Credit Agricole Sa · EURONEXT:ACA
Credit Agricole Sa — Q3 2023 Earnings Presentation
25 slides from Credit Agricole Sa's earnings presentation, Nov 8, 2023
Slide 1: Results for the 3rd Quarter and First Nine Months of 2023
WORKING EVERY DAY IN THE INTEREST OF OUR CUSTOMERS AND SOCIETY RESULTS FOR THE 3RD QUARTER AND FOR THE FIRST NINE MONTHS OF 2023
Slide 2: Philippe Brassac: Results for Q3 and 9M 2023
Working everyday in the interest of our customers and society Philippe Brassac RESULTS FOR THE 3RD QUARTER AND FOR THE FIRST 9 MONTHS OF 2023 « Very good results again which imprint organically within the Group’s model » 2 THIRD QUARTER AND THE FIRST NINE MONTHS 2023 RESULTST Usage Interne / Interna
Slide 3: Macroeconomic Context: Slowing Without Stalling
MACROECONOMIC CONTEXT SLOWING WITHOUT STALLING BUT IS GROWTH SLUGGISH? Sources: Insee, Crédit Agricole SA/ECO 3 THIRD QUARTER AND THE FIRST NINE MONTHS 2023 RESULTST Usage Interne / Internal Use
Slide 4: Excellent Results for the Universal Banking Model
EXCELLENT RESULTS FOR THE UNIVERSAL BANKING MODEL Q3 2023 9M 2023 Reported Reported Crédit Agricole S.A. CréditAgricole Crédit AgricoleS.A.S.A. RoTE CréditAgricole Crédit Agricole S.A. S.A. 13.5% 53.4% Net income Group share €1,748m €5,014m ROTE 9M-23 cost/income +32.8% Q3/Q3 +42.3% 9M/9M Underlying
Slide 5: Steadily Rising Quarterly Revenues
STEADILY RISING QUARTERLY REVENUES Underlying revenues under IFRS 4 from 2017 to 2022; IFRS 17 starting in Q1-23 Q1 Q2 Q3 Q4 6,329 6,153 6,188 6,060 6,032 5,929 5,829 5,779 5,585 5,508 5,535 5,185 5,299 5,179 5,143 5,137 5,146 5,184 4,903 5,073 4,814 4,900 4,834 4,779 4,810 4,619 4,564 Q1-17Q1-18Q1-
Slide 6: Overall Sustained Activity
OVERALL SUSTAINED ACTIVITY RB: 43.1% LCL: 27.6% CA Italy: 18.3% Property and casualty insurance equipment rate (vs Sept.-23: +0.5 pp RB and LCL +2.2 pp CA Italy) +445,000 +6.7% +25.6% +€13.7bn +8.9% new customers Automotive production(2) Fixed Income revenues Asset management Property and casualty i
Slide 7: Market-Leading Business Lines
MARKET-LEADING BUSINESS LINES 5 drivers on latest partnerships and acquisitions Scaling up the Wealth Management and Development of a comprehensive Extending Insurance distribution Asset Servicing business lines mobility offer through new commercial partnerships * HiFlow Accelerating digitalisation
Slide 8: Useful to Customers and Society
USEFUL TO CUSTOMERS AND SOCIETY ADVOCATING HOME FINANCING Leading position • No. 1 home lender in France, 1/3 of home loans • No. 1 provider of the interest-free loan (PTZ): €1bn in 2022, 40% market share CA Regional Banks and LCL solution1 • An additional interest-free loan of up to €20,000 • No lo
Slide 9: Launch of CATE, Energy Specialist
CRÉDIT AGRICOLE GROUP ACTIVITY Launch of a new business, CATE, energy specialist Developing renewable energy in French regions Investment: €1bn ambition to strengthen developers’ capital and acquire production capacities Financing: comprehensive financial solutions involving CA Unifergie and Cré
Slide 10: Jérôme Grivet: Results for Q3 and 9M 2023
Working everyday in the interest of our customers and society Jérôme Grivet RESULTS FOR THE 3RD QUARTER AND FOR THE FIRST 9 MONTHS OF 2023 “High level results and high profitability” 10 THIRD QUARTER AND THE FIRST NINE MONTHS 2023 RESULTST Usage Interne / Internal Use
Slide 11: Crédit Agricole Group IFRS 17 Pro Forma Key Figures
GROUPE CRÉDIT AGRICOLE CRÉDIT AGRICOLE GROUP IFRS 17 PRO FORMA KEY FIGURES Underlying Q3 2023 9M 2023 Revenues €8,847m €26,965m +7.3% Q3/Q3 +6.1% 9M/9M Operating expenses excl. €-5,265m €-15,764m SRF +6.7% Q3/Q3 +5.6% 9M/9M Cost/ income ratio 58.5% Gross operating income €3,582m €10,581m excluding S
Slide 12: 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 Q3 2023 9M 2023 Revenues €6,060m €18,542m +13.4% Q3/Q3 +13.1% 9M/9M Operating expenses €-3,376m €-9,904m excl. SRF +8.3% Q3/Q3 +6.6% 9M/9M Cost/ income ratio 53.4% Gross operating income €2,684m €8,129m excluding SRF
Slide 13: Business: Retail Slowdown Offset by Other Business Lines
BUSINESS Slowdown in retail banking in France, offset by the other business lines Continued slowdown in lending operations in France # 1 – Syndicated loans in France • FRB: Q3/Q2 loan production down for the Regional Banks (-11.9%), stabilising for LCL # 2 – EUR Green, social & sustainable bonds # 2
Slide 14: Regional Banks: Slowdown in Lending and Stable Margin
GROUPE CRÉDIT AGRICOLE REGIONAL BANKS: SLOWDOWN IN LENDING OPERATIONS AND STABILISATION OF THE INTERMEDIATION MARGIN Customer capture: +268,000 new customers in Q3 Loans outstanding (€bn) On-balance sheet deposits gained momentum +2.5% Sept./Sept. Loans outstanding up in all markets: +3.5% Sep
Slide 15: Crédit Agricole S.A. Revenues Up for All Divisions
CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE S.A. REVENUES UP FOR ALL DIVISIONS Q3/Q3 and 9M/9M change in revenues by division – €m, in accordance with IFRS 17 Q3/Q3 9M/9M +13.4% +€717m +13,1% +€2,148m +19.2% +€1,022m +15.8% +€2,615m 6,343 +527 +11 19,140 +129 +646 18,542 +276 +543 +888 +184 6,060 16,394 16
Slide 16: Revenues: Increase in Overall NIM
CRÉDIT AGRICOLE S.A. REVENUES Increase in overall NIM in the context of rising rates, thanks to the diversified model MNI evolution of CASA business lines (1) Base 100 au Q1-22 T1-22 T2-23 // T1-22 Q3-23 Q1-22 → Decline in the NIM of French retail 160 banking (LCL) under the effect of the rise in th
Slide 17: Expenses Under Control in an Inflationary Context
CRÉDIT AGRICOLE S.A. EXPENSES UNDER CONTROL IN AN INFLATIONARY CONTEXT Q3/Q3 and 9M/9M change in expenses excluding SRF, by division, in accordance with IFRS 17 Q3/Q3 9M/9M +6.6% +€611m +8.3% +€258m +5.8% +€540m +8.0% +€250m +394 +140 +19 +10 9,922 9,904 9,293 9,383 +162 +66 +35 3,376 3,376 +5 -22 3
Slide 18: High Loan Loss Reserves, Cost of Risk Below MTP Assumptions
GROUPE CRÉDIT AGRICOLE CRÉDIT AGRICOLE S.A. HIGH LOAN LOSS RESERVES, COST OF RISK BELOW THE 2025 MTP ASSUMPTIONS Crédit Agricole S.A. – Loan loss reserves in billions of euros Low Non Performing Loans ratio 9.8 9.4 9.7 Crédit Agricole Group 9.2 9.3 9.3 9.2 2.2% 8.8 +0.1 pp Q3-23/Q1-23 6.2 6.4 5.7 5.
Slide 19: High Net Income Group Share
CRÉDIT AGRICOLE S.A. HIGH NET INCOME GROUP SHARE Q3/Q3 and 9M/9M change in Net income Group share by division – €m, in accordance with IFRS 17 Q3/Q3 9M/9M +29.1% +€1,040m +23.0% +€284m +42.3% +€1,491m +32.8% +€432m +191 1,748 +133 5,014 +449 4,620 +275 +66 +152 1,520 +568 3,580 3,523 +76 +14 1,316 1
Slide 20: Very High Capital and Liquidity Positions
GROUPE CRÉDIT AGRICOLE CRÉDIT AGRICOLE S.A. VERY HIGH 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) – Q3 2023 Crédit Agricol
Slide 21: Usage Interne / Internal Use
21 THIRD QUARTER AND THE FIRST NINE MONTHS 2023 RESULTST Usage Interne / Internal Use
Slide 22: Asset Gathering
CRÉDIT AGRICOLE S.A. ASSET GATHERING Crédit Agricole Assurances Amundi Wealth management • Savings/retirement: gross inflows down by -8.0% Q3/Q3 • Assets under management: €1,973bn (+4.1% vs • Outstandings unchanged(1) Q3/Q2 related to lower production and international acquisitions Sept. 2022) • Ne
Slide 23: Large Customers
CRÉDIT AGRICOLE S.A. LARGE CUSTOMERS Crédit Agricole CIB CACEIS • Momentum confirmed with underlying revenues up Q3/Q3, driven by Capital markets • Consolidation of the assets of RBC IS Europe renamed ISB(2) • Capital markets and investment banking: +26.8% Q3/Q3 on an underlying basis(1). • Assets u
Slide 24: Specialised Financial Services
CRÉDIT AGRICOLE S.A. SPECIALISED FINANCIAL SERVICES CA Consumer Finance CA Leasing & Factoring • Cumulative production: -2.1% Q3/Q3, driven by the automotive channel • Very strong production in factoring (2.6x Q3/Q3), supported by Germany and France; rise in factored revenues by +2% and in the finan
Slide 25: Retail Banking
CRÉDIT AGRICOLE S.A. RETAIL BANKING LCL Crédit Agricole Italy International • Gross customer capture Q3-23: +81,600 new customers • Gross customer capture Q3-23: +46,000 new • Customer capture Poland Q3-23: customers +46,000 new customers • Loans outstanding: +4.2% Sept./Sept., up in all markets; do