Credit Agricole Sa · EURONEXT:ACA
Credit Agricole Sa — Q2 2023 Earnings Presentation
24 slides from Credit Agricole Sa's earnings presentation, Aug 4, 2023
Slide 1: Working every day in the interest of our customers and society
WORKING EVERY DAY IN THE INTEREST OF OUR CUSTOMERS AND SOCIETY RESULTS SECOND QUARTER AND FIRST HALF OF 2023
Slide 2: Philippe Brassac: 2023 first half and second quarter results
Working every day in the interest of our customers and society Philippe Brassac 2023 FIRST HALF AND SECOND QUARTER RESULTS “Being available everywhere, to everyone, at any given time, to cover all possible needs, is what makes the model universal and safe for both clients and banks.” 2 SECOND QUARTE
Slide 3: Excellent results for the universal banking model
EXCELLENT RESULTS FOR THE UNIVERSAL BANKING MODEL Q2 2023 H1 2023 Stated Stated Crédit Agricole S.A. Crédit Agricole Crédit Agricole S.A.S.A. RoTE CréditAgricole Crédit Agricole S.A. S.A. 14.7% 52.3% Net income Group €2,040m €3,266m ROTE H1-23 cost/income share +24.7% Q2/Q2 +48.0% H1/H1 Underlying 6
Slide 4: Steadily rising quarterly revenues
STEADILY RISING QUARTERLY REVENUES Underlying revenues under IFRS 4 between 2017 and 2022; IFRS 17 since Q1-23 Q1 Q2 Q3 Q4 6,329 6,153 6,188 6,032 5,929 5,829 5,779 5,585 5,508 5,535 5,185 5,299 5,179 5,143 5,184 5,137 5,146 5,073 4,903 4,814 4,900 4,834 4,779 4,810 4,619 4,564 Q1-17 Q1-18 Q1-19 Q1-
Slide 5: Strong momentum in the entire range of customer needs
CRÉDIT AGRICOLE GROUP STRONG MOMENTUM IN THE ENTIRE RANGE OF CUSTOMER NEEDS (1) +471,000 new customers in Q2-23(2) Regional Banks: 42.8% LCL: 27.4% Property and casualty insurance equipment rate (+0.5 pp vs June 2022) +30% €3.7bn +20.4% Automotive financing Asset management CIB structured finance pr
Slide 6: A model fully able to absorb less favourable environments
CRÉDIT AGRICOLE GROUP A MODEL THAT IS FULLY ABLE TO ABSORB THE CONSEQUENCES OF LESS FAVOURABLE ENVIRONMENTS Reduced loan production in retail banking against a backdrop of tightening monetary policy Double the cost of risk, still below 2025 Ambitions strategic plan’s assumptions Lower net intermedia
Slide 7: Reduced home loan production in French retail banking
CRÉDIT AGRICOLE GROUP A MODEL THAT IS FULLY ABLE TO ABSORB THE CONSEQUENCES OF LESS FAVOURABLE ENVIRONMENTS Reduced home loan production in retail banking in France against a backdrop of tightening monetary policy Regional banks and LCL Home loans production (€bn) average prod: average prod: average
Slide 8: Alongside our customers and society
ALONGSIDE OUR CUSTOMERS AND SOCIETY Protection for • Exceptional cancellation of deductible customers • Faster claim filing and compensation affected by • Loan repayment deferment option the riots New • CACF growing stronger in the Mobility market mobilities (launch of Leasys and CA Auto Bank) • Cre
Slide 9: Jérôme Grivet: 2023 first half and second quarter results
Working every day in the interest of our customers and society Jérôme Grivet 2023 FIRST HALF AND SECOND QUARTER RESULTS “H1 and Q2 2023 top financial performance, driven by all time best revenues.” 9 SECOND QUARTER AND FIRST HALF 2023 RESULTS
Slide 10: Crédit Agricole Group IFRS 17 pro forma key figures
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP IFRS 17 PRO FORMA KEY FIGURES Underlying Q2 2023 H1 2023 Revenues €9,159m €18,117m +9.5% Q2/Q2 +5.5% H1/H1 Operating expenses excl. SRF -€5,215m -€10,498m +5.7% Q2/Q2 +5.0% H1/H1 Cost/ income ratio 57.9% Gross operating income €3,950m €6,999m excluding SRF
Slide 11: Crédit Agricole S.A. IFRS 17 pro forma key figures
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A. IFRS 17 PRO FORMA KEY FIGURES Underlying Q2 2023 H1 2023 Revenues €6,329m €12,482m +15.6% Q2/Q2 +12.9% H1/H1 Cost/ income ratio 52.3% excluding SRF -3.6 pp H1/H1 Operating expenses excl. SRF -€3,200m -€6,528m +4.5% Q2/Q2 +5.7% H1/H1 Gross operating income €3
Slide 12: Activities: good business momentum
CRÉDIT AGRICOLE GROUP ACTIVITIES: GOOD BUSINESS MOMENTUM CIB – Leading positions +471,000 gross Property and casualty insurance # 1 – Syndicated loans in France(6) +114,000 net equipment rate up(2) # 2 – Syndicated loans in EMEA(6) new customers in Q2-23(1) 42.8% RB , 27.4% LCL , 17.9% CA Italy # 3
Slide 13: Regional Banks: an adopted continuous development strategy
CRÉDIT AGRICOLE GROUP REGIONAL BANKS: AN ADOPTED CONTINUOUS DEVELOPMENT STRATEGY Customer assets (€bn) Customer capture: +291,000 new customers in Q2(1) +3.3% On-balance sheet deposits: +2.7% June/June 838.3 861.0 866.1 ∆ June/June Loans outstanding: +4.6% June/June Loan production down -19.
Slide 14: Revenues at their highest level
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A. REVENUES AT THEIR HIGHEST LEVEL Q2/Q2 and H1/H1 change in revenues by division – €m, in accordance with IFRS 17 Q2/Q2 H1/H1 +15.6% +€853m +18.8% +€1,056m +12.9% +€1,431m +478 +119 6,676 +14.2% +€1,593m (33) 6,329 +251 12,797 12,482 +558 +462 +263 (118) (65)
Slide 15: Controlled expenses
CRÉDIT AGRICOLE S.A. CONTROLLED EXPENSES Q2/Q2 and H1/H1 change in underlying expenses excluding SRF, by division, in accordance with IFRS 17 Q2/Q2 H1/H1 +4.5% +€139m +5.7% +€353m +3.0% +€95m +4.6% +€290m 6,546 6,528 +74 3,218 3,200 +232 (17) (4) 3,061 3,123 +78 +70 6,256 6,175 (17) (24) +5 (13) Q2-
Slide 16: High loan loss reserves, cost of risk below MTP assumptions
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. HIGH LOAN LOSS RESERVES, COST OF RISK BELOW THE 2025 MTP ASSUMPTIONS Crédit Agricole Group – Loan loss reserves (in €bn) Low Non-Performing Loans ratio 20.6 Crédit Agricole Group 19.5 19.6 19.9 20.0 19.0 18.9 2.1% Stable Q2-23/Q1-23 11.6 11.9 11.2 11.3 11.5
Slide 17: Net income Group share at its highest
CRÉDIT AGRICOLE S.A. NET INCOME GROUP SHARE AT ITS HIGHEST Q2/Q2 and H1/H1 change in net income Group share by division – €m, in accordance with IFRS 17 Q2/Q2 H1/H1 +18.0% +€282m +32.3% +€756m +24.7% +€404m +48.0% +€1,059m +434 +36 2,040 +297 3,266 3,100 +51 +103 +199 +67 1,850 +554 (58) 2,344 (221)
Slide 18: Very high capital and liquidity positions
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. VERY HIGH CAPITAL AND LIQUIDITY POSITIONS Capital position Liquidity one of the strongest banks in Europe Stable customer deposits High level of liquidity reserves Distance Distance to SREP to SREP - Q2 (1) – Q2 2023 2023 1 2 Crédit Agricole Group Crédit Ag
Slide 19: Development plans continue
DEVELOPMENT PLANS CONTINUE CA Consumer Finance’s mobility activities on the go (launch of Leasys and CA Auto Bank) RBC-IS European activities fully integrated by CACEIS Signing of an agreement for the acquisition of a majority stake in the capital of Banque Degroof Petercam 19 SECOND QUARTER AND FIR
Slide 20: Second quarter and first half 2023 results
20 SECOND QUARTER AND FIRST HALF 2023 RESULTS
Slide 21: Asset gathering
CRÉDIT AGRICOLE S.A. ASSET GATHERING Crédit Agricole Assurances Amundi Wealth management • Savings/Retirement: gross inflows +2.3% Q2/Q2 (UL share • Assets under management: €1,961bn (+1.9% vs • Net inflows impacted by the change in 45.3%). Positive net inflows in France, outstandings(1) June 2022)
Slide 22: Large customers
CRÉDIT AGRICOLE S.A. LARGE CUSTOMERS Crédit Agricole CIB CACEIS • Excellent commercial performance and results (Q2-23 underlying revenues(1) close to • Assets under custody and assets under administration up vs best Q2 in history) March 2023 (+2.1%) thanks to the commercial momentum and confirmed up
Slide 23: Specialised financial services
CRÉDIT AGRICOLE S.A. SPECIALISED FINANCIAL SERVICES CA Consumer Finance CA Leasing & Factoring • Full consolidation of CA Auto Bank and launch of the Leasys JV • Outstandings up +9.5% Q2/Q2, with +8.3% in renewable energy • Production +9% Q2/Q2, driven by the automotive channel(1) (up by +30%) and •
Slide 24: Retail banking
CRÉDIT AGRICOLE S.A. RETAIL BANKING LCL Crédit Agricole Italy International • Gross customer capture +175,300 new customers in H1 • Gross customer capture +45,000 new customers over • Gross customer capture Poland 2023 Q2 +55,000 new customers in Q2 • Loans outstanding +6.7% June/June; production(1)