CREDIT AGRICOLE SA: Q1-2024 Results : THE GROUP CONTINUES TO GROW
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THE GROUP CONTINUES TO GROW |
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CASA AND CAG STATED AND UNDERLYING DATA
Q1-2024 |
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CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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Stated |
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Underlying |
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Stated |
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Underlying |
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Revenues |
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€6,806m+11.2% Q1/Q1 |
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€6,797m+10.5% Q1/Q1 |
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€9,525m+6.7% Q1/Q1 |
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€9,475m+5.8% Q1/Q1 |
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Expenses |
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-€3,669m-4.5% Q1/Q1 |
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-€3,649m-5.0% Q1/Q1 |
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-€5,589m-5.4% Q1/Q1 |
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-€5,569m-5.8% Q1/Q1 |
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Gross Operating Income |
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€3,137m+37.6% Q1/Q1 |
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€3,148m+36.1% Q1/Q1 |
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€3,936m+30.4% Q1/Q1 |
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€3,906m+28.1% Q1/Q1 |
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Cost of risk |
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-€400m+6.9% Q1/Q1 |
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-€380m+1.6% Q1/Q1 |
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-€651m-18.9% Q1/Q1 |
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-€631m+15.2% Q1/Q1 |
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Net income group share |
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€1,903m+55.2% Q1/Q1 |
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€1,933m+54.7% Q1/Q1 |
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€2,384m +42.8% Q1/Q1 |
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€2,383m+40.8% Q1/Q1 |
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C/I ratio |
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53.9%-0.5 pp Q1/Q1(excl. SRF) |
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53.7%-0.4 pp Q1/Q1(excl. SRF) |
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58.7% -0.5 pp
Q1/Q1 (excl. SRF)1 |
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58.8%-0.2 pp Q1/Q1(excl. SRF) |
OUTLOOK: 2024 RESULTS EXPECTED TO REACH 2025 AMBITIONS MTP
TARGET A YEAR AHEAD HIGHEST-EVER FIRST
QUARTER driven by the increase in GOI excluding SRF and
the end of SRF building-up period CONTINUED DEVELOPMENT OF
THE UNIVERSAL BANKING MODEL
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Continued development of the customer-focused universal
banking model, supported by dynamic customer capture,
higher inflows, sustained insurance activity, high and balanced
asset management net inflows, despite the slowdown in new home
loans in France and Italy
- Strong
momentum in Large Customers, resulting in record
performance for the quarter in CIB and a record level of assets
under custody and administration for CACEIS
PROGRESS IN STRATEGIC OPERATIONS
- Continuation of
ongoing operations: integration of ISB; creation of CAWL, JV with
Worldline; finalisation of the acquisition of Alpha Associates;
continued work on the acquisition of Degroof Petercam scheduled for
mid-2024.
- Announcement of
a MoU for a strategic partnership with Victory Capital
INCREASED SUPPORT FOR THE ENERGY TRANSITION
- A transition
plan based on three complementary, ordered areas:
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Accelerating the development of renewable and low-carbon
energy by focusing our financing on renewable and
low-carbon energy projects
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Supporting, as a universal bank, everyone’s
transition: equipping all corporates and households
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Structuring our own exit trajectory from the financing of
carbon-based energy
- The Net Zero
trajectories as at the end of 2023 are in line with the 2030
targets.
VERY SOLID CAPITAL AND LIQUIDITY POSITIONS
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Crédit Agricole S.A. phased-in CET1 11.8%
- CA Group
phased-in CET1 17.5%
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Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors «Solid results to support all our clients in
long-term transitions. » |
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Philippe Brassac,Chief Executive Officer of
Crédit Agricole S.A. «For the 3rd time in a row,
the financial ambitions of our medium-term plan should be achieved
a year ahead of schedule, i.e., by the end of 2024. » |
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This press release comments on the results of
Crédit Agricole S.A. and those of
Crédit Agricole Group, which comprises the
Crédit Agricole S.A. entities and the
Crédit Agricole Regional Banks, which own 60.2% of
Crédit Agricole S.A. Please see the appendices to this
press release for details of specific items, which are restated in
the various indicators to calculate underlying income.
Crédit Agricole Group
Group activity
The Group recorded strong commercial activity
this quarter across all business lines thanks to the continued
development of the universal banking model. Gross customer capture
has been dynamic. In the first quarter of 2024, the Group recorded
+512,000 new customers in retail banking, and the customer base
grew by +67,000 customers. More specifically, over the quarter, the
Group recorded +409,000 new customers for Retail Banking in
France and +103,000 new International Retail Banking customers
(Italy and Poland), and the customer base also grew (+57,000 and
+10,000 customers respectively).
In retail banking, on-balance sheet deposits
totalled €824 billion, up +3.9% year-on-year in France and
Italy (+3.7% for Regional Banks and LCL and +5.8% in Italy).
Outstanding loans totalled €872 billion, up +1.2% year-on-year
in France and Italy (+0.3% for Regional Banks and LCL and
+1.5% in Italy). Home loan production slowed down in France1 and
Italy in the first two months of the year, by -45% compared with
the first quarter of 2023 for Regional Banks, -54% for LCL and
-11.6% for CA Italy. The property and casualty insurance
equipment rate rose to 43.4% for the Regional Banks
(+0.5 percentage points compared to the first quarter of
2023), 27.8% for LCL (+0.4 percentage point) and 19.3% for
CA Italy (+2.0 percentage points).
In asset management, inflows were high and
balanced by major customer segment, type of management and
geographical area, in contrast to the European market. In
savings/retirement, Crédit Agricole Assurances posted
record gross inflows (€8.6 billion, up +4.3% year-on-year),
and the unit-linked rate remained high in production (39.1%). In
property and casualty insurance, the portfolio grew by +3.4%
year-on-year to 16 million policies. Assets under management
are at their highest level ever, and have risen compared to the end
of March 2023 in asset management (€2,116 billion, or +9.4%),
life insurance (€335 billion, or +3.2%) and wealth management
(IWM and LCL €197 billion, or +6.3%).
The SFS division also recorded a good level of
activity, with an increase in consumer finance outstandings at
CA Consumer Finance (+8.4% compared to the end of March
2023), driven by automotive activities, which account for 53%2 of
total outstandings, and growth in production and leasing
outstandings at CAL&F (€19.4 billion, or +9.1% compared to
the end of March 2023).
Momentum is strong in Large Customers, with high
revenues in capital markets and investment banking driven by
primary credit and by financing activities that are benefiting from
growth in commercial banking. CACEIS posted a record level of
assets under custody (€5,015 billion, +19.4% compared to the
end of March 2023) and assets under administration
(€3,415 billion, +54.1% compared to the end of March 2023),
and benefited from the integration of ISB, positive market impacts
and strong commercial momentum.
Each of the Group’s business lines posted strong
levels of activity (see Infra).
Increased support for the energy transition
The Group has defined a transition plan based on
three complementary and ordered areas.
First, the Group has made efforts to ramp up the
roll-out of renewable and low-carbon energy, by focusing our
financing on renewable and low-carbon energy projects As such, the
Crédit Agricole Group increased its exposure to
low-carbon energy financing3 by +80% between 2020 and 2023, with
€19.7 billion at 31 December 2023. In addition, CAA’s
financing of renewable energy capacity increased by +14% in 2023,
representing 13.5 gigawatts at 31 December 2023.
At the same time, as a universal bank,
Crédit Agricole is supporting the transition of all its
customers. As such, Crédit Agricole CIB’s green loans
portfolio4 increased by +43% between December 2022 and March 2024,
and represented €17.7 billion at 31 March 2024. Electrified
vehicles 5 accounted for a quarter of the total number of
vehicles financed by CA Consumer Finance in 2023, and
solutions are being offered to customers (J’écorénove mon logement,
Agilauto, Carbioz carbon credit platform).
Finally, Crédit Agricole is structuring its
own exit trajectory from the financing of carbon-based energy. The
Net Zero trajectories at the end of 2023 are in line with the 2030
targets for the five sectors whose trajectories 6 were
announced in 2022. Emissions financed in the oil and gas sector are
down by -63% against a target of -75% 7. The intensity of
emissions financed in the power sector 8 is down -17% (target
-58%), while in the automotive sector it is down -13% (target
-50%), in the commercial real estate sector it is down -5% (target
-40%), and in the cement sector it is up +3% (target -20%). In this
small portfolio (fewer than 10 customers), the exit of some
relatively less carbon-intensive customers has led to an inevitable
increase in the intensity of the portfolio, which does not reflect
the reality of the sector or of our actions.
The Group is also committed to ceasing all
financing of new fossil fuel extraction projects. The total amount
of its direct exposure 9 to the financing of fossil fuel
extraction projects to which it is still committed stood at
$1,060 million at the end of December 2023, down -23% since
2020.
Group results
In the first quarter of
2024, the Crédit Agricole Group’s stated
net income Group share came to
€2,384 million, up +42.8% compared to the
first quarter of 2023 (+6.1% excluding SRF).
Specific items in the
first quarter of 2023 had a negative net
impact of +€1 million on the
Crédit Agricole Group’s net income Group
share. These include the following recurring accounting
items: recurring accounting volatility items in revenues, such as
the DVA (Debt Valuation Adjustment), the issuer spread portion of
the FVA, and secured lending for +€4 million in net income
Group share on capital markets and investment banking, and the
hedging of the loan book in the Large Customers segment for
+€1 million in net income Group share. In addition to these
recurring items, there were a number of items specific to this
quarter: a reversal of the Home Purchase Saving Plans provisions
for +€30 million in the net income Group share of the Regional
Banks and +€1 million in the net income Group share of the
Corporate Centre; ISB integration costs of -€10 million in the
net income Group share of the Large Customers division; an addition
of provision for risk Ukraine for -€20 million in the net
income Group share of International Retail Banking; the acquisition
costs of Degroof Petercam for -€6 million in the net income
Group share of private banking.
Excluding these specific items, the
Crédit Agricole Group’s underlying
net income Group share10 amounted to
€2,383 million, up +40.8% compared to the
first quarter of 2023, and up +5.0% excluding SRF.
Crédit Agricole Group – Stated and Underlying results Q1-2024
and Q1-2023
|
€m |
Q1-24stated |
Specific items |
Q1-24underlying |
Q1-23stated |
Specific items |
Q1-23underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
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Revenues |
9,525 |
50 |
9,475 |
8,927 |
(32) |
8,959 |
+6.7% |
+5.8% |
| Operating
expenses excl.SRF |
(5,589) |
(20) |
(5,569) |
(5,284) |
- |
(5,284) |
+5.8% |
+5.4% |
| SRF |
- |
- |
- |
(626) |
- |
(626) |
(100.0%) |
(100.0%) |
| Gross
operating income |
3,936 |
30 |
3,906 |
3,018 |
(32) |
3,049 |
+30.4% |
+28.1% |
| Cost of
risk |
(651) |
(20) |
(631) |
(548) |
- |
(548) |
+18.9% |
+15.2% |
| Cost of legal
risk |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
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Equity-accounted entities |
68 |
- |
68 |
108 |
- |
108 |
(36.7%) |
(36.7%) |
| Net income on
other assets |
(7) |
(8) |
2 |
4 |
- |
4 |
n.m. |
(63.2%) |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
3,347 |
2 |
3,345 |
2,581 |
(32) |
2,613 |
+29.6% |
+28.0% |
| Tax |
(755) |
(6) |
(749) |
(711) |
8 |
(719) |
+6.2% |
+4.2% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
2 |
- |
2 |
(100.0%) |
(100.0%) |
| Net
income |
2,592 |
(4) |
2,595 |
1,872 |
(24) |
1,896 |
+38.4% |
+36.9% |
| Non
controlling interests |
(208) |
5 |
(212) |
(204) |
- |
(204) |
+2.1% |
+4.3% |
| Net
income Group Share |
2,384 |
1 |
2,383 |
1,669 |
(24) |
1,692 |
+42.8% |
+40.8% |
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Cost/Income ratio excl.SRF (%) |
58.7% |
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58.8% |
59.2% |
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59.0% |
-0.5 pp |
-0.2 pp |
In the first quarter of 2024, underlying
revenues amounted to €9,475 million, up +5.8%
compared to the first quarter of 2023, driven by the good
performance of all business lines. Revenue growth was positive in
all the core businesses, with dynamic activity and a positive
market effect in Asset Gathering, a record level of corporate and
investment banking in the Large Customers division and the
integration of ISB into CACEIS 11 generating the initial
synergies, the consolidation of CA Auto Bank 12 into
Specialised Financial Services, momentum in fee and commission
income and international growth in the net interest margin in
Retail Banking, and the positive effect of the valuation of Banco
BPM securities in the Corporate Centre. Underlying
operating expenses rose by +5.4% (excluding SRF) in the
first quarter of 2024, to €5,569 million, due in particular to
the scope effects of the integration of RBC IS Europe 13 and
CA Auto Bank 14, in addition to increases in
employee expenses in an inflationary environment and IT
investments. Overall, the Group saw its underlying
cost/income ratio improve by -0.2 percentage point
(excluding SRF) to 58.8% in the first quarter of 2024. The
contribution to the SRF in the first quarter of 2023 was
-€626 million. Underlying gross operating
income amounted to €3,906 million, an increase of
+28.1% compared to the first quarter of 2023, or +6.3% adjusted for
the SRF expense.
The underlying cost of credit
risk amounted to -€631 million, including a reversal
of +58 million on performing loans (levels 1 and 2), an
addition of -€690 million for the cost of proven risk (level
3) and -€1 million for the reversal of other risks, i.e. an
increase of +15.2% compared to the first quarter. The provisioning
levels were determined by taking into account several weighted
economic scenarios, as in previous quarters, and by applying
adjustments on sensitive portfolios. The economic scenarios for the
first quarter of 2024 are identical to those used for the previous
quarter. The
cost of risk/outstandings 15
over a rolling four-quarter period stood at
25 basis points, which is in line with the 25-basis point
assumption of the Medium-Term Plan. It stands at
21 basis points on a quarterly annualised basis 16.
Underlying pre-tax income stood at
€3,345 million, a year-on-year increase of +28.0%. It
included the contribution from equity-accounted entities for
€68 million (down -36.7%, mainly due to the removal from the
scope of equity-accounted entities of FCA Bank, which is now fully
consolidated) and net income from other assets, which came to
€2 million this quarter. The underlying tax
charge rose by +4.2% over the period,
with the tax rate this quarter at 22.9%, a decline of
-5.8 percentage points. The fall in the tax rate is explained
by the disappearance of the SRF expense this quarter, which was not
deductible. Underlying net income before non-controlling interests
was up +36.9% to €2,595 million. Non-controlling interests
rose +4.3%. Lastly, underlying
net income Group share was €2,383 million,
+40.8% higher than in the first quarter of 2023.
Regional banks
Gross customer capture stands
at +306,000 new customers and the customer base
grew by +29,000 new customers since the beginning of the
year. The percentage of customers using their current
accounts as their main account rose by 0.5 percentage
point year-on-year to 76.3%. The share of customers using
digital tools increased to 76.8% 17
(+1.9 percentage points compared to end-March 2023) and the
number of online signatures 18 increased by +15% between the
first quarter of 2023 and the first quarter of 2024.
Loan production fell this
quarter by -32.4% compared to first quarter 2023. The decline is
sharp in home loans (-44.6% compared to the first quarter of 2023),
but comes against the backdrop of a slowdown in the market 19.
The lending rate for home loans 20 stood at 3.85% for the
January/February period, 20 basis points higher than in the
fourth quarter of 2023. Loan outstandings reached
€644 billion at the end of March 2024, up +1.1% compared to
the end of March 2023 driven in particular by the corporate market
(+4.2% compared to the end of March 2023).
Total customer assets rose by
+3.7% year-on-year to €893.1 billion at end-March 2024. This
growth was driven by both on-balance sheet deposits, which reached
€595.5 billion at the end of March 2024, up +3.3% compared to
the end of March 2023 (including +4.5% on passbook accounts and
+80.4% on term deposits), and off-balance sheet deposits, which
reached €297.6 billion, up +4.6% year-on-year.
The equipment rate for property and
casualty insurance was 43.4% at the end of March 2024 and
is continuing to rise (up +0.5 percentage point compared to
2023). In terms of payment instruments, the number
of cards rose by +1.5% year-on-year, as did the percentage of
premium cards, which increased by +1.4 percentage points
year-on-year to account for 15.2% of all cards.
In the first quarter of 2024,
the Regional Banks’ consolidated revenues including the SAS
Rue La Boétie dividend 21 stood at
€3,295 million, down -1.0% compared to the first quarter of
2023, due to a -17.6% decline in the net interest margin. Portfolio
revenues were up, as was fee and commission income, which rose by
+7.6%, particularly on payment instruments. The Regional Banks’
consolidated revenues, including the SAS Rue La Boétie dividend,
rose by +2.2% compared to the fourth quarter of 2023.
Operating expenses fell by
-2.8%; excluding the SRF 22, the moderate increase was due to
higher employee expenses and IT expenses. Gross operating
income rose by +5.0%, but fell by -8.2% excluding the SRF.
The cost of risk increased by +46.3%, compared to
the first quarter of 2023, to -€247 million. This increase in
the default rate is mainly due to the impact of corporate specific
files.
The Regional Banks’ consolidated net
income, including the SAS Rue La Boétie dividend 23,
amounted to €439 million in the first quarter of 2023, stable
compared to the first quarter of 2023.
The Regional Banks’ contribution to net
income Group share was €442 million in the first
quarter of 2024, up +5.1% compared to the first quarter of
2023.
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of
Directors, chaired by Dominique Lefebvre, met on 2 May 2024 to
examine the financial statements for the first quarter of 2024.
Crédit Agricole S.A. – Stated and Underlying results, Q1-2024
and Q1-2023
| €m |
Q1-24stated |
Specific items |
Q1-24underlying |
Q1-23stated |
Specific items |
Q1-23underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
| |
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Revenues |
6,806 |
9 |
6,797 |
6,121 |
(32) |
6,153 |
+11.2% |
+10.5% |
| Operating
expenses excl.SRF |
(3,669) |
(20) |
(3,649) |
(3,328) |
- |
(3,328) |
+10.2% |
+9.6% |
| SRF |
- |
- |
- |
(513) |
- |
(513) |
(100.0%) |
(100.0%) |
| Gross
operating income |
3,137 |
(11) |
3,148 |
2,280 |
(32) |
2,312 |
+37.6% |
+36.1% |
| Cost of
risk |
(400) |
(20) |
(380) |
(374) |
- |
(374) |
+6.9% |
+1.6% |
|
Equity-accounted entities |
43 |
- |
43 |
86 |
- |
86 |
(50.4%) |
(50.4%) |
| Net income on
other assets |
(6) |
(8) |
2 |
4 |
- |
4 |
n.m. |
(58.5%) |
| Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
2,773 |
(39) |
2,812 |
1,996 |
(32) |
2,028 |
+38.9% |
+38.7% |
| Tax |
(610) |
5 |
(615) |
(521) |
8 |
(530) |
+17.1% |
+16.2% |
| Net income from
discont'd or held-for-sale ope. |
- |
- |
- |
2 |
- |
2 |
n.m. |
n.m. |
| Net
income |
2,163 |
(34) |
2,197 |
1,476 |
(24) |
1,500 |
+46.5% |
+46.5% |
| Non controlling
interests |
(259) |
5 |
(264) |
(250) |
1 |
(251) |
+3.7% |
+5.3% |
| Net
income Group Share |
1,903 |
(30) |
1,933 |
1,226 |
(23) |
1,249 |
+55.2% |
+54.7% |
|
Earnings per share (€) |
0.50 |
(0.01) |
0.51 |
0.36 |
(0.01) |
0.37 |
+40.2% |
+40.0% |
|
Cost/Income ratio excl. SRF (%) |
53.9% |
|
53.7% |
54.4% |
|
54.1% |
-0.5 pp |
-0.4 pp |
In the first quarter of
2024, Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,903 million, an increase of +55.2% from
the first quarter of 2023.
Specific items for this quarter
had a cumulative impact of -€30 million on net income Group
share, and included the following recurring accounting items:
recurring accounting volatility items in revenues, such as the DVA
(Debt Valuation Adjustment), the issuer spread portion of the FVA,
and secured lending for +€4 million in net income Group share
in Large Customers, and the hedging of the loan book in Large
Customers for +€1 million in net income Group share. In
addition to these recurring items, there were a number of items
specific to this quarter: a reversal of the Home Purchase Saving
Plans provisions for +€1 million in the net income Group share
of LCL; ISB integration costs of -€10 million in the net
income Group share of the Large Customers division; a further an
addition of provision for risk Ukraine for -€20 million in the
net income Group share of International Retail Banking; the
acquisition costs of Degroof Petercam for -€6 million in the
net income Group share of private banking.
Excluding specific items,
underlying net income Group share 24
stood at €1,933 million in the first quarter
of 2024, a +54.7% rise over the first quarter of 2023.
In the first quarter of 2024, underlying
revenues reached €6,797 million, up sharply by +10.5%
compared to the first quarter of 2023. This growth was driven by
all the business lines: Asset Gathering benefited from dynamic
activity and a positive market effect; Large Customers saw a record
level of revenues from corporate and investment banking, in
addition to the integration of ISB 25 into CACEIS and the
generation of the first synergies; Specialised Financial Services
benefited from the consolidation of CA Auto Bank 26; Retail
Banking in France was driven by momentum in fee and commission
income; and finally International Retail Banking was driven by the
growth in net interest margin. The Corporate Centre division
recorded an increase in revenues, mainly due to the valuation of
Banco BPM securities.
Underlying operating expenses
totalled €3,649 million in the first quarter of 2024, an
increase of +9.6% excluding SRF compared to the first quarter of
2023. The jaws effect excluding SRF was positive by
+0,8 percentage point. The +€321 million year-on-year
increase in expenses was mainly due to a +€173 million scope
effect 27, a +€92 million increase in employee expenses
against a backdrop of inflation, and +€47 million in IT
investments. Excluding the scope effect, underlying expenses
increased by +4.4% (excluding SRF).
The underlying cost/income
ratio in the first quarter of 2024 thus stood at 53.7%, an
improvement of -0.4 percentage point (excluding SRF)
compared to the first quarter of 2023.
Underlying gross operating
income in the first quarter of 2024 stood at
€3,148 million, a sharp increase of +36.1% compared to the
first quarter of 2023. The SRF expense recognised in the first
quarter of 2023 amounted to -€513 million. Thus, restated for
SRF, underlying gross operating income increased by +11,4%.
As at 31 March 2024, risk indicators confirm
the high quality of Crédit Agricole S.A.’s assets
and risk coverage level. The diversified loan book is
mainly geared towards home loans (26% of gross outstandings) and
corporates (42% of Crédit Agricole S.A. gross
outstandings). The Non Performing Loans ratio remained stable and
low at 2.6%. The coverage ratio 28 was high at 69.7%, down
-1.1 percentage points over the quarter. Loan loss
reserves amounted to €9.6 billion for
Crédit Agricole S.A., relatively unchanged from the end
of December 2023. Of those loan loss reserves, 35% were for
performing loans (percentage in line with previous quarters).
The underlying cost of risk
shows a net addition of -€380 million, i.e. a slight increase
of 1.6% compared to the first quarter of 2023, when it stood at
-€374 million. In the first quarter of 2024, the net expense
of -€380 million consisted of the slight reversal for
performing loans (Stages 1 and 2) for +€8 million (versus a
provision of -€75 million in the first quarter of 2023), the
provisioning for proven risks (Stage 3) for
-€384 million (versus -€284 million in the first
quarter of 2023), and -€5 million provision in other items. By
business line, 58% of net provision for the quarter came from
Specialised Financial Services (compared to 42% in the first
quarter of 2023), 31% from LCL (compared to 18% in the first
quarter of 2023) and 16% from International Retail Banking
(compared to 30% in the first quarter of 2023). The provisioning
levels were determined by taking into account several weighted
economic scenarios, as in previous quarters, and by applying
adjustments on sensitive portfolios. The economic scenarios for the
first quarter of 2024 are identical to those used for the previous
quarter. In first quarter 2024, the cost of risk/outstandings over
a rolling four-quarter basis29 was 33 basis points, and was
29 basis points on an annualised quarterly basis30.
The underlying contribution of the
equity-accounted entities stood at
€43 million in the first quarter of 2024, down -50.4%
from the first quarter of 2023, in line with the removal of
equity-accounted entities from FCA Bank. Net income from
other assets came in at €2 million in the first
quarter of 2024.
Underlying
income 31
before tax, discontinued operations and
non-controlling interests was up +38.7% to €2,812 million. The
underlying effective tax rate stood at 22.2%, down
-5.1 percentage points compared to the first quarter of 2023,
reflecting the disappearance of the SRF in the first quarter of
2024, an expense that was not tax deductible. The underlying tax
charge stood at -€615 million, a +16.2% increase.
Underlying net income before non-controlling
interests was therefore up +46.5% to €2,197 million.
Non-controlling interests amounted to
-€264 million in the first quarter of 2023, up +5.3%.
Underlying
net income Group share stood at
€1,933 million, up by +54.7% compared to the first quarter of
2023. Adjusted for SRF, underlying net income Group
share increased +13.5% year-on-year.
Underlying earnings per share
in first quarter 2024 reached €0.51,
increasing by +40.0% compared to first quarter 2023.
Underlying RoTE 32, which
is calculated on the basis of an annualised Underlying Net Income
Group Share 33 and IFRIC charges linearised over the year, net
of annualised Additional Tier 1 coupons (return on equity
Group share excluding intangibles) and net of foreign exchange
impact on reimbursed AT1, and restated for certain volatile items
recognised in equity (including unrealised gains and/or losses),
reached 16.3% in first quarter 2024, up by
+1.9 percentage point compared to the first quarter 2023.
Following Q1 2024 results, Crédit Agricole S.A.
discloses a 2024 earnings outlook one year ahead of the Medium-Term
Ambitions 2025 Plan, with underlying net income Group
share exceeding €6 billion in 2024.
This earnings outlook is based in particular on
the continuation of the good business momentum (customer capture,
increase in equipment rates, off-balance sheet deposits) resulting
in a rise in fees and commissions and in insurance revenues. The
integration of recent acquisitions are sources of additional income
and complementary synergies in the Asset Servicing (integration of
RBC's European activities with CACEIS Investor Services Bank
(ISB)), Wealth Management (continued work on the acquisition of
Degroof Petercam), and Asset Management (the completion of the
acquisition of Alpha Associates by Amundi on April 2, 2024). The
shift to the mobility business is a strategic turn for the
Specialized financial services division. In Large Customers
division, Corporate & Investment Banking thus confirms its
leading position in syndicated loans and its good position in bond
issues. Finally, structural operating efficiency with a low
cost/income ratio and a healthy balance sheet should support this
earnings outlook.
The trajectory also takes into account headwinds
such as the continued pressure on margins for retail banking in
France and for consumer credit business, the cap on the net
interest margin at CA Italia as well as 2024 integration costs on
ongoing acquisitions (Degroof Petercam ~ 50 million euros, ISB:
€80-100 million euros).
Analysis of the activity and the results of
Crédit Agricole S.A.’s divisions and business
lines
Activity of the Asset Gathering division
In the first quarter of 2024, assets under
management in the Asset Gathering (AG) division stood at
€2,648 billion 34, up +3.6% compared to the end of
December 2023 thanks to a positive market effect, as well as net
inflows of +€19.2 billion, positive in the three business
lines of Asset Management, Insurance and Wealth Management. Over
one year, assets under management rose by +8.4%.
Insurance activity
(Crédit Agricole Assurances) reached a record
level in the first quarter of 2024, with total premium income of
€12.3 billion at the end of March, up +5.2% compared to March
2023 with growth in all three segments: savings/retirement,
property and casualty, and death & disability/creditor/group
insurance.
In Savings and Retirement,
gross inflows reached a record €8.6 billion, up +4.3%
year-on-year. This was driven by the recovery in business in Italy
and Luxembourg, in addition to the deposit bonus campaigns launched
during the first quarter, which boosted gross euro inflows. The
unit-linked rate accounted for 39.1% of gross inflows, down
-6.7 percentage points compared to the first quarter of 2023.
This decline is linked to the recovery in gross euro inflows and
less favourable market conditions for unit-linked products, in
particular the reduced attractiveness of unit-linked fixed income
products. Net inflows improved strongly to reach +€1.0 billion
this quarter, mainly due to lower outflows on the General Account.
Net inflows amounted to +€1.5 billion on unit-linked products and
-€0.5 billion in General Account. Life insurance assets
under management (savings, retirement and funeral
insurance) reach a total of €334.9 billion
(+€10.3 billion, or +3.2% year on year) and over the quarter
(+€4.5 billion, +1.4% compared to the end of December 2023).
Life insurance assets under management were driven by a positive
market effect in addition to net inflows. Unit-linked contracts
reach a record level of 29.5% of assets under management, up
+2.3 percentage points over one year and +0.6 percentage
point compared to the end of December 2023.
In property and casualty
insurance, the activity was dynamic, with premium income
of €2.4 billion in the first quarter of 2024, up +7.9%
compared to the first quarter of 2023. This growth was driven by
volume and price effects. Indeed, at the end of March 2024, the
portfolio stood at 16.0 million 35 contracts, up +3.4%
year-on-year. At the same time, the average premium is up,
benefiting from rate revisions in addition to changes in the
product mix. Lastly, the combined ratio stood at 93.8%36, a
slight improvement of -0.9 percentage point year-on-year,
thanks to a favourable impact of discounting, as the
weather-related claims remained stable.
In death & disability/creditor
insurance/group insurance, premium income for the first
quarter of 2024 stood at €1.3 billion, up +6.0% compared to
the first quarter of 2023. Creditor insurance revenue remained
resilient (-0.1%) despite the decline in new business (due to lower
loan production). Individual death and disability insurance and
group insurance posted strong increases, with +15.2% and +21.8%
respectively compared to the first quarter of 2023.
Asset management (Amundi)
posted a very good level of inflows in the first quarter of 2024.
Inflows were high, at +€16.6 billion, and balanced by customer
segment 37, management type 38 and geography. Amundi sets
itself apart from the European asset management market with its
inflows in active management.
Assets under management reached
a high of €2,116 billion at end-March 2024, up +3.9% compared
to 31 December 2023, and +9.4% year-on-year. This figure includes a
positive market and forex effect of +€63.0 billion.
Retail inflows
(+€6.5 billion in the first quarter of 2024) were boosted by
the excellent performance of third-party distributors
(+€7.0 billion), driven by passive and money market
management, with continued inflows from the French networks
(+€1.5 billion) thanks to treasury products, offsetting
outflows from international networks (in particular in Italy).
The Institutional segment
recorded inflows of +€5.6 billion in the first quarter of
2024. Inflows were driven by cash products (+€3.9 billion),
and medium- and long-term assets (+€1.7 billion) despite
seasonal outflows in employee saving schemes and continued
withdrawals from euro-denominated contracts.
Lastly, JVs recorded inflows of
+€4.5 billion. Inflows were positive in all countries, driven
by strong growth in India and Korea. Inflows were at break-even
point in China.
Lastly, two value-creating transactions took
place during the quarter, with the completion of the acquisition of
Alpha Associates on 2 April and the signing of a strategic
partnership memorandum of understanding39 with Victory Capital in
the United States on 15 April 2024. Alpha Associates will be
integrated from the second quarter onwards, with assets totalling
€9 billion at end-March 2024. This transaction further
strengthens Amundi’s expertise and creates a European leader in
private asset multi-management. In addition, the memorandum of
understanding signed with Victory Capital aims to merge Amundi’s
activities in the United States with the US asset manager, in
exchange for Amundi acquiring a 26.1% stake in Victory Capital and
reciprocal 15-year international distribution agreements. The
merger of Amundi US and Victory Capital would create a larger US
investment platform to serve the customers of both companies. As a
result, Amundi would have a broader range of US and global
investment expertise to offer its customers, while Victory Capital
would expand its ability to distribute its products outside the
US.
In Wealth Management, total
assets under management (CA Indosuez Wealth Management and LCL
Private Banking) amounted to €197 billion at end-March 2024
(of which €133.2 billion40 for Indosuez Wealth Management), up
on end-December 2023 (+€6.7 billion, +3.5%), including a
positive market effect of +€5.1 billion, (of which
+€4.1 billion for Indosuez Wealth Management) and positive net
inflows of +€1.6 billion (of which +€1.4 billion for
Indosuez Wealth Management, with structured products continuing to
be popular with customers).
Results of the Asset Gathering division
In the first quarter of 2024, AG generated
revenues of €1,789 million, up +2.5% compared
to the first quarter of 2023. The increase is explained by good
revenue performance in all three business lines: asset management,
insurance and wealth management. Expenses rose by
+5.5% (excluding SRF) to -€754 million. Thus, the
cost/income ratio stood at 42.1%, up
+1.2 percentage points (excluding SRF) compared to the
first quarter of 2023. The cost of the contribution to the SRF
amounted to -€6 million in the first quarter of 2023. Gross
operating income stood at €1,035 million, up +1.0% compared to
the first quarter of 2023, and up +0.4% excluding SRF over the same
period. Taxes stood at €220 million, down -4.5%. The
net income Group share of AG stood at
€716 million, up +2.6% compared to the first quarter of 2023.
The rise in income from insurance (+4.1%) and asset management
(+5.7%) offset the decline in income from wealth management
(-16.2%).
In the first quarter of 2024, the Asset
Gathering division contributed by 35% to the underlying net income
Group share of the Crédit Agricole S.A. core businesses
(excluding Corporate Centre division) and 26% to underlying
revenues excluding the Corporate Centre division.
As at 31 March 2024, capital allocated to the
division amounted to €12.7 billion, including
€10.8 billion for Insurance, €1.3 billion for Asset
management, and €0.6 billion for Wealth management. The
division’s risk weighted assets amounted to €55.8 billion,
including €35.3 billion for Insurance, €14.2 billion for
Asset management and €6.3 billion for Wealth management.
The underlying
RoNE (return on normalised equity) stood at 26.7%
for the first quarter of 2024.
Insurance results
In the first quarter of 2024, insurance
revenues amounted to €722 million, up +1.5%
compared to the first quarter of 2023. This includes
€505 million from savings/retirement41, €131 million from
personal protection 42 and €113 million from property and
casualty insurance43. The increase in allocation of CSM (linked to
the rise in outstandings and strong business momentum) and the
prior year release in personal protection were partially offset by
the fall in financial income44. CSM stood at €23.9 billion, up
slightly from 31 December 2023 (+0.2%), benefiting from the
contribution of new business in a favourable market
environment.
Gross operating income stood at
€631 million, stable (+0.2%) compared to the first quarter of
2023, with an increase in non-attributable expenses due to the
creation of the Insurers’ guarantee fund in Italy (set up in 2024).
The cost/income ratio was 12.7%, up +1.2 percentage points,
below the target ceiling of 15% set by the Medium-Term Plan. The
tax charge came to -€123 million, down -10.8% compared to the
first quarter of 2023, thanks to a favourable tax effect. As a
result, the net income Group share was
€494 million, up +4.1% compared to the first quarter of
2023.
Insurance contributed by 24% to the underlying
net income Group share of the Crédit Agricole S.A. core
businesses (excluding the Corporate Centre division) at
end-March 2024 and by 10% to their underlying revenues.
Asset management results
In the first quarter of 2024,
revenues amounted to €804 million. They rose
by +3.9% compared to the first quarter of 2023, driven by
management fee and commission income (+4.0%) despite an
unfavourable product mix on inflows. Technology revenues and net
financial income were up by +36% and +43% compared to the first
quarter of 2023, offsetting the decrease in performance fee and
commission income (€18 million). Operating
expenses stood at -€449 million, up +4.3%
excluding SRF, reflecting accelerated investment in the development
of Amundi Technology. As a result, the cost/income
ratio was stable year-on-year at 55.8%
(+0.2 percentage points excluding SRF). SRF expenses stood at
-€3 million in the first quarter of 2023. Gross
operating income increased by +4.5% compared to the first
quarter of 2023, and by +3.5% excluding SRF. The contribution from
equity-accounted entities, comprising the contribution from the
Amundi joint ventures, stood at €29 million, up +30.4% from
the first quarter of 2023, driven in particular by the strong
growth of contribution from SBI MF in India. The tax charge worked
out at -€88 million, up +6.5%. Overall, net income
Group share totalled €197 million, up +5.7% compared
to the first quarter of 2023.
Asset management contributed 10% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end-March 2024 and by 12%
to their underlying revenues.
At 31 March 2024, capital allocated to Asset
Management amounted to €1.3 billion, while risk weighted
assets totalled €14.2 billion.
Wealth management
results 45
Revenues of Wealth Management
stood at €264 million in the first quarter of 2024, up +1.1%
compared to the first quarter of 2023. This was the best quarter in
terms of revenue for Wealth Management, buoyed by strong
performances from management and transaction fee and commission
income. Expenses stood at €214 million, up
+5.6% (excluding SRF) compared to the first quarter of 2023, mainly
due to increases in staff costs, part of which are non-recurring.
Moreover, excluding the foreign exchange impact, operating expenses
rose by +3.9%. As a result, the cost/income ratio
stands at 81.2 % in the first quarter 2024, increasing by
+3.4 percentage points (excluding SRF) as compared to the
first quarter 2023. SRF expenses stood at €3 million in the
first quarter of 2023. Gross operating income stood at
€50 million, down -10.2% compared to the first quarter of
2023, and down -14,4% excluding SRF over the same period. Net
income on other assets stood at -€8 million in the first
quarter of 2024, corresponding to the Degroof Petercam acquisition
costs, restated as specific items. Net income Group
share amounted to €25 million, down -31.9% compared
to the first quarter of 2023.
Wealth management contributed 1% of
Crédit Agricole S.A.’s business lines underlying net
income Group share. (excluding the Corporate Centre division)
at end-March 2024 and by 4% to their underlying revenues.
At 31 March 2024, capital allocated to Wealth
management was €0.6 billion and risk weighted assets totalled
€6.3 billion.
The Degroof Petercam acquisition is expected to
close in mid-2024. This acquisition is expected to generate
additional net income Group share after synergies of around +€150
million to +€200 million in 2028. In 2024, acquisition-related
and integration costs are expected to total €-50 million
gross, with €-8.0 million recognised in the first quarter of
2024.
Activity of the Large Customers division
Corporate and Investment banking
(CIB) as a whole posted a record performance for the first
quarter of 2024. Asset servicing also recorded
strong business during the period.
CIB first-quarter underlying revenues rose
sharply to €1,751 million, an increase of +1.6% from the first
quarter of 2023. This growth was driven by a good performance in
financing activities, with revenues up +6.3% compared to the first
quarter of 2023 at €832 million. This was mainly due to the
strong performance of commercial banking (+10.1% compared to the
first quarter of 2023), driven by International Trade &
Transaction Banking activities (particularly cash management) and
by the development of Corporate Leveraged Finance activities. In
addition, the structured financing activities remained stable
compared to the first quarter of 2023.
Capital markets and investment banking revenues
totalled €919 million, down -2.3% compared to a high first
quarter 2023: good performance by FICC (-3.0%), whose market share
is growing, driven by Primary Credit and Securitisation activities.
Investment banking business held steady, with underlying revenues
up +1.4%, driven by Structured Equities.
Financing activities thus confirmed its leading
position in syndicated loans (#2 in France 46 and #2 in
EMEA46). Crédit Agricole CIB reaffirmed its strong
position in bond issues (#4 All bonds in EUR
Worldwide46) and was ranked #5 in Green, Social & Sustainable
bonds in EUR 47. Average regulatory VaR stood at
€11.5 million in the first quarter of 2024, down from
€13.2 million in the fourth quarter of 2023, reflecting
changes in positions and financial markets. It remained at a level
that reflected prudent risk management.
In addition, in 2024, the integration of RBC
Investor Services, now CACEIS Investor Services Bank (ISB), into
asset servicing (CACEIS) is set to continue, in
particular through the effective merger of the legal entities
scheduled for the second quarter of 2024 and the migration of the
customer portfolio before the end of the year. ISB integration
costs of around €80 million to €100 million will be
recognised during the year, of which €20 million in the first
quarter of 2024.
In the first quarter of 2024, solid customer
business and a rally in the markets led to strong growth in assets
over the quarter and the year. Assets under
custody were therefore up +6.3% at end-March 2024 compared
to end-December 2023 and up +19.4% compared to end-March 2023, to
€5,015 billion, of which €270 billion represented ISB
assets. Assets under administration were up +3.5%
over the quarter and +54.1% year-on-year, reaching
€3,415 billion at end-March 2024, including €983 billion
contributed by ISB.
Results of the Large Customers division
In the first quarter of 2024,
stated revenues of the Large Customers division
reached a record level of €2,266 million, up +10.5% compared
to the first quarter of 2023, buoyed by an excellent performance in
the corporate and investment banking activities and asset servicing
business lines. The division’s specific items this quarter had an
impact of +€7 million on financing activities and comprised
the DVA (the issuer spread portion of the FVA, and secured lending)
amounting to +€5 million, and loan book hedging totalling
+€2 million. Operating expenses were up
compared to the first quarter of 2023 (+15.7% excluding SRF) due,
on the one hand, to variable compensation and IT investments to
support development and, on the other hand, to the ISB scope effect
(-€103 million). In addition, ISB integration costs of
-€20 million were recognised, restated as specific items. As a
result, the division’s gross operating income rose
sharply, by +57.2% compared to the first quarter of 2023, to
€969 million (+4.2% excluding SRF, which represented
€314 million in the first quarter of 2023). The business line
recorded an overall net reversal in the cost of risk of
+€33 million in the first quarter of 2024, compared to an
addition of -€36 million in the first quarter of 2023. Stated
pre-tax income totalled €1,006 million, a substantial rise
during the period (+70.8%). The tax charge was -€235 million.
Lastly, stated net income Group share reached
€722 million in the first quarter of 2024, compared with
stated income of €376 million in first quarter 2023.
Underlying net income Group share came to €727 million in the
first quarter of 2023, versus €399 million in the first
quarter of 2023.
The business line contributed 36% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end-March 2024 and 33% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2024, the capital
allocated to the business line was €13.3 billion and
its risk weighted assets were
€139.6 billion.
Underlying RoNE (Return on
Normalised Equity) stood at 22.2% at end-March 2024.
Corporate and Investment banking
results
In the first quarter of 2024,
corporate and investment banking stated revenues
reached a record €1,758 million, up +4.0% from the first
quarter of 2023, driven by favourable results in all its business
lines. The Corporate and Investment banking division’s specific
items this quarter had an impact of +€7 million and comprised
the DVA (the issuer spread portion of the FVA, and secured lending)
amounting to +€5 million, and loan book hedging totalling
+€2 million. Operating expenses rose by +4.4%
(excluding SRF) to -€923 million, mainly due to variable
compensation linked to the buoyant level of business and IT
investments. Gross operating income rose sharply
by +55.4% compared to the first quarter of 2023, to a high level of
€835 million (+3.5% excluding SRF, which stood at
€270 million in the first quarter of 2023). The cost/income
ratio was 52.5%, up +0.2 percentage point (excluding SRF) over
the period. The cost of risk recorded a net
reversal of €37 million (compared with an addition of
-€36 million in the first quarter of 2023), impacted by a
reversal of €56 million linked to synthetic securitisations.
Lastly, pre-tax income in the first quarter of
2024 stood at €872 million, versus €502 million for the
first quarter of 2023. The tax charge stood at -€205 million.
Lastly, stated net income Group share rose sharply
by +96.0% to €651 million in the first quarter of 2024.
Risk weighted assets at end-March
2024 were up by +€1.6 billion compared to
end-December 2023, at €126.5 billion. This change was mainly
due to unfavourable foreign exchange impacts and ratings.
Asset servicing results
In the first quarter of 2024,
revenues from asset servicing rose by +41.1%
compared to the first quarter of 2023 to €508 million,
including a scope effect of €108 million linked to the
consolidation of ISB. This rise was driven by a good performance in
fee and commission income, boosted by the increase in assets, and
by the favourable trend in the net interest margin.
Operating expenses rose by +58.0% (excluding SRF)
to -€375 million, including the ISB scope effect of
-€103 million and ISB integration costs of -€20 million
restated as a specific item. Gross operating
income rose sharply to €134 million (+69.1%) in the
first quarter of 2024 (+8.7% excluding SRF, which stood at
-€44 million in the first quarter of 2023). The
cost/income ratio excluding ISB integration costs
was 69.8%, up 4.8 points (excluding SRF) compared to the first
quarter of 2023. The quarter also recorded €4 million in
income from equity-accounted entities. Net income
thus totalled €105 million, up +60.5% compared to the first
quarter of 2023. After the €34 million share of
non-controlling interests, the business line’s contribution to
net income Group share totalled €71 million
in the first quarter of 2024, up +60.5% year-on-year.
Specialised financial services activity
Crédit Agricole Consumer Finance’s
(CA Consumer Finance) commercial
production totalled €12 billion in the first quarter
2024, stable since the third quarter 2023, and down -9.7% compared
to the first quarter 2023, impacted by the decline at GAC Sofinco
in China. The share of automotive financing48 in quarterly new
business production remained high at 52%, and the average customer
rate for production rose by +23 basis points compared to the
fourth quarter of 2023. As a result,
CA Consumer Finance’s assets under
management stood at €114.4 billion at end-March 2024,
up +8.4% compared to end-March 2023, driven by the increase in
automotive entities (+13.1%)49. Lastly, consolidated
outstandings totalled €68.1 billion at end-March
2024, up +73% year-on-year, due to the full consolidation of
CA Auto Bank since the second quarter of 2023.
Crédit Agricole Leasing &
Factoring’s (CAL&F) commercial production in
equipment leasing was up +6.2% compared to the first
quarter of 2023, supported by dynamic distribution in Poland and
with the Regional Banks. Leasing outstandings rose
by +9.1% year-on-year, both in France and internationally, to reach
€19.4 billion at end-March 2024 (of which €15.4 billion
in France and €4.0 billion internationally).
Commercial factoring production was stable (-1.5%)
compared to the first quarter of 2023, buoyed by a number of major
deals in Germany. Factoring outstandings were up
+2.2% compared to end-2022, thanks to the uptrend in factored
revenues (+3.8% Q1/Q1), which totalled €30.4 billion. Lastly,
CAL&F’s mobility segment continues to develop apace with the
roll-out of AgilautoPartage to all the Regional Banks.
Specialised financial services’ results
Revenues from Specialised
Financial Services amounted to €846 million in the first
quarter of 2024, up +26.0% compared to the first quarter of 2023,
boosted by the strategic focus on Mobility, intensified from the
second quarter of 2023, and in particular by the consolidation of
CA Auto Bank 50. Expenses totalled
-€454 million, up +22.5% (excluding SRF)51, mainly due to the
scope effect50. The cost/income ratio stood at
53.6%, an improvement of -1.5 percentage points (excluding
SRF)51 compared to the same period in 2023. Gross operating
income stood at €392 million, up +45.4% compared to
the first quarter of 2023 (+30% excluding the SRF
contribution) 51. The cost of risk stood at
-€219 million, up +38.1% compared to the first quarter of
2024, but generally stable since the second quarter of 2023,
despite the increase in outstandings. Net income Group
share amounted to €142 million, up +12.1% compared to
the same period in 2023.
The business line contributed by 7% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) in the first quarter of 2024 and 12% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2024, the capital
allocated to the business line was €6.7 billion and
its risk weighted assets were
€70.4 billion.
Underlying RoNE (Return on
Normalised Equity) stood at 8.3% in first quarter 2024.
Consumer finance results
CA Consumer Finance’s
revenues totalled €669 million in the first
quarter of 2024, up +31.2% compared to the first quarter of 2023,
boosted by the full consolidation of CA Auto Bank since
the second quarter of 2023. Revenues, excluding the scope effect50,
were down against a backdrop of contracting margins on stock
(despite the gradual rise in customer rates and production margin
rates), which were only partially offset by the increase in
outstandings. Expenses stood at
-€355 million, up +28.0% (excluding SRF52) compared to the
same period in 2023. Expenses, excluding the CA Auto Bank
scope effect, remained under control, up +2.6% (excluding
SRF)50,52. Gross operating income thus totalled
€315 million, up +44.9% (+35% excluding SRF)54.. The
cost/income ratio stood at 53%, an improvement of
-1.3 percentage points excluding SRF compared to the first
quarter of 2023. The cost of risk increased by
+36% to -€199 million compared to the first quarter of 2023,
impacted by the integration of CA Auto Bank and the
increase in outstandings of the other international entities, but
has remained stable since the second quarter of 2023. Cost
of risk/outstandings stood at 117 basis points53,
down -2 basis points compared to the first quarter of 2023
(-17 basis points compared to the second quarter of 2023). The
Non Performing Loans ratio and the coverage ratio stood at 4.1% and
78.7% at end-March 2024, down -0.1 and -2.1 percentage points
respectively compared to end-March 2023. The contribution from
equity-accounted entities fell by -56.8% compared
to the same period in 2023, due to the full consolidation of
CA Auto Bank. The tax charge stood at
-€29 million, +32% compared to the first quarter of 2023. As a
result, net income Group share totalled
€99 million in the first quarter of 2024, up +2.4% compared to
the same period last year.
Leasing & Factoring
results
CAL&F’s revenues totalled
€177 million, up +9.5% compared to the first quarter 2023.
This increase was driven by all business lines in France and
internationally, thanks in particular to volume effects (higher
factored revenues and equipment leasing outstandings), as well as
favourable exchange rate impacts in Poland, along with tighter
control over margins. Expenses rose by a
controlled +6.1% excluding SRF54, mainly confined
to France with increases in salaries and IT costs. The
cost/income ratio stood at 56.1%, an improvement
of -1.8 percentage points excluding SRF54 compared to the
first quarter of 2023. Gross operating income
totalled €78 million, up +47.4% (+14% excluding SRF
contribution). The cost of risk stood at
-€19 million, up +65.1% compared to the same period in 2023,
due in particular to the increase in level 3 provisions.
Cost of risk/outstandings stood at 21 basis
points, up +2 basis points compared to the same period in
2023. The tax charge came to -€13 million, up
+10.5% compared to the first quarter of 2023, in line with business
growth. As a result, net income Group share was
€44 million, up +43.1% compared to the first quarter of
2023.
Crédit Agricole S.A. Retail Banking
activity
In Crédit Agricole S.A.’s Retail
banking business, loan production lost momentum during the quarter
amid rising interest rates, but customer capture continued at a
steady pace, and the number of customers taking out insurance
policies is high.
Retail banking activity in
France
In first quarter 2024, gross
customer capture stood at 83,200 new customers and net customer
capture came in at 13,600 customers. The equipment rate for car,
multi-risk home, health, legal, all mobile phones or personal
accident insurance rose year-on-year by +0.4 percentage point
to stand at 27.8% at end-March 2024.
Against a backdrop of persistently high customer
rates, loan production in the first quarter of 2024 stood at
€5.1 billion, down -29% compared to the same period one year
earlier. Loan production increased in the corporate market (+29%),
but fell in other markets, particularly in the home loans market
(-54%) against the backdrop of a slowdown in the property market
(-36% in home loan production between January/February 2024 and
January/February 2023, according to Banque de France). The
production rate for home loans came to 4.20%, holding steady
between the first quarter of 2024 and the fourth quarter of 2023
(+4 basis points).
Outstanding loans totalled €168.1 billion
at end-March 2024, up +1.5% from end-March 2023, of which +2.0% for
home loans, +2.1% for loans to small businesses, -0.2% for
corporate loans and +0.2% for consumer finance. However,
outstanding loans at end-March were slightly lower than at
end-December 2023 (-0.4%). Total customer assets, which stood at
€250.8 billion at end-March 2024 were also up +4.1% compared
to end-March 2023. The rise was driven by off-balance sheet savings
(+2.1%), which benefited from a positive market effect, and by
on-balance sheet deposits (+5.2%) due to increases in passbook and
term deposits (55.6% between March 2023 and March 2024; and +7.9%
between December 2023 and March 2024).
Retail banking activity in
Italy
In the first quarter of 2024, CA
Italy posted a gross customer capture of 50,000, while the
customer base grew by around 14,000 customers. Loan outstandings at
CA Italy stood at €60.1 billion 55 at the end of
March 2024, up +1.5% compared to the end of March 2023. Loan
production fell by -13.2% year-on-year, but was up +24.3% for
professionals loans. Home loan production fell by -11.6%, in a
depressed housing market in Italy 56. The stock rate is stable
compared to the fourth quarter of 2023. Consumer finance
production 57 was down -9.8% compared with the first quarter
of 2023. Customer assets at end-March 2024 totalled
€116.3 billion, up +4.5% compared with end-March 2023;
on-balance sheet deposits increase +5,8% compared to last year and
stable at a high level compared to the fourth quarter 2023, driven
by demand deposits from individuals.
CA Italy’s equipment rate in car, multi-risk
home, health, legal, all mobile phones or personal accident
insurance increased to 19.3%, up +2 percentage points compared
with the first quarter of 2023.
International Retail Banking activity
excluding Italy
For International Retail Banking
excluding Italy, loan outstandings were up +4.9% at
current exchange rates at end-March 2024 compared with end-March
2023 (+4.7% at constant exchange rates). Customer assets rose by
+6.3% over the same period at current rate (+9.2% at constant
rate).
In Poland in particular, loan outstandings
increased by +14.4% versus March 2023 (+5.3% at constant exchange
rates) and customer assets by +9.5% (-2.0% at constant exchange
rates), against a backdrop of fierce competition for deposits
(impacting Retail inflows in particular). Loan production in Poland
also remained strong, rising by +29.5% compared with the first
quarter of 2023 at current exchange rates (up +19% at constant
exchange rates).
In Egypt, loan outstandings were impacted by the
devaluation of the Egyptian pound, falling by -16.7% between
end-March 2023 and end-March 2024 (+27.0% at constant exchange
rates). Customer assets fell by -18.1% over the same period (+25.0%
at constant exchange rates). The surplus of deposits over loans in
Poland and Egypt amounted to €1.5 billion at 31 March
2024, and reached €3.3 billion including Ukraine.
French retail banking results
In first quarter 2024, LCL’s
revenues were up +1.8% compared to first quarter 2023, at
€954 million. Net interest margin was stable compared with the
first quarter of 2023, with the gradual repricing of loans and the
contribution from macro-hedging offsetting the increase in customer
resources and refinancing costs. Fee and commission income also
rose significantly (+3.8%), driven by all business lines, in
particular life and property and casualty insurance and payment
instruments. Charges were under control and totalled
-€602 million. Excluding SRF, they rose slightly 58
(+0.5%), reflecting increased staff costs and IT expenses due to
the acceleration in investment. The cost/income ratio remained
low at 63.2%, down -0.8 percentage point excluding
SRF.
Gross operating income was up +22.4%, to
€351 million (+4.2% excluding SRF).
The cost of risk was up by +80% to
-€119 million (including +€7 million in cost of risk on
performing loans, -€127 million in proven risk, and
+€1 million in other risks). This increase was mainly due to
corporate specific files. Nevertheless, the cost of
risk/outstandings remained under control, at 21 basis points.
The coverage ratio stood at 59.9% at end-March 2024, down
+1.7 percentage points compared to end-December 2023. The Non
Performing Loans ratio reached 2.1% at end-March 2024, stable
compared to end-December 2023 (+0.1 percentage point).
As a result, net income Group share increased by
+14.2% compared to the first quarter of 2023.
In the end, the business line contributed 8% to
the underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) in the first quarter of 2024 and 14% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2024, the capital
allocated to the business line stood at €5.1 billion
and risk weighted assets stood at
€53.5 billion. LCL’s underlying return on normalised equity
(RoNE) stood at 13.3% for the first quarter of 2024.
International Retail Banking
results 59
In the first quarter of 2024,
International Retail Banking revenues totalled
€1,057 million, up +9.1% (+9.7% at constant exchange rates)
compared with the first quarter of 2023, driven mainly by the rise
in the net interest margin against a backdrop of rising interest
rates. Operating expenses were under control
despite the inflationary environment, coming in at
-€505 million, or -3.5% compared with the first quarter 2023,
-4.0% at constant exchange rates. Gross operating
income totalled €552 million, up +23.9% (+26.1% at
constant exchange rates) for the period. Cost of
risk amounted to -€82 million, down -28.2% compared
to first quarter 2023 (-28,1% at constant exchange rates).
All in all, the net income Group share
in CA Italy, CA Egypt, CA Poland and
CA Ukraine amounted to €256.7 million in the
first quarter of 2024, up +44.2% (+47.2 at constant exchange
rates).
In the first quarter of 2024, the International
Retail Banking business line contributed 14% to the underlying net
income Group share of Crédit Agricole S.A.’s business
lines. (excluding the Corporate Centre) and 15% to underlying
revenues excluding the Corporate Centre.
As at 31 March 2024, the capital allocated to
International Retail Banking was €4.4 billion and risk
weighted assets for the division totalled €46.1 billion.
Results in Italy
In first quarter 2024,
Crédit Agricole Italy’s revenues stood
at €775 million, up +1.8% compared to first quarter 2023. As a
result of the favourable interest rate environment, net interest
margin increased by +2.5% between the first quarter of 2024 and the
first quarter of 2023 and was stable compared with the fourth
quarter of 2023. Compared with the first quarter of 2023, the
increase was driven by a rise in loan production rates, which rose
by 19 basis points, but also by the revaluation of the rate on
loans on the asset side compared with the first quarter of 2023
(the rate on loans remained stable between the fourth quarter of
2023 and the first quarter of 2024). Operating expenses came to
-€382 million, up +2.8% (excluding SRF), compared with the
first quarter 2023 and mainly impacted by staff costs and the
renegotiation of the national collective agreement. In the first
quarter of 2024, there was no SRF contribution at CA Italy
(compared with -€40 million in the first quarter of 2023). All in
all, gross operating income increased by +15.0% compared to the
first quarter of 2023.
The cost of risk amounted to -€61 million
in first quarter 2024, remaining stable compared with the first
quarter of 2023, of which -€50 million related to proven risk
and -€7 million in provisioning for performing loans. Cost of
risk/outstandings 60 stood at 55 basis points, which was
stable compared with the fourth quarter 2023. The Non Performing
Loans ratio was stable compared to fourth quarter 2023 at 3.7% and
the coverage ratio at 71.5% (+1.8 percentage points compared to
fourth quarter 2023). The underlying net income Group share of
CA Italy thus stood at €180 million, up +12.6% compared
to first quarter 2023.
CA Italy’s underlying RoNE (return on
normalised equity) was 25.1% at 31 March 2024.
International Retail Banking results –
excluding Italy
In the first quarter of 2024,
revenues for International Retail Banking
excluding Italy totalled €283 million, up +35.8%
(+39.0% at constant exchange rates) compared to the first quarter
of 2023. The increase in revenues was strong in Egypt (+47.4% at
current exchange rates and +76.3% at constant exchange rates),
where interest rates were favourable and foreign exchange
activities were exceptional (against the backdrop of the
devaluation of the EGP). Revenues in Poland were up +37.4% in the
first quarter of 2023 (+26.2% at constant exchange rates), boosted
by a higher net interest margin. Operating expenses for
International Retail Banking excluding Italy amounted to
€123.6 million, up +10.4% compared to the first quarter of
2023 (+7.7% at constant exchange rates). Gross operating
income amounted to €159 million, up +65.5% (+79.7% at
constant exchange rates) compared to the first quarter of 2023.
Cost of risk was -€21 million, down -61.1% at
constant exchange rate (as a reminder, in the first quarter of
2023, a prudent provision of €33 million was made in Ukraine).
Furthermore, at end-March 2024, the coverage ratio for loan
outstandings remained high in Poland and Egypt, at 121% and 172%
respectively. In Ukraine, the local coverage ratio remains prudent
(316%). All in all, the contribution of International
Retail Banking excluding Italy to net income Group share
was €76.7 million, x4.2 compared with the first quarter of
2023. The underlying RoNE (return on normalised equity) of Other
IRB (excluding CA Italy) stood at 47.0% at 31 March 2024 vs
17,4% at 31 March 2023.
The entire Retail Banking business
line contributed to 22% of the underlying net
income Group share of Crédit Agricole S.A.’s
core businesses. (excluding the Corporate Centre division) in the
first quarter of 2024 and 29% of underlying
revenues excluding the Corporate Centre.
At 31 March 2024, the capital
allocated to this business line stood at €9.6 billion
and risk weighted assets stood at
€97.8 billion.
Corporate Centre results
The net income Group share of the Corporate
Centre was -€107 million in first quarter 2024, up
+€198 million compared with first quarter 2023. The negative
contribution of the Corporate Centre division can be analysed by
distinguishing between the “structural” contribution
(-€106.5 million) and other items (-€0.5 million). The
contribution of the “structural” component increased by
+€274 million from first quarter 2023 and can be broken down
into three types of activity:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. Parent Company. The contribution
amounted to -€295 million in the first quarter of 2024, up
+€91 million, including the positive effect of ending the SRF
contribution (+€71 million).
- The businesses
that are not part of the business lines, such as CACIF (Private
equity), CA Immobilier, CATE and BforBank (equity-accounted).
Their contribution, at +€184 million in the first quarter of
2024, was up +€180 million compared to the first quarter of
2023, as it factored in the positive impact of +€202 million
from the revaluation of Banco BPM securities (set at €6.17 on
31/03/2024).
- Group support
functions. Their contribution amounted to +€4 million this
quarter (+€3 million compared with first quarter 2023).
The contribution of “other items” was down
-€76 million compared to the first quarter of 2023 due to the
negative impact resulting from the elimination of intra-group
securities underwritten by Amundi.The “internal margins” effect at
the time of the consolidation of the insurance activity at the
Crédit Agricole level was accounted for through the Corporate
Centre. Over the quarter, the impact of internal margins was
-€205 million in revenues and +€205 million in
expenses.
As at 31 March 2024, risk weighted assets were
€28.2 billion.
Financial strength
Crédit Agricole Group
As at 31 March 2024, the phased-in
Common Equity Tier 1 (CET1) ratio of
Crédit Agricole Group was 17.5%, unchanged from
end-December 2023. Therefore, the Crédit Agricole Group
posted a substantial buffer of 7.8 percentage points between
the level of its CET1 ratio and the 9.7% SREP requirement. The
fully loaded CET1 ratio is 17.4%.
During first quarter 2024:
- The CET1 ratio benefited this
quarter from an impact of +29 basis points related to
retained earnings.
- Changes in risk weighted assets
related to business line organic growth impacted
the Group’s CET1 ratio by -28 basis points (see below)
- The
methodology and regulatory effects are similar to those affecting
Crédit Agricole S.A. and have an impact of -3bp on CET1
ratio, in particular the gradual end of IFRS 9
transitional provisions (phasing out), which will have a
negative impact of -9 basis points in the first quarter of
2024. Phasing out is expected to end in 2025, with an impact of an
additional -8 basis points expected in 2025.
-
Unrealised gains and/or losses, M&A and others
mainly include a -1 basis point impact from the acquisition of a
minority stake in Worldline.
The phased-in Tier 1 ratio
stood at 18.7% while the phased-in total ratio was 21.4% at
end-March 2024.
The phased-in leverage ratio
stood at 5.5%, remaining stable compared to end-December 2023, but
well above the regulatory requirement of 3.5%.
Risk weighted assets for the
Crédit Agricole Group amounted to €618 billion, up
by +€8 billion compared to 31 December 2023. The change can be
broken down by business line as follows: Retail Banking
-€0.5 billion, Asset Gathering +€2.9 billion, Specialised
Financial Services +€1.8 billion, Large Customers
+€4.9 billion and Corporate Centre -€1.1 billion.
Maximum Distributable Amount (MDA and
L-MDA) trigger thresholds
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined capital
buffer requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 31 March 2024,
Crédit Agricole Group posted a buffer of
710 basis points above the MDA trigger, i.e.
€44 billion in CET1 capital.
At 31 March 2024,
Crédit Agricole S.A. posted a buffer of
328 basis points above the MDA trigger, i.e.
€13 billion in CET1 capital.
Failure to comply with the leverage ratio buffer
requirement would result in a restriction of distributions and the
calculation of a maximum distributable amount (L-MDA).
At 31 March 2024,
Crédit Agricole Group posted a buffer of
197 basis points above the L-MDA trigger, i.e.
€42 billion in Tier 1 capital.
TLAC
Crédit Agricole Group must comply with
the following TLAC ratio requirements at all times:
- a TLAC ratio
above 18% of risk weighted assets (RWA), plus – in accordance with
EU directive CRD 5 – a combined capital buffer requirement
(including, for the Crédit Agricole Group, a 2.5% capital
conservation buffer, a 1% G-SIB buffer and the counter-cyclical
buffer set at 0.75% for the CA Group at 31 March 2024).
Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a TLAC ratio of
above 22.3%;
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior preferred debt.
At 31 March 2024,
Crédit Agricole Group’s TLAC ratio stood
at 27.3% of RWA and 8.0% of leverage ratio exposure,
excluding eligible senior preferred
debt61, which is well above the
requirements. The TLAC ratio, expressed as a percentage of risk
weighted assets, increased by 40 basis points over the
quarter, in line with the increase in equity and eligible items
over the period. Expressed as a percentage of leverage exposure
(LRE), the TLAC ratio was stable compared to December 2023.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 500 bps higher, i.e.
€31 billion, than the current requirement of 22.3% of
RWA.
At end-March 2024, €4.5 billion equivalent
had been issued in the market (senior non-preferred and Tier 2
debt) as well as €1.25 billion of AT1. The amount of
Crédit Agricole Group senior non-preferred securities
taken into account in the calculation of the TLAC ratio was
€30.9 billion.
MREL
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. Since 1 January 2024, the
Crédit Agricole Group has to meet a minimum total MREL
requirement of:
- 21.71% of RWA,
plus – in accordance with EU directive CRD 5 – a combined
capital buffer requirement (including, for the
Crédit Agricole Group, a 2.5% capital conservation
buffer, a 1% G-SIB buffer and the counter-cyclical buffer set at
0.75% for the CA Group at 31 March 2024). Considering the
combined capital buffer requirement, the
Crédit Agricole Group must adhere to a total MREL ratio
of above 26.0%;
- 6.13% of the
LRE.
At 31 March 2024,
Crédit Agricole Group had a MREL ratio of 33.0%
of RWA and 9.7% of leverage exposure, well above the total
MREL requirement.
An additional subordination requirement to TLAC
(“subordinated MREL”) is also determined by the resolution
authorities and expressed as a percentage of RWA and LRE, in which
senior debt instruments are excluded, similar to TLAC, which ratio
is equivalent to the subordinated MREL for the
Crédit Agricole Group. At 31 March 2024, this
subordinated MREL requirement for the
Crédit Agricole Group did not exceed the TLAC
requirement: it amounted to 17.14% of RWA (plus a combined capital
buffer requirement) and 6.13% of leverage ratio exposure.
The distance to the maximum distributable amount
trigger related to MREL requirements (M-MDA) is the lowest of the
respective distances to the MREL, subordinated MREL and TLAC
requirements expressed in RWA.
At 31 March 2024,
Crédit Agricole Group had a buffer of
500 basis points above the M-MDA trigger, taking into
account the TLAC requirement applicable at 31 March 2024, i.e.
€31 billion of CET1 capital.
From 30 June 2024 at the latest, the Crédit
Agricole Group expects to have to comply with the following MREL
requirements:
- Total MREL:
22.01% of RWA (to which is added the overall capital buffer
requirement) and 6.25% of leverage exposure;
- Subordinated
MREL: 18.25% of RWA (to which is added the overall capital buffer
requirement) and 6.25% of leverage exposure.
Crédit Agricole S.A.
At 31 March 2024,
Crédit Agricole S.A.’s solvency ratio was higher than the
Medium-Term Plan target, with a phased-in Common Equity
Tier 1 (CET1) ratio of 11.8%, stable compared to
end-December 2023. Crédit Agricole S.A. therefore had a
comfortable buffer of 3.3 percentage points between the level
of its CET1 ratio and the 8.6% SREP requirement. The fully loaded
CET1 ratio was 11.8% as well.
During first quarter 2024:
- The CET1 ratio
benefited this quarter from a positive impact of +23 basis points
linked to retained earnings. This impact
corresponds to net income Group share net of AT1 coupons (impact of
+45 basis points) and of the distribution of 50% of earnings,
i.e. a provision for dividends of 29 euro cents per share in first
quarter 2024 (-22 basis points).
- Changes in
risk-weighted assets related to business line
organic growth impacted the CET1 ratio by -21 basis points,
mainly in the Insurance business line (-6 basis points), with
the other business lines contributing -15 basis points.
-
Methodology and regulatory effects had a positive
impact of +3 basis points on the ratio this quarter. In
particular, the phasing out of IFRS 9 transitional provisions
had an impact of -5 basis points in the first quarter of 2024.
Phasing out is expected to end in 2025, with an impact of an
additional -5 basis points expected in 2025.
-
Unrealised gains and/or losses, M&A and others
mainly include a -1 basis point impact from the acquisition of
a minority stake in Worldline.
The phased-in leverage ratio
was 3.9% at end-March 2024, up +0.1 percentage point from
end-December 2023 and above the 3% requirement.
The phased-in Tier 1 ratio
stood at 13.6% and the phased-in total ratio at 17.8% this
quarter.
Risk weighted assets for
Crédit Agricole S.A. amounted to €393 billion at
end-March 2024, up +€5.1 billion compared to 31 December 2023.
The change can be broken down by business line as follows:
- Asset
Gathering posted an increase of +€2.8 billion, including
€1.7 billion in RWA for Insurance due to its income in the
first quarter of 2024.
- Specialised
Financial Services was up +€1.6 billion, driven by growth in
consumer finance.
- Large
Customers recorded an increase in risk-weighted assets of
+€4.7 billion over the quarter, concentrated at CACEIS for a
total of +€3.1 billion, a portion of which is reversible over
the coming quarters.
- Retail Banking
and Corporate Centre divisions posted a drop in risk-weighted
assets of -€3.3 billion and -€0.7 billion
respectively.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is
based on the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet and
whose definition is commonly accepted in the marketplace. It
relates to the banking scope, with insurance activities being
managed in accordance with their own specific regulatory
constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €54 billion at end-March 2024.
Similarly, €143 billion in repos/reverse repos were eliminated
insofar as these outstandings reflect the activity of the
securities desk carrying out securities borrowing and lending
operations that offset each other. Other nettings calculated in
order to build the cash balance sheet – for an amount totalling
€170 billion at end-March 2024 – relate to derivatives, margin
calls, adjustment/settlement/liaison accounts and to non-liquid
securities held by corporate and investment banking and are
included in the “Customer-related trading assets” section.
Note that deposits centralised with Caisse des
Dépôts et Consignations are not netted in order to build the cash
balance sheet; the amount of centralised deposits
(€101 billion at end-March 2024) is booked to assets
under “Customer-related trading assets” and to liabilities under
“Customer-related funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, Senior
issuances placed through the banking networks as well as financing
by the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Note that for Central Bank refinancing
transactions, outstandings related to the T-LTRO (Targeted
Longer-Term Refinancing Operations) are included in “Long-term
market funds”. In fact, T-LTRO 3 transactions are similar to
long-term secured refinancing transactions, identical from a
liquidity risk standpoint to a secured issuance.
Medium to long-term repurchase agreements are
also included in “Long-term market funds”.
Finally, the CIB’s counterparties that are banks
with which we have a commercial relationship are considered as
customers in the construction of the cash balance sheet.
Standing at €1,718 billion at 31 March
2024, the Group’s banking cash balance sheet shows a
surplus of stable funding resources over stable application
of funds of €186 billion, down -€4 billion
compared with end December 2023 after repayment of TLTROs in March
(€21 billion).
Total TLTRO 3 outstandings for
Crédit Agricole Group amounted to €5.8 billion62 at
31 March 2024, down-€21 billion62, which were repaid during
the quarter. It should be noted, with regard to the position in
stable resources, that internal management excludes the temporary
surplus of stable resources provided by the increase in T-LTRO 3
outstandings in order to secure the Medium-Term Plan’s target of
€110 billion to €130 billion, regardless of the repayment
strategy.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 31 March 2024
(central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €262 billion at 31 March 2024, down
-€1 billion compared to end-December 2023. Issuances of senior
preferred and senior non-preferred debt offset the repayment of
T-LTRO 3 in December 2023.
They included senior secured debt of
€82 billion, senior preferred debt of €122 billion,
senior non-preferred debt of €35 billion and Tier 2
securities amounting to €23 billion.
The Group’s liquidity reserves, at
market value and after haircuts, amounted to €476 billion at
31 March 2024, up +€31 billion compared with 31
December 2023.
They covered short-term net debt more than two
times over (excluding the replacements with Central Banks).
The increase in liquidity reserves was mainly
due to:
- Collateral
release following the TLTRO repayment for +€19 billion
- Increase in the
HQLA securities portfolio, mainly at CACEIS and Regional Banks for
+€8 billion
- The increase in
Central Bank deposits for +€4 billion, mainly linked to cash
management at Crédit Agricole CIB and
CA Consumer Finance
Crédit Agricole Group also continued
its efforts to maintain immediately available reserves (after
recourse to ECB financing). Central bank eligible non-HQLA assets
after haircuts amounted to €154 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
At 31 March 2024, the end of month LCR
ratios were 141.7% for the Crédit Agricole Group
(representing a surplus of €92.7 billion) and 146% for
Crédit Agricole S.A. (representing a surplus of
€88.9 billion). They were higher than the Medium-Term Plan
target (around 110%).
In addition, the NSFR of
Crédit Agricole Group and Crédit Agricole S.A.
exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021 and above the Medium-Term
Plan target (>100%).
The Group continues to follow a prudent policy
as regards medium-to-long-term refinancing, with a
very diversified access to markets in terms of investor base and
products.
In the first quarter of 2024, the
Group’s main issuers raised the equivalent of
€27.2 billion63,64 in
medium-to-long-term debt on the markets, 56% of which was
issued by Crédit Agricole S.A. In particular, the
following amounts are noted for the Group:
-
Crédit Agricole CIB issued €6.7 billion in
structured format;
-
Crédit Agricole Consumer Finance issued
€0.9 billion equivalent in EMTN issues through
Crédit Agricole Auto Bank (CAAB);
-
CA Italy issued two senior secured debt issues for a total of
€1.5 billion, of which €500 million in green format
-
Crédit Agricole next bank (Switzerland) issued two tranches in
senior secured format for a total of 200 million Swiss
francs, of which 100 million Swiss francs in green
format
The Group’s medium-to-long-term financing can be
broken down into the following categories:
-
€7.1 billion in secured financing;
-
€11.8 billion in plain-vanilla unsecured financing;
-
€6.7 billion in structured financing;
-
€1.7 billion in long-term institutional deposits and CDs.
In addition, €6.7 billion was raised
through off-market issuances, split as follows:
-
€5.2 billion from banking networks (the Group’s retail banking
or external networks);
-
€0.2 billion from supranational organisations or financial
institutions;
-
€1.3 billion from national refinancing vehicles (including the
credit institution CRH).
In the first quarter of 2024,
Crédit Agricole S.A. raised the equivalent of
€15.2 billion on the market63,64 representing
58% of its 2024 refinancing programme:
The bank raised the equivalent of
€15.2 billion, of which €3 billion in senior
non-preferred debt and €1.5 billion in Tier 2 debt, as well as
€5.9 billion in senior preferred debt and €4.8 billion in
senior secured debt at end-March. The financing comprised a variety
of formats and currencies, including:
-
€2.8 billion 65;
-
4.85 billion US dollars (€4.45 billion equivalent);
-
0.6 billion pounds sterling (€0.7 billion
equivalent);
-
157 billion Japanese yen (€0.97 billion equivalent);
-
0.4 billion Swiss francs (€0.43 billion equivalent);
-
1.75 billion Australian dollars (€1.1 billion
equivalent).
At end-March, Crédit Agricole S.A. had
issued 73% of its funding plan in currencies other than the
euro 66,67.
In addition, on 2 January 2024,
Crédit Agricole S.A. issued a PerpNC6 AT1 bond for
€1.25 billion at an initial rate of 6.5% and announced the
repayment of AT1 (144A: US225313AD75 & RegS: USF22797RT78) at
the 1st Call Date on 23/01/2024 for $1.75 billion.
Since end-March, €2.6 billion of additional
funding has been raised, of which one senior secured issuance for
€1.25 billion, one Tier 2 debt issue for €1 billion and
one Panda Bond issuance in senior preferred format for
€0.3 billion equivalent. Hence, at end-April, the amount
issued was €17.7 billion, i.e. 68% 68 of the 2024 funding
plan.
Appendix 1 – Specific items,
Crédit Agricole Group and
Crédit Agricole S.A.
Crédit Agricole
Group – Specific items, Q1-2024 and Q1-2023
| |
|
Q1-24 |
Q1-23 |
| €m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
5 |
4 |
(8) |
(6) |
|
Loan portfolio hedges (LC) |
|
2 |
1 |
(24) |
(18) |
|
Home Purchase Savings Plans (LCL) |
|
(0) |
(0) |
- |
- |
|
Home Purchase Savings Plans (CC) |
|
2 |
1 |
- |
- |
|
Home Purchase Savings Plans (RB) |
|
41 |
30 |
- |
- |
| Total
impact on revenues |
|
50 |
37 |
(32) |
(24) |
|
ISB integration costs (LC) |
|
(20) |
(10) |
- |
- |
| Total
impact on operating expenses |
|
(20) |
(10) |
- |
- |
|
Provision for risk Ukraine (IRB) |
|
(20) |
(20) |
- |
- |
| Total
impact on cost of credit risk |
|
(20) |
(20) |
- |
- |
|
Degroof Petercam aquisition costs (AG) |
|
(8) |
(6) |
- |
- |
| Total
impact on Net income on other assets |
|
(8) |
(6) |
- |
- |
| |
|
|
|
|
|
|
Total impact of specific items |
|
2 |
1 |
(32) |
(24) |
|
Asset gathering |
|
(8) |
(6) |
- |
- |
|
French Retail banking |
|
41 |
30 |
- |
- |
|
International Retail banking |
|
(20) |
(20) |
- |
- |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(12) |
(5) |
(32) |
(24) |
|
Corporate centre |
|
2 |
1 |
- |
- |
* Impact before tax and before non-controlling interests
Crédit
Agricole S.A. – Specific items Q1-2024 and Q1-2023
| |
|
Q1-24 |
Q1-23 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
5 |
4 |
(8) |
(6) |
|
Loan portfolio hedges (LC) |
|
2 |
1 |
(24) |
(17) |
|
Home Purchase Savings Plans (FRB) |
|
2 |
1 |
- |
- |
|
Home Purchase Savings Plans (CC) |
|
(0) |
(0) |
- |
- |
| Total
impact on revenues |
|
9 |
6 |
(32) |
(23) |
|
ISB integration costs (LC) |
|
(20) |
(10) |
- |
- |
| Total
impact on operating expenses |
|
(20) |
(10) |
- |
- |
|
Provision for risk Ukraine (IRB) |
|
(20) |
(20) |
- |
- |
| Total
impact on cost of credit risk |
|
(20) |
(20) |
- |
- |
|
Degroof Petercam aquisition costs (AG) |
|
(8) |
(6) |
- |
- |
| Total
impact Net income on other assets |
|
(8) |
(6) |
- |
- |
| |
|
|
|
|
|
|
Total impact of specific items |
|
(39) |
(30) |
(32) |
(23) |
|
Asset gathering |
|
(8) |
(6) |
- |
- |
|
French Retail banking |
|
2 |
1 |
- |
- |
|
International Retail banking |
|
(20) |
(20) |
- |
- |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(12) |
(5) |
(32) |
(23) |
|
Corporate centre |
|
(0) |
(0) |
- |
- |
* Impact before tax and before non-controlling
interests
Appendix 2 – Crédit Agricole Group: results by
business lines
Crédit Agricole Group – Contribution by business line,
Q1-2024 and Q1-2023
|
|
Q1-24 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,314 |
954 |
1,081 |
1,793 |
846 |
2,266 |
(728) |
9,525 |
|
|
Operating expenses excl. SRF |
(2,484) |
(602) |
(524) |
(754) |
(454) |
(1,297) |
527 |
(5,589) |
|
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Gross operating income |
830 |
351 |
556 |
1,039 |
392 |
969 |
(201) |
3,936 |
|
|
Cost of risk |
(247) |
(119) |
(84) |
(3) |
(219) |
33 |
(13) |
(651) |
|
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Equity-accounted entities |
5 |
- |
- |
29 |
30 |
4 |
- |
68 |
|
|
Net income on other assets |
2 |
2 |
(0) |
(8) |
(0) |
0 |
(2) |
(7) |
|
|
Income before tax |
589 |
234 |
472 |
1,056 |
203 |
1,006 |
(216) |
3,347 |
|
|
Tax |
(147) |
(53) |
(143) |
(220) |
(42) |
(235) |
85 |
(755) |
|
|
Net income from discont'd or held-for-sale ope. |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Net income |
442 |
181 |
330 |
837 |
161 |
772 |
(131) |
2,592 |
|
|
Non controlling interests |
(0) |
(0) |
(51) |
(112) |
(19) |
(34) |
7 |
(208) |
|
|
Net income Group Share |
442 |
181 |
279 |
725 |
142 |
738 |
(123) |
2,384 |
|
|
|
Q1-23 (stated) |
|
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,333 |
936 |
1,745 |
989 |
672 |
2,051 |
(800) |
8,927 |
|
Operating expenses excl. SRF |
(2,441) |
(599) |
(715) |
(501) |
(371) |
(1,121) |
464 |
(5,284) |
|
SRF |
(113) |
(50) |
(6) |
(40) |
(31) |
(314) |
(72) |
(626) |
|
Gross operating income |
779 |
287 |
1,024 |
449 |
270 |
616 |
(408) |
3,018 |
|
Cost of risk |
(172) |
(66) |
(1) |
(115) |
(158) |
(36) |
0 |
(548) |
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
Equity-accounted entities |
7 |
- |
22 |
0 |
74 |
4 |
0 |
108 |
|
Net income on other assets |
1 |
(0) |
0 |
0 |
(1) |
5 |
(1) |
4 |
|
Income before tax |
616 |
221 |
1,045 |
334 |
184 |
589 |
(408) |
2,581 |
|
Tax |
(196) |
(63) |
(231) |
(98) |
(34) |
(183) |
94 |
(711) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
- |
2 |
0 |
- |
- |
2 |
|
Net income |
420 |
159 |
815 |
238 |
150 |
405 |
(315) |
1,872 |
|
Non controlling interests |
0 |
(0) |
(111) |
(40) |
(23) |
(19) |
(9) |
(204) |
|
Net income Group Share |
420 |
158 |
703 |
198 |
127 |
386 |
(324) |
1,669 |
Appendix 3 – Crédit Agricole S.A.: Results by
business line
|
Crédit Agricole S.A. – Contribution by business line, Q1-2024 et
Q1-2023 |
|
|
|
|
Q1-24 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,789 |
2,266 |
846 |
954 |
1,057 |
(107) |
6,806 |
|
Operating expenses excl. SRF |
(754) |
(1,297) |
(454) |
(602) |
(505) |
(56) |
(3,669) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,035 |
969 |
392 |
351 |
552 |
(163) |
3,137 |
|
Cost of risk |
(3) |
33 |
(219) |
(119) |
(82) |
(11) |
(400) |
|
Equity-accounted entities |
29 |
4 |
30 |
- |
- |
(20) |
43 |
|
Net income on other assets |
(8) |
0 |
(0) |
2 |
(0) |
- |
(6) |
|
Income before tax |
1,053 |
1,006 |
203 |
234 |
470 |
(194) |
2,773 |
|
Tax |
(220) |
(235) |
(42) |
(53) |
(142) |
82 |
(610) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
834 |
772 |
161 |
181 |
328 |
(112) |
2,163 |
|
Non controlling interests |
(117) |
(50) |
(19) |
(8) |
(71) |
5 |
(259) |
|
Net income Group Share |
716 |
722 |
142 |
173 |
257 |
(107) |
1,903 |
|
|
Q1-23 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,746 |
2,051 |
672 |
936 |
969 |
(253) |
6,121 |
|
Operating expenses excl. SRF |
(715) |
(1,121) |
(371) |
(599) |
(484) |
(39) |
(3,328) |
|
SRF |
(6) |
(314) |
(31) |
(50) |
(40) |
(72) |
(513) |
|
Gross operating income |
1,024 |
616 |
270 |
287 |
445 |
(363) |
2,280 |
|
Cost of risk |
(1) |
(36) |
(158) |
(66) |
(114) |
1 |
(374) |
|
Equity-accounted entities |
22 |
4 |
74 |
- |
0 |
(14) |
86 |
|
Net income on other assets |
0 |
5 |
(1) |
(0) |
0 |
- |
4 |
|
Income before tax |
1,046 |
589 |
184 |
221 |
332 |
(376) |
1,996 |
|
Tax |
(232) |
(183) |
(34) |
(63) |
(98) |
88 |
(521) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
0 |
- |
2 |
- |
2 |
|
Net income |
814 |
406 |
150 |
159 |
236 |
(287) |
1,476 |
|
Non controlling interests |
(115) |
(29) |
(23) |
(7) |
(58) |
(17) |
(250) |
|
Net income Group Share |
698 |
376 |
127 |
151 |
178 |
(305) |
1,226 |
Appendix 4 – Data per share
|
Crédit Agricole S.A. – Earnings p/share, net book value p/share and
RoTE |
|
(€m) |
|
|
Q1-24 |
Q1-23 |
| Net income
Group share - stated |
|
|
1,903 |
1,226 |
| - Interests on
AT1, including issuance costs, before tax |
|
|
(138) |
(141) |
| - Foreign
exchange impact on reimbursed AT1 |
|
|
(247) |
- |
| NIGS
attributable to ordinary shares - stated |
[A] |
|
1,518 |
1,085 |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
|
3,018 |
3,024 |
|
Net earnings per share - stated |
[A]/[B] |
|
0.50 € |
0.36 € |
| Underlying net
income Group share (NIGS) |
|
|
1,933 |
1,249 |
| Underlying NIGS
attributable to ordinary shares |
[C] |
|
1,548 |
1,108 |
|
Net earnings per share - underlying |
[C]/[B] |
|
0.51 € |
0.37 € |
|
|
|
|
|
|
|
(€m) |
|
|
31/03/2024 |
31/03/2023 |
| Shareholder's
equity Group share |
|
|
72,429 |
69,138 |
| - AT1
issuances |
|
|
(7,184) |
(7,239) |
| - Unrealised
gains and losses on OCI - Group share |
|
|
1,021 |
1,237 |
| - Payout
assumption on annual results* |
|
|
(3,181) |
(3,175) |
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
63,086 |
59,962 |
| - Goodwill
& intangibles** - Group share |
|
|
(17,280) |
(16,960) |
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
45,807 |
43,002 |
| Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
3,025.6 |
3,024.0 |
| NBV per share ,
after deduction of dividend to pay (€) |
[D]/[F] |
|
20.9 € |
19.8 € |
| + Dividend to
pay (€) |
[H] |
|
1.05 € |
1.05 € |
| NBV per share ,
before deduction of dividend to pay (€) |
|
|
21.9 € |
20.9 € |
| TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
15.1 € |
14.2 € |
| TNBV per sh.,
before deduct. of divid. to pay (€) |
[G]+[H] |
|
16.2 € |
15.3 € |
| * dividend
proposed to the Board meeting to be paid |
|
|
|
|
| ** including
goodwill in the equity-accounted entities |
|
|
|
|
|
(€m) |
|
|
Q1-24 |
Q1-23 |
| Net income
Group share - stated |
[K] |
|
1,903 |
1,226 |
| Impairment of
intangible assets |
[L] |
|
0 |
0 |
| IFRIC |
[M] |
|
-110 |
-549 |
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*4+[M] |
|
7,944 |
6,553 |
| Interests on
AT1, including issuance costs, before tax, foreign exchange impact,
annualised |
[O] |
|
-799 |
-564 |
| Stated result
adjusted |
[P] = [N]+[O] |
|
7,145 |
5,989 |
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg *** (3) |
[J] |
|
44,671 |
42,306 |
| Stated ROTE
adjusted (%) |
= [P] / [J] |
|
16.0% |
14.2% |
| Underlying Net
income Group share |
[Q] |
|
1,933 |
1,249 |
| Underlying NIGS
annualised |
[R] = ([Q]-[M])*4+[M] |
|
8,063 |
6,645 |
| Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
7,264 |
6,081 |
| Underlying ROTE
adjusted(%) (1) (2) |
= [S] / [J] |
|
16.3% |
14.4% |
| *** including
assumption of dividend for the current exercise |
|
|
0.0% |
(1) Underlying : see appendixes for more details
on specific items(2) Underlying ROTE calculated on the basis of an
annualised underlying net income Group share and linearised IFRIC
costs over the year(3) Average of the NTBV not revalued
attributable to ordinary shares calculated between 31/12/2023 and
31/03/2024, (line [E]), restated with an assumption of dividend for
current exercise
Alternative Performance
Indicators69
NBV Net Book Value (not
revaluated)The Net Book Value not revaluated corresponds
to the shareholders’ equity Group share from which the amount of
the AT1 issues, the unrealised gains and/or losses on OCI Group
share and the pay-out assumption on annual results have been
deducted.
NBV per share Net Book Value per share –
NTBV Net Tangible Book Value per shareOne of the methods
for calculating the value of a share. This represents the Net Book
Value divided by the number of shares in issue at end of period,
excluding treasury shares.
Net Tangible Book Value per share represents the
Net Book Value after deduction of intangible assets and goodwill,
divided by the number of shares in issue at end of period,
excluding treasury shares.
EPS Earnings per ShareThis is
the net income Group share, from which the AT1 coupon has been
deducted, divided by the average number of shares in issue
excluding treasury shares. It indicates the portion of profit
attributable to each share (not the portion of earnings paid out to
each shareholder, which is the dividend). It may decrease, assuming
the net income Group share remains unchanged, if the number of
shares increases.
Cost/income ratioThe
cost/income ratio is calculated by dividing operating expenses by
revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of
risk/outstandingsCalculated by dividing the cost of credit
risk (over four quarters on a rolling basis) by outstandings (over
an average of the past four quarters, beginning of the period). It
can also be calculated by dividing the annualised cost of credit
risk for the quarter by outstandings at the beginning of the
quarter. Similarly, the cost of risk for the period can be
annualised and divided by the average outstandings at the beginning
of the period.
Since the first quarter of 2019, the
outstandings taken into account are the customer outstandings,
before allocations to provisions.
The calculation method for the indicator is
specified each time the indicator is used.
Doubtful loanA doubtful loan is
a loan in default. The debtor is considered to be in default when
at least one of the following two conditions has been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation.
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loanLoan which has
been provisioned due to a risk of non-repayment.
MRELThe MREL (Minimum
Requirement for Own Funds and Eligible Liabilities) ratio is
defined in the European “Bank Recovery and Resolution Directive”
(BRRD). This Directive establishes a framework for the resolution
of banks throughout the European Union, with the aim to provide
resolution authorities with shared instruments and powers to
pre-emptively tackle banking crises, preserve financial stability
and reduce taxpayers’ exposure to losses. Directive (EU) 2019/879
of 20 May 2019 known as “BRRD2” amended the BRRD and was transposed
into French law by Order 2020-1636 of 21 December 2020.
The MREL ratio corresponds to an own funds and
eligible liabilities buffer required to absorb losses in the event
of resolution. Under BRRD2, the MREL ratio is calculated as the
amount of eligible capital and liabilities expressed as a
percentage of risk weighted assets (RWA), as well as a leverage
ratio exposure (LRE). Are eligible for the numerator of the total
MREL ratio the Group’s regulatory capital, as well as eligible
liabilities issued by the corporate centre and the
Crédit Agricole network affiliated entities, i.e. subordinated
notes, senior non-preferred debt instruments and certain senior
preferred debt instruments with residual maturities of more than
one year.
Impaired (or non-performing) loan
coverage ratio This ratio divides the outstanding
provisions by the impaired gross customer loans.
Impaired (or non-performing) loan
ratio This ratio divides the impaired gross customer
loans on an individual basis, before provisions, by the total gross
customer loans.
TLACThe Financial Stability
Board (FSB) has defined the calculation of a ratio aimed at
estimating the adequacy of the bail-in and recapitalisation
capacity of Global Systemically Important Banks (G-SIBs). This
Total Loss Absorbing Capacity (TLAC) ratio provides
resolution authorities with the means to assess whether G-SIBs have
sufficient bail-in and recapitalisation capacity before and during
resolution. It applies to Global Systemically Important Banks, and
therefore to Crédit Agricole Group. Agricole. The TLAC
ratio requirement was transposed into European Union law via CRR2
and has been applicable since 27 June 2019.
The Group’s regulatory capital as well as
subordinated notes and eligible senior non-preferred debt with
residual maturities of more than one year issued by
Crédit Agricole S.A. are eligible for the numerator of
the TLAC ratio.
Net income Group shareNet
income/(loss) for the financial year (after corporate income tax).
Equal to net income Group share, less the share attributable to
non-controlling interests in fully consolidated subsidiaries.
Underlying Net income Group
shareThe underlying net income Group share represents the
stated net income Group share from which specific items have been
deducted (i.e., non-recurring or exceptional items) to facilitate
the understanding of the company’s actual earnings.
Net income Group share attributable to
ordinary shares The net income Group share attributable to
ordinary shares represents the net income Group share from which
the AT1 coupon has been deducted, including issuance costs before
tax.
RoTE Return on Tangible
EquityThe RoTE (Return on Tangible Equity) measures the
return on tangible capital by dividing the Net income Group share
annualised by the group’s NBV net of intangibles and goodwill. The
annualised Net income Group share corresponds to the annualisation
of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding
impairments of intangible assets and restating each period of the
IFRIC impacts in order to linearise them over the year.
Disclaimer
The financial information on
Crédit Agricole S.A. and Crédit Agricole Group
for first quarter 2024 comprises this presentation and the attached
appendices and press release which are available on the website:
https://www.credit-agricole.com/en/finance/finance/financial-publications.
This presentation may include prospective
information on the Group, supplied as information on trends. This
data does not represent forecasts within the meaning of EU
Delegated Act 2019/980 of 14 March 2019 (Chapter 1, article 1,
d).
This information was developed from scenarios
based on a number of economic assumptions for a given competitive
and regulatory environment. Therefore, these assumptions are by
nature subject to random factors that could cause actual results to
differ from projections. Likewise, the financial statements are
based on estimates, particularly in calculating market value and
asset impairment.
Readers must take all these risk factors and
uncertainties into consideration before making their own
judgement.
Applicable standards and
comparability
The figures presented for the three-month period
ending 31 March 2024 have been prepared in accordance with IFRS as
adopted in the European Union and applicable at that date, and with
the applicable regulations in force. This financial information
does not constitute a set of financial statements for an interim
period as defined by IAS 34 “Interim Financial Reporting” and has
not been audited.
Note: the scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups
have not changed materially since the
Crédit Agricole S.A. 2023 Universal Registration Document
and its A.01 update (including all regulatory information about the
Crédit Agricole Group) filed with the AMF (the French
Financial Markets Authority).
The sum of values contained in the tables and
analyses may differ slightly from the total reported due to
rounding.
Other information
Crédit Agricole S.A.’s Combined
General Meeting will take place on 22 May 2024 in Orléans.
As announced at the time of the publication of
Crédit Agricole S.A.’s 2023 results, the Board of
Directors will propose to the General Meeting a cash dividend of
€1.05 per share
- 29 May:
ex-dividend date
- 30 May: Record
date
- 31 May: Dividend
payment
Financial Agenda
22 May
2024 General
Meeting in Orléans1 August
2024 Publication
of 2024 second quarter and first half results6 November
2024 Publication of
the 2024 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
| Alexandre
BaratOlivier Tassain |
+ 33 1 57 72 12 19+
33 1 43 23 25 41 |
alexandre.barat@credit-agricole-sa.fr
olivier.tassain@credit-agricole-sa.fr |
| Mathilde
Durand |
+ 33 1 57 72 19
43 |
mathilde.durand@credit-agricole-sa.fr |
| Bénédicte
Gouvert |
+ 33 1 49 53 43
64 |
benedicte.gouvert@ca-fnca.fr |
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
| Institutional
investors |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
| Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
| |
|
|
| Cécile
Mouton |
+ 33 1 57 72 86
79 |
cecile.mouton@credit-agricole-sa.fr |
|
Equity investor relations: |
|
|
| Jean-Yann
AsserafFethi Azzoug |
+ 33 1 57 72 23 81+
33 1 57 72 03 75 |
jean-yann.asseraf@credit-agricole-sa.fr
fethi.azzoug@credit-agricole-sa.fr |
| Joséphine
Brouard |
+ 33 1 43 23 48
33 |
josephine.brouard@credit-agricole-sa.fr |
| Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
| Nicolas
Ianna |
+ 33 1 43 23 55
51 |
nicolas.ianna@credit-agricole-sa.fr |
| Leila Mamou |
+ 33 1 57 72 07
93 |
leila.mamou@credit-agricole-sa.fr |
| Anna
Pigoulevski |
+ 33 1 43 23 40
59 |
anna.pigoulevski@credit-agricole-sa.fr |
| |
|
|
| |
|
|
|
Credit investor and rating agency relations: |
|
| Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@credit-agricole-sa.fr |
| Gwenaëlle
Lereste |
+ 33 1 57 72 57
84 |
gwenaelle.lereste@credit-agricole-sa.fr |
| Florence Quintin
de Kercadio |
+ 33 1 43 23 25
32 |
florence.quintindekercadio@credit-agricole-sa.fr |
| |
|
|
| |
|
|
| |
|
|
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
|
Crédit_Agricole |
|
Crédit Agricole Group |
|
créditagricole_sa |
1 Home loan production in France: -36% in cumulative terms over
January and February 2024 compared with the cumulative total over
January and February 2023, according to Banque de France2
CA Auto Bank, automotive JVs and automotive activities of
other entities3 Low-carbon energy outstandings made up of renewable
energy produced by the clients of all
Crédit Agricole Group entities, including nuclear energy
outstandings for CACIB.4 CACIB green asset portfolio, in line with
the eligibility criteria of the Group Green Bond Framework
published in November 2023.5 Electric or hybrid6 Reference year:
2020 (except Aviation, for which the reference year is 2019)7
Initial oil and gas commitment of -30% by 2030 announced in 2022,
revised to -75% in 20238 Scope: Crédit Agricole CIB and
Unifergie
(Crédit Agricole Transitions & Energies) 9
Gross of export credit hedges10 See Appendixes for more details on
specific items. 11 Scope effect of ISB in revenues of
+€108 million in the first quarter of 202412 Scope effect of
CA Auto Bank in revenues of +€183 million in the
first quarter of 202413 Scope effect of ISB in expenses of
+€103 million in the first quarter of 202414 Scope effect of
CA Auto Bank in expenses of +€70 million in the
first quarter of 202415 The cost of risk/outstandings (in basis
points) on a four-quarter rolling basis is calculated on the cost
of risk of the past four quarters divided by the average
outstandings at the start of each of the four quarters16 The cost
of risk/outstandings (in basis points) on an annualised basis is
calculated on the cost of risk of the quarter multiplied by four
and divided by the outstandings at the start of the quarter
17 Number of customers with an active profile on
the Ma Banque app or who had visited CAEL during the month/number
of adult customers having an active demand deposit account18
Signatures initiated in BAM deposit mode (multi-channel bank
access), Mobile customer portal or “Ma Banque” app19 Home loan
production in France: -36% over Jan/Feb 2024 compared with Jan/Feb
2023 according to Banque de France20 Credit rate on monthly
achievements. Only maturity loans, in euros and at a fixed rate,
are taken into account21 SAS Rue La Boétie dividend paid annually
in Q222 The SRF was -€113 million in 202323 SAS Rue La Boétie
dividend paid annually in Q2
24 Underlying, excluding specific items. 25
Scope effect of ISB in revenues: +€108 million in the first
quarter of 202426 Scope effect of CA Auto Bank in
revenues: +€183 million in the first quarter of 202427 Scope
effect in expenses in the first quarter of 2024: +€103 million
for ISB, +€70 million for CA Auto Bank
28 Provisioning rate calculated with
outstandings in Stage 3 as denominator, and the sum of the
provisions recorded in Stages 1, 2 and 3 as numerator.29 The cost
of risk/outstandings (in basis points) on a four quarter rolling
basis is calculated on the cost of risk of the past four quarters
divided by the average outstandings at the start of each of the
four quarters30 The cost of risk/outstandings (in basis points) on
an annualised basis is calculated on the cost of risk of the
quarter multiplied by four and divided by the outstandings at the
start of the quarter31
See Appendixes for
more details on specific items.32 See Appendixes for details on the
calculation of the RoTE (return on tangible equity)33 The
annualised underlying net income Group share corresponds to the
annualisation of the underlying net income Group share (Q1x4; H1x2;
9Mx4/3) by restating each period for IFRIC impacts to linearise
them over the year34 Excluding assets under custody for
institutional clients
35 Scope: property and casualty in France and
abroad36 Combined ratio of P&C (Pacifica) including discounting
and excluding undiscounting, net of reinsurance: (claims +
operating expenses + fee and commission income) to premium income;
the ratio is calculated for the first quarter of 2024. The net
combined ratio excluding the effect of discounting for the first
quarter of 2024 is 96.2% (-0.1 percentage point
year-on-year).37 +€6.5 billion in Retail, +€5.6 billion
in Institutional, +€4.5 billion in JV38 +€8.7 billion in
Treasury excluding JV, +€3.4 billion in MLT assets excluding
JV, 39 Non binding40 Excluding assets under custody for
institutional clients41 Amount of allocation of Contractual Service
Margin (CSM) and Risk Adjustment (RA) including funeral
guarantees42 Amount of allocation of CSM and RA43 Net of cost of
reinsurance, excluding financial results44 Base effect linked to
the implementation of management decisions on investments in
connection with the transition to IFRS 17 on 1 January 2023,
i.e. segregation of equity and derisking of the portfolio.45
Indosuez Wealth Management scope46 Refinitiv47 Bloomberg48
CA Auto Bank, automotive JVs and auto activities of other
entities49 CA Auto Bank and automotive JVs50 CA Auto Bank
scope effect Q1-24: Revenues €183m, expenses -€70m, cost of risk
-€35m51 The SFS division’s contribution to the SRF was
€31 million in the first quarter of 2023.52 The SRF
contribution of CACF came to -€16 million in the first quarter
of 202353 Cost of risk for the last four quarters as a proportion
of the average outstandings at the beginning of the period for the
last four quarters 54 The SRF contribution of CAL&F came to
-€15 million in the first quarter of 202355 Net of POCI
outstandings56 Source: Bank of Italy: -16,5% of Feb./Feb. home loan
production57 Agos58 SRF amounting to
€50 million 59 At 31 March 2024 this scope includes the
entities CA Italy, CA Polska, CA Egypt and CA Ukraine.
60 Over a rolling four quarter period.61 As part
of its annual resolvability assessment,
Crédit Agricole Group has chosen to waive the possibility
offered by Article 72ter(3) of the Capital Requirements Regulation
(CRR) to use senior preferred debt for compliance with its TLAC
requirements in 2024.62 Including CA Auto Bank63 Gross
amount before buy-backs and amortisations64 Excl. AT1 issuances65
Excl. senior secured debt66 Excl. senior secured debt67 Excl. AT1
issuances68 Excl. AT1 issuances69 APMs are financial indicators not
presented in the financial statements or defined in accounting
standards but used in the context of financial communications, such
as underlying net income Group share or RoTE. They are used to
facilitate the understanding of the company’s actual performance.
Each APM indicator is matched in its definition to accounting
data.
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