GlobeNewsWire - AGRICULTURAL CREDIT SA (XCA) CREDIT AGRICOLE SA: Q1-2024 Results : THE GROUP CONTINUES TO GROW (2024)

THE GROUP CONTINUES TO GROW
CASA AND CAG STATED AND UNDERLYING DATA Q1-2024
CRÉDITAGRICOLES.A. CRÉDITAGRICOLEGROUP
Stated Underlying Stated Underlying
Revenues €6,806m
+11.2% Q1/Q1
€6,797m
+10.5% Q1/Q1
€9,525m
+6.7% Q1/Q1
€9,475m
+5.8% Q1/Q1
Expenses -€3,669m
-4.5% Q1/Q1
-€3,649m
-5.0% Q1/Q1
-€5,589m
-5.4% Q1/Q1
-€5,569m
-5.8% Q1/Q1
Gross Operating Income €3,137m
+37.6% Q1/Q1
€3,148m
+36.1% Q1/Q1
€3,936m
+30.4% Q1/Q1
€3,906m
+28.1% Q1/Q1
Cost of risk -€400m
+6.9% Q1/Q1
-€380m
+1.6% Q1/Q1
-€651m
-18.9% Q1/Q1
-€631m
+15.2% Q1/Q1
Net income group share €1,903m
+55.2% Q1/Q1
€1,933m
+54.7% Q1/Q1
€2,384m

+42.8% Q1/Q1

€2,383m
+40.8% Q1/Q1
C/I ratio 53.9%
-0.5pp Q1/Q1
(excl. SRF)
53.7%
-0.4pp Q1/Q1
(excl. SRF)
58.7%

-0.5pp Q1/Q1

(excl. SRF)1

58.8%
-0.2pp Q1/Q1
(excl. SRF)
OUTLOOK: 2024 RESULTS EXPECTED TO REACH 2025 AMBITIONS MTP TARGET A YEAR AHEAD

HIGHEST-EVER FIRST QUARTER driven by the increase in GOI excluding SRF and the end of SRF building-up period

CONTINUED DEVELOPMENT OF THE UNIVERSAL BANKING MODEL

  • Continued development of the customer-focused universal banking model, supported by dynamic customer capture, higher inflows, sustained insurance activity, high and balanced asset management net inflows, despite the slowdown in new home loans in France and Italy
  • Strong momentum in Large Customers, resulting in record performance for the quarter in CIB and a record level of assets under custody and administration for CACEIS
PROGRESS IN STRATEGIC OPERATIONS
  • Continuation of ongoing operations: integration of ISB; creation of CAWL, JV with Worldline; finalisation of the acquisition of Alpha Associates; continued work on the acquisition of Degroof Petercam scheduled for mid-2024.
  • Announcement of a MoU for a strategic partnership with Victory Capital
INCREASED SUPPORT FOR THE ENERGY TRANSITION
  • A transition plan based on three complementary, ordered areas:
  1. Accelerating the development of renewable and low-carbon energy by focusing our financing on renewable and low-carbon energy projects
  2. Supporting, as a universal bank, everyone’s transition: equipping all corporates and households
  3. Structuring our own exit trajectory from the financing of carbon-based energy
  • The Net Zero trajectories as at the end of 2023 are in line with the 2030 targets.
VERY SOLID CAPITAL AND LIQUIDITY POSITIONS
  • CréditAgricoleS.A. phased-in CET1 11.8%
  • CAGroup phased-in CET1 17.5%

Dominique Lefebvre,
Chairman of SAS Rue La Boétie and Chairman of the CréditAgricoleS.A. Board of Directors

«Solid results to support all our clients in long-term transitions. »

Philippe Brassac,
Chief Executive Officer of CréditAgricoleS.A.

«For the 3rd time in a row, the financial ambitions of our medium-term plan should be achieved a year ahead of schedule, i.e., by the end of 2024. »

This press release comments on the results of CréditAgricoleS.A. and those of CréditAgricoleGroup, which comprises the CréditAgricoleS.A. entities and the CréditAgricole Regional Banks, which own 60.2% of CréditAgricoleS.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.

CréditAgricoleGroup

Group activity

The Group recorded strong commercial activity this quarter across all business lines thanks to the continued development of the universal banking model. Gross customer capture has been dynamic. In the first quarter of 2024, the Group recorded +512,000 new customers in retail banking, and the customer base grew by +67,000 customers. More specifically, over the quarter, the Group recorded +409,000new customers for Retail Banking in France and +103,000 new International Retail Banking customers (Italy and Poland), and the customer base also grew (+57,000 and +10,000 customers respectively).

In retail banking, on-balance sheet deposits totalled €824billion, up +3.9% year-on-year in France and Italy (+3.7% for RegionalBanks and LCL and +5.8% in Italy). Outstanding loans totalled €872billion, up +1.2% year-on-year in France and Italy (+0.3% for RegionalBanks and LCL and +1.5% in Italy). Home loan production slowed down in France1 and Italy in the first two months of the year, by -45% compared with the first quarter of 2023 for Regional Banks, -54% for LCL and -11.6% for CAItaly. The property and casualty insurance equipment rate rose to 43.4% for the Regional Banks (+0.5percentage points compared to the first quarter of 2023), 27.8% for LCL (+0.4percentage point) and 19.3% for CAItaly (+2.0percentage points).

In asset management, inflows were high and balanced by major customer segment, type of management and geographical area, in contrast to the European market. In savings/retirement, CréditAgricoleAssurances posted record gross inflows (€8.6billion, up +4.3% year-on-year), and the unit-linked rate remained high in production (39.1%). In property and casualty insurance, the portfolio grew by +3.4% year-on-year to 16million policies. Assets under management are at their highest level ever, and have risen compared to the end of March 2023 in asset management (€2,116billion, or +9.4%), life insurance (€335billion, or +3.2%) and wealth management (IWM and LCL €197billion, or +6.3%).

The SFS division also recorded a good level of activity, with an increase in consumer finance outstandings at CAConsumerFinance (+8.4% compared to the end of March 2023), driven by automotive activities, which account for 53%2 of total outstandings, and growth in production and leasing outstandings at CAL&F (€19.4billion, or +9.1% compared to the end of March 2023).

Momentum is strong in Large Customers, with high revenues in capital markets and investment banking driven by primary credit and by financing activities that are benefiting from growth in commercial banking. CACEIS posted a record level of assets under custody (€5,015billion, +19.4% compared to the end of March 2023) and assets under administration (€3,415billion, +54.1% compared to the end of March 2023), and benefited from the integration of ISB, positive market impacts and strong commercial momentum.

Each of the Group’s business lines posted strong levels of activity (see Infra).

Increased support for the energy transition

The Group has defined a transition plan based on three complementary and ordered areas.

First, the Group has made efforts to ramp up the roll-out of renewable and low-carbon energy, by focusing our financing on renewable and low-carbon energy projects As such, the CréditAgricoleGroup increased its exposure to low-carbon energy financing3 by +80% between 2020 and 2023, with €19.7billion at 31 December 2023. In addition, CAA’s financing of renewable energy capacity increased by +14% in 2023, representing 13.5gigawatts at 31 December 2023.

At the same time, as a universal bank, CréditAgricole is supporting the transition of all its customers. As such, CréditAgricoleCIB’s green loans portfolio4 increased by +43% between December 2022 and March 2024, and represented €17.7billion at 31 March 2024. Electrified vehicles5 accounted for a quarter of the total number of vehicles financed by CAConsumerFinance in 2023, and solutions are being offered to customers (J’écorénove mon logement, Agilauto, Carbioz carbon credit platform).

Finally, CréditAgricole is structuring its own exit trajectory from the financing of carbon-based energy. The Net Zero trajectories at the end of 2023 are in line with the 2030 targets for the five sectors whose trajectories6 were announced in 2022. Emissions financed in the oil and gas sector are down by -63% against a target of -75%7. The intensity of emissions financed in the power sector8 is down -17% (target -58%), while in the automotive sector it is down -13% (target -50%), in the commercial real estate sector it is down -5% (target -40%), and in the cement sector it is up +3% (target -20%). In this small portfolio (fewer than 10customers), the exit of some relatively less carbon-intensive customers has led to an inevitable increase in the intensity of the portfolio, which does not reflect the reality of the sector or of our actions.

The Group is also committed to ceasing all financing of new fossil fuel extraction projects. The total amount of its direct exposure9 to the financing of fossil fuel extraction projects to which it is still committed stood at $1,060million at the end of December 2023, down -23% since 2020.

Group results

In the first quarterof 2024, the CréditAgricoleGroup’s stated netincomeGroupshare came to €2,384million, up +42.8% compared to the firstquarterof2023 (+6.1% excluding SRF).

Specific items in the firstquarterof2023 had a negative net impact of +€1million on the CréditAgricoleGroup’s net income Group share. These include the following recurring accounting items: recurring accounting volatility items in revenues, such as the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA, and secured lending for +€4million in net income Group share on capital markets and investment banking, and the hedging of the loan book in the Large Customers segment for +€1million in net income Group share. In addition to these recurring items, there were a number of items specific to this quarter: a reversal of the Home Purchase Saving Plans provisions for +€30million in the net income Group share of the Regional Banks and +€1million in the net income Group share of the Corporate Centre; ISB integration costs of -€10million in the net income Group share of the Large Customers division; an addition of provision for risk Ukraine for -€20million in the net income Group share of International Retail Banking; the acquisition costs of Degroof Petercam for -€6million in the net income Group share of private banking.

Excluding these specific items, the CréditAgricoleGroup’s underlying netincomeGroupshare10 amounted to €2,383million, up +40.8% compared to the firstquarter of2023, and up +5.0% excluding SRF.

Crédit Agricole Group – Stated and Underlying results Q1-2024 and Q1-2023

€m Q1-24
stated
Specific items Q1-24
underlying
Q1-23
stated
Specific items Q1-23
underlying
∆ Q1/Q1
stated
∆ Q1/Q1
underlying
Revenues 9,525 50 9,475 8,927 (32) 8,959 +6.7% +5.8%
Operating expenses excl.SRF (5,589) (20) (5,569) (5,284) - (5,284) +5.8% +5.4%
SRF - - - (626) - (626) (100.0%) (100.0%)
Gross operating income 3,936 30 3,906 3,018 (32) 3,049 +30.4% +28.1%
Cost of risk (651) (20) (631) (548) - (548) +18.9% +15.2%
Cost of legal risk - - - - - - n.m. n.m.
Equity-accounted entities 68 - 68 108 - 108 (36.7%) (36.7%)
Net income on other assets (7) (8) 2 4 - 4 n.m. (63.2%)
Change in value of goodwill - - - - - - n.m. n.m.
Income before tax 3,347 2 3,345 2,581 (32) 2,613 +29.6% +28.0%
Tax (755) (6) (749) (711) 8 (719) +6.2% +4.2%
Net income from discont'd or held-for-sale ope. - - - 2 - 2 (100.0%) (100.0%)
Net income 2,592 (4) 2,595 1,872 (24) 1,896 +38.4% +36.9%
Non controlling interests (208) 5 (212) (204) - (204) +2.1% +4.3%
Net income Group Share 2,384 1 2,383 1,669 (24) 1,692 +42.8% +40.8%
Cost/Income ratio excl.SRF (%) 58.7% 58.8% 59.2% 59.0% -0.5 pp -0.2 pp

In the first quarter of 2024, underlying revenues amounted to €9,475million, up +5.8% compared to the first quarter of 2023, driven by the good performance of all business lines. Revenue growth was positive in all the core businesses, with dynamic activity and a positive market effect in Asset Gathering, a record level of corporate and investment banking in the Large Customers division and the integration of ISB into CACEIS11 generating the initial synergies, the consolidation of CAAutoBank12 into Specialised Financial Services, momentum in fee and commission income and international growth in the net interest margin in Retail Banking, and the positive effect of the valuation of Banco BPM securities in the Corporate Centre. Underlying operating expenses rose by +5.4% (excluding SRF) in the first quarter of 2024, to €5,569million, due in particular to the scope effects of the integration of RBC IS Europe13 and CAAutoBank14, in addition to increases in employee expenses in an inflationary environment and IT investments. Overall, the Group saw its underlying cost/income ratio improve by -0.2percentage point (excluding SRF) to 58.8% in the first quarter of 2024. The contribution to the SRF in the first quarter of 2023 was -€626million. Underlying gross operating income amounted to €3,906million, an increase of +28.1% compared to the first quarter of 2023, or +6.3% adjusted for the SRF expense.

The underlying cost of credit risk amounted to -€631million, including a reversal of +58million on performing loans (levels 1 and 2), an addition of -€690million for the cost of proven risk (level 3) and -€1million for the reversal of other risks, i.e. an increase of +15.2% compared to the first quarter. The provisioning levels were determined by taking into account several weighted economic scenarios, as in previous quarters, and by applying adjustments on sensitive portfolios. The economic scenarios for the first quarter of 2024 are identical to those used for the previous quarter. The costofrisk/outstandings15 over a rolling four-quarter period stood at 25basispoints, which is in line with the 25-basis point assumption of the Medium-Term Plan. It stands at 21basis points on a quarterly annualised basis16.

Underlying pre-tax income stood at €3,345million, a year-on-year increase of +28.0%. It included the contribution from equity-accounted entities for €68million (down -36.7%, mainly due to the removal from the scope of equity-accounted entities of FCA Bank, which is now fully consolidated) and net income from other assets, which came to €2million this quarter. The underlying tax charge rose by +4.2% over the period, with the tax rate this quarter at 22.9%, a decline of -5.8percentage points. The fall in the tax rate is explained by the disappearance of the SRF expense this quarter, which was not deductible. Underlying net income before non-controlling interests was up +36.9% to €2,595million. Non-controlling interests rose +4.3%. Lastly, underlying netincomeGroupshare was €2,383million, +40.8% higher than in the first quarter of 2023.

Regional banks

Gross customer capture stands at +306,000 new customers and the customer base grew by +29,000 new customers since the beginning of the year. The percentage of customers using their current accounts as their main account rose by 0.5percentage point year-on-year to 76.3%. The share of customers using digital tools increased to 76.8%17 (+1.9percentage points compared to end-March 2023) and the number of online signatures18 increased by +15% between the first quarter of 2023 and the first quarter of 2024.

Loan production fell this quarter by -32.4% compared to first quarter 2023. The decline is sharp in home loans (-44.6% compared to the first quarter of 2023), but comes against the backdrop of a slowdown in the market19. The lending rate for home loans20 stood at 3.85% for the January/February period, 20basis points higher than in the fourth quarter of 2023. Loan outstandings reached €644billion at the end of March 2024, up +1.1% compared to the end of March 2023 driven in particular by the corporate market (+4.2% compared to the end of March 2023).

Total customer assets rose by +3.7% year-on-year to €893.1billion at end-March 2024. This growth was driven by both on-balance sheet deposits, which reached €595.5billion at the end of March 2024, up +3.3% compared to the end of March 2023 (including +4.5% on passbook accounts and +80.4% on term deposits), and off-balance sheet deposits, which reached €297.6billion, up +4.6% year-on-year.

The equipment rate for property and casualty insurance was 43.4% at the end of March 2024 and is continuing to rise (up +0.5percentage point compared to 2023). In terms of payment instruments, the number of cards rose by +1.5% year-on-year, as did the percentage of premium cards, which increased by +1.4percentage points year-on-year to account for 15.2% of all cards.

In the first quarter of 2024, the Regional Banks’ consolidated revenues including the SAS Rue La Boétie dividend21 stood at €3,295million, down -1.0% compared to the first quarter of 2023, due to a -17.6% decline in the net interest margin. Portfolio revenues were up, as was fee and commission income, which rose by +7.6%, particularly on payment instruments. The Regional Banks’ consolidated revenues, including the SAS Rue La Boétie dividend, rose by +2.2% compared to the fourth quarter of 2023.

Operating expenses fell by -2.8%; excluding the SRF22, the moderate increase was due to higher employee expenses and IT expenses. Gross operating income rose by +5.0%, but fell by -8.2% excluding the SRF. The cost of risk increased by +46.3%, compared to the first quarter of 2023, to -€247million. This increase in the default rate is mainly due to the impact of corporate specific files.

The Regional Banks’ consolidated net income, including the SAS Rue La Boétie dividend23, amounted to €439million in the first quarter of 2023, stable compared to the first quarter of 2023.

The Regional Banks’ contribution to net income Group share was €442million in the first quarter of 2024, up +5.1% compared to the first quarter of 2023.

CréditAgricoleS.A.

Results

CréditAgricoleS.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 2 May 2024 to examine the financial statements for the first quarter of 2024.

Crédit Agricole S.A. – Stated and Underlying results, Q1-2024 and Q1-2023

€m Q1-24
stated
Specific items Q1-24
underlying
Q1-23
stated
Specific items Q1-23
underlying
∆ Q1/Q1
stated
∆ Q1/Q1
underlying
Revenues 6,806 9 6,797 6,121 (32) 6,153 +11.2% +10.5%
Operating expenses excl.SRF (3,669) (20) (3,649) (3,328) - (3,328) +10.2% +9.6%
SRF - - - (513) - (513) (100.0%) (100.0%)
Gross operating income 3,137 (11) 3,148 2,280 (32) 2,312 +37.6% +36.1%
Cost of risk (400) (20) (380) (374) - (374) +6.9% +1.6%
Equity-accounted entities 43 - 43 86 - 86 (50.4%) (50.4%)
Net income on other assets (6) (8) 2 4 - 4 n.m. (58.5%)
Change in value of goodwill - - - - - - n.m. n.m.
Income before tax 2,773 (39) 2,812 1,996 (32) 2,028 +38.9% +38.7%
Tax (610) 5 (615) (521) 8 (530) +17.1% +16.2%
Net income from discont'd or held-for-sale ope. - - - 2 - 2 n.m. n.m.
Net income 2,163 (34) 2,197 1,476 (24) 1,500 +46.5% +46.5%
Non controlling interests (259) 5 (264) (250) 1 (251) +3.7% +5.3%
Net income Group Share 1,903 (30) 1,933 1,226 (23) 1,249 +55.2% +54.7%
Earnings per share (€) 0.50 (0.01) 0.51 0.36 (0.01) 0.37 +40.2% +40.0%
Cost/Income ratio excl. SRF (%) 53.9% 53.7% 54.4% 54.1% -0.5 pp -0.4 pp

In the firstquarter of 2024, CréditAgricoleS.A.’s stated netincomeGroupshare amounted to €1,903million, an increase of +55.2% from the firstquarterof 2023.

Specific items for this quarter had a cumulative impact of -€30million 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 +€4million in net income Group share in Large Customers, and the hedging of the loan book in Large Customers for +€1million in net income Group share. In addition to these recurring items, there were a number of items specific to this quarter: a reversal of the Home Purchase Saving Plans provisions for +€1million in the net income Group share of LCL; ISB integration costs of -€10million in the net income Group share of the Large Customers division; a further an addition of provision for risk Ukraine for -€20million in the net income Group share of International Retail Banking; the acquisition costs of Degroof Petercam for -€6million in the net income Group share of private banking.

Excluding specific items, underlyingnet income Group share24 stood at €1,933million in the first quarter of 2024, a +54.7% rise over the first quarter of 2023.

In the first quarter of 2024, underlying revenues reached €6,797million, up sharply by +10.5% compared to the first quarter of 2023. This growth was driven by all the business lines: Asset Gathering benefited from dynamic activity and a positive market effect; Large Customers saw a record level of revenues from corporate and investment banking, in addition to the integration of ISB25 into CACEIS and the generation of the first synergies; Specialised Financial Services benefited from the consolidation of CA Auto Bank26; Retail Banking in France was driven by momentum in fee and commission income; and finally International Retail Banking was driven by the growth in net interest margin. The Corporate Centre division recorded an increase in revenues, mainly due to the valuation of Banco BPM securities.

Underlying operating expenses totalled €3,649million in the first quarter of 2024, an increase of +9.6% excluding SRF compared to the first quarter of 2023. The jaws effect excluding SRF was positive by +0,8percentage point. The +€321million year-on-year increase in expenses was mainly due to a +€173million scope effect27, a +€92million increase in employee expenses against a backdrop of inflation, and +€47million in IT investments. Excluding the scope effect, underlying expenses increased by +4.4% (excluding SRF).

The underlying cost/income ratio in the first quarter of 2024 thus stood at 53.7%, an improvement of -0.4percentagepoint (excluding SRF) compared to the first quarter of 2023.

Underlying gross operating income in the first quarter of 2024 stood at €3,148million, a sharp increase of +36.1% compared to the first quarter of 2023. The SRF expense recognised in the first quarter of 2023 amounted to -€513million. Thus, restated for SRF, underlying gross operating income increased by +11,4%.

As at 31 March 2024, risk indicators confirm the high quality of CréditAgricoleS.A.’s assets and risk coverage level. The diversified loan book is mainly geared towards home loans (26% of gross outstandings) and corporates (42% of CréditAgricoleS.A. gross outstandings). The Non Performing Loans ratio remained stable and low at 2.6%. The coverage ratio28 was high at 69.7%, down -1.1percentage points over the quarter. Loan loss reserves amounted to €9.6billion for CréditAgricoleS.A., relatively unchanged from the end of December 2023. Of those loan loss reserves, 35% were for performing loans (percentage in line with previous quarters).

The underlying cost of risk shows a net addition of -€380million, i.e. a slight increase of 1.6% compared to the first quarter of 2023, when it stood at -€374million. In the first quarter of 2024, the net expense of -€380million consisted of the slight reversal for performing loans (Stages 1 and 2) for +€8million (versus a provision of -€75million in the first quarter of 2023), the provisioning for proven risks (Stage3) for -€384million(versus -€284million in the first quarter of 2023), and -€5million provision in other items. By business line, 58% of net provision for the quarter came from Specialised Financial Services (compared to 42% in the first quarter of 2023), 31% from LCL (compared to 18% in the first quarter of 2023) and 16% from International Retail Banking (compared to 30% in the first quarter of 2023). The provisioning levels were determined by taking into account several weighted economic scenarios, as in previous quarters, and by applying adjustments on sensitive portfolios. The economic scenarios for the first quarter of 2024 are identical to those used for the previous quarter. In first quarter 2024, the cost of risk/outstandings over a rolling four-quarter basis29 was 33basis points, and was 29basis pointson an annualised quarterly basis30.

The underlying contribution of the equity-accounted entities stood at €43millionin the first quarter of 2024, down -50.4% from the first quarter of 2023, in line with the removal of equity-accounted entities from FCA Bank. Net income from other assets came in at €2million in the first quarterof 2024.

Underlying income31 before tax, discontinued operations and non-controlling interests was up +38.7% to €2,812million. The underlying effective tax rate stood at 22.2%, down -5.1percentage points compared to the first quarter of 2023, reflecting the disappearance of the SRF in the first quarter of 2024, an expense that was not tax deductible. The underlying tax charge stood at -€615million, a +16.2% increase. Underlying netincome before non-controlling interests was therefore up +46.5% to €2,197million. Non-controlling interests amounted to -€264million in the first quarter of 2023, up +5.3%.

Underlying netincomeGroupshare stood at €1,933million, up by +54.7% compared to the first quarter of 2023. Adjusted for SRF, underlying net income Group share increased +13.5% year-on-year.

Underlying earnings per share in first quarter2024 reached €0.51, increasing by +40.0% compared to first quarter 2023.

Underlying RoTE32, which is calculated on the basis of an annualised Underlying Net Income Group Share33 and IFRIC charges linearised over the year, net of annualised AdditionalTier1 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 16.3% in first quarter 2024, up by +1.9percentage point compared to the first quarter 2023.

Following Q1 2024 results, Crédit Agricole S.A. discloses a 2024 earnings outlook one year ahead of the Medium-Term Ambitions 2025 Plan, with underlying net income Group share exceeding €6 billion in 2024.

This earnings outlook is based in particular on the continuation of the good business momentum (customer capture, increase in equipment rates, off-balance sheet deposits) resulting in a rise in fees and commissions and in insurance revenues. The integration of recent acquisitions are sources of additional income and complementary synergies in the Asset Servicing (integration of RBC's European activities with CACEIS Investor Services Bank (ISB)), Wealth Management (continued work on the acquisition of Degroof Petercam), and Asset Management (the completion of the acquisition of Alpha Associates by Amundi on April 2, 2024). The shift to the mobility business is a strategic turn for the Specialized financial services division. In Large Customers division, Corporate & Investment Banking thus confirms its leading position in syndicated loans and its good position in bond issues. Finally, structural operating efficiency with a low cost/income ratio and a healthy balance sheet should support this earnings outlook.

The trajectory also takes into account headwinds such as the continued pressure on margins for retail banking in France and for consumer credit business, the cap on the net interest margin at CA Italia as well as 2024 integration costs on ongoing acquisitions (Degroof Petercam ~ 50 million euros, ISB: €80-100 million euros).

Analysis of the activity and the results of CréditAgricoleS.A.’s divisions and business lines

Activity of the Asset Gathering division

In the first quarter of 2024, assets under management in the Asset Gathering (AG) division stood at €2,648billion34, up +3.6% compared to the end of December 2023 thanks to a positive market effect, as well as net inflows of +€19.2billion, positive in the three business lines of Asset Management, Insurance and Wealth Management. Over one year, assets under management rose by +8.4%.

Insurance activity (CréditAgricoleAssurances) reached a record level in the first quarter of 2024, with total premium income of €12.3billion at the end of March, up +5.2% compared to March 2023 with growth in all three segments: savings/retirement, property and casualty, and death & disability/creditor/group insurance.

In Savings and Retirement, gross inflows reached a record €8.6billion, up +4.3% year-on-year. This was driven by the recovery in business in Italy and Luxembourg, in addition to the deposit bonus campaigns launched during the first quarter, which boosted gross euro inflows. The unit-linked rate accounted for 39.1% of gross inflows, down -6.7percentage points compared to the first quarter of 2023. This decline is linked to the recovery in gross euro inflows and less favourable market conditions for unit-linked products, in particular the reduced attractiveness of unit-linked fixed income products. Net inflows improved strongly to reach +€1.0billion this quarter, mainly due to lower outflows on the General Account. Net inflows amounted to +€1.5 billion on unit-linked products and -€0.5 billion in General Account. Life insurance assets under management (savings, retirement and funeral insurance) reach a total of €334.9billion (+€10.3billion, or +3.2% year on year) and over the quarter (+€4.5billion, +1.4% compared to the end of December 2023). Life insurance assets under management were driven by a positive market effect in addition to net inflows. Unit-linked contracts reach a record level of 29.5% of assets under management, up +2.3percentage points over one year and +0.6percentage point compared to the end of December 2023.

In property and casualty insurance, the activity was dynamic, with premium income of €2.4billion in the first quarter of 2024, up +7.9% compared to the first quarter of 2023. This growth was driven by volume and price effects. Indeed, at the end of March 2024, the portfolio stood at 16.0million35 contracts, up +3.4% year-on-year. At the same time, the average premium is up, benefiting from rate revisions in addition to changes in the product mix. Lastly, the combined ratio stood at 93.8%36, a slight improvement of -0.9percentage point year-on-year, thanks to a favourable impact of discounting, as the weather-related claims remained stable.

In death & disability/creditor insurance/group insurance, premium income for the first quarter of 2024 stood at €1.3billion, up +6.0% compared to the first quarter of 2023. Creditor insurance revenue remained resilient (-0.1%) despite the decline in new business (due to lower loan production). Individual death and disability insurance and group insurance posted strong increases, with +15.2% and +21.8% respectively compared to the first quarter of 2023.

Asset management (Amundi) posted a very good level of inflows in the first quarter of 2024. Inflows were high, at +€16.6billion, and balanced by customer segment37, management type38 and geography. Amundi sets itself apart from the European asset management market with its inflows in active management.

Assets under management reached a high of €2,116billion at end-March 2024, up +3.9% compared to 31 December 2023, and +9.4% year-on-year. This figure includes a positive market and forex effect of +€63.0billion.

Retail inflows (+€6.5billion in the first quarter of 2024) were boosted by the excellent performance of third-party distributors (+€7.0billion), driven by passive and money market management, with continued inflows from the French networks (+€1.5billion) thanks to treasury products, offsetting outflows from international networks (in particular in Italy).

The Institutional segment recorded inflows of +€5.6billion in the first quarter of 2024. Inflows were driven by cash products (+€3.9billion), and medium- and long-term assets (+€1.7billion) despite seasonal outflows in employee saving schemes and continued withdrawals from euro-denominated contracts.

Lastly, JVs recorded inflows of +€4.5billion. Inflows were positive in all countries, driven by strong growth in India and Korea. Inflows were at break-even point in China.

Lastly, two value-creating transactions took place during the quarter, with the completion of the acquisition of Alpha Associates on 2 April and the signing of a strategic partnership memorandum of understanding39 with Victory Capital in the United States on 15 April 2024. Alpha Associates will be integrated from the second quarter onwards, with assets totalling €9billion at end-March 2024. This transaction further strengthens Amundi’s expertise and creates a European leader in private asset multi-management. In addition, the memorandum of understanding signed with Victory Capital aims to merge Amundi’s activities in the United States with the US asset manager, in exchange for Amundi acquiring a 26.1% stake in Victory Capital and reciprocal 15-year international distribution agreements. The merger of Amundi US and Victory Capital would create a larger US investment platform to serve the customers of both companies. As a result, Amundi would have a broader range of US and global investment expertise to offer its customers, while Victory Capital would expand its ability to distribute its products outside the US.

In Wealth Management, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €197billion at end-March 2024 (of which €133.2billion40 for Indosuez Wealth Management), up on end-December 2023 (+€6.7billion, +3.5%), including a positive market effect of +€5.1billion, (of which +€4.1billion for Indosuez Wealth Management) and positive net inflows of +€1.6billion (of which +€1.4billion for Indosuez Wealth Management, with structured products continuing to be popular with customers).

Results of the Asset Gathering division

In the first quarter of 2024, AG generated revenues of €1,789million, up +2.5% compared to the first quarter of 2023. The increase is explained by good revenue performance in all three business lines: asset management, insurance and wealth management. Expenses rose by +5.5% (excluding SRF) to -€754million. Thus, the cost/income ratio stood at 42.1%, up +1.2percentagepoints (excluding SRF) compared to the first quarter of 2023. The cost of the contribution to the SRF amounted to -€6million in the first quarter of 2023. Gross operating income stood at €1,035million, up +1.0% compared to the first quarter of 2023, and up +0.4% excluding SRF over the same period. Taxes stood at €220million, down -4.5%. The net income Group share of AG stood at €716million, up +2.6% compared to the first quarter of 2023. The rise in income from insurance (+4.1%) and asset management (+5.7%) offset the decline in income from wealth management (-16.2%).

In the first quarter of 2024, the Asset Gathering division contributed by 35% to the underlying net income Group share of the CréditAgricoleS.A. core businesses (excluding Corporate Centre division) and 26% to underlying revenues excluding the Corporate Centre division.

As at 31 March 2024, capital allocated to the division amounted to €12.7billion, including €10.8billion for Insurance, €1.3billion for Asset management, and €0.6billion for Wealth management. The division’s risk weighted assets amounted to €55.8billion, including €35.3billion for Insurance, €14.2billion for Asset management and €6.3billion for Wealth management.

The underlying RoNE (return on normalised equity) stood at 26.7% for the first quarter of 2024.

Insurance results

In the first quarter of 2024, insurance revenues amounted to €722million, up +1.5% compared to the first quarter of 2023. This includes €505million from savings/retirement41, €131million from personal protection42 and €113million from property and casualty insurance43. The increase in allocation of CSM (linked to the rise in outstandings and strong business momentum) and the prior year release in personal protection were partially offset by the fall in financial income44. CSM stood at €23.9billion, up slightly from 31 December 2023 (+0.2%), benefiting from the contribution of new business in a favourable market environment.

Gross operating income stood at €631million, stable (+0.2%) compared to the first quarter of 2023, with an increase in non-attributable expenses due to the creation of the Insurers’ guarantee fund in Italy (set up in 2024). The cost/income ratio was 12.7%, up +1.2percentage points, below the target ceiling of 15% set by the Medium-Term Plan. The tax charge came to -€123million, down -10.8% compared to the first quarter of 2023, thanks to a favourable tax effect. As a result, the net income Group share was €494million, up +4.1% compared to the first quarter of 2023.

Insurance contributed by 24% to the underlying net income Group share of the CréditAgricoleS.A. core businesses (excluding the CorporateCentre division) at end-March2024 and by 10% to their underlying revenues.

Asset management results

In the firstquarterof 2024, revenues amounted to €804million. They rose by +3.9% compared to the first quarter of 2023, driven by management fee and commission income (+4.0%) despite an unfavourable product mix on inflows. Technology revenues and net financial income were up by +36% and +43% compared to the first quarter of 2023, offsetting the decrease in performance fee and commission income (€18 million). Operating expenses stood at -€449million, up +4.3% excluding SRF, reflecting accelerated investment in the development of Amundi Technology. As a result, the cost/income ratio was stable year-on-year at 55.8% (+0.2percentage points excluding SRF). SRF expenses stood at -€3million in the first quarter of 2023. Gross operating income increased by +4.5% compared to the first quarter of 2023, and by +3.5% excluding SRF. The contribution from equity-accounted entities, comprising the contribution from the Amundi joint ventures, stood at €29million, up +30.4% from the first quarter of 2023, driven in particular by the strong growth of contribution from SBI MF in India. The tax charge worked out at -€88million, up +6.5%. Overall, net income Group share totalled €197million, up +5.7% compared to the first quarter of 2023.

Asset management contributed 10% to the underlying net income Group share of CréditAgricoleS.A.’s core businesses (excluding the CorporateCentre division) at end-March2024 and by 12% to their underlying revenues.

At 31 March 2024, capital allocated to Asset Management amounted to €1.3billion, while risk weighted assets totalled €14.2billion.

Wealth management results45

Revenues of Wealth Management stood at €264million in the first quarter of 2024, up +1.1% compared to the first quarter of 2023. This was the best quarter in terms of revenue for Wealth Management, buoyed by strong performances from management and transaction fee and commission income. Expenses stood at €214million, up +5.6% (excluding SRF) compared to the first quarter of 2023, mainly due to increases in staff costs, part of which are non-recurring. Moreover, excluding the foreign exchange impact, operating expenses rose by +3.9%. As a result, the cost/income ratio stands at 81.2 % in the first quarter 2024, increasing by +3.4percentage points (excluding SRF) as compared to the first quarter 2023. SRF expenses stood at €3million in the first quarter of 2023. Gross operating income stood at €50million, down -10.2% compared to the first quarter of 2023, and down -14,4% excluding SRF over the same period. Net income on other assets stood at -€8million in the first quarter of 2024, corresponding to the Degroof Petercam acquisition costs, restated as specific items. Net income Group share amounted to €25million, down -31.9% compared to the first quarter of 2023.

Wealth management contributed 1% of CréditAgricoleS.A.’s business lines underlying net income Group share. (excluding the CorporateCentre division) at end-March2024 and by 4% to their underlying revenues.

At 31 March 2024, capital allocated to Wealth management was €0.6 billionand risk weighted assets totalled €6.3billion.

The Degroof Petercam acquisition is expected to close in mid-2024. This acquisition is expected to generate additional net income Group share after synergies of around +€150 million to +€200million in 2028. In 2024, acquisition-related and integration costs are expected to total €-50million gross, with €-8.0million recognised in the first quarter of 2024.

Activity of the Large Customers division

Corporate and Investment banking (CIB) as a whole posted a record performance for the first quarter of 2024. Asset servicing also recorded strong business during the period.

CIB first-quarter underlying revenues rose sharply to €1,751million, an increase of +1.6% from the first quarter of 2023. This growth was driven by a good performance in financing activities, with revenues up +6.3% compared to the first quarter of 2023 at €832million. This was mainly due to the strong performance of commercial banking (+10.1% compared to the first quarter of 2023), driven by International Trade & Transaction Banking activities (particularly cash management) and by the development of Corporate Leveraged Finance activities. In addition, the structured financing activities remained stable compared to the first quarter of 2023.

Capital markets and investment banking revenues totalled €919million, down -2.3% compared to a high first quarter 2023: good performance by FICC (-3.0%), whose market share is growing, driven by Primary Credit and Securitisation activities. Investment banking business held steady, with underlying revenues up +1.4%, driven by Structured Equities.

Financing activities thus confirmed its leading position in syndicated loans (#2 in France46 and #2 in EMEA46). CréditAgricoleCIB reaffirmed its strong position in bond issues (#4 All bonds in EUR Worldwide46) and was ranked #5 in Green, Social & Sustainable bonds in EUR47. Average regulatory VaR stood at €11.5million in the first quarter of 2024, down from €13.2million in the fourth quarter of 2023, reflecting changes in positions and financial markets. It remained at a level that reflected prudent risk management.

In addition, in 2024, the integration of RBC Investor Services, now CACEIS Investor Services Bank (ISB), into asset servicing (CACEIS) is set to continue, in particular through the effective merger of the legal entities scheduled for the second quarter of 2024 and the migration of the customer portfolio before the end of the year. ISB integration costs of around €80million to €100million will be recognised during the year, of which €20million in the first quarter of 2024.

In the first quarter of 2024, solid customer business and a rally in the markets led to strong growth in assets over the quarter and the year. Assets under custody were therefore up +6.3% at end-March 2024 compared to end-December 2023 and up +19.4% compared to end-March 2023, to €5,015billion, of which €270billion represented ISB assets. Assets under administration were up +3.5% over the quarter and +54.1% year-on-year, reaching €3,415billion at end-March 2024, including €983billion contributed by ISB.

Results of the Large Customers division

In the first quarter of 2024, stated revenues of the Large Customers division reached a record level of €2,266million, up +10.5% compared to the first quarter of 2023, buoyed by an excellent performance in the corporate and investment banking activities and asset servicing business lines. The division’s specific items this quarter had an impact of +€7million on financing activities and comprised the DVA (the issuer spread portion of the FVA, and secured lending) amounting to +€5million, and loan book hedging totalling +€2million. Operating expenses were up compared to the first quarter of 2023 (+15.7% excluding SRF) due, on the one hand, to variable compensation and IT investments to support development and, on the other hand, to the ISB scope effect (-€103million). In addition, ISB integration costs of -€20million were recognised, restated as specific items. As a result, the division’s gross operating income rose sharply, by +57.2% compared to the first quarter of 2023, to €969million (+4.2% excluding SRF, which represented €314million in the first quarter of 2023). The business line recorded an overall net reversal in the cost of risk of +€33million in the first quarter of 2024, compared to an addition of -€36million in the first quarter of 2023. Stated pre-tax income totalled €1,006million, a substantial rise during the period (+70.8%). The tax charge was -€235million. Lastly, stated net income Group share reached €722million in the first quarter of 2024, compared with stated income of €376millionin first quarter 2023. Underlying net income Group share came to €727million in the first quarter of 2023, versus €399million in the first quarter of 2023.

The business line contributed 36% to the underlying net income Group share of CréditAgricoleS.A.’s core businesses (excluding the Corporate Centre division) at end-March 2024 and 33% to underlying revenues excluding the Corporate Centre.

At 31 March 2024, the capital allocated to the business line was €13.3billion and its risk weighted assets were €139.6billion.

Underlying RoNE (Return on Normalised Equity) stood at 22.2% at end-March 2024.

Corporate and Investment banking results

In the first quarter of 2024, corporate and investment banking stated revenues reached a record €1,758million,up +4.0% from the first quarter of 2023, driven by favourable results in all its business lines. The Corporate and Investment banking division’s specific items this quarter had an impact of +€7million and comprised the DVA (the issuer spread portion of the FVA, and secured lending) amounting to +€5million, and loan book hedging totalling +€2million. Operating expenses rose by +4.4% (excluding SRF) to -€923million, mainly due to variable compensation linked to the buoyant level of business and IT investments. Gross operating income rose sharply by +55.4% compared to the first quarter of 2023, to a high level of €835million (+3.5% excluding SRF, which stood at €270million in the first quarter of 2023). The cost/income ratio was 52.5%, up +0.2percentage point (excluding SRF) over the period. The cost of risk recorded a net reversal of €37million (compared with an addition of -€36million in the first quarter of 2023), impacted by a reversal of €56million linked to synthetic securitisations. Lastly, pre-tax income in the first quarter of 2024 stood at €872million, versus €502million for the first quarter of 2023. The tax charge stood at -€205million. Lastly, stated net income Group share rose sharply by +96.0% to €651million in the first quarter of 2024.

Risk weighted assets at end-March 2024 were up by +€1.6billion compared to end-December 2023, at €126.5billion. This change was mainly due to unfavourable foreign exchange impacts and ratings.

Asset servicing results

In the first quarter of 2024, revenues from asset servicing rose by +41.1% compared to the first quarter of 2023 to €508million, including a scope effect of €108million linked to the consolidation of ISB. This rise was driven by a good performance in fee and commission income, boosted by the increase in assets, and by the favourable trend in the net interest margin. Operating expenses rose by +58.0% (excluding SRF) to -€375million, including the ISB scope effect of -€103million and ISB integration costs of -€20million restated as a specific item. Gross operating income rose sharply to €134million (+69.1%) in the first quarter of 2024 (+8.7% excluding SRF, which stood at -€44million in the first quarter of 2023). The cost/income ratio excluding ISB integration costs was 69.8%, up 4.8points (excluding SRF) compared to the first quarter of 2023. The quarter also recorded €4million in income from equity-accounted entities. Net income thus totalled €105million, up +60.5% compared to the first quarter of 2023. After the €34million share of non-controlling interests, the business line’s contribution to net income Group share totalled €71million in the first quarter of 2024, up +60.5% year-on-year.

Specialised financial services activity

CréditAgricoleConsumerFinance’s (CAConsumerFinance) commercial production totalled €12billion in the first quarter 2024, stable since the third quarter 2023, and down -9.7% compared to the first quarter 2023, impacted by the decline at GAC Sofinco in China. The share of automotive financing48 in quarterly new business production remained high at 52%, and the average customer rate for production rose by +23basis points compared to the fourth quarter of 2023. As a result, CAConsumerFinance’s assets under management stood at €114.4billion at end-March 2024, up +8.4% compared to end-March 2023, driven by the increase in automotive entities (+13.1%)49. Lastly, consolidated outstandings totalled €68.1billion at end-March 2024, up +73% year-on-year, due to the full consolidation of CAAutoBank since the second quarter of 2023.

Crédit Agricole Leasing & Factoring’s (CAL&F) commercial production in equipment leasing was up +6.2% compared to the first quarter of 2023, supported by dynamic distribution in Poland and with the Regional Banks. Leasing outstandings rose by +9.1% year-on-year, both in France and internationally, to reach €19.4billion at end-March 2024 (of which €15.4billion in France and €4.0billion internationally). Commercial factoring production was stable (-1.5%) compared to the first quarter of 2023, buoyed by a number of major deals in Germany. Factoring outstandings were up +2.2% compared to end-2022, thanks to the uptrend in factored revenues (+3.8% Q1/Q1), which totalled €30.4billion. Lastly, CAL&F’s mobility segment continues to develop apace with the roll-out of AgilautoPartage to all the Regional Banks.

Specialised financial services’ results

Revenues from Specialised Financial Services amounted to €846million in the first quarter of 2024, up +26.0% compared to the first quarter of 2023, boosted by the strategic focus on Mobility, intensified from the second quarter of 2023, and in particular by the consolidation of CAAutoBank50. Expenses totalled -€454million, up +22.5% (excluding SRF)51, mainly due to the scope effect50. The cost/income ratio stood at 53.6%, an improvement of -1.5percentage points (excluding SRF)51 compared to the same period in 2023. Gross operating income stood at €392million, up +45.4% compared to the first quarter of 2023 (+30% excluding the SRF contribution)51. The cost of risk stood at -€219million, up +38.1% compared to the first quarter of 2024, but generally stable since the second quarter of 2023, despite the increase in outstandings. Net income Group share amounted to €142million, up +12.1% compared to the same period in 2023.

The business line contributed by 7% to the underlying net income Group share of CréditAgricoleS.A.’s core businesses (excluding the Corporate Centre division) in the first quarter of 2024 and 12% to underlying revenues excluding the Corporate Centre.

At 31 March 2024, the capital allocated to the business line was €6.7billion and its risk weighted assets were €70.4billion.

Underlying RoNE (Return on Normalised Equity) stood at 8.3% in first quarter 2024.

Consumer finance results

CAConsumerFinance’s revenues totalled €669million in the first quarter of 2024, up +31.2% compared to the first quarter of 2023, boosted by the full consolidation of CAAutoBank since the second quarter of 2023. Revenues, excluding the scope effect50, were down against a backdrop of contracting margins on stock (despite the gradual rise in customer rates and production margin rates), which were only partially offset by the increase in outstandings. Expenses stood at -€355million, up +28.0% (excluding SRF52) compared to the same period in 2023. Expenses, excluding the CAAutoBank scope effect, remained under control, up +2.6% (excluding SRF)50,52. Gross operating income thus totalled €315million, up +44.9% (+35% excluding SRF)54.. The cost/income ratio stood at 53%, an improvement of -1.3percentage points excluding SRF compared to the first quarter of 2023. The cost of risk increased by +36% to -€199million compared to the first quarter of 2023, impacted by the integration of CAAutoBank and the increase in outstandings of the other international entities, but has remained stable since the second quarter of 2023. Cost of risk/outstandings stood at 117basis points53, down -2basis points compared to the first quarter of 2023 (-17basis points compared to the second quarter of 2023). The Non Performing Loans ratio and the coverage ratio stood at 4.1% and 78.7% at end-March 2024, down -0.1 and -2.1percentage points respectively compared to end-March 2023. The contribution from equity-accounted entities fell by -56.8% compared to the same period in 2023, due to the full consolidation of CAAutoBank. The tax charge stood at -€29million, +32% compared to the first quarter of 2023. As a result, net income Group share totalled €99million in the first quarter of 2024, up +2.4% compared to the same period last year.

Leasing & Factoring results

CAL&F’s revenues totalled €177million, up +9.5% compared to the first quarter 2023. This increase was driven by all business lines in France and internationally, thanks in particular to volume effects (higher factored revenues and equipment leasing outstandings), as well as favourable exchange rate impacts in Poland, along with tighter control over margins. Expenses rose by a controlled +6.1% excluding SRF54, mainly confined to France with increases in salaries and IT costs. The cost/income ratio stood at 56.1%, an improvement of -1.8percentage points excluding SRF54 compared to the first quarter of 2023. Gross operating income totalled €78million, up +47.4% (+14% excluding SRF contribution). The cost of risk stood at -€19million, up +65.1% compared to the same period in 2023, due in particular to the increase in level 3 provisions. Cost of risk/outstandings stood at 21basis points, up +2basis points compared to the same period in 2023. The tax charge came to -€13million, up +10.5% compared to the first quarter of 2023, in line with business growth. As a result, net income Group share was €44million, up +43.1% compared to the first quarter of 2023.

CréditAgricoleS.A. Retail Banking activity

In CréditAgricoleS.A.’s Retail banking business, loan production lost momentum during the quarter amid rising interest rates, but customer capture continued at a steady pace, and the number of customers taking out insurance policies is high.

Retail banking activity in France

In first quarter 2024, gross customer capture stood at 83,200 new customers and net customer capture came in at 13,600 customers. The equipment rate for car, multi-risk home, health, legal, all mobile phones or personal accident insurance rose year-on-year by +0.4percentage point to stand at 27.8% at end-March 2024.

Against a backdrop of persistently high customer rates, loan production in the first quarter of 2024 stood at €5.1billion, down -29% compared to the same period one year earlier. Loan production increased in the corporate market (+29%), but fell in other markets, particularly in the home loans market (-54%) against the backdrop of a slowdown in the property market (-36% in home loan production between January/February 2024 and January/February 2023, according to Banque de France).The production rate for home loans came to 4.20%, holding steady between the first quarter of 2024 and the fourth quarter of 2023 (+4basis points).

Outstanding loans totalled €168.1billion at end-March 2024, up +1.5% from end-March 2023, of which +2.0% for home loans, +2.1% for loans to small businesses, -0.2% for corporate loans and +0.2% for consumer finance. However, outstanding loans at end-March were slightly lower than at end-December 2023 (-0.4%). Total customer assets, which stood at €250.8billion at end-March 2024 were also up +4.1% compared to end-March 2023. The rise was driven by off-balance sheet savings (+2.1%), which benefited from a positive market effect, and by on-balance sheet deposits (+5.2%) due to increases in passbook and term deposits (55.6% between March 2023 and March 2024; and +7.9% between December 2023 and March 2024).

Retail banking activity in Italy

In the first quarter of 2024, CA Italy posted a gross customer capture of 50,000, while the customer base grew by around 14,000 customers. Loan outstandings at CAItaly stood at €60.1billion55 at the end of March 2024, up +1.5% compared to the end of March 2023. Loan production fell by -13.2% year-on-year, but was up +24.3% for professionals loans. Home loan production fell by -11.6%, in a depressed housing market in Italy56. The stock rate is stable compared to the fourth quarter of 2023. Consumer finance production57 was down -9.8% compared with the first quarter of 2023. Customer assets at end-March 2024 totalled €116.3billion, up +4.5% compared with end-March 2023; on-balance sheet deposits increase +5,8% compared to last year and stable at a high level compared to the fourth quarter 2023, driven by demand deposits from individuals.

CA Italy’s equipment rate in car, multi-risk home, health, legal, all mobile phones or personal accident insurance increased to 19.3%, up +2percentage points compared with the first quarter of 2023.

International Retail Banking activity excluding Italy

For International Retail Banking excluding Italy, loan outstandings were up +4.9% at current exchange rates at end-March 2024 compared with end-March 2023 (+4.7% at constant exchange rates). Customer assets rose by +6.3% over the same period at current rate (+9.2% at constant rate).

In Poland in particular, loan outstandings increased by +14.4% versus March 2023 (+5.3% at constant exchange rates) and customer assets by +9.5% (-2.0% at constant exchange rates), against a backdrop of fierce competition for deposits (impacting Retail inflows in particular). Loan production in Poland also remained strong, rising by +29.5% compared with the first quarter of 2023 at current exchange rates (up +19% at constant exchange rates).

In Egypt, loan outstandings were impacted by the devaluation of the Egyptian pound, falling by -16.7% between end-March 2023 and end-March 2024 (+27.0% at constant exchange rates). Customer assets fell by -18.1% over the same period (+25.0% at constant exchange rates). The surplus of deposits over loans in Poland and Egypt amounted to €1.5billionat 31 March 2024, and reached €3.3billion including Ukraine.

French retail banking results

In first quarter 2024, LCL’s revenues were up +1.8% compared to first quarter 2023, at €954million. Net interest margin was stable compared with the first quarter of 2023, with the gradual repricing of loans and the contribution from macro-hedging offsetting the increase in customer resources and refinancing costs. Fee and commission income also rose significantly (+3.8%), driven by all business lines, in particular life and property and casualty insurance and payment instruments. Charges were under control and totalled -€602million. Excluding SRF, they rose slightly58 (+0.5%), reflecting increased staff costs and IT expenses due to the acceleration in investment. The cost/incomeratio remained low at 63.2%, down -0.8percentagepoint excluding SRF.

Gross operating income was up +22.4%, to €351million (+4.2% excluding SRF).

The cost of risk was up by +80% to -€119million (including +€7million in cost of risk on performing loans, -€127million in proven risk, and +€1million in other risks). This increase was mainly due to corporate specific files. Nevertheless, the cost of risk/outstandings remained under control, at 21basis points. The coverage ratio stood at 59.9% at end-March 2024, down +1.7percentage points compared to end-December 2023. The Non Performing Loans ratio reached 2.1% at end-March 2024, stable compared to end-December 2023 (+0.1percentage point).

As a result, net income Group share increased by +14.2% compared to the first quarter of 2023.

In the end, the business line contributed 8% to the underlying net income Group share of CréditAgricoleS.A.’s core businesses. (excluding the Corporate Centre division) in the first quarter of 2024 and 14% to underlying revenues excluding the Corporate Centre.

At 31 March 2024, the capital allocated to the business line stood at €5.1billion and risk weighted assets stood at €53.5billion. LCL’s underlying return on normalised equity (RoNE) stood at 13.3% for the first quarter of 2024.

International Retail Banking results59

In the first quarter of 2024, International Retail Banking revenues totalled €1,057million, up +9.1% (+9.7% at constant exchange rates) compared with the first quarter of 2023, driven mainly by the rise in the net interest margin against a backdrop of rising interest rates. Operating expenses were under control despite the inflationary environment, coming in at -€505million, or -3.5% compared with the first quarter 2023, -4.0% at constant exchange rates. Gross operating income totalled €552million, up +23.9% (+26.1% at constant exchange rates) for the period. Cost of risk amounted to -€82million, down -28.2% compared to first quarter 2023 (-28,1% at constant exchange rates).

All in all, the net income Group share in CAItaly, CAEgypt, CAPoland and CAUkraine amounted to €256.7million in the first quarter of 2024, up +44.2% (+47.2 at constant exchange rates).

In the first quarter of 2024, the International Retail Banking business line contributed 14% to the underlying net income Group share of CréditAgricoleS.A.’s business lines. (excluding the Corporate Centre) and 15% to underlying revenues excluding the Corporate Centre.

As at 31 March 2024, the capital allocated to International Retail Banking was €4.4billion and risk weighted assets for the division totalled €46.1billion.

Results in Italy

In first quarter 2024, CréditAgricoleItaly’s revenues stood at €775million, up +1.8% compared to first quarter 2023. As a result of the favourable interest rate environment, net interest margin increased by +2.5% between the first quarter of 2024 and the first quarter of 2023 and was stable compared with the fourth quarter of 2023. Compared with the first quarter of 2023, the increase was driven by a rise in loan production rates, which rose by19 basis points, but also by the revaluation of the rate on loans on the asset side compared with the first quarter of 2023 (the rate on loans remained stable between the fourth quarter of 2023 and the first quarter of 2024). Operating expenses came to -€382million, up +2.8% (excluding SRF), compared with the first quarter 2023 and mainly impacted by staff costs and the renegotiation of the national collective agreement. In the first quarter of 2024, there was no SRF contribution at CAItaly (compared with -€40 million in the first quarter of 2023). All in all, gross operating income increased by +15.0% compared to the first quarter of 2023.

The cost of risk amounted to -€61million in first quarter 2024, remaining stable compared with the first quarter of 2023, of which -€50million related to proven risk and -€7million in provisioning for performing loans. Cost of risk/outstandings60 stood at 55basis points, which was stable compared with the fourth quarter 2023. The Non Performing Loans ratio was stable compared to fourth quarter 2023 at 3.7% and the coverage ratio at 71.5% (+1.8 percentage points compared to fourth quarter 2023). The underlying net income Group share of CAItaly thus stood at €180million, up +12.6% compared to first quarter 2023.

CAItaly’s underlying RoNE (return on normalised equity) was 25.1% at 31 March 2024.

International Retail Banking results – excluding Italy

In the first quarter of 2024, revenues for International Retail Banking excluding Italy totalled €283million, up +35.8% (+39.0% at constant exchange rates) compared to the first quarter of 2023. The increase in revenues was strong in Egypt (+47.4% at current exchange rates and +76.3% at constant exchange rates), where interest rates were favourable and foreign exchange activities were exceptional (against the backdrop of the devaluation of the EGP). Revenues in Poland were up +37.4% in the first quarter of 2023 (+26.2% at constant exchange rates), boosted by a higher net interest margin. Operating expenses for International Retail Banking excluding Italy amounted to €123.6million, up +10.4% compared to the first quarter of 2023 (+7.7% at constant exchange rates). Gross operating income amounted to €159million, up +65.5% (+79.7% at constant exchange rates) compared to the first quarter of 2023. Cost of risk was -€21million, down -61.1% at constant exchange rate (as a reminder, in the first quarter of 2023, a prudent provision of €33million was made in Ukraine). Furthermore, at end-March 2024, the coverage ratio for loan outstandings remained high in Poland and Egypt, at 121% and 172% respectively. In Ukraine, the local coverage ratio remains prudent (316%). All in all, the contribution of International Retail Banking excluding Italy to net income Group share was €76.7million, x4.2 compared with the first quarter of 2023. The underlying RoNE (return on normalised equity) of Other IRB (excluding CAItaly) stood at 47.0% at 31 March 2024 vs 17,4% at 31 March 2023.

The entire Retail Banking business line contributed to 22% of the underlying net income Group share of CréditAgricoleS.A.’s core businesses. (excluding the Corporate Centre division) in the first quarter of 2024 and 29% of underlying revenues excluding the Corporate Centre.

At 31 March 2024, the capital allocated to this business line stood at €9.6billion and risk weighted assets stood at €97.8billion.

Corporate Centre results

The net income Group share of the Corporate Centre was -€107million in first quarter 2024, up +€198million compared with first quarter 2023. The negative contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€106.5million) and other items (-€0.5million).
The contribution of the “structural” component increased by +€274million from first quarter 2023 and can be broken down into three types of activity:

  • The activities and functions of the Corporate Centre of the CréditAgricoleS.A. Parent Company. The contribution amounted to -€295million in the first quarter of 2024, up +€91million, including the positive effect of ending the SRF contribution (+€71million).
  • The businesses that are not part of the business lines, such as CACIF (Private equity), CAImmobilier, CATE and BforBank (equity-accounted). Their contribution, at +€184million in the first quarter of 2024, was up +€180million compared to the first quarter of 2023, as it factored in the positive impact of +€202million from the revaluation of Banco BPM securities (set at €6.17 on 31/03/2024).
  • Group support functions. Their contribution amounted to +€4million this quarter (+€3million compared with first quarter 2023).

The contribution of “other items” was down -€76million compared to the first quarter of 2023 due to the negative impact resulting from the elimination of intra-group securities underwritten by Amundi.
The “internal margins” effect at the time of the consolidation of the insurance activity at the CréditAgricole level was accounted for through the Corporate Centre. Over the quarter, the impact of internal margins was -€205million in revenues and +€205million in expenses.

As at 31 March 2024, risk weighted assets were €28.2billion.

Financial strength

CréditAgricoleGroup

As at 31 March 2024, the phased-in Common Equity Tier 1 (CET1) ratio of CréditAgricoleGroup was 17.5%, unchanged from end-December 2023. Therefore, the CréditAgricoleGroup posted a substantial buffer of 7.8percentage points between the level of its CET1 ratio and the 9.7% SREP requirement. The fully loaded CET1 ratio is 17.4%.

During first quarter 2024:

  • The CET1 ratio benefited this quarter from an impact of +29basis points related to retained earnings.
  • Changes in risk weighted assets related to business line organic growth impacted the Group’s CET1 ratio by -28basis points (see below)
  • The methodology and regulatory effects are similar to those affecting CréditAgricoleS.A. and have an impact of -3bp on CET1 ratio, in particular the gradual end of IFRS9 transitional provisions (phasing out), which will have a negative impact of -9basis points in the first quarter of 2024. Phasing out is expected to end in 2025, with an impact of an additional -8basis points expected in 2025.
  • Unrealised gains and/or losses, M&A and others mainly include a -1 basis point impact from the acquisition of a minority stake in Worldline.

The phased-in Tier 1 ratio stood at 18.7% while the phased-in total ratio was 21.4% at end-March 2024.

The phased-in leverage ratio stood at 5.5%, remaining stable compared to end-December 2023, but well above the regulatory requirement of 3.5%.

Risk weighted assets for the CréditAgricoleGroup amounted to €618billion, up by +€8billion compared to 31 December 2023. The change can be broken down by business line as follows: Retail Banking -€0.5billion, Asset Gathering +€2.9billion, Specialised Financial Services +€1.8billion, LargeCustomers +€4.9billion and Corporate Centre -€1.1billion.

Maximum Distributable Amount (MDA and L-MDA) trigger thresholds

The transposition of Basel regulations into European law (CRD) introduced a restriction mechanism for distribution that applies to dividends, AT1 instruments and variable compensation. The Maximum Distributable Amount (MDA, the maximum sum a bank is allowed to allocate to distributions) principle aims to place limitations on distributions in the event the latter were to result in non-compliance with combined capital buffer requirements.

The distance to the MDA trigger is the lowest of the respective distances to the SREP requirements in CET1 capital, Tier 1 capital and total capital.

At 31 March 2024, CréditAgricoleGroup posted a buffer of 710basis points above the MDA trigger, i.e. €44billion in CET1 capital.

At 31 March 2024, CréditAgricoleS.A. posted a buffer of 328basis points above the MDA trigger, i.e. €13billion in CET1 capital.

Failure to comply with the leverage ratio buffer requirement would result in a restriction of distributions and the calculation of a maximum distributable amount (L-MDA).

At 31 March 2024, CréditAgricoleGroup posted a buffer of 197basis points above the L-MDA trigger, i.e. €42billion in Tier1 capital.

TLAC

CréditAgricoleGroup 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 CRD5 – a combined capital buffer requirement (including, for the CréditAgricoleGroup, a 2.5% capital conservation buffer, a 1% G-SIB buffer and the counter-cyclical buffer set at 0.75% for the CAGroup at 31 March 2024). Considering the combined capital buffer requirement, the CréditAgricoleGroup must adhere to a TLAC ratio of above 22.3%;
  • a TLAC ratio of above 6.75% of the Leverage Ratio Exposure (LRE).

The CréditAgricoleGroup’s 2025 target is to maintain a TLAC ratio greater than or equal to 26% of RWA excluding eligible senior preferred debt.

At 31 March 2024, CréditAgricoleGroup’s TLAC ratio stood at 27.3% of RWA and 8.0% of leverage ratio exposure, excluding eligible senior preferred debt61, which is well above the requirements. The TLAC ratio, expressed as a percentage of risk weighted assets, increased by 40basis points over the quarter, in line with the increase in equity and eligible items over the period. Expressed as a percentage of leverage exposure (LRE), the TLAC ratio was stable compared to December 2023.

The Group thus has a TLAC ratio excluding eligible senior preferred debt that is 500 bps higher, i.e. €31billion, than the current requirement of 22.3% of RWA.

At end-March 2024, €4.5billion equivalent had been issued in the market (senior non-preferred and Tier2 debt) as well as €1.25billion of AT1. The amount of CréditAgricoleGroup senior non-preferred securities taken into account in the calculation of the TLAC ratio was €30.9billion.

MREL

The required minimum levels are set by decisions of resolution authorities and then communicated to each institution, then revised periodically. Since 1 January 2024, the CréditAgricoleGroup has to meet a minimum total MREL requirement of:

  • 21.71% of RWA, plus – in accordance with EU directive CRD5 – a combined capital buffer requirement (including, for the CréditAgricoleGroup, a 2.5% capital conservation buffer, a 1% G-SIB buffer and the counter-cyclical buffer set at 0.75% for the CAGroup at 31 March 2024). Considering the combined capital buffer requirement, the CréditAgricoleGroup must adhere to a total MREL ratio of above 26.0%;
  • 6.13% of the LRE.

At 31 March 2024, CréditAgricoleGroup had a MREL ratio of 33.0% of RWA and 9.7% of leverage exposure, well above the total MREL requirement.

An additional subordination requirement to TLAC (“subordinated MREL”) is also determined by the resolution authorities and expressed as a percentage of RWA and LRE, in which senior debt instruments are excluded, similar to TLAC, which ratio is equivalent to the subordinated MREL for the CréditAgricoleGroup. At 31 March 2024, this subordinated MREL requirement for the CréditAgricoleGroup did not exceed the TLAC requirement: it amounted to 17.14% of RWA (plus a combined capital buffer requirement) and 6.13% of leverage ratio exposure.

The distance to the maximum distributable amount trigger related to MREL requirements (M-MDA) is the lowest of the respective distances to the MREL, subordinated MREL and TLAC requirements expressed in RWA.

At 31 March 2024, CréditAgricoleGroup had a buffer of 500basis points above the M-MDA trigger, taking into account the TLAC requirement applicable at 31 March 2024, i.e. €31billion of CET1 capital.

From 30 June 2024 at the latest, the Crédit Agricole Group expects to have to comply with the following MREL requirements:

  • Total MREL: 22.01% of RWA (to which is added the overall capital buffer requirement) and 6.25% of leverage exposure;
  • Subordinated MREL: 18.25% of RWA (to which is added the overall capital buffer requirement) and 6.25% of leverage exposure.

CréditAgricoleS.A.

At 31 March 2024, CréditAgricoleS.A.’s solvency ratio was higher than the Medium-Term Plan target, with a phased-in Common Equity Tier1 (CET1) ratio of 11.8%, stable compared to end-December 2023. CréditAgricoleS.A. therefore had a comfortable buffer of 3.3percentage points between the level of its CET1 ratio and the 8.6% SREP requirement. The fully loaded CET1 ratio was 11.8% as well.

During first quarter 2024:

  • The CET1 ratio benefited this quarter from a positive impact of +23 basis points linked to retained earnings. This impact corresponds to net income Group share net of AT1 coupons (impact of +45basis points) and of the distribution of 50% of earnings, i.e. a provision for dividends of 29 euro cents per share in first quarter 2024 (-22basis points).
  • Changes in risk-weighted assets related to business line organic growth impacted the CET1 ratio by -21basis points, mainly in the Insurance business line (-6basis points), with the other business lines contributing -15basis points.
  • Methodology and regulatory effects had a positive impact of +3basis points on the ratio this quarter. In particular, the phasing out of IFRS9 transitional provisions had an impact of -5basis points in the first quarter of 2024. Phasing out is expected to end in 2025, with an impact of an additional -5basis points expected in 2025.
  • Unrealised gains and/or losses, M&A and others mainly include a -1basis point impact from the acquisition of a minority stake in Worldline.

The phased-in leverage ratio was 3.9% at end-March 2024, up +0.1 percentage point from end-December 2023 and above the 3% requirement.

The phased-in Tier 1 ratio stood at 13.6% and the phased-in total ratio at 17.8% this quarter.

Risk weighted assets for CréditAgricoleS.A. amounted to €393billion at end-March 2024, up +€5.1billion compared to 31 December 2023. The change can be broken down by business line as follows:

  • Asset Gathering posted an increase of +€2.8billion, including €1.7billion in RWA for Insurance due to its income in the first quarter of 2024.
  • Specialised Financial Services was up +€1.6billion, driven by growth in consumer finance.
  • Large Customers recorded an increase in risk-weighted assets of +€4.7billion over the quarter, concentrated at CACEIS for a total of +€3.1billion, a portion of which is reversible over the coming quarters.
  • Retail Banking and Corporate Centre divisions posted a drop in risk-weighted assets of -€3.3billion and -€0.7billion respectively.

Liquidity and Funding

Liquidity is measured at CréditAgricoleGroup 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 CréditAgricoleGroup’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 €54billion at end-March 2024. Similarly, €143billion 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 €170billion at end-March 2024 – relate to derivatives, margin calls, adjustment/settlement/liaison accounts and to non-liquid securities held by corporate and investment banking 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 (€101billionat end-March 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 CaissedesDépôtsetConsignations and other refinancing transactions of the same type backed by customer loans, which accounting standards would classify as “Medium long-term market funds”, are reclassified as “Customer-related funds”.

Note that for Central Bank refinancing transactions, outstandings related to the T-LTRO (Targeted Longer-Term Refinancing Operations) are included in “Long-term market funds”. In fact, T-LTRO 3 transactions are similar to long-term secured refinancing transactions, identical from a liquidity risk standpoint to a secured issuance.

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 €1,718billion at 31 March 2024, the Group’s banking cash balance sheet shows a surplus of stable funding resources over stable application of funds of €186billion, down -€4billion compared with end December 2023 after repayment of TLTROs in March (€21billion).

Total TLTRO 3 outstandings for CréditAgricoleGroup amounted to €5.8billion62 at 31 March 2024, down
-€21billion62, which were repaid during the quarter. It should be noted, with regard to the position in stable resources, that internal management excludes the temporary surplus of stable resources provided by the increase in T-LTRO 3 outstandings in order to secure the Medium-Term Plan’s target of €110billion to €130billion, regardless of the repayment strategy.

Furthermore, given the excess liquidity, the Group remained in a short-term lending position at 31 March 2024 (central bank deposits exceeding the amount of short-term net debt).

Medium-to-long-term market resources were €262billion at 31 March 2024, down -€1billion compared to end-December 2023. Issuances of senior preferred and senior non-preferred debt offset the repayment of T-LTRO 3 in December 2023.

They included senior secured debt of €82billion, senior preferred debt of €122billion, senior non-preferred debt of €35billion and Tier2 securities amounting to €23billion.

The Group’s liquidity reserves, at market value and after haircuts, amounted to €476billion at 31 March 2024, up +€31billion compared with 31 December 2023.

They covered short-term net debt more than two times over (excluding the replacements with Central Banks).

The increase in liquidity reserves was mainly due to:

  • Collateral release following the TLTRO repayment for +€19billion
  • Increase in the HQLA securities portfolio, mainly at CACEIS and Regional Banks for +€8billion
  • The increase in Central Bank deposits for +€4billion, mainly linked to cash management at CréditAgricoleCIB and CAConsumerFinance

CréditAgricoleGroup also continued its efforts to maintain immediately available reserves (after recourse to ECB financing). Central bank eligible non-HQLA assets after haircuts amounted to €154billion.

Credit institutions are subject to a threshold for the LCR ratio, set at 100% on 1January 2018.

At 31 March 2024, the end of month LCR ratios were 141.7% for the CréditAgricoleGroup (representing a surplus of €92.7billion) and 146% for CréditAgricoleS.A. (representing a surplus of €88.9billion). They were higher than the Medium-Term Plan target (around 110%).

In addition, the NSFR of CréditAgricoleGroup and CréditAgricoleS.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.

In the first quarter of 2024, the Group’s main issuers raised the equivalent of €27.2billion63,64 in medium-to-long-term debt on the markets, 56% of which was issued by CréditAgricoleS.A. In particular, the following amounts are noted for the Group:

  • CréditAgricoleCIB issued €6.7billion in structured format;
  • CréditAgricoleConsumerFinance issued €0.9billion equivalent in EMTN issues through CréditAgricoleAutoBank (CAAB);
  • CAItaly issued two senior secured debt issues for a total of €1.5billion, of which €500million in green format
  • CréditAgricole next bank (Switzerland) issued two tranches in senior secured format for a total of 200million Swiss francs,of which 100million Swiss francs in green format

The Group’s medium-to-long-term financing can be broken down into the following categories:

  • €7.1billion in secured financing;
  • €11.8billion in plain-vanilla unsecured financing;
  • €6.7billion in structured financing;
  • €1.7billion in long-term institutional deposits and CDs.

In addition, €6.7billion was raised through off-market issuances, split as follows:

  • €5.2billion from banking networks (the Group’s retail banking or external networks);
  • €0.2billion from supranational organisations or financial institutions;
  • €1.3billion from national refinancing vehicles (including the credit institution CRH).

In the first quarter of 2024, CréditAgricoleS.A. raised the equivalent of €15.2billion on the market63,64 representing 58% of its 2024 refinancing programme:

The bank raised the equivalent of €15.2billion, of which €3billion in senior non-preferred debt and €1.5billion in Tier 2 debt, as well as €5.9billion in senior preferred debt and €4.8billion in senior secured debt at end-March. The financing comprised a variety of formats and currencies, including:

  • €2.8billion65;
  • 4.85billion US dollars (€4.45billion equivalent);
  • 0.6billion pounds sterling (€0.7billion equivalent);
  • 157billion Japanese yen (€0.97billion equivalent);
  • 0.4billion Swiss francs (€0.43billion equivalent);
  • 1.75billion Australian dollars (€1.1billion equivalent).

At end-March, CréditAgricoleS.A. had issued 73% of its funding plan in currencies other than the euro66,67.

In addition, on 2 January 2024, CréditAgricoleS.A. issued a PerpNC6 AT1 bond for €1.25billion at an initial rate of 6.5% and announced the repayment of AT1 (144A: US225313AD75 & RegS: USF22797RT78) at the 1st Call Date on 23/01/2024 for $1.75billion.

Since end-March, €2.6billion of additional funding has been raised, of which one senior secured issuance for €1.25billion, one Tier 2 debt issue for €1billion and one Panda Bond issuance in senior preferred format for €0.3billion equivalent. Hence, at end-April, the amount issued was €17.7billion, i.e. 68%68 of the 2024 funding plan.

Appendix 1 – Specific items, CréditAgricoleGroup and CréditAgricoleS.A.

Crédit Agricole Group – Specific items, Q1-2024 and Q1-2023

Q1-24 Q1-23
€m Gross
impact*
Impact on
Net income
Gross
impact*
Impact on
Net income
DVA (LC) 5 4 (8) (6)
Loan portfolio hedges (LC) 2 1 (24) (18)
Home Purchase Savings Plans (LCL) (0) (0) - -
Home Purchase Savings Plans (CC) 2 1 - -
Home Purchase Savings Plans (RB) 41 30 - -
Total impact on revenues 50 37 (32) (24)
ISB integration costs (LC) (20) (10) - -
Total impact on operating expenses (20) (10) - -
Provision for risk Ukraine (IRB) (20) (20) - -
Total impact on cost of credit risk (20) (20) - -
Degroof Petercam aquisition costs (AG) (8) (6) - -
Total impact on Net income on other assets (8) (6) - -
Total impact of specific items 2 1 (32) (24)
Asset gathering (8) (6) - -
French Retail banking 41 30 - -
International Retail banking (20) (20) - -
Specialised financial services - - - -
Large customers (12) (5) (32) (24)
Corporate centre 2 1 - -

* Impact before tax and before non-controlling interests

Crédit Agricole S.A. – Specific items Q1-2024 and Q1-2023

Q1-24 Q1-23
€m Gross
impact*
Impact on
Net income
Gross
impact*
Impact on
Net income
DVA (LC) 5 4 (8) (6)
Loan portfolio hedges (LC) 2 1 (24) (17)
Home Purchase Savings Plans (FRB) 2 1 - -
Home Purchase Savings Plans (CC) (0) (0) - -
Total impact on revenues 9 6 (32) (23)
ISB integration costs (LC) (20) (10) - -
Total impact on operating expenses (20) (10) - -
Provision for risk Ukraine (IRB) (20) (20) - -
Total impact on cost of credit risk (20) (20) - -
Degroof Petercam aquisition costs (AG) (8) (6) - -
Total impact Net income on other assets (8) (6) - -
Total impact of specific items (39) (30) (32) (23)
Asset gathering (8) (6) - -
French Retail banking 2 1 - -
International Retail banking (20) (20) - -
Specialised financial services - - - -
Large customers (12) (5) (32) (23)
Corporate centre (0) (0) - -

* Impact before tax and before non-controlling interests

Appendix 2 – CréditAgricoleGroup: results by business lines

CréditAgricole Group – Contribution by business line, Q1-2024 and Q1-2023

Q1-24 (stated)
€m RB LCL IRB AG SFS LC CC Total
Revenues 3,314 954 1,081 1,793 846 2,266 (728) 9,525
Operating expenses excl. SRF (2,484) (602) (524) (754) (454) (1,297) 527 (5,589)
SRF - - - - - - - -
Gross operating income 830 351 556 1,039 392 969 (201) 3,936
Cost of risk (247) (119) (84) (3) (219) 33 (13) (651)
Cost of legal risk - - - - - - - -
Equity-accounted entities 5 - - 29 30 4 - 68
Net income on other assets 2 2 (0) (8) (0) 0 (2) (7)
Income before tax 589 234 472 1,056 203 1,006 (216) 3,347
Tax (147) (53) (143) (220) (42) (235) 85 (755)
Net income from discont'd or held-for-sale ope. - - - - - - - -
Net income 442 181 330 837 161 772 (131) 2,592
Non controlling interests (0) (0) (51) (112) (19) (34) 7 (208)
Net income Group Share 442 181 279 725 142 738 (123) 2,384
Q1-23 (stated)
€m RB LCL AG IRB SFS LC CC Total
Revenues 3,333 936 1,745 989 672 2,051 (800) 8,927
Operating expenses excl. SRF (2,441) (599) (715) (501) (371) (1,121) 464 (5,284)
SRF (113) (50) (6) (40) (31) (314) (72) (626)
Gross operating income 779 287 1,024 449 270 616 (408) 3,018
Cost of risk (172) (66) (1) (115) (158) (36) 0 (548)
Cost of legal risk - - - - - - - -
Equity-accounted entities 7 - 22 0 74 4 0 108
Net income on other assets 1 (0) 0 0 (1) 5 (1) 4
Income before tax 616 221 1,045 334 184 589 (408) 2,581
Tax (196) (63) (231) (98) (34) (183) 94 (711)
Net income from discont'd or held-for-sale ope. - - - 2 0 - - 2
Net income 420 159 815 238 150 405 (315) 1,872
Non controlling interests 0 (0) (111) (40) (23) (19) (9) (204)
Net income Group Share 420 158 703 198 127 386 (324) 1,669

Appendix 3 – CréditAgricoleS.A.: Results by business line

Crédit Agricole S.A. – Contribution by business line, Q1-2024 et Q1-2023
Q1-24 (stated)
€m AG LC SFS FRB (LCL) IRB CC Total
Revenues 1,789 2,266 846 954 1,057 (107) 6,806
Operating expenses excl. SRF (754) (1,297) (454) (602) (505) (56) (3,669)
SRF - - - - - - -
Gross operating income 1,035 969 392 351 552 (163) 3,137
Cost of risk (3) 33 (219) (119) (82) (11) (400)
Equity-accounted entities 29 4 30 - - (20) 43
Net income on other assets (8) 0 (0) 2 (0) - (6)
Income before tax 1,053 1,006 203 234 470 (194) 2,773
Tax (220) (235) (42) (53) (142) 82 (610)
Net income from discontinued or held-for-sale operations - - - - - - -
Net income 834 772 161 181 328 (112) 2,163
Non controlling interests (117) (50) (19) (8) (71) 5 (259)
Net income Group Share 716 722 142 173 257 (107) 1,903
Q1-23 (stated)
€m AG LC SFS FRB (LCL) IRB CC Total
Revenues 1,746 2,051 672 936 969 (253) 6,121
Operating expenses excl. SRF (715) (1,121) (371) (599) (484) (39) (3,328)
SRF (6) (314) (31) (50) (40) (72) (513)
Gross operating income 1,024 616 270 287 445 (363) 2,280
Cost of risk (1) (36) (158) (66) (114) 1 (374)
Equity-accounted entities 22 4 74 - 0 (14) 86
Net income on other assets 0 5 (1) (0) 0 - 4
Income before tax 1,046 589 184 221 332 (376) 1,996
Tax (232) (183) (34) (63) (98) 88 (521)
Net income from discontinued or held-for-sale operations - - 0 - 2 - 2
Net income 814 406 150 159 236 (287) 1,476
Non controlling interests (115) (29) (23) (7) (58) (17) (250)
Net income Group Share 698 376 127 151 178 (305) 1,226

Appendix 4 – Data per share

Crédit Agricole S.A. – Earnings p/share, net book value p/share and RoTE

(€m) Q1-24 Q1-23
Net income Group share - stated 1,903 1,226
- Interests on AT1, including issuance costs, before tax (138) (141)
- Foreign exchange impact on reimbursed AT1 (247) -
NIGS attributable to ordinary shares - stated [A] 1,518 1,085
Average number shares in issue, excluding treasury shares (m) [B] 3,018 3,024
Net earnings per share - stated [A]/[B] 0.50 € 0.36 €
Underlying net income Group share (NIGS) 1,933 1,249
Underlying NIGS attributable to ordinary shares [C] 1,548 1,108
Net earnings per share - underlying [C]/[B] 0.51 € 0.37 €
(€m) 31/03/2024 31/03/2023
Shareholder's equity Group share 72,429 69,138
- AT1 issuances (7,184) (7,239)
- Unrealised gains and losses on OCI - Group share 1,021 1,237
- Payout assumption on annual results* (3,181) (3,175)
Net book value (NBV), not revaluated, attributable to ordin. sh. [D] 63,086 59,962
- Goodwill & intangibles** - Group share (17,280) (16,960)
Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. [E] 45,807 43,002
Total shares in issue, excluding treasury shares (period end, m) [F] 3,025.6 3,024.0
NBV per share , after deduction of dividend to pay (€) [D]/[F] 20.9 € 19.8 €
+ Dividend to pay (€) [H] 1.05 € 1.05 €
NBV per share , before deduction of dividend to pay (€) 21.9 € 20.9 €
TNBV per share, after deduction of dividend to pay (€) [G]=[E]/[F] 15.1 € 14.2 €
TNBV per sh., before deduct. of divid. to pay (€) [G]+[H] 16.2 € 15.3 €
* dividend proposed to the Board meeting to be paid
** including goodwill in the equity-accounted entities
(€m) Q1-24 Q1-23
Net income Group share - stated [K] 1,903 1,226
Impairment of intangible assets [L] 0 0
IFRIC [M] -110 -549
Stated NIGS annualised [N] = ([K]-[L]-[M])*4+[M] 7,944 6,553
Interests on AT1, including issuance costs, before tax, foreign exchange impact, annualised [O] -799 -564
Stated result adjusted [P] = [N]+[O] 7,145 5,989
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. - avg *** (3) [J] 44,671 42,306
Stated ROTE adjusted (%) = [P] / [J] 16.0% 14.2%
Underlying Net income Group share [Q] 1,933 1,249
Underlying NIGS annualised [R] = ([Q]-[M])*4+[M] 8,063 6,645
Underlying NIGS adjusted [S] = [R]+[O] 7,264 6,081
Underlying ROTE adjusted(%) (1) (2) = [S] / [J] 16.3% 14.4%
*** 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 31/03/2024, (line [E]), restated with an assumption of dividend for current exercise

Alternative Performance Indicators69

NBV Net Book Value (not revaluated)
The Net Book Value not revaluated corresponds to the shareholders’ equity Group share from which the amount of the AT1 issues, the unrealised gains and/or losses on OCI Group share and the pay-out assumption on annual results have been deducted.

NBV per share Net Book Value per share – NTBV Net Tangible Book Value per share
One of the methods for calculating the value of a share. This represents the Net Book Value divided by the number of shares in issue at end of period, excluding treasury shares.

Net Tangible Book Value per share represents the Net Book Value after deduction of intangible assets and goodwill, divided by the number of shares in issue at end of period, excluding treasury shares.

EPS Earnings per Share
This is the net income Group share, from which the AT1 coupon has been deducted, divided by the average number of shares in issue excluding treasury shares. It indicates the portion of profit attributable to each share (not the portion of earnings paid out to each shareholder, which is the dividend). It may decrease, assuming the net income Group share remains unchanged, if the number of shares increases.

Cost/income ratio
The cost/income ratio is calculated by dividing operating expenses by revenues, indicating the proportion of revenues needed to cover operating expenses.

Cost of risk/outstandings
Calculated by dividing the cost of credit risk (over four quarters on a rolling basis) by outstandings (over an average of the past four quarters, beginning of the period). It can also be calculated by dividing the annualised cost of credit risk for the quarter by outstandings at the beginning of the quarter. Similarly, the cost of risk for the period can be annualised and divided by the average outstandings at the beginning of the period.

Since the first quarter of 2019, the outstandings taken into account are the customer outstandings, before allocations to provisions.

The calculation method for the indicator is specified each time the indicator is used.

Doubtful loan
A doubtful loan is a loan in default. The debtor is considered to be in default when at least one of the following two conditions has been met:

  • a payment generally more than 90 days past due, unless specific circ*mstances 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 CréditAgricole 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 TotalLossAbsorbingCapacity (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 CréditAgricoleGroup. Agricole. The TLAC ratio requirement was transposed into European Union law via CRR2 and has been applicable since 27June 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 CréditAgricoleS.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 CréditAgricoleS.A. and CréditAgricoleGroup for first quarter 2024 comprises this presentation and the attached appendices and press release which are available on the website:

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 three-month period ending 31 March 2024 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with the applicable regulations in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

Note: the scopes of consolidation of the CréditAgricoleS.A. and CréditAgricoleGroups have not changed materially since the CréditAgricoleS.A. 2023 Universal Registration Document and its A.01 update (including all regulatory information about the CréditAgricoleGroup) filed with the AMF (the French Financial Markets Authority).

The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding.

Other information

CréditAgricoleS.A.’s Combined General Meeting will take place on 22 May 2024 in Orléans.

As announced at the time of the publication of CréditAgricoleS.A.’s 2023 results, the Board of Directors will propose to the General Meeting a cash dividend of €1.05 per share

  • 29 May: ex-dividend date
  • 30 May: Record date
  • 31 May: Dividend payment

Financial Agenda

22 May 2024General Meeting in Orléans
1 August 2024Publication of 2024 secondquarter and first half results
6 November 2024Publication of the 2024 third quarter and first nine months results

Contacts

CREDIT AGRICOLE PRESS CONTACTS

Alexandre Barat
Olivier Tassain
19
41
Mathilde Durand 43
Bénédicte Gouvert 64

CRÉDITAGRICOLES.A. INVESTOR RELATIONS CONTACTS

Institutional investors 31
Individual shareholders 777 (freephone number – France only) it-agricole.com
Cécile Mouton 79

Equity investor relations:

Jean-Yann Asseraf
Fethi Azzoug
81
75
Joséphine Brouard 33
Oriane Cante 07
Nicolas Ianna 51
Leila Mamou 93
Anna Pigoulevski 59
Credit investor and rating agency relations:
Rhita Alami Hassani 27
Gwenaëlle Lereste 84
Florence Quintin de Kercadio 32

See all our press releases at: -agricole.com -

Crédit_Agricole CréditAgricoleGroup créditagricole_sa

1 Home loan production in France: -36% in cumulative terms over January and February 2024 compared with the cumulative total over January and February 2023, according to Banque de France
2 CAAutoBank, automotive JVs and automotive activities of other entities
3 Low-carbon energy outstandings made up of renewable energy produced by the clients of all CréditAgricoleGroup entities, including nuclear energy outstandings for CACIB.
4 CACIB green asset portfolio, in line with the eligibility criteria of the Group Green Bond Framework published in November 2023.
5 Electric or hybrid
6 Reference year: 2020 (except Aviation, for which the reference year is 2019)
7 Initial oil and gas commitment of -30% by 2030 announced in 2022, revised to -75% in 2023
8 Scope: CréditAgricoleCIB and Unifergie (CréditAgricoleTransitions&Energies)
9 Gross of export credit hedges
10 See Appendixes for more details on specific items.
11 Scope effect of ISB in revenues of +€108million in the first quarter of 2024
12 Scope effect of CAAutoBank in revenues of +€183million in the first quarter of 2024
13 Scope effect of ISB in expenses of +€103million in the first quarter of 2024
14 Scope effect of CAAutoBank in expenses of +€70million in the first quarter of 2024
15 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
16 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

17 Number of customers with an active profile on the Ma Banque app or who had visited CAEL during the month/number of adult customers having an active demand deposit account
18 Signatures initiated in BAM deposit mode (multi-channel bank access), Mobile customer portal or “Ma Banque” app
19 Home loan production in France: -36% over Jan/Feb 2024 compared with Jan/Feb 2023 according to Banque de France
20 Credit rate on monthly achievements. Only maturity loans, in euros and at a fixed rate, are taken into account
21 SAS Rue La Boétie dividend paid annually in Q2
22 The SRF was -€113million in 2023
23 SAS Rue La Boétie dividend paid annually in Q2

24 Underlying, excluding specific items.
25 Scope effect of ISB in revenues: +€108million in the first quarter of 2024
26 Scope effect of CAAutoBank in revenues: +€183million in the first quarter of 2024
27 Scope effect in expenses in the first quarter of 2024: +€103million for ISB, +€70million for CAAutoBank

28 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.
29 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
30 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
31 See Appendixes for more details on specific items.
32 See Appendixes for details on the calculation of the RoTE (return on tangible equity)
33 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
34 Excluding assets under custody for institutional clients

35 Scope: property and casualty in France and abroad
36 Combined ratio of P&C (Pacifica) including discounting and excluding undiscounting, net of reinsurance: (claims + operating expenses + fee and commission income) to premium income; the ratio is calculated for the first quarter of 2024. The net combined ratio excluding the effect of discounting for the first quarter of 2024 is 96.2% (-0.1percentage point year-on-year).
37 +€6.5billion in Retail, +€5.6billion in Institutional, +€4.5billion in JV
38 +€8.7billion in Treasury excluding JV, +€3.4billion in MLT assets excluding JV,
39 Non binding
40 Excluding assets under custody for institutional clients
41 Amount of allocation of Contractual Service Margin (CSM) and Risk Adjustment (RA) including funeral guarantees
42 Amount of allocation of CSM and RA
43 Net of cost of reinsurance, excluding financial results
44 Base effect linked to the implementation of management decisions on investments in connection with the transition to IFRS17 on 1 January 2023, i.e. segregation of equity and derisking of the portfolio.
45 Indosuez Wealth Management scope
46 Refinitiv
47 Bloomberg
48 CAAutoBank, automotive JVs and auto activities of other entities
49 CA Auto Bank and automotive JVs
50 CAAutoBank scope effect Q1-24: Revenues €183m, expenses -€70m, cost of risk -€35m
51 The SFS division’s contribution to the SRF was €31million in the first quarter of 2023.
52 The SRF contribution of CACF came to -€16million in the first quarter of 2023
53 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
54 The SRF contribution of CAL&F came to -€15million in the first quarter of 2023
55 Net of POCI outstandings
56 Source: Bank of Italy: -16,5% of Feb./Feb. home loan production
57 Agos
58 SRF amounting to €50million
59 At 31 March 2024 this scope includes the entities CAItaly, CA Polska, CA Egypt and CA Ukraine.

60 Over a rolling four quarter period.
61 As part of its annual resolvability assessment, CréditAgricoleGroup 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.
62 Including CAAutoBank
63 Gross amount before buy-backs and amortisations
64 Excl. AT1 issuances
65 Excl. senior secured debt
66 Excl. senior secured debt
67 Excl. AT1 issuances
68 Excl. AT1 issuances
69 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.

Attachment

GlobeNewsWire - AGRICULTURAL CREDIT SA (XCA) CREDIT AGRICOLE SA: Q1-2024 Results : THE GROUP CONTINUES TO GROW (1)
GlobeNewsWire - AGRICULTURAL CREDIT SA (XCA) CREDIT AGRICOLE SA: Q1-2024 Results : THE GROUP CONTINUES TO GROW (2)

GlobeNewsWire - AGRICULTURAL CREDIT SA (XCA) CREDIT AGRICOLE SA: Q1-2024 Results : THE GROUP CONTINUES TO GROW (2024)

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