WORKING EVERY DAY IN THE INTEREST
OF OUR CUSTOMERS AND SOCIETY
RESULTS
of the second quarter and first half 2020
Disclaimer
The financial information on Crédit Agricole S.A. and Crédit Agricole Group for second quarter and first half 2020 comprises this presentation and the attached appendices and press release which are available on the website:https://www.credit-agricole.com/finance/finance/publications-financieres.
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 regulation 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.
The figures presented for the six-month period ending 30 June 2020 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with prudential regulations currently in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting" and has not been audited.
Note: the scopes of consolidation of the Crédit Agricole S.A. and Crédit Agricole Groups have not changed materially since the Crédit Agricole S.A. 2019 Universal Registration Document and its 2019 A.01 update (including all regulatory information about the Crédit Agricole Group) were filed with the AMF (the French Financial Markets Authority).
The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding.
Since 30 September 2019, Kas Bank has been included in the scope of consolidation of Crédit Agricole Group as a subsidiary of CACEIS. SoYou has also been included in the scope of consolidation as a joint-venture between Crédit Agricole Consumer Finance and Bankia. Historical data have not been restated on a proforma basis.
Since 23 December 2019, Caceis and Santander Securities Services (S3) have merged their operations. As of said date, Crédit Agricole S.A. and Santander respectively hold 69.5% and 30.5% of the capital of CACEIS.
On 30 June 2020, once all necessary regulatory approvals were secured, Amundi acquired the entire share capital of Sabadell Asset Management.
Since 30 June 2020, Menafinance has been wholly owned by Crédit Agricole Consumer Finance and is fully consolidated by Crédit Agricole S.A.
NOTE
The Crédit Agricole Group scope
of consolidation comprises:
the Regional Banks, the Local Banks, Crédit Agricole S.A. and their subsidiaries. This is the scope of consolidation that has been selected by the competent authorities to assess the Group's position, notably in the 2016 and 2018 stress test exercises.
Crédit Agricole S.A.
is the listed entity, which notably owns the subsidiaries of its business lines (Asset gathering, French retail banking,
International retail banking, Specialised financial services and Large Customers)
2 SECOND QUARTER AND FIRST HALF 2020 RESULTS
01 | General summary |
02
Contents
03
04
05
06
07
3 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP | |||||||
SUMMARY | ||||||||
Key figures | ||||||||
Crédit Agricole Group | Crédit Agricole S.A. | |||||||
NPL ratio | 2.4% | 16.1% | NPL ratio | 3.2% | 12.0% | |||
stable vs. 31/03 | Solvency | +0.1 pp vs. 31/03 | Solvency | |||||
Coverage | Coverage | |||||||
84.5% | (phased-in CET1) | +7.2pp | 73.4% | (phased-in CET1) | +4.1pp | |||
ratio | +0.2 pp vs. 31/03 | vs. SREP | ratio | +0.9 pp vs. 31/03 | vs. SREP | |||
€1,483m | €1,785m | €954m | €1,107m | |||||
Net income | -18.2% Q2/Q2 | Net income | -3.3% Q2/Q2 | Net income | -21.9% Q2/Q2 | Net income | -10.9% Q2/Q2 | |
Group share - | €2,391m | Group share - | €2,767m | Group share - | €1,592m | Group share - | €1,758m | |
stated | underlying | stated | underlying | |||||
-24.4% H1/H1 | -15.7% H1/H1 | -19.8% H1/H1 | -13.7% H1/H1 |
Earnings per share - underlying
NPL = Non performing loans
The data for the cost/income ratio (excluding SRF - Q2-20), RoTE (H1-20 annualised) and EPS are shown as underlying; see slide 49 for details of specific items EPS is calculated after deducting the AT1 coupons, which are entered in shareholders' equity; see slide 61
The RoNE of Crédit Agricole S.A. calculated with 11% of RWA is 9.5% for the H1-20 annualised after deducting the AT1 coupons
4 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
€0.36 | Net tangible | |||||||||
€13.2 | ||||||||||
-10.1% Q2/Q2 | asset value | +0.5€ vs. 31/12/2019 | ||||||||
per share | ||||||||||
€0.53 | ||||||||||
Underlying | ||||||||||
8.5% | ||||||||||
-15.5% H1/H1 | ROTE (%) | Annualised HY1-20 | ||||||||
CRÉDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
SUMMARY
A "V" shaped recovery for Crédit Agricole Group
Massive mobilisation of the 1st bank in France to support its customers
€28.7bn in State guaranteed loans, €4.2bn in extended maturities, €239m in support for professional policyholders; customer satisfaction up in Regional Banks, LCL and CA Italia
Strong recovery in the Group's activity in June
Solid results thanks to an increase in GOI over the first half of the year
Improvement of the cost/income ratio(1) by 1.2pt: stability of revenues(1) (+0.1% Q2/Q2) and good cost control(1) (-1.9% Q2/Q2, excluding SRF)
High GOI(1): €2.1bn in Q2-20-0.5% Q2/Q2; €3.7bn in H1-20 +2.9% H1/H1
One of the best levels of loan-loss reserves in Europe
NPL ratio: 2.4% CAG, 3.2% CASA, coverage ratio: 84.5% CAG, 73.4% CASA
Loan loss provisioning: €908m for CASA (x2.5 vs. Q2-19 and +46% vs. Q1-20);€1,208m CAG (x2.0); half / two-thirds of the increase due to an update in the parameters for the provisioning of performing loans
Very strong solvency | Liquidity reserves up |
CET1(3): 16.1% CAG, 12.0% CASA | €405bn of liquidity reserves at end June 2020, +€67bn vs. end March 2020 |
Switch activation, due to the tensions on equity and bond markets over the first half of the year
No CAG impact; positive impact of CASA classified as specific items: +€65m cost of risk, €44m net income
Any future increase in the equity-accounted value will benefit Regional Banks until the value returns to its pre-decline level
Crédit Agricole S.A. | Crédit Agricole S.A. |
57.4% | 8.5% |
Underlying cost/income | Underlying RoTE(1) |
ratio(1) Q2-20, excluding SRF | H1-20 annualised |
Crédit Agricole S.A. | Crédit Agricole S.A. |
3.2% 73.4% | 74bp |
NPL ratio Coverage ratio | Cost of risk on |
at 30/06/2020 | outstandings(2) |
Crédit Agricole S.A. | Crédit Agricole Group |
4.1pp | 7.2pp |
Buffer(4) above SREP | Buffer(4) above |
requirements | SREP requirements |
- Underlying data, cost/income ratio excluding Single Resolution Fund (SRF), see slide 49 for details of specific Crédit Agricole S.A. items
- Annualised cost of risk on H1-20 outstandings
- Except any mention, the CET1 ratio is phased-in
- deviation from SREP on pro-forma CET1 of the impact of State guaranteed loans
5 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE GROUP
SUMMARY
Largest bank in France, massively committed to support the economy
Mobilised in
the front lines
Close to our
most impacted
customers
Massive mobilisation of all of the employees at the service of the customers 90% of branches reachable, either in person or remotely
€28.7bn | State-guaranteed loans for 179,500 customers (professionals and corporates), i.e. |
23.7% of applications in France(1) (62% Regional Banks, 30% LCL and 8% CACIB)(2) | |
552,000 | Payment holidays granted, i.e. €4.2bn in deferred maturities(3) in Retail banking |
in France (83% to small businesses and corporates, of which 71% Regional | |
Banks and 29% LCL) | |
€239m | Mutualist support for customers insured against business interruption |
€2bn | Payment holidays and State guaranteed loans for CA Italia customers |
- Requests by Regional Banks, LCL and CACIB at 24/07/2020; 97.5% acceptance rate
- Breakdown of demands in numbers.
- Corresponding to a remaining capital share of €58.5bn, of which €39.9bn on corporates, SMEs and small businesses, and agriculture. Data at 17/07/2020.
6 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
SUMMARY
A crisis that reveals the full relevance of our Group Project
Customer Project
Digital and Human
- Increase in customer satisfaction(1)
+8
+7pts
vs. 2019+7pts vs. 2019
+2
Regional Banks | LCL |
- A continually enhanced digitalisation
- Electronic signature for SMEs and small businesses State guaranteed loans
- Dematerialisation of the claims submission process
- Automated processing of moratoria leasing files
- Contactless payment ceiling brought to €50
- 2020 individual customers' national Net Promoter Score: distinction between advocates and critics
7 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE GROUP
Human-centric Project
Empowered teamsSocietalfor customersProject
- Instant adaptation of the organisation to the lockdown context
- Exceptional delegations in branches
Societal Project
Commitment to society
Environment
- CACIB: No. 1 worldwide in social/green bonds
- Amundi (CPR AM): 1st international equity fund focused on reducing inequalities
- LCL: 1st complete range of asset investments in the fight against global warming
- Creation of a Group-levelnon-financial reporting platform
Inclusion
- 4,000 work-study students in 2020 (Top 2 Figaro/Cadremploi)
- Top 50 2020 award for feminisation of corporate decision-making bodies (+46 in 2020)
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
SUMMARY
Faster and stronger than expected rebound in France
60 | Monthly manufacturing PMI | ||
55 | |||
50 | |||
45 | |||
40 | |||
35 | |||
30 | |||
2018 | 2019 | 2020 | |
World | Euro zone | France | Italy |
Trends in card payments and withdrawals (RB+LCL)
Payments (€m) | Withdrawals (€m) | |||||||||||||||||||||||||||||||||
4,000 | 1,000 | |||||||||||||||||||||||||||||||||
Lockdown | ||||||||||||||||||||||||||||||||||
3,500 | 900 | |||||||||||||||||||||||||||||||||
3,000 | 800 | |||||||||||||||||||||||||||||||||
700 | ||||||||||||||||||||||||||||||||||
2,500 | 600 | |||||||||||||||||||||||||||||||||
2,000 | 500 | |||||||||||||||||||||||||||||||||
1,500 | 400 | |||||||||||||||||||||||||||||||||
Merchant payments | ||||||||||||||||||||||||||||||||||
1,000 | 300 | |||||||||||||||||||||||||||||||||
ATMs withdrawals | 200 | |||||||||||||||||||||||||||||||||
500 | ||||||||||||||||||||||||||||||||||
100 | ||||||||||||||||||||||||||||||||||
0 | 0 | |||||||||||||||||||||||||||||||||
30/12 | 06/01 | 13/01 | 20/01 | 27/01 | 03/02 | 10/02 | 17/02 | 24/02 | 02/03 | 09/03 | 16/03 | 23/03 | 30/03 | 06/04 | 13/04 | 20/04 | 27/04 | 04/05 | 11/05 | 18/05 | 25/05 | 01/06 | 08/06 | 15/06 | 22/06 | 29/06 | 06/07 | |||||||
Jan | Feb | Mar | Apr | May | Jun | Jul |
Rebound in household confidence and in business climate in France in June and July
Consumer confidence(1): near pre-crisis level (97 vs. 104 June/February)
Apple Mobility Indicator (all types)(2): > pre-crisis level June/February
Manufacturing PMI(3): > pre-crisis level (52.3 vs. 51.1 June/February)
Business climate(1): 85pts July (+7pts/June, +18pts June/May), optimism in all sectors: industry 83pts, services 89pts
Short-time working: decrease to 4.5m employees in June (vs. 8.8m April) Production capacity utilisation rate (4): 70% +7 pts June/May (vs. 78% pre- crisis). Strong rebound automotive/clothing-textile/rubber-plastics
Findings confirmed by the level of activity of the Group's networks, largest bank in France
Pre-crisis levels reached for property loan simulation in RB and LCL (98% vs Jan) and for consumer finance contracts (101% vs Jan)
Payments(5): from 25/05 to 29/06, €406m merchant payment terminal transactions/day (vs. €334m before and €240m during lockdown)
Demand deposit outstandings: sharpe increase in May (+5.4% vs April)(6), normalisation in June (+2.5% vs May), but still higher than the pre-crisis level
- Insee (2) Apple: mobility indicator for France (car, transit, pedestrian, bicycling) (3) IHS Markit (4) Monthly Bank of France Survey of 26/06 and 03/07 of 8,500 businesses (5)Scope: RB + LCL (6)Scope : RB
-
A V-shaped recovery in a still uncertain context (use of accumulated savings, evolution of the
health situation, agenda of the support measures)
8 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
SUMMARY
A "V" shaped recovery of the Group's activity thanks to the Universal Banking Model
Retail gross customer acquisition - Crédit
Agricole Group
+2.4% vs. June 2019
170,000 | 155,000 | 150,000 | ||||||||||
92,000 | 74,000 | |||||||||||
46,000 | ||||||||||||
Jan. 20 | Feb. 20 | Mar. 20 | Apr. 20 | May 20 | Jun. 20 |
Home loans simulations (Regional Banks and LCL) - | Number of savings accounts opened | |||||||||||||||||||
Consumer finance agreements | ||||||||||||||||||||
(Regional Banks) | ||||||||||||||||||||
370,360 | 393,157 | |||||||||||||||||||
141,165 | 327,173 | 139,273 | ||||||||||||||||||
Number of home | 132,088 | 241,701 | ||||||||||||||||||
417,074 | 422,117 | loans simulations | ||||||||||||||||||
327,409 | 304,272 | Number of consumer | 89,542 | 135,620 | ||||||||||||||||
260,658 | finance agreements | |||||||||||||||||||
90,320 | ||||||||||||||||||||
229,195 | 39,269 | 253,884 | ||||||||||||||||||
180,825 | 164,678 | 181,666 | 176,334 | 195,085 | ||||||||||||||||
152,159 | 21,999 | |||||||||||||||||||
107,644 | 68,895 | 96,246 | 68,321 | 96,351 | ||||||||||||||||
Jan. 20 | Feb. 20 | Mar. 20 | Apr. 20 | May 20 | Jun. 20 | |||||||||||||||
Jan. 20 | Feb. 20 | Mar. 20 | Apr. 20 | May 20 | Jun. 20 |
Off- balance- sheet
Balance- sheet
Crédit Agricole Assurances - Volume of new business in property and casualty insurance (in thousands)
228 | 220 | 220 |
135114
59
Jan. 20 | Feb. 20 | Mar. 20 | Apr. 20 | May 20 | Jun. 20 |
685,000 new retail banking customers in H1 2020 (480,000 customers in Regional Banks),
recovery of credit activities (outstandings excluding State guaranteed loans(1): +5.9% June/June)
9 | SECOND QUARTER AND FIRST HALF 2020 RESULTS | (1) Scope: Regional Banks - LCL - CA Italia, including SG loan Regional Banks/LCL: +8.7% | |
01 | 05 |
02 | Crédit Agricole S.A. - | 06 |
Summary |
Contents
0307
04
10 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
REVENUES
Increasing revenues Q2/Q2 and H1/H1
Q2/Q2 and H1/H1 change in underlying revenues(1), by business line
+0.1% | €6m | |
5,179 | +22 | 5,185 |
(138) |
(106) | +309 |
(80) | |
Q2-19 underlying Asset gathering Retail banking | SFS | Large customers Corporate centreQ2-20 underlying |
+2.4% €241m
10,322
+149
10,081
(127) | +426 |
(94) (114)
H1-19 underlying Asset gathering Retail banking | SFS | Large Customers Corporate centre H1-20 underlying |
Underlying: details of specific items on slide 49
CRÉDIT AGRICOLE S.A.
Exceptional half-year in LC, penalised by an unfavourable market effect in AG
Retail activities (RB and SFS) heavily penalised by the two months lockdown
Very good business momentum for Corporates and Institutions, generating high revenues in LC
CIB: exceptional business momentum in capital markets: +37.7% Q2/Q2 and +26.1% H1/H1 and a good level of activity in financing activities: +5.8% Q2/Q2 and +1.6% H1/H1
Asset servicing: +23.9% Q2/Q2 thanks to strong business momentum and scope effect
Market effect penalising AG half year revenues(-4.3% H1/H1)
Breakdown of underlying
revenues H1-20
11.7% | NIM | 77% | |
11.9% -0.6 pp | 35.8% | Fees | Part of recurring |
-1,1 pp | +35.8 | Other revenues | |
40.6% | Insurance | revenues Q2-20 in | |
+0.9 pp | total | ||
AG: Asset Gathering, including Insurance; RB: Retail banking; SFS: Specialised financial services; LC: Large customers; CC: Corporate Centre
- Recurring revenues: revenues related to outstandings (loans, savings, assets under management) or a policy (non-life insurance, death& disability); Transaction revenues: revenues related to fees, flows and market activities.
11 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | ||||||||
EXPENSES | ||||||||
Expenses down Q2/Q2 | ||||||||
Q2/Q2 and H1/H1 change in underlying costs excluding SRF(1), by business line | Decrease in cost-income ratio Q2/Q2 | |||||||
LC: increase due to a base effect in CIB (reversal of reserves for | ||||||||
-1.9% | €-57m | employee expenses in Q2-19) and a scope effect for AS | ||||||
Asset management: very good cost control (-7.3% Q2/Q2 and | ||||||||
3,033 | -4.6% H1/H1) thanks to variable compensation adjustments and | |||||||
(26) | (46) | +55 | 2,976 | Pioneer related cost synergies | ||||
(20) | Insurance: increase in headcount to support the development of the | |||||||
(20) | ||||||||
business line | ||||||||
GMP: decrease in HR costs | ||||||||
CA Italia: savings on external expenses and mobility | ||||||||
Q2-19 underlying | Asset gathering | Retail banking | SFS | Large customers | Corporate centre | Q2-20 underlying | SFS: -6.2% strict management of expenses in CACF | |
excl. SRF | excl. SRF | Covid impact: -€80m of avoided expenses and +€57m to | ||||||
safeguard employees | ||||||||
+0.5% | €33m | SRF costs: €79m in Q2-20 vs. €6m in Q2-19 / €439m in H1-20 | ||||||
+30.0% H1/H1 | ||||||||
6,136 | +117 | 6,170 | ||||||
(8) | ||||||||
(11) | (53) | |||||||
(11) | ||||||||
C/I ratio(1) | Jaws effect(1) | |||||||
Q2-20 | +2.0pt Q2/Q2 | |||||||
-1.2pt Q2/Q2 | ||||||||
+1.8pt H1/H1 | ||||||||
H1-19 underlying | Asset gathering | Retail banking | SFS | Large Customers | Corporate centre | H1-20 underlying | 57.4% | |
excl. SRF | excl. SRF | |||||||
(1) Underlying data, excluding SRF (Single Resolution Fund); Underlying: details of specific items on slide 49 | AG: Asset Gathering, including Insurance; RB: Retail banking; SFS: Specialised financial services; LC: Large customers; CC: Corporate | |||||||
Centre | ||||||||
12 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
RISKS
One of the lowest NPL ratios and highest coverage ratios in Europe
Crédit Agricole S.A. | Regional Banks | Crédit Agricole S.A.(1) | Regional Banks(1) |
NPL ratio: | 3.2% | 1.8% | ratio(1): | 73.4% | 99.7% |
NPL coverage | |||||
+0.1 pp / March 20 | Stable / March 20 | +0.9 pp / March 20 | -0.3 pp / March 20 | ||
Crédit Agricole Group | Crédit Agricole Group(1) | ||||
2.4% | 84.5% | ||||
Stable / March 20 | +0.2 pp / March 20 |
24% of loan loss reserves related to the provisioning of performing loans for CASA, 37% for the Regional Banks, 30% for CAG
A diversified loan book, skewed towards large corporates (46% CASA, 16% CAG) and home loans (27% CASA, 46% CAG) (see Appendix p. 40)
73% of large corporates EAD(2) for CASA rated as investment
grade (see Appendix p. 41)
Loans loss | Crédit Agricole S.A. | Regional banks |
reserves: | €10.1bn | €10.0bn |
Groupe Crédit Agricole
€20.1bn
- Including the full scale of reserves for performing loans due to COVID-19. Loan loss reserves, including collective provisions. Coverage ratios are calculated based on loans and receivables due from customers.
- EAD (Exposure At Default) is a regulatory definition used in pillar 3. It corresponds to the exposure in the event of default after risk mitigation factors. It encompasses balance sheet assets plus a proportion of off-balance sheet commitments
13 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
RISKS
Controlled Q2/Q2 increase in provisioning, half of which related to performing loans provisioning
Breakdown of cost of risk per Stage (in €m): S1&S2: provisioning of performing loans; S3: provisioning for proven risks
Crédit Agricole S.A. | Group Crédit Agricole | |||||||||||||||||||||||||||
x 2.5 | ||||||||||||||||||||||||||||
x 2.8 | 908 | x 2.0 | ||||||||||||||||||||||||||
621 | 236 | x 3.3 | 1,208 | |||||||||||||||||||||||||
314 | 358 | 335 | 340 | 223 | Others | 930 | 424 | Others | ||||||||||||||||||||
246 | S1&S2 CoR | 499 | 598 | 494 | ||||||||||||||||||||||||
29 | 223 | 218 | 225 | 398 | S1&S2 CoR | |||||||||||||||||||||||
0 | S3 CoR* | 421 | 398 | 31 | 384 | |||||||||||||||||||||||
28 | 29 | 323 | 281 | S3 CoR* | ||||||||||||||||||||||||
273 | 262 | 242 | 316 | 216 | 371 | 331 | 531 | 382 | 667 | Total CoR | 5 | |||||||||||||||||
372 | 382 | 371 | 505 | 294 | 588 | 420 | 602 | 516 | 785 | Total CoR | ||||||||||||||||||
-30 | -40 | -59 | -26 | -7 | -184 | |||||||||||||||||||||||
-64 | 0 | -33 | -87 | |||||||||||||||||||||||||
Q1-18 | Q2-18 | Q3-18 | Q4-18 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | |||||||||
Crédit Agricole S.A. | Cost of risk | Crédit Agricole Group | Cost of risk | |||||||||||||||||||||||||
x2.5 Q2/Q2 | x2.0 Q2/Q2 | |||||||||||||||||||||||||||
74 bp | (1, 2) | 45 bp (1, 2) | ||||||||||||||||||||||||||
48% increase related to | 70% increase related to | |||||||||||||||||||||||||||
CoR/outstandings | performing loans | CoR/outstandings | performing loans | |||||||||||||||||||||||||
annualised on the basis of H1 2020 | ||||||||||||||||||||||||||||
annualised on the basis of H1 2020 |
Underlying cost of risk
(1) Cost of risk on outstandings (in annualised basis points); Cost of risk on outstandings (in basis points over a rolling four-quarter period) at 55 bp for Crédit Agricole S.A., 33 bp for Crédit Agricole Group; Cost of risk on outstandings (in basis points over an annualised quarter) at 86 bp for Crédit Agricole S.A., 51 bp for Crédit Agricole Group; The CoR on outstandings is calculated on the basis of the cost of risk recorded over the annualised half-year, to which the average outstandings at the beginning of the period for the first and second quarters are added; (2) Since Q1-19, loans outstanding included in credit risk indicators are only loans to customers, before impairment. (*) Including non provisioning losses.
14 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
RISKS
High NPL coverage ratios in all of the Group's business lines
Cost of credit risk by stage and by business line (in €m) - Cost of credit risk/outstandings (in bp, annualised on the basis of H1-20)
Regional Banks | 307 | 299 | CA-Italia | ||||||||||||||||||||||||||||||||||
LCL | 117 | 146 | |||||||||||||||||||||||||||||||||||
238 | 101 | ||||||||||||||||||||||||||||||||||||
26 | 30 | ||||||||||||||||||||||||||||||||||||
29 | |||||||||||||||||||||||||||||||||||||
155 | 64 | ||||||||||||||||||||||||||||||||||||
176 | 51 | 58 | 40 | 82 | |||||||||||||||||||||||||||||||||
177 | 44 | 67 | 61 | 62 | 62 | ||||||||||||||||||||||||||||||||
1 | 24 | ||||||||||||||||||||||||||||||||||||
4 | 48 | 96 | 16 | 84 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
56 | |||||||||||||||||||||||||||||||||||||
78 | 217 | 89 | 70 | 134 | 118 | 28 | 46 | 61 | 86 | 55 | 65 | 59 | 57 | 64 | 57 | 115 | |||||||||||||||||||||
-2 | -22 | ||||||||||||||||||||||||||||||||||||
-26 | -1 | ||||||||||||||||||||||||||||||||||||
S3 CoR* | S1&S2 CoR | Others | Total CoR | S3 CoR* | S1&S2 CoR | Others | Total CoR | S3 CoR* | S1&S2 CoR | Others | Total CoR | ||||||||||||||||||||||||||
Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | ||||||||||||||||||||||||||
Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | ||||||||||||||||||||||||||||||||
| CoR: +16.3% Q2/Q1; CoR/outstandings: 33bp; | CoR: +77.5% Q2/Q1; CoR/outstandings: 102bp; | |||||||||||||||||||||||||||||||||||
CoR/outstandings: 23bp; | |||||||||||||||||||||||||||||||||||||
NPL ratio: 1.8%; coverage ratio: 99.7% | NPL ratio: 1.7%; coverage ratio: 78.1% | NPL ratio: 7.4%; coverage ratio: 62.9% | |||||||||||||||||||||||||||||||||||
CA-CF | 218 | ||||||||||||||||||||||||||||||||||||
Financing activities | 312 | ||||||||||||||||||||||||||||||||||||
19 | |||||||||||||||||||||||||||||||||||||
164 | |||||||||||||||||||||||||||||||||||||
58 | 90 | ||||||||||||||||||||||||||||||||||||
37 | |||||||||||||||||||||||||||||||||||||
121 | |||||||||||||||||||||||||||||||||||||
96 | 118 | 115 | 137 | ||||||||||||||||||||||||||||||||||
54 | |||||||||||||||||||||||||||||||||||||
39 | 40 | ||||||||||||||||||||||||||||||||||||
6 | 71 | 42 | 219 | 81 | 222 | ||||||||||||||||||||||||||||||||
-15 | -38 | -3 | |||||||||||||||||||||||||||||||||||
104 | 136 | 123 | 127 | 127 | 199 | -159 | |||||||||||||||||||||||||||||||
-9 | -19 | -3 | -8 | S3 CoR* | S1&S2 CoR | Others | Total CoR | ||||||||||||||||||||||||||||||
S3 CoR* | S1&S2 CoR | Others | Total CoR | ||||||||||||||||||||||||||||||||||
Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | ||||||||||||||||||||||||||
Underlying cost of risk
CoR: +32.8% Q2/Q1; CoR/outstandings: 211bp; | | CoR: x2.3 Q2/Q1; CoR/outstandings: 78bp; |
NPL ratio: 6.1%; coverage ratio: 92.8% | NPL ratio 2.2%; coverage ratio: 72.3% |
-
Including non provisioned losses; CoR on outstandings is calculated on the basis of the cost of risk recorded over the annualised half-year to which the average outstandings at the beginning of the period for the first and second quarters are added. Cost of credit risk/outstandings (in basis points over a rolling four-quarter period) at 15bp for the Regional Banks; 26bp for LCL, 79bp for CA Italia, 172bp for CA Consumer Finance, 50bp for Financing activities. Cost of credit risk/outstandings (in basis points over an annualised quarter) at 22bp for the Regional Banks; 35bp for LCL, 129bp for CA Italia, 241bp for CA Consumer Finance, 102bp for Financing activities.
Coverage ratios are calculated based on loans and receivables due from customers
15 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
NET INCOME
Solid results thanks to growth in GOI over the first half year
Q2/Q2 and H1/H1 change in underlying net income(1), by business line
CRÉDIT AGRICOLE S.A.
Q2/Q2: Resilient GOI (-0.5%) despite the lockdown
1,242 +55
-10.9%€-136m
(105)
(58) | (24) | 1,107 |
(3) | ||
AG: positive market effect, partially offsetting the negative effect in Q1-20
RB and SFS: businesses lines affected by the virtual shutdown of the European economies and increases in the cost of risk (x2.4 and +88.3% Q2/Q2)
LC: Strong growth in GOI (+26.7%), but a 4.9-fold increase in the cost of risk, after a low level in Q2-19
H1/H1: GOI up (+2.9%), cost of risk x2.6
Q2-19 underlying Asset gathering Retail banking | SFS | Large customers Corporate centre Q2-20 underlying |
-13.7%€-280m
2,038
(42)
(150)
(143) | 1,758 | |
(49) | +103 | |
Half of the increase in provisioning is related to provisioning of performing loans
Underlying GOI excl. SRF: +2.9% Q2/Q2, +5.3% H1/H1
Underlying net income, excl. SRF: -6.0% Q2/Q2, -8.5% H1/H1
H1-19 underlying Asset gathering Retail banking | SFS | Large Customers Corporate centre H1-20 underlying |
Underlying: details of specific items on slide 49
AG: Asset Gathering, including Insurance; RB: Retail banking; SFS: Specialised financial services; LC: Large customers; CC: Corporate Centre
- Net income including tax effect for CAA, Amundi and Corporate Center and non controlling interests forr Amundi and Corporate Center
16 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
01
02
Contents
03 | Crédit Agricole S.A. - |
Business lines |
04
05
06
07
17 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
ASSET GATHERING AND INSURANCE
Net Income Group Share up over the quarter
Activity indicators (Outstandings under management €bn)
+5.4%
1,964 | 1,998 | + 74.7 | 2,071 | ||
180 | 172 | -0.8 | -0.9 | -0.9 | 177 |
302 | |||||
297 | 299 | ||||
Net inflows | |||
1,487 | 1,527 | -€2.6bn | 1,592 |
June 19 | Mar. 20 | Asset management* | Life insurance | Wealth management Market & forex | June 20 |
effects | |||||
Asset management* | Life insurance | Wealth management | |||
Increase in assets under management (+4% June/March) and sustained activity
Asset management: a level of assets under management remaining high, €1,592bn at 30/06/2020, with strong inflows of MLT assets (+€3.5bn in Q2-2020)
Insurance: increase in the UL share of AuM (22.7%, +0.5pp June/June) and in the UL share of gross inflows (41.6%, i.e. +12.4pp Q2/Q2)
Wealth management: slight outflows over the quarter
Strong growth in results over the quarter
Insurance: results boosted by a positive market effect, recovery of the property-casualty business
Asset management: maintaining an excellent C/I ratio (53.5% excluding SRF in Q2-20)
Wealth management: outperformance compared to Q2-19 explained notably by taxes (lower average tax rate and a tax credit booked on a tax dispute)
Underlying: specific items include provisions on Home purchase savings plans (revenues) of -€11m in Q1-20 vs -€8m in Q1-19 - see slide 49. (1) Cost of risk relative to outstandings (annualised) *Including advised and distributed assets
18 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
underlyin | underlyin | underlyin | underlyin | ||
(in €m) | |||||
g | g | g | g | ||
Insurance | +20.6% | 590 | (2.5%) | ||
386 | |||||
Asset management | 146 | (10.3%) | 274 | (13.9%) | |
Wealth management | 19 | +42.7% | 44 | +62.9% | |
Net income Group Share | 551 | +11.0% | 907 | (4.4%) | |
INSURANCE
Business recovery in June, results up Q2/Q2
Activity indicators (€bn)
Savings/Retirement | Protection of assets and individuals | ||||||||||||||
3.3 | Net inflows (€bn) | Premium income (€bn) | |||||||||||||
-2.2% | |||||||||||||||
+1.5 | 2.4 | ||||||||||||||
+1.3 | 0.8 | ||||||||||||||
1.0 | |||||||||||||||
1.97 | 1.91 | 1.92 | |||||||||||||
+1.8 | +1.7 | ||||||||||||||
+1.1 | +1.0 | ||||||||||||||
+0.9 | Unit-linked | 0.97 | 0.89 | 0.96 | Property & Casualty | ||||||||||
(0.0) | |||||||||||||||
Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | |||||||||||
(1.0) | 0.99 | 1.02 | 0.96 | ||||||||||||
(1.8) | In Euros | Death & disability / | |||||||||||||
-0.9 | Q2-19 | Q4-19 | Q2-20 | Creditor / Group | |||||||||||
Savings/Retirement: lower inflows, but higher UL rate |
Negative net inflows, with a positive UL contribution (+€0.9bn) high UL rate in gross inflows at 41.6%, i.e. +12.4pp Q2/Q2
Outstandings(1): €302bn, +1.6% June/June, +1.2% March/June due to the increase in UL outstandings, UL share 22.7% (+0.5pp June/June)
PPE(2) stock: €11.5bn at end June 2020 (i.e., 5.5% of outstandings), allocation of €0.6bn over one year.
Property & Casualty: strong rebound in post-lockdown activities
New business: +94% increase in June compared to May 2020, returning to the strong level of June 2019
14.2m policies(3) in portfolio, steady increase (+3.1% over one year)
Equipment(4): 41.0% of Regional Bank customers (+1.0pp June/June), 25.2% LCL (+0.6pp) and 15.9% CA Italia (+1.3pp)
Personal insurance: premiums up -3.5% Q2/Q2
Results up this quarter due to the recovery in financial markets
Revenues: positive market effect in Q2 (+€140m), partially offsetting the negative market impact of Q1
Combined Property & Casualty Ratio(5) at 97.7% as at 30/06/2020
Solvency 2 Ratio as of 30/06/20 at 233%(6)
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying underlying underlying underlying | ||||
Revenues | +13.5% | 1,212 | (2.7%) | ||
701 | |||||
Operating expenses | (167) | +4.1% | (414) | +5.5% | |
Gross operating income | 534 | +16.8% | 798 | (6.6%) | |
Tax | (152) | +4.6% | (203) | (20.7%) | |
Net income Group Share | 386 | +20.6% | 590 | (2.5%) | |
Cost/Income ratio | 23.8% | -2.2 pp | 34.2% | +2.7 pp | |
excl.SRF (%) | |||||
Underlying: Specific items for the half year include i) the contribution to the State Solidarity Fund (-€39m in expenses, -€39m in net income), ii) the cost of the mutual support mechanism on the operating loss guarantee (-€135 m in revenues, -€92m in net income), iii) the extra- contractual measure in favour of vulnerable persons (-€8m in revenues, -€5m in net income),
- the impact of the triggering of the switch guarantee (+€65m in cost of risk, +€45m in net income).
- Savings/retirement/death & disability assets under management; (2) Policyholder Participation Reserve. Life Insurance (Predica + Spirica); (3) Scope: Property & Casualty France and international (4) Car, home, health, legal or personal accident insurance (5) Ratio of (claims + operating expenses + fee and commission income) / premium income, net of reinsurance, Pacifica scope; (6) Standard formula with no transitional measure, except for the grandfathering of subordinated debt
19 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
ASSET MANAGEMENT
Resilient activity and results maintained at a high level
Activity indicators (Assets under management €bn)
+7.1%
1,487 | 1,527 | + 3.1 | + 0.6 | + 64.9 | 1,592 | |||
443 | 448 | - 4.5 | 451 | |||||
Net inflows | ||||||||
487 | 463 | -€0.8bn | 503 | |||||
108 | 100 | 104 | ||||||
111 | 118 | |||||||
123 | 174 | 178 | ||||||
180 | ||||||||
232 | 238 | |||||||
146 | ||||||||
Jun.19 | Mar. 20 | Retail ex. JVs | JVs | Institutionals | Market/Forex | Jun. 20 | ||
effect | ||||||||
JVs Third-party distributors | International networks | French networks | Institutionals and Corporates | CA & SG insurers |
Resilient activity (-€0.8bn in inflows) and strong inflows MLT assets (+€3.5bn)
Retail net inflows (ex. JV) MLT: positive in the French networks (+€1.2bn) and stable internationally
Institutional & Corporate MLT: dynamic inflows (+€4.6bn) linked to the resumption of risk appetite of institutional and sovereign customers
JVs: good net inflows (+€3.1bn)
Partnership with Société Générale renewed for five years
High level of results and excellent C/I ratio level (53.5% excluding SRF as at Q2-20)
Revenues: lower net management fee and commission income (-7.2% Q2/Q2; market effect and product mix effect), good level of performance fees, increased financial results
Expenses substantially down: reduction in variable compensation and IT cost synergies related to Pioneer
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying underlying underlying underlying | ||||
Revenues | (7.5%) | 1,201 | (7.2%) | ||
607 | |||||
Operating expenses | (325) | (7.3%) | (659) | (4.6%) | |
excl.SRF | |||||
SRF | 0 | n.m. | (3) | (1.8%) | |
Gross operating income | 282 | (7.1%) | 538 | (10.3%) | |
Cost of risk | (4) | +68.8% | (17) | n.m. | |
Equity-accounted entities | 15 | +26.6% | 29 | +17.6% | |
Tax | (77) | +6.0% | (146) | (8.3%) | |
Net income | 216 | (10.1%) | 404 | (13.6%) | |
Non controlling interests | (70) | (9.7%) | (131) | (13.1%) | |
Net income Group Share | 146 | (10.3%) | 274 | (13.9%) | |
Cost/Income ratio | 53.5% | +0.1 pp | 54.9% | +1.5 pp | |
excl.SRF (%) | |||||
Underlying = stated
20 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
FRENCH RETAIL BANKING - LCL
Resilient activity and controlled costs
Activity indicators (€bn)
Loans outstanding | Customer savings | |||||||
+7.4% | ||||||||
199.5 | 202.9 | 206.4 | 202.6 | 214.3 | Off-B/S | |||
81.4 | 81.8 | 82.4 | 77.8 | 80.7 | ||||
On-B/S | ||||||||
118.1 | 121.2 | 124.0 | 124.8 | 133.6 | ||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 |
New business down over the quarter, rebound in June, outstandings up:
Decline in loan production (-21% Q2/Q2), rebound in June (+51% june/april 20)
Loans outstanding: +7% June/June excl. State guaranteed loans (SMEs and small businesses +11%, corporates +6%, consumer credit +2%, home loans +7%); €5.9bn of State guaranteed loans in place at end June
Inflows: Increase in on-balance sheet deposits (+13.6% June/June) driven by demand deposits (+28.2%) and passbook savings accounts (+4.9%); off-balance sheet savings stable (-1.2% June/June)
Resilience of GOI but moderate decline in net income due to the cost of risk (x2.3)
Revenues: lower NII (-4.0% Q2/Q2, valuation effects); lower fee and commission income (-3.0% Q2/Q2)
Operating expenses: (-5.1% Q2/Q2), down each yearsince 2017 (-2.7%(1) average per year); C/I ratio improving (-1pp Q2/Q2)
Increase in provisioning, in particular including €29m related to the provisioning of performing loans; NPL ratio at 1.7% and coverage ratio at 78.1% at end June 2020
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | ||
(in €m) | underlying underlying underlying underlying | |||||
Revenues | (3.6%) | 1,746 | (0.7%) | |||
857 | ||||||
Operating expenses | (544) | (5.1%) | (1,128) | (3.2%) | ||
.SRF | ||||||
(7) | x 6.3 | (42) | +32.4% | |||
operating income | 306 | (2.7%) | 575 | +2.6% | ||
of risk | (117) | x 2.3 | (218) | x 2.3 | ||
Income before tax | 189 | (28.5%) | 357 | (23.4%) | ||
Tax | (55) | (35.2%) | (115) | (26.7%) | ||
Net income Group Share | 128 | (25.3%) | 232 | (21.7%) | ||
Cost/Income ratio | 63.4% | -1.0 pp | 64.6% | -1.7 pp | ||
excl.SRF (%) | ||||||
(1) Operating expenses CAGR Q2 17/Q2 20
21 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
INTERNATIONAL RETAIL BANKING - ITALY lockdown
Loans outstanding | Customer savings | ||||||||||||
+4.9% | +5.4% | ||||||||||||
75.7 | 76.7 | 77.9 | 76.8 | 79.8 | Off- | ||||||||
balance | |||||||||||||
35.8 | 36.7 | 34.9 | 37.4 | sheet* | |||||||||
35.2 | On- | ||||||||||||
43.4 | 44.2 | 45.1 | balance | ||||||||||
43.0 | 43.3 | sheet | |||||||||||
40.6 | 40.9 | 41.2 | 41.8 | 42.4 | |||||||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 | |||||||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 | |||||||||
* |
of
Loans outstanding: +4.9% June/June, stronger-than-average growth in the sector (+1.4%(1)), mainly driven by loans to corporates (in particular the State guaranteed loans: €800m in Q2); Outstanding home loans were stable, with a sharp upturn in new home loans in June. (+26.9% June/April 2020)
Buoyant managed inflows (+5.4% Q2/Q2), rebound in production at the end of the quarter (+95.7% June/April 2020), on-balance sheet deposits (+4.6% June/June)
Revenues impacted by the crisis, but expenses under control; prudent provisioning
Revenues: NII impacted by the drop in market rates; fee and commission income returned to the level of January 20
Expenses excluding SRF down Q2/Q2(2) (3) in particular due to savings on external expenditure and mobility
Increase in provisioning, related to allocations on performing loans, significant strengthening of reserves for proven risks to prepare for disposals of non performing loans; improvement in the NPL ratio (7.4%, -0.3pp Q2/Q2)
Disposal of a building for a profit of €65m(4)
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | ||
(in €m) | underlying underlying underlying underlying | |||||
Revenues | (10.8%) | 875 | (6.4%) | |||
431 | ||||||
Operating expenses | (288) | (2.3%) | (567) | (2.1%) | ||
excl.SRF | ||||||
SRF | (9) | +35.2% | (25) | +14.2% | ||
Gross operating income | 133 | (26.5%) | 282 | (15.3%) | ||
Cost of risk | (146) | x 2.4 | (229) | +79.1% | ||
Net income on other | 65 | n.m. | 66 | n.m. | ||
assets | ||||||
Income before tax | 51 | (57.2%) | 120 | (41.9%) | ||
Tax | (17) | (56.4%) | (38) | (42.9%) | ||
Net income | 34 | (57.7%) | 82 | (41.4%) | ||
Non controlling interests | (10) | (57.0%) | (23) | (40.4%) | ||
Net income Group Share | 25 | (57.9%) | 59 | (41.8%) | ||
Cost/Income ratio | 67.0% | +5.8 pp | 64.8% | +2.9 pp | ||
excl.SRF (%) | ||||||
Crédit Agricole S.A. Group in Italy: Net income €257m, -25% H1/H1
(1) source Abi, (2) 5% decrease in expenses excluding SRF and Covid-related expenses, (3) net income H1-20 excluding Covid effects to €77m, (4) Gross amount, before tax
22 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A.
INTERNATIONAL RETAIL BANKING - EXCL. ITALY
Prudent management of liquidity and risk coverage
Activity indicators (€bn)
Customer savings | |||||||||||||
+5.7% | |||||||||||||
+2.5% | |||||||||||||
14.3 | 14.8 | 15.0 | 14.6 | 15.1 | |||||||||
2.2 | |||||||||||||
2.1 | 2.1 | 2.2 | 2.1 | Off-balance | |||||||||
sheet* | |||||||||||||
11.5 | 11.8 | 11.9 | 11.5 | 11.7 | 12.2 | 12.7 | 12.8 | 12.5 | 12.9 | On-balance | |||
sheet | |||||||||||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 | |||||||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 | |||||||||
* Excluding assets under custody
production
Loans(1): +4% Q2/Q2, increase in Egypt (+13%) and Morocco (+4%)
On-balancesheet deposits(1) +6% Q2/Q2, driven by increases in Ukraine (+12%), Morocco (+7%), and Poland (+2%)
Liquidity: comfortable position with a net surplus of deposits over loans: +€1.8bn at 30/06/2020
Contained reduction in GOI (-13% Q2/Q2) due to cost control
CA Egypt(1): Revenues down -13% Q2/Q2 impacted by the NII (-15%, effect of lower rates); low NPL ratio (2.6%) and high coverage ratio (169%)
CA Poland(1): Negative net income in H1-20, revenues penalised (-10%) by the decrease in reference rates, partially offset by a decrease in expenses (-10%); strengthening of provisions
CA Ukraine(1): Revenues (-11% Q2/Q2) impacted by the drop in the reference rate and lower fee and commission income (-30% Q2/Q2), improvement in the NPL ratio (4.4%, -1.3pp Q2/Q2); high coverage ratio (180%)
Crédit du Maroc(1): Revenues down slightly by -3%, cost control (+1%), coverage ratio at 96%
(1) change excluding foreign exchange impact
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying underlying underlying underlying | ||||
Revenues | (9.8%) | 435 | (4.6%) | ||
209 | |||||
Operating expenses | (130) | (7.7%) | (273) | (1.4%) | |
SRF | - | n.m. | - | n.m. | |
Gross operating income | 79 | (13.1%) | 162 | (9.4%) | |
Cost of risk | (52) | x 2.3 | (85) | +91.3% | |
Income before tax | 27 | (60.0%) | 77 | (42.3%) | |
Tax | 1 | n.m. | (18) | (40.5%) | |
Net income | 27 | (48.5%) | 58 | (43.4%) | |
Non controlling interests | (16) | +11.2% | (25) | (7.9%) | |
Net income Group Share | 12 | (70.3%) | 33 | (56.4%) | |
Cost/Income ratio | 62.1% | +1.5 pp | 62.7% | +2.0 pp | |
excl.SRF (%) | |||||
23 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A.
SPECIALISED FINANCIAL SERVICES
Decrease in production and control of expenses
Activity indicators (€bn)
CA Consumer Finance - Gross managed loans | CAL&F - Gross consolidated loans | |||||||||
-2.4% | +2.2% | |||||||||
90.5 | 92.0 | 88.4 | 15.1 | |||||||
Other | 14.8 | 15.1 | ||||||||
3.7 | 3.8 | 3.3 | ||||||||
19.3 | 20.1 | 19.7 | 2.8 | 2.9 | 2.8 | |||||
Crédit Agricole Group | Leasing international | |||||||||
33.3 | 33.2 | 31.1 | ||||||||
Car finance | 11.9 | 12.1 | 12.3 | |||||||
34.2 | 34.8 | 34.3 | partnerships | Leasing France | ||||||
Consolidated loan book | ||||||||||
Jun. 19 | Dec. 19 | Jun. 20* | Jun. 19 | Dec. 19 | Jun. 20 |
- 38.1% in France, 29.7% in Italy and 32.2% in other countries
Commercial production affected by the crisis, but almost back to normal in June
CA Consumer Finance: decline in commercial production (-40% Q2/Q2) but pick up in June: +170%/+€2.3bn June/April, GAC Sofinco: +97%/+€159m June/March
CAL&F: decline in new leasing production (-23.9% Q2/Q2, in France and Poland) but pick up in June (+90% June/April), contraction in year-on-year factored turnover (-24.6% Q2/Q2) but increase in June/April (+33%)
Decrease in revenues, strict management of expenses to keep C/I ratio under control
CA CF (Net income: -23.3%Q2/Q2): revenues down (-12% Q2/Q2) notably on insurance revenues (EUR -€18m); lower operating expenses (-7.1% excluding SRF Q2/Q2); higher cost of risk (+85.1% Q2/Q2), 37% of the increase of which is related to the provisioning for performing loans; tax bonus for Agos related to the Affrancamento (+€39m); lower contribution from JVs (-22.7%) due to an increase in the cost of risk at Wafasalaf (+€24m)
CAL&F (net income: -49.7%Q2/Q2): revenues down (-10.4% Q2/Q2) particularly in factoring production (-29%), decline in expenses (-2.9% excl. SRF Q2/Q2)
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying | underlying | underlying | underlying | |
Revenues | (11.7%) | 1,254 | (8.3%) | ||
607 | |||||
o/w CACF | 485 | (12.0%) | 1,003 | (8.1%) | |
o/w CAL&F | 122 | (10.4%) | 251 | (9.2%) | |
Operating expenses | (309) | (6.2%) | (661) | (1.6%) | |
excl.SRF | |||||
SRF | (0) | +38.4% | (20) | +7.9% | |
Gross operating income | 298 | (16.7%) | 573 | (15.5%) | |
Cost of risk | (248) | +88.7% | (438) | +83.4% | |
Equity-accounted entities | 60 | (22.7%) | 132 | (15.4%) | |
Income before tax | 128 | (57.9%) | 286 | (52.1%) | |
Tax | 47 | n.m. | 18 | n.m. | |
Net income Group Share | 149 | (27.9%) | 258 | (35.7%) | |
o/w CACF | 131 | (23.3%) | 228 | (31.5%) | |
o/w CAL&F | 18 | (49.7%) | 30 | (55.8%) | |
Cost/Income ratio | 50.9% | +3.0 pp | 52.7% | +3.6 pp | |
excl.SRF (%) | |||||
24 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
LARGE CUSTOMERS
GOI sharply up thanks to sustained activity
Activity indicators (Underlying revenues of Large Customers (€m))
+20.9% | 1,788 | ||||
1,479 | 288 | ||||
1,423 | |||||
91 | |||||
233 | |||||
260 | |||||
88 | |||||
68 | |||||
Asset servicing | 689 | ||||
479 | 505 | ||||
Investment banking | |||||
Mkts | |||||
Capital markets | 346 | 311 | |||
277 | |||||
Structured finance | |||||
Fin | 408 | ||||
Commercial banking & other | 334 | 311 | |||
Q2-19 | Q4-19 | Q2-20 |
Dynamic activity for the entire business line
Corporate and investment banking: capital markets up sharply (+44% Q2/Q2), customers supported in their hedging needs, excellent activity in bond issuance. Good level of activity in financing activities (+6% Q2/Q2) thanks to the excellent activity of commercial banking
Asset Servicing: increase in assets under custody resulting from the addition of new customers offsetting a negative
market impact (+€173bn/+6%), and from the consolidation of KAS Bank and S3 (+€826bn/+29%)
GOI up sharply (+27% Q2/Q2), positive jaws effect (+13.9pp excl. SRF Q2/Q2)
Corporate and investment banking (Net income: -4% Q2/Q2): significant increase in revenues and GOI (+27% Q2/Q2);
cost/income ratio under control (49% excl. SRF H1-20)
Asset Servicing (Net income Group share: -16%Q2/Q2): increase in revenues (+24% Q2/Q2); positive jaws effect (+3.9pp excluding SRF); increase in Net income (before non-controlling interests) - +24%
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying underlying underlying underlying | ||||
Revenues | +20.9% | 3,271 | +15.0% | ||
1,788 | |||||
Operating expenses | (852) | +7.0% | (1,732) | +7.2% | |
excl.SRF | |||||
SRF | (60) | n.m. | (260) | +46.7% | |
Gross operating income | 875 | +26.7% | 1,279 | +21.6% | |
Cost of risk | (342) | x 4.9 | (501) | x 8.4 | |
Income before tax | 536 | (13.6%) | 782 | (21.4%) | |
Tax | (74) | (50.8%) | (97) | (66.3%) | |
Net income | 462 | (1.6%) | 685 | (3.0%) | |
Net income Group Share | 436 | (5.3%) | 644 | (7.0%) | |
o/w Corporate & | 400 | (4.2%) | 585 | (7.4%) | |
Investment Banking | |||||
o/w Asset servicing | 37 | (15.7%) | 59 | (3.3%) | |
Cost/Income ratio excl. | 47.7% | -6.2 pp | 53.0% | -3.8 pp | |
SRF (%) | |||||
25 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CORPORATE AND INVESTMENT BANKING
Very strong activity and top-ranking positions, RWA under control
Activity indicators (Bond origination - Activity volume in €bn)
x2
34
28
1719
10
Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 |
Very strong activity thanks to the continued support provided to our customers
Financing activities: good overall level of activity due to our ability to mobilise a range of financing solutions for our customers (underwriting, club deal and bilateral loan), syndicated loans-EMEA: ranked second at end June 2020 with 7.6% market share (vs 6.9% at end June 2019)
Capital markets: excellent FICC activity (+44% incl. CVA), record in bond issuance, top-ranking positions (No. 1 in All French Corporate bonds, No. 1 in Global Green, Social and Sustainability bonds); risk profile continues to be prudent (VaR at €14m as of 30/06)
Dynamic GOI (+27%) but increase in provisioning in financing activities
Strong revenues (+20% Q2/Q2) and cost control (+3% excl. SRF), increased provisioning in financing activities with a base effect, 47% of this increase related to performing loans provisioning
RWA under control (-€0.4bn Q2/Q1) thanks to optimisation measures and the decrease of RCTB(1) (-€4bn); net impact of downgraded ratings: +€1.9bn
CRÉDIT AGRICOLE S.A.
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 | |
(in €m) | underlying underlying underlying underlying | ||||
Revenues | +20.3% | 2,702 | +12.9% | ||
1,500 | |||||
Operating expenses | (645) | +3.4% | (1,313) | +3.1% | |
excl.SRF | |||||
SRF | (53) | n.m. | (232) | +43.6% | |
Gross operating income | 802 | +27.1% | 1,157 | +20.6% | |
Cost of risk | (339) | x 5 | (496) | x 9.4 | |
Equity-accounted entities | 1 | n.m. | 1 | n.m. | |
Net income on other | (0) | n.m. | (0) | n.m. | |
assets | |||||
Income before tax | 464 | (17.4%) | 662 | (27.1%) | |
Tax | (56) | (58.6%) | (66) | (75.1%) | |
Net income | 408 | (4.2%) | 597 | (7.5%) | |
Non controlling interests | (8) | (5.6%) | (12) | (10.9%) | |
Net income Group Share | 400 | (4.2%) | 585 | (7.4%) | |
Cost/Income ratio excl. | 43.0% | -7.1 pp | 48.6% | -4.6 pp | |
SRF (%) | |||||
(1) Counterparty risk on trading book |
26 SECOND QUARTER AND FIRST HALF 2020 RESULTS
CORPORATE CENTRE
Decrease in financing costs, but unfavorable market effect
Activity indicators (€bn)
Q2-18 | Q3-18 | Q4-18 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | Q1-20 | Q2-20 | |
139 | 111 | ||||||||
38 | |||||||||
22 | 36 | 5 | |||||||
(234) | (228) | (203) | (229) | (240) | (135) | ||||
(292) | (156) | ||||||||
(95) | |||||||||
(130) | |||||||||
(272) | (39) | |||
(14) | (191) | (181) | ||
(205) | (194) | |||
(207) | (217) | |||
(15) | ||||
(287) |
Structural net income excl. IFRIC21 | IFRIC21 | Other elements | Underlying net income | ||
"Structural" net income: significant improvement of the Q2/Q2 (+€74m) and H1/H1 (+€54m) contribution
Crédit Agricole S.A. balance sheet & holding: decrease in financing costs and in operating expenses (HR expenses and travel costs)
Other business lines of the division: decrease in net income, due to negative impacts of revaluations in CACIF Support functions: temporary delay in the accounting of profits and costs
Other elements of the division:
Impact of the rebound in markets on intragroup transactions (unfavorable effect Q2/Q2: -€77m)
Underlying: specific items include provisions on Home purchase savings plans (revenues) of -€16m in Q2-20 vs -€46m in Q2-19 and the impact of a Liability management transaction for -€41m - see slide 49
CRÉDIT AGRICOLE S.A.
€m | Q2-20 | Q2-19 | ∆ Q2/Q2 | H1-20 | H1-19 | ∆ H1/H1 |
Revenues | (266) | (85) | (181) | (167) | (256) | +90 |
Operating expenses excl. | (187) | (207) | +20 | (385) | (384) | (2) |
SRF | ||||||
SRF | (2) | (3) | +1 | (86) | (81) | (5) |
Gross operating income | (456) | (296) | (160) | (638) | (721) | +83 |
Cost of risk | (1) | (15) | +14 | (37) | (13) | (24) |
Equity-accounted | 10 | 19 | (9) | 13 | 13 | (1) |
entities | ||||||
Net income on other | (0) | 0 | - | (0) | 19 | (20) |
assets | ||||||
Pre-tax income | (447) | (292) | (155) | (662) | (702) | +39 |
Tax | 185 | 94 | +91 | 224 | 205 | +19 |
Net income Group share | (233) | (201) | (32) | (444) | (496) | +52 |
stated | ||||||
Net income Group share | (194) | (191) | (3) | (375) | (478) | +103 |
underlying | ||||||
Of which structural net | (156) | (229) | +74 | (447) | (502) | +54 |
income | ||||||
- Balance sheet & holding | (139) | (260) | +121 | (433) | (542) | +109 |
Crédit Agricole S.A. | ||||||
- Other activities (CACIF, | (26) | 15 | (41) | (28) | 26 | (54) |
CA Immobilier, etc.) | ||||||
- Support functions (CAPS, | 10 | 16 | (6) | 14 | 14 | (1) |
CAGIP, SCI) | ||||||
Of which other elements | (39) | 38 | (77) | 73 | 24 | +49 |
of the division | ||||||
27 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
01
02
Contents
03
04
05
06
07
Crédit Agricole Group
28 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
REGIONAL BANKS
Dynamic activity, sharp increase in GOI and Net income Group Share
Activity indicators (€bn)
Customer savings | Loans outstanding | ||||||
+6.7% | 761 | +8.4% | 543 | ||||
712 | 733 | 501 | 520 | ||||
271 | 265 | 174 | 179 | 195 | SMEs-Small | ||
266 | |||||||
21 | 22 | 21 | business.-Farm.- | ||||
Local auth. | |||||||
Off-balance sheet | |||||||
Consumer credit | |||||||
446 | 461 | 496 | Deposits | 306 | 320 | 327,8 | |
Home loans | |||||||
Jun. 19 | Dec. 19 | Jun. 20 | |||||
Jun. 19 | Dec. 19 | Jun. 20 | |||||
Growth in outstandings still dynamic. Customer capture very active.
Loans: increase new in loans (+32.6% Q2/Q2, -14.8% excl. State guaranteed loans), clear rebound in activity in June: production in June 2020 higher than production in June 2019 (+36% o/w home loans: +7%, excl. State guaranteed loans: +3%), increase in outstanding loans excl. State guaranteed loans: +5.9%
Deposits: increase in on-balance sheet deposits (demand deposits +25.2%, passbook accounts +8.7%), stable off- balance sheet deposits (-0.5% Q2/Q2)
Customer capture: 480,000 new customers in 2020 with sharp acceleration in June (+110,000 customers +1.9% June/June), strong growth in customer base (+27,000 customers in 2020, +6.7% June/June)
Revenues up and expenses under control. Positive jaws effect (+10.1pp excl. SRF Q2/Q2)
Revenues (+1.2% Q2/Q2): net interest income steady (Q2/Q2), fee and commission income down (-2.3%) due to a moderation of penalty-based fees and a decrease in payment fees and commissions, portfolio revenues down due to adverse market effects since Q2-19 but up compared to Q1-20
Net income Group Share(1) up (+17.9%) despite an increase in provisioning (+24.9% Q2/Q2) NPL ratio down (1.8% vs 2.0% at end June 2019), coverage ratio still high (99.7%)
CRÉDIT AGRICOLE GROUP
Contribution to earnings | Q2-20 | ∆ Q2/Q2 | H1-20 | ∆ H1/H1 |
(in €m) | underlying underlying underlying underlying | |||
Revenues | 3,316 | +1.2% | 6,550 | (3.2%) |
Operating expenses | (2,023) | (8.9%) | (4,276) | (3.1%) |
excl.SRF | ||||
SRF | (29) | n.m. | (123) | +38.8% |
Gross operating income | 1,264 | +19.6% | 2,152 | (5.0%) |
Cost of risk | (298) | +24.9% | (605) | x 2.1 |
Income before tax | 959 | +17.5% | 1,543 | (21.7%) |
Tax | (295) | +16.4% | (558) | (25.0%) |
Net income Group Share | 663 | +17.9% | 984 | (19.8%) |
Cost/Income ratio | 61.0% | -6.8 pp | 65.3% | +0.1 pp |
excl.SRF (%) | ||||
(1) Contribution of Regional Banks to Crédit Agricole Group Net income Group Share
29 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
01 | 05 |
0206
Contents
0307
04
Financial strength
30 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE S.A.
FINANCIAL STRENGTH
Phased-in CET1 ratio: 12.0%, +4.1 pp above SREP requirement
Change in Crédit Agricole S.A. risk weighted assets (€bn)
Change in CET1 ratio (bp)
Risk weighted assets stable over the quarter
Growth in business lines: neutral, increase in RB (+€2.8bn), mainly at LCL related to the introduction of State guaranteed loans, decrease at SFS (-€2.1bn)
Increase in insurance equity-accounted value: +€2.1bn (OCI reserves and
quarterly profit)
Methodology and regulatory effects: mainly SME supporting factor for
-€2.6bn and -€1.5bn at CACIB
June/March change in RWA, pro-forma of 2 months of waiting period in State guaranteed loans: -€2.3bn
CET1 ratio: 12.0%, fully-loaded 11.7%
Retained net income: +12bp, including a dividend provision of €0.16 per share in Q2, i.e. €0.24 for H1-20
OCI reserves on securities portfolios: variation of +19 bp, mainly due to the tightening of credit spreads over the quarter; inventory at 30/06/2020: 37bp
Methodology and regulatory effects: mainly "Quick fix" measures +41bp, o/w phasing-in IFRS 9 (+25bp), SME supporting factor (+9bp), prudent valuation (+7bp); software-related measure not applicable at 30/06/2020
M&A and other: -16bp, o/w acquisition of Sabadell AM (-9bp)
CET1 pro forma of State guaranteed loans 2 months' waiting period at 12.0%
Distance to SREP: +4.1pp (+0.6pp vs Q1 2020)
Phased-inTier 1 ratio: 13.5%; phased-in total ratio: 17.6%
Phased-inleverage ratio: 3.9% stable vs. end March 20 Intra-quarteraverage phased-inleverage ratio(1): 3.8% in Q2-20
(1) Intra-quarter leverage refers to the average of the end of month exposures for the first two months of the quarter
31 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE GROUP
FINANCIAL STRENGTH
Phased-in CET1 ratio 16.1% achieving today the objective of the 2022 Group Project
Change in Crédit Agricole Group risk-weighted assets (€bn)
Change in CET1 ratio (bp)
Slight increase in risk-weighted assets | Distance to SREP: +7.2pp (+0.6pp vs Q1 2020) | ||
Increase in insurance equity-accounted value: +€1.9bn (OCI reserves and | Phased-inTier 1 ratio: 17.0%; phased-in total ratio: 19.7% | ||
quarterly profit) | Phased-inleverage ratio: stable at 5.3% vs. end March 20 | ||
Growth in risk-weighted assets in Retail banking: €2.6bn, o/w €1.4bn at LCL | Intra-quarter average phased-in leverage ratio(1): 5.2% in Q2-20 | ||
and €1.7bn in the Regional Banks (+€7.6bn in organic growth, o/w €7.4bn | |||
TLAC ratio: 23.8% of risk weighted assets and 7.5% of leverage | |||
State guaranteed loans, partially offset by the SME supporting factor -€6bn) | |||
CET1 ratio: 16.1% (+0.6pp vs Q1-20), 15.8% fully-loaded | exposure, excluding eligible senior preferred debt | ||
Ratio higher than regulatory requirements(2) by 4.3pp in risk weighted assets and | |||
Retained net income: +20bp, including a dividend per share provision of 0.24€ | |||
1.5pp in leverage, excluding eligible senior preferred debt | |||
in Q2-20 | |||
MREL ratio: approximately 32% of risk weighted assets and 23.8% excluding | |||
Methodology and regulatory effects: mainly Quick fix (+55bp), o/w phasing-in of | |||
IFRS 9 (+27bp) and SME supporting factor (+24bp) | eligible senior preferred debt, i.e. 8.2% of TLOF | ||
RWA growth: -21bp, largely due to the introduction of State guaranteed loans in | Objective to achieve a subordinated MREL ratio (excluding eligible senior | ||
Retail banking | |||
preferred debt) of 24-25% of risk-weighted assets by the end of 2022 | |||
CET1 phased-in at 16.3% pro-forma of State guaranteed loans 2 months' waiting | |||
At 30/06: ratio > 8% of TLOF | |||
period | |||
(1) The intra-quarter leverage refers to the average of the end-of-month exposures of the first two months of said quarter | (2) The Crédit Agricole Group must meet the following TLAC requirements at all times: 16% of the RWA plus the total buffer requirement | ||
32 | SECOND QUARTER AND FIRST HALF 2020 RESULTS | according to CRDV (including 2.5% for capital conservation buffer, 1% for systemic risk buffer and 0.01% for countercyclical buffer at 30 | |
June 2020); and 6% of leverage exposure | |||
FINANCIAL STRENGTH
Dynamic management of reserves in order to
serve client and benefit from competitive funding rate
Liquidity reserves (€bn)
CRÉDIT AGRICOLE GROUP
Very strong ability to mobilize collateral to create
405 | ||
338 | 64 | |
298 | 23 | |
55 | 19 | |
48 | 21 | |
18 | 119 | |
22 | ||
14 | ||
110 | ||
108 | ||
180 | ||
134 | ||
106 |
Eligible claims to Central Banks after haircut (immediate access) (1)
Self-securitisations eligible to Central Banks (1)
Other non-HQLA securities (2)
HQLA (High Quality Liquid Assets) securities portfolio (2)
Central Bank deposits
(excl. cash (€4bn) & mandatory reserves (€9bn))
additional reserves
Before net drawing at Central Banks, pre-positioned reserves increased by more than €80bn over the quarter
€87bn of assets eligible to Central Banks, providing access to additional LCR compliant resources
Increase of asset encumbrance ratio in line with Central Banks drawings (21% at end March)
Evolution of the balance sheet structure
31/12/2019 | 31/03/2020 | 30/06/2020 | |
(1) | Providing access to LCR compliant resources | +€67bn | |
(2) | Available market securities, at market value | and after haircut |
liquidity reserves Q2-20/Q1-20
Liquidity reserves up to €405bn, + €67bn compared to 31/03/20
Quarterly LCR up at 155.5 % for Credit Agricole Group and 151.5 % for Credit Agricole S.A.
Increase in Central Banks drawings:
In June 2020, drawing of €90bn in TLTRO III
Meanwhile, repayments of TLTRO II (partially) and LTRO
Increase in Central Banks deposits resulting from the placement of large excess liquidity
Stable Resources Position up at €241bn from €132bn at end March
33 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
FINANCIAL STRENGTH
96% of MLT market programme completed by Crédit Agricole S.A. at end-July 2020
Crédit Agricole Group - MLT market issues
Breakdown by issuer : €21.8bn* at 30/06/20
EFL 1% CALF 1%
CACF 12%
CACIB 29% | Crédit Agricole S.A. |
52% |
CA Italia 6%
Crédit Agricole Group (at end-June)
€21.8bn equivalent issued on the market by Group issuers
Highly diversified market funding mix by types of instruments, investor categories and targeted geographic areas
In addition, €3.3bn borrowed from national and supranational organisations or placed in the Group's retail banking networks (Regional Banks, LCL and CA Italia) and other external retail networks
Crédit Agricole Assurances: €1bn 10 year bullet Tier 2 issued in July to refinance intra-group subordinated debt
CRÉDIT AGRICOLE GROUP
Crédit Agricole S.A. - MLT market issues Breakdown by segment : €11.5bn* at 31/07/20
Subordinated | ||||
Tier 2 | ||||
19% | Senior secured | |||
35% | Senior preferred (€0.1bn) | €4.1bn | ||
& senior secured (€4.0bn) | ||||
Average maturity: 6.5 years | ||||
Spread vs 3m Euribor: 33bp | ||||
Senior non-preferred (€5.2bn) | €7.4bn | |||
& Tier 2 (€2.2bn) | ||||
Average maturity: 7.3 years | ||||
Senior preferred | Spread vs 3m Euribor: 130bp | |||
Senior non- | 1% | |||
preferred | ||||
45% |
Crédit Agricole S.A. (at end July)
€11.5bn of MLT market funding programme of €12bn completed - such funding programme includes 6 to €8bn eq. of senior non-preferred and Tier 2 debt (revised up from the initial 5 to €6bn guidance) ; diversified funding with various formats and currencies
Liability Management on EUR/GBP/USD senior preferred notes: €3.4bn eq. repurchased to optimize the liability structure and to offer liquidity to investors
* Gross amount before buy back and amortisation
34 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
01 | 05 |
0206
Contents
0307
04
Conclusion
35 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
CONCLUSION
A "V" shaped recovery for Crédit Agricole Group
Very solid results, thanks to the Group's universal banking model
Massive commitment of the 1st Bank in France to support its customers
Strong momentum in activity across all our business lines at the end of the quarter
Growth in GOI over the first half year, robust financial position, one of the best levels of loan loss reserves in Europe
Crédit Agricole S.A. | Crédit Agricole S.A. | Crédit Agricole Group | Crédit Agricole Group | ||
Crédit Agricole S.A. | |||||
57.4% | Solvency | Crédit Agricole Group | |||
8.5% | 16.1% | €405bn | |||
C/I ratio | |||||
ROTE | Crédit Agricole S.A. | Liquidity | |||
Q2-20 | |||||
Underlying ROTE H1 | Underlying cost/in ome | ||||
ratio(1) excl. SRF | Solvency | reserves | |||
Underlying cost/income | ratio | (1) | excl. SRF | ||
2020 annualised | |||||
12.0% |
Crédit Agricole Group | Crédit Agricole Group |
€28.7bn | 552,000 |
Crédit Agricole Group | |
in State | repayment |
holidays granted | |
guaranteed loans | |
Crédit Agricole Group
+685,000
new customers
in H1-20
36 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
01 | 05 |
0206
Contents
0307
04
Appendices
37 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
APPENDICES
Market recovery, without a return to the pre-crisis level
Interest rates, in euros (%)
1.9 | Avg. French 10y bond yield Q2-20:-0,007% (+7bp Q2/Q1) | |||
(% ) | Average spread Q2-20: | |||
1.6 | ||||
1.4 | France: 44bp (+11bp Q2/Q1), | |||
1.2 | Italy: 207bp (+40bp Q2/Q1) | Average spread July > January | ||
1.0 | ||||
(France 118%/Italy 108%) | ||||
0.8 | ||||
0.5 | ||||
0.3
0.1 -0.1-0.4-0.6-0.8
12.1603.17 06.17 09.17 12.1703.1806.18 09.18 12.1803.1906.19 09.19 12.1903.2006.20
France 10y | Germany 10y | Euribor 3m | ||
Equity indexes (base 100 = 31/12/2016)
115
105
95CAC 40 July < January
85(approx. -18%)
Avg. Stoxx: -9,8% Q2/Q1, -10,3% Q2/Q2,
75 Avg. CAC40: -14,6% Q2/Q1; -15% Q2/Q2
65 12.16 03.17 06.17 09.17 12.17 03.18 06.18 09.18 12.18 03.19 06.19 09.19 12.19 03.20
CAC40 | Stoxx | Quarterly Avg. CAC40 |
Credit spreads (1-year iTraxx Main CDS index)
140 | |||||||||||||
130 | |||||||||||||
120 | |||||||||||||
110 | |||||||||||||
100 | |||||||||||||
90 | |||||||||||||
80 | |||||||||||||
70 | |||||||||||||
60 | |||||||||||||
50 | |||||||||||||
40 | |||||||||||||
06.19 | 07.19 | 08.19 | 09.19 | 10.19 | 11.19 | 12.19 | 01.20 | 02.20 | 03.20 | 04.20 | 05.20 | 06.20 | 07.20 |
Currencies (rate for €1)
1.5 | 150 | |||||||||||||||||
1.4 | 140 | |||||||||||||||||
1.3 | 130 | |||||||||||||||||
120 | ||||||||||||||||||
1.2 | ||||||||||||||||||
EUR vs. USD Q2-20: | 110 | |||||||||||||||||
1.1 | ||||||||||||||||||
100 | ||||||||||||||||||
1.0 | Average -2% Q2/Q2, | |||||||||||||||||
End of period -1.2% juin/juin | 90 | |||||||||||||||||
0.9 | ||||||||||||||||||
80 | ||||||||||||||||||
0.8 | ||||||||||||||||||
70 | ||||||||||||||||||
0.7 | 60 | |||||||||||||||||
12.1603.1706.1709.1712.1703.1806.1809.1812.1803.1906.1909.1912.1903.2006.20 | ||||||||||||||||||
EUR/USD (lhs) | EUR/GBP (lhs) | EUR/JPY (rhs) | ||||||||||||||||
38 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
APPENDICES
A more prudent central economic scenario than what business data indicates
France, Italy, Eurozone - Real GDP growth
% | 7.5 | |||||
4.9 | 5.5 | |||||
1.8 | 1.9 | 1.5 | 1.2 | |||
0.7 | 0.3 | |||||
-8.1 | ||||||
-10.2 | -10.4 | |||||
France | Italy | Euro zone | ||||
2018 | 2019 | 2020 | 2021 |
Source: Eurostat, Crédit Agricole S.A./ECO | estimations at 30 June 2020 |
For provisioning of performing loans, use of several weighted economic scenarios of which:
A more favourable scenario : France GDP -7% in 2020, +7.3% in 2021, +1.8% in 2022
A less favourable scenario : France GDP -15.1% in 2020, +6.6% in 2021, +8% in 2022
France, Italy, Eurozone - Unemployment rate
% of labour force
13
11 | |||
9 | |||
7 | |||
2018 | 2019 | 2020 | 2021 |
France | Italy | Euro zone | |
Source: Eurostat, Crédit Agricole S.A./ECO | |||
39 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
APPENDICES
A diversified loan book, oriented more towards large corporates and home loans
Gross customer loans outstanding(1) at Crédit Agricole S.A. (30/06/20)
CRÉDIT AGRICOLE S.A.
Private | ||
Leasing | Banking | Other |
4% | 1% | |
5% | ||
Professionnals | ||
7% |
Corporate loans
€195bn
Home loans
€113bn
• O/w €141bn CACIB, €29bn LCL, €19bn IRB | |
• | O/w €84bn LCL: mostly fixed-rate, |
amortisable, secured or mortgage-secured | |
loans | |
• | O/w €29bn at the IRBs |
Consumer
Finances
10%
Crédit Agricole S.A.
€423bn(1)
Corporates 46%
Consumer
finance
€43bn
Loans to
professionals
• | O/w €36bn CA Consumer Finance (incl. |
Agos) and €8bn retail networks, excl. non- | |
consolidated entities (automobile JVs) | |
• | O/w €19bn LCL and €9bn at the IRBs |
Real Estates 27%
1 Gross customer loans outstanding excl. credit institutions
€28bn
40 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
APPENDICES
A limited share of EAD exposed to sectors sensitive to the economic effects of Covid-19
EAD excluding financial institutions(1) as of June 2020
Automotive | Shipping | Oil & Gas | |
Retail distribution (non food) | 2% | 2% | 2% |
1% | |||
Tourism / Hotel /
Restaurants
1%
Aviation
2%
972 bn € EAD(1)
Oil & Gas EAD presented excl. commodity traders Asset quality is based on internal ratings
(1) EAD excluding financial institutions. Total obtained based on Corporate EAD at 30/06/2020, and EAD at 30/03/2020 on other segments forecast at end June 2020 based on growth between Q2 and Q1 recognised on accounting exposures, EAD (exposure at default) is a regulatory definition used in Pillar 3. It corresponds to the exposure in the event of default after risk mitigation factors. It encompasses balance sheet assets plus a proportion of off-balance sheet commitments (2) Source: Financial Stability Review (May 2020): ://www.ecb.europa.eu/pub/financial-stability/fsr/html/ecb.fsr202005~1b75555f66.en.html#toc9
CRÉDIT AGRICOLE S.A.
June-20 | EAD | % Investment | % default EAD | |
€Bn | Grade | |||
Aeronautics | 17.2 | 57.5% | 2.4% | |
Tourism / Hotel / Restaurants | 7.9 | 50.9% | 2.6% | |
Retail distribution (non food) | 13.7 | 75.1% | 3.2% | |
Automotive | 23.3 | 74.4% | 0.6% | |
Shipping | 14.6 | 56.8% | 6.6% | |
Oil & Gas | 24.0 | 73.2% | 1.8% |
The investment grade portion of Corporate EAD was 73% at June 2020
- Aviation/Aerospace and Tourism/Hospitality/Restaurant sectors: likely to be affected in the MLT by the crisis(2)
- Other sensitive sectors: impact more temporary or limited (2)
- Retail distribution (non-food items): recovery in consumption observed in June in France, except for (i) sales related to tourism flows (travel retail, Paris department stores, luxury
goods) and (ii) clothing/shoes (no catch-up effect)
- Automotive: car production expected to stabilise in Q3 2020
- Shipping: recovery of the BDI dry bulk sea freight index, a sign
that trading is continuing to pick up
- Oil & Gas: gradual rebalancing of the market (after an all-time low of €16 in April, Brent returned to around €40 in June)
41 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
ANNEXES
Crédit Agricole CIB:
Oil & Gas
25.2 bn€ EAD(1) on Oil & Gas excluding commodity traders as of May 2020
EAD is gross of Export Credit Agency and Credit Risk Insurance covers : as of 31/05/2020, there were 3.5 bn€ export credit agencies covers and 0.6 bn€ credit risk insurance covers on the Oil & Gas portfolio
CRÉDIT AGRICOLE S.A.
Oil & Gas EAD excl. Commodity Traders: 25.2 Bn€
Midstream | Upstream | |
(pipelines, | ||
12% | ||
LNG, | O&G | |
storage) | Services | |
21% | 5% |
Integrated | |
Oil & Gas | |
companies | |
20% | |
State | |
Owned Oil | Downstream |
& Gas | |
& Refining | |
companies | |
13% | |
29% | |
70% of Oil & Gas EAD(1)(2) are Investment Grade(3)
Diversified exposure in terms of operators, activity type, commitments and geographies
84% of Oil & Gas EAD(1)(2) in segments with limited sensitivity to oil prices
17% of EAD(1)(2) in Exploration & Production and Oil services segments, more directly sensitive to oil prices First-ranking collateral on the vast majority of counterparties in the Exploration & Production segment
Oil & Gas EAD excl Commodity Traders
Watched list Defaulted
3% 2%
Sub-
investment
grade 23%
Investment
Grade
70%
Oil & Gas gross exposure net of ECA by geography
- CA CIB perimeter . EAD (Exposure At Default) is a regulatory definition used in pillar 3. It corresponds to the exposure in the event of default after risk mitigation factors. It encompasses balance sheet assets plus a proportion of off-balance sheet commitments.
- Excluding commodity traders (3) Internal rating equivalent.
To be mentioned, the gap between slide 41 and slide 42 exposure on oil & gas is due foreign exchange effect (as of May 2020 versus as of June 2020)
Gulf countries | Other | South Korea | ||
3% China | 3% | 2% | ||
3% | ||||
Africa | ||||
4% | ||||
Other Asia | ||||
4% | India | United States | ||
4% | 24% | |||
Mexico | ||||
4% | United Kingdom | |||
Brazil | ||||
15% | ||||
5% | ||||
Saudi Arabia | ||||
5% | ||||
Russia | Other Western | |||
6% | France | |||
Europe | CA CIB perimeter | |||
6% | 12% | |||
42 | RESULTATS DU DEUXIEME TRIMESTRE ET DU PREMIER SEMESTRE 2020 |
ANNEXES
Crédit Agricole CIB:
Aeronautics and Shipping
16.8 bn€ EAD(1) on aeronautics as of May 2020
EAD is gross of Export Credit Agency and Credit Risk Insurance covers : as of 31/05/2020, there were
1.4 bn€ export credit agencies covers on the aeronautics portfolio
59% of aviation EAD(1) are Investment Grade(2)
Diversified exposure in terms of operators, activity type, commitments and geographies
A portfolio, essentially secured and composed of major players, mainly focused on Manufacturers/ Suppliers and Air transportation. The share of asset based financing represents 46% of the exposure as of May 2020
The portfolio is secured by new generation of aircraft with an average age of the fleet relatively young (4,4 years)
14,0 bn€ EAD(1) on Shipping as of June 2020
EAD is gross of Export Credit Agency (3.3 Bn€ as of 30/06/2020, of which 83% applied on ship cruises financing) and Credit Risk Insurance covers (1.1 Bn€ as of 30/06/2020)
56 % of Shipping EAD are Investment Grade(2)
After a decrease in exposures from 2011, shipping portfolio has remained stable since 2018
81.4 % of the exposure is on ship financing, thus secured 77 % of the ships we finance are less than 10 years old
- CA CIB perimeter . EAD (Exposure At Default) is a regulatory definition used in pillar 3. It corresponds to the exposure in the event of default after risk mitigation factors. It encompasses balance sheet assets plus a proportion of off-balance sheet commitments.
- Internal rating equivalent
CRÉDIT AGRICOLE S.A.
Aeronautics exposure by geography
Other Europe | Japan | |
Latin America | 3% | 2% |
3%
Middle East &
Africa
10%
France | Other Western |
Europe | |
11% | |
37% | |
Asia (excl. | |
Japan) | |
16% | North America |
19% |
Shipping by geography
Monaco | Sweden | |||
1% | Belgium | 1% | ||
1% | ||||
Japan | It | |||
2% | ||||
Other | Unites | |||
South Korea | ||||
2% | States of | |||
Qatar | America | |||
15% | ||||
Netherlands 2% | ||||
Greece | ||||
3% | ||||
Singapore | 12% | |||
3% | ||||
China | Switzerland | |||
3% | ||||
Canada | 11% | |||
4% | ||||
United Arab | Hong-Kong | |||
7% | ||||
Emirates | ||||
Norway | ||||
4%Denmark | ||||
5% | ||||
4% | ||||
Germany | ||||
France | ||||
5% | ||||
5% | ||||
CA CIB perimeter
43 | RESULTATS DU DEUXIEME TRIMESTRE ET DU PREMIER SEMESTRE 2020 |
ANNEXES
A well-balanced corporate portfolio
Credit Agricole S.A. : €326bn corporate EAD at 30/06/2020
CRÉDIT AGRICOLE S.A.
NON BANKING FINANCIAL ACTIVITIES (32 Bn)
ENERGY (EXCL. OIL & GAS) (25 Bn)
OIL & GAS (24 Bn)
AUTOMOTIVE (23 Bn)
REAL ESTATE (22 Bn)
HEAVY INDUSTRY (19 Bn)
AIR/SPACE (17 Bn)
RETAIL / CONSUMER GOODS INDUSTRIES (16 Bn)
AGRICULTURE AND FOOD PROCESSING (15 Bn)
OTHER (15 Bn)
SHIPPING (15 Bn)
OTHER TRANSPORTS (12 Bn)
TELECOM (12 Bn)
INSURANCE (10 Bn)
MISCALLENEOUS (10 Bn)
BTP (10 Bn)
IT / TECHNOLOGY (9 Bn)
HEALTHCARE / PHARMACEUTICALS (9 Bn)
OTHER INDUSTRIES (9 Bn)
TOURISM / HOTELS / RESTAURANT (8 Bn)
COMMODITY TRADERS (5 Bn)
MEDIA / PUBLISHING (3 Bn)
WOOD / PAPER / PACKAGING (2 Bn)
UTILITIES (2 Bn)
NON TRADING SERVICES / LOCAL AUTHORITIES (0 Bn)
BANKS (0 Bn)
1.5% 0.9% 0.8% 0.7% 0.2% 0.1%
9.8% 7.6% 7.4% 7.1% 6.8% 5.9% 5.3% 5.0% 4.6% 4.6% 4.5% 3.8% 3.7% 3.2% 3.1% 2.9% 2.8% 2.7% 2.7% 2.4%
% des EAD Corporate
% of Corporate EAD
Africa | Other |
5% | 3% |
Europe (Excl. | |
America and | France) |
Asia | 34% |
29% | |
France | |
29% |
- 73% of Corporate exposures are Investment Grade(1)
-
SME exposure stands
at 22 bn€ as of 30/06/2020 - LBO exposure(2) stands
at €4 bn as of 30/06/2020
(1)internal rating (2) CACIB perimeter
44 | RESULTATS DU DEUXIEME TRIMESTRE ET DU PREMIER SEMESTRE 2020 |
CRÉDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
APPENDICES
Financial impact of the activation of the Switch guarantee mechanism
Activation in Q2-2020 related to the drop in the equity- accounted value of insurance (-€147m) against a backdrop of adverse changes in market parameters:
- Decline in the CAC40 (-17.4% in H1-2020), which led to a reduction in reserves of €507m in the first half
Crédit Agricole
Group
Income statement
No impact from the activation
of the Switch guarantee
- Tension in spreads, which led to a reduction in reserves of more than €100m
Crédit
Agricole S.A.
Regional Banks
(at 100%)
Impact on the Crédit Agricole S.A. CET1 ratio not material
Cost of risk (AG): +€65m
Net income: +€44m
Cost of risk: -€65m
Net income: -€44m
Clawback provision: any increase in the overall equity-accounted value will benefit the Regional Banks until the equity-accounted value has returned to its pre-decline value if the guarantee is not terminated in the meantime.
45 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
APPENDICES
Reminder of how the Switch guarantee mechanism works
The Switch guarantee transfers to the Regional Banks the regulatory prudential requirements related to Crédit Agricole S.A.'s equity interest in Crédit Agricole Assurances (CAA), thus attesting to the free movement of capital within the Group
Principle | The guarantee covers CAA's fixed equity-accounted value totalling €5.9bn at 30 June 2020 |
The risk transferred is the asset risk related to the semi-annually change in the equity-accounted value of Crédit Agricole Assurances, paid by Crédit Agricole S.A. to the Regional Banks in the amount of approximately €190m per year accounted in NBI (payment reduction of about €100m for the full year related to the unwinding of 35% of the Switch in Q1)
How it works
How it works
Security deposit
The Switch guarantee is activated when there is a decline in Crédit Agricole Assurances' equity-accounted value in a given half year
It results in a provision for cost of risk in the Regional Banks' financial statements and at the same time a reversal by the same amount recognised by Crédit Agricole S.A. in the AG business line (AG business line)
As well as in a reduction in Crédit Agricole S.A.'s capital requirements for the guaranteed fixed amount, namely approximately 70bp (reduction of 44bp when 35% of the Switch was unwound in Q1)
- €22.0bn in risk weighted assets
- non-deductionfrom the CET1 numerator of €143m mainly due to the expected loss (EL)
The guarantees include a €2.0bn security deposit set up by the Regional Banks and booked in the Crédit Agricole S.A. balance sheet
The security deposit is sized to reflect the capital saving achieved by Crédit Agricole S.A.
If guarantees are activated, the corresponding compensation is claimed by Crédit Agricole S.A. out of the security deposit, which is then replenished by the Regional Banks up to the level of the regulatory prudential requirement
46 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
APPENDICES
Crédit Agricole in Italy - a set of resilient businesses
CRÉDIT AGRICOLE S.A.
Crédit Agricole Group in Italy | Results of Crédit Agricole Group in Italy | |
- Loans: dynamic commercial production, growth in total outstanding loans of +2.3% H1/H1
- Customer savings: total outstandings(1) up (more than +1.5% H1/H1), thanks to the Group synergies
Risk Profile of the Group in Italy
70.2% | 69.6% | 71.1% | 68.8% | 69.3% | 71.8% |
- All Group business lines present
- Complete and resilient universal banking model in the faceofthe crisis thanks to the pursuitofintra-group synergies
€257m | -25% |
Underlyingnet incomeH1-20 | Growth H1/H1 |
Distribution of the Group's net income in Italy(2)
Large customers
66.0% | |||||||||||
Coverage ratio (%) | 51.0% | 52.0% | 55.4% | ||||||||
(incl.collective reserves) | |||||||||||
7.2 | 6.8 | 6.6 | |||||||||
0.7 | |||||||||||
CACIB | 0.7 | ||||||||||
0.1 | 0.4 | 0.2 | |||||||||
FCA Bank (@50%) | 1.2 | 0.2 | 5.2 | 5.1 | 5.0 | 4.9 | |||||
0.9 | 0.9 | 4.9 | 4.9 | 4.7 | |||||||
Asset gathering
12%
Retail banking
23%
Agos | 0.4 | 0.1 | 0.3 | 0.2 | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 | ||||
0.2 | 0.2 | ||||||||||||
BPI Italie | 1.0 | 0.9 | 0.9 | 0.2 | 0.2 | 0.2 | |||||||
0.9 | 0.9 | 0.9 | 0.8 | ||||||||||
5.2 | 5.0 | 5.1 | |||||||||||
3.7 | 3.6 | 3.6 | 3.5 | 3.5 | 3.5 | 3.5 | |||||||
2015 | 2016 | 2017 | 2018 | 2019-03 | 2019-06 | 2019-09 | 2019-12 | 2020-03 | 2020-06 |
15% | Total |
net income: | |
€257m | |
Specialised | 50% |
financial services | |
- Including AUM of Amundi and Asset under costudy CACEIS «excluding group»
- Agregation of the Group entities in Italy, including CA Italia, CACIB, CACEIS, CA Vita et CA Assicurazioni, CACI, Amundi Italia, Indosuez Wealth Management, Agos, CALIT, Eurofactor, FCA Bank (assumption: half of net income recorded in Italy).
47 | RESULTATS DU PREMIER SEMESTRE 2020 |
CRÉDIT AGRICOLE S.A.
APPENDICES
Specific items: -€153m in net income in Q2-20 (vs. -€30m in Q2-19) and -€167m in H1-20 (vs. -€53m in H1-19)
Mutualist support for customers insured against business interruption in connection with the Covid-19 crises: -€145min revenues, -€98min net income
LCL: -€2m in revenues, -€1m in net income
Insurance: -€143m in revenues, -€97m in net income
Liability management upfront payment in Corporate Centre: -€41min revenues, -€28min net income
Integration costs related to the acquisitions of CACEIS (LC): -€5min operating costs, -€2min net income
Triggering of the Switch (Insurance): +€65m in cost of risk, +€44m in net income
Recurring specific items: net income impact of -€68m
DVA and issuer spread portion of FVA: -€7m in revenues, -€5m in net income
Loan book hedge(1): -€75m in revenues, -€50m in net income
Provisions for home purchase savings plans: -€20m in revenues (-€4m in LCL and -€16m in CC), -€14m in net income
Note: in Q2-20, recurring specific items -€20m
- Hedging of CACIB's loan book in order to adapt it to targeted exposure: sector, geography, etc. See slide 49 for details on specific items for Crédit Agricole S.A. and slide 53 for Crédit Agricole Group
48 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
APPENDICES
Alternative performance measures - specific items Q2-20 and H1-20
Q2-20 | Q2-19 | H1-20 | H1-19 | ||||||||||
€m | Gross | Impact on | Gross | Impact on | Gross | Impact on | Gross | Impact on | |||||
Net | Net | Net | Net | ||||||||||
impact* | impact* | impact* | impact* | ||||||||||
income | income | income | income | ||||||||||
DVA (LC) | (7) | (5) | (5) | (3) | (26) | (19) | (12) | (9) | |||||
Loan portfolio hedges (LC) | (75) | (50) | (8) | (6) | 48 | 32 | (27) | (20) | |||||
Home Purchase Savings Plans (FRB) | (4) | (2) | (3) | (2) | (15) | (10) | (11) | (7) | |||||
Home Purchase Savings Plans (CC) | (16) | (11) | (15) | (10) | (46) | (31) | (28) | (18) | |||||
Liability management upfront payment (CC) | (41) | (28) | - | - | (41) | (28) | - | - | |||||
Support to insured clients Covid-19 (LCL) | (2) | (1) | - | - | (2) | (1) | - | - | |||||
Support to insured clients Covid-19 (AG) | (143) | (97) | - | - | (143) | (97) | - | - | |||||
Total impact on revenues | (288) | (195) | (30) | (20) | (225) | (154) | (78) | (53) | |||||
Covid-19 donation (AG) | - | - | - | - | (38) | (38) | - | - | |||||
Covid-19 donation (IRB) | - | - | - | - | (8) | (4) | - | - | |||||
Covid-19 donation (CC) | - | - | - | - | (10) | (10) | - | - | |||||
S3 / Kas Bank integration costs (LC) | (5) | (2) | - | - | (9) | (4) | - | - | |||||
Total impact on operating expenses | (5) | (2) | - | - | - | (65) | (57) | - | - | ||||
Triggering of the Switch2 (AG) | 65 | 44 | - | - | 65 | 44 | - | - | |||||
Total impact on cost of credit risk | 65 | 44 | - | - | - | 65 | 44 | - | - | ||||
Total impact of specific items | (227) | (153) | (30) | (20) | (224) | (167) | (78) | (53) | |||||
Asset gathering | (77) | (53) | - | - | (116) | (91) | - | - | |||||
French Retail banking | (6) | (4) | (3) | (2) | (17) | (11) | (11) | (7) | |||||
International Retail banking | - | - | - | (8) | (4) | - | |||||||
Specialised financial services | - | - | - | - | - | - | - | - | |||||
Large customers | (86) | (57) | (12) | (9) | 13 | 9 | (39) | (28) | |||||
Corporate centre | (58) | (39) | (15) | (10) | (97) | (69) | (28) | (18) | |||||
* Impact before tax and before minority interests |
CREDIT AGRICOLE S.A.
-€153m
Net impact of specific
items on Q2-20 net
income
-€167m
Net impact of specific
items on H1-20 net
income
49 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE S.A.
APPENDICES
Reconciliation between stated and underlying income - Q2-20
€m | Q2-20 | Specific | Q2-20 | Q2-19 | Specific | Q2-19 | ∆ Q2/Q2 | ∆ Q2/Q2 |
stated | items | underlying | stated | items | underlying | stated | underlying | |
Revenues | 4,897 | (288) | 5,185 | 5,149 | (30) | 5,179 | (4.9%) | +0.1% |
Operating expenses excl.SRF | (2,980) | (5) | (2,976) | (3,033) | - | (3,033) | (1.7%) | (1.9%) |
SRF | (79) | - | (79) | (6) | - | (6) | x 13.8 | x 13.8 |
Gross operating income | 1,838 | (293) | 2,130 | 2,111 | (30) | 2,140 | (12.9%) | (0.5%) |
Cost of risk | (842) | 65 | (908) | (358) | - | (358) | x 2.4 | x 2.5 |
Equity-accounted entities | 88 | - | 88 | 108 | - | 108 | (18.3%) | (18.3%) |
Net income on other assets | 82 | - | 82 | (1) | - | (1) | n.m. | n.m. |
Change in value of goodwill | - | - | - | - | - | - | n.m. | n.m. |
Income before tax | 1,166 | (227) | 1,393 | 1,861 | (30) | 1,890 | (37.3%) | (26.3%) |
Tax | (86) | 72 | (158) | (485) | 9 | (494) | (82.3%) | (68.1%) |
Net income from discont'd or held-for-sale ope. | (0) | - | (0) | 8 | - | 8 | n.m. | n.m. |
Net income | 1,080 | (155) | 1,235 | 1,384 | (20) | 1,404 | (21.9%) | (12.0%) |
Non controlling interests | (126) | 2 | (129) | (161) | 0 | (162) | (21.9%) | (20.5%) |
Net income Group Share | 954 | (153) | 1,107 | 1,222 | (20) | 1,242 | (21.9%) | (10.9%) |
Earnings per share (€) | 0.31 | (0.05) | 0.36 | 0.39 | (0.01) | 0.40 | (22.0%) | (10.1%) |
Cost/Income ratio excl. SRF (%) | 60.9% | 57.4% | 58.9% | 58.6% | +2.0 pp | -1.2 pp | ||
Net income Group Share excl. SRF | 1,020 | (153) | 1,173 | 1,227 | (20) | 1,247 | (16.8%) | (6.0%) |
€1,107m | €0.36 | |||||
Underlying net income in Q2-20 | Underlying earnings per share in Q2-20 | |||||
50 | SECOND QUARTER AND FIRST HALF 2020 RESULTS | |||||
CREDIT AGRICOLE S.A.
APPENDICES
Reconciliation between stated and underlying income - H1-20
€m | H1-20 | Specific | H1-20 | H1-19 | Specific | H1-19 | ∆ H1/H1 | ∆ H1/H1 | |
stated | items | underlying | stated | items | underlying | stated | underlying | ||
Revenues | 10,097 | (225) | 10,322 | 10,004 | (78) | 10,081 | +0.9% | +2.4% | |
Operating expenses excl.SRF | (6,235) | (65) | (6,170) | (6,136) | - | (6,136) | +1.6% | +0.5% | |
SRF | (439) | - | (439) | (337) | - | (337) | +30.0% | +30.0% | |
Gross operating income | 3,423 | (290) | 3,713 | 3,530 | (78) | 3,607 | (3.0%) | +2.9% | |
Cost of risk | (1,463) | 65 | (1,529) | (582) | - | (582) | x 2.5 | x 2.6 | |
Equity-accounted entities | 178 | - | 178 | 193 | - | 193 | (7.7%) | (7.7%) | |
Net income on other assets | 87 | - | 87 | 22 | - | 22 | x 4 | x 4 | |
Change in value of goodwill | - | - | - | - | - | - | n.m. | n.m. | |
Income before tax | 2,226 | (224) | 2,450 | 3,163 | (78) | 3,240 | (29.6%) | (24.4%) | |
Tax | (347) | 55 | (401) | (880) | 23 | (903) | (60.6%) | (55.6%) | |
Net income from discont'd or held-for-sale ope. | (1) | - | (1) | 8 | - | 8 | n.m. | n.m. | |
Net income | 1,879 | (170) | 2,048 | 2,291 | (54) | 2,346 | (18.0%) | (12.7%) | |
Non controlling interests | (287) | 3 | (290) | (307) | 1 | (308) | (6.4%) | (5.6%) | |
Net income Group Share | 1,592 | (167) | 1,758 | 1,985 | (53) | 2,038 | (19.8%) | (13.7%) | |
Earnings per share (€) | 0.47 | (0.06) | 0.53 | 0.61 | (0.02) | 0.63 | (22.4%) | (15.5%) | |
Cost/Income ratio excl.SRF (%) | 61.7% | 59.8% | 61.3% | 60.9% | +0.4 pp | -1.1 pp | |||
Net income Group Share excl. SRF | 1,984 | (167) | 2,151 | 2,297 | (53) | 2,350 | (13.6%) | (8.5%) | |
€1,758m | €0.53 | |||||
Underlying net income in H1-20 | Underlying earnings per share in H1-20 | |||||
51 | SECOND QUARTER AND FIRST HALF 2020 RESULTS | |||||
CRÉDIT AGRICOLE S.A.
APPENDICES
Changes in underlying net income Group share, by business lines - Q2/Q2 and H1/H1
€m | Q2-20 | Q2-19 | ∆ Q2/Q2 | ∆ Q2/Q2 | €m |
underlying | underlying | underlying | underlying | ||
Net income Group Share | |||||
Net income Group Share | 1,107 | 1,242 | (10.9%) | (136) | |
Asset gathering | 551 | 496 | +11.0% | 55 | Asset gathering |
H1-20 | H1-19 | ∆ H1/H1 | ∆ H1/H1 |
underlying | underlying | underlying | underlying |
1,758 | 2,038 | (13.7%) | (280) |
907 | 949 | (4.4%) | (42) |
Insurance | 386 | 320 | +20.6% | 66 | Insurance | 590 | 604 | (2.5%) | (15) |
Asset management | 274 | 318 | (13.9%) | (44) | |||||
Asset management | 146 | 163 | (10.3%) | (17) | |||||
Wealth management | 44 | 27 | +62.9% | 17 | |||||
Wealth management | 19 | 13 | +42.7% | 6 | |||||
Retail banking | 165 | 270 | (39.0%) | (105) | Retail banking | 324 | 473 | (31.6%) | (150) |
LCL | 232 | 296 | (21.7%) | (64) | |||||
LCL | 128 | 172 | (25.3%) | (43) | |||||
CA Italia | 25 | 59 | (57.9%) | (34) | CA Italia | 59 | 102 | (41.8%) | (43) |
IRB - others | 12 | 39 | (70.3%) | (27) | IRB - others | 33 | 76 | (56.4%) | (43) |
Specialised financial services | 149 | 207 | (27.9%) | (58) | Specialised financial services | 258 | 401 | (35.7%) | (143) |
CA-CF | 131 | 171 | (23.3%) | (40) | CA-CF | 228 | 333 | (31.5%) | (105) |
CAL&F | 18 | 36 | (49.7%) | (18) | CAL&F | 30 | 68 | (55.8%) | (38) |
Large corporates | 436 | 461 | (5.3%) | (24) | Large corporates | 644 | 692 | (7.0%) | (49) |
CIB | 400 | 417 | (4.2%) | (18) | CIB | 585 | 631 | (7.4%) | (47) |
AS | 37 | 43 | (15.7%) | (7) | AS | 59 | 61 | (3.3%) | (2) |
Corporate Centre | (194) | (191) | +1.6% | (3) | Corporate Centre | (375) | (478) | (21.6%) | 103 |
52 | RESULTATS DU DEUXIEME TRIMESTRE ET DU PREMIER SEMESTRE 2020 | ||
APPENDICES
Alternative performance measures - specific items Q2-20 and H1-20
Q2-20 | Q2-19 | H1-20 | H1-19 | ||||||||
€m | Gross | Impact on | Gross | Impact on | Gross | Impact on | Gross | Impact on | |||
impact* | Net | impact* | Net | impact* | Net | impact* | Net | ||||
DVA (LC) | (7) | (5) | (5) | (3) | (26) | (19) | (12) | (9) | |||
Loan portfolio hedges (LC) | (75) | (51) | (8) | (6) | 48 | 32 | (27) | (20) | |||
Home Purchase Savings Plans (LCL) | (4) | (3) | (3) | (2) | (15) | (10) | (11) | (7) | |||
Home Purchase Savings Plans (CC) | (16) | (11) | (15) | (10) | (46) | (31) | (28) | (18) | |||
Home Purchase Savings Plans (RB) | (58) | (40) | (19) | (13) | (133) | (90) | (98) | (64) | |||
Liability management upfront payment (CC) | (41) | (28) | - | - | (41) | (28) | - | - | |||
Support to insured clients Covid-19 (AG) | (2) | (1) | - | - | (2) | (1) | - | - | |||
Support to insured clients Covid-19 (AG) | (143) | (97) | - | - | (143) | (97) | - | - | |||
Support to insured clients Covid-19 (RB) | (94) | (64) | - | - | (94) | (64) | - | - | |||
Total impact on revenues | (441) | (300) | (49) | (33) | (452) | (309) | (175) | (118) | |||
Covid-19 donation (AG) | - | - | - | - | (38) | (38) | - | - | |||
Covid-19 donation (IRB) | - | - | - | - | (8) | (4) | - | - | |||
Covid-19 donation (CC) | - | - | - | - | (10) | (10) | - | - | |||
Covid-19 donation (RB) | - | - | - | - | (10) | (10) | - | - | |||
S3 / Kas Bank integration costs (LC) | (5) | (2) | - | - | (9) | (4) | - | - | |||
Total impact on operating expenses | (5) | (2) | - | - | (75) | (67) | - | - | |||
Triggering of the Switch2 (AG) | 65 | 44 | - | - | 65 | 44 | - | - | |||
Triggering of the Switch2 (RB) | (65) | (44) | - | - | (65) | (44) | - | - | |||
Total impact on cost of credit risk | - | - | - | - | - | - | - | - | |||
Total impact of specific items | (445) | (302) | (49) | (33) | (527) | (376) | (175) | (118) | |||
Asset gathering | (77) | (53) | - | - | (116) | (91) | - | - | |||
French Retail banking | (224) | (152) | (22) | (14) | (320) | (221) | (108) | (71) | |||
International Retail banking | - | - | - | (8) | (4) | - | - | ||||
Specialised financial services | - | - | - | - | - | - | - | - | |||
Large customers | (86) | (58) | (12) | (9) | 13 | 9 | (39) | (29) | |||
Corporate centre | (58) | (39) | (15) | (10) | (97) | (69) | (28) | (18) | |||
CRÉDIT AGRICOLE GROUP
-€302m
Net impact of specific
items on Q2-20 net
income
-€376m
Net impact of specific
items on H1-20 net
income
53 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE GROUP
APPENDICES
Reconciliation between stated and underlying income - Q2-20
€m | Q2-20 | Specific | Q2-20 | Q2-19 | Specific | Q2-19 | ∆ Q2/Q2 | ∆ Q2/Q2 |
stated | items | underlying | stated | items | underlying | stated | underlying | |
Revenues | 8,096 | (441) | 8,536 | 8,485 | (49) | 8,534 | (4.6%) | +0.0% |
Operating expenses excl.SRF | (5,036) | (5) | (5,031) | (5,308) | - | (5,308) | (5.1%) | (5.2%) |
SRF | (107) | - | (107) | (4) | - | (4) | x 27.5 | x 27.5 |
Gross operating income | 2,953 | (445) | 3,398 | 3,174 | (49) | 3,223 | (7.0%) | +5.4% |
Cost of risk | (1,208) | - | (1,208) | (598) | - | (598) | x 2 | x 2 |
Equity-accounted entities | 78 | - | 78 | 94 | - | 94 | (17.0%) | (17.0%) |
Net income on other assets | 78 | - | 78 | (8) | - | (8) | n.m. | n.m. |
Change in value of goodwill | (3) | - | (3) | - | - | - | n.m. | n.m. |
Income before tax | 1,898 | (445) | 2,343 | 2,662 | (49) | 2,711 | (28.7%) | (13.6%) |
Tax | (308) | 142 | (450) | (728) | 16 | (743) | (57.7%) | (39.5%) |
Net income from discont'd or held-for-sale ope. | (0) | - | (0) | 8 | - | 8 | n.m. | n.m. |
Net income | 1,590 | (303) | 1,893 | 1,942 | (33) | 1,976 | (18.1%) | (4.2%) |
Non controlling interests | (107) | 1 | (108) | (130) | - | (130) | (17.4%) | (16.6%) |
Net income Group Share | 1,483 | (302) | 1,785 | 1,813 | (33) | 1,846 | (18.2%) | (3.3%) |
Cost/Income ratio excl.SRF (%) | 62.2% | 58.9% | 62.6% | 62.2% | -0.3 pp | -3.3 pp | ||
Net income Group Share excl. SRF | 1,580 | (302) | 1,882 | 1,815 | (33) | 1,848 | (13.0%) | +1.8% |
€1,785m
Underlying net income in Q2-20
54 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE GROUP
APPENDICES
Reconciliation between stated and underlying income - H1-20
€m | H1-20 | Specific | H1-20 | H1-19 | Specific | H1-19 | ∆ H1/H1 | ∆ H1/H1 | |
stated | items | underlying | stated | items | underlying | stated | underlying | ||
Revenues | 16,462 | (452) | 16,914 | 16,682 | (175) | 16,857 | (1.3%) | +0.3% | |
Operating expenses excl.SRF | (10,584) | (75) | (10,509) | (10,585) | - | (10,585) | (0.0%) | (0.7%) | |
SRF | (562) | - | (562) | (426) | - | (426) | +31.9% | +31.9% | |
Gross operating income | 5,316 | (527) | 5,843 | 5,671 | (175) | 5,846 | (6.3%) | (0.0%) | |
Cost of risk | (2,137) | - | (2,137) | (879) | - | (879) | x 2.4 | x 2.4 | |
Equity-accounted entities | 168 | - | 168 | 188 | - | 188 | (10.8%) | (10.8%) | |
Net income on other assets | 84 | - | 84 | 3 | - | 3 | x 29.2 | x 29.2 | |
Change in value of goodwill | (3) | - | (3) | - | - | - | n.m. | n.m. | |
Income before tax | 3,428 | (527) | 3,955 | 4,983 | (175) | 5,158 | (31.2%) | (23.3%) | |
Tax | (789) | 148 | (937) | (1,576) | 57 | (1,633) | (50.0%) | (42.6%) | |
Net income from discont'd or held-for-sale ope. | (1) | - | (1) | 8 | - | 8 | n.m. | n.m. | |
Net income | 2,638 | (379) | 3,017 | 3,415 | (118) | 3,534 | (22.8%) | (14.6%) | |
Non controlling interests | (248) | 3 | (251) | (253) | - | (253) | (2.0%) | (0.9%) | |
Net income Group Share | 2,391 | (376) | 2,767 | 3,163 | (118) | 3,281 | (24.4%) | (15.7%) | |
Cost/Income ratio excl.SRF (%) | 64.3% | 62.1% | 63.5% | 62.8% | +0.8 pp | -0.7 pp | |||
Net income Group Share excl. SRF | 2,913 | (376) | 3,289 | 3,569 | (118) | 3,687 | (18.4%) | (10.8%) |
€2,767m
Underlying net income in H1-20
55 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CRÉDIT AGRICOLE S.A.
APPENDICES
Profitability in business lines
H1-20 annualised underlying RoNE (1,2) by business line and 2022 targets(%)
>30% | Underlying 2019 | Underlying H1- | 2022 MTP target | |||||
>18% | ||||||||
27,5% | >12,5% | >13% | >14% | |||||
11% | ||||||||
21,4% | 19,3% | >10% | ||||||
16,0% | ||||||||
12,7% | ||||||||
10,8% | 9,3% | 12,1% | 10,1% | 10,0% | 11,9% | |||
8,5% | ||||||||
7,8% | ||||||||
4,2% | ||||||||
AG | LCL | CA Italia | IRB Other | SFS | LC | RoTE underlying CASA |
AG: Asset Gathering, including Insurance; RB: Retail Banking, SFS: Specialised financial services; LC: Large customers; CC: Corporate Centre, (1) See slides 49 (Crédit Agricole S.A.) and 53 (Crédit Agricole Group) for further details on specific items, (2) Underlying after deduction of AT1 coupons, charged to net equity, see slide 61 for details on specific items
56 | RESULTATS DU DEUXIEME TRIMESTRE ET DU PREMIER SEMESTRE 2020 |
APPENDICES
A stable, diversified and profitable business model
CREDIT AGRICOLE S.A.
Underlying revenues(1) H1-20 by business line
(excluding Corporate Centre) (%)
Large | Asset | Asset | |||
customers | |||||
gathering | |||||
31% | servicingInsurance | ||||
5% | 12% | 27% | |||
CIB | Asset | ||||
Underlying | Mngt | ||||
26% | |||||
revenues | 11% | ||||
Wealth | |||||
excl. CC | |||||
Mngt | |||||
Leasing & | H1-20: | 4% | |||
€10.4bn | |||||
Factoring | |||||
LCL | |||||
2% | |||||
Consumer | 17% | ||||
Spec. fin. | finance | ||||
10% | IRB | Retail banking | |||
serv. | 13% | ||||
12% | 29% |
- See slide 49 for details on specific items
Underlying net income (1) H1-20 by business line
(excluding Corporate Centre) (%)
Large | ||||
customers | Asset | |||
30% | servicing | |||
3% | Insurance | |||
CIB | ||||
28% | ||||
27% | Underlying | |||
Net income | ||||
excl. CC | ||||
Leasing & | H1-20: | Asset | ||
€2.1bn | ||||
Factoring | ||||
Mngt | ||||
1% | ||||
Spec. fin. serv. | Consumer | Wealth 13% | ||
finance | ||||
IRB | LCL | Mngt | ||
12% | 11% | |||
4% | 11% | 2% | ||
Asset
gathering
43%
Retail
banking
15%
57 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
APPENDICES
Risk-weighted assets and allocated capital by business line
Risk-weighted assets by business line at 30/06/2020 (€bn and %)
CorporateInsurance | Asset gathering | |||
€40.9bn | ||||
Asset | centre | 7% Asset | 12% | |
servicing | 8% | Mngt | ||
3% | Wealth | |||
3%Mngt | ||||
Large customers | 1% | Retail banking | ||
€131.7bn | ||||
LCL | ||||
38% | RWA | 16% | €95.5bn | |
end-June 2020: | 28% | |||
CIB | €346.9bn | |||
35% | ||||
IRB | ||||
12% | Serv. fin. | |||
Leasing &Consumer | ||||
spécialisés | ||||
Factoring | finance12% | 51,7 Md€ | ||
3% | 15% | |||
CREDIT AGRICOLE S.A.
Allocated capital by business line at 30/06/2020 (in €bn and %)
Large
customers | Corporate | Asset gathering | ||||||
€12.5bn | Assetcentre | €10bn | ||||||
34% | servicing0% | Insurance | 27% | |||||
3% | ||||||||
23% | ||||||||
CIB | ||||||||
32% Total allocatedAssetMngt | ||||||||
capital | 3% | Wealth | ||||||
Mngt | ||||||||
end-June 2020: | 1% | |||||||
Leasing | €36.5bn | |||||||
LCL | ||||||||
& | ||||||||
Factorin | 14% | |||||||
g…Consumer | IRB | |||||||
Spec. fin. serv. | finance | Retail | ||||||
11% | ||||||||
10% | ||||||||
€4.9bn | banking | |||||||
13% | €9.1bn | |||||||
25% |
58 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE S.A.
APPENDICES
RWA and allocated capital by business line
€bn
Asset gathering
Risk-weighted assets | Capital | ||||
June | March | June | June | March | June |
2020 | 2020 | 2019 | 2020 | 2020 | 2019 |
40.9 | 39.2 | 30.8 | 10.0 | 9.2 | 9.0 |
- Insurance* ** | 24.8 | 22.7 | 15.3 |
- Asset management | 11.1 | 11.3 | 10.5 |
- Wealth Management | 5.0 | 5.2 | 5.0 |
French Retail Banking (LCL) | 54.1 | 52.5 | 52.1 |
International retail Banking | 41.3 | 41.9 | 41.9 |
Specialised financial services | 51.7 | 54.2 | 55.6 |
Large customers | 131.7 | 132.5 | 119.8 |
8.5 | 7.7 | 7.5 |
1.1 | 1.1 | 1.0 |
0.5 | 0.5 | 0.5 |
5.1 | 5.0 | 5.0 |
3.9 | 4.0 | 4.0 |
4.9 | 5.1 | 5.3 |
12.5 | 12.6 | 11.4 |
- Financing activities | 74.7 | 74.0 | 73.3 | 7.1 | 7.0 | 7.0 | |
- Capital markets and investment | 46.7 | 47.8 | 38.0 | 4.4 | 4.5 | 3.6 | |
banking | |||||||
- Asset servicing | 10.3 | 10.8 | 8.6 | 1.0 | 1.0 | 0.8 | |
Corporate Centre | 27.1 | 27.4 | 23.3 | 0.0 | 2.6 | 2.2 | |
TOTAL | 346.9 | 347.5 | 323.4 | 36.5 | 38.5 | 36.8 | |
(0.2%) | ||||||||
323 | 330 | 324 | 348 | 347 | ||||
12 | 12 | 13 | ||||||
10 | 12 | 34 | Market risk | |||||
32 | 32 | 34 | 35 | |||||
Operational | ||||||||
301 | 299 | risk | ||||||
281 | 286 | 278 | Credit risk | |||||
June 19 | Sept. 19 | Dec. 19 | Mar. 20 | June 20 | ||||
*** Methodology: 9,5% of RWAs for each business line except Insurance; Insurance: 80% of Solvency 2 capital requirements reduced by 9.5% of RWAs transferred by the Switch 2 guarantee to the regional banks.
59 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE S.A.
APPENDICES
Distribution of share capital and number of shares
30/06/2020 | 31/12/2019 | 30/06/2019 | ||||
Breakdow n of share capital | Number of | % | Number of | % | Number of | % |
shares | shares | shares | ||||
SAS Rue La Boétie | 1,612,517,290 | 55.9% | 1,612,517,290 | 55.9% | 1,612,517,290 | 56.3% |
Treasury shares | 1,900,000 | 0.1% | 435,000 | 0.0% | 2,458,564 | 0.1% |
Employees (company investment fund, ESOP) | 152,504,221 | 5.3% | 134,900,173 | 4.7% | 130,180,992 | 4.5% |
Float | 1,117,767,201 | 38.7% | 1,136,836,249 | 39.4% | 1,121,280,310 | 39.1% |
Total shares in issue (period end) | 2,884,688,712 | 2,884,688,712 | 2,866,437,156 | |||
Total shares in issue, excluding treasury shares (period end) | 2,882,788,712 | 2,884,253,712 | 2,863,978,592 | |||
Total shares in issue, excluding treasury shares (average number) | 2,882,727,994 | 2,873,414,500 | 2,863,261,762 |
60 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
CREDIT AGRICOLE S.A.
APPENDICES
Data per share
(€m) | Q2-20 | Q2-19 | H1-20 | H1-19 | ∆ Q2/Q2 | ∆ H1/H1 | |||
Net income Group share - stated | 954 | 1,222 | 1,592 | 1,985 | (21.9%) | (19.8%) | |||
- Interests on AT1, including issuance costs, before tax | (72) | (99) | (229) | (240) | (27.2%) | (4.5%) | |||
NIGS attributable to ordinary shares - stated | [A] | 882 | 1,123 | 1,363 | 1,745 | (21.5%) | (21.9%) | ||
Average number shares in issue, excluding treasury shares (m) | [B] | 2,882.4 | 2,864.1 | 2,882.7 | 2,863.3 | +0.6% | +0.7% | ||
Net earnings per share - stated | [A]/[B] | 0.31 € | 0.39 € | 0.47 € | 0.61 € | (22.0%) | (22.4%) | ||
Underlying net income Group share (NIGS) | 1,107 | 1,242 | 1,758 | 2,038 | (10.9%) | (13.7%) | |||
Underlying NIGS attributable to ordinary shares | [C] | 1,035 | 1,143 | 1,529 | 1,798 | (9.5%) | (15.0%) | ||
Net earnings per share - underlying | [C]/[B] | 0.36 € | 0.40 € | 0.53 € | 0.63 € | (10.1%) | (15.5%) |
(€m) | 30/06/2020 | 30/06/2019 | |||
Shareholder's equity Group share | 63,895 | 61,216 | |||
- AT1 issuances | (5,130) | (6,094) | |||
- Unrealised gains and losses on OCI - Group share | (2,291) | (3,056) | |||
- Payout assumption on annual results* | - | - | |||
Net book value (NBV), not revaluated, attributable to ordin. | [D] | 56,474 | 52,066 | ||
sh. | |||||
- Goodwill & intangibles** - Group share | (18,502) | (18,335) | |||
Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. | [E] | 37,972 | 33,731 | ||
Total shares in issue, excluding treasury shares (period end, m) | [F] | 2,882.8 | 2,864.0 | ||
NBV per share , after deduction of dividend to pay (€) | [D]/[F] | 19.6 € | 18.2 € | ||
+ Dividend to pay (€) | [H] | 0.0 € | 0.0 € | ||
NBV per share , before deduction of dividend to pay (€) | 19.6 € | 18.2 € | |||
TNBV per share, after deduction of dividend to pay (€) | [G]=[E]/[F] | 13.2 € | 11.8 € | ||
TNBV per sh., before deduct. of divid. to pay (€) | [G]+[H] | 13.2 € | 11.8 € |
Underlying ROTE (1)(%)
10,7% 11,0%
7,6%
8,5%
* dividend proposed to the Board meeting to be paid | |||||||
** including goodwill in the equity-accounted entities | |||||||
(€m) | H1-20 | H1-19 | |||||
Net income Group share attributable to ordinary shares | [H] | 2,725 | 3,490 | ||||
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. - avg*** | [J] | 36,022 | 32,572 | ||||
Stated ROTE (%) | [H]/[J] | 7.6% | 10.7% | ||||
Underlying Net income attrib. to ord. shares (annualised) | [I] | 3,058 | 3,596 | ||||
Underlying ROTE (%) | [I]/[J] | 8.5% | 11.0% | ||||
*** including assumption of dividend for the current exercise | |||||||
H1-19 | H1-20 | |
Underlying ROTE (%) | Stated ROTE (%) | |
- Underlying. See slide 49 for details on specific items.
61 | SECOND QUARTER AND FIRST HALF 2020 RESULTS |
List of contacts:
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS :
Institutional shareholders + 33 1 43 23 04 31 | investor.relations@credit-agricole-sa.fr | |
Individual shareholders | + 33 800 000 777 | credit-agricole-sa@relations-actionnaires.com |
(toll-free call in France only) |
CREDIT AGRICOLE PRESS CONTACTS:
Charlotte de Chavagnac + 33 1 57 72 11 17 | charlotte.dechavagnac@credit-agricole-sa.fr | |
Olivier Tassain | + 33 1 43 23 25 41 | olivier.tassain@credit-agricole-sa.fr |
Bertrand Schaefer | + 33 1 49 53 43 76 | bertrand.schaefer@ca-fnca.fr |
Clotilde L'Angevin | + 33 1 43 23 32 45 | clotilde.langevin@credit-agricole-sa.fr |
Toufik Belkhatir | + 33 1 57 72 12 01 | toufik.belkhatir@credit-agricole-sa.fr |
Joséphine Brouard | + 33 1 43 23 48 33 | josephine.brouard@credit-agricole-sa.fr |
Oriane Cante | + 33 1 43 23 03 07 | oriane.cante@credit-agricole-sa.fr |
Emilie Gasnier | + 33 1 43 23 15 67 | emilie.gasnier@credit-agricole-sa.fr |
Ibrahima Konaté | + 33 1 43 23 51 35 | ibrahima.konate@credit-agricole-sa.fr |
Annabelle Wiriath | + 33 1 43 23 55 52 | annabelle.wiriath@credit-agricole-sa.fr |
This presentation is available at:
www.credit-agricole.com/finance/finance/publications-financieres
See all our press releases at: www.credit-agricole.com - www.creditagricole.info
@Crédit_Agricole | Crédit Agricole Group | @créditagricole_sa |
62 | SECOND QUARTER AND FIRST HALF 2020 RESULTS | ||
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Crédit Agricole SA published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 13:18:01 UTC