Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — FY2014 Earnings Presentation
85 slides from Credit Agricole SA's earnings presentation, Feb 18, 2015
Slide 1: Fourth quarter and full year 2014 results
Fourth quarter and full year 2014 results 18 February 2015
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 bas
Slide 3: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 3 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 4: Strength of Crédit Agricole Group confirmed
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Strength of Crédit Agricole Group confirmed 2014 : good results for Crédit Agricole Good resilience in French retail banking Continued growth in the other business lines Expenses under tight control Strong decrease in the cost of risk Further improv
Slide 5: Strength of Crédit Agricole Group confirmed: results and dividend
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Strength of Crédit Agricole Group confirmed Crédit Agricole Crédit Agricole Group S.A. Stated €4.9bn €2.3bn Of which Regional Banks €3.5bn €1.0bn Net income Group share Underlying* €6.0bn €3.3bn Stated 7.5% ROTE Underlying* 10.7% Proposal of a €0.35 dividend
Slide 6: Crédit Agricole S.A. results
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Crédit Agricole S.A. results Change 2014/2013 Increase in revenues +1.1% Decrease in expenses (0.3%) Consolidated Increase of gross operating income +4.5% data Sharp drop of the cost of risk (23.9%) Income before tax +10.4% Stability of the gross operating in
Slide 7: French retail banking: a very good contribution
2014, FIRST YEAR OF THE MEDIUM TERM PLAN French retail banking: a very good contribution On-balance sheet deposits (€bn) Loans outstanding (€bn) Strong growth in deposits, lending resilient in +2.6% Dec/Dec +0.9% Dec/Dec 2014 433 444 487 491 Positive net new inflows in both on- and off-balance 85
Slide 8: European development primarily focused on organic growth
2014, FIRST YEAR OF THE MEDIUM TERM PLAN European development primarily focused on organic growth Continued business expansion Crédit Agricole Group revenues in Europe (excl. France)* in Europe €bn Amundi: 2016 vs. 2013 - Acquisition of an asset management company backed by a retail banking netw
Slide 9: Stronger synergies in revenues
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Stronger synergies in revenues Growth of revenues* generated by Group synergies Performance €m Savings management & Insurance – Strong growth in number of property & casualty insurance policies, up 3.9% to 10 million policies in force 350 – Launch of group
Slide 10: Cost-cutting programmes stepped up
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Cost-cutting programmes stepped up Expenses under control MUST 2014 Crédit Agricole Group expenses: -4.1% vs. 2012 Savings of €178m achieved through MUST in 2014 Crédit Agricole S.A. expenses: -4.5% vs. 2012 – MUST IT systems 2014: -€45m – MUST external
Slide 11: Cost of risk declined faster than forecast in MTP
2014, FIRST YEAR OF THE MEDIUM TERM PLAN Cost of risk declined faster than forecast in MTP Cost of risk still decreasing… … driven by Retail Banking in France Crédit Agricole Group *(bps) Regional Banks (bps) 76 44 49 49 48 40 49 38 37 26 22 25 18 2009 2010 2011 2012 2013 2014 2016 target 2009 2010
Slide 12: A sound financial structure
2014, FIRST YEAR OF THE MEDIUM TERM PLAN A sound financial structure End-2014 data Crédit Agricole Crédit Agricole Group S.A. CET1 fully loaded 13.1% 10.4% Solvency SIFI* buffer 1% 0% Leverage ratio** 5.2% 4.2% LCR >110% >110% Liquidity Surplus of long term funding €101bn * Buffer lowered from 1.5%
Slide 13: Crédit Agricole S.A. consolidated results: 2014 income statement
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS 2014 income statement ∆ 2014/2013 of the €m 2014 2013 ∆ 2014/2013 business lines* Revenues 15,853 15,682 +1.1% (0.1%) Operating expenses (11,097) (11,134) (0.3%) (0.2%) Gross operating income 4,756 4,548 +4.5% +0.0% Cost of risk (2,204) (2,894) (23.9%) (20.7
Slide 14: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 14 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 15: Q4-14: The quarter reflects the Group's ability to adapt
FOURTH QUARTER 2014 - KEY MESSAGES Q4-14: The quarter reflects the Group's ability to adapt Q4-14 results Crédit Agricole Group: +€1,332m, +2.7% YoY in Q4 Net income Group share Crédit Agricole S.A.: +€697m, +13.0% YoY in Q4 Good resilience in French retail banking Continued growth in the other
Slide 16: Crédit Agricole S.A. Q4-14 results
FOURTH QUARTER 2014 - KEY MESSAGES Crédit Agricole S.A. Q4-14 results ∆ Q4/Q4 of €m Q4-14 Q4-13 ∆ Q4/Q4 the business lines* Revenues 3,894 3,971 (2.0%) (0.8%) Operating expenses (2,847) (2,859) (0.4%) (0.5%) Gross operating income 1,047 1,112 (6.2%) (1.2%) Cost of risk (499) (858) (42.0%) (28.9%) Sh
Slide 17: Good resilience in French retail banking
FOURTH QUARTER 2014 - KEY MESSAGES Good resilience in French retail banking – revenues YoY in Q4-14 again adversely affected by specific events Revenues – Regional Banks (€m) Limited decrease of the interest margin in 2014 (2.7%) 3,612 3,554 Margin on sources of funds + 58 3,459 248 248 - Improv
Slide 18: Good resilience in French retail banking: signs of recovery
FOURTH QUARTER 2014 - KEY MESSAGES Good resilience in French retail banking - signs of recovery QoQ in Q4 Change in revenues for An inflexion point in revenues in Q4 Regional Banks at 100% (€m) Revenues from Regional Banks at 100%: up 4.3% QoQ in Q4*, including the usual seasonal effect QoQ 3 61
Slide 19: Growth drivers in areas other than retail banking
FOURTH QUARTER 2014 - KEY MESSAGES Growth drivers in areas other than retail banking Business lines NIGS excluding retail banking (€m) Average Asset management and Insurance: Average +18% quarter Average quarter expanding businesses quarter 2013 2014 739 726 715 715 2012 680 Insurance: Strong bu
Slide 20: Expenses under tight control
FOURTH QUARTER 2014 - KEY MESSAGES Expenses under tight control Expenses stable YoY in Q4 (-0.4%) including Expenses(€m) currency effects of -€14m (CIB, IRB) effects from changes in scope of consolidation of (1.7%) -€8m (Amundi, SFS) 2 859 2 833 2847 Investment plans (LCL, CAA) 2785 26 26 14 14
Slide 21: Active risk management
FOURTH QUARTER 2014 - KEY MESSAGES Active risk management Greece Ukraine - Exposure to Greece excluding shipping: ~€200m at - Total exposure: ~€1bn at 31/12/2014, of which ~4% 31/12/2014 located in conflict areas - Crédit Agricole Ukraine ~ €900m (net outstandings at 31/12/2014) mainly to corporat
Slide 22: Further improvement in balance sheet structure
FOURTH QUARTER 2014 - KEY MESSAGES Further improvement in balance sheet structure, adapted to future regulatory requirements Continued increase of CET 1 ratio A favourable phased-in global solvency ratio in (fully loaded) view of MREL and TLAC Crédit Agricole Group: Crédit Agricole S.A.: Global
Slide 23: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 23 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 24: French retail banking – Regional Banks
CRÉDIT AGRICOLE S.A. BUSINESS LINES French retail banking – Regional Banks Business performance Customer business (€bn) On-balance sheet deposits: up 2.3% YoY with a favourable change in product mix Customer assets Loans outstanding - Strong growth in demand deposit accounts confirmed (+3.9% YoY i
Slide 25: French retail banking – LCL
CRÉDIT AGRICOLE S.A. BUSINESS LINES BUSINESS LINES French retail banking - LCL Business performance Customer business (€bn) Growth in on-balance sheet deposits: up 3.3% YoY driven by sight deposit accounts (up 6.8%) Customers assets Loans Off-balance sheet deposits: up 1.6% YoY, primarily due to l
Slide 26: International retail banking – Cariparma
CRÉDIT AGRICOLE S.A. BUSINESS LINES International retail banking - Cariparma Strong business performance Activity indicators (€bn) €3.8bn (+19.7%) increase in life insurance and mutual funds outstandings YoY, including a €0.7bn rise in Q4-14 Customer assets Loans On-balance sheet customer deposits
Slide 27: International retail banking – excl. Cariparma
CRÉDIT AGRICOLE S.A. BUSINESS LINES International retail banking – excl. Cariparma Activity indicators (€bn) Business performance: €1.2bn surplus of on-balance sheet deposits at end- Customer assets Loans December 2014 12.5 12.1 12.4 11.7 11.9 1.6 1.2 10.2 10.0 9.8 10.1 10.0 1.4 1.2 1.2 Net inco
Slide 28: Savings management & Insurance
CRÉDIT AGRICOLE S.A. BUSINESS LINES Savings management & Insurance Aggregate assets under management: + €112bn over Assets under management (€bn) the year, with positive net new inflows of over ~€35bn for Amundi and of ~€8bn for savings/retirement +66.8 1,256 1,144 +35.4 +7.7 +1.9 1,097 141 Amundi
Slide 29: Asset management – Amundi
CRÉDIT AGRICOLE S.A. BUSINESS LINES Asset management - Amundi €866bn in assets under management, up 11.4% YoY Assets under management (€bn) €35.4bn of inflows over the year, of which €13.1bn in Q4 Inflows driven by international activities: €23.4bn in 2014 +11.4% including €8.9bn in Q4 with a
Slide 30: Insurance
CRÉDIT AGRICOLE S.A. BUSINESS LINES Insurance Premium income at all-time high of €30.3bn Change in revenues(€m) Crédit Agricole Assurances No. 1 in France* (French GAAP) Savings/retirement: up 27.0% YoY in Q4 Net new inflows* - Excellent performance both in France and internationally, particularly
Slide 31: Specialised financial services
CRÉDIT AGRICOLE S.A. BUSINESS LINES Specialised financial services Consumer finance: recovery in managed loan book CACF consumer finance managed loan book* - gross (€bn) Total production up 9.8% QoQ in Q4, driven primarily by production managed for the Crédit Agricole Group banks 69.9 69.1 69.0 68
Slide 32: Corporate and Investment Banking – Revenues
CRÉDIT AGRICOLE S.A. BUSINESS LINES Corporate and Investment Banking - Revenues Revenues higher in CIB: up 3.0%* YoY in Q4 Revenues from Corporate and Investment Banking* (€m) Capital markets and investment banking: up 10.6%* +3.0% 1,119 YoY in Q4 953 984 949 980 26 31 29 523 Fixed Income (up 16.9
Slide 33: Corporate and Investment Banking – Results
CRÉDIT AGRICOLE S.A. BUSINESS LINES Corporate and Investment Banking - Results Operating expenses: costs under control (up CIB expenses (€m) 1.4% YoY in Q4 at constant exchange rates) +1.4% Cost/income ratio* at 56.9% compared with 59.7% in 2013 At constant 2014 exchange rate, expenses decreased s
Slide 34: Corporate Centre: Income statement
CORPORATE CENTRE Income statement Revenues: -€555m in Q4-14, -€2,038m in 2014 €m Q4-14 ∆ Q4/Q4 2014 ∆ 2014/2013 Revenues excluding issuer spreads: -€497m, compared with -€429m in Q4-13 excluding issuer Revenues (555) +32.0% (2,038) (6.3%) spreads and gains on the disposal of Bankinter o/w cost of
Slide 35: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 35 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 36: Crédit Agricole Group: Contribution of business lines
CRÉDIT AGRICOLE GROUP Contribution of business lines Contribution to revenues Contribution to NIGS (*) €32.2bn in 2014 €7.2bn in 2014 Retail banking 15% 12% Insurance 8% 4% 7% 9% Savings management, private banking 60% 64% & CACEIS 14% 7% Specialised financial services Corporate and investment banki
Slide 37: Contribution of Regional Banks (100%) to Group net income
CRÉDIT AGRICOLE GROUP Contribution of Regional Banks (100%) to Group net income (French retail banking*) €m Q4-14 ∆ Q4/Q4 2014 ∆ 2014/2013 Revenues 3,430 (3.5%)** 14,243 (3.4%)** Operating expenses (2,027) (3.3%) (7,987) (0.5%) Gross operating income 1,403 (18.1%) 6,256 (8.7%) Cost of risk (114) (12
Slide 38: Income statement Q4-14 and full year 2014
CRÉDIT AGRICOLE GROUP Income statement Q4-14 and Full year 2014 ∆ €m Q4-14 ∆ Q4/Q4 2014 2014/2013 Revenues 7,347 (5.3%) 30,243 (0.6%) Operating expenses (4,903) (1.3%) (19,178) (0.1%) Gross operating income 2,444 (12.5%) 11,065 (1.4%) Cost of risk (612) (38.0%) (2,943) (25.0%) Share of net income of
Slide 39: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 39 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 40: Crédit Agricole S.A. Solvency ratios
CRÉDIT AGRICOLE S.A. Solvency ratios Active capital management policy Solvency ratios* (Basel 3) AT1: total €4.1bn* issued since 01/01/2014 Optimisation of capital structure within the Group 19.6% 19.2% - Inaugural issue of €750m in subordinated debt in Q4-14 by Crédit Agricole Assurances to antic
Slide 41: Crédit Agricole Group Solvency ratios
CRÉDIT AGRICOLE GROUP Solvency ratios Fully-loaded CET1 ratio: 13.1% at 31/12/14, up Solvency ratios* - Basel 3 20bps in Q4-14, up 180bps over the full year 18.1% 18.4% Increase in CET1 capital: +€1.6bn in Q4-14 15.2% - Impact of retained earnings and mutual share issues: 14.5% 14.8% +€1.4bn 12.9%
Slide 42: TLAC & MREL ratios: steered to protect senior creditors
CRÉDIT AGRICOLE GROUP TLAC & MREL ratios: steered to protect senior creditors TLAC MREL Target ratio >19.5% by end-2016, excluding senior debt Target ratio > 8.0% by end-2016, excluding senior (subject to change in RWA calculation methodology) debt According to the current draft text, the pote
Slide 43: Liquidity: surplus of long term funding sources up
CRÉDIT AGRICOLE GROUP Liquidity: surplus of long term funding sources up Surplus of long term funding sources up sharply: +€30bn YoY at end-2014 Ratio of stable liabilities to LT assets: 112.5% vs. 108.9% at end-December 2013vs. 714 ASSETS LIABILITIES 1,039 1,029 1,029 1,039 Central bank deposit
Slide 44: Liquidity: diversified market funding
CRÉDIT AGRICOLE GROUP Liquidity: diversified market funding Crédit Agricole S.A. / market: 2014 MLT** senior market issues – Crédit Agricole S.A. In 2014 Breakdown by segment***: €12.1bn - 31/12/2014 - €12.1bn of senior debt* issued in the market Average term: 6.3 years - €3.9bn equivalent in Ad
Slide 45: Liquidity reserves
CRÉDIT AGRICOLE GROUP Liquidity reserves Liquidity reserves at end-December 2014 (€bn) 246 Assets eligible to Central Banks after ECB haircut 203 (immediate access) Self-securitisations eligible to Central Banks Other non HQLA securities* Securities portfolio 121 (before haircut) Haircut HQLA securi
Slide 46: Contents
CONTENTS 1 2014, first year of the Medium Term Plan p. 3 2 Q4 2014 - Key messages p. 14 3 Business line results p. 23 4 Consolidated results of Crédit Agricole Group and the Regional Banks p. 35 5 Solvency and liquidity p. 39 6 Appendices p. 46 46 FOURTH QUARTER AND FULL YEAR 2014 RESULTS
Slide 47: Contents of appendix
CONTENTS OF APPENDIX Crédit Agricole S.A. consolidated results Trends in risk Consolidated income statement by business line – quarterly and 48 Cost of risk / outstanding 71 2014 Change in credit risk outstanding 73 Specific items - quarter 50 Breakdown of risks by geographic region & by business se
Slide 48: Consolidated income statement by business line of Q4-14
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS Consolidated income statement by business line of Q4-14 French retail Savings Corporate and French retail International Specialised Corporate banking - management and investment Group €m banking - LCL retail banking financial services centre Regional Banks I
Slide 49: Consolidated income statement 2014
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS Consolidated income statement 2014 French retail Savings Corporate and French retail International Specialised Corporate banking - management and investment Group €m banking - LCL retail banking financial services centre Regional Banks Insurance banking 2013
Slide 50: Specific items of 2013 and 2014
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS Specific items of 2013 and 2014 Q4-13 2013 €m Impact on Impact on Impact on NIGS Impact on NIGS revenues revenues DVA running and CVA/DVA Day one (CIB) (148) (94) (234) (145) Loan hedges (CIB) (36) (22) (21) (12) Issuer spreads (Corporate centre) (46) (30) (
Slide 51: Breakdown of share capital and data per share (1/2)
CRÉDIT AGRICOLE S.A.CONSOLIDATED RESULTS Breakdown of share capital and data per share (1/2) Breakdown of share capital December 13 December 14 SAS Rue La Boétie 1,405,263,364 1,454,590,012 Treasury shares* 6,022,703 4,855,393 Employees (company investment fund, ESOP) 107,424,604 104,035,134 Float 9
Slide 52: Data per share (2/2)
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS Data per share (2/2) Net asset value per share December 2013 December 2014 ∆ 2014/2013 Net asset value per share December 2013 December 2014 Number of shares (end period) 2,501,589,997 2,576,365,774 Shareholders’ equity Group share (€m) 42,288 50,063 - AT1 (
Slide 53: Regional Banks: Customer assets and loans outstanding
FRENCH RETAIL BANKING - REGIONAL BANKS Customer assets and loans outstanding Custom er assets* (€bn) March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 ∆ Dec/Dec ∆ Dec/Sept Securities 44.2 43.6 44.2 44.5 45.4 45.3 44.8 44.4 (0.0%) (0.8%) Mutual funds and REITs 35.9 35.2 34.9 34.2 33
Slide 54: Regional Banks: Income statement data
FRENCH RETAIL BANKING - REGIONAL BANKS Income statement data Regional Banks’ contribution to Crédit Agricole S.A. results (€m) Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 ∆ Q4/Q4* ∆ 2014/2013* Net income accounted for under equity method 214 235 232 225 229 232 216 201 +9,8% (0,6%) Change in sha
Slide 55: LCL: Customer assets and loans outstanding
FRENCH RETAIL BANKING - LCL Customer assets and loans outstanding Custom er assets (€bn) March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 ∆ Dec. / Dec. ∆ Dec. / Sept. Securities 8.6 8.6 9.0 9.0 9.3 9.2 8.9 8.8 (1.2%) (1.3%) Mutual funds and REITs 16.3 15.1 15.0 15.4 15.2 14.5 14.4
Slide 56: LCL: Revenues
FRENCH RETAIL BANKING - LCL Revenues * * €m Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 ∆ Q4/Q4* ∆ 2014/2013* Interest m argin 596 578 576 562 587 554 529 520 +2.0% (2.9%) Fee and com m ission Incom e 379 382 365 373 369 381 370 367 +0.1% +0.6% - Securities 43 43 43 50 43 45 40 43 (13.3%) (4.1%)
Slide 57: International retail banking: Activity indicators and revenues
INTERNATIONAL RETAIL BANKING Activity indicators and revenues International retail banking - Cariparma ∆ Cariparma (€m) March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14** Dec. 14 Dec./Dec. 7% o/w customer loans* 14,031 14,106 14,198 14,404 14,482 14,689 14,817 15,027 +4.3% Individuals o/w
Slide 58: Activity indicators – Change in assets under management
SAVINGS MANAGEMENT AND INSURANCE Activity indicators – Change in assets under management Total assets under management m€ Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 ∆ Dec/Dec ∆ Dec/Sep Asset management – Amundi* 739.6 758.5 746.1 759.0 777.1 796.5 821.4 843.9 866.0 +11.4% +2.6% S
Slide 59: Activity indicators – Savings/retirement
SAVINGS MANAGEMENT AND INSURANCE Activity indicators – Savings/retirement Assets under management in savings/retirement €bn Dec. 12 March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 ∆ Dec / Dec ∆ Dec / Sept Unit-linked 41.6 42.0 40.9 42.3 43.2 44.2 45.5 46.3 46.5 +7.6% +0.4% In Eur
Slide 60: Specialised financial services: Activity indicators
SPECIALISED FINANCIAL SERVICES Activity indicators CACF (€bn) €m Dec.12 March 13 June 13 Sept. 13 Dec. 13 March 14 June 14* Sept. 14 Dec. 14** ∆ Dec/Dec ∆ Dec/Sept *** *** Consolidated loan book 39,8 39,1 38,6 38,1 35,2 34,9 34,4 34,1 33,2 (2,1%) (0,3%) Car finance partnership 16,5 17,1 17,1 17,3 17
Slide 61: Corporate and Investment Banking: Analysis of Q4-14 results
CORPORATE AND INVESTMENT BANKING Analysis of Q4-14 results Impact of o/w Capital o/w Q4-14 Impact of loan Impact of DVA change in the Q4-14 o/w Financing markets and €m Discontinuing reported hedges running CVA/DVAFVA restated activities investment activities methodology banking Revenues 962 (6) 7 (
Slide 62: Corporate and Investment Banking: Analysis of 2014 results
CORPORATE AND INVESTMENT BANKING Analysis of 2014 results Impact of FVA o/w Capital Day one and o/w 2014 Impact of loan Impact of DVA o/w Financing markets and €m change in the 2014 restated Discontinuing reported hedges running activities investment CVA/DVA/FVA activities banking methodology Revenu
Slide 63: Corporate and Investment Banking: Discontinuing activities
CORPORATE AND INVESTMENT BANKING Discontinuing activities Change in revenues* (€m) Contribution to Crédit Agricole S.A. results* (€m) €m Q4-14 ∆ Q4/Q4 2014 ∆ 2014/2013 Revenues 0 (98.4%) 8 (94.0%) 31 Operating expenses (28) +44.0% (118) +32.0% 26 29 Gross operating income (28) +15.8% (110) x3.3 0 Co
Slide 64: Corporate and Investment Banking: Rankings
CORPORATE AND INVESTMENT BANKING Rankings CACIB holds strong commercial positions with recognised, award-winning franchises in its areas of expertise Financing activities CACIB retained its position as No. 1 arranger worldwide in aircraft finance1 CACIB retained its position as leader in syndicati
Slide 65: Corporate and Investment Banking: Significant deals
CORPORATE AND INVESTMENT BANKING Significant deals Capital markets and investment banking NOVEMBER 2014 NOVEMBER 2014 OCTOBER 2014 CREDIT AGRICOLE EUROPEAN INVESTMENT EUR 13 100 000 000 ASSURANCES/ RAMSAY BANK High Yield Bond and TLB SANTE , , EUREUR 1.6000 1 600 E.VE.V. , bn000 , USD 1,000,000,00
Slide 66: Sensitive exposures according to FSB recommendations
CORPORATE AND INVESTMENT BANKING Sensitive exposures according to FSB recommendations Exposure to mortgage ABS USA United Kingdom Spain RMBS 30/06/14 31/12/14 30/06/14 31/12/14 30/06/14 31/12/14 Recognised under loans and receivable Gross exposure 27 0 55 25 45 0 Discount (20) 0 (3) (2) (5) (0) Ne
Slide 67: Sensitive exposures according to FSB recommendations
CORPORATE AND INVESTMENT BANKING Sensitive exposures according to FSB recommendations Unhedged super senior CDOs with US residential mortgage underlyings Breakdown by super senior CDO tranche Total assets at Total assets in loans €m fair value and receivables Nominal 1,242 662 Discount 1,226 640 C
Slide 68: Sensitive exposures according to FSB recommendations
CORPORATE AND INVESTMENT BANKING Sensitive exposures according to FSB recommendations Super senior CDOs with US residential mortgages underlyings Methodology at 31/12/14: Super senior CDOs measured at fair value Discounts are calculated by applying a credit scenario on the underlying assets (mai
Slide 69: Sensitive exposures according to FSB recommendations
CORPORATE AND INVESTMENT BANKING Sensitive exposures according to FSB recommendations Other exposure Unhedged CLOs €m Gross Discount Net CLOs measured at fair value 123 0 123 CLOs in loans and receivables 206 1 205 Unhedged mezzanine CDOs €m Gross Discount Net Unhedged mezzanine CDOs measured at f
Slide 70: Sensitive exposures according to FSB recommendations
CORPORATE AND INVESTMENT BANKING Sensitive exposures according to FSB recommendations Protections purchased to hedge exposure to CDOs and other assets at 31/12/14 From monolines Monolines to hedge Total protections €m US Mortgage Corporate CDOs CLOs Other underlyings acquired from Residual exposur
Slide 71: Decrease of cost of risk (1/2)
CRÉDIT AGRICOLE S.A. Q4-14 RESULTS Decrease of cost of risk (1/2) Crédit Agricole Group Cost of risk / outstandings (in bps, annualised) Cost of risk to outstandings: 30bps in Q4-14, Crédit Agricole Group* (bps) -11bps YoY -4bps QoQ in Q4 49 49 48 50 45 Crédit Agricole S.A. 44 37 37 34 30 Cost o
Slide 72: Decrease of cost of risk (2/2)
CRÉDIT AGRICOLE S.A. Q4-14 RESULTS Decrease of cost of risk(2/2) Cost of risk / outstandings (in bps, annualised) Regional banks (bps) LCL (bps) 38 44 31 33 36 26 32 31 30 25 22 22 23 18 19 17 13 12 10 7 2010 2011 2012 2013 2014 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 2010 2011 2012 2013 2014 Q4-13 Q1-14 Q2-1
Slide 73: Change in credit risk outstanding
TRENDS IN RISK Change in credit risk outstanding Crédit Agricole S.A. €m Dec. 12* Dec.13 Dec. 14 Gross customer and interbank loans outstanding 422,634 390,625 413,094 of which: impaired loans 15,421 15,201 14,982 Loans loss reserves (incl. collective reserves) 11,691 10,898 10,770 Impaired loans ra
Slide 74: Crédit Agricole S.A.: Breakdown of risks
TRENDS IN RISK Crédit Agricole S.A.: Breakdown of risks By business sector Dec. 14 Dec. 13 By geographic region Dec. 14 Dec. 13 Retail banking 28.4% 28.8% France (excl. retail banking) 32.0% 34.5% Non-merchant service / Public sector / Local authorities 15.1% 17.9% Banks 7.4% 7.5% France (retail ban
Slide 75: Crédit Agricole S.A.: Market risk exposure
TRENDS IN RISK Crédit Agricole S.A.: Market risk exposure Crédit Agricole S.A.’s VaR (99% - 1 day) is computed by taking into account the impacts of diversification between the Group’s various entities VaR (99% - 1 day) at 31 December 2014: €9m for Crédit Agricole S.A. Change in the risk exposur
Slide 76: Update of sovereign risk exposures – Crédit Agricole Group
TRENDS IN RISK Update of sovereign risk exposures in accordance with the previous EBA stress tests - Crédit Agricole Group Exposure of the banking Group on a consolidated basis at 31 December 2014 Net exposure* Net exposure* €m 31/12/14 31/12/13 o/w o/w o/w o/w Total Total Banking book Trading boo
Slide 77: Exposure of insurance companies to European peripheral sovereign debt
TRENDS IN RISK Exposure of Crédit Agricole Group insurance companies to European peripheral sovereign debt Gross exposure corresponds to the IFRS book value. Exposure before sharing mechanism between policyholders and the company Gross Gross exposure exposure €m 31/12/14 31/12/13 Ireland 632 576 P
Slide 78: Full Basel 3 risk weighted assets by business line
TRENDS IN RISK Crédit Agricole S.A.: Full Basel 3 risk weighted assets by business line Risk weighted assets Full Basel 3 €bn September 14 December 14 include, for each business line: Credit, market and operational risks French retail banking 43.5 45.0 - Regional Banks* 7.0 7.7 Weighting at 250% o
Slide 79: Regulatory allocated capital by business line
TRENDS IN RISK Crédit Agricole S.A.: regulatory allocated capital by business line Regulatory requirement for €bn September 2014 December 2014 Crédit Agricole S.A. French retail banking 3.9 4.1 - Regional Banks 0.6 0.7 9% of RWAs for each business line - LCL 3.3 3.4 - Including DTA timing differen
Slide 80: Financial structure: Crédit Agricole Group
FINANCIAL STRUCTURE Crédit Agricole Group Basel 3 CET1 ratio – fully-loaded 31/12/2014 (€bn) Shareholders’ equity Group share 80.41 + Limited recognition of non-controlling interest2 1.0 - Goodwill and intangibles (15.9) - Financial stakes either >10% or equity-accounted2 (4.3) - DTA carry-forward (
Slide 81: Financial structure: Crédit Agricole S.A.
FINANCIAL STRUCTURE Crédit Agricole S.A. Basel 3 CET1 ratio – fully-loaded 31/12/2014 (€bn) Shareholders’ equity Group share 44.6 + Limited recognition of non-controlling interest2 1.7 - Goodwill and intangibles (15.1) - Financial stakes either >10% or equity-accounted 2 (3.1) - DTA carry-forward (0
Slide 82: Liquidity: construction of the cash balance sheet
LIQUIDITY Crédit Agricole Group: construction of the cash balance sheet After netting, the cash balance sheet amounts to €1,029bn at end-December 2014 Assets: Liabilities: €1,763bn €1,763bn Other netted balance sheet items (1) 67 67 o/w 7 Reverse repos 123 116 Repos o/w 43 Derivative instruments -
Slide 83: Crédit Agricole S.A.: Equity and Subordinated debt
FINANCIAL STRUCTURE Crédit Agricole S.A.: Equity and Subordinated debt Non-controlling €m Group share Total Subordinated debt interests At 31 December 2013 42,288 5,595 47,883 28,353 Capital increase 744 - 744 Dividends paid out in 2014 (879) (310) (1,189) Dividends received from Regional Banks and
Slide 84: Consolidated balance sheet: Crédit Agricole S.A.
CONSOLIDATED BALANCE SHEET AT 31/12/14 AND 31/12/13 Crédit Agricole S.A. €bn €bn Assets 31/12/14 31/12/13 Liabilities 31/12/14 31/12/13 Cash and Central banks 55.0 68.2 Central banks 4.4 2.9 Financial assets at fair value through profit Financial liabilities at fair value through 436.0 391.6 348.9 3
Slide 85: Consolidated balance sheet: Crédit Agricole Group
CONSOLIDATED BALANCE SHEET AT 31/12/14 AND 31/12/13 Crédit Agricole Group €bn €bn Assets 31/12/14 31/12/13 Liabilities 31/12/14 31/12/13 Cash and Central banks 57.9 71.6 Central banks 4.5 3.0 Financial assets at fair value through profit Financial liabilities at fair value through 436.6 390.9 351.9