VERY GOOD RESULTS | ||||||||||||||
Q3 – 2023 | CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP | ||||||||||||
Stated | Underlying | Stated | Underlying | |||||||||||
Revenues | €6,343m +19.2% Q3/Q3 | €6,060m +13.4% Q3/Q3 | €9,249m +12.5% Q3/Q3 | €8,847m +7.3% Q3/Q3 | ||||||||||
Costs excl. SRF | -€3,376m +8.0% Q3/Q3 | -€3,376m +8.3% Q3/Q3 | -€5,265m +6.5% Q3/Q3 | -€5,265m +6.7% Q3/Q3 | ||||||||||
Gross Operating Income | €2,967m +35.2% Q3/Q3 | €2,684m +20.6% Q3/Q3 | €3,984m +21.5% Q3/Q3 | €3,582m +8.2% Q3/Q3 | ||||||||||
Cost of risk | -€429m +19.3% Q3/Q3 | -€429m +19.3% Q3/Q3 | -€693m +9.0% Q3/Q3 | -€693m +9.0% Q3/Q3 | ||||||||||
Net income Group share | €1,748m +32.8 Q3/Q3 | €1,520m +23.0% Q3/Q3 | €2,384m +21.0% Q3/Q3 | €2,068m +9.3% Q3/Q3 | ||||||||||
C/I ratio (excl. SRF) | 53.2% -5.5 pp Q3/Q3 | 55.7% -2.6 pp Q3/Q3 | 56.9% -3.2 pp Q3/Q3 | 59.5% -0.3 pp Q3/Q3 | ||||||||||
Q3/Q3 changes are pro-forma according to IFRS 17 STRONG RESULTS AND HIGH PROFITABILITY
CONTINUOUS CAPITAL GENERATION
VERY SOLID ASSET QUALITY AND LIQUIDITY PROFILE
ENERGY TRANSITION
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Chairman of SAS “This quarter’s results are very good. The Group therewith furthers its commitment to both enable French housing and owning systems and to support long term societal changes. I would like to thank all our representatives and coworkers who act every day to attend to cutsomers’ needs ” | |
Chief Executive Officer of Crédit Agricole S.A. “Very good results again which imprint organically within the Group’s model” |
This press release comments on the results of Crédit Agricole S.A. and those of Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 59.7% of Crédit Agricole S.A. Please see the appendices to this press release for details of specific items, which are restated in the various indicators to calculate underlying income. All 2022 figures are presented on a pro forma basis under IFRS 17.
Crédit Agricole Group
Group activity
Commercial activity recorded a slowdown in retail banking operations in
The slowdown in retail banking activity seen in
The slowdown in retail operations in
Lastly, the customer savings in the retail banking balance sheet, amounting to €807 billion4, increased again in this quarter, up +1.3% compared to
A series of self-financed acquisitions contributing to revenue growth and delivering synergies
To support its revenue growth, Crédit Agricole S.A. relies not only on its organic growth drivers but also on acquisitions and external partnerships, with the business lines acting as consolidator on the European market. These acquisitions since 2019 have all been self-financed and have generated cost and revenue synergies. Recent external growth operations have proven successful, particularly
Since then, Crédit Agricole S.A. has continued to carry out new acquisitions and forge new partnerships, based on five main areas of development. First of all, private banking and asset servicing increased in scale due to both the transaction in progress with Degroof Petercam5 and the acquisition in
These operations support the growth in revenues of Crédit
Launch of a new business: Crédit Agricole Transitions & Energies
Crédit Agricole S.A. is structuring its new Crédit Agricole Transitions & Energies (CATE) business line, which presented its roadmap in
Transition advisory services are dedicated to supporting customers as they implement their energy and environmental sobriety processes. CATE has also a range of solutions delivered by R314 for corporates and public authorities, and the “J’écorénove mon logement”15 platform for individual customers.
The financing offering consists in providing a comprehensive financial solution for all renewable energy generation and energy efficiency projects with Unifergie and the Group’s financing entities, as well as a financial and legal engineering offering, and financing offerings in various areas of sustainable energy (renewable energy, energy performance, environment). By 2030, CATE aims to mobilise €19 billion in financing provided by the entities of the Crédit Agricole Group in France. CATE also aims to invest €1 billion to strengthen the developers’ capital and acquire production capacities.
Lastly, CATE will generate and supply electricity from renewable sources locally for developers, local governments and consumers. CATE is aiming for 2 GW of installed production capacity from assets owned by the Group in 2028, and 500MWh of low-carbon electricity supply by 2026, equivalent to the annual consumption of 196,000 people. This offering is delivered by Selfee, in which CATE is the main shareholder. Selfee is an electricity operator that enables the purchase via local supply chains, at a local price, of electricity generated in the French regions, Selfee acting as the only intermediary of the energy producer.
Group results
In the third quarter of 2023, Crédit Agricole Group’s stated net income Group share was €2,384 million, up +21.0% compared to the third quarter of 2022.
The specific items for the quarter had a cumulative impact of +€317 million on net income Group share and included +€298 million in recurring accounting items and +€19 million in non-recurring items. The recurring items mainly correspond to the reversal of the home purchase savings provision of +€297 million (+€38 million for LCL, +€171 million for the Corporate Centre and +€88 million for the Regional Banks); the other recurring items – the issuer spread portion of the FVA16 and secured lending (+€2 million) and loan book hedging (-€1 million) – offset each other. The non-recurring items relate to the ongoing reorganisation of the Mobility activities17 in the SFS division (+€19 million).
Restated from these specific items, Crédit Agricole Group’s underlying net income Group share18 amounted to €2,068 million, an increase of +9.3% compared to third quarter 2022.
Crédit
m€ | Q3-23 stated | Specific items | Q3-23 underlying | Q3-22 stated | Specific items | Q3-22 underlying | ∆ Q3/Q3 stated | ∆ Q3/Q3 underlying |
Revenues | 9,249 | 402 | 8,847 | 8,222 | (22) | 8,244 | +12.5% | +7.3% |
Operating expenses excl. SRF | (5,265) | 0 | (5,265) | (4,943) | (9) | (4,934) | +6.5% | +6.7% |
SRF | - | - | - | - | - | - | n.m. | n.m. |
Gross operating income | 3,984 | 402 | 3,582 | 3,280 | (30) | 3,310 | +21.5% | +8.2% |
Cost of risk | (693) | 0 | (693) | (636) | - | (636) | +9.0% | +9.0% |
Equity-accounted entities | 37 | (26) | 63 | 111 | - | 111 | (66.8%) | (43.0%) |
Net income on other assets | 69 | 61 | 9 | 6 | - | 6 | x 10.7 | +32.2% |
Change in value of goodwill | - | - | - | - | - | - | n.m. | n.m. |
Income before tax | 3,397 | 436 | 2,961 | 2,762 | (30) | 2,792 | +23.0% | +6.0% |
Tax | (810) | (120) | (691) | (736) | 6 | (742) | +10.0% | (7.0%) |
Net income from discont'd or held-for-sale ope. | 2 | - | 2 | 123 | 101 | 22 | (98.7%) | (92.4%) |
Net income | 2,588 | 317 | 2,272 | 2,149 | 77 | 2,071 | +20.5% | +9.7% |
Non controlling interests | (204) | - | (204) | (178) | 2 | (180) | +14.9% | +13.5% |
Net income Group Share | 2,384 | 317 | 2,068 | 1,971 | 79 | 1,892 | +21.0% | +9.3% |
Cost/Income ratio excl. SRF (%) | 56.9% | 59.5% | 60.1% | 59.8% | -3.2 pp | -0.3 pp |
In the third quarter of 2023, underlying revenues totalled €8,847 million, up +7.3% compared to the third quarter of 2022, driven by the Asset Gathering division (+9.6%), which benefited from a rise in insurance revenues, the
Underlying operating expenses excluding the SRF (
The underlying cost of credit risk increased moderately, to -€693 million, an increase of +9.0% compared to the third quarter of 2022, when it stood at -€636 million. The expense of -€693 million in the third quarter of 2023 consists of a write-back on performing loans (Stages 1 and 2) for +€28 million (versus an addition of -€209 million in the third quarter of 2022), due to the transition to default of some loans, provisioning of proven risks for - €724 million (Stage 3, compared to -€498 million in the third quarter of 2022), the deterioration due to the increase in proven risk on retail banking and consumer finance, and lastly a write-back of +€3 million for other risks. The provisioning levels were determined by taking into account several weighted economic scenarios, as in previous quarters, and by applying adjustments on sensitive portfolios. The weighted economic scenarios for the second quarter were updated, with a favourable scenario (French GDP at +1% in 2023, +2.4% in 2024) and an unfavourable scenario (French GDP at +0.1% in 2023 and -0.1% in 2024). The cost of credit risk on outstandings19 over a rolling four-quarter period stood at 25 basis points, which is in line with the 25 basis point assumption of the Medium-Term Plan. It stands at 24 basis points on a quarterly annualised basis20.
Underlying pre-tax income stood at €2,961 million, a year-on-year increase of +6.0%. The underlying pre-tax income included the contribution from equity-accounted entities for €63 million (down -43.0%, mainly due to the line-by-line consolidation of
Crédit |
€m | 9M-23 stated | Specific items | 9M-23 underlying | 9M-22 stated | Specific items | 9M-22 underlying | ∆ 9M/9M stated | ∆ 9M/9M underlying |
Revenues | 27,722 | 758 | 26,965 | 25,953 | 543 | 25,410 | +6.8% | +6.1% |
Operating expenses excl.SRF | (15,782) | (18) | (15,764) | (15,021) | (90) | (14,931) | +5.1% | +5.6% |
SRF | (620) | - | (620) | (803) | - | (803) | (22.8%) | (22.8%) |
Gross operating income | 11,321 | 739 | 10,581 | 10,129 | 453 | 9,677 | +11.8% | +9.3% |
Cost of risk | (2,179) | (84) | (2,095) | (2,139) | (195) | (1,944) | +1.9% | +7.7% |
Equity-accounted entities | 190 | (39) | 229 | 323 | - | 323 | (41.0%) | (29.0%) |
Net income on other assets | 107 | 89 | 18 | 41 | - | 41 | x 2.6 | (56.0%) |
Change in value of goodwill | - | - | - | - | - | - | n.m. | n.m. |
Income before tax | 9,438 | 705 | 8,733 | 8,354 | 258 | 8,096 | +13.0% | +7.9% |
Tax | (2,293) | (180) | (2,113) | (2,211) | (117) | (2,094) | +3.7% | +0.9% |
Net income from disconted or held-for-sale operations | 7 | - | 7 | 148 | 94 | 53 | (95.0%) | (86.2%) |
Net income | 7,153 | 525 | 6,628 | 6,291 | 235 | 6,056 | +13.7% | +9.4% |
Non controlling interests | (619) | (0) | (619) | (539) | 13 | (552) | +14.7% | +12.1% |
Net income Group Share | 6,534 | 525 | 6,009 | 5,752 | 248 | 5,504 | +13.6% | +9.2% |
Cost/Income ratio excl.SRF (%) | 56.9% | 58.5% | 57.9% | 58.8% | -0.9 pp | -0.3 pp |
In the first nine months of 2023, stated net income Group share amounted to €6,534 million, compared with €5,752 million in the first nine months of 2022, an increase of +13.6%.
Specific items in the first nine months of 2023 had a positive impact of +€525 million on stated net income Group share and comprise +€262 million in recurring accounting items and +€263 million in non-recurring items. The recurring items mainly correspond to the reversal of the home purchase savings provision for +€297 million, already mentioned above, as well as the accounting volatility items of the Large Customers division (the DVA for -€15 million and loan book hedging for -€19 million). The non-recurring items are related to the reorganisation of the Mobility activities21 of the
Excluding these specific items, underlying net income Group share amounted to €6,009 million, up +9.2% compared to the first nine months of 2022.
Underlying revenues totalled €26,965 million, up +6.1% compared to the first nine months of 2022. This increase was due to very high revenues across all the business lines in the Asset Gathering division, the line-by-line integration of CA Auto Bank in the
Underlying operating expenses excluding SRF amounted to -€15,764 million, up +5.6% compared with the first nine months of 2022, mainly including the scope effect relating to the line-by-line consolidation of CA Auto Bank within the
Underlying gross operating income totalled €10,581 million, up +9.3% compared to the first nine months of 2022.
The underlying cost of risk was -€2,095 million (including -€193 million in cost of risk on performing loans (Stages 1 and 2), -€1,885 million in cost of proven risk and -€16 million in other risks), i.e. an increase of +7.7% compared to the first nine months of 2022.
As at
Underlying pre-tax income before discontinued operations and non-controlling interests amounted to €8,733 million, up +7.9% compared to the first nine months of 2022. The tax charge was €2,113 million, up slightly, by +0.9%, with an underlying effective tax rate of 24.8%.
Underlying net income Group share was €6,009 million, up +9.2% compared to the first nine months of 2022.
NB: Unless mentioned otherwise, the results by business will be commented on the basis of the reported results.
Regional banks
Over the quarter, gross customer capture was up, with +268,000 new customers, while the customer base grew by +44,000 new customers. The number of customers using digital tools increased, with “Ma Banque” application reaching now 9.0 million23 users and the number of online signatures24 grew up by +22% between the third quarter of 2022 and the third quarter of 2023. The strong performance of the offer “Ma Banque Au Quotidienˮ for individual customers has led to an increase and improvement of the card stock (+2.0% year-on-year, with a share of 14.4% for Premium cards). The equipment rate for property and casualty insurance was 43.1% at the end of
Loan production was down -25.0% compared to the third quarter 2022, and -11.9% compared to the second quarter 2023. The decline is sharp in home loans (-36.1% compared to the third quarter of 2022), but it remains lower than the market25. The home loan production rate increased +48 basis points compared to the second quarter of 2023, with the average rate for 20-25 years lending reaching 3.99% in early
Total customer assets rose by +3.3% year on year to €871.9 billion at the end of
In the third quarter of 2023, the Regional Banks’ stated revenues, including the SAS
The Regional banks’ contribution to the results of Crédit Agricole Group amounted to €587 million (-6.5%) in stated net income Group share in the third quarter of 2023, with revenues of €3,345 million (+0.3%) and a cost of risk of -€254 million (-6.8%).
In the first nine months of 2023, revenues including the SAS
The Regional banks’ contribution to the results of Crédit Agricole Group in the first nine months of 2023 amounted to €1,420 million (-34.5%) in stated net income Group share, with revenues of €10,032 million (-6.8%) and a cost of risk of -€831 million (+0.2%).
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of Directors, chaired by
Crédit
€m | Q3-23 stated | Specific items | Q3-23 underlying | Q3-22 stated | Specific items | Q3-22 underlying | ∆ Q3/Q3 stated | ∆ Q3/Q3 underlying |
Revenues | 6,343 | 284 | 6,060 | 5,321 | (22) | 5,343 | +19.2% | +13.4% |
Operating expenses excl.SRF | (3,376) | 0 | (3,376) | (3,127) | (9) | (3,118) | +8.0% | +8.3% |
SRF | - | - | - | - | - | - | n.m. | n.m. |
Gross operating income | 2,967 | 284 | 2,684 | 2,195 | (30) | 2,225 | +35.2% | +20.6% |
Cost of risk | (429) | 0 | (429) | (360) | - | (360) | +19.3% | +19.3% |
Equity-accounted entities | 23 | (26) | 50 | 102 | - | 102 | (77.2%) | (51.2%) |
Net income on other assets | 69 | 61 | 8 | 5 | - | 5 | x 12.6 | +52.8% |
Change in value of goodwill | - | - | - | - | - | - | n.m. | n.m. |
Income before tax | 2,630 | 318 | 2,312 | 1,942 | (30) | 1,973 | +35.4% | +17.2% |
Tax | (633) | (89) | (544) | (533) | 6 | (539) | +18.8% | +0.9% |
Net income from discont'd or held-for-sale ope. | 2 | - | 2 | 123 | 101 | 22 | n.m. | n.m. |
Net income | 1,999 | 229 | 1,770 | 1,533 | 77 | 1,455 | +30.4% | +21.6% |
Non-controlling interests | (251) | (2) | (250) | (217) | 2 | (219) | +15.8% | +13.9% |
Net income Group Share | 1,748 | 227 | 1,520 | 1,316 | 79 | 1,236 | +32.8% | +23.0% |
Earnings per share (€) | 0.53 | 0.07 | 0.46 | 0.41 | 0.03 | 0.38 | +30.1% | +19.5% |
Cost/Income ratio excl. SRF (%) | 53.2% | 55.7% | 58.8% | 58.4% | -5.5 pp | -2.6 pp |
In the third quarter of 2023, Crédit Agricole S.A.’s stated net income Group share amounted to €1,748 million, an increase of +32.8% compared to the third quarter of 2022.
Specific items for the quarter had a cumulative impact of +€227 million on net income Group share, and included recurring accounting items for +€208 million and non-recurring items for +€19 million. The recurring items mainly correspond to the reversal of the home purchase savings provision of +€208 million (+€37 million for LCL and +€171 million for the Corporate Centre); the other recurring items – the issuer spread portion of the FVA27 and secured lending (+€2 million) and loan book hedging (-€1 million) – offset each other. The non-recurring items relate to the ongoing reorganisation of the Mobility activities28 in the SFS division (+€19 million).
Excluding specific items, underlying net income Group share29 stood at €1,520 million, a +23.0% increase compared to the third quarter of 2022.
Underlying revenues reached €6,060 million, up +13.4% compared to the third quarter of 2022, driven by growth in revenues across all business lines. The Asset Gathering division recorded an increase of +10.2%, mainly due to higher Insurance revenues (+19.4%), which were adversely affected by weather events in the second quarter of 2022. The revenues of the
In addition, this quarter has been the subject of Crédit
Underlying operating expenses amounted to -€3,376 million, up +8.3% compared to the third quarter of 2022, i.e. an increase of -€258 million. This change includes a scope effect of -€178 million35 related to the consolidation of CA Auto Bank within the
The underlying cost/income ratio excluding SRF in third quarter 2023 thus stood at 55.7%, an improvement of -2.6 percentage points compared to third quarter 2022.
Underlying gross operating income stood at €2,684 million, up +20.6%.
As at
The underlying cost of credit risk decreased to -€429 million, an increase of 19.3% compared to the third quarter of 2022, when it stood at -€360 million. The expense of -€429 million in the third quarter of 2023 consists of a write-back on performing loans (Stages 1 and 2) for €59 million (versus an addition of €42 million in the third quarter of 2022), due to the transition to default of some loans, provisioning of proven risks for -€487 million (Stage 3, compared to -€377 million in the third quarter of 2022), the deterioration due to the increase in proven risk on retail banking and consumer finance, and lastly an addition of €1 million for other risks. The provisioning levels were determined by taking into account several weighted economic scenarios, as in previous quarters, and by applying adjustments on sensitive portfolios. The weighted economic scenarios for the second quarter were updated, with a favourable scenario (French GDP at +1% in 2023, +2.4% in 2024) and an unfavourable scenario (French GDP at +0.1% in 2023 and -0.1% in 2024). The cost of risk relative to outstandings on a four quarter rolling basis37 stood at 33 basis points, i.e. in line with the assumption of the Medium-Term Plan of 40 basis points and 33 basis points on an annualised quarterly basis38.
The underlying contribution of equity-accounted entities came to €50 million (-51.2% compared to the third quarter of 2022) and net income on other assets was €8 million (+€3 million compared to the third quarter of 2022); the changes in these two income statement categories were impacted by a scope effect with the line-by-line consolidation of CA Auto Bank (formerly
Underlying pre-tax income stood at €2,312 million, an increase of +17.2% compared to the third quarter of 2022.
The underlying effective tax rate was 24% and the underlying tax charge was -€544 million, stable compared to the third quarter of 2022. Net income from discontinued or held-for-sale operations was €2 million, down -€20 million compared to the third quarter of 2022.
Underlying net income before non-controlling interests increased by +21.6% to €1,770 million. Non-controlling interests amounted to -€250 million, up +13.9% year on year.
Underlying net income Group share was up by +23.0% compared to third quarter 2022 at €1,520 million.
Underlying earnings per share (pro-forma IFRS 17) in the third quarter of 2023 reached €0,46, increasing by +19.5% compared to the third quarter of 2022.
Crédit
m€ | 9M-23 stated | 9M-22 stated | ∆ 9M/9M stated | 9M-23 underlying | 9M-22 underlying | ∆ 9M/9M underlying | 9M-23 stated | 9M-22 stated |
Revenues | 19,140 | 16,525 | +15.8% | 18,542 | 16,394 | +13.1% | 19,140 | 16,525 |
Operating expenses excl.SRF | (9,922) | (9,383) | +5.8% | (9,904) | (9,293) | +6.6% | (9,922) | (9,383) |
SRF | (509) | (647) | (21.3%) | (509) | (647) | (21.3%) | (509) | (647) |
Gross operating income | 8,709 | 6,495 | +34.1% | 8,129 | 6,454 | +25.9% | 8,709 | 6,495 |
Cost of risk | (1,338) | (1,303) | +2.7% | (1,253) | (1,108) | +13.1% | (1,338) | (1,303) |
Equity-accounted entities | 136 | 291 | (53.1%) | 175 | 291 | (39.9%) | 136 | 291 |
Net income on other assets | 102 | 26 | x 3.9 | 13 | 26 | (48.7%) | 102 | 26 |
Change in value of goodwill | - | - | n.m. | - | - | n.m. | - | - |
Income before tax | 7,609 | 5,509 | +38.1% | 7,064 | 5,663 | +24.7% | 7,609 | 5,509 |
Tax | (1,832) | (1,483) | +23.5% | (1,682) | (1,473) | +14.2% | (1,832) | (1,483) |
Net income from discont'd or held-for-sale ope. | 7 | 147 | n.m. | 7 | 53 | n.m. | 7 | 147 |
Net income | 5,785 | 4,174 | +38.6% | 5,389 | 4,244 | +27.0% | 5,785 | 4,174 |
Non controlling interests | (771) | (651) | +18.5% | (769) | (664) | +15.8% | (771) | (651) |
Net income Group Share | 5,014 | 3,523 | +42.3% | 4,620 | 3,580 | +29.1% | 5,014 | 3,523 |
Earnings per share (€) | 1.53 | 1.08 | +41.7% | 1.40 | 1.10 | +27.4% | 1.53 | 1.08 |
Cost/Income ratio excl.SRF (%) | 51.8% | 56.8% | -4.9 pp | 53.4% | 56.7% | -3.3 pp | 51.8% | 56.8% |
Over the first nine months of 2023, stated net income Group share was €5,014 million, up +42.3% compared to the first nine months of 2022.
Specific items in the first nine months of 2023 had a positive impact of +€394 million on stated net income Group share, and comprise +€174 million in recurring accounting items and +€220 million in non-recurring items. The recurring items mainly correspond to the reversal of the home purchase savings provision for +€208 million, already mentioned above, as well as the accounting volatility items of the Large Customers division (the DVA for -€15 million and loan book hedging for -€19 million). The non-recurring items related to the reorganisation of the Mobility activities39 of the
Excluding specific items, underlying net income Group share reached €4,620 million, up +29.1% compared to the first nine months of 202240.
Underlying earnings per share stood at €1.4 per share for the first nine months 2023, up +27.4% compared to first nine months of 2022.
Underlying RoTE41, which is calculated on the basis of an annualised underlying net income Group share42 and IFRIC charges linearised over the year, net of annualised Additional Tier 1 coupons (return on equity Group share excluding intangibles) and restated for certain volatile items recognised in equity (including unrealised gains and/or losses), reached 13.5% for the first nine months of 2023, up 1 percentage point from the first nine months of 2022 (12.5%).
Underlying revenues were up +13.1% compared to the first nine months of 2022, driven by all of the business lines. Underlying operating expenses excluding SRF registered a limited increase of +6.6%. The cost/income ratio excluding SRF was 53.4%, an improvement of 3.3 percentage points compared to the first nine months of 2022. The SRF for the period came to -€509 million, a decrease of -21.3% compared to the first nine months of 2022. Underlying gross operating income totalled €8,129 million, up +25.9% compared to the first nine months of 2022. The cost of risk increased by +13.1% in the period, to -€1,253 million, versus --€1,108 million in the first nine months of 2022. Lastly, the results of the equity-accounted entities decreased by -39.9%, due to the line-by-line consolidation of CA Auto Bank since the second quarter of 2023.
Analysis of the activity and the results of Crédit Agricole S.A.’s divisions and business lines
Activity of the Asset Gathering division
In the third quarter of 2023, assets under management in the Asset Gathering (AG) division stood at €2,492 billion, up +0.4% compared to the end of
The Insurance activity (Crédit Agricole Assurances) generated third-quarter premium income of €7.0 billion, down -2.5% compared to third quarter 2022, with the rise in the premium income from Property & Casualty and Death & Disability/Creditor/Group insurance not compensating the drop in the premium income of savings/retirement. Premium income for the first nine months of 2023 came in at €27.7 billion, up +3.4% compared to first nine months 2022 at constant scope (excluding La Médicale).
In Savings/Retirement, premium income was €19.4 billion at end
Assets (savings, retirement and death and disability) stood at €324.3 billion, up year-on-year by +€6.2 billion, i.e. +2.0%. Unit-linked contracts stood at 27.6% of assets, up +2.8 percentage points year on year, buoyed by the successful marketing of unit-linked bond products and favourable financial markets.
Property and casualty insurance activity was dynamic, with premium income of €1.1 billion in the third quarter of 2023, up +8.9% compared to third quarter 2022. At the end of
In Death & Disability/Creditor/Group insurance, premium income for the third quarter of 2023 stood at €1.3 billion, up +10.9% from the third quarter of 2022, thanks to the strong growth of premium income in death & disability (up +21.8%) and group insurance. The premium income of creditor insurance was up by +7.5% between the third quarter of 2023 and third quarter 2022, driven by international single premiums (
The third quarter was marked by a context of risk aversion, with weak flows on the asset management market in
Assets under management reached €1,973 billion at
By customer segment, Retail recorded positive inflows of +€2.0 billion, marked as in previous quarters by a high level of risk aversion. These reflect high inflows in treasury products(+€2.7 billion) and, conversely, limited outflows in MLT assets46 (-€0.7 billion), and break down as follows by type of customer:
- Third-party distributors (+€2.1 billion) recorded strong activity in ETFs/index funds as well as treasury products;
- Partner networks excluding Amundi BOC WM (+€0.3 billion) continue to capitalise on the success of the structured products and Buy & Watch bond funds, and recorded a renewed interest in treasury products;
- in
China , Amundi BOC WM recorded net outflows (-€0.5 billion), as the confirmed ramp-up of the new fund offer was unable to offset the maturing term funds this quarter.
The Institutional segment recorded strong inflows, at +€9.3 billion, especially in MLT assets46(+€8.5 billion), including two large, low-margin mandates with institutional investors, one in equity index solutions and another one in bond solutions. On the other hand, CA & SG Insurers continued their redemptions (-€3.1billion), linked, as in previous quarters, to the withdrawals of traditional life insurance policies by their clients. Profit-taking in the Employee & Retirement Savings business (net outflows of -€0.9 billion) was also noteworthy, as employees of issuers whose shares had risen significantly in previous months sold their employee share ownership funds.
Lastly, the JVs47 recorded inflows of +€2.4 billion, thanks to the continued development of the Indian JV, SBI MF (+€2.0bn, of which +€3.4bn in MLT assets46) and the stabilisation of the Chinese JV ABC-CA (at breakeven overall, but with inflows of +€0.3bn excluding the planned run-off of assets for the Channel Business activity, which is being phased out and low margin); the other JVs also posted positive net inflows (+€0.4bn).
In Wealth management48, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €194.5 billion at the end of
Results of the Asset Gathering division
The 2023 data for the Insurance business line, and therefore the data for the Asset management and Savings business line, are compared with 2022 pro forma IFRS 17 data.
In the third quarter of 2023, Asset Gathering division generated revenues of €1,656 million, up +10.2% compared to the third quarter of 2022, with a very high level of revenues across all of the division’s business lines, in Insurance, Asset Management and Wealth Management. Costs excluding SRF were stable at +0.8%. Thus, the cost/income ratio excluding SRF stood at 43.4%, down -4.1 percentage points compared to the third quarter of 2022. Gross operating income stood at €937 million, up +18.8% compared to the third quarter of 2022. Taxes totalled -€221 million, up +4.5%. Net income Group share of Asset Gathering division stood at €621 million, up +2.3% compared to third quarter 2022 (+22.8% excluding the gain on the disposal of La Médicale booked in the third quarter of 2022 for +€101 million). Net income Group share increased between the third quarter of 2023 and the third quarter of 2022, across all of the division’s business lines: asset management (+5.2%), insurance (+0.6% at constant scope and +34.0% excluding the gain on the disposal of La Médicale booked in the third quarter of 2022) and wealth management (+10.3%).
Over the first nine months of 2023, Asset Gathering division generated revenues of €5,133 million, up +20.9% compared to the first nine months of 2022, with a positive contribution driven by all business lines. Costs excluding SRF were stable (+0.5%). As a result, the cost/income ratio excluding SRF stood at 41.8%, down
-8.5 percentage points compared to the first nine months of 2022. Gross operating income stood at €2,979 million, an increase of +41.9% compared to the first nine months of 2022. Taxes totalled -€699 million, up +30.1%. The net income Group share of the Asset Gathering division stood at €1,996 million, up by +39.8% compared to first nine months 2022, for all the division’s business lines: asset management (+10.3%), insurance (+57.7%) and wealth management (+43.0%).
Over the first nine months of 2023, the Asset Gathering division contributed by 38% to the underlying net income Group share of the Crédit Agricole S.A. core businesses (excluding Corporate Centre division) and 27% to underlying revenues excluding the Corporate Centre division.
As at
The underlying RoNE (return on normalised equity) stood at 24.2% at
Insurance results
In third quarter 2023, insurance revenues amounted to €643 million, up +19.4% from third quarter 2022 proforma IFRS 17.
This quarter’s revenues were made up in particular of savings/retirement (€398 million)49, personal protection (€136 million)50 and property and casualty insurance (€72 million)51.
Gross operating income came to €562 million and tax to -€131 million. As a result, the net income Group share was €411 million, up +0.6% compared to the third quarter of 2022. Excluding the gain on La Médicale of +€101 million recorded in third quarter 2022, net income Group share was up +34%.
The contractual service margin (CSM) was €23.2 billion at
Revenues from insurance in the first nine months of 2023 amounted to €2,022 million, up +56.9% compared with the first nine months of 2022, and up +17.5% under the IFRS 1752 run rate, mainly due to a base effect in 2022 (investment management decisions implemented at the end of 2022, i.e. segregation of equity and desensitisation of the portfolio, were not taken into account in the IFRS 17 pro-forma), a decline in the markets in 2022, and a high level of weather-related claims in the second quarter of 2022. Gross operating income was up +68.5% compared to the first nine months of 2022. Finally, the tax charge for the first nine months of 2023 rose by +42.0%. In all, net income Group share reached €1,318 million, up by +57.7% compared to the first nine months of 2022.
Insurance contributed by 25% to the underlying net income Group share of the Crédit Agricole S.A. core businesses (excluding the Corporate Centre division) at end
Asset management results
In the third quarter of 2023, revenues totalled €760 million, up +3.0% compared with the third quarter of 2022, thanks to the good resilience of fee and commission income and the return to positive financial results, despite a low level of performance fees. Operating expenses excl. SRF were particularly well under control at -€433 million, stable compared to the third quarter of 2022. As a result, the cost/income ratio excluding SRF was 57.0%. Gross operating income increased by +7.0% compared to the third quarter of 2022. The contribution from equity-accounted entities, comprising the contribution from the Amundi joint ventures, stood at €24 million, up +2.0% from the third quarter of 2022, while the tax charge amounted to -€80 million, up +7.5%. Lastly, net income Group share increased by +5.2% to €178 million.
Over the first nine months of 2023, revenues increased by +2.2% in asset management, driven, like for the quarter, by net financial and other income (€49 million vs. -€40 million over the first nine months of 2022) and the revenues of Amundi Technology (+€25.8% at €42 million); net management fees were down slightly but not as much as average assets under management excluding JVs, at -1.3% vs. -1.9%, reflecting resilient margins thanks to a favourable client mix; performance fees dropped more significantly, however, by -17.2% (€89 million vs. €108 million), reflecting the cautious investment policy for risky assets.
Operating expenses excluding SRF rose by +1.6%, excluding the impact of Lyxor integration costs recorded in the first nine months of 2022 (-€59 million before tax). The cost/income ratio excluding SRF stood at 55.8%, down -2.9 percentage points compared to the first nine months of 2022. As a result, gross operating income was up +9.6% compared to the first nine months of 2022. The net income of equity-accounted entities increased by +13.9%. All in all, net income Group share stood at €566 million, an increase of +10.3%.
Asset management contributed 11% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses. (excluding the Corporate Centre division) at end
Wealth management results53
Revenues from wealth management amounted to €253 million in the third quarter of 2023, up +12.1% from the third quarter of 2022, boosted by the rise in interest rates, which had a positive impact on the interest margin, which increased by +33% between the third quarter of 2023 and the third quarter of 2022. Costs excluding SRF amounted to €204 million, up +7.1%, primarily impacted by the rise in employee expenses. The cost/income ratio fell by -3.8 percentage points over three months to 80.5%. Gross operating income, excluding SRF, rose +38.9% to €49 million. Net income Group share amounted to €32 million, up +10.3% compared to the third quarter of 2022.
Over the first nine months of 2023, wealth management’s revenues rose sharply by +15.5% compared the first nine months of 2022, to reach €776 million. Costs excluding SRF were up +7.1%. Gross operating income was therefore up +63.2% at €165 million. Thus, net income Group share increased by +43.0% to €112 million for the first nine months of 2023.
Wealth management contributed 2% of Crédit Agricole S.A.’s business lines underlying net income Group share. (excluding the Corporate Centre division) at end
Activity of the Large Customers division
Corporate and Investment banking (CIB) confirmed its momentum in third quarter 2023, while for asset servicing, the quarter was marked by the consolidation of RBC IS Europe.
Underlying revenues54 from Corporate and Investment banking (CIB) were up +9.2% compared to the third quarter of 2022 to stand at €1,415 million. This increase was driven by Capital Markets and Investment Banking, with underlying revenues of €660 million, up +26.8% compared with the third quarter of 2022, thanks to the very good results for FICC (+25.6% over the period) boosted in particular by an excellent performance for structured products and securitisation, against a backdrop of rising interest rates. In investment banking, the third quarter was marked by a lacklustre M&A market offset by a good structured equities activity. Underlying revenues from Financing activities were down -2.7% compared to the third quarter of 2022 to stand at €755 million. The good performance of structured finance (+2.4% compared with third quarter 2022), notably for project and infrastructure financing, did not offset the decline of commercial banking (-5.3% vs. third quarter 2022) in the Corporate & Leverage Finance activity, and despite the strong
In Asset servicing (
In the third quarter 2023 assets under custody and assets under administration rose by +5.7% and +42.7%, respectively, compared with the second quarter of 2023, thanks to the consolidation of ISB’s assets58 and the commercial momentum, despite a negative market effect in the quarter. Assets under custody were up +13.6% at end
Results of the Large Customers division
In the third quarter of 2023, the revenues of the Large Customers division reached €1,888 million, up sharply by +17.4% compared to the third quarter of 2022, thanks to the effect of the consolidation of ISB58,59 in Asset servicing and a very good performance of Corporate and Investment banking driven by capital markets and investment banking. Operating expenses excluding SRF were +16.5% higher than in the third quarter of 2022, with the impact of the consolidation of ISB58,59, as well as employee expenses and IT investments supporting the development of the business lines. As a result, the division’s gross operating income was up sharply on the third quarter of 2022, at €748 million. The division recorded an overall net addition to the cost of risk provision of -€13 million in the third quarter of 2023, compared to an addition of -€34 million in the third quarter of 2022, and including a +€2 million reversal of provisions related to the war in
In the first nine months of 2023, the revenues of the Large Customers division amounted to €5,844 million, or +10.3% compared to the first nine months of 2022. Operating expenses excluding SRF rose +13.5% compared to first nine months 2022 to €3,298 million, largely related to employee expenses and IT investments as well as the impact of the consolidation of ISB58,59. SRF expenses were down sharply by -29.4% compared to the first nine months of 2022. Gross operating income for the first nine months of 2023 totalled €2,234 million, representing an increase of +14.3% compared to the first nine months of 2022. The cost of risk ended first nine months 2023 with a net provision of -€81 million compared to a net provision of -€236 million at first nine months 2022, which included the impact of the
The division contributed 29% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end
At
Underlying RoNE (return on normalised equity) stood at 15.1% at end
Corporate and Investment banking results
In third quarter 2023, Corporate and Investment banking revenues stood at €1,415 million, up +9.2% from third quarter 2022, growth driven by Capital Markets and Investment Banking. Operating expenses excluding SRF rose by +5.6% to -€806 million, mainly related to human resources and IT investments to support the business lines, and the adjustment of variable compensation in line with the performance of the activity. Gross operating income was up strongly by +14.5% compared to the third quarter of 2022 and reached €609 million. The cost/income ratio excluding SRF was 57.0%, i.e. a favourable change of -2.0 percentage points over the period. The cost of risk recorded a moderate net addition of -€14 million compared to an addition of -€32 million in the third quarter of 2022. Lastly, pre-tax income in the third quarter of 2023 stood at €596 million, versus €501 million in the third quarter 2022. The tax charge was -€181 million. All in all, net income Group share was €405 million in third quarter 2023, a sharp increase of +13.0% compared to the third quarter of 2022.
In the first nine months of 2023, revenues rose +6.3% compared the first nine months of 2022, to €4,641 million, the highest nine-month level ever. Expenses excluding SRF rose +11.3%, mainly due to staff costs and the continuing adjustment of variable compensation to activity, and IT costs to support the development of the business lines. The contribution to the SRF fell significantly by -29.5% to -€271 million in the first nine months of 2023. Thus, gross operating income at €1,874 million was up sharply (+7.9% compared to the first nine months of 2022). The cost of risk recorded a provision of -€80 million at first nine months 2023, compared with -€236 million at first nine months 2022, which included the conservative provisioning of Russian exposures (provision of -€346 million on performing loans in
Risk weighted assets at end
Asset servicing results
In third quarter 2023, the revenues of asset servicing were up a strong +51.5% compared to third quarter 2022, rising to €472 million. This growth was mainly due to the impact of the consolidation of ISB60,61; it was driven both by the net interest margin, which increased by +67.3% over the period, and fee and commission income, which increased by +41.4% over the period. Operating expenses excluding SRF increased by +55.8% to -€333 million. They also reflect the impact of the consolidation of ISB60,61 and include -€5 million in integration costs relative to the acquisition of ISB. As a result, gross operating income rose strongly (+42.2%) in the third quarter of 2023 to €139 million. The cost/income ratio excluding SRF thus came to 70.6% (69.5% excluding ISB integration costs), an unfavourable change of +0.9 percentage points compared to the third quarter of 2022. The quarter also recorded €5 million in income from equity-accounted entities. The latter figure now includes the contribution of Uptevia since the first quarter of 2023. Net income thus totalled €122 million, up +54.1% compared to the third quarter of 2022. Adjusted for the €38 million share of non-controlling interests, the business line’s contribution to net income Group share totalled €83 million in the third quarter of 2023, up by +55.1% compared to the third quarter of 2022.
Revenues for the first nine months of 2023 were up +28.4% compared with the first nine months of 2022, impacted by the consolidation of ISB60,61, the strong commercial momentum and net interest income, which rose by +91.1% over the period. Expenses excluding SRF were up +21.3%, and include -€14.5 million in integration costs relating to the acquisition of ISB60,61, while SRF costs fell sharply by -28.3%. This resulted in a very strong +64.9% increase in gross operating income compared to the first nine months of 2022. Net income was thus up by +67.5%. The overall contribution of the business line to net income Group share in the first nine months of 2023 was €202 million, a +69.1% increase compared to the first nine months of 2022.
The full consolidation of ISB60 is planned by the end of 2025 with customer migrations and the legal mergers of the entities scheduled for 2024. The additional net income62 expected in 2026 is more than €100m.
Specialised financial services activity
In the third quarter of 2023, commercial production at Crédit Agricole Consumer Finance (CACF) totalled €11.6 billion, a -2.1% decrease over the third quarter of 2022, reflecting greater selectivity of clients, while business remained strong in the Automotive channel63 (+6.7%). Over a cumulative period, production was up by +7% at end
As a reminder, key developments for the Consumer finance activity include the implementation of the agreement between CACF and Stellantis, which took effect at the start of
At the beginning of
Crédit Agricole Leasing and Factoring (CAL&F)’s commercial production in factoring was very high in third quarter 2023, at x2.6 compared to third quarter 2022, with strong momentum in
The revenues of
Over the first nine months of 2023, the revenues of
The business line contributed 9% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding Corporate Centre division) in the first nine months of 2023 and 13% to underlying revenues excluding Corporate Centre division.
At
Underlying RoNE (return on normalised equity) stood at 9.8% at
Consumer finance results
The business line’s results for the third quarter of 2023 were in line with second quarter 2023, favourably impacted by the execution of the agreement between CACF and Stellantis and the reorganisation of CACF’s Mobility activities64, in effect since
In the first nine months of 2023, the specific items affecting consumer finance were concentrated mainly in the second quarter, and to a lesser extent in the third quarter, with the reorganisation of CACF’s Mobility activities. The impacts are identical to those mentioned above and concern the reorganisation of consumer finance Mobility activities. Stated revenues amounted to €2,199 million (+37.7%). Adjusted for specific items, revenues totalled €1,899 million, an increase of +18.9% compared with the first nine months of 2022. Stated costs excluding SRF amounted to €942 million (+15.3%). Adjusted for specific items, costs were up +13% compared with the first nine months of 2022. The contribution to the SRF was -€13 million (-17.7% compared with the first nine months of 2022). The cost/income ratio excluding specific items and SRF fell to 48.6%, remaining at a low level. This resulted in a +26% increase in underlying gross operating income compared with the first nine months of 2022. The stated cost of risk totalled -€638 million (+78.1%). Adjusted for specific items, the cost of risk increased by 54.5% to -€553 million compared with the first nine months of 2022. The stated contribution of equity-accounted entities was €93 million, down by -61.4%. Adjusted for specific items, it fell by -45.3% to €131 million. Stated income on other assets amounted to €80 million. This line is mainly composed of specific items. Excluding these items, underlying net income on other assets stood at -€8 million. Finally, net income Group share for the first nine months of 2023 totalled €507 million (+14.3%). Adjusted for specific items, it came to €349 million, a decrease of -21.5%.
Leasing & Factoring results
Revenues totalled €177 million, up +12.8% compared with the third quarter 2022, mainly driven by factoring volumes and prices. Of note, leasing revenues continued to stabilise over the quarter. Expenses excluding SRF rose by +€4 million (+5.5%), primarily outside
In the first nine months of 2023, revenues totalled €518 million, a +9.1% increase compared with the first nine months of 2022. Costs excluding SRF increased by +5.7% to €282 million. The SRF contribution came to -€15 million in 2023 (-15.0% compared with 2022). Gross operating income rose sharply to €221 million, a +16.2% increase compared with the first nine months of 2022. The underlying cost/income ratio excluding SRF amounted to 54.4%, an improvement of 1.8 percentage points compared with the first nine months of 2022. Cost of risk rose during the period (+63.8%). The business line’s contribution to underlying net income Group share was €127 million, up +2.2% compared with the first nine months of 2022.
Crédit Agricole S.A. Retail Banking activity
In Crédit Agricole S.A.’s Retail Banking business, loan production reflected the market trend and continued to slow amid rising interest rates, particularly at LCL. However, customer capture remained buoyant, with a high number of customers taking out insurance policies.
Retail banking activity in
For French Retail Banking, loan production at LCL continued to slow in the third quarter of 2023 and stood at €6.8 billion, down -39.5% compared with the third quarter of 2022, in line with the overall slowdown in the market linked to the tightening of monetary conditions and with a base effect linked to a great level of production in 2022. In the Small Businesses market, production was down -29.4% compared with the third quarter of 2022, -28.5% in the Corporates market and -51.1% in the Home Loans market, against a backdrop of a slowdown in the French market (-44.3% in home loan production according to the Banque de
In the third quarter 2023, gross customer capture stood at 81,600 new customers and net customer capture came in at 14,600 customers. The equipment rate for car, multi-risk home, health, legal, all mobile phones or personal accident insurance rose year-on-year by +0.5 percentage points compared to the third quarter of 2022 to stand at 27.6% at end
Retail banking activity in
The business of CA Italy, the retail bank in
In parallel, loan outstandings at CA Italy stood at €59.572 billion at end
Finally, customer savings stood at €113.2 billion at end
Crédit Agricole Group activity in
Underlying revenues of the Italian entities rose by 22% compared with the first nine months of 2022, mainly due to the strength of the net interest margin of CA Italy. Lastly, Italy’s contribution to Crédit Agricole S.A.’s results in the first nine months of 2023 amounted to €895 million, an improvement of +30% compared with the first nine months of 2022.
International Retail Banking activity excluding
The scope of this division at end
For International Retail Banking excluding
The International Retail Banking business excluding
At constant exchange rates, in
The surplus of deposits for loans in
As at
As at
French retail banking results
In the third quarter of 2023, LCL’s revenues were up +5.9% compared with the third quarter 2022, at €996 million77. Excluding the reversal of the home purchase savings provision, revenues remained stable at +0.4% compared with the third quarter 2022, at €944 million. Net interest margin, excluding the reversal of the home purchase savings provision, was slightly up from the third quarter 2022 (+0.7%), but rose +6.5% on the previous quarter. This was due to higher lending yields following the steady rise in average rate of loans on the asset side, as well as macro-hedging gains, but continued to be penalised by the increase in customer funding and refinancing costs. This quarter, fee and commission income also remained stable (+0.2%) across all services. Expenses excluding SRF were kept under control at -€589 million, a slight increase of +3.0% compared with the third quarter 2022 due to higher staff costs (revaluation). The cost/income ratio excluding SRF fell by 1.7 percentage points to 59.1% and remains at a low level. Gross operating income rose by 10.5% to €407 million. Cost of risk continued to normalise, rising by +29.4% compared with the third quarter 2022 to -€70 million (stable compared with the second quarter 2023). The cost of credit risk on outstandings78 stood at 17 basis points. The coverage ratio stood at 62.0% at the end of June, down -0.8 percentage points this quarter compared to the end of
In the first nine months of 2023, LCL’s revenues fell by -1.5% compared with the first nine months of 2022, to €2,891 million. This was due to the contraction in the net interest margin (-8.1%) against a backdrop of higher refinancing and funding costs, but with an increase in fee and commission income (+5.9%), particularly for life and property and casualty insurance and payment instruments. Expenses excluding SFR were stable (+0.1%) and the cost/income ratio excluding SFR remained under control (+1.0 percentage point) at 60.2%. As a result, gross operating income fell by -2.0% and the cost of risk rose by +29.2%. All in all, the business line’s contribution to net income Group share stood at €673 million and was down -4.0%.
In the end, the business line contributed 12% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) in the first nine months of 2023 and 15% to underlying revenues excluding the Corporate Centre.
LCL’s underlying return on normalised equity (RoNE) stood at 15.9% on
International Retail Banking results79
In the third quarter of 2023, International Retail Banking revenues totalled €1,024 million, up +27.3% (+32.1% at constant exchange rates) compared with the third quarter of 2022, driven mainly by the rise in the net interest margin against a backdrop of rising interest rates. Operating expenses remained under control despite the inflationary environment, coming in at -€504 million, or +3.7% compared with the third quarter 2022, +5.6% at constant exchange rates. As a result, gross operating income amounted to €520 million, an increase of +63.3% (+75% at constant exchange rates) compared to the third quarter of 2022. Cost of risk reached -€121 million, stable compared with the third quarter 2022. Net income Group share of International Retail Banking was €225 million, double the amount in the third quarter 2022 (x1.2 at constant exchange rates).
For the first nine months of 2023, International Retail Banking revenues rose by +23.8% to €2,975 million (+17.6% at constant exchange rates). Costs excluding SRF were under control at -€1,531 million, stable as compared to the first nine months of 2022 at current (+1.1%) and constant (+0.5%) exchange rates. These benefited from a base effect with Creval integration costs adjusted to underlying in 2022 for €30 million. Gross operating income totalled €1,444 million, up +62.1% (+43.5% at constant exchange rates). Cost of risk fell by -29.1% to -€362 million compared with the first nine months of 2022. This was mainly due to the conservative provisioning for
In the first nine months of 2023, the International Retail Banking business line contributed 12% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre) and 15% to underlying revenues excluding the Corporate Centre.
Italian retail banking results
In the third quarter 2023, Crédit Agricole Italia revenues stood at €783 million, up +26.8% compared with the third quarter 2022. Higher interest rates continued to shore up net interest margin, which had a positive impact on the average rate of loans on the asset side (+34 basis points compared with the second quarter 2023). However, net interest margin for the third quarter 2023 was on a par with the second quarter 2023. Operating expenses excluding SRF rose +4.8% compared with the third quarter 2022 to -€394 million, driven by staff costs. Gross operating income increased significantly (+60.9%) compared with the third quarter 2022 to stand at €389 million. The cost of risk amounted to -€84 million in the third quarter, up +35.7% compared to the third quarter of 2022, including -€74 million for proven risk and -€7 million in provisioning for performing loans. Cost of risk on outstandings81 stood at 60 basis points82, up 3 basis points compared to the second quarter of 2023. The Non Performing Loans ratio was 3.6%, up slightly from the second quarter 2023 (+0.1 percentage point). The coverage ratio stands at 69.4% (+1.7 percentage point compared with the second quarter 2023). Net income Group share for CA Italy was €166 million, up +64.8% compared to the third quarter of 2022.
In the first nine months of 2023, revenues for Crédit Agricole Italia rose by +23.9% to €2,304 million. Operating expenses excluding SRF were under control at €1,163 million, stable compared with the first nine months of 2022, and up +4.2% once adjusted for the Creval integration costs of -€30 million recorded in 2022. Gross operating income stood at €1,101 million, an increase of +63.3% compared with the first nine months of 2022 (+56.3% after adjustment for the Creval integration costs in 2022). Cost of risk rose by +29.2% to -€234 million, mainly due to the increase in provisions for performing loans (+€46 million). As a result, net income Group share of CA Italy totalled €476 million, an increase of +68.4% compared with the first nine months of 2022.
CA Italy’s underlying RoNE (return on normalised equity) was 21.6% at
International Retail Banking results – excluding
In the third quarter of 2023, revenues for International Retail Banking excluding
In the first nine months of 2023, revenues for International Retail Banking excluding
The underlying RoNE (return on normalised equity) of International Retail Banking excluding
Corporate Centre results
The “internal margins” effect at the time of the consolidation of the insurance activities at the Crédit Agricole level was accounted through the Corporate Centre, contributing to a further reduction in the cost/income ratio of Crédit Agricole S.A. The quarterly impact of internal margins was -€211 million for revenues and +€211 million for expenses; the impact for the first nine months of 2023 was -€607 million for revenues and +€607 million for expenses.
The underlying net income Group share of the Corporate Centre was -€55 million in the third quarter 2023, up +€191 million on the third quarter 2022. The contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€24 million) and other items (-€31 million).
The “structural” component contribution rose by +€275 million compared to the third quarter 2022 and can be broken down into three types of activities:
- The activities and functions of the Corporate Centre of the Crédit Agricole S.A. corporate entity. This contribution amounted to -€64 million in the third quarter 2023, up +€251 million, including a favourable impact of +€171 million due to the reversal of the home purchase savings provision.
- The businesses that are not part of the business lines, such as CACIF (Private equity), CA Immobilier and BforBank (equity-accounted). Their contribution was +€37 million in the third quarter 2023, up +€30 million, benefiting from the favourable impact of the revaluation of Banco BPM securities (+€34 million with a price of €4.535 at
30 September 2023 , +6% compared with 30 June 2023). - Group support functions. Their contribution amounted to +€4 million this quarter (-€5 million compared with the third quarter 2022).
The contribution of “other items” was down by -€85 million from the third quarter 2022, due to negative impacts related to inflation seasonality and OIS/BOR volatility this quarter.
Over the first nine months of 2023, underlying net income Group share of the Corporate Centre division was -€375 million, up €133 million compared to the first nine months of 2022. The structural component contributed -€480 million and other items of the division recorded a positive contribution of +€105 million over the first nine months of 2023.
The “structural” component contribution rose by +€236 million compared with the first nine months of 2022 and can be broken down into three types of activities:
- The activities and functions of the Corporate Centre of the Crédit Agricole S.A. corporate entity. This contribution amounted to -€681 million, an increase of +€91 million compared with the first nine months of 2022, taking into account the reversal of the home purchase savings provision of +€171 million.
- The businesses that are not part of the business lines, such as CACIF (Private equity) and CA Immobilier and BforBank: their contribution of +€188 million was +€149 million higher than in the first nine months of 2022.
- Group support functions: their contribution was +€12 million, down -€4 million compared with the contribution in the first nine months of 2022.
The contribution of “other items” stood at €105 million, down -€104 million compared with the first nine months of 2022.
At
* *
*
Financial strength
Crédit Agricole Group
At
During the third quarter 2023:
- The anticipation in the third quarter 2023 of the impact of the purchase of Crédit Agricole S.A. shares by SAS Rue La Boétie by
30 June 2024 reduced the CET1 ratio by -17 basis points. - The CET1 ratio benefited from an impact of +31 basis points related to retained earnings, which exceeds the organic growth of the business lines,
- Changes in risk weighted assets related to business line organic growth impacted the Group’s CET1 ratio by -22 basis points, which corresponds to an increase in the business lines’ risk weighted assets (of which +€2.1 billion for the Regional Banks),
The phased-in Tier 1 ratio stood at 18.7% while the phased-in total ratio was 21.5% at end
The phased-in leverage ratio stood at 5.6%, well above the regulatory requirement of 3.5%. In addition to the minimum requirement of 3% in effect since
Risk weighted assets for the Crédit Agricole Group amounted to €605.5 billion, up by +€9.6 billion compared to
Maximum Distributable Amount (MDA and L-MDA) trigger thresholds
The transposition of
The distance to the MDA trigger is the lowest of the respective distances to the SREP requirements in CET1 capital, Tier 1 capital and total capital.
At
At
Failure to comply with the leverage ratio buffer requirement would result in a restriction of distributions and the calculation of a maximum distributable amount (L-MDA).
At
TLAC
The TLAC ratio requirement was transposed into
- a TLAC ratio above 18% of risk weighted assets (RWA), plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for the Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer and the counter-cyclical buffer set at 0.43% for the
CA Group at 30/09/23). Considering the combined capital buffer requirement, the Crédit Agricole Group must adhere to a TLAC ratio of above 21.9%; - a TLAC ratio of above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s 2025 target is to maintain a TLAC ratio greater than or equal to 26% of RWA excluding eligible senior preferred debt.
At
The Group thus has a TLAC ratio excluding eligible senior preferred debt that is 520 bps, i.e. €31 billion, higher than the current requirement of 21.9% of RWA.
As of
MREL
The required minimum levels are set by decisions of resolution authorities and then communicated to each institution, then revised periodically. Since
- 21.04% of RWA, plus – in accordance with EU directive CRD 5 – a combined capital buffer requirement (including, for the Crédit Agricole Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer and the counter-cyclical buffer set at 0.43% for the
CA Group at 30/09/23). Considering the combined capital buffer requirement, the Crédit Agricole Group must adhere to a total MREL ratio of above 25.0%; - 6.02% of the LRE.
At
An additional subordination requirement to TLAC (“subordinated MREL”) is also determined by the resolution authorities and expressed as a percentage of RWA and LRE, in which senior debt instruments are excluded, similar to TLAC, which ratio is equivalent to the subordinated MREL for the Crédit Agricole Group. Since
The distance to the maximum distributable amount trigger related to MREL requirements (M-MDA) is the lowest of the respective distances to the MREL, subordinated MREL and TLAC requirements expressed in RWA.
At
Crédit Agricole S.A.
At
- The CET1 ratio benefited this quarter from a positive impact of +20 basis points linked to retained earnings. This impact corresponds to net income Group share net of AT1 coupons and the distribution of 50% of income, i.e. a provision for dividends of €0.26 per share for the third quarter of 2023, and a provision for dividends of €0.76 per share for first nine months of 2023,
- The change in risk weighted assets due to organic growth in the business lines impacted the CET1 ratio by -15 basis points. This included an increase of +€4.9 billion in the risk weighted assets of the business lines, concentrated in the Large Customers division for +€2.1 billion (partly linked to an unfavourable EUR/USD foreign exchange impact), in the retail Banks division for +€1.5 billion (namely in
France andItaly ) and in insurance for €1.4 billion with the increase in the equity-accounted value88 due to third-quarter retained earnings. - Methodology and regulatory effects, which boosted the CET1 ratio by 16 basis points, mainly concern the change in the regulatory treatment of insurance goodwill under EBA FAQ, which allows the direct deduction of goodwill associated with indirect holdings. This change in method has an impact of +15 basis points.
- Finally, mergers and acquisitions reduced the CET1 ratio by -4 basis points, with the acquisition of RBC IS for -7 basis points and
LeasePlan for -6 basis points. This was partially offset by the inclusion this quarter of CA Auto Bank’s synthetic securitisation for +11 basis points. - OCI and other items had an impact of +4 basis points on the CET1 ratio.
The phased-in leverage ratio was 4.0% at end
The phased-in Tier 1 ratio stood at 13.7% and the phased-in total ratio at 17.9% this quarter.
Risk weighted assets for the Crédit Agricole S.A. amounted to €383.9 billion at end of
Liquidity and Funding
Liquidity is measured at Crédit Agricole Group level.
In order to provide simple, relevant and auditable information on the Group’s liquidity position, the banking cash balance sheet’s stable resources surplus is calculated quarterly.
The banking cash balance sheet is derived from Crédit Agricole Group’s IFRS financial statements. It is based on the definition of a mapping table between the Group’s IFRS financial statements and the sections of the cash balance sheet and whose definition is commonly accepted in the marketplace. It relates to the banking scope, with insurance activities being managed in accordance with their own specific regulatory constraints.
Further to the breakdown of the IFRS financial statements in the sections of the cash balance sheet, netting calculations are carried out. They relate to certain assets and liabilities that have a symmetrical impact in terms of liquidity risk. Deferred taxes, fair value impacts, collective impairments, short-selling transactions and other assets and liabilities were netted for a total of €36 billion at end September 2023. Similarly, €140 billion in repos/reverse repos were eliminated insofar as these outstandings reflect the activity of the securities desk carrying out securities borrowing and lending operations that offset each other. Other nettings calculated in order to build the cash balance sheet – for an amount totalling €202 billion at end
Note that deposits centralised with Caisse des Dépôts et Consignations are not netted in order to build the cash balance sheet; the amount of centralised deposits (€93 billion at end
In a final stage, other restatements reassign outstandings that accounting standards allocate to one section, when they are economically related to another. As such, Senior issuances placed through the banking networks as well as financing by the
Note that for
Medium to long-term repurchase agreements are also included in “Long-term market funds”.
Finally, the CIB’s counterparties that are banks with which we have a commercial relationship are considered as customers in the construction of the cash balance sheet.
Standing at €1,658 billion at
Total TLTRO 3 outstandings for Crédit Agricole Group amounted to €37.6 billion89 at
Furthermore, given the excess liquidity, the Group remained in a short-term lending position at
Medium-to-long-term market resources were €262 billion at
They included senior secured debt of €106 billion, senior preferred debt of €104 billion, senior non-preferred debt of €30 billion and Tier 2 securities amounting to €22 billion.
The Group’s liquidity reserves, at market value and after haircuts, amounted to €419 billion at
They covered short-term net debt more than two times over (excluding the replacements with Central Banks).
This increase in liquidity reserves is mainly explained by the increase in customer inflows and the implementation of the Medium-Long Term Financing Plan.
Crédit Agricole Group also continued its efforts to maintain immediately available reserves (after recourse to
Credit institutions are subject to a threshold for the LCR ratio, set at 100% on
At
In addition, the NSFR of Crédit Agricole Group and Crédit Agricole S.A. exceeded 100%, in accordance with the regulatory requirement applicable since
The Group continues to follow a prudent policy as regards medium-to-long-term refinancing, with a very diversified access to markets in terms of investor base and products.
At
- Crédit Agricole CIB issued €14 billion in structured format;
- Crédit Agricole Consumer Finance issued €5.8 billion in the form of ABS securitisations and €1.9 billion equivalent in MTN issues through Crédit Agricole Auto Bank (CAAB);
- Crédit Agricole Assurances issued a 10-year Tier 2 for €500 million and made an offer to buy back two perpetual subordinated issues (FR0012444750 & FR0012222297) for €500 million in October.
The Group’s medium-to-long-term financing can be broken down into the following categories:
- €15.6 billion in secured financing;
- €19.4 billion in plain-vanilla unsecured financing;
- €14.5 billion in structured financing;
- €7.1 billion in long-term institutional deposits and CDs.
In addition, €16.9 billion was raised through off-market issuances, split as follows:
- €12.2 billion from banking networks (the Group’s retail banking or external networks);
- €3.3 billion from supranational organisations or financial institutions;
- €1.4 billion from national refinancing vehicles (including the credit institution CRH).
At
The bank raised the equivalent of €24.8 billion, of which €3.5 billion in senior non-preferred debt, €1.7 billion in Tier 2 debt, €12.1 billion in senior preferred debt and €7.5 billion in senior secured debt. The financing comprised a variety of formats and currencies:
- €7.3 billion95;
5.85 billion US dollars (€5.5 billion equivalent);1.3 billion pounds sterling (€1.4 billion equivalent);177 billion Japanese yen 96 (€1.2 billion equivalent);0.6 billion Swiss francs (€0.7 billion equivalent);0.9 billion Australian dollars (€0.6 billion equivalent);0.9 billion Singapore dollars (€0.6 billion equivalent);- 1.0 billion
Hong-Kong dollars (€0.1 billion equivalent); - 1.0 billion Chinese Yuan (€0.1 billion equivalent).
Since the beginning of the year, Crédit Agricole S.A. MLT issued 58% of its refinancing in currencies other than EUR97,98.
Note that on
At
Appendix 1 – Specific items, Crédit Agricole Group and Crédit Agricole S.A.
Crédit Agricole Group : Specific items, Q3-23, Q3-22, 9M-23 et 9M-22
Q3-23 | Q3-22 | 9M-23 | 9M-22 | |||||||
€m | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | ||
DVA (LC) | 2 | 2 | 14 | 10 | (21) | (15) | 5 | 4 | ||
Loan portfolio hedges (LC) | (2) | (1) | (14) | (11) | (26) | (19) | 59 | 44 | ||
Home Purchase Savings Plans (LCL) | 52 | 38 | - | - | 52 | 38 | 34 | 26 | ||
Home Purchase Savings Plans (CC) | 230 | 171 | - | - | 230 | 171 | 53 | 39 | ||
Home Purchase Savings Plans (RB) | 118 | 88 | - | - | 118 | 88 | 412 | 306 | ||
Reclassification of held-for-sale operations - NBI (IRB) | - | - | - | - | - | - | 0 | 0 | ||
Mobility activities reorganisation (SFS) | 1 | 0 | - | - | 300 | 214 | - | - | ||
Exceptional provisionning on moratoria | - | - | (21) | (17) | - | - | (21) | (17) | ||
Check Image Exchange penalty (CC) | - | - | - | - | 42 | 42 | - | - | ||
Check Image Exchange penalty (LCL) | - | - | - | - | 21 | 21 | - | - | ||
Check Image Exchange penalty (RB) | - | - | - | - | 42 | 42 | - | - | ||
Total impact on revenues | 402 | 298 | (22) | (17) | 758 | 581 | 543 | 401 | ||
Creval integration costs (IRB) | - | - | - | - | - | - | (30) | (18) | ||
Lyxor integration costs (AG) | - | - | (9) | (4) | - | - | (59) | (31) | ||
Mobility activities reorganisation (SFS) | - | - | - | - | (18) | (13) | - | - | ||
Total impact on operating expenses | - | - | (9) | (4) | (18) | (13) | (90) | (49) | ||
Mobility activities reorganisation (SFS) | - | - | - | - | (85) | (61) | - | - | ||
Provision for own equity risk | - | - | - | - | - | - | (195) | (195) | ||
Total impact on cost of credit risk | - | - | - | - | (85) | (61) | (195) | (195) | ||
Mobility activities reorganisation (SFS) | (26) | (26) | - | - | (39) | (39) | - | - | ||
Total impact equity-accounted entities | (26) | (26) | - | - | (39) | (39) | - | - | ||
Mobility activities reorganisation (SFS) | 61 | 45 | - | - | 89 | 57 | - | - | ||
Total impact on Net income on other assets | 61 | 45 | - | - | 89 | 57 | - | - | ||
Capital gain La Médicale (GEA) | - | - | 101 | 101 | - | - | 101 | 101 | ||
Reclassification of held-for-sale operations (IRB) | - | - | - | - | - | - | (7) | (10) | ||
Total impact on Net income from discounted or held-for-sale operations | - | - | 101 | 101 | - | - | 94 | 91 | ||
Total impact of specific items | 436 | 317 | 71 | 79 | 705 | 525 | 352 | 248 | ||
Asset gathering | - | - | 92 | 97 | - | - | 42 | 70 | ||
French Retail banking | 170 | 126 | - | 233 | 189 | 446 | 331 | |||
International Retail banking | - | - | (21) | (17) | - | - | (253) | (240) | ||
Specialised financial services | 35 | 19 | - | - | 247 | 159 | - | - | ||
Large customers | 1 | 0 | (1) | (0) | (47) | (35) | 64 | 48 | ||
Corporate centre | 230 | 171 | - | 272 | 213 | 53 | 39 | |||
* Impact before tax and before minority interests |
Crédit Agricole S.A. : Specific items Q3-23, Q3-22, 9M-23 et 9M-22
Q3-23 | Q3-22 | 9M-23 | 9M-22 | |||||||
€m | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | Gross impact* | Impact on Net income | ||
DVA (LC) | 2 | 2 | 14 | 10 | (21) | (15) | 5 | 4 | ||
Loan portfolio hedges (LC) | (2) | (1) | (14) | (10) | (26) | (19) | 59 | 43 | ||
Home Purchase Savings Plans (FRB) | 52 | 37 | - | - | 52 | 37 | 34 | 24 | ||
Home Purchase Savings Plans (CC) | 230 | 171 | - | - | 230 | 171 | 53 | 39 | ||
Mobility activities reorganisation (SFS) | 1 | 0 | - | - | 300 | 214 | - | - | ||
Check Image Exchange penalty (CC) | - | - | - | - | 42 | 42 | - | - | ||
Check Image Exchange penalty (LCL) | - | - | - | - | 21 | 20 | - | - | ||
Exceptional provisionning on moratoria | - | - | (21) | (17) | - | - | (21) | (17) | ||
Total impact on revenues | 284 | 209 | (22) | (17) | 598 | 450 | 131 | 93 | ||
Mobility activities reorganisation (SFS) | - | - | - | - | (18) | (13) | - | - | ||
Creval integration costs (IRB) | - | - | - | - | - | - | (30) | (16) | ||
Lyxor integration costs (AG) | - | - | (9) | (4) | - | - | (59) | (30) | ||
Total impact on operating expenses | - | - | (9) | (4) | (18) | (13) | (90) | (46) | ||
Provision for own equity risk | - | - | - | - | - | - | (195) | (195) | ||
Mobility activities reorganisation (SFS) | - | - | - | - | (85) | (61) | - | - | ||
Total impact on cost of credit risk | - | - | - | - | (85) | (61) | (195) | (195) | ||
Mobility activities reorganisation (SFS) | (26) | (26) | - | - | (39) | (39) | - | - | ||
Total impact equity-accounted entities | (26) | (26) | - | - | (39) | (39) | - | - | ||
Mobility activities reorganisation (SFS) | 61 | 45 | - | - | 89 | 57 | - | - | ||
Total impact Net income on other assets | 61 | 45 | - | - | 89 | 57 | - | - | ||
Reclassification of held-for-sale operations (IRB) | - | - | - | - | - | - | (7) | (10) | ||
Capital gain La Médicale (GEA) | - | - | 101 | 101 | - | - | 101 | 101 | ||
Total impact on Net income from discounted or held-for-sale operations | - | - | 101 | 101 | - | - | 94 | 91 | ||
Total impact of specific items | 318 | 227 | 71 | 79 | 545 | 394 | (60) | (57) | ||
Asset gathering | - | - | 92 | 97 | - | - | 42 | 71 | ||
French Retail banking | 52 | 37 | - | - | 73 | 57 | 34 | 24 | ||
International Retail banking | - | - | (21) | (17) | - | - | (253) | (238) | ||
Specialised financial services | 35 | 19 | - | - | 247 | 159 | - | - | ||
Large customers | 1 | 0 | (1) | (0) | (47) | (34) | 64 | 47 | ||
Corporate centre | 230 | 171 | - | - | 272 | 213 | 53 | 39 |
* Impact before tax and before non-controlling interests
Appendix 2 – Crédit Agricole Group: income statement by business line
Crédit
Q3-23 (stated) | ||||||||
In €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
Revenues | 3,345 | 996 | 1,046 | 1,657 | 883 | 1,888 | (567) | 9,249 |
Operating expenses excl. SRF | (2,328) | (589) | (522) | (718) | (424) | (1,139) | 454 | (5,265) |
SRF | - | - | - | - | - | - | - | - |
Gross operating income | 1,018 | 407 | 524 | 939 | 460 | 749 | (113) | 3,984 |
Cost of risk | (254) | (70) | (126) | (0) | (224) | (13) | (6) | (693) |
Cost of legal risk | - | - | - | - | - | - | - | - |
Equity-accounted entities | 1 | - | 1 | 24 | 5 | 6 | 0 | 37 |
Net income on other assets | 0 | 18 | 1 | (5) | 57 | (2) | (0) | 69 |
Income before tax | 765 | 355 | 400 | 958 | 298 | 740 | (119) | 3,397 |
Tax | (178) | (79) | (118) | (221) | (77) | (203) | 65 | (810) |
Net income from discounted or held-for-sale operations | (0) | - | 2 | - | (0) | - | - | 2 |
Net income | 587 | 277 | 284 | 737 | 220 | 537 | (53) | 2,588 |
Non-controlling interests | (0) | (0) | (42) | (110) | (17) | (39) | 4 | (204) |
Net income Group Share | 587 | 277 | 242 | 628 | 204 | 497 | (49) | 2,384 |
Q3-22 (stated) | ||||||||
In €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
Revenues | 3,335 | 940 | 1,512 | 823 | 699 | 1,607 | (694) | 8,222 |
Operating expenses excl. SRF | (2,226) | (572) | (713) | (503) | (358) | (978) | 406 | (4,943) |
SRF | - | - | - | - | - | - | - | - |
Gross operating income | 1,109 | 368 | 799 | 320 | 341 | 630 | (288) | 3,280 |
Cost of risk | (273) | (54) | (0) | (119) | (151) | (34) | (5) | (636) |
Cost of legal risk | - | - | - | - | - | - | - | - |
Equity-accounted entities | 0 | - | 24 | 0 | 82 | 5 | 0 | 111 |
Net income on other assets | 1 | 0 | (2) | 0 | 6 | 1 | 0 | 6 |
Income before tax | 837 | 314 | 821 | 202 | 278 | 602 | (293) | 2,762 |
Tax | (209) | (75) | (213) | (61) | (47) | (156) | 25 | (736) |
Net income from discounted or held-for-sale operations | - | - | 114 | 9 | 1 | (1) | (0) | 123 |
Net income | 628 | 240 | 721 | 151 | 232 | 445 | (268) | 2,149 |
Non-controlling interests | (0) | 2 | (104) | (27) | (27) | (27) | 6 | (178) |
Net income Group Share | 628 | 242 | 617 | 124 | 205 | 418 | (262) | 1,971 |
Crédit
9M-23 (stated) | ||||||||
In €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
Revenues | 10,032 | 2,891 | 3,040 | 5,144 | 2,717 | 5,844 | (1,946) | 27,722 |
Operating expenses excl. SRF | (7,217) | (1,742) | (1,542) | (2,148) | (1,224) | (3,298) | 1,389 | (15,782) |
SRF | (111) | (44) | (40) | (6) | (29) | (312) | (77) | (620) |
Gross operating income | 2,704 | 1,105 | 1,458 | 2,989 | 1,465 | 2,234 | (634) | 11,321 |
Cost of risk | (831) | (205) | (366) | (1) | (686) | (81) | (8) | (2,179) |
Equity-accounted entities | 9 | - | 1 | 73 | 90 | 17 | - | 190 |
Net income on other assets | 6 | 21 | 1 | (5) | 81 | 3 | (1) | 107 |
Change in value of goodwill | - | - | - | - | - | - | - | - |
Income before tax | 1,887 | 921 | 1,095 | 3,057 | 950 | 2,173 | (643) | 9,438 |
Tax | (467) | (217) | (321) | (696) | (254) | (561) | 222 | (2,293) |
Net income from discontinued or held-for-sale operations | (0) | - | 7 | 1 | (0) | - | - | 7 |
Net income | 1,421 | 704 | 781 | 2,361 | 696 | 1,612 | (421) | 7,153 |
Non-controlling interests | (1) | (0) | (121) | (343) | (61) | (93) | (0) | (619) |
Net income Group Share | 1,420 | 704 | 660 | 2,018 | 635 | 1,519 | (421) | 6,534 |
9M-22 (stated) | ||||||||
In €m | RB | LCL | IRB | AG | SFS | LC | CC | Total |
Revenues | 10,760 | 2,936 | 4,269 | 2,457 | 2,072 | 5,300 | (1,841) | 25,953 |
Operating expenses excl. SRF | (6,911) | (1,740) | (2,138) | (1,521) | (1,084) | (2,905) | 1,278 | (15,021) |
SRF | (156) | (69) | (7) | (38) | (34) | (442) | (56) | (803) |
Gross operating income | 3,693 | 1,128 | 2,123 | 898 | 954 | 1,953 | (620) | 10,129 |
Cost of risk | (830) | (158) | (6) | (511) | (388) | (236) | (11) | (2,139) |
Equity-accounted entities | 5 | - | 64 | 2 | 240 | 11 | 0 | 323 |
Net income on other assets | 25 | 5 | 1 | 6 | 4 | 0 | (0) | 41 |
Change in value of goodwill | - | - | - | - | - | - | - | - |
Income before tax | 2,893 | 974 | 2,184 | 395 | 810 | 1,729 | (631) | 8,354 |
Tax | (725) | (250) | (544) | (173) | (161) | (435) | 78 | (2,211) |
Net income from discontinued or held-for-sale operations | - | - | 124 | 21 | 4 | (1) | - | 148 |
Net income | 2,168 | 724 | 1,764 | 243 | 652 | 1,292 | (553) | 6,291 |
Non-controlling interests | (1) | (0) | (310) | (85) | (83) | (63) | 2 | (539) |
Net income Group Share | 2,168 | 724 | 1,454 | 159 | 569 | 1,229 | (551) | 5,752 |
Appendix 3 – Crédit Agricole S.A.: results by business line
Crédit
Q3-23 (stated) | |||||||
In €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
Revenues | 1,656 | 1,888 | 883 | 996 | 1,024 | (103) | 6,343 |
Operating expenses excl. SRF | (718) | (1,139) | (424) | (589) | (504) | (2) | (3,376) |
SRF | - | - | - | - | - | - | - |
Gross operating income | 937 | 748 | 460 | 407 | 520 | (105) | 2,967 |
Cost of risk | (0) | (13) | (224) | (70) | (121) | (2) | (429) |
Equity-accounted entities | 24 | 6 | 5 | - | 1 | (12) | 23 |
Net income on other assets | (5) | (2) | 57 | 18 | 1 | (0) | 69 |
Income before tax | 956 | 739 | 298 | 355 | 401 | (119) | 2,630 |
Tax | (221) | (203) | (77) | (79) | (118) | 65 | (633) |
Net income from discontinued or held-for-sale operations | - | - | (0) | - | 2 | - | 2 |
Net income | 736 | 536 | 220 | 277 | 285 | (55) | 1,999 |
Non-controlling interests | (114) | (48) | (17) | (12) | (60) | 0 | (251) |
Net income Group Share | 621 | 488 | 204 | 264 | 225 | (55) | 1,748 |
Q3-22 (stated) | |||||||
In €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
Revenues | 1,502 | 1,607 | 699 | 940 | 804 | (232) | 5,321 |
Operating expenses excl. SRF | (713) | (978) | (358) | (572) | (486) | (21) | (3,127) |
SRF | - | - | - | - | - | - | - |
Gross operating income | 789 | 630 | 341 | 368 | 319 | (252) | 2,195 |
Cost of risk | (0) | (34) | (151) | (54) | (120) | (1) | (360) |
Equity-accounted entities | 24 | 5 | 82 | - | 0 | (9) | 102 |
Net income on other assets | (2) | 1 | 6 | 0 | 0 | 0 | 5 |
Income before tax | 811 | 602 | 278 | 314 | 199 | (262) | 1,942 |
Tax | (211) | (156) | (47) | (75) | (60) | 17 | (533) |
Net income from discontinued or held-for-sale operations | 114 | (1) | 1 | - | 9 | (0) | 123 |
Net income | 714 | 445 | 232 | 240 | 148 | (246) | 1,533 |
Non controlling interests | (106) | (33) | (27) | (13) | (38) | 1 | (217) |
Net income Group Share | 607 | 412 | 205 | 227 | 110 | (245) | 1,316 |
Crédit
9M-23 (stated) | |||||||
In €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
Revenues | 5,133 | 5,844 | 2,717 | 2,891 | 2,975 | (421) | 19,140 |
Operating expenses excl. SRF | (2,148) | (3,298) | (1,224) | (1,742) | (1,491) | (20) | (9,922) |
SRF | (6) | (312) | (29) | (44) | (40) | (77) | (509) |
Gross operating income | 2,979 | 2,234 | 1,465 | 1,105 | 1,444 | (519) | 8,709 |
Cost of risk | (1) | (81) | (686) | (205) | (362) | (2) | (1,338) |
Equity-accounted entities | 73 | 17 | 90 | - | 2 | (45) | 136 |
Net income on other assets | (5) | 3 | 81 | 21 | 1 | (0) | 102 |
Change in value of goodwill | - | - | - | - | - | - | - |
Income before tax | 3,047 | 2,173 | 950 | 921 | 1,085 | (566) | 7,609 |
Tax | (699) | (561) | (254) | (217) | (320) | 218 | (1,832) |
Net income from discontinued or held-for-sale operations | 1 | - | (0) | - | 7 | - | 7 |
Net income | 2,349 | 1,612 | 696 | 704 | 772 | (348) | 5,785 |
Non controlling interests | (353) | (125) | (61) | (31) | (172) | (27) | (771) |
Net income Group Share | 1,996 | 1,486 | 635 | 673 | 600 | (375) | 5,014 |
9M-22 (stated) | |||||||
In €m | AG | LC | SFS | FRB (LCL) | IRB | CC | Total |
Revenues | 4,245 | 5,301 | 2,072 | 2,936 | 2,403 | (432) | 16,525 |
Operating expenses excl. SRF | (2,138) | (2,905) | (1,084) | (1,740) | (1,474) | (43) | (9,383) |
SRF | (7) | (442) | (34) | (69) | (38) | (56) | (647) |
Gross operating income | 2,100 | 1,954 | 954 | 1,128 | 891 | (531) | 6,495 |
Cost of risk | (6) | (236) | (388) | (158) | (510) | (5) | (1,303) |
Equity-accounted entities | 64 | 11 | 240 | - | 2 | (27) | 291 |
Net income on other assets | 1 | 0 | 4 | 14 | 6 | 0 | 26 |
Change in value of goodwill | - | - | - | - | - | - | - |
Income before tax | 2,160 | 1,730 | 810 | 983 | 389 | (563) | 5,509 |
Tax | (537) | (436) | (161) | (250) | (172) | 73 | (1,483) |
Net income from discontinued or held-for-sale operations | 124 | (1) | 4 | - | 21 | - | 147 |
Net income | 1,747 | 1,293 | 652 | 733 | 238 | (490) | 4,174 |
Non controlling interests | (320) | (82) | (83) | (33) | (115) | (18) | (651) |
Net income Group Share | 1,427 | 1,211 | 569 | 700 | 123 | (508) | 3,523 |
Appendix 4 – Data per share
Crédit |
Crédit
(€m) | Q3-2023 IFRS17 | Q3-2022 IFRS4 | 9M-23 IFRS17 | 9M-22 IFRS4 | ||
Net income Group share - stated | 1,748 | 1,352 | 5,014 | 3,880 | ||
- Interests on AT1, including issuance costs, before tax | (136) | (119) | (371) | (327) | ||
NIGS attributable to ordinary shares - stated | [A] | 1,612 | 1,233 | 4,643 | 3,553 | |
Average number shares in issue, excluding treasury shares (m) | [B] | 3,043 | 3,029 | 3,031 | 2,957 | |
Net earnings per share - stated | [A]/[B] | 0.53 € | 0.41 € | 1.53 € | 1.20 € | |
Underlying net income Group share (NIGS) | 1,520 | 1,273 | 4,620 | 3,937 | ||
Underlying NIGS attributable to ordinary shares | [C] | 1,384 | 1,154 | 4,249 | 3,610 | |
Net earnings per share - underlying | [C]/[B] | 0.46 € | 0.38 € | 1.40 € | 1.22 € | |
(€m) | ||||||
Shareholder's equity Group share | 69,416 | 64,295 | ||||
- AT1 issuances | (7,235) | (5,988) | ||||
- Unrealised gains and losses on OCI - Group share | 1,644 | 3,338 | ||||
Net book value (NBV), not revaluated, attributable to ordin. sh. | [D] | 63,825 | 61,644 | |||
- | (17,255) | (18,386) | ||||
Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. | [E] | 46,570 | 43,258 | |||
Total shares in issue, excluding treasury shares (period end, m) | [F] | 3,051.7 | 3,039.5 | |||
NBV per share, after deduction of dividend to pay (€) | [D]/[F] | 20.9 € | 20.3 € | |||
TNBV per share, after deduction of dividend to pay (€) | [G]=[E]/[F] | 15.3 € | 14.2 € | |||
* dividend proposed to the Board meeting to be paid | ||||||
** including goodwill in the equity-accounted entities | ||||||
(€m) | 9M-23 IFRS17 | 9M-22 IFRS4 | ||||
Net income Group share - stated | [K] | 5,014 | 3,880 | |||
Impairment of intangible assets | [L] | 0 | 0 | |||
IFRIC | [M] | -542 | -682 | |||
Stated NIGS annualised | [N] = ([K]-[L]-[M])*4/3+[M] | 6,866 | 5,401 | |||
Interests on AT1, including issuance costs, before tax, annualised | [O] | -495 | -436 | |||
Stated result adjusted | [P] = [N]+[O] | 6,371 | 4,965 | |||
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. - avg (3) | [J] | 43,200 | 40,195 | |||
Stated ROTE adjusted (%) | = [P] / [J] | 14.7% | 12.4% | |||
Underlying Net income Group share | [Q] | 4,620 | 3,937 | |||
Underlying NIGS annualised | [R] = ([Q]-[M])*4/3+[M] | 6,341 | 5,477 | |||
Underlying NIGS adjusted | [S] = [R]+[O] | 5,846 | 5,041 | |||
Underlying ROTE adjusted(%) | = [S] / [J] | 13.5% | 12.5% |
****** including assumption of dividend for the current exercise
(1) Average of the NTBV not revalued attributable to ordinary shares calculated
(2) ROTE calculated on the basis of an annualised net income Group share and linearised IFRIC costs over the year
Alternative Performance Indicators99
NBV Net Book Value not re-evaluated
The Net Book Value not re-evaluated corresponds to the shareholders’ equity Group share from which the amount of the AT1 issues, the unrealised gains and/or losses on
NBV per share Net Book Value per share - NTBV per share Net Tangible Book Value per share
One of the methods for calculating the value of a share. This represents the Net Book Value divided by the number of shares in issue at end of period, excluding treasury shares.
Net Tangible Book Value per share represents the Net Book Value after deduction of intangible assets and goodwill, divided by the number of shares in issue at end of period, excluding treasury shares.
EPS Earnings per Share
This is the net income Group share, from which the AT1 coupon has been deducted, divided by the average number of shares in issue excluding treasury shares. It indicates the portion of profit attributable to each share (not the portion of earnings paid out to each shareholder, which is the dividend). It may decrease, assuming the net income Group share remains unchanged, if the number of shares increases.
Cost/income ratio
The cost/income ratio is calculated by dividing operating expenses by revenues, indicating the proportion of revenues needed to cover operating expenses.
Cost of risk/outstandings
Calculated by dividing the cost of credit risk (over four quarters on a rolling basis) by outstandings (over an average of the past four quarters, beginning of the period). It can also be calculated by dividing the annualised cost of credit risk for the quarter by outstandings at the beginning of the quarter. Similarly, the cost of risk for the period can be annualised and divided by the average outstandings at the beginning of the period.
Since the first quarter of 2019, the outstandings taken into account are the customer outstandings, before allocations to provisions.
The calculation method for the indicator is specified each time the indicator is used.
Doubtful loan
Defaulting loan. The debtor is considered to be in default when at least one of the following two conditions has been met:
- a payment generally more than 90 days past due, unless specific circumstances point to the fact that the delay is due to reasons independent of the debtor’s financial situation.
- the entity believes that the debtor is unlikely to settle its credit obligations unless it avails itself of certain measures such as enforcement of collateral security right.
Impaired loan
Loan which has been provisioned due to a risk of non-repayment.
MREL
The MREL (Minimum Requirement for Own Funds and Eligible Liabilities) ratio is defined in the European “Bank Recovery and Resolution Directive” (BRRD). This Directive establishes a framework for the resolution of banks throughout the
The MREL ratio corresponds to an own funds and eligible liabilities buffer required to absorb losses in the event of resolution. Under BRRD2, the MREL ratio is calculated as the amount of eligible capital and liabilities expressed as a percentage of risk weighted assets (RWA), as well as a leverage ratio exposure (LRE). Are eligible for the numerator of the total MREL ratio the Group’s regulatory capital, as well as eligible liabilities issued by the central body and the Crédit Agricole network affiliated entities, i.e. subordinated notes, senior non-preferred debt instruments and certain senior preferred debt instruments with residual maturities of more than one year.
Impaired (or doubtful) loan coverage ratio
This ratio divides the outstanding provisions by the impaired gross customer loans.
Impaired (or doubtful) loan ratio
This ratio divides the impaired gross customer loans on an individual basis, before provisions, by the total gross customer loans.
TLAC
The Financial Stability Board (FSB) has defined the calculation of a ratio aimed at estimating the adequacy of the bail-in and recapitalisation capacity of Global Systemically Important Banks (G-SIBs). This Total Loss Absorbing Capacity (TLAC) ratio provides resolution authorities with the means to assess whether G-SIBs have sufficient bail-in and recapitalisation capacity before and during resolution. It applies to Global Systemically Important Banks, and therefore to Crédit Agricole Group.
The Group’s regulatory capital as well as subordinated notes and eligible senior non-preferred debt with residual maturities of more than one year issued by Crédit Agricole S.A. are eligible for the numerator of the TLAC ratio.
Net income Group share
Net income/(loss) for the financial year (after corporate income tax). Equal to net income Group share, less the share attributable to non-controlling interests in fully consolidated subsidiaries.
Underlying Net income Group share
The underlying net income Group share represents the stated net income Group share from which specific items have been deducted (i.e., non-recurring or exceptional items) to facilitate the understanding of the company’s actual earnings.
Net income Group share attributable to ordinary shares
The net income Group share attributable to ordinary shares represents the net income Group share from which the AT1 coupon has been deducted, including issuance costs before tax.
RoTE Return on Tangible Equity
The RoTE (Return on Tangible Equity) measures the return on tangible capital by dividing the Net income Group share annualised by the group’s NBV net of intangibles and goodwill. The annualised Net income Group share corresponds to the annualisation of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding impairments of intangible assets and restating each period of the IFRIC impacts in order to linearise them over the year.
Disclaimer
The financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months of 2023 comprises this presentation and the attached appendices and press release which are available on the website: https://www.credit-agricole.com/en/finance/financial-publications
This press release may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of EU Delegated Act 2019/980 of
This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset impairment.
Readers must take all these risk factors and uncertainties into consideration before making their own judgement.
Applicable standards and comparability
The figures presented for the six-month period ending
Unless stated otherwise, all figures presented in this presentation for the year 2022 are in proforma IFRS 17
Note: The scopes of consolidation of the Crédit Agricole S.A. and Crédit Agricole Groups have not changed materially since the Crédit Agricole S.A. 2022 Universal Registration Document and its A.01 update (including all regulatory information about the Crédit Agricole Group) were filed with the AMF (the
The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding.
At
At
At
At
Financial Agenda
8 February 2024 Publication of the 2023 fourth quarter and full year results
3 May 2024 Publication of the 2024 first quarter results
22 May 2024 General Meeting
1 August 2024 Publication of the 2024 second quarter and the first half year results
6 November 2024 Publication of the 2024 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
+ 33 1 57 72 12 19 + 33 1 43 23 25 41 | alexandre.barat@credit-agricole-sa.fr olivier.tassain@credit-agricole-sa.fr | |
+ 33 1 57 72 19 43 | mathilde.durand@credit-agricole-sa.fr | |
+ 33 1 49 53 43 64 | benedicte.gouvert@ca-fnca.fr |
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS
Institutional shareholders | + 33 1 43 23 04 31 | investor.relations@credit-agricole-sa.fr |
Individual shareholders | + 33 800 000 777 (freephone number – | relation@actionnaires.credit-agricole.com |
+ 33 1 57 72 86 79 | cecile.mouton@credit-agricole-sa.fr | |
Equity investor relations: | ||
+ 33 1 57 72 23 81 + 33 1 57 72 03 75 | jean-yann.asseraf@credit-agricole-sa.fr fethi.azzoug@credit-agricole-sa.fr | |
+ 33 1 43 23 48 33 | joséphine.brouard@credit-agricole-sa.fr | |
+ 33 1 43 23 03 07 | oriane.cante@credit-agricole-sa.fr | |
+ 33 1 43 23 55 51 | nicolas.ianna@credit-agricole-sa.fr | |
+ 33 1 57 72 07 93 | leila.mamou@credit-agricole-sa.fr | |
Anna Pigoulevski | + 33 1 43 23 40 59 | anna.pigoulevski@credit-agricole-sa.fr |
+ 33 1 43 23 55 52 | annabelle.wiriath@credit-agricole-sa.fr | |
Credit investor and rating agency relations: | ||
+ 33 1 43 23 15 27 | rhita.alamihassani@credit-agricole-sa.fr | |
Gwenaëlle Lereste | + 33 1 57 72 57 84 | Gwenaelle.lereste@credit-agricole-sa.fr |
+ 33 1 43 23 25 32 | florence.quintindekercadio@credit-agricole-sa.fr | |
See all our press releases at: www.credit-agricole.com - www.creditagricole.info
1 Gross customer capture for the first nine months of 2023 was 1,472,000 and the customer base was 349,000
2 Refinitiv
3 Bloomberg
4 Comprising €587 billion for the Regional Banks, €156 billion for LCL and €64 billion for CA Italy
5 Signing of an agreement for the acquisition of a majority stake
6 Digital fleet management tool on monthly subscription
7 Extended warranty
8 In addition, acquisition of a stake of 9.9% in the capital of Banco BPM
9 Employee benefits management tool
10 Creation of a joint venture to develop innovative commercial offerings
11 Integration of 50% of CA Auto bank net banking income for the calculation purposes
12 These figures encompass some deals already integrated in the financial statements as well as prospective datas
13 Excluding integration costs
14 Delivered by R3, in which CATE is the reference shareholder
15 With online diagnostic testing, recommendations and estimates of the works to be carried out, as well as information on available aid. The website forecasts 1 million visits in 2023.
16 DVA (Debt Valuation Adjustment)
17 Following the non-recurring impacts of Q2-23 related to the reorganisation of the CACF Group’s Mobility activities, amounting to +€140 million, +€19 million was added in Q3-23. As a reminder, this involved transfers of business assets, indemnities received and paid, the accounting treatment of the 100% consolidation of CA Auto Bank (formerly
18 See Appendixes for more details on specific items.
19 The cost of risk relative to outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters after reintegration of
20 The cost of risk relative to outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter after reintegration of
21 Following the non-recurring impacts of Q2-23 related to the reorganisation of the CACF Group’s Mobility activities, amounting to +€140 million, +€19 million was added in Q3-23. As a reminder, this involved transfers of business assets, indemnities received and paid, the accounting treatment of the 100% consolidation of CA Auto Bank (formerly
22 Data at
23 Number of active profiles on “Ma Banque” corresponding to at least one synchronisation during the month
24 Signatures initiated in BAM deposit mode (multi-channel bank access), Mobile customer portal or “Ma Banque” app
25 Home loan production in
26 SAS
27 DVA (Debt Valuation Adjustment)
28 Following the non-recurring impacts of Q2-23 related to the reorganisation of the CACF Group’s Mobility activities, amounting to +€140 million, +€19 million was added in Q3-23. As a reminder, this involved transfers of business assets, indemnities received and paid, the accounting treatment of the 100% consolidation of CA Auto Bank (formerly
29 Underlying, excluding specific items. See Appendixes for more details on specific items.
30 Impact on CA Auto Bank revenues: +€202m
31 Impact on RBC IS Europe revenues: +€103.5m
32 +5.9% taking into account the reversal of the home purchase savings provision of €52 million
33 Change at current exchange rates; +45% at constant exchange rates
34 Based on underlying data and excluding specific items; scope: CAsa excluding Corporate Center and insurance activities
35 Scope effect: SFS/CAAB (+€73 million), Asset Servicing/RBC IS Europe (+€105.6 million)
36 Provisioning rate calculated with outstandings in Stage 3 as denominator, and the sum of the provisions recorded in Stages 1, 2 and 3 as numerator.
37 The cost of risk relative to outstandings (in basis points) on a four quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
38 The cost of risk relative to outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
39 Following the non-recurring impacts of Q2-23 related to the reorganisation of the CACF Group’s Mobility activities, amounting to +€140 million, +€19 million was added in Q3-23. As a reminder, this involved transfers of business assets, indemnities received and paid, the accounting treatment of the 100% consolidation of CA Auto Bank (formerly
40 Underlying, excluding specific items. See Appendixes for more details on specific items
41 See details on the calculation of the business lines’ ROTE (return on tangible equity) and RONE (return on normalised equity)
42 The annualised underlying net income Group share corresponds to the annualisation of the underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC impacts to linearise them over the year
43 Scope: Property & Casualty in
44 Combined ratio of P&C (Pacifica) including discounting and excluding reverse discounting: (claims + operating expenses + fee and commission income)/premiums, net of reinsurance; Combined ratio excluding the effects of discounting and reverse discounting: 98.1%
45 Sources: MorningstarFundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data at end
46 Medium/Long-Term assets
47 Net inflows include assets under advisory, assets sold and funds of funds, and take into account 100% of the Asian JVs’ net inflows; for
48 LCL Private Banking and Indosuez Wealth Management
49 Amount of allocation of CSM and RA, including funeral guarantees
50 Amount of allocation of CSM and RA
51 Net of cost of reinsurance, excluding financial results
52 IFRS 17 run rate: i.e. after restatement of the 2022 base effect, which did not take into account the investment management decisions implemented at the end of 2022 (segregation of equity and desensitisation of the portfolio).
53 Indosuez Wealth Management scope
54 CIB’s specific items this quarter had an impact of €+0.6 million on financing activities and comprised the DVA (the issuer spread portion of the FVA, and secured lending) amounting to +€2.1 million, and loan book hedging totalling -€1.5 million.
55 Refinitiv
56 Bloomberg
57 Operational register keeping, organisation of general meetings and other services to issuers in
58
59 Impacts of the consolidation of ISB on Q3-2023: revenues +€103.5m, expenses -€105.7m and net income Group share -€1.1m
60
61 Impacts of the consolidation of ISB on Q3-2023: revenues +€103.5m, expenses -€105.7m and net income Group share -€1.1m
62 Before non-controlling interests
63 CA Auto Bank, automotive JVs and auto activities of other entities
64 The reorganisation of the Mobility activities of the CA Consumer Finance Group had a non-recurring impact in the second quarter (+€140 million in net income Group share) and third quarter (+€19 million in net income Group share) of 2023 on all intermediate operating totals due to the transfer of business assets, indemnities received and paid, the accounting treatment of the full consolidation of CA Auto Bank (formerly FCA Bank) and the reorganisation of the automotive financing activities within the CA Consumer Finance Group (particularly the review of application solutions).
65 Contribution of €202 million over the quarter to revenues
66 Contribution of -€73 million over the quarter to expenses
67 Contribution of -€28 million over the quarter to cost of risk
68 Annualised cost of risk as a share of outstandings (in basis points) calculated on the basis of the cost of risk for the quarter multiplied by 4 divided by the outstandings at the beginning of the quarter
69 2.99% fixed-rate home loan offer; marketing campaign carried out from April to
70 Over nine months, gross customer capture stood at 130,000 customers in 2023 and net customer capture came in at 45,000 customers
71 Car, home, legal, all mobile phones, or personal accident insurance
72 Net of POCI outstandings
73 Source: Abi Monthly Outlook,
74 At
75 Disposal of control (63.7%) of Crédit
76 Excess liquidity in
77 Including reversal of home purchase savings provision for €52m
78 Over a rolling four quarter period
79 At
80 Provisions of -€195 million for
81 Over a rolling four quarter period.
82 Cost of risk on outstandings stands at 56 basis points when referring to annualized quarterly basis
83The Crédit
84 At
85 Based on public data of the 12 European G-SIBs as at
86 As part of its annual resolvability assessment, Crédit Agricole Group has chosen to waive the possibility offered by Article 72ter(3) of the Capital Requirements Regulation (CRR) to use senior preferred debt for compliance with its TLAC requirements in 2023.
87 At
88 Change in equity-accounted value excluding OCI
89 Including CA Auto Bank
90 Including CA Auto Bank
91 Gross amount before buy-backs and amortisations
92 Excl. AT1 issuances
93 Gross amount before buy-backs and amortisations
94 Excl. AT1 issuances
95 Excl. senior secured debt
96 Excl. senior secured debt
97 Excl. senior secured debt
98 Excl. AT1 issuances
99 APMs are financial indicators not presented in the financial statements or defined in accounting standards but used in the context of financial communications, such as underlying net income Group share or RoTE. They are used to facilitate the understanding of the company’s actual performance. Each APM indicator is matched in its definition to accounting data.
Attachment
- 2023 11 08_Crédit Agricole SA_PR_2023-Q3_Results
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