevocable commitments given or
received by Group companies are recognized in the balance
sheet at their historical fair value (option premiums, cash
balances on swaps, mostly at par). Provisions are taken for
impairment of financing or guarantee commitments in
accordance with IAS 37 – Provisions, Contingent Liabilities and
Contigent Assets. Other commitments comprise derivative
financial instruments (see C.1.).
NOTE 3 – CASH, CENTRAL BANKS, POST OFFICE BANKS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Cash 1 1
Central banks and post office banks (deposits) 9 20
- of which compulsory reserves deposited with the “Banque de France” 4 2
Total 10 21
Banque PSA Finance - 2005 annual report
39

40 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 4 – FINANCIAL ASSETS AT FAIR
VALUE THROUGH PROFIT OR LOSS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Marketable securities (1)(2) 2,705 2,801
- of which units in Auto ABS securitization vehicle 371 382
Other 46 48
Fair value adjustments (3) 4 2
Marketable securities at fair value 2,755 2,851
- o/w accrued interest
Accrued income on derivative financial instruments intended to hedge
55 39
liabilities valued using the fair value option
Fair value of derivative financial instruments intended to hedge liabilities valued
4 4
using the fair value option (4) 9 9
Accrued interest on derivative financial instruments held for trading 2 -
Assets held for trading at fair value (4)(5) 18 54
Total 2,788 2,918
(1) The liquidity reserve mainly consists of marketable securities and guaranteed funds.
(2) In the published IFRS financial statements for the year ended December 31, 2004, some marketable securities were included
in “Ordinary accounts in debit”. They are now included in “Financial assets at fair value through profit or loss” in the amount of
€86 million at December 31, 2004 and €71 million at January 1, 2004 (see note 7).
(3) Marketable securities are valued using the fair value option (see note 2 C.2.). The positive fair value of these securities is partly offset by
the negative fair value of swaps that are intended to be used as hedges but are classified as financial liabilities at fair value through profit
or loss (see note 13).
(4) In the published IFRS financial statements for the year ended December 31, 2004, “Fair value of derivative financial instruments intended
to hedge liabilities valued using the fair value option” was included in “Assets held for trading at fair value”.
(5) Swaps classified as held for trading, which are primarily set up during securitization transactions, represent closed positions that set each
other off within homogeneous portfolios. They do not generate any material gains or losses (see notes 13 and 22).
.
NOTE 5 – HEDGING INSTRUMENTS (ASSETS)
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Purchased options (1) 11 7
- of which intrinsic value at maturity (2) 5 -
Adjustment accounts - off-balance sheet transactions in foreign currencies (3) 9 14
Accrued income on swaps designated as hedges
Positive fair value of instruments designated as hedges of:
29 46
- Borrowings 1 4
- EMTNs/BMTNs 39 66
- Bonds 37 31
- Retail finance receivables 35 3
Total 161 171
Hedging effectiveness is analyzed in note 22.4.
(1) Swaptions purchased as hedges of future loan originations.
(2) The intrinsic value at maturity is recognized over the life of the external swap purchased as a hedge of the outstanding loans (fair value hedge)
(see “Consolidated statement of changes in equity attributable to equity holders of the parent and minority interests”).
(3) Adjustment accounts are used to record fair value adjustments to currency swaps designated as hedges of foreign currency financing
liabilities.

NOTE 6 – AVAILABLE-FOR-SALE ASSETS
Available-for-sale assets consist mainly of investments in
companies that are not yet consolidated, because the size
of their business at the year-end is not material. These
investments are stated at cost. Marketable securities are
included in “Financial assets at fair value through profit or
loss” (see note 4).
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Investments at cost
- BPF Mexico SA de CV (1) - 1
Related receivables - -
Total - 1
(1) The Mexican subsidiary has been consolidated since September 30, 2005.
ANALYSIS OF DEMAND AND TIME ACCOUNTS
No provision has been booked for start-up losses of
companies that are not yet consolidated, because none of
them are expected to remain in a loss-making position over
the long-term.
NOTE 7 – LOANS AND ADVANCES TO CREDIT INSTITUTIONS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Demand accounts 625 438
Ordinary accounts in debit (1)(2) 295 189
Loans and advances at overnight rates (3) 330 249
Time accounts - 4
Accrued interest - 2
Total 625 444
(1) Corresponding to amounts debited from external bank accounts, which include the last direct debits on customer accounts for the
period.
(2) In the published IFRS financial statements for the year ended December 31, 2004, some marketable securities were included
in “Ordinary accounts in debit”. They are now included in “Financial assets at fair value through profit or loss” in the amount of
€86 million at December 31, 2004 and €71 million at January 1, 2004 (see note 4).
(3) Corresponding to deposits that can be withdrawn without notice.
MATURITIES OF TIME LOANS AND ADVANCES (EXCLUDING ACCRUED INTEREST)
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months - -
3 months to 1 year - 4
1 to 5 years - -
Over 5 years - -
Total - 4
ANALYSIS OF LOANS AND ADVANCES TO CREDIT INSTITUTIONS (INCLUDING ACCRUED INTEREST) BETWEEN
LOANS TO RELATED COMPANIES AND LOANS TO NON-GROUP INSTITUTIONS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Non-group institutions 625 444
Total 625 444
Banque PSA Finance - 2005 annual report
41

ANALYSIS OF LOANS AND ADVANCES TO CREDIT INSTITUTIONS (INCLUDING ACCRUED INTEREST)
BY GEOGRAPHICAL AREA
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 472 298
European Union (excluding France) 143 139
Other European countries 4 5
Latin America 6 2
Total 625 444
42 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 8 – CUSTOMER LOANS AND RECEIVABLES
� 8.1. ANALYSIS BY BUSINESS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Retail financing
Installment contracts (1) 10,767 10,121
- of which securitized (3) 1,655 2,416
Buyback contracts (2) 2,419 2,111
Accrued interest on buyback contracts (346) (302)
Long-term leases (2) 3,343 3,170
- Related companies 7 -
- Non-group companies 3,336 3,170
Accrued interest on long-term leases (131) (123)
Leasing deposits (94) (111)
Retail finance receivables, net (A - see note 31.1 A)
Other finance receivables
15,958 14,866
Equipment loans 296 255
Other 429 447
Other finance receivables, net (B - see note 31.1 B)
Deferred items included in amortized cost - Retail financing
725 702
Deferred acquisition costs 399 353
Deferred loan set-up costs (1) (83) (64)
Deferred manufacturer and dealer contributions (257) (179)
Total deferred items included in amortized cost
Wholesale financing
59 110
- Related companies 148 167
- Non-group companies 5,416 5,254
Wholesale finance receivables, net (C - see note 31.1 C)
Ordinary accounts in debit
5,564 5,421
- Related companies 4 6
- Non-group companies 107 76
Ordinary accounts in debit, net 111 82
Total loans and receivables at amortized cost 22,417 21,181
(1) In the published IFRS financial statements at December 31, 2004, “Installment contracts” included deferred loan set-up costs in the amount
of €(15) million.
(2) Lease financing transactions (buyback contracts and long-term leases) are included in loans and receivables because they
fulfill the criteria for classification as finance leases, since the risks and rewards of ownership of the vehicle do not lie with
Banque PSA Finance.

(3) The Banque PSA Finance group implemented three securitization programs through the Auto ABS special purpose entity, created in June
2001.
- On June 28, 2001, two Crédipar subsidiaries, Din and Sofi, merged with Crédipar since January 2002, sold €1 billion worth of automobile loans
to the 2001-1 fund of the Auto ABS securitization vehicle. The Auto ABS 2001-1 fund issued €950 million worth of AAA/Aaa rated preferred
asset-backed securities and €50 million worth of A/A2 rated subordinated asset-backed securities. Crédipar's retained interest amounts to
€10,000.
- On July 11, 2002, Crédipar sold €550 million worth of automobile loans and the Spanish branch of Banque PSA Finance sold
€950 million worth of automobile loans to the Auto ABS 2002-1 fund. The Auto ABS 2002-1 fund issued €1,440 million worth of AAA/Aaa
rated preferred asset-backed securities and €60 million worth of A/A2 rated subordinated asset-backed securities. Banque PSA Finance
group's retained interest amounts to €30,000.
- On February 25, 2004, the German Banque PSA Finance subsidiary PSA Finance Deutschland GmbH sold €1 billion worth of automobile
loans to the Auto ABS 2004-1 fund. The Auto ABS 2004-1 fund issued €970 million worth of AAA/Aaa rated preferred asset-backed securities
and €30 million worth of A/A2 rated subordinated asset-backed securities. PSA Finance Deutschland GmbH's retained interest amounts to
€10,000.
� 8.2. ANALYSIS BY GEOGRAPHICAL AREA
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Net loans and receivables
France 8,127 7,780
European Union (excluding France) 13,578 12,910
Other European countries 348 339
Latin America 364 152
Total 22,417 21,181
� 8.3. ANALYSIS BY MATURITY
MATURITIES OF RETAIL FINANCE RECEIVABLES
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months 2,103 1,820
3 months to 1 year 4,481 3,671
1 to 5 years 9,657 9,606
Over 5 years 95 165
Total, gross 16,336 15,262
Guarantee deposits (lease financing) (94) (111)
Depreciations (284) (285)
Net 15,958 14,866
MATURITIES OF OTHER FINANCE RECEIVABLES
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months 165 182
3 months to 1 year 168 160
1 to 5 years 388 369
Over 5 years 34 25
Total, gross 755 736
Depreciations (30) (34)
Net 725 702
Banque PSA Finance - 2005 annual report
43

MATURITIES OF WHOLESALE FINANCE RECEIVABLES
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months 3,198 3,780
3 months to 1 year 2,379 1,601
1 to 5 years - 53
Over 5 years - -
Total, gross 5,577 5,434
Depreciations (13) (13)
Net 5,564 5,421
44 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 9 – FAIR VALUE ADJUSTMENTS TO FINANCE RECEIVABLES
PORTFOLIOS HEDGED AGAINST INTEREST RATE RISKS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Fair value adjustments to:
- Installment contracts (10) 27
- Buyback contracts (2) 5
- Long-term leases (7) 12
Total (19) 44
Hedging effectiveness is analyzed in note 22.4.
NOTE 10 – ACCRUALS AND OTHER ASSETS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Other receivables 214 164
- Related companies (1) 50 31
- Non-group companies 164 133
Checks and bills presented for collection - 60
Prepaid and recoverable taxes 75 70
Other prepaid expenses 41 50
Accrued income 11 19
- Related companies 2 6
- Non-group companies 9 13
Other 111 104
- Related companies - 3
- Non-group companies 111 101
Total 452 467
(1) Other receivables from related companies consist mainly of contributions receivable from the marques.

NOTE 11 – PROPERTY AND EQUIPMENT
AND INTANGIBLE ASSETS
Property and equipment and intangible assets can be analyzed as follows:
NOTE 12 – GOODWILL
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Dec. 31, 2005 Dec. 31, 2004
Depreciation/ Depreciation/
(in millions of euros) Cost amortization Net Cost amortization Net
Land and buildings 48 (18) 30 48 (17) 31
Vehicles 12 (2) 10 13 (3) 10
Other 41 (33) 8 41 (31) 10
Property and equipment 101 (53) 48 102 (51) 51
Intangible assets (1) 112 (34) 78 91 (29) 62
Total 213 (87) 126 193 (80) 113
(1) The development cost of software for internal use capitalized under intangible assets at December 31, 2005 amounted to €77 million
net.
MOVEMENTS AT COST
(in millions of euros) Dec. 31, 2004 Additions Disposals
Other
movements Dec. 31, 2005
Land and buildings 48 - - - 48
Vehicles 13 9 (10) - 12
Other 41 2 (2) - 41
Property and equipment 102 11 (12) - 101
Intangible assets 91 21 - - 112
Total 193 32 (12) - 213
CHANGES IN DEPRECIATION AND AMORTIZATION
(in millions of euros) Dec. 31, 2004 Increases Decreases
Other
movements Dec. 31, 2005
Buildings (17) (1) - - (18)
Vehicles (3) (3) 4 - (2)
Other (31) (3) 1 - (33)
Property and equipment (51) (7) 5 - (53)
Intangible assets (29) (5) - - (34)
Total (80) (12) 5 - (87)
An impairment test carried out on December 31, 2005 revealed no impairment in the carrying amount of goodwill (see the
comment on goodwill in note 2.A).
Banque PSA Finance - 2005 annual report
45

46 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 13 – FINANCIAL LIABILITIES AT FAIR VALUE THROUGH
PROFIT OR LOSS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Debt securities valued using the fair value option 152 152
Fair value adjustments 6 5
Total liabilities at fair value through profit or loss (1) Fair value of derivative financial instruments intended to hedge
158 157
marketable securities (2) Fair value of derivative financial instruments intended to hedge
1 1
liabilities valued using the fair value option (3) 4 4
Accrued interest payable on trading instruments 3 -
Fair value of trading instruments (3)(4) 18 53
Total 184 215
(1) The group has elected to value a liability using the fair value option in order to recognize fair value adjustments made to the liability
symmetrically with fair value adjustments made to the derivative financial instruments used to hedge the liability. The impact of the change
in issuer spread on the liability’s fair value was not material.
In the published IFRS financial statements for the year ended December 31, 2004, this liability (€152 million) was included in “Time deposits
- non-Group institutions” (see note 15).
(2) Some of the swaps included in financial liabilities at fair value through profit or loss are intended to hedge marketable securities valued
using the fair value option (cf note 4).
(3) In the published IFRS financial statements for the year ended December 31, 2004, “Fair value of derivative financial instruments intended
to hedge liabilities valued using the fair value option” was included in “Fair value of trading instruments”.
(4) Swaps classified as held for trading, which are primarily set up during securitization transactions, represent closed positions that set each
other off within homogeneous portfolios. They do not generate any material gains or losses (see notes 4 and 22).
NOTE 14 – HEDGING INSTRUMENTS (LIABILITIES)
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Sold options - 1
Adjustment accounts - off-balance sheet transactions in foreign currencies (1) 5 70
Accrued expenses on swaps
Negative fair value of instruments designated as hedges of:
110 102
- Borrowings 3 -
- EMTNs/BMTNs 19 6
- Bonds - -
- Retail finance receivables 12 48
Total 149 227
Hedging effectiveness is analyzed in note 22.4.
(1) Adjustment accounts are used to record fair value adjustments to currency swaps designated as hedges of foreign currency financing
liabilities.

ANALYSIS OF DEMAND AND TIME ACCOUNTS
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 15 – DEPOSITS FROM CREDIT INSTITUTIONS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Demand deposits (non-group institutions) 103 92
- Ordinary accounts in credit 100 89
- Other 3 3
Accrued interest 1 1
Time deposits (non-group institutions) (1) 7,495 6,874
Accrued interest 28 39
Debt issuing costs (deferred charges) (2) - -
Total 7,627 7,006
(1) Compared with the published IFRS financial instruments for the year ended December 31, 2004, a liability of €152 million has been
reclassified as “Financial liabilities at fair value through profit or loss” (see note 13).
(2) Set-up fees on securitization transactions are now included under “Debt securities”. In the IFRS financial statements for
the year ended December 31, 2004, they were included under “Deposits from credit institutions” in the amount of €(4) million
(see note 17).
MATURITIES OF TIME DEPOSITS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months (1) 3,878 3,813
3 months to 1 year 1,794 994
1 to 5 years 1,823 1,994
Over 5 years - 73
Total 7,495 6,874
(1) Including €1,472 million in short-term drawdowns on back up lines corresponding to long-term financing commitments
(see note 24).
ANALYSIS BY REPAYMENT CURRENCY
Dec. 31, 2005 Dec. 31, 2004
Demand Time Demand Time
(in millions of euros) deposits deposits deposits deposits
Euros 85 5,927 51 5,561
Pounds sterling 6 1,204 24 1,127
Hungarian forints 11 2 8 5
Swiss francs 1 49 5 44
Brazilian reals - 190 - 78
Czech koruny - 74 2 50
Other - 49 2 9
Total 103 7,495 92 6,874
Banque PSA Finance - 2005 annual report
47

48 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 16 – DUE TO CUSTOMERS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Time accounts
Non-group companies 4 72
Sub-total
Demand accounts
4 72
Related companies 131 144
- Other customer deposits 51 79
- PSA Peugeot Citroën Group’s entities’ ordinary accounts in credit (1) 80 65
Non-group companies (independent dealer network's ordinary accounts in credit) 165 156
Sub-total 296 300
Total 300 372
(1) Comprising the cash surplus on the GIE PSA Trésorerie current account with Sofib (€30 million) and subsidiaries’ payment accounts
concerning transactions with the PSA Peugeot Citroën Group.
MATURITIES OF TIME ACCOUNTS (EXCLUDING ACCRUED INTEREST)
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
0 to 3 months 3 70
3 months to 1 year - 1
1 to 5 years 1 1
Over 5 years - -
Total 4 72
ANALYSIS OF TIME ACCOUNTS (EXCLUDING ACCRUED INTEREST) BY REPAYMENT CURRENCY
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Euros 2 69
Other 2 3
Total 4 72

NOTE 17 – DEBT SECURITIES
ANALYSIS BY TYPE OF SECURITY
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Interbank instruments and money-market securities (non-group institutions) 12,708 11,335
- EMTNs 9,195 8,141
- BMTNs 366 685
- Certificates of deposit and “billets de trésorerie“ 3,147 2,509
Accrued interest 85 108
Debt issuing costs (deferred charges) (1) (11) (20)
Bonds 91 91
Accrued interest - -
Other debt securities 1,871 2,717
- of which securitization: priority and subordinated notes 1,846 2,714
Accrued interest 7 11
Total 14,751 14,242
(1) Set-up fees on securitization transactions are now included under “Debt securities”. In the IFRS financial statements for the year ended
December 31, 2004, they were included under “Deposits from credit institutions” in the amount of €(4) million (see note 15).
MATURITY OF DEBT SECURITIES (EXCLUDING ACCRUED INTEREST)
Dec. 31, 2005 Dec. 31, 2004
(in millions of euros) Obligations TCN Others Obligations TCN Others
0 to 3 months - 3,379 168 - 3,942 243
3 months to 1 year 91 2,669 477 - 2,089 641
1 to 5 years - 6,551 1,226 91 5,004 1,833
Over 5 years - 109 - - 300 -
Total 91 12,708 1,871 91 11,335 2,717
ANALYSIS OF DEBT SECURITIES BY REPAYMENT CURRENCY
Dec. 31, 2005 Dec. 31, 2004
(in millions of euros) Obligations TCN Others Obligations TCN Others
Euros 91 12,191 1,847 91 10,705 2,715
Pounds sterling - 277 - - 234 -
US dollars - 17 - - 162 -
Japanese yen - 161 - - 175 -
Czech koruny - 62 - - 59 -
Brazilian reals - - 24 - - 2
Total 91 12,708 1,871 91 11,335 2,717
Banque PSA Finance’s residual currency position is presented in note 22.
Banque PSA Finance - 2005 annual report
49

50 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 18 – FAIR VALUE ADJUSMENTS TO DEBT PORTFOLIOS
HEDGED AGAINST INTEREST RATE RISKS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Fair value adjustments to borrowings (2) 4
Fair value adjustments to EMTNs/BMTNs 20 62
Fair value adjustments to bonds 37 31
Total 55 97
Hedging effectiveness is analyzed in note 22.4.
NOTE 19 – ACCRUALS AND OTHER LIABILITIES
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Trade payables 285 262
- Related companies (1) 226 202
- Non-group companies 59 60
Wholesale financing liabilities - 2
- Non-group companies - 2
Accrued payroll and other taxes 71 73
Accrued charges 174 169
- Related companies 33 50
- Non-group companies 141 119
Deferred income 108 125
- Related companies 7 7
- Non-group companies: interest differential paid on swaps with margin calls 50 63
- Non-group: other 51 55
Other payables 10 22
- Related companies 4 4
- Non-group companies 6 18
Other accruals 118 78
Total 766 731
(1) Representing the price of vehicles payable to the Peugeot and Citroën marques.
NOTE 20 – PROVISIONS
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Provisions for pensions and other post-retirement benefits (1) 20 20
Provisions for doubtful wholesale commitments 8 7
Provisions for losses on sales of used cars (2) 27 25
Provision for leasing risk in Portugal 5 5
Provision for own insurance risk 2 2
Provisions for sub-contracted long term leases 1 1
Other 10 12
Total 73 72
(1) The present value of the Group’s commitments at December 31, 2005 was €53 million and deferred employee benefits were
€6.5 million.

ASSUMPTIONS
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
The actuarial assumptions used in the last two years to measure projected benefit obligations were as follows:
Euro zone United Kingdom
Discount rate
2005 4.00% 5.00%
2004
Inflation rate
4.50% 5.00%
2005 2.00% 2.50%
2004
Expected return on external funds
2.00% 2.25%
2005 6.00% 7.00%
2004 6.00% 7.00%
Assumptions concerning future salary levels reflect, for each country, projected inflation rates and assumptions related to individual pay
increases.
Mortality and staff turnover assumptions are based on the specific economic conditions of each Group company or the country in which they
operate.
Sensitivity of assumptions: a 0.25-point increase or decrease in the actuarial rate (discount rate – inflation rate) would lead to an increase
or decrease in the projected benefit obligation of 2.4% for French plans and 4.4% for UK plans.
(2) In the United Kingdom, certain contracts allow for vehicles to be returned mid-contract without the payment of a termination penalty. Most
of this provision is intended to cover the risks of losses on the sale of the used vehicles.
NOTE 21 – SUBORDINATED DEBT
The €150 million in subordinated notes issued by Banque PSA Finance on May 31, 2000 were redeemed in advance in
June 2005.
NOTE 22 – DERIVATIVES
� GROUP INTEREST RATE MANAGEMENT
POLICY
Currency risk: Banque PSA Finance does not take currency
positions. The assets and liabilities of each entity are matched
through the use of appropriate financial instruments.
Interest rate risk: Bank policy aims at neutralizing the effects
of changes in interest rates on each entity’s operating margin
by using appropriate financial instruments to match interest
rate structures between assets and liabilities.
Concerning assets, interest rate swaps are purchased on the
market as soon as new retail financing is granted to convert
interest on the loans to a variable rate based on a 3-month
benchmark. In practice, the swaps are purchased at ten day
intervals, covering pools of loans with the same maturity
granted in the previous ten days. Wholesale financing is
granted at rates based on short-term market rates, while the
liquidity reserve is invested at the same rates. This means that
all of the bank’s interest-bearing assets are at short-term rates.
Concerning liabilities, all new debt paying interest at a fixed
rate for more than six months is converted to a rate based
on a 3-month benchmark.
These management techniques serve to neutralize interest
rate risks on the bank’s balance sheet.
In order to cap the refinancing cost of new retail financing to
be granted in 2006, Banque PSA Finance has purchased
swaptions (options on interest rate swaps) expiring in the
second, third and fourth quarters (see paragraph 22.2. below).
The use of swaptions may be continued in 2006, depending
on market opportunities.
Any residual risks are monitored daily by the VAR method
and have no material impact on profit.
Counterparty risk: Banque PSA Finance's exposure to
counterparty risks is limited to its use of derivatives governed
by standard FBF or ISDA agreements and very short term
cash investments. Counterparties are all first-class financial
institutions.
Banque PSA Finance - 2005 annual report
51

� 22.1. BANQUE PSA FINANCE RATE POSITION AT DECEMBER 31, 2005
Total
(in millions of euros) 0 to 1 year 1 to 5 years +5 years Dec. 31, 2005
Financial assets
Wholesale financing 5,830 - - 5,830
Fixed rate Retail financing 6,539 9,347 - 15,886
Other adjustable rate loans and receivables 701 - - 701
Other financial assets 3,337 - - 3,337
Total financial assets (a)
Other financial assets
(derivatives and fair value adjustments
16,407 9,347 - 25,754
to hedged finance receivables portfolios)
Non financial assets
173 - - 173
Fixed assets and goodwill - 207 - 207
Other non financial assets 570 - - 570
Total non financial assets 570 207 - 777
Total assets
Financial liabilities
26,704
Hedged fixed rate debts (3,594) (2,585) (261) (6,440)
Adjustable rate debts (15,723) - - (15,723)
Other borrowings and deposits (404) - - (404)
Total financial liabilities (b)
Other financial liabilities
(derivatives and fair value adjustments
(19,721) (2,585) (261) (22,567)
to hedged debt portfolios) (388) - - (388)
Other non financial liabilities (1,319) - - (1,319)
Total non financial liabilities (1,319) - - (1,319)
Equity - (2,430) - (2,430)
Total equity and liabilities (26,704)
Net position before hedging = (a) + (b)
Off-balance sheet
Off-balance sheet financial assets
(3,314) 6,762 (261) 3,187
Swaps hedging fixed rate retail financing, borrowing leg (6,123) (7,200) - (13,323)
Swaps hedging fixed rate retail financing, lending leg 13,323 - - 13,323
Swaps hedging marketable securities, borrowing leg (2,500) - - (2,500)
Swaps hedging marketable securities, lending leg 2,500 - - 2,500
Total off-balance sheet financial assets (c)
Off-balance sheet financial liabilities
7,200 (7,200) - -
Swaps hedging fixed rate debts, lending leg 4,232 2,668 261 7,161
Swaps hedging fixed rate debts, borrowing leg (7,161) - - (7,161)
Total off-balance financial liabilities (d) (2,929) 2,668 261 -
Trading operations (e) (1) - - - -
Off-balance sheet position = (c) + (d) + (e) 4,271 (4,532) 261 -
Net position after hedging 957 2,230 - 3,187
52 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements

This table analyzes financial assets and liabilities based on
their maturity, for fixed rate items, or the next rate adjustment
date, for adjustable rate items.
In the statement of off-balance sheet items, the lending leg of
swaps and other derivative transactions is reported as a positive
amount and the borrowing leg is reported as a negative amount.
The net position after hedging, with maturities ranging
from 1 to 5 years, corresponds to net assets covered by
Banque PSA Finance's regulatory capital.
(1) There were no isolated open swap positions in the trading
portfolio at December 31, 2005. Swaps classified as held for
trading, which are primarily set up during securitization
transactions, represent closed positions that set each other off
within homogeneous portfolios for a notional amount of €4,558
million. They do not generate any material gains or losses (see
notes 4 and 13).
� 22.2. HEDGES OF INTEREST RATE RISKS
ON FUTURE LENDING
TRANSACTIONS
In order to cap the refinancing cost of new retail financing in
euros to be granted in 2006, Banque PSA Finance has
purchased swaptions (options on interest rate swaps) expiring
in the first, second and third quarters of 2006. The notional
amounts of the swaps and their maturities (which range from
one to five years) match the forecast amounts and maturities
of new retail financing expected to be originated in these three
quarterly periods. At December 31, 2005, the notional amounts
totaled €3,768 million.
� 22.3. BANQUE PSA FINANCE RESIDUAL POSITIONS IN FOREIGN CURRENCIES
AT DECEMBER 31, 2005
EXTERNAL POSITIONS
(in millions of euros) JPY USD CZK HKD CHF HUF PLN MXN GBP
Assets - - - - - 12 53 31 277
Liabilities (161) (17) (62) - - - - - (277)
Net position before hedging (161) (17) (62) - - 12 53 31 -
Hedging assets - - - - - (12) (53) (31) -
Hedging liabilities 161 17 62 - - - - - -
Off-balance sheet positions 161 17 62 - - (12) (53) (31) -
Net position after hedging - - - - - - - - -
SUBSIDIARIES’ POSITIONS
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(in millions of euros) EUR/GBP EUR/CHF USD/EUR USD/BRL CHF/HUF EUR/HUF
Assets - - 34 - 49 -
Liabilities (765) (289) - (34) (49) -
Net position before hedging (765) (289) 34 (34) - -
Hedging assets - - (34) - - -
Hedging liabilities 765 289 - 34 - -
Off-balance sheet positions 765 289 (34) 34 - -
Net position after hedging - - - - - -
Banque PSA Finance - 2005 annual report
53

� 22.4. ANALYSIS OF HEDGING EFFECTIVENESS
Ineffective
portion
Fair value recognized in
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004 adjustments profit or loss
Fair value adjustments to retail loans
- Installment contracts (10) 27 - -
- Buyback contracts (2) 5 - -
- Long-term leases (7) 12 - -
Total valuation, net
Derivative instruments designated as hedges of retail loans
(19) 44 (63) -
- Assets 35 3 - -
- Liabilities (12) (48) - -
Total valuation, net
Ineffective portion of gains and losses on outstanding
23 (45) 68 5
hedging transactions
Fair value adjustments to hedged debt
4 (1) - 5
Valuation 2 (4) - -
Total valuation, net
Derivative instruments designated as hedges of debt
2 (4) 6 -
- Assets 1 4 - -
- Liabilities (3) - - -
Total valuation, net
Ineffective portion of gains and losses on outstanding
(2) 4 (6) 0
hedging transactions
Fair value adjustments to hedged EMTNs/BMTNs
0 0 - 0
Valuation (20) (61) - -
Total valuation, net
Derivative instruments designated as hedges
of EMTNs/BMTNs
(20) (61) 41 -
- Assets 39 66 - -
- Liabilities (19) (6) - -
Total valuation, net
Ineffective portion of gains and losses on outstanding
20 60 (40) 1
hedging transactions
Fair value adjustments to hedged bonds
0 (1) - 1
Valuation (37) (31) - -
Total valuation, net
Derivative instruments designated as hedges of bonds
(37) (31) (6) -
- Assets 37 31 - -
- Liabilities - - - -
Total valuation, net
Ineffective portion of gains and losses on outstanding
37 31 6 0
hedging transactions 0 0 - 0
54 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Swaptions held to hedge future retail loans are not€included
in the hedging effectiveness table as the loans do not yet
exist. At November 31, 2005, the notional amount of
swaptions outstanding was €3.8 billion and the loss
generated since the beginning of the year was €(9.2) million,
including a positive impact of €2.7 million in fair value
adjustments. An intrinsic value of €5.1 million was recognized
directly in equity, in “Fair value adjustments” (see “Consolidated
statement of changes in equity attributable to equity holders
of the parent and minority interests”).

CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
� 22.5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE
Fair value Impact
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004 adjustments on profit
Financial assets at fair value
- Fair value adjustments to marketable securities
- Fair value of derivative financial instruments intended
4 2 2
to hedge liabilities valued using the fair value option 9 9 -
- Fair value of trading derivative financial instruments 18 54 (36)
Total valuation, net
Financial liabilities at fair value
- Fair value adjustments to liabilities valued using
31 65 (34)
the fair value option
- Fair value of derivative financial instruments intended
(6) (5) (1)
to hedge marketable securities
- Fair value of derivative financial instruments intended
(1) (1) -
to hedge liabilities valued using the fair value option (4) (4) -
- Fair value of trading derivative financial instruments (18) (53) 35
Total valuation, net (29) (63) 34 0
NOTE 23 – FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value Book value Differed gain or loss
(en millions d’euros) Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004
Assets
Cash, central banks, post office banks 10 21 10 21 - -
Financial assets at fair value through profit or loss 2,788 2,918 2,788 2,918 - -
Hedging instruments 161 171 161 171 - -
Available-for-sale assets (1) - 1 - 1 - -
Loans and advances to credit institutions (2) 625 444 625 444 - -
Customer loans and receivables (3) Liabilities
22,551 21,282 22,398 21,225 153 57
Central banks, post office banks - - - - - -
Financial liabilities at fair value through profit or loss 184 215 184 215 - -
Hedging instruments 149 227 149 227 - -
Deposits from banks (4) 7,627 7,015 7,625 7,010 2 5
Due to customers (4) 300 372 300 372 - -
Debt securities (4) 14,827 14,351 14,808 14,335 19 16
Subordinated debt (4) - 151 - 150 - 1
The main measurement methods applied are as follows:
(1) The fair value of investments in companies that are not yet
consolidated, which are included in “Available-for-sale assets”,
corresponds to their amortized cost.
(2) The fair value of very short-term loans and advances to banks is
close to their amortized cost.
(3) Customer loans and receivables are stated at amortized cost.
They are generally hedged against interest rate risks (fair value
hedge) and are therefore remeasured at the hedging rate (swap
rate), in accordance with hedge accounting principles. Cumulative
gains and losses arising from remeasurement are added to or
deducted from their amortized cost. The fair value presented
above has been estimated by discounting future cash flows at
the rate at which similar loans were granted at the year-end.
(4) Financing liabilities are stated at amortized cost. Hedge accounting
is applied to liabilities hedged by interest rate swaps (fair value
hedge), leading to their remeasurement at the discounted
financing cost. Cumulative gains and losses arising from
remeasurement are added to or deducted from their amortized
cost. The fair value presented above therefore corresponds mainly
to the change in the premium over the risk-free rate paid by
Banque PSA Finance on its financial market borrowings.
The other balance sheet items not listed above are either nonfinancial
items, or very short-term assets and liabiities whose fair
value is not materially different from their book value.
Banque PSA Finance - 2005 annual report
55

(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Financing commitments
Commitments received from credit institutions (1) 7,041 6,760
Commitments given to customers 1,019 899
- of which Crédipar group
Guarantee commitments
778 805
Commitments received from credit institutions 238 172
- of which Crédipar group 49 101
Commitments given to customers 237 148
- of which Spanih branch 108 101
- of which Sofib 111 35
- of which Sofira 9 7
- of which Italian branch 9 5
(1) Including €1,152 million in unused back up lines corresponding to long-term financing commitments (see note 15).
(in millions of euros) 31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Installment contracts (1) 932 924
Buyback contracts (1) 179 157
Long-term leases (1) 262 271
Other 28 31
Total interest and other revenue from retail financing activities 1,401 1,383
- o/w related companies 123 100
Interest and other revenue from wholesale financing activities (2) 262 226
- o/w related companies 148 140
Interest and other revenue from other activities (cards, current accounts, guarantees) 10 10
- o/w related companies - -
Commissions paid to referral agents (263) (247)
- Installment contracts (177) (180)
- Buyback contracts (40) (33)
- Long-term leases (46) (34)
Other business acquisition costs (26) (20)
Total amortized cost (289) (267)
Total 1,384 1,352
(1) Interest and other revenue on assets at amortized cost now include loan set-up fees spread over the term of the contract. In the IFRS
financial statements for the year ended December 31, 2004, they were included in “Fees and commissions” in the amount of €35 million
(see note 27).
(2) As in other countries, interest paid by the Peugeot and Citroën marques in the United Kingdom during the interest-free period granted to the
dealerships is now included under “Interest and other revenue from wholesale financing activities”. In the IFRS financial statements for the
year ended December 31, 2004, it was included in “Fees and commissions” in the amount of €35 million (see note 27).
56 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 24 – COMMITMENTS
NOTE 25 – INTEREST AND OTHER REVENUE ON ASSETS
AT AMORTIZED COST

ANALYSIS OF RETAIL FINANCING REVENUE BY GEOGRAPHICAL AREA
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 552 566
Europe (excl. France) 806 789
- Germany 167 158
- Austria 12 11
- Belgium 37 37
- Spain 186 189
- Hungary 3 2
- Italy 112 101
- Netherlands 19 20
- Poland 3 -
- Portugal 39 37
- Czech Republic 4 2
- Slovakia 1 -
- United Kingdom 204 212
- Switzerland 19 20
Outside Europe 43 28
- Argentina 1 -
- Brazil 42 28
Total 1,401 1,383
ANALYSIS OF WHOLESALE FINANCING REVENUE BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 67 60
Europe (excl. France) 180 162
- Germany 32 29
- Austria 4 3
- Belgium 11 9
- Spain 26 23
- Hungary 3 2
- Italy 25 22
- Netherlands 12 11
- Poland 4 3
- Portugal 7 6
- Czech Republic 1 1
- United Kingdom 52 50
- Switzerland 3 3
Outside Europe 15 4
- Brazil 15 4
Total 262 226
Banque PSA Finance - 2005 annual report
57

ANALYSIS OF COMMISSIONS PAID TO REFERRAL AGENTS AND OTHER BUSINESS ACQUISITION COSTS,
BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France (131) (123)
Europe (excl. France) (148) (140)
- Germany (10) (9)
- Austria (1) (1)
- Belgium (3) (3)
- Spain (43) (40)
- Hungary (1) -
- Italy (34) (30)
- Netherlands (3) (3)
- Portugal (9) (8)
- Czech Republic (1) (1)
- United Kingdom (41) (43)
- Switzerland (2) (2)
Outside Europe (10) (4)
- Brazil (10) (4)
Total (289) (267)
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Provisions and gains and losses on sales of used vehicles, net (1) - -
Interest expense on ordinary accounts in credit (1) (2)
Interest expense on transactions with the independent dealer network (4) (4)
Interest expense on transactions with the owned dealer network (5) (4)
Other interest expense on customer transactions (2) - -
Total (10) (10)
(1) Provisions and gains and losses on sales of used vehicles are now included under “Other revenue and expense”. In the IFRS financial statements
for the year ended December 31, 2004, they were included under “Interest expense on customer transactions” in the amount of €25 million
(see note 27).
(2) “Other interest expense on customer transactions” is now included under "Other revenue and expense". In the IFRS financial statements
for the year ended December 31, 2004, it was included under “Interest expense on customer transactions” in the amount of €(2) million
(see note 27).
58 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 26 – INTEREST EXPENSE ON CUSTOMER TRANSACTIONS

NOTE 27 – OTHER REVENUE AND EXPENSE
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
“Other revenue and expense” replaces the caption “Fees and commissions” in the income statement.
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Fees and commissions on retail customer transactions (1) 54 47
Fees and commissions on other customer transactions 2 3
Fees and commissions on transactions with the dealer network (2) - -
Fees and commissions on services to retail customers (3) - -
Other (4) 6 1
Other revenue 62 51
Bank charges (5) (8) (7)
Provisions and gains and losses on sales of used vehicles, net (6) (17) (25)
Joint venture income attributable to partners (7) (3) (3)
Other (8) (5) (2)
Other expense (33) (37)
Other revenue and expense 29 14
(1) Interest and other revenue on assets at amortized cost now
includes loan set-up fees spread over the term of the contract.
In the IFRS financial statements for the year ended December 31,
2004, they were included in “Fees and commissions” in the
amount of €35 million (see note 25).
(2) As in other countries, interest paid by the Peugeot and Citroën
marques in the United Kingdom during the interest-free period
granted to the dealerships is now included under “Interest and
other revenue from wholesale financing activities”. In the IFRS
financial statements for the year ended December 31, 2004, they
were included in “Fees and commissions” in the amount of
€35 million (see note 25).
(3) Insurance brokerage fees are now included under “Revenues
from sales of services”. In the IFRS financial statements for the
year ended December 31, 2004, they were included under “Fees
and commissions” in the amount of €10 million.
(4) In the published IFRS financial statements for the year ended
December 31, 2004, “Other fees and commissions” were included
in “Margin on sales of services” in the amount of €1 million. They
are now included in “Other revenue and expense”.
NOTE 28 – INTEREST ON DEPOSITS FROM
CREDIT INSTITUTIONS
(5) Bank charges are now classified as “Other revenue and
expense”. In the IFRS financial statements for the year ended
December 31, 2004, they were included under “Debt issuing
costs”, a component of “Net refinancing cost”, in the amount
of €7 million.
(6) Provisions and gains and losses on sales of used vehicles are now
included under “Other revenue and expense”. In the IFRS financial
statements for the year ended December 31, 2004, they were
included under “Interest expense on customer transactions” in the
amount of €25 million (see note 26).
(7) Joint venture income attributable to partners is now included under
“Other revenue and expense”. In the IFRS financial statements for
the year ended December 31, 2004, it was included under
“Expenses on sales of services” in the amount of €3 million.
(8) “Other interest expense on customer transactions” is now included
under “Other revenue and expense”. In the IFRS financial
statements for the year ended December 31, 2004, it was included
under “Interest expense on customer transactions” in the amount
of €(2) million (see note 26).
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Interest expense on deposits from credit institutions (205) (188)
Total (1) (205) (188)
(1) In the published IFRS financial statements for the year ended December 31, 2004, “Premiums/discounts on foreign exchange transactions”
in the amount of €21 million were included in “Interest on deposits from credit institutions”. They are now included in “Interest on hedging
instruments”. This is simply a reclassification between two components of net refinancing cost.
Banque PSA Finance - 2005 annual report
59

ANALYSIS BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France (292) (279)
Europe (excl. France) (356) (331)
- Germany (44) (43)
- Austria (5) (5)
- Belgium (19) (19)
- Spain (55) (47)
- Hungary (2) (2)
- Italy (43) (39)
- Netherlands (44) (44)
- Poland (3) (2)
- Portugal (18) (18)
- Czech Republic (1) (1)
- United Kingdom (114) (103)
- Switzerland (8) (8)
Outside Europe (34) (19)
- Brazil (34) (19)
Eliminations 477 441
Total (205) (188)
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Interest costs on debt securities (360) (364)
Interest costs on subordinated borrowings from credit institutions (2) (6)
Interest costs on bonds and other fixed income securities (36) (19)
Total (1) (398) (389)
(1) In the published IFRS accounts at December 31, 2004, interest costs on debt securities amounted to €(371) million. The difference with the figure
above reflects two reclassifications, one to “interest and dividends on marketable securities”, in an amount of €(23) million, and the other to “debt
issuing costs”, in an amount of €5 million.
ANALYSIS BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France (358) (345)
Europe (excl. France) (38) (44)
- Germany (24) (20)
- Spain (14) (22)
- Netherlands - (1)
- United Kingdom - (1)
Outside Europe (2) -
- Brazil (2) -
Total (398) (389)
60 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 29 – INTEREST ON DEBT SECURITIES

CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 30 – GENERAL OPERATING EXPENSES
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Wages and salaries (92) (88)
Social security taxes (30) (30)
Employee profit sharing and profit-related bonuses (1) (1)
Total personnel costs (123) (119)
Other general operating expenses (165) (160)
- of which related companies (78) (73)
Total (288) (279)
GENERAL OPERATING EXPENSES BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France (128) (121)
Europe (excl. France) (152) (152)
- Germany (33) (30)
- Austria (5) (5)
- Belgium (10) (12)
- Spain (25) (25)
- Hungary (2) (2)
- Italy (20) (22)
- Netherlands (7) (8)
- Poland (4) (2)
- Portugal (6) (7)
- Czech Republic (2) (1)
- Slovakia (31) (33)
- United Kingdom (1) -
- Switzerland (6) (5)
Outside Europe (8) (6)
- Argentina (1) (1)
- Brazil (6) (5)
- Mexico (1) -
Total (288) (279)
Banque PSA Finance - 2005 annual report
61

NUMBER OF EMPLOYEES BY GEOGRAPHICAL AREA
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 869 878
Europe (excl. France) 1,302 1,290
- Germany 251 247
- Austria 35 36
- Belgium 81 78
- Spain 231 229
- Hungary 16 15
- Italy 149 144
- Netherlands 76 77
- Poland 35 24
- Portugal 80 78
- Czech Republic 16 15
- United Kingdom 292 307
- Slovakia 8 7
- Switzerland 32 33
Outside Europe 39 37
- Argentina 10 7
- Brazil 29 30
Total 2,210 2,205
62 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements

NOTE 31 – COST OF RISK
� 31.1. CHANGES IN LOANS
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Cost of risk
Recoveries on Cost of risk
Balance at Net new Credit loans written off at Dec. 31, Balance at
(in millions of euros) Dec. 31, 2004 loans Charges Reversals losses in prior periods 2005 Dec. 31, 2005
Retail financing
Sound loans (1) 14,907 1,043 - - - - - 15,950
Guarantee deposits (lease financing) (111) 18 - - - - - (93)
Non-performing loans 355 81 - - (51) - (51) 385
Total 15,151 1,142 - - (51) - (51) 16,242
Impairment on sound loans with past-due installments (55) - (28) 33 - - 5 (50)
Impairment on non-performing loans (230) - (62) 58 - - (4) (234)
Total impairment (285) - (90) 91 - - 1 (284)
Net book value (A - see note 8.1 A) 14,866 1,142 (90) 91 (51) - (50) 15,958
Recoveries on loans written off in prior periods - - - 25 25
Net impairment
Other financing
(90) 91 (51) 25 (25)
Sound loans 698 13 - - - - - 711
Non-performing loans 38 8 - - (2) - (2) 44
Total 736 21 - - (2) - (2) 755
Impairment on sound loans with past-due installments - - - - - - - -
Impairment on non-performing loans (34) - (2) 6 - - 4 (30)
Total impairment (34) - (2) 6 - - 4 (30)
Net book value (B - see note 8.1 B) 702 21 (2) 6 (2) - 2 725
Recoveries on loans written off in prior periods - - - 1 1
Net impairment
Wholesale financing
(2) 6 (2) 1 3
Sound loans 5,411 145 - - - - - 5,556
Non-performing loans 23 1 - - (3) - (3) 21
Total 5,434 146 - - (3) - (3) 5,577
Impairment on sound loans with past-due installments - - - - - - - -
Impairment on non-performing loans (13) - (7) 7 - - - (13)
Total impairment (13) - (7) 7 - - - (13)
Net book value (C - see note 8.1 C) 5,421 146 (7) 7 (3) - (3) 5,564
Recoveries on loans written off in prior periods - - - - -
Net impairment
Total loans
(7) 7 (3) - (3)
Sound loans 21,016 1,201 - - - - - 22,217
Guarantee deposits (lease financing) (111) 18 - - - - - (93)
Non-performing loans 416 90 - - (56) - (56) 450
Total 21,321 1,309 - - (56) - (56) 22,574
Impairment on sound loans with past-due installments (55) - (28) 33 - - 5 (50)
Impairment on non-performing loans (277) - (71) 71 - - - (277)
Total impairment (332) - (99) 104 - - 5 (327)
Net book value 20,989 1,309 (99) 104 (56) - (51) 22,247
Recoveries on loans written off in prior periods - - - 26 26
Total cost of risk (99) 104 (56) 26 (25)
The cost of risk includes the impairment of accrued interest on non-performing loans recognized under “Interest revenue on
customer transactions”.
(1) In the published IFRS financial statements for the year ended December 31, 2004, deferred loan set-up costs were included in “Retail financing
- Sound loans” in the amount of €(15) million. They are now included in “Deferred loan set-up costs”, which are not shown in this table (see
note 8).
Banque PSA Finance - 2005 annual report
63

� 31.2. CHANGE IN COST OF RISK
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Known credit risk (sound loans with past-due installments)
Charges (28) (8)
Reversals
Known credit risk (non-performing loans)
33 15
Charges (71) (101)
Reversals
Doubtful off-balance sheet commitments
71 67
Charges - (8)
Reversals - 1
Credit losses (56) (64)
Recoveries on loans written off in prior periods 26 27
Cost of risk (1) (25) (71)
64 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
(1) Since 2004, Banque PSA Finance has developed a historic
database which enables it to measure:
- the probability of sound loans with past-due installments
becoming doubtful loans.
- the average loss ratio on doubtful loans discounted at the
effective interest rate.
In 2005, the database was refined, leading to:
(1)a) a decrease in the default and loss probability ratio, leading to a
€33 million reduction in the cost of risk during the year.
(1)b) an increase in the basis for provisioning against partial arrears and,
in France, loans subject to the Neiertz law, leading to a €6 million
increase in the cost of risk during the year.
Excluding these impacts, the net cost of risk would have
amounted to €(52) million during the year (equal to 0.24% of
average outstandings). This decline from the €(71) million reported
NOTE 32 – INCOME TAXES
Income taxes currently payable represent the amounts paid
or currently due to the tax authorities for the period, calculated
in accordance with the tax regulations and rates in effect in
the various countries.
Deferred income taxes relate to timing differences between
the recognition of certain items of income and expense for
in 2004 was led by the improvement in the loan recovery
management process.
These results confirm the Bank's ability to sustainably control
credit risks.
In wholesale financing, credit risk policies are backed by tried and
tested approval and tracking processes which ensure that swift
action is taken when any problems arise.
In retail financing, they are based on efficient, effective customer
selection and troubled loan management processes. These
processes are organized to deal with very large transaction
volumes while being sufficiently flexible to permit a case-by-case
approach.
In wholesale and fleet financing, risk management processes are
overseen and coordinated by a single unit at Group level, and the
same approach is followed for retail financing.
consolidated financial reporting and tax purposes. These
differences relate principally to the accounting treatment of
leasing and long-term rental operations, and impairment on
non-performing loans.
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Current taxes (177) (120)
Deferred taxes (1)(2) (26) (63)
Total (203) (183)

BANQUE PSA FINANCE TAX PROOF
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
Profit before income taxes 608 514
Permanent differences 14 6
Total tax base 622 520
Theoretical tax (34.933% tax rate) (216) (184)
Impact of varying tax rates at foreign subsidiaries 5 4
Impact of varying tax rates in France 1 -
Tax refund following transformation of the German subsidiary into a branch 3 -
Other 4 (3)
Actual tax payable (effective rate of 32.727%) (203) (183)
(1) Compared with the published IFRS financial statements€for the
year ended December 31, 2004, recognition of a deferred tax
liability on revaluation of the underlying assets of subsidiary Vernon
Wholesale Investment Company Limited had an impact of
€(15) million on the opening balance sheet at January 1, 2004.
In light of the time factor, the liability was reduced by €1 million
at December 2004 and by another €1 million at December 31, 2005.
(2) Compared with the published IFRS financial statements for the
year ended December 31, 2004, the Group has elected to value
� 33.1. NET BANKING REVENUE
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 352 373
Europe (excluding France) 562 491
- o/w Germany 128 100
- o/w Spain 119 94
- o/w Italy 65 56
- o/w United Kingdom 142 152
Rest of world 19 12
Total (1) 933 876
(1) Compared with the published IFRS financial statements for the year ended December 31, 2004, the Group has elected to value a liability
using the fair value option. The impact on net banking revenue was €(5) million at December 31, 2004.
� 33.2. GENERAL OPERATING EXPENSES
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
NOTE 33 – ANALYSIS OF KEY DATA BY REGION
a liability using the fair value option. The impact was €(5) million
and consequently a €1 million deferred tax was recognised.
Compared with the published IFRS financial statements for the year
ended December 31, 2004, deferred tax assets and liabilities are
now set off in the balance sheet. The impact on the total of
consolidated balance sheet was €(32) million at December 31, 2004
and €(16) million at January 1, 2004.
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France (128) (121)
Europe (excluding France) (152) (152)
- o/w Germany (33) (30)
- o/w Spain (25) (25)
- o/w Italy (20) (22)
- o/w United Kingdom (31) (33)
Rest of world (8) (6)
Total (288) (279)
Banque PSA Finance - 2005 annual report
65

� 33.3. COST OF RISK
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 10 (35)
Europe (excluding France) (32) (35)
- o/w Germany (1) (9)
- o/w Spain (6) (10)
- o/w Italy (10) (6)
- o/w United Kingdom (7) (4)
Rest of world (3) (1)
Total (25) (71)
� 33.4. OPERATING PROFIT
(in millions of euros)31/12/2005 Dec. 31, 2005 Dec. 31, 2004
France 228 213
Europe (excluding France) 371 297
- o/w Germany 91 58
- o/w Spain 88 58
- o/w Italy 34 27
- o/w United Kingdom 104 115
Rest of world 8 5
Total 607 515
� 33.5. KEY BALANCE SHEET ITEMS
66 Banque PSA Finance - 2005 annual report
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Total assets (1) Customer loans and receivables Refinancing (2) (3)
(in millions of euros) Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004
France 11,502 11,356 8,127 7,781 18,964 17,754
Europe (excl. France) 14,822 14,006 13,927 13,248 3,188 3,398
- o/w Germany 3,451 2,940 3,099 2,785 1,006 1,010
- o/w Spain 3,171 3,064 3,043 2,908 450 838
- o/w Italy 2,209 2,067 2,149 2,010 - 3
- o/w United Kingdom 3,009 3,046 2,650 2,720 1,288 1,231
Rest of world 380 162 363 152 226 96
Total 26,704 25,524 22,417 21,181 22,378 21,248
(1) Compared with the published IFRS financial statements for the year ended December 31, 2004, deferred tax assets and liabilities are now set
off in the balance sheet. The impact on the total of consolidated balance sheet was €(32) million at December 31, 2004 and €(16) million at
January 1, 2004.
(2) Refinancing includes “Deposits from credit institutions” and “Debt securities” (see notes 15 and 17).
(3) Compared with the published IFRS financial statements for the year ended December 31, 2004, a liability of €152 million has been
reclassified in “Financial liabilities at fair value through profit or loss” (see notes 13 and 15).

NOTES
Banque PSA Finance - 2005 annual report
67

NOTES
68 Banque PSA Finance - 2005 annual report

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