Credit Agricole Sa: Third quarter and first nine months 2024
results - VERY STRONG QUARTER, 2024 INCOME TARGET CONFIRMED
VERY STRONG QUARTER, 2024
INCOME TARGET CONFIRMED
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CASA AND CAG STATED AND UNDERLYING DATA
Q3-2024 |
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CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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Stated |
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Underlying |
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Stated |
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Underlying |
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Revenues |
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€6,487m
+2.3% Q3/Q3 |
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€6,484m
+7.0% Q3/Q3 |
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€9,213m
-0.4% Q3/Q3 |
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€9,210m
+4.1% Q3/Q3 |
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Expenses |
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-€3,689m
+9.2% Q3/Q3 |
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-€3,654m
+8.2% Q3/Q3 |
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-€5,590m
+6.2% Q3/Q3 |
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-€5,556m
+5.5% Q3/Q3 |
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Gross Operating Income |
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€2,799m
-5.7% Q3/Q3 |
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€2,830m
+5.5% Q3/Q3 |
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€3,623m
-9.1% Q3/Q3 |
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€3,654m
+2.0% Q3/Q3 |
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Cost of risk |
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-€433m
+0.9% Q3/Q3 |
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-€433m
+0.9% Q3/Q3 |
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-€801m
+15.6% Q3/Q3 |
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-€801m
+15.6% Q3/Q3 |
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Net income group share |
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€1,666m
-4.7% Q3/Q3 |
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€1,686m
+10.9% Q3/Q3 |
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€2,080m
-12.8% Q3/Q3 |
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€2,100m
+1.5% Q3/Q3 |
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C/I ratio |
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56.9%
+3.6 pp Q3/Q3 |
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56.4%
+0.6 pp Q3/Q3 |
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60.7%
+3.7 pp Q3/Q3 |
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60.3%
+0.8 pp Q3/Q3 |
RESULTS UP FOR THE FIRST NINE MONTHS OF THE YEAR; TARGET
CONFIRMED OF >€6BN IN NET INCOME GROUP SHARE FOR
2024
STRONG QUARTERLY RESULT
- +8.2%
growth in net income Group share excluding base effect
related to reversals of Home Purchase Savings Plan provisions in
Q3-23
- High level of
revenues, sharply up in underlying vision
- Low
cost/income ratio; support for business line development
with a +4.1% increase in recurring expenses
STRONG ACTIVITY IN ALL BUSINESS LINES
- Solid
performance in retail banking and consumer finance,
supported by a good level of customer capture, higher on-balance
sheet deposits in France and stable on-balance sheet deposits in
Italy, gradual recovery in home loan activity and increased
corporate loan production in France, continued momentum in
international loan activity, and consumer finance activity stable
at a high level
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Excellent business momentum in CIB, asset management and
insurance, reflected in high gross inflows in life
insurance, continued brisk business in property and casualty and
personal insurance, solid level of inflows and a record level of
assets under management, CIB business still robust and record
nine-month revenues
CONTINUED STRATEGIC PROJECTS
- Partnership with
GAC in China on leasing and in Europe on automotive financing
- Signing of an
agreement to acquire Merca Leasing
- Acquisition of
Nexity Property Management
VERY SOLID CAPITAL AND LIQUIDITY POSITIONS
-
Crédit Agricole S.A. phased-in CET1 11.7%
- CA Group
phased-in CET1 17.4%
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Dominique Lefebvre,
Chairman of SAS Rue La Boétie and Chairman of the
Crédit Agricole S.A. Board of Directors
“The Group reports solid results this quarter. These
results reinforce its desire to be useful to all its customers and
to play a leading role in actively supporting the
economy.”
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Philippe Brassac,
Chief Executive Officer of Crédit Agricole S.A.
“Quarter after quarter, the Group publishes high-level
results confirming the outlook for a 2024 result that is one year
ahead of Crédit Agricole S.A.'s Ambitions for
2025.”
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This press release comments on the results
of Crédit Agricole S.A. and those of
Crédit Agricole Group, which comprises the
Crédit Agricole S.A. entities and the
Crédit Agricole Regional Banks, which own 62.4%
of Crédit Agricole S.A. Please see the appendices to
this press release for details of specific items, which are
restated in the various indicators to calculate underlying
income.
Crédit Agricole Group
Group activity
The Group’s commercial activity during the
quarter continued at a steady pace across all business lines, with
a good level of customer capture. During the third quarter of 2024,
the Group recorded +482,000 new customers in retail banking, and
the customer base grew by +104,000 customers. More specifically,
over the quarter, the Group recorded +383,000 new customers
for Retail Banking in France and +99,000 new International Retail
Banking customers (Italy and Poland), and the customer base also
grew (+64,000 and +40,000 customers, respectively).
At 30 September 2024, retail banking on-balance
sheet deposits totalled €830 billion, up +2.8% year-on-year in
France and Italy (+3.1% for Regional Banks and LCL and -0.4%
in Italy). Outstanding loans totalled €876 billion, up +0.4%
year-on-year in France and Italy (+0.2% for Regional Banks and
LCL and +3.0% in Italy). Home loan production picked up gradually
in France during this quarter, recording an increase of +20% for
the Regional Banks and +73% for LCL compared to the second quarter
of 2024, and -11% and +17% respectively compared to the third
quarter of 2023. In Italy, home loan production was down -12% for
CA Italy due to a base effect related to successful marketing
campaigns in the third quarter of 2023. However, they were still up
on second quarter 2024. The property and casualty insurance
equipment rate1 rose to 43.8% for the Regional Banks
(+0.7 percentage points compared to the third quarter of
2023), 27.9% for LCL (+0.3 percentage point) and 20.0% for
CA Italy (+1.7 percentage point).
In asset management, inflows remained healthy
(+€14.4 billion excluding an insurance mandate withdrawal
totalling -€11.6 billion), particularly with regard to
medium/long-term assets excluding JVs (+€9 billion).
Commercial momentum within JVs was also solid. In
savings/retirement, Crédit Agricole Assurances posted a
high level of gross inflows (€7.2 billion, up +56%
year-on-year), the unit-linked rate remained high in production
(32.8%), and net inflows were positive (+€1.6 billion) and
growing. In property and casualty insurance, the portfolio grew by
+5.1% year-on-year to 16.6 million policies. Assets under
management were once again at their highest level ever, rising
compared to the end of September 2023 in asset management
(€2,192 billion, or +11.1%), life insurance
(€343.2 billion, or +5.8%) and wealth management, which
benefited from the integration of Degroof Petercam (IWM and Private
Banking of LCL €274 billion, or +46.9%).
SFS business line registered an activity stable
at a high level, with an increase in consumer finance outstandings
at CAPFM (+5.2% compared to the end of September 2023), driven by
automotive activities, which account for 53%2 of total
outstandings, and growth in production and leasing outstandings at
CAL&F (€20.1 billion, or +8.8% compared to the end of
September 2023).
Momentum is strong in Large Customers, with
record revenues in corporate and investment banking (best
nine-month cumulative total), with capital markets and investment
banking being driven by capital market activities, and financing
activities benefiting from growth in commercial banking. CACEIS
also posted a high level of assets under custody
(€5,061 billion, +12.1% compared to the end of September 2023)
and assets under administration (€3,386 billion, +4.2%
compared to the end of September 2023). It benefited during the
quarter from strong commercial momentum and positive market
effects.
Each of the Group’s business lines posted strong
activity (see Infra).
Continued support of transition
Crédit Agricole Assurances has set out
its new climate commitments, announcing its target to reduce carbon
intensity of its portfolio3 by -50% by 2029 (compared to
2019).
Crédit Agricole Group has also decided to
participate in CDC’s energy and ecological transition financing
support scheme. The Group will thus be able to raise up to €5.3
billion in liquidity by November 2025, exclusively for financing
new projects contributing to the energy and ecological
transition.
The Group is continuing the mass roll-out of
financing and investment to promote the transition. As such, the
Crédit Agricole Group doubled its exposure to low-carbon
energy financing4 between the end of 2020 and September
2024, with €21.9 billion at 30 September 2024. In addition,
Crédit Agricole Assurances’s financing of renewable
energy production capacity increased by +17% compared to the end of
2022, representing 13.8 gigawatts at 30 June 2024.
Lastly, Crédit Agricole CIB’s green
loan portfolio5 grew by +67% between the end of 2022 and
September 2024, and represented €20.7 billion at 30 September
2024.
Group results
In the third quarter of
2024, the Crédit Agricole Group’s stated
net income Group share came to
€2,080 million, down -12.8% compared to the
third quarter of 2023. This was due to significant
specific items in the third quarter of 2023.
Specific items in the third
quarter of 2024 had a negative
net impact of -€20 million on the net income Group
share of the Crédit Agricole Group. These items
comprise the following recurring accounting items: recurring
accounting volatility items, namely the DVA (Debt Valuation
Adjustment), the issuer spread portion of the FVA, and secured
lending for +€3 million in net income Group share from capital
markets and investment banking, and the hedging of the loan book in
Large Customers for -€1 million in net income Group share. In
addition to these recurring items, there were other items specific
to this quarter: ISB integration costs of -€14 million in net
income Group share of Large Customers, the Degroof Petercam
integration costs of -€6 million in net income Group share of
Asset Gathering, and the acquisition costs of Degroof Petercam
totalling -€2 million in net income Group share of private
banking.
Specific items in the third
quarter of 2023 had a cumulative
positive impact of +€317 million in net income Group share and
comprised DVA and hedging items for +€1 million under Large
Customers, reversals of the Home Purchase Savings Plan provisions
for +€297 million (+€38 million for LCL,
+€171 million for the Corporate Centre and +€88 million
for the Regional Banks), and the impact of the SFS division’s
Mobility6 business for -€26 million under the
equity method and +€45 million under gains and losses on other
assets.
Excluding these specific items,
Crédit Agricole Group’s underlying
net income Group share7 amounted
to €2,100 million, up +1.5% compared to third
quarter 2023.
Crédit Agricole Group – Stated and underlying results, Q3-24 and
Q3-23
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€m |
Q3-24
stated |
Specific items |
Q3-24
underlying |
Q3-23
stated |
Specific items |
Q3-23
underlying |
∆ Q3/Q3
stated |
∆ Q3/Q3
underlying |
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Revenues |
9,213 |
3 |
9,210 |
9,249 |
402 |
8,847 |
(0.4%) |
+4.1% |
| Operating
expenses excl.SRF |
(5,590) |
(34) |
(5,556) |
(5,265) |
0 |
(5,265) |
+6.2% |
+5.5% |
| SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Gross
operating income |
3,623 |
(31) |
3,654 |
3,984 |
402 |
3,582 |
(9.1%) |
+2.0% |
| Cost of
risk |
(801) |
0 |
(801) |
(693) |
0 |
(693) |
+15.6% |
+15.6% |
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Equity-accounted entities |
61 |
- |
61 |
37 |
(26) |
63 |
+65.7% |
(3.5%) |
| Net income on
other assets |
(5) |
(3) |
(2) |
69 |
61 |
9 |
n.m. |
n.m. |
| Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
2,877 |
(34) |
2,912 |
3,397 |
436 |
2,961 |
(15.3%) |
(1.6%) |
| Tax |
(587) |
8 |
(595) |
(810) |
(120) |
(691) |
(27.6%) |
(13.8%) |
| Net income from
discont'd or held-for-sale ope. |
- |
- |
- |
2 |
- |
2 |
(100.0%) |
(100.0%) |
| Net
income |
2,291 |
(26) |
2,317 |
2,588 |
317 |
2,272 |
(11.5%) |
+2.0% |
| Non controlling
interests |
(211) |
6 |
(217) |
(204) |
- |
(204) |
+3.4% |
+6.5% |
| Net
income Group Share |
2,080 |
(20) |
2,100 |
2,384 |
317 |
2,068 |
(12.8%) |
+1.5% |
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Cost/Income ratio excl.SRF (%) |
60.7% |
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60.3% |
56.9% |
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59.5% |
+3.7 pp |
+0.8 pp |
In the third quarter of 2024, underlying
revenues amounted to €9,210 million, up +4.1%
compared to the third quarter of 2023, driven by favourable results
from most of the business lines. Underlying revenues were up in
French Retail Banking (+1.8%), while the Asset Gathering division
benefited from good business momentum and the integration of
Degroof Petercam, and the Large Customers division enjoyed a high
level of revenues across all of its business lines, in addition to
the integration of ISB. Meanwhile, revenues were down slightly for
International Retail Banking and Specialised Financial Services,
which were penalised by the drop in interest rates.
Underlying operating expenses increased by +5.5%
in the third quarter of 2024 to €5,556 million. This was due
to scope effects, base effects on taxes and support for business
line development. Overall, the Group saw its underlying
cost/income ratio reach 60.3% in the third quarter of
2024, a moderate rise of +0.8 percentage point. As a result,
the underlying gross operating income stood at
€3,654 million, up +2.0% compared to the third quarter of
2023.
The underlying cost of credit
risk stood at -€801 million, a year-on-year increase
of +15.6%. This figure comprises an addition of -€93 million
for prudential provisions on performing loans (stages 1 and 2), an
addition of -€709 million for the cost of proven risk (stage
3), the consequence of an increase in defaults in the corporate
market, and additional provisioning for a number of
corporate-specific files. There was also a reversal of
+€1 million on other risks. The provisioning levels were
determined by taking into account several weighted economic
scenarios and by applying some flat-rate adjustments on sensitive
portfolios. The weighted economic scenarios for the third quarter
were unchanged from the second quarter, with a favourable scenario
(French GDP at +1.2% in 2024, +1.5% in 2025) and an unfavourable
scenario (French GDP at -0.2% in 2024 and +0.5% in 2025).
The cost of
risk/outstandings8
reached 26 basis points over a four rolling quarter
period and 27 basis points on an annualised quarterly
basis9.
Underlying pre-tax income stood at
€2,912 million, a year-on-year decrease of -1.6%.
This includes the contribution from equity-accounted entities of
€61 million (down -3.5%) and net income on other assets, which
came to -€2 million this quarter. The underlying tax
charge fell by -13.8% over the period,
the tax rate this quarter falling by -3.0 percentage points to
20.9%. Underlying net income before non-controlling interests was
up +2.0% to €2,317 million. Non-controlling interests rose
+6.5%. Lastly, underlying
net income Group share was €2,100 million,
+1.5% higher than in the third quarter of 2023.
Crédit Agricole Group – Stated and underlying results 9M-24 and
9M-23
|
€m |
9M-24
stated |
Specific items |
9M-24
underlying |
9M-23
stated |
Specific items |
9M-23
underlying |
∆ 9M/9M
stated |
∆ 9M/9M
underlying |
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Revenues |
28,244 |
117 |
28,127 |
27,722 |
758 |
26,965 |
+1.9% |
+4.3% |
| Operating
expenses excl.SRF |
(16,866) |
(84) |
(16,782) |
(15,782) |
(18) |
(15,764) |
+6.9% |
+6.5% |
| SRF |
- |
- |
- |
(620) |
- |
(620) |
(100.0%) |
(100.0%) |
| Gross
operating income |
11,378 |
33 |
11,345 |
11,321 |
739 |
10,581 |
+0.5% |
+7.2% |
| Cost of
risk |
(2,324) |
(20) |
(2,304) |
(2,179) |
(84) |
(2,095) |
+6.6% |
+10.0% |
|
Equity-accounted entities |
203 |
(0) |
203 |
190 |
(39) |
229 |
+6.7% |
(11.2%) |
| Net income on
other assets |
(19) |
(23) |
4 |
107 |
89 |
18 |
n.m. |
(78.5%) |
| Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
9,238 |
(10) |
9,248 |
9,438 |
705 |
8,733 |
(2.1%) |
+5.9% |
| Tax |
(2,104) |
(4) |
(2,100) |
(2,293) |
(180) |
(2,113) |
(8.2%) |
(0.6%) |
| Net income from
discont'd or held-for-sale ope. |
- |
- |
- |
7 |
- |
7 |
(100.0%) |
(100.0%) |
| Net
income |
7,134 |
(14) |
7,148 |
7,153 |
525 |
6,628 |
(0.3%) |
+7.9% |
| Non controlling
interests |
(643) |
17 |
(659) |
(619) |
(0) |
(619) |
+3.8% |
+6.5% |
| Net
income Group Share |
6,491 |
3 |
6,489 |
6,534 |
525 |
6,009 |
(0.6%) |
+8.0% |
|
Cost/Income ratio excl.SRF (%) |
59.7% |
|
59.7% |
56.9% |
|
58.5% |
+2.8 pp |
+1.2 pp |
In the first nine months of
2024, stated net income Group share amounted to
€6,491 million, compared with €6,534 million in the first
nine months of 2023, a difference of just -0.6%.
Specific items for the first nine months of 2024
include the specific items of the Regional Banks for the first nine
months of 2024 (+€47 million in reversals of Home Purchase
Savings Plan provisions) and Crédit Agricole S.A.
specific items, which are detailed in the
Crédit Agricole S.A. section.
Excluding specific items,
underlying net income Group share
reached €6,489 million, up +8.0%
compared to the first nine months of 2023.
Underlying revenues totalled
€28,127 million, up +4.3% compared
to the first nine months of 2023. This increase is
attributable to growth in all business lines, reaching a total,
excluding the Corporate Centre division, of +4.6% compared to the
first nine months of 2023.
Underlying operating expenses
amounted to -€16,782 million, up +6.5% excluding SRF compared
to the first nine months of 2023, mainly due to higher compensation
in an inflationary environment, support for business development,
IT expenditure and scope effects as detailed for each division.
The underlying cost/income ratio for the first
nine months of 2024 was 59.7%, up +1.2 percentage points
compared to the first nine months of 2023 excluding SRF. The SRF
stood at -€620 million in 2023.
Underlying gross operating
income totalled €11,345 million, up +7.2% compared to
the first nine months of 2023.
The underlying cost of risk for
the first nine months of 2024 rose to -€2,304 million (of
which -€178 million in cost of risk on performing loans
(stages 1 and 2), -€2,148 million in cost of proven risk, and
+€22 million in other risks corresponding mainly to reversals
of legal provisions), i.e. an increase of +10.0% compared to the
first nine months of 2023.
As at 30 September 2024, risk indicators confirm
the high quality of Crédit Agricole Group’s
assets and risk coverage level. The diversified loan book
is mainly geared towards home loans (45% of gross outstandings) and
corporates (33% of gross outstandings). Loan loss reserves amounted
to €21.3 billion at the end of September 2024
(€11.7 billion for Regional Banks), 41% of which represented
provisioning of performing loans (47% for Regional Banks). The
prudent management of these loan loss reserves meant that the
Crédit Agricole Group’s overall coverage ratio for
doubtful loans at the end of September 2024 was 82.8%.
Underlying net income on other
assets stood at €4 million in the first nine months
of 2024, versus €18 million in the first nine months of 2023.
Underlying pre-tax income before discontinued
operations and non-controlling interests rose by +5.9% to
€9,248 million. The tax charge was -€2,100 million, a
change of just -0.6%, with an underlying effective tax rate of
23.2%, down -1.6 percentage points compared to the first nine
months of 2023. Underlying net income before non-controlling
interests was therefore up by +7.9%. Non-controlling interests
amounted to -€659 million in the first nine months of 2023, up
+6.5%.
Underlying net income Group share for
first nine months of 2024 thus stood at
€6,489 million, up +8.0% compared to the first nine months of
2023.
Regional banks
Gross customer capture stands
at +275,000 new customers and the customer base
grew by +27,000 new customers over the same period. The
percentage of customers using demand deposits as their main account
and those who use digital tools continued to increase.
Loan production was down -7%
compared to the third quarter of 2023, reflecting the -11% drop in
home loans and the decline in specialised markets. Home loan
production has been gradually recovering since the beginning of the
year (+20% compared to the second quarter 2024). The average
lending production rate for home loans stood at 3.47%10
over July and August 2024, -16 basis points lower than in the
second quarter of 2024. By contrast, the global loan stock rate
showed a gradual improvement (+27 basis points compared to the
third quarter of 2023). Outstanding loans totalled
€646 billion at the end of September 2024, stable year-on-year
across all markets but up slightly by +0.5% over the quarter.
Customer assets were up +3.6%
year-on-year to reach €903 billion at the end of September
2024. This growth was driven both by on-balance sheet deposits,
which reached €601 billion (+2.5% compared to end September
year-on-year), and off-balance sheet deposits, which reached
€302 billion (+5.9% year-on-year) benefiting from favourable
market effects and strong inflows in unit-linked bonds
(€8 billion cumulative year-on-year). The mix of on-balance
sheet deposits for the quarter remained almost unchanged, with
demand deposits and term deposits fluctuating by -0.6% and +1%
respectively from end-June 2024.
The equipment rate for property and
casualty insurance11 was 43.8%
at the end of September 2024 and continues to rise (up
+0.7 percentage point compared to the end of September 2023).
In terms of payment instruments, the number of
cards rose by +1.7% year-on-year, as did the percentage of premium
cards in the stock, which increased by 1.9 percentage points
year-on-year to account for 16.0% of total cards.
In the third quarter of 2024,
the Regional Banks’ consolidated revenues including the SAS
Rue La Boétie dividend12 stood
at €3,220 million, down -2.1% compared to the third quarter of
2023, notably impacted by a base effect of
+€118 million13 related to the reversal of the Home
Purchase Savings Plan provision in the third quarter of 2023.
Excluding this item, revenues were up +1.5% year-on-year, the
decline in the net interest margin (-11.6% excluding the Home
Purchase Savings Plan13 base effect) being offset by the
rise in portfolio revenues (+41.8%) and fee and commission income
(+4.9%), itself driven by buoyant business in life insurance and
account management. Operating expenses were up
+3.5%, due to an increase in staff costs, property expenses and IT
costs. Gross operating income was down -15.3%
year-on-year (-3.8% excluding the Home Purchase Savings
Plan13 base effect). The cost of risk was
up by +43.7% compared to the third quarter of 2023 to
stand at -€369 million. mainly due to the increase in proven
risk in the corporate sector. Cost of
risk/outstandings remained under control, at 22 basis
points.
The Regional Banks’ consolidated net
income, including the SAS Rue La Boétie
dividend,12 amounted to €351 million, down -38.0%
compared to the third quarter of 2023 (-26.5% excluding the base
effect13).
The Regional Banks’ contribution to net
income Group share was €371 million in the third
quarter of 2024, down -36.9% compared to the third quarter of
2023.
In the first nine months of
2024, revenues including the SAS Rue La Boétie
dividend were up +2.2% compared to the same period in
2023. Operating expenses rose by +1.7%, resulting in a rise in
gross operating income of +3% for the first nine
months of 2024. Finally, with a cost of risk up
+29%, the Regional Banks’ net income Group share, including
the SAS Rue La Boétie dividend, amounted to
€3,051 million, up +0.5% compared to the first nine months of
2023 (+1.9% excluding the Home Purchase Savings Plan base
effect).
The Regional Banks’ contribution to the
results of Crédit Agricole Group in the first nine months
of 2024 amounted to €1,021 million in stated net
income Group share (-28.1% compared to the same period in 2023),
with revenues of €9,834 million (-2%), expenses of -€7,453
(+3.3%) and a cost of risk of -€1,056 million (+27%).
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of
Directors, chaired by Dominique Lefebvre, met on 5 November 2024 to
examine the financial statements for third quarter 2024.
Crédit Agricole S.A. – Stated and underlying results, Q3-24 and
Q3-23
| €m |
Q3-24
stated |
Specific items |
Q3-24
underlying |
Q3-23
stated |
Specific items |
Q3-23
underlying |
∆ Q3/Q3
stated |
∆ Q3/Q3
underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
6,487 |
3 |
6,484 |
6,343 |
284 |
6,060 |
+2.3% |
+7.0% |
| Operating
expenses excl.SRF |
(3,689) |
(34) |
(3,654) |
(3,376) |
0 |
(3,376) |
+9.2% |
+8.2% |
| SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Gross
operating income |
2,799 |
(31) |
2,830 |
2,967 |
284 |
2,684 |
(5.7%) |
+5.5% |
| Cost of
risk |
(433) |
0 |
(433) |
(429) |
0 |
(429) |
+0.9% |
+0.9% |
|
Equity-accounted entities |
42 |
- |
42 |
23 |
(26) |
50 |
+81.3% |
(15.3%) |
| Net income on
other assets |
(4) |
(3) |
(1) |
69 |
61 |
8 |
n.m. |
n.m. |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
2,404 |
(34) |
2,438 |
2,630 |
318 |
2,312 |
(8.6%) |
+5.4% |
| Tax |
(476) |
8 |
(484) |
(633) |
(89) |
(544) |
(24.8%) |
(11.0%) |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
2 |
- |
2 |
n.m. |
n.m. |
| Net
income |
1,928 |
(26) |
1,954 |
1,999 |
229 |
1,770 |
(3.5%) |
+10.4% |
| Non
controlling interests |
(262) |
6 |
(268) |
(251) |
(2) |
(250) |
+4.2% |
+7.5% |
| Net
income Group Share |
1,666 |
(20) |
1,686 |
1,748 |
227 |
1,520 |
(4.7%) |
+10.9% |
|
Earnings per share (€) |
0.50 |
(0.01) |
0.51 |
0.53 |
0.07 |
0.46 |
(5.5%) |
+11.4% |
|
Cost/Income ratio excl. SRF (%) |
56.9% |
|
56.4% |
53.2% |
|
55.7% |
+3.6 pp |
+0.6 pp |
In the third quarter of
2024, Crédit Agricole S.A.’s stated
net income Group share came to
€1,666 million, down -4.7% compared to the
third quarter of 2023, having benefited from
non-recurring items related to reversals of the Home Purchase
Savings Plan provisions (see below). This was an excellent result
for the third quarter of 2024, based on high revenues and a
cost/income ratio kept at a low level.
Specific items for this quarter
had a cumulative impact of -€20 million on net income Group
share, and included the following recurring accounting items:
recurring accounting volatility items in revenues, such as the DVA
(Debt Valuation Adjustment), the issuer spread portion of the FVA
and secured lending for +€3 million in net income Group share
in the Large Customers segment, and the hedging of the loan book in
the Large Customers segment for -€1 million in net income
Group share. In addition to these recurring items, there were a
number of items specific to this quarter: Degroof Petercam
integration costs of -€6 million in the net income Group share
in Asset Gathering; ISB integration costs for -€14 million in
the net income Group share in Large Customers, and the acquisition
costs of Degroof Petercam for -€2 million in the net income
Group share in Asset Gathering.
Specific items for the third
quarter of 2023 had a cumulative impact of +€227 million on
net income Group share, and comprised recurring accounting items
amounting to +€208 million (primarily reversals of Home
Purchase Savings Plan provisions for +€37 million at LCL and
+€171 million at the Corporate Centre). Non-recurring items
were related to the ongoing reorganisation of the SFS division’s
Mobility business amounting to +€19 million.
Excluding a positive base effect related to the
reversals of Home Purchase Savings Plan provisions, net
income Group share was up +8.2% for the period.
Excluding specific items,
underlying net income Group
share14 stood at
€1,686 million in the third quarter of 2024,
up +10.9% compared to the third quarter of 2023.
In the third quarter of 2024, underlying
revenues were at a high level, standing at
€6,484 million. They were up sharply by +7.0% compared to the
third quarter of 2023. This growth was driven by the Asset
Gathering business line, which recorded growth of +12.9% as a
result of strong business momentum and the integration of Degroof
Petercam15; the Large Customers business line (+8.7%),
which saw good results from all business lines with continued
revenue growth in the third quarter in Corporate and Investment
Banking, in addition to an improvement in the net interest margin
and fee and commission income within CACEIS; Specialised Financial
Services (-1.5%), which benefited from favourable scope and volume
effects as well as a more stable margin in the Personal Finance and
Mobility business line; French Retail Banking (+3.7%), which was
boosted by an improved net interest margin and higher fee and
commission income; and lastly, International Retail Banking
(-1.8%), which was essentially impacted by the decline in the net
interest margin in Italy. The Corporate Centre division recorded an
increase in revenues of +€43 million.
Underlying operating expenses
totalled -€3,654 million in the third quarter of 2024, an
increase of +8.2% compared to the third quarter of 2023, reflecting
the support given to business line development. The
-€278 million year-on-year increase in expenses was mainly due
to a -€112 million scope effect,16 integration
costs of -€29 million17, and a positive tax-related
base effect of -€30 million. Recurring expenses were up by
-€141 million, or +4.1% (-€38 million in staff costs,
-€76 million in IT investments and -€27 million in other
expenses).
The underlying cost/income
ratio in the third quarter of 2024 thus stood at 56.4%, an
increase of +0.6 percentage points compared to the third
quarter of 2023.
Underlying gross operating
income in the third quarter of 2024 stood at
€2,830 million, an increase of +5.5% compared to the third
quarter of 2023. It was up +4.2% when restated solely for reversals
of the Home Purchase Savings Plan provisions.
As at 30 September 2024, risk indicators confirm
the high quality of Crédit Agricole S.A.’s assets
and risk coverage level. The diversified loan book is
mainly geared towards home loans (26% of gross outstandings) and
corporates (43% of Crédit Agricole S.A. gross
outstandings). The Non Performing Loans ratio showed little change
from the previous quarter and remained low at 2.5%. The coverage
ratio18 was high at 71.4%, up +0.1 percentage
points over the quarter. Loan loss reserves
amounted to €9.6 billion for Crédit Agricole S.A., a
-€0.1 billion decline from end-June 2024. Of those loan loss
reserves, 34% were for performing loans (percentage in line with
previous quarters).
The underlying cost of risk
showed a net addition of -€433 million, up +0.9% from the
third quarter of 2023, which included a -€38 million addition
for performing loans (stages 1 and 2) (versus a reversal of
+€59 million in the third quarter of 2023) and
-€388 million in provisioning for proven risks (stage 3)
(versus -€487 million in the third quarter of 2023). There was
also a small addition of -€7 million for other items (legal
provisions). By business line, 52% of the net addition for the
quarter came from Specialised Financial Services (unchanged from
end-September 2023), 19% from LCL (16% at end-September 2023), 14%
from International Retail Banking (28% at end-September 2023), 4%
from Large Customers (3% at end-September 2023) and 8% from the
Corporate Centre (zero at end-September 2023). The increase in the
cost of risk for the Corporate Centre was mainly due to the
increase in the risk on financing secured by Foncaris. The
provisioning levels were determined by taking into account several
weighted economic scenarios and by applying some flat-rate
adjustments on sensitive portfolios. The weighted economic
scenarios for the third quarter were unchanged from the second
quarter, with a favourable scenario (French GDP at +1.2% in 2024,
+1.5% in 2025) and an unfavourable scenario (French GDP at -0.2% in
2024 and +0.5% in 2025). In the third quarter of 2024, the cost of
risk/outstandings was 32 basis points over a rolling
four-quarter period19 and 32 basis points on an
annualised quarterly basis20 (an improvement of 1 basis
point compared to the third quarter of 2023 for both bases).
The underlying contribution from
equity-accounted entities amounted to
€42 million in the third quarter of 2024, down -15.3% compared
to the third quarter of 2023, driven in particular by the strong
growth of equity-accounted entities in asset management and a
decline in the Personal Finance and Mobility business line.
Underlying
income21 before
tax, discontinued operations and non-controlling interests
was up +5.4% to €2,438 million. The underlying
effective tax rate stood at 20.2%, i.e. down
-3.8 percentage points compared to the third quarter of 2023.
The underlying tax charge was -€484 million, down -11% mainly
due to the impact of reduced-tax disposals of equity interests and
the revaluation of securities at fair value in the Insurance
business line, partially offset by the increase in the tax rate in
Ukraine. Underlying net income before
non-controlling interests was up +10.4% to
€1,954 million. Non-controlling interests
amounted to -€268 million in the third quarter of 2024, an
increase of +7.5%.
Underlying earnings per share
in third quarter of 2024 reached €0.51,
increasing by +11.4% compared to the third quarter of 2023.
Crédit Agricole S.A. – Stated and underlying results, 9M-24 and
9M-23
| €m |
9M-24
stated |
Specific items |
9M-24
underlying |
9M-23
stated |
Specific items |
9M-23
underlying |
∆ 9M/9M
stated |
∆ 9M/9M
underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
20,089 |
53 |
20,036 |
19,140 |
598 |
18,542 |
+5.0% |
+8.1% |
| Operating
expenses excl.SRF |
(10,978) |
(84) |
(10,894) |
(9,922) |
(18) |
(9,904) |
+10.6% |
+10.0% |
| SRF |
- |
- |
- |
(509) |
- |
(509) |
(100.0%) |
(100.0%) |
| Gross
operating income |
9,111 |
(30) |
9,141 |
8,709 |
580 |
8,129 |
+4.6% |
+12.5% |
| Cost of
risk |
(1,256) |
(20) |
(1,236) |
(1,338) |
(84) |
(1,253) |
(6.1%) |
(1.3%) |
|
Equity-accounted entities |
132 |
(0) |
132 |
136 |
(39) |
175 |
(3.4%) |
(24.7%) |
| Net income on
other assets |
5 |
(23) |
28 |
102 |
89 |
13 |
(95.3%) |
x 2.1 |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
7,991 |
(73) |
8,064 |
7,609 |
545 |
7,064 |
+5.0% |
+14.2% |
| Tax |
(1,790) |
12 |
(1,803) |
(1,832) |
(149) |
(1,682) |
(2.3%) |
+7.1% |
| Net income
from discont'd or held-for-sale ope. |
- |
- |
- |
7 |
- |
7 |
n.m. |
n.m. |
| Net
income |
6,201 |
(61) |
6,262 |
5,785 |
396 |
5,389 |
+7.2% |
+16.2% |
| Non
controlling interests |
(803) |
16 |
(820) |
(771) |
(2) |
(769) |
+4.2% |
+6.6% |
| Net
income Group Share |
5,397 |
(45) |
5,442 |
5,014 |
394 |
4,620 |
+7.6% |
+17.8% |
|
Earnings per share (€) |
1.59 |
(0.01) |
1.60 |
1.53 |
0.13 |
1.40 |
+3.8% |
+14.5% |
|
Cost/Income ratio excl.SRF (%) |
54.6% |
|
54.4% |
51.8% |
|
53.4% |
+2.8 pp |
+1.0 pp |
In the first nine months of
2024, stated net income Group share amounted to
€5,397 million, compared with €5,014 million in the first
nine months of 2023, an increase of +7.6%.
Specific items in the first nine months
of 2024 had a negative impact of
-€45 million on stated net income Group
share, and comprise +€39 million in recurring accounting items
and -€84 million in non-recurring items. The recurring items
mainly correspond to the reversals of and additions to the Home
Purchase Savings Plans provisions for +€1 million net, as well
as the accounting volatility items of the Large Customers division
(the DVA for +€33 million and loan book hedging for
+€5 million). Non-recurring items relate to the costs of
integrating and acquiring Degroof Petercam (-€27 million)
within the Asset Gathering division, the costs of integrating
(-€37 million) and acquiring (-€17 million) ISB within
the Large Customers division and an additional provision for risk
in Ukraine (-€20 million) within the International Retail
Banking division.
Excluding specific items,
underlying Net income Group share
reached €5,442 million, up
+17.8% compared to the first nine months of
2023.
Underlying revenues were
up +8.1% compared to the first nine
months of 2023, driven by all business lines. Underlying
operating expenses were +10% higher than in 2023,
essentially reflecting the development of the Group’s business
lines and the integration of scope effects, partially offset by the
end of the SRF22 building-up period. The underlying
cost/income ratio excluding SRF for the period was 54.4%, an
increase of 1 percentage point compared to the same period in
2023. Underlying gross operating income totalled
€9,141 million, up +12.5% compared to the first nine months of
2023. The underlying cost of risk decreased by
-1.3% over the period to -€1,236 million, versus
-€1,253 million in 2023. Lastly, underlying contributions from
equity-accounted entities amounted to €132 million, down
-24.7% over the period.
Underlying earnings per share were €1.60
per share in the first nine months of 2024, up
+14.5% compared to the first nine months of
2023.
Underlying
RoTE 23, which is calculated on
the basis of an annualised underlying Net Income Group
Share 24 and IFRIC charges linearised over the
year, net of annualised Additional Tier 1 coupons (return
on equity Group share excluding intangibles) and net of foreign
exchange impact on reimbursed AT1, and restated for certain
volatile items recognised in equity (including unrealised gains
and/or losses), reached 14.5% over the first nine
months of 2024, up by +1 percentage point compared to the
first nine months 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 2024, assets under
management in the Asset Gathering division (AG) totalled
€2,809 billion, up +€46 billion over the quarter (or
+1.7%), mainly due to a positive market effect and a good level of
net inflows in the three business lines of Asset Management,
Insurance and Wealth Management. Over the year, assets under
management rose by +13.1%.
Insurance activity
(Crédit Agricole Assurances) was very strong
with total premium income of €9.7 billion – a record level for
a third quarter – up +38.9% compared to the third quarter of 2023,
and up in all three segments: savings/retirement, property and
casualty, and death & disability/creditor/group insurance. In
total, overall premium income stood at €32.8 billion, up
+18.2% compared to the first nine months of 2023.
In Savings/Retirement,
third-quarter premium income stood at €7.2 billion, up +56.4%
compared to the third quarter of 2023. Business was driven by euro
payment bonus campaigns in France, launched during the first
quarter, which boosted gross euro inflows, as well as by a
confirmed upturn in international business. The unit-linked rate
accounted for 32.8% of gross inflows, down -7.5 percentage
points compared to the third quarter of 2023. This decline is
linked to the recovery in gross euro inflows and less favourable
market conditions for unit-linked products, in particular the
reduced attractiveness of unit-linked bond products. Net inflows
totalled +€1.6 billion this quarter, on par with last quarter.
This level is made up of positive net inflows from unit-linked
contracts (+€0.9 billion) and also from euro funds
(+€0.8 billion). In total, Savings/Retirement premium income
reached €23.9 billion at the end of September, up +23.1%
compared to the end of September 2023.
Assets under management
(savings, retirement and funeral insurance), which stood at
€343.2 billion, continued to rise and reached their highest
level ever. They were up +€19.0 billion over one year, or
+5.8%, and +€12.9 billion since the beginning of the year, or
+3.9%. The growth of assets under management was supported by a
positive market effect and positive net inflows. Unit-linked
contracts reached 29.9% of assets under management, up
+2.3 percentage points over one year and +1.0 percentage
point compared to the end of December 2023.
In property and casualty
insurance, premium income stood at €1.2 billion in
the third quarter of 2024, up +9.2%25 compared to the
third quarter of 2023. This growth was driven by volume and price
effects. Indeed, at the end of September 2024, the portfolio stood
at nearly 16.6 million26 contracts, up +5.1%
year-on-year. At the same time, the average premium was up,
benefiting from rate revisions in addition to changes in the
product mix. Lastly, the combined ratio at the end of
September 2024 stood at 95.5%27, a deterioration of
+0.3 percentage point year-on-year due to the unfavourable
impact of discounting. In total, at the end of September 2024,
premium income stood at €4.9 billion, an increase of +7.8%
compared to the first nine months of 2023.
In death & disability/creditor/group
insurance, premium income for the third quarter of 2024
stood at €1.3 billion, up +2.2% compared to the third quarter
of 2023. Creditor insurance premium income rose by +1.6% compared
to the third quarter of 2023, thanks to an upturn in consumer
finance and good performance in real estate. Death and disability
was up +3.5% compared to the third quarter of 2023, mainly driven
by group insurance, which posted an increase of +9.5%. In group
insurance, an agreement was signed with Industries Electriques et
Gazières in October 2024, with effect from the second half of 2025.
In total, at the end of September, premium income from personal
protection stood at €4.0 billion, an increase of +5.7%
compared to the first nine months of 2023.
In Asset Management (Amundi),
Amundi’s assets under management saw a +11.1%
increase year-on-year at 30 September 2024 and a +1.6% increase
over the quarter to €2,192 billion, an all-time high. The
+€35.4 billion increase in assets under management over the
quarter was due to a positive market and foreign exchange impact of
+€32.5 billion and positive net inflows of
+€2.9 billion.
This quarter’s net inflows include the exit from
a mandate worth €11.6 billion with a European insurer, which
was not generating much revenue. Adjusted for this outflow, net
inflows for the quarter stood at +€14.4 billion, including
+€9.1 billion in medium- and long-term
assets28, driven by active management and ETFs.
Structured products and real and alternative assets also recorded
positive inflows, while treasury
products28 were stable. Lastly, the
JVs continued their solid commercial momentum,
with net inflows of +€5.3 billion, reflecting a positive
contribution from India and South Korea.
By customer segment, Retail
inflows (+€6.3 billion in the third quarter of 2024) were
driven by the excellent momentum of third-party distributors
(+€6.8 billion), across all regions and with good
diversification of inflows by asset class. Excluding the loss of
the insurance mandate mentioned above, the
Institutional segment recorded very positive
inflows in MLT assets across all segments, in particular
Institutional and Sovereign, and on mandates from insurers in the
Crédit Agricole Groupe and the Société Générale group,
thanks to the continued recovery in the euro-denominated life
insurance policies market in France during the quarter. Treasury
products, on the other hand, experienced sharp seasonal outflows in
this segment.
In Wealth Management, total
assets under management (CA Indosuez Wealth Management and LCL
Private Banking) amounted to €274 billion at the end of
September 2024, and were up +2.7% compared to June 2024 and +46.9%
compared to September 2023.
Indosuez Wealth Management had assets under
management of €209.2 billion29 at the end of
September, up +2.1%, or +€4.2 billion, compared to the end of
June 2024 due to a positive market effect of +€2.5 billion and
good level of activity with positive net inflows of
+€1.8 billion, driven in particular by Switzerland and Asia.
The quarter also saw Degroof Petercam funds begin to be marketed to
Indosuez clients. Compared with the end of September 2023, assets
under management were up by +€84.3 billion (or +67.5%), taking
into account a scope effect of €69 billion (integration of
Degroof Petercam in June 2024), a positive market effect and a good
level of net inflows.
In LCL’s Private Banking division, assets under
management at the end of September totalled €64.8 billion, up
by +€1.0 billion or +1.5% compared to the end of June 2024,
thanks to a positive market effect and positive net inflows.
Compared with the end of September 2023, assets under management
were up by +€3.2 billion (or +5.3%), mainly due to a positive
market effect, and also to positive net inflows.
Results of the Asset Gathering division
In the third quarter of 2024, AG generated
€1,870 million in revenues, up +12.9%
compared to the third quarter of 2023. Expenses
rose by +20.9% to -€868 million. Thus, the cost/income
ratio stood at 46.4%, up +3.0 percentage points
compared to the third quarter of 2023. Gross operating income stood
at €1,002 million, up +6.9% compared to the third quarter of
2023. Taxes stood at -€157 million, compared with
-€221 million at the end of September 2023 (down -29.1%). The
net income Group share of AG stood at
€728 million, up +17.1% compared to the third quarter of
2023.
At the end of September 2024, AG generated
revenues of €5,603 million, up +9.1% compared
to the end of September 2023. The increase is explained by a very
high level of revenues in all three business lines: Insurance,
Asset Management and Wealth Management. Costs excluding SRF
increased +13.4%. As a result, the cost/income ratio excluding SRF
stood at 43.5%, up +1.6 percentage points compared to the
end of September 2023. Gross operating income stood at
€3,168 million, an increase of +6.3% compared to the end of
September 2023. Taxes stood at -€659 million, compared with
-€699 million at the end of September 2023 (down -5.7%). The
net income Group share of AG stood at
€2,180 million, up +9.3% compared to the first nine months of
2023. Net income Group share increased between the first nine
months of 2023 and the first nine months of 2024 in Asset
Management (+10.2%) and the Insurance business lines (+11.3%), but
was down in Wealth Management (-18.9%).
At the end of September 2024, the Asset
Gathering division contributed by 37% 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 2024, equity allocated to the
division amounted to €12.6 billion, including
€10.4 billion for Insurance, €1.3 billion for Asset
Management, and €0.8 billion for Wealth Management. The
division’s risk-weighted assets amounted to €58.7 billion,
including €35.7 billion for Insurance, €14.1 billion for
Asset Management and €8.9 billion for Wealth Management.
The underlying
RoNE (return on normalised equity) stood at 27.1%
for the first nine months of 2024.
Insurance results
In the third quarter of 2024, insurance
revenues amounted to €635 million, down -1.2%
compared to the third quarter of 2023. This includes
€418 million from savings/retirement30,
€117 million from personal protection31 and
€40 million from property and casualty insurance32.
Against a backdrop of increased business activity, the decline in
revenues is explained in particular by the change in Property &
Casualty claims, which were low in the third quarter of 2023 and
higher in the third quarter of 2024, particularly for crop
insurance, as well as by an unfavourable effect linked to the
replacement of AT1 debt (for which the expense was recorded as
minority interests) by Tier 2 debt (the cost of which is deducted
from revenues).
The contractual service margin
(CSM) stood at €24.9 billion, up +4.5% since 31 December 2023.
In the first nine months of 2024, the impact of the stock
revaluation was positive, and the impact of new business exceeded
the CSM allocation.
Non-attributable expenses for the quarter stood
at €85 million, up +5.1% over the third quarter of 2023.
Gross operating income stood at €550 million,
down -2.1% compared to the third quarter of 2023. Taxes stood at
-€51 million, compared with -€131 million for the third
quarter of 2023. This decline is due to a re-estimation of the tax
rate including the impact of reduced-tax disposals of equity
interests and the revaluation of securities at fair value, which
took place during the quarter. Net income Group
share stood at €478 million, up +16.2% compared to
the third quarter of 2023.
Revenues from insurance in the first
nine months of 2024 came to €2,130 million, up +5.4%
compared to the total at the end of September 2023.
Non-attributable expenses came to €264 million, i.e. an
increase of +11.4%. The cost/income ratio stood at 12.4%, below the
target ceiling of 15% set by the Medium-Term Plan. Gross operating
income stood at €1,866 million, up +4.6% compared to the first
nine months of 2023. The tax charge stood at -€354 million,
below the September 2023 level of -€411 million. Net income
Group share amounted to €1,466 million, up +11.3% compared to
the first nine months of 2023.
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 the
end of September 2024 and by 10% to their underlying
revenues.
Asset Management results
In the third quarter of 2024,
revenues amounted to €838 million, showing
double-digit growth (+10.3% compared to the third quarter of 2023).
The +9.2% increase in management fee and commission income compared
to the third quarter of 2023 reflects the good level of activity
and the increase in average assets under management excluding JVs
(which increased by +8.6% over the same period, and by +1.2%
between the second and third quarter). Performance fees increased
by +€10 million compared with the third quarter of 2023, but
there were fewer crystallisation dates in the third quarter than in
the second or fourth quarters. Amundi Technology’s revenues
increased by +41.8% compared to the third quarter of 2023.
Financial revenues were down by -10.6% compared to third quarter of
2023. Operating expenses stood at
-€466 million, up +7.5% mainly due to the consolidation of
Alpha Associates, accelerated investment and the impact of revenue
growth on variable compensation. The jaws effect was positive over
the quarter. The cost/income ratio thus stood at
55.6%, an improvement year-on-year (-1.5 percentage point).
Gross operating income increased by +14.1%
compared to the third quarter of 2023. The contribution from
equity-accounted entities, comprising the contribution from
Amundi’s Asian joint ventures, stood at €33 million, up +36.4%
from the third quarter of 2023, driven mainly by the strong growth
of the contribution from SBI MF in India. The income tax charge
stood at -€92 million, up +14.9%. Net income before
non-controlling interests was €312 million, up +16.4% compared
to the total at the end of September 2023. Net income Group
share stood at €208 million, up +16.8% compared to
the third quarter of 2023.
In the first nine months of
2024, revenues rose by +7.2% in asset management,
reflecting sustained growth in management fee and commission income
and a sharp increase in Amundi Technology revenues (€54m, +28.2%)
and net financial income. Performance fees were down slightly
(-2.0%). Operating expenses excluding SRF increased by +6.3%. The
cost/income ratio excluding SRF was 55.3%, stable compared to the
total at the end of September 2023. As a result, gross operating
income was up +8.8% compared to the first nine months of 2023. The
net income of equity-accounted entities increased by +28.4%. All in
all, net income Group share for the half-year stood at
€623 million, an increase of +10.2%.
Asset management contributed 10% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end September 2024 and by
12% to their underlying revenues.
At 30 September 2024, equity allocated to the
Asset Management business line amounted to €1.3 billion, while
risk-weighted assets totalled €14.1 billion.
Wealth Management
results33
Revenues of Wealth Management
stood at €397 million in the third quarter of 2024, up +56.6%
compared to the third quarter of 2023. Revenues benefited from the
impact of the integration of Degroof Petercam in June 2024;
excluding this effect, they were supported by the good momentum of
management fee and commission income, which offset the erosion of
interest revenues. Expenses totalled
-€317 million, up +55.5% compared to the third quarter of
2023, due to the impact of the integration of Degroof Petercam in
June 202434 and integration costs of -€8 million in
the third quarter. Restated for these impacts, growth in expenses
is stable (+0.2% compared to the third quarter of 2023). The
cost/income ratio in the third quarter of 2024
stood at 79.9%, down -0.6 percentage points compared to
the third quarter of 2023. Gross operating income stood at
€80 million, up +61.4% compared to the third quarter of 2023.
Cost of risk was -€11 million in the third quarter of 2024,
including the recognition of litigations and provisions for various
cases. Net income on other assets stood at -€3 million in the
third quarter of 2024, corresponding to the Degroof Petercam
acquisition costs, restated as specific items. Net income
Group share amounted to €42 million, up +30.6%
compared to the third quarter of 2023.
In the first nine months of 2024, Wealth
Management’s revenues rose by +24.7% compared to the end of
September 2023, notably benefiting from the integration of Degroof
Petercam in June 2024 to reach €967 million. Expenses
excluding SRF rose by +29.3% due to the impact of the integration
of Degroof Petercam in June 2024 and the €14 million in
integration costs. Restated for these impacts, growth in expenses
is under control, increasing by +3.6% compared to the first nine
months of 2023, due in particular to an unfavourable base effect in
2023. Gross operating income thus rose by +10.0% to
€181 million. The cost of risk was -€12 million at the
end of September 2024 (it was +€1 million at the end of
September 2023). Net income on other assets stood at
-€23 million at the end of September 2024, corresponding to
the Degroof Petercam acquisition costs, restated as specific items.
Net income Group share stood at €91 million for the first nine
months of 2024, down -18.9% compared to the first nine months of
2023, but up +4.5% after restatement for integration and
acquisition costs.
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 2024 and by 5% to their underlying
revenues.
At 30 September 2024, equity allocated to Wealth
Management was €0.8 billion and risk-weighted assets
totalled €8.9 billion.
Activity of the Large Customers division
Corporate and Investment Banking
(CIB) once again posted a very good performance in the
third quarter of 2024 (best third quarter and best year-to-date in
terms of both revenues and results). Asset
servicing also recorded strong business momentum during
the period.
CIB third-quarter underlying revenues rose
sharply to €1,528 million, an increase of +8.0% compared to
the third quarter of 2023, driven by growth in its two business
lines. Revenues from Financing activities were up +7.2% compared to
the third quarter of 2023, at €809 million. This was mainly
due to the excellent performance of Commercial Banking (+9.5%
compared to the third quarter of 2023), driven by the development
of Corporate activities, especially in the Telecom sector, and a
good level of revenues from asset financing and project financing.
Capital Markets and Investment Banking also reported revenue growth
of +9.0% compared to the third quarter of 2023, at
€719 million, driven by the continued high level of
performance of Capital Markets (+6.2% compared to the third quarter
of 2023 for FICC) and the good level of activity in Investment
Banking, (+22.8% compared to the third quarter of 2023), confirming
the trend observed at the end of the first half of 2024.
Financing activities thus confirmed its leading
position in syndicated loans (#2 in France35 and #2 in
EMEA35). Crédit Agricole CIB reaffirmed its
strong position in bond issues (#3 All bonds in
EUR Worldwide35) and was ranked #2 in Green, Social
& Sustainable bonds in EUR36. Average regulatory VaR
stood at €10.1 million in the third quarter of 2024,
unchanged from the second quarter of 2024 when it was
€10.1 million. It remained at a level that reflected prudent
risk management.
In addition, the third quarter of 2024 saw the
continued migration of ISB (formerly RBC Investor Services in
Europe) customer portfolios to CACEIS platforms, following the
effective merger of the legal entities with those of CACEIS on 31
May 2024. Customer migration is expected to continue until the end
of 2024. As a reminder, ISB integration costs will be recorded
during the year for an amount of around €80 million to
€100 million, including €25.9 million in the third
quarter of 2024, i.e. €70 million recorded in the first nine
months of 2024.
In the third quarter of 2024, solid customer
business and market effects supported growth in assets over the
year. Assets under custody increased by +1.9% at
the end of September 2024 compared to the end of June 2024 and
increased by +12.1% compared to the end of September 2023, to reach
€5,061 billion. Assets under administration
were down -1.2% over the quarter (planned exit of some ISB
customers) and up +4.2% year-on-year, reaching €3,386 billion
at the end of September 2024.
Results of the Large Customers division
In the third quarter of 2024,
stated revenues of the Large Customers division
once again reached a record level of €2,054 million, up +8.8%
compared to the third quarter of 2023, buoyed by excellent
performance in the Corporate and Investment Banking and Asset
Servicing business lines. The division’s specific items this
quarter had an impact of +€2.8 million on Corporate and
Investment Banking and comprised the DVA, the issuer spread portion
of the FVA and secured lending amounting to +€3.6 million, and
loan book hedging totalling -€0.8 million. Operating
expenses were up compared to the third quarter of 2023
(+8.8%), due, on the one hand, to IT investments and the
development of the business lines’ activity and, on the other hand,
to the recognition of ISB integration costs of -€25.9 million,
restated as specific items. As a result, the division’s
gross operating income was up +8.8% from the third
quarter of 2023 to €814 million. The division recorded an
overall net addition for cost of risk of -€19 million in the
third quarter of 2024, compared with an addition of
-€13 million in the third quarter of 2023. Stated pre-tax
income totalled €800 million, an increase over the period
(+8.2%). The tax charge was
-€234 million. Lastly, stated Net income Group
share reached €520 million in the third quarter of
2024, compared with stated income of €488 million in
the third quarter of 2023. Underlying net income Group share came
to €532 million in the third quarter of 2024, versus
€488 million in the third quarter of 2023.
Over the first nine months of
2024, stated revenues of the Large
Customers division amounted to a record high of
€6,543 million, i.e. +12.0% compared to the first nine months
of 2023. Operating expenses excluding SRF rose
+13.4% compared to the same period to -€3,298 million, largely
related to employee expenses and IT investments, and including ISB
integration costs of -€70 million. Gross operating income for
the first nine months of 2024 totalled €2,802 million,
representing an increase of +25.4% compared to the first nine
months of 2023. Over the period, the cost of risk
recorded a net addition of -€25 million, compared to an
addition of -€81 million in the same period. The business
line’s contribution to stated Net income Group
share was €1,936 million, a strong increase of +30.3%
compared to the first nine months of 2023. Underlying net income
Group share came to €1,935 million in the first nine months of
2024, versus €1,520 million in the first nine months of
2023.
The division contributed 33% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) at end September 2024 and 31% to
underlying revenues excluding the Corporate
Centre.
At 30 September 2024, the equity
allocated to the division was €13.3 billion and its
risk-weighted assets were €140.5 billion.
Underlying RoNE (return on
normalised equity) stood at 19.0% at the end of September 2024.
Corporate and Investment Banking
results
In the third quarter of 2024,
Corporate and Investment Banking stated revenues
reached a record at €1,531 million, up +8.2% from the
third quarter of 2023. The Corporate and Investment Banking
division’s specific items this quarter had an impact of
+€2.8 million and comprised the DVA, the issuer spread portion
of the FVA, and secured lending amounting to +€3.6 million,
and loan book hedging totalling -€0.8 million.
Operating expenses rose by +7.2% to
-€864 million, mainly due to IT investments and the
development of business line activities. Gross operating
income rose sharply by +9.5% compared to the third quarter
of 2023, taking it to a high level of +€667 million. The
cost/income ratio was 56.4%, a slight change of
-0.5 percentage point over the period. The cost
of risk recorded a limited net provision of
-€14 million, stable compared to the third quarter of 2023.
Lastly, pre-tax income in the third quarter of
2024 stood at €653 million, versus €596 million in the
third quarter of 2023. The tax charge stood at -€195 million.
Lastly, stated net income Group share rose sharply
by +10.3% to €446 million in the third quarter of 2024.
Over the first nine months of
2024, stated revenues rose by +7.6%
compared to the excellent level recorded in the first nine months
of 2023, to a record level of €4,995 million. The specific
items over the period had an impact of +€52.2 million and
comprised the DVA (the issuer spread portion of the FVA and secured
lending) amounting to +€45.8 million, and loan book hedging
totalling +€6.3 million. Operating expenses excluding
SRF rose +5.1%, mainly due to variable compensation and
investments in IT and employees to support the development of the
business lines. Thus, gross operating income of
€2,370 million was up sharply (+26.5% compared to the first
nine months of 2023). The cost of risk recorded a
net provision of -€7 million in the first nine months of 2024,
compared to a net provision of -€80 million in the first nine
months of 2023. The income tax charge stood at -€609 million,
up +27.1%. Lastly, stated net income Group share
stood at €1,715 million for the first nine months of 2024, an
increase of +33.6% over the period, the highest historical level.
Underlying Net income Group share stood at €1,677 million over
the first nine months of 2024, versus €1,318 million over the
same period in 2023.
Risk-weighted assets at the end of
September 2024 were down -€2.7 billion compared to
the end of June 2024 at €128.6 billion, still well under
control with business growth.
Asset servicing results
In the third quarter of 2024, the
revenues of Asset Servicing were up +10.7%
compared to the third quarter of 2023, standing at
€523 million. This rise was driven in particular by high fee
and commission income, itself driven by the increase in assets and
by the favourable trend in NIM. Operating expenses
rose by +12.8% to
-€376 million, including -€4 million in scope effects
linked to the consolidation of the remaining ISB entities and a
-€25.8 million in ISB integration costs restated as specific
items. Excluding these effects, the increase in expenses was +5.5%
compared to the third quarter of 2023. As a result, gross
operating income was up by +5.7% to €147 million in
the third quarter of 2024. Thus, the cost/income
ratio stood at 71.9%, up +1.3 percentage points.
Excluding ISB integration costs and the consolidation of the
remaining ISB entities, it stood at 66.2%, an improvement of
3.3 percentage points compared to the third quarter of 2023.
The quarter also recorded +€6 million in income from
equity-accounted entities. Net income thus
totalled €109 million, down -10.8% compared to the third
quarter of 2023. Adjusted for the €35 million share of
non-controlling interests, the business line’s contribution to
stated net income Group share totalled
€74 million in the third quarter of 2024, down -11.7% compared
to the third quarter of 2023. Excluding ISB integration costs,
net income Group share was up +4.8% compared to
the third quarter of 2023.
Stated revenues for the first nine
months of 2024 were up +28.7% compared to the same period
in 2023, buoyed by the integration of ISB, strong commercial
momentum and a favourable trend in the interest margin over the
period. Expenses excluding SRF were up +39.2% and
included a scope effect of -€207 million over the first six
months of 2024 and -€70 million in ISB integration costs.
Gross operating income was up +20.0% compared to
the first nine months of 2023. The cost/income
ratio stood at 72.1%, an improvement of 5.5 points
compared to the third quarter of 2023. Net income
thus rose by +10.1%. The overall contribution of the business line
to net income Group share in the first nine months
of 2024 was €221 million, a +9.3% increase compared to the
first nine months of 2023.
Specialised financial services activity
Crédit Agricole Personal Finance &
Mobility’s (CAPFM) commercial production totalled
€11.6 billion in the third quarter of 2024, stable compared to
the third quarter of 2023. The share of automotive
financing37 in quarterly new business production stood
at 50.6% this quarter. The average customer rate for production was
down -24 basis points from the second quarter of 2024. CAPFM’s
assets under management stood at
€116.8 billion at the end of September 2024, up +5.2% compared
to the end of September 2023, driven by all activities (Automotive
+6,9%38; LCL and Regional Banks +5.6%; Other entities
+3.3%). Lastly, consolidated outstandings totalled
€68.9 billion at the end of September 2024, up +4.7% compared
to the third quarter of 2023.
CAPFM has announced a number of recent
developments: a plan to acquire 50% of GAC Leasing; a pan-European
partnership with GAC Motor International to entrust CA Auto
Bank with the financing of vehicles made by Chinese manufacturer
GAC; a partnership with FATEC to offer a fleet management service
to its customers; and an agreement with EDF to ramp up the
installation of electric charging stations in France.
Crédit Agricole Leasing & Factoring
(CAL&F) commercial production
increased by +13.6% compared to the third quarter of 2023. It was
driven by all business lines, and was particularly strong in
property leasing and renewable energy financing.
Property leasing continued to grow in France and
abroad. Leasing outstandings rose +8.8%
year-on-year, both in France (+6.7%) and internationally (+17.4%),
to reach €20.1 billion at the end of September 2024 (of which
€15.9 billion in France and €4.2 billion
internationally). Commercial factoring production
fell by -17% compared to the third quarter of 2023. As a reminder,
the third quarter of 2023 was marked by record production in
Germany. Factoring outstandings at the end of
September 2024 were stable compared to the end of September
2023.
On 31 October 2024, Crédit Agricole Leasing
& Factoring announced that it had signed an agreement to
acquire Merca Leasing in Germany.
Specialised financial services’ results
The revenues of Specialised
Financial Services rose to €869 million in the third quarter
of 2024, down slightly by -1.6% compared to the third quarter of
2023. Expenses stood at -€437 million, up
+3.1% compared to the third quarter of 2023. The
cost/income ratio stood at 48%, up
+2.3 percentage points compared to the same period in 2023.
Gross operating income thus stood at
€433 million, down -5.9% compared to the third quarter of
2023. Cost of risk reached -€223 million,
stable compared to the third quarter of 2023. Net income from
equity-accounted entities rose significantly (x4.5
compared to the third quarter of 2023) to €23 million.
Excluding the base effect39 related to the
reorganisation of Mobility activities at CAPFM, the change was
-20.7%. Net income on other assets stood at
-€2 million, versus €57 million in the third quarter
of 2023. Excluding the base effect39 related to the
reorganisation of Mobility activities at CAPFM, the change was
-52.5%. The division’s Net income Group share
amounted to €172 million, down -15.6% compared to the same
period in 2023, and down -7% excluding the base
effect39.
Over the first nine months of
2024, revenues for the Specialised
Financial Services division fell by-4.1%, but rose by +7.8%
excluding the base effect40 related to the
reorganisation of Mobility activities at CAPFM, compared to the
first nine months of 2023. This favourable trend was driven by a
good performance in CAL&F (+8.5%) and by higher revenues for
CAPFM excluding the base effect40 (+7,6%), benefiting
from the scope effects linked to the strategic pivot around
Mobility at CAPFM, which led to the 100% consolidation of
Crédit Agricole Auto Bank from the second quarter of 2023 and
of ALD and LeasePlan activities in six European countries, as well
as the acquisition of a majority stake in the capital of Hiflow in
the third quarter of 2023. Underlying costs excluding
SRF increased by +8.9% compared to the first nine months
of 2023. Expenses excluding SRF, the base effect40 and
scope effects rose by +3.1%. The cost/income ratio
stood at 51.2%, or +6.1 percentage points versus the same
period in 2023; excluding the base effect40, the change
was +1.3 percentage points. The cost of risk
was down -4.9% compared to the first nine months of 2023, to
-€653 million, and up +8.4% excluding the base
effect40. This increase incorporated in particular the
impact of scope effects. The contribution from
equity-accounted entities was down -8.5% versus
the same period in 2023, and down -35.9% excluding the base
effect40, due to the full consolidation of
Crédit Agricole Auto Bank in the second quarter of 2023, which
was previously accounted for using the equity method. Net
income on other assets amounted to -€3 million at the
end of September 2024, compared to €81 million at the end of
September 2023 (-€7 million excluding the base
effect40).
Net income Group share
thus came to €502 million, down -21% compared to the first
nine months of 2023, but up +5.4% excluding the base
effect40 related to the reorganisation of Mobility
activities at CAPFM.
The business line contributed 8% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) at the end of September 2024 and 13% to
underlying revenues excluding the Corporate Centre.
At 30 September 2024, the equity
allocated to the division was €6.8 billion and its
risk-weighted assets were €71.8 billion.
The underlying RoNE (return on
normalised equity) stood at 9.0% for the first nine months of
2024.
Personal Finance and Mobility
results
CAPFM revenues totalled
€678 million in the third quarter of 2024, down -4.2% compared
to the third quarter of 2023. The price effect remained negative in
the third quarter of 2024 compared to the third quarter of 2023,
but stabilised compared to the second quarter of 2024, thanks in
particular to an improved production margin rate over the last few
quarters (stable in the third quarter of 2024 compared to the
second quarter of 2024, and up by +86 basis points compared to
the third quarter of 2023). Expenses remained
under control at -€338 million, up +2.4% compared to the same
period in 2023. Gross operating income stood at
€340 million, down -10%. The cost/income
ratio stood at 49.8%, up +3.2 percentage points
compared to the same period in 2023. The cost of
risk stood at -€201 million, down -2.4% from the
third quarter of 2023. The cost of
risk/outstandings thus stood at 112 basis
points41, an improvement of -16 basis points
compared to the third quarter of 2023. The Non Performing Loans
ratio was 4.5% at the end of June 2024, up
+0.2 percentage point compared to the end of June 2024,
while the coverage ratio reached 74.2%, down -1.6 percentage
points compared to the end of June 2024. The contribution from
equity-accounted entities rose sharply (x5.1)
compared to the same period in 2023, and fell by -20.7% excluding
the base effect related to the reorganisation of Mobility
activities39. Net income on other
assets amounted to -€2 million in the third quarter
of 2024, compared to €57 million in the third quarter of 2023.
Excluding the base effect39, net income on other assets
of the third quarter of 203 amounted to -€4 million. As a
result, net income Group share totalled
€118 million in the third quarter of 2024, i.e. -20.9%
compared to the same period the previous year. Excluding the base
effect39, net income Group share was down -9.3%.
In the first nine months of
2024, CAPFM’s revenues totalled
€2,042 million, down -7.1% compared with the first nine months
of 2023, but up +7.6% excluding the base effect related to the
reorganisation of Mobility activities42. Revenues
benefited from scope effects related to the strategic pivot around
Mobility, leading to the full consolidation of
Crédit Agricole Auto Bank from the second quarter of
2023 and the consolidation of the ALD and LeasePlan activities in
six European countries, as well as the acquisition of a majority
stake in the capital of Hiflow in the third quarter of 2023.
Expenses excluding SRF stood at
-€1,035 million, an increase of +9.9% on 2023. Expenses
excluding SRF, excluding the base effect42 and scope
effects, were up +2.2%. Gross operating income
therefore came in at €1,007 million, which was a drop of -19%
but an increase of +4.7% excluding the base effect42.
The cost/income ratio stood at 50.7%, or
+7.9 percentage points versus the same period in 2023. When
restated for the base effect, the change was +2.1 percentage
points. Cost of risk fell -7.3% compared with the
first nine months of 2023 to -€591 million, but rose +6.8%
when the base effect42 is excluded. This rise notably
includes the impact of scope effects. The contribution from
equity-accounted entities was down -5.4% versus
the same period in 2023, and down -33.1% excluding the base
effect42 related to the scope effects of
Crédit Agricole Auto Bank, which was fully
consolidated in the second quarter of 2023 having previously been
accounted for using the equity method. Income on other
assets fell -55.5%, or -63,4% excluding the base
effect42. As a result, net income Group
share stood at €349 million in the first nine months
of 2024, i.e. -31.3% from the same period one year earlier.
Excluding the base effect42, net income Group share was
stable at -0.1% compared with the same period in 2023.
Leasing & Factoring
results
CAL&F’s revenues totalled
€192 million, up +8.5% compared with the third quarter of
2023. This increase was driven by all business lines and benefited
from volume effects (increase in factored revenues and equipment
leasing outstandings). Expenses remained under
control with an increase of +4.8%, while the cost/income
ratio stood at 51.6%, an improvement of
-1.8 percentage points from the third quarter of 2023.
Gross operating income rose +12.7% to
€93 million, with a positive jaws effect of
+3.7 percentage points. Cost of risk totalled
-€22 million, up +25.1% compared with the same period in 2023,
linked to economic conditions in the corporate market. Cost
of risk/outstandings stood at 22 basis
points41, down slightly from the third quarter of 2023.
As a result, net income Group share was
€54 million, down -1.8% compared with the third quarter of
2023.
In the first nine months of 2024,
revenues totalled €563 million, an increase of +8.5%
compared with the first nine months of 2023. Costs
excluding SRF increased by +5.7% to €298 million.
Gross operating income rose sharply to
€265 million, a +19.8% increase compared with the
first nine months of 2023. The underlying cost/income
ratio excluding SRF amounted to 53%, an improvement of
-1.4 percentage points compared with the first nine months of
2023. Cost of risk was up compared with the same
period of 2023 (+26.7%). The business line’s contribution to
underlying net income Group share
was €153 million, up +20.2% compared with the first nine
months of 2023.
Crédit Agricole S.A. Retail Banking
activity
Activity in Crédit Agricole S.A.’s
Retail Banking business was solid during the
quarter, with customer capture continuing at a good pace and an
increasing number of customers taking out insurance policies. Home
loan production in France is steadily recovering, while continuing
to rise for corporate loans. Outside France, loan activity was
dynamic.
Retail banking activity in
France
In the third quarter of 2024,
activity remained buoyant with the confirmed recovery in mortgage
lending and the continued stabilisation of the mix of inflows.
Gross customer capture for the quarter stood at
76,000 new customers and net customer capture came in at 9,700
customers. The equipment rate for car, multi-risk home, health,
legal, all mobile phones or personal accident insurance rose by
+0.3 percentage points to stand at 27.9% at end-September
2024.
Loan production totalled €7.5 billion,
representing a year-on-year increase of +11%. The third quarter of
2024 confirmed the recovery in home loan production (+17% compared
to the third quarter of 2023 and +73% compared to the second
quarter of 2023), boosted by the proactive pricing policy. The
average production rate for home loans came to 3.38%, down
-46 basis points from the second quarter of 2024 and
-32 basis points year on year. The home loan stock rate
improved by +5 basis points over the quarter and by
+18 basis points year on year. The solid momentum continued in
the corporate market (+16% year on year). Production for small
businesses declined in a competitive market and challenging
economic environment.
Outstanding loans stood at €169 billion at
end-September 2024, representing a quarter-on-quarter increase of
+0.4% and a year-on-year increase of +0.5% (of which +0.6% for home
loans, +0.7% for loans to small businesses, +1.0% for consumer
finance and -0.1% for corporate loans). Customer assets totalled
€253.3 billion at end-September 2024, up +5.1% year on year,
driven by interest-earning deposits and off-balance sheet funds.
Customer assets also edged up +0.6% during the quarter. This was
accompanied by the continued stabilisation of demand deposit
volumes (+0.4% compared with end-June 2024) in a still-uncertain
environment, as well as term deposits (-2.9% compared with end-June
2024). Off-balance sheet deposits benefited from a positive
year-on-year market effect across all segments and positive net
inflows in life insurance.
Retail banking activity in
Italy
In the third quarter of 2024,
CA Italy posted a gross customer capture of
43,000, while the customer base grew by around 13,000
customers.
Loan outstandings at CA Italy stood at
€61.3 billion43 at end-September 2024, up +3.0%
compared with end-September 2023. This was despite the downturn in
the Italian market44, mostly in the retail segment,
which posted an increase in outstandings of +3.6%. Loan production,
buoyed by the solid momentum in all markets, rose 7.5% compared
with the third quarter of 2023. Home loan production remained
steady (+7% compared with the second quarter of 2024), despite a
-12% year-on-year decline due to a base effect linked to the
success of the promotional campaign which ran in the third quarter
of 2023. The loan stock rate was down -17 basis points on the
second quarter of 2024, in line with the general trend in Italian
market rates.
Customer assets at end-September 2024 totalled
€117.4 billion, up +3.7% compared with end-September 2023;
on-balance sheet deposits were relatively unchanged from the
previous year at +0.4%, while the cost of inflows decreased.
Lastly, off-balance sheet deposits rose +9.2%, benefiting from a
market effect and positive net inflows.
CA Italy’s equipment rate in car,
multi-risk home, health, legal, all mobile phones or personal
accident insurance increased to 20.0%, up 1.7 percentage
points compared with the third quarter of 2023.
International Retail Banking activity
excluding Italy
For International Retail Banking
excluding Italy, loan outstandings were up +4.2% at
current exchange rates at end-September 2024 compared with
end-September 2023 (+6.7% at constant exchange rates). Customer
assets rose slightly by +0.4% over the same period at current
exchange rates (+8.1% at constant exchange rates).
In Poland in particular, loan outstandings
increased by +11.8% versus September 2023 (+3.6% at constant
exchange rates) and customer assets by +14% (+5.5% at constant
exchange rates), against a backdrop of fierce competition for
deposits. Loan production in Poland also remained strong, rising
+32.4% compared with the third quarter of 2023 at current exchange
rates (up +26% at constant exchange rates).
In Egypt, loan outstandings rose -18.3% between
end-September 2024 and end-September 2023 (+34.6% at constant
exchange rates). Over the same period, inflows fell by -36.6% but
were still up +4% at constant exchange rates.
The surplus of deposits over loans in Poland and
Egypt amounted to €1.6 billion at 30 September 2024, and
totalled €3.2 billion including Ukraine.
French retail banking results
In the third quarter of 2024,
LCL’s revenues stood at €979 million, down -1.7% compared with
the third quarter of 2023 due to a base effect related to the
reversal of the provision for Home Purchase Saving Plans in the
third quarter of 202345. Excluding this base effect,
revenues grew by +3.7% as a result of both net interest margin and
fee and commission income. Net interest margin, excluding the Home
Purchase Saving Plan base effect45, rose
+2.3%45 year on year, benefiting from positive
exceptional items related to the revaluation of equity investments.
In addition, the increase in the cost of funding continued to weigh
on the net interest margin, partially offset by the positive impact
of gradual loan repricing and the favourable impact of the
contribution of macro-hedging (virtually unchanged year on year).
Fee and commission income was up +5.1% compared with the third
quarter of 2023, driven by all activities.
Expenses rose +3.2% to stand at
-€608 million. The increase for the period is mainly related
to the increase in property expenses and IT costs. The cost/income
ratio stood at 62.1%, a rise of +2.9 percentage points
compared with the third quarter of 2023. Gross operating income was
down -8.8%, to €371 million (up +4.5% excluding the Home
Purchase Saving Plan base effect45).
The cost of risk was up +17% compared with the
third quarter of 2023 to -€82 million (including
+€18 million in cost of risk on performing loans,
-€94 million in proven risk, and -€5 million in other
risks). This increase was mainly due to corporate specific files
and to the consumer finance segment. The cost of risk/outstandings
remained under control, at 23 basis points. The coverage ratio
stood at 59.8% at end-September 2024 (-1 percentage point
compared with end-June 2024). The Non Performing Loans ratio
reached 2.1% at end-September 2024, stable compared with end-June
2024 (+0.1 percentage point). As a result, net income Group
share decreased by -19.2% compared with the third quarter of 2024
(-6.2% excluding the Home Purchase Saving Plan base
effect45).
In the first nine months of
2024, LCL revenues totalled €2,912 million, a +0.7%
increase compared with the first nine months of 2023. The net
interest margin was slightly up (+0.5%), benefiting from gradual
loan repricing and the positive impact of macro-hedging, in the
context of rising refinancing and funding costs, and positive
exceptional items in the second and third quarters of 2024
(positive valuation effects on equity investments). Fee and
commission income was up +0.9% compared with the first nine months
of 2023 (impacted by the base effect of Image cheque in
202346, particularly in the life insurance and payment
instrument segments. Expenses excluding SRF rose +3.4% over the
period as a result of the increase in staff and IT costs, partially
offset by a one-off impact on taxation and a base effect related to
end-of-career allowances. The cost/income ratio excluding SRF stood
at 61.8% (+1.6 percentage points compared with the first
nine months of 2023). Gross operating income grew slightly by +0.5%
year on year. Cost of risk increased by +44.3%, impacted by the
rise in proven risk from corporates and recent consumer finance
production. All in all, the business line’s contribution to net
income Group share stood at €607 million, down -9.8% (-5%
excluding Home Purchase Saving Plan base effect)
In the end, the business line contributed 10% to
the underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding the
Corporate Centre division) in the first nine months of 2024 and 14%
to underlying revenues excluding the Corporate
Centre.
At 30 September 2024, the equity
allocated to the business line stood at €5.3 billion
and risk-weighted assets amounted to
€55.3 billion. LCL’s underlying RoNE (return on normalised
equity) stood at 14.4% for the first nine months of 2024.
International Retail Banking
results47
In the third quarter of 2024,
revenues for International Retail Banking totalled
€1,006 million, falling slightly by -1.8% (+1.2% at constant
exchange rates) compared with the third quarter of 2023.
Operating expenses were under control at
€519 million, an increase of +3.1% (+4.4% at constant exchange
rates) Gross operating income consequently
totalled €486 million, down -6.5% (-2.1% at constant exchange
rates) for the period. Cost of risk amounted to
-€59 million, down -51.1% compared with the third quarter of
2023 (-50.1% at constant exchange rates).
All in all, net income Group share for
CA Italy, CA Egypt, CA Poland and
CA Ukraine amounted to €194 million in the third
quarter of 2024, up +13.9% (-12.9% at constant exchange rates).
This included a negative impact of -€40 million following the
change in the corporate income tax rate in Ukraine.
For the first nine months of
2024, International Retail Banking
revenues rose by +3.9% to €3,090 million
(+0.6% at constant exchange rates). Expenses excluding SRF
and DGS stood at -€1,522 million, an increase of 2.1%
compared with the first nine months of 2023. Gross
operating income totalled €1,510 million, up +4.6%
(+1.1% at constant exchange rates). Cost of risk
fell by -41.0% (-23.0% at constant exchange rates) to
-€213 million compared with the first nine months of 2023. In
the end, net income Group share
for International Retail Banking came to
€678 million, versus €600 million in the first nine
months of 2023, and included a negative impact of around
-€40 million following the change in corporate income tax rate
in Ukraine.
In the first nine months of 2024, International
Retail Banking 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.
As at 30 September 2024, the capital allocated
to International Retail Banking was €4.4 billion and
risk-weighted assets totalled €46.3 billion.
Results in Italy
In the third quarter of 2024,
revenues for Crédit Agricole Italy
amounted to €764 million, down -2.5% compared with the third
quarter of 2023. Revenues were impacted by a -2.5% decline in net
interest margin compared with the third quarter of 2023 but were
boosted by fee and commission income from assets under management,
which remained relatively unchanged at +0.7%. Operating
expenses were stable at 0.9% compared with the third quarter
of 2023.
Cost of risk amounted to -€48 million in
the third quarter of 2024, down -43.4% from the third quarter of
2023, and corresponded almost entirely to provisions for proven
risk. Cost of risk/outstandings48 stood at 44 basis
points, an improvement of 6 basis points compared with the
second quarter of 2024. The Non Performing Loans ratio improved
compared with the first quarter of 2024 to stand at 3.0%, while the
coverage ratio was 73.6% (+1.2 percentage points compared with
the second quarter of 2024). Net income Group share for
CA Italy was €164 million, down -1.3% compared with the
third quarter of 2023.
In the first nine months of
2024, revenues for
Crédit Agricole Italy rose slightly by
+0.8% to €2,323 million. Expenses excluding SRF and
DGS (deposit guarantee fund in Italy) were under control
at €1,161 million, a slight decrease of -0.2% compared with
the first nine months of 2023. Gross operating
income stood at €1,105 million, a slight increase of
+0.3% compared with the first nine months of 2023. Cost of
risk amounted to -€170 million, down -27.2% compared
with the first nine months of 2023. As a result, CA Italy’s
net income Group share totalled €497 million,
an increase of +4.4% compared with the first nine months of
2023.
CA Italy’s underlying RoNE (return on
normalised equity) was 22.6% at 30 September 2024.
International Retail Banking results –
excluding Italy
In the third quarter of 2024,
revenues for International Retail Banking
excluding Italy totalled €242 million, up +0.4%
(+14.8% at constant exchange rates) compared with the third quarter
of 2023. Revenues in Poland were up +22.2% compared with the third
quarter of 2023 (+16.1% at constant exchange rates), boosted by a
higher net interest margin and a strong upwards trend in fee and
commission income. Revenues in Egypt were down (-19.9% compared
with the third quarter of 2023) due to foreign exchange rate
movements (depreciation of the Egyptian pound), but were
particularly buoyant at constant exchange rates (+32.7%),
benefiting from a sharp increase in the interest margin.
Operating expenses for International
Retail Banking excluding Italy amounted to
€122 million, up +11.0% compared with the third quarter of
2023 (+17.8% at constant exchange rates). Gross operating
income amounted to €120 million, a decrease of -8.5%
(+11.8% at constant exchange rates) compared with the third quarter
of 2023. Cost of risk amounted to
-€11 million, down -68.9% (-68.9% at constant exchange rates).
Furthermore, at end-September 2024, the coverage ratio for loan
outstandings remained high in Poland and Egypt, at 121% and 139%
respectively. In Ukraine, the local coverage ratio remains prudent
(335%). All in all, the contribution of International
Retail Banking excluding Italy to net income Group share
was €30 million, down 49.1% compared with the third quarter of
2023.
In the first nine months of
2024, revenues for International
Retail Banking excluding Italy totalled €767 million,
up +14.3% (+25.0% at constant exchange rates) compared with the
first nine months of 2023, driven by the increase in net interest
margin. Operating expenses amounted to
-€361 million, up +10.2% compared with the first nine months
of 2023 (+12.8% at constant exchange rates). The cost/income ratio
at end-September 2024 was 47.1% (an improvement of 1.8 points
on the cost/income ratio at end-September 2023). Thanks to strong
growth in revenues, gross operating income came to
€406 million, up 18.3% (+38.4% at constant exchange rates)
from the first nine months of 2023. Cost of risk
amounted to -€43 million, down -66.4% (-65.8% at constant
exchange rates) compared with the first nine months of 2023. All in
all, International Retail Banking excluding Italy contributed
€182 million to net income Group share.
The underlying RoNE (return on normalised
equity) of Other IRB (excluding CA Italy) stood at 33.0% at 30
September 2024.
At 30 September 2024, the entire Retail
Banking business line contributed 22% to the underlying
net income Group share of Crédit Agricole S.A.’s core
businesses (excluding the Corporate Centre division) and 29% to
underlying revenues excluding the Corporate Centre.
At 30 September 2024, the division’s equity
amounted to €9.7 billion. Its risk-weighted assets totalled
€101.6 billion.
Corporate Centre results
The net income Group share of
the Corporate Centre was -€161 million in the third quarter of
2024, down -€106 million compared with the third quarter of
2023. The negative contribution of the Corporate Centre division
can be analysed by distinguishing between the “structural”
contribution (-€161 million) and other items
(+€1 million).
The contribution of the “structural” component (-€161 million)
decreased by -€138 million compared with the third quarter of
2023 and can be broken down into three types of activity:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. Parent Company. This contribution
amounted to -€140 million in the third quarter of 2024, down
-€75 million, notably due to a base effect of
-€171 million related to reversals of provisions for Home
Purchase Saving Plans recorded in the third quarter of 2023.
- The business
lines that are not part of the core businesses, such as CACIF
(private equity), CA Immobilier, CATE and BforBank
(equity-accounted). They contributed -€28 million in the third
quarter of 2024, down -€65 million from the third quarter of
2023. This was due to the unfavourable impact of the revaluation of
Banco BPM securities for -€35 million (+€5 million in the
third quarter of 2024, against +€40 million in the third
quarter of 2023), as well as a deterioration in the portfolio which
pushed up the cost of potential risk (stages 1 and 2), particularly
on financing guaranteed by Foncaris49
- Group support
functions. Their contribution amounted to +€7 million this
quarter (+€3 million compared with the third quarter of
2023).
The contribution of “other items” was up
+€32 million compared with the third quarter of 2023.
The “internal margins” effect at the time of the consolidation of
the insurance activity at the Crédit Agricole level was
accounted for through the Corporate Centre. Over the quarter, the
impact of internal margins was -€211 million in revenues and
+€211 million in expenses.
In the first nine months of
2024, underlying net income Group share of the Corporate
Centre division was -€506 million, down -€131 million
compared with the first nine months of 2023. The structural
component contributed -€513 million and other items of the
division recorded a positive contribution of +€7 million in
the first nine months.
The “structural” component contribution was down -€2 million
compared with the first nine months of 2023. It can be broken down
into three types of activities:
- The activities
and functions of the Corporate Centre of the
Crédit Agricole S.A. Parent Company. This contribution
amounted to -€767 million in the first nine months of
2024, down -€55 million compared with the first nine months of
2023, including a base effect of -€171 million related to the
reversal of the provision for Home Purchase Saving Plans recorded
in the third quarter of 2023;
- Business lines
not attached to the core businesses, such as CACIF (private
equity), CA Immobilier and BforBank: their contribution, at
+€234 million in the first nine months of 2024, was up on the
first nine months of 2023 (+€46 million), primarily due to the
end of the SRF building-up period (-€77 million in the first
half of 2023), as well as the impact of the valuation and
dividend of Banco BPM securities for +€99 million;
- The Group’s
support functions: their contribution for the first nine months of
2024 was +€20 million, up +€7 million compared with the
first nine months of 2023.
The contribution of “other items” was down
-€129 million compared with the first nine months of 2023.
At 30 September 2024, risk-weighted assets
stood at €29.6 billion.
Financial strength
Crédit Agricole Group
At 30 September 2024, the phased-in
Common Equity Tier 1 (CET1) ratio of
Crédit Agricole Group was 17.4%, an increase of
+0.1 percentage point compared with end-June 2024. Therefore,
the Crédit Agricole Group posted a substantial buffer of
7.6 percentage points between the level of its CET1 ratio and
the 9.8% SREP requirement. The fully loaded CET1 ratio was
17.3%.
During the third quarter 2024:
- The CET1 ratio benefited from an
impact of +25 basis points related to retained
earnings.
- Changes in risk-weighted assets
related to business lines organic growth impacted
the Group’s CET1 ratio by -27 basis points (see below).
- The
methodological and other effects have a favourable impact of
+4 basis points and include the contribution of the capital
increase reserved for employees and a favourable change in
unrealised gains and/or losses.
The phased-in Tier 1 ratio
stood at 18.3%, while the phased-in total ratio was 21.0% at
end-September 2024.
The phased-in leverage ratio
stood at 5.5%, remaining stable compared with end-June 2024, well
above the regulatory requirement of 3.5%.
Risk-weighted assets for the
Crédit Agricole Group amounted to €636 billion, up
+€8.2 billion compared with 30 June 2024. The change can be
broken down by business line as follows: Retail Banking
+€7.3 billion, Asset Gathering +€3.2 billion (including
+€3.1 billion in Insurance equity-accounted value),
Specialised Financial Services +€0.3 billion, Large Customers
-€2.3 billion (benefiting from favourable foreign exchange and
regulatory impacts for Crédit Agricole CIB) and Corporate
Centre -€0.2 billion.
Maximum Distributable Amount (MDA and
L-MDA) trigger thresholds
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined capital
buffer requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 30 September 2024,
Crédit Agricole Group posted a buffer of
670 basis points above the MDA trigger, i.e.
€43 billion in CET1 capital.
Failure to comply with the leverage ratio buffer
requirement would result in a restriction of distributions and the
calculation of a maximum distributable amount (L-MDA).
At 30 September 2024,
Crédit Agricole Group posted a buffer of
196 basis points above the L-MDA trigger, i.e.
€42 billion in Tier 1 capital. At the
Crédit Agricole Group level, it is the distance to the
L-MDA trigger that determines the distance to distribution
restriction.
At 30 September 2024,
Crédit Agricole S.A. posted a buffer of
280 basis points above the MDA trigger, i.e.
€11 billion in CET1 capital.
Crédit Agricole S.A. is not subject to the L-MDA
requirement.
The issuance of a new AT1 instrument carried out
by Crédit Agricole S.A. on 2 October 2024, for a nominal amount of
US$1.25 billion, has a positive impact of 18 basis points
on the Tier 1 and Total capital ratios of
Crédit Agricole Group, as well as a positive impact of
5 basis points on its leverage ratio. This issuance also has a
positive impact of 28 basis points on the Tier 1 and Total capital
ratios of Crédit Agricole S.A. Taking this issuance into
account in the solvency ratios at 30 September 2024,
Crédit Agricole Group would post a buffer of
688 basis points above the MDA trigger, i.e. €44 billion
in CET1 capital, and 201 basis points above the L-MDA trigger,
i.e. €43 billion in Tier 1 capital.
Crédit Agricole S.A. would post a buffer of
308 basis points above the MDA trigger, i.e. €12 billion
in CET1 capital.
TLAC
Crédit Agricole Group must comply with
the following TLAC ratio requirements at all times:
- a TLAC ratio
above 18% of risk-weighted assets (RWA), plus – in accordance with
EU directive CRD 5 – a combined capital buffer requirement
(including, for Crédit Agricole Group, a 2.5% capital
conservation buffer, a 1% G-SIB buffer, the counter-cyclical buffer
set at 0.77% and the 0.01% systemic risk buffer for CA Group
at 30 September 2024). Considering the combined capital buffer
requirement, Crédit Agricole Group must adhere to a TLAC
ratio of above 22.3%;
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior preferred debt.
At 30 September 2024,
Crédit Agricole Group’s TLAC ratio stood
at 27.3% of RWA and 8.2% of leverage ratio exposure,
excluding eligible senior preferred
debt50, which is well above
the requirements. The TLAC ratio, expressed as a percentage of risk
weighted assets, increased by 20 basis points over the
quarter, due to equity and eligible items increasing more rapidly
than risk-weighted assets over the period. Expressed as a
percentage of leverage ratio exposure (LRE), the TLAC ratio was up
20 basis points compared with June 2024.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 510 basis points
higher, i.e. €32 billion, than the current requirement of
22.3% of RWA.
At end-September 2024, €10.4 billion
equivalent had been issued in the market (senior non-preferred and
Tier 2 debt) as well as €1.25 billion of AT1. The amount
of Crédit Agricole Group senior non-preferred securities
taken into account in the calculation of the TLAC ratio was
€35.2 billion.
MREL
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. At 30 September 2024,
Crédit Agricole Group has to meet a minimum total MREL
requirement of:
- 22.01% of RWA,
plus – in accordance with EU directive CRD 5 – a combined
capital buffer requirement (including, for
Crédit Agricole Group, a 2.5% capital conservation
buffer, a 1% G-SIB buffer, the counter-cyclical buffer set at 0.77%
and the 0.01% systemic risk buffer for CA Group at 30
September 2024). Considering the combined capital buffer
requirement, the Crédit Agricole Group has to meet to a
total MREL ratio of above 26.3%;
- 6.25% of the
LRE.
At 30 September 2024, the
Crédit Agricole Group had a total MREL ratio of
32.9% of RWA and 9.8% of leverage exposure, well above the
requirement.
An additional subordination requirement
(“subordinated MREL”) is also determined by the resolution
authorities and expressed as a percentage of RWA and LRE. At 30
September 2024, this subordinated MREL requirement for the
Crédit Agricole Group was:
- 18.25% of RWA,
plus a combined capital buffer requirement. Considering the
combined capital buffer requirement, the
Crédit Agricole Group has to meet to a subordinated MREL
ratio of above 22.5%;
- 6.25% of
leverage exposure.
At 30 September 2024,
Crédit Agricole Group had a subordinated MREL
ratio of 27.3% of RWA and 8.2% of
leverage exposure, well above the requirement.
The distance to the maximum distributable amount
trigger related to MREL requirements (M-MDA) is the lowest of the
respective distances to the MREL, subordinated MREL and TLAC
requirements expressed in RWA.
At 30 September 2024,
Crédit Agricole Group had a buffer of
480 basis points above the M-MDA trigger, i.e.
€31 billion in CET1 capital; the distance to the
M-MDA trigger corresponds to the distance between the subordinated
MREL ratio and the corresponding requirement.
Crédit Agricole S.A.
At 30 September 2024,
Crédit Agricole S.A.’s solvency ratio was higher than the
Medium-Term Plan target, with a phased-in Common Equity
Tier 1 (CET1) ratio of 11.7%, up +0.1 percentage
point from end-June 2024. Crédit Agricole S.A. therefore
had a comfortable buffer of 3.1 percentage points between the
level of its CET1 ratio and the 8.6% SREP requirement. The fully
loaded CET1 ratio was 11.7%.
During the third quarter 2024:
- The CET1 ratio
benefited this quarter from a positive impact of +19 basis points
linked to retained earnings. This impact
corresponds to net income Group share net of AT1 coupons (impact of
+38 basis points) and of the distribution of 50% of earnings,
i.e. a provision for dividends of 25 euro cents per share in
third quarter 2024 (-19 basis points).
- Changes in
risk-weighted assets related to business line
organic growth impacted the CET1 ratio by
-14 basis points, of which -5 basis points in the
Insurance business line (increase in the equity-accounted value
over the quarter).
- Methodological
and other effects had a positive impact of +10 basis points
and included the contribution of the capital increase reserved for
employees and a favourable trend in unrealised gains and/or
losses.
The phased-in leverage ratio
was 3.8% at end-September 2024, stable compared to end-June 2024
and above the 3% requirement.
The phased-in Tier 1 ratio
stood at 13.2% and the phased-in total ratio at 17.3% this
quarter.
Risk weighted assets for
Crédit Agricole S.A. amounted to €402 billion at end
of September 2024, up by +€3.1 billion compared to 30 June
2024. The change can be broken down by core business line as
follows:
- The Retail
Banking divisions showed an increase of +€1.7 billion,
particularly in France.
- Asset
Gathering posted an increase of +€3.2 billion, including
+€3.1 billion in RWA for Insurance (increase in the
equity-accounted value in the third quarter of 2024).
- Specialised
Financial Services remained stable at +€0.2 billion.
- Large
Customers recorded a decrease in risk-weighted assets of
-€2.4 billion over the quarter, mainly as a result of foreign
exchange and regulatory impacts in CIB.
- The Corporate
Centre divisions posted an increase in risk-weighted assets of
+€0.4 billion.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is
based on the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet 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 €68 billion at end-September 2024.
Similarly, €157 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
€181 billion at end September 2024 – relate to
derivatives, margin calls, adjustment/settlement/liaison accounts
and to non-liquid securities held by Corporate and Investment
banking (CIB) and are included in the “Customer-related trading
assets” section.
Note that deposits centralised with Caisse des
Dépôts et Consignations are not netted in order to build the cash
balance sheet; the amount of centralised deposits
(€105 billion at end-September 2024) is booked to assets under
“Customer-related trading assets” and to liabilities under
“Customer-related funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, Senior
issuances placed through the banking networks as well as financing
by the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Medium to long-term repurchase agreements are
also included in “Long-term market funds”.
Finally, the CIB’s counterparties that are banks
with which we have a commercial relationship are considered as
customers in the construction of the cash balance sheet.
Standing at €1,719 billion at 30
September 2024, the Group’s banking cash balance sheet shows
a surplus of stable funding resources over stable
application of funds of €188 billion, down
-€10 billion compared with end-June 2024.
Total T-LTRO 3 outstandings for
Crédit Agricole Group amounted to €0.7 billion at 30
September 2024.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 30 September
2024 (central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €263 billion at 30 September 2024, up slightly
from end-June 2024.
They included senior secured debt of
€76 billion, senior preferred debt of €125 billion,
senior non-preferred debt of €37 billion and Tier 2
securities amounting to €25 billion.
The Group’s liquidity reserves, at
market value and after haircuts, amounted to €466 billion at
30 September 2024, down -€12 billion compared to 30
June 2024.
They covered short-term net debt more than two
times over (excluding the replacements with Central Banks).
The decrease in liquidity reserves was mainly
due to:
- The decrease in Central Bank
deposits for -€15 billion;
- The decrease in eligible claims to
Central Bank (mainly due to the temporary removal of TRICP credit
claims with an internal rating) for -€3 billion;
- The increase in the securities
portfolio for +€6 billion (+€3 billion of HQLA
securities/+€3 billion of non-HQLA securities).
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 €152 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
At 30 September 2024, the end of month
LCR ratios were 147% for Crédit Agricole Group
(representing a surplus of €97.7 billion) and
152% for Crédit Agricole S.A.
(representing a surplus of €92.2 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 2024, the Group’s main
issuers raised the equivalent of
€51 billion51,
52 in medium-to-long-term debt on the
markets, 47% of which was issued by Crédit Agricole S.A.
In particular, the following amounts are noted for the Group:
-
Crédit Agricole CIB issued €17.9 billion in
structured format, including €1.2 billion in Green Bond
format;
-
Crédit Agricole Personal Finance & Mobility issued
€2 billion equivalent in EMTN issuances through
Crédit Agricole Auto Bank (CAAB) and
€0.7 billion equivalent in securitisations;
-
CA Italy issued two senior secured debt issuances for a total
of €1.5 billion, of which €500 million in Green Bond
format;
-
Crédit Agricole next bank (Switzerland) issued two tranches in
senior secured format for a total of 200 million Swiss
francs, of which 100 million Swiss francs in Green Bond
format;
-
Crédit Agricole Assurances issued a €750 million
Tier 2 10-year bullet subordinated bond and made a tender offer on
two subordinated perpetual issuances (FR0012444750 &
FR0012222297) for €788.5 million in September.
The Group’s medium-to-long-term financing can be
broken down into the following categories:
-
€9.0 billion in secured financing;
-
€22.0 billion in plain-vanilla unsecured financing;
-
€17.9 billion in structured financing;
-
€2.3 billion in long-term institutional deposits and CDs.
In addition, €11.7 billion was raised
through off-market issuances, split as follows:
-
€9.5 billion from banking networks (the Group’s retail banking
or external networks);
-
€0.65 billion from supranational organisations or financial
institutions;
-
€1.6 billion from national refinancing vehicles (including the
credit institution CRH).
At 30 September 2024,
Crédit Agricole S.A. raised the equivalent of
€24.1 billion on the
market53,54
representing 93% of its 2024 refinancing
programme:
The bank raised the equivalent of
€24.1 billion, of which €7.3 billion in senior
non-preferred debt and €3.1 billion in Tier 2 debt, as well as
€7.2 billion in senior preferred debt and €6.5 billion in
senior secured debt at end-September. The financing comprised a
variety of formats and currencies, including:
-
€6.3 billion55;
-
6.35 billion US dollars (€5.8 billion equivalent);
-
1.1 billion pounds sterling (€1.3 billion
equivalent);
-
230 billion Japanese yen (€1.4 billion equivalent);
-
0.8 billion Swiss francs (€0.8 billion equivalent);
-
1.75 billion Australian dollars (€1.1 billion equivalent);
-
7 billion renminbi (€0.9 billion equivalent).
At end-September, Crédit Agricole S.A.
had issued 64% of its funding plan in currencies other than the
euro56, 57.
In addition, on 2 January 2024,
Crédit Agricole S.A. issued a PerpNC6 AT1 bond for
€1.25 billion at an initial rate of 6.5% and, on 24 September
2024, a PerpNC10 AT1 bond for $1.25 billion at an initial rate
of 6.7%.
Appendix 1 – Specific items,
Crédit Agricole Group et Crédit Agricole
S.A.
Crédit Agricole
Group – Specific items
| |
Q3-24 |
Q3-23 |
9M-24 |
9M-23 |
| €m |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
| |
|
|
|
|
|
|
|
|
|
DVA (LC) |
4 |
3 |
2 |
2 |
46 |
34 |
(21) |
(15) |
|
Loan portfolio hedges (LC) |
(1) |
(1) |
(2) |
(1) |
6 |
5 |
(26) |
(19) |
|
Home Purchase Savings Plans (LCL) |
- |
- |
52 |
38 |
1 |
1 |
52 |
38 |
|
Home Purchase Savings Plans (CC) |
- |
- |
230 |
171 |
(0) |
(0) |
230 |
171 |
|
Home Purchase Savings Plans (RB) |
- |
- |
118 |
88 |
63 |
47 |
118 |
88 |
|
Mobility activities reorganisation (SFS) |
- |
- |
1 |
0 |
- |
- |
300 |
214 |
|
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 |
3 |
2 |
402 |
298 |
117 |
87 |
758 |
581 |
|
Degroof Petercam integration costs (AG) |
(8) |
(6) |
- |
- |
(14) |
(10) |
- |
- |
|
ISB integration costs (LC) |
(26) |
(14) |
- |
- |
(70) |
(37) |
- |
- |
|
Mobility activities reorganisation (SFS) |
- |
- |
- |
- |
- |
- |
(18) |
(13) |
| Total
impact on operating expenses |
(34) |
(20) |
- |
- |
(84) |
(47) |
(18) |
(13) |
|
Mobility activities reorganisation (SFS) |
- |
- |
- |
- |
- |
- |
(85) |
(61) |
|
Provision for risk Ukraine (IRB) |
- |
- |
- |
- |
(20) |
(20) |
- |
- |
| Total
impact on cost of credit risk |
- |
- |
- |
- |
(20) |
(20) |
(85) |
(61) |
|
Mobility activities reorganisation (SFS) |
- |
- |
(26) |
(26) |
- |
- |
(39) |
(39) |
| Total
impact equity-accounted entities |
- |
- |
(26) |
(26) |
- |
- |
(39) |
(39) |
|
Degroof Petercam aquisition costs (AG) |
(3) |
(2) |
- |
- |
(23) |
(17) |
- |
- |
|
Mobility activities reorganisation (SFS) |
- |
- |
61 |
45 |
- |
- |
89 |
57 |
| Total
impact on Net income on other assets |
(3) |
(2) |
61 |
45 |
(23) |
(17) |
89 |
57 |
| |
|
|
|
|
|
|
|
|
|
Total impact of specific items |
(34) |
(20) |
436 |
317 |
(10) |
3 |
705 |
525 |
|
Asset gathering |
(11) |
(8) |
- |
- |
(37) |
(27) |
- |
- |
|
French Retail banking |
- |
- |
170 |
126 |
65 |
48 |
233 |
189 |
|
International Retail banking |
- |
- |
- |
- |
(20) |
(20) |
- |
- |
|
Specialised financial services |
- |
- |
35 |
19 |
- |
- |
247 |
159 |
|
Large customers |
(23) |
(12) |
1 |
0 |
(18) |
1 |
(47) |
(35) |
|
Corporate centre |
- |
- |
230 |
171 |
(0) |
(0) |
272 |
213 |
| * Impact
before tax and before minority interests |
|
|
|
|
|
|
|
|
Crédit
Agricole S.A. – Specific Items
| |
Q3-24 |
Q3-23 |
9M-24 |
9M-23 |
|
€m |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
Gross
impact* |
Impact on
Net income |
| |
|
|
|
|
|
|
|
|
|
DVA (LC) |
4 |
3 |
2 |
2 |
46 |
33 |
(21) |
(15) |
|
Loan portfolio hedges (LC) |
(1) |
(1) |
(2) |
(1) |
6 |
5 |
(26) |
(19) |
|
Home Purchase Savings Plans (FRB) |
- |
- |
52 |
37 |
3 |
2 |
52 |
37 |
|
Home Purchase Savings Plans (CC) |
- |
- |
230 |
171 |
(2) |
(1) |
230 |
171 |
|
Mobility activities reorganisation (SFS) |
- |
- |
1 |
0.5 |
- |
- |
300 |
214 |
|
Check Image Exchange penalty (CC) |
- |
- |
- |
- |
- |
- |
42 |
42 |
|
Check Image Exchange penalty (LCL) |
- |
- |
- |
- |
- |
- |
21 |
20 |
| Total
impact on revenues |
3 |
2 |
284 |
209 |
53 |
39 |
598 |
450 |
|
Degroof Petercam integration costs (AG) |
(8) |
(6) |
- |
- |
(14) |
(10) |
- |
- |
|
ISB integration costs (LC) |
(26) |
(14) |
- |
- |
(70) |
(37) |
- |
- |
|
Mobility activities reorganisation (SFS) |
- |
- |
- |
- |
- |
- |
(18) |
(13) |
| Total
impact on operating expenses |
(34) |
(19) |
- |
- |
(84) |
(47) |
(18) |
(13) |
|
Provision for risk Ukraine (IRB) |
- |
- |
- |
- |
(20) |
(20) |
- |
- |
|
Mobility activities reorganisation (SFS) |
- |
- |
- |
- |
- |
- |
(85) |
(61) |
| Total
impact on cost of credit risk |
- |
- |
- |
- |
(20) |
(20) |
(85) |
(61) |
| |
|
|
|
|
|
|
|
|
|
Mobility activities reorganisation (SFS) |
- |
- |
(26) |
(26) |
- |
- |
(39) |
(39) |
| Total
impact equity-accounted entities |
- |
- |
(26) |
(26) |
- |
- |
(39) |
(39) |
|
Degroof Petercam aquisition costs (AG) |
(3) |
(2) |
- |
- |
(23) |
(17) |
- |
- |
|
Mobility activities reorganisation (SFS) |
- |
- |
61 |
45 |
- |
- |
89 |
57 |
| Total
impact Net income on other assets |
(3) |
(2) |
61 |
45 |
(23) |
(17) |
89 |
57 |
| |
|
|
|
|
|
|
|
|
|
Total impact of specific items |
(34) |
(20) |
318 |
227 |
(73) |
(45) |
545 |
394 |
|
Asset gathering |
(11) |
(8) |
- |
- |
(37) |
(26) |
- |
- |
|
French Retail banking |
- |
- |
52 |
37 |
3 |
2 |
73 |
57 |
|
International Retail banking |
- |
- |
- |
- |
(20) |
(20) |
- |
- |
|
Specialised financial services |
- |
- |
35 |
19 |
- |
- |
247 |
159 |
|
Large customers |
(23) |
(12) |
1 |
0 |
(18) |
1 |
(47) |
(34) |
|
Corporate centre |
- |
- |
230 |
171 |
(2) |
(1) |
272 |
213 |
|
* Impact before tax and before minority interests |
|
|
|
|
|
Appendix 2 – Crédit Agricole Group: income
statement by business line
Crédit Agricole Group – Results by business line, Q3-23 and
Q3-24
|
|
Q3-24 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,266 |
979 |
1,029 |
1,857 |
869 |
2,054 |
(842) |
9,213 |
|
Operating expenses excl. SRF |
(2,409) |
(608) |
(539) |
(868) |
(437) |
(1,240) |
511 |
(5,590) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
857 |
371 |
490 |
989 |
433 |
814 |
(331) |
3,623 |
|
Cost of risk |
(364) |
(82) |
(60) |
(13) |
(223) |
(19) |
(40) |
(801) |
|
Equity-accounted entities |
0 |
- |
- |
33 |
23 |
6 |
- |
61 |
|
Net income on other assets |
0 |
0 |
0 |
(3) |
(2) |
(0) |
(2) |
(5) |
|
Income before tax |
493 |
290 |
430 |
1,006 |
231 |
801 |
(372) |
2,877 |
|
Tax |
(122) |
(66) |
(176) |
(156) |
(42) |
(234) |
210 |
(587) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
371 |
224 |
254 |
850 |
189 |
566 |
(162) |
2,291 |
|
Non controlling interests |
(1) |
(0) |
(40) |
(128) |
(17) |
(35) |
10 |
(211) |
|
Net income Group Share |
371 |
223 |
214 |
722 |
172 |
531 |
(153) |
2,080 |
|
|
Q3-23 (stated) |
|
€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) |
|
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 discont'd or held-for-sale ope. |
(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 |
Crédit Agricole Group – Results by business line, 9M-24 et
9M-23
|
|
9M-24 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
9,834 |
2,912 |
3,161 |
5,596 |
2,605 |
6,544 |
(2,407) |
28,244 |
|
Operating expenses excl. SRF |
(7,453) |
(1,801) |
(1,637) |
(2,435) |
(1,333) |
(3,741) |
1,535 |
(16,866) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
2,381 |
1,111 |
1,523 |
3,161 |
1,272 |
2,803 |
(872) |
11,378 |
|
Cost of risk |
(1,056) |
(295) |
(219) |
(18) |
(653) |
(25) |
(59) |
(2,324) |
|
Equity-accounted entities |
7 |
- |
- |
94 |
83 |
20 |
- |
203 |
|
Net income on other assets |
3 |
5 |
0 |
(23) |
(3) |
2 |
(3) |
(19) |
|
Income before tax |
1,335 |
820 |
1,305 |
3,214 |
699 |
2,800 |
(935) |
9,238 |
|
Tax |
(313) |
(185) |
(436) |
(658) |
(138) |
(717) |
343 |
(2,104) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
1,022 |
635 |
869 |
2,557 |
560 |
2,083 |
(592) |
7,134 |
|
Non controlling interests |
(1) |
(0) |
(129) |
(364) |
(59) |
(104) |
15 |
(643) |
|
Net income Group Share |
1,021 |
635 |
739 |
2,193 |
502 |
1,979 |
(577) |
6,491 |
|
|
9M-23 (stated) |
|
€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 |
|
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 |
Appendix 3 – Crédit Agricole S.A.:
Results by business line
Crédit Agricole S.A. – Results by business line, Q3-24 et
Q3-23
|
|
Q3-24 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,870 |
2,054 |
869 |
979 |
1,006 |
(290) |
6,487 |
|
Operating expenses excl. SRF |
(868) |
(1,240) |
(437) |
(608) |
(519) |
(17) |
(3,689) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,002 |
814 |
433 |
371 |
486 |
(307) |
2,799 |
|
Cost of risk |
(13) |
(19) |
(223) |
(82) |
(59) |
(37) |
(433) |
|
Equity-accounted entities |
33 |
6 |
23 |
- |
- |
(19) |
42 |
|
Net income on other assets |
(3) |
(0) |
(2) |
0 |
0 |
0 |
(4) |
|
Income before tax |
1,019 |
800 |
231 |
290 |
427 |
(363) |
2,404 |
|
Tax |
(157) |
(234) |
(42) |
(66) |
(176) |
199 |
(476) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
862 |
566 |
189 |
224 |
252 |
(164) |
1,928 |
|
Non controlling interests |
(135) |
(46) |
(17) |
(10) |
(58) |
4 |
(262) |
|
Net income Group Share |
728 |
520 |
172 |
214 |
194 |
(161) |
1,666 |
|
|
Q3-23 (stated) |
|
€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 |
Crédit Agricole S.A. – Results by business line, 9M-24 et
9M-23
|
|
9M-24 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
5,603 |
6,543 |
2,605 |
2,912 |
3,090 |
(665) |
20,089 |
|
Operating expenses excl. SRF |
(2,435) |
(3,741) |
(1,333) |
(1,801) |
(1,580) |
(88) |
(10,978) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
3,168 |
2,802 |
1,272 |
1,111 |
1,510 |
(752) |
9,111 |
|
Cost of risk |
(18) |
(25) |
(653) |
(295) |
(213) |
(53) |
(1,256) |
|
Equity-accounted entities |
94 |
20 |
83 |
- |
- |
(65) |
132 |
|
Net income on other assets |
(23) |
2 |
(3) |
5 |
0 |
24 |
5 |
|
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
3,221 |
2,800 |
699 |
820 |
1,297 |
(846) |
7,991 |
|
Tax |
(659) |
(717) |
(138) |
(185) |
(435) |
343 |
(1,790) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
- |
- |
- |
- |
- |
|
Net income |
2,563 |
2,083 |
560 |
635 |
862 |
(503) |
6,201 |
|
Non controlling interests |
(382) |
(147) |
(59) |
(28) |
(184) |
(3) |
(803) |
|
Net income Group Share |
2,180 |
1,936 |
502 |
607 |
678 |
(506) |
5,397 |
|
|
9M-23 (stated) |
|
€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 |
Appendix 4 – Data per share
|
Crédit Agricole S.A. – Earnings p/share, net book value p/share and
RoTE |
|
(€m) |
|
Q3-2024 |
Q3-2023 |
|
9M-24 |
9M-23 |
|
|
|
|
|
|
|
|
| Net income
Group share - stated |
|
1,666 |
1,748 |
|
5,397 |
5,014 |
| - Interests on
AT1, including issuance costs, before tax |
|
(130) |
(136) |
|
(351) |
(371) |
| - Foreign
exchange impact on reimbursed AT1 |
|
(19) |
- |
|
(266) |
- |
| NIGS
attributable to ordinary shares - stated |
[A] |
1,517 |
1,612 |
|
4,780 |
4,643 |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
3,031 |
3,043 |
|
3,007 |
3,031 |
|
Net earnings per share - stated |
[A]/[B] |
0.50 € |
0.53 € |
|
1.59 € |
1.53 € |
| Underlying net
income Group share (NIGS) |
|
1,686 |
1,520 |
|
5,442 |
4,620 |
| Underlying NIGS
attributable to ordinary shares |
[C] |
1,537 |
1,384 |
|
4,825 |
4,249 |
|
Net earnings per share - underlying |
[C]/[B] |
0.51 € |
0.46 € |
|
1.60 € |
1.40 € |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(€m) |
|
|
|
|
30/09/2024 |
30/09/2023 |
| Shareholder's
equity Group share |
|
|
|
|
71,386 |
69,416 |
| - AT1
issuances |
|
|
|
|
(6,102) |
(7,235) |
| - Unrealised
gains and losses on OCI - Group share |
|
|
|
|
1,042 |
1,644 |
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
|
|
66,326 |
63,825 |
| - Goodwill
& intangibles* - Group share |
|
|
|
|
(17,778) |
(17,255) |
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
|
|
48,548 |
46,570 |
| Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,040 |
3,052 |
| NBV per share ,
after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
21.8 € |
20.9 € |
| TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
16.0 € |
15.3 € |
| * including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(€m) |
|
|
|
|
9M-24 |
9M-23 |
| Net income
Group share - stated |
[K] |
|
|
|
5,397 |
5,014 |
| Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
| IFRIC |
[M] |
|
|
|
-110 |
-542 |
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*2+[M] |
|
|
|
7,233 |
6,866 |
| Interests on
AT1, including issuance costs, before tax, foreign exchange impact,
annualised |
[O] |
|
|
|
-734 |
-495 |
| Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
6,499 |
6,371 |
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg *** (3) |
[J] |
|
|
|
45,219 |
43,200 |
| Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
14.4% |
14.7% |
| Underlying Net
income Group share |
[Q] |
|
|
|
5,442 |
4,620 |
| Underlying NIGS
annualised |
[R] = ([Q]-[M])*2+[M] |
|
|
|
7,293 |
6,341 |
| Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
|
|
6,559 |
5,846 |
| Underlying ROTE
adjusted(%) |
= [S] / [J] |
|
|
|
14.5% |
13.5% |
|
*** including assumption of dividend for the current
exercise |
|
|
|
|
0.0% |
(1) Underlying: see appendixes for more
details on specific items
(2) Underlying ROTE calculated on the basis of an annualised
underlying net income Group share and linearised IFRIC costs over
the year
(3) Average of the NTBV not revalued attributable to ordinary
shares, calculated between 31/12/2023 and 30/09/2024 (line [E]),
restated with an assumption of dividend for current
exercises
Alternative Performance
Indicators58
NBV Net Book Value (not
revalued)
The Net Book Value not revalued corresponds to the shareholders’
equity Group share from which the amount of the AT1 issues, the
unrealised gains and/or losses on OCI Group share and the pay-out
assumption on annual results have been deducted.
NBV per share Net Book Value per share –
NTBV Net Tangible Book Value per share
One of the methods for calculating the value of a share. This
represents the Net Book Value divided by the number of shares in
issue at end of period, excluding treasury shares.
Net Tangible Book Value per share represents the
Net Book Value after deduction of intangible assets and goodwill,
divided by the number of shares in issue at end of period,
excluding treasury shares.
EPS Earnings per Share
This is the net income Group share, from which the AT1 coupon has
been deducted, divided by the average number of shares in issue
excluding treasury shares. It indicates the portion of profit
attributable to each share (not the portion of earnings paid out to
each shareholder, which is the dividend). It may decrease, assuming
the net income Group share remains unchanged, if the number of
shares increases.
Cost/income ratio
The cost/income ratio is calculated by dividing operating expenses
by revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of risk/outstandings
Calculated by dividing the cost of credit risk (over four quarters
on a rolling basis) by outstandings (over an average of the past
four quarters, beginning of the period). It can also be calculated
by dividing the annualised cost of credit risk for the quarter by
outstandings at the beginning of the quarter. Similarly, the cost
of risk for the period can be annualised and divided by the average
outstandings at the beginning of the period.
Since the first quarter of 2019, the
outstandings taken into account are the customer outstandings,
before allocations to provisions.
The calculation method for the indicator is
specified each time the indicator is used.
Doubtful loan
A doubtful loan is a loan in default. The debtor is considered to
be in default when at least one of the following two conditions has
been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation.
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loan
Loan which has been provisioned due to a risk of non-repayment.
MREL
The MREL (Minimum Requirement for Own Funds and Eligible
Liabilities) ratio is defined in the European “Bank Recovery and
Resolution Directive” (BRRD). This Directive establishes a
framework for the resolution of banks throughout the European
Union, with the aim to provide resolution authorities with shared
instruments and powers to pre-emptively tackle banking crises,
preserve financial stability and reduce taxpayers’ exposure to
losses. Directive (EU) 2019/879 of 20 May 2019 known as “BRRD2”
amended the BRRD and was transposed into French law by Order
2020-1636 of 21 December 2020.
The MREL ratio corresponds to an own funds and
eligible liabilities buffer required to absorb losses in the event
of resolution. Under BRRD2, the MREL ratio is calculated as the
amount of eligible capital and liabilities expressed as a
percentage of risk weighted assets (RWA), as well as a leverage
ratio exposure (LRE). Are eligible for the numerator of the total
MREL ratio the Group’s regulatory capital, as well as eligible
liabilities issued by the corporate centre and the
Crédit Agricole network affiliated entities, i.e. subordinated
notes, senior non-preferred debt instruments and certain senior
preferred debt instruments with residual maturities of more than
one year.
Impaired (or non-performing) loan
coverage ratio
This ratio divides the outstanding provisions by the impaired gross
customer loans.
Impaired (or non-performing) loan
ratio
This ratio divides the impaired gross customer loans on an
individual basis, before provisions, by the total gross customer
loans.
TLAC
The Financial Stability Board (FSB) has defined the calculation of
a ratio aimed at estimating the adequacy of the bail-in and
recapitalisation capacity of Global Systemically Important Banks
(G-SIBs). This Total Loss Absorbing Capacity (TLAC)
ratio provides resolution authorities with the means to assess
whether G-SIBs have sufficient bail-in and recapitalisation
capacity before and during resolution. It applies to Global
Systemically Important Banks, and therefore to
Crédit Agricole Group. Agricole. The TLAC ratio
requirement was transposed into European Union law via
CRR2 and has been applicable since 27 June 2019.
The Group’s regulatory capital as well as
subordinated notes and eligible senior non-preferred debt with
residual maturities of more than one year issued by
Crédit Agricole S.A. are eligible for the numerator of
the TLAC ratio.
Net income Group share
Net income/(loss) for the financial year (after corporate income
tax). Equal to net income Group share, less the share attributable
to non-controlling interests in fully consolidated
subsidiaries.
Underlying Net income Group
share
The underlying net income Group share represents the stated net
income Group share from which specific items have been deducted
(i.e., non-recurring or exceptional items) to facilitate the
understanding of the company’s actual earnings.
Net income Group share attributable to
ordinary shares
The net income Group share attributable to ordinary shares
represents the net income Group share from which the AT1 coupon has
been deducted, including issuance costs before tax.
RoTE Return on Tangible
Equity
The RoTE (Return on Tangible Equity) measures the return on
tangible capital by dividing the Net income Group share annualised
by the Group’s NBV net of intangibles and goodwill. The annualised
Net income Group share corresponds to the annualisation of the Net
income Group share (Q1x4; H1x2; 9Mx4/3) excluding impairments of
intangible assets and restating each period of the IFRIC impacts in
order to linearise them over the year.
Disclaimer
The financial information on
Crédit Agricole S.A. and Crédit Agricole Group
for the third quarter and the first nine months of 2024 comprises
this presentation and the attached appendices and press release
which are available on the website:
https://www.credit-agricole.com/en/finance/financial-publications.
This presentation may include prospective
information on the Group, supplied as information on trends. This
data does not represent forecasts within the meaning of EU
Delegated Act 2019/980 of 14 March 2019 (Chapter 1, article 1,
d).
This information was developed from
scenarios based on a number of economic assumptions for a given
competitive and regulatory environment. Therefore, these
assumptions are by nature subject to random factors that could
cause actual results to differ from projections. Likewise, the
financial statements are based on estimates, particularly in
calculating market value and asset impairment.
Readers must take all these risk factors and
uncertainties into consideration before making their own
judgement.
Applicable standards and
comparability
The figures presented for the nine-month
period ending 30 September 2024 have been prepared in accordance
with IFRS as adopted in the European Union and applicable at that
date, and with prudential regulations currently in force. This
financial information does not constitute a set of financial
statements for an interim period as defined by IAS 34 “Interim
Financial Reporting” and has not been audited.
Note: The scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups
have not changed materially since the
Crédit Agricole S.A. 2023 Universal Registration Document
and its A.01 update (including all regulatory information about the
Crédit Agricole Group) were filed with the AMF (the
French Financial Markets Authority).
The sum of values contained in the tables
and analyses may differ slightly from the total reported due to
rounding.
At 30 June 2024, Indosuez Wealth Management
had completed the acquisition of Degroof Petercam and now holds 65%
of Banque Degroof Petercam alongside with CLdN Cobelfret, its
historical shareholder, which would maintain a 20% stake in
capital. As of 30 September 2024, Indosuez Wealth Management's
stake in Degroof Petercam has increased to 76%.
At 30 June 2024, Amundi had completed the
acquisition of Alpha Associates, an independent asset manager
offering multi-management investment solutions in private
assets.
Financial Agenda
05 February
2025 Publication of
the 2024 fourth quarter and full year results
30 April
2025 Publication
of the 2025 first quarter results
14 May
2025 General
Meeting
31 July
2025 Publication
of the 2025 second quarter and the first half-year results
30 October
2025 Publication
of the 2025 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Alexandre
Barat
Olivier Tassain |
+ 33 1 57 72 12
19
+ 33 1 43 23 25 41 |
alexandre.barat@credit-agricole-sa.fr
olivier.tassain@credit-agricole-sa.fr |
| Mathilde
Durand |
+ 33 1 57 72 19
43 |
mathilde.durand@credit-agricole-sa.fr |
| Bénédicte
Gouvert |
+ 33 1 49 53 43
64 |
benedicte.gouvert@ca-fnca.fr |
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
| Institutional
investors |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
| Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
| |
|
|
| Cécile
Mouton |
+ 33 1 57 72 86
79 |
cecile.mouton@credit-agricole-sa.fr |
Equity investor relations: |
|
|
Jean-Yann
Asseraf
Fethi Azzoug |
+ 33 1 57 72 23
81
+ 33 1 57 72 03 75 |
jean-yann.asseraf@credit-agricole-sa.fr
fethi.azzoug@credit-agricole-sa.fr |
| 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 |
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Credit investor and rating agency relations: |
|
| Gwenaëlle
Lereste |
+ 33 1 57 72 57
84 |
gwenaelle.lereste@credit-agricole-sa.fr |
| Florence Quintin
de Kercadio |
+ 33 1 43 23 25
32 |
florence.quintindekercadio@credit-agricole-sa.fr |
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See all our press releases at:
www.credit-agricole.com
1 Car, home, health, legal, all mobile phones or
personal accident insurance.
2 CA Auto Bank, automotive JVs and
automotive activities of other entities
3 50% reduction in the carbon footprint (tonnes of
CO₂ equivalent/€m invested) of its equity-listed
and corporate bond investment portfolios and directly held
property. (The previous target was a 25% reduction in the carbon
footprint of its equity-listed and corporate bond investment
portfolio in 2025 vs 2019.)
4 Low-carbon energy outstandings made up of
renewable energy produced by the clients of all
Crédit Agricole Group entities, including nuclear energy
outstandings for Crédit Agricole CIB.
5 Crédit Agricole CIB green asset portfolio,
in line with the eligibility criteria of the Group Green Bond
Framework published in November 2023.
6 The reorganisation of the Mobility activities of the
CA Consumer Finance Group had a non-recurring impact
in Q3 2023 due to the transfer of business assets, indemnities
received and paid, the accounting treatment of the 100%
consolidation of CA Auto Bank (formerly FCA Bank)
and the reorganisation of the automotive financing activities
within the CA Consumer Finance Group (particularly
the review of application solutions).
7 See Appendixes for more details on specific
items.
8 The cost of risk/outstandings (in basis points) on a
four-quarter rolling basis is calculated on the cost of risk of the
past four quarters divided by the average outstandings at the start
of each of the four quarters
9 The cost of risk/outstandings (in basis points) on
an annualised basis is calculated on the cost of risk of the
quarter multiplied by four and divided by the outstandings at the
start of the quarter
10 Average rate of loans to monthly production for
July and August 2024.
11 Equipment rate - Home-Car-Health policies, Legal,
All Mobile/Portable or personal accident insurance
12 SAS Rue La Boétie dividend paid annually in
Q2
13 Home Purchase Savings Plan base effect (reversal of
the Home Purchase Savings Plan provision) in Q3-23 totalling +€118m
in revenues and +€88m in net income Group share.
14 Underlying, excluding specific
items.
15 Scope effect of Degroof Petercam revenues:
+€140 million in the third quarter of 2024.
16 Scope effect in expenses in the third quarter of
2024: Degroof Petercam for -€104 million and
miscellaneous others.
17 Costs related to the integration of ISB (CACEIS):
-€26 million in third quarter 2024 versus -€5 million in
third quarter 2023; costs related to the integration of
Degroof Petercam: -€8 million in third quarter 2024.
18 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.
19 The cost of risk/outstandings (in basis points) on
a four-quarter rolling basis is calculated on the cost of risk of
the past four quarters divided by the average outstandings at the
start of each of the four quarters
20 The cost of risk/outstandings (in basis points) on
an annualised basis is calculated on the cost of risk of the
quarter multiplied by four and divided by the outstandings at the
start of the quarter
21
See
Appendixes for more details on specific items.
22 SRF costs amounted to -€509 million over the
first nine months of 2023
23 See Appendixes for details on
the calculation of the RoTE (return on tangible equity)
24 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
25 Property and casualty insurance premium income
includes a scope effect linked to the first consolidation of CATU
(a property and casualty insurance entity in Poland): Impact of
+0.5% on growth in property and casualty insurance premium income
(+8.7% change in premium income excluding CATU between the third
quarter of 2023 and the third quarter of 2024); Impact of +2.0% on
portfolio growth, i.e. an impact of 314,000 contracts (+3.1% growth
excluding CATU between September 2023 and September 2024).
26 Scope: property and casualty in
France and abroad
27 P&C combined ratio in France (Pacifica)
including discounting and excluding undiscounting, net of
reinsurance: (claims + operating expenses + fee and commission
income) to gross earned premiums; the ratio is calculated for the
first nine months of 2024. The net combined ratio excluding the
effect of discounting for the first nine months of 2024 is 97.7%
(-0.2 percentage point year-on-year).
28 Excl. JVs
29 Excluding assets under custody for institutional
clients
30 Amount of allocation of Contractual Service Margin
(CSM) and Risk Adjustment (RA) including funeral
guarantees
31 Amount of allocation of CSM and RA
32 Net of cost of reinsurance, excluding financial
results
33 Indosuez Wealth Management scope
34 Degroof Petercam data for the quarter included in
Wealth Management results: Revenues of €140m and expenses of -€104m
(excluding integration costs partly borne by Degroof
Petercam)
35 Refinitiv LSEG
36 Bloomberg in EUR
37 CA Auto Bank, automotive JVs and auto
activities of other entities
38 CA Auto Bank and automotive JVs
39 Base effect related to the reorganisation of
Mobility activities in Q3-23: +€1m in revenues, -€26m in
equity-accounted entities, +€61m in net income on other assets,
-€16m in corporate income tax, i.e. +€19m in net income Group
share
40 Base effect related to the reorganisation of
Mobility activities in 9M-23: +€300 million in revenues,
-€18 million in expenses, -€85 million in cost of risk,
-€39 million in equity-accounted entities, +€89 million
in net income on other assets, -€89 million in corporate
income tax, i.e. +€159 million in net income Group
share.
41 Cost of risk for the last four quarters as a
proportion of the average outstandings at the beginning of the
period for the last four quarters.
42 Base effect related to the reorganisation of
Mobility activities in 9M-23: +€300 million in revenues,
-€18 million in expenses, -€85 million in cost of risk,
-€39 million in equity-accounted entities, +€89 million
in net income on other assets, -€89 million in corporate
income tax, i.e. +€159 million in net income Group
share.
43 Net of POCI outstandings
44 Source: Abi Monthly Outlook, July 2024: -1.9%
June/June and -1.2% year to date for all loans
45 Home Purchase Saving Plan base effect (reversal of
the provision for Home Purchase Saving Plans) in Q2-23 of
+€52 million in revenues and +€37 million in net income
Group share.
46 Reversal of provision for Cheque Image Exchange
Provision of + €21m in Q2-23
47 At 30 September 2024 this scope includes the
entities CA Italy, CA Polska, CA Egypt and CA
Ukraine.
48 Over a rolling four quarter
period.
49 A credit institution that is a wholly owned
subsidiary of Crédit Agricole S.A. Large credit exposures
borne by the Regional Banks must be presented to Foncaris, which
partially guarantees such exposures.
50 As part of its annual resolvability assessment,
Crédit Agricole Group has chosen to waive the possibility
offered by Article 72ter(3) of the Capital Requirements Regulation
(CRR) to use senior preferred debt for compliance with its TLAC
requirements in 2024.
51 Gross amount before buy-backs and
amortisations
52 Excl. AT1 issuances
53 Gross amount before buy-backs and
amortisations
54 Excl. AT1 issuances
55 Excl. senior secured debt
56 Excl. senior secured debt
57 Excl. AT1 issuances
58 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.
Credit Agricole (EU:ACA)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Credit Agricole (EU:ACA)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
