Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — FY2018 Earnings Presentation

50 slides from Credit Agricole SA's earnings presentation, February 2019

  1. Slide 1: Fourth Quarter and Full Year Results 2018

    FOURTH QUARTER AND FULL YEAR RESULTS l 2018

  2. Slide 2: Disclaimer

    DISCLAIMER  Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the fourth quarter and full year 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/financ

  3. Slide 3: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 3 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  4. Slide 4: Key messages for 2018

    CRÉDIT AGRICOLE GROUP INTRODUCTION Key messages for 2018 CRÉDIT AGRICOLE S.A.  Customer acquisition Retail Banking France and Italy: almost 1.8m new customers (282K net) Success of Eko, the Regional Banks’ entry-level banking solution: 80K clients, 73% prospects Launch of Trajectoires Patrimoine, t

  5. Slide 5: Key messages for Q4

    CRÉDIT AGRICOLE GROUP INTRODUCTION Key messages for Q4 CRÉDIT AGRICOLE S.A.  High level and healthy Q4/Q4 growth of net income for CASA, despite difficult market conditions €1.1bn +21.6% Q4-18 underlying net Increase in underlying(1) income(1) net income Q4/Q4  Confirmed cost control, down slightl

  6. Slide 6: A difficult market environment in Q4

    INTRODUCTION A difficult market environment in Q4 Interest rates, in euros (%) 10-year spread Germany vs. France and Italy (bp) 1.8 (%) 400 1.6 Average spread Q4-18: Avg. French 10y bond yield Q4-18: 0.765% (+3bp Q4/Q4) 350 France: 39bp (+4pb Q4/Q4), 1.4 300 1.2 Italy: 294bp (+142pb Q4/Q4) 0.9 250 0

  7. Slide 7: Key figures

    INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q4-18 2018 Q4-18 2018 €1,571m €6,844m Net income Group share - stated €1,008m €4,400m +70.3% Q4/Q4 +4.7% 2018/2017 x 2.6 Q4/Q4 +20.6% 2018/2017 €1,626m €6,849m Net income Group share - underlying (1) (2) €1,067m €4,405m -3.9% Q4/Q4

  8. Slide 8: Profitability above targets in several business lines already in 2018

    CRÉDIT AGRICOLE S.A. INTRODUCTION Profitability above targets in several business lines/divisions already in 2018 2018 underlying RoNE(1,2) by business line and 2019 targets (%) After tax and AT1 coupons allocated to business lines 2019 MTP target 25.2% 2017 underlying >25% 2018 underlying >16% >16%

  9. Slide 9: Progress on the MTP – 2018 year-end update (1/3)

    INTRODUCTION Progress on the MTP – 2018 year-end update (1/3)  Eureka  +3.5m news customers in retail  Success of savings plans  Revenue synergies in line with Simplification of our capital structure in banking in France and Italy Transformons Ensemble 2019 target 2016 since end 2016 (2 years)

  10. Slide 10: Progress on the MTP – 2018 year-end update (2/3)

    INTRODUCTION Progress on the MTP – 2018 year-end update (2/3) Crédit Agricole Group Crédit Agricole S.A. 2015 2018 2019 Targets 2015 2018 2019 Targets 31,314 +1.6%(*)  > +1,5% Underlying revenues CAGR(**) 17,379(**) +4.3%(*)  > +2,5% 62.9% 64.0% < 60% Cost / income ratio 68.6% 62.1% <60% 30 17  <

  11. Slide 11: Progress on the MTP – 2018 year-end update (3/3)

    INTRODUCTION Progress on the MTP – 2018 year-end update (3/3) NEW MEDIUM TERM PLAN PRESENTATION 6 JUNE 2019 IN MONTROUGE 11 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  12. Slide 12: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 12 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  13. Slide 13: Net income: healthy growth 2018/2017 and Q4/Q4

    CRÉDIT AGRICOLE S.A. RESULTS Net income: healthy growth(1) 2018/2017 and Q4/Q4 2018/2017 and Q4/Q4 change in underlying net income(1), by business line +12.2% +162 4,405 4,400 +82 +121 (5) 3,649 3,925 +41 +73 2018/2017: contribution to growth by all divisions (276)  Strong organic growth and enhanc

  14. Slide 14: Revenue: increase in 2018/2017, stable Q4/Q4

    CRÉDIT AGRICOLE S.A. RESULTS Revenue: increase(1) in 2018/2017, stable Q4/Q4 despite the market environment 2018/2017 and Q4/Q4 change in underlying revenues(1), by business line < +4.9% +514 +237 +47 +255 19,694 19,736 18,634 -138 18,772 (132) +41 2018/2017: good organic growth and scope effects 

  15. Slide 15: Costs: stable Q4/Q4, contained increase 2018/2017

    CRÉDIT AGRICOLE S.A. RESULTS Costs: stable Q4/Q4, contained increase 2018/2017 despite scope effects 2018/2017 and Q4/Q4 change in underlying costs(1), by business line +3.8% 12,203 12,228 12,588 2018/2017: stability excluding scope effect 11,785 +206 +143 +70 +53 176 242 301 59 (30)  Scope effect:

  16. Slide 16: 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)  Sharp decline Q4/Q4: -6bp 41 23bp  IFRS9 loss allowances on performing loans 37 cost of credit risk / (

  17. Slide 17: Cost of risk still well under control in the 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: €63m in Q4  CA Italia: €64m in Q4 stable year-on-year 93 87 87 89 92 88 78 -25bp year-on-year 73 67  Stable vs. Q4

  18. Slide 18: 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 +0.6% Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 +3.6% €m underlying underlying underlying underlying 1,868 + 5.2 + 4.8 + 3.3 1,934 + 2.1 + 0.6 1,879 + 5.1 + 48.5 In

  19. Slide 19: 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 Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 €m Premium income (€bn) Net inflows (€bn) underlying underlying underlying underlying +7.3% 7.85 +2.

  20. Slide 20: 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 -0,1% -0.1% Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 +3,4%+3.4% €m underlying underlying underlying underlying 1,426 ++ 18.3 18,3 ++ 0,6 0.6 1,475 1 475 ++ 0,5 0.5 1,42

  21. Slide 21: 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 Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 €m underlying underlying underlying underlying +2.5% Revenues 841 (0.6%) 3,434 (0.4%) 185.8 188.2

  22. Slide 22: 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 Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 €m underlying underlying underlying underlying Revenues 485 +17.5% 1,885 +13.4% -2.3% Op

  23. Slide 23: 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 Crédit Agricole Group's results in Italy  A comprehensive and profitable customer-focused  Strengthening of the Crédit Agricole brand in Italy univers

  24. Slide 24: 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 Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 (1) €m +9.9% underlying underlying underlying underlying Revenues 220 +7.2% 847 +3

  25. Slide 25: 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) Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 €m underlying underlying underlying underlying +7.2% +3.1%

  26. Slide 26: 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 (2.4% ) 2018/2017 Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 5,455 5,324 €m underlying underlying underlying underlying (10.3%) Revenues 1,178 (10.3%) 5,323 (2.4%) Opera

  27. Slide 27: 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 €m Q4-18 Q4-17 ∆ Q4/Q4 2018 2017 ∆ 2018/2017 Q4-18 Q3-18 Q2-18 Q1-18 Q4-17 Q3-17 Q2-17 Q1-17 Q4-16 Revenues (63) (329) +266 (344) (656) +311 Operating expenses

  28. Slide 28: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 28 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  29. Slide 29: Regional Banks

    CRÉDIT AGRICOLE GROUP ACTIVITY AND RESULTS Regional Banks Activity indicators (€bn) Contribution to Crédit Agricole Group P&L Customer savings Loans outstanding Q4-18 ∆ Q4/Q4 2018 ∆ 2018/2017 €m underlying underlying underlying underlying Revenues 3,228 (4.0%) 13,055 (1.9%) +2.7% Operating expenses

  30. Slide 30: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 30 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  31. Slide 31: CET1 ratio at 11.5% at December 2018

    CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY CET1 ratio at 11.5% at 31 December 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) 11.5% +33bp +14bp 11.5% -0.1% ​​ ​​ ​​ ​ 296 299 307 307 307 -19bp -13bp -15bp ​​ 13 11 11 11 11 28 28 28 28 31 258 260 266 267 265 Sept. 18 Sta

  32. Slide 32: CET1 ratio at 15.0% at December 2018

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY CET1 ratio at 15.0% at 31 December 2018 Change in fully-loaded CET1 ratio (bp) Change in risk-weighted assets (€bn) 14.9% +22bp ​​ +15bp 15.0% +0.7% ​ 522 525 533 538 542 ​​ -7bp -25bp 12 13 12 11 11 48 48 56 47 47 464 465 473 478 475 Sept. 18 Retained earnin

  33. Slide 33: €14.1bn in MLT market funding issued by Crédit Agricole S.A. in 2018

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY €14.1bn in MLT market funding issued by Crédit Agricole S.A. in 2018 Crédit Agricole Group - 2018 MLT market issues Crédit Agricole S.A. Crédit Agricole Group - 2018 MLT market issues Breakdown by issuer: €34.1bn at 31/12/2018 Breakdown by debt category: €14.

  34. Slide 34: Liquidity and funding

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Liquidity and funding Liquidity reserves at 31/12/18 (€bn) 272 51 Assets eligible to Central Banks after ECB 229 haircut (immediate access) Reverse repos & other ST 17 11 17 Self-securitisations eligible to Central Banks Other non-HQLA securities (1) €272bn S

  35. Slide 35: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 35 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  36. Slide 36: Healthy results, robust and balanced

    CRÉDIT AGRICOLE GROUP CONCLUSION Healthy results, robust and balanced CRÉDIT AGRICOLE S.A.  Main MTP targets for 2019 achieved by CASA, one year ahead of schedule: Net Income(1) €4.4bn, ROTE(1) 12.7%, CET1 11.5%, dividend of €0.69 per share in cash  Strong organic growth in all business lines High

  37. Slide 37: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 12 3 CREDIT AGRICOLE GROUP p. 28 4 FINANCIAL SOLIDITY p. 30 5 CONCLUSION p. 35 6 APPENDICES p. 37 37 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  38. Slide 38: Economic environment: solid growth

    APPENDIX Economic environment: solid growth France, Italy, Euro zone – Real GDP growth France – Household and business leaders’ confidence % 120 2,5 1,9 2,0 2,2 2,3 2,0 1,9 1,8 1,6 1,7 1,6 1,5 1,5 1,5 110 1,4 1,11,3 1,5 1,5 1,0 1,0 0,8 0,8 0,7 0,6 0,6 LT average 0,4 0,2 0,3 100 -0,2 2010 2011 2012 2

  39. Slide 39: Specific items in Q4: -€59m in net income vs. -€490m in Q4-17

    CRÉDIT AGRICOLE S.A. APPENDIX Specific items in Q4: -€59m in net income vs. -€490m in Q4-17  AGCM (Italian competition authority) fine recognised by FCA Bank: net income impact of -€67m  Pioneer integration costs: net income impact of -€14m  Impact of -€27m before tax and minority interests (-€56

  40. Slide 40: Alternative Performance Measures – specific items Q4-18 and 2018

    CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – specific items Q4-18 and 2018 Q4-18 Q4-17 2018 2017 €m Gross Impact on Gross Impact on Gross Impact on Gross Impact on impact* NIGS impact* NIGS impact* NIGS impact* NIGS Issuer spreads (CC) - - (95) (62) - - (216) (131) DVA (LC) 15 11

  41. Slide 41: Reconciliation between stated and underlying results – Q4-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q4-18 Q4-18 Q4-18 Q4-17 Specific Q4-17 ∆ Q4/Q4 ∆ Q4/Q4 €m Specific items stated underlying stated items underlying stated underlying Revenues 4,853 39 4,814 4,651 (158) 4,810 +4.3% +0.1% Operating expenses excl.SRF

  42. Slide 42: Reconciliation between stated and underlying results – 2018

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – 2018 2018 2018 2017 Specific 2017 ∆ 2018/2017 ∆ 2018/2017 €m Specific items stated underlying stated items underlying stated underlying Revenues 19,736 41 19,694 18,634 (138) 18,772 +5.9% +4.9% Operating expenses ex

  43. Slide 43: Alternative Performance Measures – specific items Q4-18 and 2018 (Group)

    CRÉDIT AGRICOLE GROUP APPENDIX Alternative Performance Measures – specific items Q4-18 and 2018 Q4-18 Q4-17 2018 2017 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) (62) - - (249) (153) DVA (LC) 15

  44. Slide 44: Reconciliation between stated and underlying results – Q4-18 (Group)

    CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – Q4-18 Q4-18 Q4-18 Q4-17 Specific Q4-17 ∆ Q4/Q4 ∆ Q4/Q4 €m Specific items stated underlying stated items underlying stated underlying Revenues 8,110 46 8,064 8,045 (190) 8,235 +0.8% (2.1%) Operating expenses excl.SR

  45. Slide 45: Reconciliation between stated and underlying results – 2018 (Group)

    CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – 2018 2018 2018 2017 Specific 2017 ∆ 2018/2017 ∆ 2018/2017 €m Specific items stated underlying stated items underlying stated underlying Revenues 32,839 26 32,813 32,108 (207) 32,315 +2.3% +1.5% Operating expenses e

  46. Slide 46: A stable, diversified and profitable business model

    CRÉDIT AGRICOLE S.A. APPENDIX A stable, diversified and profitable business model Underlying 2018 revenues by business line (excluding CC) (%) Underlying 2018 net income by business line (excluding CC) (%) Large Large Asset Asset customers Asset Asset customers servicing Insurance gathering servicin

  47. Slide 47: RWA and allocated capital by business lines

    CRÉDIT AGRICOLE S.A. APPENDIX RWA and allocated capital by business lines RWA by business line at 31/12/2018 (€bn and %) Allocated capital by business line at 31/12/2018 (€bn and %) Asset gathering Insurance Corporate €23.9bn Large Corporate Asset Asset gathering Asset centre 4% Asset customers cent

  48. Slide 48: Data per share

    CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q4-18 Q4-17 2018 2017 ∆ Q4/Q4 ∆ 2018/2017 Net income Group share - stated 1,008 387 4,400 3,649 x 2.6 +20.6% - Interests on AT1, including issuance costs, before tax (127) (125) (443) (454) +1.2% -2.5% NIGS attributable to ordinary shares - stated [A

  49. Slide 49: This page is left intentionally blank

    This page is left intentionally blank 49 l FOURTH QUARTER AND FULL YEAR 2018 RESULTS

  50. Slide 50: 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

Crédit Agricole — FY2018 Earnings Presentation on 6ix