Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Debt Investor Presentation (April 2010)
46 slides from Credit Agricole SA's debt investor presentation, April 2010
Slide 1: Investor Update - April 2010
Investor Update - April 2010 a CREDIT =—_= AGRICOLE S.A.
Slide 2: Disclaimer
Disclaimer This document has been prepared by Crédit Agricole, S.A. and is confidential and is not to be reproduced by any person, nor be distributed to any person other than its original recipient. None of Crédit Agricole S.A. or its affiliates, advisers, dealers or representatives takes no respons
Slide 3: Contents
Contents 1 French economy 2 Crédit Agricole Group Overview 3 Crédit Agricole Capital & Risk Management 4 Crédit Agricole S.A. (results and solvency) 5 Crédit Agricole Group Funding Strategy 6 Appendices 7 Contact list 3 Investor Update
Slide 4: Crédit Agricole Group Highlights
Highlights Market shares and outstandings at end September-09, unless otherwise specified #1 in Retail Banking and related businesses in France 26mn customers, almost half of the French population and 9,075 branches under 2 brands: Crédit Agricole and LCL 25.3% market share in deposits from ho
Slide 5: Section 1: French Economy
Section 1: French Economy 5 Investor Update
Slide 6: A resilient domestic market – France relative strength
A resilient domestic market – France relative strength GDP quarterly variation France’s GDP continued to rise at +0.6% in Q4-09 well above the Euro-zone average. The French economy resisted better to the crisis than its fellow Euro-countries. In 2009, the Eurozone member States’ GDP decreased by
Slide 7: Section 2: Crédit Agricole Group Overview
Section 2: Crédit Agricole Group Overview 7 Investor Update
Slide 8: Crédit Agricole: a sound mutual retail-oriented Group
Crédit Agricole: a sound mutual retail-oriented Group 6.2 mn co-operative shareholders Public Public French retail banking (LCL) (including (including employees) employees) International retail banking: 2,544 local credit co-operatives 44.8% Cariparma (It.), Emporiki (Gr.), Crédit du Maroc (Ma.)… As
Slide 9: The Cross-Guarantee Mechanism: a source of structural strength
The Cross-Guarantee Mechanism: a source of structural strength Reciprocal commitments exist between the Regional Banks and Crédit Agricole S.A. Through them, resources within the Crédit Agricole Network, as defined by the law, may, in certain circumstances, meet the needs of particular members C
Slide 10: A diversified NBI and high operating efficiency driven by retail banking
Crédit Agricole Group: A diversified NBI and high operating efficiency driven by retail banking and associated businesses 2009 NBI per Business Line A substantial Net Banking Income (NBI) with a high degree of recurrence thanks to Total €31.3bn the contribution of retail banking and related busine
Slide 11: Crédit Agricole Group key results
Crédit Agricole Group key results In 2009, the Group’s Net banking income rose €mn 2009 2008 Δ 2009/2008 strongly (+10%) compared to 2008, due to the good performance of retail banking, of Specialised Net banking income 31,305 28,455 +10% Financial Services (+23%) and the recovery of CIB (+119%).
Slide 12: Senior Debt Rating of Crédit Agricole above average of European Banks
Crédit Senior Debt Rating of Crédit Agricole above average of European Banks: the example of Standard and Poor’s Source: Standard & Poor’s Crédit Agricole: AA- Negative Outlook 12 Investor Update
Slide 13: Section 3: Capital & Risk Management
Section 3: Crédit Agricole Capital & Risk Management 13 Investor Update
Slide 14: Sound Group capital position after the financial crisis
Sound Crédit Agricole Group capital position after the financial crisis Extremely sound Group capital structure Crédit Agricole Group consolidated 31/12/08 30/09/09 31/12/09 regulatory capital - €bn A high level of net Tier 1 capital: € 52.4bn at end of December-09, with a floored Tier 1 ratio o
Slide 15: Crédit Agricole Group in the subordinated market
Crédit Agricole Group in the subordinated market Continuous access to the subordinated market Any Lower Tier 1 issue project must be submitted to the French Regulator for the approval of conditions before launch. In its reply to the Issuer, the Regulator indicates, if the issuer complies with it
Slide 16: Group and the solvency regulatory framework after the financial crisis
Crédit Agricole Group and the solvency regulatory framework after the financial crisis Tightening of the regulation regarding the treatment of hybrids Much has been said by market actors and politicians, but little has been decided by the regulators so far. At Crédit Agricole Group level, litt
Slide 17: Trends in risk
Trends in risk Good cover rate of doubtful loans by reserves, limited rise of doubtful loans ratio with stability in the Regional Banks Crédit Agricole S.A. Group € mn Dec. 08 June 09 Dec. 09 Gross customer and interbank loans outstanding 424,409 440,952 445,913 of which: bad and doubtful loans 13
Slide 18: Risk-related costs vs. risk-weighted assets
Risk-related costs vs. risk-weighted assets Risk-related costs stabilised since the end of 2008 Crédit Agricole S.A. (Basel 1) (in bp) 163 136 126 124 114 109 Although the year as a whole peaked in terms of assets 80 79 quality problems, Crédit Agricole Group’s quarterly risk- related costs relati
Slide 19: Risk-related costs vs. risk-weighted assets
Risk-related costs vs. risk-weighted assets Very high cover rates in retail banking Regional Banks (Basel 1) International retail banking (Basel 1) (in bp) 363 (in bp) 66 65 63 58 59 58 49 46 193 193 197 195 185 151 31 28 112 77 69 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 2008 2009 Q1-08 Q2-0
Slide 20: Risk-related costs vs. risk-weighted assets
Risk-related costs vs. risk-weighted assets Risk-related costs peaked in corporate and investment banking Corporate and investment banking (Basel 1) CIB excluding discontinuing operations (Basel 1) (in bp) (in bp) 148 121 115 105 98 89 91 72 74 74 69 66 72 69 62 49 40 41 30 29 Q1-08 Q2-08 Q3-08 Q4-0
Slide 21: Section 4: Crédit Agricole S.A. (results and solvency)
Section 4: Crédit Agricole S.A. (results and solvency) 21 Investor Update
Slide 22: Crédit Agricole S.A. consolidated results
Crédit Agricole S.A. consolidated results Net income - Group share: €1.1 billion in 2009 Δ 2009 €mn 2009 2008 €mn Q4-09 Q4-08 Δ Q4/Q4 Δ Q4/Q4* /2008 Net banking income 17,942 15,956 +12.4% Net banking income 4,494 4,598 (2.3%) +13.8% Operating expenses (12,182) (12,635) (3.6%) Operating expenses (3,
Slide 23: Crédit Agricole Group financial position
Crédit Agricole Group financial position Crédit Agricole S.A. Active risk management policy CRD risk-weighted assets down 3.6% compared with 1 January 2009 mainly owing to reduced market risk, with a decline of €16.5bn due to the refocusing plan at CA CIB Tier One and Core Tier One ratios in
Slide 24: Section 5: Group Funding Strategy
Section 5: Crédit Agricole Group Funding Strategy 24 Investor Update
Slide 25: Strong customer liquidity coming from the retail network
Strong customer liquidity coming from the retail network Loans and savings outstanding of CA Group French retail banking The CA Group is mostly funded by customer deposits At the end of 2009, 80.3% of the Group loans outstanding are funded by core customer deposits, up from 75.5% at 2008 year- e
Slide 26: Very strong liquidity position
Very strong liquidity position Crédit Agricole S.A. applies a very sound liquidity management policy Strict control of maturity concentration risk is applied both to short and long term funding Central and cautious management of liquidity reserves Over € 100bn of assets eligible to central b
Slide 27: Strong start for the 2010 funding programme
Strong start for the 2010 funding programme Senior unsecured public benchmark issued by Crédit Agricole S.A. $1.5bn launched in the 144A/Reg S market in February-10 with a 2-year maturity off its USMTN programme €1.5bn launched in the European institutional market in March-10 with a 3-year mat
Slide 28: Section 6: Appendices
Section 6: Appendices 28 Investor Update
Slide 29: Regulatory Capital Position
Regulatory Capital Position Outstanding soundness after the financial crisis Solvency ratios of Crédit Agricole Group €bn 31/12/2008 30/09/2009 31/12/2009 Tier 1 51.5 52.9 52.4 Total Capital 61.0 61.2 60.5 CRD (Basel 2) Risk-weighted assets 444 * 484 ** 490 ** Floored ratios Tier 1 ratio 8.4% 9.9%
Slide 30: Leader in a sound French housing market
Crédit Agricole Group, leader in a sound French housing market CACB Residential property prices (Index base 100=2000Q1) The French market has undergone a slowdown but has started to recover: Prices have decreased by 10% in 2008, less than most European markets, and have already started to recove
Slide 31: Crédit Agricole Covered Bonds: issuer legal framework
Crédit Agricole Covered Bonds: issuer legal framework CACB Crédit Agricole Covered Bonds (CACB), the Issuer A French credit institution duly licensed by the CECEI (Comité des Etablissements de Crédit et des Entreprises d’Investissement) Under permanent supervision by the Commission Bancaire
Slide 32: Crédit Agricole Covered Bonds: structure overview
Crédit Agricole Covered Bonds: structure overview CACB Investors Issuer Security Covered Collateral Providers: Bonds Proceeds Issuer Security Agent Proceeds from the issuance of covered bonds will be used by No mismatch the Issuer to grant Borrower between Covered Facilities to Crédit Agricole S.A
Slide 33: General information on the pool as at end of January 2010
General information on the pool as at end of January 2010 CACB Pool Notional € 8,581,903,636 Number of loans 176,125 Average loan balance € 48,726 WA seasoning 56 months WA remaining term 171 months WA LTV 64.38 % Indexed WA LTV 54.27 % Proportion of fixed rates 85.7%, all floating rates are capped
Slide 34: Exposure to Monolines, CDPC and super senior CDOs
Exposure to Monolines, CDPC and super senior CDOs Exposure to monoline counterparty risk €bn at 31/12/08 at 31/12/09 Notional amount of monoline hedge on US residential CDOs 4.4 0.5 Notional amount of monoline hedge on other underlyings 12.8 10.5 Exposure to monolines to hedge US residential CDOs
Slide 35: Exposure to Monolines, CDPC and super senior CDOs
Exposure to Monolines, CDPC and super senior CDOs Unhedged super senior CDOs with US residential mortgages underlyings Super senior CDOs measured at fair value Discounts are calculated by applying a credit scenario on the underlying assets (mainly residential mortgage loans) of the ABSs that m
Slide 36: Exposure to mortgage ABS and LBOs
Exposure to mortgage ABS and LBOs Exposure to mortgage ABS US United Kingdom Spain RMBS* 30/09/2009 31/12/2009 30/09/2009 31/12/2009 30/09/2009 31/12/2009 Recognised under loans and receivables 723 728 418 404 202 197 Recognised under assets measured at fair value* Gross exposure 537 506 113 110 3
Slide 37: ABCP conduits sponsored by Crédit Agricole CIB
ABCP conduits sponsored by Crédit Agricole CIB on behalf of third parties, as at 2009 year-end Sponsored securitisation conduits as at 31 Dec. 09 Atlantic LMA Hexagon Total Ratings on ABCP issued by the conduits A1/P1/F1 A1/P1 A1+ (S&P/Moody’s/Fitch) Country of issue USA France + USA France Cash lin
Slide 38: French Retail Banking – Regional Banks
FRENCH RETAIL BANKING – REGIONAL BANKS 2009: a good year Crédit Agricole S.A. Customer business remained on strong €mn Q4-09 Δ Q4/Q4 Δ Q4/Q3 2009 Δ 2009 /2008 growth track Ö NBI from customer business: up 6.9% YoY in Aggregate IAS NBI 3,150 +18.6% (4.8%) 13,280 +7.4% 2009; up 1.3% QoQ in Q4 Adjust
Slide 39: French Retail Banking - LCL
FRENCH RETAIL BANKING - LCL Gross operating income up sharply Crédit Agricole S.A. Net banking income up 6.3% YoY in Q4 2009, up 3.6% over 12m excluding home purchase savings provisions, up 4.0% over the year Δ 2009 €mn Q4-09 Δ Q4/Q4 Δ Q4/Q3 2009 /2008 Q4 underpinned by - transformation margin
Slide 40: International Retail Banking
INTERNATIONAL RETAIL BANKING A resilient, responsive international network Crédit Agricole S.A. Note: Figures for the business line excluding impact of reclassifying African entities in the process Networks held up well of being sold into discontinued operations in Q4-08 (see appendix p. 68) Car
Slide 41: Emporiki
EMPORIKI Change in line with plan initiated in H1-2009 Crédit Agricole S.A. Cost of risk tightly controlled: €657mn in 2009, including €138mn in Q4 (down 12.8% QoQ in Q4) Substantial impact from improvements in credit scoring, processing and collections Policy of slowdown in lending in local c
Slide 42: Specialised Financial Services
SPECIALISED FINANCIAL SERVICES Solid operating performance; cost of risk stabilised Crédit Agricole S.A. Solid business performance: GOI up 42.9% Growth in outstandings: up 6.4% in consumer finance, up 10.4% in lease finance Δ 2009 €mn Q4-09 Δ Q4/Q4 Δ Q4/Q3 2009 NBI up 9.0%* over the year, aid
Slide 43: Asset Management, Insurance and Private Banking
ASSET MANAGEMENT, INSURANCE AND PRIVATE BANKING An expanding business line with solid commercial momentum Crédit Agricole S.A. Rapidly growing businesses with inflows up in all segments Δ 2009 Δ 2009 €mn Q4-09 Δ Q4/Q4 Δ Q4/Q3 2009 /2008 /2008* Ö +€48.5bn over the year Net banking income 1,037 +12.
Slide 44: Corporate and Investment Banking
CORPORATE AND INVESTMENT BANKING 2009 net income - Group share from ongoing activities exceeded €1bn, in line with the plan Crédit Agricole S.A. Ongoing activities: markets continued to CIB net income – Group share return to normal in Q4-09 restated for reevaluation of debt issues and loan hedges
Slide 45: Corporate Centre
CORPORATE CENTRE Segment net income Crédit Agricole S.A. No major deals during the quarter; even so: Solid results in financial management Positive impact from redeeming the super- subordinated notes taken up by the State €mn Q4-09 Δ Q4/Q4 Δ Q4/Q3 2009 2008 Limited comparability between 2008
Slide 46: Contacts List
Contacts List Claude Rosenfeld +33 1 43 23 34 08 Assistant of the Head of the Financial Management Department claude.rosenfeld@credit-agricole-sa.fr and London Branch Supervisor Nadine Fedon +33 1 43 23 48 68 Global Head of Funding nadine.fedon@credit-agricole-sa.fr General Manager of Crédit Agricol
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