Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Barclays Conference 2014
28 slides from Credit Agricole SA's conference presentation, Sep 9, 2014
Slide 1: Barclays conference
Barclays conference Bernard Delpit CFO 9 September 2014
Slide 2: Disclaimer
DISCLAIMER 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, § 10). This information was developed from scenarios bas
Slide 3: Contents
CONTENTS 1 Crédit Agricole Group 2016 2 Q2-14 & H1-14 results 3 Business lines performance 4 Financial structure 3 BARCLAYS Conference – 9 September 2014
Slide 4: Contents: Crédit Agricole Group 2016
CONTENTS 1 Crédit Agricole Group 2016 Crédit Agricole 2016: A developing Customer-focused Universal Bank Four strategic pillars to sustain our growth 2016 Financial targets Targets and assumptions 4 BARCLAYS Conference – 9 September 2014
Slide 5: Crédit Agricole 2016: A developing Customer-focused Universal Bank
CRÉDIT AGRICOLE GROUP 2016 Crédit Agricole 2016: A developing Customer-focused Universal Bank Today A Group in marching order A refocused business mix Efficient operational platforms Stabilised financial equilibrium RETAIL CORPORATE AND SAVINGS INVESTMENT MANAGEMENT & BANKING BANKING INSURANCE Insur
Slide 6: Crédit Agricole 2016: Four strategic pillars to sustain our growth
FRAMEWORK AND CRÉDIT AGRICOLE 2016 DIRECTIONS Crédit Agricole 2016: Four strategic pillars to sustain our growth • Crédit Agricole: the multi-channel retail bank close to its 1 Innovate and transform our customers retail banking business to • LCL: leading relationship and digital bank in urban areas
Slide 7: 2016 Financial targets
FRAMEWORK AND CRÉDIT AGRICOLE 2016 DIRECTIONS 2016 Financial targets 2016 targets o/w Crédit Agricole Regional Banks Crédit Agricole Group S.A. Revenue growth (2013-2016)1 c. +1% p.a. c. +2% p.a. c. +2.5% p.a. Business Cost/income ratio 20161 <54% <60% <64% Cost of risk / outstandings (bps)1 c.25 c.
Slide 8: Targets and assumptions (1/2)
FRAMEWORK AND CRÉDIT AGRICOLE 2016 DIRECTIONS Targets and assumptions (1/2) Medium Term Plan assumptions as presented in March 2014 Income targets based on: the proven resilience of the Retail banking and Savings management & Insurance business lines the rebound of business lines which suffere
Slide 9: Targets and assumptions (2/2)
FRAMEWORK AND CRÉDIT AGRICOLE 2016 DIRECTIONS Targets and assumptions (2/2) Three areas of improvement Forward-looking capital management policy Financial efficiency with Operational efficiency with Continued decrease in cost moderate revenue targets a cost savings plan to of risk, driven
Slide 10: Contents: Q2-14 and H1-14 results
CONTENTS 2 Q2-14 and H1-14 results CA Group and Regional Banks Focus on Crédit Agricole S.A. 10 BARCLAYS Conference – 9 September 2014
Slide 11: Net income Group share
Q2-14 & H1-14 RESULTS Crédit Agricole Group and Crédit Agricole S.A. - Net income Group share Adjusted* Net income Group share (€m) Q2-2014 H1-2014 Crédit Agricole Group 1,694* 3,095* o/w Regional Banks (100%) 892 1,809 Crédit Agricole S.A. 1,003* 1,856* o/w Regional Banks (~25%) 235 613 * Restated
Slide 12: Specific items of H1
Q2-14 & H1-14 RESULTS Specific items of H1 826 ( 731) 761 1,000 Retail banking Savings management Financing businesses Corporate (France+Int.) & Insurance (SFS+CIB) centre Net income Group share (€m) (307) ) ( 708 1,856 44 1,549 725 885 NIGS H1-14 Issuer spreads, NIGS excl. BES Impact of BES Revalua
Slide 13: Crédit Agricole S.A. income statement
Q2-14 & H1-14 RESULTS Crédit Agricole S.A. income statement €m H1-14 H1-13* H1/H1* H1**/H1*and** Revenues 7,946 7,849 +1.2% +2.9% Operating expenses (5,486) (5,513) (0.5%) (0.5%) Gross operating income 2,460 2,336 +5.3% +10.0% Cost of risk (1,124) (1,402) (19.9%) (19.9%) Share of net income of e
Slide 14: A positive business performance
Q2-14 & H1-14 RESULTS A positive business performance On-balance sheet deposits Loans outstanding +2.3% June/June +0.9% June/June* vs +3.3% March/March (€bn) vs +0.8% March/March (€bn) 478.5 527.5 530.3 532.1 467.8 480.3 IRB 43.2 43.2 43.1 IRB 46.4 47.1 46.1 88.9 89.5 89.8 84.7 85.4 86.2 LCL LCL RB
Slide 15: Improved operating efficiency
CRÉDIT AGRICOLE S.A. Q2-14 RESULTS Improved operating efficiency Crédit Agricole S.A. operating expenses (€m)* MUST cost-cutting programme (€m) €31m 2,906 above 2,783 end-2013 target 2,772 650 64 351 Average quarter Average quarter Q2-14 Total savings achieved at Savings 2016 target 2012 2013* end-2
Slide 16: Decrease of cost of risk
CRÉDIT AGRICOLE S.A. Q2-14 RESULTS Decrease of cost of risk Cost of risk/outstandings (in bps, annualised) Crédit Agricole Group* (bps) Regional Banks (bps) 76 49 44 49 49 48 45 40 50 45 38 31 37 26 22 25 29 22 19 13 2009 2010 2011 2012 2013 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 2009 2010 2011 2012 2013 Q2-
Slide 17: Contents: Business lines performance
CONTENTS 3 Business lines performance French retail banking Savings management Corporate and investment banking Italy Corporate centre 17 BARCLAYS Conference – 9 September 2014
Slide 18: Regional Banks and LCL: strong activity and revenues
BUSINESS LINES PERFORMANCE Regional Banks and LCL : strong activity and revenues Customer business (€bn) Customer assets: up 3.0% YoY in H1 Customer assets* Loans On-balance sheet deposits: up 2.6% YoY in H1, o/w 756 759 489 738 LCL 484 487 passbook accounts up 3.1% 78 79 76 Off-B/S 90 Off-bal
Slide 19: Regional Banks and LCL: resilient despite a fragile economic context
BUSINESS LINES PERFORMANCE Regional Banks and LCL : resilient despite a fragile economic context Revenues Revenues resilient but under pressure especially compared to high level in Q2-13 20 35 18 In Q2-13, positive impact particularly from loan repurchases 16 30 Revenues (bn€) 14 and early repay
Slide 20: French retail banking: Regional Banks and LCL
BUSINESS LINES PERFORMANCE French retail banking: Regional Banks and LCL Results resilient in French retail banking Contribution to NIGS of Crédit Agricole Group Contribution to NIGS of Crédit Agricole S.A. €m €m 1,111 1,088 1,066 1,081 1,088 1,087 1,045 965 1,012 1,1311,117 1,038 1,016 569 576 527
Slide 21: Savings management & Insurance
BUSINESS LINES PERFORMANCE Savings management & Insurance Aggregate assets under management up €54.6bn in H1-14, Assets under management (€bn) with positive net new inflows of €12.6bn for Amundi and of 1,144.3 +39.0 1,198.9 + 12.6 +3.6 (0.6) €3.6bn for Savings/Retirement 1,107.0 135.5 131.7 132.2
Slide 22: Corporate and Investment Banking – Revenues and Results
FOCUS ON BUSINESS LINES PERFORMANCE Corporate and Investment Banking – Revenues and Results* Revenues: €928m in Q2-14, including Revenues from Corporate and Investment Banking* (€m) an impact of -€167m due to first-time application of funding Annualised revenues excl. +8.8% valuation adjustment
Slide 23: Italy – Cariparma & Agos
FOCUS ON BUSINESS LINES PERFORMANCE Italy – Cariparma & Agos Business performance Customer business (€bn) Robust growth in life insurance and mutual funds: funds in Italy up Customer assets Loans €2.8bn YoY at end-June (+15.3%) 86.3 87.1 89.8 Loans outstanding: 50.2 50.9 54.1 33.0 33.1 33.3 -
Slide 24: BES
FOCUS ON BUSINESS LINES PERFORMANCE BES Impact on H1-14 result: -€719m in equity affiliates BES impacts on Crédit Agricole S.A.’s financial Based on the company’s €3.57bn net loss in H1: statements in H1-14 -€525m Equity Impairment of residual stake: -€206m in NIGS €m Net value P&L impact impa
Slide 25: Corporate centre
FOCUS ON BUSINESS LINES PERFORMANCE Corporate centre Revenues: -€573m in Q2-14 €m Q2-14 Q2/Q2* H1-14 H1/H1* Cost of funds Revenues (573) +52.3% (1,136) (9.4%) - Remuneration of stages 1 and 2 of Switch: -€186m (-€112m€ in Q2-13*) o/w cost of funds (643) +20.2% (1,263) +18.5% Financial mana
Slide 26: Contents: Financial structure
CONTENTS 4 Financial structure Solvency ratios Liquidity & capital management Liquidity reserves Issuance programs and achievements Leverage ratio 26 BARCLAYS Conference – 9 September 2014
Slide 27: Crédit Agricole Group - Fully loaded CET1 ratio
SOLVENCY RATIOS Crédit Agricole Group - Fully loaded CET1 ratio (estimated/achieved) Fully loaded Basel 3 CET1 ratio – Actuals & targets for CA Group & Crédit Agricole S.A. 1st Jan. 2014* 31 Dec. 2016 MTP targets** Taking into account The weighting of capital and reserves of Crédit Agricole Assura
Slide 28: Liquidity & capital management
REGULATORY ISSUES Liquidity & capital management Liquidity reserves AT1 management Crédit Agricole Group at end-June 14 in €bn AT1 issuance > €4bn in total over the period 2014-2016 to: 232 Offset regulatory grandfathering of Tier 1 notes by 10% a year Assets eligible to (€0.9bn a year for Crédi