Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Q3 2018 Earnings Presentation
46 slides from Credit Agricole SA's earnings presentation, 2018
Slide 1: Third Quarter & First 9 Months Results 2018
THIRD QUARTER & FIRST 9 MONTHS RESULTS l 2018
Slide 2: Disclaimer
DISCLAIMER Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months 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
Slide 3: Agenda
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 3 l THIRD QUARTER AND FIRST NINE MONTHS 2018 RESULTS
Slide 4: Key messages
CRÉDIT AGRICOLE GROUP KEY MESSAGES Solid quarterly results in all business lines CRÉDIT AGRICOLE S.A. Underlying net profit(1) once again >€1bn for CASA, despite the seasonal effect Annualised 9M-18 ROTE at a high level Strong growth in Q3/Q3 net profit for CASA and CAG Strong and high-quality
Slide 5: Key figures
INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q3-18 9M-18 Q3-18 9M-18 €1,769m €5,273m Net income Group share - stated €1,101m €3,393m -7.3% Q3/Q3 -6.1% 9M/9M +3.2% Q3/Q3 +4% 9M/9M €1,815m €5,224m Net income Group share - underlying (1) (2) €1,133m €3,338m +3.2% Q3/Q3 -3.8% 9M/9
Slide 6: Introduction: Key messages
CRÉDIT AGRICOLE GROUP INTRODUCTION Key messages CRÉDIT AGRICOLE S.A. ROTE(1, 2) high level for CASA: 13.1% over 9M-18 annualised Solid growth in Q3/Q3 net profit in difficult markets in Q3-18, +17.3% increase in underlying and 9M/9M despite the jump in the SRF (contribution to Single Resolution
Slide 7: Strong dynamics in all activities in Q3-18
CRÉDIT AGRICOLE GROUP INTRODUCTION Strong dynamics in all activities in Q3-18 Strong credit activity: momentum confirmed with a RETAIL sharp increase in loan outstanding in all networks; > +10% BANKING accelerated lending to SMEs Sept./Sept. increase in SMEs lending for both the Net customer acq
Slide 8: Crédit Agricole S.A.
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 8 l THIRD QUARTER AND FIRST NINE MONTHS 2018 RESULTS
Slide 9: Net profit: growth Q3/Q3 and 9M/9M
CRÉDIT AGRICOLE S.A. RESULTS Net profit: growth(1) Q3/Q3 and 9M/9M Q3/Q3 and 9M/9M change in underlying net profit(1), by business line +17.3% +132 1,133 1,101 1,066 +100 +21 966 +33 (18) (1) (32) Q3/Q3: strong growth All business divisions(2) increasing or stable (SFS) Q3-17 Specific (1) Q3-17 As
Slide 10: Revenues: up sharply Q3/Q3
CRÉDIT AGRICOLE S.A. RESULTS Revenues: up sharply(1) Q3/Q3 Q3/Q3 and 9M/9M change in underlying revenues(1), by business line +5.9% +150 +62 +20 +68 4,834 4,802 4,575 +10 4,564 (31) (33) Contribution from all business divisions(2) Q3/Q3 and 9M/9M AG: strong increase of +11.5%(1) Q3/Q3 (normalisati
Slide 11: Costs: C/I ratio excl. SRF down 1.4 point
CRÉDIT AGRICOLE S.A. RESULTS Costs: C/I ratio(1) excl. SRF down 1.4 point Q3/Q3 despite scope effects Q3/Q3 and 9M/9M change in underlying costs(1), by business line +3.6% 2,902 +15 +32 +27 2,979 2,998 2,875 +27 +2 +27 +19 Q3/Q3: solid cost control Cost/income ratio excl. SRF(1) improved by 1.4pp(
Slide 12: 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) Crédit Agricole S.A.(1) 41 41 37 -5 bp 26bp Significant Q3/Q3 decrease: -5bp 35 cost of credit risk / Below MTP assumption of
Slide 13: Cost of risk well under control in business lines
CRÉDIT AGRICOLE S.A. RESULTS Cost of risk still well under control in the business lines Cost of credit risk / outstandings (in basis points over a rolling four-quarter period) LCL: €50m in Q3 101 CA Italia: €70m in Q3 €218m 93 stable year-on-year 87 87 89 92 88 78 -16bp year-on-year 73 Still
Slide 14: 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 Group ROTE Good level of diversification in terms of business lines' contribution to underlying Group net profit, with no business line accounting for more than 30% (e
Slide 15: 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 profit +5.4% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying 1,868 Insurance 330 +7.1% 918 +0.1% +5.1 +48.5 +5.3 +4.8 +1.9 1,933 1,83
Slide 16: 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 Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M Premium income (€bn) Net inflows (€bn) €m underlying underlying underlying underlying +6.8% Q3/Q3 UL: +
Slide 17: 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 +5.4% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying +30.2 +0.6 1,475 Revenues 605 (1.5%) 1,905 +25.2% 1,400 1,426 +18.3 Operating
Slide 18: 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 Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying Revenues 860 +2.3% 2,594 (0.3%) +1.9% Operating expen
Slide 19: 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 €m Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M underlying underlying underlying underlying +17.3% Revenues 453 +9.7% 1,400 +12.1% Opera
Slide 20: Crédit Agricole in Italy - A group of profitable and developing activities
CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Crédit Agricole in Italy – A group of profitable and developing activities Crédit Agricole Group in Italy Group in Italy - Gross NPL (€bn) and coverage ratio A comprehensive and profitable customer-focused universal model 69.2% +18pp A retail bank focuse
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 Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying (1) +10.2% Revenues 209 +1.4% 628 +2.0
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) Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying +6.9% +3.4% 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 +0.1% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M 4,142 9M/9M 4,145 €m underlying underlying underlying underlying Revenues 1,318 +5.5% 4,145 +0.1% +5.5% Operating expenses
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 ∆ Q3/Q3 ∆ 9M/9M Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 €m Q3-18 Q3-17 9M-18 9M-17 (m€) (m€) Revenues (162) (106) (56) (281) (326) 45 Operating ex
Slide 25: Crédit Agricole Group
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 25 l THIRD QUARTER AND FIRST NINE MONTHS 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 Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying Revenues 3,242 +1.0% 9,827 (1.2%) +3.8% Operating expenses excl.
Slide 27: Financial Solidity
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 27 l THIRD QUARTER AND FIRST NINE MONTHS 2018 RESULTS
Slide 28: Fully-loaded CET1 ratio at 11.5% at 30 September 2018
CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Fully-loaded CET1 ratio(1) at 11.5% at 30 September 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) +0.2% 296 299 307 307 293 13 11 11 11 Market risk 10 28 28 11.4% +36bp +4bp 11.5% 29 28 28 -20bp -7bp -1bp Ope
Slide 29: Group fully-loaded CET1 ratio at 14.9%
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Fully-loaded CET1 ratio(1) at 14.9% at 30 September 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) 525 533 +0.9% 538 517 522 11 12 13 12 Market risk 11 48 48 47 47 47 14.8% +26bp +3bp 14.9% Operational risk -4bp -10
Slide 30: 102% of MLT market funding programme completed
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY 102% of Crédit Agricole S.A.’s MLT market funding programme completed at end-September Crédit Agricole Group - 2018 MLT market issues Crédit Agricole S.A. - 2018 MLT market issues Breakdown by issuer: €26.1bn at 30/09/2018 Breakdown by segment: €12.2bn at 30/
Slide 31: Liquidity and funding
CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Liquidity and funding Liquidity reserves at 30 September 2018 (€bn) 262 Assets eligible to Central Banks after ECB 221 48 haircut (immediate access) Reverse repos & other ST 19 11 Self-securitisations eligible to Central Banks 19 Other non-HQLA securities (1)
Slide 32: Conclusion
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 32 l THIRD QUARTER AND FIRST NINE MONTHS 2018 RESULTS
Slide 33: Conclusion
CRÉDIT AGRICOLE GROUP CONCLUSION Solid quarterly results in all business lines CRÉDIT AGRICOLE S.A. Underlying net profit(1) once again >€1bn for CASA, despite the seasonal effect Annualised 9M-18 ROTE at a high level Strong growth in Q3/Q3 net profit for CASA and CAG Strong and high-quality a
Slide 34: Appendices
1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 8 3 CREDIT AGRICOLE GROUP p. 25 4 FINANCIAL SOLIDITY p. 27 5 CONCLUSION p. 32 6 APPENDICES p. 34 34 l THIRD QUARTER AND FIRST NINE MONTHS 2018 RESULTS
Slide 35: 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 1.6 1.7 1.7 LT average 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 90 -0.2 2010 2011 2012 2013 2014 201
Slide 36: Market environment
APPENDIX Market environment Interest rates, in Euros (%) 10-year spread Germany vs. France and Italy (bp) ECO ECO Average 10-year OAT rate Q3-18 400 Average spread Q3-18: forecasts forecasts 1.8 (%) 0.711% (-4bp Q3/Q3) 350 for 2019: France 33bp (+3bp Q3/Q3) for 2019: 1.6 1.4 300 Italy 247bp (+82bp Q
Slide 37: Specific items in Q3
CRÉDIT AGRICOLE S.A. APPENDIX Specific items in Q3: -€32m in net income vs. +€100m in Q3-17 Pioneer integration costs: net income impact of -€6m Impact of -€12m before tax and minority interests (-€30m in 9M-18), representing a total of -€165m since Q1-17 vs. -€190m announced Reminder: target
Slide 38: Alternative Performance Measures - specific items Q3-18 and 9M-18
CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – specific items Q3-18 and 9M-18 Q3-18 Q3-17 9M-18 9M-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) - - (16) (14) - - (121) (69) DVA (LC) (8)
Slide 39: Reconciliation between stated and underlying results - Q3-18
CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q3-18 Q3-18 Q3-18 Q3-17 Specific Q3-17 ∆ Q3/Q3 ∆ Q3/Q3 €m Specific items stated underlying stated items underlying stated underlying Revenues 4,802 (33) 4,834 4,575 10 4,564 +5.0% +5.9% Operating expenses excl.SRF (
Slide 40: Reconciliation between stated and underlying results - 9M-18
CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – 9M-18 9M-18 9M-18 9M-17 Specific 9M-17 ∆ 9M/9M ∆ 9M/9M €m Specific items stated underlying stated items underlying stated underlying Revenues 14,882 2 14,880 13,983 20 13,962 +6.4% +6.6% Operating expenses excl.SRF
Slide 41: Alternative Performance Measures - specific items (Group)
CRÉDIT AGRICOLE GROUP APPENDIX Alternative Performance Measures – specific items Q3-18 and 9M-18 Q3-18 Q3-17 9M-18 9M-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) - - (28) (23) - - (145) (91) DVA (LC) (8
Slide 42: Group reconciliation stated and underlying - Q3-18
CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – Q3-18 Q3-18 Q3-18 Q3-17 Specific Q3-17 ∆ Q3/Q3 ∆ Q3/Q3 €m Specific items stated underlying stated items underlying stated underlying Revenues 8,043 (54) 8,097 7,885 78 7,807 +2.0% +3.7% Operating expenses excl.SRF
Slide 43: Group reconciliation stated and underlying - 9M-18
CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – 9M-18 9M-18 9M-18 9M-17 Specific 9M-17 ∆ 9M/9M ∆ 9M/9M €m Specific items stated underlying stated items underlying stated underlying Revenues 24,729 (19) 24,748 24,062 (17) 24,080 +2.8% +2.8% Operating expenses exc
Slide 44: Data per share
CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q3-18 Q3-17 9M-18 9M-17 ∆ Q3/Q3 ∆ 9M/9M Net income Group share - stated 1,101 1,066 3,393 3,262 +3.2% +4.0% - Interests on AT1, including issuance costs, before tax (91) (92) (316) (329) -0.7% -4.0% NIGS attributable to ordinary shares - stated [A] 1
Slide 45: RWA and allocated capital by business lines
CRÉDIT AGRICOLE S.A. APPENDIX RWA and allocated capital by business lines Q3-18 RWA by business line (€bn and %) Q3-18 allocated capital by business line (€bn and %) Asset servicing Asset servicing €10.2bn FRB FRB €1.0bn 4% €46.8bn €4.4bn 3% 17% 14% CIB IRB RB €3.8bn €10.2bn LC CIB RB IRB €8.3bn 12%
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