Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Q3 2005 Earnings Presentation
68 slides from Credit Agricole SA's earnings presentation, November 2005
Slide 1: Results for Q3-05 and the first nine months of 2005
Results for Q3-05 and the first nine months of 2005 November 2005 1 Results for Q3-05 and the first nine months of 2005 - November 2005
Slide 2: Disclaimer
Crédit Agricole S.A. consolidated results 9 Disclaimer This presentation contains certain forward-looking statements or projections on the business activities or financial position of Crédit Agricole S.A. This information was developed from scenarios based on a number of economic assumptions for a g
Slide 3: Contents
Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking – Regional Banks French retail banking – LCL Specialised financial services Asset management, insurance and private banking Corporate and investment banking International retail banking
Slide 4: 9 months 2005 highlights
Crédit Agricole S.A. consolidated results 9 months 2005 9 Gross operating income: €3,319m (+19.4% vs 9M-04) 9 Net income – Group share: €2,885m (+40.0% vs 9M-04) 9 Cost/income ratio: 66.8% (-2.8 pt vs 9M-04) 9 Annualised ROE : 15.8% 4 Results for Q3-05 and the first nine months of 2005 - November 20
Slide 5: Very positive trends in all income statement aggregates
Crédit Agricole S.A. consolidated results Very positive trends in all income statement aggregates €m 9M-04* 9M-05 ∆ 9M/9M* Net banking income 9,132 10,011 +9.6% 9 Strong growth in GOI: + 19.4% Dynamic growth in NBI: + 9.6% Operating expenses (6,352) (6,692) +5.4% Costs contained: + 5.4% Gross op
Slide 6: Q3-05: continuation of dynamic first-half uptrends
Crédit Agricole S.A. consolidated results Q3-05: continuation of dynamic first-half uptrends €m Q3-04* Q3-05 ∆ Q3/Q3* Net banking income 2,858 3,317 +16.1% Operating expenses (2,079) (2,229) +7.2.% 9 Strong growth of gross operating income: Gross operating income 779 1,088 +39.7% GOI: + 39.7% Risk
Slide 7: Stronger contribution from all business lines
Crédit Agricole S.A. consolidated results Stronger contribution from all business lines Contribution of business lines to pre-tax income on ordinary Regional Banks activities (before integration-related costs) Increased momentum in deposit/funds-taking €m and lending, and sustained growth in 486 456
Slide 8: Good profitability from all business lines
Crédit Agricole S.A. consolidated results Good profitability from all business lines 9M-05 € bn Allocated capital % ROE French retail banking – Regional Banks 3.4 13.9% 20.9% French retail banking – LCL 2.4 9.4% 25.8% Specialised financial services* 2.2 8.8% 23.2%* Asset management, insurance and pr
Slide 9: Contents
Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking – Regional Banks French retail banking – LCL Specialised financial services Asset management, insurance and private banking Corporate and investment banking International retail banking
Slide 10: Good performance from Regional Banks
French retail banking – Regional Banks Good performance from Regional Banks Allocated capital 13.9% Pre-tax income 13.3% €m Q3-05 ∆ Q3/Q3 ∆ Q3/Q2 9M-05 ∆ 9M/9M Aggregate NBI 2,774 +5.2% (12.5%) 9,028 +6.3% 9 NBI in individual accounts up 6.3% in 9m-05 vs 9m-04 and 5.2% in Q3-05 vs Adjusted NBI* 2,79
Slide 11: Continued robust growth in customer assets
French retail banking – Regional Banks Continued robust growth in customer assets 9 Inflows of €16.9bn in the first 9 months, including €7.8bn in the third quarter alone, driven chiefly by life insurance, equities and mutual funds. 9 Continued strong growth in total customer assets: + 7.7% vs 30 Sep
Slide 12: Strong growth in new lending and in loan book
French retail banking – Regional Banks Strong growth in new lending and in loan book 9 Continued growth in new medium and long-term lending: €40.9bn in first 9 months, up 13.3% vs 9m-04. Strong demand for mortgages in third quarter, with €9.7 bn in new lending. 9 Total loan book up 9.6% vs September
Slide 13: Strong business momentum and NBI growth of 4.6%
French retail banking – Regional Banks Strong business momentum and NBI growth of 4.6%* 9 Acceleration in fee income supported mainly by CA account services together with life and non-life insurance 9 Securities fees driven by the Gaz de France OPO, in which the Regional Banks took a 25% market shar
Slide 14: Steady improvement in operating results
French retail banking – Regional Banks Steady improvement in operating results 9 Cost/income ratio still improving and cost of risk down despite growth in business and loan book 9 High level of provision cover Continuous improvement in cost/income ratio* Trends in provisioning against bad and doubtf
Slide 15: LCL: Steady growth in GOI
French retail banking – LCL Steady growth in GOI Allocated capital 9.4% Pre-tax income 13.2% €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* Net banking income 854 +2.4% (5.1%) 2,591 +2.4% 9 Good business volumes: NBI up 2.4% (Q3-05 vs Q3-04) Operating expenses (613) +0.7% (0.2%) (1,853) +0.2% Accelera
Slide 16: LCL: Acceleration in deposit and funds-taking
French retail banking – LCL Acceleration in deposit and funds-taking (+ 6.9% vs + 5.9% in H1) 9 Satisfying trend in sight deposits across all markets (personal and business). 9 Continued high growth in deposit-taking, thanks to innovative offerings (high-interest passbook accounts, ‘Cerise’ passbook
Slide 17: LCL: Good growth dynamics in loan book
French retail banking – LCL Good growth dynamics in loan book (+ 8.9% vs + 6.6% at end June) 9 Significant acceleration in growth in mortgage book. 9 Confirmation of Q2-05 rebound in medium and long-term SME loans (new lending up 50% in 9m-05 vs 9m-04) and, to a lesser extent, professional loans (+
Slide 18: LCL: NBI up 2.4%
French retail banking – LCL NBI up 2.4%* 9 Despite a substantial increase in volumes, net interest margin down slightly due to persistently unfavourable ‘market rates’ in Q3-05. 9 Conversely, growth in fee income picked up speed in Q3 (+ 6.2% vs Q3-04), driven by sustained business volumes in insura
Slide 19: LCL: Operating costs and risk-related costs
French retail banking – LCL Operating costs and risk-related costs 9 Operating costs stable over 9 months, despite a significant increase in commercial investment due to change of brand and new opening branch plan (42 branches opened in past 12 months). 9 Structural costs cut by €6m in Q3 and €23m i
Slide 20: Results of specialised financial services
Specialised financial services Results of specialised financial services Allocated capital 8.8% Pre-tax income 11.7% €m Q3-05 ∆ Q3/Q3 ∆ Q3/Q2 9M-05 ∆ 9M/9M Net banking income 601 +8.8% +1.2% 1,798 +6.8% 9 Continued growth in consumer Operating expenses (317) +8.0% +3.0% (950) +7.2% credit, supported
Slide 21: Consumer credit in France and abroad
Specialised financial services Consumer credit in France and abroad 9 Continued strong growth in consumer credit lending: +18.8% vs 9m-04 to €16.8bn driven by dynamic performance from foreign subsidiaries (+ 46%) 9 17.2% growth in consumer credit book vs Sept-04 due to strong performance in internat
Slide 22: Results of asset management, insurance and private banking
Asset management, insurance and private banking Results of asset management, insurance and private banking Allocated capital 24.7% Pre-tax income 27.4% 9 Continuation of excellent trends seen €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* since early 2005, with 21.7% growth in assets under management (vs
Slide 23: Asset management
Asset management, insurance and private banking Asset management 9 Excellent business momentum with net inflows of €8.2bn in Q3-05 and €29.1bn in 9m-05, mainly in bond, alternative and structured funds. 9 Broadened offering: Egeris for LCL, Selecta for the Regional Banks and Dynamo for institutional
Slide 24: Private banking
Asset management, insurance and private banking Private banking 9 Improved performance in both France and international markets, reflecting growth in operating NBI and tight cost control in a buoyant market 9 Positive trends in new business €bn Assets under management ∆ Sept/Sept Scope* 77.4 Inflows
Slide 25: Life insurance
Asset management, insurance and private banking Life insurance 9 Further strong growth in new business, with premium income for 9 months up 13.1% vs 9m-04 to €13.6bn 9 Excellent performance in unit-linked business with €1.5bn in new inflows and in-force business up 22.7% vs Sept-04. 9 Assets managed
Slide 26: Non-life insurance
Asset management, insurance and private banking Non-life insurance 9 Crédit Agricole now among top ten in France for motor, household, personal accident and legal protection insurance in the retail market, and number two non-life bancassurer France 9 Dynamic innovative offering for all customers, wh
Slide 27: Results of corporate and investment banking
Corporate and investment banking Results of corporate and investment banking Allocated capital 33.7% Pre-tax income 27.0% 9 Excellent performance in Q3-04 vs Q3-05: €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* ∆ 9M/9M** NBI +34% and GOI +77% Net banking income 1,107 +34.3% (1.1%) 3,258 +17.9% +19.4% 9 G
Slide 28: Corporate and investment banking: trends in revenues
Corporate and investment banking Trends in revenues (€m) 3,258 + 18% 9 Sharp rise in Q3-05 revenues vs Q3-04 confirming 2,763 Calyon’s good growth dynamics since its creation. 1,107 1 387 + 9% + 34% 824 1 270 464 + 17% 396 + 25% 9 Strong overall growth in first 9 months, with 18% 1 871 + 50% 643 1 4
Slide 29: Financing activities: dynamic and efficient
Corporate and investment banking Financing activities: dynamic and efficient (cost/income ratio < 45%) (€m) Trends in revenues 9 Confirmation of strong growth already seen in Q1-05 and Q2-05: 1,387 1,270 + 9% Revenues up 17% in Q3-05 and 9% in 9m- 05, with the erosion in margins more than 464 offs
Slide 30: Capital markets and investment banking: good performance
Corporate and investment banking Capital markets and investment banking: good performance across all activities in Q3-05 (€m) Trends in revenues 1,871 + 25% 9 Excellent Q3-05 with strong growth in activity: Sharp rebound in credit and interest rate derivative 1,493 677 markets vs Q2-05 (revenues u
Slide 31: Results of international retail banking
International retail banking Results of international retail banking Allocated capital 9.5% Pre-tax income 7.4% €m Q3-05 ∆Q3/Q3* ∆Q3/Q2 9M-05 ∆9M/9M* Net banking income 76 +41.6% (14.2%) 228 +15.1% 9 Net income up 31% in 9m-05, Operating expenses (67) +81.6% (12.0%) (196) +30.7% accounting for 11.4%
Slide 32: Results of proprietary asset management and other activities
Proprietary asset management and other activities Results of proprietary asset management and other activities €m Q3-05 ∆Q3/Q3* ∆Q3/Q2 9M-05 ∆9M/9M* Net banking income (137) +78.0% n.m. (209) X2.2 Operating expenses (199) +0.5% (10.0%) (610) +24.7% Gross operating (336) +22.2% +57.6% (819) +40.1% in
Slide 33: Contents
Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking – Regional Banks French retail banking – LCL Specialised financial services Asset management, insurance and private banking Corporate and investment banking International retail banking
Slide 34: Crédit Agricole S.A.: a sound balance sheet
Financial data Crédit Agricole S.A. : a sound balance sheet 9 Tier 1 ratio maintained at 7.8%, as at 30 June 2005, with risk-weighted assets up 4.9% over the quarter Capital Risk-weighted assets (€bn) and (Shareholders’ equity and subordinated debt) Cooke ratio (%) €bn ∆ Sept 05/June 04 €247.5bn 50.
Slide 35: Contents
Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking – Regional Banks French retail banking – LCL Specialised financial services Asset management, insurance and private banking Corporate and investment banking International retail banking
Slide 36: Group consolidated income statement
Crédit Agricole Group highlights Consolidated income statement €m 9M-04 9M-05 ∆ 9M/9M Net banking income 17,705 18,962 +7.1% Operating expenses (11,536) (11,989) +3.9% Gross operating income 6,169 6,973 +13.0% Risk-related costs (930) (837) (10.0%) Equity affiliates 303 485 +60.1% Net income on othe
Slide 37: Group consolidated capital
Crédit Agricole Group highlights Consolidated capital € bn Dec 04 June 05 Sept 05 Equity group share 44.8 47.0 49.6 Preferred shares 2.8 2.9 3.0 Subordinated debt 17.5 18.9 18.8 Total risk-weighted assets 428.0* 455.0 473.5 International Solvency Ratio 10.4%* 9.9% 9.9% Tier 1 ratio 7.9%* 7.6% 7.8% *
Slide 38: Results for Q3-05 and the first nine months of 2005 - November 2005
38 Results for Q3-05 and the first nine months of 2005 - November 2005
Slide 39: Appendices
Results for Q3-05 and the first nine months of 2005 Appendices 39 Results for Q3-05 and the first nine months of 2005 - November 2005
Slide 40: Contents
Contents Crédit Agricole S.A. consolidated results Consolidated results by business line Progress report on synergies Movements in consolidated capital Capital allocation Trends in risk Additional information on business lines French retail banking – Regional Banks French retail banking – LCL Specia
Slide 41: Consolidated results by business line, Q3
Crédit Agricole S.A. consolidated results Consolidated results by business line Asset Proprietary asset French retail French retail Specialised Corporate and management, International management banking – banking – financial investment insurance and retail banking and other In €m Regional Banks LCL
Slide 42: Consolidated results by business line, 9M
Crédit Agricole S.A. consolidated results Consolidated results by business line Asset Proprietary asset French retail French retail Specialised Corporate and management, International management banking – banking – financial investment In €m insurance and retail banking and other Regional Banks LCL
Slide 43: Results by business line: Regional Banks and LCL
Crédit Agricole S.A. consolidated results Consolidated results by business line French retail banking – Regional Banks French retail banking – LCL In €m Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income - - - - - - - 827 868 834 867 837 900 854
Slide 44: Results by business line: SFS and asset management
Crédit Agricole S.A. consolidated results Consolidated results by business line Specialised financial services Asset management, insurance and private banking In €m Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income 540 590 552 577 603 594 601 68
Slide 45: Results by business line: corporate and investment banking
Crédit Agricole S.A. consolidated results Consolidated results by business line Corporate and investment banking In €m Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income 985 954 824 952 1,033 1,119 1,107 Operating expenses (700) (675) (589) (688) (678) (684) (691) Gross operating income
Slide 46: Results by business line: financing and investment banking
Crédit Agricole S.A. consolidated results Consolidated results by business line Financing activities Investment banking In €m Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income 420 454 396 389 423 501 464 565 500 428 563 610 618 643 Operating e
Slide 47: Results by business line: international retail and proprietary
Crédit Agricole S.A. consolidated results Consolidated results by business line International retail banking Proprietary asset management and other activities In €m Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q1-04* Q2-04* Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income 69 75 54 77 63 88 76 (158) 1
Slide 48: Consolidated results by business line: Group
Crédit Agricole S.A. consolidated results Consolidated results by business line Group In €m Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Net banking income 2,946 3,328 2,858 2,975 3,233 3,461 3,317 Operating expenses (2,133) (2,140) ( 2,079) (2,227) (2,209) (2,254) (2,229) Gross operating income 813 1,
Slide 49: Implemented synergies in line with 2005 targets
Progress report on synergies Implemented synergies in line with 2005 targets 760 €m 620 620 325 275 40 2003 2004 target 2004 2005 target Synergies 2006 target secured at 30.09.05 49 Results for Q3-05 and the first nine months of 2005 - November 2005
Slide 50: Equity and subordinated debt
Movements in consolidated capital Equity and subordinated debt €m Group share Minority interests Total Subordinated debt 31 December 2004 26,110* 3,888 29,998 18,772 Capital increase 395 395 Dividend paid in 2005 (954) (287) (1,241) Change in share of the Regional Banks’ retained 145 145 earnings**
Slide 51: International solvency ratio
Movements in consolidated capital International solvency ratio € bn Dec 04* Sept 05 Credit risks 195.0 228.6 Market risks 20.6 18.9 Total risk-weighted assets 215.6 247.5 Tier 1 17.6 20.3 Tier 2 14.2 15.3 Tier 3 1.2 0.8 Deductions 14.5 16.2 Total net regulatory capital 18.5 20.2 Tier 1 solvency rati
Slide 52: Breakdown of share capital and earnings per share calculation
Movements in consolidated capital Breakdown of share capital and earnings per share calculation Breakdown of share capital: Dec 2003 Sept 04 Dec 2004 Sept 2005 % SAS Rue la Boétie 771,841,801 783,146,587 794,929,524 818,788,107 54.68% SNC Crédit Agricole 14,771,187 6,102,837 - - - Transactions* Trea
Slide 53: Allocated capital per business line
Movements in consolidated capital Allocated capital per business line € bn Sept 04 (%) Sept 05 (%) French retail banking 5.4 24.1 5.8 23.3 - Regional Banks 3.2 3.4 - LCL 2.2 2.4 Specialised financial services 1.9 8.6 2.2 8.8 Asset management, insurance and private banking 5.5 24.7 6.1 24.7 Corporate
Slide 54: Risk-weighted assets per business line
Movements in consolidated capital Risk-weighted assets for capital allocation per business line € bn June 05 Sept 05 French retail banking 93.3 94.3 - Regional Banks 53.8 55.2 - LCL 39.5 39.1 Specialised financial services 35.8 36.1 Asset management, insurance and private banking 13.1 15.1 Corporate
Slide 55: Change in credit risk outstanding
Trends in risk Change in credit risk outstanding* Crédit Agricole S.A. €m Dec 04 Sept 05 (incl. IAS 32-39 and IFRS 4) Gross customer and interbank loans outstanding 209,268 253,632 Bad and doubtful loans 8,745 8,186 Loan loss reserves** 7,345 7,279 Doubtful loan ratio 4.2% 3.2% Ratio of reserves to
Slide 56: Market risk
Trends in risk Market risk 9 Overall VaR (99% - 1 day) at 30 September 2005: €21m for Crédit Agricole S.A. Group, of which €17m for activities included in Calyon scope of consolidation Trends in VaR for Crédit Agricole S.A. capital markets business VaR (99% - 1 day) st 1 January to 30 September 2005
Slide 57: Consumer credit highlights
Specialised financial services Consumer credit highlights €m Q3-05 ∆ Q3/Q3 ∆ Q3/Q2 9M-05 ∆ 9M/9M Net banking income 495 +7.1% +2.8% 1, 466 +5.2% Operating expenses (242) +2.8% +1.7% (726) +3.8% Gross operating income 253 +11. 7% +3.8% 740 +6.6% Risk-related costs (85) +16.9% +6.4% (254) +4.0% Equity
Slide 58: Lease finance highlights
Specialised financial services Lease finance highlights €m Q3-05 ∆ Q3/Q3 ∆ Q3/Q2 9M-05 ∆ 9M/9M Net banking income 59 (7.5%) (7.5%) 190 (9.8%) Operating expenses (43) +11.5% +7.3% (124) +0.5% Gross operating income 16 (35.8%) (31.8%) 66 (24.3%) Risk-related costs (11) +54.2% X4.4 (22) +4.2% Net incom
Slide 59: Factoring highlights
Specialised financial services Factoring highlights €m Q3-05 ∆ Q3/Q3 ∆ Q3/Q2 9M-05 ∆ 9M/9M Net banking income 47 +76.2% (2.9%) 141 +82.1% Operating expenses (30) +72.7% (5.7%) (92) +65.6% Gross operating income 17 +82.8% +2.4% 49 X2.2 Risk-related costs - n.m. n.m. (2) (63.3%) Integration-related co
Slide 60: Trends in assets under management
Asset management, insurance and private banking Trends in assets under management (excluding double counting) €bn 78.4 68.6 67.8 139.7 125.8 129.4 Total AUM: + 21,7% Private banking Life insurance Asset managt 485.5 + 8.9%* + 11.0% + 22.4%* 399.0 405.8 416.4 338.0 347.0 Sept 04 Dec 04 Sept 05 CAC 40
Slide 61: Asset management highlights
Asset management, insurance and private banking Asset management highlights €m Q2-05 ∆ Q2/Q2* ∆ Q2/Q1 H1-05 ∆ H1/H1* Net banking income 350 +15.5% +10.5% 988 +13.2% Operating expenses (178) (10.3%) (3.3%) (538) (1.8%) Gross operating income 172 +64.5% +29.5% 450 +38.6% Risk-related costs 1 (63.6%) (
Slide 62: Insurance highlights
Asset management, insurance and private banking Insurance highlights €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* Net banking income 341 +35.6% +10.1% 983 +19.5% Operating expenses (67) +29.1% (8.8%) (206) +23.2% Gross operating income 274 +37.3% +15.9% 777 +18.5% Risk-related costs - (100%) (100%) - n.
Slide 63: Private banking highlights
Asset management, insurance and private banking Private banking highlights €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* Net banking income 125 +7.9% +0.6% 375 +4.1% Operating expenses (97) (5.1%) +4.8% (286) (4.3%) Gross operating income 28 X2.1 (11.7%) 89 +46.1% Risk-related costs 3 +60.0% X16 4 n.m. E
Slide 64: Results of financing activities
Corporate and investment banking Results of financing activities €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* ∆ 9M/9M** Net banking income 464 +17.1% (7.5%) 1,387 +9.3% +10.3% Operating expenses (202) +3.5% (3.9%) (613) (8.2%) (7.6%) Gross operating income 262 +30.2% (10.1%) 774 +28.6% +30.2% Risk-relat
Slide 65: Results of capital markets and investment banking
Corporate and investment banking Results of capital markets and investment banking €m Q3-05 ∆ Q3/Q3* ∆ Q3/Q2 9M-05 ∆ 9M/9M* ∆ 9M/9M** Net banking income 643 +50.2% +4.0% 1,871 +25.3% + 27,3% Operating expenses (489) +24.1% +3.0% (1,440) +11.1% + 12,6% Gross operating income 154 X4.5 +7.4% 431 X2.2 X
Slide 66: Trends in main NBI aggregates
Proprietary asset management and other activities Trends in main NBI aggregates €m 9M-04 9M-05 Cost of financing (826) (892) Financial management 408 331 Other business 68 138 Work-out activities 254 214 Net banking income (96) (209) 66 Results for Q3-05 and the first nine months of 2005 - November
Slide 67: Consolidated balance sheet at 30 September 2005 and 31 December 2004
Crédit Agricole S.A. financial statements Consolidated balance sheet at 30 September 2005 and 31 December 2004 €bn €bn Assets 31/12/04 30/09/05 Liabilities 31/12/04 30/09/05 Cash, central banks, French postal Central banks, French postal system 0.5 0.8 23.6 15.2 system Financial liabilities at fair
Slide 68: Results for Q3-05 and the first nine months of 2005 - November 2005
68 Results for Q3-05 and the first nine months of 2005 - November 2005