CREDIT AGRICOLE SA: third quarter and first nine months 2023 - Very
good results
VERY GOOD RESULTS |
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Q3 –
2023 |
CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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Stated |
Underlying |
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Stated |
Underlying |
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Revenues |
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€6,343m+19.2% Q3/Q3 |
€6,060m+13.4% Q3/Q3 |
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€9,249m+12.5% Q3/Q3 |
€8,847m+7.3% Q3/Q3 |
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Costs excl. SRF |
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-€3,376m +8.0% Q3/Q3 |
-€3,376m+8.3% Q3/Q3 |
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-€5,265m+6.5% Q3/Q3 |
-€5,265m+6.7% Q3/Q3 |
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Gross Operating Income |
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€2,967m+35.2% Q3/Q3 |
€2,684m+20.6% Q3/Q3 |
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€3,984m+21.5% Q3/Q3 |
€3,582m+8.2% Q3/Q3 |
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Cost of risk |
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-€429m +19.3% Q3/Q3 |
-€429m +19.3% Q3/Q3 |
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-€693m +9.0% Q3/Q3 |
-€693m +9.0% Q3/Q3 |
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Net income Group share |
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€1,748m+32.8 Q3/Q3 |
€1,520m+23.0% Q3/Q3 |
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€2,384m +21.0% Q3/Q3 |
€2,068m+9.3% Q3/Q3 |
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C/I ratio (excl. SRF) |
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53.2%-5.5 pp Q3/Q3 |
55.7%-2.6 pp Q3/Q3 |
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56.9% -3.2 pp Q3/Q3 |
59.5%-0.3 pp Q3/Q3 |
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Q3/Q3 changes are pro-forma according to IFRS 17
STRONG RESULTS AND HIGH PROFITABILITY
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Strong revenue growth (+13.4% Q3/Q3 underlying),
driven by all business lines:
- Revenues that
benefited from a continuous flow of partnerships and development
projects, mainly including, this quarter, the consolidation of the
European operations of RBC IS
- Progressive
adaptation of retail banking to the new interest rate environment
and stabilisation of the net interest margin, both in France –
still marked, however, by the slowdown in lending – and abroad;
deposits return to growth
- Sustained
activity in asset management, with strong inflows for all asset
classes and for joint ventures, and in Insurance, with positive net
inflows for unit-linked products and dynamic activity in property
& casualty and death & disability insurance
- High level Q3
revenues for CIB (corporate and investment banking), with a
positive performance in both capital markets and investment banking
(FICC) and structured finance and cash management
- Consumer finance
that benefited from the commercial momentum in automotive
financing, which partially offset the decrease in production in the
other French business sectors
- Costs
were contained in the inflationary environment, at +8.3%
Q3/Q3 (underlying excluding SRF), mainly due to scope effects
(consolidation of CA Auto Bank and RBC IS)
- A
cost/income ratio of 53.4% 9M-23 (underlying
excluding SRF), less than the MTP target
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RoTE (return on tangible equity) of 13.5% 9M-23
(underlying), reflecting high profitability
CONTINUOUS CAPITAL GENERATION
- CA S.A.
phased-in CET1 11.8%, in line with growth and distribution
aims
- GCA phased-in
CET1 17.5% (820 bps>SREP)
VERY SOLID ASSET QUALITY AND LIQUIDITY
PROFILE
- LCR 150.8% and
€419bn in liquidity reserves at Crédit Agricole Group
level
- Stock of
provisions for performing loans €20.9bn, coverage ratio 82.7% for
GCA
ENERGY TRANSITION
- Structuring of
the new
Crédit Agricole Transitions & Énergies
(CATE) business line and creation of the energy offering in the
territories
- Ongoing work on
the Net Zero commitments under the climate strategy and
announcement of a Climate Workshop, scheduled for 14 December
2023
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Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors “This quarter’s results are very good. The Group
therewith furthers its commitment to both enable French housing and
owning systems and to support long term societal changes.
I would like to thank
all our representatives and coworkers who act every day to
attend to cutsomers’ needs ” |
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Philippe Brassac,Chief Executive Officer of
Crédit Agricole S.A. “Very good results again
which imprint organically within the Group’s model”
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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 59.7% of
Crédit Agricole S.A. Please see the appendices to this
press release for details of specific items, which are restated in
the various indicators to calculate underlying income. All 2022
figures are presented on a pro forma basis under IFRS 17.
Crédit Agricole Group
Group activity
Commercial activity recorded a
slowdown in retail banking operations in France over this quarter,
offset by the positive results in the other business lines. In the
third quarter of 2023, gross customer capture
stood at 445,000 retail banking customers (versus +460,000 new
customers in the third quarter of 2022), while the customer
base grew by +82,000 customers1 (versus +105,000 customers
in the third quarter of 2022). More specifically, the Group
recorded +353,000 new Retail banking customers in France and
+92,000 new International retail banking customers (Italy and
Poland) over the quarter, and the customer base grew respectively
by +61,000 and +20,000 customers.
The slowdown in retail banking activity seen in
France materialized through a decrease in loan production in
retail banking in France. Thus, between the second
quarter of 2023 and the third quarter of 2023 loan production
decreased by -12% at the Regional Banks and -3.2% at LCL. In
consumer finance, production also decreased by
-2.1% compared to the third quarter of 2022, reflecting greater
selectivity in the loan application process, although automotive
production remained strong, increasing +6.7% compared to the third
quarter of 2022. Lastly, for CA Italia, loan production recovered
strongly, increasing by +19% in Italy compared with the second
quarter of 2023.
The slowdown in retail operations in France was
nevertheless offset by the positive results of the other business
lines. Indeed, Corporate and Investment banking
had its best first nine months in 2023 both in revenues and net
income, as well as a high level third quarter in 2023, with strong
growth in both capital markets and investment banking and in
structured finance and cash management. It continues to hold
leadership positions, ranking first in syndicated loans in France2,
second in green, social and sustainable bond issues3 in euros and
second in all bonds in euros worldwide2. Asset
management benefit from strong inflows in this quarter
(€13.7 billion), with a positive contribution from all asset
classes (medium-/long-term assets and treasury products) and joint
ventures. Insurance was also characterized by
positive net inflows in unit-linked products, with unit-linked
products representing 40.3% of gross inflows in this quarter; the
property and casualty insurance equipment rate increased to 43.1%
for the Regional Banks (+0.5 percentage point compared to the
third quarter of 2022), 27.6% for LCL (+0.5 percentage point)
and 18.3% for CA Italy (+2.2 percentage points); property
and casualty insurance revenues increased by +8.9% compared to the
third quarter of 2022; and death and disability insurance activity
was strong (revenues rose by +22% compared to the third quarter of
2022).
Lastly, the customer savings in the retail
banking balance sheet, amounting to €807 billion4, increased
again in this quarter, up +1.3% compared to June 2023 (compared
with +0.5% in June 2023 versus March 2023), comprising +1.4% for
the Regional Banks, +0.9% for LCL and 1.2% for CA Italy.
A series of self-financed acquisitions contributing to
revenue growth and delivering synergies
To support its revenue growth,
Crédit Agricole S.A. relies not only on its organic
growth drivers but also on acquisitions and external partnerships,
with the business lines acting as consolidator on the European
market. These acquisitions since 2019 have all been self-financed
and have generated cost and revenue synergies. Recent external
growth operations have proven successful, particularly Santander
Securities Services and KAS Bank in 2019, which expanded the
geographical scope of the asset servicing business line (CACEIS),
Sabadell Asset Management, which increased the distribution
network, Lyxor, which strengthened business expertise in asset
management, and Creval, which strengthened the competitive
positioning of retail banking in Italy, generating cost
synergies.
Since then, Crédit Agricole S.A. has
continued to carry out new acquisitions and forge new partnerships,
based on five main areas of development. First of all, private
banking and asset servicing increased in scale due to both the
transaction in progress with Degroof Petercam5 and the acquisition
in August 2023 of the European operations of RBC Investor Services.
Subsequently, the Specialised Financial Services division developed
a comprehensive mobility offering : via the joint venture Leasys,
created with Stellantis to become the European leader in long-term
car rental; 100% of CA Auto Bank was acquired, in order
to develop partnerships with smaller manufacturers and with
independent distributors; six European subsidiaries of ALD and
LeasePlan were acquired; and lastly, CA Mobility Services
was formed, to create 20 service offers by 2026, mainly through:
the acquisition of a minority stake in WATEA6, the creation of a
joint venture with Opteven7 and the acquisition of a stake in
HiFlow. At the same time, the insurance business line extended its
distribution network through new commercial partnerships: a
non-life and credit insurance distribution agreement in Italy
between Crédit Agricole Assurances and Banco BPM8 and a partnership
between Pacifica and Renault (Mobilize Financial Services) in car
insurance. Lastly, Crédit Agricole S.A. is structuring
its property services operations via the acquisition of Casino’s
property management activities, and is stepping up its
digitalisation and innovation thanks to its acquisition of a stake
in Worklife9 and, in payment services, its partnership with
Wordline10.
These operations support the growth in revenues
of Crédit Agricole S.A. Thus, the deals led with Creval, Lyxor,
Santander Securities Services, RBC Investor Services and the
integration of CA Auto Bank11 will generate a net banking income of
roughly €1.9 billion12 in 2025 with a cost to income ratio of
58%13.
Launch of a new business:
Crédit Agricole Transitions & Energies
Crédit Agricole S.A. is structuring
its new
Crédit Agricole Transitions & Energies
(CATE) business line, which presented its roadmap in October 2023.
CATE provides a global offer covering advisory services on energy
transition and the development of renewable energy in the French
regions, by supporting financing for transition and carbon-free
energy generation and supply projects.
Transition advisory services are dedicated to
supporting customers as they implement their energy and
environmental sobriety processes. CATE has also a range of
solutions delivered by R314 for corporates and public authorities,
and the “J’écorénove mon logement”15 platform for individual
customers.
The financing offering consists in providing a
comprehensive financial solution for all renewable energy
generation and energy efficiency projects with Unifergie and the
Group’s financing entities, as well as a financial and legal
engineering offering, and financing offerings in various areas of
sustainable energy (renewable energy, energy performance,
environment). By 2030, CATE aims to mobilise €19 billion in
financing provided by the entities of the
Crédit Agricole Group in France. CATE also aims to
invest €1 billion to strengthen the developers’ capital and
acquire production capacities.
Lastly, CATE will generate and supply
electricity from renewable sources locally for developers, local
governments and consumers. CATE is aiming for 2 GW of installed
production capacity from assets owned by the Group in 2028, and
500MWh of low-carbon electricity supply by 2026, equivalent to the
annual consumption of 196,000 people. This offering is delivered by
Selfee, in which CATE is the main shareholder. Selfee is an
electricity operator that enables the purchase via local supply
chains, at a local price, of electricity generated in the French
regions, Selfee acting as the only intermediary of the energy
producer.
Group results
In the
third quarter of 2023,
Crédit Agricole Group’s stated
net income Group share was
€2,384 million, up +21.0% compared to the
third quarter of 2022.
The specific items for the
quarter had a cumulative impact of +€317 million on net
income Group share and included +€298 million in
recurring accounting items and +€19 million in non-recurring
items. The recurring items mainly correspond to the reversal of the
home purchase savings provision of +€297 million
(+€38 million for LCL, +€171 million for the Corporate
Centre and +€88 million for the Regional Banks); the other
recurring items – the issuer spread portion of the FVA16 and
secured lending (+€2 million) and loan book hedging (-€1
million) – offset each other. The non-recurring items relate to the
ongoing reorganisation of the Mobility activities17 in the SFS
division (+€19 million).
Restated from these specific items,
Crédit Agricole Group’s underlying
net income Group share18 amounted to
€2,068 million, an increase of +9.3% compared
to third quarter 2022.
Crédit Agricole Group - stated and underlying results, Q3-23 and
Q3-22
m€ |
Q3-23stated |
Specific items |
Q3-23underlying |
Q3-22stated |
Specific items |
Q3-22underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
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Revenues |
9,249 |
402 |
8,847 |
8,222 |
(22) |
8,244 |
+12.5% |
+7.3% |
Operating
expenses excl. SRF |
(5,265) |
0 |
(5,265) |
(4,943) |
(9) |
(4,934) |
+6.5% |
+6.7% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross operating income |
3,984 |
402 |
3,582 |
3,280 |
(30) |
3,310 |
+21.5% |
+8.2% |
Cost of
risk |
(693) |
0 |
(693) |
(636) |
- |
(636) |
+9.0% |
+9.0% |
Equity-accounted entities |
37 |
(26) |
63 |
111 |
- |
111 |
(66.8%) |
(43.0%) |
Net income on
other assets |
69 |
61 |
9 |
6 |
- |
6 |
x 10.7 |
+32.2% |
Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Income before tax |
3,397 |
436 |
2,961 |
2,762 |
(30) |
2,792 |
+23.0% |
+6.0% |
Tax |
(810) |
(120) |
(691) |
(736) |
6 |
(742) |
+10.0% |
(7.0%) |
Net income
from discont'd or held-for-sale ope. |
2 |
- |
2 |
123 |
101 |
22 |
(98.7%) |
(92.4%) |
Net income |
2,588 |
317 |
2,272 |
2,149 |
77 |
2,071 |
+20.5% |
+9.7% |
Non
controlling interests |
(204) |
- |
(204) |
(178) |
2 |
(180) |
+14.9% |
+13.5% |
Net income Group Share |
2,384 |
317 |
2,068 |
1,971 |
79 |
1,892 |
+21.0% |
+9.3% |
Cost/Income ratio excl. SRF (%) |
56.9% |
|
59.5% |
60.1% |
|
59.8% |
-3.2 pp |
-0.3 pp |
In the third quarter of 2023, underlying
revenues totalled €8,847 million, up +7.3% compared to the
third quarter of 2022, driven by the Asset Gathering division
(+9.6%), which benefited from a rise in insurance revenues, the
Specialised Financial Services division (+26.2%), which included a
line-by-line consolidation of CA Auto Bank since the
second quarter of 2023, as well as the acquisition, this quarter17,
of the ALD and LeasePlan activities in six European countries.
Revenues from the International Retail Banking division increased
by +24.0% with a net interest margin stabilising but still
well-orientated, in Italy, Poland and Egypt. The revenues of the
French Retail Banking division (-3.2%) decreased due to the
increase in refinancing costs and customer resources. The Large
Customers division recorded an increase in revenues of +17.4%,
boosted by record revenues for CIB (+9% compared to the first nine
months of 2022).
Underlying operating expenses
excluding the SRF (Single Resolution Fund) were
-€5,265 million, up +6.7% compared to the
third quarter of 2022. This increase is mainly due to a
scope effect of -€178 million euros related to the
consolidation of CA Auto Bank within the Specialised
Financial Services division and the activities of RBC IS Europe
within the Asset Servicing division, and also due to the effect of
the increase in salary compensation, provisions for variable
compensation and IT investments and costs. Overall, the
underlying cost/income ratio excluding SRF was
59.5%, down -0.3 percentage points versus the third quarter of
2022, while underlying gross operating income came
in at €3,582 million, up +8.2% on the same period.
The underlying cost of credit
risk increased moderately, to -€693 million, an increase
of +9.0% compared to the third quarter of 2022, when it stood at
-€636 million. The expense of -€693 million in the third
quarter of 2023 consists of a write-back on performing loans
(Stages 1 and 2) for +€28 million (versus an addition of
-€209 million in the third quarter of 2022), due to the
transition to default of some loans, provisioning of proven risks
for - €724 million (Stage 3, compared to -€498 million in
the third quarter of 2022), the deterioration due to the increase
in proven risk on retail banking and consumer finance, and lastly a
write-back of +€3 million for other risks. 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 second quarter were updated, with a favourable
scenario (French GDP at +1% in 2023, +2.4% in 2024) and an
unfavourable scenario (French GDP at +0.1% in 2023 and -0.1% in
2024). The
cost of credit risk on outstandings19
over a rolling four-quarter period stood at
25 basis points, which is in line with the 25 basis
point assumption of the Medium-Term Plan. It stands at
24 basis points on a quarterly annualised basis20.
Underlying pre-tax income stood at
€2,961 million, a year-on-year increase of +6.0%. The
underlying pre-tax income included the contribution from
equity-accounted entities for €63 million
(down -43.0%, mainly due to the line-by-line consolidation of CA
Auto Bank, formerly FCA Bank) and net income on other assets, which
came to €9 million this quarter. The
underlying tax charge fell
-7.0% over the period. Underlying net
income before non-controlling interests was up +9.7% to
€2,272 million. Non-controlling interests rose +13.5%. Lastly,
underlying net income Group share was
€2,068 million, +9.3% higher than in the third
quarter of 2022.
Crédit Agricole Group - stated and underlying results,
9M-23 and 9M-22 |
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€m |
9M-23stated |
Specific items |
9M-23underlying |
9M-22stated |
Specific items |
9M-22underlying |
∆ 9M/9Mstated |
∆ 9M/9Munderlying |
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Revenues |
27,722 |
758 |
26,965 |
25,953 |
543 |
25,410 |
+6.8% |
+6.1% |
Operating
expenses excl.SRF |
(15,782) |
(18) |
(15,764) |
(15,021) |
(90) |
(14,931) |
+5.1% |
+5.6% |
SRF |
(620) |
- |
(620) |
(803) |
- |
(803) |
(22.8%) |
(22.8%) |
Gross operating income |
11,321 |
739 |
10,581 |
10,129 |
453 |
9,677 |
+11.8% |
+9.3% |
Cost of
risk |
(2,179) |
(84) |
(2,095) |
(2,139) |
(195) |
(1,944) |
+1.9% |
+7.7% |
Equity-accounted
entities |
190 |
(39) |
229 |
323 |
- |
323 |
(41.0%) |
(29.0%) |
Net income on
other assets |
107 |
89 |
18 |
41 |
- |
41 |
x 2.6 |
(56.0%) |
Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Income before tax |
9,438 |
705 |
8,733 |
8,354 |
258 |
8,096 |
+13.0% |
+7.9% |
Tax |
(2,293) |
(180) |
(2,113) |
(2,211) |
(117) |
(2,094) |
+3.7% |
+0.9% |
Net income from
disconted or held-for-sale operations |
7 |
- |
7 |
148 |
94 |
53 |
(95.0%) |
(86.2%) |
Net income |
7,153 |
525 |
6,628 |
6,291 |
235 |
6,056 |
+13.7% |
+9.4% |
Non controlling
interests |
(619) |
(0) |
(619) |
(539) |
13 |
(552) |
+14.7% |
+12.1% |
Net income Group Share |
6,534 |
525 |
6,009 |
5,752 |
248 |
5,504 |
+13.6% |
+9.2% |
Cost/Income ratio excl.SRF (%) |
56.9% |
|
58.5% |
57.9% |
|
58.8% |
-0.9 pp |
-0.3 pp |
In the first nine months of
2023, stated net income Group share amounted to
€6,534 million, compared with €5,752 million in the first nine
months of 2022, an increase of +13.6%.
Specific items in the first nine months
of 2023 had a positive impact of
+€525 million on stated net income Group
share and comprise +€262 million in recurring accounting items
and +€263 million in non-recurring items. The recurring items
mainly correspond to the reversal of the home purchase savings
provision for +€297 million, already mentioned above, as well
as the accounting volatility items of the Large Customers division
(the DVA for -€15 million and loan book hedging for
-€19 million). The non-recurring items are related to the
reorganisation of the Mobility activities21 of the Specialised
Financial Services division (+€159 million) and the reversal
of provision for the Cheque Image Exchange fine
(+€104 million).
Excluding these specific items,
underlying net income Group share
amounted to €6,009 million, up +9.2% compared
to the first nine months of 2022.
Underlying revenues totalled
€26,965 million, up +6.1% compared
to the first nine months of 2022. This increase was due to
very high revenues across all the business lines in the
Asset Gathering division, the line-by-line
integration of CA Auto Bank in the Specialised
Financial Services division, a very high level of revenues
in the Large Customers division and the higher net
interest margin in the International Retail
Banking division; by contrast, revenues in the
French Retail Banking division were affected by
the lower interest margin.
Underlying operating expenses
excluding SRF amounted to -€15,764 million, up +5.6% compared
with the first nine months of 2022, mainly including the scope
effect relating to the line-by-line consolidation of
CA Auto Bank within the Specialised Financial Services
division since the second quarter of 2023 and the consolidation of
the operations of RBC IS Europe within the Asset Servicing division
in the third quarter of 2023. The remainder of the increase was due
to the rise in compensation in an inflationary environment, as well
as the increase in IT expenses. The underlying cost/income
ratio excluding SRF was 58.5%, down -0.3 percentage points
compared to the first nine months of 2022. The SRF totalled
-€620 million in 2023, down -22.8% compared to 2022.
Underlying gross operating
income totalled €10,581 million, up +9.3% compared to
the first nine months of 2022.
The underlying cost of risk was
-€2,095 million (including -€193 million in cost of risk
on performing loans (Stages 1 and 2), -€1,885 million in cost
of proven risk and -€16 million in other risks), i.e. an
increase of +7.7% compared to the first nine months of 2022.
As at 30 September 2023, risk indicators confirm
the high quality of Crédit Agricole Group’s
assets and risk coverage level. The diversified loan book
is mainly geared towards home loans (46% of gross outstandings) and
corporates (32% of gross outstandings). Loan loss reserves amounted
to €20.9 billion (€11 billion for Regional Banks), 42% of
which represented provisioning of performing loans (48% for
Regional Banks). The loan loss reserves for performing loans have
increased at Group level by +€3.3 billion since the fourth
quarter of 2019. The prudent management of these loan loss reserves
has enabled the Crédit Agricole Group to have one of the
best22 overall coverage ratios for doubtful loans (82.7% at the end
of September 2023) among the largest European banks.
Underlying pre-tax income
before discontinued operations and non-controlling interests
amounted to €8,733 million, up +7.9% compared to the first
nine months of 2022. The tax charge was €2,113 million, up
slightly, by +0.9%, with an underlying effective tax rate of
24.8%.
Underlying net income Group
share was €6,009 million, up +9.2% compared to the
first nine months of 2022.
NB: Unless mentioned otherwise, the results by
business will be commented on the basis of the reported
results.
Regional banks
Over the quarter, gross customer capture
was up, with +268,000 new customers, while the
customer base grew by +44,000 new customers. The number of
customers using digital tools increased, with “Ma
Banque” application reaching now 9.0 million23 users and the
number of online signatures24 grew up by +22% between the third
quarter of 2022 and the third quarter of 2023. The strong
performance of the offer “Ma Banque Au Quotidienˮ for
individual customers has led to an increase and improvement
of the card stock (+2.0% year-on-year, with a share of
14.4% for Premium cards). The equipment rate for property
and casualty insurance was 43.1% at the end of September
2023, up +0.5 percentage point compared to September
2022).
Loan production was down -25.0%
compared to the third quarter 2022, and -11.9% compared to the
second quarter 2023. The decline is sharp in home loans (-36.1%
compared to the third quarter of 2022), but it remains lower than
the market25. The home loan production rate increased
+48 basis points compared to the second quarter of 2023, with
the average rate for 20-25 years lending reaching 3.99% in early
October 2023. Loan outstandings reached
€644.9 billion at the end of September 2023 (+3.5% compared to
the end of September 2022 and +0.4% compared to the end of June
2023), driven by the corporate market (+6.0% compared to the third
quarter of 2022).
Total customer assets rose by
+3.3% year on year to €871.9 billion at the end of September
2023. This growth was mainly driven by on-balance sheet
deposits, which reached €586.9 billion at the end of
September 2023, up +2.5% compared to the end of September 2022.
Compared with the second quarter of 2023, on-balance sheet deposits
increased by +1.4%, due to an increase of +15.6% in term deposits.
Finally, demand deposits and passbook accounts were stable over the
quarter. Off-balance sheet customer assets reached
€284.9 billion at the end of September 2023, up +5.0%
year-on-year. Off-balance sheet deposits were positive overall in
the quarter, driven by net inflows of +€0.7 billion into
securities.
In the third quarter of 2023, the
Regional Banks’ stated revenues, including the SAS Rue La Boétie
dividend26, amounted to €3,291 million, up +0.8%
compared to the third quarter of 2022. The net interest margin
decreased by -17.6% (excluding the reversal of home purchase
savings provisions of €118 million), due to the increase in
refinancing costs, partially offset by the increase in loan yields
and macro-hedging. The net interest margin increased, albeit only
slightly, between the second and third quarters of 2023 (excluding
the reversal of the home purchase savings provision). Portfolio
revenues increased in the third quarter of 2023, reflecting market
effects that were more favourable than in the third quarter of
2022. Fee and commission income remained on a positive trend, at
+4.7%, thanks to strong momentum in payment instruments and
insurance. Operating expenses increased +4.3% over
the period, largely due to the increase in employee expenses.
Gross operating income decreased by -6.7%.
The cost of risk decreased by
-5.8% compared to the third quarter of 2022, to -€257 million.
The net income Group share of the Regional Banks
was €565 million in the third quarter of 2023, down -3.8%
compared to the third quarter of 2022.
The Regional banks’ contribution to the
results of Crédit Agricole Group amounted to €587 million
(-6.5%) in stated net income Group share in the third
quarter of 2023, with revenues of €3,345 million (+0.3%) and a
cost of risk of -€254 million (-6.8%).
In the first nine months of
2023, revenues including the SAS Rue La Boétie
dividend were down (-4.9%) compared to the first nine
months of 2022. Operating expenses rose by +3.5%, and gross
operating income consequently fell by -16.3% in the first
nine months of 2023. Finally, with a cost of risk
up slightly by +0.4%, the Regional banks’ net income Group
share, including SAS Rue La Boétie dividend, amounted to
€3,037 million, down -15.8% compared to the first nine months
of 2022.
The Regional banks’ contribution to the
results of Crédit Agricole Group in the first nine months
of 2023 amounted to €1,420 million (-34.5%) in stated
net income Group share, with revenues of €10,032 million
(-6.8%) and a cost of risk of -€831 million (+0.2%).
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of
Directors, chaired by Dominique Lefebvre, met on 7 November
2023 to examine the financial statements for third quarter
2023.
Crédit Agricole S.A. - stated and underlying results, Q3-23 and
Q3-22
€m |
Q3-23stated |
Specific items |
Q3-23underlying |
Q3-22stated |
Specific items |
Q3-22underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
Revenues |
6,343 |
284 |
6,060 |
5,321 |
(22) |
5,343 |
+19.2% |
+13.4% |
Operating
expenses excl.SRF |
(3,376) |
0 |
(3,376) |
(3,127) |
(9) |
(3,118) |
+8.0% |
+8.3% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross
operating income |
2,967 |
284 |
2,684 |
2,195 |
(30) |
2,225 |
+35.2% |
+20.6% |
Cost of
risk |
(429) |
0 |
(429) |
(360) |
- |
(360) |
+19.3% |
+19.3% |
Equity-accounted
entities |
23 |
(26) |
50 |
102 |
- |
102 |
(77.2%) |
(51.2%) |
Net income on
other assets |
69 |
61 |
8 |
5 |
- |
5 |
x 12.6 |
+52.8% |
Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Income
before tax |
2,630 |
318 |
2,312 |
1,942 |
(30) |
1,973 |
+35.4% |
+17.2% |
Tax |
(633) |
(89) |
(544) |
(533) |
6 |
(539) |
+18.8% |
+0.9% |
Net income from
discont'd or held-for-sale ope. |
2 |
- |
2 |
123 |
101 |
22 |
n.m. |
n.m. |
Net
income |
1,999 |
229 |
1,770 |
1,533 |
77 |
1,455 |
+30.4% |
+21.6% |
Non-controlling
interests |
(251) |
(2) |
(250) |
(217) |
2 |
(219) |
+15.8% |
+13.9% |
Net
income Group Share |
1,748 |
227 |
1,520 |
1,316 |
79 |
1,236 |
+32.8% |
+23.0% |
Earnings
per share (€) |
0.53 |
0.07 |
0.46 |
0.41 |
0.03 |
0.38 |
+30.1% |
+19.5% |
Cost/Income ratio excl. SRF (%) |
53.2% |
|
55.7% |
58.8% |
|
58.4% |
-5.5 pp |
-2.6 pp |
In the third quarter of
2023, Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,748 million,
an increase of +32.8% compared to the third quarter of
2022.
Specific items for the quarter
had a cumulative impact of +€227 million on net income Group
share, and included recurring accounting items for
+€208 million and non-recurring items for +€19 million.
The recurring items mainly correspond to the reversal of the home
purchase savings provision of +€208 million (+€37 million
for LCL and +€171 million for the Corporate Centre); the other
recurring items – the issuer spread portion of the FVA27 and
secured lending (+€2 million) and loan book hedging (-€1
million) – offset each other. The non-recurring items relate to the
ongoing reorganisation of the Mobility activities28 in the SFS
division (+€19 million).
Excluding specific items,
underlying net income Group share29 stood at
€1,520 million, a +23.0% increase compared to
the third quarter of 2022.
Underlying revenues reached
€6,060 million, up +13.4% compared to the third quarter of
2022, driven by growth in revenues across all business lines. The
Asset Gathering division recorded an increase of +10.2%, mainly due
to higher Insurance revenues (+19.4%), which were adversely
affected by weather events in the second quarter of 2022. The
revenues of the Specialised Financial Services
division increased by +26.2% (+26.3% underlying), benefiting from
the consolidation of CA Auto Bank30 and the acquisition
of ALD/LeasePlan activities in this quarter. The revenues of the
Large Customers division increased by +17.4%,
thanks to a very good performance by CIB (+9.2%), particularly in
FICC (+25.6%) and revenues from the Asset Servicing division
(+51.5%), benefiting from the consolidation of the European
activities of RBC IS Europe31. The revenues of the
French Retail Banking division improved slightly,
by +0.4%32, reflecting the stabilisation of the net interest margin
in this quarter. Lastly, the revenues of the International
Retail Banking division increased by +24.1%, benefiting
from the increase in the net interest margin for CA Italy
(+48%), as well as for Poland and Egypt (+81%)33.
In addition, this quarter has been the subject
of Crédit Agricole S.A.'s net interest margin34 (NIM) evolution
since the first quarter of 2022, with a specific focus on Retail
Banking activities. The positive increase in overall NIM in the
context of rising interest rates is linked to Crédit Agricole
S.A.'s diversified model. Indeed, the decline in the MNI of Retail
Banking in France (LCL) related to the increase in the cost of
resources and partly cushioned by the effects of macro hedging, was
more than offset by the increase in the International Retail
Banking (IRB) NIM given the asset structure.
Underlying operating expenses
amounted to -€3,376 million, up +8.3% compared to the third
quarter of 2022, i.e. an increase of -€258 million. This
change includes a scope effect of -€178 million35 related to
the consolidation of CA Auto Bank within the Specialised
Financial Services division and the activity of
RBC IS Europe within the Asset Servicing division. The
remainder is mainly attributable to the payroll increase of
-€93 million (primarily corporate and investment banking,
retail banking in Italy and LCL), provisions for variable
compensation and bonuses of -€58 million (mainly corporate and
investment banking) and IT investments of -€26 million (mainly
for large customers). The expenses also benefited from a positive
tax effect of +€43 million year on year.
The underlying cost/income ratio
excluding SRF in third quarter 2023 thus stood at 55.7%,
an improvement of -2.6 percentage points compared to
third quarter 2022.
Underlying gross operating
income stood at €2,684 million, up +20.6%.
As at 30 September 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 (27% of gross outstandings) and
corporates (42% of Crédit Agricole S.A. gross
outstandings). The Non-Performing Loans ratio increased slightly
compared with the previous quarter and remained low at 2.7%
(+0.1 percentage point). The coverage ratio36, which was high
at 70.7%, decreased slightly, by -0.7 percentage points, over
the quarter. Loan loss reserves amounted to
€9.8 billion for Crédit Agricole S.A., an increase
of +1.2% compared to end June 2023. Of those loan loss reserves,
35% 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 credit
risk decreased to -€429 million, an increase of 19.3%
compared to the third quarter of 2022, when it stood at -€360
million. The expense of -€429 million in the third quarter of
2023 consists of a write-back on performing loans (Stages 1 and 2)
for €59 million (versus an addition of €42 million in the
third quarter of 2022), due to the transition to default of some
loans, provisioning of proven risks for
-€487 million (Stage 3, compared to -€377 million in
the third quarter of 2022), the deterioration due to the increase
in proven risk on retail banking and consumer finance, and lastly
an addition of €1 million for other risks. 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 second quarter were updated, with a favourable
scenario (French GDP at +1% in 2023, +2.4% in 2024) and an
unfavourable scenario (French GDP at +0.1% in 2023 and -0.1% in
2024). The cost of risk relative to outstandings on a four quarter
rolling basis37 stood at 33 basis points, i.e. in line
with the assumption of the Medium-Term Plan of 40 basis
points and 33 basis points on an annualised quarterly
basis38.
The underlying contribution of
equity-accounted entities came to €50 million
(-51.2% compared to the third quarter of 2022) and net
income on other assets was €8 million
(+€3 million compared to the third quarter of 2022); the
changes in these two income statement categories were impacted by a
scope effect with the line-by-line consolidation of
CA Auto Bank (formerly FCA Bank) within the SFS
division.
Underlying pre-tax income stood
at €2,312 million, an increase of +17.2% compared to the third
quarter of 2022.
The underlying effective tax
rate was 24% and the underlying tax charge was
-€544 million, stable compared to the third quarter of 2022.
Net income from discontinued or held-for-sale
operations was €2 million, down -€20 million
compared to the third quarter of 2022.
Underlying net income before
non-controlling interests increased by +21.6% to
€1,770 million. Non-controlling interests
amounted to -€250 million, up +13.9% year on year.
Underlying
net income Group share was up by +23.0%
compared to third quarter 2022 at €1,520 million.
Underlying earnings per share (pro-forma
IFRS 17) in the third quarter of 2023 reached €0,46,
increasing by +19.5% compared to the third quarter of 2022.
Crédit Agricole S.A. - stated and underlying results, 9M-23 and
9M-22
|
|
|
|
|
|
|
|
|
m€ |
9M-23stated |
9M-22stated |
∆ 9M/9Mstated |
9M-23underlying |
9M-22underlying |
∆ 9M/9Munderlying |
9M-23stated |
9M-22stated |
Revenues |
19,140 |
16,525 |
+15.8% |
18,542 |
16,394 |
+13.1% |
19,140 |
16,525 |
Operating
expenses excl.SRF |
(9,922) |
(9,383) |
+5.8% |
(9,904) |
(9,293) |
+6.6% |
(9,922) |
(9,383) |
SRF |
(509) |
(647) |
(21.3%) |
(509) |
(647) |
(21.3%) |
(509) |
(647) |
Gross
operating income |
8,709 |
6,495 |
+34.1% |
8,129 |
6,454 |
+25.9% |
8,709 |
6,495 |
Cost of
risk |
(1,338) |
(1,303) |
+2.7% |
(1,253) |
(1,108) |
+13.1% |
(1,338) |
(1,303) |
Equity-accounted
entities |
136 |
291 |
(53.1%) |
175 |
291 |
(39.9%) |
136 |
291 |
Net income on
other assets |
102 |
26 |
x 3.9 |
13 |
26 |
(48.7%) |
102 |
26 |
Change in value
of goodwill |
- |
- |
n.m. |
- |
- |
n.m. |
- |
- |
Income
before tax |
7,609 |
5,509 |
+38.1% |
7,064 |
5,663 |
+24.7% |
7,609 |
5,509 |
Tax |
(1,832) |
(1,483) |
+23.5% |
(1,682) |
(1,473) |
+14.2% |
(1,832) |
(1,483) |
Net income from
discont'd or held-for-sale ope. |
7 |
147 |
n.m. |
7 |
53 |
n.m. |
7 |
147 |
Net
income |
5,785 |
4,174 |
+38.6% |
5,389 |
4,244 |
+27.0% |
5,785 |
4,174 |
Non controlling
interests |
(771) |
(651) |
+18.5% |
(769) |
(664) |
+15.8% |
(771) |
(651) |
Net
income Group Share |
5,014 |
3,523 |
+42.3% |
4,620 |
3,580 |
+29.1% |
5,014 |
3,523 |
Earnings
per share (€) |
1.53 |
1.08 |
+41.7% |
1.40 |
1.10 |
+27.4% |
1.53 |
1.08 |
Cost/Income ratio excl.SRF (%) |
51.8% |
56.8% |
-4.9 pp |
53.4% |
56.7% |
-3.3 pp |
51.8% |
56.8% |
Over the first nine months of
2023, stated net income Group share was
€5,014 million, up +42.3% compared to the first nine months of
2022.
Specific items in the first nine months
of 2023 had a positive impact of
+€394 million on stated net income Group
share, and comprise +€174 million in recurring accounting
items and +€220 million in non-recurring items. The recurring items
mainly correspond to the reversal of the home purchase savings
provision for +€208 million, already mentioned above, as well
as the accounting volatility items of the Large Customers division
(the DVA for -€15 million and loan book hedging for
-€19 million). The non-recurring items related to the
reorganisation of the Mobility activities39 of the Specialised
Financial Services division (+€159 million) and the reversal
of provision for the Cheque Image Exchange fine
(+€62 million).
Excluding specific items,
underlying net income Group share
reached €4,620 million, up
+29.1% compared to the first nine months of
202240.
Underlying earnings per share stood at
€1.4 per share for the first nine months 2023, up
+27.4% compared to first nine months of
2022.
Underlying
RoTE41, which is calculated on the basis
of an annualised underlying net income Group share42 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 13.5% for the first nine months of 2023,
up 1 percentage point from the first nine months of 2022
(12.5%).
Underlying revenues were
up +13.1% compared to the first nine months of
2022, driven by all of the business lines. Underlying
operating expenses excluding SRF registered a
limited increase of +6.6%. The cost/income ratio excluding SRF was
53.4%, an improvement of 3.3 percentage points compared to the
first nine months of 2022. The SRF for the period came to
-€509 million, a decrease of -21.3% compared to the first nine
months of 2022. Underlying gross operating
income totalled €8,129 million, up +25.9% compared to
the first nine months of 2022. The cost of risk
increased by +13.1% in the period, to -€1,253 million, versus
--€1,108 million in the first nine months of 2022. Lastly,
the results of the equity-accounted entities
decreased by -39.9%, due to the line-by-line consolidation of
CA Auto Bank since the second quarter of 2023.
Analysis of the activity and the results of
Crédit Agricole S.A.’s divisions and business
lines
Activity of the Asset Gathering division
In the third quarter of 2023, assets under
management in the Asset Gathering (AG) division stood at
€2,492 billion, up +0.4% compared to the end of June 2023,
thanks to net inflows, as the market effect was unfavourable in
this quarter (-€3.1 billion). Net inflows for the quarter were
positive, amounting to +€13.0 billion for the division, driven
by net inflows of +€13.7 billion for Amundi, while net inflows were
a negative -€1.3 billion for savings/retirement. Over the year,
assets under management also rose by +3.7% due to a positive market
effect, as year-on-year net inflows were strong
(+€19.8 billion) and boosted by strong inflows into
unit-linked bond products. Excluding double counting, assets under
management stood at €2,224 billion at 30 September 2023,
up +4.7% compared to 30 September 2022.
The Insurance activity
(Crédit Agricole Assurances) generated
third-quarter premium income of €7.0 billion, down -2.5% compared
to third quarter 2022, with the rise in the premium income from
Property & Casualty and Death & Disability/Creditor/Group
insurance not compensating the drop in the premium income of
savings/retirement. Premium income for the first nine months of
2023 came in at €27.7 billion, up +3.4% compared to first nine
months 2022 at constant scope (excluding La Médicale).
In Savings/Retirement, premium
income was €19.4 billion at end September 2023, up +1.4% on the
first nine months of 2022. Gross inflows amounted to €4.6 billion
this quarter (-8.0% compared to the third quarter of 2022), with
the unit-linked share growing by 2.5 percentage points compared to
the third quarter of 2022 to 40.3%. Net inflows were negative at
-€1.3 billion this quarter; the positive net inflows from
unit-linked contracts (+€0.4 billion) were unable to offset
the net outflows of the euro funds (-€1.7 billion).
Assets (savings, retirement and
death and disability) stood at €324.3 billion, up year-on-year
by +€6.2 billion, i.e. +2.0%. Unit-linked contracts stood at
27.6% of assets, up +2.8 percentage points year on year,
buoyed by the successful marketing of unit-linked bond products and
favourable financial markets.
Property and casualty insurance
activity was dynamic, with premium income of €1.1 billion in
the third quarter of 2023, up +8.9% compared to third quarter 2022.
At the end of September 2023, the portfolio of property and
casualty policies totalled nearly 15.8 million43, a +3.6% increase
over one year. The equipment of individual customers in the banking
networks of Crédit Agricole Group increased compared to
end September 2022 for all networks: 43.1%, or +0.5 percentage
point for Regional Banks, 27.6%, or +0.5 percentage point for
LCL, and 18.3% for CA Italy including Creval’s customer base,
or +2.2 percentage points. The combined ratio stood at
95.2%44, an improvement of 5.0 percentage points year-on-year, as
the third quarter of 2022 had been heavily impacted by
weather-related claims.
In Death & Disability/Creditor/Group
insurance, premium income for the third quarter of 2023
stood at €1.3 billion, up +10.9% from the third quarter of
2022, thanks to the strong growth of premium income in death &
disability (up +21.8%) and group insurance. The premium income of
creditor insurance was up by +7.5% between the third quarter of
2023 and third quarter 2022, driven by international single
premiums (Italy in particular) and the rise in Regional Banks/LCL
backing rates.
The third quarter was marked by a context of
risk aversion, with weak flows on the asset management market in
Europe45. Against this backdrop, Asset Management
(Amundi) posted strong net inflows, in particular for
treasury and bond products, passive management and Asia, in both
the Retail and Institutional segments.
Assets under management reached
€1,973 billion at 30 September 2023, up +0.6% compared to 30
June 2023. Year-on-year, outstandings rose by +4.1% compared to 30
September 2022.
By customer segment, Retail
recorded positive inflows of +€2.0 billion, marked
as in previous quarters by a high level of risk aversion. These
reflect high inflows in treasury products(+€2.7 billion) and,
conversely, limited outflows in MLT assets46 (-€0.7 billion),
and break down as follows by type of customer:
- Third-party
distributors (+€2.1 billion) recorded strong activity in
ETFs/index funds as well as treasury products;
- Partner
networks excluding Amundi BOC WM (+€0.3 billion) continue
to capitalise on the success of the structured products and Buy
& Watch bond funds, and recorded a renewed interest in treasury
products;
- in
China, Amundi BOC WM recorded net
outflows (-€0.5 billion), as the confirmed
ramp-up of the new fund offer was unable to offset the maturing
term funds this quarter.
The Institutional segment recorded
strong inflows, at
+€9.3 billion, especially in MLT
assets46(+€8.5 billion), including two large, low-margin
mandates with institutional investors, one in equity index
solutions and another one in bond solutions. On the other hand, CA
& SG Insurers continued their redemptions (-€3.1billion),
linked, as in previous quarters, to the withdrawals of traditional
life insurance policies by their clients. Profit-taking in the
Employee & Retirement Savings business (net outflows of -€0.9
billion) was also noteworthy, as employees of issuers whose shares
had risen significantly in previous months sold their employee
share ownership funds.
Lastly, the
JVs47 recorded inflows of +€2.4
billion, thanks to the continued development of the Indian JV, SBI
MF (+€2.0bn, of which +€3.4bn in MLT assets46) and the
stabilisation of the Chinese JV ABC-CA (at breakeven overall, but
with inflows of +€0.3bn excluding the planned run-off of assets for
the Channel Business activity, which is being phased out and low
margin); the other JVs also posted positive net inflows
(+€0.4bn).
In Wealth
management48, total
assets under management (CA Indosuez Wealth Management and LCL
Private Banking) amounted to €194.5 billion at the end of September
2023 (including €133.0 billion for Indosuez Wealth Management), and
were stable compared to the end of June 2023, as the positive net
inflows were offset by a negative market effect.
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 pro forma IFRS 17
data.
In the third quarter of 2023,
Asset Gathering division generated revenues of
€1,656 million, up +10.2% compared to the third quarter of
2022, with a very high level of revenues across all of the
division’s business lines, in Insurance, Asset Management and
Wealth Management. Costs excluding SRF were stable at +0.8%. Thus,
the cost/income ratio excluding SRF stood at 43.4%, down
-4.1 percentage points compared to the third quarter of
2022. Gross operating income stood at €937 million, up +18.8%
compared to the third quarter of 2022. Taxes totalled
-€221 million, up +4.5%. Net income Group
share of Asset Gathering division stood at
€621 million, up +2.3% compared to third quarter 2022 (+22.8%
excluding the gain on the disposal of La Médicale booked in the
third quarter of 2022 for +€101 million). Net income Group share
increased between the third quarter of 2023 and the third quarter
of 2022, across all of the division’s business lines: asset
management (+5.2%), insurance (+0.6% at constant scope and +34.0%
excluding the gain on the disposal of La Médicale booked in the
third quarter of 2022) and wealth management (+10.3%).
Over the first nine months of
2023, Asset Gathering division generated
revenues of €5,133 million, up +20.9%
compared to the first nine months of 2022, with a positive
contribution driven by all business lines. Costs excluding SRF were
stable (+0.5%). As a result, the cost/income ratio excluding SRF
stood at 41.8%, down -8.5 percentage points compared to
the first nine months of 2022. Gross operating income stood at
€2,979 million, an increase of +41.9% compared to the first
nine months of 2022. Taxes totalled -€699 million, up +30.1%.
The net income Group share of the Asset
Gathering division stood at €1,996 million, up by +39.8%
compared to first nine months 2022, for all the division’s business
lines: asset management (+10.3%), insurance (+57.7%) and wealth
management (+43.0%).
Over the first nine months of 2023, the Asset
Gathering division contributed by 38% to the underlying net income
Group share of the Crédit Agricole S.A. core businesses
(excluding Corporate Centre division) and 27% to underlying
revenues excluding the Corporate Centre division.
As at 30 September 2023, equity allocated to the
division amounted to €12.9 billion, including
€11.1 billion for Insurance, €1.3 billion for Asset
management, and €0.5 billion for Wealth management. The
division’s risk weighted assets amounted to €50.7 billion,
including €31.8 billion for Insurance, €13.2 billion for
Asset management and €5.8 billion for Wealth management.
The underlying
RoNE (return on normalised equity) stood at 24.2%
at 30 September 2023.
Insurance results
In third quarter 2023, insurance
revenues amounted to €643 million, up +19.4%
from third quarter 2022 proforma IFRS 17.
This quarter’s revenues were made up in
particular of savings/retirement (€398 million)49, personal
protection (€136 million)50 and property and casualty insurance
(€72 million)51.
Gross operating income came to
€562 million and tax to -€131 million. As a result, the
net income Group share was €411 million, up
+0.6% compared to the third quarter of 2022. Excluding the gain on
La Médicale of +€101 million recorded in third quarter 2022,
net income Group share was up +34%.
The contractual service margin (CSM) was €23.2
billion at 30 September 2023, up +6.5% compared to 31 December
2022; the CSM was down slightly this quarter in relation to the
rise in interest rates and slowdown in production in
savings/retirement.
Revenues from insurance in the first
nine months of 2023 amounted to €2,022 million, up +56.9%
compared with the first nine months of 2022, and up +17.5% under
the IFRS 1752 run rate, mainly due to a base effect in 2022
(investment management decisions implemented at the end of 2022,
i.e. segregation of equity and desensitisation of the portfolio,
were not taken into account in the IFRS 17 pro-forma), a decline in
the markets in 2022, and a high level of weather-related claims in
the second quarter of 2022. Gross operating income was up +68.5%
compared to the first nine months of 2022. Finally, the tax charge
for the first nine months of 2023 rose by +42.0%. In all, net
income Group share reached €1,318 million, up by +57.7%
compared to the first nine months of 2022.
Insurance contributed by 25% to the underlying
net income Group share of the Crédit Agricole S.A. core
businesses (excluding the Corporate Centre division) at end
September 2023 and by 11% to their underlying revenues.
Asset management results
In the third quarter of 2023,
revenues totalled €760 million, up +3.0% compared
with the third quarter of 2022, thanks to the good resilience of
fee and commission income and the return to positive financial
results, despite a low level of performance fees. Operating
expenses excl. SRF were particularly well under control at
-€433 million, stable compared to the third quarter of 2022. As a
result, the cost/income ratio excluding SRF was
57.0%. Gross operating income increased by +7.0%
compared to the third quarter of 2022. The contribution from
equity-accounted entities, comprising the contribution from the
Amundi joint ventures, stood at €24 million, up +2.0% from the
third quarter of 2022, while the tax charge amounted to
-€80 million, up +7.5%. Lastly, net income Group
share increased by +5.2% to €178 million.
Over the first nine months of
2023, revenues increased by +2.2% in
asset management, driven, like for the quarter, by net financial
and other income (€49 million vs. -€40 million over the first
nine months of 2022) and the revenues of Amundi Technology (+€25.8%
at €42 million); net management fees were down slightly but
not as much as average assets under management excluding JVs, at
-1.3% vs. -1.9%, reflecting resilient margins thanks to a
favourable client mix; performance fees dropped more significantly,
however, by -17.2% (€89 million vs. €108 million), reflecting the
cautious investment policy for risky assets.
Operating expenses excluding SRF rose by +1.6%,
excluding the impact of Lyxor integration costs recorded in the
first nine months of 2022 (-€59 million before tax). The
cost/income ratio excluding SRF stood at 55.8%, down
-2.9 percentage points compared to the first nine months
of 2022. As a result, gross operating income was
up +9.6% compared to the first nine months of 2022. The net income
of equity-accounted entities increased by +13.9%. All in all, net
income Group share stood at €566 million, an increase of
+10.3%.
Asset management contributed 11% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) at end September 2023 and by
12% to their underlying revenues.
Wealth management
results53
Revenues from wealth management
amounted to €253 million in the third quarter of 2023, up +12.1%
from the third quarter of 2022, boosted by the rise in interest
rates, which had a positive impact on the interest margin, which
increased by +33% between the third quarter of 2023 and the third
quarter of 2022. Costs excluding SRF amounted to
€204 million, up +7.1%, primarily impacted by the rise in
employee expenses. The cost/income ratio fell by
-3.8 percentage points over three months to 80.5%. Gross operating
income, excluding SRF, rose +38.9% to €49 million. Net
income Group share amounted to €32 million, up +10.3%
compared to the third quarter of 2022.
Over the first nine months of 2023, wealth
management’s revenues rose sharply by +15.5% compared the first
nine months of 2022, to reach €776 million. Costs excluding
SRF were up +7.1%. Gross operating income was therefore up +63.2%
at €165 million. Thus, net income Group share increased by
+43.0% to €112 million for the first nine months of 2023.
Wealth management contributed 2% of
Crédit Agricole S.A.’s business lines underlying net
income Group share. (excluding the Corporate Centre division)
at end September 2023 and by 4% to their underlying
revenues.
Activity of the Large Customers division
Corporate and Investment banking
(CIB) confirmed its momentum in third quarter 2023, while
for asset servicing, the quarter was marked by the
consolidation of RBC IS Europe.
Underlying
revenues54 from Corporate and
Investment banking (CIB) were up +9.2% compared to the
third quarter of 2022 to stand at €1,415 million. This
increase was driven by Capital Markets and Investment
Banking, with underlying revenues of €660 million, up
+26.8% compared with the third quarter of 2022, thanks to the very
good results for FICC (+25.6% over the period) boosted in
particular by an excellent performance for structured products and
securitisation, against a backdrop of rising interest rates. In
investment banking, the third quarter was marked by a lacklustre
M&A market offset by a good structured equities activity.
Underlying revenues from Financing activities were
down -2.7% compared to the third quarter of 2022 to stand at
€755 million. The good performance of structured finance
(+2.4% compared with third quarter 2022), notably for project and
infrastructure financing, did not offset the decline of commercial
banking (-5.3% vs. third quarter 2022) in the Corporate &
Leverage Finance activity, and despite the strong International
Trade & Transaction Banking activity buoyed by cash
management.
The Corporate and Investment Bank posted
leading positions in syndicated loans (No. 1 in
France55 and No. 2 in EMEA55) and for bond issues (No. 2 for All
bonds in EUR Worldwide55 and No. 2 for Green, Social &
Sustainable bonds in EUR56). Average regulatory
VaR stood at €15.6 million in the third quarter of
2023, a decrease from the €17.9 million recorded in the second
quarter of 2023, reflecting changes in positions and the financial
markets. It remained at a level that reflected prudent risk
management.
In Asset servicing (CACEIS),
the quarter was marked by the consolidation of RBC Investor
Services Europe following the finalisation of the acquisition of
the activities on 3 July 2023. Uptevia, the 50/50 joint venture
combining the issuer services business lines57 of CACEIS and BNP
Paribas, has been accounted for using the equity method since the
first quarter of 2023.
In the third quarter 2023 assets under
custody and assets under administration rose by +5.7% and
+42.7%, respectively, compared with the second quarter of 2023,
thanks to the consolidation of ISB’s assets58 and the commercial
momentum, despite a negative market effect in the quarter.
Assets under custody were up +13.6% at end
September 2023 compared to end September 2022, reaching
€4,515 billion. Assets under administration
were up +54.3% year-on-year, to €3,251 billion at end
September 2023. In addition, settlement/delivery
volumes rose by +34% (excluding ISB) in the third quarter
of 2023 compared with the third quarter of 2022.
Results of the Large Customers division
In the third quarter of 2023,
the revenues of the Large Customers division
reached €1,888 million, up sharply by +17.4% compared to the
third quarter of 2022, thanks to the effect of the consolidation of
ISB58,59 in Asset servicing and a very good performance of
Corporate and Investment banking driven by capital markets and
investment banking. Operating expenses excluding
SRF were +16.5% higher than in the third quarter of 2022,
with the impact of the consolidation of ISB58,59, as well as
employee expenses and IT investments supporting the development of
the business lines. As a result, the division’s gross
operating income was up sharply on the third quarter of
2022, at €748 million. The division recorded an overall net
addition to the cost of risk provision of
-€13 million in the third quarter of 2023, compared to an
addition of -€34 million in the third quarter of 2022, and
including a +€2 million reversal of provisions related to the
war in Ukraine of which +€88 million in reversals on performing
loans. Pre-tax income totalled €739 million,
up significantly by +22.8% over the period. The tax charge was
-€203 million. Lastly, net income Group share
reached €488 million in the third quarter of
2023, compared with income of €412 million in the
third quarter of 2022.
In the first nine months of
2023, the revenues of the Large Customers
division amounted to €5,844 million, or +10.3% compared to the
first nine months of 2022. Operating expenses excluding
SRF rose +13.5% compared to first nine months 2022 to
€3,298 million, largely related to employee expenses and IT
investments as well as the impact of the consolidation of ISB58,59.
SRF expenses were down sharply by -29.4% compared
to the first nine months of 2022. Gross operating
income for the first nine months of 2023 totalled
€2,234 million, representing an increase of +14.3% compared to
the first nine months of 2022. The cost of risk
ended first nine months 2023 with a net provision of
-€81 million compared to a net provision of -€236 million
at first nine months 2022, which included the impact of the
Russia-Ukraine war and its consequences in terms of provisioning on
performing loans in the first quarter of 2022. The business line’s
contribution to net income Group share was
€1,486 million, a strong increase of +22.7% compared to the
first nine months of 2022.
The division contributed 29% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end September 2023 and 31% to
underlying revenues excluding the Corporate
Centre.
At 30 September 2023, the
equity allocated to the division
was €13.2 billion, while its risk weighted
assets were €138.8 billion.
Underlying RoNE (return on
normalised equity) stood at 15.1% at end September 2023.
Corporate and Investment banking
results
In third quarter 2023,
Corporate and Investment banking revenues stood at
€1,415 million, up +9.2% from third quarter 2022, growth
driven by Capital Markets and Investment Banking. Operating
expenses excluding SRF rose by +5.6% to
-€806 million, mainly related to human resources and IT investments
to support the business lines, and the adjustment of variable
compensation in line with the performance of the activity.
Gross operating income was up strongly by +14.5%
compared to the third quarter of 2022 and reached
€609 million. The cost/income ratio excluding SRF was 57.0%,
i.e. a favourable change of -2.0 percentage points over
the period. The cost of risk recorded a moderate
net addition of -€14 million compared to an addition of -€32
million in the third quarter of 2022. Lastly, pre-tax
income in the third quarter of 2023 stood at
€596 million, versus €501 million in the third quarter
2022. The tax charge was -€181 million. All in all,
net income Group share was
€405 million in third quarter 2023, a sharp increase of +13.0%
compared to the third quarter of 2022.
In the first nine months of
2023, revenues rose +6.3% compared the
first nine months of 2022, to €4,641 million, the highest
nine-month level ever. Expenses excluding SRF rose
+11.3%, mainly due to staff costs and the continuing adjustment of
variable compensation to activity, and IT costs to support the
development of the business lines. The contribution to the
SRF fell significantly by -29.5% to -€271 million in the
first nine months of 2023. Thus, gross operating
income at €1,874 million was up sharply (+7.9%
compared to the first nine months of 2022). The cost of
risk recorded a provision of -€80 million at first nine
months 2023, compared with -€236 million at first nine months 2022,
which included the conservative provisioning of Russian exposures
(provision of -€346 million on performing loans in Russia in the
first quarter of 2022). The tax charge came to -€479 million,
a +25.3% increase in line with activity growth. All in all,
net income Group share for first nine months 2023
stood at a record level of €1,284 million, an increase of
+17.6% over the period.
Risk weighted assets at end September
2023 were down by -€2.1 billion compared to end December
2022, and rose by a moderate +€2.1 billion compared to end June
2023 at €128.1 billion. This moderate growth is explained by the
amortisation of synthetic securitisations and by a negative foreign
exchange impact.
Asset servicing results
In third quarter 2023, the
revenues of asset servicing were up a strong
+51.5% compared to third quarter 2022, rising to €472 million.
This growth was mainly due to the impact of the consolidation of
ISB60,61; it was driven both by the net interest margin, which
increased by +67.3% over the period, and fee and commission income,
which increased by +41.4% over the period. Operating
expenses excluding SRF increased by +55.8% to -€333
million. They also reflect the impact of the consolidation of
ISB60,61 and include -€5 million in integration costs relative
to the acquisition of ISB. As a result, gross operating
income rose strongly (+42.2%) in the third quarter of 2023
to €139 million. The cost/income ratio excluding SRF thus came
to 70.6% (69.5% excluding ISB integration costs), an unfavourable
change of +0.9 percentage points compared to the third quarter
of 2022. The quarter also recorded €5 million in income from
equity-accounted entities. The latter figure now includes the
contribution of Uptevia since the first quarter of 2023.
Net income thus totalled €122 million, up
+54.1% compared to the third quarter of 2022. Adjusted for the
€38 million share of non-controlling interests, the business
line’s contribution to net income Group share
totalled €83 million in the third quarter of 2023, up by
+55.1% compared to the third quarter of 2022.
Revenues for the first nine months of
2023 were up +28.4% compared with the first nine months of
2022, impacted by the consolidation of ISB60,61, the strong
commercial momentum and net interest income, which rose by +91.1%
over the period. Expenses excluding SRF were up
+21.3%, and include -€14.5 million in integration costs relating to
the acquisition of ISB60,61, while SRF costs fell
sharply by -28.3%. This resulted in a very strong +64.9% increase
in gross operating income compared to the first
nine months of 2022. Net income was thus up by
+67.5%. The overall contribution of the business line to
net income Group share in the first nine months of
2023 was €202 million, a +69.1% increase compared to the first
nine months of 2022.
The full consolidation of ISB60
is planned by the end of 2025 with customer migrations and the
legal mergers of the entities scheduled for 2024. The additional
net income62 expected in 2026 is more than €100m.
Specialised financial services activity
In the third quarter of 2023,
commercial production at
Crédit Agricole Consumer Finance (CACF) totalled
€11.6 billion, a -2.1% decrease over the third quarter of
2022, reflecting greater selectivity of clients, while business
remained strong in the Automotive channel63 (+6.7%). Over a
cumulative period, production was up by +7% at end September 2023
compared to end September 2022, of which +24% in the Automotive
channel. At end September 2023, CACF’s total outstandings stood at
€111 billion, i.e., +12.3% compared to end September 2022.
Outstandings at the automotive entities amounted to €43.5 billion,
of which €26.8 billion at Crédit Agricole Auto Bank,
following the reorganisation of CACF’s Mobility activities and the
execution of the agreement with Stellantis with effect from the
beginning of April 2023. Leasys, the 50/50 joint venture with
Stellantis, contributed €6.8 billion in outstandings at
100%.
As a reminder, key developments for the Consumer
finance activity include the implementation of the agreement
between CACF and Stellantis, which took effect at the start of
April 2023 and finalised the creation of the Leasys 50/50 joint
venture with Stellantis, and the acquisition of 100% of
CA Auto Bank (formerly FCA Bank) and Drivalia (car renting and
car sharing). In addition, since the beginning of August 2023, CACF
has acquired the activities of ALD and LeasePlan in six European
countries, representing a total fleet of more than 100,000 vehicles
(of which 30,000 were taken over by Leasys and 70,000 by
CA Auto Bank) and total outstandings of approximately
€1.9 billion.
At the beginning of September 2023, CACF
announced the development of a services offer dedicated to Mobility
at the European level and that will be distributed under the
CA Mobility Services brand. The catalogue of
Crédit Agricole Mobility Services will ultimately
consist of seven services activities: guarantees, delivery, vehicle
sharing, insurance, financing, electric vehicle charging and fleet
management.
Crédit Agricole Leasing and Factoring
(CAL&F)’s commercial production in factoring
was very high in third quarter 2023, at x2.6 compared to third
quarter 2022, with strong momentum in Germany and France. Factored
turnover for the quarter rose by +2% to €28.9 billion, driven
by France in particular. Lastly, the financed share also rose in
the third quarter to 70.4% (+4.7 points vs the third quarter of
2022). Leasing outstandings rose for all businesses to
€18.5 billion at end September 2023 (of which
€14.9 billion in France and €3.6 billion abroad), for an
increase of +8.9% compared to end September 2022.
Specialised Financial Services results
The revenues of Specialised
Financial Services rose to €883 million in the third quarter
of 2023, up +26.3% compared to the third quarter of 2022. The full
consolidation of CA Auto Bank, including the impact of
ALD/LeasePlan over this quarter, contributed €202 million to
revenues. Expenses excluding SRF came to -€424 million, i.e.
an increase of +18.4%. The full consolidation of CA Auto Bank
including the impact of ALD/LeasePlan contributed -€73 million to
expenses this quarter. As a result, gross operating
income increased by +34.6% to €460 million. The
underlying cost/income ratio excluding SRF also
showed an improvement at 48% (-3.2 percentage points). The stated
cost of risk was up by +48.1% compared
to the third quarter of 2022 at -€224 million. The full
consolidation of CA Auto Bank including the impact of ALD/LeasePlan
contributed -€28 million to cost of risk this quarter. The
net income from equity-accounted entities fell by
-93.8% to €5 million. This includes the formation of the Leasys
50/50 joint venture which was launched last quarter (formerly FCA
Bank accounted for as a 50/50 JV). Excluding -€26 million in
one-off items relating to the reorganisation of CACF’s Mobility
activities64, net income from equity-accounted entities came to €32
million, with the creation of Leasys contributing €17 million this
quarter. Net income from other assets was €57
million, and only includes items relating to the reorganisation of
CACF’s Mobility activities64. Net income Group
share amounted to €204 million, stable over the
period. Excluding one-off items64 in the third quarter of 2023, it
came to €185 million, down -9.7% compared to third quarter
2022.
Over the first nine months of
2023, the revenues of Specialised
Financial Services increased +31.2% to €2,717 million, driven by a
good performance by CAL&F (+9.1% compared to the first nine
months of 2022) and a rise in revenues for CACF (+37.7% compared to
the first nine months of 2022) in line with the full consolidation
of CA Auto Bank since the second quarter of 2023, as well as the
acquisition of the activities of ALD/LeasePlan in the third quarter
of 2023. The various items in the income statement for first nine
months of 2023 are impacted by the line-by-line consolidation of CA
Auto Bank starting in the second quarter of 2023. The
specific items for first nine months 2023 were
concentrated in the second and third quarters of 2023 and are thus
the same as those mentioned above, relating exclusively to the
reorganisation of CACF’s Mobility activities64. The division’s
underlying revenues excluding these items
came to €2,417 million, an increase of +16.7% over the
period. Underlying costs excluding SRF increased
by +11.2% compared to the first nine months of 2022. The
cost/income ratio excluding SRF remained low at 52.3%, an
improvement of -2.5 percentage points compared to the first
nine months of 2022. The SRF contribution came to
-€29 million for first nine months 2023, down -15.7% compared
to the first nine months of 2022. The cost of risk
increased by +55.2% in the first nine months of 2023 compared to
the same period in 2022. The contribution from equity-accounted
entities fell by -46.5% compared to the first nine months
of 2022.
Net income Group share
thus came to €476 million, down by -16.3% compared to the
first nine months of 2022, mainly related to the increased cost of
risk over the period.
The business line contributed 9% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding
Corporate Centre division) in the first nine months of 2023 and 13%
to underlying revenues excluding Corporate Centre
division.
At 30 September 2023, the equity
allocated to the division was €6.5 billion and its
risk weighted assets were €68,1 billion.
Underlying RoNE (return on
normalised equity) stood at 9.8% at 30 September 2023.
Consumer finance results
The business line’s results for the third
quarter of 2023 were in line with second quarter 2023, favourably
impacted by the execution of the agreement between CACF and
Stellantis and the reorganisation of CACF’s Mobility activities64,
in effect since 3 April 2023. Revenues totalled
€707 million, up +30.2% compared to the third quarter of 2022, with
the impact of the consolidation of CA Auto Bank65, a margin still
penalised by refinancing costs and the usuary rate, but which is
recovering during the quarter (customers production rates up
+31 bps in the third quarter of 2023 compared with the second
quarter 2023). In addition and excluding the one-off effects of the
reorganisation of CACF’s Mobility activity64, revenues were up
+3.6% compared to the second quarter 2023, notably given the
acquisition of the ALD/LeasePlan activities since August.
Expenses excluding SRF stood at €330 million.
They were up +22.9% compared to the third quarter of 2022, mainly
reflecting the consolidation of CA Auto Bank66. As a result, gross
operating income rose by +37.7% to €377 million, while the
cost/income ratio excluding SRF stood at 46.6%, an improvement of
2.8 percentage points over the third quarter of 2022. The
cost of risk was -€206 million in the third
quarter of 2023. The +45.9% increase is notably explained by the
integration of the Mobility activities67 on the one hand, and by
the traditional segments in relation to the inflationary
environment on the other. The annualised cost of credit risk on
outstandings stands at 124 bps68. The Non Performing Loans ratio
and the coverage ratio were respectively 4.0% (versus 3.8% at end
June 2023) and 82.4% (versus 83.4% at end June), mainly due to the
consolidation of CA Auto Bank. The net income from
equity-accounted entities fell by -93.8% to €5 million. It
includes the formation of the Leasys 50/50 JV since last quarter
but no longer includes FCA Bank, accounted for as a 50/50 JV up to
the first quarter of 2023. Excluding -€26 million in one-off items
relating to the reorganisation of CACF’s Mobility activities over
the quarter, the net income from equity-accounted entities came to
€32 million, with the creation of Leasys contributing €17 million
this quarter. Net income from other assets was €57
million, and only includes items relating to the reorganisation of
CACF’s Mobility activities64. The tax charge was
€67 million. Excluding one-off items, the tax charge amounted
to -€51 million in the third quarter of 2023, an increase of
+57.3%. Finally, net income Group share totalled
€149 million (-3.6%). Excluding one-off items relating to the
reorganisation of CACF’s Mobility activities64, it was
€130 million in the third quarter of 2023, down -15.9%.
In the first nine months of
2023, the specific items affecting consumer finance were
concentrated mainly in the second quarter, and to a lesser extent
in the third quarter, with the reorganisation of CACF’s Mobility
activities. The impacts are identical to those mentioned above and
concern the reorganisation of consumer finance Mobility activities.
Stated revenues amounted to €2,199 million
(+37.7%). Adjusted for specific items, revenues totalled €1,899
million, an increase of +18.9% compared with the first nine months
of 2022. Stated costs excluding SRF amounted
to €942 million (+15.3%). Adjusted for specific items, costs were
up +13% compared with the first nine months of 2022. The
contribution to the SRF was -€13 million (-17.7% compared with the
first nine months of 2022). The cost/income ratio
excluding specific items and SRF fell to 48.6%, remaining at a low
level. This resulted in a +26% increase in underlying gross
operating income compared with the first nine months of 2022. The
stated cost of risk totalled -€638 million
(+78.1%). Adjusted for specific items, the cost of risk increased
by 54.5% to -€553 million compared with the first nine months
of 2022. The stated contribution of equity-accounted
entities was €93 million, down by -61.4%. Adjusted
for specific items, it fell by -45.3% to €131 million. Stated
income on other assets amounted to €80 million.
This line is mainly composed of specific items. Excluding these
items, underlying net income on other assets stood at
-€8 million. Finally, net income Group share for the
first nine months of 2023 totalled €507 million
(+14.3%). Adjusted for specific items, it came to
€349 million, a decrease of -21.5%.
Leasing & Factoring
results
Revenues totalled €177 million,
up +12.8% compared with the third quarter 2022, mainly driven by
factoring volumes and prices. Of note, leasing revenues continued
to stabilise over the quarter. Expenses excluding SRF rose by
+€4 million (+5.5%), primarily outside France with an increase
in payroll in Poland and a ramp-up of leasing and IT development in
Germany. The cost/income ratio excluding SRF stood
at 53.4%, an improvement of -3.7 percentage points
compared to the third quarter of 2022. As a result gross
operating income totalled €82 million, up sharply
(+22.5%) from the third quarter of 2022. Cost of
risk increased to €18 million during the quarter,
mainly in leasing, while net income Group share
stood at €55 million, up by almost 10% on the third quarter
2022.
In the first nine months of 2023,
revenues totalled €518 million, a +9.1% increase compared
with the first nine months of 2022. Costs excluding
SRF increased by +5.7% to €282 million. The SRF
contribution came to -€15 million in 2023 (-15.0% compared
with 2022). Gross operating income rose sharply to
€221 million, a +16.2% increase compared with the first nine
months of 2022. The underlying cost/income ratio excluding
SRF amounted to 54.4%, an improvement of
1.8 percentage points compared with the first nine months of
2022. Cost of risk rose during the period
(+63.8%). The business line’s contribution to underlying
net income Group share was
€127 million, up +2.2% compared with the first nine months of
2022.
Crédit Agricole S.A. Retail Banking
activity
In Crédit Agricole S.A.’s
Retail Banking business, loan production reflected
the market trend and continued to slow amid rising interest rates,
particularly at LCL. However, customer capture remained buoyant,
with a high number of customers taking out insurance policies.
Retail banking activity in France
For French Retail Banking, loan
production at LCL continued to slow in the third
quarter of 2023 and stood at €6.8 billion, down -39.5%
compared with the third quarter of 2022, in line with the overall
slowdown in the market linked to the tightening of monetary
conditions and with a base effect linked to a great level of
production in 2022. In the Small Businesses market, production was
down -29.4% compared with the third quarter of 2022, -28.5% in the
Corporates market and -51.1% in the Home Loans market, against a
backdrop of a slowdown in the French market (-44.3% in home loan
production according to the Banque de France, August 2023/August
2022), while lending rates for home loans continued to rise, with
LCL recording an increase of +56 basis points between the second
quarter of 2023 and the third quarter of 2023. The rate at
signature was 4.41% (week of 09 to 13 October 2023). Outstanding
loans totalled €168.0 billion at end September 2023, up +4.2%
from end September 2022, of which +5.2% for home loans, +4.5% for
loans to small businesses, +1.6% for corporate loans and +1.0% for
consumer finance. Customer assets, which stood at €241.0 billion at
end September 2023, were also up, by +4.6% compared with end
September 2022, driven by on-balance sheet deposits (+5.6%) linked
to growth in term deposits (2.4x compared with end September 2022,
but up a moderate +9.4% compared with end June 2023) and passbook
accounts (+12.8% compared with end September 2022, but up slightly
at +2.1% compared with end June 2023), with off-balance sheet
savings also up compared with end September 2022 (+2.9%).
In the third quarter 2023,
gross customer capture stood at 81,600 new customers and net
customer capture came in at 14,600 customers. The equipment rate
for car, multi-risk home, health, legal, all mobile phones or
personal accident insurance rose year-on-year by
+0.5 percentage points compared to the third quarter of 2022
to stand at 27.6% at end September 2023.
Retail banking activity in Italy
The business of CA Italy,
the retail bank in Italy, remained buoyant in the
third quarter 2023, despite the decline in the Italian market. The
main event during the quarter was the success of CA Italy’s
promotional offer on home loans69. Gross customer capture for the
third quarter 2023 reached 46,000 new customers, while the customer
base grew by 15,000 customers70. The equipment rate for property
and casualty insurance71 continued to rise (+2.2 percentage
points compared with the third quarter 2022) to stand at 18.3%.
In parallel, loan outstandings at CA Italy
stood at €59.572 billion at end September 2023, up +0.9%
compared with end September 2022, contrasting with the downward
trend in the Italian market73. The increase in home loan
outstandings was also particularly strong, up +3.6% compared with
end September 2022. The growth was driven by dynamic production,
which rose by +50% compared with the third quarter 2022. The
average rate on outstanding loans continued to rise, up
+34 basis points compared with the second quarter 2023.
Finally, customer savings stood at
€113.2 billion at end September 2023, up +3.2% compared with
end September 2022. On-balance sheet deposits improved by +6.8%
compared with end September 2022. Their cost remains reasonable due
to the size of individual deposits, despite competition from
Italian sovereign debt. By contrast, off-balance sheet deposits
were down -1.1% compared with end September 2022, mainly due to a
market effect but also due to outflows, although these were weaker
than in previous quarters.
Crédit Agricole Group activity in
Italy74
Underlying revenues of the
Italian entities rose by 22% compared with the first nine months of
2022, mainly due to the strength of the net interest margin of
CA Italy. Lastly, Italy’s contribution to
Crédit Agricole S.A.’s results in the
first nine months of 2023 amounted to €895 million, an improvement
of +30% compared with the first nine months of 2022.
International Retail Banking activity excluding
Italy
The scope of this division at end September 2023
included Egypt, Poland and Ukraine. It also covered
Crédit du Maroc75 at end September 2022.
For International Retail Banking
excluding Italy, commercial activity was brisk in Poland
and Egypt.
The International Retail Banking business
excluding Italy had loan outstandings of €7.0
billion at end September 2023, down -42.8% compared with end
September 2022; the sharp drop was mainly due to the disposal of
Crédit du Maroc. Adjusted for Crédit du Maroc
outstandings, the decrease in outstandings amounted to -6.6% (+1.7%
at constant exchange rates) compared with end September 2023.
Customer savings accounted for €10.3 billion, they were down -31.4%
as compared to end September 2023, but stable +0.4% (+18.5% at
constant exchange rates) once restated for
Crédit du Maroc outstandings.
At constant exchange rates, in Poland
and Egypt, loan outstandings were up +5.4% compared with
end September 2022. Customer savings rose +14.4% over the same
period at constant exchange rates. In Poland, loan outstandings
increased by +4.3% compared with September 2022, mainly driven by
retail banking and dynamic loan production (+25% compared with the
third quarter 2022). On-balance sheet deposits grew by +3.0%. In
Egypt, loan outstandings rose by +10.7% at
constant exchange rates compared with end September 2022, driven by
a sharp increase in production. Strong growth was recorded in
on-balance sheet deposits, up +50.3% at constant exchange rates
compared with end September 2023.
The surplus of deposits for
loans in Poland and Egypt amounted to €2.2 billion at 30
September 2023, and reached €3.7 billion when including the
Ukraine scope76.
As at 30 September 2023, the Retail
banking business line contributed 23% to the 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 30 September 2023, the capital allocated
to the division was €9.6 billion, including €5.0 billion
for French retail banking and €4.6 billion for International
retail banking. Risk weighted assets for the division totalled
€100.3 billion, including €52.2 billion for French retail
banking and €48.1 billion for International retail
banking.
French retail banking results
In the third quarter of 2023,
LCL’s revenues were up +5.9% compared with the
third quarter 2022, at €996 million77. Excluding the reversal
of the home purchase savings provision, revenues remained stable at
+0.4% compared with the third quarter 2022, at €944 million. Net
interest margin, excluding the reversal of the home purchase
savings provision, was slightly up from the third quarter 2022
(+0.7%), but rose +6.5% on the previous quarter. This was due to
higher lending yields following the steady rise in average rate of
loans on the asset side, as well as macro-hedging gains, but
continued to be penalised by the increase in customer funding and
refinancing costs. This quarter, fee and commission income also
remained stable (+0.2%) across all services. Expenses
excluding SRF were kept under control at -€589 million, a
slight increase of +3.0% compared with the third quarter 2022 due
to higher staff costs (revaluation). The cost/income ratio
excluding SRF fell by 1.7 percentage points to 59.1% and
remains at a low level. Gross operating income rose by 10.5% to
€407 million. Cost of risk continued to normalise,
rising by +29.4% compared with the third quarter 2022 to -€70
million (stable compared with the second quarter 2023). The cost of
credit risk on outstandings78 stood at 17 basis points.
The coverage ratio stood at 62.0% at the end of June, down
-0.8 percentage points this quarter compared to the end of
June 2023. The Non-Performing Loans ratio reached 1.9% at end
September 2023, relatively unchanged from end June 2023. Finally,
net income Group share stood at €264 million, an
increase of +16.4% compared with the third quarter 2022.
In the first nine months of
2023, LCL’s revenues fell by -1.5% compared with the first
nine months of 2022, to €2,891 million. This was due to the
contraction in the net interest margin (-8.1%) against a backdrop
of higher refinancing and funding costs, but with an increase in
fee and commission income (+5.9%), particularly for life and
property and casualty insurance and payment instruments. Expenses
excluding SFR were stable (+0.1%) and the cost/income ratio
excluding SFR remained under control (+1.0 percentage point)
at 60.2%. As a result, gross operating income fell by -2.0% and the
cost of risk rose by +29.2%. All in all, the business line’s
contribution to net income Group share stood at €673 million
and was down -4.0%.
In the end, the business line contributed 12% to
the underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) in the first nine months of 2023 and 15%
to underlying revenues excluding the Corporate
Centre.
LCL’s underlying return on normalised equity
(RoNE) stood at 15.9% on 30 September 2023.
International Retail Banking
results79
In the third quarter of 2023,
International Retail Banking revenues totalled
€1,024 million, up +27.3% (+32.1% at constant exchange rates)
compared with the third quarter of 2022, driven mainly by the rise
in the net interest margin against a backdrop of rising interest
rates. Operating expenses remained under control
despite the inflationary environment, coming in at -€504 million,
or +3.7% compared with the third quarter 2022, +5.6% at constant
exchange rates. As a result, gross operating
income amounted to €520 million, an increase of
+63.3% (+75% at constant exchange rates) compared to the third
quarter of 2022. Cost of risk reached
-€121 million, stable compared with the third quarter 2022.
Net income Group share of International Retail
Banking was €225 million, double the amount in the third quarter
2022 (x1.2 at constant exchange rates).
For the first nine months of
2023, International Retail Banking
revenues rose by +23.8% to €2,975 million (+17.6%
at constant exchange rates). Costs excluding SRF
were under control at -€1,531 million, stable as compared to the
first nine months of 2022 at current (+1.1%) and constant (+0.5%)
exchange rates. These benefited from a base effect with Creval
integration costs adjusted to underlying in 2022 for €30 million.
Gross operating income totalled
€1,444 million, up +62.1% (+43.5% at constant exchange rates).
Cost of risk fell by -29.1% to -€362 million
compared with the first nine months of 2022. This was mainly due to
the conservative provisioning for Ukraine risk, which was adjusted
to underlying income for the first quarter of 202280. All in all,
net income Group share of International
Retail Banking amounted to €600 million, compared with
€123 million in the first nine months of 202280.
In the first nine months of 2023, the
International Retail Banking business line contributed 12% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre) and 15% to underlying revenues excluding the
Corporate Centre.
Italian retail banking
results
In the third quarter 2023,
Crédit Agricole Italia
revenues stood at €783 million, up +26.8%
compared with the third quarter 2022. Higher interest rates
continued to shore up net interest margin, which had a positive
impact on the average rate of loans on the asset side
(+34 basis points compared with the second quarter 2023).
However, net interest margin for the third quarter 2023 was on a
par with the second quarter 2023. Operating expenses
excluding SRF rose +4.8% compared with the third quarter
2022 to -€394 million, driven by staff costs. Gross operating
income increased significantly (+60.9%) compared with the third
quarter 2022 to stand at €389 million. The cost of
risk amounted to -€84 million in the third quarter,
up +35.7% compared to the third quarter of 2022, including
-€74 million for proven risk and -€7 million in
provisioning for performing loans. Cost of risk on outstandings81
stood at 60 basis points82, up 3 basis points compared to
the second quarter of 2023. The Non Performing Loans ratio was
3.6%, up slightly from the second quarter 2023
(+0.1 percentage point). The coverage ratio stands at 69.4%
(+1.7 percentage point compared with the second quarter 2023).
Net income Group share for CA Italy was
€166 million, up +64.8% compared to the third quarter of
2022.
In the first nine months of
2023, revenues for
Crédit Agricole Italia rose by +23.9% to
€2,304 million. Operating expenses excluding
SRF were under control at €1,163 million, stable compared
with the first nine months of 2022, and up +4.2% once adjusted for
the Creval integration costs of -€30 million recorded in 2022.
Gross operating income stood at
€1,101 million, an increase of +63.3% compared with the first
nine months of 2022 (+56.3% after adjustment for the Creval
integration costs in 2022). Cost of risk rose by
+29.2% to -€234 million, mainly due to the increase in provisions
for performing loans (+€46 million). As a result, net
income Group share of CA Italy totalled
€476 million, an increase of +68.4% compared with the first
nine months of 2022.
CA Italy’s underlying RoNE (return on
normalised equity) was 21.6% at 30 September 2023.
International Retail Banking results –
excluding Italy83
In the third quarter of 2023,
revenues for International Retail Banking
excluding Italy totalled €241 million, up +29.3%
(+53.3% at constant exchange rates) compared to the third quarter
of 2022. The growth in revenues, particularly in Poland and Egypt
(+33.9% compared with the third quarter 2022, +64.4% at constant
exchange rates), was driven up by the net interest margin rising by
81% on this geographical scope (+45% at constant exchange rate).
Operating expenses remained under control at €110
million, stable compared with the third quarter 2022 (up +8.6% at
constant exchange rates). Gross operating income
amounted to €131 million, an increase of +70.9% (x1.3 at
constant exchange rates) compared with the third quarter 2022.
Cost of risk stood at -€36 million, down -37.0%,
the amount includes in the third quarter 2023 the provisioning of
CHF loans in Poland. Furthermore, at end September 2023, the
coverage ratio for loan outstandings remained very high in Poland
and Egypt, at 129% and 160% respectively; in Ukraine, the local
coverage ratio remains prudent. All in all, International
Retail Banking excluding Italy contributed €59 million to
net income Group share, x6.2 compared with the third quarter
2022.
In the first nine months of
2023, revenues for International
Retail Banking excluding Italy totalled €671 million, up
+23.4% (+48.0% at constant exchange rates) compared with the first
nine months of 2022, driven by the increase in net interest margin.
Operating expenses excluding SRF were stable at
-€328 million, benefiting from a favourable foreign exchange impact
(+0.2% compared with the first nine months of 2022, up +10.7% at
constant exchange rates). Gross operating income
amounted to €343 million, an increase of +58.4% (x1.2 at
constant exchange rates) compared with the first nine months of
2022. Cost of risk stood at -€128 million, a
decrease of -61.2% compared with the first nine months of 2022,
which had been impacted by the provisioning of -€195 million for
Ukraine, adjusted to underlying income for the first quarter of
2022. Income from discontinued operations fell by
€21 million in the first nine months of 2022 to €7 million in the
nine months of 2023, due to the transfer of control of
Crédit du Maroc in the fourth quarter 2022. Finally, the
contribution of International Retail Banking excluding Italy to
net income Group share was €124 million
(versus -€159 million in first nine months 2022, impacted by the
provisioning for Ukraine).
The underlying RoNE (return on normalised
equity) of International Retail Banking excluding Italy stood at
24.5% at 30 September 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, contributing to a further reduction in the cost/income
ratio of Crédit Agricole S.A. The quarterly impact of
internal margins was -€211 million for revenues and +€211 million
for expenses; the impact for the first nine months of 2023 was
-€607 million for revenues and +€607 million for expenses.
The underlying net income Group share of the
Corporate Centre was -€55 million in the third quarter 2023,
up +€191 million on the third quarter 2022. The contribution
of the Corporate Centre division can be analysed by distinguishing
between the “structural” contribution (-€24 million) and other
items (-€31 million). The “structural”
component contribution rose by +€275 million compared
to the third quarter 2022 and can be broken down into three types
of activities:
- The
activities and functions of the Corporate Centre of the
Crédit Agricole S.A. corporate entity. This
contribution amounted to -€64 million in the third quarter
2023, up +€251 million, including a favourable impact of +€171
million due to the reversal of 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 was +€37
million in the third quarter 2023, up +€30 million, benefiting from
the favourable impact of the revaluation of Banco BPM securities
(+€34 million with a price of €4.535 at 30 September 2023, +6%
compared with 30 June 2023).
- Group
support functions. Their contribution amounted to
+€4 million this quarter (-€5 million compared with the
third quarter 2022).
The contribution of “other
items” was down by -€85 million from the third quarter
2022, due to negative impacts related to inflation seasonality and
OIS/BOR volatility this quarter.
Over the first nine months of 2023, underlying
net income Group share of the Corporate Centre division was
-€375 million, up €133 million compared to the
first nine months of 2022. The structural component
contributed -€480 million and other items of the division
recorded a positive contribution of +€105 million over the
first nine months of 2023.The “structural” component contribution
rose by +€236 million compared with the first nine months of
2022 and can be broken down into three types of activities:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. corporate entity. This contribution
amounted to -€681 million, an increase of +€91 million
compared with the first nine months of 2022, taking into account
the reversal of the home purchase savings provision of +€171
million.
- The businesses
that are not part of the business lines, such as CACIF (Private
equity) and CA Immobilier and BforBank: their contribution of
+€188 million was +€149 million higher than in the first nine
months of 2022.
- Group support
functions: their contribution was +€12 million, down -€4
million compared with the contribution in the first nine months of
2022.
The contribution of “other items” stood at €105
million, down -€104 million compared with the first nine months of
2022.
At 30 September 2023, risk-weighted assets
stood at €26.0 billion.
* *
*
Financial strength
Crédit Agricole Group
At 30 September 2023, the phased-in
Common Equity Tier 1 (CET1) ratio of
Crédit Agricole Group was 17.5%, a decrease of
10 basis points compared with end June 2023. Consequently,
Crédit Agricole Group had a substantial buffer of
8.2 percentage points between the level of its CET1 ratio
and the SREP requirement of 9.3%,84 which is the largest SREP gap
among European G-SIBs85. The fully loaded CET1 ratio is 17.3%.
During the third quarter 2023:
- The anticipation in the third
quarter 2023 of the impact of the purchase of
Crédit Agricole S.A. shares by SAS Rue
La Boétie by 30 June 2024 reduced the CET1 ratio by -17 basis
points.
- The CET1 ratio benefited from an
impact of +31 basis points related to retained
earnings, which exceeds the organic growth of the business
lines,
- Changes in risk weighted assets
related to business line organic growth impacted
the Group’s CET1 ratio by -22 basis points, which corresponds to an
increase in the business lines’ risk weighted assets (of which
+€2.1 billion for the Regional Banks),
The phased-in Tier 1 ratio
stood at 18.7% while the phased-in total ratio was
21.5% at end September 2023.
The phased-in leverage ratio
stood at 5.6%, well above the regulatory requirement of 3.5%. In
addition to the minimum requirement of 3% in effect since
1 January 2023, and only for global systemically important
institutions (G-SII), a leverage ratio buffer will be added,
defined as half of the G-SII buffer of the entity, which amounts to
0.5% for the Crédit Agricole Group.
Risk weighted assets for the
Crédit Agricole Group amounted to €605.5 billion, up
by +€9.6 billion compared to 30 June 2023. The
organic growth of the business lines (including foreign
exchange) contributed +€6.4 billion to this increase, of which
+€2.1 billion of risk weighted assets at the Regional Banks.
Mergers and acquisitions concern the integration
of RBC IS in Europe for €1.8 billion and
ALD LeasePlan for €1.6 billion, both partially offset by
the inclusion of CA Auto Bank’s synthetic securitisation for
-€3.2 billion. Finally, methodology and regulatory
effects, excluding the impact of the change in the
regulatory treatment of insurance goodwill, had a positive effect
of -€0.9 billion this quarter.
Maximum Distributable Amount (MDA and
L-MDA) trigger thresholds
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined capital
buffer requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 30 September 2023,
Crédit Agricole Group posted a buffer of
768 basis points above the MDA trigger, i.e.
€47 billion in CET1 capital.
At 30 September 2023,
Crédit Agricole S.A. posted a safety
buffer of 354 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 30 September 2023,
Crédit Agricole Group posted a buffer of
213 basis points above the L-MDA trigger, i.e.
€43 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 0.43% for the CA Group at 30/09/23). Considering the
combined capital buffer requirement, the
Crédit Agricole Group must adhere to a TLAC ratio of
above 21.9%;
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior preferred debt.
At 30 September 2023,
Crédit Agricole Group’s TLAC ratio stood
at 27.1% of RWA and 8.2% of leverage ratio exposure,
excluding eligible senior preferred
debt,86 which is well above the
requirements. The TLAC ratio expressed as a percentage of risk
weighted assets was stable over the quarter, reflecting the
increase in RWAs. This was offset by the increase in equity and
eligible items over the period. Expressed as a percentage of
leverage exposure (LRE), the TLAC ratio was up 10 basis points
compared with June 2023.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 520 bps, i.e.
€31 billion, higher than the current requirement of 21.9% of
RWA.
As of 3 October 2023, €5.2 billion
equivalent was issued in the market (senior non-preferred and Tier
2 debt) on top of the €1.25 billion of AT1. At end September, the
amount of Crédit Agricole Group senior non-preferred
securities taken into account in the calculation of the TLAC ratio
was €27.6 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 0.43% for the CA Group at
30/09/23). Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a total MREL ratio
of above 25.0%;
- 6.02% of the
LRE.
At 30 September 2023,
Crédit Agricole Group had a MREL ratio of 32.2%
of RWA and 9.7% 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 30 September 2023,
Crédit Agricole Group had a buffer of
520 basis points above the M-MDA trigger, taking into
account the TLAC requirement applicable at 30 September 2023, i.e.
€31 billion of CET1 capital.
Crédit Agricole S.A.
At 30 September 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 11.8%, up 21 basis points from 30
June 2023. Crédit Agricole S.A. therefore had a
substantial buffer of 3.6 percentage points between the level of
its CET1 ratio and the 8.2% SREP requirement87. The buffer is
higher than the 3.4 percentage points at end June 2023, despite the
slight increase in the countercyclical buffer during the quarter.
The fully loaded CET1 ratio reached 11.7% in third quarter
2023:
- The CET1 ratio
benefited this quarter from a positive impact of +20 basis points
linked to retained earnings. This impact
corresponds to net income Group share net of AT1 coupons and the
distribution of 50% of income, i.e. a provision for dividends of
€0.26 per share for the third quarter of 2023, and a provision for
dividends of €0.76 per share for first nine months of 2023,
- The change in
risk weighted assets due to organic growth in the business
lines impacted the CET1 ratio by -15 basis points.
This included an increase of +€4.9 billion in the risk weighted
assets of the business lines, concentrated in the Large Customers
division for +€2.1 billion (partly linked to an unfavourable
EUR/USD foreign exchange impact), in the retail Banks division for
+€1.5 billion (namely in France and Italy) and in insurance for
€1.4 billion with the increase in the equity-accounted value88 due
to third-quarter retained earnings.
-
Methodology and regulatory effects, which boosted
the CET1 ratio by 16 basis points, mainly concern the change
in the regulatory treatment of insurance goodwill under EBA FAQ,
which allows the direct deduction of goodwill associated with
indirect holdings. This change in method has an impact of
+15 basis points.
- Finally,
mergers and acquisitions reduced the CET1 ratio by
-4 basis points, with the acquisition of RBC IS for -7
basis points and LeasePlan for -6 basis points. This was partially
offset by the inclusion this quarter of CA Auto Bank’s
synthetic securitisation for +11 basis points.
- OCI
and other items had an impact of +4 basis points on
the CET1 ratio.
The phased-in leverage ratio was 4.0% at end
September 2023, stable compared to end June 2023, above the 3%
requirement.
The phased-in Tier 1 ratio
stood at 13.7% and the phased-in total ratio at 17.9% this
quarter.
Risk weighted assets for the
Crédit Agricole S.A. amounted to €383.9 billion at
end of September 2023, up by +€7.0 billion compared to
30 June 2023. The contribution of the business
lines (including foreign exchange impact) amounted to
+€4.0 billion. This included an increase in risk weighted assets in
the Large Customers division of +€2.1 billion, mainly due to an
unfavourable EUR/USD foreign exchange impact, and in the Asset
Gathering division with retained earnings from insurance in the
third quarter (+€0.4 billion incl. OCI). The mergers and
acquisitions described above contributed +€0.2 billion to
the growth of RWAs, the impact of the acquisition of RBC IS Europe
and ALD/LeasePlan being offset by the CA Auto Bank
securitisation.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is
based on the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet and
whose definition is commonly accepted in the marketplace. It
relates to the banking scope, with insurance activities being
managed in accordance with their own specific regulatory
constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €36 billion at end September 2023.
Similarly, €140 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
€202 billion at end September 2023 – relate to derivatives,
margin calls, adjustment/settlement/liaison accounts and to
non-liquid securities held by Corporate and Investment banking
(CIB) and are included in the “Customer-related trading assets”
section.
Note that deposits centralised with Caisse des
Dépôts et Consignations are not netted in order to build the cash
balance sheet; the amount of centralised deposits (€93 billion
at end September 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 €1,658 billion at 30 September
2023, the Group’s banking cash balance sheet shows a
surplus of stable funding resources over stable application
of funds of €178 billion, up €6 billion compared
with end June 2023 after repayment of TLTROs in September (€8
billion).
Total TLTRO 3 outstandings for
Crédit Agricole Group amounted to €37.6 billion89 at
30 September 2023, down €8 billion90, which were repaid during
the quarter. It should be noted, with regard to the position in
stable resources, 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 30 September
2023 (central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €262 billion at 30 September 2023, up
+€2 billion compared to end-June 2023. The increase in stable
inflows and the execution of the refinancing plan offset the
repayment of T-LTRO 3 in September 2023.
They included senior secured debt of
€106 billion, senior preferred debt of €104 billion,
senior non-preferred debt of €30 billion and Tier 2
securities amounting to €22 billion.
The Group’s liquidity reserves, at
market value and after haircuts, amounted to €419 billion at
30 September 2023, up €15 billion compared with 30
June 2023 pro forma.
They covered short-term net debt more than two
times over (excluding the replacements with Central Banks).
This increase in liquidity reserves is mainly
explained by the increase in customer inflows and the
implementation of the Medium-Long Term Financing Plan.
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 €126 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
At 30 September 2023, average
year-on-year LCR ratios were 150.8% for
Crédit Agricole Group and 145.2% for
Crédit Agricole S.A., respectively. The end of
month LCR ratios were 143.3% for Crédit Agricole Group
(representing a surplus of €86.9 billion) and 144% for
Crédit Agricole S.A. (representing a surplus of €78.5
billion). They were higher than the Medium-Term Plan target (around
110%).
In addition, the NSFR of
Crédit Agricole Group and Crédit Agricole S.A.
exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021 and above the Medium-Term
Plan target (>100%).
The Group continues to follow a prudent policy
as regards medium-to-long-term refinancing, with a
very diversified access to markets in terms of investor base and
products.
At 30 September 2023, the Group’s main
issuers raised the equivalent of €56.6 billion91,92
in medium-to-long-term debt on the markets, 44% of
which was issued by Crédit Agricole S.A. In particular,
the following amounts are noted for the Group:
-
Crédit Agricole CIB issued €14 billion in structured
format;
-
Crédit Agricole Consumer Finance issued €5.8 billion
in the form of ABS securitisations and €1.9 billion equivalent in
MTN issues through Crédit Agricole Auto Bank
(CAAB);
-
Crédit Agricole Assurances issued a 10-year Tier 2 for
€500 million and made an offer to buy back two perpetual
subordinated issues (FR0012444750 & FR0012222297) for €500
million in October.
The Group’s medium-to-long-term financing can be
broken down into the following categories:
-
€15.6 billion in secured financing;
-
€19.4 billion in plain-vanilla unsecured financing;
-
€14.5 billion in structured financing;
-
€7.1 billion in long-term institutional deposits and CDs.
In addition, €16.9 billion was raised
through off-market issuances, split as follows:
-
€12.2 billion from banking networks (the Group’s retail
banking or external networks);
-
€3.3 billion from supranational organisations or financial
institutions;
-
€1.4 billion from national refinancing vehicles (including the
credit institution CRH).
At 30 September 2023,
Crédit Agricole S.A. raised the equivalent of
€24.8 billion93,94
through the open market:
The bank raised the equivalent of
€24.8 billion, of which €3.5 billion in senior non-preferred
debt, €1.7 billion in Tier 2 debt, €12.1 billion in
senior preferred debt and €7.5 billion in senior secured debt.
The financing comprised a variety of formats and currencies:
-
€7.3 billion95;
-
5.85 billion US dollars (€5.5 billion equivalent);
-
1.3 billion pounds sterling (€1.4 billion equivalent);
-
177 billion Japanese yen96 (€1.2 billion equivalent);
-
0.6 billion Swiss francs (€0.7 billion equivalent);
-
0.9 billion Australian dollars (€0.6 billion equivalent);
-
0.9 billion Singapore dollars (€0.6 billion equivalent);
-
1.0 billion Hong-Kong dollars (€0.1 billion equivalent);
-
1.0 billion Chinese Yuan (€0.1 billion equivalent).
Since the beginning of the year,
Crédit Agricole S.A. MLT issued 58% of its refinancing in
currencies other than EUR97,98.
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%.
At end-September 2023,
Crédit Agricole S.A. issued €24.8 billion and
completed 99% of its 2023 MLT market funding plan of €25
billion.
Appendix 1 – Specific items,
Crédit Agricole Group and
Crédit Agricole S.A.
Crédit Agricole
Group : Specific items, Q3-23, Q3-22, 9M-23
et 9M-22
|
|
Q3-23 |
Q3-22 |
|
9M-23 |
9M-22 |
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
2 |
2 |
14 |
10 |
|
(21) |
(15) |
5 |
4 |
Loan portfolio hedges (LC) |
|
(2) |
(1) |
(14) |
(11) |
|
(26) |
(19) |
59 |
44 |
Home Purchase Savings Plans (LCL) |
|
52 |
38 |
- |
- |
|
52 |
38 |
34 |
26 |
Home Purchase Savings Plans (CC) |
|
230 |
171 |
- |
- |
|
230 |
171 |
53 |
39 |
Home Purchase Savings Plans (RB) |
|
118 |
88 |
- |
- |
|
118 |
88 |
412 |
306 |
Reclassification of held-for-sale operations - NBI (IRB) |
|
- |
- |
- |
- |
|
- |
- |
0 |
0 |
Mobility activities reorganisation (SFS) |
|
1 |
0 |
- |
- |
|
300 |
214 |
- |
- |
Exceptional provisionning on moratoria Poland (IRB) |
|
- |
- |
(21) |
(17) |
|
- |
- |
(21) |
(17) |
Check Image Exchange penalty (CC) |
|
- |
- |
- |
- |
|
42 |
42 |
- |
- |
Check Image Exchange penalty (LCL) |
|
- |
- |
- |
- |
|
21 |
21 |
- |
- |
Check Image Exchange penalty (RB) |
|
- |
- |
- |
- |
|
42 |
42 |
- |
- |
Total
impact on revenues |
|
402 |
298 |
(22) |
(17) |
|
758 |
581 |
543 |
401 |
Creval integration costs (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(30) |
(18) |
Lyxor integration costs (AG) |
|
- |
- |
(9) |
(4) |
|
- |
- |
(59) |
(31) |
Mobility activities reorganisation (SFS) |
|
- |
- |
- |
- |
|
(18) |
(13) |
- |
- |
Total
impact on operating expenses |
|
- |
- |
(9) |
(4) |
|
(18) |
(13) |
(90) |
(49) |
Mobility activities reorganisation (SFS) |
|
- |
- |
- |
- |
|
(85) |
(61) |
- |
- |
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(195) |
(195) |
|
|
|
|
|
|
|
|
|
|
|
Total
impact on cost of credit risk |
|
- |
- |
- |
- |
|
(85) |
(61) |
(195) |
(195) |
Mobility activities reorganisation (SFS) |
|
(26) |
(26) |
- |
- |
|
(39) |
(39) |
- |
- |
Total
impact equity-accounted entities |
|
(26) |
(26) |
- |
- |
|
(39) |
(39) |
- |
- |
Mobility activities reorganisation (SFS) |
|
61 |
45 |
- |
- |
|
89 |
57 |
- |
- |
Total
impact on Net income on other assets |
|
61 |
45 |
- |
- |
|
89 |
57 |
- |
- |
Capital gain La Médicale (GEA) |
|
- |
- |
101 |
101 |
|
- |
- |
101 |
101 |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(7) |
(10) |
Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
101 |
101 |
|
- |
- |
94 |
91 |
Total impact of specific items |
|
436 |
317 |
71 |
79 |
|
705 |
525 |
352 |
248 |
Asset gathering |
|
- |
- |
92 |
97 |
|
- |
- |
42 |
70 |
French Retail banking |
|
170 |
126 |
|
- |
|
233 |
189 |
446 |
331 |
International Retail banking |
|
- |
- |
(21) |
(17) |
|
- |
- |
(253) |
(240) |
Specialised financial services |
|
35 |
19 |
- |
- |
|
247 |
159 |
- |
- |
Large customers |
|
1 |
0 |
(1) |
(0) |
|
(47) |
(35) |
64 |
48 |
Corporate centre |
|
230 |
171 |
|
- |
|
272 |
213 |
53 |
39 |
* Impact before
tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
Crédit
Agricole S.A. : Specific items Q3-23, Q3-22,
9M-23 et 9M-22
|
|
Q3-23 |
Q3-22 |
|
9M-23 |
9M-22 |
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
2 |
2 |
14 |
10 |
|
(21) |
(15) |
5 |
4 |
Loan portfolio hedges (LC) |
|
(2) |
(1) |
(14) |
(10) |
|
(26) |
(19) |
59 |
43 |
Home Purchase Savings Plans (FRB) |
|
52 |
37 |
- |
- |
|
52 |
37 |
34 |
24 |
Home Purchase Savings Plans (CC) |
|
230 |
171 |
- |
- |
|
230 |
171 |
53 |
39 |
Mobility activities reorganisation (SFS) |
|
1 |
0 |
- |
- |
|
300 |
214 |
- |
- |
Check Image Exchange penalty (CC) |
|
- |
- |
- |
- |
|
42 |
42 |
- |
- |
Check Image Exchange penalty (LCL) |
|
- |
- |
- |
- |
|
21 |
20 |
- |
- |
Exceptional provisionning on moratoria Poland (IRB) |
|
- |
- |
(21) |
(17) |
|
- |
- |
(21) |
(17) |
Total
impact on revenues |
|
284 |
209 |
(22) |
(17) |
|
598 |
450 |
131 |
93 |
Mobility activities reorganisation (SFS) |
|
- |
- |
- |
- |
|
(18) |
(13) |
- |
- |
Creval integration costs (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(30) |
(16) |
Lyxor integration costs (AG) |
|
- |
- |
(9) |
(4) |
|
- |
- |
(59) |
(30) |
Total
impact on operating expenses |
|
- |
- |
(9) |
(4) |
|
(18) |
(13) |
(90) |
(46) |
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(195) |
(195) |
Mobility activities reorganisation (SFS) |
|
- |
- |
- |
- |
|
(85) |
(61) |
- |
- |
Total
impact on cost of credit risk |
|
- |
- |
- |
- |
|
(85) |
(61) |
(195) |
(195) |
Mobility activities reorganisation (SFS) |
|
(26) |
(26) |
- |
- |
|
(39) |
(39) |
- |
- |
Total
impact equity-accounted entities |
|
(26) |
(26) |
- |
- |
|
(39) |
(39) |
- |
- |
Mobility activities reorganisation (SFS) |
|
61 |
45 |
- |
- |
|
89 |
57 |
- |
- |
Total
impact Net income on other assets |
|
61 |
45 |
- |
- |
|
89 |
57 |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(7) |
(10) |
Capital gain La Médicale (GEA) |
|
- |
- |
101 |
101 |
|
- |
- |
101 |
101 |
Total
impact on Net income from discounted or held-for-sale
operations |
|
- |
- |
101 |
101 |
|
- |
- |
94 |
91 |
Total impact of specific items |
|
318 |
227 |
71 |
79 |
|
545 |
394 |
(60) |
(57) |
Asset gathering |
|
- |
- |
92 |
97 |
|
- |
- |
42 |
71 |
French Retail banking |
|
52 |
37 |
- |
- |
|
73 |
57 |
34 |
24 |
International Retail banking |
|
- |
- |
(21) |
(17) |
|
- |
- |
(253) |
(238) |
Specialised financial services |
|
35 |
19 |
- |
- |
|
247 |
159 |
- |
- |
Large customers |
|
1 |
0 |
(1) |
(0) |
|
(47) |
(34) |
64 |
47 |
Corporate centre |
|
230 |
171 |
- |
- |
|
272 |
213 |
53 |
39 |
* Impact before tax and before non-controlling
interests
Appendix 2 –
Crédit Agricole Group: income statement by business
line
Crédit Agricole Group –
Contribution by business line - Q3-23 and
Q3-22
|
Q3-23 (stated) |
In €m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,345 |
996 |
1,046 |
1,657 |
883 |
1,888 |
(567) |
9,249 |
Operating expenses excl. SRF |
(2,328) |
(589) |
(522) |
(718) |
(424) |
(1,139) |
454 |
(5,265) |
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
1,018 |
407 |
524 |
939 |
460 |
749 |
(113) |
3,984 |
Cost of risk |
(254) |
(70) |
(126) |
(0) |
(224) |
(13) |
(6) |
(693) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
1 |
- |
1 |
24 |
5 |
6 |
0 |
37 |
Net income on other assets |
0 |
18 |
1 |
(5) |
57 |
(2) |
(0) |
69 |
Income before tax |
765 |
355 |
400 |
958 |
298 |
740 |
(119) |
3,397 |
Tax |
(178) |
(79) |
(118) |
(221) |
(77) |
(203) |
65 |
(810) |
Net income from discounted or held-for-sale operations |
(0) |
- |
2 |
- |
(0) |
- |
- |
2 |
Net income |
587 |
277 |
284 |
737 |
220 |
537 |
(53) |
2,588 |
Non-controlling interests |
(0) |
(0) |
(42) |
(110) |
(17) |
(39) |
4 |
(204) |
Net income Group Share |
587 |
277 |
242 |
628 |
204 |
497 |
(49) |
2,384 |
|
Q3-22 (stated) |
In €m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,335 |
940 |
1,512 |
823 |
699 |
1,607 |
(694) |
8,222 |
Operating expenses excl. SRF |
(2,226) |
(572) |
(713) |
(503) |
(358) |
(978) |
406 |
(4,943) |
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
1,109 |
368 |
799 |
320 |
341 |
630 |
(288) |
3,280 |
Cost of risk |
(273) |
(54) |
(0) |
(119) |
(151) |
(34) |
(5) |
(636) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
0 |
- |
24 |
0 |
82 |
5 |
0 |
111 |
Net income on other assets |
1 |
0 |
(2) |
0 |
6 |
1 |
0 |
6 |
Income before tax |
837 |
314 |
821 |
202 |
278 |
602 |
(293) |
2,762 |
Tax |
(209) |
(75) |
(213) |
(61) |
(47) |
(156) |
25 |
(736) |
Net income from discounted or held-for-sale operations |
- |
- |
114 |
9 |
1 |
(1) |
(0) |
123 |
Net income |
628 |
240 |
721 |
151 |
232 |
445 |
(268) |
2,149 |
Non-controlling interests |
(0) |
2 |
(104) |
(27) |
(27) |
(27) |
6 |
(178) |
Net income Group Share |
628 |
242 |
617 |
124 |
205 |
418 |
(262) |
1,971 |
Crédit Agricole Group – Contribution by business line – 9M-23
and 9M-22
|
9M-23 (stated) |
In
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
10,032 |
2,891 |
3,040 |
5,144 |
2,717 |
5,844 |
(1,946) |
27,722 |
Operating expenses excl. SRF |
(7,217) |
(1,742) |
(1,542) |
(2,148) |
(1,224) |
(3,298) |
1,389 |
(15,782) |
SRF |
(111) |
(44) |
(40) |
(6) |
(29) |
(312) |
(77) |
(620) |
Gross operating income |
2,704 |
1,105 |
1,458 |
2,989 |
1,465 |
2,234 |
(634) |
11,321 |
Cost of risk |
(831) |
(205) |
(366) |
(1) |
(686) |
(81) |
(8) |
(2,179) |
Equity-accounted entities |
9 |
- |
1 |
73 |
90 |
17 |
- |
190 |
Net income on other assets |
6 |
21 |
1 |
(5) |
81 |
3 |
(1) |
107 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,887 |
921 |
1,095 |
3,057 |
950 |
2,173 |
(643) |
9,438 |
Tax |
(467) |
(217) |
(321) |
(696) |
(254) |
(561) |
222 |
(2,293) |
Net income from discontinued or held-for-sale operations |
(0) |
- |
7 |
1 |
(0) |
- |
- |
7 |
Net income |
1,421 |
704 |
781 |
2,361 |
696 |
1,612 |
(421) |
7,153 |
Non-controlling interests |
(1) |
(0) |
(121) |
(343) |
(61) |
(93) |
(0) |
(619) |
Net income Group Share |
1,420 |
704 |
660 |
2,018 |
635 |
1,519 |
(421) |
6,534 |
|
9M-22 (stated) |
In
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
10,760 |
2,936 |
4,269 |
2,457 |
2,072 |
5,300 |
(1,841) |
25,953 |
Operating expenses excl. SRF |
(6,911) |
(1,740) |
(2,138) |
(1,521) |
(1,084) |
(2,905) |
1,278 |
(15,021) |
SRF |
(156) |
(69) |
(7) |
(38) |
(34) |
(442) |
(56) |
(803) |
Gross operating income |
3,693 |
1,128 |
2,123 |
898 |
954 |
1,953 |
(620) |
10,129 |
Cost of risk |
(830) |
(158) |
(6) |
(511) |
(388) |
(236) |
(11) |
(2,139) |
Equity-accounted entities |
5 |
- |
64 |
2 |
240 |
11 |
0 |
323 |
Net income on other assets |
25 |
5 |
1 |
6 |
4 |
0 |
(0) |
41 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
2,893 |
974 |
2,184 |
395 |
810 |
1,729 |
(631) |
8,354 |
Tax |
(725) |
(250) |
(544) |
(173) |
(161) |
(435) |
78 |
(2,211) |
Net income from discontinued or held-for-sale operations |
- |
- |
124 |
21 |
4 |
(1) |
- |
148 |
Net income |
2,168 |
724 |
1,764 |
243 |
652 |
1,292 |
(553) |
6,291 |
Non-controlling interests |
(1) |
(0) |
(310) |
(85) |
(83) |
(63) |
2 |
(539) |
Net income Group Share |
2,168 |
724 |
1,454 |
159 |
569 |
1,229 |
(551) |
5,752 |
Appendix 3 –
Crédit Agricole S.A.: results by business
line
Crédit Agricole S.A. – Results by business line – Q3-23 and
Q3-22
|
Q3-23 (stated) |
In €m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,656 |
1,888 |
883 |
996 |
1,024 |
(103) |
6,343 |
Operating expenses excl. SRF |
(718) |
(1,139) |
(424) |
(589) |
(504) |
(2) |
(3,376) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
937 |
748 |
460 |
407 |
520 |
(105) |
2,967 |
Cost of risk |
(0) |
(13) |
(224) |
(70) |
(121) |
(2) |
(429) |
Equity-accounted entities |
24 |
6 |
5 |
- |
1 |
(12) |
23 |
Net income on other assets |
(5) |
(2) |
57 |
18 |
1 |
(0) |
69 |
Income before tax |
956 |
739 |
298 |
355 |
401 |
(119) |
2,630 |
Tax |
(221) |
(203) |
(77) |
(79) |
(118) |
65 |
(633) |
Net income from discontinued or held-for-sale operations |
- |
- |
(0) |
- |
2 |
- |
2 |
Net income |
736 |
536 |
220 |
277 |
285 |
(55) |
1,999 |
Non-controlling interests |
(114) |
(48) |
(17) |
(12) |
(60) |
0 |
(251) |
Net income Group Share |
621 |
488 |
204 |
264 |
225 |
(55) |
1,748 |
|
Q3-22 (stated) |
In €m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,502 |
1,607 |
699 |
940 |
804 |
(232) |
5,321 |
Operating expenses excl. SRF |
(713) |
(978) |
(358) |
(572) |
(486) |
(21) |
(3,127) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
789 |
630 |
341 |
368 |
319 |
(252) |
2,195 |
Cost of risk |
(0) |
(34) |
(151) |
(54) |
(120) |
(1) |
(360) |
Equity-accounted entities |
24 |
5 |
82 |
- |
0 |
(9) |
102 |
Net income on other assets |
(2) |
1 |
6 |
0 |
0 |
0 |
5 |
Income before tax |
811 |
602 |
278 |
314 |
199 |
(262) |
1,942 |
Tax |
(211) |
(156) |
(47) |
(75) |
(60) |
17 |
(533) |
Net income from discontinued or held-for-sale operations |
114 |
(1) |
1 |
- |
9 |
(0) |
123 |
Net income |
714 |
445 |
232 |
240 |
148 |
(246) |
1,533 |
Non controlling interests |
(106) |
(33) |
(27) |
(13) |
(38) |
1 |
(217) |
Net income Group Share |
607 |
412 |
205 |
227 |
110 |
(245) |
1,316 |
Crédit Agricole S.A. – Results by business line 9M-23 and
9M-22
|
9M-23 (stated) |
In €m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
5,133 |
5,844 |
2,717 |
2,891 |
2,975 |
(421) |
19,140 |
Operating expenses excl. SRF |
(2,148) |
(3,298) |
(1,224) |
(1,742) |
(1,491) |
(20) |
(9,922) |
SRF |
(6) |
(312) |
(29) |
(44) |
(40) |
(77) |
(509) |
Gross operating income |
2,979 |
2,234 |
1,465 |
1,105 |
1,444 |
(519) |
8,709 |
Cost of risk |
(1) |
(81) |
(686) |
(205) |
(362) |
(2) |
(1,338) |
Equity-accounted entities |
73 |
17 |
90 |
- |
2 |
(45) |
136 |
Net income on other assets |
(5) |
3 |
81 |
21 |
1 |
(0) |
102 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
3,047 |
2,173 |
950 |
921 |
1,085 |
(566) |
7,609 |
Tax |
(699) |
(561) |
(254) |
(217) |
(320) |
218 |
(1,832) |
Net income from discontinued or held-for-sale operations |
1 |
- |
(0) |
- |
7 |
- |
7 |
Net income |
2,349 |
1,612 |
696 |
704 |
772 |
(348) |
5,785 |
Non controlling interests |
(353) |
(125) |
(61) |
(31) |
(172) |
(27) |
(771) |
Net income Group Share |
1,996 |
1,486 |
635 |
673 |
600 |
(375) |
5,014 |
|
9M-22 (stated) |
In €m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
4,245 |
5,301 |
2,072 |
2,936 |
2,403 |
(432) |
16,525 |
Operating expenses excl. SRF |
(2,138) |
(2,905) |
(1,084) |
(1,740) |
(1,474) |
(43) |
(9,383) |
SRF |
(7) |
(442) |
(34) |
(69) |
(38) |
(56) |
(647) |
Gross operating income |
2,100 |
1,954 |
954 |
1,128 |
891 |
(531) |
6,495 |
Cost of risk |
(6) |
(236) |
(388) |
(158) |
(510) |
(5) |
(1,303) |
Equity-accounted entities |
64 |
11 |
240 |
- |
2 |
(27) |
291 |
Net income on other assets |
1 |
0 |
4 |
14 |
6 |
0 |
26 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
2,160 |
1,730 |
810 |
983 |
389 |
(563) |
5,509 |
Tax |
(537) |
(436) |
(161) |
(250) |
(172) |
73 |
(1,483) |
Net income from discontinued or held-for-sale operations |
124 |
(1) |
4 |
- |
21 |
- |
147 |
Net income |
1,747 |
1,293 |
652 |
733 |
238 |
(490) |
4,174 |
Non controlling interests |
(320) |
(82) |
(83) |
(33) |
(115) |
(18) |
(651) |
Net income Group Share |
1,427 |
1,211 |
569 |
700 |
123 |
(508) |
3,523 |
Appendix 4 – Data per share
Crédit Agricole S.A. – Earnings p/share, net book value p/share and
RoTE |
Crédit Agricole S.A. – data per share
(€m) |
|
Q3-2023 IFRS17 |
Q3-2022 IFRS4 |
|
9M-23 IFRS17 |
9M-22 IFRS4 |
|
|
|
|
|
|
|
Net income Group
share - stated |
|
1,748 |
1,352 |
|
5,014 |
3,880 |
- Interests on
AT1, including issuance costs, before tax |
|
(136) |
(119) |
|
(371) |
(327) |
NIGS attributable
to ordinary shares - stated |
[A] |
1,612 |
1,233 |
|
4,643 |
3,553 |
Average number
shares in issue, excluding treasury shares (m) |
[B] |
3,043 |
3,029 |
|
3,031 |
2,957 |
Net earnings per share - stated |
[A]/[B] |
0.53 € |
0.41 € |
|
1.53 € |
1.20 € |
Underlying net
income Group share (NIGS) |
|
1,520 |
1,273 |
|
4,620 |
3,937 |
Underlying NIGS
attributable to ordinary shares |
[C] |
1,384 |
1,154 |
|
4,249 |
3,610 |
Net earnings per share - underlying |
[C]/[B] |
0.46 € |
0.38 € |
|
1.40 € |
1.22 € |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
30/09/23 IFRS17 |
30/09/22 IFRS4 |
Shareholder's
equity Group share |
|
|
|
|
69,416 |
64,295 |
- AT1
issuances |
|
|
|
|
(7,235) |
(5,988) |
- Unrealised
gains and losses on OCI - Group share |
|
|
|
|
1,644 |
3,338 |
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
|
|
63,825 |
61,644 |
- Goodwill &
intangibles** - Group share |
|
|
|
|
(17,255) |
(18,386) |
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
|
|
46,570 |
43,258 |
Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,051.7 |
3,039.5 |
NBV per share,
after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
20.9 € |
20.3 € |
TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
15.3 € |
14.2 € |
* dividend
proposed to the Board meeting to be paid |
|
|
|
|
|
|
** including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
9M-23 IFRS17 |
9M-22 IFRS4 |
Net income Group
share - stated |
[K] |
|
|
|
5,014 |
3,880 |
Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
IFRIC |
[M] |
|
|
|
-542 |
-682 |
Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*4/3+[M] |
|
|
|
6,866 |
5,401 |
Interests on AT1,
including issuance costs, before tax, annualised |
[O] |
|
|
|
-495 |
-436 |
Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
6,371 |
4,965 |
Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg (3) |
[J] |
|
|
|
43,200 |
40,195 |
Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
14.7% |
12.4% |
Underlying Net
income Group share |
[Q] |
|
|
|
4,620 |
3,937 |
Underlying NIGS
annualised |
[R] = ([Q]-[M])*4/3+[M] |
|
|
|
6,341 |
5,477 |
Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
|
|
5,846 |
5,041 |
Underlying ROTE
adjusted(%) |
= [S] / [J] |
|
|
|
13.5% |
12.5% |
****** including assumption of dividend for the
current exercise
(1) Average of the NTBV not revalued
attributable to ordinary shares calculated between 31/12/2022 and
30/09/2023
(2) ROTE calculated on the basis of an
annualised net income Group share and linearised IFRIC costs over
the year
Alternative Performance
Indicators99
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 two conditions has been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation.
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired 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 loans.
Impaired (or doubtful) loan
ratio This ratio divides the impaired gross customer
loans on an individual basis, before provisions, by the total gross
customer loans.
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) 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 on
Crédit Agricole S.A. and Crédit Agricole Group
for the third quarter and first nine months of 2023 comprises this
presentation and the attached appendices and press release which
are available on the website:
https://www.credit-agricole.com/en/finance/financial-publications
This 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 six-month period
ending 30 September 2023 have been prepared in accordance with IFRS
as adopted in the European Union and applicable at that date, and
with the applicable prudential regulations. 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.
Unless stated otherwise, all figures presented
in this presentation for the year 2022 are in proforma IFRS 17
Note: The scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups
have not changed materially since the
Crédit Agricole S.A. 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.
At 30 June 2023,
Crédit Agricole Auto Bank is the name of the new
entity formed from the takeover of 100% of FCA Bank by
Crédit Agricole Consumer Finance.
Crédit Agricole Auto Bank is fully consolidated in
the Crédit Agricole S.A. consolidated financial
statements.
At 30 June 2023, Leasys is the new joint
subsidiary between CACF and Stellantis. This entity is consolidated
using the equity accounted method in the
Crédit Agricole S.A. consolidated financial
statements
At 30 September 2023,
Crédit Agricole Consumer Finance finalised the
acquisition of ALD and LeasePlan activities in six European
countries. The acquisition is being carried out by Drivalia, a
subsidiary of Crédit Agricole Auto Bank, and
Leasys.
At 30 September 2023, the acquisition of RBC
Investor Services in Europe, excluding Jersey and UK entities, was
complete. The entity has been renamed CACEIS Investor Services Bank
(“ISB”). ISB is included in the scope of consolidation of
Crédit Agricole S.A. as a subsidiary of CACEIS.
Financial Agenda
8 February
2024 Publication
of the 2023 fourth quarter and full year results3 May
2024 Publication
of the 2024 first quarter results22 May
2024 General
Meeting1 August
2024 Publication
of the 2024 second quarter and the first half year results6
November
2024 Publication of
the 2024 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Alexandre
BaratOlivier Tassain |
+ 33 1 57 72 12 19+
33 1 43 23 25 41 |
alexandre.barat@credit-agricole-sa.fr
olivier.tassain@credit-agricole-sa.fr |
Mathilde
Durand |
+ 33 1 57 72 19
43 |
mathilde.durand@credit-agricole-sa.fr |
Bénédicte
Gouvert |
+ 33 1 49 53 43
64 |
benedicte.gouvert@ca-fnca.fr |
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
Institutional
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 |
|
|
|
Cécile
Mouton |
+ 33 1 57 72 86
79 |
cecile.mouton@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 |
Gwenaëlle
Lereste |
+ 33 1 57 72 57
84 |
Gwenaelle.lereste@credit-agricole-sa.fr |
Florence Quintin
de Kercadio |
+ 33 1 43 23 25
32 |
florence.quintindekercadio@credit-agricole-sa.fr |
|
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See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
1 Gross customer capture for the first nine months of 2023 was
1,472,000 and the customer base was 349,0002 Refinitiv3 Bloomberg4
Comprising €587 billion for the Regional Banks,
€156 billion for LCL and €64 billion for CA Italy5
Signing of an agreement for the acquisition of a majority stake 6
Digital fleet management tool on monthly subscription7 Extended
warranty8 In addition, acquisition of a stake of 9.9% in the
capital of Banco BPM9 Employee benefits management tool10 Creation
of a joint venture to develop innovative commercial offerings11
Integration of 50% of CA Auto bank net banking income for the
calculation purposes12 These figures encompass some deals already
integrated in the financial statements as well as prospective
datas13 Excluding integration costs14 Delivered by R3, in which
CATE is the reference shareholder
15 With online diagnostic testing,
recommendations and estimates of the works to be carried out, as
well as information on available aid. The website forecasts 1
million visits in 2023.
16 DVA (Debt Valuation Adjustment)17 Following the
non-recurring impacts of Q2-23 related to the reorganisation of the
CACF Group’s Mobility activities, amounting to +€140 million,
+€19 million was added in Q3-23. As a reminder, this involved
transfers of business assets, indemnities received and paid, the
accounting treatment of the 100% consolidation of
CA Auto Bank (formerly FCA Bank) and the reorganisation
of the automotive financing activities within the CA Consumer
Finance Group (particularly the review of application solutions).18
See Appendixes for more details on specific items. 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 quarters after reintegration of CA Auto Bank
outstandings20 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 after reintegration of CA Auto Bank
outstandings21 Following the non-recurring impacts of Q2-23 related
to the reorganisation of the CACF Group’s Mobility activities,
amounting to +€140 million, +€19 million was added in
Q3-23. As a reminder, this involved transfers of business assets,
indemnities received and paid, the accounting treatment of the 100%
consolidation of CA Auto Bank (formerly FCA Bank) and the
reorganisation of the automotive financing activities within the CA
Consumer Finance Group (particularly the review of application
solutions).
22 Data at 30/09/2023 for
Crédit Agricole S.A. and Crédit Agricole Group.
Analysis based on 30/09/2023 reporting on customer loans, Stage 3
outstandings and Stage 1, 2 and 3 provisions for ING, Société
Générale, Banco Santander, Standard Chartered, Barclays, BNP
Paribas, Deutsche Bank, HSBC, UBS and Unicredit, at 30/06/2023 for
BPCE Group (1) Gross customer loans outstanding excl. credit
institutions 23 Number of active profiles on “Ma Banque”
corresponding to at least one synchronisation during the month
24 Signatures initiated in BAM deposit mode
(multi-channel bank access), Mobile customer portal or “Ma Banque”
app25 Home loan production in France down -44,3% for end of August
2023 according to the Banque de France26 SAS Rue La Boétie dividend
paid annually in Q227 DVA (Debt Valuation Adjustment)28
Following the non-recurring impacts of Q2-23 related to the
reorganisation of the CACF Group’s Mobility activities, amounting
to +€140 million, +€19 million was added in Q3-23. As a
reminder, this involved transfers of business assets, indemnities
received and paid, the accounting treatment of the 100%
consolidation of CA Auto Bank (formerly FCA Bank) and the
reorganisation of the automotive financing activities within the CA
Consumer Finance Group (particularly the review of application
solutions).
29 Underlying, excluding specific items. See
Appendixes for more details on specific items. 30 Impact on
CA Auto Bank revenues: +€202m31 Impact on
RBC IS Europe revenues: +€103.5m 32 +5.9% taking into
account the reversal of the home purchase savings provision of
€52 million33 Change at current exchange rates; +45% at
constant exchange rates34 Based on underlying data and excluding
specific items; scope: CAsa excluding Corporate Center and
insurance activities35 Scope effect: SFS/CAAB (+€73 million), Asset
Servicing/RBC IS Europe (+€105.6 million)
36 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.37 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 quarters 38 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 quarter39 Following the
non-recurring impacts of Q2-23 related to the reorganisation of the
CACF Group’s Mobility activities, amounting to +€140 million,
+€19 million was added in Q3-23. As a reminder, this involved
transfers of business assets, indemnities received and paid, the
accounting treatment of the 100% consolidation of
CA Auto Bank (formerly FCA Bank) and the reorganisation
of the automotive financing activities within the CA Consumer
Finance Group (particularly the review of application
solutions).
40 Underlying, excluding specific items. See
Appendixes for more details on specific items41 See details on the
calculation of the business lines’ ROTE (return on tangible equity)
and RONE (return on normalised equity)42 The annualised underlying
net income Group share corresponds to the annualisation of the
underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by restating
each period for IFRIC impacts to linearise them over the year
43 Scope: Property & Casualty in France and
abroad44 Combined ratio of P&C (Pacifica) including discounting
and excluding reverse discounting: (claims + operating expenses +
fee and commission income)/premiums, net of reinsurance; Combined
ratio excluding the effects of discounting and reverse discounting:
98.1%45 Sources: MorningstarFundFile, ETFGI. European &
cross-border open-ended funds (excluding mandates and dedicated
funds). Data at end September 2023.46 Medium/Long-Term assets47 Net
inflows include assets under advisory, assets sold and funds of
funds, and take into account 100% of the Asian JVs’ net inflows;
for Wafa Gestion in Morocco, net inflows reflect Amundi’s share in
the JV’s capital.48 LCL Private Banking and Indosuez Wealth
Management49 Amount of allocation of CSM and RA, including funeral
guarantees50 Amount of allocation of CSM and RA 51 Net of cost of
reinsurance, excluding financial results52 IFRS 17 run rate:
i.e. after restatement of the 2022 base effect, which did not take
into account the investment management decisions implemented at the
end of 2022 (segregation of equity and desensitisation of the
portfolio).53 Indosuez Wealth Management scope54 CIB’s specific
items this quarter had an impact of €+0.6 million on financing
activities and comprised the DVA (the issuer spread portion of the
FVA, and secured lending) amounting to +€2.1 million, and loan
book hedging totalling -€1.5 million.55 Refinitiv56
Bloomberg57 Operational register keeping, organisation of general
meetings and other services to issuers in France58 RBC Investor
Services in Europe became CACEIS Investor Services Bank (“ISB”) and
has been consolidated since Q3-2023, excluding the Jersey and UK
entities, for which the closings are expected in the coming
quarters59 Impacts of the consolidation of ISB on Q3-2023: revenues
+€103.5m, expenses -€105.7m and net income Group share -€1.1m60 RBC
Investor Services in Europe became CACEIS Investor Services Bank
(“ISB”) and has been consolidated since Q3-2023, excluding the
Jersey and UK entities, for which the closings are expected in the
coming quarters61 Impacts of the consolidation of ISB on Q3-2023:
revenues +€103.5m, expenses -€105.7m and net income Group share
-€1.1m62 Before non-controlling interests63 CA Auto Bank,
automotive JVs and auto activities of other entities64 The
reorganisation of the Mobility activities of the
CA Consumer Finance Group had a non-recurring impact
in the second quarter (+€140 million in net income Group share) and
third quarter (+€19 million in net income Group share) of 2023 on
all intermediate operating totals due to the transfer of business
assets, indemnities received and paid, the accounting treatment of
the full consolidation of CA Auto Bank (formerly
FCA Bank) and the reorganisation of the automotive financing
activities within the CA Consumer Finance Group
(particularly the review of application solutions).65 Contribution
of €202 million over the quarter to revenues66 Contribution of -€73
million over the quarter to expenses67 Contribution of -€28 million
over the quarter to cost of risk68 Annualised cost of risk as a
share of outstandings (in basis points) calculated on the basis of
the cost of risk for the quarter multiplied by 4 divided by the
outstandings at the beginning of the quarter 69 2.99% fixed-rate
home loan offer; marketing campaign carried out from April to May
202370 Over nine months, gross customer capture stood at 130,000
customers in 2023 and net customer capture came in at 45,000
customers 71 Car, home, legal, all mobile phones, or personal
accident insurance72 Net of POCI outstandings73 Source: Abi Monthly
Outlook, October 23: -4.1% Sept/Sept for all loans.74 At 30
September 2023, this scope corresponds to the aggregation of all
Group entities present in Italy: CA Italy, CACF (Agos, Leasys, CA
Auto Bank), CAA (CA Vita, CACI, CA Assicurazioni), Amundi, CACIB,
CAIWM, CACEIS75 Disposal of control (63.7%) of Crédit du Maroc in
the fourth quarter of 202276 Excess liquidity in Ukraine deposited
mainly with the Central Bank in Ukraine and bearing average
interest of 19.2% on the third quarter 202377 Including reversal of
home purchase savings provision for €52m78 Over a rolling four
quarter period79 At 30 September 2023 this scope includes the
entities CA Italy, CA Polska, CA Egypt and CA Ukraine.80
Provisions of -€195 million for Ukraine risk, adjusted to
underlying income for Q1-2022
81 Over a rolling four quarter period.82 Cost of
risk on outstandings stands at 56 basis points when referring to
annualized quarterly basis83The Crédit du Maroc entity has been
classified under IFRS 5 since the first quarter of 2022 and the
disposal of the controlling interest (63.7%) took place in the
fourth quarter of 2022. The remaining 15% is to be sold within 18
months..84 At 30 September 2023, increase in the countercyclical
buffer (to 43bps at 30/06/2023 from 40bps at 30/06/2023), raising
the SREP requirement to 9.3%.85 Based on public data of the 12
European G-SIBs as at 30/09/2023 for CAG, Barclays, BNPP, Deutsche
Bank, HSBC, ING, Santander, Standard Chartered, Société Générale,
Unicredit, UBS and as at 30/06/2023, for BPCE. CASA data
(30/06/2023). Distance to SREP or requirement in CET1 equivalent.86
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 2023.87 At 30 September 2023, increase in the
countercyclical buffer (buffer of 39 bps at 30/09/2023 vs
34 bps at 30/06/2023), raising the SREP requirement to 8.2% 88
Change in equity-accounted value excluding OCI89 Including CA Auto
Bank90 Including CA Auto Bank91 Gross amount before buy-backs and
amortisations92 Excl. AT1 issuances93 Gross amount before buy-backs
and amortisations94 Excl. AT1 issuances95 Excl. senior secured
debt96 Excl. senior secured debt97 Excl. senior secured debt98
Excl. AT1 issuances99 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.
- 2023 11 08_Crédit Agricole SA_PR_2023-Q3_Results
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