Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — SG Premium Conference 2011
33 slides from Credit Agricole SA's conference presentation, Nov 30, 2011
Slide 1: Adapting to a new environment
Adapting to a new environment Bernard Delpit Chief Financial Officer SG Premium Conference - Paris, 30 November 2011
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 base
Slide 3: Contents
Contents Crédit Agricole S.A.: a window on Crédit Agricole Group Crédit Agricole Group and Crédit Agricole S.A. 9M results A sound financial structure and internal flexibility Focus on liquidity Deleveraging plan 3 November 2011 SG Premium Conference
Slide 4: Crédit Agricole S.A.: a window on Crédit Agricole Group - Retail banking businesses predominant
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP Retail banking businesses predominant Crédit Agricole Regional Banks: 1st French retail banking network, with 24.3% market share for household bank deposits and 21 million individual customers €10.5bn of revenues 9M-11 25% owned by Crédit Agric
Slide 5: Crédit Agricole Group: the most relevant scope to compare business models
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP Retail banking businesses predominant Crédit Agricole Group: the most relevant scope to compare business models (% of revenues) 11% 11% 14% 13% 11% 16% 18% 26% 26% 11% 17% 3% 5% 6% 30% Specialised financial services 35% 29% 28% 14% 45% 77% Corp
Slide 6: Compared balance sheets at 30 September 2011
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP Compared balance sheets at 30 September 2011* Crédit Agricole S.A.: bankinsurer and central body of the Crédit Agricole network a specific balance sheet structure ~ €241bn of insurance assets ~ €225bn of non netted derivatives (which would have
Slide 7: Leverage comparison
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP Leverage comparison Crédit Agricole Group: the most relevant scope to compare banks’ structures Methodology: Total assets / Shareholders’ equity (excluding goodwill and intangibles – June 2011) 7 November 2011 SG Premium Conference
Slide 8: Strong capital ratios
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP Strong capital ratios Regional Banks: strong capital ratios (+5.9 pp versus Crédit Agricole S.A.) Unfloored CRD ratio at 30/06/2011 18.9% 5.9 pp 13.8% 13.0% Regional Banks* Crédit Agricole S.A. Crédit Agricole Group * Arithmetic average of indi
Slide 9: High net profit retention rate
CRÉDIT AGRICOLE S.A.: A WINDOW ON CREDIT AGRICOLE GROUP High net profit retention rate Crédit Agricole S.A.: 2010 net income retention rate of 87% Thanks to the support of Regional Banks (scrip dividend) And despite a high pay-out ratio of 85% for 2010 13% paid out in cash 87% retained within Crédit
Slide 10: Contents
Contents Crédit Agricole S.A.: a window on Crédit Agricole Group Crédit Agricole Group and Crédit Agricole S.A. 9M results A sound financial structure and internal flexibility Focus on liquidity Deleveraging plan 10 November 2011 SG Premium Conference
Slide 11: Actively adjusting to the new environment
CRÉDIT AGRICOLE GROUP Actively adjusting to the new environment Rising share of on-balance sheet customer assets as part of total assets Strong growth in financing to the economy (loans outstanding +€22.6bn in Q3/Q2) 1.4 point improvement in loan-to-deposit ratio between June and September, to 124%
Slide 12: Solid 9M results - 1st French banking group by results in Q3-11
CRÉDIT AGRICOLE GROUP Solid 9M results - 1st French banking group by results in Q3-11 €m Q3-11 ∆ Q3/Q3 9M-11 ∆ 9M/9M Net income Group share up 1.2% YoY in first 9M, despite Revenues 8,766 +3.7% 26,886 +4.4% impact of European support Operating expenses (5,212) +3.4% (15,761) +2.2% plan to Greece GOI
Slide 13: Results positive in Q3 despite European support plan to Greece
CRÉDIT AGRICOLE S.A. Results positive in Q3 despite European support plan to Greece GOI up 15.8% YoY in Q3 to over €2bn €m Q3-11 Q3-10 ∆ ∆ Q3/Q3 Q3/Q3* Revenues up 6.2% YoY in Q3 Costs under control Revenues 5,285 4,977 +6.2% +5.9% - up 0.9% YoY in Q3 - excluding bank taxes, expenses stable YoY in Q
Slide 14: European support plan to Greece: €0.6bn net impact Group share
CRÉDIT AGRICOLE S.A. European support plan to Greece: €0.6bn net impact Group share in Q3-11 €m Q2-11 Q3-11 Cumulated impact Q2 + Q3 Emporiki Insurance Total Emporiki Insurance Total Cost of risk (71) (131) (202) (141) (764) (905) (1,107) Net impact (71) (94) (165) (141) (526) (667) (832) Net impact
Slide 15: European support plan to Greece: detailed impact on CA Assurances
CRÉDIT AGRICOLE S.A. European support plan to Greece: detailed impact on CA Assurances At 30 June 2011 : Gross exposure (accounting value) €5.0bn Maturities up to and including 2020: €2.5bn including a write-down of 21% accounted through the P&L Maturities beyond 2020: €2.5bn including a haircut thr
Slide 16: Contents
Contents Crédit Agricole S.A.: a window on Crédit Agricole Group Crédit Agricole Group and Crédit Agricole S.A. 9M results A sound financial structure and internal flexibility Focus on liquidity Deleveraging plan 16 November 2011 SG Premium Conference
Slide 17: Financial structure
CRÉDIT AGRICOLE GROUP Financial structure Core Tier 1 ratio: 8.9% at 30/09/2011 (Basel I floored) Risk-weighted assets stable compared with 30 June 2011, excluding harmonisation in the treatment of some mortgage guarantees, Centea scope effect and currency impact (mainly USD) Unfloored, the Crédit A
Slide 18: Cross guarantees between Crédit Agricole S.A. and the Regional Banks
FINANCIAL STRUCTURE: STRUCTURAL STRENGTHS Cross guarantees between Crédit Agricole S.A. and the Regional Banks Joint and several guarantee of Regional Banks between each other and toward Crédit Agricole S.A. Through a general guarantee, the Regional Banks guarantee obligations of Crédit Agricole S.A
Slide 19: Switch: a collateralised guarantee
FINANCIAL STRUCTURE: INTERNAL FLEXIBILITY Switch: a collateralised guarantee Crédit Agricole S.A.'s capital includes €5.5bn of deeply subordinated loans and securities subscribed by the Regional Banks €3.7bn for the shareholder's advance; €1.8bn for the T3CJ These instruments will not be recognised
Slide 20: Switch: CCI/CCA portion to be implemented at 31/12/2011
FINANCIAL POSITION Switch: CCI/CCA portion to be implemented at 31/12/2011* At 30/09/2011, risk-weighted assets associated with CCI/CCAs: €52bn Included in Crédit Agricole S.A.’s risk weighted assets Calculation based on equity-accounted value of the Regional Banks on Crédit Agricole S.A.'s balance
Slide 21: Switch: implementation timetable
FINANCIAL POSITION Switch: CCI/CCA portion to be implemented at 31/12/2011 As from 31/12/2011 If the guarantee is called, Crédit Agricole S.A. draws the corresponding amount from the deposit, which is replenished by the Regional Banks up to the amount of the regulatory requirement The Regional Banks
Slide 22: Contents
Contents Crédit Agricole S.A.: a window on Crédit Agricole Group Crédit Agricole Group and Crédit Agricole S.A. 9M results A sound financial structure and internal flexibility Focus on liquidity Deleveraging plan 22 November 2011 SG Premium Conference
Slide 23: Healthy short term funding supported by diversification and liquidity reserves
CRÉDIT AGRICOLE GROUP: HEALTHY SHORT TERM FUNDING SUPPORTED BY DIVERSIFICATION AND LIQUIDITY RESERVES Crédit Agricole Group ST debt at end-September 2011: €135bn1 Breakdown short term debt Breakdown short term debt Down €35bn on 30 June 2011 by currency by country Net excess treasury position with s
Slide 24: MLT funding more than completed
CRÉDIT AGRICOLE S.A. MLT Funding more than completed At end-October 2011, Crédit Agricole S.A.’s Medium and long term liquidity raised 2011 MLT issue programme1 (€27bn) was 108% at beginning of October 2011 Crédit Agricole S.A. scope €bn completed 2011 programme 29.1 30 Balanced breakdown by segment
Slide 25: Access to a large customer liquidity base
CRÉDIT AGRICOLE GROUP Access to a large customer liquidity base Access to the largest customer liquidity base in France The strength and density of the Crédit Agricole retail network allow Regional Banks to attract 25% of households bank deposits in France Number of new sight deposit accounts opened
Slide 26: Contents
Contents Crédit Agricole S.A.: a window on Crédit Agricole Group Crédit Agricole Group and Crédit Agricole S.A. 9M results A sound financial structure and internal flexibility Focus on liquidity Deleveraging plan 26 November 2011 SG Premium Conference
Slide 27: Deleveraging plan: MLT and ST debt targets
DELEVERAGING PLAN MLT and ST debt targets ■ A €50bn structural reduction in our debt between June 2011 and December 2012, including a €45bn cut in ST debt (-26%) €bn June 2011 December 2012 Decrease target ST debt* 170 125 - 45 MLT debt 140 135 -5 TOTAL 310 260 - 50 These figures include an increase
Slide 28: Deleveraging plan: ST funding targets
DELEVERAGING PLAN ST funding targets of the Group at end 2012 Reduction of (net) ST funding by 25 % Maintaining of the liquidity buffer at €10-15bn (gap between gross & net) (Re)building of liquidity reserves to a minimum of €20bn: use of free cash flows, growth of corporate inflows Targeted liquidi
Slide 29: Deleveraging plan: MLT funding targets
DELEVERAGING PLAN MLT funding targets of the Group for end 2012 Decrease by €5bn of the LT debt A €12bn MLT market funding programme in 2012 compared to €22bn in 2011 Stabilisation of Crédit Agricole SA’s print on MLT markets (the €5bn decrease equals more or less to SFEF redemptions) 140 €bn +12 13
Slide 30: Target: decreasing our financing needs by €50bn
DELEVERAGING PLAN Target: decreasing our financing needs by €50bn Between 30 June 2011 and 31 December 2012 20 to 22 €bn 4 to 6 5 to 7 ~50 20 to 21 Decrease in financing Decrease in Securitisations & Decrease of loan-to- businesses: CA-CIB, market businesses other disposals: deposit gap in retail CA
Slide 31: Our action plan: Corporate and investment banking
OUR ACTION PLAN Corporate and investment banking Corporate and investment banking: 15% of revenues of Crédit Agricole Group’s business lines Since 2007 and thanks to the 2008-2010 CIB refocusing plan, funding requirements have already been reduced by €35bn The new plan: an additional €15-18bn sustai
Slide 32: Our action plan: Retail banking & Specialised financial services
OUR ACTION PLAN Retail banking & Specialised financial services ■ Specialised financial services: €9-11bn reduction in financing needs (~10% of managed loan book) Disposal of loan portfolios Withdrawal from certain businesses More generally, a reduction in funding needs Simultaneously, increase in a
Slide 33: Adapting to a new environment
Adapting to a new environment Bernard Delpit Chief Financial Officer SG Premium Conference - Paris, 30 November 2011