Credit Agricole S A : Press release

PRESS RELEASE - FIRST QUARTER 2023

Montrouge, 10 May 2023

EXCELLENT RESULTS OF THE "MULTI-UNIVERSAL" BANKING MODEL

CAG AND CASA STATED AND UNDERLYING DATA Q1-2023

		CRÉDIT AGRICOLE S.A.			CRÉDIT AGRICOLE GROUP
		Stated	Underlying			Stated	Underlying
Revenues		€6,121m	€6,153m			€8,927m	€8,959m
	+9.6% Q1/Q1	+10.4% Q1/Q1			+0.5% Q1/Q1	+1.8% Q1/Q1
Expenses		-€3,841m	-€3,841m			-€5,909m	-€5,909m
	+1.9% Q1/Q1	+2.4% Q1/Q1			+0.6% Q1/Q1	+0.9% Q1/Q1
incl. SRF		-€513m	-€513m			-€626m	-€626m
	-19.4% Q1/Q1	-19.4% Q1/Q1			-21.2% Q1/Q1	-21.2% Q1/Q1
Gross		€2,280m	€2,312m			€3,018m	€3,049m
Operating
	+25.6% Q1/Q1	+26.8% Q1/Q1			+0.4% Q1/Q1	+3.6% Q1/Q1
Income
Cost of risk		-€374m	-€374m			-€548m	-€548m
	-49.5% Q1/Q1	-31.4% Q1/Q1			-38.3% Q1/Q1	-21.0% Q1/Q1
Net income		€1,226m	€1,249m			€1,669m	€1,692m
Group share		x2.1 Q1/Q1	+61.5% Q1/Q1			+23.6% Q1/Q1	+12.6% Q1/Q1
C/I ratio	54.4%	54.1%	59.2%	59.0%
(excl. SRF)		-1.7 pp Q1/Q1	-1.8 pp Q1/Q1			+2.0 pp Q1/Q1	+1.4 pp Q1/Q1

ATTRACTIVE UNIVERSAL BANKING: STRONG ACTIVITY IN ALL BUSINESS LINES

• CAG customer capture: +555,000 new customers in Q1
• Dynamic sales in insurance, CIB and consumer finance

PERFORMING UNIVERSAL BANKING: RECORD NET INCOME OF €1,249M

• Revenues +10.4% Q1/Q1 pro-forma IFRS 17, +12.6% excluding base effect of TLTRO special interest period
  o CA Italia, IRB excluding Italy, CACEIS and CA Indosuez revenues sustained by net interest margin
  o SFS and French retail banking impacted by the increase in refinancing costs
• Expenses +2.4% Q1/Q1 pro-forma IFRS 17, jaws effect +5.7 pp excluding TLTRO and excluding SRF
• Cost/income ratio excl. SRF 54.1%

ACTIVE UNIVERSAL BANKING: STRUCTURAL OPERATIONS IN LINE WITH THE MTP

• Launch of Leasys JV and 100% consolidation of CA Auto Bank in Q2-23; +100,000 ALD/Leaseplan vehicles in H2-2023
• Entry into exclusive negotiations with Worldline in Q2-2023 to create a major player in merchant payment services in France
• Acquisition of Sudeco (Property Management) by CA Immobilier in Q1-2023

SOLID UNIVERSAL BANKING: SOLID CAPITAL AND LIQUIDITY POSITIONS

• Crédit Agricole S.A. phased-in CET1 11.6% (370 bps>SREP)
• CAG phased-in CET1 17.6% (870 bps>SREP)
• LCR 162,6% and €457bn in liquidity reserves at Crédit Agricole Group level
• Stock of provisions for performing loans €20.0bn, coverage ratio 83%

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PRESS RELEASE - FIRST QUARTER 2023

Montrouge, 10 May 2023

Dominique Lefebvre,

Chairman of SAS Rue La Boétie and Chairman of the Crédit Agricole S.A. Board of Directors

"The strength of our results commits us. The Group continues to play a leading role in actively supporting the economy and in accompanying major societal transitions locally.

I would like to thank all our customers for their trust, as well as all the Group's employees and elected representatives, who are mobilised every day to provide a comprehensive, local response to all their needs."

Philippe Brassac,

Chief Executive Officer of Crédit Agricole S.A.

"Crédit Agricole is a "multi-universal" bank: active in all types of markets, in all regions, serving the greatest number of people, and organised to provide a global response to its customers' needs undera long-term relationship.

Our naturally hyper-inclusive model by nature allows us to regularly present excellent commercial and financial results, as it is the case again this quarter. These results bear witness to our commercial utility, to the extreme diversification of our model, and of course to the remarkable commitment of all our teams."

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 57.1% of Crédit Agricole S.A. Please See Appendixes of this press release for details on specific items, which are restated in the various indicators to calculate underlying net income.

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PRESS RELEASE - First quarter 2023

Crédit Agricole Group

Group activity

The Group recorded a strong commercial activity over the quarter across all business lines thanks to the customer focused banking model. Gross customer capture has been dynamic. In the first quarter of 2023, the Group recorded +555,000 million new customers in retail banking, and the customer base continued to grow (+145,000 customers) in line with the MTP Ambitions 2025 targets. More specifically, over the quarter, the Group recorded +426,000 new Retail banking customers in France and +129,000 new International retail banking customers (Italy and Poland), and the customer base also grew (+78,000 and +67,000 customers respectively). Inflows remained stable over the quarter for all entities, with total net inflows at Amundi of -€11.1 billion affected by a few outflows on institutional assets with very low margins but including positive retail inflows (excluding JV and China) of +€4.3 billion. At CA Assurances, there were record unit-linked inflows of +€2.4 billion and positive net inflows of +€0.7 billion in Wealth Management (Indosuez Wealth Management and LCL Private Banking). At constant scope (excluding La Médicale), property and casualty insurance premium income increased by +9% compared to March 2022 and personal protection insurance premium income increased by +6% over the same period. Business was also highly dynamic in corporate and investment banking (underlying revenues up +20.9% compared to first quarter 2022). Underlying revenues in capital markets and investment banking increased by +36.8% with excellent activity in all product lines and particularly in the FICC business (+41.8%). Financing activities also recorded an increase in underlying revenues of +6.1%, driven by the performance of structured finance (+7.1%). In Retail banking, loan production was down over the quarter in a context of increased customer production rates, with €35 billion in new loans at Regional Banks, LCL and CA Italia1 (-10.6% compared with the first quarter of 2022). However, loans production is dynamic on professionals market with an increase, compared with the first quarter 2022, of +4.7% at Regional Banks (professionals and corporates), +6.2% for LCL and +25.7% for CA Italia (professionals and corporates). On home loans, production is declining in a bearish market2. In France, new home loans granted by the Regional Banks and LCL fell by -16.0%. At CA Italia home loans production fell by -21.3%. The insurance equipment rate3 was high in Retail banking at the end of March 2023 and increased compared to the first quarter of 2022, standing at 42.9% for Regional Banks (+0.5 point), 27.4% for LCL (+0.9 point) and 17.3% for CA Italia, including Creval (+2.2 points). Finally, Retail banking deposits were stable over the quarter. As a result, on-balance sheet customer assets within Regional Banks, LCL and CA Italia amounted to €793 billion at the end of March 2023 (+0.4% compared to the end of December 2022, of which -0.1% for Regional Banks, +2.3% for LCL and -0.6% for CA Italia). Finally, the SFS division also recorded a good level of activity, with CACF's consumer finance production up +15.8% compared to the first quarter of 2022, driven by the dynamism of the car channel (+38.5%), and CAL&F's factoring production up +5.8%.

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

1. Customer home loan production rates up by +36 bp for Regional banks, +51 bp for LCL compared to fourth quarter 2022. In Italy, it increase of +99bp
2. Declined less sharply than the market (home loan production in France -37.5%Q1-23/Q1-22 according to Banque de France).
3. Car, home, legal, all mobile phones, or personal accident insurance

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PRESS RELEASE - First quarter 2023

Implementation of the medium-term strategy

In the first quarter of 2023, the Group continued to implement its Medium-Term Plan. Growth drivers were set in motion and stay the first Group priority. Business units continue to develop themselves with a dynamic activity this quarter. In 2023, the Group complemented this growth with strategic operations that will strengthen its position as a major player in mobility in Europe, but also in property services and payment services in France.

Firstly, on 4 April 2023, Crédit Agricole Consumer Finance announced the finalisation of its agreement with Stellantis, leading to the creation of a new 50/50 Leasys JV by pooling the activities of Leasys and Free2Move Lease, allowing Crédit Agricole to become one of the top five European players in long-term car rental, with a target of more than 1 million vehicles under long-term rental by 2026; secondly, Crédit Agricole Auto Bank was created, an entity resulting from Crédit Agricole Consumer Finance's 100% takeover of FCA Bank and Drivalia (car rental and car sharing), to create a pan-European leader in multi-brand automotive financing, independent of any manufacturer and backed by the Crédit Agricole Group, with a target of €10 billion in outstanding car financing by 2026. In addition, on 23 March 2023, Crédit Agricole Consumer Finance and Stellantis announced their intention to acquire the activities of six European subsidiaries of ALD Automotive and LeasePlan, together representing a fleet of more than 100,000 vehicles (and total outstandings of €1.7 billion): the Leasys joint venture will take over the activities of ALD in Portugal and of LeasePlan in Luxembourg for a total of approximately 30,000 vehicles; Crédit Agricole Auto Bank will take over the activities of ALD in Ireland and Norway and of LeasePlan in the Czech Republic and Finland for a total of over 70,000 vehicles. The Crédit Agricole Auto Bank takeover will have a neutral impact on CET1 (the RWA increase linked to the consolidation being offset by a synthetic securitisation). On the other hand, the total impact of the acquisition of ALD's and LeasePlan's activities on CASA's CET1 ratio in 2023 will be less than -10 bps in 2023.

In addition, on 20 April 2023, the Crédit Agricole Group announced that it had entered into exclusive negotiations with Worldline in order to establish a long-term strategic partnership in the field of payment services for merchants in the French market. This transaction, which brings together two major French groups, each a leader in their respective markets, is fully in line with the strategic guidelines of the MTP Payments 2025, in particular the objective of doubling the growth rate of the payment services business for merchants.

Lastly, Crédit Agricole Immobilier's acquisition of Sudeco, a property management player (property management, rental and technical management) specialising in commercial real estate, announced on 14 March 2023, will allow the Group to become the fourth largest institutional property management player in France (in terms of gross revenues), accelerating its strategic ambition to join the top three in the sector by 2025. This transaction will have a negligible negative impact on the CET1 of Crédit Agricole S.A. and the Crédit Agricole Group.

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PRESS RELEASE - First quarter 2023

Group results

In the first quarter of 2023, Crédit Agricole Group's stated net income Group share came to €1,669 million, up +23.6% compared to the first quarter of 2022.

Specific items in the first quarter of 2023 had a negative net effect of -€24million on Crédit Agricole S.A.'s net income Group share. These include the following recurring accounting items: recurring accounting volatility items in revenues, such as the DVA (Debt Valuation Adjustment), the issuer spread portion of the FVA, and secured lending for -€6 million in net income Group share on capital markets and investment banking, and the hedging of the loan book in the Large customers segment for -€18 million in net income Group share.

Excluding these specific items, Crédit Agricole Group's underlying net income Group share4 amounted to €1,692 million, up +12.6% compared to the first quarter of 2022.

Crédit Agricole Group - Stated and underlying results, Q1-2023 and Q1-2022

	€m			Q1-23		Specific		Q1-23			Q1-22			Specific		Q1-22			∆ Q1/Q1			∆ Q1/Q1
			stated		items		underlying			stated			items		underlying			stated			underlying
	Revenues						8,882		79	8,802	+0.5%		+1.8%
			8,927		(32)		8,959
	Operating expenses excl. SRF			(5,284)		-		(5,284)		(5,082)		(18)	(5,064)	+4.0%		+4.3%
	SRF			(626)		-		(626)		(794)		-	(794)	(21.2%)		(21.2%)
	Gross operating income			3,018		(32)		3,049		3,005		61	2,944	+0.4%		+3.6%
	Cost of risk			(548)		-		(548)		(888)		(195)	(693)	(38.3%)		(21.0%)
	Equity-accounted entities			108		-		108		108		-	108	(0.3%)		(0.3%)
	Net income on other assets			4		-		4		13		-	13	(68.8%)		(68.8%)
	Change in value of goodwill			-		-		-		-		-	-			n.m.		n.m.
	Income before tax			2,581		(32)		2,613		2,238		(134)	2,372	+15.4%		+10.2%
	Tax			(711)		8		(719)		(703)		(15)	(688)	+1.1%		+4.5%
	Net income from discont'd or			2		-		2		1		(4)	5	+29.1%		(64.2%)
	held-for-sale ope.
	Net income			1,872		(24)		1,896		1,536		(153)	1,689	+21.9%		+12.3%
	Non controlling interests			(204)		-		(204)		(186)		(0)	(185)	+9.5%		+9.8%
	Net income Group Share		1,669		(24)		1,692		1,350			(153)		1,504			+23.6%			+12.6%
	Cost/Income ratio excl.			59.2%				59.0%			57.2%					57.5%			+2.0 pp			+1.4 pp
	SRF (%)

In the first quarter of 2023, underlying revenues amounted to €8,959 million, up +1.8% compared to the first quarter of 2022, thanks to sustained activity in all business lines, and due to the positive impact of the rise in rates on the revenues of International retail banking in particular, and despite the rise in interest rates impacting Retail banking and consumer finance in particular. Underlying operating expenses excluding the Single Resolution Fund (SRF) rose by +4.3% in the first quarter of 2023 to €5,284 million, due in particular to the support of the development of the business lines and IT expenses, but also to the increase in compensation in an inflationary context. Overall, the Group's underlying cost/income ratio excluding SRF recorded an increase of +1.4 percentage points to 59.0% in the first quarter of 2023. The underlying gross operating income was up +3.6% compared to first quarter 2022, reaching €3,049 million. Under IFRS 17 implementation, the impact of internal margin reclassified on Group revenues is equal to -€746 million and represent an improvement of -€746 million on expenses on first quarter 2023. This impact is accounted for in Corporate Center.

The underlying cost of credit risk improved, standing at -€548 million, including -€67 million in cost of risk on performing loans (stage 1 and 2), -€464 million in cost of proven risk (stage 3), and -€16 million in other risks, i.e. a decrease of -21.0% compared to the first quarter of 2022. The provisioning cost related to the war in Ukraine

4 See Appendixes for more details on specific items.

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