CREDIT AGRICOLE SA: Q4-21 and 12M-21 RESULTS
Crédit Agricole Q4-21 and 12M-21 RESULTS |
2022 MTP targets reached
in 2021, one year ahead of schedule |
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CRÉDIT AGRICOLE
GROUP |
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CRÉDIT AGRICOLE S.A. |
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Stated |
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Underlying |
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Stated |
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Underlying |
Revenues |
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€36,822m+9.6% 12M/12M |
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€36,730m+7.9% 12M/12M |
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€22,657m+10.5% 12M/12M |
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€22,651m+9.1% 12M/12M |
Costs excl. SRF |
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-€22,602m+6.3% 12M/12M |
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-€22,255m+5.1% 12M/12M |
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-€13,429m+7.8% 12M/12M |
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-€13,082m+5.8% 12M/12M |
GOI |
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€13,741m+16.8% 12M/12M |
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€13,812m+12.3% 12M/12M |
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€8,836m+16.1% 12M/12M |
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€9,047m+13.7% 12M/12M |
Cost of risk |
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-€2,193m-39.9% 12M/12M |
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-€1,849m-49.4% 12M/12M |
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-€1,576m-39.5% 12M/12M |
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-€1,232m-52.7% 12M/12M |
Net income Group share |
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€9,101m+94.1% 12M/12M |
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€8,512m+38.9% 12M/12M |
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€5,844mx2.2 12M/12M |
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€5,397m+40.2% 12M/12M |
C/I ratio (excl. SRF) |
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61.4%-1.9 pp 12M/12M |
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60.6%-1.6 pp 12M/12M |
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59.3%-1.5 pp 12M/12M |
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57.8%-1.8 pp 12M/12M |
STRONG HIKE IN CASA Q4-21
AND 12M RESULTS ACROSS ALL BUSINESS LINES Reported net
income €1,428m in Q4, €5,844m in 2021Underlying income +47.2% Q4/Q4
to €1,435m, +40.2% 12M/12M to €5,397mDynamic activity, +1.7 million
new retail banking customers in 2021, equipment rate upRevenues
+9.1% Q4/Q4, positive jaws Q4 and 12MCost/income ratio excluding
SRF 57.8% in 2021 (-1.8 pp 12M/12M), Prudent provisioning of
performing loans maintained against a backdrop of macro
uncertainties. |
PROFITABILITY AND CAPITAL
POSITION AMONG BEST IN THE SECTOR
IN EUROPE |
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CRÉDIT AGRICOLE
GROUP |
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CRÉDIT AGRICOLE S.A. |
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CET1phasé |
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17.5% |
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+10 bp
Dec/Sept |
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11.9% |
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-80 bp Dec/Sept |
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+8.6 pp above SREP requirements |
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+4.0 pp above SREP requirements |
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ROTE CASA 13.1%1 in 2021. At
least 2.6 pp above the average of 10 major European banks for
the past five years |
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2021 DIVIDEND: €1.05 per share (€0.85 : 50%
pay-out policy; €0.20 : 2019 dividend catch-up) |
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2022 MTP FINANCIAL TARGETS
REACHED IN 2021 |
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CASA net income Group share2 €5.4bn > €5bn; CASA cost/income
ratio3 57.8% < 60%; Crédit Agricole SA ROTE1 13.1% > 11%;
CASA CET1 11.9% > 11%; CAG CET1 17.5% > 16%50% dividend
distribution throughout the span of the MTPUNWINDING OF
100% OF SWITCH IN 2021 |
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Strength of our Group
Project
- Amplification of
the universal customer-focused banking model: digital and empowered
local teams
- Strong societal
commitments for energy transition and social cohesion
- Continued
organic growth potential, expansion of the partnership model (8 new
strategic partnerships since the start of the MTP)
- Strategic
flexibility over the span of the MTP (€4.3bn in acquisitions,
€2.3bn in disposals)
- European
ambitions on mobility (CACF/Stellantis agreement in 2023)
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The Group will present its new 2025 development plan on 22
June 2022 |
Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors “Our performance commits us. It is our
responsibility to support all of our customers and society in their
transitions." |
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Philippe Brassac,Chief Executive Officer of Crédit
Agricole S.A. “The Group upholds its long-term commitments
and, on 22 June, will present a new development plan to accelerate
transitions” |
Crédit Agricole Group
Group activity
Commercial activity in the Group’s business
lines was strong this quarter, reflecting the strength of the
Universal Customer-focused Banking model. Gross customer
acquisition was strong. In the whole year 2021, the Group recorded
+1,701,000 new Retail banking customers, 1,560,000 of them in
France (1,218,000 customers for the Regional Banks) and 140,000 in
Italy, while the customer base continued to grow (+278,000 retail
banking customers, 226,000 of them Regional Bank customers and
256,000 customers in France). In the fourth quarter of 2021, the
Group gained +391,000 new retail banking customers, of which
360,000 of them in France (284,000 for the Regional Banks) and
31,000 in Italy. In addition, the production of loans in retail
banking in France rose in the fourth quarter, by +1.3%4 compared to
fourth quarter 2019 and increased significantly over 2021 by +6.9%
compared to 2019. Premium income from property and casualty
insurance was also up sharply (+15.7% since the fourth quarter of
2019) while consumer finance and leasing production grew +1.5%
compared to the same period. The equipment rate of Regional Banks,
LCL and CA Italia also posted an increase since end 2020
(+1 percentage points, +1.1 percentage points and
+1.9 percentage points respectively) to 42.7%, 26.6% and 19%
respectively at 31 December 2021.
Group Project
Customer and human-centric projects -
amplification of the universal customer-focused banking model:
digital technology and empowered local
teams.
This year, the Group continued to amplify the
universal customer-focused banking model, which combines digital
technology and empowered local teams. The Crédit Agricole Group’s
offers are constantly adapted to the needs of its customers. 2021
saw the launch of several inclusive and flexible
packages.
In line with its universal banking model, the
Crédit Agricole Group aims to make essential day-to-day banking
services available to all, both online and in branches, in
particular through the EKO and LCL Essentiel offers. For young
people, the Globetrotter and LCL City Explorer offers provide an
international payment card with no foreign payment fees. The
insurance activity is also developing inclusive offers: the EKO
Crédit Agricole Assurance and Primo LCL packages offer a car
insurance service that is accessible to all with no limits on
essential coverage.
In addition, Crédit Agricole gives all customers
access to the bank’s premium services with its flexible
Nouvelle Banque du Quotidien offer, which includes
“essential”, “premium” and “prestige” packages. For December 2021,
the premiumisation rate was 23%.
The Crédit Agricole Group is also constantly
improving its offers and services through innovation and
the digitalisation of the customer experience. As a
result, the Group’s app usage rate (active profile on apps in the
last month) rose sharply this year, recording an increase at the
Regional Banks and at LCL (respectively, +18 percentage points
compared to January 2019 to 45.5% and +20.5 percentage points to
57.4%). Similarly, the Group continues to deploy innovative digital
tools for its customers and in particular for young people to
facilitate their activities, such as the digital “piggy bank” on
the CA Italia application (which allows amounts as small as €5 to
be saved and invested in a mutual fund at any time with a simple
click on a mobile phone), and Plick, a new private payment service
also developed by CA Italia (which allows payments to be made
throughout Europe without an IBAN, using only the beneficiary’s
mobile phone number or e-mail). Innovative non-banking platforms
and services have also been set up, such as Vizio Client (which
allows face-to-face exchanges with one’s advisor and sharing and
viewing documents during a videoconference call) and platforms for
young people and professionals (Youzful, Blank, Yapla).
However, Crédit Agricole Group goes the extra
mile and enhances the digital experience and the strength of its
offers and services for its customers through
customer-focused empowered local
teams. The inclusion of an “empowerment index”
in this year's ERI (Engagement and Recommendation Index) survey is
a good illustration of this, as is the strong increase in the
participation rate of employees in the ERI survey (75%, +13 points
compared to 2016). In addition, the Group launched innovative
measures in managerial transformation, supported by organisational
transformation, to ramp up the employee empowement process, aimed
at creating more value for customers. Lastly, the Crédit Agricole
Group continues to take steps to promote gender equality. By the
end of 2021, 31% of Crédit Agricole S.A.’s Executive Committees
will be made up of women.
Finally, this year’s achievements were made
possible thanks to the full mobilisation
of the Group’s employees.
As a result of all these actions, the Group’s
positioning in terms of customer satisfaction continued to improve:
Crédit Agricole is now at the top of the “France’s favourite brand”
ranking in the banking category. Crédit Agricole’s Net Promoter
Score (NPS) rose in 2021 from 2020 (+2 points to +10), placing it
in the top three French banks in terms of customer
satisfaction. After being recognised during lockdown as
the leading bank in terms of contactability, LCL was awarded the
“2022 Customer Service of the Year” trophy and received the prize
for the best remote customer service and bank branch of the year
(Trophée 2022 Moneyvox). Finally, the Sofinco website was elected
“Best User Experience” in 2021.
The Group’s societal project –
societal commitment for
energy transition and social cohesion
The Group’s commitment to the energy transition
has two main components: the Group’s support for the energy
transition of corporates and individual customers, and the
progressive reallocation of financing and investment portfolios
towards green assets.
There are several concrete examples of the
Group’s commitment to support its customers in their transition
strategies in 2021. Indeed, 8,000 listed companies have been
assigned transition scores, i.e. a single score used by CACIB and
Amundi to better support and meet the energy transition needs of
their customers. CACIB confirmed its position as one of the world’s
top five green, social and sustainable bond arrangers (with $46
billion of bonds arranged in 2021). At Amundi, the assets under
management dedicated to social and environmental solutions totalled
€35 billion in 2021. In addition, CACF granted financing in the
amount of €2 billion for vehicles emitting less than 95 g of carbon
dioxide per km. Lastly, according to a May 2021 Bloomberg study,
Crédit Agricole CIB is the first bank among the 30 largest
worldwide banks to have arranged more green financing since the
beginning of 2016 than hydrocarbon financing.
Several concrete examples of the reallocation of
financing and investment portfolios towards green assets can also
be noted 2021. CACIB’s green loan portfolio amounts to €13.2
billion at year end. CAA has invested €2.5 billion in renewable
energies (i.e. an installed capacity of close to 8.5 GW), and 100%
of Amundi’s open-ended active management funds have an ESG score
target5 above the score for the investment universe. Finally, CALEF
is, once again this year, the first private provider of renewable
energy financing6, with €2.6 billion outstandings in 2021.
The Group’s Societal Project covers the Group’s
societal commitment to both energy transition and social cohesion.
The Group's commitment in this area includes support for young
people and the regions. The Crédit Agricole Group was the second
largest private recruiter7 of work-study students in France in
2021. In addition, CACF and the Regional Banks have developed
support measures to help limit over-indebtedness and combat
fragility: 4,200 over-indebted customers were accompanied by CACF
this year, and 10,000 families were supported by the Regional
Banks’ “Points Passerelle” scheme. Lastly, on a different note,
social investment vehicles such as Amundi Finance et solidarité, or
the Contrat solidaire CAA are offered within the Amundi and CAA
ranges.
In addition, in 2021, as part of its Societal
Project, the Crédit Agricole Group presented a programme with 10
ambitious commitments in the area of climate, social cohesion and
inclusion, and agriculture, embedded within the activities of the
Group.
The first part of this programme involves acting
for the climate and the transition to a low-carbon
economy through:
1. Achieving carbon
neutrality by 2050 in our own footprint and in our investment and
financing portfolios. The Group’s business lines have
signed on to all collective commitments made by the major financial
institutions, joining business alliances to contribute to carbon
neutrality by 2050. These commitments are supplemented by specific
commitments starting in 2022: a total halt to all project finance
directly linked to the extraction of unconventional hydrocarbons
starting in January 2022; protection of the Arctic region, where we
prohibit all direct financing of oil and gas projects; significant
reduction in our exposure to oil extraction by 20% by 2025; for
investment, by 2025, 100% of Amundi’s open-ended active management
funds, representing €400bn today, will aim to have a better energy
transition rating than their benchmark universe. In addition, the
Group is committed to the financing of renewable energy. Already
one of the world’s leading issuers of green bonds and France’s
leading provider of renewable energy financing, Crédit Agricole
intends to multiply its impact: €20bn committed by 2025, via
Amundi, in funds that will invest in companies that contribute
positively to environmental or social performance (Article 9 SFDR
impact funds). Crédit Agricole also aims to double the production
capacity of renewable energy facilities financed by Crédit Agricole
Assurances to reach 10.5 GW by 2025, i.e. the average energy
consumption of 4 million households. Crédit Agricole CIB’s exposure
to non-carbon energies will increase by 60% by 2025, and the
development of its platform dedicated to advising on and financing
hydrogen projects will accelerate. Other targets include the 50%
growth in the financing of renewable energy projects in France by
2025 by Unifergie, a subsidiary of Crédit Agricole Leasing &
Factoring (1 project out of 3 in France), and making energy
transition a focus of the real estate master plan for Crédit
Agricole Immobilier. Lastly, the Group is making responsible
savings accessible, launching a range of “green” savings books
starting in 2022 and a “green” savings plan starting in 2023.
2. Advising
and supporting 100% of
our customers through their
energy transition, in particular through the Agilauto
offer, which provides access to clean vehicles, or the “J’écorénove
mon logement” offer for homes, or, for the SME and small business
customers of the Regional Banks, the “Objectif Transition
Energétique” platform. In addition, Credit Agricole commits itself
to use its agencies to equip territories with electric vehicle
charging station.
3. The inclusion of
non-financial criteria in 100% of financing for corporate
and farmers.
The second part of this programme plan aims to
strengthen cohesion and social
inclusion through:
4. A range of offers
that ensures no customers are
excluded, to promote social and digital inclusion
and adapt to economic and societal changes, including the
“Living well at home” offer for senior customers, enhanced with a
digital and human-centred offer with simplified diagnostics for
carers and a package of services for carers, and EKO Assurances to
make day-to-day insurance (housing, mobility) accessible to all
without cutting back on the quality of basic coverage.
5. The contribution to
revitalising the most vulnerable areas and
reducing social inequalities by promoting
employment, solidarity, access to goods and services and digital
technology
6. The Group’s commitment to
the integration of young people through employment and
training, through the welcoming and training 50,000 young
people by 2025 in France and abroad, mostly through work-study
programmes and internships
7. Increasing gender
equality and diversity in all Crédit Agricole S.A entities
and within its governance, with a coordinated and global approach
to set an example in our social policies, in particular with the
commitment to reach between 30% and 40% of women among senior
managers by 2025, depending on the Crédit Agricole S.A. entity, or
to train 100% of the Group’s employees and elected representatives
in CSR-related issues.
The third and final part of this programme plan
focuses on successfully achievin
agricultural and
agri-food transitions with:
8. Supporting the development
of farming techniques to create a competitive and
sustainable agri-food system. For this reason, Crédit
Agricole is launching a pan-European private equity and debt fund
with an objective of €1 billion.
9. Enabling
French agriculture to fully
contribute to the fight against climate change. In
this context, starting in 2022, the Group will explore the
usefulness of a French platform for trading carbon credits from
French farms and will support all local projects that contribute to
decarbonising agriculture.
10. Contributing to the
strengthening of food sovereignty by facilitating the
installation of new generations of farmers, deploying green savings
accounts and offering short-channel platforms
Finally, it should be noted that as at 31
December 2021, the energy mix of the energy portfolios of large
corporate financing activities, asset management activities,
investment activities linked to life insurance contracts and SME
and mid-cap financing activities are as follows8 (see page 67 of
the 2020 URD for a methodological explanation of the scope)
- Large corporate
financing activity: coal €348 million, oil
€6,722 million, gas €5,166 million, nuclear €137
million, renewable energy €4,834 million 9.
- Asset management
activity: coal €1,202 million, oil €25,090 million, gas
€11,905 million, nuclear €3,556 million, renewable
energies €3,224 million in connection with market trends and
outstandings10.
- Investments
related to life insurance contracts: fossil fuels
€8,084 million, nuclear €1,525 million, renewable
energies €4,025 million11.
- SME and mid-cap
financing activity: fossil fuels €123 million, renewable
energies €268 million12.
The 2020 and 2019 data have been restated from
the figures published in the Statement of Non-Financial Performance
in the 2020 URD to incorporate the revised process for identifying
energy commitments. These figures obtained via the Greenway
platform are based on a financing scope of €178 billion at end
2021 and an investment scope of €482 billion.
The Group's development
model
The financial targets announced for Crédit
Agricole S.A. as part of the 2022 Medium-Term Plan were achieved in
2021, i.e. one year early:
- Underlying net
income Group share is above the €5 billion target, reaching
€5.4 billion in 2021
- The underlying
cost/income ratio excluding SRF exceeded its 60% target, reaching
57.8% in 2021
- The underlying
RoTE reached 13.1% in 2021, above its target of 11%.
- The fully loaded
CET1 ratio reached 11.9% in 2021, above its steering target of
11%.
- The commitment
to distribute 50% of net income throughout the Medium-Term Plan
will have been met despite the regulatory prohibition on
distributing dividends for 2019. As a result, in 2021, the dividend
is set at €1.05 per share, of which €0.20 for the catch-up on the
undistributed 2019 dividend (out of €0.40).
Moreover, Crédit Agricole SA has demonstrated
agility in managing its capital throughout the Medium-Term Plan,
fully unwinding the switch13, thereby simplifying Crédit Agricole
SA’s capital structure, and devoting a total of €4.3 billion in
2019, 2020 and 2021 to acquisitions14, receiving €2.3 billion over
the same period in disposals15, and signing eight new strategic
partnerships over this period16. The CET1 impact of acquisitions in
2019, 2020 and 2021, net of the impact of disposals over the same
period, is roughly -50 basis points.
As part of the medium-term development of its
business lines, Crédit Agricole SA also confirmed its European
ambitions regarding mobility this year, particularly in the
specialised financial services business line. In December 2021,
Crédit Agricole and Stellantis announced their intention to join
forces in 2023 to create a European leader in long-term leasing.
CACF would become Stellantis’s exclusive long-term leasing partner,
and the purpose of the joint venture would be to manage a fleet of
over one million vehicles by 2026. This exclusive partnership
project between CACF and Stellantis would allow CACF to immediately
become one of the top five long-term leasing players in Europe and
offers additional revenue growth potential in a profitable segment
from which CACF has been largely absent until now. Alongside this
partnership, CACF has also announced its intention to develop a
pan-European multi-brand player in automotive financing, leasing
and mobility, based on the expertise of FCA Bank and Leasys Rent,
which will be wholly owned by CACF in 2023, with a target of €10
billion in outstanding by 2026. This new entity would offer
white-label products and target manufacturers, dealerships,
short-term rental companies and independent direct distribution
platforms. To that end, CACF acquired a stake in Cosmobilis, the
leading French automotive distributor in Europe, investing €100
million. Finally, the long-term rental offer of CACF and CAL&F
for the distribution network of the Group’s retail banks was
structured via the creation of CA Mobility, a joint venture between
CACF and CALF, with a target of 100,000 vehicles by 2026. All of
these operations support the objective of a 15% RoNE for CACF in
2023,17 with an overall neutral CET1 impact for Crédit Agricole
SA.
Group results
In the fourth quarter of
2021, Crédit Agricole Group’s stated
net income Group share reached
€2,354 million versus
€530 million in the
fourth quarter of 2020, a rise of a factor of 4.4.
The specific items recorded this quarter generated
a positive net impact of €44 million on net income
Group share.
The specific items recorded
this quarter included recurring volatile accounting items in
revenues, such as the DVA (Debt Valuation Adjustment, i.e. gains
and losses on financial instruments related to changes in the
Group’s issuer spread) amounting to +€1 million in net income
Group share, hedges on the Large customers loan book for
+€3 million in net income Group share and provisions for
home purchase savings plans in the amount of
+€83 million in net income Group share. In addition to these
recurring items, there were items recognised in CA Italia’s results
for Creval: finalisation of the recording of net badwill for
+€101 million in net income Group share, recording of
off-balance sheet deferred tax assets for +€89 million in net
income Group share, technology infrastructure upgrade and IT
migration costs for Creval, amounting to -€13 million in net
income Group share, and other miscellaneous Creval adjustments for
-€12 million in net income group share. In addition to these
items, there were actions to improve the quality of CA Italia’s
assets, including the impact of the disposal of a gross portfolio
of €1.5bn and additional provisions on CA Italia’s portfolio for
-€180 million in net income Group share, the launch of a Next
Generation HR plan for CA Italia and the associated job protection
plan for -€109 million in net income Group share, the
exceptional contribution by CA Italia to the Italian banks
safeguard plan for - 14 million in net income Group
share, and the “Affrancamento” gains related to exceptional tax
provisions in Italy for the non-accounting revaluation of goodwill
and its amortisation for +€50 million in net income Group
share for CA Italia. Also recognised as specific items were the
Lyxor acquisition costs for -€8 million in net income Group
share in asset management, transformation costs related to the
Turbo project, the Caceis transformation and development plan for
-€12 million in net income Group share in Asset servicing, and
finally the “Affrancamento” gains in Specialised financial services
for AGOS for +€66 million in net income Group share.
Specific items in fourth quarter 2020 amounted
to -€899 million in net income Group share impact and included
the goodwill impairment of CA Italia, with a negative impact of
-€884 million on net income Group share. Also included under
specific items was the reclassification of entities held for sale
(CACF NL, CA Bank Romania) and the ongoing disposal project of the
Private banking activities in Miami and Brazil, for a total de
-€97 million on net income Group share, including on the one
hand -€66 million for CACF NL and -€7 million for CA Bank
Romania, and, on the other hand, -€24 million for Private
banking. Specific items also included exceptional contributions
related to the COVID-19 crisis: CAA's exceptional contribution for
supplementary exceptional Covid-19 healthcare contributions in the
amount of -€15 million in net income Group share and CA
Italia's exceptional contribution to the Italian banks safeguard
plan for -€7 million. Also included under specific items was
the reversal of the provision AGCM (Italian Competition Authority)
addressed to FCA Bank for +€89 million. The impact of the
better fortune adjustment on the activation of Switch 2 was
neutralised at Group level. In addition to these items, there were
recurring accounting volatility items, with a net positive impact
of +€19 million in net income Group share, namely DVA (Debt
Valuation Adjustment, i.e. gains and losses on financial
instruments related to changes in the Group’s issuer spread),
totalling +€13 million, the hedge on the Large customers
loan book amounting to -€21 million, and the variation in the
provision for home purchase savings plans amounting to
+€26 million.
Excluding these specific items, Crédit
Agricole Group’s underlying
net income Group share18 in fourth
quarter 2021 amounted to
€2,311 million, a year-on-year increase of
+61.7%. The quarterly increase in underlying net income Group share
was +€882 million, driven by the quarterly increase in gross
operating income which came in at €475 million, as well as the
positive effect of a lower cost of risk amounting to
+€454 million.
Crédit Agricole Group – Stated and underlying results, Q4-2021
and Q4-2020
€m |
Q4-21stated |
Specific items |
Q4-21underlying |
Q4-20stated |
Specific items |
Q4-20underlying |
∆ Q4/Q4stated |
∆ Q4/Q4underlying |
|
|
|
|
|
|
|
|
|
Revenues |
9,500 |
120 |
9,380 |
8,665 |
5 |
8,660 |
+9.6% |
+8.3% |
Operating
expenses excl. SRF |
(6,109) |
(297) |
(5,812) |
(5,585) |
(18) |
(5,567) |
+9.4% |
+4.4% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross operating income |
3,391 |
(177) |
3,568 |
3,080 |
(13) |
3,093 |
+10.1% |
+15.4% |
Cost of
risk |
(783) |
(319) |
(464) |
(919) |
0 |
(919) |
(14.7%) |
(49.5%) |
Equity-accounted entities |
92 |
- |
92 |
163 |
89 |
74 |
(43.4%) |
+25.0% |
Net income on
other assets |
10 |
- |
10 |
(26) |
- |
(26) |
n.m. |
n.m. |
Change in
value of goodwill |
119 |
119 |
0 |
(965) |
(965) |
- |
n.m. |
n.m. |
Income before tax |
2,829 |
(376) |
3,205 |
1,334 |
(889) |
2,223 |
x 2.1 |
+44.2% |
Tax |
(269) |
438 |
(707) |
(634) |
4 |
(638) |
(57.5%) |
+10.8% |
Net income
from discont'd or held-for-sale ope. |
4 |
- |
4 |
(91) |
(98) |
7 |
n.m. |
(44.7%) |
Net income |
2,564 |
61 |
2,503 |
609 |
(983) |
1,592 |
x 4.2 |
+57.2% |
Non
controlling interests |
(210) |
(18) |
(192) |
(80) |
84 |
(163) |
x 2.6 |
+17.5% |
Net income Group Share |
2,354 |
44 |
2,311 |
530 |
(899) |
1,429 |
x 4.4 |
+61.7% |
Cost/Income ratio excl. SRF (%) |
64.3% |
|
62.0% |
64.5% |
|
64.3% |
-0.2 pp |
-2.3 pp |
In fourth quarter 2021, thanks to steady
momentum across all business lines, underlying
revenues increased by +8.3% compared to fourth quarter
2020 to come in at €9,380 million. On a like-for-like basis19,
underlying revenues were up +7.2% from fourth quarter 2020. The
Asset gathering division posted a decline in revenues of -2.9%
(-€48 million) linked to the prudent management of the
financial margin and the prudent provisioning of technical risks in
insurance, and despite dynamic management fee and commission income
in asset management, linked to favourable market conditions and
dynamic inflows. Revenues for the Large customers division were up
+8.6% from fourth quarter 2020 (+€123 million), with revenues
in capital markets normalising in a context of low customer demand.
This impact was partially offset by strong growth in structured
finance and commercial banking revenues and strong fee and
commission income from transactions in Asset servicing. Revenues
from Specialised financial services grew by +4.9%, with CACF
enjoying an increase in commercial production and insurance
equipment, and CALF from dynamic leasing and factoring activity. In
French retail banking, the Regional Banks recorded revenue growth
of +6.6% compared to fourth quarter 2020, with LCL recording
revenue growth of +3.0%. In International retail banking, CA
Italia recorded strong revenue growth this quarter, mainly due to
the effect of the consolidation of Credito Valtellinese since May
2021 (+21.8%). In addition to this scope effect, revenues were
negatively impacted by the outflow of amounts outstanding (loan
disposals) and pressure on the interest margin and positively by
higher fees on managed savings and amounts outstanding.
International retail banking outside Italy recorded a +10.6%
increase in revenues, driven in particular by the dynamic activity
of CA Poland and CA Ukraine.
Underlying operating expenses excluding
the contribution to the Single Resolution Fund (SRF) stood
at €5,812 million in fourth quarter 2021, a year-on-year rise
of +4.4%. On a like-for-like basis20, underlying operating expenses
excluding SRF were up +3.0% compared to fourth quarter 2020. The
Asset gathering division experienced an expense decrease of -2.4%
due to scope effects (integration of Sabadell AM, creation of
Amundi Bank of China, Fund Channel and Anatec) and accounting
effects (reclassification of La Médicale in IFRS5 following the
signature of the disposal agreement with Generali). Excluding the
scope effect, they were up +3.1% due notably to continued
investments in the development of Amundi Technology. In the Large
customers division, expenses increased by +5.2%, mainly due to IT
investments. Specialised financial services recorded a rise of
+8.9%, in line with activity. The French retail banking division
posted a +1.1% rise in expenses from fourth quarter 2020 to
€2,941 million. The International retail banking division
posted a +29.7% increase in expenses following the integration of
Creval, or stable expenses excluding Creval and excluding
contribution to the Italian Interbank Deposit Protection Fund
(FITD).
Overall, the Group posted an improved
underlying cost/income ratio excluding SRF of
-2.3 percentage points, taking it to 62.0% in fourth
quarter 2021.
Underlying gross operating
income was therefore up +15.4% year-on-year to
€3,568 million. On a like-for-like basis, gross operating
income was up +14.8% from fourth quarter 2020.
The underlying cost of credit
risk, excluding the impact of the disposal of CA Italia
NPL and the complementary provisioning of CA Italia outstandings
(€319 million) was down to -€464 million (of which
-€97 million from the cost of risk on performing loans (Stage
1 and 2), and -€360 million from Stage 3 cost of risk)
compared to -€919 million in fourth quarter 2020, i.e. a
decrease of -49% compared to fourth quarter 2020. Compared to third
quarter 2021, when it stood at -€403 million, it was up by
+15%.
The decline in the cost of risk this quarter was
marked in financing activities (-90% where it amounted to
-€12 million compared to -€121 million in fourth quarter
2020) and at LCL (-39% where it amounted to -€54 million
compared to -€89 million in fourth quarter 2020).
Note that CA Italia’s cost of risk increased by
+4% compared to fourth quarter 2020 and +48% compared to third
quarter 2021 and amounted to -€118 million, due to the
alignment this quarter of Creval’s performing loan provisioning
models with Crédit Agricole Italia’s practices and to additional
provisions linked to NPL disposal.
The cost of risk relative to performing loans
was down significantly by -85% compared to fourth quarter 2020, a
trend related to the evolution of the health crisis, this drop was
particularly marked at the level of CA Italia (a reversal of
+€8 million in fourth quarter 2021 compared to a provision of
-€22 million in fourth quarter 2020) and LCL (a reversal of
+€9 million of cost of risk in fourth quarter 2021 compared to a
+€60 million provision in fourth quarter 2020). The
provisioning for proven cost of risk was up moderately by +8% to
-€360 million in fourth quarter 2021 compared to
-€334 million in fourth quarter 2020, in particular in retail
banking in France (increase of +89% and +77% respectively for
Regional Banks and LCL due to the transfer to Stage 3 of individual
files). In total, the cost of risk for 2021 amounted to
€1,849 million euros and was down by -49% compared to
2020.
The provisioning levels were determined this
quarter taking into account several weighted economic
scenarios. These include a favourable scenario at +6.0% in
2022 and +2.7% in 2023) and a less favourable scenario (French GDP
at +3.0% in 2022 and +0.9% in 2023). Due to macroeconomic
uncertainties that were not taken into account in the economic
scenarios (changes in the health situation, inflation, interest
rate adjustments, etc.), an exceptional additional €88 million
in provisions on performing and deteriorated loans (cost of risk
S1&S2) was recorded this quarter in cost of risk (of which
€44 million for CIB, €17 million for LCL,
€22 million for CACF and €5 million for CALF).
The cost of risk relative to
outstandings21 over four rolling
quarters continued to normalise, reaching 18 basis points
(down -20 basis points from fourth quarter 2020 and down -5 basis
points from third quarter 2021). It
also reached 18 basis points on an
annualised quarterly basis22 (compared to
37 basis points in fourth quarter 2020 and 16 in third quarter
2021).
Asset quality remains very satisfactory: the
doubtful loan ratio was 2.0% at end December 2021 for the Crédit
Agricole Group, down 0.3 percentage points compared to December
2020 and 0.2 percentage points compared to September 2021; and the
coverage ratio improved by +3.6 percentage points compared to
December 2020 and stood at 87.5% at end December 2021. Loan loss
reserves amounted to €18.9 billion at end December 2021, of
which 39% related to performing loans (Stage 1 & 2), compared
to 29% at end 2019, i.e. an increase of €2.0 billion between
end 2019 and end 2021.
Underlying pre-tax income stood at
€3,205 million, a year-on-year increase of +44.2%
compared to fourth quarter 2020. In addition to the changes
explained above, underlying pre-tax income included the
contribution from equity-accounted entities in the amount of
€92 million (up +25.0%, driven by the strong performance of
equity-accounted entities at Amundi and CA Consumer Finance) and
net income on other assets, which stood at €10 million this
quarter versus -€26 million in fourth quarter 2020. The
underlying tax charge was up
+10.8% over the period, driven by the increase in
underlying pre-tax income and offset by an underlying tax rate
of 22.7% — down from fourth quarter 2020 (29.7%). In fact, the tax
rate is never representative on a quarterly basis.
Underlying net income before
non-controlling interests was up +57.2% to
€2,503 million. Non-controlling interests rose +17.5%. Lastly,
underlying net income Group share was
€2,311 million, significantly higher than in fourth quarter
2020 (+61.7%).
Crédit Agricole Group – Stated and underlying results, 2021 and
2020
€m |
2021stated |
Specific items |
2021underlying |
2020stated |
Specific items |
2020underlying |
∆ 2021/2020stated |
∆ 2021/2020underlying |
|
|
|
|
|
|
|
|
|
Revenues |
36,822 |
92 |
36,730 |
33,596 |
(439) |
34,035 |
+9.6% |
+7.9% |
Operating
expenses excl.SRF |
(22,602) |
(347) |
(22,255) |
(21,266) |
(96) |
(21,169) |
+6.3% |
+5.1% |
SRF |
(479) |
185 |
(664) |
(562) |
- |
(562) |
(14.7%) |
+18.2% |
Gross operating income |
13,741 |
(70) |
13,812 |
11,768 |
(536) |
12,304 |
+16.8% |
+12.3% |
Cost of
risk |
(2,193) |
(344) |
(1,849) |
(3,651) |
0 |
(3,651) |
(39.9%) |
(49.4%) |
Equity-accounted entities |
392 |
5 |
387 |
419 |
89 |
330 |
(6.6%) |
+17.3% |
Net income on
other assets |
(27) |
(15) |
(12) |
52 |
- |
52 |
n.m. |
n.m. |
Change in
value of goodwill |
497 |
497 |
0 |
(968) |
(965) |
(3) |
n.m. |
n.m. |
Income before tax |
12,409 |
73 |
12,337 |
7,620 |
(1,411) |
9,031 |
+62.9% |
+36.6% |
Tax |
(2,463) |
616 |
(3,079) |
(2,165) |
152 |
(2,317) |
+13.7% |
+32.9% |
Net income
from discont'd or held-for-sale ope. |
6 |
3 |
3 |
(262) |
(268) |
6 |
n.m. |
(57.0%) |
Net income |
9,953 |
692 |
9,261 |
5,193 |
(1,528) |
6,720 |
+91.7% |
+37.8% |
Non
controlling interests |
(852) |
(104) |
(748) |
(504) |
87 |
(591) |
+69.1% |
+26.6% |
Net income Group Share |
9,101 |
589 |
8,512 |
4,689 |
(1,440) |
6,129 |
+94.1% |
+38.9% |
Cost/Income ratio excl.SRF (%) |
61.4% |
|
60.6% |
63.3% |
|
62.2% |
-1.9 pp |
-1.6 pp |
Over the full year 2021,
stated net income Group share amounted to €9,101 million,
versus €4,689 million for full year 2020, for a stated net
income Group share which increased by +94.1%.
Specific items in full
year 2021 had a positive impact of
+€589 million on stated net income Group
share. In addition to the fourth quarter items already mentioned
above, the items for the first nine months of 2021 had a positive
impact of +€545 million and also corresponded to recurring
accounting volatility items, i.e. the DVA for +€4 million, the
hedging of loan portfolios in Large customers for -€15 million
and the changes in the Home Purchase Savings Plan for
-€7 million as well as the overpayment of contributions to the
SRF for financial years 2016 to 2020 for +€185 million, the
recording of provisional net badwill for Creval for
+€321 million in net income Group share, an additional
provisioning of the performing Creval loans for -€21 million,
Affrancamento gains within the Asset Gathering, International
retail banking and Specialised financial services business lines
for a total of +€116 million, Creval acquisition costs for
-€9 million, Creval integration costs for -€4 million,
the reclassification of Serbia as an asset held for sale for
-€4 million, transformation costs related to the LCL New
Generation Network project, new branch regrouping at LCL and the
Turbo project, Caceis transformation and development plan for a
total of -€20 million, the integration costs of Kas Bank and
S3 by CACEIS for -€2 million and the losses on the wealth
management activities in Miami and Brazil held for sale for
-€1 million within the Wealth management business line.
Specific items from 2020 had an
impact of -€1,440 million on
net income Group share. Compared to
specific items in fourth quarter 2020 already mentioned above,
these items had an impact of -€-541 million on net income
Group share in the first nine months of 2020 and corresponded to
recurring accounting volatility items, i.e. the DVA for
-€5 million, hedges of the Large customers loan book for
+€28 million, changes in the provision for home purchase
savings plans for -€134 million, the integration/acquisition
costs of Kas Bank and S3 by CACEIS for -€6 million, the impact
of COVID-19 solidarity donations for -€225 million and
reclassifications of held-for-sale assets (CACF NL, Bankoa,
Romania) for -€170 million.
Excluding these specific items,
underlying net income Group share
reached €8,512 million, up
+38.9% compared to 2020.
Underlying revenues were
up +7.9% compared to 2020. In addition to a scope
effect of €419 million mainly23 related to the integration of
Creval from second quarter 2021 in International retail banking,
and to the adjustment of CACF NL following its exit from IFRS 5
status24, underlying net banking income grew by +8.7% excluding
scope effect. This increase in revenues is mainly due to the
dynamism of the business lines. More specifically, for the Asset
gathering division, it was due to dynamic management commission
income in asset management, which benefited from both a favourable
market effect and dynamic inflows, as well as prudent management of
the financial margin and prudent provisioning of technical risks in
Insurance; for the Large customers division, a normalisation of
revenues in capital markets offset by strong growth in revenues in
structured finance and commercial banking, as well as a good level
of fees in asset servicing, driven by dynamic activity; for the
Specialised financial services division, dynamic commercial
production in consumer credit, growth in insurance equipment, and a
sustained level of activity in leasing and factoring; for the
retail banking division, growth in the revenues of the Regional
Banks driven by commissions and more favourable refinancing
conditions, balanced growth in LCL’s revenues between interest
margins and fee and commission income, and the dynamism of CA
Italia’s fee and commission income. In the Corporate Centre
division, revenues were up thanks to lower refinancing costs and
volatility factors (such as the impact of inflation on changes in
hedging swaps and, particularly in second and third quarters 2021,
eliminations on intra-group securities underwritten by Predica and
Amundi).
Underlying operating expenses
excluding SRF increased by +5.1% compared to 2020, and by +3.8%
excluding scope effect. The increase in operating expenses both
including and excluding scope effect is less than the increase in
revenues over full-year 2021, thus generating a positive jaw effect
of 2.8 points and 2.9 points respectively. The cost/income ratio
excluding SRF for 2021 is thus 60.6%, down 1.6 percentage points
compared to 2020. The SRF totalled €664 million in 2021, up
18.2% compared to 2020. Note that the refund of an overpayment over
financial years 2016-2020 was accounted for under specific items in
first quarter 2020 for +€185 million. Underlying gross
operating income totalled €13,812 million, up +12.3%
compared to 2020.
Lastly, cost of risk was down
sharply (-49.4%/-€1,802 million, to -€1,849 million
versus -€3,651 million in 2020).
Regional Banks
Regional Bank activity was dynamic in 2021,
with gross customer capture up sharply (+1,218,000
customers since the beginning of the year) and customer base growth
of an additional +226,000 customers. The auto/home/health
insurance25 equipment rate also increased (+1
percentage points compared to end December 2020), reaching 42.7% at
end December 2021. Mobile app use rates26 reached
71.2% and were up +3 percentage points compared to December 2020
(+6.8 percentage points compared to December 2019). Loans
outstanding reached €596 billion at end December 2021 and
increased by +5.8% compared to end December 2020 (including +6.5%
for housing and +7.8% for corporates). On-balance sheet
deposits rose significantly (+7% since end December 2020),
driven by demand deposits (+11.0%) and passbooks (+9.8%), as did
off-balance sheet deposits, which were up +4.8%
since the same period (of which +3.7% in life insurance). As a
result, total customer assets increased by +6.2%
compared to end December 2020 to reach €839.5 billion at end
December 2021.
In fourth quarter 2021,
underlying revenues of the Regional Banks amounted
to €3,596 million, a year-on-year increase of +6.6%. This
increase was driven by fee and commission income (+13.5%), which
was dynamic, especially in insurance and fee and commission income
and account/management payment instruments. Interest revenues were
up compared to fourth quarter 2020 (+0.9%). Operating
expenses excluding SRF held steady at €2,337 million
in fourth quarter 2021 (+1.2% compared to
fourth quarter 2020). Accordingly, there was a favourable
jaws effect (+5.4 percentage points this quarter), and the
underlying cost/income ratio excluding SRF
improved (-3.5 percentage points compared to fourth quarter 2020)
to 65.0% that quarter, and the underlying gross operating
income was up in fourth quarter 2021 by +18.5% compared to
fourth quarter 2020. The cost of risk amounted to
-€130 million27, down -68.7% compared to fourth quarter 2020.
The doubtful loan ratio is lower (1.6% at end December 2021
compared to 1.7% at end December 2020), and the coverage
ratio remained high (103.3% at end December 2021 compared
to 100.9% at end December 2020). The contribution to
taxes was up this quarter compared to fourth
quarter 2020 (+52%). All in all, the contribution of the Regional
Banks to underlying net income Group share reached
€882 million in fourth quarter 2021, up +87.6% compared to the
fourth quarter 2020.
Over full-year
2021, the Regional Banks’ underlying
revenues reached €14,011 million, increasing
+5.9% compared to full-year 2020. Underlying operating
expenses excluding SRF increased by +3.3% compared to
full-year 2020, mainly due to higher employee expenses (notably
profit sharing and the exceptional purchasing power bonus). As a
result, there was a positive jaws effect of 2.6 percentage points
over the year, and the underlying cost/income ratio
excluding SRF improved (-1.6 percentage points compared to
full-year 2020, to 64.1%). Underlying gross operating
income rose sharply (+10.8% compared to full-year 2020).
The underlying cost of risk decreased by -41.9% in
2021 and reached -€606 million. Finally, the contribution of
the Regional Banks to the underlying net income Group
share reached €3,068 million over full-year 2021, up
sharply (+37.6%) compared to full-year 2020.
The performance of the other
Crédit Agricole Group business lines is described in
detail in the section of this press release on
Crédit Agricole S.A.
Crédit Agricole
S.A.
Crédit Agricole S.A.’s Board of Directors, chaired by Dominique
Lefebvre, met on 9 February 2022 to examine the financial
statements for fourth quarter 2021.
Results
Crédit Agricole S.A. – Stated and underlying results, Q4-2021
and Q4-2020
€m |
Q4-21stated |
Specific items |
Q4-21underlying |
Q4-20stated |
Specific items |
Q4-20underlying |
∆ Q4/Q4stated |
∆ Q4/Q4underlying |
|
|
|
|
|
|
|
|
|
Revenues |
5,815 |
36 |
5,779 |
5,251 |
(47) |
5,299 |
+10.7% |
+9.1% |
Operating
expenses excl.SRF |
(3,720) |
(297) |
(3,423) |
(3,226) |
(18) |
(3,208) |
+15.3% |
+6.7% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross
operating income |
2,094 |
(261) |
2,356 |
2,025 |
(65) |
2,090 |
+3.4% |
+12.7% |
Cost of risk |
(647) |
(319) |
(328) |
(538) |
(38) |
(500) |
+20.2% |
(34.5%) |
Equity-accounted
entities |
82 |
- |
82 |
137 |
89 |
47 |
(40.0%) |
+73.9% |
Net income on
other assets |
(9) |
- |
(9) |
(9) |
- |
(9) |
+1.5% |
+1.5% |
Change in value
of goodwill |
119 |
119 |
0 |
(903) |
(903) |
- |
n.m. |
n.m. |
Income
before tax |
1,640 |
(461) |
2,100 |
712 |
(916) |
1,628 |
x 2.3 |
+29.0% |
Tax |
9 |
462 |
(453) |
(436) |
33 |
(469) |
n.m. |
(3.5%) |
Net income from
discont'd or held-for-sale ope. |
4 |
- |
4 |
(96) |
(97) |
1 |
n.m. |
n.m. |
Net
income |
1,652 |
1 |
1,651 |
179 |
(981) |
1,160 |
x 9.2 |
+42.4% |
Non controlling
interests |
(224) |
(8) |
(216) |
(56) |
129 |
(185) |
x 4 |
+16.9% |
Net
income Group Share |
1,428 |
(7) |
1,435 |
124 |
(851) |
975 |
x 11.5 |
+47.2% |
Earnings per
share (€) |
0.46 |
(0.00) |
0.46 |
0.02 |
(0.29) |
0.31 |
x 29.6 |
+48.2% |
Cost/Income ratio excl. SRF (%) |
64.0% |
|
59.2% |
61.4% |
|
60.5% |
+2.5 pp |
-1.3 pp |
In fourth quarter 2021,
Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,428 million, a multiplication by 11.528,
versus €124 million in fourth quarter 2020.
The specific items recorded
this quarter included recurring volatile
accounting items in revenues, such as the DVA (Debt Valuation
Adjustment, i.e. gains and losses on financial instruments related
to changes in the Group’s issuer spread) amounting to
+€1 million in net income Group share, hedges on the
Large customers loan book for €3 million in net income
Group share and provisions for home purchase savings
plans in the amount of +€22 million in net income Group share.
In addition to these recurring items, there were items recognised
in CA Italia’s results for Creval: finalisation of the recording of
net badwill for €90 million in net income Group share,
recording of off-balance sheet deferred tax assets for
€80 million in net income Group share, technology
infrastructure upgrade and IT migration costs for Creval, amounting
to -€12 million in net income Group share, and other
miscellaneous Creval adjustments for -€11 million in net
income group share. In addition to these items, there were actions
to improve the quality of CA Italia’s assets, including the impact
of the disposal of a gross portfolio of €1.5bn and additional
provisions on CA Italia’s portfolio for -€161 million in net
income Group share, the launch of a Next Generation HR plan for CA
Italia and the associated job protection plan for €97 million
in net income Group share, the exceptional contribution by CA
Italia to the Italian banks safeguard plan for -€13 million in
net income Group share, and the “Affrancamento” gains related to
exceptional tax provisions in Italy for the non-accounting
revaluation of goodwill and its amortisation for €45 million
in net income Group share for CA Italia. Also recognised as
specific items were the Lyxor acquisition costs for
-€8 million in net income Group share in asset management,
transformation costs related to the Turbo project, the Caceis
transformation and development plan for -€12 million in net
income Group share in Asset servicing, and finally the
“Affrancamento” gains in Specialised financial services for AGOS
for +€66 million in net income Group share.
Specific items in fourth quarter
2020 amounted to -€851 million in net income Group
share impact and included the goodwill impairment of CA Italia,
with a negative impact of -€778 million on net income Group
share. Also included under specific items was the reclassification
of entities held for sale (CACF NL, CA Bank Romania) and the
ongoing disposal project of the Private banking activities in Miami
and Brazil, for a total de -€96 million on net income Group
share, including on the one hand -€66 million for CACF NL and
-€7 million for CA Bank Romania, and, on the other hand,
-€23 million for Private banking. Specific items also included
exceptional contributions related to the COVID-19 crisis: CAA's
exceptional contribution for supplementary healthcare contributions
in the amount of -€15 million in net income Group share and CA
Italia's exceptional contribution to the Italian banks safeguard
plan for -€6 million. Also included under specific items were
the reversal of the provision AGCM (Italian Competition Authority)
addressed to FCA Bank for +€89 million and the impact of the
claw-back following the activation of Switch 2 (Insurance) for
-€26 million in net income Group share. In addition to these
items, there were recurring accounting volatility items, with a net
negative impact of -€16 million in net income Group share,
namely DVA (Debt Valuation Adjustment, i.e. gains and losses on
financial instruments related to changes in the Group’s issuer
spread), totalling +€13 million, the hedge on the
Large customers loan book amounting to -€20 million, and
the variation in the provision for home purchase savings
plans amounting to -€9 million.
Excluding these specific items, the
underlying net income Group share29 reached
€1,435 million, up sharply by +47.2% compared
to fourth quarter 2020, thanks in particular to dynamic activity in
all businesses, continued positive market effects and a reduction
in the cost of risk.
In fourth quarter 2021, underlying
revenues reached €5,779 million, up +9.1% compared to
fourth quarter 2020, and +7.3% like-for-like30. For the past five
years, Crédit Agricole S.A.’s quarterly revenues have been growing
steadily.
Revenues from the Asset gathering division
(-3.5% compared to fourth quarter 2020 and -1.2% excluding scope
effect31) were down despite dynamic management fees thanks to
sustained inflows and a favourable market effect, against a
backdrop of prudent provisioning of technical risks and prudent
management of the financial margin in insurance. Revenues in Large
customers were up (+8.6% compared to fourth quarter 2020 and +7.6%
excluding scope effect32), with the normalisation of revenues in
capital markets against a backdrop of weak customer demand being
offset by strong growth in revenues in structured finance and
commercial banking and by higher fees in Asset servicing thanks to
dynamic activity. In the Specialised financial services division,
revenues rose sharply (+5.6% compared to fourth quarter 2020, +4.6%
excluding scope effect33). CACF’s revenues benefited from increased
commercial production and insurance equipment, and from the dynamic
activity in Leasing and Factoring. Retail banking revenues
increased (+10.0% compared with fourth quarter 2020, and +2.9%
excluding scope effect34), driven by fee and commission income at
LCL and Crédit Agricole Italia. Corporate Centre revenues grew
strongly compared to fourth quarter 2020, thanks in particular to
the dynamism of private equity revenues (CACIF), and to the impact
of inflation on the valuation of hedging swaps.
Underlying operating expenses excluding
SRF rose (+6.7%) compared to fourth quarter 2020 to
€3,423 million in fourth quarter 2021. On a like-for-like
basis,35 this increase was reduced to +4.3% compared to 2020,
representing an increase in expenses of +€136 million, mainly
driven by the following types of expenses: investments and IT
expenditure, particularly in CIB and Asset management (37% of the
increase; approximately €50 million), variable compensation
and other employee expenses, particularly at LCL and CA Italia (27%
of the increase; approximately €37m), the foreign exchange impact,
particularly in CIB (13% of the increase; approximately
€18 million), taxes, particularly at CA Italia (10% of the
increase; approximately €14 million), and other miscellaneous
expenses consisting of taxes, external expenses and marketing
campaigns, particularly at CACF and LCL (8% of the increase;
approximately €17 million). The cost/income ratio36 excluding
SRF was low at 59.2%, an improvement (-1.3 percentage points)
compared to fourth quarter 2020. The Medium-Term Plan targets were
already reached in Asset gathering (MTP target <48%; Q4-21 at
44.6%; 12M-21 at 45.8%), Large customers (MTP target <57%; Q4-21
at 60.9%; 12M-21 at 57.8%) and LCL (MTP target <66%; Q4-21 at
64.9%; 12M-21 at 62.2%). On a like-for-like basis and35 at current
scope, Crédit Agricole SA recorded a positive jaws effect of +3.0
percentage points and +2.4 percentage points respectively in fourth
quarter 2021. Within the Asset gathering division, operating
expenses excluding SRF were down -2.5% at current scope and up
+3.5% like-for-like37, linked to the increase in expenses in asset
management (+4.4% compared to fourth quarter 2020 at current scope
and +2.4% like-for-like38), which includes continued development
investments, particularly in Amundi Technology, and in the
insurance business line (-25.6% compared to fourth quarter 2020 at
current scope and +1.4% like-for-like39). In the Large customers
division, operating expenses excluding SRF were up +5.2% compared
to fourth quarter 2020 at current scope and +3.6% like-for-like40,
mainly due to IT investments in Corporate and Investment Banking.
The Specialised financial services division saw its expenses
increase by +10.3% compared to fourth quarter 2020 at current scope
and by +8.3% like-for-like41, in line with the increase in
activity. Retail banking’s operating expenses, excluding SRF, were
up 13.8% compared to fourth quarter 2020 at current scope and up
4.4% like-for-like42. The increase was contained at LCL (+0.7%
compared with fourth quarter 2020) and more marked at CA Italia
(+7.2% like-for-like43 compared to fourth quarter 2020), but stable
(+0.7%) excluding the contribution to the Italian guarantee deposit
fund (FITD). Corporate Centre expenses decreased by €9 million
compared to fourth quarter 2020.
Underlying gross operating
income thus rose to €2,356 million, a +12.7% increase
compared to fourth quarter 2021. Excluding scope
effect,35 the increase was +11.8%, demonstrating the strength of
the Universal Customer-focused Banking model with steady revenue
growth and continuously improving operating efficiency over the
past five years. By business line, gross operating income grew
compared to fourth quarter 2020 like-for-like in Large customers
(+14.3%), Specialised Financial Services (+1.0%), and French retail
banking (+7.5%). The Asset gathering (-4.6%) and International
retail banking (-9.5%) divisions saw a decline.
The provisioning levels were determined this
quarter taking into account several weighted economic
scenarios. These include a favourable scenario (French GDP
at +6.0% in 2022 and +2.7% in 2023) and a less favourable scenario
(French GDP at +3.0% in 2022 and +0.9% in 2023). Due to various
uncertainties that were not taken into account in the economic
scenarios (changes in the health situation, inflation, interest
rate adjustments, etc.), an exceptional additional €88 million
in provisions on performing and deteriorated loans (cost of risk
S1&S2) was recorded this quarter in cost of risk (of which
€44 million for CIB, €17 million for LCL,
€22 million for CACF and €5 million for CALF).
The cost of risk was down by
-35% compared to fourth quarter 2020 and up by +23% compared to
third quarter 2021. It amounted to -€328 million versus
-€500 million in fourth quarter 2020 and -€266 million in
third quarter 2021 respectively. It is composed of the
provisioning for performing loans (Stages 1&2) for
-€20 million (versus an addition of -€193 million in
fourth quarter 2020 and -€27 million in
third quarter 2021) and the provisioning for proven risks
(Stage 3) for -€277 million (versus
-€291 million in fourth quarter 2020 and -€234 million in
third quarter 2021). The cost of credit risk relative to
outstandings over a rolling four-quarter period44 was 28 basis
points (down -34 bp compared to fourth quarter 2020 and down -5 bp
compared to third quarter 2021) and 29 basis points on an
annualised quarterly basis45 (down -18 bp compared to fourth
quarter 2020 and up +5 bp compared to third quarter 2021).
As at 31 December 2021, risk indicators were
very strong and confirmed the high quality of
Crédit Agricole S.A.’s assets and risk coverage
level. The diversified loan book is mainly geared towards
home loans (27% of gross outstandings) and corporates (45% of
Crédit Agricole S.A. gross outstandings). The doubtful loan ratio
was still low at 2.5% (down -0.7 percentage point compared to
December 2020), and the coverage ratio46 was high, at 74.7% and up
+3.2 percentage points compared to fourth quarter 2020.
Total loan loss reserves amounted to
€8.9 billion for Crédit Agricole SA at end December 2021 (up
€0.7 billion compared to end December 2020), of which 34%
relate to performing loans (Stage 1 & 2), compared to 22% at
end 2019, an increase of €1.0 billion between end 2019 and end
2021.
By business line, this quarter saw the decrease
of the NPL rate for CA Italia, which amounted to 3.7% at end
December 2021 versus 6.5% at end December 2020. This decrease was
due to the disposal of doubtful loans, mainly in the historical
scope of CA Italia. CA Italia’s coverage ratio increased to 62.0%
at end December 2021 from 60.8% at end December 2020.
The underlying contribution of
equity-accounted entities amounted to
€82 million, up +73.9% compared to fourth
quarter 2020, reflecting the good activity within entities of
consumer finance (€67 million, up +33.4% compared to fourth
quarter 2020) and asset management (€21 million, up +4.7%
compared to fourth quarter 2020).
Net income on other assets
stood at -€9 million in fourth quarter 2021, stable by
comparison at -€9 million in fourth quarter 2020.
Underlying
income47 before tax,
discontinued operations and non-controlling interests was therefore
up +29.0%, at €2,100 million. The
underlying effective tax rate stood at
22.4%(-7.2 percentage points compared to
fourth quarter 2020), while the underlying tax charge
increased -3.5% to -€453 million. Net income
before non-controlling interests was up by +42.4%.
Non-controlling interests stood
at -€216 million in fourth quarter 2021, a +16.9% increase, in
line with the results of the businesses and due to a change in
third quarter 2020 in Insurance in the recognition methods used for
subordinated debt (RT1) coupons, without impact on net earnings per
share.
Underlying
net income Group share was up by +47.2%
compared to fourth quarter 2020 at
€1,435 million.
Underlying earnings per share
in fourth quarter 2021 reached €0.46,
increasing by +48.2% compared to fourth quarter
2020.
The capital position was very
strong with Crédit Agricole SA’s phased-in CET1
ratio at 11.9% (11.6% fully loaded), 4.0
percentage points above SREP. It includes a retained dividend
provision of €1.05 per share for the year48. The completion of the
simplification of the Group’s structure with the unwinding of the
remaining 50% of the Switch was achieved on 16 November 2021.
Crédit Agricole SA from stated to underlying results, 2021 and
2020
€m |
2021stated |
Specific items |
2021underlying |
2020stated |
Specific items |
2020underlying |
∆ 2021/2020stated |
∆ 2021/2020underlying |
|
|
|
|
|
|
|
|
|
Revenues |
22,657 |
7 |
22,651 |
20,500 |
(264) |
20,764 |
+10.5% |
+9.1% |
Operating
expenses excl.SRF |
(13,429) |
(347) |
(13,082) |
(12,452) |
(86) |
(12,366) |
+7.8% |
+5.8% |
SRF |
(392) |
130 |
(522) |
(439) |
- |
(439) |
(10.7%) |
+18.9% |
Gross
operating income |
8,836 |
(210) |
9,047 |
7,609 |
(351) |
7,959 |
+16.1% |
+13.7% |
Cost of risk |
(1,576) |
(344) |
(1,232) |
(2,606) |
0 |
(2,606) |
(39.5%) |
(52.7%) |
Equity-accounted
entities |
373 |
5 |
368 |
413 |
89 |
324 |
(9.7%) |
+13.7% |
Net income on
other assets |
(51) |
(15) |
(36) |
75 |
- |
75 |
n.m. |
n.m. |
Change in value
of goodwill |
497 |
497 |
0 |
(903) |
(903) |
- |
n.m. |
n.m. |
Income
before tax |
8,080 |
(67) |
8,147 |
4,588 |
(1,164) |
5,752 |
+76.1% |
+41.6% |
Tax |
(1,236) |
640 |
(1,876) |
(1,129) |
96 |
(1,225) |
+9.5% |
+53.2% |
Net income from
discont'd or held-for-sale ope. |
5 |
3 |
2 |
(221) |
(221) |
(0) |
n.m. |
n.m. |
Net
income |
6,849 |
577 |
6,273 |
3,238 |
(1,289) |
4,527 |
x 2,1 |
+38.5% |
Non controlling
interests |
(1,005) |
(130) |
(876) |
(546) |
133 |
(679) |
+84.2% |
+29.0% |
Net
income Group Share |
5,844 |
447 |
5,397 |
2,692 |
(1,157) |
3,849 |
x 2,2 |
+40.2% |
Earnings
per share (€) |
1.84 |
0.15 |
1.69 |
- |
(1.20) |
1.20 |
n.m. |
+40.0% |
Cost/Income ratio excl.SRF (%) |
59.3% |
|
57.8% |
60.7% |
|
59.6% |
-1.5 pp |
-1.8 pp |
Over the full year 2021, stated
net income Group share was €5,844 million, compared to
€2,692 million in 2020, i.e. a rise by a factor of 2.2 in
stated net income Group share.
Specific items in full
year 2021 had a positive impact of
+€447 million
on stated net income Group share. In addition to the fourth
quarter items already mentioned above, the items from the first
nine months of 2021 had a positive impact of +€454 million in
net income Group share and also corresponded to recurring
accounting volatility items, i.e. the DVA for +€4 million,
hedges of the Large customers loan book for -€15 million,
changes in provisions for home purchase savings plans for
-€7 million, and the overpayment of contributions to the SRF
for financial years 2016 to 2020 for +€130 million. In
addition to these recurring items, the following specific items for
the first nine months of 2021 were included: the recording of a
provisional net badwill for Creval for +€285 million in net
income Group share, Affrancamento gains within the Asset gathering,
International retail banking and Specialised financial services
business lines for a total of +€106 million, an additional
provisioning of Creval’s performing loans for -€19 million,
transformation costs related to the LCL New Generation Network
project, new branch grouping at LCL and the Turbo project, Caceis
transformation and development plan for a total of
-€20 million, Creval acquisition costs for -€8 million,
the reclassification of Serbia as assets held for sale for
-€4 million, Creval integration costs for -€4 million,
Kas Bank and S3 integration costs by CACEIS for -€2 million
and the disposal plans in Miami and Brazil in Wealth management for
-€2 million.
Excluding these specific items,
underlying net income Group
share reached €5,397 million, up
+40.2% compared to 2020.
Underlying earnings per share stood at
€1.69 per share for full-year 2021, up
+37.4% compared to
full-year 2020.
Underlying49
RoTE, which is calculated on the basis of
underlying net income Group share, net of
Additional Tier 1 coupons (return on equity Group share
excluding intangibles) reached 13.1% for
full-year 2021, an increase from full-year 2020
(9.3%). RoNE (Return on Net Equity) increased this year compared to
2020, in line with the increasing results.
Underlying revenues were
up +9.1% compared to 2020. In addition to a scope
effect of +€419 million mainly50 driven by the integration of
Creval from second quarter 2021 in International Retail Banking,
and to the reintegration of CACF NL following its exit from IFRS 5
status51, underlying revenues grew by +7.1% like-for-like. The
increase in revenues was also due to the dynamism of the business
lines. For the Asset gathering division, dynamic management fee and
commission income benefited from both a favourable market effect
and a dynamic inflow of funds, and the change in insurance revenues
reflected prudent management of the financial margin and prudent
provisioning of technical risks. In the Large customers division,
revenues in capital markets normalised against a backdrop of weak
customer demand, while revenues grew strongly in structured finance
and commercial banking. Fees and commissions were up in Asset
servicing, thanks to dynamic activity. In the Specialised financial
services division, consumer finance revenues were supported by
dynamic commercial production and insurance equipment, and the
level of activity in leasing and factoring was sustained. In Retail
banking, revenues grew by +4.5% at LCL, balanced between interest
margins and fee and commission income, and fee and commission
income grew at CA Italia. In the Corporate Centre division,
revenues were up thanks to lower refinancing costs and volatility
factors (such as the impact of inflation on the valuation of
hedging swaps and, in particular in the second and third quarters
of 2021, eliminations on intra-group securities underwritten by
Predica and Amundi).
Underlying operating expenses
excluding SRF were up by 5.8% in 2021, also including a scope
effect (+€281 million52). On a like-for-like basis, costs grew by
3.5% in 2021, driven by all business lines: Asset gathering
(+5.9%53), Large customers (+4.1%54), Specialised financial
services (5.8%55), and Retail banking (+1.4%56). At a current scope
and on a like-for-like basis, revenue growth in 2021 was higher
than cost growth, generating a positive jaws effect of 3.3 points
and 3.6 points respectively. The underlying cost/income ratio
excluding SRF for 2021 was 57.8%, down -1.8 percentage points
compared to 2020. The SRF for 2021 totalled €522 million, up
18.9% compared to first half 2020. Note that the refund of an
overpayment over financial years 2016–2021 was accounted for €130
million under specific items in the first quarter 2020. Underlying
gross operating income totalled €9,047 million, up +13.7%
compared to 2020.
Lastly, cost of risk was down
sharply (-53%/-€1,375 million), to -€1,232 million versus
-€2,606 million in 2020.
The decrease was pronounced at the level of the
provisions for performing loans (Stage 1 and 2) at -81%, and was
due to a normalisation of the cost of risk throughout 2021 due to
the decrease in uncertainties and the favourable evolution of the
health situation, as shown by the improvement of the macro-economic
scenario in Q4-21.
The addition of -€1,232 million in cost of risk
over the year 2021 is composed into provisions for performing loans
(Stage 1 and 2) for -€155 million (compared to an addition of -€817
million in 2020) and provisioning for proven risks (Stage 3) for
-€993 million (compared to -€1,765 million in 2020).
The decline in the cost of risk is noticeable in
all of Crédit Agricole S.A.’s business lines. LCL’s cost of risk is
-€222 million in 2021, down -43% compared to 2020, with a cost of
risk on rolling outstandings of 15 basis points at the end of
December 2021; CA Italia’s cost of risk was -€347 million in 2021,
down -19% compared to 2020, with a cost of risk on rolling
outstandings of 63 basis points at the end of December 2021; CACF’s
cost of risk is -€445 million in 2021, down -30% compared to 2020,
with a cost of risk on outstandings of 128 basis points at the end
of December 2021; finally, in Financing activities, the cost of
risk for 2021 is -€74 million, down -91% compared to 2020, with a
cost of risk on rolling outstandings of 6 basis points at the end
of December 2021.
The underlying contribution from
equity-accounted entities was up +13.7% to €368
million, with Specialised Financial Services partnerships being the
main contributors.
Net income on other assets
stood at -€36 million in 2021 compared to +€75 million in 2020.
This contribution was mainly from the deconsolidation of CACIB’s
Algerian subsidiary.
Underlying income before tax,
discontinued operations and non-controlling interests was therefore
up +41.7%, at €8,148 million.
The tax charge was €1,876 million, up +53.2%,
with an underlying effective tax rate of
24.1%, up +1.6 percentage points compared to 2020.
Underlying net income before non-controlling interests
was therefore up by +38.5%.
Non-controlling interests
amounted to -€876 million in 2021, up +29.0% in line with the
increase in underlying income before tax, discontinued operations
and non-controlling interests. Underlying net income
Group share increased by +40.1% to
€5,394 million.
Analysis of the activity and the results of Crédit
Agricole S.A.’s divisions and business lines
Asset gathering
The business line’s assets under management
stood at €2,582 billion at the end of December 2021, up 11.3%
from end September 2020. Of the increase of €261 billion
compared to the end of September 2021, +€147.9 billion were related
to a scope effect (of which +€148 billion were related to the
consolidation of Lyxor assets following the completion of the
acquisition announced on 31 December 2021, and -€0.1 billion due to
the exit of the Miami and Brazil activities in Wealth management),
net inflows increased by +€69.0 billion, of which +€65.6 billion in
Asset management, +€2.3 billion in Life insurance, and +€1.1
billion in Wealth management, and market and foreign exchange
impact accounted for an increase of +€44.5 billion. Excluding scope
effect, assets under management were up 4.9% from end September
2021 and 9.7% from end December 2020.
In savings/retirement, activity
was dynamic and Crédit Agricole Assurances continued its commercial
expansion and diversification in France and internationally.
Premium income was up by +23.0% compared to fourth quarter 2020.
Net inflows in fourth quarter 2021 were positive
(+€2.3 billion), with positive net inflows in euros contracts
(+€0.3 billion). Net UL inflows totalled €2.0 billion
(i.e. an increase of +57.8% from fourth quarter 2020). The share of
unit linked products in total gross inflows hit a level of 42.0%,
this quarter, i.e. +5.8 percentage points compared to fourth
quarter 2020.
Assets (savings, retirement and death and
disability) stood at €323.0 billion, up +4.8% from December
2020 and up +1.5% from September 2021. Unit-linked outstandings
reached a new all-time high of €86.6 billion this quarter,
with the share of unit-linked products in outstandings totalling
26.8%, up +2.6 percentage points compared with December
2020.
Lastly, the Policy Participation Reserve (PPE57)
increased over the year to €13.1 billion at 31 December 2021,
which was 6.3% of total euro outstandings. The average yield58 of
the Crédit Agricole Assurances group’s assets was 2.26% in 2021
(2.13% at end 2020), well above even the average guaranteed minimum
rate (0.16% at end 2021, compared to 0.20%59 at end 2020) and the
profit sharing rate of euro-denominated policies of 1.28% at the
end of 2021, stable compared to the end of 2020.
In property and casualty
insurance, business was strong in fourth quarter 2021,
with growth of +5.1% in premium income compared to fourth quarter
2020. The number of property and casualty insurance policies in the
Crédit Agricole Assurances portfolio reached 15.2 million at
end December 2021, up +3.9% over one year, i.e. an increase of more
than 568,000 policies in the twelve months of 2021. Growth in the
property and casualty insurance business was driven by traditional
activities (home, legal protection, personal accident insurance,
car) and was also boosted by launches, in France, of corporate
offerings (corporate property and casualty insurance and
professional multi-risk) and a new auto insurance policy with an
inclusive offer, EKO for the Regional Banks and PRIMO for LCL.
Finally, on 1 January 2022, the transfer of 10 million assistance
contracts to Europ Assistance France was successfully completed.
The combined ratio60 remained under control at 96.4%.
In death & disability/creditor/group
insurance, premium income stood at €1.2 billion, an
increase of +7.7% this quarter compared to fourth quarter 2020,
with a positive contribution from the three business lines (death
& disability, creditor and group insurance). The performance of
the new "Mon Assurance Décès" death & disability insurance
offer was good, with over 100,000 new policies since end June
2021.
In addition, on 1 February 2022, Crédit Agricole
Assurances signed an agreement with Generali for the sale of La
Médicale, which resulted in its accounting being reclassified under
IFRS 5 in the fourth quarter of 2021. The positive impact on Crédit
Agricole Assurances’ net income Group share at the time of the
sale, expected by the end of 2022, will be more than €100
million.
Asset Management (Amundi)
recorded a 14.0% increase in assets under management this quarter
compared to end September 2021 (+19.4% year-on-year since end
December 2020), i.e. €2,064 billion at end December 2021. The
increase was mainly due to the consolidation of Lyxor assets (+€148
billion), positive market effects (+€39.1 billion) and strong net
inflows in all customer segments (+€65.6 billion).
Over the year 2021, net MLT inflows excluding
JVs reached a record level of €75.5 billion, driven by active
management. In fourth quarter 2021, Amundi posted net MLT inflows
excluding joint ventures of +€29.0 billion, driven by active
management (+€20.0 billion). The good level of activity in
Retail continued, with net MLT inflows excluding JVs in this
customer segment standing at +€16.3 billion. The Institutional
segment also recorded solid MLT inflows at €12.7 billion.
Treasury products recorded sustained net inflows of
+€11.1 billion in both customer segments. Inflows in joint
ventures were positive at +€25.5 billion, driven by China and
India.
Excluding the scope effect related to the
consolidation of Lyxor assets as at 31 December 2021, assets under
management were up +5.8% compared to end September 2021 (+10.8%
year-on-year since end December 2020). In Asia, continued
development enabled the level of assets under management to reach
€369 billion at end December 2021, compared to €298 billion at end
December 2020, with a target of €500 billion by 2025.
In addition, following the completion of
Amundi’s acquisition of Lyxor from Société Générale on 31 December
2021, Amundi has set a passive asset management target of around
€420 billion by 2025.
In Wealth management, assets
under management grew during the quarter to €135 billion at end
December 2021, an increase of +2.7%61 excluding the scope effect
over the quarter since end September 2021 (+2.6% at current scope)
and an increase of +7.9%61 over one year excluding the scope effect
(+5.2% at current scope), driven in particular by strong net
inflows, which amounted to +€1.1 billion in fourth quarter
2021.
The Asset gathering (AG)
business line posted underlying net income Group
share of €610 million in fourth quarter 2021, up
+18.8% from fourth quarter 2020, driven by growth in the
contribution of all businesses.
The Asset Gathering (AG) business line posted
underlying net income Group share of €2,348 million
in 2021, up +24.9% from 2020.
The business line contributed by 40% to the
underlying net income Group share of the
Crédit Agricole S.A. core businesses (excluding Corporate
Centre division) over 2021 and 29% of the underlying revenues of
Crédit Agricole S.A.’s business lines. (excluding the Corporate
Centre division).
As at 31 December 2021, own funds allocated to
the business line amounted to €12.9 billion, including
€11.2 billion for Insurance, €1.2 billion for Asset
management, and €0.4 billion for Wealth management. The
business line’s risk weighted assets amounted to
€64.3 billion, including €46.7 billion for Insurance,
€12.9 billion for Asset management and €4.7 billion for
Wealth management.
The underlying RoNE (Return on Normalised
Equity) stand at 24.4% for full year 2021, versus 22.5% for full
year 2020.
Insurance
Underlying revenues for the insurance activity
stood at €602 million in fourth quarter 2021, down
-18.0%62 over one year. The quarter’s buoyant financial revenues
combined with a low level of corporate income tax enabled Crédit
Agricole Assurances to pursue a prudent policy of managing its
financial margin and to make prudent provisions for technical
risks. Compared to fourth quarter 2020, insurance revenues
nevertheless benefited from €30 million related to the unwinding of
the remaining 65% of the Switch mechanism implemented by 15% on 1
March 2021 and by 50% on 16 November 2021. Underlying expenses were
down -25.6%62 in fourth quarter 2021 compared to fourth quarter
2020. Excluding taxes, the reduction in expenses was -24.7%63 due
to investments for the development of the activity and the increase
in staff costs. As a result, underlying gross operating income was
down -15.6% to €469 million in fourth quarter 2021. The
underlying cost/income ratio in fourth quarter 2021 stood at 22.2%,
a decrease of -2.2 percentage points compared to fourth
quarter 2020. The tax charge decreased by -61.4% to
€79 million compared to fourth quarter 2020 which included
non-deductible additions to provisions. The underlying net income
Group share showed an increase of +16.0%, taking into account in
non-controlling interests the change in the recognition methods
used for RT1 subordinated debt coupons (-€19 million in
accrued interest, with no impact on net earnings per share).
Underlying revenues for the year 2021 reached
€2,550 million, down slightly by -0.2%62, as a result of a prudent
policy of managing the financial margin, which enabled the PPE to
be endowed with +€1.6 billion in 2021. Costs decreased by -5.2%62,
resulting in an improvement in the cost/income ratio excluding SRF
of 1.5 percentage points, which thus reached 28.3% in 2021.
Underlying gross operating income thus increased by +1.9%. Finally,
the tax charge for the year 2021 decreased by -32.2% compared to
2020, due to a base effect in 2020, the decrease in the normative
tax rate in France, and the reduced-tax disposal of securities in
2021. As a result, net income Group share reached
€1,406 million, a sharp increase of +16.5% compared to
2020.
Crédit Agricole Assurances also demonstrated its
solidity and resilience with a Solvency 2 regulatory prudential
ratio still high at 244% at 31 December 2021.
Asset management
Underlying revenues totalled €777 million
in fourth quarter 2021, up +9.1% from fourth quarter 2020 at
current scope and +8.0% on a like-for-like basis64. Net management
revenues were up +10.3% compared to fourth quarter 2020, driven by
net management fees, which rose by +15.7%, benefiting from the
strong inflow of funds into active management. Performance fees
began to normalise, amounting to €70 million in fourth quarter 2021
(after €90 million in third quarter 2021). Underlying operating
expenses amounted to €395 million, up +4.4% compared to fourth
quarter 2020 at current scope and +2.4% on a like-for-like basis64.
This increase, which was kept under control, can be explained by
continued investment in development, particularly at Amundi
Technology. Underlying gross operating income was thus up a +14.3%
and the underlying cost/income ratio excluding SRF stood at 50.9%,
down -2.3 percentage points compared to fourth quarter 2020.
The contribution of equity-accounted entities, comprising in
particular income from Amundi’s joint ventures in Asia, was up
+4.7% from fourth quarter 2020 and totalled €21 million. The
underlying tax charge worked out at €92 million, a +9.3%
increase. Lastly, underlying net income Group share was up by
+16.2% to €210 million.
In 2021, underlying revenues increased by +24.3%
at current scope and +22.3% on a like-for-like basis65 due to
positive market conditions, net management fees which increased by
+14.5% compared to 2020, and performance fees which amounted to
+€427 million for the year compared to €200 million in 2020.
Underlying operating expenses excluding SRF were up +14.2% at
current scope and +11.0% on a like-for-like basis65 due to the
increase in variable compensation, higher development capex, mostly
for Amundi Technology, and a scope effect of €44 million over
the year. The underlying cost/income ratio excluding SRF was very
low at 49.8%, an improvement of -4.4 percentage points
compared to 2020. Gross operating income rose by +36.4% compared to
2020, with a positive jaws effect of +10.1 percentage points. The
net income of equity-accounted entities increased by +27.7%.
Lastly, net income Group share for 2021 reached a record level of
€839 million, up +39.7%.
Wealth management
Underlying revenues were strong at
€229 million in fourth quarter 2021, up +4.4% compared to
fourth quarter 2020. Underlying expenses excluding SFR rose, albeit
under control (+6.1%) despite IT investments, and reached €188
million. Accordingly, underlying gross operating income fell
slightly year-on-year by -2.7% while the underlying cost/income
ratio excluding the SRF stood at 82.0% in fourth quarter 2021. The
cost of risk fell sharply to €0.03 million in fourth quarter 2021
compared to €21 million in fourth quarter 2020. As a result,
underlying net income Group share was up sharply, increasing by a
factor of 2.1 compared to fourth quarter 2020, reaching €32 million
in fourth quarter 2021.
In 2021, underlying revenues were up +2.6%
compared to 2020. Costs excluding SRF were up +0.9%. Gross
operating income was therefore up +12.7% to €134 million.
After cost of risk (€5 million over the year) tax and
non-controlling interests, net income Group share thus improved by
+43.9% to reach €103 million over the full year. Note that the
recognition this year of -€1 million in revenues,
-€2 million in costs and €5 million from discontinued
operations, representing a total net impact after tax of
€2 million in specific items this half had an impact on net
income Group share. These gains are related to the contribution of
the Miami and Brazil entities that are held for sale.
Large customers
Activity for the whole Corporate and
Investment banking (CIB) business line was buoyant in
fourth quarter 2021, thanks in particular to a good performance in
Financing activities, and despite the normalisation of revenues in
capital markets, in a context of weak customer demand.
Underlying revenues thus remain high at €1,251
million (i.e. +8.1% compared to fourth quarter 2020).
Financing activities performed very well, with
revenues at €750 million, up significantly by +22.5% in fourth
quarter 2021 compared to fourth quarter 2020 and by +19.3% at
constant exchange rates. This very good revenue level was also
driven by Structured Finance activity (+24.3% versus fourth quarter
2020) and Commercial Banking (+20.9% versus fourth quarter 2020),
in particular thanks to the continued strong development of
International Trade & Transaction Banking (ITB). Crédit
Agricole CIB remains the leader in syndicated loans (# 3 in the
EMEA66 zone and # 1 in France67). Capital markets and
investment banking revenues amounted to €501 million, down
-8.0% compared to fourth quarter 2020 and -10.1% at constant
exchange rates, due to the slowdown in FICC activities (-11.8%
compared to fourth quarter 2020) penalised by a low level of
customer demand, partially offset by the Securitisation activity
and by strong activity in Investment banking (+15.1% in fourth
quarter 2021 compared to fourth quarter 2020). Regulatory average
VaR was also down to €6.4 million in fourth quarter
2021, compared to €10.9 million in fourth quarter 2020. In a
normalising market, Credit Agricole CIB confirmed its leading
positions in bond issuances (#4 in Green, Social & Sustainable
bonds All currencies68, #5 in All bonds in Euro worldwide69 and #8
in All Corporate bonds in Euro worldwide70 ).
Asset servicing (CACEIS)
recorded a good level of activity in fourth quarter 2021.
Assets under custody recorded strong momentum,
totalling €4,581 billion at end December 2021, up +9.1%
from end December 2020. Assets under
administration also recorded an increase, rising +10.6%
year-on-year71 to €2,405 billion at end December 2021.
This upward trend can be explained by both a volume effect and a
positive market effect. Transaction flows were also dynamic.
In fourth quarter 2021, underlying
revenues of the Large customers division reached €1,562
million, up +8.6% compared to fourth quarter 2020, driven by strong
activity. Underlying operating expenses excluding
SRF amounted to €952 million, up +5.2% compared to fourth
quarter 2020, mainly due to IT investments in Corporate and
Investment banking. There was therefore a positive jaws effect on
Corporate and Investment banking (+3.3 percentage points). It also
applies for Asset Servicing (+4.1 percentage points). The
underlying cost/income ratio excluding SRF of the Large Customers
division stood at 60.9%, an improvement of
2.0 percentage points compared to fourth quarter 2020.
Thus, gross operating income increased by +14.3%. The division
recorded an overall net provision for cost of risk of
-€1 million in fourth quarter 2021, compared to a provision of
-€111 million in fourth quarter 2020. Pre-tax income was up
sharply by +43.8% in fourth quarter 2021 versus fourth quarter
2020, to reach €611 million. The tax charge amounted to -€163
million, multiplied by 2.6 over the same period, mainly due to a
tax base effect (linked to the increase in the taxable base under
the effect of the growth in revenues and the sharp drop in the cost
of risk) and to a different breakdown of pre-tax profits by
country. Consequently, net income Group share rose by +23.5% in
fourth quarter 2021 to stand at €418 million.
For 2021, the underlying
revenues of the Large customers division amounted
to €6,331 million, an increase of +0.9% compared to 2020, against a
normalisation backdrop of revenues in capital markets throughout
the year and very strong activity in financing activities.
Operating expenses excluding SRF increased to
€3,658 million, up +4.4% compared to 2020, in support of the
development of the business lines. Costs related to
SRF were €328 million, up +26.2% compared
to 2020. Therefore, gross operating income amounted €2,345
million for 2021, representing a decrease of -6.6% compared to
2020. The cost/income ratio excluding
SRF was up 1.9 percentage point compared to 2020, but
remained low at 57.8%. The cost of risk decreased in 2021, with a
net provision of -€39 million compared to a provision of -€829
million in 2020, in the context of the health crisis. The business
line’s contribution to underlying net income Group
share was at €1,644 million, up +24.0% compared to
2020.
The business line contributed 28% to the
underlying net income Group share of
Crédit Agricole S.A.'s core businesses (excluding the
Corporate Centre division) over 2021 and 28% to underlying
revenues excluding the Corporate Centre division.
At 31 December 2021, the capital
allocated to the division business line was
€12.6 billion and risk weighted assets were
€132.2 billion.
The business line’s underlying
RoNE (Return on Normalised Equity) stood at 13.1%
for the full year 2021 (versus 10.7% for 2020).
Corporate and Investment
banking
In fourth quarter 2021, the
underlying revenues of Corporate and Investment
banking amounted to €1,251 million, up +8.1% compared to fourth
quarter 2020, thanks to the complementary nature of its business
model. Financing activities registered a strong level of revenues
(at €750 million, up +22.5% compared to fourth quarter 2020), while
revenues in capital markets were normalising (at €501 million, down
-8.0% compared to fourth quarter 2020), against a backdrop of lower
customer demand. Underlying operating expenses
excluding SRF were up +4.8% this quarter compared
to fourth quarter 2020 to stand at -€720 million. This was
related to investments in IT projects to support business growth.
The cost/income ratio excluding SRF rose to 57.5%,
an improvement of 1.8 percentage point compared to fourth
quarter 2020. As a result, gross operating income
amounted to €531 million, up +12.9% compared to fourth quarter
2020. The cost of risk recorded a net provision of
-€2 million compared to a provision of -€108 million in fourth
quarter 2020. This decrease in provisions was mainly due to lower
provisioning for performing loans in Financing activities (Stages 1
& 2 net provision of €5 million in fourth quarter 2021 against
provisions for -€52 million in fourth quarter 2020), notably due to
the improvement in the medium-term economic forecasts. Lastly,
pre-tax income in fourth quarter 2021 stood at
€530 million, up +46.2%. The tax charge amounted to -€148 million,
multiplied by 2.8 compared to fourth quarter 2020 due to the
significant increase in the taxable base (increase in revenues and
the sharp drop in the cost of risk) and a different breakdown of
pre-tax profits by country). In the end, the underlying net income
Group share of Corporate and Investment banking amounted to €373
million in fourth quarter 2021, up +23.1% compared to fourth
quarter of 2020.
Risk weighted assets at the end of
December 2021 amounted to €122.9 billion, down by -€0.3
billion compared to the end of September 2021.
The underlying revenues of
Corporate and Investment banking for 2021 increased slightly by
+0.1% (up +0.9% at constant exchange rates) compared to 2020 to
reach -€5,152 million. The positive performance of financing
activities (+9.2% compared to 2020), notably for structured
financing activities (+12.0% compared to 2020) offset the decline
in capital markets and investment banking revenues (-8.8% compared
to 2020) in a context of lower customer demand. Underlying costs
excluding SRF increased by +4.6%, linked to the
impact of strong activity on remuneration, and IT investments,
while the contribution to the SFR recorded a significant increase
of +27.3% in 2021 compared to 2020, to reach €295 million.
Therefore, underlying gross operating income at
€2,085 million was down (-8.0% compared to 2020), but the level of
the underlying cost/income ratio remained low
(53.8% versus 51.5% in 2020). Finally, the cost of risk recorded a
provision of -€47 million for 2021, compared to
-€824 million for 2020. All in all, the business line’s
contribution to underlying net income Group share
rose sharply by +25.6% to €1,501 million.
Asset servicing
In fourth quarter 2021, underlying
revenues recorded the best performance of the
year, amounting to €311 million, up +10.6%72 compared to fourth
quarter 2020. Business was strong, with assets under custody
increasing by +9.1% over the year, assets under administration by
+10.6%73 and flow activities remaining at a high level. The
increase in revenues was driven by higher fee and commission income
on flows and a positive market effect. Underlying operating
expenses excluding SRF and costs related to the Turbo
project74 increased (+6.5%) compared to fourth quarter 2020, coming
in at €232 million75. Underlying gross operating
income thus increased substantially, rising +24.9% to
€79 million. The underlying cost/income ratio
excluding SRF stood at 74.7% in fourth quarter 2021, down
-2.9 percentage points compared to fourth quarter 2020.
After the €21 million share of non-controlling interests, the
business line’s contribution to underlying net income Group
share rose +27.2% compared to fourth quarter 2020 to
€45 million.
Underlying revenues for 2021 were up +4.5%76
compared to 2020, driven by good fee and commission income and
despite pressure on the interest margin in the first half of 2021.
Underlying expenses excluding SRF were up +3.7%77,
driven by the growth in business and the recognition of KAS Bank’s
residual integration costs during second quarter 2021, whereas SRF
expenses were up sharply by +16.6%. Thus, underlying gross
operating income was up 5.9% compared to 2020. The
underlying cost/income ratio was down slightly by
0.6 percentage point, reaching 75.1% in 2021. In the end, the
contribution of the business line to net income Group
share in 2021 was €143 million, representing a 9.4%
increase compared to 31 December 2020.
Specialised financial services
The Specialised financial services
business line recorded a strong performance across all
businesses this quarter. Commercial production was indeed strong in
consumer finance, as well as in leasing and factoring.
In addition, this quarter was marked by the
announcement of several initiatives that will lead to future growth
for the Group: the announcement of the creation, in 2023 by CACF
and Stellantis as a 50%/50% JV, of a pan-European multi-brand
leader in long-term rentals, serving all Stellantis brands. The
objective is to reach a fleet of one million vehicles by 2026. CACF
has also announced its intention to expand in Europe in the area of
car financing, via FCA Bank, which will be wholly owned by 2023.
This multi-brand player will target manufacturers, dealers and
short-term rental companies and independent direct distribution
platforms. The objective is to reach €10 billion in assets by 2026,
to which CACF’s investment of €100 million in Cosmobilis to finance
new forms of mobility will contribute. These initiatives were in
addition to the launch, in the third quarter of 2021, of CA
Mobility, a joint offer between CACF and CAL&F of long-term car
leasing distributed through long channel, short channel and to
Group’s retail banks clients (Regional Banks and LCL). The
objective is to reach a fleet of 100,000 vehicles by 2026. All
these initiatives support CACF’s objective of achieving a 15%
return on normative equity (RoNE) by 2023, and reflect our strong
ambitions in Europe in terms of mobility. The impact of the
transactions on Crédit Agricole SA’s CET1 was neutral. In addition
to these initiatives, CAL&F acquired Olinn in the fourth
quarter of 2021 to expand its offer to professional equipment
management services, and CAL&F launched a leasing business in
Germany through the creation of a Vendoramed marketplace in the
third quarter of 2021. The impact of the Olinn acquisition on
Crédit Agricole S.A.’s CET1 ratio was -6 basis points in Q4
2021.
Crédit Agricole Consumer Finance’s (CACF)
commercial production increased in the fourth
quarter of 2021 compared to the third quarter of 2021 (+6% on a
like-for-like basis78) and the fourth quarter of 2020 (+1% on a
like-for-like basis78). In France and internationally, activity was
strong (production up by +6% and 16%79 respectively compared to the
fourth quarter of 2020.) Despite an automotive market affected by
the shortage of electronic components, production of automotive JVs
was notably up this quarter (+4% compared to third quarter 2021;
but -12% compared to fourth quarter 2020). Assets under
management at CACF totalled €92.5 billion at end
December 2021. They were up +1.8% from end December 2020 and +0.5%
from end December 2019. The increase in assets was driven by
international business79 (+4.1% compared to end December 2020) and
by business with the Crédit Agricole Group (+4.6% compared to end
December 2020). Assets related to automotive partnerships were up
by +3.1% compared to third quarter 2021.
At Crédit Agricole Leasing and Factoring
(CAL&F), commercial leasing production was up significantly
this quarter at +57.4% compared to third quarter 2021 and +25.8%
compared to fourth quarter 2020. Over the year 2021, the increase
in leasing production was also significant at +20% compared to the
same period in 2020. Commercial factoring production increased by
+29.3% in fourth quarter 2021 compared to fourth quarter 2020,
thanks in particular to strong activity in Germany, and
factored revenues were up by +24.1% compared to
fourth quarter 2020, thanks to the increase in the financed quota.
Outstanding leasing reached €16.1 billion at
end December 2021 (of which €13 billion in France and
€3.2 billion abroad), i.e. an increase of +4% compared to end
December 2020.
Income in Specialised financial
services was up in fourth quarter 2021, by +7.1%78
compared to fourth quarter 2020, thanks in particular to strong
commercial activity. Underlying revenues of Specialised financial
services excluding CACF NL were up +4.6% compared to fourth quarter
2020, driven both by strong revenues for CACF (+4.2% excluding CACF
NL) and CAL&F (+5.7%). Underlying costs excluding CACF NL were
up +8.3% (8.8% for CACF and 6.9% for CALF), in line with the
increase in activity. Gross operating income excluding CACF NL was
up +1% compared to fourth quarter 2020, and the underlying
cost/income ratio excluding SRF on a like-for-like
basis remained low at 50.5% (up +1.8 percentage points compared to
fourth quarter 2020). Cost of
risk78 decreased compared to fourth
quarter 2020 (-13.6%). As a result, in fourth quarter 2021, the
division’s underlying net income Group share,
excluding CACF NL, reached €177 million, an increase of +7.1%
compared to fourth quarter 2020.
In 2021, underlying revenues
increased by +5.0%, driven by the excellent performance of
CAL&F (+12.2% compared to 2020) and the increasing revenues of
CACF (+3.1% compared to 2020, excluding CACF NL). Underlying costs
excluding SRF increased by +5.8% compared to 2020, in line with the
strong activity. The underlying cost/income ratio excluding SRF was
stable at 50.5% (+0.3 percentage point below the cost/income
ratio excluding SRF of 2020). The cost of risk decreased by
-30.6%78, after the year 2020 was marked by strong provisions for
performing loans in the context of the crisis. The underlying
contribution of equity-accounted entities was up +18.8%, thanks to
the good performance of FCA Bank during 2021. At constant scope,
net income Group
share was therefore up 22.5% at €740 million.
The business line contributed 13% to the
underlying net income Group share of
Crédit Agricole S.A.'s core businesses. (excluding
Corporate Centre division) over the year and 12% to
underlying revenues excluding Corporate Centre
division.
At 31 December 2021, the capital
allocated to the Specialised financial services business
line was €5.1 billion and risk weighted
assets were €53.7 billion.
The division’s underlying RoNE
(Return on Normalised Equity) stood at 15.2% over 2021 (versus
11.7% for 2020).
Consumer finance
In fourth quarter 2021, CACF’s
underlying revenues on a like-for-like basis
reached €523 million, up +4.2% compared to fourth quarter
2020, benefiting from dynamic activity in France and
internationally and the increase of insurance revenues. CACF’s
underlying costs on a like-for-like basis
increased by +8.8%, in line with the evolution of the business and
the full consolidation of CACF Spain (SoYou)80 (for an effect of
€4,3 million, the increase in CACF's costs excluding this effect
would be 7.1%). As a result, underlying gross operating
income on a like-for-like basis remained stable compared
to fourth quarter 2020 and the underlying
cost/income ratio excluding SRF remained low on a
like-for-like basis at 50.2% (+2.1% percentage points compared to
fourth quarter 2020 on like-for-like basis). The
contribution of equity-accounted entities was
excellent and reached €79 million in third quarter 2021 (+33%
underlying compared to third quarter 2020). The cost of
risk on a like-for-like basis was low at -€118 million and
down compared to fourth quarter 2020 (-8.3%), in line with the
improved economic scenario. The cost of credit risk
relative to outstandings81 over a rolling four-quarter
period was 128 basis points. The non performing loans
ratio is at 5.5%, down -0.6 percentage point compared
to end June 2021, and the coverage ratio reached 85.2%, up
2.4 percentage points compared to end June 2021. All in all,
underlying net income Group share 2021,
excluding CACF NL, totalled €137 million in fourth
quarter 2021, up +6.4% compared to fourth quarter 2020.
For the year 2021 as a whole, the income on a
like-for-like basis significantly improved at +18.3% compared to
2020. Indeed, the underlying revenues excluding
CACF NL was up by +3.1% compared to 2020, in connection with strong
activity and insurance revenues. Costs excluding SRF were up +5.1%,
in line with the level of activity and the full consolidation of
SoYou, and the underlying cost/income ratio excluding
SRF remained low at 49.9%, stable compared to 2020
(49.0%). Underlying gross operating income was also up +1.3%
compared to 2020. The cost of risk decreased by -29.6%78 compared
to 2020, despite the maintenance of prudent provisions for
performing loans. The underlying contribution from
equity-accounted entities performed well, up
+18.8%, mainly due to strong activity at Gac Sofinco and Wafasalaf.
Overall, the business line’s contribution to underlying net
income Group share on a like-for-like basis was up
+18.3%.
The CACF business’s contribution to the
net income Group share of Crédit Agricole S.A.
over 2021 was 10%.
Leasing & Factoring
In fourth quarter 2021,
CAL&F’s underlying revenues stood at
€160 million, a sharp rise of +5.7% compared to fourth quarter
2020, thanks to the strong activity in both leasing and factoring.
Costs excluding SRF were up by +6.8% compared to
fourth quarter 2020, in line with IT investments, but the
underlying cost/income ratio excluding SRF
remained low at 51.6%, stable by +0.5 percentage point compared to
fourth quarter 2020. This resulted in a year-on-year increase in
gross operating income of +4.5%. Cost of
risk remained low at €15 million, down -40.1%
compared to fourth quarter 2020. CAL&F’s underlying net
income Group share was €41 million in fourth quarter
2021, (+9.7% compared to fourth quarter 2020).
For 2021, CAL&F’s underlying
revenues was up sharply by +12.2% compared to
2020, due to the strong recovery of the factoring and leasing
business, especially in Poland. The underlying cost/income ratio
excluding SRF showed improvement, dropping
2 percentage points compared to 2020 to stand at 52.6%.
This has led to a strong increase in underlying gross
operating income (+16.7%). The cost of
risk fell significantly (-37.5%), reflecting strong
provisioning for performing loans in 2020 in the context of the
crisis. Finally, underlying net income Group share
increased significantly (+43.5%) to €145 million.
Retail Banking
The Crédit Agricole S.A. Retail
banking activity was very dynamic this quarter, driven at
LCL by the production of housing, corporate, and SME and small
business loans, and at Crédit Agricole Italia by dynamic commercial
activity.
Loan production at LCL was up
sharply compared with fourth quarter 2020 (+24%82) for housing
(€5.2 billion, +31%) and corporates (+31%82). The production
of loans for SMEs and small businesses was stable over the period
and reached a record level for the year. In this context,
loans outstanding reached €150.6 billion at
end December 2021 and were up +5.0% since end December 2020,
including +7.3% for real estate loans and +6.0%83 for loans to SMEs
and small businesses. Home loan renegotiations
remained at a low level (€0.5 billion outstanding this quarter)
compared to €0.2 billion in fourth quarter 2020 and €0.5 billion in
third quarter 2021, still far below the high point of €5.2 billion
in fourth quarter 2016. On-balance sheet deposits
rose compared to December 2020 (+5%), driven by DAVs (+12.2%), as
did off-balance sheet savings, which were up by
+7% year-on-year (including +5.2% in life insurance). Finally,
customer capture remained dynamic with 74,000 new
customers this quarter and 335,000 new customers in 2021, and the
customer base has grown by +36,000 since the beginning of the year.
The equipment rate of car, home, health, legal,
all mobile phones or personal accident insurance is up by +1.1
percentage point compared to end December 2020 (+2.9 percentage
points compared to end December 2018) to 26.6% at end December
2021.
CA Italia’s loan production remained very
dynamic in the fourth quarter, driven in particular by growth in
corporate loans. In 2021, production remained very dynamic at
nearly €8 billion (-2.1% compared to 2020), particularly in home
loans (+18.1% compared to 2020) and despite a lower production of
corporate loans due to a base effect in 2020 linked to the
implementation state-guaranteed loans (-20.1%). In addition, CA
Italia has disposed of €1.5 billion in doubtful loans in fourth
quarter 2021. Thus, at 31 December 2021, loan outstandings stood at
€59.4 billion. Excluding the scope effect related to the
consolidation of Credito Valtellinese in second quarter 2021, loan
outstandings in Italy totalled €45.5 billion, stable by +0.1%
year-on-year, driven by home loans (+4.9% year-on-year). Excluding
loan disposals for €1.5 billion, the growth in loans for the
historical scope was +3.4%. Balance sheet inflows continued to slow
down (+2.3% Dec/Dec excluding the Credito Valtellinese scope
effect), reflecting the resource optimisation policy initiated in
December 2020. CA Italia's assets under management rose sharply
year-on-year (+8.9% Dec/Dec excluding scope effect) with record net
customer flows of €3.0 billion over 2021. Its equipment rate in
car, multi-risk household, health, legal, all mobile phones or
personal accident insurance increased to 19.0%
(+1.9 percentage points from end December 2020,
+3.6 percentage points from end 2019).
Finally, for all the International retail
banking excluding Italy, the growth in commercial activity remained
rapid. Growth in loan outstandings reached +9.2% at end December
2021 compared to end December 2020 and +5.8% excluding foreign
exchange impact, driven in particular by Ukraine (+21%), Poland
(+12%) and Egypt (+15%), to total €12.8 billion. On-balance
sheet deposits were up +8.0% excluding foreign exchange impact,
especially in Ukraine (+8%) Poland (+17%) and Egypt (+16%). Total
inflows rose by +8.0% year-on-year and by +4.2% excluding the
foreign exchange impact to €17.2 billion. The result was a
surplus of deposits over loans in International retail banking
outside Italy of +€2.9 billion at 31 December 2021.
French retail banking
In fourth quarter 2021,
LCL’s underlying revenues amounted to
€930 million, a year-on-year increase of 3% compared with
fourth quarter 2020. This increase was driven by a strong rise in
fee and commission income in all activities (7.6%). Underlying
operating expenses excluding SRF remained under
control at +0.7% in fourth quarter 2021 compared with fourth
quarter 2020. As a result, the underlying cost/income ratio
excluding SRF improved (-1.5 percentage point compared
with fourth quarter 2020) to 64.9% in fourth quarter 2021 (below
the MTP target <66%), while underlying gross operating
income rose sharply year-on-year (+7.5%). Cost of
risk dropped by 39.1% compared with fourth quarter 2020
against the backdrop of an improved economic outlook, and reached
-€54 million in fourth quarter 2021. The doubtful loans
ratio remained stable (1.5% at end December 2021 compared
with 1.5% at end September 2021) and the coverage
ratio remained high (83.2% at end December 2021 compared
with 83.5% at end September 2021). In the end, underlying
net income Group share reached €199 million in fourth
quarter 2021, up sharply year-on-year (+42.1%).
In 2021, LCL’s underlying revenues increased by
4.5% compared with 2020, reaching €3,696 million, driven in a
balanced way by, on the one hand, net interest margin (+4.5%)
supported by good refinancing conditions and sustained commercial
activity and, on the other hand, by fee and commissions income
(+4.5%). Underlying costs excluding SRF were under control (+1.0%).
This led to an improvement in the underlying cost/income ratio
excluding SRF of -2.2 percentage points compared with 2020,
which stood at 62.2%. Underlying gross operating income thus
increased by nearly 10%. The cost of risk continued to fall and
stood at -€222 million, i.e. down 43.2% compared with 2020. All in
all, the business line’s contribution to underlying net income
Group share rose sharply by +41.3%.
At 31 December 2021, the capital
allocated to the business line was €4.8 billion and
risk weighted assets were €50.3 billion.
LCL's underlying return on normalised equity
(RoNE) stood at 15.2% for 2021 compared with 9.7%
for 2020.
International retail
banking
The International Retail Banking division’s
underlying revenues increased by 19.1% to €824 million in
fourth quarter 2021 and by 0.8% on a like-for-like basis excluding
the Creval acquisition in Italy. Underlying expenses excluding SRF
increased by +31.0% to €594 million in fourth quarter 2021. At
constant scope, this change was +7.3%. As a result, underlying
gross operating income was down from fourth quarter 2020 to stand
at €231 million, a decrease of -3.5% (-11.5% at constant
scope). The underlying cost of risk rose +0.4% this quarter to
-€132 million but was down -38.2% excluding the Creval acquisition.
In the end, the International Retail Banking division’s underlying
net income Group share came to €62 million, down -11.0% compared
with fourth quarter 2020. On a like-for-like basis (excluding
Creval losses of -€11 million linked to the transition to a high
cost of risk), the contribution of International Retail Banking
rose by +5.0%.
In 2021 underlying revenues for the
International Retail Banking division rose by +17.2% to
€3,115 million. Underlying operating expenses excluding SRF
increased by +15.7% to €1,976 million, resulting in a
0.8 percentage point improvement in the underlying
cost/income ratio which stood at 63.4%. Cost of risk fell by -23.5%
to stand at €435 million for 2021. This translates into a net
income Group share of €357 million for 2021, up 58.8% compared
with 2020.
Italy
In fourth quarter 2021, CA Italia’s underlying
revenues were up +21.8% compared with fourth quarter 2020 and stood
at €597 million, including €126 million from the
consolidation of Credito Valtellinese. Excluding this scope effect,
CA Italia’s revenues were down -4.0% compared with fourth quarter
2020, impacted by the disposal of doubtful loans amounting to €1.5
billion in the fourth quarter (see below) as well as the pressure
on interest margins. Fee and commission income remained up by +2%
compared with fourth quarter 2020, still supported by fee and
commission income from outstanding managed savings. Underlying
costs were up compared with fourth quarter 2020 (+40.7%) at
€451 million, of which €107 million were related to
Credito Valtellinese. Excluding this scope effect, costs would have
increased by 7.2%, but remained stable (+0.7% compared with fourth
quarter 2020) excluding costs related to the contribution to the
FITD (Italian deposit guarantee fund). Overall, underlying gross
operating income recorded a substantial drop of -14.0% versus
fourth quarter 2020 (-25.2% excluding scope effect). Cost of risk
increased by +4.3% compared with fourth quarter 2020 with
significant provisions on the Creval scope for performing loans, in
order to bring the bank in line with Credit Agricole Italia’s
practices. The risk profile of the historical CA Italia scope has
also been improved by the disposal of doubtful loans for €1.5
billion. The doubtful loan ratio at 31 December 2021 for Crédit
Agricole Italia’s historical scope was 3.7%, down 2.6 percentage
points compared with the third quarter of 2021. The coverage ratio
of doubtful loans on Crédit Agricole Italia's historical scope was
therefore 68.3%, reinforced by the exceptional provision of €125
million reclassified as specific items. On the Creval scope, on the
other hand, the coverage ratio was low in the fourth quarter, as
the loans were brought to the Group’s balance sheet at their net
provision value as required by accounting standards. As a result,
CA Italia’s coverage ratio at 31 December 2021 was 62.0% (down 7.2
percentage points). CA Italia’s net income group share thus
amounted to €21 million, down -35.8% compared with the fourth
quarter of 2020, with the underlying contribution of -€11 million
this quarter for Creval weighing on the business line’s
profitability. CA Italia’s net income group share on its historical
scope was therefore stable this quarter (-2.0%).
During the quarter, the CreVal consolidation
process continued according to schedule.
The accounting consolidation of Credito
Valtellinese was completed this quarter, with the PPA being
finalised in the fourth quarter. As a result, Credit Agricole
Italia recognised a 100% net badwill of €497 million over the
financial year, including €119 million in the fourth quarter of
2021 (i.e. a respective impact of €376 million and €90 million on
net income group share, with these items being reclassified as
specific items). The due diligence and Creval consolidation
operations also gave rise to other adjustments, also classified as
specific items: the recognition of off-balance sheet deferred tax
assets for €105 million (€80 million in net income group share),
€14 million in other adjustments following due diligence work (-€9
million in specific items) and costs for upgrading and migrating
the technological infrastructure and the IT platform (-€47 million
in integration costs over 2021, including -€23 million in the
fourth quarter alone; impact on net income group share of -€24
million and -€12 million respectively).
In order to prepare for the future, Credit
Agricole Italia has also initiated certain transformations. In
Italy, the Group has launched a substantial Next Generation HR
plan, which will result in the departure of approximately 1,100
employees through a job preservation plan and retirements, and
approximately 550 new hires. €190 million was accounted for in the
fourth quarter to finance this plan (impact of -€97 million on net
income group share; reclassified as specific items). CA Italia also
made a significant disposal of its non-performing loans portfolio
this quarter, amounting to €1.5 billion, in order to improve the
Group’s risk profile (cost of risk impact of -€194 million) and
accounted for additional provisions on its residual portfolio, in
order to comply with the Group’s new risk policies, amounting to
-€125 million. These items impacting the cost of risk have been
reclassified as specific items for a total impact on net income
Group share of -€161 million. Lastly, CA Italia successfully
concluded the takeover bid for CA FriulAdria in September 2021 and
now holds more than 99% of the share capital of this structure,
enabling it to prepare for the merger of the bank into CA
Italia.
Crédit Agricole Italia’s underlying revenues
rose by +24.8% over the full year to €2,279 million (+4.5%
excluding scope effect). Operating expenses excluding SRF were kept
under control (+24.3% but +1.7% excluding scope effect), improving
the underlying cost/income ratio excluding SRF to 62.3% (an
improvement of -1.8 percentage points Dec/Dec on a
like-for-like basis and -0.2 percentage point excluding scope
effect). Underlying cost of risk fell sharply in 2021 to €347
million (-18.9% and -40.9% excluding the scope effect), benefiting
from a very high 2020 base. This resulted in a very strong increase
in CA Italia’s contribution over the financial year to €244 million
in underlying income, i.e. +69.3% compared with 2020 and +61.7% in
underlying income on a like-for-like basis.
CA Italia’s underlying RoNE for 2021 was 9.0%.
Crédit Agricole Group in
Italy
The Group’s income in Italy stood at
€751 million for 2021, an improvement of +31% compared with
2020, due to the growth in operating income, the scope effect
related to Creval and the decrease in the cost of risk of the
Group’s subsidiaries in Italy. During the year, the Group’s
business lines all strengthened in Italy. CA Italia was ranked
second in Italy in terms of customer satisfaction84. Amundi, with
nearly €200 billion in assets under management, had an excellent
year in terms of activity with net inflows of €12 billion over
2021, including €5 billion in the fourth quarter. In insurance, the
market share of life contracts increased by 1.5 percentage points
to 6.8% thanks to the development of sales of unit-linked
products85. The property and casualty business continued to grow
with the continuation of customer equipment rates in a strong
competitive environment. For its part, CACIB was ranked second
bookrunner LT in transactional value of syndicated loans in
Italy86, while Agos confirmed its position as the second largest
operator in Italy for consumer loans with a market share of 8.9% in
2021 (up 70 basis points compared with 2020)87.
International Retail Banking – excluding
Italy
In August 2021, Crédit Agricole S.A. announced
the disposal of its Serbian subsidiary, Credit Agricole Srbija
A.D., which is expected to be completed in first half 2022. The
results of this entity for the year were thus reclassified under
IFRS 5 during the third quarter, impacting all income lines
for International Retail Banking excluding Italy.88
On a like-for-like basis88, the entities’
revenues grew strongly, with the development of the business and
the absorption of the 2020 key rate cuts in the various countries.
Underlying revenues on a like-for-like basis of International
retail banking excluding Italy rose by 20.3% compared with fourth
quarter 2020, at €227 million. Underlying costs excluding SRF
on a like-for-like basis increased (14.7% compared with fourth
quarter 2020) reflecting the weight of IT investments, the
resumption of commercial campaigns as well as inflationary
pressures. As a result, the underlying cost/income ratio excluding
SRF of International retail banking excluding Italy was 62.6%, down
2.9 percentage points compared with fourth quarter 2020. Underlying
gross operating income on a like-for-like basis was therefore up (€
30.9%) compared with fourth quarter 2020. The cost of risk fell
(-19.2% compared to fourth quarter 2020) to -€14 million. The
rate of doubtful loans was low at 6.6% at end December 2021,
decreasing in particular with the disposal of a portfolio of
doubtful loans in Poland. The coverage ratio is at a high level of
100%. AT the end, the underlying net income Group share on a
like-for-like basis was €38 million, up +12.4% compared with fourth
quarter 2020.
By country:
- Poland89: revenues were up sharply
(+24%), driven by the capture and development of fee and commission
income; expenses increased by (+14%) reflecting IT investments in
the networks as well as the launch of advertising campaigns to
support the capture. The doubtful loans coverage ratio reached
104%.
- CA Egypt89: gross operating revenue
rose +11% compared with fourth quarter 2020 and the cost/income
ratio remained below 40%.
- CA Ukraine89: revenues remained
strong (up +24% compared with fourth quarter 2020) owing to a good
level of activity. Costs remained contained in a strong
inflationary context and the doubtful loan rate remained low at
1.1%.
- Crédit du Maroc89: activity and
revenues remained steady and the cost of risk benefited from
provision reversals.
In 2021, the underlying revenues of retail
banking excluding Italy increased by 0.4% to €836 million (+6.6% on
a like-for-like basis) thanks to the gradual absorption of decrease
in key rates that took place in 2020 and to the strong development
of the commercial activity. Operating expenses excluding SRF
increased by 3.1% (3.2% on a like-for-like basis) to €522 million,
reflecting IT investments and inflationary pressure in these
countries. This led to a slight improvement in the underlying
cost/income ratio excluding SRF, which stood at 62.5%, down more
than 2 percentage points compared with 2020. Cost of risk is down,
illustrating the quality of the credit portfolios and their
coverage. In the end, the business line’s contribution to net
income Group share rose sharply over the year, by 39.9% to €113
million (51.7% on a like-for-like basis).
The underlying RoNE of Other IRB stood at 14.4%
in 2021, compared with 12.3% in 2020.
The International retail banking business line
contributed for 6% to the underlying net income Group share of
Crédit Agricole S.A.'s core businesses (excluding the
Corporate Centre division) in 2021 and 14% to underlying revenues
excluding the Corporate Centre division.
The entire Retail banking business line
contributed for 19% to the underlying net income Group share of
Crédit Agricole S.A.'s core businesses (excluding the
Corporate Centre division) in 2021 and 30% to underlying revenues
excluding the Corporate Centre division.
As at 31 December 2021, the capital allocated to
the division was €9.7 billion, including €4.8 billion for
French retail banking and €4.9 billion for International
retail banking. Risk weighted assets for the division totalled
€101.6 billion including €50.3 billion for French retail
banking and €51.4 billion for International retail
banking.
Corporate Centre
The underlying net income Group share of the
Corporate Centre division was -€26 million in fourth quarter
2021, up +€225 million compared with fourth quarter 2020. An
analysis of the negative contribution of the Corporate Centre looks
at both the “structural” contribution (-€109 million) and
other items (+€83 million). The contribution of the
“structural” component rose compared with fourth quarter 2020
(+€106 million) due to the improvement of the balance sheet
structure, as well as the increase in revenues of the division's
other business lines. This contribution includes three types of
activities:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution reached
-€175 million in fourth quarter 2021, up +€20 million compared with
fourth quarter 2020, in line with the improvement of the balance
sheet structure.
- The
sub-divisions that are not part of the core business lines, such as
CACIF (Private equity) and CA Immobilier and, since first
quarter 2021, BforBank, equity-accounted as it is 50% owned by
Crédit Agricole S.A. following its capital increase. Their
contribution, at +€63 million in fourth quarter 2021, rose by €58
million compared with fourth quarter 2020, explained by the
increase in CACIF revenues, linked to disposals and the revaluation
of certain funds.
- The Group’s
support functions. Their contribution of +€2 million this quarter
rose by €29 million from fourth quarter 2020, mainly due to higher
revenues from Crédit Agricole Payment Services.
The contribution of “other items” amounted to
+€83 million, up €119 million from fourth quarter 2020, due to a
positive impact of non-Group dividends and inflation on the
valuation of hedging swaps.
Over 2021, the underlying net income Group share
of the Corporate Centre division was -€463 million, an
improvement of €270 million compared with 2020. The structural
component contributed -€694 million and other items of the
division recorded a positive contribution of +€232 million
over 2021The “structural” component contribution is up
€69 million compared with 2020 and can be broken down into
three types of activities:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution amounted to
-€833 million for 2021, down by €87 million compared with
2020;
- The business
lines that are not part of the business line divisions, such as
CACIF (Private equity) and CA Immobilier and, since first
quarter 2021, BforBank, equity-accounted as it is 50% owned by
Crédit Agricole S.A. following its capital increase: their
contribution of +€130 million over 2021 was up compared with
2020 (+€145 million).
- Group support
functions: their contribution over 2021 was +€9 million, up €14
million compared with 2020, notably due to a change in 2021 in the
way CAGIP income and expenses are recognised.
The contribution of “other items” in 2021 was
+€232 million, up €201 million compared with 2020, notably due to
the positive impact of non-Group dividends and inflation on the
valuation of hedging swaps in fourth quarter 2021, and, in
particular, in the second and third quarters of 2021, eliminations
on intra-group securities underwritten by Predica and Amundi.
At 31 December 2021, risk-weighted assets
stood at 25.7 billion euros.
* *
*
Financial strength
Crédit Agricole Group
As at 31 December 2021, the phased-in
Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group
was 17.5%, an increase of +0.1 percentage points compared to end
September 2021. Therefore, Crédit Agricole Group posted a
substantial buffer of +8.6 percentage points between the level
of its CET1 ratio and the 8.9% SREP (Supervisory review and
evaluation process) requirement. The fully loaded CET1 ratio is
17.2%.
- Retained
income: +38 basis points in stated income: and -8 basis
points in distribution and payment of AT1 coupons.
- Business
line growth (“risk weighted assets variation”): -14 bp
concentrated mainly on Regional Banks.
-
Additional distribution: an additional
distribution of €0.20 per share for the 2019 dividend catch-up
(-4 bp) as well as the impact of the second share buyback (-9
bp) are also included.
-
M&A: taking into account recent acquisitions:
Olinn -4 bp, Lyxor -8 bp, ByMyCar -1 bp, Creval +1 bp (including
badwill for +6 bp, and various other items for -5 bp, notably
DTA)
-
Other: includes in particular an impact related to
capital increases, the one reserved for employees (+4 bp) as well
as the one related to issuance of new mutual shares (+3 bp).
The phased-in leverage ratio
stood at 6.1%, +0.1 percentage point compared to end September 2021
(5.4% before the exclusion of ECB exposures) and well above the
regulatory requirement of 3.11%90. The daily phased-in leverage
ratio was 5.5% at 31 December 202191 before the exclusion of ECB
exposures.
The Crédit Agricole Group’s risk
weighted assets increased by €2.8 billion compared with 30
September 2021, including €1.6 billion for Regional Banks.
Maximum Distributable Amount (MDA)
trigger
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 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 December 2021, Crédit Agricole
Group posted a buffer of 772 basis points
above the MDA trigger, i.e. €45 billion in CET1
capital.
At 31 December 2021, Crédit Agricole
S.A. posted a buffer of 335 basis points
above the MDA trigger, i.e. €13 billion in CET1
capital.
TLAC
The 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.
The elements that could absorb losses consist of
equity, subordinated notes and debts to which the Resolution
Authority can apply the bail-in.
The TLAC ratio requirement was transposed into
European Union law via CRR2 and has been applicable since 27 June
2019. As from that date, Crédit Agricole Group must comply
with the following requirements at all times:
- a TLAC ratio
above 16% 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 0.02% for the CA Group at 31/12/21). Considering the
combined capital buffer requirement, the Crédit Agricole Group must
adhere to a TLAC ratio of above 19.5%;
- a TLAC ratio of
above 6% of the Leverage Ratio Exposure (LRE).
As from 1 January 2022, the minimum TLAC
requirements will increase to 18% of risk weighted assets – plus
the combined buffer requirement at that date – and 6.75% of the
leverage ratio exposure.
At 31 December 2021,
Crédit Agricole Group’s TLAC ratio stood
at 26.3% of RWA and 8.7% of leverage ratio exposure,
excluding eligible senior preferred debt
92, which is well above the requirements. The TLAC
ratio excluding eligible senior preferred debt expressed as a
percentage of risk weighted assets increased by 30 bp over the
quarter, as the moderate increase in RWAs was more than offset by
the increase in eligible equity and liabilities. Expressed as a
percentage of leverage exposure (LRE), the TLAC ratio excluding
eligible senior preferred debt climbed 20 bp compared with
September 2021. Without taking into account the neutralisation of
Central Bank exposures, such TLAC ratio expressed in LRE would have
reached 7.8% (+20 bp compared with September 2021).
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 680 bps higher, i.e. €40
billion, than the current requirement of 19.5% of RWA. Compared
with the new requirements applying from 1 January 2022, such TLAC
ratio is 480 bp, or €28 billion higher, than the TLAC requirement
expressed in RWA (i.e. at 21.5% RWA + countercyclical buffer as of
31 December 2021).
Achievement of the TLAC ratio is supported by a
TLAC debt issuance programme of around €7 billion in
the wholesale market in 2021. At 31 December 2021,
€6.3 billion equivalent had been issued in the market (senior
non-preferred and Tier 2 debt); the amount of the Crédit
Agricole Group senior non-preferred debt taken into account in
the calculation of the TLAC ratio was €26.1 billion.
MREL
The 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). Eligible for the numerator of the total MREL
ratio are the Group’s regulatory capital, as well as eligible
liabilities issued by the central body and its 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.
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. As from 1 January 2022, the
Crédit Agricole Group must meet a minimum total MREL requirement
of:
- 21.04% 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 0.02% for the CA Group at
31/12/21). Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a total MREL ratio of above
24.6%;
- 6.02% of the
LRE.
At 31 December 2021, the Crédit Agricole
Group had an estimated MREL ratio of 30.5% of RWA and 10.1% 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, whose ratio
is equivalent to the subordinated MREL for the Crédit Agricole
Group. At 1 January 2022, this subordinated MREL requirement for
the Crédit Agricole Group did not exceed the TLAC requirement.
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 December 2021, the Crédit Agricole
Group would thus have a buffer of 480 bp above the
M-MDA trigger, taking into account the TLAC requirement applicable
as of 1 January 2022, i.e. €28 billion of CET1
capital.
Crédit Agricole Group’s target is to
reach a subordinated MREL ratio (excluding eligible senior
preferred debt) of 24-25% of
the RWA by the end of 2022 (a
goal achieved in September 2020) and to maintain the subordinated
MREL ratio above 8% of
TLOF93. This level would
enable recourse to the Single Resolution Fund (subject to the
decision of the resolution authority) before applying the bail-in
to senior preferred debt, creating an additional layer of
protection for investors in senior preferred debt. At 31
December 2021, the subordinated MREL ratio reached 8.6% of
TLOF.
Crédit Agricole S.A.
At end December 2021, Crédit Agricole S.A.’s
solvency level remained high, with a phased-in Common
Equity Tier 1 (CET1) ratio of 11.9% (down 0.8 percentage
point from end September 2021). Crédit Agricole S.A. therefore had
a substantial buffer of 4 percentage points between the level
of its CET1 ratio and the 7.9% SREP requirement. The fully loaded
CET1 ratio is 11.6%.
- Retained
income: +36 bp in reported earnings and -21 bp in
distribution and payment of AT1 coupons for the fourth quarter
(dividend provision of €0.24 per share for the quarter based on a
50% distribution policy bringing the annual provision to €0.85 per
share).
- The annual
dividend provision is completed on one hand by the continued
catch-up of the 2019 dividend by €0.20 per share (-16 bp), on a
total of €0.40 per share, as well as by the finalisation of the
second share buyback tranche (for € 500 million, or -14 bp). The
total dividend provision for the year 2021 is therefore €1.05 per
share.
- Business
line growth (“risk weighted assets variation”): - 6 bp,
with an impact concentrated in Specialised Financial Services.
-
M&A: -16 bp, linked to the finalisation of
acquisition operations: Olinn -6 bp, Lyxor -12 bp, ByMy Car -1 bp
and Creval +2 bp (the badwill of +10 bp being offset by other items
for -8 bp, DTA notably).
- Switch
and others: -47 bp, mainly due to the unwinding of the
remaining 50% of the Switch insurance guarantee (-60 bp). Other
elements were added, notably the capital increase reserved for
employees (+6 bp) and a positive foreign exchange impact over the
quarter.
The phased leverage ratio
stands at 4.6% at end December 2021 compared with a requirement of
3.18%94. The leverage ratio before neutralisation of ECB exposures
is 3.9%, stable compared with the end of September 2021. The
phased-in daily leverage ratio95
was 3.8% before the exclusion of ECB exposures.
Crédit Agricole Group’s risk weighted assets
were up €19 billion compared with 30 September 2021, mainly
due to the unwinding of the remaining 50% of the switch insurance
guarantee (+€17 billion). The rest of the increase was recorded in
Specialised Financial Services (€1.3 billion), resulting notably
from the peak in activity in fourth quarter 2021 for CAL&F, and
in Large Customers (€0.4 billion).
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 as
they appear in the next table 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 prudential 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 €67 billion at end-December 2021. Similarly,
€93 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 €138 billion at
end-December 2021—relate to derivatives, margin calls,
adjustment/settlement/liaison accounts and to non-liquid securities
held by the Corporate and Investment banking division 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
(€71 billion at end-December 2021) 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
issues 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 issue.
Medium to long-term repos 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 €1,630 billion at 31 December
2021, the Group’s banking cash balance sheet shows a
surplus of stable funding resources over stable application of
funds of €279 billion, down €14 billion compared
with end September 2020 and up €14 billion compared with
end December 2020.
Total T-LTRO 3 outstandings for the Crédit
Agricole Group amounts to €162 billion96 at 31 December 2021.
It should be noted that the interest rate applicable to the
refinancing rate of these operations is accrued over the drawdown
period. The special interest rate is accrued over the related
special interest rate period. The special interest rate applicable
to the refinancing rate for these operations for the second period
(June 2021 to June 2022) was taken into account in Q4 2021 for all
drawdowns.
The Group once again recorded momentum in
commercial activity during the quarter, with an increase of €15
billion in inflows and €29 billion in loans.
The surplus of 279 billion euros,
known as “stable resources position”, allows the Group to cover the
LCR deficit generated by long term assets and stable liabilities
(customer, tangible and intangible assets, long-term funds, own
funds). Internal management excludes the temporary surplus of
stable resources provided by the increase in T-LTRO 3 outstanding
in order to secure the Medium-Term Plan target of more than
€100 billion, irrespective of the future repayment
strategy.
The NSFR of Crédit Agricole Group and Crédit
Agricole S.A. exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 31 December 2021
(central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €344 billion at 31 December 2021, down
€3 billion compared with end September 2021, and up
€23 billion compared with end December 2020.
They included senior secured debt of
€222 billion, senior preferred debt of €72 billion,
senior non-preferred debt of €29 billion and Tier 2
securities amounting to €21 billion.
At 31 December 2021, the Group’s
liquidity reserves, at market value and after haircuts, amounted to
€465 billion, down €4 billion from end September
2021 and up €27 billion from end December 2020. They covered
short-term net debt more than four times over (excluding the
replacements with Central Banks).
The high level of central bank deposits was the
result of the replacement of significant excess liquidity: they
amounted to €227 billion at 31 December 2021 (excluding cash
and mandatory reserves), down -€16 billion compared to end
September 2021 and up +€41 billion compared to end December
2020.
Crédit Agricole Group also continued its efforts
to maintain immediately available reserves (after recourse to ECB
financing). Central bank eligible assets after haircuts amounted to
€113 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
The average LCR ratios over 12 months at
31 December 2021 were respectively 170.9% for Crédit Agricole Group
and 153.0% for Crédit Agricole S.A. They exceeded the
Medium-Term Plan target of around 110%.
In the context of the COVID-19 health crisis,
the increase in the level of LCR ratios of Crédit Agricole Group
and Crédit Agricole S.A. was in line with the recourse of the Group
to T-LTRO 3 drawings from the central bank.
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 2021, the Group’s main issuers raised
the equivalent of €30.0 billion97
in medium-to-long-term debt on the markets, 28% of
which was issued by Crédit Agricole S.A. Noteworthy
events in 2021 for the Group were as follows:
- Crédit Agricole
Assurances issued a Tier 2 10 year bullet bond in September for €1
billion to refinance intra-group subordinated debt.
- Crédit Agricole
next bank (Switzerland) has completed two covered bond issuances
this year for CHF350 million, including an inaugural covered bond
issuance in Green format at 10 years for CHF150 million in
September;
- Crédit Agricole
Italia issued a first Green covered bond for €500 million at 12
years in March.
In addition, €4.3 billion was also borrowed
from national and supranational organisations or placed in the
Group’s Retail banking networks (Regional Banks, LCL, CA Italia)
and other external retail networks at 2021.
In 2021, Crédit Agricole S.A. completed
95% of its medium-long term financing programme of
€9 billion on the markets for 2021 (including
€7 billion in non-preferred senior debt or Tier 2
debt).
The bank raised the equivalent of
€8.5 billion98, of which €4.2 billion in senior
non-preferred debt and €2.1 billion in Tier 2 debt, as well as
€0.7 billion in senior preferred debt and €1.5 billion in
senior secured debt. The funding is diversified with various
formats and currencies (EUR, USD, AUD, GBP, JPY, CNY, CHF,
NOK).
The 2022 refinancing programme amounts to €13
billion99, of which €7 billion of senior preferred or senior
collateralised debt and €6 billion of TLAC eligible debt
(non-preferred senior debt or Tier 2 debt). At the end January
2022, 32%100 of the funding plan was realised.
Note that on 5 January 2022, Crédit Agricole
S.A. issued a perpetual NC7.7 year AT1 bond for USD1.25 billion at
an initial rate of 4.75%.
ECONOMIC AND FINANCIAL
ENVIRONMENT
2021 RETROSPECTIVE
Global economic performance continued to be
largely conditioned by the spread of the virus and the health
response (roll-out of vaccination, containment strategy), the
structure of the economies (relative weight of industry and
services, including tourism), and the fiscal and monetary
counter-offensive (extent of support for activity). As with
the recessions experienced in 2020, recovery paths have remained
uneven. China, boosted by its foreign trade and growing at a rate
of 8.1%, the United States and then the Eurozone, which posted very
good performances, continued to be contrasted with the half-hearted
recoveries or fragile rebounds of many emerging countries, in which
the trend towards fragmentation was clearly confirmed.
Moreover, inflation, long
forgotten, has returned to the forefront. The very sharp
acceleration was the result of a combination of several factors:
upstream pressures with strong increases in commodity prices and
bottlenecks101, downstream pressures from the strong rebound in
household consumption supported by substantial financial aid and
high savings inherited from the 2020 crisis, and base effects after
very low inflation in 2020. While supply remained limited at the
end of the crisis (lack of labour or goods), the normalisation of
demand led to price increases in specific sectors, particularly
those previously heavily penalised by the pandemic (hotels,
restaurants or cars, for example).
In the United States, after
Donald Trump’s US$2.2 trillion Coronavirus Aid, Relief and Economic
Security Act (CARES Act), the largest support plan in US history,
and the US$900 billion December plan (a total of about 14% of GDP),
Joe Biden’s stimulus package (the American Rescue Plan) totalling
$1.9 trillion, or about 9% of GDP, was rolled out in March.
Households, mainly those with low incomes, were the main
beneficiaries. Thanks to the strong recovery in consumption,
further boosted by the rapid fall in unemployment, growth has stood
at 5.7% in 2021. In December, overall year-on-year inflation
reached 7% (the first time this has happened since the early
1980s), with core inflation at 5.5%, its highest level since the
early 1990s. In addition to the impact of energy and industrial
input prices, some specific items (e.g. new cars, but especially
used cars) driven by strong demand contributed to the acceleration
of inflation.
The Eurozone has withstood the
latest lockdown phases by limiting the negative effects to the
sectors subject to targeted restrictive measures and by benefiting
from the reactivation of its manufacturing sector. A pleasant
surprise came from strong production investment supported by the
strength of demand for manufactured goods, but also by the European
funds of the recovery plan. After contracting by 6.5% in 2020, GDP
is expected to grow by 5.2% in 2021. While excess demand and wage
acceleration are much less evident than in the United States,
headline inflation nevertheless picked up significantly to 5%
year-on-year in December, while core inflation rose less vigorously
(2.6%).
After suffering an 8% recession in 2020,
France started a strong recovery in the second
half of 2020 and continued into 2021. The new wave of infections
and the spread of the Omicron variant raised new fears about the
strength of the recovery in the short term, but the absence of very
restrictive measures made it possible to limit the impact. After a
marked mechanical rebound in the third quarter, growth slowed in
the fourth quarter, while remaining sustained, allowing GDP to rise
by 7% in 2021. Driven by the rise in commodity prices (especially
energy, which accounts for more than half of the price increase),
inflation accelerated to 2.8% over 12 months in December (1.6% on
average).
Despite a shift in the Federal Reserve’s
rhetoric suggesting a more rapid normalisation of its monetary
policy, an accommodative monetary stance was maintained in both the
United States and the Eurozone.
In the United States, at the
start of the year, Jerome Powell emphasised the still extremely
weakened nature of the labour market and the low employment rate
compared to its pre-crisis level. However, concerns gradually
shifted from growth to inflation which, after being considered
temporary, became more worrying. At the same time, the Fed
announced its strategy of gradual normalisation: gradual reduction
of its monthly asset purchases (US$120 billion in force at the
time) or tapering and then, without any pre-established timetable,
raising its key rate (target range for the Fed Funds rate [0%,
0.25%]).
During its Federal Open Market Committee (FOMC)
monetary policy meeting in June, the Fed made its first change,
which consisted of a rise in its forecasts for the Fed Funds rate,
combined with an upward revision of growth and inflation. The Fed
prepared the markets by saying it would spell out in November just
how it would carry on its tapering program. In early November the
Fed announced it would cut back its monthly purchases by $15
billion, suggesting these would come to an end in June 2022, though
the pace of tapering might be adjusted. Finally, the mid December
meeting of the FOMC confirmed that monetary normalisation would go
faster still, with tapering occurring at double speed and thus
ending in March 2022. The reasons given for the speed-up were the
breadth of the inflation and the quick progress made towards full
employment, despite a few persistent disappointments in the
participation rate. Jerome Powell also stated that a rate rise was
possible before full employment is reached, should inflationary
pressures remain concerning. Moreover, the Dot Plot102 signalled a
more aggressive upward path for the key rate.
In the eurozone, while the ECB
in June also acknowledged the firming taking place and revised
upward its growth and inflation forecasts, it reiterated the very
accommodative and flexible orientation of its monetary policy. In
December the ECB restated its growth and inflation scenario and
presented its monetary strategy.
The ECB revised its inflation forecast for 2022
upward (from 1.7% to 3.2%), though much more moderately for 2023
(from 1.5% to 1.8%), and its 2024 projection of 1.8% remains lower
than the 2% target. The ECB seems to be saying that inflation will
be transitory, largely caused by supply issues having limited
effect on core inflation (at 1.9% in 2022 and 1.7% in 2023.) The
negative impact on growth (revised downward from 4.6% to 4.2% in
2022) is presumed to be moderate and brief. Inflation should
temporarily erode purchasing power without derailing growth, which
is revised upward to 2.9% in 2023.
In terms of strategy, the ECB stated that the
removal of emergency support would be accompanied by significant
yet flexible attention to the sovereigns market. The point there is
to prevent, on one hand, an over-steepening of the yield curve and
on the other, any risk of eurozone fragmentation103 The ECB
reaffirmed that before its key rate is raised, three conditions
must be met: (1) Inflation has to reach the 2% target well before
the ECB’s forecasting horizon; (2) this target must be reached
lastingly, out to the forecasting horizon; and (3) the progress
achieved on core inflation must be sufficiently great that it is
compatible with stabilising inflation to its medium-term target
level. Respecting the most current forecasts, these conditions have
not been met.
Bond markets have kept step with a few
major themes: an enthusiastic first quarter buoyed by reflation
trading, a gloomier second quarter gripped by the reality of the
pandemic, and a second half displaying lively growth yet also
distinctly more troubling inflation, fuelling a faster monetary
normalisation scenario in the U.S.
In the United States, the
two-year interest rates104 kept pace with the monetary scenario.
They stayed pegged to a low level (0.17% on average) and only
started up, slowly, once monetary tightening was spoken of
(September) and then more firmly with the acceleration of tapering
late in the year, which they finished at 0.70%, for a rise on the
year of 60 basis points. With reflation trading, prompted by more
sustained expectations for growth and inflation, increasing
vaccination rates and better-than-expected economic data, long
rates rose sharply in the United States, and this rise spread into
the eurozone. The U.S. 10-year rate, near 0.90% at the start of the
year, started to climb and peaked at end-March near 1.75%. Bad news
on the public health front then tempered the enthusiasm, and the
bond markets took a more conservative position. After that,
starting in September, the idea that accelerating inflation would
cause monetary tightening in the U.S. to be more energetic than
expected once again pushed interest rates higher. The U.S.10-Year
rate ended the year at 1.50%, or a rise on the year of 60 basis
points, was not impacted by the attention focused by the markets on
inflation and monetary normalisation.
In the eurozone, in sympathy with the first
phase of recovery by the U.S. rates, the German 10-year rate (the
Bund) rose from nearly -0.60% at 1 January to -0.10% in May. While
the Fed proved to be tolerant with respect to the tightening of
financing conditions, a synonym of improvement in economic
prospects, the ECB was quick to signal that this tightening was
premature and unjustified. The Bund then headed downward. Whilst
the German 2-year rate remained virtually level at -0.60% at
end-2021 vs. -0.70% at end-2020, the Bund closed the year at
-0.30%, or a rise on the year of 40 basis points. As a result of
the ECB’s statements about its process of purchasing sovereign
securities, the risk premiums offered by France and Italy versus
the Bund widened somewhat, with those spreads widening 13 and 24
basis points, respectively, but remained narrow, at 35 and 135
basis points, respectively. Though the prospect of elections in
France does not seem to have affected the spread at this point, the
Italian spread has been negatively impacted since November by their
coming presidential elections.
The equity markets, still buoyed by the
accommodative financing conditions, despite the normalisations to
come, and by favourable growth prospects, at least in developed
countries, have risen nicely, with the average annual rise in the
S&P 500, Eurostoxx 50 and CAC 40 indices up +32%,
+23%, +27%, respectively. Lastly, after resisting stoutly, the euro
fell against the dollar given that monetary normalisation was
further along in the U.S. than in Europe. The euro gained 3.6%
against the dollar on average but fell late in the year. At 1.14 in
December 2021, it lost nearly 7% on the year.
2022 OUTLOOK
Our scenario calls for a slowdown in
growth, which ought to remain strong, as well as a slow moderation
in inflation. Such a picture assumes that demand normalises and
that supply chain bottlenecks break open. This twofold
normalisation will allow inflation (particularly core inflation) to
slow and the extraordinary measures of monetary support to be
removed unhurriedly and without excessive impact on the bond
markets.
Obviously, there is room for error in estimating
inflation, which could be both higher and longer-lasting than
expected. While the risk of significant growth in wages and of
inflation settling in for a while at a higher level is more
manifest in the United States, the fear in the eurozone arises
rather from an erosion of purchasing power that might undermine
growth. This, however, is not at present our primary scenario.
Furthermore, at least in the advanced economies (thanks to high
vaccination rates), the potential variants of the virus seem to
hold back economic activity only temporarily and without causing
disruption or even great interruption in people's behaviour. The
uncertainly produced by the omicron variant was negative in the
first quarter of 2022 but positive in the second quarter of 2022,
without upsetting the major thrust of our scenario.
In the United States, growth
should remain vigorous (3.8% in 2022) before gradually converging
with its long-term trend (2.3% in 2023). It should benefit from
strong consumption driven by an improved labour market, from an
upward trend in wages (though limited to the sectors most affected
by workforce shortages and so not triggering a wage-price spiral)
and from the still untapped reservoir of savings, which is a safety
net to help absorb a quick pick-up in inflation. This is a scenario
favourable consumption but also to investment, since businesses
remain optimistic despite disturbances in the supply-chain and the
persistent, though diminishing, lack of labour.
The engines that most powerfully
contributed to accelerating inflation in 2021 will continue to
turn, both in the United States and elsewhere, at least during the
first-half of 2022: Brisk, high inflation, particularly
with the ongoing crisis in natural gas (whose price is extremely
volatile but has more or less “stabilised” since October);
repercussions on retail prices of higher-cost inputs (second-order
effects with a maximum impact occurring about three quarters after
the jolt to upstream prices); supply-chain problems (including
semiconductors and containers); and bottlenecks that though less
“choking” could continue for the greater part of 2022. In the
second half-year 2022, assuming a stabilisation in energy prices,
the base effects can be expected to be very favourable (i.e., a
sharp year-on-year decline in energy prices and subsequently in the
prices of goods) and the disturbances in the value chain should
gradually subside.
Inflation in the United States, boosted by sharp
trends in some specific components (such as the component of
shelter known as Owner's Equivalent Rent, which does not exist in
the eurozone, and more sharply rising wages leading to expectations
of “third order” effects), is thought to remain very high in the
first quarter, peaking near 7.5% year-on-year and yielding core
inflation approaching 6.5%. Total inflation should then turn down,
towards 3% for the 12 months ending 31 December 2022, bringing the
yearly average to 5.4% as against 4.7% in 2021.
In the eurozone, the strength
of the recovery has not yet filled the negative production gap and
the exogenous inflationary shock does not appear able to alter the
scenario of decelerating, if robust, growth, which should be 4.3%
in 2022 and 2.5% in 2023. Aggregate demand, while running up
against weak supply (logistical blockages, strained supply chains,
and shortages of inputs and labour), also remains weak its rebound.
It is just this weakness that leads one to expect restricted wage
increases and temporary, if more persistent, higher inflation Just
as in the U.S., a higher than expected rise in inflation is plainly
the primary risk. This would impair growth through the erosion of
purchasing power, rather than through any wage-price spiral. The
possibility of a wage-price spiral that is of great concern to
investors at the moment seems exaggerated.
Apart from the upward pressures already noted,
inflation in the eurozone will be volatile but greatly influenced
by technical factors, such as the weighting of components in the
price index, the end of the VAT effect in Germany, and
country-by-country pricing changes in energy contracts. Total and
core inflation rates should settle on average, respectively, at
4.1% (2.4% in December for the year) and 2.4% (1.9% in
December).
In France, consumer spending
should benefit from higher purchasing power despite inflationary
pressures. A surge in new jobs and lower unemployment rates should
create confidence among households, which also enjoy surplus
savings from the pandemic estimated at €150 billion. Investment
will benefit from the recovery plan announced in the autumn of 2020
and the additional support in the France 2030 plan. Growth is
expected to be 3.9% in 2022. As for inflation, high as it was at
the start of the year, it should fall below 2% by year-end and
average 2.6% in 2022.
Our scenario assumes high varied efforts
at monetary normalisation, which is still preferred to monetary
tightening. Depending on the strength of the inflation experienced
or feared, and on the anticipated resistance of growth in their
respective territories, the central banks are adopting very diverse
patterns as they withdraw their various accommodations, which were
as extraordinary as they were generous.
In the United States, the
officials of the Federal Reserve consider inflation a major risk
but in mid-January emphasized recovery in business and employment,
judging the risk of setting up a wage-price spiral to be low.
According to the Fed, inflation can be expected to start slowing
down in the second half. The Fed began its tapering process, and
the markets are now counting on four rises in the fed funds rate in
2022, including 50 basis points at the March meeting. We are
counting on a target rate of 1% at end-2022.
In the eurozone, in contrast
with the forward-moving Fed, the ECB is in no hurry and promises to
remain accommodating and flexible for some time to come, as shown
by the thrust of its monetary policy announced in December.
Monetary normalisation would not be
accompanied by heavy strain on bonds. 2022 is expected to be
divided into two sequences. After a first-half still stamped with
both high growth and high inflation, providing the right moment for
an upward move in interest rates, would come the motif of
deceleration to bring them down.
In the United States, inflation
figures have not as yet brought any over-reaction about interest
rates. The 10-year Treasury note rate should thus rise before
starting to pull back and settling at 1.35% at end-2022. In the
eurozone, the way the ECB and the markets assess
the risk of inflation and, just as much, the credibility of the
ECB's diagnosis in the eyes of the markets will be critical. The
rise in inflation and in its volatility should increase time
premiums during the first half of 2022. In sympathy with the ebbing
of growth and price pressures, rates should follow a downward slope
in the second half. The German 10-year rate should return to zero
(or even slightly positive) before falling back to -0.25% at
end-2022. As the outlook fades for new recovery measures from the
ECB, the messaging of the ECB will need to be as subtle as it is
convincing to prevent a widening of spreads on peripherals. These
could, however, widen slightly for a time. The risk premiums
offered by France and Italy should be, respectively, 25 and 130
basis points above the Bund at end-2022.
Appendix 1 – Specific items, Crédit Agricole Group and
Crédit Agricole S.A.
Group Crédit Agricole – Specific items, Q4-21 and Q4-20, 2021
and 2020
|
|
Q4-21 |
Q4-20 |
|
2021 |
2020 |
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
1 |
1 |
18 |
13 |
|
6 |
4 |
11 |
8 |
Loan portfolio hedges (LC) |
|
4 |
3 |
(30) |
(21) |
|
(17) |
(13) |
10 |
7 |
Home Purchase Savings Plans (LCL) |
|
9 |
7 |
2 |
1 |
|
(1) |
(1) |
(14) |
(9) |
Home Purchase Savings Plans (CC) |
|
22 |
16 |
(14) |
(10) |
|
22 |
16 |
(64) |
(44) |
Home Purchase Savings Plans (RB) |
|
85 |
60 |
52 |
35 |
|
85 |
61 |
(81) |
(55) |
Liability management upfront payment (CC) |
|
- |
- |
- |
- |
|
- |
- |
(41) |
(28) |
Support to insured clients Covid-19 (LCL) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(1) |
Support to insured clients Covid-19 (AG) |
|
- |
- |
- |
- |
|
- |
- |
(143) |
(97) |
Support to insured clients Covid-19 (RB) |
|
- |
- |
- |
- |
|
- |
- |
(94) |
(64) |
Ongoing sale project NBI (WM) |
|
- |
- |
- |
- |
|
(1) |
(1) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Exceptional contribution on supplementary health insurance premiums
(AG) |
|
- |
- |
(22) |
(15) |
|
- |
- |
(22) |
(15) |
Reclassification of held-for-sale operations - NBI (IRB) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Total
impact on revenues |
|
120 |
86 |
5 |
4 |
|
92 |
65 |
(439) |
(298) |
Covid-19 donation (AG) |
|
- |
- |
- |
- |
|
- |
- |
(38) |
(38) |
Covid-19 donation (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(8) |
(4) |
Covid-19 donation (CC) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
Covid-19 donation (RB) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(7) |
(3) |
|
(4) |
(2) |
(19) |
(9) |
Transformation costs (LC) |
|
(24) |
(12) |
- |
- |
|
(45) |
(23) |
- |
- |
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
(13) |
(9) |
- |
- |
Lyxor aquisition costs (AG) |
|
(16) |
(8) |
- |
- |
|
(16) |
(8) |
- |
- |
Voluntary redundancy plan CA Italia |
|
(190) |
(109) |
- |
- |
|
(190) |
(109) |
- |
- |
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Creval integrations costs (IRB) |
|
(23) |
(13) |
- |
- |
|
(32) |
(17) |
- |
- |
Creval other adjustments |
|
(19) |
(12) |
- |
- |
|
(19) |
(12) |
- |
- |
Exceptional contribution to the Italian banks rescue plan
(IRB) |
|
(25) |
(14) |
(11) |
(7) |
|
(25) |
(14) |
(11) |
(7) |
Reclassification of held-for-sale operations - Costs (IRB) |
|
- |
- |
- |
- |
|
(1) |
(1) |
- |
- |
Total
impact on operating expenses |
|
(297) |
(168) |
(18) |
(11) |
|
(347) |
(197) |
(96) |
(79) |
Restatement SRF 2016-2020 (CR) |
|
- |
- |
- |
- |
|
55 |
55 |
- |
- |
Restatement SRF 2016-2020 (CC) |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Total
impact on SRF |
|
- |
- |
- |
- |
|
185 |
185 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Triggering of the Switch2 (AG) |
|
- |
- |
- |
- |
|
- |
- |
65 |
44 |
Triggering of the Switch2 (RB) |
|
- |
- |
- |
- |
|
- |
- |
(65) |
(44) |
Adjustement on switch 2 activation (RB) |
|
- |
- |
- |
- |
|
- |
- |
28 |
19 |
Adjustement on switch 2 activation (GEA) |
|
- |
- |
- |
- |
|
- |
- |
(28) |
(19) |
Creval - Cost of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
(25) |
(21) |
- |
- |
Disposal in receivables and additional provisioning of the
portfolio CA Italia |
|
(319) |
(180) |
- |
- |
|
(319) |
(180) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Total
impact on cost of credit risk |
|
(319) |
(180) |
- |
- |
|
(344) |
(202) |
0 |
0 |
Provision recovery on FCA bank fine (SFS) |
|
- |
- |
89 |
89 |
|
- |
- |
89 |
89 |
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Total
impact equity-accounted entities |
|
- |
- |
89 |
89 |
|
5 |
5 |
89 |
89 |
|
|
|
|
|
|
|
|
|
|
|
Creval integrations costs (IRB) |
|
- |
|
- |
- |
|
1 |
|
- |
- |
Creval acquisition costs (IRB) |
|
- |
- |
- |
- |
|
(16) |
(9) |
- |
- |
Total
impact on Net income on other assets |
|
- |
- |
- |
- |
|
(15) |
(9) |
- |
- |
Impairment CA Italia goodwill (CC) |
|
- |
- |
(965) |
(884) |
|
- |
- |
(965) |
(884) |
Badwill Creval (IRB) |
|
119 |
101 |
- |
- |
|
497 |
422 |
- |
- |
Total
impact on change of value of goodwill |
|
119 |
101 |
(965) |
(884) |
|
497 |
422 |
(965) |
(884) |
"Affrancamento" gain Tax (SFS) |
|
108 |
66 |
- |
- |
|
108 |
66 |
- |
- |
"Affrancamento" gain (IRB) |
|
59 |
50 |
- |
- |
|
97 |
82 |
- |
- |
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
114 |
80 |
- |
- |
Off-balance sheet DTA |
|
105 |
89 |
- |
- |
|
105 |
89 |
- |
- |
Total
impact on tax |
|
272 |
205 |
- |
- |
|
424 |
317 |
- |
- |
Reclassification of held-for-sale operations (SFS) |
|
- |
- |
(66) |
(66) |
|
- |
- |
(135) |
(135) |
Reclassification of held-for-sale operation Bankoa (IRB) |
|
- |
- |
(1) |
(1) |
|
- |
- |
(42) |
(42) |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(5) |
(5) |
impairment on goodwill (AHM) |
|
- |
- |
- |
- |
|
- |
- |
(55) |
(55) |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(7) |
(7) |
|
- 1 |
(1) |
(7) |
(7) |
Ongoing sale project (WM) |
|
- |
- |
(24) |
(24) |
|
5 |
5 |
(24) |
(24) |
Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
(98) |
(98) |
|
3 |
3 |
(268) |
(268) |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific items |
|
(104) |
44 |
(987) |
(899) |
|
500 |
589 |
(1,679) |
(1,440) |
Asset gathering |
|
(16) |
(8) |
(83) |
(64) |
|
100 |
74 |
(227) |
(174) |
French Retail banking |
|
94 |
67 |
91 |
62 |
|
126 |
106 |
(206) |
(145) |
International Retail banking |
|
(292) |
(88) |
(20) |
(16) |
|
71 |
226 |
(68) |
(60) |
Specialised financial services |
|
108 |
66 |
24 |
24 |
|
113 |
71 |
(45) |
(45) |
Large customers |
|
(19) |
(8) |
(19) |
(11) |
|
(61) |
(33) |
3 |
6 |
Corporate centre |
|
22 |
16 |
(979) |
(894) |
|
152 |
146 |
(1,136) |
(1,021) |
* Impact before tax and before minority interests
Crédit Agricole S.A. – Specific items, Q4-21 and Q4-20, 2021 and
2020
|
|
Q4-21 |
Q4-20 |
|
2021 |
2020 |
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
1 |
1 |
18 |
13 |
|
6 |
4 |
11 |
8 |
Loan portfolio hedges (LC) |
|
4 |
3 |
(30) |
(20) |
|
(17) |
(12) |
10 |
7 |
Home Purchase Savings Plans (FRB) |
|
9 |
6 |
2 |
1 |
|
(1) |
(1) |
(14) |
(9) |
Home Purchase Savings Plans (CC) |
|
22 |
16 |
(14) |
(10) |
|
22 |
16 |
(64) |
(44) |
Liability management upfront payment (CC) |
|
- |
- |
- |
- |
|
- |
- |
(41) |
(28) |
Support to insured clients Covid-19 (LCL) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(1) |
Support to insured clients Covid-19 (AG) |
|
- |
- |
- |
- |
|
- |
- |
(143) |
(97) |
Ongoing sale project NBI (WM) |
|
- |
- |
- |
- |
|
(1) |
(1) |
- |
- |
Reclassification of held-for-sale operations - NBI (IRB) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Exceptional contribution on supplementary health insurance premiums
(AG) |
|
- |
- |
(22) |
(15) |
|
- |
- |
(22) |
(15) |
Total
impact on revenues |
|
36 |
25 |
(47) |
(31) |
|
7 |
4 |
(264) |
(179) |
Covid-19 donation (AG) |
|
- |
- |
- |
- |
|
- |
- |
(38) |
(38) |
Covid-19 donation (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(8) |
(4) |
Covid-19 donation (CC) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(7) |
(3) |
|
(4) |
(2) |
(19) |
(9) |
Transformation costs (LC) |
|
(24) |
(12) |
- |
- |
|
(45) |
(23) |
- |
- |
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
(13) |
(9) |
- |
- |
Lyxor aquisition costs (AG) |
|
(16) |
(8) |
- |
- |
|
(16) |
(8) |
- |
- |
Voluntary redundancy plan CA Italia |
|
(190) |
(97) |
- |
- |
|
(190) |
(97) |
- |
- |
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Creval integration costs (IRB) |
|
(23) |
(12) |
- |
- |
|
(32) |
(15) |
- |
- |
Creval other adjustments |
|
(19) |
(11) |
- |
- |
|
(19) |
(11) |
- |
- |
Reclassification of held-for-sale operations - Costs (IRB) |
|
- |
- |
- |
|
|
(0) |
(0) |
|
|
Exceptional contribution on supplementary health insurance premiums
(AG) |
|
(25) |
(13) |
(11) |
(6) |
|
(25) |
(13) |
(11) |
(6) |
Total
impact on operating expenses |
|
(297) |
(152) |
(18) |
(10) |
|
(347) |
(180) |
(86) |
(68) |
Restatement SRF2016-2020 |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Total
impact on SRF |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Triggering of the Switch2 (AG) |
|
- |
- |
- |
- |
|
- |
- |
65 |
44 |
Creval - Cost of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
(25) |
(19) |
- |
- |
Better fortune adjustment on switch 2 (AG) |
|
- |
- |
(38) |
(26) |
|
- |
- |
(38) |
(26) |
Disposal in receivables and additional provisioning of the
portfolio CA Italia |
|
(319) |
(161) |
- |
- |
|
(319) |
(161) |
- |
- |
Adjustement on switch 2 activation (GEA) |
|
- |
- |
- |
- |
|
- |
- |
(28) |
(19) |
Total
impact on cost of credit risk |
|
(319) |
(161) |
(38) |
(26) |
|
(344) |
(180) |
- |
- |
Provision recovery on FCA bank fine (SFS) |
|
- |
- |
89 |
89 |
|
- |
- |
89 |
89 |
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Total
impact equity-accounted entities |
|
- |
- |
89 |
89 |
|
5 |
5 |
89 |
89 |
Creval integration costs (IRB) |
|
- |
|
- |
- |
|
1 |
|
- |
- |
Creval acquisition costs (IRB) |
|
- |
|
- |
- |
|
(16) |
(8) |
- |
- |
Total
net income on other assets |
|
- |
- |
- |
- |
|
(15) |
(8) |
- |
- |
Impairment CA Italia goodwill (CC) |
|
- |
- |
(903) |
(778) |
|
- |
- |
(903) |
(778) |
Badwill Creval (IRB) |
|
119 |
90 |
- |
- |
|
497 |
376 |
- |
- |
Total
impact on change of value of goodwill |
|
119 |
90 |
(903) |
(778) |
|
497 |
376 |
(903) |
(778) |
"Affrancamento" gain Tax (SFS) |
|
108 |
66 |
- |
- |
|
108 |
66 |
- |
- |
"Affrancamento" gain (IRB) |
|
59 |
45 |
- |
- |
|
97 |
73 |
- |
- |
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
114 |
78 |
- |
- |
Off-balance sheet DTA |
|
105 |
80 |
- |
- |
|
105 |
80 |
- |
- |
Total
impact on tax |
|
272 |
190 |
- |
- |
|
424 |
296 |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(7) |
(7) |
|
(1) |
(1) |
(7) |
(7) |
Impairment on goodwill (CC) |
|
- |
- |
- |
- |
|
- |
- |
(55) |
(55) |
Reclassification of held-for-sale operations (SFS) |
|
- |
- |
(66) |
(66) |
|
- |
- |
(135) |
(135) |
Ongoing sale project (WM) |
|
- |
- |
(24) |
(23) |
|
4.7 |
5 |
(24) |
(23) |
Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
(97) |
(96) |
|
3.2 |
3.1 |
(221) |
(221) |
Total impact of specific items |
|
(189) |
(7) |
(1,013) |
(851) |
|
361 |
447 |
(1,385) |
(1,157) |
Asset gathering |
|
(16) |
(8) |
(83) |
(64) |
|
100 |
72 |
(227) |
(174) |
French Retail banking |
|
9 |
6 |
2 |
1 |
|
(14) |
(10) |
(16) |
(10) |
International Retail banking |
|
(292) |
(78) |
(19) |
(14) |
|
71 |
200 |
(27) |
(18) |
Specialised financial services |
|
108 |
66 |
24 |
24 |
|
113 |
71 |
(45) |
(45) |
Large customers |
|
(19) |
(8) |
(19) |
(10) |
|
(61) |
(33) |
3 |
6 |
Corporate centre |
|
22 |
16 |
(917) |
(788) |
|
152 |
146 |
(1,074) |
(915) |
* Impact before tax and before minority interests
Appendix 2 – Crédit Agricole Group: income statement by
business line
Group Crédit Agricole – Results by business lines, Q4-21
and Q4-20
Q4-21 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,680 |
939 |
842 |
1,608 |
686 |
1,565 |
181 |
9,500 |
Operating expenses excl. SRF |
(2,337) |
(603) |
(867) |
(733) |
(347) |
(975) |
(246) |
(6,109) |
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
1,343 |
336 |
(25) |
875 |
338 |
590 |
(65) |
3,391 |
Cost of risk |
(130) |
(54) |
(455) |
1 |
(136) |
(1) |
(8) |
(783) |
Equity-accounted entities |
1 |
- |
2 |
21 |
67 |
2 |
- |
92 |
Net income on other assets |
22 |
4 |
(0) |
0 |
(14) |
0 |
(3) |
10 |
Change in value of goodwill |
- |
- |
119 |
- |
- |
0 |
- |
119 |
Income before tax |
1,235 |
285 |
(359) |
898 |
256 |
591 |
(76) |
2,829 |
Tax |
(292) |
(70) |
330 |
(175) |
57 |
(157) |
37 |
(269) |
Net income from discont'd or held-for-sale ope. |
- |
- |
4 |
(0) |
- |
- |
(0) |
4 |
Net income |
943 |
215 |
(25) |
723 |
313 |
434 |
(39) |
2,564 |
Non controlling interests |
(0) |
(0) |
(1) |
(116) |
(75) |
(18) |
0 |
(210) |
Net income Group Share |
943 |
215 |
(26) |
607 |
238 |
416 |
(39) |
2,354 |
Q4-20 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,425 |
904 |
1,634 |
712 |
654 |
1,424 |
(88) |
8,665 |
|
Operating expenses excl. SRF |
(2,311) |
(599) |
(735) |
(481) |
(319) |
(911) |
(230) |
(5,585) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,114 |
305 |
899 |
230 |
335 |
513 |
(317) |
3,080 |
|
Cost of risk |
(378) |
(89) |
(60) |
(130) |
(154) |
(111) |
2 |
(919) |
|
Equity-accounted entities |
1 |
- |
20 |
- |
140 |
2 |
- |
163 |
|
Net income on other assets |
(7) |
1 |
1 |
(0) |
(10) |
(0) |
(9) |
(26) |
|
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
(965) |
(965) |
|
Income before tax |
731 |
216 |
861 |
100 |
311 |
405 |
(1,290) |
1,334 |
|
Tax |
(205) |
(68) |
(274) |
(16) |
(44) |
(55) |
28 |
(634) |
|
Net income from discont'd or held-for-sale ope. |
5 |
- |
(24) |
(7) |
(66) |
- |
0 |
(91) |
|
Net income |
531 |
148 |
564 |
77 |
201 |
350 |
(1,262) |
609 |
|
Non controlling interests |
0 |
(0) |
(119) |
(15) |
(12) |
(16) |
82 |
(80) |
|
Net income Group Share |
531 |
148 |
445 |
62 |
189 |
334 |
(1,180) |
530 |
|
Group Crédit Agricole – Results by business lines, 2021 and
2020
2021 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
14,096 |
3,696 |
3,180 |
6,528 |
2,692 |
6,318 |
312 |
36,822 |
Operating expenses excl. SRF |
(8,986) |
(2,312) |
(2,299) |
(3,005) |
(1,379) |
(3,707) |
(913) |
(22,602) |
SRF |
(87) |
(59) |
(33) |
(7) |
(23) |
(328) |
58 |
(479) |
Gross operating income |
5,023 |
1,325 |
848 |
3,516 |
1,290 |
2,283 |
(543) |
13,741 |
Cost of risk |
(606) |
(222) |
(786) |
(18) |
(505) |
(39) |
(18) |
(2,193) |
Equity-accounted entities |
(11) |
- |
3 |
84 |
307 |
8 |
- |
392 |
Net income on other assets |
28 |
6 |
(13) |
(0) |
(8) |
(39) |
0 |
(27) |
Change in value of goodwill |
- |
- |
497 |
- |
- |
0 |
- |
497 |
Income before tax |
4,434 |
1,109 |
549 |
3,582 |
1,084 |
2,212 |
(561) |
12,409 |
Tax |
(1,249) |
(309) |
198 |
(643) |
(120) |
(512) |
172 |
(2,463) |
Net income from discontinued or held-for-sale operations |
- |
- |
1 |
5 |
- |
- |
(0) |
6 |
Net income |
3,185 |
800 |
748 |
2,944 |
964 |
1,700 |
(389) |
9,953 |
Non controlling interests |
(1) |
(0) |
(132) |
(501) |
(157) |
(57) |
(4) |
(852) |
Net income Group Share |
3,184 |
800 |
617 |
2,443 |
808 |
1,643 |
(393) |
9,101 |
2020 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
13,056 |
3,521 |
5,749 |
2,724 |
2,526 |
6,297 |
(278) |
33,596 |
Operating expenses excl. SRF |
(8,712) |
(2,277) |
(2,865) |
(1,785) |
(1,268) |
(3,523) |
(836) |
(21,266) |
SRF |
(123) |
(42) |
(6) |
(25) |
(20) |
(260) |
(86) |
(562) |
Gross operating income |
4,221 |
1,203 |
2,879 |
914 |
1,238 |
2,514 |
(1,200) |
11,768 |
Cost of risk |
(1,042) |
(390) |
(55) |
(566) |
(732) |
(829) |
(36) |
(3,651) |
Equity-accounted entities |
2 |
- |
66 |
- |
344 |
7 |
(0) |
419 |
Net income on other assets |
(13) |
2 |
3 |
72 |
(3) |
1 |
(10) |
52 |
Change in value of goodwill |
(3) |
- |
- |
- |
- |
- |
(965) |
(968) |
Income before tax |
3,165 |
814 |
2,893 |
419 |
847 |
1,693 |
(2,212) |
7,620 |
Tax |
(1,067) |
(252) |
(775) |
(103) |
(69) |
(277) |
378 |
(2,165) |
Net income from discontinued or held-for-sale operations |
(0) |
- |
(24) |
(48) |
(135) |
- |
(55) |
(262) |
Net income |
2,098 |
563 |
2,095 |
268 |
643 |
1,416 |
(1,889) |
5,193 |
Non controlling interests |
(3) |
(0) |
(362) |
(75) |
(84) |
(57) |
77 |
(504) |
Net income Group Share |
2,096 |
562 |
1,733 |
193 |
559 |
1,359 |
(1,812) |
4,689 |
Appendix 3 – Crédit Agricole S.A. : results by
business line
Crédit Agricole S.A. – Results by business lines, Q4-21 and
Q4-20
Q4-21 (stated)
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,608 |
1,566 |
690 |
939 |
824 |
187 |
5,815 |
Operating expenses excl. SRF |
(733) |
(975) |
(352) |
(603) |
(851) |
(207) |
(3,720) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
876 |
591 |
338 |
336 |
(26) |
(19) |
2,094 |
Cost of risk |
1 |
(1) |
(136) |
(54) |
(451) |
(6) |
(647) |
Equity-accounted entities |
21 |
2 |
67 |
- |
2 |
(10) |
82 |
Net income on other assets |
0 |
0 |
(14) |
4 |
(0) |
(0) |
(9) |
Income before tax |
898 |
592 |
256 |
285 |
(356) |
(36) |
1,640 |
Tax |
(175) |
(157) |
57 |
(70) |
330 |
24 |
9 |
Net income from discontinued or held-for-sale operations |
(1) |
- |
- |
- |
4 |
- |
4 |
Net income |
723 |
435 |
313 |
215 |
(23) |
(12) |
1,652 |
Non controlling interests |
(122) |
(25) |
(75) |
(10) |
6 |
1 |
(224) |
Net income Group Share |
602 |
410 |
238 |
205 |
(16) |
(11) |
1,428 |
Q4-20 (stated) |
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,644 |
1,426 |
654 |
904 |
692 |
(68) |
5,251 |
Operating expenses excl. SRF |
(735) |
(911) |
(319) |
(599) |
(465) |
(198) |
(3,226) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
909 |
514 |
335 |
305 |
228 |
(266) |
2,025 |
Cost of risk |
(60) |
(111) |
(154) |
(89) |
(131) |
6 |
(538) |
Equity-accounted entities |
20 |
2 |
140 |
- |
- |
(26) |
137 |
Net income on other assets |
1 |
(0) |
(10) |
1 |
(0) |
(0) |
(9) |
Income before tax |
871 |
406 |
311 |
216 |
96 |
(1,189) |
712 |
Tax |
(275) |
(55) |
(44) |
(68) |
(15) |
21 |
(436) |
Net income from discontinued or held-for-sale operations |
(24) |
- |
(66) |
- |
(7) |
0 |
(96) |
Net income |
572 |
351 |
201 |
148 |
74 |
(1,167) |
179 |
Non controlling interests |
(123) |
(23) |
(12) |
(7) |
(19) |
128 |
(56) |
Net income Group Share |
449 |
328 |
189 |
141 |
56 |
(1,040) |
124 |
Crédit Agricole S.A. – Results by business line, 2021 and
2020
2021 (stated)
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
6,527 |
6,319 |
2,697 |
3,696 |
3,113 |
306 |
22,657 |
Operating expenses excl. SRF |
(3,005) |
(3,707) |
(1,383) |
(2,312) |
(2,242) |
(779) |
(13,429) |
SRF |
(7) |
(328) |
(23) |
(59) |
(33) |
58 |
(392) |
Gross operating income |
3,515 |
2,284 |
1,290 |
1,325 |
838 |
(415) |
8,836 |
Cost of risk |
(18) |
(39) |
(505) |
(222) |
(779) |
(12) |
(1,576) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
84 |
8 |
307 |
- |
3 |
(29) |
373 |
Net income on other assets |
(0) |
(39) |
(8) |
6 |
(13) |
3 |
(51) |
Change in value of goodwill |
- |
0 |
- |
- |
497 |
- |
497 |
Income before tax |
3,581 |
2,213 |
1,084 |
1,109 |
545 |
(453) |
8,080 |
Tax |
(642) |
(512) |
(120) |
(309) |
199 |
148 |
(1,236) |
Net income from discontinued or held-for-sale operations |
5 |
- |
- |
- |
1 |
- |
5 |
Net income |
2,944 |
1,701 |
964 |
800 |
745 |
(305) |
6,849 |
Non controlling interests |
(524) |
(90) |
(157) |
(36) |
(187) |
(12) |
(1,005) |
Net income Group Share |
2,420 |
1,611 |
808 |
764 |
558 |
(317) |
5,844 |
2020 (stated) |
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
5,734 |
6,297 |
2,526 |
3,521 |
2,659 |
(238) |
20,500 |
Operating expenses excl. SRF |
(2,864) |
(3,523) |
(1,268) |
(2,277) |
(1,728) |
(792) |
(12,452) |
SRF |
(6) |
(260) |
(20) |
(42) |
(25) |
(86) |
(439) |
Gross operating income |
2,864 |
2,514 |
1,238 |
1,203 |
906 |
(1,116) |
7,609 |
Cost of risk |
(55) |
(829) |
(732) |
(390) |
(569) |
(29) |
(2,606) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
66 |
7 |
344 |
- |
- |
(4) |
413 |
Net income on other assets |
3 |
1 |
(3) |
2 |
72 |
0 |
75 |
Change in value of goodwill |
- |
- |
- |
- |
- |
(903) |
(903) |
Income before tax |
2,878 |
1,693 |
847 |
814 |
408 |
(2,052) |
4,588 |
Tax |
(770) |
(278) |
(69) |
(252) |
(101) |
341 |
(1,129) |
Net income from discontinued or held-for-sale operations |
(24) |
- |
(135) |
- |
(8) |
(55) |
(221) |
Net income |
2,084 |
1,415 |
643 |
563 |
299 |
(1,766) |
3,238 |
Non controlling interests |
(379) |
(85) |
(84) |
(25) |
(92) |
119 |
(546) |
Net income Group Share |
1,706 |
1,330 |
559 |
537 |
207 |
(1,647) |
2,692 |
Appendix 4 – Methods used to calculate earnings per
share, net asset value per share
Crédit Agricole S.A. – Data per share, net book value per share
and ROTE
(€m) |
|
Q4-21 |
Q4-20 |
|
2021 |
2020 |
|
∆ Q4/Q4 |
∆ 2021/2020 |
|
|
|
|
|
|
|
|
|
|
Net income
Group share - stated |
|
1,428 |
124 |
|
5,844 |
2,692 |
|
x 11,5 |
x 2,2 |
- Interests on
AT1, including issuance costs, before tax |
|
(63) |
(79) |
|
(353) |
(373) |
|
(20.3%) |
(5.4%) |
NIGS
attributable to ordinary shares - stated |
[A] |
1,365 |
45 |
|
5,491 |
2,319 |
|
x 30,6 |
x 2,4 |
Average number
shares in issue, excluding treasury shares (m) |
[B] |
2,990.0 |
2,893.4 |
|
2,990.0 |
2,885.3 |
|
+3.3% |
+3.6% |
Net earnings per share - stated |
[A]/[B] |
0.46 € |
0.02 € |
|
1.84 € |
0.80 € |
|
x 29,6 |
x 2,3 |
Underlying net
income Group share (NIGS) |
|
1,435 |
975 |
|
5,397 |
3,849 |
|
+47.2% |
+40.2% |
Underlying
NIGS attributable to ordinary shares |
[C] |
1,372 |
896 |
|
5,044 |
3,476 |
|
+53.2% |
+45.1% |
Net earnings per share - underlying |
[C]/[B] |
0.46 € |
0.31 € |
|
1.69 € |
1.20 € |
|
+48.2% |
+40.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
31/12/2021 |
31/12/2020 |
|
|
|
Shareholder's
equity Group share |
|
|
|
|
68,217 |
65,217 |
|
|
|
- AT1
issuances |
|
|
|
|
(4,888) |
(5,888) |
|
|
|
- Unrealised
gains and losses on OCI - Group share |
|
|
|
|
(2,125) |
(3,083) |
|
|
|
- Payout
assumption on annual results* |
|
|
|
|
(3,176) |
(914) |
|
|
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
|
|
58,027 |
55,333 |
|
|
|
- Goodwill
& intangibles** - Group share |
|
|
|
|
(18,581) |
(17,488) |
|
|
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
|
|
39,445 |
37,844 |
|
|
|
Total shares
in issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,025.2 |
2,915.6 |
|
|
|
NBV per share
, after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
19.2 € |
19.0 € |
|
|
|
+ Dividend to
pay (€) |
[H] |
|
|
|
1.05 € |
0.31 € |
|
|
|
NBV per share
, before deduction of dividend to pay (€) |
|
|
|
|
20.2 € |
19.3 € |
|
|
|
TNBV per
share, after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
13.0 € |
13.0 € |
|
|
|
TNBV per sh.,
before deduct. of divid. to pay (€) |
[G]+[H] |
|
|
|
14.1 € |
13.3 € |
|
|
|
* dividend
proposed to the Board meeting to be paid |
|
|
|
|
|
|
|
|
|
** including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
2021 |
2020 |
|
|
|
Net income
Group share - stated |
[K] |
|
|
|
5,844 |
2,692 |
|
|
|
Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
|
|
|
IFRIC |
[M] |
|
|
|
0 |
0 |
|
|
|
Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*12/12+[M] |
|
|
|
5,844 |
2,692 |
|
|
|
Interests on
AT1, including issuance costs, before tax, annualised |
[O] |
|
|
|
-353 |
-373 |
|
|
|
Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
5,491 |
2,319 |
|
|
|
Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
|
|
38,645 |
37,314 |
|
|
|
Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
14.2% |
6.2% |
|
|
|
Underlying Net
income Group share |
[Q] |
|
|
|
5,397 |
3,849 |
|
|
|
Underlying
NIGS annualised |
[R] = ([Q]-[M])*12/12+[M] |
|
|
|
5,397 |
3,849 |
|
|
|
Underlying
NIGS adjusted |
[S] = [R]+[O] |
|
|
|
5,044 |
3,476 |
|
|
|
Underlying
ROTE adjusted(%) |
= [S] / [J] |
|
|
|
13.1% |
9.3% |
|
|
|
*** including
assumption of dividend for the current exercise |
|
|
|
|
0.0% |
0.0% |
|
|
|
* dividend proposed to the Board meeting to be paid** including
goodwill in the equity-accounted entities
(1) Average of the TNBV not revaluated attrib. to ordinary
shares calculated based on 31/12/2021 figures and 31/12/2020
restated figures as presented in the table above
Alternative Performance Indicators
NBV Net Book Value not
re-evaluatedThe Net Book Value not re-evaluated
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 per share 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 loanDefaulting loan.
The debtor is considered to be in default when at least one of the
following 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.
Impaired (or doubtful) loan coverage
ratio: This ratio divides the outstanding provisions by
the impaired gross customer outstandings.
Impaired (or doubtful) loan
ratio:This ratio divides the gross customer outstandings
depreciated on an individual basis, before provisions, by the total
gross customer outstandings.
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).
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 issuing 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 fourth quarter and year 2021
comprises this press release, the presentation and the attached
appendices 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 twelve-month
period ended 31 December 2021 have been prepared in accordance with
IFRS as adopted in the European Union and applicable at that date,
and with prudential regulations currently in force. The Statutory
Auditor’s audit work on the financial consolidated statements is
underway.
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. 2020
Universal Registration Document and its A.01 update (including all
regulatory information about the Crédit Agricole Group) were 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.
On 30 June 2020, once all necessary regulatory
approvals were secured, Amundi acquired the entire share capital of
Sabadell Asset Management.
At 30 June 2021, following the buyback by Crédit
Agricole Consumer Finance of 49% of the share capital of the CACF
Bankia S.A. joint venture, CACF Bankia S.A. is fully consolidated
in Crédit Agricole S.A.’s consolidated financial statements.
As at 30 June 2021 following the takeover bid
launched by Crédit Agricole Italia for Credito Valtellinese, 100%
of Credito Valtellinese is held by Crédit Agricole Italia and is
fully consolidated in the consolidated financial statements of
Crédit Agricole S.A.
At 31 December 2021, Amundi announcement
completion of the Lyxor acquisition. Lyxor is fully consolidated in
the consolidated financial statements of Crédit Agricole S.A. The
transaction created no impact on the consolidated earnings of
Crédit Agricole S.A. for the year ended 31 December 2021..
Financial Agenda
5 May 2022
Publication
of the 2022 first quarter results24 May 2022
General
Meeting in Montpellier 4 August 2022
Publication
of 2022 second quarter and first half results10 November 2022
Publication of the
2022 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Charlotte de
Chavagnac +33 (0)1
57 72 11
17 charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain + 33 1 43 23
25
41 olivier.tassain@credit-agricole-sa.frBertrand
Schaefer + 33 1 49
53 43
76 bertrand.schaefer@ca-fnca.fr
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
Institutional
shareholders |
+ 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 |
|
|
|
Clotilde
L’Angevin |
+ 33 1 43 23 32
45 |
clotilde.langevin@credit-agricole-sa.fr |
Equity
investors: |
|
|
Fethi Azzoug |
+ 33 1 57 72 03
75 |
Fethi.azzoug@credit-agricole-sa.fr |
Joséphine
Brouard |
+ 33 1 43 23 48
33 |
joséphine.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 |
Annabelle
Wiriath |
+ 33 1 43 23 55
52 |
annabelle.wiriath@credit-agricole-sa.fr |
|
|
|
Credit investors and rating agencies: |
|
Caroline
Crépin |
+ 33 1 43 23 83
65 |
caroline.crepin@credit-agricole-sa.fr |
Marie-Laure
Malo |
+ 33 1 43 23 10
21 |
marielaure.malo@credit-agricole-sa.fr |
Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@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 Underlying RoTE2 Underlying3 Underlying and excl. SRF4
Excluding state-guaranteed loans for Q3-2020 (€2.6 billion)
and negligible for Q3-20215 When an ESG methodology is applicable6
ASF Sofergie market; source CALEF 20217 2020 Le Figaro ranking
8 Presentation of methodological framework. The
2019, 2020 and 2021 coal exposure and energy mix data were
estimated using the GreenWay Platform. The following estimation
method was used: • For dedicated financing: the total amount
outstanding on the balance sheet is recognised;• For investments
and non-dedicated financing: the balance sheet amounts outstanding
are weighted by the counterparty’s revenue distribution. This means
that a correspondence is made between internal data (amounts
outstanding) and external data (distribution of corporate revenues
by energy produced, from “Trucost S&P”, at the end of 2021).For
asset management activity: these data have been estimated by
considering indirect exposure (percentage of the revenues of
company investments made in energy). To arrive at this, we used the
public data available at the end of 2021. The data relate to assets
under passive and active management but exclude delegated
management (in the context of joint ventures or management under
private banking mandates) as well as Amundi Immobilier assets,
which represent 72% of total assets under management. For this
scope, the Trucost data covers €482 billion of outstandings
excluding subsidiaries.For large corporate financing activities:
these data were estimated by considering both direct financing of
dedicated assets and indirect exposures in energy production
calculated on the basis of client revenues. To arrive at this, we
used the public data available at the end of 2021. All
on-balance-sheet financing activities for large corporates are
recognised (only the amounts outstanding on the assets side of the
balance sheet are included). For this scope, the Trucost data
covers €178.3 billion of financing. For investment activity linked
to life insurance policies: these data have been estimated by
considering non-unit-linked funds (percentage of customer revenues
from energy). The data covers directly managed listed investments,
listed investments managed under mandates and directly managed
unlisted investments. Life insurance investment activities managed
under asset management may include assets already counted in the
asset management activity section. For the financing activity of
SMEs and mid-caps: these data have been estimated by considering
the direct financing of dedicated assets in the energy production
of SMEs and mid-caps. To arrive at this, the NAF codifications and
data from the management tools for SME and mid-cap financing
activity are used.9 Large corporates financing activities in 2020:
coal €311 million, oil €5,953 million, gas
€5,314 million, nuclear €65 million, renewable energy
€4,004 million; and in 2019: coal €370 million, oil
€6,746 million, gas €4,693 million, nuclear
€61 million; renewable energies €3,162 million. 10 Asset
management activity in 2020: coal €750 million, oil
€18,715 million, gas €9,891 million, nuclear
€2,898 million, renewable energies €2,682 million; and in
2019: coal €714 million, oil €20,838 million, gas
€10,149 million, nuclear €2,763 million, renewable
energies €2,162 million.11 Investments related to life
insurance policies in 2020: fossil fuel €8,006 million,
nuclear €1,895 million, renewable energies
€2,664 million; and in 2019: fossil fuel €7,570 million,
nuclear €1,987 million, renewable energies
€2,100 million12 SME and mid-cap financing activities in 2020:
fossil fuel €114 million, renewable energies
€241 million; and in 2019: fossil fuel €65 million,
renewable energies €224 million.13 Full year impact of €104m
of the unwinding of the last 50% in Q4-21 (-60bp for CASA CET1)
14 in particular Creval, Lyxor, Sabadell AM,
Linxo, Santander Securities Services, KAS Bank, GNB Seguros, Pro
Family, Olinn.15 in particular IWM Miami, CA Bank Romania, Banque
Saudi Fransi. The figure includes the impact of the disposal of a
minority stake in CACEIS to Santander in connection with the
acquisition of Santander Securites Services.16 Including Europ
Assistance, Abanca, Santander, Sabadell AM, Bank of China, Société
Générale (with Azqore), BNY Mellon (with Amundi Technology)17
Target announced at the Consumer Finance investor day in December
202018 Underlying, excluding specific items. See Appendixes for
more details on specific items. 19 Entities excluded in 2021:
Creval, CACF NL, CA Serbie, La Médicale, and, for Amundi, Sabadell
AM, Amundi BOC, Fund Channel, Anatec.; Entities excluded / adjusted
in 2020: CA Serbia, La Médicale, CACEIS (proforma consolidation).20
Entities excluded in 2021: Creval, CACF NL, CA Serbie, La Médicale,
and, for Amundi, Sabadell AM, Amundi BOC, Fund Channel, Anatec.;
Entities excluded / adjusted in 2020: CA Serbia, La Médicale,
CACEIS (proforma consolidation).21 The cost of risk relative to
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
quarters22 The cost of risk relative to 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 quarter23 For the purpose of the calculation
excluding scope effect entities excluded in 2021: Creval, CACF NL,
CA Serbia, La Médicale and, for Amundi, Sabadell AM, Amundi BOC,
Fund Channel, Anatec. entities excluded in 2020: CA Serbia, La
Médicale, CACEIS Fonds Service GmbH (pro-forma consolidation)24
Since third quarter 2020, CACF NL was classified under IFRS 5, as
the entity was subject to a disposal plan. As this disposal plan
has been suspended, CACF NL has no longer been classified under
IFRS 5 since third quarter 2021.25 Equipment rate - Home-Car-Health
policies, Legal, All Mobile/Portable or personal accident
insurance26 Number of customers with an active profile on the Ma
Banque app or who had visited CAEL (CA online) during the month /
number of adult customers having an active demand deposit account27
The cost of risk on outstandings reached 10 basis points over a
four rolling quarter period and 9 basis points on an annualised
quarterly basis in third quarter 202128 Variation compared to 2020
stated result which included CA Italia goodwill impairment in
2020.29 Underlying, excluding specific items. See Appendixes for
more details on specific items. 30 Entities excluded in 2021:
Creval, CACF NL, CA Serbie, La Médicale, and, for Amundi, Sabadell
AM, Amundi BOC, Fund Channel, Anatec.; Entities excluded / adjusted
in 2020: CA Serbia, La Médicale, CACEIS (proforma consolidation).31
Entities excluded in 2021: La Médicale, Sabadell AM, Amundi BOC,
Fund Channel, Anatec; Entities excluded / adjusted in 2020: La
Médicale,.32 Entities excluded in 2021: Entities excluded /
adjusted in 2020: CACEIS (proforma consolidation).33 Entities
excluded in 2021: CACF NL.34 Entities excluded in 2021: Creval, CA
Serbia; Entities excluded / adjusted in 2020: CA Serbia.35 Entities
excluded in 2021: Creval, CACF NL, CA Serbie, La Médicale, and, for
Amundi, Sabadell AM, Amundi BOC, Fund Channel, Anatec.; Entities
excluded / adjusted in 2020: CA Serbia, La Médicale, CACEIS
(proforma consolidation)36 Data on an underlying basis and excl.
SRF37 Entities excluded in 2021: La Médicale, Sabadell AM, Amundi
BOC, Fund Channel, Anatec; Entities excluded / adjusted in 2020: La
Médicale.38 Entities excluded in 2021: Sabadell AM, Amundi BOC,
Fund Channel, Anatec.39 Entities excluded in 2021: La Médicale;
Entities in 2020: La Médicale.40 Entities excluded / adjusted in
2020: CACEIS (proforma consolidation)41 Entities excluded in 2021:
CACF NL.42 Entities excluded in 2021: Creval, CA Serbia; Entities
excluded / adjusted in 2020: CA Serbia.43 Entities excluded in
2021: Creval.44 The cost of risk relative to 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 quarters45 The cost
of risk relative to 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
quarter46 Provisioning rate calculated with outstandings in Stage 3
as denominator, and the sum of the provisions recorded in Stages 1,
2 and 3 as numerator47
See Appendixes for
more details on specific items.48 Of which €0.24 for Q4-21 and
subject to approval by the General Meeting of 24/05/202249 See
details on the calculation of the business lines’ ROTE (return on
tangible equity) and RONE (return on normalised equity) on p. 5850
Other entities with scope effects: CA Serbia, Amundi BOC, Fund
Channel, Anatec, So you, Kas Bank, La Médicale51 Since the third
quarter of 2020, CACF NL has been classified under IFRS 5, as the
entity was subject to a sale project. As this sale project has been
suspended, CACF NL is no longer classified under IFRS 5 as of the
third quarter of 2021.52 Scope effect related to the following
entities in 2021: Creval, CACF NL, CA Serbia, La Médicale, and, for
Amundi, Sabadell AM, Amundi BOC, Fund Channel, Anatec; and to the
following entities in 2020: CA Serbia, La Médicale, CACEIS
(consolidation)53 Entities excluded in 2021: La Médicale, Sabadell
AM, Amundi BOC, Fund Channel, Anatec; Entities excluded / adjusted
in 2020: La Médicale.54 Entities excluded / adjusted in 2020:
CACEIS (proforma consolidation)55 Entities excluded in 2021: CACF
NL.56 Entities excluded in 2021: Creval, CA Serbia; Entities
excluded / adjusted in 2020: CA Serbia.57 Scope “Life France”58 CAA
scope59 Rate calculated with a new calculation method. That takes
into account the contractual guarantees gross of fees, following
the launch of new products since 2017 which applies negative
guarantees for customers.60 (claims + operating expenses +
commissions) to premium income, net of reinsurance, Pacifica
scope.61Excluding the scope effect related to the exit of the Miami
and Brazil activities62 Reclassification of La Médicale under IFRS5
in Q4-21; excluding La Médicale, revenues -12.1% Q4/Q4 and +0.1%
2021/2020; costs +1.4% Q4/Q4 and +0.9% 2021/2020; net income Group
share +14.7% Q4/Q4 and +13.9% 2021/202063 Change in expenses
excluding taxes Q4/Q4 excluding La Médicale +4.7% 64 Constant
scope: entities excluded in 2021: La Médicale, Sabadell AM, Amundi
BOC, Fund Channel, Anatec65 Like-for-like basis: entities excluded
in 2021: La Médicale, Sabadell AM, Amundi BOC, Fund Channel,
Anatec66 Source: Refinitiv R1767 Source: Refinitiv68 Source:
Bloomberg69 Source: Refinitiv N170 Source: Refinitiv N871 10.1%
growth in assets under management, adjusted for the effect of the
consolidation of CACEIS Fund Services72 +5.5% increase in revenues,
adjusted for the effect of the consolidation of CACEIS Fund
Services73 10.1% growth in assets under management, adjusted for
the effect of the consolidation of CACEIS Fund Services74 CACEIS
transformation and development plan75 Stable costs, adjusted for
the effect of the consolidation of CACEIS Fund Services76 +3.5%
increase in revenues, adjusted for the effect of the consolidation
of CACEIS Fund Services77 +2.5% increase in expenses, adjusted for
the effect of the consolidation of CACEIS Fund Services78
Like-for-like analysis: excluding CACF NL, which was classified
under IFRS 5 in third quarter 2020 and reintegrated into
line-by-line consolidation in third quarter 202179 Agos and other
international entities (excluding automotive JVs in Italy and
China)80 In third quarter 2021, full consolidation of SoYou on a
line-by-line basis versus equity-accounted consolidation at 50%
previously. Excluding this effect, +2.6% increase in revenues at
constant scope81 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 quarters82 Excluding state-guaranteed
loans83 Including state-guaranteed loans84 Sources: CAI - DOXA IRC
Strategic 2021 Survey; 85 Insurance – IAMA Consulting, Quarterly
Reports 86 Refinitiv and Dealogic 87 Assofin88 Detailed
reclassification impact in IFRS 5 of CA Sbrija A.D. See appendix
689 Excluding foreign exchange impact
90 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022 included. The Crédit Agricole Group
applies this provision and must, therefore, comply with a leverage
ratio requirement of 3.11% during this period.91 The daily leverage
ratio is calculated by taking into account the daily average of the
quarter’s securities financing transactions (SFTs) exposures92 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 to use senior preferred debt
for compliance with its TLAC requirements in 2021 and 2022.93 Total
Liabilities and Own Funds (TLOF) – equivalent to the total
prudential balance sheet after netting of derivatives
94 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022 included. Crédit Agricole S.A.
applies this provision and must, therefore, comply with a leverage
ratio requirement of 3.18% during this period95 Crédit Agricole
S.A.’s daily leverage ratio is calculated by taking into account
the daily average of the quarter’s securities financing
transactions (SFTs) exposures96 Excluding FCA Bank97 Gross amount
before buy-backs and amortisations98 Gross amount before buy-backs
and amortisations99 Gross amount before buy-backs and
amortisations, excluding AT1 issuance100 Gross amount before
buy-backs and amortisations, excluding AT1 issuance
101 As prices can be very volatile, it is
preferable to use average annual prices. Between 2020 and 2021, the
price of oil (Brent) rose by almost 70%, while the price of gas in
Europe quadrupled. The CRB index has risen by 43%. Iron and copper
prices rose by 46% and 51% respectively. Food prices were not
spared, as evidenced by the 23% rise in wheat prices. Finally, the
Baltic Dry Index almost tripled, reflecting the extremely high
level of tension in maritime traffic.102 Clusters of dots showing
the opinions of the members of the FOMC as to appropriate future
federal funds rates. [the interest rate on fed funds deemed
appropriate by the Governors] The median now indicates rate hikes
of 25 basis points each, happening three times in 2022, three times
in 2023 and twice in 2024. This is a faster and stronger tightening
than projected in September, when the first hike was to happen in
late 2022 or early 2023. These rises would put the target fed funds
rate between 2% and 2.25% at end-2024.103 Purchases made under the
PEPP emergency programme will therefore cease 31 March 2022, and
the reinvestment period will be extended until year-end 2024,
maintaining complete flexibility of purchases as between
jurisdictions and asset classes. Assets purchases under the
traditional APP programme will increase in 2022, from €20 billion
per month to €40 billion in Q2, then decrease to €30 billion in Q3
and €20 billion in Q4, then kept up as long as necessary to augment
the accommodative effects of key rates. Purchases will stop shortly
before the increase in key rates.104 All interest rates mentioned
refer to State borrowings.
- EN_CASA_2021-Q4_Results_PR_VDEF
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