Credit Agricole Sa · EURONEXT:ACA
Credit Agricole Sa — FY2003 Earnings Presentation
96 slides from Credit Agricole Sa's earnings presentation, March 2004
Slide 1: 2003 Annual Results
2003 Annual Results KE CREDIT AGRICOLE S.A.
Slide 2: Agenda
2 ü Crédit Agricole S.A. pro forma consolidated results ü Update on Crédit Agricole–Crédit Lyonnais integration ü Presentation of business lines results Ø French retail banking – Regional Banks Ø French retail banking – Crédit Lyonnais Ø Specialised financial services Ø Asset management, insurance a
Slide 3: Pro forma consolidated results: An outstanding year
3 Crédit Agricole S.A. pro forma consolidated results 2003 An outstanding year
Slide 4: 2003 annual pro forma consolidated results
4 Crédit Agricole S.A. pro forma consolidated results 2003 annual pro forma consolidated results Net income group share, before goodwill and integration-related costs: € 2,401 m (+28.5%) § Net income group share, before integration-related costs: € 1,501 m (+20.5%) § Net income group share: € 1,140
Slide 5: Q4-2003 pro forma consolidated results
5 Crédit Agricole S.A. pro forma consolidated results Q4-2003 pro forma consolidated results Very strong operating performance § Net banking income: € 3,431 m (+14.1%) § Gross operating income: € 1,135 m (+49.0%) § Pre-tax income: € 1,080 m (+45.7%) § Integration-related costs : € 513 m (€ 361 m aft
Slide 6: Pro forma consolidated income statement
6 Crédit Agricole S.A. pro forma consolidated results Pro forma consolidated income statement €m 2002 2003 % change % change 2003 2003/2002 2003/2002 Excl. Finaref Excl. Finaref Net banking income 11,659 12,721 +9.1% 12,135 +4.1% Operating expenses (8,700) (8,889) +2.2% (8,590) (1.3%) Gross operatin
Slide 7: Excellent performance from all business lines
7 Crédit Agricole S.A. pro forma consolidated results Excellent performance from all business lines Contribution of business lines to net income before goodwill and integration-related costs €m 2,754 ü Good commercial dynamics in both +34.8% French retail banking - retail networks Regional Banks 589
Slide 8: High profitability from all business lines
8 Crédit Agricole S.A. pro forma consolidated results High profitability from all business lines 2003 € bn Allocated capital % ROE French retail banking – Regional 3.0 13.3% 17.9% Banks French retail banking – Crédit 2.1 9.4% 23.5% Lyonnais Specialised financial services 1.7 7.6% 21.1% Asset managem
Slide 9: Agenda
9 ü Crédit Agricole S.A. pro forma consolidated results ü Update on Crédit Agricole–Crédit Lyonnais integration ü Presentation of business lines results Ø French retail banking – Regional Banks Ø French retail banking – Crédit Lyonnais Ø Specialised financial services Ø Asset management, insurance a
Slide 10: Managerial structure fully operational within 6 months
10 Update on Crédit Agricole–Crédit Lyonnais integration Managerial structure fully operational within 6 months ü Appointment of a 16-member Executive Committee ü General organisation structure by business segment and central support functions ü All senior management appointments made ü 250 work gro
Slide 11: Mergers and integration between units
11 Update on Crédit Agricole–Crédit Lyonnais integration Mergers and integration between units ü Consumer credit ü Life insurance (Sofinco/Finalion) (Predica/UAF) ü Corporate & investment ü International private banking banking (CAI Suisse/CL Suisse) (CAI/BFI) (CL SAM/CFM – Monaco) ü Quantitative ma
Slide 12: Implementation now underway
12 Update on Crédit Agricole–Crédit Lyonnais integration Implementation now underway 10 March Nov. Dec. January February March April May June July Detailed organisation and synergies 250 work groups Operational Implementation 350 concrete projects Works council consultations Legal mergers Consumer C
Slide 13: Human resources: a full agenda
13 Update on Crédit Agricole–Crédit Lyonnais integration Human resources: a full agenda ü 40 companies in France impacted by integration 16,000 employees in France and almost 25,000 worldwide ü Discussions with employee representative bodies ð Joint Consultation Committee set up in September 2003 ð
Slide 14: Information systems: all major choices made
14 Update on Crédit Agricole–Crédit Lyonnais integration Information systems: all major choices made ü Each business segment has chosen the systems most suited to its business requirements, taking account of: • Hardware and software costs, • Maintenance and development costs ü All choices have been
Slide 15: Most relocations to be completed by early 2005
15 Update on Crédit Agricole–Crédit Lyonnais integration Most relocations to be completed by early 2005 Implementation of a policy to group employees together by business segment: ü Consistent: • A key factor in successful integration • For management: essential for management and coordination • For
Slide 16: A specific system for monitoring synergies
16 Update on Crédit Agricole–Crédit Lyonnais integration A specific system for monitoring synergies ü Some 350 projects identified • All targeted synergies are covered by the system • It also covers all cross-functional projects required for integration, but which are not directly synergy-generating
Slide 17: Integration-related costs
17 Update on Crédit Agricole–Crédit Lyonnais integration Integration-related costs ü All provisions for integration-related costs booked in 2003 ü 2003 results will include: § costs involved in implementing synergies (external mobility, property costs, information systems costs, etc.) § other integr
Slide 18: Integration-related costs
18 Update on Crédit Agricole–Crédit Lyonnais integration Integration-related costs ü integration-related costs charged to income € 513 m § Synergy-related costs (A) € 374 m § Other costs € 139 m ü Synergy-related costs borne by Crédit Lyonnais (B) € 532 m ü Total synergy-related costs incurred at en
Slide 19: Full synergies achieved in 2006, revised timing
19 Update on Crédit Agricole–Crédit Lyonnais integration Full synergies achieved in 2006, revised timing Forecast timing of synergies (in millions of euros) 2003 2004 2005 2006 Estimated in December 2002 215 574 738 760 Revised in March 2004 40 275 620 760 ü In December 2002, a top-down approach ide
Slide 20: Detailed synergies by business segment
20 Update on Crédit Agricole–Crédit Lyonnais integration Detailed synergies by business segment (in millions of euros) 2003 2004 forecast 2006 target Specialised financial services 1 4 43 Asset management, insurance and 4 14 122 private banking CAI/BFI 30 241 529 Central support functions 5 13 57 Re
Slide 21: Agenda
21 ü Crédit Agricole S.A. pro forma consolidated results ü Update on Crédit Agricole–Crédit Lyonnais integration ü Presentation of business lines results Ø French retail banking – Regional Banks Ø French retail banking – Crédit Lyonnais Ø Specialised financial services Ø Asset management, insurance
Slide 22: Continued buoyant growth at Regional Banks
22 French retail banking – Regional Banks Continued buoyant growth at Regional Banks 2003 Pre-tax income: € 630 m 2002 ü Strong growth in business and net 2003 banking income ü Further reduction in cost/income ratio through continued control over operating expenses Allocated capital: € 3.0 bn 2002 ü
Slide 23: Growth in customer assets
23 French retail banking – Regional Banks Growth in customer assets ü New inflows of € 23 bn, a 7% rise compared with 3.2% in 2002, driven by: • sustained growth in savings (passbook accounts up 13.8%, sight deposits up 5.3%, home purchase savings schemes up 5.8%) • strong growth in life insurance (
Slide 24: Strong growth in loans outstanding and new lending
24 French retail banking – Regional Banks Strong growth in loans outstanding and new lending ü New medium and long-term lending extremely buoyant: • € 42.1 bn (up 17.2% vs 2002) • including € 23.8 bn in the second half (up 30% vs H1-2003) ü Loan book up 7.1% (+ € 14.8 bn). Excellent performance in l
Slide 25: Increase in fee income and products per customer
25 French retail banking – Regional Banks Increase in fee income and products per customer ü Fee income from customers up 7.4% to € 3.7 bn, accounting for 36.5% of net banking income from customer accounts ü Further growth in the number of products per current account holder, reflecting a strong com
Slide 26: Continued tight control over costs and risks
26 French retail banking – Regional Banks Continued tight control over costs and risks ü Cost/income ratio down 3 percentage points to 59.7% in 2003, with growth in operating expenses contained to just 1.8% in 2003 ü Risk-related costs up slightly to 31bp in 2003, with provisioning against bad and d
Slide 27: Continued growth in income and strong contribution
27 French retail banking – Regional Banks Continued growth in income and a strong contribution from the Regional Banks ü Gross operating income up 15.0%, driven by growth in net banking income (up 7.0%, or 3.3% excluding return on investment of excess equity) and control over operating expenses (up
Slide 28: French retail banking division – Regional Banks
28 French retail banking – Regional Banks French retail banking division – Regional Banks €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income Operating expenses Gross operating income Risk-related costs Income from equity affiliates 464 630 +35.8% 174 +10.8% Pre-tax income
Slide 29: Strong business growth in 2003
29 French retail banking – Crédit Lyonnais Strong business growth in 2003 2003 Pre-tax income: € 746 m 2002 ü Sustained growth in net banking income from individual, professional and small business markets (+4.5% vs 2002) 2003 ü Sharp increase in lending to individual, professional and small busines
Slide 30: Strong growth in loans outstanding
30 French retail banking – Crédit Lyonnais Strong growth in loans outstanding ü Loans to individual, professional and small business customers up 12.0% vs 2002: • strong commercial drive in mortgage lending (up 14.6%) • sustained growth in consumer credit (up 9.4%) ü Loans to SMEs down 5.3%, with a
Slide 31: Increase in deposit-taking and life insurance
31 French retail banking – Crédit Lyonnais Increase in deposit-taking and life insurance driven by the Individuals/Professionals/Small Business market ü Strong growth in savings and sight deposits (up 5.4% in Individual/Professional/Small Business markets) ü Continued good performance in life insura
Slide 32: NBI up 3.6%, driven by a strong second half
32 French retail banking – Crédit Lyonnais NBI up 3.6%, driven by a strong second half ü In the Individual/Professional/Small Business markets: • net interest income up 3.5%, driven by volume growth in customer deposits and loans • fee income up 4.6%, chiefly due to commitment and set-up fees (up 12
Slide 33: Operating expenses and risk-related costs
33 French retail banking – Crédit Lyonnais Operating expenses and risk-related costs ü Continued tight control over operating expenses (up 1.4% excluding employee profit-sharing and incentive schemes). Q4-2003 cost/income ratio down 3.4 percentage points compared with Q4- 2002. ü Risk-related costs
Slide 34: French retail banking division – Crédit Lyonnais
34 French retail banking – Crédit Lyonnais French retail banking division – Crédit Lyonnais €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 3,198 3,312 +3.6% 893 +8.0% Operating expenses (2,354) (2,409) +2.3% (620) +3.0% Gross operating income 844 903 +7.0% 273 +21.3% R
Slide 35: A high-growth business
35 Specialised financial services A high-growth business Consumer credit 2003 Pre-tax income: €592m ü Strong growth in business driven by: 2002 2003 § Demand from consumers and also through partnerships § Integration of Finaref ü Excellent performance of foreign subsidiaries Allocated capital: €1.7b
Slide 36: Consumer credit in France and abroad
36 Specialised financial services Consumer credit in France and abroad ü Loans outstanding up 44% or € 8.6 bn, driven by: • Sofinco/Crédit Lyonnais partnership (+ € 1.9 bn) • Integration of Finaref in early 2003 (+ € 4.6 bn) • 10.5% organic growth (+ € 2bn) due to strong demand for credit ü Rapid ex
Slide 37: Leasing and factoring: robust performance in a poor market
37 Specialised financial services Leasing and factoring: robust performance in a poor market ü Leasing: origination up 4.9% to € 3.8 bn and total leasing book up slightly (0.3%) ü Factoring: revenues down 0.9%: • Depressed by difficult economic conditions in France, • Partially offset by strong grow
Slide 38: Specialised Financial Services
38 Specialised financial services Specialised Financial Services €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 2003/2002 Q4-03/Q4-02 Excl. Finaref Excl. Finaref Net banking income 1,447 2,208 +52.6% +10.6% 606 +62.0% +17.6% Operating expenses +37.5% +42.6% +7.4% (919) (1,264) +7.4% (345
Slide 39: Significant growth in contribution
39 Asset management, insurance and private banking Significant growth in contribution 2003 Pre-tax income: € 1,300 m 2002 ü Strong growth in assets under management, up 10.6% vs 2002 to nearly € 380 bn 2003 ü Excellent performance in insurance activities, with a sharp rise in premium Allocated capit
Slide 40: Exceptionally strong inflows in all segments
40 Asset management, insurance and private banking Exceptionally strong inflows in all segments ü Assets under management up 10.6% (+ € 36.4 bn) to € 380 bn (excl. double counting) § Excellent performance driven by strong commercial drive in the networks and a recovery in the equity markets Assets u
Slide 41: Asset management
41 Asset management, insurance and private banking Asset management ü Assets under management up 12.6% (+ € 32.0 bn), resulting from: • Brisk new business, with new inflows totalling €18.0bn, driven in particular by bonds (up 14.7%) in the institutional segment and by structured products • A recover
Slide 42: Private banking
42 Asset management, insurance and private banking Private banking ü Assets under management up € 4.7 bn, due to: • Integration of Intesa BCI Suisse (€1.9bn), which merged with CAI Suisse in September 2003 • Net inflows of € 1.4 bn • A recovery in the equity markets offsetting an unfavourable foreig
Slide 43: Life insurance
43 Asset management, insurance and private banking Life insurance ü Premium income up 10.6% to over € 15 bn ü In-force business up 9.1%, driven by: • conventional insurance (up 9.8%) • recovery in unit-linked business (up 4.4% compared with an increase of 0.5% in 2002) Assets under management Breakd
Slide 44: Property & casualty insurance
44 Asset management, insurance and private banking Property & casualty insurance ü Excellent commercial performance: number of Pacifica policies up over 14%, exceeding 3,640,000 ü Premium income up 14.9% (excl. Finaref), driven by brisk new business throughout 2003 ü …against a low claims ratio Prem
Slide 45: Asset management, insurance and private banking
45 Asset management, insurance and private banking Asset management, insurance and private banking €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 2,377 2,635 +10.9% 728 +17.6% Operating expenses (1,386) (1,343) (3.1%) (319) (11.6%) Gross operating income 991 1,292 +30.
Slide 46: Strong growth in contribution to pre-tax income
46 Corporate and investment banking Strong growth in contribution to pre-tax income 2003 pre-tax income: € 1,101 bn ü Gross operating income up 30.7%, driven by: 2002 § Good business in capital markets and asset finance 2003 § Sharp reduction in operating expenses (down 5.2% vs 2002) Allocated capit
Slide 47: Financing activities
47 Corporate and investment banking Financing activities ü Impact of refocusing commercial banking business on asset finance activities (weighted assets down 20%) ü Continued decline in operating expenses (down 9.0% vs 2002) ü Controlled risks despite an increase in general provisions Trends in net
Slide 48: Investment banking: good-quality operating income
48 Corporate and investment banking Investment banking: good-quality operating income ü Fixed income business up 12.9%, driven by strong growth in credit derivatives, and structured products ü Equity and advisory business up 15.2% vs 2002, despite a poor first half ü Private equity made its best con
Slide 49: 2003 results by business activity
49 Corporate and investment banking 2003 results by business activity Investment banking and capital markets Financing activities €m % change % change 2002 2003 2002 2003 2003/2002 2003/2002 Net banking income 2,440 2,688 +10.2% 2,106 2,075 (1.5%) Operating expenses (2,000) (1,946) (2.7%) (1,287) (1
Slide 50: Corporate and Investment Banking
50 Corporate and investment banking Corporate and Investment Banking €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 4,546 4,763 +4.8% 1,181 (2.0%) Operating expenses (3,287) (3,117) (5.2%) (778) (8.1%) Gross operating income 1,259 1,646 +30.7% 403 +12.6% Risk-related c
Slide 51: Recovery of contribution from international retail banking
51 International retail banking Recovery of contribution from international retail banking 2003 pre-tax income: € 237 m 2002 2003 negative ü Sharp recovery of contribution from Banca Intesa, to € 115 m at 31 December 2003 (against € (55) m at 31 December 2002) Allocated capital: € 2.6 bn 2002 ü FX i
Slide 52: International retail banking
52 International retail banking International retail banking €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 411 359 (12.7%) 83 (14.4%) Operating expenses (308) (279) (9.4%) (62) (7.5%) Gross operating income 103 80 (22.3%) 21 (30.0%) Risk-related costs (126) (52) (58.7
Slide 53: Impact of mark-down of equity investments
53 Proprietary asset management and other activities Impact of mark-down of equity investments 2003 pre-tax income: € (1,097) m ü Mark-down of proprietary equity book: negative impact on NBI € (187) m, a deterioration of € 84 m vs 2002. 2002 A low mark-down in Q4-03: € (7) m vs € (180) m for the fir
Slide 54: Proprietary asset management and other activities
54 Proprietary asset management and other activities Proprietary asset management and other activities €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income (320) (556) +73.8% (60) (48.3%) Operating expenses (446) (477) +7.0% (172) +37.6% Gross operating income (766) (1,033)
Slide 55: A sound balance sheet
55 Crédit Agricole S.A. pro forma consolidated results A sound balance sheet ü Shareholders’ equity up 52.7% ü Risk-weighted assets up € 111.3 bn vs 31 December 2002 due to consolidation of Finaref (€ 4.2 bn) and of Crédit Lyonnais (€ 101.0 bn) ü Increase in regulatory capital (preferred shares and
Slide 56: Agenda
56 ü Crédit Agricole S.A. pro forma consolidated results ü Update on Crédit Agricole–Crédit Lyonnais integration ü Presentation of results by business lines Ø French retail banking – Regional Banks Ø French retail banking – Crédit Lyonnais Ø Specialised financial services Ø Asset management, insuran
Slide 57: Crédit Agricole Group consolidated pro forma income statement
57 Crédit Agricole Group financial data Crédit Agricole Group consolidated pro forma income statement % change €m 2002 2003 2003/2002 Net banking income 22,060 23,886 +8.3% Operating expenses (15,277) (15,592) +2.1% Gross operating income 6,783 8,294 +22.3% Risk-related costs (1,359) (2,007) +47.7%
Slide 58: Crédit Agricole Group consolidated capital
58 Crédit Agricole Group financial data Crédit Agricole Group consolidated capital € bn Dec 01 Dec 02 Jun 03 Dec 03 Equity group share 28.4 29.8 35.8 38.6 FGBR 4.1 4.3 4.9 4.6 Preferred shares - - 1.4 2.9 Subordinated debt 8.4 10.2 18.7 17.5 Total risk-weighted assets 280.6 292.2 409.3 411.9 Interna
Slide 59: CREDIT AGRICOLE S.A.
DE CREDIT AGRICOLE S.A. 3 aN a ie fe} Q 59
Slide 60: Appendices
2003 Annual Results Appendices
Slide 61: Appendices contents
61 ü Consolidated pro forma results by business line Ø Year-on-year Ø Quarter-on-quarter Ø Quarterly comparisons 2002/2003 Ø Quarterly analysis of NBI and GOI ü Trends in risk ü Movements in consolidated capital ü Capital allocation ü Additional information on business lines Ø French retail banking
Slide 62: 2003: Pro forma consolidated income statement by business line
62 Crédit Agricole S.A. consolidated results 2003: Pro forma consolidated income statement by business line French retail French retail Specialised Asset Corporate and International retail Proprietary asset Group banking – banking – financial services management, investment banking management Region
Slide 63: Q4-03: Pro forma consolidated income statement by business line
63 Crédit Agricole S.A. consolidated results Q4-03: Pro forma consolidated income statement by business line French retail French retail Specialised Asset Corporate and International Proprietary banking – banking –financial management, investment retail banking asset Regional Crédit services insuran
Slide 64: Pro forma quarterly consolidated income statement
64 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement French retail banking – Regional Banks French retail banking – Crédit Lyonnais €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking - - - - - - - -
Slide 65: Pro forma quarterly consolidated income statement
65 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement Specialised financial services Asset management, insurance and private banking €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking income 354 359
Slide 66: Pro forma quarterly consolidated income statement
66 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement Corporate and investment banking €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking income 1,180 1,167 994 1,205 1,070 1,388 1,124 1,181 Operating expenses (827) (827) (786) (847) (761) (834) (
Slide 67: Pro forma quarterly consolidated income statement
67 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement Financing activities Investment banking €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking income 540 504 473 589 495 550 517 513 640 663 521 616
Slide 68: Pro forma quarterly consolidated income statement
68 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement International retail banking Proprietary asset management and other activities €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking income 97 124 9
Slide 69: Pro forma quarterly consolidated income statement
69 Crédit Agricole S.A. consolidated results Pro forma quarterly consolidated income statement Group €m Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Net banking income 2,966 3,049 2,638 3,006 2,866 3,362 3,062 3,431 Operating expenses (2,188) (2,156) (2,112) (2,244) (2,167) (2,261) (2,165) (2,296
Slide 70: Change in NBI and GOI
70 Crédit Agricole S.A. pro forma consolidated results Change in NBI and GOI Change in net banking income Change in gross operating income €m €m Contribution Organic 12,721 of equity Finaref growth Organic 11,659 Forex 3,832 investments* impact impact 865 growth (187) (202) 586 Contribution of equit
Slide 71: Cost/income ratio down 4.7 percentage points
71 Crédit Agricole S.A. pro forma consolidated results Cost/income ratio down 4.7 percentage points ü The cost/income ratio has improved across the business lines, driven by a good commercial performance coupled with tight control over operating expenses ü Incorporates the initial positive benefits
Slide 72: Trends in risk: Market risk
72 Trends in risk Market risk Overall VaR (99% - 1 day) at 31 December 2003: € 44 m* including € 39 m for CAI and Crédit Lyonnais alone Market risk (including Crédit Lyonnais from 1 January) VaR (99% - 1 day) 1 January to 31 December 2003 31 December €m Minimum Maximum Average 2003 Interest rates 17
Slide 73: Trends in risk: Credit risk
73 Trends in risk Credit risk Crédit Agricole SA (pro forma data) €m Dec 02 Jun 03 Dec 03 Customer loans 171,092 185,715 167,468 Bad and doubtful debts 9,664 10,087 9,534 Loan loss reserves 6,186 6,314 6,015 Doubtful debt ratio 5.6% 5.4% 5.7% Ratio of reserves to doubtful loans 64.0% 62.6% 63.1% Reg
Slide 74: Risk-related costs
74 Crédit Agricole S.A. pro forma consolidated results Risk-related costs 1,121 €m 770 543 532 301 148 126 117 66 55 52 28 40 43 15 29 1 Ind. Small Consumer Leasing and (1) (4) CAI+ICB/CL Other ICB Prof. Bus. credit factoring market market -200 Crédit SFS Asset ICB International Proprietary Crédit A
Slide 75: General provisions – trends by provision type
75 Crédit Agricole S.A. pro forma consolidated results General provisions – trends by provision type €m Dec 2002 Dec 2003 pro forma Crédit Agricole S.A. Sector risk provisions and other provisions for credit risk 1,165 1,418 o/w: . General provision for US credit risk 320 242 . Large European corpor
Slide 76: Equity, FGBR and subordinated debt
76 Movements in consolidated capital Equity, FGBR and subordinated debt* Shareholders’ Minority Subordinated €m Total FGBR equity interests debt 31 December 2001 14,994 690 15,684 1,716 9,574 31 December 2002 15,431 383 15,814 1,618 9,745 Dividend paid in 2003 (729) (10) (739) Capital increase 7,810
Slide 77: Breakdown of share capital and earnings per share calculation
77 Movements in consolidated capital Breakdown of share capital and earnings per share calculation Breakdown of share capital: Dec 2002 June 2003 Dec 2003 % SAS Rue la Boétie 682,717,240 685,844,898 771,841,801 52.38% SNC Crédit Agricole 26,903,605 26,903,605 14,771,187 1.00% Transactions* Own share
Slide 78: International solvency ratio
78 Capital allocation International solvency ratio € bn Dec 01 Dec 02 Jun 03 Dec 03 Credit risks 94.0 86.8 197.2 190.0 Market risks 15.1 14.4 21.8 22.5 Total risk-weighted assets 109.1 101.2 219.0 212.5 Tier 1 14.8 15.1 16.5 16.9 Tier 2 9.4 8.7 14.1 15.0 Tier 3 0.6 0.2 1.2 1.1 Deductions 14.9 14.9 1
Slide 79: Risk-weighted assets per business line
79 Capital allocation Risk-weighted assets for capital allocation per business line € bn Dec 02 Jun 03 Dec 03 French retail banking 80.1 81.7 83.5 - Regional Banks 46.8 47.5 48.5 - Crédit Lyonnais 33.3 34.2 35.0 Specialised financial services 22.7 27.1 28.1 Asset management, insurance and private ba
Slide 80: Allocated capital per business line
80 Capital allocation Allocated capital per business line € bn Dec 02 (%) Jun 03 (%) Dec 03 (%) French retail banking 5.0 22.9% 5.0 22.4% 5.1 22.7% - Regional Banks 2.9 2.9 3.0 - Crédit Lyonnais 2.1 2.1 2.1 Specialised financial services 1.4 6.4% 1.6 7.2% 1.7 7.6% Asset management, insurance and pri
Slide 81: Regional Banks' contribution
81 French retail banking – Regional Banks Regional Banks’ contribution € m – Aggregated results of the % change % change 43 Regional Banks consolidated by the 2002 2003 2003/2002 Q4-03 Q4-03/Q4-02 equity method Net banking income 10,318 11,040 +7.0% 2,892 +3.9% Operating expenses (6,248) (6,359) +1.
Slide 82: Consumer credit highlights
82 Specialised financial services Consumer credit highlights €m % change % change 2002 2003 2003/2002 Q4-03 Q4-03/Q4-02 2003/2002 Q4-03/Q4-02 Excl. Finaref Excl. Finaref Net banking income 1,060 1,802 +70.0% +12.7% 491 +84.6% +22.2% Operating expenses (670) (1,007) +50.3% +9.0% (277) +54.7% +7.3% Gr
Slide 83: Lease-finance highlights
83 Specialised financial services Lease-finance highlights €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 283 301 +6.4% 85 +7.6% Operating expenses (169) (177) +4.7% (50) +22.0% Gross operating income 114 124 +8.8% 35 (7.9%) Risk-related costs (35) (40) +14.3% (18) +80
Slide 84: Factoring highlights
84 Specialised financial services Factoring highlights €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 104 105 +1.0% 30 +3.4% Operating expenses (78) (74) (5.1%) (17) (19.0%) Gross operating income 26 31 +19.2% 13 +62.5% Risk-related costs (31) (15) (51.6%) 1 nm Pre-tax
Slide 85: Target synergies
85 Specialised financial services Target synergies 2006 (in millions of euros) 2003 2004 2006 (N.B. Dec 02) Consumer credit 1 2 21 20 Leasing - 2 22 20 Factoring - - - 5 TOTAL 1 4 43 45
Slide 86: Asset management highlights
86 Asset management, insurance and private banking Asset management highlights €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 1,013 1,107 +9.3% 313 +20.8% Operating expenses (720) (710) (1.4%) (171) (14.1%) Gross operating income 293 397 +35.5% 142 x 2.4 Risk-related c
Slide 87: Insurance highlights
87 Asset management, insurance and private banking Insurance highlights €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 861 1,037 +20.4% 311 +31.2% Operating expenses (216) (220) +1.9% (55) +12.2% Gross operating income 645 817 +26.7% 256 +36.2% Income from equity affil
Slide 88: Life-insurance highlights
88 Asset management, insurance and private banking Life-insurance highlights* ü Life reserve up 3.5% to € 3.3 bn vs 2002 ü With-profits reserve up 8.6% (+ € 105 m) ü Regulatory capital up 12.1% ü Unrealised capital gains on investments up 0.4% vs 2002 to € 5.6 bn, accounting for 6.1% of technical re
Slide 89: Private banking highlights
89 Asset management, insurance and private banking Private banking highlights €m % change % change 2002 2003 Q4-03 2003/2002 Q4-03/Q4-02 Net banking income 503 491 (2.4%) 104 (15.4%) Operating expenses (450) (413) (8.2%) (93) (17.7%) Gross operating income 53 78 +47.2% 11 +10.0% Risk-related costs (
Slide 90: Target synergies
90 Asset management, insurance and private banking Target synergies 2006 (in millions of euros) 2003 2004 2006 (N.B. Dec 02) Asset management 3 9 65 40 Insurance 1 4 19 15 Securities businesses - 1 13 International private banking - - 25 20 TOTAL 4 14 122 75
Slide 91: Target synergies
91 Corporate and investment banking Target synergies 2006 (in millions of euros) 2003 2004 2006 (N.B. Dec 02) Financing activities 50 197 180 Corporate & institutional banking 26 115 120 (French and international customers) Structured finance 24 82 60 Investment banking 191 332 310 Capital markets 1
Slide 92: Reform of Internal Financial Relations
92 Proprietary asset management and other activities Reform of Internal Financial Relations: no material financial impact for Crédit Agricole S.A. üStructure of internal financial relations unchanged § Non-monetary savings collected by the Regional Banks on behalf of Crédit Agricole S.A. with 50% re
Slide 93: Crédit Agricole S.A. 2003 consolidated income statement
93 Crédit Agricole S.A. financial statements Crédit Agricole S.A. 2003 consolidated income statement % change €m 2002 2003 2003/2002 Net banking income 5,329 9,351 +75.5% Operating expenses (3,929) (6,496) +65.3% Gross operating income 1,400 2,855 x 2.0 Risk-related costs (207) (839) x 4.1 Income fr
Slide 94: Consolidated balance sheet at 30 June and 31 December 2003
94 Crédit Agricole S.A. financial statements Consolidated balance sheet at 30 June and 31 December 2003 € bn € bn Assets 30 Jun 03 31 Dec 03 Liabilities 30 Jun 03 31 Dec 03 Deposits by banks 137.9 125.1 Loans and advances to banks 188.6 172.2 Crédit Agricole internal transactions 16.2 13.5 Crédit Ag
Slide 95: Crédit Agricole Group 2003 consolidated income statement
95 Crédit Agricole Group financial statements 2003 consolidated income statement % change €m 2002 2003 2003/2002 Net banking income 15,727 20,514 +30.4% Operating expenses (10,505) (13,198) +25.6% Gross operating income 5,222 7,316 +40.1% Risk-related costs (796) (1,725) x 2.2 Income from equity aff
Slide 96: CREDIT AGRICOLE S.A.
DE CREDIT AGRICOLE S.A. 3 aN a ie fe} Q 96