CREDIT AGRICOLE SA: First quarter 2023 results - Excellent results
of the "multi-universal" banking model
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EXCELLENT RESULTS OF THE
“MULTI-UNIVERSAL”
BANKING MODEL |
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CAG AND CASA STATED AND UNDERLYING DATA
Q1-2023 |
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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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€6,121m+9.6% Q1/Q1 |
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€6,153m+10.4% Q1/Q1 |
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€8,927m+0.5% Q1/Q1 |
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€8,959m+1.8% Q1/Q1 |
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Expenses |
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-€3,841m+1.9% Q1/Q1 |
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-€3,841m+2.4% Q1/Q1 |
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-€5,909m+0.6% Q1/Q1 |
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-€5,909m+0.9% Q1/Q1 |
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incl. SRF |
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-€513m-19.4% Q1/Q1 |
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-€513m-19.4% Q1/Q1 |
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-€626m-21.2% Q1/Q1 |
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-€626m-21.2% Q1/Q1 |
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Gross Operating Income |
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€2,280m+25.6% Q1/Q1 |
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€2,312m+26.8% Q1/Q1 |
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€3,018m+0.4% Q1/Q1 |
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€3,049m+3.6% Q1/Q1 |
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Cost of risk |
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-€374m -49.5% Q1/Q1 |
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-€374m-31.4% Q1/Q1 |
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-€548m-38.3% Q1/Q1 |
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-€548m-21.0% Q1/Q1 |
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Net income Group share |
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€1,226mx2.1 Q1/Q1 |
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€1,249m+61.5% Q1/Q1 |
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€1,669m+23.6% Q1/Q1 |
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€1,692m+12.6% Q1/Q1 |
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C/I ratio (excl. SRF) |
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54.4%-1.7 pp Q1/Q1 |
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54.1%-1.8 pp Q1/Q1 |
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59.2%+2.0 pp Q1/Q1 |
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59.0%+1.4 pp Q1/Q1 |
ATTRACTIVE UNIVERSAL BANKING: STRONG ACTIVITY IN ALL
BUSINESS LINES
- CAG customer
capture: +555,000 new customers in Q1
- Dynamic sales in
insurance, CIB and consumer finance
PERFORMING UNIVERSAL BANKING: RECORD
NET INCOME OF €1,249M
- Revenues +10.4%
Q1/Q1 pro-forma IFRS 17, +12.6% excluding base effect of TLTRO
special interest period
- CA Italia,
IRB excluding Italy, CACEIS and CA Indosuez revenues sustained
by net interest margin
- SFS and French
retail banking impacted by the increase in refinancing costs
- Expenses +2.4%
Q1/Q1 pro-forma IFRS 17, jaws effect +5.7 pp excluding
TLTRO and excluding SRF
- Cost/income
ratio excl. SRF 54.1%
ACTIVE UNIVERSAL BANKING: STRUCTURAL OPERATIONS IN LINE
WITH THE MTP
- Launch of Leasys
JV and 100% consolidation of CA Auto Bank in Q2-23;
+100,000 ALD/Leaseplan vehicles in H2-2023
- Entry into
exclusive negotiations with Worldline in Q2-2023 to create a major
player in merchant payment services in France
- Acquisition of
Sudeco (Property Management) by CA Immobilier in Q1-2023
SOLID UNIVERSAL BANKING: SOLID CAPITAL AND LIQUIDITY
POSITIONS
-
Crédit Agricole S.A. phased-in CET1 11.6%
(370 bps>SREP)
- CAG phased-in
CET1 17.6% (870 bps>SREP)
- LCR 162,6% and
€457bn in liquidity reserves at Crédit Agricole Group
level
- Stock of
provisions for performing loans €20.0bn, coverage ratio 83%
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Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors “The strength of our results commits us. The Group
continues to play a leading role in actively supporting the economy
and in accompanying major societal transitions locally. I would
like to thank all our customers for their trust, as well as all the
Group's employees and elected representatives, who are mobilised
every day to provide a comprehensive, local response to all their
needs.” |
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Philippe Brassac,Chief Executive Officer of
Crédit Agricole S.A. “Crédit Agricole is a
"multi-universal" bank: active in all types of markets, in all
regions, serving the greatest number of people, and organised to
provide a global response to its customers' needs under a long-term
relationship. Our naturally hyper-inclusive model by nature
allows us to regularly present excellent commercial and financial
results, as it is the case again this quarter. These results bear
witness to our commercial utility, to the extreme diversification
of our model, and of course to the remarkable commitment of all our
teams.” |
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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 57.1% of
Crédit Agricole S.A. Please See Appendixes of this press
release for details on specific items, which are restated in the
various indicators to calculate underlying net income.
Crédit Agricole Group
Group activity
The Group recorded a strong commercial activity
over the quarter across all business lines thanks to the customer
focused banking model. Gross customer capture has been dynamic. In
the first quarter of 2023, the Group recorded +555,000 million
new customers in retail banking, and the customer base continued to
grow (+145,000 customers) in line with the MTP Ambitions 2025
targets. More specifically, over the quarter, the Group recorded
+426,000 new Retail banking customers in France and +129,000
new International retail banking customers (Italy and Poland), and
the customer base also grew (+78,000 and +67,000 customers
respectively). Inflows remained stable over the quarter for all
entities, with total net inflows at Amundi of -€11.1 billion
affected by a few outflows on institutional assets with very low
margins but including positive retail inflows (excluding JV and
China) of +€4.3 billion. At CA Assurances, there were record
unit-linked inflows of +€2.4 billion and positive net inflows
of +€0.7 billion in Wealth Management (Indosuez Wealth
Management and LCL Private Banking). At constant scope (excluding
La Médicale), property and casualty insurance premium income
increased by +9% compared to March 2022 and personal protection
insurance premium income increased by +6% over the same period.
Business was also highly dynamic in corporate and investment
banking (underlying revenues up +20.9% compared to first quarter
2022). Underlying revenues in capital markets and investment
banking increased by +36.8% with excellent activity in all product
lines and particularly in the FICC business (+41.8%). Financing
activities also recorded an increase in underlying revenues of
+6.1%, driven by the performance of structured finance (+7.1%). In
Retail banking, loan production was down over the quarter in a
context of increased customer production rates, with
€35 billion in new loans at Regional Banks, LCL and
CA Italia1 (-10.6% compared with the first quarter of 2022).
However, loans production is dynamic on professionals market with
an increase, compared with the first quarter 2022, of +4.7% at
Regional Banks (professionals and corporates), +6.2% for LCL and
+25.7% for CA Italia (professionals and corporates). On home loans,
production is declining in a bearish market2. In France, new home
loans granted by the Regional Banks and LCL fell by -16.0%. At
CA Italia home loans production fell by -21.3%. The insurance
equipment rate3 was high in Retail banking at the end of March 2023
and increased compared to the first quarter of 2022, standing at
42.9% for Regional Banks (+0.5 point), 27.4% for LCL
(+0.9 point) and 17.3% for CA Italia, including Creval
(+2.2 points). Finally, Retail banking deposits were stable
over the quarter. As a result, on-balance sheet customer assets
within Regional Banks, LCL and CA Italia amounted to
€793 billion at the end of March 2023 (+0.4% compared to the
end of December 2022, of which -0.1% for Regional Banks, +2.3% for
LCL and -0.6% for CA Italia). Finally, the SFS division also
recorded a good level of activity, with CACF’s consumer finance
production up +15.8% compared to the first quarter of 2022, driven
by the dynamism of the car channel (+38.5%), and CAL&F’s
factoring production up +5.8%.
Each of the Group’s business lines posted strong
levels of activity (see Infra).
Implementation of the medium-term strategy
In the first quarter of 2023, the Group
continued to implement its Medium-Term Plan. Growth drivers were
set in motion and stay the first Group priority. Business units
continue to develop themselves with a dynamic activity this
quarter. In 2023, the Group complemented this growth with strategic
operations that will strengthen its position as a major player in
mobility in Europe, but also in property services and payment
services in France.
Firstly, on 4 April 2023,
Crédit Agricole Consumer Finance announced the
finalisation of its agreement with Stellantis, leading to the
creation of a new 50/50 Leasys JV by pooling the activities of
Leasys and Free2Move Lease, allowing Crédit Agricole to become
one of the top five European players in long-term car rental, with
a target of more than 1 million vehicles under long-term
rental by 2026; secondly, Crédit Agricole Auto Bank
was created, an entity resulting from
Crédit Agricole Consumer Finance’s 100% takeover of
FCA Bank and Drivalia (car rental and car sharing), to create a
pan-European leader in multi-brand automotive financing,
independent of any manufacturer and backed by the
Crédit Agricole Group, with a target of €10 billion
in outstanding car financing by 2026. In addition, on 23 March
2023, Crédit Agricole Consumer Finance and
Stellantis announced their intention to acquire the activities of
six European subsidiaries of ALD Automotive and LeasePlan, together
representing a fleet of more than 100,000 vehicles (and total
outstandings of €1.7 billion): the Leasys joint venture will
take over the activities of ALD in Portugal and of LeasePlan in
Luxembourg for a total of approximately 30,000 vehicles;
Crédit Agricole Auto Bank will take over the
activities of ALD in Ireland and Norway and of LeasePlan in the
Czech Republic and Finland for a total of over 70,000 vehicles. The
Crédit Agricole Auto Bank takeover will have a
neutral impact on CET1 (the RWA increase linked to the
consolidation being offset by a synthetic securitisation). On the
other hand, the total impact of the acquisition of ALD’s and
LeasePlan’s activities on CASA’s CET1 ratio in 2023 will be less
than -10 bps in 2023.
In addition, on 20 April 2023, the
Crédit Agricole Group announced that it had entered into
exclusive negotiations with Worldline in order to establish a
long-term strategic partnership in the field of payment services
for merchants in the French market. This transaction, which brings
together two major French groups, each a leader in their respective
markets, is fully in line with the strategic guidelines of the MTP
Payments 2025, in particular the objective of doubling the growth
rate of the payment services business for merchants.
Lastly, Crédit Agricole Immobilier’s
acquisition of Sudeco, a property management player (property
management, rental and technical management) specialising in
commercial real estate, announced on 14 March 2023, will allow the
Group to become the fourth largest institutional property
management player in France (in terms of gross revenues),
accelerating its strategic ambition to join the top three in the
sector by 2025. This transaction will have a negligible negative
impact on the CET1 of Crédit Agricole S.A. and the
Crédit Agricole Group.
Group results
In the first
quarter of 2023,
Crédit Agricole Group’s stated
net income Group share came to
€1,669 million, up +23.6% compared to the
first quarter of 2022.
Specific items in the
first quarter of 2023 had a negative net
effect of -€24 million on
Crédit Agricole S.A.’s net income Group
share. These include the following recurring accounting
items: recurring accounting volatility items in revenues, such as
the DVA (Debt Valuation Adjustment), the issuer spread portion of
the FVA, and secured lending for -€6 million in net income
Group share on capital markets and investment banking, and the
hedging of the loan book in the Large customers segment for
-€18 million in net income Group share.
Excluding these specific items,
Crédit Agricole Group’s underlying
net income Group share4 amounted to
€1,692 million, up +12.6% compared to the
first quarter of 2022.
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Crédit Agricole Group – Stated and underlying results, Q1-2023 and
Q1-2022 |
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€m |
Q1-23stated |
Specific items |
Q1-23underlying |
Q1-22stated |
Specific items |
Q1-22underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
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Revenues |
8,927 |
(32) |
8,959 |
8,882 |
79 |
8,802 |
+0.5% |
+1.8% |
| Operating
expenses excl. SRF |
(5,284) |
- |
(5,284) |
(5,082) |
(18) |
(5,064) |
+4.0% |
+4.3% |
| SRF |
(626) |
- |
(626) |
(794) |
- |
(794) |
(21.2%) |
(21.2%) |
|
Gross operating income |
3,018 |
(32) |
3,049 |
3,005 |
61 |
2,944 |
+0.4% |
+3.6% |
| Cost of
risk |
(548) |
- |
(548) |
(888) |
(195) |
(693) |
(38.3%) |
(21.0%) |
| Equity-accounted
entities |
108 |
- |
108 |
108 |
- |
108 |
(0.3%) |
(0.3%) |
| Net income on
other assets |
4 |
- |
4 |
13 |
- |
13 |
(68.8%) |
(68.8%) |
| Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
|
Income before tax |
2,581 |
(32) |
2,613 |
2,238 |
(134) |
2,372 |
+15.4% |
+10.2% |
| Tax |
(711) |
8 |
(719) |
(703) |
(15) |
(688) |
+1.1% |
+4.5% |
| Net income from
discont'd or held-for-sale ope. |
2 |
- |
2 |
1 |
(4) |
5 |
+29.1% |
(64.2%) |
|
Net income |
1,872 |
(24) |
1,896 |
1,536 |
(153) |
1,689 |
+21.9% |
+12.3% |
| Non controlling
interests |
(204) |
- |
(204) |
(186) |
(0) |
(185) |
+9.5% |
+9.8% |
|
Net income Group Share |
1,669 |
(24) |
1,692 |
1,350 |
(153) |
1,504 |
+23.6% |
+12.6% |
|
Cost/Income ratio excl. SRF
(%) |
59.2% |
|
59.0% |
57.2% |
|
57.5% |
+2.0 pp |
+1.4 pp |
In the first quarter of 2023, underlying
revenues amounted to €8,959 million, up +1.8%
compared to the first quarter of 2022, thanks to sustained activity
in all business lines, and due to the positive impact of the rise
in rates on the revenues of International retail banking in
particular, and despite the rise in interest rates impacting Retail
banking and consumer finance in particular. Underlying
operating expenses excluding the Single Resolution Fund
(SRF) rose by +4.3% in the first quarter of 2023 to
€5,284 million, due in particular to the support of the
development of the business lines and IT expenses, but also to the
increase in compensation in an inflationary context. Overall, the
Group’s underlying cost/income ratio excluding SRF
recorded an increase of +1.4 percentage points to 59.0% in the
first quarter of 2023. The underlying gross
operating income was up +3.6% compared to first quarter
2022, reaching €3,049 million. Under IFRS 17 implementation,
the impact of internal margin reclassified on Group revenues is
equal to -€746 million and represent an improvement of -€746
million on expenses on first quarter 2023. This impact is accounted
for in Corporate Center.
The underlying cost of credit
risk improved, standing at -€548 million, including
-€67 million in cost of risk on performing loans (stage 1 and
2), -€464 million in cost of proven risk (stage 3), and
-€16 million in other risks, i.e. a decrease of -21.0%
compared to the first quarter of 2022. The provisioning cost
related to the war in Ukraine amounted to -€56 million in the
first quarter of 2023, including -€46 million on performing
loans5 and -€10 million for proven risk. Excluding this
effect, provisioning remained limited on performing loans at
-€21 million and amounted to -€454 million for proven
risk. The provisioning levels were determined by taking into
account several weighted economic scenarios, as in previous
quarters, and by applying adjustments on sensitive portfolios. The
weighted economic scenarios for the first quarter have not been
updated, with a favourable scenario (French GDP at +1.2% in 2023,
+2.1% in 2024) and an unfavourable scenario (French GDP at -1.6% in
2023 and +2.0% in 2024). The
cost of credit risk on outstandings6
over a rolling four-quarter period stood at
23 basis points, which is in line with the 25 basis
point assumption of the Medium-Term Plan. It stands at 19
basis points on a quarterly annualised basis7.
Underlying pre-tax income stood at
€2,613 million, a
year-on-year increase of +10.2%. The underlying pre-tax income
included the contribution from equity-accounted entities for
€108 million (stable at -0.3%) and net income on other assets,
which came to €4 million this quarter. The
underlying tax charge was up
+4.5% over the period. Underlying net income before
non-controlling interests was up +12.3% to €1,896 million.
Non-controlling interests rose +9.8%. Lastly, underlying
net income Group share was €1,692 million,
+12.6% higher than in the first quarter of 2022.
Regional Banks
The Regional Banks’ activity
was strong in Q1-23. Gross customer capture
increased by +321,000 new customers and the
customer base grew by +54,000 new customers since the
beginning of the year. The share of customers using digital
tools increased to 74.9%8 (+1.9 percentage points
compared to end-March 2022) and the number of online signatures9
increased by +60% between the first quarter of 2022 and the first
quarter of 2023.
Loan production fell this
quarter by -6.2% compared to first quarter 2022. The decline is
sharp in home loans (-14.3% compared to the first quarter of 2022),
but this decline remains lower than that of the market10.
Production remains dynamic in specialised markets11 (+4.7% compared
to the first quarter of 2022). Furthermore, since the third quarter
of 2022, the average customer loan production rate12 has been
higher than the average loan outstandings rate. The home loan
production rate13 is up14 compared to the fourth quarter of 2022,
and the average rate for 20-25 year lending reached 3.0% in early
April 2023. Loan outstandings reached
€637 billion at the end of March 2023, up +5.5% compared to
the end of March 2022 (+1.0% compared to the end of December 2022)
driven by the corporate market (+8.9% compared to the fourth
quarter of 2022).
Total customer assets rose by
+2.6% year on year to €861 billion at end-March 2023. This
growth was driven by on-balance sheet deposits, which reached
€576 billion at end-March 2023, up +3.1% compared to end-March
2022 (including +11.4% for passbook accounts and +37% for term
deposits). Off-balance sheet customer assets reached
€285 billion, up +1.6% over the quarter.
In the first quarter of 2023,
the Regional Banks’ stated revenues stood at
€3,333 million, down -9.6% compared with the first quarter of
2022, due to a decline in the intermediation margin and an increase
in refinancing costs. Portfolio revenues are up, benefiting from
positive market effects. Fee and commission income is up by +1.6%.
Operating expenses excluding SRF increased +4.9%,
largely due to the increase in employee expenses. Underlying
gross operating income fell by -35.2%. The
cost of risk increased by +18.3% compared to the first
quarter of 2022 to -€172 million. It is composed of a
+€8 million reversal on performing loans and a
-€180 million addition on Non-Performing Loans.
The stated net income Group
share of the Regional Banks was €420 million in the
first quarter of 2023, down -45.5% compared to the first quarter of
2022. The underlying net income Group share of the Regional Banks
was €420 million, down -41.6% compared to the first quarter of
2022.
Specific items in the
first quarter of 2023 had no impact on the
Regional Banks’ stated net income Group share. In the first
quarter of 2022, specific items had a positive impact of
+€52 million on the Regional Banks’ stated net income Group
share (positive impact of the provision for home purchase savings
of +€70 million).
The Regional Banks’ consolidated net
income, including the SAS Rue La Boétie dividend15,
amounted to €435 million in the first quarter of 2023, down
-44.1% compared to the first quarter of 2022.
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of
Directors, chaired by Dominique Lefebvre, met on 9 May 2023 to
examine the financial statements for the first quarter of 2023.
Résultats consolidés de Crédit Agricole S.A. au T1-2023 et au
T1-2022
|
€m |
Q1-23stated |
Specific items |
Q1-23underlying |
Q1-22stated |
Specific items |
Q1-22underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
6,121 |
(32) |
6,153 |
5,584 |
10 |
5,575 |
+9.6% |
+10.4% |
| Operating
expenses excl.SRF |
(3,328) |
- |
(3,328) |
(3,133) |
(18) |
(3,114) |
+6.2% |
+6.9% |
| SRF |
(513) |
- |
(513) |
(636) |
- |
(636) |
(19.4%) |
(19.4%) |
| Gross
operating income |
2,280 |
(32) |
2,312 |
1,815 |
(9) |
1,824 |
+25.6% |
+26.8% |
| Cost of risk |
(374) |
- |
(374) |
(740) |
(195) |
(545) |
(49.5%) |
(31.4%) |
| Equity-accounted
entities |
86 |
- |
86 |
95 |
- |
95 |
(9.8%) |
(9.8%) |
| Net income on
other assets |
4 |
- |
4 |
10 |
- |
10 |
(61.0%) |
(61.0%) |
| Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
1,996 |
(32) |
2,028 |
1,180 |
(204) |
1,383 |
+69.2% |
+46.6% |
| Tax |
(521) |
8 |
(530) |
(401) |
3 |
(404) |
+30.1% |
+31.2% |
| Net income from
discont'd or held-for-sale ope. |
2 |
- |
2 |
1 |
(4) |
5 |
n.m. |
n.m. |
| Net
income |
1,476 |
(24) |
1,500 |
780 |
(205) |
985 |
+89.2% |
+52.3% |
| Non controlling
interests |
(250) |
1 |
(251) |
(209) |
0 |
(209) |
+19.6% |
+19.7% |
| Net
income Group Share |
1,226 |
(23) |
1,249 |
571 |
(204) |
776 |
x 2.1 |
+61.1% |
| Earnings
per share (€) |
0.36 |
(0.01) |
0.37 |
0.15 |
(0.07) |
0.22 |
x 2.4 |
+69.6% |
|
Cost/Income ratio excl. SRF (%) |
54.4% |
|
54.1% |
56.1% |
|
55.9% |
-1.7 pp |
-1.8 pp |
| Net
income Group Share excl. SRF |
1,680 |
(23) |
1,703 |
1,137 |
(204) |
1,341 |
+47.8% |
+27.0% |
In the first quarter of
2023, Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,226 million, a 2.1-fold increase compared
with the first quarter of 2022.
Specific items for this quarter
had a cumulative impact of -€23 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 -€6 million in net income Group share
on capital markets and investment banking, and the hedging of the
loan book in the Large customers segment for -€17 million in
net income Group share.
Excluding specific items,
underlying net income Group share16 stood at
€1,249 million in first quarter 2023, a
+61.1% rise over first quarter 2022.
In the first quarter 2023, underlying
revenues reached at €6,153 million, up sharply by
+10.4% compared to first quarter 2022. This growth was driven by
the dynamism of the Asset Gathering (+11.3%) and Large customers
(+19.9%) divisions, while Retail banking and the SFS division were
penalised by rising interest rates.
Underlying operating expenses
totalled €3,841 million in first quarter 2023, an increase of
+2.4% compared to first quarter 2022. Excluding
SRF, it totalled €3,328 million in first
quarter 2023, an increase of €214 million, or +6.9% (and +6.3%
for the expenses of the business lines, excluding Corporate
Centre). The jaws effect was positive by +3.5 percentage
points. Stated operating expenses (excluding SRF) up by +6.2%
(+€195 million), explained by the increase of employee expenses of
+€77 million especially for Asset Management, Large Customers
divisions and LCL, and a +€97 million provision for variable
compensation and bonuses (particularly in Corporate and Investment
Banking).
The underlying cost/income ratio
excluding SRF in first quarter 2023 thus stood at 54.1%,
an improvement of -1.8 percentage points compared to
first quarter 2022.
Gross underlying operating
income for first quarter 2023 totalled
€2,312 million, up +26.8% and +28.3% for the business lines
excluding the Corporate Centre.
As at 31 March 2023, 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 (28% of gross outstandings) and
corporates (45% of Crédit Agricole S.A. gross
outstandings). The Non Performing Loans ratio remained stable and
low at 2.7%. The coverage ratio17 was high at 70.8%, up
+0.8 percentage points over the quarter. Loan loss
reserves amounted to €9.4 billion for
Crédit Agricole S.A., relatively unchanged (+0.2%)
compared to end December 2022. Of those loan loss reserves, 36%
were for performing loan provisioning. Loan loss reserves for
performing loans are higher by €1.4 billion compared with the
fourth quarter of 2019.
The underlying cost of risk
shows a net addition of -€374 million, i.e. an improvement of
31.4% (-€171 million) compared to the first quarter of 2022,
which amounted to -€545 million and was characterised in
particular by a provision of -€389 million linked to the war
in Ukraine. In the first quarter of 2023, the expense of
-€374 million consisted of the provisioning for performing
loans (Stages 1 and 2) for -€75 million (versus
-€356 million in first quarter 2022) the provisioning for
proven risks (Stage 3) for -€284 million (versus
-€161 million in first quarter 2022), and -€15 million in
other corresponding items. Excluding the provisioning of
-€56 million relating to the war in Ukraine (of which
-€46 million on performing loans18 and -€10 million for
proven risk), provisioning remained limited in the first quarter of
2023, i.e. -€29 million on performing loans and
-€274 million for proven risk. In first quarter 2023, the cost
of risk relative to outstandings over a rolling four-quarter
basis19 was 28 basis points, and was 30 basis
points on an annualised quarterly basis20.
The underlying contribution of the
equity-accounted entities stood at
€86 million in first quarter 2023, down -9.8% from first
quarter 2022. Net income on other assets stood at
€4 million in first quarter 2023, down -€6 million
compared to first quarter 2022.
Underlying
income21 before tax,
discontinued operations and non-controlling interests was up +46.6%
to €2,028 million. The underlying effective tax
rate stood at 27.3% (-4.1 percentage points compared
to first quarter 2022), while the underlying tax charge was up
by +31.2% to -€530 million. Net income on discontinued
operations came in at +€2 million, versus +€5 million in
first quarter 2022. Underlying net income before
non-controlling interests was therefore up +52.3% to
€1,500 million. Non-controlling interests
amounted to -€251 million in first quarter 2023, up
+19.7%.
Underlying
net income Group share stood at
€1,249 million, up by +61.1% compared to first quarter
2022.
Underlying earnings per share
in first quarter 2023 reached
€0.37, increasing by +78.8%
compared to first quarter 2022.
Underlying RoTE22, which is
calculated on the basis of an annualised underlying net income
Group share23 and IFRIC charges linearised over the year, net of
annualised Additional Tier 1 coupons (return on equity
Group share excluding intangibles) and restated for certain
volatile items recognised in equity (including unrealised gains
and/or losses), reached 14.4% in
first quarter 2023, +1.8 percentage point
compared to 2022.
Analysis of the activity and the results of
Crédit Agricole S.A.’s divisions and business
lines
Activity of the Asset Gathering division
In the first quarter of 2023, assets under
management in the Asset Gathering (AG) division stood at
€2,457 billion, up +1.7% compared to the end of December 2022
thanks to a positive market effect. Net inflows were negative this
quarter at -€9.7 billion due to an outflow of
-€11.1 billion from Amundi (including -€11.7 billion of
very low-margin institutional assets), and despite positive net
inflows in Insurance and Wealth management. Over one year, assets
under management fell by -3.1%, due to a negative market
effect.
Insurance activity
(Crédit Agricole Assurance) reached a record
level in the first quarter of 2023, with total premium income of
€11.7 billion at the end of March, up +4.3% compared to March
2022 (+7% at constant scope, excluding La Médicale).
In Savings/Retirement, activity
benefited from market recovery and good commercial momentum,
particularly in unit-linked contracts, with gross inflows reaching
€3.8 billion, up 18.9% year-on-year. Gross inflows reached a
record level this quarter at €8.2 billion, with a record
unit-linked share of 45.8% (+4.8 percentage points compared to
the first quarter of 2022 and +1.4 percentage points compared
to the fourth quarter of 2022). Net inflows reached
+€0.7 billion this quarter, with positive net inflows from
unit-linked contracts (+€2.4 billion) offsetting the decline
in inflows from euro funds (-€1.7 billion).
Assets (savings, retirement and
death and disability) stood at €324.6 billion, up slightly
over the year (+€2.3 billion, i.e. +0.7%). Unit-linked
contracts accounted for 27.2% of assets, up +1.6 percentage
points compared to December 2022, and +1.0 percentage point
over one year.
Property and casualty insurance
activity was dynamic, with premium income of €2.2 billion at
the end of March 2023, up +5.4% compared to March 2022 (+9.1% at
constant scope, excluding La Médicale). At the end of March 2023,
the portfolio of property and casualty policies totalled nearly
15.5 million24, a +1.0% increase over one year (+3.7% at
constant scope, excluding La Médicale). The equipment of individual
customers in the banking networks of
Crédit Agricole Group increased compared to the end of
March 2022 for all networks: 42.9%, or +0.5 percentage point
for Regional Banks, 27.4%, or +0.9 percentage point for LCL,
and 17.3% for CA Italia including Creval’s customer base, or
+2.2 percentage points. Worthy of note this quarter is
the excellent momentum of crop insurance revenues (+75% Q1/Q1), and
success in new home insurance offer for young renters (+30% Q1/Q1
in new businesses on targeted clients). The combined ratio stood at
97.0%, improving -0.7 percentage point year-on-year, due to
the lower claims in the first quarter.
In death & disability/creditor/group
insurance, premium income for the first quarter of 2023
stood at €1.2 billion, down -10% from the first quarter of
2022, in line with the disposal of La Médicale in 2022. At constant
scope, premium income increased by +6.3%, with a positive effect on
stock resulting in increased creditor insurance premium
income25.
Asset management (Amundi)
posted a good level of inflows in the first quarter of 2023 in
Retail (excluding JVs and China) and in JVs in India and Korea.
However, overall inflows were affected by outflows from low-margin
institutional assets. They stood at a total of -€11.1 billion
in the first quarter of 2023.
Assets under management reached
€1,934 billion at the end of March 2023, up +1.6% compared to
31 December 2022. Over one year, outstandings fell by -4.3%
compared to 31 March 2022, mainly due to a negative market
effect.
Retail segment
recorded satisfactory activity, at +€4.3 billion excluding the
Chinese subsidiary Amundi BOC WM and excluding JVs. As in 2022,
inflows were mainly in MLT assets (+€4.2 billion), driven by
all networks (French Networks, International Networks and
Third-Party Distribution), and thanks to continued inflows in
offerings adapted to the market context (structured products and
Buy & Watch bonds).
The Institutional segment
recorded an outflow of -€11.7 billion in the first quarter of
2023, which was concentrated in a few insurance and institutional
mandates with very low margins, in particular a sovereign client in
the Middle East who left an index-based mandate after good
performance.
Over the quarter, Asian JV
activity recorded a -€0.8 billion outflow due to an outflow of
medium- to long-term assets from the Chinese management market and
continued institutional outflows for the Chinese JV ABC-CA.
Excluding this, JV inflows were very satisfactory in India
(+€2.8 billion) and Korea (+€1.6 billion), which continue
to enjoy a very good level of activity, particularly in MLT
assets.
Amundi Technology continued its
development by acquiring four new customers during the quarter,
including three in Asia, and with revenues of €13 million in
the first quarter, up +35% compared to the first quarter of
2022.
In wealth
management26, total assets under
management (CA Indosuez Wealth Management and LCL Private
Banking) amounted to €198.3 billion at the end of March 2023
(including €133.1 billion for Indosuez Wealth Management), and
were up compared to the end of December 2022 (+€8.2 million,
+4.6%), due to a positive market effect. Inflows were positive in
wealth management at +€0.7 billion, with sustained commercial
activity in structured products at Indosuez.
Results of the Asset Gathering division
The 2023 data for the Insurance business line,
and therefore the data for the Asset management and Savings
business line, are compared with 2022 proforma IFRS 17
data.
In the first quarter of 2023, AG generated
revenues of €1,746 million, up +11.3%
compared to the first quarter of 2022. The increase is explained by
a very good level of revenues in insurance and wealth management
activities. Costs excluding SRF increased +2.5%. Thus, the
cost/income ratio excluding SRF stood at 41.0%, down
-3.5 percentage points compared to the first quarter of
2022. Gross operating income stood at €1,024 million, up
+18.6% compared to the first quarter of 2022. Taxes stood at
€232 million, a +26.5% increase. The net income Group
share of AG stood at €698 million, up +20.7% compared
to the first quarter of 2022. The decline in asset management
income (-5.9%) was more than offset by the increase in insurance
(+32.5%) and wealth management (+69.7%) income.
In the first quarter of 2023, AG contributed 45%
to the underlying net income Group share of the
Crédit Agricole S.A. business lines (excluding the
Corporate Centre division) and 27% to underlying revenues excluding
the Corporate Centre.
As at 31 March 2023, equity allocated to the
division amounted to €12.0 billion, including
€10.3 billion for Insurance, €1.2 billion for Asset
management, and €0.5 billion for Wealth management. The
division’s risk weighted assets amounted to €47.9 billion,
including €29.5 billion for Insurance, €12.8 billion for
Asset management and €5.6 billion for Wealth management.
The underlying
RoNE (return on normalised equity) stood at 26.6%
for the first quarter of 2023.
Insurance results
As announced in the fourth quarter of 2022, the
transition to IFRS 17 for the insurance business from 1
January 2023 has a limited impact on results. The decline in the
cost/income ratio announced in the 2025 Medium-Term Plan, i.e.
lower than 15% for Crédit Agricole Assurances, is
confirmed.
In the first quarter of 2023, insurance
revenues reached €711 million, up +32.5%
compared to the first quarter of 2022 (proforma for the transition
to IFRS 17), due to a base effect linked to negative market
conditions in the first quarter of 2022, increased business in all
activities and particularly in unit-linked savings. Revenues this
quarter consisted of €621 million in structural easing from
CSM and RA (i.e. 87% of the total) and €83 million in income
from property and casualty insurance27 and reinsurance (i.e. 12% of
the total). Costs excluding SRF were up +8.9%. The latter
correspond solely to so-called “non-attributable” expenses. The
total expense base increased by +7% over the period, of which
€164 million were attributable and deducted from revenues, and
€82 million were non-attributable. This increase is mainly due
to an inflationary effect on employee expenses and continued IT
investments. Gross operating income stood at
€630 million, a sharp increase of +36.3% compared to the first
quarter of 2022. The cost/income ratio excluding SRF stood at
11.5%, down -2.5 percentage points compared to the same
period in 2022 (proforma IFRS 17) and in line with the 15%
target defined in the MTP after applying the IFRS 17 reform.
The tax charge stood at -€138 million, up sharply from
-€85 million in the first quarter of 2022, in a context of
increased results and rates (reduced rate in the first quarter of
2022). As a result, the net income Group share was
€474 million, up +32.5% compared to the first quarter of
2022.
The “Contractual Service Margin” or CSM28
increased in the first quarter as a result of new business, which
exceeded the quarter’s CSM easing, and the positive impact of the
market environment on inventory valuation.
Insurance contributed 31% to the underlying net
income Group share of the Crédit Agricole S.A. core
businesses (excluding the Corporate Centre division) at the end of
March 2023, and 11% to their underlying revenues.
Asset management results
In first quarter 2023,
revenues amounted to €773 million. This
figure was relatively unchanged from fourth quarter 2022 and down
-5.0% compared to first quarter 2022, primarily due to a base
effect related to last year’s performance fee and commission income
level. Net management fee and commission income held up well,
dropping just -3.9% from first quarter 2022, despite a -5.9%
decline in average assets over the period. Operating
expenses amounted to €430 million, down -1.5% thanks
to productivity gains and Lyxor synergies, and despite continuing
investments, unfavourable change effect and high inflation. This
was despite ongoing investment and an unfavourable foreign exchange
impact and high inflation. As a result, the cost/income
ratio excluding SRF was 55.7%. Gross operating
income was down -8.8% compared to first quarter 2022. The
contribution from equity-accounted entities, comprising the
contribution from the Amundi joint ventures, stood at
€22 million, up +11.2% from first quarter 2022, while the tax
charge amounted to -€83 million, down -10.1%. Lastly,
net income Group share decreased by -5.9% to
€187 million.
Asset Management contributed 12% to the
underlying net income Group share of the
Crédit Agricole S.A. business lines (excluding the
Corporate Centre division) at the end of March 2023, and 12%
to their underlying revenues.
At 31 March 2023, equity allocated to Asset
Management amounted to €1.2 billion, while risk weighted
assets totalled €12.8 billion.
Wealth management
results29
Revenues from wealth management
totalled €261 million in first quarter 2023, an increase of
+19.7% over first quarter 2022, driven firstly by an increase in
business and secondly by higher interest rates, which had a very
positive impact on deposit margins. Costs excluding
SRF amounted to €203 million, with a contained
increase of +9.3% primarily due to salary increases in a context of
inflation. Jaws were particularly positive this
quarter at +10.4 percentage points while the
cost/income ratio decreased by
-7.4 percentage points to 77.8% in first quarter 2023. Gross
operating income, excluding SRF, rose by +88.6% to
€55 million, a record high. Net income Group
share amounted to €37 million, up +69.7% compared to
first quarter 2022.
Wealth Management contributed 2% of the
underlying net income Group share of
Crédit Agricole S.A.’s business lines (excluding the
Corporate Centre division) at the end of March 2023, and 4% to
their underlying revenues.
At 31 March 2023, equity allocated to Wealth
management was €0.5 billion and risk weighted assets totalled
€5.6 billion.
Activity of the Large Customers division
Corporate and Investment banking
(CIB) as a whole posted a record performance for the first
quarter of 2023. Asset servicing recorded strong
business during the period, benefiting from the interest rate
environment.
CIB first-quarter underlying revenues rose
sharply to €1,723 million, an increase of +20.9% from first
quarter 2022. This growth was driven by the very strong performance
of capital markets and investment banking at €941 million,
which was up +36.8% versus first quarter 2022. All product lines
recorded excellent commercial activity. FICC underlying revenues
rose by +41.8% over the period, driven by the recovery of the
primary credit market and the performance of hedging products.
Investment banking business held steady. Underlying revenues from
financing activities were up +6.1% compared to first quarter 2022
to stand at €782 million. This was mainly due to the strong
performance of structured finance (+7.1% versus first quarter
2022), especially in shipping, to the continued development of
commercial banking driven by International Trade & Transaction
Banking activities (particularly cash management), and to the
development of the Telecom business in Corporate Leveraged Finance.
Note that there was a slowdown in leveraged finance.
Financing activities thus confirmed its position
as leader in syndicated loans (#1 in France30 and #1 in EMEA30) and
ranked #5 in project finance loans worldwide.30
Crédit Agricole CIB reaffirmed its leading
positions in bond issues, maintaining its position as #3
in All bonds in EUR Worldwide30 CACIB also ranked #4 in
Green, Social & Sustainable bonds in EUR.31 Average regulatory
VaR stood at €15.9 million in first quarter 2023, down from
fourth quarter 2022 (€19.1 million), reflecting the lower
levels of market volatility since the end of 2022. This compares to
€8.7 million in first quarter 2022, volatility rose sharply
following the outbreak of the war in Ukraine. As a reminder, it was
announced in fourth quarter 2022 that strategic transformations
continued in the asset servicing business line
(CACEIS). Firstly, the signature of a binding agreement (SPA) for
CACEIS to acquire RBC’s investor services activities in Europe. The
transaction will have a negative impact of less than -10 basis
points on the CET1 of Crédit Agricole S.A. and
Crédit Agricole Group32 at the closing date planned for third
quarter 2023. Secondly, the creation on 1 January 2023 of Uptevia,
a 50/50 joint venture combining the issuer services business33 of
CACEIS and BNP Paribas. This new structure will be consolidated
using the equity-accounted method from first quarter 2023.
Assets recovered in first quarter 2023 as a
result of brisk customer business and a rally in the markets.
Assets under custody (AuC) rose by +2.7% at
end-March 2023 compared to end-December 2022 (down -3.4% from
end-March 2022), to reach €4,201 billion. Assets under
administration (AuA) were up +3.0% this quarter (-3.2%
year-on-year), to €2,216 billion at end-March 2023.
Results of the Large Customers division
In first quarter 2023,
stated revenues of the Large customers division
amounted to €2,051 million, up +19.1% compared to first
quarter 2022, buoyed by an excellent performance in the Corporate
and Investment banking activities and Asset servicing business
lines. The division’s specific items this quarter had an impact of
-€32 million on financing activities and comprised the DVA
(the issuer spread portion of the FVA, and secured lending)
amounting to -€8 million, and loan portfolio hedging totalling
-€24 million. Operating expenses excluding
SRF for the quarter rose year-on-year (+15.9%), mainly as
a result of the inflation effect on payroll and of IT investments
to keep pace with development. The SRF fell
sharply during the period, by -28.9%. The jaws excluding SRF
remained largely positive for the division at +3.2 percentage
points. Specifically, the division’s gross operating
income rose sharply to €616 million, almost double
what it was in first quarter 2022. The division recorded an overall
net addition for cost of risk of -€36 million in first quarter
2023, compared to an addition of -€278 million in first
quarter 2022, which included -€22 million in provisions
related to the war in Ukraine. Stated profit before tax totalled
€589 million, a substantial rise during the period (x15.4).
The tax charge was -€183 million. Lastly, stated net
income Group share reached €376 million in first
quarter 2023, compared with stated income of
-€43 million in first quarter 2022. Underlying net income
Group share came to €399 million in first quarter 2023, versus
-€33 million in first quarter 2022.
The business line contributed 26% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end-March 2023 and 33% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2023, the equity
allocated to the division was €12.6 billion,
while its risk weighted assets were
€132.9 billion.
Underlying RoNE (Return on
Normalised Equity) stood at 18.2% at end-March 2023.
Corporate and Investment banking
results
In first quarter 2023,
Corporate and Investment banking stated revenues
reached a record €1,691 million, up +19.9% from first
quarter 2022, driven by favourable results in all its business
lines. After restatement for specific items (DVA – the issue spread
portion of the FVA and secured lending – amounting to
-€8 million and loan portfolio hedging totalling
-€24 million), underlying revenues stood at
€1,723 million, an increase of +20.9% over first quarter 2022.
Operating expenses excluding SRF
were up +19.0% to -€884 million, especially staff costs (new
hires in 2022 and adjustment of variable compensation related to
high levels of business) and investment in IT to keep pace with
development. The SRF fell by -29.6% during the period. The jaws
excluding SRF was positive and amounted to +0.9 percentage
points for the period. Gross operating income excluding SRF
rose sharply by +20.9% compared to first quarter 2022,
taking it to a high level of €807 million. The cost/income
ratio excluding SRF was 52.3%, an improvement of
+0.4 percentage points for the period. The cost
of risk recorded a net provision of -€36 million,
compared to a provision of -€279 million in first quarter
2022, which included provisions related to the war in Ukraine
totalling -€389 million. Lastly, profit
before tax in first quarter 2023 stood at
€502 million, versus €6 million one year earlier. The tax
charge stood at -€162 million. All in all, stated net
income Group share for first quarter 2023 stood at a
record level of €332 million.
Risk weighted assets at end-March
2023 fell sharply by -€6.7 billion compared to
end-December 2022, to reach €123.5 billion. This was due to
lower market RWAs (positive change in VaR and SVaR indicators
mainly), a one-off decline in financing activity RWAs, and positive
rating and exchange rate impacts.
Asset servicing results
In first quarter 2023, asset servicing
revenues were up sharply by +15.4% compared to
first quarter 2022 (+17.7% when adjusted for Uptevia, which
contributed €6 million in the first quarter of 2022), to stand
at €360 million. This increase was mainly due to the good
performance of the net interest margin, which doubled over the
period as a result of cash management activity, which itself
benefited from the return of positive interest rates and offset the
adverse market effects on assets. Operating
expenses excluding SRF rose by +5.5% to -€237 million
(+8.6% when adjusted for Uptevia, which contributed
-€6 million in the first quarter of 2022). This figure
reflects the impact of inflation on payroll and includes
-€3 million in integration costs for the acquisition of RBC SS
Europe. As a result, gross operating income was up
sharply in first quarter 2023 to €79 million (x2.7). The
quarter also recorded €4 million in income from
equity-accounted entities. This was the result of the strong
performance by the Latin-American entities and now includes the
contribution from Uptevia. Net income thus
totalled €66 million, triple what it was in the first quarter
of 2022. After the €21 million share of non-controlling
interests, the business line’s contribution to net income
Group share totalled €44 million in first quarter
2023, which is also triple what it was one year earlier.
Specialised financial services activity
In first quarter 2023, the
commercial production of
Crédit Agricole Consumer Finance (CACF) continued to
show strong momentum at €13 billion, an increase of +15.8%
over first quarter 2022. It was driven by particularly brisk
business in the Automotive channel (+38.5%). At end-March 2023,
CACF’s total outstandings stood at €105.5 billion, a
year-on-year rise of +12.3%.
Crédit Agricole Leasing and Factoring
(CAL&F)’s commercial production in leasing
also performed well during the first quarter 2023 with a
year-on-year increase of +5.8%. Factored revenues for the quarter
jumped to €29.3 billion, a rise of +11.9%, largely due to the
ramp-up of the pan-European platform. Lastly, the financed quota
also rose in the first quarter to 68.8% (+8.8 points from first
quarter 2022). By contrast, leasing production
fell in first quarter 2023 by -18.3% due to a base effect, the
first quarter of 2022 having seen the start-up of several
large-scale operations. Nevertheless, leasing outstandings rose to
€17.8 billion at end-March 2023 (of which €14.5 billion
in France and €3.4 billion abroad), which was a year-on-year
increase of +7.5%.
Key developments for the business line since the
start of the year include the continued implementation of the
agreement between CACF and Stellantis, which will go into effect in
the second quarter of 2023 and result in the formation of the
Leasys joint venture, owned 50/50 with Stellantis, Leasys being the
leader in long-term car rental in Europe; and the acquisition of
100% of CA Auto Bank (formerly FCA Bank) and Drivalia (car
rental and car sharing). CACF also announced its intention to
acquire, with Stellantis, the activities of ALD and LeasePlan in
six European countries representing a total fleet of more than
100,000 vehicles (30,000 taken over by Leasys and 70,000 by
CA Auto Bank) and total outstandings of approximately
€1.7 billion.34
Specialised financial services’ results
Revenues of Specialised financial services were
€672 million in first quarter 2023, down -2.3% compared to
first quarter 2022. This was due to a drop in revenues at CACF and
CAL&F in the consumer finance and leasing segments as margins
continued to shrink, despite higher loan production at CACF and
higher factored revenues at CALF. Underlying expenses excluding SRF
totalled -€371 million, up slightly by +1.2%. Gross
operating income fell year-on-year by -5.7%, while the
cost/income ratio excluding SRF rose slightly to
55.2% (+1.9 percentage points). Cost of risk
was up +9% compared to fourth quarter 2022 but remained contained.
Net income Group share amounted to €127 million, a decline of
-22.3%.
The business line contributed 8% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) in the first quarter of 2023 and 10% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2023, the equity
allocated to the division was €5.7 billion,
while its risk weighted assets were
€60.5 billion.
Underlying RoNE (Return on
Normalised Equity) stood at 10.8% in first quarter 2023.
Consumer finance results
CACF’s underlying revenues were
€510 million in first quarter 2023, down compared to the same
period in 2022 (-3.3%), as margins continued to shrink (gradual
rise in customer rates but continued rise in refinancing costs).
This was despite an increase in loan production. Expenses excluding
SRF showed little change from first quarter 2022, coming in at
€277 million. Gross operating income fell by -6.9% to
€217 million, while the cost/income ratio excluding SRF stood
at 54.3%, a slight rise from first quarter 2022 of
+1.8 percentage points. The underlying cost of risk rose by
+25.3% to -€147 million, mostly due to write-offs during the
quarter, but with, in parallel, the ongoing implementation of
tightened lending standards, particularly in France and Italy. The
cost of risk on outstandings was thus 145 basis points35
for the quarter. The Non Performing Loan ratio was 4.9%, down
-0.1 points compared to end-December 2022, while the coverage
ratio was 85%, down -1.3 percentage points compared to that
same period. The contribution of equity-accounted entities totalled
€74 million (-7.5%), a decline caused by a lower contribution
from GAC Sofinco due to an unfavourable euro/yuan foreign exchange
impact. The tax charge amounted to -€22 million in first
quarter 2023, down -42.8%. Net income Group share totalled
€97 million in first quarter 2023, a drop of -27.0%.
Leasing & Factoring
results
Revenues amounted to
€162 million, showing little change from first quarter 2022
(+0.9%) due to higher factored revenues but increased financing
costs on leasing. Expenses excluding SRF rose moderately by
+€4 million (+4.8%), an increase that was primarily
concentrated outside France and caused by increased payroll in
Poland and strong business momentum in Germany. The
cost/income ratio excluding SRF was 57.9%, an
improvement of +2.2 percentage points compared to first
quarter 2022. Gross operating income totalled
€53 million, relatively unchanged from
first half 2022 (-0.4%). Cost of risk
remained low at €12 million, while net income Group
share stood at €30 million, a slight decline of
€1 million from first quarter 2022 (-2.1%).
Crédit Agricole S.A. Retail Banking
activity
In Crédit Agricole S.A.’s Retail
banking business, loan production lost momentum during the quarter
amid rising interest rates, but customer capture continued at a
steady pace, and the number of customers taking out insurance
policies is high.
In first quarter 2023, gross
customer capture stood at 100,200 new customers and net customer
capture came in at 23,300 customers. The equipment rate for car,
multi-risk home, health, legal, all mobile phones or personal
accident insurance rose year-on-year by +0.9 percentage points
to stand at 27.4% at end-March 2023.
Against a backdrop of rising customer rates,
loan production in the first quarter of 2023 stood at
€7.2 billion, down -24.3%36 compared to the same period one
year earlier. Production was up in the small business market
(+6.2%), but down in the other markets: -48.9% in the Corporates
market; -22.0% in home loans as the French market slowed (-37.5%
drop in home loan production according to Banque de France between
the first quarter 2023 and the first quarter 2022). At LCL, the
loan production rate rose by +51 basis points between fourth
quarter 2022 and first quarter 2023. The rate at signature was 3.5%
(week of 17 to 21 April 2023).
Outstanding loans totalled €165.6 billion
at end-March 2023, up +8.2% from end-March 2022, of which +8.5% for
home loans, +8.0% for loans to small businesses, +8.6% for
corporate loans and +2.9% for consumer finance. Customer assets,
which totalled €241.0 billion at end-March 2023, were also up,
recording a year-on-year rise of +4.1%. This was driven by
on-balance sheet deposits (+6.6%) stemming from the increase in
term deposits and passbook accounts. Off-balance sheet savings
showed little change (-0.1%).
LCL stood out once again, achieving the
number-one ranking in its sector according to the Isoskele 2023
Customer Recognition Barometer with a global score of 6.7/10. LCL
improved on all criteria, particularly personalisation and
interaction. The award highlights the strong relationships that LCL
maintains with its customers in its effort to achieve maximum
customer satisfaction.
CA Italia
recorded brisk business in the first quarter of 2023, benefiting
from the diversification of the Group’s activities in Italy. Gross
customer capture for the first three months of 2023 reached 39,000
new customers, while the customer base increased by about
5 000 clients. Loan outstandings at CA Italia stood at
€59.237 billion at the end of March 2023, up +1% compared to
the end of March 2022. Loan production fell by -11.4% year-on-year,
but was up +25.7% for corporate and small business loans (excluding
Ecobonus and state-guaranteed loans).38 Home loan production fell
by -21.3%, in a decreasing housing market in Italy39. However, the
production rate was up +99 basis points on home loans and up
+47 basis points on the stock, on compared to fourth quarter
2022. Consumer finance production40 was down -7.5% compared to the
first quarter 2022, but up +7.1% from the fourth quarter 2022.
Customer assets at end-March 2023 totalled €111.3 billion,
down -2.0% year-on-year due to a negative market effect on
off-balance sheet deposits. On-balance sheet deposits remained
stable, positive inflows from corporate term deposits being offset
by the outflows from individual demand deposits.
CA Italia’s equipment rate in car,
multi-risk home, health, legal, all mobile phones or personal
accident insurance increased to 17.1% including Creval, versus
16.8% in fourth quarter 2022.
For International retail banking
excluding Italy, loan outstandings were down -47.8% at
end-March 2023 compared to end-March 2022, while customer assets
were down -39.8% over the same period.
Excluding disposed
entities41 and Ukraine, i.e.
while considering Poland and Egypt, loan outstandings were
up by +8.1% at constant exchange rates (-3.6% at current exchange
rates) and customer assets by +12.7% at constant exchange rates
(-1.1% at current exchange rates) over the same period. In Poland
in particular, loan outstandings increased by +7.2% versus March
2022 (+6.2% at constant exchange rates) and customer assets by
+6.5% over the same period (+5.5% at constant exchange rates).
Also, Poland recorded an increase of 90,000 new customers in the
first quarter 2023 (about +62,000 in customer base). In Egypt, loan
outstandings were impacted by the ongoing devaluation of the
Egyptian pound, falling by -31.9% between end-March 2022 and
end-March 2023 (+12.5% at constant exchange rates). Customer assets
fell by -16.1% over the same period (+38.6% at constant exchange
rates). The surplus of deposits over loans in Poland and Egypt
amounted to €2.0 billion at 31 March 2023, or
€3.3 billion including Ukraine.
As at 31 March 2023, the entire Retail banking
business line contributed 21% to the underlying net income Group
share of Crédit Agricole S.A.’s core businesses
(excluding Corporate Centre division) and 30% to underlying
revenues excluding Corporate Centre.
As at 31 March 2023, the equity allocated to the
division was €9.3 billion, including €4.9 billion for
French retail banking and €4.4 billion for International
retail banking. Risk weighted assets for the division totalled
€97.8 billion, including €51.7 billion for French retail
banking and €46.1 billion for International retail
banking.
French retail banking results
In first quarter 2023, LCL’s
revenues were down by -5.0% compared to first quarter 2022, at
€936 million. The decrease in the net interest margin (-14.5%)
is linked to the increase in the cost of client resources and
refinancing, despite the gradual repricing of asset-based loan
rates, in a context where the usury rate is updated by the Banque
de France on a monthly basis (as an exception for a period of six
months). Fee and commission income also rose significantly (+6.0%),
driven by growth in fee and commission income from payment systems
and property and casualty insurance. The contribution to the SRF
amounted to -€50 million, down -24.2%. Expenses excluding SRF
are under control and totalled -€599 million, a slight +0.6%
increase. The underlying cost/income ratio excluding SRF increased
by 3.6 percentage points to 64.0% and remains at a low
level. Underlying gross operating income was therefore down -11.5%
to €287 million.
The cost of risk continued to normalise, up by
+7.3% to -€66 million (including -€16 million in cost of
risk on performing loans, -€48 million in proven risk, and
-€2 million in other risks). The coverage ratio stood at 67.8%
at the end of March, up +1.6 percentage points this quarter
compared to the end of December 2022. The Non Performing Loans
ratio reached 1.7% at the end of March 2023, stable compared to the
end of December 2022.
As a result, net income Group share decreased by
-17.1% compared to the first quarter of 2022.
All in all, 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 first quarter 2023 and 15% to
underlying revenues excluding the Corporate
Centre.
At 31 March 2023, the equity
allocated to the business line stood at €4.9 billion
and risk weighted assets stood at
€51.7 billion. LCL’s underlying return on normalised equity
(RoNE) stood at 15.7% for the first quarter of 2023.
International Retail Banking results
Within International retail banking, following
Credito Valtellinese’s acquisition by CA Italia, Creval has
been consolidated since 30 April 2021; the controlling interest in
Crédit du Maroc was sold in the fourth quarter 2022
(disposal of 63.7%), after its classification under IFRS 5 in
the first quarter of 2022, with the residual 15% stake to be sold
within next 18 months; finally,
Crédit Agricole Serbia was sold on 1 April 2022. The
income of the latter two entities was recognised in 2022 under
IFRS 5, impacting all profit and loss lines of International
Retail Banking excluding Italy on a quarterly and cumulative
basis.
Moreover, in a context of continued conflict in
Ukraine, commercial activity remains heavily penalised and the
operations of Crédit Agricole Ukraine reduced.
The following data for the first quarter
2023 for International retail banking are therefore
presented at constant scope42,
i.e., excluding Crédit Agricole Serbia,
Crédit du Maroc and
Crédit Agricole Ukraine. This scope corresponds to the
cumulative view of
Crédit Agricole Itala,
Crédit Agricole Egypt and
Crédit Agricole Bank Polska. Revenues stood
at €919 million, up +22.4% (+26.5% at constant exchange rates)
compared to the first quarter of 2022, thanks to the positive
effect of higher production loan rates on the net interest margin.
Expenses increased by +1.9% (+4.0% at constant exchange rates),
notably due to the effect of inflation on payroll, as well as IT
and marketing expenses. Gross operating income amounted to
€408 million, an increase of +63.2% (+73.1% at constant
exchange rates) compared to the first quarter of 2022. The cost of
risk stood at -€81 million, an addition of -€23 million,
from -€58 million in the first quarter of 2022, due to
continued prudent provisioning in Italy as well as higher
provisioning for CHF loans in Poland.
All in all, the net income Group share
in CA Italia, CA Egypt
and CA Poland amounted to €173 million in the
first quarter of 2023, up +76.9 (+88.2 at constant exchange
rates).
As at 31 March 2023, the International Retail
banking business line contributed 11% to the underlying net income
Group share of Crédit Agricole S.A.’s core businesses
(excluding Corporate Centre division) and 15% to underlying
revenues excluding Corporate Centre.
As at 31 March 2023, the equity allocated to the
division was €4.4 billion and risk weighted assets for the
division totalled €46.1 billion.
Results in Italy
In first quarter 2023,
Crédit Agricole Italy revenues stood at
€761 million, up +22.9% compared to first quarter 2022. The
rise in rates benefited the net interest margin via the rise in
loan production rates, which increased by 98 basis points
between the first quarter of 2023 and the fourth quarter of 2022,
but also via the revaluation of the rate on the stock of loans on
the asset side, by +69 basis points between the fourth quarter
of 2022 and the first quarter of 2023. Operating expenses excluding
SRF stood at -€372 million. They are stable (-1.1%) compared
to the first quarter of 202243, thanks to the control of IT and
marketing expenses as well as the further Creval integration cost
synergies, which stood at approximately €8 million in the
first quarter of 2023. CA Italia’s operational efficiency
allowed for a positive jaws effect of +22 percentage points
this quarter, compared to first quarter of 2022 (restated for
Creval integration costs in the first quarter 2022). All in all,
gross operating income increased by +63.6% compared to the first
quarter of 2022.
The underlying cost of risk amounted to
-€61 million in first quarter 2023, including
-€48 million for proven risk and -€11 million in
provisioning for performing loans. It was up by +34.4% compared to
first quarter 2022. Cost of risk on outstandings44 stood at
54 basis points, up 3 basis points compared to fourth
quarter 2022. The Non Performing Loans ratio was stable compared to
fourth quarter 2022 at 3.7% and the coverage ratio at 66.8% (+2.2
percentage points compared to fourth quarter 2022). The underlying
net income Group share of CA Italia thus stood at
€160 million, up +75.0% compared to first quarter 2022.
CA Italia’s underlying RoNE (return on
normalised equity) was 24.4% at 31 March 2023.
International Retail Banking results –
excluding Italy
Within the scope of International Retail banking
excluding Italy, Crédit du Maroc was classified under IFRS 5 in
first quarter 2022 and control was sold in fourth quarter 2022, and
Crédit Agricole Serbia was sold on 1st April 2022. The
income of these two entities is recognised under IFRS 5,
impacting all profit and loss lines of International retail banking
excluding Italy on a quarterly basis.
In a context of continued conflict in Ukraine,
commercial activity remains heavily penalised and the operations of
Crédit Agricole Ukraine reduced. In the first quarter of
2023, provisioning remained prudent and income was limited (cost of
risk in the first quarter of 2023 amounted to
-€33 million).
The following data for the first quarter
of 2023 for Retail banking excluding Italy are therefore
presented at constant scope45,
i.e., excluding Crédit Agricole Serbia,
Crédit du Maroc and Crédit Agricole Ukraine.
This scope corresponds to the cumulative view of
Crédit Agricole Egypt and
Crédit Agricole Bank Polska. Revenues
totalled €158 million in first quarter 2023 and were up +19.7%
(+46.9% at constant exchange rates) over first quarter 2022 due to
the increase in net interest margin. Operating expenses increased
by +3.8% (+16% at constant exchange rates)46, due to the impact of
inflation in Poland and Egypt on payroll and IT expenses. Gross
operating income amounted to €59 million, an increase of +60.7
(+164.2% at constant exchange rates) compared to the first quarter
of 2022. The cost of risk reached -€20 million, deteriorating
by -60.6%, taking into account the provisioning of CHF loans in
Poland, bringing the provisioning rate of loans in Poland above
55%. All in all, Crédit Agricole Egypt and
CA Bank Polska net income Group share
contribution increased by +102.2% (>200% at constant exchange
rates).
The underlying RoNE (return on normalised
equity) of Other IRB (excluding CA Italia) stood at 17.4% at
31 March 2023.
Corporate Centre results
The “internal margins” effect at the time of the
consolidation of the insurance activities at the
Crédit Agricole level was accounted through the Corporate
Centre. It further contributed to a larger reduction of the
cost/income ratio of Crédit Agricole S.A. The impact of
internal margins was -€190 million in revenues and
+€190 million in expenses.
The underlying net income Group share of CC was
-€305 million in first quarter 2023, down -€94 million
compared with first quarter 2022. The negative contribution of the
Corporate Centre division can be analysed by distinguishing between
the “structural” contribution (-€375 million) and other items
(€70 million). The contribution of the “structural” component
decreased by -€87 million from first quarter 2022 and can be
broken down into three types of activity:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. corporate entity. This contribution
reached -€382 million in the first quarter of 2023, down by
-€91 million, including a drop in revenues linked mainly to a
base effect on the TLTRO (with a special interest period in Q1-2022
which amounted to €112 million) and on the home purchase
savings provision.
- The businesses
that are not part of the business lines, such as CACIF (Private
equity), CA Immobilier and BforBank (equity-accounted). Their
contribution of +€5 million in first quarter 2023 was up
+€6 million compared to first quarter 2022.
- Group support
functions. Their contribution amounted to +€2 million this
quarter (-€1 million compared with first quarter 2022).
The contribution from “other items” was down by
-€7 million from the first quarter of 2022, mainly due to the
discontinuation under IFRS 17 of the elimination of
intra-group securities underwritten by Predica and to lower
dividend payments from subsidiaries.As at 31 March 2023, risk
weighted assets were €28.9 billion.
Financial strength
Crédit Agricole Group
As at 31 March 2023, the phased-in
Common Equity Tier 1 (CET1) ratio of
Crédit Agricole Group was 17.6%, stable vs end-December
2022 47. Consequently, Crédit Agricole Group had a
substantial buffer of 8.7 percentage points between the
level of its CET1 ratio and the SREP requirement of 8.9%,48 which
is the largest SREP gap among European G-SIBs.49 The fully loaded
CET1 ratio was 17.4%. During first quarter 2023:
- The
application of IFRS 17 had a positive impact of +10 basis
points, largely due to the upfronting of part of the expected
« Pull to Par » effect on unrealised gains and/or losses.
This meant that while unrealised losses were -19 basis points
at 31 December 2022 under IFRS 4, they were -5 basis
points under IFRS 17 at end-March 2023. The impact of
IFRS 17 on the CET1 ratio excluding unrealised gains and/or
losses was therefore globally neutral.
- The CET1 ratio benefited this
quarter from an impact of +21 basis points related to
retained earnings.
- Changes of risk weighted assets in
business line organic growth and methodology
impacted the Group’s CET1 ratio by -9 basis points, which
included an increase in the business lines’ risk weighted assets
(of which +€3.1 billion was for the Regional Banks).
- The phasing
out of IFRS 9 transitional provisions had an
impact of -13 basis points in first quarter 2023. Phasing out
is expected to end in 2025, with an impact of an additional
-17 basis points expected for the 2024-2025 period.
-
Unrealised insurance gains and/or losses had a
neutral effect this quarter due to lower volatility of OCI reserves
under IFRS 17(+1 bps in first quarter 2023).
The phased-in Tier 1 ratio
stood at 18.9% while the phased-in total ratio was 21.7% at
end-March 2023.
The phased-in leverage ratio
was 5.4%, up by +0.1 percentage point from end-December 2022 and
well above the regulatory requirement of 3.5% (increase of 0.5%
from the 1st January 2023 for global systemically important
institutions (G-SIIs)).
Crédit Agricole Group’s risk
weighted assets stood at €584.3 billion, up
+€9.7 billion from 31 December 2022, mostly in line with the
increase in the insurance equity-accounted value for an RWA amount
of +€10.1 billion. This included +€7.6 billion related to
the entry into force of IFRS 17 and +€2.5 billion related
to organic growth in insurance, including unrealised gains and/or
losses (+€0.5 billion in quarterly earnings and
+€0.2 billion in increased unrealised gains and/or losses).
Excluding insurance equity-accounted value, Business line organic
growth (including favourable foreign exchange effect) contributed
to +€2.6 billion to this change. Methodological and other effects
contributed to a decrease in RWAs of -€3.0 billion (mainly due to
optimization work in the Large Customer division).
Maximum Distributable Amount (MDA and
L-MDA) trigger thresholds
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined capital
buffer requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 31 March 2023,
Crédit Agricole Group posted a safety
buffer of 819 basis points above the MDA trigger, i.e.
€48 billion in CET1 capital.
At 31 March 2023,
Crédit Agricole S.A. posted a safety
buffer of 369 basis points above the MDA trigger, i.e.
€14 billion in CET1 capital.
Failure to comply with the leverage ratio buffer
requirement would result in a restriction of distributions and the
calculation of a maximum distributable amount (L-MDA).
At 31 March 2023,
Crédit Agricole Group posted a safety
buffer of 189 basis points above the L-MDA trigger,
i.e. €39 billion in Tier 1
capital.
TLAC
The TLAC ratio requirement was transposed into
European Union law via CRR2 and has been applicable since 27 June
2019. 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 0.07% for the CA Group at 31/03/23). Considering the
combined capital buffer requirement, the
Crédit Agricole Group must adhere to a TLAC ratio of
above 21.6%;
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior preferred debt.
At 31 March 2023,
Crédit Agricole Group’s TLAC ratio stood
at 27.4% of RWA and 7.8% of leverage ratio exposure,
excluding eligible senior preferred
debt,50 which is well above the
requirements. The TLAC ratio expressed as a percentage of risk
weighted assets increased by 20 bps over the quarter, in line
with the increase in equity and eligible items over the period.
Expressed as a percentage of leverage exposure (LRE), the TLAC
ratio was stable compared to December 2022.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 580 bps higher, i.e.
€34 billion, than the current requirement of 21.6% of RWA.
At end-March 2023, €2.6 billion equivalent
was issued in the market (AT1, senior non-preferred and Tier 2
debt). The amount of Crédit Agricole Group senior
non-preferred securities taken into account in the calculation of
the TLAC ratio was €28.0 billion.
MREL
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. Since 1 January 2022,
Crédit Agricole Group has been requested to meet a
minimum total MREL requirement of:
- 21.04% of RWA,
plus – in accordance with EU directive CRD 5 – a combined
capital buffer requirement (including, for the Crédit Agricole
Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer and
the counter-cyclical buffer set at 0.07% for the CA Group at
31/03/23). Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a total MREL ratio
of above 24.6%;
- 6.02% of the
LRE.
At 31 March 2023,
Crédit Agricole Group had a MREL ratio of 32.8%
of RWA and 9.3% of leverage exposure, well above the total
MREL requirement.
An additional subordination requirement to TLAC
(“subordinated MREL”) is also determined by the resolution
authorities and expressed as a percentage of RWA and LRE, in which
senior debt instruments are excluded, similar to TLAC, which ratio
is equivalent to the subordinated MREL for the
Crédit Agricole Group. Since 1 January 2022, this
subordinated MREL requirement for the
Crédit Agricole Group did not exceed the TLAC
requirement.
The distance to the maximum distributable amount
trigger related to MREL requirements (M-MDA) is the lowest of the
respective distances to the MREL, subordinated MREL and TLAC
requirements expressed in RWA.
At 31 March 2023,
Crédit Agricole Group therefore had a
safety buffer of
580 basis points
above the M-MDA trigger, taking into account the TLAC requirement
applicable at 31 March 2023, i.e. €34 billion of CET1
capital.
Crédit Agricole S.A.
At end-March 2023,
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%, up 37 basis points from
end-December 2022. Crédit Agricole S.A. therefore had a
comfortable buffer of 3.7 percentage points between the level
of its CET1 ratio and the 7.9% SREP requirement.51 This is higher
than at end-December 2022, when it was 3.3 percentage points. The
fully loaded CET1 ratio has reached 11.5% in first quarter
2023:
- The
application of IFRS 17 had a positive impact on
losses of +32 basis points, largely due to the upfronting of
part of the expected “pull-to-par” effect on unrealised gains
and/or losses, being on unrealised losses. This meant that while
unrealised losses were -54 basis points at 31 December 2022
under IFRS 4, they were -18 basis points under
IFRS 17 at end-March 2023. The impact of IFRS 17 on the
CET1 ratio excluding unrealised gains and/or losses was therefore
overall neutral.
- The CET1 ratio
also benefited from a positive impact of +15 bps related to
retained earnings. This impact corresponds to net
income Group share net of AT1 coupons (impact of +30 basis
points) and of the distribution of 50% of earnings, i.e. a
provision for dividends of 18 euro cents per share in first quarter
2023 (-15 basis points).
- The change in
risk weighted assets related to organic growth of business
lines and methodology is moderate this quarter and had a
-1 basis point impact on the CET1 ratio.
- The phasing
out of IFRS 9 transitional provisions had an impact of
-10 basis points in the first quarter of 2023. Phasing out is
expected to end in 2025, with an impact of an additional
-10 basis points expected for the 2024-2025 period.
-
Insurance and unrealised gains and/or losses had a
neutral effect this quarter due to lower volatility of OCI reserves
(+2 bps in first quarter 2023).
The phased-in leverage ratio
was 3.7% at end-March 2023, up +0.1 percentage point from
end-December 2022 and above the 3% requirement.
The phased-in Tier 1 ratio
stood at 13.6% and the phased-in total ratio at 17.9% this
quarter.
Crédit Agricole S.A.’s risk
weighted assets stood at €368.1 billion at end-March 2023,
up +€6.8 billion compared to 31 December 2022, in line with
the increase in the insurance equity-accounted value for an RWA
amount of +€10.0 billion. This included +€7.6 billion
related to the entry into force of IFRS 17 and
€2.4 billion related to organic growth in insurance, including
unrealised gains and/or losses (+€0.5 billion in quarterly
earnings and +€0.2 billion in increased unrealised gains
and/or losses). The business lines’ RWAs contribution excluding the
insurance equity-accounted value (including favourable FX impact)
was -€0.3 billion. The business lines’ organic growth for SFS
(+€1.6 billion), for AG excl. Insurance (+€1.3 billion) for
Corporate Center (+€1.5 billion) and for Retail Banking (+€0.4
billion) is offset by a decrease of RWAs in the Large Customer
division due to lower market RWAs (positive change in VaR and SVaR
indicators), a one-off decline in financing activity RWAs, and
positive rating and exchange rate impacts) amounting -€5.0 billion.
Methodology and other effects decreased RWAs by -€3.0 billion
(including optimisation work in the Large customers division).
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is
based on the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet as
they appear in the next table and whose definition is commonly
accepted in the marketplace. It relates to the banking scope, with
insurance activities being managed in accordance with their own
specific prudential constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €57 billion at end-March 2023.
Similarly, €110 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
€189 billion at end-March 2023 – relate to derivatives, margin
calls, adjustment/settlement/liaison accounts and to non-liquid
securities held by Corporate and Investment banking (BFI) 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
(€87 billion at end-March 2023) is booked to assets under
“Customer-related trading assets” and to liabilities under
“Customer-related funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, senior
issuances placed through the banking networks as well as financing
by the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Note that for Central Bank refinancing
transactions, outstandings related to the T-LTRO (Targeted
Longer-Term Refinancing Operations) are included in “Long-term
market funds”. In fact, T-LTRO 3 transactions are similar to
long-term secured refinancing transactions, identical from a
liquidity risk standpoint to a secured issue.
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 €1,671 billion at 31 March
2023, the Group’s banking cash balance sheet shows a
surplus of stable funding resources
over stable application of funds
of €217 billion, up +€4 billion compared
to end-December 2022 due to the €7 billion increase in
refinancing needs resulting from commercial activity
(€1 billion increase in loans and €6 billion decrease in
customer-related funds), offset by an €11 billion increase in
medium- and long-term market funds. The surplus of stable funding
resources is also down by -€69 billion compared to the end of
March 2022, mainly due to the repayment in December 2022 of
€71 billion52 of TLTRO 3 resources.
In addition, total TLTRO 3 outstandings for
Crédit Agricole Group amounted to €90 billion52 at
31 March 2023, down -€1 billion52, which were repaid during
the quarter. It should be noted, with regard to the position in
available stable funding, that internal management excludes the
temporary surplus of stable resources provided by the increase in
T-LTRO 3 outstandings in order to secure the Medium-Term Plan’s
target of €110 billion to €130 billion, regardless of the
repayment strategy.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 31 March 2023
(central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market funds stood
at €295 billion at 31 March 2023, up
+€11 billion compared to end-December 2022, and down
-€65 billion compared to end-March 2022 particularly due to
the repayment in December 2022 of €71 billion52 of
TLTRO 3 resources.
They included senior secured debt of
€156 billion, senior preferred debt of €87 billion,
senior non-preferred debt of €31 billion and Tier 2
securities amounting to €21 billion.
At 31 March 2023, the Group’s liquidity
reserves, at market value and after haircuts, amounted to
€457 billion, down -€10 billion from
end-December 2022 and -€15 billion from end-March 2022. They
covered short-term net debt more than three times over (excluding
the replacements with Central Banks).
They remain at a high level, although they are
expected to decline due to the amortization of a portion of the
claims eligible to Central Bank (pool of real estate claims of the
Regional Banks and LCL not reloaded in anticipation of the end of
the “ACC53 real estate” channel on 30 June 2023).
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 €134 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
At 31 March 2023, the average
year-on-year LCR ratios were respectively
162.6% for Crédit Agricole Group and 147.2% for
Crédit Agricole S.A. The end-of-month LCR ratios
were respectively 158.4% for Crédit Agricole Group (i.e.
a surplus of €119.9 billion) and 154.2% for
Crédit Agricole S.A. (i.e. a surplus of
€103.7 billion). They were higher than the Medium-Term Plan
target (around 110%), in line with the Group’s recourse to T-LTRO 3
drawdowns from the Central Bank during the COVID-19 crisis.
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 31 March 2023, the Group’s main
issuers raised the equivalent of €21.2 billion54,55
in medium-to-long-term debt through the open
market, 50% of which was issued by Crédit Agricole S.A.
Significant events for the Group are as follows:
-
Crédit Agricole CIB issued €6 billion in structured
format;
-
Crédit Agricole Consumer Finance issued
€0.7 billion in ABS securitisations;
-
Crédit Agricole Next Bank (Switzerland) issued a
seven-year, CHF 150 million covered bond in January;
The Group’s medium-to-long-term financing can be
broken down into the following categories:
-
€4.5 billion in secured financing;
-
€8.0 billion in plain-vanilla unsecured financing;
-
€6.4 billion in structured financing;
-
€2.4 billion in long-term institutional deposits and CDs.
In addition, €6.0 billion was raised
through off-market issuances, split as follows:
-
€4.4 billion from banking networks (the Group’s retail banking
or external networks);
-
€0.6 billion from supranational organisations or financial
institutions;
-
€1.0 billion from national refinancing vehicles (including the
credit institution CRH).
At 31 March 2023,
Crédit Agricole S.A. raised the equivalent of
€10.7 billion54,55 through the open
market:
The bank raised the equivalent of
€10.7 billion54, of which €1 billion in senior
non-preferred debt, €0.4 billion in Tier 2 debt,
€6.3 billion in senior preferred debt and €3 billion in
senior secured debt. The financing comprised a variety of formats
and currencies:
-
€7.8 billion;
-
$1.5 billion;
-
£0.9 billion;
-
SGD 0.5 billion;
-
CHF 0.1 billion;
-
JPY 4 billion.
Since end-March, Crédit Agricole S.A.
has raised an additional €3.1 billion, including a
€1.25 billion senior secured issue and a 1.5 billion
senior preferred issue. As a result, at end-April, the MLT
financing plan stood at €13.8 billion, or 73% of the 2023
programme.
Note that on 3 January 2023,
Crédit Agricole S.A. issued a PerpNC6 AT1 bond for
€1.25 billion at an initial rate of 7.25%.
Appendix 1 – Specific items,
Crédit Agricole Group and
Crédit Agricole S.A.
|
Groupe Crédit Agricole– Specific
items, Q1-2023 |
|
|
|
Q1-23 |
Q1-22 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
(8) |
(6) |
(31) |
(23) |
|
Loan portfolio hedges (LC) |
|
(24) |
(18) |
17 |
12 |
|
Home Purchase Savings Plans (LCL) |
|
- |
- |
6 |
4 |
|
Home Purchase Savings Plans (CC) |
|
- |
- |
18 |
13 |
|
Home Purchase Savings Plans (RB) |
|
- |
- |
70 |
52 |
| Total
impact on revenues |
|
(32) |
(24) |
79 |
59 |
|
Creval integration costs (IRB) |
|
- |
- |
(8) |
(5) |
|
Lyxor integration costs (AG) |
|
- |
- |
(10) |
(5) |
| Total
impact on operating expenses |
|
- |
- |
(18) |
(10) |
|
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
(195) |
(195) |
| |
|
|
|
|
|
| Total
impact on cost of credit risk |
|
- |
- |
(195) |
(195) |
|
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(4) |
(7) |
| Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
(4) |
(7) |
|
Total impact of specific items |
|
(32) |
(24) |
(138) |
(153) |
|
Asset gathering |
|
- |
- |
(10) |
(5) |
|
French Retail banking |
|
- |
- |
76 |
56 |
|
International Retail banking |
|
- |
- |
(207) |
(207) |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(32) |
(24) |
(14) |
(10) |
|
Corporate centre |
|
- |
- |
18 |
13 |
* Impact before tax and before non-controlling interests
Crédit
Agricole S.A. – Specific items
Q1-2023
|
|
|
Q1-23 |
Q1-22 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
(8) |
(6) |
(31) |
(22) |
|
Loan portfolio hedges (LC) |
|
(24) |
(17) |
17 |
12 |
|
Home Purchase Savings Plans (FRB) |
|
- |
- |
6 |
4 |
|
Home Purchase Savings Plans (CC) |
|
- |
- |
18 |
13 |
| Total
impact on revenues |
|
(32) |
(23) |
10 |
7 |
|
Creval integration costs (IRB) |
|
- |
- |
(8) |
(4) |
|
Lyxor integration costs (AG) |
|
- |
- |
(10) |
(5) |
| Total
impact on operating expenses |
|
- |
- |
(18) |
(9) |
|
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
(195) |
(195) |
| Total
impact on cost of credit risk |
|
- |
- |
(195) |
(195) |
|
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(4) |
(7) |
| Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
(4) |
(7) |
|
Total impact of specific items |
|
(32) |
(23) |
(207) |
(204) |
|
Asset gathering |
|
- |
- |
(10) |
(5) |
|
French Retail banking |
|
- |
- |
6 |
4 |
|
International Retail banking |
|
- |
- |
(207) |
(206) |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(32) |
(23) |
(14) |
(10) |
|
Corporate centre |
|
- |
- |
18 |
13 |
* Impact before tax and before non-controlling
interests
Appendix 2 – Crédit Agricole Group: results by
business lines
Crédit Agricole Group– Results by business line, Q1-23 et
Q1-22
|
|
Q1-23 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,333 |
936 |
989 |
1,745 |
672 |
2,051 |
(800) |
8,927 |
|
Operating expenses excl. SRF |
(2,441) |
(599) |
(501) |
(715) |
(371) |
(1,121) |
464 |
(5,284) |
|
SRF |
(113) |
(50) |
(40) |
(6) |
(31) |
(314) |
(72) |
(626) |
|
Gross operating income |
779 |
287 |
449 |
1,024 |
270 |
616 |
(408) |
3,018 |
|
Cost of risk |
(172) |
(66) |
(115) |
(1) |
(158) |
(36) |
0 |
(548) |
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
Equity-accounted entities |
7 |
- |
0 |
22 |
74 |
4 |
0 |
108 |
|
Net income on other assets |
1 |
(0) |
0 |
0 |
(1) |
5 |
(1) |
4 |
|
Income before tax |
616 |
221 |
334 |
1,045 |
184 |
589 |
(408) |
2,581 |
|
Tax |
(196) |
(63) |
(98) |
(231) |
(34) |
(183) |
94 |
(711) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
2 |
- |
0 |
- |
- |
2 |
|
Net income |
420 |
159 |
238 |
815 |
150 |
405 |
(315) |
1,872 |
|
Non controlling interests |
0 |
(0) |
(40) |
(111) |
(23) |
(19) |
(9) |
(204) |
|
Net income Group Share |
420 |
158 |
198 |
703 |
127 |
386 |
(324) |
1,669 |
|
|
Q1-22 (stated) |
|
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,686 |
986 |
1,568 |
804 |
688 |
1,723 |
(573) |
8,882 |
|
Operating expenses excl. SRF |
(2,326) |
(596) |
(699) |
(502) |
(366) |
(968) |
374 |
(5,082) |
|
SRF |
(158) |
(66) |
(8) |
(30) |
(35) |
(441) |
(56) |
(794) |
|
Gross operating income |
1,202 |
324 |
861 |
273 |
286 |
314 |
(255) |
3,005 |
|
Cost of risk |
(145) |
(61) |
(2) |
(275) |
(125) |
(278) |
(2) |
(888) |
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
Equity-accounted entities |
4 |
- |
20 |
1 |
80 |
3 |
(0) |
108 |
|
Net income on other assets |
13 |
(0) |
1 |
(0) |
0 |
0 |
(1) |
13 |
|
Income before tax |
1,074 |
262 |
881 |
(1) |
242 |
38 |
(258) |
2,238 |
|
Tax |
(302) |
(81) |
(183) |
(57) |
(54) |
(75) |
50 |
(703) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
(1) |
1 |
1 |
- |
- |
1 |
|
Net income |
772 |
181 |
696 |
(57) |
189 |
(37) |
(208) |
1,536 |
|
Non controlling interests |
(0) |
(0) |
(115) |
(31) |
(26) |
(10) |
(5) |
(186) |
|
Net income Group Share |
772 |
181 |
581 |
(88) |
164 |
(47) |
(213) |
1,350 |
Appendix 3 – Crédit Agricole S.A. : results by
business line
Crédit Agricole S.A. – Results by business line, Q1-23 et
Q1-22
|
|
Q1-23 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,746 |
2,051 |
672 |
936 |
969 |
(253) |
6,121 |
|
Operating expenses excl. SRF |
(715) |
(1,121) |
(371) |
(599) |
(484) |
(39) |
(3,328) |
|
SRF |
(6) |
(314) |
(31) |
(50) |
(40) |
(72) |
(513) |
|
Gross operating income |
1,024 |
616 |
270 |
287 |
445 |
(363) |
2,280 |
|
Cost of risk |
(1) |
(36) |
(158) |
(66) |
(114) |
1 |
(374) |
|
Equity-accounted entities |
22 |
4 |
74 |
- |
0 |
(14) |
86 |
|
Net income on other assets |
0 |
5 |
(1) |
(0) |
0 |
- |
4 |
|
Income before tax |
1,046 |
589 |
184 |
221 |
332 |
(376) |
1,996 |
|
Tax |
(232) |
(183) |
(34) |
(63) |
(98) |
88 |
(521) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
0 |
- |
2 |
- |
2 |
|
Net income |
814 |
406 |
150 |
159 |
236 |
(287) |
1,476 |
|
Non controlling interests |
(115) |
(29) |
(23) |
(7) |
(58) |
(17) |
(250) |
|
Net income Group Share |
698 |
376 |
127 |
151 |
178 |
(305) |
1,226 |
|
|
Q1-22 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,569 |
1,723 |
688 |
986 |
786 |
(168) |
5,584 |
|
Operating expenses excl. SRF |
(698) |
(968) |
(366) |
(596) |
(487) |
(18) |
(3,133) |
|
SRF |
(8) |
(441) |
(35) |
(66) |
(30) |
(56) |
(636) |
|
Gross operating income |
864 |
314 |
286 |
324 |
270 |
(243) |
1,815 |
|
Cost of risk |
(2) |
(278) |
(125) |
(61) |
(273) |
(2) |
(740) |
|
Equity-accounted entities |
20 |
3 |
80 |
- |
1 |
(8) |
95 |
|
Net income on other assets |
1 |
0 |
0 |
9 |
(0) |
(0) |
10 |
|
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
883 |
38 |
242 |
272 |
(2) |
(253) |
1,180 |
|
Tax |
(183) |
(75) |
(54) |
(81) |
(57) |
50 |
(401) |
|
Net income from discontinued or held-for-sale operations |
(1) |
- |
1 |
- |
1 |
- |
1 |
|
Net income |
698 |
(37) |
189 |
190 |
(58) |
(203) |
780 |
|
Non controlling interests |
(120) |
(6) |
(26) |
(8) |
(42) |
(8) |
(209) |
|
Net income Group Share |
578 |
(43) |
164 |
183 |
(100) |
(211) |
571 |
Appendix 4 – Data per
share
|
Crédit Agricole S.A. – Earnings per share, Net asset value per
share and RoTE |
|
(€m) |
|
|
Q1-23 IFRS17 |
Q1-22 IFRS4 |
|
|
|
|
|
|
| Net income Group
share - stated |
|
|
1,226 |
552 |
| - Interests on
AT1, including issuance costs, before tax |
|
|
(141) |
(122) |
| NIGS
attributable to ordinary shares - stated |
[A] |
|
1,085 |
430 |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
|
3,024 |
3,024 |
|
Net earnings per share - stated |
[A]/[B] |
|
0.36 € |
0.14 € |
| Underlying net
income Group share (NIGS) |
|
|
1,249 |
756 |
| Underlying NIGS
attributable to ordinary shares |
[C] |
|
1,108 |
634 |
|
Net earnings per share - underlying |
[C]/[B] |
|
0.37 € |
0.21 € |
*
|
(€m) |
|
|
31/03/2023 IFRS17 |
| Shareholder's
equity Group share |
|
|
69,138 |
| - AT1
issuances |
|
|
(7,239) |
| - Unrealised
gains and losses on OCI - Group share |
|
|
1,237 |
| - Payout
assumption on annual results* |
|
|
(3,175) |
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
59,962 |
| - Goodwill
& intangibles** - Group share |
|
|
(16,960) |
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
43,002 |
| Total shares
in issue, excluding treasury shares (period end, m) |
[F] |
|
3,024.0 |
| NBV per share
, after deduction of dividend to pay (€) |
[D]/[F] |
|
19.8 € |
| + Dividend to
pay (€) |
[H] |
|
1.05 € |
| NBV per share
, before deduction of dividend to pay (€) |
|
|
20.9 € |
| TNBV per
share, after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
14.2 € |
| TNBV per sh.,
before deduct. of divid. to pay (€) |
[G]+[H] |
|
15.3 € |
| * dividend
proposed to the Board meeting to be paid |
|
|
|
| ** including
goodwill in the equity-accounted entities |
|
|
|
| |
|
|
|
|
(€m) |
|
|
Q1-23 IFRS17 |
| Net income
Group share - stated |
[K] |
|
1,226 |
| Impairment of
intangible assets |
[L] |
|
0 |
| IFRIC |
[M] |
|
-549 |
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*4+[M] |
|
6,553 |
| Interests on
AT1, including issuance costs, before tax, annualised |
[O] |
|
-564 |
| Stated result
adjusted |
[P] = [N]+[O] |
|
5,989 |
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg (2) |
[J] |
|
42,306 |
| Stated ROTE
adjusted(1) (%) |
= [P] / [J] |
|
14.2% |
| Underlying Net
income Group share |
[Q] |
|
1,249 |
| Underlying
NIGS annualised |
[R] = ([Q]-[M])*4+[M] |
|
6,645 |
| Underlying
NIGS adjusted |
[S] = [R]+[O] |
|
6,081 |
| Underlying
ROTE adjusted(1)(%) |
= [S] / [J] |
|
14.4% |
NB: The data presented in this appendix will
eventually be modified with the closing for the end of June 2023
accounts(1) ROTE calculated on the basis of an annualised net
income Group share and linearised IFRIC costs over the year(2
Average of the NTBV not revalued attributable to ordinary shares
calculated between 31/12/2022 and 31/03/2022 (line E) restated with
an assumption of dividend for current exercise
Alternative Performance
Indicators56
NBV Net Book Value not
re-evaluatedThe Net Book Value not re-evaluated
corresponds to the shareholders’ equity Group share from which the
amount of the AT1 issues, the unrealised gains and/or losses on OCI
Group share and the pay-out assumption on annual results have been
deducted.
NBV per share Net Book Value per share -
NTBV per share Net Tangible Book Value per shareOne of the
methods for calculating the value of a share. This represents the
Net Book Value divided by the number of shares in issue at end of
period, excluding treasury shares.
Net Tangible Book Value per share represents the
Net Book Value after deduction of intangible assets and goodwill,
divided by the number of shares in issue at end of period,
excluding treasury shares.
EPS Earnings per ShareThis is
the net income Group share, from which the AT1 coupon has been
deducted, divided by the average number of shares in issue
excluding treasury shares. It indicates the portion of profit
attributable to each share (not the portion of earnings paid out to
each shareholder, which is the dividend). It may decrease, assuming
the net income Group share remains unchanged, if the number of
shares increases.
Cost/income ratioThe
cost/income ratio is calculated by dividing operating expenses by
revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of
risk/outstandingsCalculated by dividing the cost of credit
risk (over four quarters on a rolling basis) by outstandings (over
an average of the past four quarters, beginning of the period). It
can also be calculated by dividing the annualised cost of credit
risk for the quarter by outstandings at the beginning of the
quarter. Similarly, the cost of risk for the period can be
annualised and divided by the average outstandings at the beginning
of the period.
Since the first quarter of 2019, the
outstandings taken into account are the customer outstandings,
before allocations to provisions.
The calculation method for the indicator is
specified each time the indicator is used.
Doubtful loanDefaulting loan.
The debtor is considered to be in default when at least one of the
following conditions has been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation;
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loanLoan which has
been provisioned due to a risk of non-repayment.
MRELThe MREL (Minimum
Requirement for Own Funds and Eligible Liabilities) ratio is
defined in the European “Bank Recovery and Resolution Directive”
(BRRD). This Directive establishes a framework for the resolution
of banks throughout the European Union, with the aim to provide
resolution authorities with shared instruments and powers to
pre-emptively tackle banking crises, preserve financial stability
and reduce taxpayers’ exposure to losses. Directive (EU) 2019/879
of 20 May 2019 known as “BRRD2” amended the BRRD and was transposed
into French law by Order 2020-1636 of 21 December 2020.
The MREL ratio corresponds to an own funds and
eligible liabilities buffer required to absorb losses in the event
of resolution. Under BRRD2, the MREL ratio is calculated as the
amount of eligible capital and liabilities expressed as a
percentage of risk weighted assets (RWA), as well as a leverage
ratio exposure (LRE). Are eligible for the numerator of the total
MREL ratio the Group’s regulatory capital, as well as eligible
liabilities issued by the central body 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 doubtful) loan coverage
ratio This ratio divides the outstanding provisions
by the impaired gross customer outstandings.
Impaired (or doubtful) loan
ratio This ratio divides the gross customer
outstandings depreciated on an individual basis, before provisions,
by the total gross customer outstandings.
TLACThe Financial Stability
Board (FSB) has defined the calculation of a ratio aimed at
estimating the adequacy of the bail-in and recapitalisation
capacity of Global Systemically Important Banks (G-SIBs). This
Total Loss Absorbing Capacity (TLAC) ratio provides
resolution authorities with the means to assess whether G-SIBs have
sufficient bail-in and recapitalisation capacity before and during
resolution. It applies to Global Systemically Important Banks, and
therefore to Crédit Agricole Group.
The Group’s regulatory capital as well as
subordinated notes and eligible senior non-preferred debt with
residual maturities of more than one year issued by
Crédit Agricole S.A. are eligible for the numerator of
the TLAC ratio.
Net income Group shareNet
income/(loss) for the financial year (after corporate income tax).
Equal to net income Group share, less the share attributable to
non-controlling interests in fully consolidated subsidiaries.
Underlying Net income Group
shareThe underlying net income Group share represents the
stated net income Group share from which specific items have been
deducted (i.e. non-recurring or exceptional items) in order to
facilitate the understanding of the company’s actual earnings.
Net income Group share attributable to
ordinary shares The net income Group share attributable to
ordinary shares represents the net income Group share from which
the AT1 coupon has been deducted, including issuance costs before
tax.
RoTE Return on Tangible
EquityThe RoTE (Return on Tangible Equity) measures the
return on tangible capital by dividing the Net income Group share
annualised by the group’s NBV net of intangibles and goodwill. The
annualised Net income Group share corresponds to the annualisation
of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding
impairments of intangible assets and restating each period of the
IFRIC impacts in order to linearise them over the year.
Disclaimer
The financial information for
first quarter 2023 for Crédit Agricole S.A. and
Crédit Agricole Group comprises this press release and
the presentation slides and related appendices, all of which are
available at
https://www.credit-agricole.com/en/finance/finance/financial-publications.
This press release may include prospective
information on the Group, supplied as information on trends. This
data does not represent forecasts within the meaning of EU
Delegated Act 2019/980 of 14 March 2019 (Chapter 1, Article 1,
d).
This information was developed from scenarios
based on a number of economic assumptions for a given competitive
and regulatory environment. Therefore, these assumptions are by
nature subject to random factors that could cause actual results to
differ from projections. Likewise, the financial statements are
based on estimates, particularly in calculating market value and
asset impairment.
Readers must take all these risk factors and
uncertainties into consideration before making their own
judgement.
Applicable standards and
comparability
The figures presented for the three-month period
ending 31 March 2023 have been prepared in accordance with IFRS as
adopted in the European Union and applicable at that date, and with
prudential regulations currently in force. 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.
The proforma figures presented will be subject
to a limited review by the statutory auditors for the 30th June
2023 closing, and may therefore be subject to change.
Note: The scopes of consolidation of the Groups
Crédit Agricole S.A. and Crédit Agricole have not
changed materially since the Crédit Agricole S.A. 2022
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.
Other information
Crédit Agricole S.A.’s Combined
General Meeting will take place on 17 May 2023 in Paris.
As announced at the time of the publication of
Crédit Agricole S.A.’s 2022 results, the Board of
Directors will propose to the General Meeting a cash dividend of
€1.05 per share (of which €0.85 for the policy of distributing 50%
of earnings and €0.20 for the 2019 dividend catch-up). It
corresponds to a return of 9.8% based on the share price at 04 May
2023 (closing).
- Ex dividend
date: 30 May 2023
- Payment: 1 June
2023
Financial Agenda
17 May
2023 Annual
General Meeting in Paris4 August
2023 Publication
of the 2023 second quarter and the first half year results8
November
2023 Publication
of the 2023 third quarter and first 9 months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Alexandre Barat + 33 1 57 72 12
19 alexandre.barat@credit-agricole-sa.frOlivier
Tassain + 33 1 43 23
25
41 olivier.tassain@credit-agricole-sa.frMathilde
Durand
+ 33 1 57 72 19
43
mathilde.durand@credit-agricole-sa.frBertrand
Schaefer +33 (0)1 49
53 43
76 bertrand.schaefer@ca-fnca.fr
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
| Institutional
shareholders |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
| Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
| |
|
|
| Clotilde
L’Angevin |
+ 33 1 43 23 32
45 |
clotilde.langevin@credit-agricole-sa.fr |
|
Equity investor relations: |
|
|
| Jean-Yann
AsserafFethi Azzoug |
+ 33 1 57 72 23 81+
33 1 57 72 03 75 |
jean-yann.asseraf@credit-agricole-sa.fr
fethi.azzoug@credit-agricole-sa.fr |
| Joséphine
Brouard |
+ 33 1 43 23 48
33 |
joséphine.brouard@credit-agricole-sa.fr |
| Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
| Nicolas
Ianna |
+ 33 1 43 23 55
51 |
nicolas.ianna@credit-agricole-sa.fr |
| Leila Mamou |
+ 33 1 57 72 07
93 |
leila.mamou@credit-agricole-sa.fr |
| Anna
Pigoulevski |
+ 33 1 43 23 40
59 |
anna.pigoulevski@credit-agricole-sa.fr |
| Annabelle
Wiriath |
+ 33 1 43 23 55
52 |
annabelle.wiriath@credit-agricole-sa.fr |
| |
|
|
|
Credit investor and rating agency relations: |
|
| Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@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 Customer home loan production rates up by +36 bp for Regional
banks, +51 bp for LCL compared to fourth quarter 2022. In Italy, it
increase of +99bp 2 Declined less sharply than the market (home
loan production in France -37.5% Q1-23/Q1-22 according to Banque de
France).3 Car, home, legal, all mobile phones, or personal accident
insurance4 See Appendixes for more details on specific items. 5 of
which -€33 million provision for the income of
CA Ukraine6 The cost of risk relative to outstandings (in
basis points) on a four quarter rolling basis is calculated on the
cost of risk of the past four quarters divided by the average
outstandings at the start of each of the four quarters7 The cost of
risk relative to outstandings (in basis points) on an annualised
basis is calculated on the cost of risk of the quarter multiplied
by four and divided by the outstandings at the start of the
quarter
8 Number of customers with an active profile on
the Ma Banque app or who had visited CAEL during the month/number
of adult customers having an active demand deposit account9
Signatures initiated in BAM deposit mode (multi-channel bank
access), Mobile customer portal or Ma Banque app10 Home loan
production in France down -37.5% Feb/Feb according to the Banque de
France
11 Specialised markets: farmers, professionals,
corporates and public authorities12 Average quarterly rates, all
markets, all loans (fixed rate term loans in euros)13 Credit rate
on monthly achievements. Only maturity loans, in euros and at a
fixed rate, are taken into account14 Home loan production customer
rate +36 bp Q1/Q415 Dividend SAS Rue La Boétie annually paid in
Q2
16 Underlying, excluding specific items. See
Appendixes for more details on specific items. 17 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.18 of
which -€33 million provision for the income of
CA Ukraine
19 The cost of risk relative to outstandings (in
basis points) on a four quarter rolling basis is calculated on the
cost of risk of the past four quarters divided by the average
outstandings at the start of each of the four quarters20 The cost
of risk relative to outstandings (in basis points) on an annualised
basis is calculated on the cost of risk of the quarter multiplied
by four and divided by the outstandings at the start of the
quarter21 See
Appendixes for more details on specific items.22 See details on the
calculation of the business lines’ RoTE (return on tangible equity)
and RONE (return on normalised equity) on p. 3423 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
year24 Scope: property and casualty in France and abroad25 Impact
in 2023 of 2022’s commercial momentum on loans26 LCL Private
Banking and Indosuez Wealth Management27 Premium Allocation
Approach, excluding financial results28 The change in CSM in the
first quarter is calculated based on an opening balance sheet at 1
January 2023.29 Indosuez Wealth Management scope30 Refinitiv31
Bloomberg32 Estimated on figures as at 30 June 202233 Operational
register keeping, organisation of general meetings and other
services to issuers in France
34 The transaction, expected to be completed in
2023, is subject to the usual conditions precedent, particularly
the completion of the acquisition of LeasePlan by ALD and the
obtaining of applicable regulatory approvals.35Cost of risk on
annualised quarter basis. Cost of risk on outstandings over four
rolling quarters is equal to 132 bp. Approximately 120bp after
integrating the cost of risk of automotive joint ventures.
36 Excluding state-guaranteed loans 37 Net of
POCI outstandigs
38 “Ecobonuses” correspond to refinancing of the
customer tax credit: Italian tax deductions for renovation, energy
efficiency and building safety, introduced in 2021.39 Source:
Assofin: -34% of Q1/Q1 home loan production40 Agos
41 Disposed entities: Serbia classified under
IFRS 5 since second quarter 2021 (disposal effective 1 April 2022)
and Crédit du Maroc classified under IFRS 5 since first quarter
2022 and disposal of controlling interest in fourth quarter 2022.42
Before adjusting for scope, in first quarter 2023 versus
first quarter 2022: International retail banking revenues
totalled €969 million, up +23%. Expenses excluding SRF stood
at -€484 million, flat compared to first quarter 2022. The
contribution to the SRF amounted to -€40 million, up +34.7%.
As a result, gross operating income amounted to +€445 million,
i.e. an increase of +64.8%. The cost/income ratio
excluding SRF worked out at 49.9%, down
12 percentage points. The cost of risk amounted to
-€114 million, down -58.2% (provisioning on Ukraine restated
on an underlying basis in the first quarter of 2022). Taxes
totalled -€98 million, up +70.9%. In all, net income Group
share totalled €178 million, versus -€100 million in
first quarter 2022.
43 Q1-22 expenses were impacted by a
€8 million restatement in specific items related to Creval
integration costs. Excluding this restatement, first quarter
expenses increased slightly year-on-year by +1%.44 Over a rolling
four quarter period.45 Before adjusting for scope, in first
quarter 2023, versus first quarter 2022: underlying
revenues for Retail banking excluding Italy totalled
€208 million, up +24.2%. Charges were relatively unchanged at
-€112 million. Gross operating income totalled
€96 million, an increase of +69.3%. The cost/income ratio
worked out at 62.5%, down 9.6 percentage points. The cost
of risk was -€53 million versus -€227 million in first
quarter 2022, which was impacted by -€195 million in
provisioning on Ukraine in the first quarter 2022. Underlying taxes
came to -€14 million, up 57% compared to first quarter 2022.
Gains or losses on discontinued activities amounted to
-€1.7 million (+29.4% compared to first quarter 2022). As a
result, net income Group share came in at €18 million, down
-109.5% compared to first quarter 2022.46 Including holding costs47
As a reminder, the GCA CET1 ratio at 31/12/2022 included for -17
basis points the anticipated purchase of Crédit Agricole S.A.
shares by SAS rue de La Boétie48 Expected increase in the
countercyclical buffer at the end of June 2023 (buffer from
7 bp at 31/03/2023 to 40bp at 30/06/2023), raising the SREP
requirement to 9.2% at the end of June 202349 Based on public data
as of 31/05/2023 of the 12 European G-SIBs, as of 31/03/2023 for
i.e. GCA, BPCE, BNPP, Deutsche Bank , Santander, Unicredit,
Barclays, HSBC, Standard Chartered, UBS and, as of 31/12/2022, for
ING and Société Générale. CASA (31/03/2023). Distance to SREP or
requirement in CET1 equivalent.50 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 2023.51 Expected increase
in the countercyclical buffer at end-June 2023 (from 9 bps at
31 March 2023 to 34 bps at 30 June 2023), raising the SREP
requirement to 8.2%. 52 Excluding FCA Bank53 Additional Credit
Claims54 Gross amount before buy-backs and amortisations55 Excl.
AT1 issuances56 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.
- EN_CASA_CP_2023-Q1_Results
Credit Agricole (EU:ACA)
Gráfico Histórico do Ativo
De Ago 2023 até Set 2023
Credit Agricole (EU:ACA)
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