Credit Agricole Sa · EURONEXT:ACA
Credit Agricole Sa — H1 2018 Earnings Presentation
46 slides from Credit Agricole Sa's earnings presentation, July 2018
Slide 1: 2018 Results: Second Quarter and First Half
2018 RESULTS SECOND QUARTER AND FIRST HALF
Slide 2: Disclaimer
DISCLAIMER Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the second quarter and first half 2018 comprises this presentation and the attached press release and financial report which are available on the website https://www.credit- agricole.com/en/finance/finance/finan
Slide 3: Agenda
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 3 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 4: Key messages: Highest quarterly profits since IPO
CRÉDIT AGRICOLE GROUP KEY MESSAGES Highest quarterly profits since IPO CRÉDIT AGRICOLE S.A. Highest underlying(1) quarterly profit since IPO for CASA and for CAG Contribution from all of CASA’s business lines and Corporate Centre, in particular high level of profit in Corporate & Investment Bank
Slide 5: Introduction: Key figures
INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q2-18 H1-18 Q2-18 H1-18 €2,076m €3,505m Net income Group share - stated €1,436m €2,292m -1.4% Q2/Q2 -5.4% H1/H1 +6.4% Q2/Q2 +4.4% H1/H1 €2,056m €3,408m Net income Group share - underlying (1) (2) €1,418m €2,205m +2% Q2/Q2 -7.2% H1/H
Slide 6: Introduction: Key messages
INTRODUCTION CRÉDIT AGRICOLE GROUP Key messages CRÉDIT AGRICOLE S.A. ROTE(1, 2) at a high level in the first half Dynamic growth on Q2/Q2 and H1/H1 despite negative forex and scope effects and sharp rise in SRF 13.1% Particularly high level of activity for CIB/Financing underlying ROTE CACIB
Slide 7: Success of new products and digital services
CRÉDIT AGRICOLE GROUP INTRODUCTION Success of new products and digital services and development of usage New services and digitalisation Rise of new applications 50,000 customers since launch, 80% of whom were not previously customers 228m 74% opened in-branch; in 13% of cases the connections per
Slide 8: Strong dynamics in all activities in Q2-18
CRÉDIT AGRICOLE GROUP INTRODUCTION Strong dynamics in all activities in Q2-18 Strong credit activity: pick-up in corporate and +9% to +10% RETAIL June/June increase in business lending and slowdown in home lending both BANKING corporate lending confirmed for both the Regional Banks and LCL Asset
Slide 9: Crédit Agricole S.A.
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 9 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 10: Net income Group share: sharp rises Q2/Q2 and H1/H1
CRÉDIT AGRICOLE S.A. RESULTS Net income Group share: sharp rises(1) Q2/Q2 and H1/H1 Q2/Q2 and H1/H1 change in underlying Net income Group share(1), by business line +19.6% +68 1,418 1,436 1,350 +165 1,185 +9 +28 +109 +19 +23.8% +18 Q2/Q2 increase in All business lines and CC contributed underlying
Slide 11: Revenues: up sharply Q2/Q2
CRÉDIT AGRICOLE S.A. RESULTS Revenues: up sharply(1) Q2/Q2 despite a challenging market environment Q2/Q2 and H1/H1 change in underlying revenues(1), by business line +11.4% +110 5,146 +25 5,171 4,708 +89 4,619 +237 +68 +5 +106 +7.1% Q2/Q2 increase in underlying revenues All business lines and CC
Slide 12: Costs: C/I ratio down excl. SRF
CRÉDIT AGRICOLE S.A. RESULTS Costs: C/I ratio(1) down 2 points excl. SRF Q2/Q2 despite scope effects Q2/Q2 change in underlying costs(1), by business line +7.4% 2,805 +26 +10 2,769 +134 +38 (22) +71 (17) 2,974 +11 (8) 2,977 +1.9% Q2/Q2 increase in underlying costs Increase in Gross operating incom
Slide 13: Cost of credit risk: still very low
CRÉDIT AGRICOLE GROUP RESULTS Cost of credit risk: still very low CRÉDIT AGRICOLE S.A. Cost of risk / outstandings (in basis points over a rolling four-quarter period) 41 41 41 Crédit Agricole S.A.(1) 37 35 26bp Significant Q2/Q2 decrease: -9bp Q2/Q2 31 31 cost of credit risk / Below MTP assum
Slide 14: Cost of risk on a declining trend in all business lines
CRÉDIT AGRICOLE S.A. RESULTS Cost of risk on a declining trend in all business lines Cost of credit risk / outstandings (in basis points over a rolling four-quarter period) 133 134 140 134 123 116 110 112 114 CACF: €115m in Q2 108 101 93 CA Italia: €62m in Q2, 87 87 89 92 88 €223m -9bp year-on-y
Slide 15: A stable, diversified and profitable business model
CRÉDIT AGRICOLE S.A. RESULTS A stable, diversified and profitable business model Synergies between business lines are maximising Annualised underlying H1-18 RONE (2) by business line (%) Group ROTE 2019 MTP target Good level of diversification in terms of business lines' contribution to Group >2
Slide 16: Asset Gathering
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Asset Gathering Assets under management(1) (AuM) (€bn) Contribution to Crédit Agricole S.A.’s Net Income Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +23.9% Insurance 313 (8.3%) 589 (3.4%) 1,868 +5.1 +42.4 +3.2 +4.1 -1.6 1,921 A
Slide 17: Insurance
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Insurance Activity indicators Contribution to Crédit Agricole S.A. P&L Protection of assets and individuals Savings/Retirement Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 Premium income (€bn) Net new inflows (€bn) €m underlying underlying underlying underlying Revenues 512
Slide 18: Asset management - Amundi
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Asset management - Amundi Assets under management(1) (€bn) Contribution to Crédit Agricole S.A. P&L +30.8% Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 +7.5% at constant €m underlying underlying underlying underlying perimeter Revenues 656 +37.9% 1,300 +43.2% 1,426 +7.8 +34.
Slide 19: Retail banking France – LCL
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Retail banking France – LCL Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +2.0% Revenues 875 +2.1% 1,734 (1.6%) Operating expen
Slide 20: International retail banking – Italy
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS International retail banking – Italy Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +19.8% Revenues 477 +9.3% 947 +13.2% Operati
Slide 21: International retail banking – excl. Italy
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS International retail banking – excl. Italy Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +6.7%(1) Revenues 212 +4.5% 419 +2.3%
Slide 22: Specialised financial services
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Specialised financial services CACF – Consumer finance CAL&F – Leasing Contribution to Crédit Agricole S.A. P&L Gross managed loans (€bn) Gross consolidated loans (€bn) Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +5.6% +3.6% Re
Slide 23: Large Customers
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Large Customers Underlying revenues of Large Customers (€m) Contribution to Crédit Agricole S.A. P&L Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m +7.6% underlying underlying underlying underlying 1,505 Revenues 1,505 +7.6% 2,827 (2.3%) 1,493 1,399 Operating expenses excl.
Slide 24: Corporate Centre
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Corporate Centre Change in underlying(1) Net income (€m) Contribution to Crédit Agricole S.A. P&L ∆ Q2/Q2 ∆ H1/H1 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 €m Q2-18 Q2-17 H1-18 H1-17 (m€) (m€) Revenues (6) (54) +47 (119) (220) 101 Operating expen
Slide 25: Crédit Agricole Group
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 25 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 26: Regional Banks
CRÉDIT AGRICOLE GROUP ACTIVITY AND RESULTS Regional Banks: Activity indicators (€bn) Contribution to Crédit Agricole Group P&L Customer savings Loans outstanding €m Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 underlying underlying underlying underlying Revenues 3,227 +0.5% 6,585 (2.3%) +4.3% Operating expenses excl
Slide 27: Financial Solidity
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 27 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 28: Fully-loaded CET1 ratio at 11.4% at 30 June 2018
CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Fully-loaded CET1 ratio(1) at 11.4% at 30 June 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) +2.7% 307 294 293 296 299 11 13 11.4% 11.4% 7 10 11 28 Market risk +47bp +4bp 28 28 28 29 -25bp -22bp Operational risk 259 253 258 2
Slide 29: Change in risk-weighted assets in Q2
CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Change in risk-weighted assets in Q2 reflecting business lines’ growth Change in risk-weighted assets by business line (€bn) +8.0 +1.1 +2.0 306.8 +5.5 +0.2 -0.9 Increase in RWA: +€8bn June/March 296.4 298.8 293.5 on the CET1 ratio 292.7 Organic growth of t
Slide 30: Fully-loaded CET1 ratio at 14.8% at 30 June 2018
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Fully-loaded CET1 ratio(1) at 14.8% at 30 June 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) +1.6% 533 520 517 522 525 7 11 11 12 13 45 47 47 48 14.6% +31bp +2bp +3bp 14.8% 47 -19bp Market risk Operational risk 468 460 4
Slide 31: 84% of MLT market funding programme completed
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY 84% of Crédit Agricole S.A.’s MLT market funding programme completed at end-July Crédit Agricole Group - 2018 MLT market issues Crédit Agricole S.A. - 2018 MLT market issues Breakdown by issuer: €18.4bn at 30/06/18 Breakdown by segment: €8.2bn at 30/06/18 CAL
Slide 32: Liquidity and funding
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Liquidity and funding Liquidity reserves at 30 June 18 (€bn) 256 Assets eligible to Central Banks after ECB 52 212 haircut (immediate access) 14 Self-securitisations eligible to Central Banks 10 Reverse repos & other ST 19 Other non-HQLA securities (1) €256bn
Slide 33: Conclusion
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 33 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 34: Conclusion: Highest quarterly profits since IPO
CRÉDIT AGRICOLE GROUP CONCLUSION Highest quarterly profits since IPO CRÉDIT AGRICOLE S.A. Highest underlying(1) quarterly profit since IPO for CASA and for CAG Contribution from all of CASA’s business lines and Corporate Centre, in particular high level of profit in Corporate & Investment Bankin
Slide 35: Appendix
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 9 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 33 6 APPENDIX p. 35 35 l SECOND QUARTER AND FIRST HALF 2018 RESULTS
Slide 36: Economic environment: solid growth
APPENDIX Economic environment: solid growth France, Italy, Euro zone – Real GDP growth France – Household and business leaders’ confidence % 2.6 110 1.9 2.1 2.3 2.2 2.0 2.0 1.9 1.6 1.7 1.8 1.7 1.7 LT average 1.6 1.4 1.0 1.1 1.4 1.2 100 1.0 0.8 1.0 0.7 0.6 0.2 0.2 -0.2 90 2010 2011 2012 2013 2014 201
Slide 37: Market environment
APPENDIX Market environment Interest rates, in Euros (%) 10-year spread Germany vs. France and Italy (bp) Average 10-year OAT rate Q2-18 ECO ECO 1.8 (%) 350 Average spread Q2-18 0.772% (-1bp) Q2/Q2) forecasts forecasts 1.6 for 2019: 300 France 29bp (-35bp Q2/Q2) Italy for 2019: 1.4 177bp (-9bp Q2/Q2
Slide 38: Specific items in Q2: +€19m in Net income Group share
CRÉDIT AGRICOLE S.A. APPENDIX Specific items in Q2: +€19m in Net income Group share ECB fine: impact on Net income of -€5m Imposed on Crédit Agricole S.A. and 2 of its subsidiaries for failure to give notification of capital increases on time Crédit Agricole S.A. contested the fine and the offen
Slide 39: Alternative Performance Measures – specific items Q2-18 and H1-18
CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – specific items Q2-18 and H1-18 Q2-18 Q2-17 H1-18 H1-17 Gross Impact on Gross Impact on Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS impact* NIGS impact* NIGS Issuer spreads (CC) - - (97) (51) - - (105) (55) DVA (LC) 10
Slide 40: Reconciliation between stated and underlying results – Q2-18
CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q2-18 Q2-18 Q2-18 Q2-17 Specific Q2-17 ∆ Q2/Q2 ∆ Q2/Q2 Q2-17 Q2-18 Q2-18 ∆ Q2/Q2 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues
Slide 41: Reconciliation between stated and underlying results – H1-18
CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – H1-18 H1-18 H1-18 H1-17 Specific H1-17 ∆ H1/H1 ∆ H1/H1 H1-17 H1-18 H1-18 ∆ H1/H1 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues
Slide 42: Alternative Performance Measures – specific items Q2-18 and H1-18
CRÉDIT AGRICOLE GROUP APPENDIX Alternative Performance Measures – specific items Q2-18 and H1-18 Q2-18 Q2-17 H1-18 H1-17 Gross Impact on Gross Impact on Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS impact* NIGS impact* NIGS Issuer spreads (CC) - - (104) (60) - - (118) (67) +€20m DVA
Slide 43: Reconciliation between stated and underlying results – Q2-18
CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – Q2-18 Q2-18 Q2-18 Q2-17 Specific Q2-17 ∆ Q2/Q2 ∆ Q2/Q2 Q2-17 Q2-18 Q2-18 ∆ Q2/Q2 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues
Slide 44: Reconciliation between stated and underlying results – H1-18
CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – H1-18 H1-18 H1-18 H1-17 Specific H1-17 ∆ H1/H1 ∆ H1/H1 H1-17 H1-18 H1-18 ∆ H1/H1 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues
Slide 45: Data per share
CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q2-18 Q2-17 H1-18 H1-17 ∆ Q2/Q2 ∆ H1/H1 Net income Group share - stated 1,436 1,350 2,292 2,195 +6.4% +4.4% - Interests on AT1, including issuance costs, before tax (93) (96) (225) (237) -2.8% -5.2% NIGS attributable to ordinary shares - stated [A] 1
Slide 46: Press and investor relations 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 39 72 caroline.decassagne@ca-fnca.fr CRÉDIT AGRICOLE S.A. INVESTOR RELATION