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CREDIT AGRICOLE SA: Results for the third quarter and the first nine months of 2019 : Results increasing strongly

CREDIT AGRICOLE SA
Montrouge, 8 November 2019

Results for the third quarter and the first nine months of 2019

Q3‑19: Results increasing strongly

Crédit Agricole S.A.
Underlying revenues1
Q3: €5,073 m
+4.9% Q3/Q3
9M: €15,154 m
+1.8% 9M/9M
Underlying net income2
Q3: €1,226 m
+8.2% Q3/Q3
9M: €3,264 m
-2.2% 9M/9M
CET1 ratio
11.7%
+0.1 pp Sept/June, well above the MTP target
  • Stated result Q3: €1,199 m, +8.9% Q3/Q3 (9M: €3,183 m, -6.2% 9M/9M), up significantly Q3/Q3;
  • Underlying income1 increased (+8.2% Q3/Q3) as a result of buoyant commercial activity and improved operational efficiency;
  • Underlying EPS: Q3 €0.34, -6.3% Q3/Q3, 9M €0.97 -8.6% 9M/9M; ROTE3 11.3% annualised over 9M;
  • Increase in underlying revenue (+4.9% Q3/Q3 and +1.8% 9M/9M), as a result of buoyant customers capture, savings, loan and equipment;
  • Significantly positive jaws effect (+340 bp Q3/Q3) and improvement in the underlying cost/income ratio excluding SRF4 (by -2.0 pp to 59.6% in Q3 and -0.4 pp to 60.5% over 9M) despite development investments in the Asset Gathering business line;
  • Cost of credit risk low: 29 basis points5, normalisation of the cost of risk in CIB, Q3/Q2 decrease for CACF and CA Italy;
  • CET1 ratio up +0.1 pp in Q3 to 11.7%, thanks in particular to the stability of organic risk-weighted assets in the business lines;
  • Upgrade by Moody’s of Casa’s LT credit rating to Aa3;
  • Continuation of implementation of the 2022 Medium-Term Plan: growing digitalisation of customer relations, increase in customer satisfaction, customer capture buoyant in France and Italy (+210,000 individual customers); issue of a €1 bn Green bond.
Crédit Agricole Group*
Underlying revenues1
Q3: €8,331 m
+2.9% Q3/Q3
9M: €25,188 m
+1.8% 9M/9M
Underlying net income2
Q3: €1,924 m
+6.0% Q3/Q3
 9M: €5,205 m
-0.3% 9M/9M
CET1 ratio
15.5%
+0.1 pp Sept/June
+5.8 pp above SREP6
§  Stated net income2 for Q3: €1,849 m, +4.5% Q3/Q3 (9M: €5,012 m, -5.0% 9M/9M);
§  Operating expenses excl. SRF4 under control over 9M (+1.5% 9M/9M), cost/income ratio down (62.7%, -0.1 pp 9M/9M) 

§  Cost of credit risk low at 20 basis points5, one-off provisions in CIB;

§  Increase in the Regional Banks’ underlying revenues over 9 months (+1.9%), cost of risk stable at 12 bp.

* Crédit Agricole S.A. and 100% of Regional Banks. 

This press release comments on the results for Crédit Agricole S.A. and for Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 56.6% of Crédit Agricole S.A. Please see p.17 onwards of this press release for details of specific items, which are restated in the various indicators to calculate underlying results. A reconciliation between the stated income statement and the underlying income statement can be found from p.23 onwards for Crédit Agricole Group and from p.19 onwards for Crédit Agricole S.A.

Crédit Agricole S.A.

Strong increase in underlying quarterly net income Group share

  • Underlying net income Group share: Q3-19 €1,226 m, +8.2% Q3/Q3, 9M-19 €3,264 m, -2.2% 9M/9M, increase in business line results (excluding Corporate Centre) (+6.8% Q3/Q3, +2.4% 9M/9M);
  • Solid contributions from the Asset Gathering division, GOI still strong in French Retail Banking, and strong growth (+24%) in the contribution of CA Italia, good cost control and strong contribution from automotive partnerships in Specialised Financial Services, and solid performance in capital markets, with an increase in the contribution from Large Customers despite the reversal of the cost of risk in the division;
  • Over 9M-19, underlying net income Group share high (€3,264 m) despite the CC’s contribution being penalised by a high H1-18 base, the +2.0 pp increase in the corporate income tax rate, and the measured increase in the cost of risk, due to the normalisation in CIB;
  • Annualised underlying ROTE7 11.3%, good profitability in all business lines.

Increase in underlying revenues Q3/Q3 (+4.9%) and 9M/9M (+1.8%), as a result of dynamic commercial activity

  • String inflows in Asset management, Insurance, Wealth management and Asset servicing. Record net inflows for Amundi;
  • Property and casualty insurance outperforming the French market (6.8% increase in premiums Q3/Q3), increase in customer equipment rates (+1.5 pp for the Regional Banks Sept./Sept., +1.2 pp for LCL);
  • Continued growth in loans and customer savings, increase in equipment rates, and continuing momentum of customer capture in Retail Banking (+210,000 individual customers since the end of 2018 (+156,000 at the Regional Banks, +40,000 at LCL, +16,000 at CA Italia);
  • Strong performance of the automotive partnerships, generating equity-accounted income;
  • Commercial activity strong in capital markets, commercial banking positions maintained in a slowing syndicated loan market in the eurozone.

Very positive jaws effect (+340 bp) and improvement in the cost/income ratio

  • Underlying costs: +1.5% Q3/Q3, due in particular to the development of international and corporate insurance. Positive jaws effect in the Retail banking and Large customer business lines. Costs stable in Specialised financialsServices.
  • Underlying cost/income ratio at 59.6% (-2.0 pp) in Q3, and 60.5% over 9M (-0.4 pp);
  • Cost of risk low, at 29 bp, normalisation in CIB, down at CACF and at CA Italia:

Financial strength confirmed this quarter

-          CET1 ratio at 11.7%, +0.1 pp Sept/June, risk-weighted assets stable in the business lines;

Continuing implementation of the 2022 Medium-Term Plan

  • Increase in NPS8 in Retail banking, digital interaction with customers strengthened, customer capture buoyant in France and Italy (+210,000 individual customers since the end of 2018).
  • Issuance of a non-preferred senior Green bond for €1 billion in October.
  • Upgrade by Moody’s of Crédit Agricole S.A.’s long-term credit rating to Aa3.

Crédit Agricole S.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 7 November 2019 to review the financial statements for the third quarter and first nine months of 2019.

In the third quarter of 2019, stated net income Group share reached €1,199 million, versus €1,101 million in the third quarter of 2018. The specific items recorded this quarter generated a limited negative net impact of -€28 million on net income Group share. For the record, they had a limited negative impact of -€32 million in the third quarter of 2018.

Excluding these specific items, underlying net income Group share for the third quarter of 2019 totalled to €1,226 million, an increase of +8.2% compared with the third quarter of 2018.

Underlying earnings per share stood at €0.34 in the third quarter of 2019, down -6.3% compared with the third quarter of 2018.

Crédit Agricole S.A. - Stated and underlying results, Q3-19 and Q3-18

In €m Q3-19
stated
Q3-18
stated
Var Q3/Q3
stated
Q3-19
underlying
Q3-18
underlying
Var Q3/Q3
underlying
             
Revenues 5,031 4,802 +4.8% 5,073 4,834 +4.9%
Operating expenses excl.SRF (3,025) (2,998) +0.9% (3,025) (2,979) +1.5%
SRF (2) - n.m. (2) - n.m.
Gross operating income 2,004 1,804 +11.1% 2,046 1,856 +10.3%
Cost of risk (335) (218) +53.2% (335) (218) +53.2%
Cost of legal risk - - n.m. - - n.m.
Equity-accounted entities 82 78 +5.1% 82 78 +5.1%
Net income on other assets 17 (0) n.m. 17 (0) n.m.
Change in value of goodwill - - n.m. - - n.m.
Income before tax 1,769 1,663 +6.3% 1,811 1,715 +5.6%
Tax (423) (434) (2.5%) (437) (449) (2.7%)
Net income from discont'd or held-for-sale ope. 0 (1) n.m. 0 (1) n.m.
Net income 1,346 1,228 +9.6% 1,374 1,265 +8.6%
Non controlling interests (147) (128) +15.6% (148) (132) +12.1%
Net income Group Share 1,199 1,101 +8.9% 1,226 1,133 +8.2%
Earnings per share (€) 0.33 0.35 (6.0%) 0.34 0.36 (6.3%)
Cost/Income ratio excl.SRF (%) 60.1% 62.4% -2.3 pp 59.6% 61.6% -2.0 pp

Activity grew in the Crédit Agricole S.A. business lines, despite a persistency difficult interest rate environment.

The Crédit Agricole S.A. business lines and the Crédit Agricole Group retail networks, in particular the Regional Banks, which distribute the products and services of Crédit Agricole S.A.’s business lines, again enjoyed excellent activity levels this quarter, in lending, customer savings and protection of assets and individuals. Customer equipment increased, reflecting the potential for organic growth through revenue synergies of the Group’s Universal Customer-focused Banking model.

  • In Savings/Retirement, premium income amounted to €6.8 billion in the third quarter of 2019 (+13.9% compared to the third quarter of 2018). As of 30 September 2019, net inflows into retirement savings reached €2.4 billion, up +20% compared with the third quarter of 2019. Unit-linked contract inflows increased by 7.5% compared with the third quarter of 2018, to €1.3 billion (54% of total net inflows, 29.2% of gross inflows). The share of UL in outstandings reached 22.4%, a year-on-year increase of +0.7 percentage points. For several years, Crédit Agricole Assurances has adapted its strategy to the low interest rate environment. It has considerable flexibility to respond to this context: at end-September 2019, the Policyholder Participation Reserve (PPE) reached €10.8 billion (+€948 million compared with December 2018), representing 5.2% of outstanding euro contracts and a level of coverage above the average for the French market. Crédit Agricole Assurances is also adopting incentivising measures for UL policies and a downward trend in policyholders’ profit-sharing.
     
  • In Property and Casualty insurance, Crédit Agricole Assurances continued to outperform the French market, with premium growth of +6.8% in the third quarter of 2018, driven by continued strong growth in France (6.8%) and Italy (+12% Q3/Q3). Crédit Agricole Assurances recorded a net contribution of +148,000 contracts over the quarter, reaching nearly 14.0 million contracts at end-September 2019. In the LCL networks, the equipment rate for individual customers9 increased (24.7% as at end-September 2019, an increase of +1.2 percentage point since September 2018). Equipment rate also increased in the Regional Banks (37.4% at end-September 2019, an increase of +1.5 percentage point since September 2018). The combined ratio was well managed at 95.5%, an improvement of 0.1 percentage point year on year, despite the frost/hail and drought claims of 2019. In Death & disability/Creditor/Group, revenues reached nearly €984 million in the third quarter of 2019, up +9.2% compared with the same period in 2018, driven by growth in all three business segments.
  • Asset management (Amundi) recorded record net inflows of €42.7 billion this quarter, driven by both medium- to long-term assets (+€25.3 billion, thanks to the recovery in Retail inflows, driven by the joint ventures and by third-party distributors) and treasury products (+€17.4 billion, due to the return of institutional and corporate customers). Assets under management reached €1,563 billion at end-September 2019, up +5.9% compared with end-September 2018, despite continuing uncertainty in the global environment.
  • Retail banking is still showing strong sales momentum, with high rates of credit growth, particularly in France for LCL (up +9.2% compared with end-September 2018), thanks to home loans (+9.1%) and the small businesses and corporate markets (+9.9%), but also in Italy for CA Italia (+3.1%), driven by loans to individuals (+5.5%) and businesses (+6.1%). LCL’s inflows increased year on year (+6.6%), driven by on-balance sheet deposits (+10%, including +12.4% for passbooks and +10.7% for demand deposits) but also by off-balance sheet deposits (+2%). In Italy, inflows rose moderately (+1.9%), thanks to strong performance in off-balance sheet deposits (+4.4%) against a backdrop of a declining market, and to the stability of on-balance sheet deposits. Net customer capture is still buoyant at LCL (+49,000 individual and SME and small business customers since the beginning of the year, and +14,000 customers of LCL Essentiel since its launch in April), and at CA Italia (+16,000 individual customers since the beginning of the year). Equipment rates continued to increase steadily, with growth of +7.7% in comprehensive auto/home/health contracts and +4.7% in premium cards at LCL, and a +22% increase in the number of property and casualty insurance policies and +1.6 percentage point in the equipment rate at CA Italia year on year.
  • In the Specialised Financial Services business line, CA Consumer Finance’s gross managed loans increased by 5.4% compared with end-September 2018, to reach €90.6 billion, driven by the Retail Banks of Crédit Agricole Group (+6.8%) and the automotive partnerships (+6.7%). Production was stable this quarter compared with the third quarter of 2018, at €10.6 billion. CAL&F’s activity is buoyant, both in factoring and in leasing. Business factoring production is at a good level, particularly outside of France (€1.0 billion) and commercial leasing production in France increased by +32% compared with the third quarter of 2018. 
  • Activity in the Large Customers business line is overall good, with revenues up in the third quarter of 2019 (+6.3% compared with the third quarter of 2018) and over the first nine months of the year (+2.4%). Underlying revenues from Capital markets and investment banking (FICC) increased sharply (+21.6% compared with the third quarter of 2018), driven by strong commercial activity across almost all product lines and the upturn in advisory transactions. Structured finance recorded good performances this quarter (+5.9%), while revenues in commercial banking were penalized (-9.9%) by a sluggish environment with no major transactions (-25% year on year of syndicated EMEA loans10). Nevertheless, the business line has maintained its leading position in EMEA syndicated loans11. Lastly, Asset servicing (CACEIS) posted record levels of assets under custody (€3,144 billion, up +16.4% year on year) and assets under administration (€2,023 billion, up +13.3% year on year) this quarter, thanks to sustained activity on existing customers and to the on-boarding of new customers.

In keeping with the strategy outlined at the presentation of the Group’s Medium-Term Plan on 6 June 2019, Amundi, CA Consumer Finance and CACEIS continued their policy of non-Group partnerships in Europe and Asia this quarter. 

  • The quarter saw the first consolidation of SoYou resulting from the partnership signed between CA Consumer Finance and Bankia on 7 March 2018. On 10 October 2019, the joint venture was approved by the Spanish Ministry of Economy to operate as a financial credit institution.
  • KAS Bank was consolidated in the CACEIS financial statements as at 30 September 2019 following CACEIS’ friendly public takeover bid, launched on 26 July for all of the share capital of KAS Bank. This confirmed CACEIS’ pan-European ambitions by strengthening its position in the Netherlands and its capabilities to serve the customer base of insurance companies and pension funds; this acquisition will create value thanks to its strong potential for synergies.
  • On 19 July 2019, CACF also signed an agreement with Fiat Chrysler Automobiles (FCA) to extend their 50/50 joint venture until 31 December 2024.

Besides these operations, the following transactions were announced since the beginning of 2019:

  • On 17 April, Crédit Agricole S.A. and Santander announced the merger of their custody and asset servicing operations; after this merger, Crédit Agricole S.A. and Santander would hold 69.5% and 30.5% respectively of this new entity, which will keep the name “CACEIS” and combine the activities of CACEIS and Santander Securities Services (“S3”) in Spain and Latin America (Brazil, Mexico and Colombia). This new entity would benefit from greater scale and stronger competitive positioning thanks to an expanded geographical presence, making it better placed to capture growth in high potential markets (Latin America and Asia). The operation should be completed before the end of 2019.
  • On 29 April, CACIB completed the disposal of a 4.9% stake in Banque Saudi Fransi (BSF) to a consortium headed by Ripplewood, thereby reducing its stake in Banque Saudi Fransi to 10% and, subject to the exercise of a warrant on 6% of the equity, to 4% by the end of the year; the impact of this transaction was booked in the second quarter directly in equity that may not be reclassified.
  • On 28 June 2019, CA Consumer Finance signed a final agreement with Banco BPM (Italy’s third-largest bank) to strengthen their global partnership, expanding their commercial relationship to the entire Banco BPM branch network, including the acquisition of Profamily’s banking business, and extending it for 15 years.
  • On 8 July, Crédit Agricole Assurances and Abanca signed a partnership agreement to create a non-life insurance company for the Spanish and Portuguese markets over a 30-year period. The agreement provides for the creation of a 50/50-owned joint venture that will offer the market innovative products based on technological solutions and a differentiated customer experience. The alliance will combine Abanca’s knowledge of the customer base with the expertise developed by Crédit Agricole Assurances in the European insurance market. The European Commission approved the creation of a joint venture on 28 October 2019.

Specific items in this quarter are few in number and show a limited net negative effect of -€28 million on net income Group share. They include only recurring volatile accounting items, namely the DVA (Debt Valuation Adjustment, i.e. gains and losses on financial instruments related to changes in the Group’s issuer spread) for ‑€2 million in net income Group share and the loan book hedge for -€1 million in the Large Customers business line, as well as the provision for home purchase savings schemes for -€5 million and -€20 million respectively in net income Group share in the French Retail banking division and the Corporate Centre. In the third quarter of 2018, specific items had a limited negative net impact of -€32 million on net income Group share and included the integration costs of Pioneer Investments at Amundi in the amount of ‑€6 million (-€12 million before tax and non-controlling interests), and those of the three Italian banks for -€4 million (-€7 million before tax and non-controlling interests), as well as a net balance of -€23 million in net income Group share from recurring volatile accounting items, namely the DVA in the amount of -€6 million and hedging of the Large Customers loan book for -€10 million and changes in provisions for home savings schemes for -€7 million.

The business lines performed strongly in the third quarter of 2019. Underlying net income Group share of business lines12 increased by +6.8%, with all business lines contributing to this increase. The contribution from the Asset Gathering division increased by +2.5% to €502 million, with net income Group share remaining solid for insurance and Amundi. The Large Customers business line performed well, particularly in capital markets, with an increase of net income Group share by +12.8% to €478 million despite the reversal of CIB’s cost of risk. Retail banking saw its contribution increase by +6.0% to €251 million. Gross operating income continued to perform well in Retail banking in France, and CA Italia posted a sharp increase of +24.0% in its contribution. Strong performance of the automotive partnerships in Specialised financial services generated equity-accounted income (contribution up by +17.8% between the third quarter of 2018 and the third quarter of 2019).

In the third quarter of 2019, underlying revenues reached €5,073 million, up +4.9% thanks to buoyant commercial activity and despite a persistently difficult interest rate environment. This was mainly due to the strong increase in revenues in the Asset Gathering division (+3.8%, benefiting from record inflows for Amundi and from an outperformance of the French market by the property and casualty insurance activity), but also due to the performance of the Large Customers business line (+6.3% due to the momentum in capital markets banking, and to the maintenance of commercial banking positions in a syndicated loan market experiencing a slowdown in the eurozone). The underlying revenues of all the business lines (excluding CC) increased by +3.1% this quarter.

These positive revenue trends were accompanied by good cost control. Underlying operating expenses excluding SRF showed a controlled increase of +1.5% compared with the third quarter of 2018, making it possible to achieve a very significantly positive jaws effect of +340 basis points. Nevertheless, business development continued in all the business lines, with expenses rising by +2.9% between the third quarter of 2018 and the third quarter of 2019. The Asset Gathering division in particular saw an increase in expenses, reflecting the development of international and corporate insurance. Retail Banking posted positive jaws effects with 90 basis points for LCL and 140 basis points for International Retail Banking, likewise the Large Customers division, with 240 basis points. The Specialised financial services division recorded stable expenses over the period. The underlying cost/income ratio stood at 59.6% for the third quarter of 2019, an improvement of 2 percentage points over the period.

Underlying gross operating income was therefore up +10.3% compared with the third quarter of 2018.

Cost of risk increased by +53.2%/-€117 million, to -€335 million versus ‑€218 million in the third quarter of 2018, mainly due to a reversal of the cost of credit risk in Corporate and Investment Banking, which reported net reversals of provisions for +€52 million in the third quarter of 2018, while it reported net charges of -€48 million (i.e., -€100 million differences) this quarter. For the same reason, we are seeing a normalisation of the cost of risk on outstandings13 for the third quarter of 2019. It stood at 29 basis points, up +4 basis points versus the third quarter of 2018 and up +4 basis points versus the previous quarter, but remained low. The other three business lines that contributed the most to the cost of risk show contrasting variations, albeit of very limited magnitude. LCL thus posted a +15.5% increase in the cost of risk, to -€58 million, but its cost of risk relative to outstandings remained low at 17 basis points (+1 point versus the previous quarter). CA Italia declined sharply, by -12.0%, with the cost of risk relative to outstandings continuing to improve, rising to 59 basis points (from 73 basis points in the third quarter of 2018 and 62 basis points in the second quarter of 2019); lastly, CACF recorded a decline of -3.8% to €121 million compared to the third quarter of 2018, with the cost of risk relative to outstandings also falling to 120 basis points.

The contribution of equity-accounted entities increased sharply, by +5.1%, to €82 million, reflecting in particular the strong performance of CA Consumer Finance’s partnerships (+17.8% compared to the third quarter of 2018).

Net income from other assets was €17 million, as a result of a one-off real estate transaction in Wealth management. Underlying income14 before tax, discontinued operations and non-controlling interests thus increased by +5.6% to €1,811 million. The underlying effective tax rate was 25.3%, a fall by -2.2 percentage points compared to the third quarter of 2018, in particular as a result of a favourable decision on a tax dispute at Crédit Agricole CIB in the third quarter of 2019. The underlying tax charge was therefore down -2.7% to €437 million, and underlying net income before minority interests was therefore up by +8.7%.

Net income attributable to non-controlling interests increased by +12.1% to €148 million, mainly in line with the change in the underlying result.

Underlying net income Group share increased by +8.2% versus the third quarter of 2018, to €1,226 million.

In the first nine months of 2019, stated net income Group share amounted to €3,183 million, compared with €3,393 million in the first nine months of 2018, a decrease of -6.2%.

Specific items in the first nine months of 2019 had a negative impact of -€81 million on stated net income Group share. In addition to the third quarter items already mentioned above, the first-half 2019 items had a negative impact of    -€20 million and also corresponded to the recurring volatile accounting items, i.e. the DVA for -€3 million, loan book hedges in the Large Customers division for -€6 million, and changes in the Home Purchase Savings Plan for -€12 million. Specific items in the first nine months of 2018 had a positive impact of +€54 million on net income Group share. Compared to the third quarter 2018 items already mentioned above, they had a positive impact of +€87 million on net income Group share in first-half 2018, i.e. the adjustment of negative goodwill recognised at the time of acquisition of the three Italian banks totalling +€66 million, ‑€8 million for the costs of integrating Pioneer Investments (-€18 million before tax and non-controlling interests) as well as recurring specific items, namely the DVA for +€11 million (+€15 million before tax) and loan book hedges in the Large Customers division for +€14 million (+€20 million before tax).

Excluding these specific items, underlying net income Group share reached €3,264 million, down -2.2% compared to the first nine months of 2018.

Underlying earnings per share came to €0.97, a decrease (-8.6%) compared to the first nine months of 2018.

Annualised ROTE15 net of coupons on Additional Tier 1 (return on equity Group share excluding intangible assets) was 11.3% in the first nine months of 2019, a decrease compared with financial year 2018 (13.1%).

Crédit Agricole S.A. - Stated and underlying results, 9M-19 and 9M-18

In €m 9M-19
stated
9M-18
stated
Var 9M/9M
stated
9M-19
underlying
9M-18
underlying
Var 9M/9M
underlying
             
Revenues 15,034 14,882 +1.0% 15,155 14,880 +1.8%
Operating expenses excl.SRF (9,161) (9,073) +1.0% (9,161) (9,053) +1.2%
SRF (340) (302) +12.5% (340) (302) +12.5%
Gross operating income 5,534 5,507 +0.5% 5,654 5,525 +2.3%
Cost of risk (917) (755) +21.4% (917) (755) +21.4%
Cost of legal risk - (5) (100.0%) - - n.m.
Equity-accounted entities 275 248 +11.0% 275 248 +11.0%
Net income on other assets 39 32 +21.8% 39 32 +21.8%
Change in value of goodwill - 86 (100.0%) - - n.m.
Income before tax 4,931 5,113 (3.5%) 5,052 5,050 +0.0%
Tax (1,302) (1,244) +4.7% (1,340) (1,250) +7.2%
Net income from discont'd or held-for-sale ope. 8 (3) n.m. 8 (3) n.m.
Net income 3,637 3,866 (5.9%) 3,720 3,797 (2.0%)
Non controlling interests (454) (473) (4.1%) (455) (459) (0.7%)
Net income Group Share 3,183 3,393 (6.2%) 3,264 3,338 (2.2%)
Earnings per share (€) 0.94 1.08 (12.8%) 0.97 1.06 (8.6%)
Cost/Income ratio excl.SRF (%) 60.9% 61.0% -0.0 pp 60.5% 60.8% -0.4 pp

In the first nine months of 2019, business line results were up +2.5%, thanks to good growth in activity, controlled growth in expenses (positive jaws effect of +40 basis points), and the maintenance of the cost of risk at a very low level. The negative contribution of the Corporate Centre (‑€683 million, compared with -€515 million in the first nine months of 2018) resulted from a deterioration in the items for this division other than “structural” net income, compared with a high base in 2018.

Underlying revenues were up +1.8% compared to the first nine months of 2018, with a positive contribution to this growth by all business lines except Specialised financial services. The environment for consumer finance is one of strong competitive pressure in France, and the business line launched new partnerships (resulting in customer capture costs) over the period. The very strong performance of automotive partnerships is accounted for using the equity method. Leasing and factoring saw their activity stabilise, with strong momentum in leasing activity in particular. Revenues in the Large Customers business line rose slightly (+2.4%).

Underlying operating expenses increased slightly, by +1.2%, excluding SRF contributions. This control of expenses led to a positive jaws effect of +60 basis points over the period. In the business lines alone, the increase in operating expenses excluding SRF was +1.6%, concentrated mainly in the Asset Gathering and Large Customers divisions, where expenses are rising in connection with business development. The underlying cost/income ratio excluding SRF was 60.5%, including IFRIC21 expenses in the first quarter, an improvement of 0.4 percentage points compared to the third quarter of 2018.

Lastly, the cost of credit risk showed an increase of +21.4%/-€162 million compared to the first nine months of 2018, to -€917 million. This increase is mainly due to the Large Customers business line (which reported a risk charge of -€105 million at end-September 2019, compared to a net reversal of +€38 million at end-September 2018) and financing activities in particular, stemming from the one-off provisions reported in the period.

At end-September 2019, Crédit Agricole S.A. retains a high level of solvency, with a Common Equity Tier 1 (CET1) ratio16 of 11.7%, up 0.1 pp from end-June 2019. Organic risk-weighted assets in the business lines were stable (+€0.8 billion) in the third quarter of 2019. Risk-weighted assets stood at €330 billion at end-September 2019, compared with €323 billion at end-June, an increase of 2.1% over a quarter. Despite the stability of risk-weighted assets in the business lines (+€0.8 billion), this increase can be explained mainly by the increase in risk-weighted assets related to unrealised gains and the inclusion of the insurance companies’ results for the period (+€3.3 billion in total), the impact of exchange rates (+€1.8 billion) and the acquisition of Kas Bank by CACEIS (+€0.8 billion). For the record, equity investments in insurance companies are weighted on the basis of risk-weighted assets, up to 370% of the equity-accounted value.

On CET1 ratio, capital generation over the quarter (+17 basis points, including a dividend provision of €0.17 over the third quarter of 2019 and €0.47 over the nine-month period) and the positive change in unrealised reserves (+8 basis points) were offset by the impact of the increase of the insurance results through the value of equity-accounted (-5 basis points). The other impacts consist of and the effect of the acquisition of Kas Bank by CACEIS (-3 basis points), a foreign exchange impact (-1 basis point) and the positive impact of the capital increase reserved for employees (+5 basis points) on the CET1 of Crédit Agricole S.A. this quarter.

The phased-in leverage ratio was 4.3% at end-September 2019 as defined in the Delegated Act adopted by the European Commission. The intra-quarter average measure of phased-in leverage ratio17 stood at 4.0% in the third quarter of 2019.

Crédit Agricole S.A.’s average LCR (Liquidity Coverage Ratio) over 12 months stood at 131.7%18 at end-September 2019, which is higher than the target level of around 110% set out in the Medium-Term Plan.

At the end of October 2019, Crédit Agricole S.A. had completed 88% of its medium-to-long-term market funding programme for the year. The bank raised the equivalent of €15 billion, of which €8.7 billion equivalent of senior preferred debt and secured senior debt, and €4.5 billion equivalent of senior non-preferred debt and €1.8 billion equivalent of Tier 2 debt. The 2019 programme is set at €17 billion, including around €5 to €6 billion of TLAC eligible debt (Tier 2 debt or senior non-preferred debt). Note that Crédit Agricole S.A. made a Green senior non-preferred debt issue for €1 billion in October 2019 (included in the amounts above).

*           *

*

Philippe Brassac, Chief Executive Officer, commented on the third quarter 2019 and first nine months 2019 results and activity of Crédit Agricole S.A. as follows: “The results of Crédit Agricole S.A. rose sharply this quarter, to +8.9%, as a result of buoyant commercial activity in all business lines. As a consequence, the Group recorded 210,000 new customers in France and Italy this year; our customer’s equipment rates continue to rise, reflecting the Group’s potential for organic growth, in particular through synergies between entities. Although we are investing in the development of our businesses, and in particular insurance, both internationally and for corporates, our operational efficiency continues to improve, as evidenced by the very significant jaws effect this quarter and the improvement in the cost/income ratio. Our cost of risk, lastly, remains very low. The rating agencies have recognised the strength of our model, which is based on relational as well as operational excellence. Moody’s raised CAsa’s medium-to-long-term rating to Aa3 this quarter, given our Additional Tier 1 instruments an “investment grade” status. Our financial solidity is confirmed this quarter: the CET1 ratio of Crédit Agricole S.A. secures our dividend policy and makes a first unwinding of the Switch possible in 2020.”

Crédit Agricole Group

In the third quarter, underlying net income Group share of Crédit Agricole Group was €1,924 million, up +6.0% compared with the third quarter of 2018. In the first nine months of 2019 the underlying net income Group share of Crédit Agricole Group reached €5,205 million, stable compared with the first nine months of 2018.

This performance was achieved thanks to very strong activity in all business lines and the implementation of the customer project. Digital interaction with customers has strengthened, with an increase of +2.5 percentage points in the use of the Regional Banks’ MaBanque mobile app and +3 percentage points in the use of the LCL mobile application since the beginning of the year. The weight of online transactions increased by +6 percentage points at CA Italia. Customer satisfaction improved in 2019, with a positive individual customer NPS19 in the Regional Banks, compared to the market average of -1 in France. There was a sharp rise in the individual customer NPS in the Regional Banks (+5) and LCL (+8). Customer relations are intensifying for the Regional Banks, with an increase in the proportion of “active” DAVs20. There was strong momentum in acquisition once again, with +210,000 additional individual customers, including 156,000 for Regional Banks, 40,000 for LCL and 15,000 for CA Italia since the beginning of the year. Since its launch a year ago, 342,000 customers of the Regional Banks’ have been met in the context of “Trajectoires Patrimoine”. Finally, customer equipment continues to grow, with a +1.5 percentage point increase in property and casualty insurance for the Regional Banks, 1.2 percentage point for LCL, and 1.6 percentage point for CA Italia.

The Regional Banks’ revenues were stable in the third quarter of 2019 compared with the third quarter of 2018, thanks to a good level of growth in fee and commission income (+3.4%), particularly in banking and insurance. Expenses were up +3.4% in the third quarter of 2019 compared with the third quarter of 2018, mainly due to IT investments, but underlying net income Group share was up sharply over the period (+2.7%), notably due to the significant decrease in the cost of risk in third quarter 2019, compared to a third quarter 2018 which was impacted by collective provisions.

The Group’s underlying revenues reached 8,331 million euros in the third quarter of 2019, up +2.9% year on year, reflecting the strength of the Universal Customer-focused Banking model, stable and diversified, and which generates organic growth in all the business lines, thanks in particular to revenue synergies between specialised business lines and distribution networks. Operating expenses excluding SRF are well controlled (+2.7% increase in third quarter 2019), while incorporating IT investments in the Regional Banks and investments to develop Casa’s business lines, especially in the Asset Gathering business line. A positive year-on-year jaws effect of 20 basis points is recorded. The cost/income ratio improved by 0.1 percentage points compared with the third quarter of 2018, reaching 62.7% this quarter, reflecting the Group’s high level of operational efficiency.

The Regional Banks’ cost of credit risk relative to outstandings remained stable, at 12 basis points, with the NPL ratio at 2.0% and NPL coverage ratio at 97.3%. The Group’s cost of credit risk increased by +18.9% compared with the third quarter of 2018 as a result of the reversal of the cost of risk in CIB, but remained very low, and the NPL coverage ratio reached 83.5%.

The Group’s Common Equity Tier 1 ratio was 15.5% at end-September 2019, an increase of 0.1 percentage points compared with end-June 2019, and 580 basis points above the required regulatory level21.

Finally, the Group is continuing to roll out its social project, with the issuance in October of a non-preferred senior Green bond of €1 billion.

In the third quarter of 2019, Crédit Agricole Group’s stated net income Group share was €1,849 million, versus €1,769 million in the third quarter of 2018. The specific items recorded this quarter generated a negative net impact of -€76 million on net income Group share.

Excluding these specific items, underlying net income Group share22 was €1,924 million, up +6.0% compared with the third quarter of 2018.

Credit Agricole Group - Stated and underlying results, Q3-19 and Q3-18

In €m Q3-19
stated
Q3-18
stated
Var Q3/Q3
stated
Q3-19
underlying
Q3-18
underlying
Var Q3/Q3
underlying
             
Revenues 8,216 8,043 +2.2% 8,331 8,097 +2.9%
Operating expenses excl.SRF (5,220) (5,102) +2.3% (5,220) (5,083) +2.7%
SRF - - n.m. - - n.m.
Gross operating income 2,997 2,940 +1.9% 3,111 3,014 +3.2%
Cost of risk (384) (323) +18.9% (384) (323) +18.9%
Cost of legal risk - - n.m. - - n.m.
Equity-accounted entities 85 77 +10.0% 85 77 +10.0%
Net income on other assets 18 2 x 10.8 18 2 x 10.8
Change in value of goodwill - - n.m. - - n.m.
Income before tax 2,715 2,696 +0.7% 2,830 2,770 +2.2%
Tax (748) (816) (8.4%) (787) (839) (6.2%)
Net income from discont'd or held-for-sale ope. 0 (1) n.m. 0 (1) n.m.
Net income 1,968 1,879 +4.7% 2,043 1,930 +5.9%
Non controlling interests (119) (110) +7.9% (119) (115) +3.8%
Net income Group Share 1,849 1,769 +4.5% 1,924 1,815 +6.0%
Cost/Income ratio excl.SRF (%) 63.5% 63.4% +0.1 pp 62.7% 62.8% -0.1 pp

In the third quarter of 2019, underlying revenues increased by +2.9% compared with the third quarter of 2018, to €8,331 million, and by +1.8% for the business lines excluding the Corporate Centre. This growth was driven by revenues from the Asset gathering business line, which increased by +3.1%, International Retail banking, which were up +4.4%, and Large customers, which rose +6.2%. Revenues in the Specialised financial services business lines fell by -2.7%, but the handsome performance by automotive partnerships was accounted for using the equity method. Revenues from French Retail banking were stable, up +0.2%.

Underlying operating expenses excluding SRF contribution were up +2.7% compared with the third quarter of 2018, in connection with IT investments in the Regional Banks under the Medium-Term Plan, and development expenses in the Crédit Agricole S.A. business lines, especially Asset Gathering. The underlying cost/income ratio excluding SRF stood at 62.7%, an improvement of 0.1 percentage points compared with the third quarter of 2018.

Underlying gross operating income including the contribution to the SRF increased to €3,111 million compared with the third quarter of 2018 (+3.2%).

The cost of credit risk rose by +18.9% to -€384 million, versus -€323 million in the third quarter of 2018. This increase stems in particular from the Large customers business line, where the cost of credit risk is normalising, with net provisions of -€45 million, compared with net reversals of +€57 million in the third quarter of 2018. Crédit Agricole Group’s cost of risk relative to outstandings23 was 20 basis points, up +2 basis points from the third quarter of 2018, but low and below the Medium-Term Plan assumption of 25 basis points.

By incorporating the contribution from equity-accounted entities, which was up by +10.0% from €77 million to €85 million as a result of the strong performance of automotive partnerships at CACF, underlying pre-tax income was €2,830 million, up +2.2% compared with the third quarter of 2018.

The underlying tax charge was down -6.2% compared with the third quarter of 2018, showing a sharp fall of +2.5 percentage points in the underlying tax rate, from 31.1% to 28.7%. Accordingly, underlying net income before non-controlling interests was up +5.9% and underlying net income Group share was up +6.0% compared with the third quarter of 2018.

Specific items had a net negative impact of ‑€76 million on net income Group share this quarter. These included only the net balance of recurring volatile accounting items such as the DVA (Debt Valuation Adjustment, i.e. gains and losses on financial instruments related to changes in the Group’s issuer spread), amounting to -€2 million, hedges on the Large Customers loan book for -€1 million, and the change in the provision for home purchase savings schemes in the amount of -€72 million. In the third quarter of 2018, specific items negatively impacted net income Group share by -€46 million, including ‑€6 million in integration costs for Pioneer Investments (-€12 million before tax and minority interests),    -€3 million from the integration costs for the three Italian banks (-€7 million before tax and minority interests), and, finally, -€37 million from the net balance in net income Group share of recurring volatile accounting items, i.e. the DVA for -€6 million and the loan book hedges in the Large Customers division for -€10 million, and the changes in provisions for home savings plans for -€21 million.

In the first nine months of 2019, underlying net income Group share was stable (-0.3%) compared with the same period in 2019, at €5,205 million, a slight fall of -€19 million. The increase in the cost of credit risk (-€122 million) due to the normalisation of the cost of risk in corporate and investment banking and the increase in the tax charge (-€141 million) offsetting the good growth in gross operating income (+€163 million).

Underlying net revenues increased by +1.8% and operating expenses excluding Single Resolution Funds (SRF) remained under tight control, at +1.6%. The Group therefore recorded a positive jaws effect of +20 basis points over the first nine months of the year.

Credit Agricole Group - Stated and underlying results, 9M-19 and 9M-18

In €m 9M-19
stated
9M-18
stated
Var 9M/9M
stated
9M-19
underlying
9M-18
underlying
Var 9M/9M
underlying
             
Revenues 24,898 24,729 +0.7% 25,188 24,748 +1.8%
Operating expenses excl.SRF (15,805) (15,586) +1.4% (15,805) (15,565) +1.5%
SRF (426) (389) +9.4% (426) (389) +9.4%
Gross operating income 8,667 8,754 (1.0%) 8,957 8,794 +1.9%
Cost of risk (1,263) (1,141) +10.7% (1,263) (1,141) +10.7%
Cost of legal risk - (5) (100.0%) - - n.m.
Equity-accounted entities 273 256 +6.8% 273 256 +6.8%
Net income on other assets 21 39 (46.6%) 21 39 (46.6%)
Change in value of goodwill - 86 (100.0%) - - n.m.
Income before tax 7,698 7,989 (3.6%) 7,989 7,948 +0.5%
Tax (2,323) (2,317) +0.3% (2,420) (2,331) +3.8%
Net income from discont'd or held-for-sale ope. 8 (3) n.m. 8 (3) n.m.
Net income 5,383 5,669 (5.0%) 5,577 5,614 (0.7%)
Non controlling interests (372) (395) (5.9%) (372) (390) (4.7%)
Net income Group Share 5,012 5,273 (5.0%) 5,205 5,224 (0.3%)
Cost/Income ratio excl.SRF (%) 63.5% 63.0% +0.5 pp 62.7% 62.9% -0.1 pp

At end-September 2019, customer capture in the Regional Banks was still buoyant, with +156,000 additional individual customers since the start of the year. Since the launch of “Trajectoires Patrimoine” a year ago, 342,000 customers have been met. In line with the Group Project, the Regional Banks are participating in the roll-out of the Customer Project. The customer relation is increasingly digitalised. Since the beginning of the year, we have seen a +2.5 pp increase in the number of users of the Regional Banks’ “MaBanque” application, as well as an increase in the number of customer contacts (+1 pp) in the Regional Banks. Customer satisfaction is up in all customer segments. The individual customers’ Net Promoter Score (NPS24) in particular is up sharply in 2019 (+5 versus 2018), and has become positive, while the average for the French market is -1. The momentum in the commercial development of the Regional Banks significantly contributed to growth in Crédit Agricole S.A.’s business lines, of which the Regional Banks, the leading retail banking network in France, are the prime partners in Retail Banking, demonstrating the strength of the Group’s Universal Customer-focused Banking model. Customer equipment continues to increase: the inventory of premium cards for individual customers rose +8.7% between September 2018 and September 2019, and property and personal insurance policies increased by +4.4% over the same period.

Outstanding loans grew +6.7% compared with 30 September 2019. This growth was driven by home loans (+7.5%), consumer finance (+6.8%), and corporate loans (+6.9%).

Customer savings rose +4.6% year on year, driven by on-balance sheet deposits (+6.0%) and, in particular, demand deposits (+10.1%) and passbook accounts (+11.2%). Off-balance sheet savings rose more modestly by +2.4% year on year, driven by life insurance assets (+4.4%).

The Regional Banks’ contribution to Crédit Agricole Group’s underlying net income Group share was €689 million, up +2.7% compared with the third quarter of 2018. At €3,244 million, underlying revenues remain stable (+0.1%) compared with the third quarter of 2018. This relative stability is mainly due to a good level of growth in fee and commission income, up +3.4% year on year (mainly due to banking services and insurance products), offsetting the pressure on interest income (-2.7% in the third quarter of 2019 compared with the third quarter of 2018).

Operating expenses (excluding SRF) were up +3.4% compared with the third quarter of 2018, corresponding mainly to continuing IT investments under the Group’s Medium-Term Plan. As a result, the underlying cost/income ratio excluding SRF was 66.2%.

Cost of risk recorded a significant decrease in the third quarter of 2019 to -€48 million, compared with the third quarter of 2018 (-€111 million), when collective provisions had been recorded. It represents 12 basis points on the basis of outstandings25. The NPL ratio stabilised at 2.0% and the NPL coverage ratio stands at 97.3%

Over the first nine months, the contribution of the Regional Banks to underlying net income Group share was €1,917 million, an increase of +2.7%.

The performance of the other Crédit Agricole Group business lines is described in detail in the section of this press release on Crédit Agricole S.A.

Over the quarter, Crédit Agricole Group’s financial strength remained robust, with a Common Equity Tier 1 (CET1) ratio26 of 15.5%, up by +0.1 percentage points compared with end-June 2019. This ratio provides a substantial buffer of 580 basis points in relation to the SREP requirement applicable to Crédit Agricole Group, set at 9.7% by the ECB.

The MREL ratio was estimated at 32% of risk-weighted assets (RWA) at 30 September 2019, and stood at 22.2% excluding eligible preferred senior debt. The target under the Crédit Agricole Group’s Medium-Term Plan is to achieve a subordinated MREL ratio (excluding potentially eligible preferred senior debt) of 24-25% of RWA by 2022. Expressed as a percentage of the institution’s total liabilities and own funds, after certain prudential restatements (Total Liabilities Own Funds – TLOF), the MREL ratio stood at 8.5% at 30 September 2019, excluding eligible preferred senior debt. This is in line with the Medium-Term Plan target of maintaining this ratio above 8% of TLOF, a level which would enable recourse to the Single Resolution Fund, subject to the decision of the Resolution Authority.

The TLAC ratio requirements have been applicable since 27 June 2019, when European Regulation CRR2 (Capital Requirement Regulation 2) came into force. At 30 September 2019, the Crédit Agricole Group’s TLAC ratio stood at 22.2% of RWA and 7.6% of leverage risk exposure (LRE), excluding eligible preferred senior debt. It was down 50 basis points compared with 30 June 2019, mainly due to the increase in risk-weighted assets, the withdrawal from Tier 1 instruments and the deduction of the Tier 2 issued by CAA. The level is still well above the CRR2/CRDV requirements27, by 2.5 percentage points for RWA and 1.6 percentage points for LRE respectively.

The phased-in leverage ratio came to 5.6% at end-September 2019.

The liquidity position of Crédit Agricole Group is solid. The Group’s banking cash balance sheet, at €1,289 billion at 30 September 2019, showed a surplus of stable funding sources over stable assets of €118 billion, up by €2.1 billion compared to end-June 2019, and in line with the target under the Medium-Term Plan (over €100 billion). The surplus of stable resources finances the HQLA (High Quality Liquid Assets) securities portfolio generated by the LCR (Liquidity Coverage Ratio) requirement for customer or customer-related activities. These securities (€110 billion) covered more than three times the short-term debt net of Central Bank deposits.

The liquidity reserves, which include capital gains and haircuts on securities portfolios, stood at €272 billion at 30 September 2019. The Group’s average LCR ratio over 12 months stood at 129.4%28 at end-September 2019, exceeding the Medium-Term Plan target of around 110%.

At end-September 2019, the Group’s main issuers raised the equivalent of €28.9 billion in medium/long-term debt on the markets, 45% of which was issued by Crédit Agricole S.A. In addition, €3.2 billion was placed in Crédit Agricole Group’s Retail banks (Regional Banks, LCL and CA Italia) and other external networks, as well as with supranational organisations at end-September 2019.

*           *

*

Dominique Lefebvre, Chairman of SAS Rue La Boétie and Chairman of Crédit Agricole S.A.’s Board of Directors, commented on the Group’s third quarter 2019 and first nine months 2019 results and activity as follows: “Over the first nine months of the year, the business lines of Crédit Agricole Group continued to expand, both in France and internationally. In line with our purpose, formulated when we presented our Medium-Term Plan in June, customer satisfaction is improving in all segments, and the Strategic Recommendation Index for the Regional Banks is above the French market in 2019. As a result of these efforts, all activity indicators are green in our businesses. We are also consolidating our position as world leader in this area, with a €1 billion Green bond issue in October. The three pillars of our unique relationship model, namely excellence in customer relations, empowered teams for customers, and commitment to society, create value in the uncertain economic environment we are experiencing”.

Corporate social and                        environmental responsibility                          of the Company

Green bonds

In October 2019, in line with the Group Project, Crédit Agricole S.A. issued a Green senior non-preferred bond for €1 billion.

Sustainable finance

As part of its leadership in green bonds, CACIB has developed a platform for sovereign issuers around the world. In this respect, CACIB was the Structuring Advisor for the historic $1 billion issuance in Hong Kong in May 2019. This issuance is financing sustainable projects, such as the development of energy-saving technologies or the construction of energy-efficient buildings. In addition, CACIB assisted Chile in July 2019 with the launch of its first green bond, for €861 million. This is the first euro issuance for a non-European sovereign issuer.

In September 2019, Unifergie and CACIB jointly arranged France’s largest-ever refinancing operation in renewable energy, and particularly in solar energy, with a new operation (Phoenix 5) of more than €800 million for Tenergie. Tenergie is the second-largest independent producer of solar power in France, with more than 800 power plants and 500 MWh of installed capacity. Unifergie, LCL and the Alpes Provence Regional Bank have assisted Tenergie since it was founded in 2008 and CACIB has already been involved in the €262 million refinancing of Phoenix 3 in 2018. Since the end of 2017, Tenergie has also been associated with CA Pyrénées Gascogne Énergies Nouvelles, part of Terre d’Énergies, an investment vehicle created for a strategic partnership in energy transition. The loans are refinancing 166 photovoltaic power plants and two wind farms for a total capacity of 255 MWh, supplying 110,000 households. Crédit Agricole Group has underwritten fifty per cent of the transaction, through CACIB’s underwriting capability and the involvement of LCL, 11 Regional Banks and Bpifrance.

The Group’s CSR commitments

Introduced on 22 September at the United Nations General Assembly, the Principles for Responsible Banking define the responsibilities of banks, as well as their obligations in terms of monitoring and publishing responsible finance objectives. Crédit Agricole S.A. has signed up to these principles, as well as the United Nations’ Collective Commitment to Climate Action, which sets out practical, binding measures that banks must take to strengthen their contributions to green finance. By signing up to the principles, Crédit Agricole S.A. has reaffirmed its determination to continue with efforts to promote a more inclusive economy and its intention to make green finance one of the Group’s keys to growth.

On 31 July, Philippe Brassac, Chief Executive Officer of Crédit Agricole S.A., and Christy Hoffman, Secretary General of UNI Global Union (international federation of trade unions for the services private sector) signed an international framework agreement to provide all Group employees with the same benefits, regardless of the country in which they work. This global agreement covers human rights, fundamental labour rights and the development of social dialogue. This agreement includes several commitments pertaining to disability (in providing that each entity has an action plan for the integration of disabled workers), parenthood (in establishing the principle of 16 weeks’ paid maternity leave) and death & disability (it plans to carry out an inventory of all the provident schemes in force in the Group’s entities).

Inclusive finance

In September 2018, in partnership with CA Indosuez Wealth (Asset Management) and CACEIS Bank, Luxembourg Branch, the Fondation Grameen Crédit Agricole launched FIR (“Finance Inclusive en milieu Rural”, Inclusive Finance Funds in Rural Areas), a sub-fund of Fonds Grameen Crédit Agricole and Crédit Agricole Group’s first microfinance fund. In 2018, fifteen Regional Banks, Crédit Agricole Assurances and Amundi invested nearly €8 million in the sub-fund. At the last fundraising round in June 2019, five new Regional Banks confirmed their investment for an amount of €1.6 million.

Moreover, Crédit Agricole Group invested €300 million in a fundraising campaign for Crédit Agricole Régions Développement (CARD). This strengthens its role with mid-cap companies in the regions and complements the system already put in place by the Regional Banks through their SCIR (Regional Private Equity Companies) subsidiaries.


Appendix 1 – Specific items, Crédit Agricole S.A. and Crédit Agricole Group 

Crédit Agricole S.A. - Specific items, Q3-19 et Q3-18, 9M-19 et 9M-18

    Q3-19 Q3-18   9M-19 9M-18
In €m   Gros impact* Impact on Net income Gros impact* Impact on Net income   Gros impact* Impact on Net income Gros impact* Impact on Net income
DVA (LC)   (3) (2) (8) (6)   (15) (11) 8 5
Loan portfolio hedges (LC)   (1) (1) (14) (10)   (28) (20) 6 4
Home Purchase Savings Plans (FRB)   (8) (5) (2) (1)   (19) (12) (2) (1)
Home Purchase Savings Plans (CC)   (30) (20) (9) (6)   (58) (38) (9) (6)
Total impact on revenues   (43) (28) (33) (23)   (120) (81) 2 3
Pioneer integration costs (AG)   - - (12) (6)   - - (30) (14)
3 Italian banks integration costs (IRB)   - - (7) (4)   - - 9 5
Total impact on operating expenses   - - (19) (10)   - - (21) (10)
ECB fine (CC)   - - - -   - - (5) (5)
Total impact Non-allocated legal risk provisions   - - - -   - - (5) (5)
Change of value of goodwill (CC)   - - - -   - - 86 66
Total impact on change of value of goodwill   - - - -   - - 86 66
Total impact of specific items   (43) (28) (52) (32)   (120) (81) 62 54
Asset gathering   - - (12) (6)   - - (30) (14)
French Retail banking   (8) (5) (2) (1)   (19) (12) (2) (1)
International Retail banking   - - (7) (4)   - - 9 5
Specialised financial services   - - - -   - - - -
Large customers   (4) (3) (21) (16)   (43) (31) 13 10
Corporate centre   (30) (20) (9) (6)   (58) (38) 72 55
* Impact before tax and before minority interests                    

Crédit Agricole Group - Specific items, Q3-19 et Q3-18, 9M-19 et 9M-18

    Q3-19 Q3-18   9M-19 9M-18
In €m   Gros impact* Impact on Net income Gros impact* Impact on Net income   Gros impact* Impact on Net income Gros impact* Impact on Net income
                     
DVA (LC)   (3) (2) (8) (6)   (15) (11) 8 6
Loan portfolio hedges (LC)   (1) (1) (14) (10)   (28) (21) 6 5
Home Purchase Savings Plans (LCL)   (8) (5) (2) (1)   (19) (13) (2) (1)
Home Purchase Savings Plans (CC)   (30) (20) (9) (6)   (58) (38) (9) (6)
Home Purchase Savings Plans (RB)   (72) (47) (22) (14)   (170) (111) (22) (14)
                     
Total impact on revenues   (115) (76) (54) (37)   (290) (194) (19) (11)
                     
Pioneer integration costs (AG)   - - (12) (6)   - - (30) (14)
Integration costs 3 Italian banks (IRB)   - - (7) (3)   - - 9 6
                     
Total impact on operating expenses   - - (19) (9)   - - (21) (8)
                     
ECB fine (CC)   - - - -   - - (5) (5)
                     
Total impact Non-allocated legal risk provisions   - - - -   - - (5) (5)
                     
Change of value of goodwill (CC)   - - - -   - - 86 74
                     
Total impact on change of value of goodwill   - - - -   - - 86 74
                     
Total impact of specific items   (115) (76) (74) (46)   (290) (194) 41 50
Asset gathering   - - (12) (6)   - - (30) (14)
French Retail banking   (80) (53) (24) (15)   (189) (124) (24) (15)
International Retail banking   - - (7) (3)   - - 9 6
Specialised financial services   - - - -   - - - -
Large customers   (4) (3) (21) (16)   (43) (32) 13 10
Corporate centre   (30) (20) (9) (6)   (58) (38) 72 63

* Impact before tax and before minority interests


Appendix 2 – Crédit Agricole S.A.: Stated and underlying detailed income statement

Crédit Agricole S.A. - From stated to underlying results, Q3-19 and Q3-18

In €m Q3-19
stated
Specific items Q3-19
underlying
Q3-18
stated
Specific items Q3-18
underlying
Q3/Q3
stated
Q3/Q3
underlying
                 
Revenues 5,031 (43) 5,073 4,802 (33) 4,834 +4.8% +4.9%
Operating expenses excl.SRF (3,025) - (3,025) (2,998) (19) (2,979) +0.9% +1.5%
SRF (2) - (2) - - - n.m. n.m.
Gross operating income 2,004 (43) 2,046 1,804 (52) 1,856 +11.1% +10.3%
Cost of risk (335) - (335) (218) - (218) +53.2% +53.2%
Cost of legal risk - - - - - - n.m. n.m.
Equity-accounted entities 82 - 82 78 - 78 +5.1% +5.1%
Net income on other assets 17 - 17 (0) - (0) n.m. n.m.
Change in value of goodwill - - - - - - n.m. n.m.
Income before tax 1,769 (43) 1,811 1,663 (52) 1,715 +6.3% +5.6%
Tax (423) 14 (437) (434) 15 (449) (2.5%) (2.7%)
Net income from discont'd or held-for-sale ope. 0 - 0 (1) - (1) n.m. n.m.
Net income 1,346 (28) 1,374 1,228 (37) 1,265 +9.6% +8.6%
Non controlling interests (147) 0 (148) (128) 4 (132) +15.6% +12.1%
Net income Group Share 1,199 (28) 1,226 1,101 (32) 1,133 +8.9% +8.2%
Earnings per share (€) 0.33 (0.01) 0.34 0.35 (0.01) 0.36 (6.0%) (6.3%)
Cost/Income ratio excl. SRF (%) 60.1%   59.6% 62.4%   61.6% -2.3 pp -2.0 pp
                 
Net income Group Share excl. SRF 1,201 (28) 1,229 1,101 (32) 1,133 +9.1% +8.5%


Crédit Agricole S.A. - From stated to underlying results, 9M-19 and 9M-18

In €m 9M-19
stated
Specific items 9M-19
underlying
9M-18
stated
Specific items 9M-18
underlying
9M/9M
stated
9M/9M
underlying
                 
Revenues 15,034 (120) 15,155 14,882 2 14,880 +1.0% +1.8%
Operating expenses excl.SRF (9,161) - (9,161) (9,073) (21) (9,053) +1.0% +1.2%
SRF (340) - (340) (302) - (302) +12.5% +12.5%
Gross operating income 5,534 (120) 5,654 5,507 (18) 5,525 +0.5% +2.3%
Cost of risk (917) - (917) (755) - (755) +21.4% +21.4%
Cost of legal risk - - - (5) (5) - (100.0%) n.m.
Equity-accounted entities 275 - 275 248 - 248 +11.0% +11.0%
Net income on other assets 39 - 39 32 - 32 +21.8% +21.8%
Change in value of goodwill - - - 86 86 - (100.0%) n.m.
Income before tax 4,931 (120) 5,052 5,113 62 5,050 (3.5%) +0.0%
Tax (1,302) 38 (1,340) (1,244) 6 (1,250) +4.7% +7.2%
Net income from discont'd or held-for-sale ope. 8 - 8 (3) - (3) n.m. n.m.
Net income 3,637 (83) 3,720 3,866 69 3,797 (5.9%) (2.0%)
Non controlling interests (454) 1 (455) (473) (15) (459) (4.1%) (0.7%)
Net income Group Share 3,183 (81) 3,264 3,393 54 3,338 (6.2%) (2.2%)
Earnings per share (€) 0.94 (0.03) 0.97 1.08 0.02 1.06 (12.8%) (8.6%)
Cost/Income ratio excl.SRF (%) 60.9%   60.5% 61.0%   60.8% -0.0 pp -0.4 pp
                 
Net income Group Share excl. SRF 3,498 (81) 3,579 3,679 54 3,625 (4.9%) (1.3%)


Appendix 3 – Crédit Agricole S.A.: Results by business line

Crédit Agricole S.A.: Contribution by business line - Q3-19 & Q3-18

 Q3-19 (stated) 
€m AG FRB (LCL) IRB SFS LC CC Total
               
Revenues 1,507 858 692 676 1,397 (100) 5,031
Operating expenses excl. SRF (706) (576) (422) (341) (803) (176) (3,025)
SRF - - - - - (2) (2)
Gross operating income 801 282 270 335 594 (278) 2,004
Cost of risk (11) (58) (84) (131) (45) (5) (335)
Cost of legal risk - - - - - - -
Equity-accounted entities 8 - - 74 2 (2) 82
Net income on other assets 21 (0) (0) (0) (3) 0 17
Change in value of goodwill - - - - - - -
Income before tax 819 224 186 278 547 (285) 1,769
Tax (238) (68) (54) (56) (63) 56 (423)
Net income from discontinued or held-for-sale operations 0 - - - - - 0
Net income 581 156 132 222 485 (229) 1,346
Non controlling interests (79) (7) (35) (21) (10) 4 (147)
Net income Group Share 502 149 97 201 475 (225) 1,199


Q3-18 (stated) 
€m AG FRB (LCL) IRB SFS LC CC Total
               
Revenues 1,452 858 662 695 1,297 (162) 4,802
Operating expenses excl. SRF (680) (578) (417) (339) (773) (212) (2,998)
SRF - - - - - - -
Gross operating income 772 280 245 356 524 (374) 1,804
Cost of risk 14 (50) (95) (141) 57 (2) (218)
Cost of legal risk - - - - - - -
Equity-accounted entities 12 - - 63 1 2 78
Net income on other assets (2) 0 0 1 1 (0) (0)
Change in value of goodwill - - - - - - -
Income before tax 796 231 150 279 582 (375) 1,663
Tax (242) (68) (45) (63) (166) 151 (434)
Net income from discontinued or held-for-sale operations (1) - - (0) - - (1)
Net income 554 162 106 215 416 (224) 1,228
Non controlling interests (70) (7) (29) (24) (8) 11 (128)
Net income Group Share 484 155 77 190 408 (213) 1,101

Crédit Agricole S.A. : Contribution by business line - 9M-19 & 9M-18

 9M-19 (stated) 
€m AG FRB (LCL) IRB SFS LC CC Total
               
Revenues 4,455 2,605 2,083 2,044 4,203 (356) 15,034
Operating expenses excl. SRF (2,150) (1,742) (1,278) (1,012) (2,419) (560) (9,161)
SRF (7) (32) (22) (18) (177) (83) (340)
Gross operating income 2,298 832 783 1,013 1,607 (999) 5,534
Cost of risk (14) (153) (256) (370) (105) (19) (917)
Cost of legal risk - - - - - - -
Equity-accounted entities 32 - - 231 1 11 275
Net income on other assets 20 1 (1) 1 (1) 20 39
Change in value of goodwill - - - - - - -
Income before tax 2,337 680 526 874 1,502 (987) 4,931
Tax (658) (221) (151) (193) (340) 261 (1,302)
Net income from discontinued or held-for-sale operations 8 - - - - - 8
Net income 1,687 458 375 681 1,162 (726) 3,637
Non controlling interests (237) (21) (101) (79) (23) 5 (454)
Net income Group Share 1,451 438 274 602 1,139 (721) 3,183


 9M-18 (stated) 
€m AG FRB (LCL) IRB SFS LC CC Total
               
Revenues 4,308 2,592 2,028 2,078 4,158 (281) 14,882
Operating expenses excl. SRF (2,109) (1,766) (1,249) (1,006) (2,356) (586) (9,073)
SRF (3) (28) (22) (18) (170) (62) (302)
Gross operating income 2,195 798 757 1,054 1,633 (930) 5,507
Cost of risk 5 (157) (274) (368) 38 1 (755)
Cost of legal risk - - - - - (5) (5)
Equity-accounted entities 38 - - 190 2 19 248
Net income on other assets (2) 3 0 1 14 16 32
Change in value of goodwill - - - - - 86 86
Income before tax 2,236 643 483 877 1,686 (812) 5,113
Tax (599) (201) (146) (204) (472) 377 (1,244)
Net income from discontinued or held-for-sale operations (1) (1) - (0) - - (3)
Net income 1,635 441 338 673 1,215 (435) 3,866
Non controlling interests (225) (20) (93) (88) (23) (24) (473)
Net income Group Share 1,410 422 245 585 1,191 (460) 3,393


Appendix 4 – Crédit Agricole Group: Stated and underlying detailed income statement

Crédit Agricole Group - Stated and underlying results, Q3-19 and Q3-18

In €m Q3-19
stated
Specific items Q3-19
underlying
Q3-18
stated
Specific items Q3-18
underlying
Q3/Q3
stated
Q3/Q3
underlying
                 
Revenues 8,216 (115) 8,331 8,043 (54) 8,097 +2.2% +2.9%
Operating expenses excl.SRF (5,220) - (5,220) (5,102) (19) (5,083) +2.3% +2.7%
SRF - - - - - - n.m. n.m.
Gross operating income 2,997 (115) 3,111 2,940 (74) 3,014 +1.9% +3.2%
Cost of risk (384) - (384) (323) - (323) +18.9% +18.9%
Cost of legal risk - - - - - - n.m. n.m.
Equity-accounted entities 85 - 85 77 - 77 +10.0% +10.0%
Net income on other assets 18 - 18 2 - 2 x 10.8 x 10.8
Change in value of goodwill - - - - - - n.m. n.m.
Income before tax 2,715 (115) 2,830 2,696 (74) 2,770 +0.7% +2.2%
Tax (748) 39 (787) (816) 23 (839) (8.4%) (6.2%)
Net income from discont'd or held-for-sale ope. 0 - 0 (1) - (1) n.m. n.m.
Net income 1,968 (76) 2,043 1,879 (51) 1,930 +4.7% +5.9%
Non controlling interests (119) - (119) (110) 4 (115) +7.9% +3.8%
Net income Group Share 1,849 (76) 1,924 1,769 (46) 1,815 +4.5% +6.0%
Cost/Income ratio excl.SRF (%) 63.5%   62.7% 63.4%   62.8% +0.1 pp -0.1 pp
                 
Net income Group Share excl. SRF 1,849 (76) 1,924 1,769 (46) 1,815 +4.5% +6.0%


Crédit Agricole Group - Stated and underlying results, 9M-19 and 9M-18

In €m 9M-19
stated
Specific items 9M-19
underlying
9M-18
stated
Specific items 9M-18
underlying
9M/9M
stated
9M/9M
underlying
                 
Revenues 24,898 (290) 25,188 24,729 (19) 24,748 +0.7% +1.8%
Operating expenses excl.SRF (15,805) - (15,805) (15,586) (21) (15,565) +1.4% +1.5%
SRF (426) - (426) (389) - (389) +9.4% +9.4%
Gross operating income 8,667 (290) 8,957 8,754 (40) 8,794 (1.0%) +1.9%
Cost of risk (1,263) - (1,263) (1,141) - (1,141) +10.7% +10.7%
Cost of legal risk - - - (5) (5) - (100.0%) n.m.
Equity-accounted entities 273 - 273 256 - 256 +6.8% +6.8%
Net income on other assets 21 - 21 39 - 39 (46.6%) (46.6%)
Change in value of goodwill - - - 86 86 - (100.0%) n.m.
Income before tax 7,698 (290) 7,989 7,989 41 7,948 (3.6%) +0.5%
Tax (2,323) 96 (2,420) (2,317) 14 (2,331) +0.3% +3.8%
Net income from discont'd or held-for-sale ope. 8 - 8 (3) - (3) n.m. n.m.
Net income 5,383 (194) 5,577 5,669 55 5,614 (5.0%) (0.7%)
Non controlling interests (372) - (372) (395) (5) (390) (5.9%) (4.7%)
Net income Group Share 5,012 (194) 5,205 5,273 50 5,224 (5.0%) (0.3%)
Cost/Income ratio excl.SRF (%) 63.5%   62.7% 63.0%   62.9% +0.5 pp -0.1 pp
                 
Net income Group Share excl. SRF 5,417 (194) 5,611 5,650 50 5,600 (4.1%) +0.2%


Appendix 5 – Crédit Agricole Group: Results by business line

Crédit Agricole Group: Contribution by business line - Q3-2019 & Q3-2018

  Q3-19 (stated) 
€m RB LCL IRB AG SFS LC CC Total
                 
Revenues 3,172 858 717 1,499 676 1,397 (103) 8,216
Operating expenses excl. SRF (2,147) (576) (441) (706) (341) (803) (205) (5,220)
SRF 2 - - - - - (2) -
Gross operating income 1,028 282 276 793 335 594 (310) 2,997
Cost of risk (48) (58) (85) (11) (131) (45) (6) (384)
Cost of legal risk - - - - - - - -
Equity-accounted entities 0 - - 8 74 2 - 85
Net income on other assets 1 (0) (0) 21 (0) (3) 0 18
Change in value of goodwill - - - - - - - -
Income before tax 981 224 190 810 278 547 (316) 2,715
Tax (340) (68) (54) (235) (56) (63) 69 (748)
Net income from discont'd or held-for-sale ope. - - - 0 - - - 0
Net income 641 156 136 575 222 484 (247) 1,968
Non controlling interests (0) (0) (28) (75) (21) 0 5 (119)
Net income Group Share 641 156 109 500 201 485 (242) 1,849


  Q3-18 (stated)   
€m RB LCL AG IRB SFS LC CC Total
                 
Revenues 3,220 858 1,453 687 695 1,298 (169) 8,043
Operating expenses excl. SRF (2,077) (578) (680) (433) (339) (773) (223) (5,102)
SRF - - - - - - - -
Gross operating income 1,144 280 773 254 356 525 (391) 2,940
Cost of risk (104) (50) 14 (96) (141) 57 (2) (323)
Cost of legal risk - - - - - - - -
Equity-accounted entities 1 - 12 - 63 1 - 77
Net income on other assets 2 0 (2) 0 1 1 (0) 2
Change in value of goodwill - - - - - - - -
Income before tax 1,042 231 797 158 279 584 (394) 2,696
Tax (385) (68) (242) (46) (63) (167) 156 (816)
Net income from discont'd or held-for-sale ope. - - (1) - (0) - - (1)
Net income 656 162 555 112 215 417 (238) 1,879
Non controlling interests 0 (1) (66) (24) (24) 0 4 (110)
Net income Group Share 657 161 489 88 190 417 (233) 1,769

Crédit Agricole Group. : Contribution by business line - stated - 9M-19 & 9M-18

  9M-19 (stated) 
€m RB LCL IRB AG SFS LC CC Total
                 
Revenues 9,841 2,605 2,158 4,439 2,044 4,200 (390) 24,898
Operating expenses excl. SRF (6,560) (1,742) (1,335) (2,150) (1,012) (2,419) (586) (15,805)
SRF (86) (32) (22) (7) (18) (177) (83) (426)
Gross operating income 3,195 832 801 2,281 1,013 1,605 (1,060) 8,667
Cost of risk (342) (153) (260) (14) (370) (105) (19) (1,263)
Cost of legal risk - - - - - - - -
Equity-accounted entities 9 - - 32 231 1 - 273
Net income on other assets (6) 1 (1) 20 1 (1) 8 21
Change in value of goodwill - - - - - - - -
Income before tax 2,855 679 540 2,320 874 1,500 (1,071) 7,698
Tax (1,050) (221) (153) (654) (193) (340) 287 (2,323)
Net income from discontinued or held-for-sale operations - - - 8 - - - 8
Net income 1,806 458 387 1,675 681 1,160 (784) 5,383
Non controlling interests (0) (0) (81) (224) (79) 1 12 (372)
Net income Group Share 1,805 458 307 1,450 602 1,161 (772) 5,012


  9M-18 (stated) 
€m RB LCL AG IRB SFS LC CC Total
                 
Revenues 9,805 2,592 4,301 2,104 2,078 4,160 (311) 24,729
Operating expenses excl. SRF (6,421) (1,766) (2,109) (1,302) (1,006) (2,356) (624) (15,586)
SRF (87) (28) (3) (22) (18) (170) (62) (389)
Gross operating income 3,297 797 2,189 780 1,054 1,634 (998) 8,754
Cost of risk (384) (157) 5 (275) (368) 38 0 (1,141)
Cost of legal risk - - - - - - (5) (5)
Equity-accounted entities 8 - 38 - 190 2 19 256
Net income on other assets 7 3 (2) 0 1 14 16 39
Change in value of goodwill - - - - - - 86 86
Income before tax 2,928 643 2,229 506 877 1,688 (881) 7,989
Tax (1,076) (201) (598) (151) (204) (472) 384 (2,317)
Net income from discontinued or held-for-sale operations - (1) (1) - (0) - - (3)
Net income 1,852 441 1,630 355 673 1,216 (497) 5,669
Non controlling interests (0) (0) (214) (75) (88) 1 (19) (395)
Net income Group Share 1,852 441 1,416 280 585 1,217 (517) 5,273


Appendix 6 – Method used to calculate earnings per share, net assets per share and ROTE

Crédit Agricole S.A. - data per share

(in €m)   Q3-19 Q3-18   9M-19 9M-18   Q3/Q3 9M/9M
Net income Group share - stated   1,199 1,101   3,183 3,393   +8.9% -6.2%
- Interests on AT1, including issuance costs, before tax   (242) (91)   (482) (316)   x 2.7 +52.5%
NIGS attributable to ordinary shares - stated [A] 956 1,009   2,701 3,077   -5.3% -12.2%
Average number shares in issue, excluding treasury shares (m) [B] 2,882.4 2,858.4   2,870.0 2,850.6   +0.8% +0.7%
Net earnings per share - stated [A]/[B] 0.33 € 0.35 €   0.94 € 1.08 €   -6.0% -12.8%
Underlying net income Group share (NIGS)   1,226 1,133   3,264 3,338   +8.2% -2.2%
Underlying NIGS attributable to ordinary shares [C] 984 1,042   2,782 3,022   -5.5% -7.9%
Net earnings per share - underlying [C]/[B] 0.34 € 0.36 €   0.97 € 1.06 €   -6.3% -8.6%


(in €m)   30/09/2019 30/09/2018
Shareholder's equity Group share   62,287 57,995
- AT1 issuances   (5,134) (5,011)
- Unrealised gains and losses on OCI - Group share   (3,576) (2,299)
- Payout assumption on annual results*   - -
Net book value (NBV), not revaluated, attributable to ordin. sh. [D] 53,577 50,734
- Goodwill & intangibles** - Group share   (18,391) (17,774)
Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. [E] 35,186 32,961
Total shares in issue, excluding treasury shares (period end, m) [F] 2,882.8 2,863.6
NBV per share , after deduction of dividend to pay (€) [D]/[F] 18.6 € 17.7 €
+ Dividend to pay (€) [H] 0.0 € 0.00 €
NBV per share , before deduction of dividend to pay (€)   18.6 € 17.7 €
TNBV per share, after deduction of dividend to pay (€) [G]=[E]/[F] 12.2 € 11.5 €
TNBV per sh., before deduct. of divid. to pay (€) [G]+[H] 12.2 € 11.5 €


(in €m)     9M-19 9M-18
Net income Group share attributable to ordinary shares [H]   3,638 4,083
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. - avg*** [J]   33,059 30,674
Stated ROTE (%) [H]/[J]   11.0% 13.3%
Underlying Net income attrib. to ord. shares (annualised) [I]   3,746 4,011
Underlying ROTE (%) [I]/[J]   11.3% 13.1%
*** including assumption of dividend for the current exercise        


Warning

Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months of 2019 comprises this presentation and the attached press release and quarterly financial report which are available on the website at https://www.credit-agricole.com/en/finance/finance/financial-publications.

This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of European Regulation 809/2004 of 29 April 2004 (Chapter 1, Article 2, paragraph 10).

This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset impairment.

Readers must take all these risk factors and uncertainties into consideration before making their own judgement.

Applicable standards and comparability

The figures presented for the nine-month period ending 30 September 2019 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with prudential regulations currently in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

Note: The scopes of consolidation of Crédit Agricole S.A. and Crédit Agricole Group have not changed materially since the Crédit Agricole S.A. 2018 Registration Document and its 2018 A.01 update (including all regulatory information about Crédit Agricole Group) were filed with the AMF (French Financial Markets Authority).

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

The income statements contained in this report show non-controlling interests with a minus sign such that the “net income Group share” line item is the mathematical addition of the “net income” line item and the “non-controlling interests” line item.

Since 3 May 2018, Banca Leonardo has been included in the scope of consolidation of Crédit Agricole Group as a subsidiary of Indosuez Wealth Management. Historical data have not been restated on a proforma basis.

Since 30 September 2019, Kas Bank has been included in the scope of consolidation of Crédit Agricole Group as a subsidiary of CACEIS. SoYou has also been included in the scope of consolidation as a joint-venture with between Crédit Agricole Consumer Finance and Bankia. Historical data have not been restated on a proforma basis.


Financial calendar

14 February 2020                        Publication of fourth quarter and full year 2019 results
 6 May 2020                   Publication of first quarter 2020 results
13 May 2020                   General Meeting in Paris
 6 August 2020               Publication of second quarter and first half-year 2020 results
4 November 2020                       Publication of third quarter and first nine months 2020 results

Contacts

 

CRÉDIT AGRICOLE PRESS CONTACTS

 

Charlotte de Chavagnac         + 33 1 57 72 11 17                                charlotte.dechavagnac@credit-agricole-sa.fr
Olivier Tassain                           + 33 1 43 23 25 41                                olivier.tassain@credit-agricole-sa.fr
Caroline de Cassagne             + 33 1 49 53 41 72                                caroline.decassagne@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 – France only) credit-agricole-sa@relations-actionnaires.com
     
Clotilde L’Angevin + 33 1 43 23 32 45 clotilde.langevin@credit-agricole-sa.fr
Equity investors:    
Joséphine Brouard + 33 1 43 23 48 33 Joséphine.brouard@credit-agricole-sa.fr
Oriane Cante + 33 1 43 23 03 07 oriane.cante@credit-agricole-sa.fr
Emilie Gasnier + 33 1 43 23 15 67 emilie.gasnier@credit-agricole-sa.fr
Ibrahima Konaté + 33 1 43 23 51 35 ibrahima.konate@credit-agricole-sa.fr
Vincent Liscia  + 33 1 57 72 38 48 vincent.liscia@credit-agricole-sa.fr
Annabelle Wiriath + 33 1 43 23 55 52 annabelle.wiriath@credit-agricole-sa.fr
     
Credit investors and rating agencies:  
Caroline Crépin + 33 1 43 23 83 65 caroline.crepin@credit-agricole-sa.fr
Marie-Laure Malo + 33 1 43 23 10 21 marielaure.malo@credit-agricole-sa.fr
Rhita Alami Hassani + 33 1 43 23 15 27 rhita.alamihassani@credit-agricole-sa.fr
     
     
     
     

See all our press releases at: www.credit-agricole.comwww.creditagricole.info




1 In this press release, the term “underlying” refers to intermediary balances adjusted for the specific items described on p.17 and onwards 


2 Net income Group share


3 Underlying, excluding specific items, see p. 17 onwards for more details on specific items and p. 27 for the calculation of the ROTE


4 Contribution to the Single Resolution Fund (SRF) 


5 Average over last four rolling quarters, annualised


6 Based on the 9.7% SREP requirement (including countercyclical buffer)


7 See calculation of ROTE p. 27; annualised rate calculated without restating IFRIC21 charges, taking into account AT1 coupons deducted directly from Group net equity; RONE of the divisions and business lines calculated using the same method


8 Net Promotor score, calculated by Institut BVA (H1-2019) and corresponding to the gap between promoters and detractors.


9 Equipment rate: percentage of individual banking clients holding at least one insurance product (Pacifica estimates). Scope: auto, home, health, life accidents and legal protection insurance.


10 Thomson Reuters on the EMEA zone


11 Source: Refinitiv


12 Excluding the Corporate Centre.


13 Average loan loss reserves over the last four rolling quarters, annualised


14 See p. 16 for more details on specific items related to Crédit Agricole S.A.


15 See details on the calculation of the business lines’ ROTE (return on tangible equity) and RONE (return on normalised equity) on p. 27.


16 Including retained earnings for the first nine months of 2019


17 Intra-quarter leverage refers to the average of the end of month exposures for the first two months of said quarter.


18 The ratio’s numerator and denominator stand at €185.1 billion and €140.5 billion, respectively, for Crédit Agricole S.A.


19 Customer recommendation index, calculated by an independent organisation, Institut BVA (H1-2019) and corresponding to the gap between promoters and detractors.


20 Increase in active DAVs and transactional DAVs (+120 transactions/month) as a proportion of DAVs, scope of major individual customers


21 According to pro forma SREP requirement for 2019 of 9.7% as notified by the ECB (incl. countercyclical buffer)


22 Underlying, excluding specific items. See p.16 onwards for more details on specific items.


23 Average loan loss reserves over the last four rolling quarters, annualised


24 Net Promotor score, calculated by Institut BVA (H1-2019) and corresponding to the gap between promoters and detractors.


25 Relative to consolidated outstandings, calculated on an average annualised basis over four rolling quarters.


26 Including first nine months of 2019 retained earnings


27 With the entry into force of CRR2, the Crédit Agricole Group must meet the following TLAC requirements at all times: 16% of risk-weighted assets, plus the combined buffer requirement according to CRDV (including a 2.5% capital conservation buffer, a 1% systemic buffer and a 0.19% countercyclical buffer at 30 September 2019); and 6% of leverage risk exposure.


28 The ratio’s numerator and denominator stand at €219.4 billion and €169.6 billion, respectively, for CA Group


 

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