Credit Agricole Sa · EURONEXT:ACA
Credit Agricole Sa — Q4 2023 Earnings Presentation
29 slides from Credit Agricole Sa's earnings presentation, Feb 8, 2024
Slide 1: Results for the 4th Quarter and Full Year 2023
WORKING EVERY DAY IN THE INTEREST OF OUR CUSTOMERS AND SOCIETY RESULTS FOR THE 4TH QUARTER AND FULL YEAR 2023
Slide 2: Dominique Lefebvre: Working every day in the interest of our customers and society
Working every day in the interest of our customers and society Dominique Lefebvre RESULTS FOR THE 4TH QUARTER AND FULL YEAR 2023 “Crédit Agricole Group posted very strong earnings in 2023, three quarters of which will be retained and reinvested into the economy to support the major social transition
Slide 3: Philippe Brassac: Working every day in the interest of our customers and society
Working every day in the interest of our customers and society Philippe Brassac RESULTS FOR THE 4TH QUARTER AND FULL YEAR 2023 “Our strong earnings for 2023 (€8.3 billion) and the fourth quarter (€1.7 billion), while obviously impacted by a large number of weather-related claims, demonstrated once a
Slide 4: A Universal Banking Model...
A UNIVERSAL BANKING MODEL... +1.9 million new customers in 2023(1) Crédit Agricole Group net income Group share Equipment rate Market share €8.3bn +3.3% 2023 vs 2022 (Q4-23 net income Group share: €1.7bn) Crédit Agricole S.A. net income Group share €6.3bn +19.6% 2023 vs 2022 (Q4 net income Group sha
Slide 5: ... Accompanied by Market-Leading Business Lines
... ACCOMPANIED BY MARKET-LEADING BUSINESS LINES Partnerships Acquisitions and non-controlling interests Scale up of the Wealth Management and Asset Servicing business lines Extension of insurance distribution through new commercial partnerships Structuring of property services Dans six pays europée
Slide 6: Continued Rise in Revenues Despite Volatile Growth
CONTINUED RISE IN REVENUES DESPITE VOLATILE GROWTH GDP growth in France Underlying revenues of Crédit Agricole S.A. (€m) 6.4 under IFRS 4 from 2017 to 2022; IFRS 17 starting in Q1-23 2.5 1.8 1.9 24,563 24 563 23,733 23 733 22,651 22 651 20,764 20,339 20 339 20 764 19,694 19 694 18,772 18 772 2017 FY
Slide 7: A Protective Model for Customers
A PROTECTIVE MODEL FOR CUSTOMERS Access to home ownership • €497bn in home loans outstanding at end-Dec. 2023 (+2.5%) BORROWERS • 244,000 primary residences financed in 2023 • Interest-free loan offers, 40% market share Savings protection and interest • Interest paid on regulated savings SAVERS • Li
Slide 8: A Model That Supports Social Change
A MODEL THAT SUPPORTS SOCIAL CHANGE Expanded climate strategy • Financial resources focused on low-carbon energies CLIMATE • Stop on the financing of new fossil-fuel exploration projects and a selective approach to the financing of energy providers • -75% reduction in financed emissions in the Oil &
Slide 9: Profit Sharing in 2023: Three-Quarters of Results Retained and Reinvested
CRÉDIT AGRICOLE GROUP PROFIT SHARING IN 2023: THREE-QUARTERS OF THE RESULTS ARE RETAINED AND REINVESTED INTO THE ECONOMY 36,492 AT1 interest €463m Minority and mutual -11,677 shareholders' interests €1,655m -3,496 €6,140m -7,761 Result retained -2,941 -813 8,258 and reinvested in -1,548 the economy
Slide 10: Jérôme Grivet: Working every day in the interest of our customers and society
Working every day in the interest of our customers and society Jérôme Grivet RESULTS FOR THE 4TH QUARTER AND FULL YEAR 2023 “Strong growth in annual revenues driven by higher revenues across all our core business lines.” 10 FOURTH QUARTER AND 2023 FULL YEAR RESULTS
Slide 11: Excellent Results for the Universal Banking Model in 2023
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. EXCELLENT RESULTS FOR THE UNIVERSAL BANKING MODEL IN 2023 2023 Q4 2023 Reported Reported Crédit Agricole S.A. Crédit Agricole Crédit Agricole S.A.S.A. RoTE CréditAgricole Crédit Agricole S.A. S.A. 12.7% 55.4% Net income Group share €6,348m €1,334m Underlyin
Slide 12: Slowdown in Lending in France Offset by Other Businesses
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. BUSINESS SLOWDOWN IN LENDING IN FRANCE OFFSET BY THE EXCELLENT PERFORMANCE OF THE OTHER BUSINESSES +1.9 million gross +191,000 net Slowdown in lending in France new customers in 2023 • Retail banking in France: loan production held steady at the Regional Ba
Slide 13: Crédit Agricole Group: Excellent Results
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP: EXCELLENT RESULTS Low NPL ratio 12M/12M change in net income Group share by main income statement item (in €m) under IFRS 17 Crédit Agricole Group 2.1% 12M/12M -0.1 pp Q4-23/Q3-23 by P&L line High coverage ratio(1) Crédit Agricole Group 82.6% -0.1 pp Q4-2
Slide 14: Crédit Agricole S.A.: Revenues Up Across All Business Lines in 2023
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A.: REVENUES UP ACROSS ALL BUSINESS LINES IN 2023 Q4/Q4 and 2022/2023 change in revenues by business line – €m, under IFRS 17 Q4/Q4 12M/12M -0.1% -€8m +9.5% +€2,140m +1.2% +€74m +12.0% +€2,689m +649 +31 25,180 +123 +20 6,040 +815 24,563 6,029 5,967 +170 6,021 +
Slide 15: Crédit Agricole S.A.: Costs Contained, Excluding Scope Effect and Non-Recurring Items
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A.: COSTS CONTAINED, EXCLUDING SCOPE EFFECT AND NON-RECURRING ITEMS Q4/Q4 and 2023/2022 change in expenses excluding SRF by business line, under IFRS 17 Q4/Q4 12M/12M +8.9% +€1,114m +15.7% +€503m +8.1% +€1,018m +14.8% +€479m +602 +229 +127 +83 13,632 13,618 12,
Slide 16: Crédit Agricole S.A.: Net Income Group Share at Record Level in 2023
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A.: NET INCOME GROUP SHARE AT RECORD LEVEL IN 2023 12M/12M change in net income Group share by business line and by main income statement item (in €m) under IFRS 17 12M/12M 12M/12M by business line by P&L line +11.0% +€585m +11.0% €585m +19.6% +€1,042m +19.6% €
Slide 17: Very High Return on Equity, Reflected in the Dividend
CRÉDIT AGRICOLE S.A. VERY HIGH RETURN ON EQUITY, REFLECTED IN THE DIVIDEND Underlying ROTE(1) since 2017 Dividend per share Dividende (€) per share (€) Underlying RoTE(1) since 2017 x3 13.1% 12.7% 12.6% 12.3% 12.6% 11.9% 11.1% x2 1.05 1.05 1.05 9.8% 9.3% 0.20 0.20 8.8% 8.0% 8.2% 0.80 0.69 0.70 0.60
Slide 18: All Financial Indicators in Line with the MTP Targets
CRÉDIT AGRICOLE S.A. ALL FINANCIAL INDICATORS IN LINE WITH THE MTP TARGETS 2023(1) 2025 Targets Net income Group share +€5.9bn > €6bn ROTE 12.6% > 12% Cost/income ratio 55.4%(2) < 58%(2) excl. SRF CET1 11.8% 11% Dividend(3) of 50% in cash Payout ratio €1.05/share Cost of risk assumption ~40 bp over
Slide 19: Very Strong Capital and Liquidity Positions
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. VERY STRONG CAPITAL AND LIQUIDITY POSITIONS Capital position Liquidity one of the strongest banks in Europe Stable customer deposits Best capital position among G-SIBs in High level of liquidity reserves Europe/Deviation from SREP(1) – Q4 2023 Crédit Agrico
Slide 20: Climate Strategy: Strong New Commitments
CRÉDIT AGRICOLE GROUP CLIMATE STRATEGY STRONG NEW COMMITMENTS IN LINE WITH EXISTING COMMITMENTS Focusing our capacities on low-carbon energies Commitments for 2030 and accelerating our disengagement from fossil fuels in 10 sectors representing 60% of the Group’s outstandings and Support for low-carb
Slide 21: Climate Strategy: Massive Development of Financings in Renewable Energies
CRÉDIT AGRICOLE GROUP CLIMATE STRATEGY MASSIVE DEVELOPMENT OF OUR FINANCINGS IN RENEWABLE ENERGIES Energy financing: focus on fossil fuels extraction and low carbon energies outstandings(1) Impact of our portfolio reallocation strategy Crédit Agricole Group 20 + 80 % 18 19,7 16 14 For 2€(2) disengag
Slide 22: Step Up in Financing Projects Dedicated to Renewable Energy in Europe
STEP UP IN FINANCING PROJECTS DEDICATED TO RENEWABLE ENERGY IN EUROPE 22 FOURTH QUARTER AND 2023 FULL YEAR RESULTS
Slide 23: Fourth Quarter and 2023 Full Year Results
23 FOURTH QUARTER AND 2023 FULL YEAR RESULTS
Slide 24: Asset Gathering
CRÉDIT AGRICOLE S.A. ASSET GATHERING Crédit Agricole Assurances Amundi Wealth management • Savings/Retirement: positive net inflows driven by AUM • Assets under management: €2,037bn (+7.0% vs Dec. • AUM +1.6% Q4/Q3(1) driven by positive (28.9%, +3.3 pp Dec./Dec.) and record UL ratio (50.2% in 2022)
Slide 25: Large Customers
CRÉDIT AGRICOLE S.A. LARGE CUSTOMERS Crédit Agricole CIB CACEIS • Strong business momentum and record results in 2023 • Full integration of ISB(2) by end-2025; legal merger of the entities and customer migration planned for 2024 • Capital markets and investment banking: -3.2% Q4/Q4 on an underlying
Slide 26: Specialised Financial Services
CRÉDIT AGRICOLE S.A. SPECIALISED FINANCIAL SERVICES CA Consumer Finance CA Leasing & Factoring • Cumulative production: flat over the quarter and +5.4% over the year, weight • Factoring: production +22.8% Q4/Q4 driven by all segments; AuM +8.5% of the automotive channel(1) in Q4 at 53% Q4/Q4 thanks
Slide 27: Retail Banking
CRÉDIT AGRICOLE S.A. RETAIL BANKING LCL Crédit Agricole Italia International • Gross customer capture 2023: 331,000 new customers • Gross customer capture 2023: +175,000 new • Gross customer capture Poland 2023: customers (+16% 23/22); No.1 in terms of NPS(5) +237,000 new customers • Loans outstandi
Slide 28: Crédit Agricole Group IFRS 17 Pro Forma Key Figures
CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP IFRS 17 PRO FORMA KEY FIGURES Underlying Q4 2023 2023 Revenues €8,677m €35,641m -2.7% Q4/Q4 +3.8% 2023/2022 Operating expenses -€5,686m -€21,450m excl. SRF +9.4% Q4/Q4 +6.6% 2023/2022 Cost/income ratio 60.2% Gross operating income €2,991m €13,572m excludin
Slide 29: 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 Q4 2023 2023 Revenues €6,021m €24,563m -0.1% Q4/Q4 +9.5% 2023/2022 Underlying Operating expenses -€3,714m -€13,618m earnings €1.80 excl. SRF +15.7% Q4/Q4 +8.9% 2023/2022 +6.6% 12M/12M per share Gross operating income