Credit Agricole Sa: Crédit Agricole S.A. unwinds 35% of the “Switch” guarantee mechanism
January 15 2020 - 3:15PM
Credit Agricole Sa: Crédit Agricole S.A. unwinds 35% of the
“Switch” guarantee mechanism
Montrouge, 15 January 2020
Crédit Agricole S.A. unwinds 35%
of the “Switch” guarantee mechanism
On 2 March 2020, Crédit Agricole S.A. will
unwind1 35% of the “Switch” guarantee mechanism implemented between
the Regional Banks and Crédit Agricole S.A, less than a year
after the disclosure of its Medium Term Plan, in which it committed
to unwind half of this guarantee by 2022.
The “Switch” guarantee mechanism corresponds to
a transfer to the Regional Banks of a share of the regulatory
requirements that apply to Crédit Agricole S.A. for its insurance
activities in return for a fixed remuneration.
The partial unwinding of this intragroup
transaction is a new step towards the simplification of the
solvency structure of Crédit Agricole S.A. It strengthens the
net income generation capacity of Crédit Agricole S.A., with
an accretive impact on the net income Group share of
58 million euros in 2020 and roughly 70 million
euros in full year.
The impact of this transaction on the CET1 ratio
of Crédit Agricole S.A. will be approximately -40 basis points from
31 March 2020. Crédit Agricole confirms its 11% CET1 target set out
in the Medium Term Plan for Crédit Agricole S.A., a level that
compares favourably with the 8.7% SREP requirement.
Crédit Agricole S.A., as the central body of Crédit
Agricole Group, also benefits fully from the legal internal
financial solidarity mechanism.
This transaction will have no impact on the
results nor on the solvency ratios of
Crédit Agricole Group.
Crédit Agricole S.A.
press contacts
Charlotte de
Chavagnac + 33 (0)1
57 72 11
17
charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain
+ 33 (0)1 43 23 25
41
olivier.tassain@credit-agricole-sa.fr
All our press releases are available at: www.credit-agricole.com
– www.creditagricole.info
1 The transaction is subject to the audit of the absence of
decrease of the equity-accounted value of insurance during the
second semester 2019, this will be performed in the disclosure of
the 2019 financial statements.
- CP CASA_Switch_EN_20200115
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