CREDIT AGRICOLE SA: Results second quarter and first half 2024 -
Continued performance of the universal banking model
CONTINUED PERFORMANCE OF THE UNIVERSAL BANKING
MODEL
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CASA AND CAG STATED AND UNDERLYING DATA
Q2-2024 |
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CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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Stated |
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Underlying |
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Stated |
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Underlying |
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Revenues |
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€6,796m
+1.8% Q2/Q2 |
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€6,754m
+6.7% Q2/Q2 |
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€9,507m
-0.4% Q2/Q2 |
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€9,443m
+3.1% Q2/Q2 |
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Expenses |
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-€3,621m
+12.6% Q2/Q2 |
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-€3,591m
+12.4% Q2/Q2 |
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-€5,687m
+8.8% Q2/Q2 |
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-€5,657m
+8.6% Q2/Q2 |
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Gross Operating Income |
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€3,175m
-8.3% Q2/Q2 |
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€3,163m
+1.0% Q2/Q2 |
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€3,819m
-11.6% Q2/Q2 |
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€3,785m
-4.2% Q2/Q2 |
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Cost of risk |
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-€424m
-20.7% Q2/Q2 |
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-€424m
-5.8% Q2/Q2 |
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-€872m
-7.1% Q2/Q2 |
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-€872m
+2.1% Q2/Q2 |
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Net income group share |
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€1,828m
-10.4% Q2/Q2 |
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€1,823m
-1.5% Q2/Q2 |
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€2,028m
-18.3% Q2/Q2 |
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€2,006
-10.8% Q2/Q2 |
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C/I ratio |
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53.3%
+5.1 pp Q2/Q2 |
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53.2%
+2.6 pp Q2/Q2 |
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59.8%
+5.0 pp Q2/Q2 |
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59.9%
+3.0 pp Q2/Q2 |
STRONG GROWTH IN HALF-YEAR RESULTS, CONFIRMATION OF THE
TARGET FOR NET INCOME GROUP SHARE > €6BN IN 2024
VERY GOOD QUARTERLY RESULTS AFTER A Q2-23 MARKED BY
EXTRAORDINARY ITEMS LINKED TO THE REORGANISATION OF THE MOBILITY
ACTIVITIES
- Growth
of +0.2% in Underlying Net Income Group Share excluding
the effect of the timing difference of the contribution to the
deposit guarantee fund in Italy (DGS)
- High level of
revenues, sharply up in underlying vision
- Low
cost/income ratio, support for the development of the
business lines with a +5.7% increase in underlying expenses
excluding both scope effect and DGS impact.
STRONG ACTIVITY IN ALL BUSINESS LINES
- Solid
performance in retail banking and consumer finance,
supported by a good level of customer capture, higher inflows in
France and Italy, the beginning of a recovery in French home loan
activity, a slight increase in corporate loan production in France,
a strong growth in international loan activity and consumer finance
activity stable at a high level.
- Strong
activity in CIB, asset management and insurance, resulting
in high gross inflows in life insurance, steady growth in property
and casualty and personal insurance premium income, a record
half-year in CIB, higher inflows and a record level of assets under
management.
CONTINUED STRATEGIC PROJECTS
- Acquisition of a
majority stake in Degroof Petercam
- Acquisition of
Alpha Associates
- Definitive
agreement on the partnership with Victory Capital
VERY SOLID CAPITAL AND LIQUIDITY POSITIONS
-
Crédit Agricole S.A. phased-in CET1 11.6%
- CA Group
phased-in CET1 17.3%
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Dominique Lefebvre,
Chairman of SAS Rue La Boétie and Chairman of the
Crédit Agricole S.A. Board of Directors
“These results once more prove the capacity of our universal
banking model to deliver a solid and regular performance. Overall,
they embody our usefulness for our
clients.”
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Philippe Brassac,
Chief Executive Officer of Crédit Agricole S.A.
“Very good quarterly and half-year results, confirming the
target for 2024 net income group share reaching 2025 Ambitions a
year in advance.”
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This press release comments on the results
of Crédit Agricole S.A. and those of
Crédit Agricole Group, which comprises the
Crédit Agricole S.A. entities and the
Crédit Agricole Regional Banks, which own 62.8%
of Crédit Agricole S.A. Please see the appendices to
this press release for details of specific items, which are
restated in the various indicators to calculate underlying
income.
Crédit Agricole Group
Group activity
The Group recorded strong commercial activity
this quarter across its business lines. Gross customer capture has
been dynamic. During the second quarter of 2024, the Group recorded
+482,000 new customers in retail banking, and the customer base
grew by +76,000 customers. More specifically, over the quarter, the
Group recorded +382,000 new customers for Retail Banking in
France and +100,000 new International Retail Banking customers
(Italy and Poland), and the customer base also grew (+68,000 and
+8,000 customers, respectively).
At 30 June 2024, in retail banking, on-balance
sheet deposits totalled €832 billion, up +4.4% year-on-year in
France and Italy (+4.6% for Regional Banks and LCL and +2.5%
in Italy). Outstanding loans totalled €873 billion, up +0.4%
year-on-year in France and Italy (+0.3% for Regional Banks and
LCL and +2.2% in Italy). Home loan production remains down in
France this quarter compared to the second quarter of 2023, by -34%
for Regional Banks and -42% for LCL, although it has stabilised
compared to the first quarter of 2024 (+18% for Regional Banks and
+16% for LCL). In Italy, loan production remains strong this
quarter, up +40% for CA Italy compared to the second quarter of
2023, supported by commercial initiatives. The property and
casualty insurance equipment rate1 rose to 43.5% for the
Regional Banks (+0.7 percentage points compared to the second
quarter of 2023), 27.8% for LCL (+0.4 percentage point) and
19.7% for CA Italy (+1.8 percentage point).
In asset management, inflows were high (+€15.5
billion), particularly in medium and long-term assets (+€15
billion) and within JVs (+€11.6 billion). In savings/retirement,
Crédit Agricole Assurances posted a high level of gross
inflows (€8.1 billion, up +23.1% year-on-year), the
unit-linked rate remained high in production (32.2%), and net
inflows were positive (+1.5 billion) and increased. In property and
casualty insurance, the portfolio grew by +5.2% year-on-year to
16.4 million policies. Assets under management are once again
at their highest level ever, and rose compared to the end of June
2023 in asset management (€2,156 billion, or +9.9%), life
insurance (€338 billion, or +3.6%) and wealth management,
which benefits from the integration of Degroof Petercam (IWM and
LCL €269 billion, or +44.6%).
The SFS division also recorded a stable high
level of activity, with an increase in consumer finance
outstandings at CA Consumer Finance (+8.2% compared to
the end of June 2023), driven by automotive activities, which
account for 53%2 of total outstandings, and growth in
production and leasing outstandings at CAL&F
(€19.8 billion, or +8.5% compared to the end of June
2023).
Momentum is strong in Large Customers, with
record revenues in corporate and investment banking (better second
quarter and better half-year), capital markets and investment
banking driven by primary credit and by financing activities
benefiting from growth in commercial banking. CACEIS also posted a
high level of assets under custody (€4,966 billion, +16.2%
compared to the end of June 2023) and assets under administration
(€3,426 billion, +50.4% compared to the end of June 2023), and
benefited from the integration of ISB and strong commercial
momentum with, however, negative market effects over the
quarter.
Each of the Group’s business lines posted strong
activity (see Infra).
Update on the energy transition
The group has published its Climate
Transition Plan, the reference guide for its Net Zero 2050
approach. This edition3 updates the “Acting for the
climate” guide published in 2023. It details the implementation and
methodologies of the decarbonisation trajectories, in terms of both
financed emissions and operating footprint.
The Group is continuing the mass roll-out of
financing and investment to promote the transition. As such, the
Crédit Agricole Group doubled its exposure to low-carbon
energy financing4 between the end of 2020 and March
2024, with €21.7 billion at 31 March 2024. In addition, CAA’s
financing of renewable energy production capacity increased by +17%
compared to the end of 2022, representing 13.8 gigawatts at 30
June 2024.
Lastly, Crédit Agricole CIB’s green
loan portfolio5 grew by +60% between the end of 2022 and
June 2024, and represented €19.8 billion at 30 June 2024.
Group results
In the second quarter of
2024, the Crédit Agricole Group’s stated
net income Group share came to
€2,028 million, down -18.3% compared to the
second quarter of 2023, characterised by significant
specific items (see below).
Specific items in the second
quarter of 2024 had a positive net impact of
+€22 million on the Crédit Agricole Group’s
net income Group share. They are made up of the
following recurring accounting items: recurring accounting
volatility items, namely the DVA (Debt Valuation Adjustment), the
issuer spread portion of the FVA, and secured lending for +€27
million in net income Group share from capital markets and
investment banking, and the hedging of the loan book in Large
Customers for +€4 million in net income Group share. In addition to
these recurring items, there were other items specific to this
quarter: a reversal of the Home Purchase Saving Plans provisions
for +€1 million in the net income Group share of LCL, a
reversal of the Home Purchase Saving Plans provisions for
+€17 million in the net income Group share of Regional Banks,
-€1 million in net income Group share for the Corporate Centre, ISB
integration costs of -€13 million in net income Group share of
Large Customers, the Degroof Petercam integration costs of -€4
million in net income Group share of Asset Gathering, and the
acquisition costs of Degroof Petercam for -€9 million in net income
Group share of private banking.
Specific items for the second
quarter of 2023 had a cumulative impact of +€232
million on net income Group share, and comprised non-recurring
accounting items totalling +€244 million, including the
reorganisation of the SFS division’s Mobility business6
(+€140 million) and the reversal of the provision for the Cheque
Image Exchange fine (+€104 million).
Excluding these specific items,
Crédit Agricole Group’s underlying
net income Group share7 amounted
to €2,006 million, down -10.8% compared to
second quarter 2023.
Crédit Agricole Group – Stated and underlying results, Q2-24 and
Q2-23
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€m |
Q2-24
stated |
Specific items |
Q2-24
underlying |
Q2-23
stated |
Specific items |
Q2-23
underlying |
∆ Q2/Q2
stated |
∆ Q2/Q2
underlying |
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Revenues |
9,507 |
64 |
9,443 |
9,546 |
388 |
9,159 |
(0.4%) |
+3.1% |
| Operating
expenses excl.SRF |
(5,687) |
(30) |
(5,657) |
(5,233) |
(18) |
(5,215) |
+8.7% |
+8.5% |
| SRF |
- |
- |
- |
6 |
- |
6 |
(100.0%) |
(100.0%) |
| Gross
operating income |
3,819 |
34 |
3,785 |
4,319 |
369 |
3,950 |
(11.6%) |
(4.2%) |
| Cost of
risk |
(872) |
(0) |
(872) |
(938) |
(84) |
(854) |
(7.1%) |
+2.1% |
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Equity-accounted entities |
74 |
(0) |
74 |
46 |
(12) |
58 |
+61.0% |
+27.5% |
| Net income on
other assets |
(7) |
(12) |
5 |
33 |
28 |
5 |
n.m. |
(14.5%) |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
3,014 |
22 |
2,992 |
3,460 |
301 |
3,160 |
(12.9%) |
(5.3%) |
| Tax |
(762) |
(6) |
(756) |
(772) |
(69) |
(704) |
(1.3%) |
+7.4% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
4 |
- |
4 |
(100.0%) |
(100.0%) |
| Net
income |
2,252 |
16 |
2,236 |
2,692 |
232 |
2,460 |
(16.4%) |
(9.1%) |
| Non
controlling interests |
(224) |
6 |
(230) |
(211) |
(0) |
(211) |
+5.9% |
+8.7% |
| Net
income Group Share |
2,028 |
22 |
2,006 |
2,481 |
232 |
2,249 |
(18.3%) |
(10.8%) |
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Cost/Income ratio excl.SRF (%) |
59.8% |
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59.9% |
54.8% |
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56.9% |
+5.0 pp |
+3.0 pp |
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In the second quarter of 2024,
underlying revenues amounted to
€9,443 million, up +3.1% compared to the second quarter of
2023, driven by the good performance of all business lines.
Revenues were stable in retail banking (+0.1%), the Asset Gathering
division benefited from strong activity and the integration of
Degroof Petercam, Large Customers saw a record level of revenues
from corporate and investment banking activities, in addition to
the integration of ISB, and Specialised Financial Services also
benefited from favourable scope effects and volume effects.
Underlying operating expenses increased by +8.6%
in the second quarter of 2024 to €5,657 million, including scope
effects, the timing difference8 of the contribution to
the deposit guarantee fund in Italy (DGS), and in addition to
providing support for the development of the business lines.
Overall, the Group saw its underlying cost/income
ratio reach 59.9% in the second quarter of 2024, up by
+3.0 percentage points. As a result, the underlying
gross operating income stood at €3,785 million, down -4.2%
compared to the second quarter of 2023.
The underlying cost of credit
risk amounted to -€872 million, including a provision
of -€143 million for performing loans (levels 1 and 2), a
provision of -€749 million for the cost of proven risk (level
3) and a reversal of +€20 million for other risks, i.e. an
increase of +2.1% compared to the second quarter of 2023. The
provisioning levels were determined by taking into account several
weighted economic scenarios, as in previous quarters, and by
applying some adjustments on sensitive portfolios. The weighted
economic scenarios for the second quarter were updated, with a
favourable scenario (French GDP at +1.2% in 2024, +1.5% in 2025)
and an unfavourable scenario (French GDP at -0.2% in 2024 and +0.5%
in 2025). The
cost of risk/outstandings 9
over a rolling four-quarter period stood at
25 basis points, which is in line with the 25-basis point
assumption of the Medium-Term Plan. It stands at
30 basis points on a quarterly annualised
basis 10.
Underlying pre-tax income stood at
€2,992 million, a year-on-year decrease of -5.3%.
This includes the contribution from equity-accounted entities for
€74 million (up +27.5%) and net income on other assets, which
came to €5 million over this quarter. The underlying
tax charge rose by +7.4% over the
period, with the tax rate this quarter at 25.9%, i.e. an increase
of +3.2 percentage points due in particular to a base effect
in the second quarter of 2023 linked to the reversal for the Cheque
Image Exchange fine not subject to tax.
Underlying net income before
non-controlling interests was down -9.1% to
€2,236 million. Non-controlling interests rose +8.7%. This
change in minority interests, which diverges from the change in net
income, is mainly due to the decrease in the valuation of Banco
BPM, which is not subject to minority interests. Lastly,
underlying net income Group share was
€2,006 million, -10.8% lower than in the second
quarter of 2023.
Credit Agricole Group – Stated and underlying results H1-24 and
H1-23
|
€m |
H1-24
stated |
Specific items |
H1-24
underlying |
H1-23
stated |
Specific items |
H1-23
underlying |
∆ H1/H1
stated |
∆ H1/H1
underlying |
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Revenues |
19,031 |
114 |
18,917 |
18,473 |
356 |
18,117 |
+3.0% |
+4.4% |
| Operating
expenses excl.SRF |
(11,276) |
(50) |
(11,226) |
(10,517) |
(18) |
(10,498) |
+7.2% |
+6.9% |
| SRF |
- |
- |
- |
(620) |
- |
(620) |
(100.0%) |
(100.0%) |
| Gross
operating income |
7,755 |
64 |
7,691 |
7,337 |
338 |
6,999 |
+5.7% |
+9.9% |
| Cost of
risk |
(1,523) |
(20) |
(1,503) |
(1,486) |
(84) |
(1,402) |
+2.5% |
+7.2% |
|
Equity-accounted entities |
142 |
(0) |
142 |
153 |
(12) |
165 |
(7.5%) |
(14.2%) |
| Net income on
other assets |
(14) |
(20) |
6 |
37 |
28 |
10 |
n.m. |
(35.3%) |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
6,361 |
24 |
6,336 |
6,042 |
269 |
5,773 |
+5.3% |
+9.8% |
| Tax |
(1,517) |
(12) |
(1,505) |
(1,483) |
(60) |
(1,422) |
+2.3% |
+5.8% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
6 |
- |
6 |
(100.0%) |
(100.0%) |
| Net
income |
4,843 |
12 |
4,831 |
4,565 |
209 |
4,356 |
+6.1% |
+10.9% |
| Non
controlling interests |
(432) |
10 |
(442) |
(415) |
(0) |
(415) |
+4.0% |
+6.5% |
| Net
income Group Share |
4,412 |
22 |
4,389 |
4,150 |
209 |
3,941 |
+6.3% |
+11.4% |
|
Cost/Income ratio excl.SRF (%) |
59.2% |
|
59.3% |
56.9% |
|
57.9% |
+2.3 pp |
+1.4 pp |
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Stated net income Group share in the
first half of 2024 amounted to €4,412 million,
compared with €4,150 million in
the first half of 2023, an increase of
+6.3%.
Specific items for the first six months of 2024
include the specific items of the Regional Banks for first half
2024 detailed in the Regional Banks section, and the specific items
of Crédit Agricole S.A. detailed in the Crédit
Agricole S.A. section.
Excluding these specific items,
underlying net income Group share amounted
to €4,389 million, up +11.4%
compared to the first half of 2023.
Underlying revenues totalled €18,917
million, up +4.4% in the first half of
2024 compared to the first half of 2023. This increase is
attributable to growth in all business lines, reaching a total,
excluding the Corporate Centre division, of +4.8% compared to the
first half of 2023.
Underlying operating expenses
amounted to -€11,226 million, up +6.9% excluding SRF compared to
the first half of 2023, mainly due to higher compensation in an
inflationary environment, support for business development, IT
expenditure and scope effects (see below). The underlying
cost/income ratio for the first half of 2024 was 59.3%, up
+1.4 percentage points compared to the first half of 2023
excluding SRF. The SRF stood at -€620 million in 2023.
Underlying gross operating
income totalled €7,691 million, up +9.9% compared to
the first half of 2023.
The underlying cost of risk for
the half-year rose to -€1,503 million (of which -€85 million in
cost of risk/outstandings (stages 1 and 2), -€1,439 million in cost
of proven risk, and +€21 million in other risks corresponding
mainly to reversals of legal provisions), i.e. an increase of +7.2%
compared to the first half of 2023.
As at 30 June 2024, risk indicators confirm
the high quality of Crédit Agricole Group’s
assets and risk coverage level. The diversified loan book
is mainly geared towards home loans (45% of gross outstandings) and
corporates (32% of gross outstandings). Loan loss reserves amount
to €21.2 billion at the end of June 2024 (€11.5 billion
for Regional Banks), 41% of which represented provisioning of
performing loans (47% for Regional Banks). The prudent management
of these loan loss reserves has enabled the
Crédit Agricole Group to have an overall coverage ratio
for doubtful loans (82.3% at the end of June 2024).
Net income on other assets
stood at €6 million in the first half of 2024, vs.
€10 million in the first half of 2023.
Underlying pre-tax income before discontinued
operations and non-controlling interests rose by +9.8% to
€6,336 million. The tax charge was -€1,505 million, up +5.8%,
with an underlying effective tax rate of 24.3%, down
-1.1 percentage points compared to the first half of 2023.
Underlying net income before non-controlling interests was
therefore up by +10.9%. Non-controlling interests amounted to
-€442 million in the first half of 2023, up +6.5%.
The underlying net income Group share
for first half of 2024 thus stood at €4,389 million,
up +11.4% compared to the first half of 2023.
Regional banks
Gross customer capture stands
at +278,000 new customers and the customer base
grew by +38,000 new customers over the same period. The
percentage of customers mainly using demand
deposits rose by +0.5 percentage point year-on-year
to 76.4%. The share of customers using digital tools
stabilised at a high level, at over 76% at the end of June
2024.
Loan production fell this
quarter by -23% compared to the second quarter of 2023. The decline
was sharp for home loans (-34% compared to the second quarter of
2023), but a recovery began this quarter (+18% compared to the
first quarter of 2024). The average lending production rate for
home loans11 stood at 3.67% for the April/May period,
-17 basis points lower than in the first quarter of 2024.
Outstanding loans reached €644 billion at the end
of June 2024, remaining stable across all markets (+0.2%
compared to the end of June 2023).
Total customer assets were
strong, increasing by +3.7% year on year to €898 billion at
the end of June 2024. This growth was driven both by on-balance
sheet deposits, which reached €602 billion at the end of June
2024, up +3.9% compared to the end of June 2023, and customer
assets, which reached €296 billion, up +3.2% year-on-year,
driven by unit linked bond inflows. Over the quarter, on-balance
sheet deposits were driven by a +4% increase in term deposits and a
+1.9% recovery in demand deposits.
The equipment rate for property and
casualty insurance was 43.5% at the end of June 2024 and
is continuing to rise (up +0.7 percentage point compared to
the end of June 2023). In terms of payment
instruments, the number of cards rose by +1.5%
year-on-year, as did the percentage of premium cards in the stock,
which increased by 1.5 percentage points year-on-year to
account for 15.6% of all cards.
In the first quarter of 2024, the
Regional Banks’ consolidated revenues, including the SAS Rue La
Boétie dividend12, amounted to
€5,305 million, up +7.2% compared to the second quarter of
2023. The net interest margin was down -4.9%. Portfolio revenues
were up +17.4%, in line with the increase in dividends received.
Fee and commission income was up 3.1% compared to the second
quarter of 2023, particularly in life insurance and account
management.
Operating expenses increased by
+4.7%. Excluding a base effect related to end-of-career allowances,
the increase was +3.1%. Gross operating income was
up +9.6%. The cost of risk increased by +12.5%,
compared to the second quarter of 2023, amounting to
-€459 million mainly due to the increase in proven risk. Cost
of risk/outstandings remained under control, at 20 basis
points.
The Regional Banks’ consolidated net
income, including the SAS Rue La Boétie
dividend12, amounted to €2,262 million in the
second quarter of 2024, up +11% compared to the second quarter of
2023.
The Regional Banks’ contribution to net
income Group share was €208 million in the second
quarter of 2024, down -50% compared to the second quarter of
2023.
In the first half 2024,
revenues including the dividend from SAS Rue La
Boétie were up (+3.9%) compared to the first half of 2023.
Operating expenses rose by +0.9% (+0.1% excluding the base effect
related to end-of-career allowances), and gross operating
income consequently increased by +8.5% over the first half
of the year. Finally, with a cost of risk up
+22.4%, the Regional banks’ net income Group share,
including the SAS Rue La Boétie dividend, amounted to
€2,701 million, up +9.3% compared to the first half of 2023.
The Regional banks’ contribution to the
results of Crédit Agricole Group in the first half of
2024 amounted to €650 million (-22%) in stated net income
Group share, with revenues of €6,568 million (-1.8%) and a cost of
risk of -€691 million (+19.8%).
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of Directors,
chaired by Dominique Lefebvre, met on 31 July 2024 to examine the
financial statements for the second quarter of 2024.
Credit Agricole S.A. – Stated and underlying results, Q2-24 and
Q2-23
| |
|
|
|
|
|
|
|
|
| €m |
Q2-24
stated |
Specific items |
Q2-24
underlying |
Q2-23
stated |
Specific items |
Q2-23
underlying |
∆ Q2/Q2
stated |
∆ Q2/Q2
underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
6,796 |
42 |
6,754 |
6,676 |
346 |
6,329 |
+1.8% |
+6.7% |
| Operating
expenses excl.SRF |
(3,621) |
(30) |
(3,591) |
(3,218) |
(18) |
(3,200) |
+12.5% |
+12.2% |
| SRF |
- |
- |
- |
4 |
- |
4 |
(100.0%) |
(100.0%) |
| Gross
operating income |
3,175 |
12 |
3,163 |
3,461 |
328 |
3,133 |
(8.3%) |
+1.0% |
| Cost of
risk |
(424) |
(0) |
(424) |
(534) |
(84) |
(450) |
(20.7%) |
(5.8%) |
|
Equity-accounted entities |
47 |
(0) |
47 |
27 |
(12) |
39 |
+73.7% |
+20.1% |
| Net income on
other assets |
15 |
(12) |
27 |
29 |
28 |
1 |
(46.7%) |
x 23.3 |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
2,814 |
(0) |
2,814 |
2,983 |
259 |
2,724 |
(5.7%) |
+3.3% |
| Tax |
(704) |
(1) |
(703) |
(677) |
(69) |
(609) |
+3.9% |
+15.5% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
4 |
- |
4 |
n.m. |
n.m. |
| Net
income |
2,110 |
(1) |
2,111 |
2,309 |
190 |
2,119 |
(8.6%) |
(0.4%) |
| Non
controlling interests |
(282) |
5 |
(288) |
(269) |
(1) |
(269) |
+4.7% |
+7.0% |
| Net
income Group Share |
1,828 |
5 |
1,823 |
2,040 |
190 |
1,850 |
(10.4%) |
(1.5%) |
|
Earnings per share (€) |
0.58 |
0.00 |
0.58 |
0.64 |
0.06 |
0.58 |
(10.4%) |
(0.9%) |
|
Cost/Income ratio excl. SRF (%) |
53.3% |
|
53.2% |
48.2% |
|
50.6% |
+5.1 pp |
+2.6 pp |
In the second quarter of
2024, Crédit Agricole S.A.’s stated
net income Group share came to
€1,828 million, down -10.4% compared to the
second quarter of 2023, which was particularly high and
benefited from non-recurring items relating in particular to the
reorganisation of the Mobility activities and the reversal of the
cheque image provision (see below). This excellent result of the
second quarter of 2024 is based on high revenues and a cost/income
ratio that has been maintained at a low level.
Specific items for this quarter
had a cumulative impact of +€5 million on net income Group
share, and included the following recurring accounting items:
recurring accounting volatility items in revenues, such as the DVA
(Debt Valuation Adjustment), the issuer spread portion of the FVA,
and secured lending for +€27 million in net income Group share
of Large Customers, and the hedging of the loan book for
+€4 million in net income Group share of Large Customers. In
addition to these recurring items, there were a number of items
specific to this quarter: a reversal of the Home Purchase Saving
Plans provisions for +€1 million in the net income Group share
of LCL and +€1 million in the net income Group share of the
Corporate Centre; Degroof Petercam integration costs of
-€4 million in the net income Group share of Asset gathering;
ISB integration costs for -€13 million in the net income Group
share of Large customers, the acquisition costs of Degroof Petercam
for -€9 million in the net income Group share of Asset
gathering.
Specific items for the second
quarter of 2023 had a cumulative impact of +€190 million on net
income Group share, and comprised non-recurring accounting items
totalling +€201 million, namely the reorganisation of the SFS
division’s Mobility business13 (+€140 million) and the
reversal of the provision for the Cheque Image Exchange fine (+€62
million). Recurring items amounted to -€11 million in net
income Group share.
Excluding specific items,
underlying net income Group
share14 stood at
€1,823 million in the second quarter of 2024,
down -1.5% compared to the second quarter of 2023. In addition, the
contribution to the Italian deposit guarantee fund was recorded in
the second quarter of 2024, whereas in 2023 it was recorded in the
fourth quarter. Underlying
net income Group share14
excluding the timing difference of the recognition of the DGS is
stable at +0.2% compared to the second quarter of 2023.
In the second quarter of 2024,
underlying revenues were at a high level and came
to €6,754 million. They were up by +6.7% compared to the second
quarter of 2023. This growth was driven by all the business lines:
Asset Gathering benefited from dynamic activity and the integration
of Degroof Petercam15; Large Customers saw a record
level of revenues in the second quarter from corporate and
investment banking, in addition to the integration of
ISB16 and the increase in fee and commission income
within CACEIS; Specialised Financial Services benefited from
favourable scope17 and volume effects; Retail Banking in
France was driven by an improved net interest margin, while
International Retail Banking benefited from higher fee and
commission income in Italy and a higher net interest margin in
Poland. The Corporate Centre division recorded a net underlying
change of -€158 million due to the unfavourable impact of the
valuation of Banco BPM shares, partially offset by a higher
dividend than in the second quarter of 2023 (-€71 million for both
effects combined) and a base effect of -€42 million due to the
reversal of the provision for the Cheque Image Exchange fine
recorded in the second quarter of 2023.
Underlying operating expenses
totalled -€3,591 million in the second quarter of 2024, an
increase of +12.4% compared to the second quarter of 2023. The
-€395 million year-on-year increase in expenses was mainly due
to a -€156 million scope effect18, the timing
difference of the contribution to the Italian deposit guarantee
fund (DGS) for -€58 million, the increase in employee expenses for
-€131 million (including -€39 million in provisions for variable
compensation linked to the performance of the business lines), and
IT investments for -€53 million. Excluding the scope effect and
DGS, underlying expenses increased by +5.7%, i.e. -€181
million.
The underlying cost/income
ratio in the second quarter of 2024 thus stood at 53.2%,
an increase of +2.6 percentage point (excluding SRF)
compared to the second quarter of 2023.
Underlying gross operating
income in the second quarter of 2024 stood at
€3,163 million, an increase of +1.0% compared to the second
quarter of 2023. Restated from the impact of DGS, underlying gross
operating income was up +2.8%, i.e. €88 million, compared to
the second quarter of 2023.
As at 30 June 2024, risk indicators confirm
the high quality of Crédit Agricole S.A.’s assets
and risk coverage level. The diversified loan book is
mainly geared towards home loans (26% of gross outstandings) and
corporates (43% of Crédit Agricole S.A. gross
outstandings). The Non-Performing Loans ratio was down compared
with the previous quarter and remained low at 2.5%. The coverage
ratio19 was high at 71.3%, up +1.6 percentage
points over the quarter. Loan loss reserves
amounted to €9.7 billion for Crédit Agricole S.A.,
relatively unchanged from the end of March 2024. Of those loan loss
reserves, 34% were for performing loans (percentage in line with
previous quarters).
The underlying cost of risk
shows a net addition of -€424 million, i.e. a decrease of
-5.8% compared to the second quarter of 2023, when it stood at
-€450 million. In the second quarter of 2024, the net expense
of -€424 million consisted of a reversal for performing loans
(Stages 1 and 2) for +€31 million (versus a reversal of
+€14 million in the second quarter of 2023), the provisioning
for proven risks (Stage 3) for -€491 million (versus
-€468 million in the second quarter of 2023), and
+€37 million in reversals of provisions for other items (legal
provisions). By business line, 50% of net provision for the quarter
came from Specialised Financial Services (compared to 49% in the
second quarter of 2023), 22% from LCL (compared to 15% in the
second quarter of 2023) and 17% from International Retail Banking
(compared to 28% in the second quarter of 2023). The provisioning
levels were determined by taking into account several weighted
economic scenarios, as in previous quarters, and by applying some
adjustments on sensitive portfolios. The weighted economic
scenarios for the second quarter were updated, with a favourable
scenario (French GDP at +1.2% in 2024, +1.5% in 2025) and an
unfavourable scenario (French GDP at -0.2% in 2024 and +0.5% in
2025). In the second quarter of 2024, the cost of risk/outstandings
over a rolling four-quarter basis20 was 32 basis
points and was 32 basis points on an annualised quarterly
basis21.
The underlying contribution from
equity-accounted entities amounted to €47 million
in the second quarter of 2024, up +20.1% compared to the second
quarter of 2023, driven in particular by the strong growth of
equity-accounted entities in asset management and the personal
finance and mobility business line. Underlying net income
on other assets amounted to €27 million in the second
quarter of 2024, including the realisation of the gain on the sale
of Unifergie to Crédit Agricole Transition &
Energie22.
Underlying
income23 before
tax, discontinued operations and non-controlling interests
was up +3.3% to €2,814 million. The underlying
effective tax rate was 25.4%, i.e. an increase of +2.7
percentage points compared with the second quarter of 2023, due in
particular to a base effect in the second quarter of 2023 linked to
the reversal for the Cheque Image Exchange fine not subject to tax.
The underlying tax charge stood at -€703 million, a +15.5%
increase. Net income before non-controlling
interests was stable at €2,111 million.
Non-controlling interests amounted to
-€288 million in the second quarter of 2024, an increase of
+7.0%. The change in non-controlling interests, which diverges from
the change in net income, is linked to the decrease in the
valuation of Banco BPM, which is not subject to non-controlling
interests.
Underlying earnings per share
in the second quarter of 2024 reached €0.58,
decreasing by -0.9% compared to the second quarter of 2023.
Credit Agricole S.A. – Stated and underlying results, H1-24 and
H1-23
| |
|
|
|
|
|
|
|
|
| €m |
H1-24
stated |
Specific items |
H1-24
underlying |
H1-23
stated |
Specific items |
H1-23
underlying |
∆ H1/H1
stated |
∆ H1/H1
underlying |
|
Revenues |
13,602 |
51 |
13,551 |
12,797 |
315 |
12,482 |
+6.3% |
+8.6% |
| Operating
expenses excl.SRF |
(7,289) |
(50) |
(7,240) |
(6,546) |
(18) |
(6,528) |
+11.4% |
+10.9% |
| SRF |
- |
- |
- |
(509) |
- |
(509) |
(100.0%) |
(100.0%) |
| Gross
operating income |
6,312 |
1 |
6,311 |
5,741 |
296 |
5,445 |
+9.9% |
+15.9% |
| Cost of
risk |
(824) |
(20) |
(804) |
(908) |
(84) |
(824) |
(9.3%) |
(2.5%) |
|
Equity-accounted entities |
90 |
(0) |
90 |
113 |
(12) |
125 |
(20.7%) |
(28.4%) |
| Net income on
other assets |
9 |
(20) |
29 |
33 |
28 |
5 |
(72.6%) |
x 5.9 |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
5,587 |
(39) |
5,626 |
4,979 |
227 |
4,752 |
+12.2% |
+18.4% |
| Tax |
(1,315) |
4 |
(1,319) |
(1,199) |
(60) |
(1,138) |
+9.7% |
+15.8% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
6 |
- |
6 |
n.m. |
n.m. |
| Net
income |
4,273 |
(35) |
4,308 |
3,786 |
167 |
3,619 |
+12.9% |
+19.0% |
| Non
controlling interests |
(542) |
10 |
(551) |
(520) |
(0) |
(519) |
+4.2% |
+6.2% |
| Net
income Group Share |
3,731 |
(25) |
3,756 |
3,266 |
167 |
3,100 |
+14.2% |
+21.2% |
|
Earnings per share (€) |
1.08 |
(0.01) |
1.09 |
1.00 |
0.06 |
0.95 |
+8.2% |
+15.4% |
|
Cost/Income ratio excl.SRF (%) |
53.6% |
|
53.4% |
51.2% |
|
52.3% |
+2.4 pp |
+1.1 pp |
In the first half of 2024,
stated net income Group share amounted to €3,731 million,
compared with €3,266 million in the first half of
2023, i.e. an increase of +14.2%.
Specific items in
first half 2024 had a negative impact of
-€25 million on stated
net income Group share. In addition to the +€5
million in second-quarter items already mentioned above,
first-quarter 2023 items had a negative impact of -€30 million on
net income Group share, and included the following recurring
accounting items: recurring accounting volatility items in
revenues, such as the DVA (Debt Valuation Adjustment), the issuer
spread portion of the FVA, and secured lending for +€4 million
in net income Group share in Large Customers, and the hedging of
the loan book in Large Customers for +€1 million in net income
Group share. In addition to these recurring items, there were a
number of items specific to the first quarter of 2024: a reversal
of the Home Purchase Saving Plans provisions for +€1 million
in the net income Group share of LCL; ISB integration costs of
-€10 million in the net income Group share of the Large
Customers division; a further an addition of provision for risk
Ukraine for -€20 million in the net income Group share of
International Retail Banking; the acquisition costs of Degroof
Petercam for -€6 million in the net income Group share of
private banking.
Excluding these specific items,
underlying net income Group share amounted
to €3,756 million, up
+21.2% compared to first half 2023.
Underlying revenues were
up +8.6% compared to the first half of
2024, driven by all business lines. Underlying operating
expenses were +2.9% higher than in the first half of 2023,
reflecting the development of the Group’s business lines and the
integration of scope effects, partially offset by the end of the
SRF24 building-up period. The underlying cost/income
ratio excluding SRF for the first half of the year was 53.4%, an
increase of 1.1 percentage points compared to first half 2023.
Underlying gross operating income totalled
€6,311 million, up +15.9% compared to first half 2023.
Finally, the underlying cost of risk decreased by
-2.5% over the period, to -€804 million, versus
-€824 million for the first half of 2023.
Underlying earnings per share stood at
€1.09 in the first half of 2023, up
+15.4% compared to the first half of
2023.
Underlying
RoTE 25, which is calculated on
the basis of annualised Underlying Net Income Group
Share 26 and IFRIC charges linearised over the
year, net of annualised Additional Tier 1 coupons (return
on equity Group share excluding intangibles) and net of foreign
exchange impact on reimbursed AT1s, and restated for certain
volatile items recognised in equity (including unrealised gains
and/or losses), reached 15.5% in the first half of
2024, up by +0.8 percentage point compared to the
first half of 2023.
Analysis of the activity and the results of
Crédit Agricole S.A.’s divisions and business
lines
Activity of the Asset Gathering division
In the second quarter of 2024, assets under
management in the Asset Gathering division stood at €2,763 billion,
up by €115 billion over the quarter (or +4.5%), due to a scope
effect (+€77 billion) related to the consolidation of Degroof
Petercam and Alpha Associates, a good level of net inflows in the
three business lines of asset management, insurance and wealth
management (+€18 billion in total), and a positive market effect
(+€20 billion). Over the year, assets under management rose by
+11.7%.
Insurance activity
(Crédit Agricole Assurances) was very strong in
the second quarter of 2024, with total premium income of
€10.8 billion, up +18.9% compared to the second quarter of
2023 and up in all three segments: savings/retirement, property and
casualty, and death & disability/creditor/group insurance. In
total, over the first half-year, the overall premium income stood
at €23.1 billion, up +11.2% compared to the first half of 2023.
In Savings/Retirement,
second-quarter premium income stood at €8.1 billion, up +23.1%
compared to the second quarter of 2023. This was driven by the
recovery in international business, in addition to the euro payment
bonus campaigns in France, launched during the first quarter, which
boosted gross euro inflows. The unit-linked rate accounted for
32.2% of gross inflows, down -13.1 percentage points compared
to the second quarter of 2023. This decline is linked to the
recovery in gross euro inflows and less favourable market
conditions for unit-linked products, in particular the reduced
attractiveness of unit-linked fixed income products. Net inflows
improved strongly to reach +€1.5 billion this quarter, mainly
due to positive net inflows from unit-linked contracts (+€0.7
billion) and also from euro funds (+€0.8 billion) In total,
Savings/Retirement premium income reached €16.7 billion at the end
of June, up +12.7% compared to the end of June 2023.
Life insurance assets under
management (savings, retirement, and funeral insurance)
reached their highest level of €337.9 billion, up year-on-year
(+€11.7 billion, or +3.6%) and over the half-year
(+€7.6 billion, or +2.3% compared to the end of December
2023). The level of assets under management was supported by a
positive market effect in addition to positive net inflows.
Unit-linked contracts reached 29.5% of assets under management, up
+1.6 percentage points over one year and +0.6 percentage
point compared to the end of December 2023.
The Policy Participation Reserve
(PPE27) amounted to €9.2 billion at 30 June 2024,
representing 4.2% of euro outstandings.
In property and casualty
insurance, premium income stood at €1.3 billion in
the second quarter of 2024, up +6.3%28 compared to the
second quarter of 2023. This growth was driven by volume and price
effects. Indeed, at the end of June 2024, the portfolio stood at
16.4 million29 contracts, up +5.2% year-on-year. At
the same time, the average premium was up, benefiting from rate
revisions in addition to changes in the product mix. Lastly,
the combined ratio at the end of June 2024 stood at
94.6%30, an improvement of -1.3 percentage point
year-on-year, thanks to the impact of positive prior-year reserve
development. In total, at the end of June 2024, premium income
stood at €3.7 billion, an increase of +7.3% compared to the
first half of 2023.
In death & disability/creditor
insurance/group insurance, premium income for the second
quarter of 2024 stood at €1.4 billion, up +8.9% compared to
the second quarter of 2023. Creditor insurance premium income rose
by +8.7% compared to the second quarter of 2023, thanks to a good
level of international business. Death and disability was up +9%
compared to the second quarter of 2023 (mainly driven by group
insurance, which posted a strong increase of +35.2%). In total, at
the end of June, premium income stood at €2.7 billion, an
increase of +7.5% compared to the first half of 2023.
Asset management (Amundi)
posted a very good level of inflows in the first quarter of
2024.
Amundi’s assets under management saw a +9.9%
increase year-on-year at 30 June 2024 and a +1.9% increase over the
quarter to €2,156 billion, an all-time high. The +€40 billion
increase in assets under management over the quarter was due to a
positive market and foreign exchange impact of +€16.6 billion, the
integration of Alpha Associates (+€8 billion) and positive net
inflows of +€15.5 billion.
This quarter’s net inflows were driven by
dynamic inflows from medium- and long-term
assets31 (+€15 billion) in both active and
passive management, despite a risk-averse environment. Active
management continues to benefit from strong interest in bond
strategies. This momentum is partially offset by seasonal outflows
in Treasury
products31, with the second quarter
each year seeing redemptions linked to dividend payments by
corporates. Lastly, the JVs continued their solid
commercial momentum, with net inflows of +€11.6 billion, reflecting
a positive contribution in all countries: notably in India (SBI MF,
+€9.4 billion) and in South Korea, but also in China.
By customer segments, Retail
inflows (+€2.2 billion in the second quarter of 2024) were driven
by the excellent momentum of third-party distributors (+€5.4
billion), particularly in passive management and Treasury products,
but also, since the past two quarters, in active management;
inflows from the French and International networks, however, were
impacted by competition from other low-risk savings products
(regulated savings, return of attractive returns for traditional
life insurance in France, new government bonds in Italy). The
Institutional segment also recorded very positive
inflows in MLT assets, particularly in Employee Savings thanks to
employee share ownership schemes; in insurance mandates thanks to
the turnaround in the life insurance market for euro-denominated
contracts; and above all in Institutional & Sovereigns with a
new institutional mandate in multi-assets. Treasury products, on
the other hand, experienced sharp seasonal outflows.
In Wealth management, total
assets under management (CA Indosuez Wealth Management and LCL
Private Banking) amounted to €269 billion at the end of June 2024,
and were up +36.6% compared to March 2024 and +44.6% compared to
June 2023. Indosuez Wealth Management had assets under management
of €204.9 billion32 at the end of June, up +53.9%, or
+€71.8 billion, compared to the end of March 2024 due to a positive
market effect of +€1.3 billion, positive net inflows of +€1.2
billion and a scope effect of +€69.2 billion following the
integration of Degroof Petercam this quarter. In LCL’s Private
Banking division, assets under management at the end of June
totalled €63.8 billion, up by €0.3 billion or +0.4% compared to the
end of March 2024.
Results of the Asset Gathering division
In the second quarter of 2024, AG generated
€1,944 million of revenues, up +12.2%
compared to the second quarter of 2023. The increase is explained
by the good performance in all three business lines: asset
management, insurance and wealth management.
Expenses rose by +13.7% to -€813 million.
Thus, the cost/income ratio stood at 41.8%, up
+0.6 percentage points compared to the second quarter of
2023. Gross operating income stood at €1,131 million, up
+11.2% compared to the second quarter of 2023. Taxes stood at
€238 million, a +14.8% increase. The net income Group
share of AG stood at €736 million, up +8.9% compared
to the second quarter of 2023.
In the first half of 2024, AG generated
revenues of €3,733 million, up +7.3% compared
to the first half of 2023. The increase is explained by a very high
level of revenues in all three business lines: insurance, asset
management and wealth management. Costs excluding SRF increased
+9.6%. As a result, the cost/income ratio excluding SRF stood at
42.0%, up +0.9 percentage points compared to the first
half of 2023. Gross operating income stood at €2,166 million,
an increase of +6.1% compared to the first half of 2023. Taxes
stood at €502 million, a +5.0% increase. The net
income Group share of AG stood at €1,453 million, up
+5.7% compared to the first half of 2023. Net income Group share
increased between the first half of 2023 and the first half of 2024
in asset management (+7.1%) and insurance (+9.0), but was down in
wealth management (-38.8%).
Over the first half of 2024, the Asset Gathering
division contributed by 36% to the underlying net income Group
share of the Crédit Agricole S.A. core businesses
(excluding Corporate Centre division) and 27% to underlying
revenues excluding the Corporate Centre division.
As at 30 June 2024, capital allocated to the
division amounted to €12.8 billion, including
€10.7 billion for Insurance, €1.3 billion for Asset
management, and €0.9 billion for Wealth management. The
division’s risk-weighted assets amounted to €55.5 billion,
including €32.6 billion for Insurance, €13.8 billion for
Asset management and €9.1 billion for Wealth management.
The underlying
RoNE (return on normalised equity) stood at 26.9%
for the first half of 2024.
Insurance results
In the second quarter of 2024, insurance
revenues amounted to €774 million, up +15.8%
compared to the second quarter of 2023. This includes
€476 million from savings/retirement33,
€115 million from personal protection34 and
€75 million from property and casualty insurance35.
The rise in revenues was due to growth in assets under management
and strong business momentum, as well as positive operating
variance.
The contractual service margin
(CSM) came to €23.7 billion, down slightly from 31
December 2023 (-0.8%), due to the unfavourable impact of the stock
revaluation (market effect). The impact of new business in the
first half of the year was greater than the CSM allocation, and the
annualised CSM allocation factor on stock was 8.7% in the first
half of 2024.
Non-attributable expenses for the quarter stood
at €88 million, up +17.7% compared to the second quarter of 2023,
due to the non-attributable nature of the Italian insurers’
guarantee fund, established on the 1st January 2024 and the
consolidation of CATU (Poland) on the 30 June 2024. Gross
operating income stood at €686 million, an increase
of +15.6% compared to the second quarter of 2023. Net
income Group share stood at €495 million, up +14.5%
compared to the second quarter of 2023.
Revenues from insurance in the first
half of 2024 came to €1,496 million, up +8.4% compared to
the first half of 2023. Gross operating income stood at
€1,317 million, up +7.7% compared to the first half of 2023.
Non-attributable expenses came to €179 million, i.e. an
increase of +14.6%. The cost/income ratio stood at 12.0%, below the
target ceiling of 15% set by the Medium-Term Plan. Net income Group
share amounted to €989 million, up +9.0% compared to the first
half of 2023.
At 30 June 2024,
Crédit Agricole Assurances displays once again its
solidity with a solvency rate at 200%.
Insurance contributed by 24% to the underlying
net income Group share of the Crédit Agricole S.A. core
businesses (excluding the Corporate Centre division) at the
end of June 2024 and by 11% to their underlying revenues.
Asset management results
In the second quarter of 2024, Asset management
revenues amounted to €864 million, up +7.5%
compared to the second quarter of 2023. The +6.7% increase in
management fees compared to the second quarter of 2023 reflects the
good level of activity and the increase in average assets under
management excluding JVs (which increased by +8.1% over the same
period). Performance fees were virtually unchanged compared to the
second quarter of 2023; they increased compared to the first
quarter of 2024 due to the higher level of crystallization in the
second quarter. Amundi Technology’s revenues increased by +10.1%
compared to the second quarter of 2023. Net financial income was up
compared to the second quarter of 2023 thanks to the positive
impact of the increase in short-term rates. Operating
expenses stood at -€471 million, up +7.1%,
reflecting accelerated investment and the impact of revenue growth
on variable compensations. The jaws effect was positive over the
quarter. The cost/income ratio thus stood at
54.5%, a slight improvement year-on-year (-0.2 percentage
point). Gross operating income increased by +8.0%
compared to the second quarter of 2023. The contribution from
equity-accounted entities, comprising the contribution from
Amundi’s Asian joint ventures, stood at €33 million, up +19.9%
from the second quarter of 2023, driven in particular by the strong
growth of the contribution from SBI MF in India. The income tax
charge stood at -€95 million, up +5.1%. Overall, net
income Group share totalled €218 million, up +8.4%
compared to the second quarter of 2023.
In the first half of 2024,
total revenue rose by +5.8% in asset management, reflecting
sustained growth in management fees and a sharp increase in Amundi
Technology revenues (€35m, +21.7%) and net financial income.
However, performance fees were down. Growth in net management fees
was slightly lower than growth in average assets under management
excluding JVs, reflecting a slight erosion of margins due to an
unfavourable change in the product mix, against a backdrop of
client risk aversion. Operating expenses excluding SRF increased by
+5.7%. The cost/income ratio excluding SRF was 55.1%, stable
compared to the first half of 2023. As a result, gross operating
income was up +6.3% compared to first half 2023. The net income of
equity-accounted entities increased by +24.6%. All in all, net
income Group share stood at €415 million, an increase of
+7.1%.
Asset management contributed 10% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre) in the first half of 2024 and by 12% to
their underlying revenues.
At 30 June 2024, capital allocated to Asset
Management business line amounted to €1.3 billion, while
risk-weighted assets totalled €13.8 billion.
Wealth management
results36
With regard to the finalisation of the
acquisition of Degroof Petercam, the acquisition of the 65%
majority stake was completed on 3 June 2024. The financial data
presented below therefore include one month of Degroof Petercam
income37. Given the success of the takeover bid,
Indosuez’s stake in Degroof Petercam increased to 78.7% as at 26
July 2024.
Revenues of Wealth management
stood at €307 million in the second quarter of 2024, up +17.3%
compared to the second quarter of 202337. Revenues
benefited from the impact of the integration of Degroof Petercam in
June 2024; excluding this effect, they were supported by the good
performance of both management and transactional fees and
commission income, which offset the erosion of interest revenues.
Expenses totalled -€255 million, up +26.6%
compared to the second quarter of 2023, due to the impact of the
integration of Degroof Petercam in June 202437,
integration costs of -€5 million in the second quarter 2024, and a
2023 base effect on taxes and property38. Restated for
these impacts, growth in expenses is under control, increasing by
+1.3% compared to the second quarter of 2023. The
cost/income ratio thus stood at 83.1% in the
second quarter 2024, an increase of +6.1 percentage points
compared to the second quarter of 2023. Gross operating income
stood at €52 million, down -13.6% compared to the second
quarter of 2023. Net income on other assets stood at
-€12 million in the second quarter of 2024, corresponding to
the Degroof Petercam acquisition costs, restated as specific items.
Net income Group share amounted to €24 million,
down -44.9% compared to the second quarter of 2023, but up +5.8%
after restatement for integration and acquisition costs of Degroof
Petercam, and 2023 base effects on taxes and
property38.
In the first half of 2024, Wealth management’s
revenues rose by +9.2% compared to the first half of 2023, notably
benefiting from the integration of Degroof Petercam in June 2024 to
reach €570 million. Expenses excluding FRU rose by 16.1% due
to the impact of the integration of Degroof Petercam in June
202437, integration costs, and a 2023 base effect on
taxes and property38. Restated for these impacts, growth
in expenses is under control, increasing by +3.1% compared to the
first half of 2023. Gross operating income thus decreased by -12.0%
to €102 million. Net income on other assets stood at
-€20 million in the first half of 2024, corresponding to the
Degroof Petercam acquisition costs, restated as specific items. Net
income Group share amounted to €49 million, down -38.8% compared to
the first half of 2023, and -3.8% after restatement for integration
costs, acquisition costs for Degroof Petercam, and 2023 base
effects38.
Wealth management contributed 2% of
Crédit Agricole S.A.’s business lines underlying net
income Group share. (excluding the Corporate Centre) at end
June 2024 and by 4% to their underlying revenues.
At 30 June 2024, capital allocated to Wealth
management was €0.9 billion and risk-weighted assets totalled
€9.1 billion.
Activity of the Large Customers division
Corporate and Investment Banking
(CIB) once again posted a very good performance in the
second quarter of 2024 (best second quarter and best half-year in
terms of revenues). Asset servicing also recorded
strong business during the period.
CIB second-quarter underlying revenues rose
sharply to €1,664 million, an increase of +7.3% compared to
the second quarter of 2023, driven by growth in its two business
lines. Revenues from Financing activities were up +5.2% compared to
the second quarter of 2023, at €817 million. This was mainly
due to the strong performance of Commercial Banking (+12.6%
compared to the second quarter of 2023), driven by International
Trade & Transaction Banking activities and by the development
of Corporate origination and Telecom activities. Capital Markets
and Investment Banking also reported a revenue growth of +9.4%
compared to the second quarter of 2023, at €847 million, driven by
the continued high level of performance of Capital Markets (+1.7%
compared to the second quarter of 2023) and the good level of
activity in Investment Banking, particularly in Structured Equities
and the recovery in M&A activities during the quarter.
Financing activities thus confirmed its leading
position in syndicated loans (#2 in France39 and #2 in
EMEA39Erreur ! Signet non
défini.Erreur !
Signet non défini.).
Crédit Agricole CIB reaffirmed its strong
position in bond issues (#3 All bonds in EUR
Worldwide3939) and was ranked #2 in Green,
Social & Sustainable bonds in EUR40. Average
regulatory VaR stood at €10.1 million in the second quarter of
2024, down from €11.5 million in the first quarter of 2024,
reflecting changes in positions and financial markets. It remained
at a level that reflected prudent risk management.
In addition, the second quarter of 2024 will see
the continued integration of RBC Investor Services, now CACEIS
Investor Services Bank (ISB), with the effective merger of the
legal entities with those of CACEIS on 31 May 2024 and the start of
the migration of client portfolios. As a reminder, ISB integration
costs will be recorded during the year for an amount of around €80
to €100 million, including €25 million in the second quarter of
2024, i.e. €45 million recorded in the first half of 2024 (€20
million having been recorded in the first quarter).
In the second quarter of 2024, the integration
of ISB and dynamic customer activity underpinned growth in assets
under management over the year, albeit with a slowdown over the
quarter due to negative market effects. Assets under
custody decreased by -1.0% at the end of June 2024
compared to the end of March 2024 and increased by +16.2% compared
to the end of June 2023, to reach €4,966 billion. Assets
under administration were up slightly by +0.3% this
quarter and +50.4% year-on-year, reaching €3,426 billion at
the end of June 2024.
Results of the Large Customers division
In the second quarter of 2024,
stated revenues of the Large Customers division
reached a record level of €2,223 million, up +16.7% compared
to the second quarter of 2023, buoyed by an excellent performance
in the corporate and investment banking activity and asset
servicing business lines. The division’s specific items this
quarter had an impact of +€42.1 million on financing
activities and comprised the DVA (the issuer spread portion of the
FVA, and secured lending) amounting to +€37 million, and loan
book hedging totalling +€5 million. Operating
expenses were up compared to the second quarter of 2023
(+16.0%) due, on the one hand, to variable compensation and IT
investments to support development and, on the other hand, to the
ISB scope effect (-€104 million). In addition, ISB integration
costs of -€25 million were recognised, restated as specific
items. As a result, the division’s gross operating
income was up sharply by +17.2% from the second quarter of
2023 to €1019 million. The division recorded an overall net
provision for cost of risk of -€39 million in the second
quarter of 2024, compared with a provision of -€32 million in
the second quarter of 2023. Stated pre-tax income totalled
€993 million, a substantial rise during the period (+17.6%).
The tax charge was -€248 million. Lastly, stated net
income Group share reached €694 million in the second
quarter of 2024, compared with stated income of
€622 million in the second quarter of 2023. Underlying
net income Group share came to €677 million in the second
quarter of 2024, versus €633 million in the second quarter of
2023.
In first half 2024, the
revenues of the Large Customers business line
amounted to a record high of €4,489 million (+13.5% compared
to first half 2023). Operating expenses excluding
SRF rose +15.9% compared to first half 2023 to
€2,501 million, largely related to staff costs and IT
investments, and including ISB integration costs of
€45 million. Gross operating income for first half 2024
therefore totalled €1,988 million, up +33.8% from first half
2023. The cost of risk ended the first half of
2024 with a net provision of -€5 million, compared with an
addition of -€68 million in the first half of 2023. The
business line’s contribution to underlying net income Group
share was at €1,416 million, a sharp increase of
+41.8% compared to first half 2023. Underlying net income Group
share came to €1,404 million in first half 2024, versus
€1,033 million in first half 2023.
The business line contributed 34% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end-June 2024 and 32% to
underlying revenues excluding the Corporate
Centre.
At 30 June 2024, the equity
allocated to the business line was
€13.6 billion and its risk-weighted assets
were €142.9 billion.
Underlying RoNE (return on
normalised equity) stood at 20.7% at end June 2024.
Corporate and Investment Banking
results
In the second quarter of 2024,
Corporate and Investment Banking stated net banking
income reached a record performance at
€1,706 million, up +11.2% from the second quarter of
2023, driven by favourable results in all its business lines, and
compared to a particularly strong performance in the second quarter
of 2023. The Corporate and Investment Banking division’s specific
items this quarter had an impact of +€42.1 million and
comprised the DVA (the issuer spread portion of the FVA, and
secured lending) amounting to +€37 million, and loan book
hedging totalling +€5 million. Operating
expenses rose by +3.9% (excluding SRF) to
-€839 million, mainly due to variable compensation and IT
investments. Gross operating income rose sharply
by +19.3% compared to second quarter 2023, taking it to a high
level of €867 million. The cost/income ratio was 49.2%, a
substantial improvement of -3.4 percentage points for the
period. The cost of risk recorded a net provision
of -€30 million, stable compared with the second quarter 2023.
Lastly, pre-tax income in the second quarter of
2024 stood at €841 million, versus €697 million for the
second quarter 2023. The tax charge stood at -€209 million.
Lastly, stated net income Group share rose sharply
by +12.9% to €618 million in the second quarter of 2024.
In first half 2024,
stated net banking income rose by
+7.4% compared to first half 2023, to €3,464 million, the
highest historical half-year level ever. The
specific items this half-year had an impact of +€49.4 million
and comprised the DVA (the issuer spread portion of the FVA, and
secured lending) amounting to +€42 million, and loan book
hedging totalling +€7 million. Operating
expenses rose +4.2% (excluding SRF), mainly due to
variable compensation and IT investment to support the development
of the business lines. As a result, gross operating
income at €1,703 million was up sharply (+34.7%
compared to first half 2023.) The cost of risk
recorded a net reversal of +€7 million in the first half of 2024,
compared to a provision of -€65 million in the first half of 2023.
The tax charge came to -€414 million, a +38.9% increase in
line with activity growth. Lastly, stated net income Group
share for first half 2024 stood at €1,269 million, an
increase of +44.3% over the period. Underlying net income Group
share came to €1,233 million in first half 2024, versus
€914 million in first half 2023.
Risk-weighted assets at end-June
2024 were up +€4.8 billion compared to end-March
2024, to €131.3 billion. This change was mainly due to organic
growth of the business lines.
Asset servicing results
In the second quarter of 2024,
revenues from Asset servicing rose +39.5% compared
to the second quarter of 2023 to €517 million, including a
scope effect of €107 million linked to the consolidation of
ISB. This rise was driven in particular by high fee and commission
income, itself driven by the increase in assets. Operating
expenses rose +58.2% (excluding SRF) to
-€365 million, including the ISB scope effect of
-€104 million and ISB integration costs of -€25 million
restated as a specific item (versus €6.3 million in
integration costs in the second quarter of 2023). Excluding this
scope effect and integration costs, the increase in expenses was
+5.6% on the second quarter of 2023. As a result, gross
operating income recorded strong growth (+6.8%) in the
second quarter of 2024 to €152 million. Thus, the
cost/income ratio stood at 70.6%, up
+8.4 percentage points (excluding SRF). Excluding
ISB integration costs, the ratio was 65.9%, up
+5.3 points compared to the second quarter of 2023 (excluding
SRF). The quarter also recorded €8 million in income from
equity-accounted entities. Net income therefore
totalled €113 million, up +3.3% from the second quarter of
2023. After the €36 million share of non-controlling
interests, the business line’s contribution to net income
Group share totalled €77 million in the second
quarter of 2024, up +2.5% year-on-year.
Stated revenues for first half
2024 were up +40.3% compared with first half 2023, buoyed
by the integration of ISB, strong commercial momentum and a
favourable trend in the interest margin over the period. Expenses
excluding SRF were up +58.1% and included a scope
effect of €207 million in the first half of 2024 plus
integration costs of €45 million related to the acquisition of
ISB’s activities (versus -€9.5 million in integration costs in
the first half of 2023). This resulted in a very strong +29%
increase in gross operating income compared to
first half 2023. The cost/income ratio, excluding ISB
integration costs, was 67.8%, up 5.1 points compared
to the second quarter of 2023. Net income thus
rose by +24.7%. The overall contribution of the business line to
net income Group share in first half 2024 was
€148 million, representing a +24.0% increase compared to 30
June 2023.
Specialised financial services activity
Crédit Agricole Personal Finance &
Mobility’s (CAPFM) commercial production totalled
€12 billion in second quarter 2024, down -11.0% compared to
second quarter 2023, having been impacted by the decline at GAC
Sofinco in China. However, it was up +2.8% compared to first
quarter 2024. The share of automotive financing41 in
quarterly new business production stood at 50.6% this quarter. The
average customer rate for production was unchanged from first
quarter 2024. CAPFM’s assets under management
stood at €115.8 billion at end-June 2024, up +8.2% compared to
end-June 2023, driven by all activities (Automotive
+13.9%42, LCL and Regional Banks +5.1%; Other entities
+4.5%). Lastly, consolidated outstandings totalled
€68.6 billion at end-June 2024, up +6.2% compared to the
second quarter of 2023.
Crédit Agricole Leasing &
Factoring’s (CAL&F) commercial
production was up +38.6% compared to the second quarter of
2023, driven by property leasing and renewable
energy financing in France. The favourable trend in
equipment leasing continued, particularly in
Poland. Leasing outstandings rose +8.5%
year-on-year, both in France (+7.2%) and internationally (+13.9%),
to reach €19.8 billion at end-June 2024 (of which
€15.7 billion in France and €4.1 billion
internationally). Commercial factoring production
fell by -21.4% compared to the second quarter of 2023, due to a
contracting market43. Factoring
outstandings at end-June 2024 were up +7.8% compared to
end-June 2023, thanks to increased factored revenues (+5.3% Q2/Q2),
which totalled €32.2 billion.
Specialised financial services’ results
Revenues of the Specialised
Financial Services division totalled €889 million in the
second quarter of 2024, down -23.5% compared to the second quarter
of 2023, but up +3.1% excluding the second-quarter 2023 base
effect44 related to the reorganisation of the Mobility
business. Revenues benefited in particular from favourable volume,
exchange rate and scope45 effects.
Expenses amounted to -€443 million, up +3.1%
versus second quarter 2023 and up +5.2% excluding the
second-quarter 2023 base effect44 and the scope
effect45. The cost/income
ratio46 stood at 49.8%, up
+2.1 percentage points compared to the same period in 2023.
Gross operating income stood at €447 million,
down -39.2% compared to the second quarter of 2023, and down -1.7%
excluding the second-quarter 2023 base
effect4444. The cost of risk
amounted to -€211 million, down -30.8% compared to second quarter
2024, and -4.2% excluding the base effect4444
of second quarter 2023. The business line’s net income
Group share amounted to €187 million, down -38.4%
compared to the same period in 2023, and up +14% excluding the
second-quarter 2023 base effect44.44
In first half 2024, revenues of
the Specialised Financial Services division fell -5.4% but rose
+13.1% from first half 2023 excluding the second-quarter 2023 base
effect44. This was due to a strong performance from
CAL&F (+8.6% versus first half 2023) and higher revenues for
CAPFM excluding the second-quarter 2023 base effect44
(+14.5% versus first half 2023). Revenues benefited from scope
effects49 related to the strategic pivot around Mobility
from the second quarter of 2023 onwards, specifically the full
consolidation of Crédit Agricole Auto Bank, the consolidation of
ALD and LeasePlan activities in six European countries, and the
acquisition of a majority stake in Hiflow in Q3-23. Costs
excluding SRF increased by +12.0% compared to first half
2023. Expenses excluding SRF and the second-quarter 2023 base
effect44 were up +14.7%, including the impact of scope
effects49. Excluding scope effects49 they
were up +4.2%. The cost/income
ratio46 stood at 51.7%, or
+8.0 percentage points versus the same period in 2023. When
restated for the second-quarter 2023 base effect,44 the
change was +0.7 percentage points. The cost of
risk was down -7.2% compared to the first half of 2023 to
-€429 million, and up +13.5% excluding the second-quarter 2023 base
effect.44 This increase incorporated in particular the
impact of scope effects49. The contribution from
equity-accounted entities was down -30.1% versus
the same period in 2023, and down -38.7% excluding the
second-quarter 2023 base effect44 related to the scope
effects49 of Crédit Agricole Auto Bank, which was fully
consolidated in the second quarter of 2023 having previously been
accounted for using the equity method. As a
result, net income Group share stood at
€330 million, down -23.5% compared to
first half 2023. Excluding the second-quarter 2023 base
effect,44 net income Group share was up +13.2% compared
to the same period one year earlier.
The business line contributed 8% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) in the second quarter 2024 and 12% to
underlying revenues excluding the Corporate Centre.
At 30 June 2024, the equity
allocated to the business line was €6.8 billion and
its risk-weighted assets were
€71.6 billion.
Underlying RoNE (Return on
Normalised Equity) stood at 9.1% in first half 2024.
Personal Finance and Mobility
results
Revenues for CAPFM amounted to
€695 million in the second quarter of 2024, down -29.1% versus the
second quarter of 2023, but up +2.0% excluding the second-quarter
2023 base effect.44 They were boosted by favourable
scope and volume effects45 (increased outstandings),
while the production margin rate was more or less stable compared
to the first quarter of 2024. Expenses stood at
-€343 million, up +2.4% compared to the same period in 2023.
Expenses excluding the second-quarter 2023 base
effect,44 and excluding the scope effect,45
were up +5.2% compared to second quarter 2023. Gross
operating income therefore came in at €352 million, down
-45.7%, or -4.2% excluding the second-quarter 2023 base
effect.44 The cost/income
ratio46 stood at 49.3%, an
improvement of +2.9 percentage points compared to the same
period in 2023. Cost of risk fell by -33.2% to
-€191 million compared to the second quarter of 2023, and was
down -5.0% excluding the second-quarter 2023 base
effect.44 Cost of risk/outstandings
thus stood at 114 basis points,47 down
-20 basis points compared to the second quarter of 2023. The
non-performing loans ratio was 4.3% at end-June 2024, up
+0.2 percentage points compared to end-March 2024, while
the coverage ratio reached 75.8%, down -2.9 percentage points
compared to end-March 2024. The contribution of
equity-accounted entities rose sharply (x2.2) from
the same period in 2023, and was up +19.3% excluding the
second-quarter 2023 base effect.44 As a result,
net income Group share stood at €132 million
in the second quarter of 2024, a decline of -49.7% from the same
period one year earlier. Excluding the second-quarter 2023 base
effect,44 net income Group share was up +7.8%
year-on-year.
In first-half 2024, CAPFM’s
revenues totalled €1,365 million, a decline of -8.5% from first
half 2023 but a rise of +14.5% excluding the second-quarter 2023
base effect.48 Revenues benefited from scope
effects49 related to the strategic pivot around Mobility
from the second quarter of 2023 onwards, specifically the full
consolidation of Crédit Agricole Auto Bank, the consolidation of
ALD and LeasePlan activities in six European countries, and the
acquisition of a majority stake in the capital of Hiflow in Q3-23.
Expenses excluding SRF stood at
-€698 million, an increase of +14.0% compared to first half
2023. Expenses excluding SRF and the second-quarter 2023 base
effect48 were up +17.5% from first half 2023, including
the impact of scope effects.49 Excluding scope
effects49 they were up +3.7%. Gross operating
income therefore came in at €667 million, which was a
drop of -23.0% but an increase of +14.0% excluding the
second-quarter 2023 base effect.48 The
cost/income ratio50
stood at 51.1%, or +10.1 percentage points versus the same period
in 2023. When restated for the second-quarter 2023 base effect, the
change was +1.3 percentage points. The cost of
risk fell -9.7% compared to the first half of 2023 to
-€390 million but rose +12.3% when the second-quarter 2023 base
effect48 is excluded. This rise notably includes the
impact of scope effects.49 The contribution from
equity-accounted entities was down -28.4% versus
the same period in 2023, and down -37.1% excluding the
second-quarter 2023 base effect,48 related to the scope
effects of Crédit Agricole Auto Bank, which was fully consolidated
in the second quarter of 2023 having previously been accounted for
using the equity method. As a result, net income Group
share stood at €231 million in the first half of
2024, a decline of -35.6% from the same period one year earlier.
Excluding the second-quarter 2023 base effect,48 net
income Group share was up +5.4% year-on-year.
Leasing & Factoring
results
CAL&F’s revenues totalled
€194 million, up +7.7% compared to the first quarter of 2023.
This increase was driven by all business lines and benefited from
favourable volume effects (increase in factored revenues and
equipment leasing outstandings) and favourable exchange rate
impacts in Poland. The trend in margins was positive.
Expenses rose by a controlled +6.1%, while the
cost/income ratio stood at 51.4%, an improvement
of -0.8 percentage points50 from the second quarter
of 2023. Gross operating income rose +9.6% to
€94 million, with a positive jaws effect of +1.6 percentage
points. Cost of risk totalled -€20 million,
up +4.6% compared to the same period in 2023. Cost of
risk/outstandings stood at 21 basis
points,47 which was stable compared to second quarter
2023. As a result, net income Group share was
€55 million, up +32.5% compared to second quarter 2023.
In first half 2024, revenues
totalled €371 million, an increase of +8.6% compared to
first half 2023. Costs excluding SRF
increased by +6.1% to €199 million. Gross operating
income rose to €172 million, a +24.0% increase from
first half 2023. The underlying cost/income ratio
excluding SRF amounted to 53.6%, an improvement of
-1.2 percentage points compared to first half 2023. The
cost of risk was up compared to first half 2023
(+27.6%). The business line’s contribution to underlying
net income Group share was
€99 million, up +37.0% compared to first half 2023.
Crédit Agricole S.A. Retail Banking
activity
Activity in Crédit Agricole S.A.’s
Retail Banking business was solid during the
quarter, with customer capture continuing at a good pace and the
number of customers taking out insurance policies remaining high.
Home loan production in France stabilised, with a slight increase
for corporate loans. Outside France, loan activity grew
steadily.
Retail banking activity in
France
In the second quarter of 2024,
gross customer capture stood at 72,000 new customers and net
customer capture came in at 6,000 customers. The equipment rate for
car, multi-risk home, health, legal, all mobile phones or personal
accident insurance rose year-on-year by +0.4 percentage points
compared to the second quarter of 2023 to stand at 27.8% at end
June 2024.
Loan production in the second quarter of 2024
stood at €6 billion, down -15% compared to the same period one
year earlier. Loan production increased sharply in the corporate
market (+37%), but fell in other markets, particularly in the home
loans market (-42%), although that market did show signs of
recovery during the quarter (+18% compared to first quarter
2024). The production rate for home loans came to
3.80%,51 down from the first quarter of 2024
(-36 basis points). The home loan stock rate improved by +4
basis points compared to the first quarter of 2024.
Outstanding loans totalled €168.2 billion
at end-June 2024, holding steady over the period (+0.5% versus the
second quarter of 2023), of which +0.8% for home loans, +1.2% for
loans to small businesses, -0.3% for corporate loans and -1.6% for
consumer finance. Outstandings also remained flat during the
quarter (+0.1% versus March 2024). Customer assets, which totalled
€251.8 billion at end-June 2024, were up +4.5% year-on-year,
but relatively unchanged from first quarter 2024, with term deposit
outstandings remaining fairly flat (+0.6% at end-June 2024 versus
end-March 2024) and demand deposits recovering during the quarter
(+1.3%). Off-balance sheet deposits benefited from a positive
market effect year-on-year.
Retail banking activity in
Italy
In the second quarter of 2024, CA
Italia posted a gross customer capture of 48,000 (+7%
versus second quarter 2023), while the customer base grew by around
19,000 customers.
Loan outstandings at CA Italia stood at
€61.0 billion52 at the end of June 2024, up +2.2%
compared to the end of June 2023, primarily due to the retail
market, which posted an increase in outstandings of +4.4%. Loan
production, driven by strong momentum across all markets, rose
sharply by +52.2% compared to second quarter 2023, despite the
downturn in the Italian market.53 In particular,
marketing initiatives boosted home loan production by +39.8%. The
stock rate on loans was stable compared to the first quarter of
2024.
Customer assets at end-June 2024 totalled
€116.7 billion, up +3.1% compared to end-June 2023; on-balance
sheet deposits increased by +2.5% compared to the previous year and
held steady at a high level compared to the first quarter of 2024,
driven by term deposits. The cost of fundings remained under
control; off-balance sheet deposits rose +4.0%, benefiting from a
market effect and positive net inflows.
CA Italia’s equipment rate in car, multi-risk
home, health, legal, all mobile phones or personal accident
insurance increased to 19.7%, up 1.8 percentage points
compared to the second quarter of 2023.
Crédit Agricole Group activity in
Italy54
The Group’s business lines in Italy continued to
grow in the first half of 2024. They served 6 million
customers at end-June 2024, with the Group’s market share standing
at 5%55 in Italy.
Crédit Agricole Italia has the best NPS among
commercial banks.56 The Group’s business lines were
ranked 2nd in consumer finance,57
3rd in asset management58 and 4th
in life bancassurance.59
Loans outstanding were stable at
€101 billion at end-June 2024 (+1% versus end-December 2023).
Total customer assets stood at €338 billion at end-June 2024
(+2% compared to end-December 2023).
International Retail Banking activity
excluding Italy
For International Retail Banking
excluding Italy, loan outstandings were up +1.4% at
current exchange rates at end-June 2024 compared with end-June 2023
(+5.6% at constant exchange rates). Customer assets rose by +1.4%
over the same period at current rate (+9.0% at constant rate).
In Poland in particular, loan outstandings
increased by +6.4% versus June 2023 (+3.4% at constant exchange
rates) and customer assets by +8.6% (+5.5% at constant exchange
rates), against a backdrop of fierce competition for deposits. Loan
production in Poland also remained strong, rising +31.9% compared
with the second quarter of 2023 at current exchange rates (up
+25.4% at constant exchange rates).
In Egypt, loan outstandings were impacted by the
devaluation of the Egyptian pound, falling by -12.4% between
end-June 2023 and end-June 2024, but rose +33.8% at constant
exchange rates. Over the same period, inflows fell by -26.1% but
were still up substantially by +12.8% at constant exchange
rates.
The surplus of deposits over loans in Poland and
Egypt amounted to €1.7 billion at 30 June 2024, and
reached €3.4 billion including Ukraine.
The quarter also saw the disposal of the
residual 15% stake in Crédit du Maroc.
French retail banking results
In the second quarter of 2024,
LCL’s revenues were up +2.2% compared to the second quarter of
2023, at €979 million. The net interest margin was up +10.9%
compared to second quarter 2023. It benefited from gradual loan
repricing and the positive impact of macro-hedging, but suffered
from the ongoing rise in the cost of customer resources and market
refinancing, despite these being partially offset by the positive
effect of the valuation of the private equity portfolio. Compared
to the second quarter of 2023, fee and commission income remained
flat excluding the base effect.60 Expenses rose +6.7% to
stand at -€591 million. Restated for one-off effects on
taxation and a base effect related to end-of-career allowances,
recurring expenses were up +4.4% over the period. The
cost/income ratio remained low at 60.3%, up
+2.6 percentage points excluding SRF.
Gross operating income fell by -5.4% to €389
million.
The cost of risk was up +38% to
-€95 million (including -€4 million in cost of risk on
performing loans, -€89 million in proven risk, and
-€2 million in other risks). This increase was mainly due to
corporate specific files. Nevertheless, the cost of
risk/outstandings remained under control, at 22 basis points.
The coverage ratio stood at 60.8% at end-June 2024, up
+0.9 percentage points compared to end-March 2024. The
non-performing loans ratio reached 2.0% at end-June 2024, stable
compared to end-March 2024 (+0.1 percentage point). As a
result, net income Group share decreased by -14.3% compared to the
second quarter of 2024.
In first half 2024, LCL
revenues totalled €1,933 million, a +2.0% increase
compared to first half 2023. The net interest margin was
up (+5.3%), benefiting from gradual loan repricing and the positive
impact of macro-hedging against a backdrop of rising refinancing
and funding costs (favourable valuation effects on the private
equity portfolio were also observed in the second quarter.)
Excluding the base effect,60 fee and commission income
rose +1.1% compared to first half 2023, particularly on insurance
and payment instruments. Expenses excluding SRF rose +3.5% over the
period (+2,4% excluding one-off effects on taxation and a base
effect linked to end-of-career allowances), while the cost/income
ratio remained under control at 61.7% (+0.9 percentage points
compared to the first half of 2023, excluding SRF). Gross operating
income was up +6% while the cost of risk rose by +58.5%. All in
all, the business line’s contribution to net income Group share
stood at €393 million and was down -3.7%.
In the end, the business line contributed 10% to
the underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) in the first half of 2024 and 14% to
underlying revenues excluding the Corporate
Centre.
At 30 June 2024, the equity
allocated to the business line stood at €5.1 billion
and risk-weighted assets amounted to
€53.7 billion. LCL’s underlying return on normalised equity
(RoNE) stood at 14.4% for the first half of 2024.
International Retail Banking
results61
In the second quarter of 2024,
revenues for International Retail Banking totalled
€1,027 million, up +4.6% (+7.4% at constant exchange rates)
compared to the second quarter of 2023. Operating
expenses stood at €555 million, up +10.3% (+11% at
constant exchange rates) after taking into account a €58-million
contribution to the deposit guarantee fund in Italy in the second
quarter. Restated for this impact, operating expenses remained
under control. Gross operating income consequently
totalled €472 million, down -1.4% (+3.0% at constant exchange
rates) for the period. Cost of risk amounted to
-€72 million, down -42.9% compared to second quarter 2023
(-42.6% at constant exchange rates).
All in all, net income Group share for
CA Italia, CA Egypt, CA Poland and
CA Ukraine amounted to €228 million in the
second quarter of 2024, up +15.6% (+22.0% at constant exchange
rates).
In first half 2024,
International Retail Banking
revenues rose +6.9% to €2,085 million (+1.9% at
constant exchange rates). Expenses excluding SRF and
DGS (deposit guarantee fund in Italy) stood at
-€1,002 million, an increase of +1.5% compared to first half
2023. Gross operating income totalled
€1,024 million, up +10.8% (+3.7% at constant exchange rates).
The cost of risk fell by -36.0% (-14.9% at
constant exchange rates) to -€154 million compared to first
half 2023. All in all, net income Group share of
International Retail Banking was €485 million,
compared with €375 million in the first half of 2023.
In the first half of 2024, the International
Retail Banking business line contributed 12% to the underlying net
income Group share of Crédit Agricole S.A.’s business
lines. (excluding the Corporate Centre) and 15% to underlying
revenues excluding the Corporate Centre.
At 30 June 2024, capital allocated to the
International retail banking business line was €4.4 billion,
and risk-weighted assets stood at €46.2 billion.
Results in Italy
In the second quarter of 2024,
Crédit Agricole Italy revenues stood at
€784 million, up +3.3% compared to the second quarter of 2023.
The net interest margin stabilised, rising slightly by +0.8%
between the second quarter of 2023 and second quarter of 2024, and
by +1.8% from the first quarter of 2024. Fee and commission income
rose +9% versus the second quarter of 2023, benefiting from the
impact of off-balance sheet deposits and strong trend in loan
production. Operating expenses were impacted by the recognition in
the second quarter of the contribution to the deposit guarantee
fund in Italy (equal to €58 million), which had been
recognised in fourth quarter 2023. Excluding this impact, expenses
for the quarter totalled €381 million, a drop of -4.0%
compared to second quarter 2023. Gross operating income decreased
by -4.8% compared to the second quarter of 2023.
Cost of risk amounted to -€61 million in second
quarter 2024, down -30.8% compared to second quarter 2023, and
corresponded almost entirely to provisions for proven risk. Cost of
risk/outstandings62 stood at 50 basis points, down
5 basis points compared to the first quarter of 2024. The
non-performing loans ratio improved compared to first quarter 2024
to stand at 3.2% while the coverage ratio was 72.4% (+0.9
percentage points compared to first quarter 2024). This translates
into net income Group share of €153 million for CA Italia, up
+2.0% compared to second quarter 2023 (up +22.2% after restating
for the DGS impact recorded in the second quarter of 2024).
In first half 2024,
revenues for Crédit Agricole
Italia rose +2.5% to €1,559 million. Expenses
excluding SRF and DGS were under control at
€763 million, a slight decrease of -0.7% compared to first
half 2023. This took gross operating income to
€738 million, up +3.7% compared to first half 2023. The
cost of risk amounted to -€123 million, down
-18.0% compared to the first half of 2023. As a result, net
income Group share of CA Italia totalled
€333 million, an increase of +7.5% compared to first half
2023.
CA Italy’s underlying RoNE (return on
normalised equity) was 22.6% at 30 June 2024.
Results for Crédit Agricole Group in
Italy63
In first half 2024, underlying
net income Group share of entities in Italy was
€659 million, an increase of 12% compared to first half
2023. This reflects the ongoing momentum of the various business
lines, particularly Retail Banking, Asset Gathering, and Large
Customers. The breakdown by business line is as follows: Retail
Banking 50%; Specialised Financial Services 19%; Asset Gathering
and Insurance 21%; and Large Customers 10%. Lastly, Italy’s
contribution to net income Group share of
Crédit Agricole S.A. in first half 2024 was 16%.
International Retail Banking results –
excluding Italy
In the second quarter of 2024,
revenues for International Retail Banking
excluding Italy totalled €243 million, up +9.2% (+23.6% at
constant exchange rates) compared to the second quarter of 2023.
Revenues in Poland were up +27.1% in the second quarter of 2023
(+20.9% at constant exchange rates), boosted by a higher net
interest margin and a strong upwards trend in fee and commission
income. Revenues in Egypt were down (-13.6% compared to the second
quarter of 2023) due to exchange rate movements (depreciation of
the Egyptian pound), but were particularly buoyant at constant
exchange rates (+41.9%). They benefited from a sharp rise in the
interest margin and very good foreign exchange revenues.
Operating expenses for International
Retail Banking excluding Italy amounted to
€116 million, up +9.0% compared to the second quarter of 2023
(+14.0% at constant exchange rates). Gross operating
income amounted to €127 million, an increase of +9.3%
(+34.2% at constant exchange rates) compared to the second quarter
of 2023. Cost of risk amounted to
-€11 million, down -71.1% (-70.5% at constant exchange rates).
Furthermore, at end-June 2024, the coverage ratio for loan
outstandings remained high in Poland and Egypt, at 123% and 141%,
respectively. In Ukraine, the local coverage ratio remains prudent
(321%). All in all, the contribution of International
Retail Banking excluding Italy to net income Group share
was €75 million, up +58.9% compared to the second quarter of
2023. The underlying RoNE (return on normalised equity) of Other
IRB (excluding CA Italy) stood at 41.0% at 30 June 2024.
In first half 2024,
revenues for International Retail Banking
excluding Italy totalled €525 million, up +22.1% (+30.8%
at constant exchange rates) compared to second quarter 2023, driven
by the increase in the net interest margin. Operating
expenses excluding SRF amounted to -€239 million, up +9.7%
compared to first half 2023 (+10.5% at constant exchange rates).
The cost/income ratio at end-June 2024 was 45.6% (an improvement of
5.1 points on the cost/income ratio excluding SRF at end-June
2023). Thanks to strong growth in revenues, gross operating
income came to €286 million, up +34.8% (+54.7% at constant
exchange rates) from first half 2023. Cost of risk
amounted to -€31 million, down -65.4% (-64.8% at constant
exchange rates) compared to the first half of 2023. All in all,
International Retail Banking excluding Italy
contributed €152 million to net income Group
share.
At 30 June 2024, the entire Retail
Banking business line contributed 22% to the underlying
net income Group share of Crédit Agricole S.A.’s core
businesses (excluding the Corporate Centre division) and 29% to
underlying revenues excluding the Corporate Centre.
At 30 June 2024, the division’s equity amounted
to €9.5 billion, while its risk-weighted assets totalled
€100.0 billion.
Corporate Centre results
The net income Group share of the Corporate
Centre was -€238 million in second quarter 2024, down
-€222 million compared to second quarter 2023. The negative
contribution of the Corporate Centre division can be analysed by
distinguishing between the “structural” contribution
(-€245 million) and other items (+€7 million).
The contribution of the “structural” component (-€245 million)
decreased by -€138 million compared to second quarter 2023 and can
be broken down into three types of activity:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. Parent Company. This contribution
amounted to -€332 million euros in the second quarter of 2024, down
-€71 million. It includes an increase in project-related expenses
and non-recurring tax charges.
- The businesses
that are not part of the business lines, such as CACIF (Private
equity), CA Immobilier, CATE and BforBank (equity-accounted).
Their contribution, at +€78 million in the second quarter of 2024,
was down -€69 million compared to the second quarter of 2023. It
includes the adverse impact of the valuation of Banco BPM shares,
partly offset by a higher dividend (i.e. -€71 million when the two
effects are combined).
- Group support
functions. Their contribution amounted to +€9 million this
quarter (+€1 million compared to second quarter 2023).
The contribution of “other items” was down
-€84 million compared to second quarter 2023 due to a base
effect (-€42 million) related to the reversal of the provision for
the Cheque Image Exchange fine recognised in the second quarter of
2023 as well as OIS/BOR volatility.
The “internal margins” effect at the time of the consolidation of
the insurance activity at the Crédit Agricole level was
accounted for through the Corporate Centre. Over the quarter, the
impact of internal margins was -€217 million in revenues and
+€217 million in expenses.
The underlying net income Group share of the
Corporate Centre division in first half 2024 was
-€345 million, down -€25 million compared to
first half 2023. The structural component contributed
-€351 million, while the division’s other items contributed
+€6 million over the half-year.
The “structural” component contribution was up +€136 million
compared to first half 2023 and can be broken down into three types
of activity:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. Parent Company. This contribution
amounted to -€627 million for first half 2024, up
+€21 million compared to first half 2023;
- Business lines
not attached to the core businesses, such as Crédit Agricole CIF
(private equity) and CA Immobilier and BforBank: their
contribution, at +€262 million in first half 2024, was up
on the first half of 2023 (+€111 million), primarily due to
the end of the SRF building-up period (-€84 million in first
half 2023);
- The Group’s
support functions: their contribution for the first half of 2024
was +€13 million, up +€4 million compared to the first half of
2023.
The contribution of “other items” was down
-€161 million compared to first half 2023.
At 30 June 2024, risk-weighted assets were
€29.2 billion.
Financial strength
Crédit Agricole Group
At 30 June 2024, the phased-in Common
Equity Tier 1 (CET1) ratio of
Crédit Agricole Group was 17.3%, a decrease of -0.2
percentage point compared to end-March 2024. Therefore, the
Crédit Agricole Group posted a substantial buffer of
7.6 percentage points between the level of its CET1 ratio and
the 9.8% SREP requirement. The fully loaded CET1 ratio is
17.2%.
During second quarter 2024:
- The CET1 ratio benefited this
quarter from an impact of +25 basis points related to
retained earnings.
- Changes in risk-weighted assets
related to business lines organic growth impacted
the Group’s CET1 ratio by -18 basis points (see below).
- Changes
related to M&A transactions mainly include the
impact of the majority stake in Degroof Petercam (-21 basis points)
and the acquisition of 100% of the capital of Alpha Associates (-3
basis points).
The phased-in Tier 1 ratio
stood at 18.5% while the phased-in total ratio was 21.3% at
end-June 2024.
The phased-in leverage ratio
stood at 5.5%, remaining stable compared to end-March 2024, but
well above the regulatory requirement of 3.5%.
Risk-weighted assets for the
Crédit Agricole Group amounted to €628 billion, up
+€9.9 billion compared to 31 March 2024. The change can be
broken down by business line as follows: Retail Banking
+€3.8 billion, Asset Gathering -€0.2 billion (including
the residual dividend payment for Insurance), Specialised Financial
Services +€1.2 billion, Large Customers
+€3.3 billion and Corporate Centre +€1.8 billion.
Maximum Distributable Amount (MDA and
L-MDA) trigger thresholds
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined capital
buffer requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 30 June 2024,
Crédit Agricole Group posted a buffer of
690 basis points above the MDA trigger, i.e.
€43 billion in CET1 capital.
Failure to comply with the leverage ratio buffer
requirement would result in a restriction of distributions and the
calculation of a maximum distributable amount (L-MDA).
At 30 June 2024,
Crédit Agricole Group posted a buffer of
199 basis points above the L-MDA trigger, i.e.
€42 billion in Tier 1 capital. At the
Crédit Agricole Group level, it is the distance to the
L-MDA trigger that determines the distance to distribution
restriction.
At 30 June 2024,
Crédit Agricole S.A. posted a buffer of
298 basis points above the MDA trigger, i.e.
€12 billion in CET1 capital.
Crédit Agricole S.A. is not subject to the L-MDA
requirement.
TLAC
Crédit Agricole Group must comply with
the following TLAC ratio requirements at all times:
- a TLAC ratio
above 18% of risk-weighted assets (RWA), plus – in accordance with
EU directive CRD 5 – a combined capital buffer requirement
(including, for the Crédit Agricole Group, a 2.5% capital
conservation buffer, a 1% G-SIB buffer and the counter-cyclical
buffer set at 0.77% for the CA Group at 30 June 2024).
Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a TLAC ratio of
above 22.3%.
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior preferred debt.
At 30 June 2024,
Crédit Agricole Group’s TLAC ratio stood
at 27.1% of RWA and 8.0% of leverage ratio exposure,
excluding eligible senior preferred
debt64, which is well above
the requirements. The TLAC ratio, expressed as a percentage of
risk-weighted assets, decreased by 20 basis points over the
quarter, due to risk-weighted assets increasing more rapidly than
equity and eligible items over the period. Expressed as a
percentage of leverage exposure (LRE), the TLAC ratio was stable
compared to March 2024.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 480 basis points higher,
i.e. €30 billion, than the current requirement of 22.3% of
RWA.
At end-June 2024, €5.7 billion equivalent
had been issued in the market (senior non-preferred and Tier 2
debt) as well as €1.25 billion of AT1s. The amount of
Crédit Agricole Group senior non-preferred securities
taken into account in the calculation of the TLAC ratio was
€31.0 billion.
MREL
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. At 30 June 2024,
Crédit Agricole Group has to meet a minimum total MREL
requirement of:
- 22.01% 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
0.77% for the CA Group at 30 June 2024). Considering the
combined capital buffer requirement, the
Crédit Agricole Group has to meet to a total MREL ratio
of above 26.3%;
- 6.25% of the
LRE.
At 30 June 2024,
Crédit Agricole Group had a total MREL ratio of
32.8% of RWA and 9.8% of leverage exposure, well above the
requirement.
An additional subordination requirement
(“subordinated MREL”) is also determined by the resolution
authorities and expressed as a percentage of RWA and LRE. At 30
June 2024, this subordinated MREL requirement for the
Crédit Agricole Group was:
- 18.25% of RWA,
plus a combined capital buffer requirement. Considering the
combined capital buffer requirement, the
Crédit Agricole Group has to meet to a subordinated MREL
ratio of above 22.5%;
- 6.25% of
leverage exposure.
At 30 June 2024, the
Crédit Agricole Group had a subordinated MREL
ratio of 27.1% of RWA and 8.0% of leverage exposure, well
above the 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 30 June 2024,
Crédit Agricole Group had a buffer of
460 basis points above the M-MDA trigger, i.e.
€29 billion in CET1 capital; the distance to the
M-MDA trigger corresponds to the distance between the subordinated
MREL ratio and the corresponding requirement.
Crédit Agricole S.A.
At 30 June 2024,
Crédit Agricole S.A.’s solvency ratio was higher than the
Medium-Term Plan target, with a phased-in Common Equity
Tier 1 (CET1) ratio of 11.6%, down -0.2 percentage points
from end-March 2024. Crédit Agricole S.A. therefore had a
comfortable buffer of 3 percentage points between the level of
its CET1 ratio and the 8.6% SREP requirement. The fully loaded CET1
ratio was 11.5%.
During second quarter 2024:
- The CET1 ratio
benefited this quarter from a positive impact of +22 basis points
linked to retained earnings. This impact
corresponds to net income Group share net of AT1 coupons (impact of
+44 basis points) and of the distribution of 50% of earnings,
i.e. a provision for dividends of 29 euro cents per share in second
quarter 2024 (-22 basis points).
- Changes in
risk-weighted assets related to business line
organic growth impacted the CET1 ratio by -12 basis points, of
which +5 basis points in the Insurance business line (including the
residual dividend payment for the quarter), with the other business
lines contributing by -17 basis points.
- Changes
related to M&A transactions mainly include the
impact of the majority stake in Degroof Petercam (-28 basis points)
and the acquisition of 100% of the capital of Alpha Associates (-5
basis points).
The phased-in leverage ratio
was 3.8% at end June 2024, down -0.1 percentage points
compared to end-March 2024 and above the 3% requirement.
The phased-in Tier 1 ratio
stood at 13.4% and the phased-in total ratio at 17.6% this
quarter.
Risk-weighted assets for
Crédit Agricole S.A. amounted to €399 billion at
30 June 2024, up +€6.5 billion compared to 31 March 2024. The
change can be broken down by business line as follows:
- Asset
Gathering posted a decline of -€0.3 billion, including -€2.7
billion in RWA for Insurance related to the payment of the residual
dividend and the net income for the second quarter of 2024. The
integration of Degroof Petercam contributed by +€2.6 billion to RWA
over the period.
- Specialised
Financial Services was up +€1.2 billion, driven by growth in
consumer finance.
- Large
Customers recorded an increase in risk-weighted assets of
+€3.3 billion over the quarter, including +4.8 billion
for Crédit Agricole CIB and -€1.6 billion for
CACEIS.
- The Retail
Banking and Corporate Centre divisions posted an increase in
risk-weighted assets of +€1.3 billion and +€1.0 billion,
respectively.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is
based on the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet and
whose definition is commonly accepted in the marketplace. It
relates to the banking scope, with insurance activities being
managed in accordance with their own specific regulatory
constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €49 billion at end-June 2024. Similarly,
€154 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 €187 billion at
end-June 2024 – relate to derivatives, margin calls,
adjustment/settlement/liaison accounts and to non-liquid securities
held by Corporate and Investment Banking (CIB) 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
(€103 billion at end-June 2024) is booked to assets under
“Customer-related trading assets” and to liabilities under
“Customer-related funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, Senior
issuances placed through the banking networks as well as financing
by the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Medium to long-term repurchase agreements are
also included in “Long-term market funds”.
Finally, the CIB’s counterparties that are banks
with which we have a commercial relationship are considered as
customers in the construction of the cash balance sheet.
Standing at €1,722 billion at 30 June 2024,
the Group’s banking cash balance sheet shows a surplus of
stable funding resources over stable application of funds of
€198 billion, up +€12 billion compared with
end-March 2024 after repayment of TLTROs in June
(€5 billion).
Total TLTRO 3 outstandings for
Crédit Agricole Group amounted to €0.7 billion at 30
June 2024, down -€5.1 billion, repaid during the quarter.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 30 June 2024
(central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €262 billion at 30 June 2024, stable from end-March
2024. Issuances of senior preferred debt offset the repayment of
TLTRO 3 in June 2024.
They included senior secured debt of
€77 billion, senior preferred debt of €127 billion,
senior non-preferred debt of €34 billion and Tier 2
securities amounting to €24 billion.
The Group’s liquidity reserves, at
market value and after haircuts, amounted to €478 billion at
30 June 2024, up +€2 billion compared to 31 March
2024.
They covered short-term net debt more than two
times over (excluding the replacements with Central Banks).
The increase in liquidity reserves was mainly
due to:
- Collateral
release following the TLTRO repayment for +€5 billion;
- End of TRICP
eligibility for debts of less than €25,000 for
-€3 billion.
Crédit Agricole Group also continued
its efforts to maintain immediately available reserves (after
recourse to ECB financing). Central bank eligible non-HQLA assets
after haircuts amounted to €158 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
At 30 June 2024, the end of month LCR
ratios were 146% for Crédit Agricole Group
(representing a surplus of €99.8 billion) and 152%
for Crédit Agricole S.A. (representing a
surplus of €96.3 billion). They were higher than the Medium-Term
Plan target (around 110%).
In addition, the NSFR of
Crédit Agricole Group and Crédit Agricole S.A.
exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021 and above the Medium-Term
Plan target (>100%).
The Group continues to follow a prudent policy
as regards medium-to-long-term refinancing, with a
very diversified access to markets in terms of investor base and
products.
At 30 June 2024, the Group’s main
issuers raised the equivalent of €40
billion65,
66 in medium-to-long-term debt on the
markets, 47% of which was issued by
Crédit Agricole S.A. In particular, the following amounts
are noted for the Group:
-
Crédit Agricole CIB issued €14.3 billion in structured
format, including €1.3 billion in Green Bond format;
-
Crédit Agricole Personal Finance & Mobility (formerly
Crédit Agricole Consumer Finance) issued €1.5 billion
equivalent in EMTN issuances through
Crédit Agricole Auto Bank (CAAB) and
€0.3 billion equivalent in securitisations;
-
CA Italia issued two senior secured debt issuances for a total
of €1.5 billion, of which €500 million in Green Bond
format;
-
Crédit Agricole next bank (Switzerland) issued two tranches in
senior secured format for a total of 200 million Swiss
francs, of which 100 million Swiss francs in Green Bond
format.
The Group’s medium-to-long-term financing can be
broken down into the following categories:
-
€8.6 billion in secured financing;
-
€15.2 billion in plain-vanilla unsecured financing;
-
€14.2 billion in structured financing;
-
€2.1 billion in long-term institutional deposits and CDs.
In addition, €9.2 billion was raised
through off-market issuances, split as follows:
-
€7.2 billion from banking networks (the Group’s retail banking
or external networks);
-
€0.4 billion from supranational organisations or financial
institutions;
-
€1.6 billion from national refinancing vehicles (including the
credit institution CRH).
At 30 June 2024,
Crédit Agricole S.A. raised the equivalent of
€18.8 billion on the
market67,68
representing 72% of its 2024 refinancing
programme:
The bank raised the equivalent of
€18.8 billion, of which €3.2 billion in senior
non-preferred debt and €2.5 billion in Tier 2 debt, as well as
€6.6 billion in senior preferred debt and €6.5 billion in
senior secured debt at end-June. The financing comprised a variety
of formats and currencies, including:
-
€3.8 billion69;
-
4.85 billion US dollars (€4.5 billion equivalent);
-
0.6 billion pounds sterling (€0.7 billion
equivalent);
-
230 billion Japanese yen (€1.4 billion equivalent);
-
0.5 billion Swiss francs (€0.6 billion equivalent);
-
1.75 billion Australian dollars (€1.1 billion equivalent);
-
2.5 billion renminbi (€0.3 billion equivalent).
At end-June, Crédit Agricole S.A. had
issued 69% of its funding plan in currencies other than the
euro70,71.
In addition, on 2 January 2024,
Crédit Agricole S.A. issued a PerpNC6 AT1 bond for
€1.25 billion at an initial rate of 6.5% and announced the
repayment of AT1 (144A: US225313AL91 & RegS: USF2R125CF03) at
the 1st Call Date on 23/09/2024 for 1.25 billion US
dollars.
Since end-June, €1.3 billion of additional
funding has been raised, of which one Senior Non-Preferred issuance
in Social Bond format for €750 million and one Panda Bond issuance
in Senior Preferred dual-tranche format with maturities of three
and five years for €0.6 billion equivalent.
Hence, at end-July, the amount issued was
€20.1 billion, i.e. 77%72 of the 2024 funding
plan.
Economic and financial
environment
Review of the first half of
2024
In the US, the resilience that
characterised the economy in 2023 broadly persisted at the
beginning of 2024. Although growth slowed in the first quarter to
1.3% (annualised quarterly rate), an analysis of its components
reveals a more positive picture, with a large part of the slowdown
due to volatile components such as stocks and net exports, whereas
private domestic demand held up well and increased by 2.8%. Coupled
with the booming job market, the reduced short-term sensitivity to
interest rates (balance sheet strengthened, persistently low cost
of debt) meant growth could better withstand the most aggressive
monetary tightening for decades (the Fed Funds rate increased by
525 basis points in just under a year and a half, reaching
5.50% in August 2023).
Despite disinflation, stubbornly high service prices meant that
inflation was still too persistent for monetary policy to be eased.
While the total inflation rate was surprising in June due to lower
energy prices, it remained high (3% year on year), as did
underlying inflation (excluding energy and food products), which
was 3.3% year on year. The process of disinflation can nevertheless
be seen across all components: prices of underlying goods fell a
little further (-1.8% year on year), whereas the rate of inflation
for underlying services (services excluding energy) fell to its
lowest level since April 2022 (5.1% year on year). Even though the
increase in the price of services remained high, this news on
inflation is somewhat reassuring.
In China, according to data
only just published for the second quarter, GDP growth slowed
considerably (falling from 1.5% to 0.7% quarter on quarter) to 5%
year on year. The slowdown in growth was therefore sharper than
expected. This remains attributable to weak domestic demand, with
sluggish household consumption and investment due to the property
sector crisis, where the outlook remains negative. Net exports
again made a positive contribution to growth, but to a lesser
degree than previously.
In the Eurozone, growth in the
first quarter of 2024 (0.3% quarter on quarter) accelerated
compared with an almost stagnant 2023. This acceleration should be
viewed in perspective, since it does not erase the effects of past
shocks, particularly those related to the war in Ukraine. Thus, in
the first quarter of 2024, the Eurozone’s GDP was slightly lower
than the level it could have reached if the trend recorded between
the sovereign debt crisis and the Covid crisis (i.e. from 2013 to
2019) had continued. Nevertheless, leaving the growth “overhangˮ at
0.3% for 2024, the growth came as a pleasant surprise and was due
primarily to the acceleration in net exports, whereas domestic
demand contracted and the destocking process intensified. The
modest growth in private consumption, the stagnation of government
spending and the sharp fall in investment resulted in weak domestic
demand. The lack of acceleration in household consumption was
disappointing. Despite the increased purchasing power of
households’ disposable income, people seem to have again
prioritised saving over spending.
In France, quarter-on-quarter growth was 0.2% in
the first quarter of 2024, driven by consumption and foreign trade,
while investment fell slightly for the second quarter in a row and
destocking continued to weigh on growth. The growth overhang for
2024 stands at 0.6% as at the end of the first quarter.
Disinflation throughout the Eurozone continued, despite a few
“disappointments”. In May, inflation accelerated slightly (to 2.6%
year on year, compared to 6.1% in May 2023), due essentially to
base effects on energy and transport prices in Germany. Underlying
inflation, driven by the resilience of service prices (4.1% year on
year, i.e. a contribution of more than 1.8 points to total
inflation), climbed to 2.9%.
In terms of monetary policy,
since the beginning of the year, the members of the Fed and the ECB
have made an effort to temper overly optimistic market expectations
with regard to the timetable and extent of future rate cuts.
In the US, our scenario has never presumed an
early and massive cut in key rates. Rather than the ‘pivot’ hoped
for by markets, which in January 2024 were expecting a fall in the
Fed Funds rate to 3.65% by December 2024, the Fed has for some time
favoured a ‘plateau’, setting key interest rates at a high level
over the long term. Now, faced with stubborn inflation,
still-vigorous growth and an only slightly less-dynamic labour
market, the Fed has left the Fed Funds rate unchanged at 5.50%.
When giving the Fed’s Semiannual Monetary Policy Report to a
Congress hearing in early July, Jerome Powell, the Fed Chair,
softened his tone slightly. Stressing that recent data showed
“clear signs” of a slowdown in the labour market, he stated that
high inflation was not the only risk. He reiterated the need for
more data confirming the disinflationary trend, while noting that
rates would fall before inflation returned to 2%.
The status quo in the US did not prevent the
ECB from embarking on a tentative easing of
monetary policy in June by making its first rate cut since
September 2019. This cut of 25 basis points was widely
expected and brought the deposit, refinancing and marginal lending
facility rates down to 3.75%, 4.25% and 4.50% respectively.
Although inflation is still above the target of 2%, the ECB has
taken into consideration the progress already achieved in the
process of disinflation and the lowering of inflation forecasts. It
has not given any indications about the future trajectory of its
rates. Moreover, despite the interest rate cut, its monetary policy
stance remains restrictive, still designed to promote moderation of
domestic demand in order to prevent corporates from passing on
rising labour costs to prices.
After betting on rapid monetary easing to prompt
a sharp downwards movement from October 2023, interest
rates rose slightly as stubborn inflation justified a
postponement of monetary loosening. In the US, the 2-year swap rate
(4.60% as at the end of June) and 10-year swap rate (3.40% as at
the end of June) increased by a combined 60 basis points in
six months. In the Eurozone, the same two rates slowly picked up
until the cut in the ECB’s key interest rates in June caused a
slight fall. At the end of June, the 2-year and 10-year swap rates
in the Eurozone were around 3.20% and 2.80% respectively, having
increased by 42 basis points and 35 basis points
respectively during the first half. During the same period, the
German 10-year sovereign bond (Bund) yield picked up by
45 basis points to 2.45% at the end of June. While the risk
premium offered by Italy over the Bund narrowed (by 10 basis
points to 158 basis points at the end of June), the French
spread widened by almost 30 basis points to reach
80 basis points at the end of June, due to the uncertainty
linked to the dissolution of the National Assembly. With regard to
stock markets, whereas the S&P 500 index
continued its strong performance (recording an increase of more
than 15% during the first half), the European index
(Euro Stoxx 50) rose by 8.5% and the CAC 40 was up by
only 1.5%. Lastly, the depreciation of the euro
against the dollar was just 1.6% during the first half. The
appreciation of the dollar can be attributed to several factors,
including the resistance of the US economy despite signs of a dip,
the difference in pace between the monetary policy easing with the
ECB leading the way, and the prospect of Donald Trump winning the
presidential election.
Prospects for the second half of 2024
and 2025
The economic and financial scenario was drawn up
against a backdrop of political uncertainties of varying intensity,
which will be resolved in the near future (legislative elections in
France) or later in the year (the US presidential election). While
the second event is likely to significantly shape or alter the
outlines of the global scenario, the first is less likely to
completely upend it. In the Eurozone, an acceleration of growth
supported by private consumption remains likely. The cracks that
have appeared in the US seem likely to curb growth without causing
it to collapse, and growth could once again prove resilient.
In the US, while the depressive
impact of the Fed’s monetary policy has been less severe than
feared, it has not disappeared: its effects will be felt over time.
Corporate debt is up, to be refinanced at higher rates in 2024 and
2025; a gradual rise in the effective mortgage rate; defaults on
other types of debt (credit cards, auto loans) are on the rise;
surplus savings (specifically in lower-income households) have
dried up; and savings rates have declined considerably. These are
the first cracks still forecasting a mild recession as 2024 becomes
2025. After 2.5% in 2023, our scenario is based on growth of 2.0%
in 2024 and just 0.4% in 2025, despite the expected upturn in
quarterly growth throughout the latter part of 2025, thanks to
falling interest rates: declining growth combined with an
alternative scenario in which the economy once again displays
surprising resilience. In line with a slowdown, the slide in
inflation should continue on a gradual and uneven trajectory.
Global inflation should drop below 3% during the summer, before
fluctuating between 2.5% and 3% in the second half of 2024. In
2025, after falling at the start of the year, it is expected to
stabilise at around 2.4%, thus exceeding the Fed’s target of 2%
until the end of the year.
In China, our forecast for
growth (4.7% in 2024 and 4.2% in 2025, coupled with very low
average inflation of 0.5% then 1.4%) remains more conservative than
the official target of 5%, due to a number of uncertainties
weighing on the scenario. In the short term, the main risks are
related to the increase in protectionist measures in the US, and
particularly in Europe. The primarily political increase in customs
duties announced by Joe Biden on symbolic products exported by
China (solar panels, batteries, electric vehicles) will have
limited economic consequences. The tariff rise that has just been
announced by the European Union on electric vehicles is already
considerably more painful. The EU accounted for 40% of Chinese
electric vehicle exports in 2023. Lastly, a Trump victory would
open the door to new tariff increases on all Chinese imports, which
would be taxed at 60%. A Trump presidency might also crack down on
exporters seeking to avoid customs duties (via third countries such
as Mexico and Vietnam). The question of budgetary support for the
economy therefore continues to be crucial. The third plenum, the
Chinese Communist Party’s meeting dedicated to economic matters, is
due to take place in July and is expected to result in the
unveiling of new measures to support the property sector.
In the Eurozone, while the
European elections have confirmed the broad balance of
representation in the European parliament, the uncertainty linked
to the vote in France has introduced a downside risk. Designed and
calculated based on an “unchanged policy”, prior to the dissolution
of the National Assembly, our central scenario does not incorporate
this risk and retains its key hypothesis: the principle of an
acceleration in growth led by private consumption still applies,
despite the prudence still shown by consumers and a disinflationary
trend that looks set to be more erratic. The decline in inflation,
the benefits of which are already visible, is now a little less
smooth and obvious, due in particular to the inertia of inflation
in services, reflecting the delayed pressures on salary costs
related to the slower recovery of past losses of purchasing power
in pay negotiations. Lastly, consumption is the driving force
behind the recovery, but it may be accompanied by slightly higher
overseas demand, thanks to the trend in the global manufacturing
cycle (resilience of end demand and replenishment of inventories),
enabling the Eurozone’s GDP to grow by 0.8% in 2024 and 1.5% in
2025.
In France, the acceleration forecast for the
second half should enable growth to achieve the same pace as in
2023 (i.e. an annual average of 1.1%) before picking up slightly
(1.3% in 2025). Foreign trade is expected to make a positive
contribution to growth in 2024 (0.9 percentage point) and the
existence of room for recovery (particularly in the aeronautical
sector) should continue to boost exports. Nevertheless, growth
looks set to continue to be driven primarily by household
consumption (+1.1% in 2024 and +1.3% in 2025), boosted by increased
purchasing power, thanks to the continued strong growth in nominal
wages and the continuing trend of disinflation. Inflation, as
represented by the consumer price index, is expected to fall to an
annual average of 2.3% in 2024 and to 1.5% in 2025.
In terms of monetary policy,
inflation figures in the US, which indicate a slow convergence
towards the target, the resilience of growth and a strong
employment rate despite recent signs of weakness, invite caution
and suggest the need for a delayed monetary easing. The
Fed will need a little more time to be convinced
that inflation is indisputably converging towards 2% before making
its first cut in key rates. This could take place in September and
be followed by a further cut in December: the cumulative fall would
be 50 basis points in 2024. In 2025, monetary easing could be
more aggressive, totalling 150 basis points throughout the
first three quarters. However this forecast rests on a relatively
pessimistic economic scenario. If the economy and the labour market
prove to be more resilient than expected, the Fed may adopt a more
gradual pace of rate cuts.
The status quo in the US did not prevent the ECB
from embarking on its own easing of monetary policy that will
continue, except in the event of severe downwards pressures on the
euro or a considerably more dynamic and, in particular, more
inflationary recovery than expected. Inflation, both total and
underlying, should converge at around 2% during the second half of
2025, thereby enabling the ECB to prolong the relaxation of its
monetary policy that it began in June with a cut of 25 basis
points. Our scenario assumes a gradual and ongoing easing whereby
the ECB will lower its deposit rate by 25 basis points each
quarter until September 2025 to bring it to 2.50%, which we
estimate to be the neutral rate.
Interest rates should come
under moderate upwards pressure. In fact, the idea of monetary
easing has been floating around for some time. Whether the easing
has begun or is on the horizon (but receding, as in the US), it is
no guarantee that interest rates will fall. Several factors,
including the creeping risk of inflation and the possible increase
in the neutral rate, argue in favour of maintaining or even raising
rates moderately.
In the US, our rate forecasts have been revised
upwards slightly across the entire curve. For the 10-year sovereign
rate, we are now predicting 4.30% at the end of 2024, then 4.05% at
the end of 2025. The upwards revision of the long-term rate
signalled in the dot plots is worthy of note. Fixed at 2.50%
between 2019 and 2023, this rate was raised for the second
consecutive Federal Open Market Committee (FOMC) meeting, from
2.5625% in March to 2.75%. This revision reflects the possible
increase in the neutral rate, which is likely to be linked to
factors such as deglobalisation and the slowdown in demand for
Treasury securities from global central banks, sovereign wealth
funds and national financial institutions.
In the Eurozone, the ECB started lowering its key
interest rates, which is expected to continue. Markets are fully
anticipating this cycle of monetary easing and are expecting the
deposit rate to fall to around 2.50%. In a context of relative
optimism about European growth and still-high public deficits
(Belgium, France and Italy are subject to excessive deficit
procedures and must all present a deficit reduction plan by
September), European sovereign yields have little chance of
falling, particularly if the Fed delays the start of its own cycle
of easing. Our scenario is based on German 10-year yields standing
at around 2.65% at the end of 2024. Following the dissolution of
the French National Assembly, at a time when spreads were tight,
the addition of a political risk premium (with no risk of debt
redenomination) resulted in the French spread widening against the
Bund to more than 80 basis points. This OAT-Bund spread may
fluctuate in light of political uncertainties that are not likely
to be resolved quickly in the absence of a clear parliamentary
majority.
Lastly, events in the US, such as the Fed’s
monetary resistance and a possible Trump victory in the
presidential election, are generally favourable to the
dollar. Then there are individual factors such as
the political risk for the Eurozone, the deterioration of the
budgetary situation in Latin America and, conversely, the
favourable trend for certain Asian or non-Eurozone European
currencies. Our scenario assumes a modest depreciation of the euro
to $1.05 at the end of 2024.
Appendix 1 – Specific items,
Crédit Agricole Group and
Crédit Agricole S.A.
Credit Agricole
Group – Specific items, Q2-23, Q2-24, H1-23 and
H1-24
| |
|
Q2-24 |
Q2-23 |
|
H1-24 |
H1-23 |
| €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) |
|
37 |
27 |
(15) |
(11) |
|
42 |
31 |
(23) |
(17) |
|
Loan portfolio hedges (LC) |
|
5 |
4 |
(1) |
(1) |
|
7 |
5 |
(25) |
(18) |
|
Home Purchase Savings Plans (LCL) |
|
1 |
1 |
- |
- |
|
1 |
1 |
- |
- |
|
Home Purchase Savings Plans (CC) |
|
(2) |
(1) |
- |
- |
|
(0) |
(0) |
- |
- |
|
Home Purchase Savings Plans (RB) |
|
22 |
17 |
- |
- |
|
63 |
47 |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
299 |
214 |
|
- |
- |
299 |
214 |
|
Check Image Exchange penalty (CC) |
|
- |
- |
42 |
42 |
|
- |
- |
42 |
42 |
|
Check Image Exchange penalty (LCL) |
|
- |
- |
21 |
21 |
|
- |
- |
21 |
21 |
|
Check Image Exchange penalty (RB) |
|
- |
- |
42 |
42 |
|
- |
- |
42 |
42 |
| Total
impact on revenues |
|
64 |
48 |
388 |
306 |
|
114 |
85 |
356 |
283 |
|
Degroof Petercam integration costs (AG) |
|
(5) |
(4) |
- |
- |
|
(5) |
(4) |
- |
- |
|
ISB integration costs (LC) |
|
(25) |
(13) |
- |
- |
|
(44) |
(23) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(18) |
(13) |
|
- |
- |
(18) |
(13) |
| Total
impact on operating expenses |
|
(30) |
(17) |
(18) |
(13) |
|
(50) |
(27) |
(18) |
(13) |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(85) |
(61) |
|
- |
- |
(85) |
(61) |
|
Provision for risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
(20) |
(20) |
- |
- |
| Total
impact on cost of credit risk |
|
- |
- |
(85) |
(61) |
|
(20) |
(20) |
(85) |
(61) |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(12) |
(12) |
|
- |
- |
(12) |
(12) |
| Total
impact equity-accounted entities |
|
- |
- |
(12) |
(12) |
|
- |
- |
(12) |
(12) |
|
Degroof Petercam aquisition costs (AG) |
|
(12) |
(9) |
- |
- |
|
(20) |
(15) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
28 |
12 |
|
- |
- |
28 |
12 |
| Total
impact on Net income on other assets |
|
(12) |
(9) |
28 |
12 |
|
(20) |
(15) |
28 |
12 |
| |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific items |
|
22 |
22 |
301 |
232 |
|
24 |
22 |
269 |
209 |
|
Asset gathering |
|
(17) |
(13) |
- |
- |
|
(25) |
(19) |
- |
- |
|
French Retail banking |
|
24 |
18 |
63 |
63 |
|
65 |
48 |
63 |
63 |
|
International Retail banking |
|
- |
- |
- |
- |
|
(20) |
(20) |
- |
- |
|
Specialised financial services |
|
- |
- |
212 |
140 |
|
- |
- |
212 |
140 |
|
Large customers |
|
18 |
18 |
(16) |
(12) |
|
5 |
13 |
(47) |
(35) |
|
Corporate centre |
|
(2) |
(1) |
42 |
42 |
|
(0) |
(0) |
42 |
42 |
| * Impact
before tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
Crédit
Agricole S.A. – Specific Items Q2-23, Q2-24, H1-23
and H1-24
| |
|
Q2-24 |
Q2-23 |
|
H1-24 |
H1-23 |
|
€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) |
|
37 |
27 |
(15) |
(11) |
|
42 |
31 |
(23) |
(16) |
|
Loan portfolio hedges (LC) |
|
5 |
4 |
(1) |
(1) |
|
7 |
5 |
(25) |
(18) |
|
Home Purchase Savings Plans (FRB) |
|
1 |
1 |
- |
- |
|
3 |
2 |
- |
- |
|
Home Purchase Savings Plans (CC) |
|
(2) |
(1) |
- |
- |
|
(2) |
(1) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
299 |
214 |
|
- |
- |
299 |
214 |
|
Check Image Exchange penalty (CC) |
|
- |
- |
42 |
42 |
|
- |
- |
42 |
42 |
|
Check Image Exchange penalty (LCL) |
|
- |
- |
21 |
20 |
|
- |
- |
21 |
20 |
| Total
impact on revenues |
|
42 |
30 |
346 |
264 |
|
51 |
37 |
315 |
241 |
|
Degroof Petercam integration costs (AG) |
|
(5) |
(4) |
- |
- |
|
(5) |
(4) |
- |
- |
|
ISB integration costs (LC) |
|
(25) |
(13) |
- |
- |
|
(44) |
(23) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(18) |
(13) |
|
- |
- |
(18) |
(13) |
| Total
impact on operating expenses |
|
(30) |
(17) |
(18) |
(13) |
|
(50) |
(27) |
(18) |
(13) |
|
Provision for risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
(20) |
(20) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(85) |
(61) |
|
- |
- |
(85) |
(61) |
| Total
impact on cost of credit risk |
|
- |
- |
(85) |
(61) |
|
(20) |
(20) |
(85) |
(61) |
| |
|
|
|
|
|
|
|
|
|
|
|
Mobility activities reorganisation (SFS) |
|
- |
- |
(12) |
(12) |
|
- |
- |
(12) |
(12) |
| Total
impact equity-accounted entities |
|
- |
- |
(12) |
(12) |
|
- |
- |
(12) |
(12) |
|
Degroof Petercam aquisition costs (AG) |
|
(12) |
(9) |
- |
- |
|
(20) |
(14) |
- |
- |
|
Mobility activities reorganisation (SFS) |
|
- |
- |
28 |
12 |
|
- |
- |
28 |
12 |
| Total
impact Net income on other assets |
|
(12) |
(9) |
28 |
12 |
|
(20) |
(14) |
28 |
12 |
| |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific items |
|
(0) |
5 |
259 |
190 |
|
(39) |
(25) |
227 |
167 |
|
Asset gathering |
|
(17) |
(13) |
- |
- |
|
(25) |
(18) |
- |
- |
|
French Retail banking |
|
1 |
1 |
21 |
20 |
|
3 |
2 |
21 |
20 |
|
International Retail banking |
|
- |
- |
- |
- |
|
(20) |
(20) |
- |
- |
|
Specialised financial services |
|
- |
- |
212 |
140 |
|
- |
- |
212 |
140 |
|
Large customers |
|
18 |
17 |
(16) |
(11) |
|
5 |
12 |
(47) |
(34) |
|
Corporate centre |
|
(2) |
(1) |
42 |
42 |
|
(2) |
(1) |
42 |
42 |
| * Impact
before tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
Appendix 2 – Crédit Agricole Group: income
statement by business line
Credit Agricole Group – Results by business line, Q2-23 and
Q2-24
|
|
Q2-24 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,255 |
979 |
1,051 |
1,946 |
889 |
2,223 |
(837) |
9,507 |
|
|
Operating expenses excl. SRF |
(2,560) |
(591) |
(573) |
(813) |
(443) |
(1,204) |
497 |
(5,687) |
|
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Gross operating income |
694 |
389 |
477 |
1,133 |
447 |
1,019 |
(340) |
3,819 |
|
|
Cost of risk |
(444) |
(95) |
(75) |
(2) |
(211) |
(39) |
(6) |
(872) |
|
|
Equity-accounted entities |
2 |
- |
- |
33 |
29 |
10 |
- |
74 |
|
|
Net income on other assets |
1 |
2 |
0 |
(12) |
(1) |
2 |
(0) |
(7) |
|
|
Income before tax |
253 |
296 |
402 |
1,152 |
265 |
993 |
(347) |
3,014 |
|
|
Tax |
(44) |
(65) |
(117) |
(282) |
(54) |
(248) |
48 |
(762) |
|
|
Net income from discont'd or held-for-sale ope. |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Net income |
209 |
231 |
285 |
870 |
210 |
745 |
(299) |
2,252 |
|
|
Non controlling interests |
(1) |
(0) |
(38) |
(124) |
(23) |
(36) |
(2) |
(224) |
|
|
Net income Group Share |
208 |
231 |
247 |
746 |
187 |
710 |
(300) |
2,028 |
|
|
|
Q2-23 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,353 |
959 |
1,741 |
1,005 |
1,162 |
1,905 |
(578) |
9,546 |
|
Operating expenses excl. SRF |
(2,448) |
(554) |
(715) |
(520) |
(430) |
(1,038) |
471 |
(5,233) |
|
SRF |
2 |
6 |
(0) |
(0) |
2 |
2 |
(6) |
6 |
|
Gross operating income |
907 |
411 |
1,026 |
485 |
735 |
869 |
(113) |
4,319 |
|
Cost of risk |
(405) |
(69) |
(0) |
(125) |
(304) |
(32) |
(3) |
(938) |
|
Equity-accounted entities |
0 |
- |
27 |
0 |
11 |
7 |
(0) |
46 |
|
Net income on other assets |
4 |
2 |
0 |
0 |
26 |
0 |
(0) |
33 |
|
Income before tax |
507 |
345 |
1,053 |
361 |
468 |
844 |
(116) |
3,460 |
|
Tax |
(93) |
(76) |
(245) |
(105) |
(143) |
(174) |
63 |
(772) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
1 |
3 |
0 |
- |
- |
4 |
|
Net income |
413 |
269 |
809 |
259 |
325 |
670 |
(53) |
2,692 |
| Non
controlling interests |
(0) |
0 |
(122) |
(39) |
(21) |
(34) |
5 |
(211) |
|
Net income Group Share |
413 |
269 |
687 |
220 |
304 |
635 |
(48) |
2 481 |
Credit Agricole Group – Results by business line, H1-24 et
H1-23
|
|
H1-24 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
6,568 |
1,933 |
2,131 |
3,739 |
1,736 |
4,489 |
(1,565) |
19,031 |
|
|
Operating expenses excl. SRF |
(5,044) |
(1,193) |
(1,098) |
(1,567) |
(897) |
(2,501) |
1,024 |
(11,276) |
|
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Gross operating income |
1,524 |
740 |
1,033 |
2,172 |
839 |
1,988 |
(541) |
7,755 |
|
|
Cost of risk |
(691) |
(214) |
(159) |
(5) |
(429) |
(5) |
(20) |
(1,523) |
|
|
Equity-accounted entities |
7 |
- |
- |
61 |
59 |
14 |
- |
142 |
|
|
Net income on other assets |
3 |
4 |
(0) |
(20) |
(1) |
2 |
(2) |
(14) |
|
|
Income before tax |
842 |
530 |
875 |
2,208 |
468 |
1,999 |
(563) |
6,361 |
|
|
Tax |
(191) |
(119) |
(260) |
(501) |
(97) |
(482) |
133 |
(1,517) |
|
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Net income |
651 |
412 |
615 |
1,707 |
372 |
1,517 |
(430) |
4,843 |
|
| Non
controlling interests |
(1) |
(0) |
(89) |
(236) |
(42) |
(69) |
6 |
(432) |
|
|
Net income Group Share |
650 |
412 |
525 |
1,471 |
330 |
1,448 |
(424) |
4,412 |
|
|
|
H1-23 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
6,686 |
1,895 |
1,994 |
3,486 |
1,834 |
3,956 |
(1,378) |
18,473 |
|
Operating expenses excl. SRF |
(4,889) |
(1,153) |
(1,020) |
(1,430) |
(800) |
(2,159) |
935 |
(10,517) |
|
SRF |
(111) |
(44) |
(40) |
(6) |
(29) |
(312) |
(77) |
(620) |
|
Gross operating income |
1,686 |
698 |
934 |
2,050 |
1,005 |
1,485 |
(521) |
7,337 |
|
Cost of risk |
(577) |
(135) |
(240) |
(1) |
(463) |
(68) |
(3) |
(1,486) |
|
Equity-accounted entities |
7 |
- |
1 |
49 |
85 |
11 |
(0) |
153 |
|
Net income on other assets |
6 |
2 |
0 |
0 |
25 |
5 |
(1) |
37 |
|
Income before tax |
1,122 |
566 |
695 |
2,098 |
652 |
1,433 |
(525) |
6,042 |
|
Tax |
(289) |
(138) |
(203) |
(475) |
(177) |
(358) |
157 |
(1,483) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
5 |
1 |
0 |
- |
- |
6 |
|
Net income |
833 |
428 |
497 |
1,624 |
475 |
1,075 |
(368) |
4,565 |
|
Non controlling interests |
(0) |
(0) |
(79) |
(233) |
(44) |
(54) |
(4) |
(415) |
|
Net income Group Share |
833 |
428 |
418 |
1,390 |
431 |
1,021 |
(372) |
4,150 |
Appendix 3 – Crédit Agricole S.A. : Results by
business line
|
Crédit Agricole S.A. – Results by business line, Q2-24 et
Q2-23 |
|
|
|
Q2-24 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,944 |
2,223 |
889 |
979 |
1,027 |
(267) |
6,796 |
|
Operating expenses excl. SRF |
(813) |
(1,204) |
(443) |
(591) |
(555) |
(15) |
(3,621) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,131 |
1,019 |
447 |
389 |
472 |
(283) |
3,175 |
|
Cost of risk |
(2) |
(39) |
(211) |
(95) |
(72) |
(5) |
(424) |
|
Equity-accounted entities |
33 |
10 |
29 |
- |
- |
(25) |
47 |
|
Net income on other assets |
(12) |
2 |
(1) |
2 |
0 |
24 |
15 |
|
Income before tax |
1,150 |
993 |
265 |
296 |
400 |
(289) |
2,814 |
|
Tax |
(283) |
(248) |
(54) |
(65) |
(117) |
63 |
(704) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
867 |
745 |
210 |
231 |
283 |
(226) |
2,110 |
|
Non controlling interests |
(131) |
(51) |
(23) |
(10) |
(55) |
(12) |
(282) |
|
Net income Group Share |
736 |
694 |
187 |
220 |
228 |
(238) |
1,828 |
|
|
Q2-23 (stated) |
|
En m€ |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
1,732 |
1,906 |
1,162 |
959 |
982 |
(66) |
6,676 |
|
Operating expenses excl. SRF |
(715) |
(1,038) |
(430) |
(554) |
(503) |
21 |
(3,218) |
|
SRF |
(0) |
2 |
2 |
6 |
(0) |
(6) |
4 |
|
Gross operating income |
1,017 |
869 |
735 |
411 |
479 |
(51) |
3,461 |
|
Cost of risk |
(0) |
(32) |
(304) |
(69) |
(127) |
(2) |
(534) |
|
Equity-accounted entities |
27 |
7 |
11 |
- |
0 |
(19) |
27 |
|
Net income on other assets |
0 |
0 |
26 |
2 |
0 |
- |
29 |
|
Income before tax |
1,045 |
844 |
468 |
345 |
353 |
(71) |
2,983 |
|
Tax |
(246) |
(174) |
(143) |
(76) |
(103) |
65 |
(677) |
|
Net income from discontinued or held-for-sale operations |
1 |
- |
0 |
- |
3 |
- |
4 |
|
Net income |
799 |
670 |
325 |
269 |
252 |
(6) |
2,309 |
|
Non controlling interests |
(123) |
(48) |
(21) |
(12) |
(55) |
(10) |
(269) |
|
Net income Group Share |
676 |
622 |
304 |
257 |
197 |
(16) |
2,040 |
|
Crédit Agricole S.A. – Results by business line, H1-24 et
H1-23 |
|
|
|
H1-24 (stated) |
|
En m€ |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
3,733 |
4,489 |
1,736 |
1,933 |
2,085 |
(374) |
13,602 |
|
Operating expenses excl. SRF |
(1,567) |
(2,501) |
(897) |
(1,193) |
(1,060) |
(71) |
(7,289) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
2,166 |
1,988 |
839 |
740 |
1,024 |
(445) |
6,312 |
|
Cost of risk |
(5) |
(5) |
(429) |
(214) |
(154) |
(16) |
(824) |
|
Equity-accounted entities |
61 |
14 |
59 |
- |
- |
(46) |
90 |
|
Net income on other assets |
(20) |
2 |
(1) |
4 |
(0) |
24 |
9 |
|
Income before tax |
2,203 |
1,999 |
468 |
530 |
870 |
(483) |
5,587 |
|
Tax |
(502) |
(482) |
(97) |
(119) |
(259) |
144 |
(1,315) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
1,701 |
1,517 |
372 |
412 |
610 |
(339) |
4,273 |
|
Non controlling interests |
(248) |
(101) |
(42) |
(18) |
(126) |
(7) |
(542) |
|
Net income Group Share |
1,453 |
1,416 |
330 |
393 |
485 |
(345) |
3,731 |
|
|
|
|
|
|
|
|
|
|
|
H1-23 (stated) |
|
En m€ |
AG |
En m€ |
AG |
En m€ |
AG |
En m€ |
AG |
|
|
|
|
|
|
|
|
|
|
Revenues |
3,478 |
3,957 |
1,834 |
1,895 |
1,951 |
(318) |
12,797 |
|
Operating expenses excl. SRF |
(1,430) |
(2,159) |
(800) |
(1,153) |
(987) |
(18) |
(6,546) |
|
SRF |
(6) |
(312) |
(29) |
(44) |
(40) |
(77) |
(509) |
|
Gross operating income |
2,042 |
1,486 |
1,005 |
698 |
924 |
(413) |
5,741 |
|
Cost of risk |
(1) |
(68) |
(463) |
(135) |
(241) |
(0) |
(908) |
|
Equity-accounted entities |
49 |
11 |
85 |
- |
1 |
(33) |
113 |
|
Net income on other assets |
0 |
5 |
25 |
2 |
0 |
- |
33 |
|
Income before tax |
2,090 |
1,433 |
652 |
566 |
684 |
(447) |
4,979 |
|
Tax |
(478) |
(358) |
(177) |
(138) |
(201) |
153 |
(1,199) |
|
Net income from discontinued or held-for-sale operations |
1 |
- |
0 |
- |
5 |
- |
6 |
|
Net income |
1,613 |
1,076 |
475 |
428 |
488 |
(293) |
3,786 |
|
Non controlling interests |
(239) |
(77) |
(44) |
(19) |
(113) |
(27) |
(520) |
|
Net income Group Share |
1,374 |
998 |
431 |
409 |
375 |
(321) |
3,266 |
Appendix 4 – Data per share
|
Crédit Agricole S.A. – Bénéfice par action, actif net par action et
RoTE |
|
(€m) |
|
Q2-2024 |
Q2-2023 |
|
H1-24 |
H1-23 |
| Net income Group
share - stated |
|
1,828 |
2,040 |
|
3,731 |
3,266 |
| - Interests on
AT1, including issuance costs, before tax |
|
(83) |
(94) |
|
(221) |
(235) |
| - Foreign
exchange impact on reimbursed AT1 |
|
- |
- |
|
(247) |
- |
| NIGS attributable
to ordinary shares - stated |
[A] |
1,745 |
1,946 |
|
3,263 |
3,031 |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
3,025 |
3,025 |
|
3,008 |
3,024 |
|
Net earnings per share - stated |
[A]/[B] |
0.58 € |
0.64 € |
|
1.08 € |
1.00 € |
| Underlying net
income Group share (NIGS) |
|
1,823 |
1,850 |
|
3,756 |
3,100 |
| Underlying NIGS
attributable to ordinary shares |
[C] |
1,740 |
1,756 |
|
3,288 |
2,865 |
|
Net earnings per share - underlying |
[C]/[B] |
0.58 € |
0.58 € |
|
1.09 € |
0.95 € |
|
(€m) |
|
|
|
|
30/06/2024 |
30/06/2023 |
| Shareholder's
equity Group share |
|
|
|
|
70,396 |
67,879 |
| - AT1
issuances |
|
|
|
|
(7,164) |
(7,235) |
| - Unrealised
gains and losses on OCI - Group share |
|
|
|
|
1,305 |
1,352 |
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
|
|
64,537 |
61,997 |
| - Goodwill &
intangibles* - Group share |
|
|
|
|
(17,775) |
(17,077) |
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
|
|
46,763 |
44,920 |
| Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,025 |
3,025 |
| NBV per share ,
after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
21.3 € |
20.5 € |
| TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
15.5 € |
14.9 € |
| * including
goodwill in the equity-accounted entities |
|
|
|
|
|
(€m) |
|
|
|
|
H1-24 |
H1-23 |
| Net income Group
share - stated |
[K] |
|
|
|
3,731 |
3,266 |
| Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
| IFRIC |
[M] |
|
|
|
-110 |
-542 |
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*2+[M] |
|
|
|
7,572 |
7,075 |
| Interests on AT1,
including issuance costs, before tax, foreign exchange impact,
annualised |
[O] |
|
|
|
-689 |
-470 |
| Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
6,884 |
6,605 |
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg *** (3) |
[J] |
|
|
|
44,710 |
42,778 |
| Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
15.4% |
15.4% |
| Underlying Net
income Group share |
[Q] |
|
|
|
3,756 |
3,100 |
| Underlying NIGS
annualised |
[R] = ([Q]-[M])*2+[M] |
|
|
|
7,622 |
6,741 |
| Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
|
|
6,934 |
6,271 |
| Underlying ROTE
adjusted(%) |
= [S] / [J] |
|
|
|
15.5% |
14.7% |
| *** including
assumption of dividend for the current exercise |
|
|
|
|
0.0% |
(1) Underlying : see appendixes for more
details on specific items
(2) Underlying ROTE calculated on the basis of an annualised
underlying net income Group share and linearised IFRIC costs over
the year
(3) Average of the NTBV not revalued attributable to ordinary
shares, calculated between 31/12/2023 and 30/06/2024 (line [E]),
restated with an assumption of dividend for current
exercises
Alternative Performance
Indicators73
NBV Net Book Value (not
revaluated)
The Net Book Value not revaluated corresponds to the shareholders’
equity Group share from which the amount of the AT1 issues, the
unrealised gains and/or losses on OCI Group share and the pay-out
assumption on annual results have been deducted.
NBV per share Net Book Value per share –
NTBV Net Tangible Book Value per share
One 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 Share
This 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 ratio
The cost/income ratio is calculated by dividing operating expenses
by revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of risk/outstandings
Calculated 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 loan
A doubtful loan is a loan in default. The debtor is considered to
be in default when at least one of the following two conditions has
been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation.
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loan
Loan which has been provisioned due to a risk of non-repayment.
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). Are eligible for the numerator of the total
MREL ratio the Group’s regulatory capital, as well as eligible
liabilities issued by the corporate centre and the
Crédit Agricole network affiliated entities, i.e. subordinated
notes, senior non-preferred debt instruments and certain senior
preferred debt instruments with residual maturities of more than
one year.
Impaired (or non-performing) loan
coverage ratio
This ratio divides the outstanding provisions by the impaired gross
customer loans.
Impaired (or non-performing) loan
ratio
This ratio divides the impaired gross customer loans on an
individual basis, before provisions, by the total gross customer
loans.
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. Agricole. The TLAC ratio
requirement was transposed into European Union law via
CRR2 and has been applicable since 27 June 2019.
The Group’s regulatory capital as well as
subordinated notes and eligible senior non-preferred debt with
residual maturities of more than one year issued by
Crédit Agricole S.A. are eligible for the numerator of
the TLAC ratio.
Net income Group share
Net 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
share
The underlying net income Group share represents the stated net
income Group share from which specific items have been deducted
(i.e., non-recurring or exceptional items) to facilitate the
understanding of the company’s actual earnings.
Net income Group share attributable to
ordinary shares
The net income Group share attributable to ordinary shares
represents the net income Group share from which the AT1 coupon has
been deducted, including issuance costs before tax.
RoTE Return on Tangible
Equity
The 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 second quarter and first half 2024 comprises this presentation
and the attached appendices and press release which are available
on the website:
https://www.credit-agricole.com/en/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 six-month
period ending 30 June 2024 have been prepared in accordance with
IFRS as adopted in the European Union and applicable at that date,
and with the applicable regulations in force. This financial
information does not constitute a set of financial statements for
an interim period as defined by IAS 34 “Interim Financial
Reporting” and has not been audited.
Note: The scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups
have not changed materially since the
Crédit Agricole S.A. 2023 Universal Registration Document
and its A.01 update (including all regulatory information about the
Crédit Agricole Group) 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.
At 30 June 2024, Indosuez Wealth Management
had completed the acquisition of Degroof Petercam and now holds 65%
of Banque Degroof Petercam alongside CLdN Cobelfret, its historical
shareholder, which will retain a 20% stake.
At 30 June 2024, Amundi had completed the
acquisition of Alpha Associates, an independent asset manager
offering multi-management investment solutions in private
assets.
Financial Agenda
6 November
2024 Publication of
the 2024 third quarter and first nine months results
05 February
2025 Publication of
the 2024 fourth quarter and full year results
30 April
2025 Publication
of the 2025 first quarter results
14 May
2025 General
Meeting
31 July
2025 Publication
of the 2025 second quarter and the first half-year results
30 October
2025 Publication
of the 2025 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Alexandre
Barat
Olivier Tassain |
+ 33 1 57 72 12
19
+ 33 1 43 23 25 41 |
alexandre.barat@credit-agricole-sa.fr
olivier.tassain@credit-agricole-sa.fr |
| Mathilde
Durand |
+ 33 1 57 72 19
43 |
mathilde.durand@credit-agricole-sa.fr |
| Bénédicte
Gouvert |
+ 33 1 49 53 43
64 |
benedicte.gouvert@ca-fnca.fr |
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
| Institutional
investors |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
| Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
| |
|
|
| Cécile
Mouton |
+ 33 1 57 72 86
79 |
cecile.mouton@credit-agricole-sa.fr |
Equity investor relations: |
|
|
Jean-Yann
Asseraf
Fethi Azzoug |
+ 33 1 57 72 23
81
+ 33 1 57 72 03 75 |
jean-yann.asseraf@credit-agricole-sa.fr
fethi.azzoug@credit-agricole-sa.fr |
| Joséphine
Brouard |
+ 33 1 43 23 48
33 |
josephine.brouard@credit-agricole-sa.fr |
| Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
| Nicolas
Ianna |
+ 33 1 43 23 55
51 |
nicolas.ianna@credit-agricole-sa.fr |
| Leila Mamou |
+ 33 1 57 72 07
93 |
leila.mamou@credit-agricole-sa.fr |
| Anna
Pigoulevski |
+ 33 1 43 23 40
59 |
anna.pigoulevski@credit-agricole-sa.fr |
| |
|
|
| |
|
|
|
Credit investor and rating agency relations: |
|
| Gwenaëlle
Lereste |
+ 33 1 57 72 57
84 |
gwenaelle.lereste@credit-agricole-sa.fr |
| Florence Quintin
de Kercadio |
+ 33 1 43 23 25
32 |
florence.quintindekercadio@credit-agricole-sa.fr |
| |
|
|
| |
|
|
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
1 Car, home, legal, all mobile phones, or personal
accident insurance
2 CA Auto Bank, automotive JVs and
automotive activities of other entities
3 Available in French, translation in
progress.
4 Low-carbon energy outstandings made up of renewable
energy produced by the clients of all
Crédit Agricole Group entities, including nuclear energy
outstandings for CACIB.
5 CACIB green asset portfolio, in line with the
eligibility criteria of the Group Green Bond Framework published in
November 2023.
6 The reorganisation of the Mobility activities of the
CA Consumer Finance Group had a non-recurring impact
in Q2 2023 on all intermediate operating totals due to the transfer
of business assets, indemnities received and paid, the accounting
treatment of the 100% consolidation of CA Auto Bank
(formerly FCA Bank) and the reorganisation of the automotive
financing activities within the
CA Consumer Finance Group (particularly the review
of application solutions).
7 See Appendixes for more details on specific
items.
8 Recorded in the second quarter of 2024, whereas it
was recorded in the fourth quarter of 2023
9 The cost of risk/outstandings (in basis points) on a
four-quarter rolling basis is calculated on the cost of risk of the
past four quarters divided by the average outstandings at the start
of each of the four quarters
10 The cost of risk/outstandings (in basis points) on
an annualised basis is calculated on the cost of risk of the
quarter multiplied by four and divided by the outstandings at the
start of the quarter
11 Average rate of loans to monthly production for
April + May
12 SAS Rue La Boétie dividend paid annually in
Q2
13 The reorganisation of the Mobility activities of
the CA Consumer Finance Group had a non-recurring
impact in Q2 2023 on all intermediate operating totals due to the
transfer of business assets, indemnities received and paid, the
accounting treatment of the 100% consolidation of
CA Auto Bank (formerly FCA Bank) and the
reorganisation of the automotive financing activities within the
CA Consumer Finance Group (particularly the review
of application solutions).
14 Underlying, excluding specific
items.
15 Scope effect of Degroof Petercam revenues:
+€49 million in the second quarter of 2024
16 Scope effect of ISB in revenues: +€107 million
in the second quarter of 2024
17 Scope effect linked to the consolidation of ALD and
LeasePlan activities in six European countries and the acquisition
of a majority stake in Hiflow in Q3-23: +€24 million in
revenues
18 Scope effect in expenses in the second quarter of
2024: ISB for -€104 million, Degroof Petercam for -€35 million,
ALD/Leaseplan in six European countries and Hiflow for -€10
million, Alpha Associates and consolidation of CATU for the
remainder.
19 Provisioning rate calculated
with outstandings in Stage 3 as denominator, and the sum of the
provisions recorded in Stages 1, 2 and 3 as numerator.
20 The cost of risk/outstandings (in basis points) on
a four-quarter rolling basis is calculated on the cost of risk of
the past four quarters divided by the average outstandings at the
start of each of the four quarters
21 The cost of risk/outstandings (in basis points) on
an annualised basis is calculated on the cost of risk of the
quarter multiplied by four and divided by the outstandings at the
start of the quarter
22 Crédit Agricole Transition & Energie will be
accounted for using the equity method from the second quarter of
2024 following the Regional Banks’ acquisition of half of Crédit
Agricole Transition & Energie’s share capital.
23
See
Appendixes for more details on specific items.
24 SRF costs amounted to -€509 million during the
first half of 2023
25 See Appendixes for details on
the calculation of the RoTE (return on tangible equity)
26 The annualised underlying net income Group share
corresponds to the annualisation of the underlying net income Group
share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC
impacts to linearise them over the year
27 Scope “Life France”
28 Property and casualty insurance premium income
includes a scope effect linked to the first consolidation of CATU
(a property and casualty insurance entity in Poland) in the second
quarter of 2024, with retroactive effect from 1 January 2024:
Impact of +0.9% on growth in property and casualty insurance
premium income (+5.4% change in premium income excluding CATU
between the second quarter of 2023 and the second quarter of 2024);
Impact of +2.0% on portfolio growth, i.e. an impact of 310,000
contracts (+3.2% growth excluding CATU between the second quarter
of 2023 and the second quarter of 2024).
29 Scope: property and casualty in
France and abroad
30 Combined ratio of P&C in France (Pacifica)
including discounting and excluding undiscounting, net of
reinsurance: (claims + operating expenses + fee and commission
income) to premium income; the ratio is calculated for the first
half of 2024. The net combined ratio excluding the effect of
discounting for the first half of 2024 is 97.3%
(-1.3 percentage point year-on-year).
31 Excl. JVs
32 Excluding assets under custody for institutional
clients
33 Amount of allocation of Contractual Service Margin
(CSM) and Risk Adjustment (RA) including funeral
guarantees
34 Amount of allocation of CSM and RA
35 Net of cost of reinsurance, excluding financial
results
36 Indosuez Wealth Management scope
37 Degroof Petercam data for June included in Wealth
management results: Revenues of €49 million and expenses of -€35
million.
38 Base effect on taxes and property of €10.5 million
in expenses in the second quarter of 2023; the impact on net income
Group share is €8.4 million.
39 Refinitiv
40 Bloomberg
41 CA Auto Bank, automotive JVs and auto
activities of other entities
42 CA Auto Bank and automotive JVs
43 Factoring activity -2.6% Q2/Q2 – Source:
Association Française des Sociétés Financières (French Association
of Financial Companies), business activity of specialised
institutions.
44 Base effect related to the reorganisation of
Mobility activities in Q2-23: +€299 million in revenues,
-€18 million in expenses, -€85 million in cost of risk,
-€12 million in equity-accounted entities, +€28 million
in RNAA, representing an increase of +€140 million in net
income Group share.
45 Q2/Q2 scope effect related to ALD and LeasePlan
activities in six European countries and the acquisition of a
majority stake in the capital of Hiflow in Q3-23: +€24 million
in revenues and -€10 million in expenses.
46 Underlying cost/income ratio.
47 Cost of risk for the last four quarters as a
proportion of the average outstandings at the beginning of the
period for the last four quarters.
48 Base effect related to the reorganisation of
Mobility activities in Q2-23: +€299 million in revenues,
-€18 million in expenses, -€85 million in cost of risk,
-€12 million in equity-accounted entities, +€28 million
in RNAA, representing an increase of +€140 million in net
income Group share.
49 H1/H1 scope effects related to the consolidation of
CAAB in Q2-23, the consolidation of ALD and LeasePlan activities in
six European countries and the acquisition of a majority stake in
the capital of Hiflow in Q3-23: +€209 million in revenues,
-€82 million in expenses and -€36 million in cost of
risk.
50 Underlying cost/income ratio.
51 Average production rate on the second quarter
2024
52 Net of POCI outstandings
53 Source: Abi Monthly Outlook, July 2024: -1.9%
June/June and -1.2% since the beginning of the year for all
loans.
54 At 30 June 2024, this scope corresponds to the
aggregation of all Group entities present in Italy: CA Italia,
CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA
Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS,
CALEF.
55 In number of branches
56 Net Promoter Score; source: Doxa survey, October
2023.
57 Assofin publication, 30/04/2024 (excluding credit
cards).
58 Assets under management Source: Assogestioni,
31/05/2024
59 Production. Source: IAMA, 30/04/2024
60 +€21 million reversal for the Cheque Image
Exchange fine in Q2-23 under “account management and payment
instruments”.
61 At 30 June 2024 this scope includes the entities
CA Italy, CA Polska, CA Egypt and CA Ukraine.
62 Over a rolling four quarter
period.
63 At 30 June 2024, this scope corresponds to the
aggregation of all Group entities present in Italy: CA Italia,
CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA
Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS,
CALEF.
64 As part of its annual resolvability assessment,
Crédit Agricole Group has chosen to waive the possibility
offered by Article 72ter(3) of the Capital Requirements Regulation
(CRR) to use senior preferred debt for compliance with its TLAC
requirements in 2024.
65 Gross amount before buy-backs and
amortisations
66 Excl. AT1 issuances
67 Gross amount before buy-backs and
amortisations
68 Excl. AT1 issuances
69 Excl. senior secured debt
70 Excl. senior secured debt
71 Excl. AT1 issuances
72 Excl. AT1 issuances
73 APMs are financial indicators not presented in the
financial statements or defined in accounting standards but used in
the context of financial communications, such as underlying net
income Group share or RoTE. They are used to facilitate the
understanding of the company’s actual performance. Each APM
indicator is matched in its definition to accounting data.
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