PRESS
RELEASE
Montrouge, 6 June 2019
GROUP PROJECT
& 2022 MEDIUM-TERM PLAN
"Working every day in the interest of our customers and
society"
A new Group Project
Crédit Agricole Group is formally setting out its Raison d'être:
"Working every day in the interest of our
customers and society". It confirms its customer-focused
universal banking model with three pillars:
-
Excellence in customer
relations: be number one in customer satisfaction by becoming
the favourite bank of individuals, entrepreneurs and
corporates;
-
Empowered teams for
customers: to accompany digitalisation by offering customers
human, responsible and accessible skills;
-
Commitment to society:
amplify our mutualism commitment to reinforce our position as the
European leader in responsible investment.
A new Medium-Term Plan (2019-2022)
Raised and secured profitability
targets
A strong Group, which allows for agile capital
management
-
Target net income Group share for 2022: >
€5bn for Crédit Agricole S.A.;
-
2022 ROTE: >11% for Crédit Agricole
S.A.;
-
CET1 at year-end 2022 factoring in regulatory
changes:
-
"Switching off"
Three levers for the new Medium-Term
Plan:
-
Growth on all our markets
with the goal of being number one in customer conquest;
-
Revenue synergies totalling
€10bn in 2022;
-
Technological transformation
for greater efficiency with a €15bn allocation over four
years.
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Today, Crédit Agricole Group is
presenting a new Group Project and a new 2022 Medium-Term Plan
jointly drafted by the Regional banks and Crédit Agricole S.A.
For the first time, the Group
Project spells out Crédit Agricole's Raison d'être. It serves as the basis of its unique
relationship model and lies at the heart of its customer-focused
universal banking model. Forward-looking and true to the daily
expression of the Group's usefulness, this Raison
d'être guides the Group's transformation and development while
promoting its values of usefulness and
universality. It can be summarised as,
"Working every day in the
interest of our customers and society".
Within this new long-term
framework, the 2022 strategic plan is a roadmap for profitable
growth for Crédit Agricole. It builds upon the previous Medium-Term
Plan, Strategic Ambitions 2020, which delivered almost all of its
financial results a year ahead of schedule. It seeks to amplify and
accelerate the Group's growth in an uncertain environment, and in a
context of growing societal expectations.
The economic scenario is based on
interest rates remaining low. Making a prudent assumption of
an increase in cost of risk to
40 basis points (versus 23
basis points in 2018), Crédit
Agricole S.A. aims to deliver higher and secured
profitability, with net income Group share above €5 billion (€4.4
billion in 2018) and a target return on tangible equity (ROTE)
above 11% (12.7% in 2018; 2016-2019 MTP target: 10%). These targets
will be achieved thanks to the Group's diversified business model
and thanks to improvements in operating efficiency, in particular
through a reduction in cost to income ratios of all Crédit Agricole
S.A. business lines, to fall below 60% in 2022 (excluding the
contribution to the Single Resolution Fund).
The CET1 ratio targets set for
Crédit Agricole Group and Crédit Agricole S.A. for end 2022, above
16% and 11% respectively, take into account the much tougher
regulatory requirements expected by this date. Credit Agricole
Group's CET1 ratio guarantees the entire Group's financial
strength. The Group will also pursue its prudent liquidity
management strategy. Finally, the simplification of Crédit Agricole
S.A.'s capital structure will enter a new stage during the MTP
period, with the partial unwinding of the Switch guarantee granted
by the Regional banks to Crédit Agricole S.A., which will have a
favourable impact on earnings per share.
Crédit Agricole S.A. - Financial targets for
2022
Growth in net income Group share |
> +3% per year (CAGR 2018-2022)
to > €5bn |
ROTE |
>11% |
Cost/income ratio (excl. SRF) |
< 60% |
Cost of risk assumption |
~ 40 basis points |
CET1 |
11%
> 16% for Crédit Agricole Group |
Payout ratio |
50% in cash |
"Working every day in the
interest of our customers and society" - the new long-term Group
Project
Crédit Agricole is the number one
bank in France, number one insurer in France, number one
bancassurer in Europe, number one asset manager in Europe and the
world's tenth largest bank. With 51 million customers around the
world and the biggest retail banking customer base in Europe, the
Group has built its growth on a unique relationship model, which it
intends to expand by drawing on three pillars.
Excellence in
customer relations at the centre of the Customer Project
The Group aims to
be the favourite bank of individuals, entrepreneurs and
corporates.
Key
drivers:
-
Mobilising all business lines around customer
satisfaction by managing it at the highest level, putting the net
promoter score (NPS) in the assessment of employees, managers and
senior executives, and creating an Academy for Excellence in
Customer Relations;
-
Installing a zero-defect culture (creating a
"customer champion" function to solve customer pain points and a
"process manager" to streamline banking processes).
The Group aims to
increase the number of customers using its digital applications in
France and Italy by 20 points by offering an exceptional digital
customer experience.
Key
drivers:
-
tools and applications at the highest standards,
across all our markets;
-
products and services adapted to new customer
habits including access-offers to all our services, simple and
transparent pricing;
-
leverage data to better know our customers and
be their trusted third party;
-
innovation, with the opening of 17 new Villages
by CA in France and Italy;
-
and customer journeys natively designed for
digital use.
The Group is
investing in an innovative strategy of banking and extra-banking
services platforms operated directly or with partners.
-
Rollouts planned in Regional banks: platforms
for business creation, for the management of non-profits, for car
financing, and for healthcare services from 2019, and in 2020,
platforms offering support for job finding, for housing, as well as
a digital data vault.
Empowered teams
at the centre of the Human Project
Men and women who make up Crédit
Agricole are key to the success of the Group Project. In an
increasingly digital society, the direct responsibility that a
company's empowered employees can offer its customers is crucial.
The Group is placing this empowerment at the centre of its Human
Project, to reinforce the amplification of the Customer
Project.
The Group will stand apart by
always offering its customers a direct access to
an empowered relationship manager. Relationship managers will
be required to show discernment and their responsibilities will be
strengthened, in order to quickly address the specific needs of
customers.
Key
drivers:
-
relationship managers's appraisals based on Net
Promoter Score (NPS) and, for managers at Crédit Agricole S.A.,
assessments based on Engagement and Recommendation Index (ERI)
objectives,
-
a clear delegation framework (80% of decisions
will be taken locally within our retail banking networks in
France),
-
additional customer-facing time, thanks to
native integration of compliance in tools and decisions,
-
relationship managers trained in both
behavioural and digital skills.
These far-reaching changes require
transformations in terms of management and
organisation, to empower teams and bring them closer to
customers.
Key
drivers:
-
100% of Group Executives trained in our new
leadership model,
-
"entrepreneur" managers,
-
shorter decision-making chains,
-
agile ways of working and working spaces,
-
show loyalty towards employee to ensure mutual
commitment between employees and the company.
The Group intends
to be the best company to work for in financial services in France,
and Top 5 in Europe.
A strong
commitment to society at the centre of the Societal Project
Crédit Agricole Group will pursue
its mutualist commitment to inclusive development and it will
continue to make green financing one of its key growth drivers.
Pursuing the
mutualist commitment to inclusive development
The Group will draw upon its
strong local coverage, in particular via the presence of the
Regional banks in the regions, to promote fairer economic
development by:
-
developing a range of affordable offers for all
such as Eko and LCL Essentiel,
-
supporting entrepreneurship: Cafés de la
Création and Villages by CA,
-
preventing and resolving
over-indebtedness.
It will also develop social impact
financing, by:
-
increase significantly investments in the social
and solidarity companies (SSC),
-
strengthening CACIB's leadership in the
arrangement of social bonds,
-
taking action for the economic development of
rural populations in emerging countries (via the Crédit Agricole
Grameen Foundation).
And it will reinforce societal
ties locally, by:
-
organising massively work experience placements
for middle-school students from deprived areas,
-
supporting local associations (culture, sports
and solidarity), alongside projects conducted by the Regional
banks,
-
strengthening the role of its Foundations.
Green finance -
one key growth drivers for the Group
-
commit all the Group's entities to a common
climate strategy, in line with the Paris Agreement, its
implementation will be certified by an independent body and
published in 2020 based on the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD),
-
strengthen our commitments to financing the
energy transition: exiting from thermal coal production in EU and
OECD countries by 2030 (no new business relations with companies
for which thermal coal accounts for over 25% of their revenues
except those that have announced plans to close their thermal coal
activities or which intend to announce such plans by 2021. No
business relations with companies developing or planning to develop
new thermal coal capacity), financing one in three renewable energy
projects in France, doubling the size of our green loans portfolio
to €13 billion by 2022,
-
promote clean and responsible investment
policies: incorporating ESG criteria in all funds managed by Amundi
and all new investments by Crédit Agricole Assurances, reach €6bn
of the Group's liquidity portfolio in socially responsible
investments (SRI) financial products,
-
assigning a transition rating to large corporate
customers to structure dialogue with them on their energy
transition roadmap.
The Group intends
to be the European leader in responsible investment
2022 Medium-Term
Plan: three levers
The new Medium-Term Plan is based
on three levers: growth on all our markets, development of revenue
synergies and technological transformation for greater
efficiency.
Growth on all our
markets: number one in customer conquest
Intensify
relationships with individual and mass affluent customers:
-
Targets for individual
costumers: number one in net customer conquest with over 1
million additional customers in France and Italy, 26% market share
in home loans in France for the Regional banks, and a 5 point
increase in the share of customers with at least one property &
casualty insurance contract in France.
-
Targets for mass affluent
customers: €20bn increase in yearly net inflows (Regional
banks, LCL, CA Indosuez WM), +240,000 new clients (Regional banks,
LCL, Crédit Agricole Italy).
-
Be the reference bank for
Savings and Wealth management: amplify the value proposition of
the "Trajectoires Patrimoine" offer by completing 50,000 real
estate transactions per year, and +2pp of Regional bank's customers
equipped with death & disability insurance (term life
policies).
Address the
specific needs of small businesses and farmers
-
Targets: number one in
customer conquest in France (Regional banks, LCL), 75% market share
for new farmers (Regional banks), leading apps (Ma Banque Pro, Pro
& Entreprises LCL, etc).
Specific solutions for independent
professions and farmers.
Become the
strategic partner for SMEs / Midcaps
-
Targets: reinforce the
Regional banks' leadership in the corporate market and
accelerate the Group's growth on Midcaps and internationally active
French firms, 1/3 of large SMEs customers of LCL, 1.5pp increase in
financial market share in the French food industry sector for
Crédit Agricole Group.
Roll out a comprehensive range of
bancassurance solutions for companies (the
most complete Group benefits solution for employers in insurance
and collective solutions, property & casualty insurance
solution).
Extend the
product range for large corporates and financial
institutions
Make payments a
key driver for customer loyalty and customer acquisition
As a long-standing leader in
France with a market share of 27% and in the top five in Europe,
Crédit Agricole Group has solid foundations on which to build new
ambitions. It will invest €450m in payments business between 2019
and 2022.
-
Targets for individual
customers: strengthen our leadership by offering all payment
services at the highest standards (mobile payments and services,
card-related innovation, new digital services).
-
Targets for merchants and
corporates: support our customers' development in France and
Europe to capture market share, with digital and mobile payment
solutions for small and medium-sized merchants, a pan-European
electronic payments offering for Tier1 merchants, and a state of
the art e-commerce offer from 2019.
Internationally,
Europe is the priority, with an extension of our universal banking
model in Europe and Asia via partnerships
-
Europe: development of our
retail banking and property & casualty insurance in Italy,
selective growth of CACIB large customer base and development of
Crédit Agricole Leasing & Factoring operations in Germany,
strengthening of our customer-focused universal banking in
Poland.
-
In Asia: development of
joint ventures and strengthening of positions in Japan for Amundi,
focused development for CACIB in China and capitalisation on recent
acquisitions in Singapore and Hong Kong for Indosuez Wealth
Management.
-
Extend our model in Europe and
Asia: while organic growth remains the Group's priority,
continuing and accelerating on partnerships will contribute to
growth in the Group's business lines; targeted acquisitions will
have to accelerate organic growth and meet criteria in terms of
profitability, risks and synergy potential.
Revenue
synergies: €10bn by 2022
In the new Medium-Term Plan, the
Group is continuing its strategy of developing revenue synergies
between its entities. Its universal banking model offers potential
organic growth, to allow each and every business lines to reach the
Group's market share in retail banking. The Group aims to increase
revenue synergies by €1.3bn up to €10bn in 2022. The two main
drivers will be insurance (+€800m) and specialised financial
services (€300m in consumer finance and leasing).
Technological
transformation for greater efficiency: €15bn for IT over 4
years
Align our
technological fundamentals with the best standards on the
market
Speed up and
anticipate the adoption of new technologies
Enhancing
operational efficiency
* *
*
The presentation of the Credit
Agricole Group Medium-Term Plan will be published on the website
www.credit-agricole.com at 8:30 a.m. on Thursday 6 June 2019 (Paris
time).
Crédit
Agricole press contacts
Charlotte
de Chavagnac |
+ 33 1 57
72 11 17 |
charlotte.dechavagnac@credit-agricole-sa.fr |
Olivier
Tassain |
+ 33 1 43
23 25 41 |
olivier.tassain@credit-agricole-sa.fr |
Pauline
Vasselle
Caroline de Cassagne |
+ 33 1 43
23 07 31
+ 33 1 49 53 41 72 |
pauline.vasselle@credit-agricole-sa.fr
Caroline.decassagne@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 (toll-free number France only) |
credit-agricole-sa@relations-actionnaires.com |
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Cyril
Meilland, CFA |
+ 33 1 43
23 53 82 |
cyril.meilland@credit-agricole-sa.fr
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Equity investors |
|
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Letteria
Barbaro-Bour |
+ 33 1 43
23 48 33 |
letteria.barbaro-bour@credit-agricole-sa.fr |
Oriane
Cante |
+ 33 1 43
23 03 07 |
oriane.cante@credit-agricole-sa.fr |
Emilie
Gasnier |
+ 33 1 43
23 15 67 |
emilie.gasnier@credit-agricole-sa.fr |
Ibrahima
Konaté |
+ 33 1 43
23 51 35 |
ibrahima.konate@credit-agricole-sa.fr |
Vincent
Liscia |
+ 33 1 57
72 38 48 |
vincent.liscia@credit-agricole-sa.fr |
Annabelle
Wiriath |
+ 33 1 43
23 55 52 |
annabelle.wiriath@credit-agricole-sa.fr |
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Debt investors
and rating agencies: |
|
Caroline
Crépin |
+ 33 1 43
23 83 65 |
caroline.crepin@credit-agricole-sa.fr |
Laurence
Gascon |
+ 33 1 57
72 38 63 |
laurence.gascon@credit-agricole-sa.fr |
Marie-Laure Malo |
+ 33 1 43
23 10 21 |
marielaure.malo@credit-agricole-sa.fr |
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See all our press releases at:
www.credit-agricole.com - www.creditagricole.info
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Crédit_Agricole |
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Crédit Agricole
Group |
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créditagricole_sa |
This presentation may include
forward-looking information and prospective statements on
Crédit Agricole Group, supplied as information on trends.
These statements and information include financial projections and
estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. These statements and information do not represent
forecasts within the meaning of European Regulation 809/2004 of 29
April 2004 (chapter 1, article 2, § 10). These statement and
information were developed from scenarios based on a number of
economic assumptions for a given competitive and regulatory
environment. These assumptions are by nature subject to random
factors and uncertainties, many of which are difficult to predict
that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
information and prospective statements.
Other than as required by applicable laws and regulations, neither
Crédit Agricole S.A. nor any other entities of
Crédit Agricole Group undertake any obligation to update
or revised any forward-looking information and prospective
statements in light of any new information and/or event.
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.
The figures presented are not audited. The figures presented for
the twelve-month period ending 31 December 2018, approved by
Crédit Agricole S.A.'s Board of Directors on
13 February 2019, have been prepared in accordance with
IFRS as adopted in the European Union and applicable at end-2018,
and with prudential regulations currently in force. The financial
targets have been prepared in accordance with IFRS as adopted in
the European Union and applicable at 1st January of 2019,
they are also based on a series of assumptions on the application
of prudential regulations.
Note:
Crédit Agricole Group's scope of consolidation comprises:
the Regional banks, the Local Banks and
Crédit Agricole S.A. and their respective subsidiaries.
This is the scope of consolidation that has been privileged by the
competent authorities to assess Crédit Agricole Group's
situation, notably in the 2016 and 2018 Stress test
exercises.
Crédit Agricole S.A. is a listed entity that owns
subsidiaries performing the business line activities (Asset
gathering, Retail banking France and International, Specialised
financial services, and Large customers).
The sum of values contained in the
tables and analyses may differ slightly from the total reported due
to rounding.
Group Project & 2022
Medium-Term Plan
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: CREDIT AGRICOLE SA via Globenewswire
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