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Credit Agricole SA — Crédit Agricole Covered Bonds — Debt Investor Presentation (September 2008)

41 slides from Credit Agricole SA's debt investor presentation, September 2008

  1. Slide 1: Crédit Agricole Covered Bonds Investor Presentation

    Crédit Agricole Covered Bonds Investor Presentation

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Crédit Agricole Covered Bonds (“CACB”) and Crédit Agricole S.A. solely for use in the roadshow presentation held in connection with the proposed bond offering of CACB (the “Offer”). This document is confidential and is not to be reproduced by any person,

  3. Slide 3: Table of Contents

    Table of Contents 1. Crédit Agricole Group Overview 2. Crédit Agricole Group Funding Strategy 3. French Home Loan Business 4. Crédit Agricole’s Home Loan Business 5. The Covered Bond Programme 6. The Cover Pool 7. Appendix Page 3 Investor Presentation

  4. Slide 4: Crédit Agricole Group Highlights

    Highlights Crédit Agricole Group ƒ #1 in Retail Banking in France Unless otherwise stated all figures as at 31/12/07 9 26m customers, almost half of the French population and 9,089 retail branches in France under 2 brands: Crédit Agricole (“CA”) and LCL 9 29% market share in deposits from households

  5. Slide 5: Section 1: Crédit Agricole Group Overview

    Section 1: Crédit Agricole Group Overview Investor Presentation

  6. Slide 6: Crédit Agricole: a mutual retail-oriented Group

    Crédit Agricole: a mutual retail-oriented Group 5.7 mn co-operative shareholders Public Public (including (including employees) employees) French retail banking (LCL) 2,570 local credit co-operatives 45.6% International retail banking: Cariparma (It.), Emporiki (Gr.), Crédit du Maroc (Ma.), … 54 % 2

  7. Slide 7: The Cross-Guarantee Mechanism: a source of structural strength

    The Cross-Guarantee Mechanism: a source of structural strength ƒ Reciprocal commitments exist between the Regional Banks and Crédit Agricole S.A. Through them, resources within the Crédit Agricole Network may, in certain circumstances, meet the needs of particular members ƒ Crédit Agricole S.A., in

  8. Slide 8: A leading universal banking & insurance group

    A leading universal banking & insurance group Unless otherwise stated all figures as at 31/12/07 ƒ #1 in domestic Retail Banking 9 9,089 retail branches 9 29% market share in sight deposit from households with € 65bn outstanding (€ 95bn from all customers) 9 29% market share in deposits from househo

  9. Slide 9: A diversified NBI and high operating efficiency driven by retail banking

    A diversified NBI and high operating efficiency driven by retail banking 2007 NBI per Business Line* ƒ A substantial Net Banking Income (NBI) with a high degree of recurrence Total € 29.6bn thanks to the contribution of retail banking and related businesses CIB 9% (from 18% in 2006) A sset 9 Retail

  10. Slide 10: First Half 08: stable performance of businesses except the CIB

    First Half 08: stable performance of businesses except the CIB Crédit Agricole Group 2008-H1 Income Statement € mn 2008-H1 2007-H1 ∆ 2008/2007 % Net banking income 13,570 16,650 (18.5) Operating expenses (10,136) (10,292) (1.5) Gross operating income 3,434 6,358 (46.0) Risk-related costs (1,509) (97

  11. Slide 11: Outstanding financial soundness despite the financial crisis

    Outstanding financial soundness despite the financial crisis „ Extremely sound Group capital structure T1 Capital structure 9 A high level of net Tier 1 capital: € 48.7bn at end of June 08 (+€ 2.7bn compared (as at end of June 08) to 2007 year-end and +€ 4.1bn compared to end of June 07) Minority In

  12. Slide 12: Section 2: Crédit Agricole Group Funding Strategy

    Section 2: Crédit Agricole Group Funding Strategy Investor Presentation

  13. Slide 13: Strong customer liquidity

    Strong customer liquidity ƒ Crédit Agricole Group Balance Sheet € bn Assets 31/12/07 € bn Liabilities 31/12/07 Cash, central banks, French postal system 21.8 Central banks, French postal system 0.4 Financial assets at fair value through profit or Financial liabilities at fair value through profit or

  14. Slide 14: Strong customer liquidity coming from retail networks

    Strong customer liquidity coming from retail networks Loans and savings outstanding of CA Group French ƒ Deposits collected by retail networks still represent the retail banking 700 Group’s main source of funding 600 9 Steady growth of retail deposits which reached € 322bn (as at 31/12/07) in France

  15. Slide 15: A diversified medium to long term funding policy

    A diversified medium to long term funding policy ƒ Medium to long term funding policy based on key internal principles CA Group / Medium & Long Term Funding 9 Crédit Agricole S.A. (Paris or London Branch) is the Group issuer for public (Outstanding) € bn transactions with an annual funding programme

  16. Slide 16: Section 3: French Home Loan Business

    Section 3: French Home Loan Business Investor Presentation

  17. Slide 17: A sound French housing market

    A sound French housing market Residential property prices „ The French market experienced a more measured growth rate than other Index base 100=2000Q1 European ones 250 „ In comparison with other European markets, the French market is 200 supported by structural factors 9 A lower ownership ratio com

  18. Slide 18: A healthy home-finance market based on borrowers' ability to repay

    A healthy home-finance market based on borrowers’ ability to repay „ The housing debt ratio (defined as all housing loans „ Most home loans have a fixed rate to maturity (82% outstanding as a percentage of total household’s annual in 2007). Almost all floating rate loans are capped income) is lower

  19. Slide 19: Section 4: Crédit Agricole in the French Home Loan Market

    Section 4: Crédit Agricole in the French Home Loan Market Investor Presentation

  20. Slide 20: Crédit Agricole Group: the leader in French Home Finance

    Crédit Agricole Group: the leader in French Home Finance An unrivaled market share in Home Finance ƒ Crédit Agricole Group is the unchallenged leader in French Home Finance CA + LCL, Of note: 28.5% BNP Paribas, 9 #1 with a 28.5% market share 6.9% 9 € 213bn home loans outstanding at 2007 year-end and

  21. Slide 21: Well-established selection and risk management processes

    Well-established selection and risk management processes ƒ Origination process relies on the borrower’s repayment capacity, which is assessed through a comprehensive risk analysis 9 Borrower’s own risk is analysed through revenue and credit history check (3 pay slips, most recent tax statement, 3 mo

  22. Slide 22: Very low risk profile

    Very low risk profile ƒ The rate of doubtful loans* is low, in line with the French ƒ CA Group traditionally has a cautious provisioning policy market Doubtful loans / Total home loans Loan loss reserves / Doubtful loans 1.6% 60% 1.4% 50% 1.2% 40% 1.0% 0.8% 30% 0.6% 20% 0.4% 10% 0.2% 0.0% 0% 2003 20

  23. Slide 23: A diversified guarantees policy, adapted to clients' risks and needs

    A diversified guarantees policy, adapted to clients’ risks and needs ƒ Mortgage as base case ƒ French State guarantee for eligible borrowers in addition to a mortgage 9 PAS loans (see next slide) ƒ Guaranteed loans: growing proportion, in line with the French market 9 Mainly used for well known cust

  24. Slide 24: Focus on guarantee policy: PAS loans

    Focus on guarantee policy: PAS loans ƒ PAS loans figures for CA Group CA 2007 market share with regards to 9 With a 25.7% market share, Crédit Agricole Group is a market leader in the PAS loans distribution of ‘Accession Sociale’ loans (PAS loans) C.A + LCL 9 The Group's (CA+LCL) guaranteed loans ou

  25. Slide 25: Focus on guarantee policy: Crédit Logement Home Loan Guarantee

    Focus on guarantee policy: Crédit Logement Home Loan Guarantee Crédit Logement Capital Breakdown ƒ Crédit Logement provides home loan guarantees to private HSB C, 3% CA - LCL, 32% individuals Crédit M utuel - 9 An outstanding of € 140bn of guarantees granted to individuals as at B NP P aribas, CIC,

  26. Slide 26: Focus on guarantee policy: CAMCA Home Loan Guarantee

    Focus on guarantee policy: CAMCA Home Loan Guarantee ƒ CAMCA Assurance provides home loan guarantees to private CAMCA guaranteed home loans outstanding individuals, sold in connection with home loans granted by the Group € bn 38 40 9 € 38bn outstanding 25 30 9 600,000 insured loans 20 13 6 10 2 3 ƒ

  27. Slide 27: Section 5: The Covered Bond Programme

    Section 5: The Covered Bond Programme Investor Presentation

  28. Slide 28: Key points

    Key points ƒ Crédit Agricole Covered Bonds, the Issuer, is a duly licensed French credit institution and constructed to be bankruptcy remote, owned 99,9% by Crédit Agricole S.A. ƒ Strong ratings for its covered bonds: AAA (S&P) / Aaa (Moody’s) / AAA (Fitch) ƒ A full recourse of the Issuer against Cr

  29. Slide 29: Issuer legal framework

    Issuer legal framework ƒ Crédit Agricole Covered Bonds (CACB), the Issuer 9 A French credit institution duly licensed by the CECEI (Comité des Etablissements de Crédit et des Entreprises d’Investissement) 9 Under permanent supervision by the Commission Bancaire 9 Prior approval from Banque de France

  30. Slide 30: Structure Overview (1/2)

    Structure Overview (1/2) Investors Issuer Security Covered Collateral Providers: Bonds Proceeds Issuer Security Agent ƒ Proceeds from the issuance of covered bonds will be used by the No mismatch Issuer to grant Borrower Facilities between Covered to CASA Bonds and CASA Caisse Borrower Facilities Th

  31. Slide 31: Structure Overview (2/2)

    Structure Overview (2/2) ƒ No currency or interest rate risk 9 Terms and conditions on Borrower Facilities exactly mirror terms and conditions on Covered bonds: no hedging is needed under normal circumstances 9 If one of the ratings of the Borrower falls below A1 (S&P), F1+ (Fitch) or P1 (Moody’s),

  32. Slide 32: Summary

    Summary Main terms of the programme Inaugural Issue Issuer Crédit Agricole Covered Bonds Size Benchmark Rating AAA (S&P) / Aaa (Moody’s) / AAA (Fitch) Rating AAA (S&P) / Aaa (Moody’s) / AAA (Fitch) Programme size € 35bn Currency Euro Maturity Any Maturity [.] Hard-bullet Currency Any Coupon Fixed Mi

  33. Slide 33: Section 6: The Cover Pool

    Section 6: The Cover Pool Investor Presentation

  34. Slide 34: General information on the pool

    General information on the pool Pool Notional € 6,899,217,059 Number of loans 118,197 Average loan balance € 58,370 WA seasoning 38 months WA remaining term 190 months WA LTV 68% Indexed WA LTV 56% France only, regional distribution Geographical distribution on the map 100% home loans originated wit

  35. Slide 35: Cover pool: low default risk

    Cover pool: low default risk The Cover pool reflects Crédit Agricole’s leading role in French Home Finance „ The size of the programme (€ 35bn) represents the lowest Geographical diversification of the cover pool proportion of the loans outstanding (€ 213bn) among French issuers , i.e. 16% 9 100% of

  36. Slide 36: Cover pool: low default risk

    Cover pool: low default risk Rate type distribution 16% „ The borrower’s monthly costs are predictable 9 The proportion of fixed rates to maturity loans is large: 84% (European Fixed rate to maturity average : 42%, French average: 79%) Floating rate 9 All floating rates are capped Source: Crédit Agr

  37. Slide 37: Section 7: Appendix

    Section 7: Appendix Investor Presentation

  38. Slide 38: Home Loan Eligibility Criteria

    Home Loan Eligibility Criteria a) Prior to the date upon which the Home Loan has been made available to the borrower thereof, all lending criteria and conditions precedent as applied by the originator of the Home Loan pursuant to its customary lending procedures were satisfied ; b) The underlying pr

  39. Slide 39: Key figures (Crédit Agricole Group)

    Key figures (Crédit Agricole Group) € bn 2006-FY 2007-H1 2007-FY 2008-H1 Net banking income 29.2 16.6 29.6 13.6 Gross operating income 11.3 6.4 9.3 3.4 Net income, Group share 7.1 4.7 6.0 1.6 Total assets 1,380.7 1,516.1* 1,540.9 1,592.2* Equity, Group share 58.7 65.0 64.8 61.0 European Solvency Rat

  40. Slide 40: Consolidated capital: a very strong equity base

    Consolidated capital: a very strong equity base (Crédit Agricole Group) € bn 2006-FY 2007-H1 2007-FY 2008-H1 Equity Group share 58.7 65.0 64.8 61.0 Preferred shares 2.9 2.8 2.7 2.6 Subordinated debt 22.0 21.9 22.5 26.4 Total risk-weighted assets 520.3 580.7 630.6 584.0 CAD ratio 10.0% 10.4% 9.6% 10.

  41. Slide 41: Contact List

    Contact List Olivier Nicolas +33 1 43 23 34 08 Head of Financial Management Department olivier.nicolas@credit-agricole-sa.fr Claude Grandfils +33 1 43 23 42 20 Deputy Head of ALM Division claude.grandfils@credit-agricole-sa.fr Claude Rosenfeld +33 1 57 72 16 21 Assistant to the Head of the Financial

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