WORKING EVERY DAY IN THE INTEREST
OF OUR CUSTOMERS AND SOCIETY
PRESS CONFERENCE
RESULTS
for the second quarter and first half of 2020
- l RÉSULTATS DU PREMIER TRIMESTRE 2020
Key figures
Crédit Agricole
Group
Net income Group share Q2 Stated
Net income Group share Q2 Underlying
Net income Group share H1 Underlying
€1,483m
-18.2% Q2/Q2
€1,785m
-3.3%
Q2/Q2
€2,767m
Net income Group share Q2 Stated
Net income Group share Q2 Underlying
Net income Group share H1 Underlying
€954m
-21.9% Q2/Q2
€1,107m
-10.9%
Q2/Q2
Crédit Agricole S.A.
€1,758m
Provisioning(1) | X 2 Q2/Q2 |
(1)Underlying
3 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
X 2.5 Q2/Q2
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
Now more than ever: One of Europe's strongest banks
Crédit Agricole Group
Solvency 16.1%
phased-in | |
CET1 | +7.2 pp |
Variance from SREP* |
Crédit Agricole S.A.
Solvency | 12.0% |
phased-in | |
+4.1 pp | |
CET1 |
Variance from SREP*
Liquidity
*Supervisory Review and Evaluation Process, i.e. regulatory demands
NPL ratio
coverage ratio
NPL ratio
coverage ratio
CASA
€405bn
2.4%
unchanged from
31/03
84.5%
+0.2 pp from 31/03
3.2%
+0.1 pp from 31/03
73.4%
+0.9 pp from 31/03
Europe's No. 2
€94.2bn(1) bank(2) in terms of Tier 1 capital
Sharp increase in the CET1 ratio
NPL ratio among the lowest in Europe
NPL coverage ratio among the highest in Europe
- Amount of fully loaded Tier 1 capital as at 30/06/20
- As ranked by The Banker magazine July 2020, 2019 data
- RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020
CREDIT AGRICOLE GROUP
France's No. 1 bank, massively committed to supporting the economy
Mobilised on the
front line
Massive mobilisation of all employees at the service of customers 90% of branches are reachable, either in person or remotely
€28.7bn | |
Side-by-side | 552,000 |
with the worst | |
affected | €239m |
customers |
€2bn
State-Guaranteed Loans for 179,500 customers (SMEs and corporates), i.e. 23.7% of applications in France(1) (62% Regional Banks, 30% LCL and 8%
CACIB)
Payment holidays granted, i.e. €4.2bn of deferred maturities(2) in French Retail banking (83% to SMEs and corporates, including 71% Regional Banks and 29% LCL)
Mutualist support for customers insured against business interruption
Payment holidays and State-Guaranteed Loans for CA Italia customers
- Regional Bank, LCL and CACIB applications as at 24/07/2020; acceptance rate of 97.5%
- Corresponding to a remaining capital due of €58.5bn, of which €39.9bn on corporates, SMEs and farmers
5 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
A "V" shaped recovery of the Group's activity
Retail banking gross customer acquisition
Crédit Agricole Group
+2.4% from June 2019
170 000 | 155 000 | 150 000 | |
92 000 | 74 000 | ||
46 000 | |||
Jan. 20 | Fév. 20 | Mars 20 | Avr. 20 | Mai 20 | Juin 20 |
Number of new savings accounts opened | Home loan simulations (Regional Banks and LCL) - | Assurances - Number of new cases in |
(Regional Banks) | Consumer finance contracts | property and casualty insurance (in thousands) |
Nombre simulations | ||||||||||||
417 074 | 422 117 | de crédits habitat | ||||||||||
327 409 | Nombre contrats | |||||||||||
260 658 | 304 272 | crédits à la | ||||||||||
consommation | ||||||||||||
180 825 | 164 678 | 181 666 | 176 334 | |||||||||
107 644 | 68 895 | 96 246 | ||||||||||
Jan. 20 | Fév. 20 | Mars 20 | Avr. 20 | Mai 20 | Juin 20 |
228 | 220 | 220 |
135114
59
Jan. 20 | Fév. 20 | Mars 20 | Avr. 20 | Mai 20 | Juin 20 |
685,000 new retail banking customers at H1-20
(480,000 Regional Bank customers)
- RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020
CRÉDIT AGRICOLE GROUP
A crisis that reveals the full relevance of our Group project
Customer Project | Human-centric Project |
Digital and Human | Empowered teams for customers |
Societal Project |
→ Sharp improvement in customer satisfaction(1)
+7 pts | +8 | ||
+7 pts | |||
from | |||
2019 | from | ||
2019 | |||
+2 | |||
Caisses régionales | LCL |
- A continually expanding digitalisation
- Electronic signature for State-Guaranteed Loans to SMEs
- Dematerialisation of claims reporting
- Automated processing of leasing moratoria files
- Contactless payment limit increased to €50
(1) The national Net Promoter Score (NPS) for individual customers in 2020: difference between promoters and detractors
- Instant adaptation of the organisation to the lockdown context
- Exceptional delegations in branches
Societal Project
Commitment to Society
Environment
- CACIB: N°1 worldwide in social/green bonds
- Amundi (CPR AM): First international equity fund focused on reducing inequalities
- LCL: First full range of investments in the fight against global warming
- Creation of a Group-levelnon-financial reporting platform
Inclusion
- 4,000 work-study students in 2020 (Top 2 Figaro/Cadremploi)
- Top 50 2020 awards for feminisation of corporate decisions making bodies (+46 places in 2020)
- RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020
CRÉDIT AGRICOLE S.A. | GROUPECRÉDITAGRICOLECRÉDITAGRICOLEGROUP |
Our robust performance yet again highlights the power of universality
All divisions
Locally present in all regions
The widest array of customers
8 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
Working every day in the interest
of our customers and society
Jérôme Grivet
RESULTS as of 30 JUNE 2020
- RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
Very robust performance in the Group this half year
- Strong momentum in loans, savings and insurance activity (+5.9% growth in loans outstanding, excluding State-Guaranteed Loans (SGL) June/June)
- Very strong performance of Regional Banks, reflecting the strength of the universal banking model
- Increase in provisioning, 50% of which for performing loans
- At 16.1%, the Group's CET1 has already reached the 2022 in the Group Project objective
- Switch activated, due to tensions this half-year on equities and bond markets
Crédit Agricole S.A. | Crédit Agricole S.A. |
57.4% | €3.7bn |
C/I ratio Q2-20, | GOI |
Underlying | |
Underlying H1-20 | |
excl. SRF | |
Crédit Agricole S.A. | Crédit Agricole S.A. |
74 bp | 8.5% |
Cost of risk on | ROTE |
outstandings(1) | Underlying |
H1-20, annualised |
(1) Cost of risk on outstandings for H1-20, annualised
10 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A.
All items in the Crédit Agricole S.A. income statement are strong this quarter
Underlying data, Q2 2020
- Revenues: Exceptional half-year for LC, undermined by an adverse market effect in AG
Revenues(1)
Expenses(2)
GOI
Provisioning
Net income
Group share
- Revenues
- Excl. SRF
- Underlying
€5,185m
+0.1% Q2/Q2
€2,976m
-1.9%Q2/Q2
€2,130m
-0.5%Q2/Q2
€908m
X 2.5 Q2/Q2
€1,107m
-10.9%Q2/Q2
- Retail activities (RB and SFS) were severely penalised by the two months of lockdown
- Very good momentum in Corporate and Institutional activity, generating high revenues in LC
- Detrimental market effect on AG revenues over the six-month period -4.3% H1/H1
- 77% of total Revenues are recurring(1)
- Reduction in Operating expenses excl. SRF:
- -1.9%(-€57m Q2/Q2, including -€23m due to Covid)
→ Strong GOI:
- GOI(3) unchanged in Q2: -0.5% Q2/Q2, despite lockdown
- GOI(3) up in H1: €3.7 billion, i.e. +2.9% H1/H1
- GOI(3) excl. SRF: +2.9% Q2/Q2 and +5.3% H1/H1
→ Increase in provisioning, 50% of which relates to provisioning for performing loans
AG: Asset Gathering; RB: Retail Banking; SFS: Specialised Financial Services; LC: Large Customers; CC: Corporate Centre.
- Recurring revenues: Revenues backed by stocks (loans/inflows outstanding, assets under management) or policies (property and casualty insurance, pension plan); Transactional revenues: Revenues linked to commissions on flows and market activities.
11 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
GROUPECRÉDITAGRICOLECRÉDITAGRICOLEGROUP
Very good performance of the Regional Banks
Strong sales, with sharp increases in GOI and net income Group share
€1.3 billion GOI | (1) | €0.7 billion | Individual NPS(3) | +5.9% |
Net income Group share (2) | at +8 | loans outstanding | ||
+19.6% Q2/Q2 | +17.9% Q2/Q2 | June/June, excl. SGL | ||
- Loans: Increase in new loans (+32.6% Q2/Q2, -14.8% excl. SGL), sharp recovery in June: increase in new loans in June 2020
(+36%, including housing loans: +7%, excl. SGL: +3%) vs. June 2019 - Inflows: increase in on-balance sheet deposits (demand deposits +25.2%, passbooks +8.7%), off-balance sheet deposits unchanged (-0.5% Q2/Q2)
- Customer capture: 480,000 new customers in 2020, with a sharp acceleration in June (+110,000 customers, +1.9% June/June)
- Interbank mobility: Positive balance at +38,500 at end-June 2020
- Merchant terminal payments/day: €300m in transactions in June vs. €270m before lockdown and €100m during lockdown
- Loans: Increase in new loans (+32.6% Q2/Q2, -14.8% excl. SGL), sharp recovery in June: increase in new loans in June 2020
- Underlying
- Regional Banks' contribution to the Group's underlying Net income Group share
- Net Promoter Score
12 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
ACTIVITY
RETAIL BANKING
LCL
- Sharp recovery of new loans in June (+51% June/April 2020)
- Inflows: Increase in on-balance sheet deposits (+13.6% June/June)
- Increase in LCL's penetration rate for property & casualty insurance and payments markets
- Operating expenses:-5.1% Q2/Q2, down every year(1) since 2017
€138.5 billion
in loans outstanding
CRÉDIT AGRICOLE ITALIA
- Recovery in new housing loans, +26.9% June/April 2020
- Strong on-balance sheet deposits +4.6% June/June
- Operating expenses fell by -2.3% Q2/Q2 (3)
+4.9%
in loans outstanding
June/June
CRÉDIT AGRICOLE S.A.
INTERNATIONAL
- +4% in new loans Q2/Q2(2)
- Liquidity: surplus of deposits over loans +€1.8 billion as at 30/06/2020
+6%
of on-balance sheet deposits Q2/Q2(2)
(1) AAGR of operating expenses Q2 17/Q2 20 (2) Variation excluding foreign exchange impact(3) excluding SRF and excluding COVID-related expenses
13 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A.
ACTIVITY
ASSET GATHERING
CRÉDIT AGRICOLE ASSURANCES
- Savings/Retirement:
- Increase in the rate of UL products in outstandings (22.7%, +0.5 pp June/June)
- Property and casualty insurance:
- New business: increase of +94% June/May 2020
- 14.2m policies(1) in the portfolio, a steady increase (+3.1% year on year)
- Equipment rate(2): 41.0% of Regional Banking customers, 25.2% of LCL customers and 15.9% of CA Italia customers
AMUNDI
- +7.1% in AuM June/June
- Positive MLT net retail inflows (excluding JVs) in French networks +€1.2 billion
- Significant reduction in operating expenses by -7.3% Q2/Q2, with a reduction in variable compensation and IT costs synergies linked to Pioneer
- Partnership with Société Générale renewed for a further 5 years
CAIWM
- Net inflows from private customers of +€1 billion
+13.5% Q2/Q2 | +€3.5bn | €125.7bn |
Underlying revenues | In MLT assets | of AuM |
(1) Change excluding foreign exchange impact (2) Car, home, health, legal or personal accident insurance
14 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
ACTIVITY
SPECIALISED FINANCIAL SERVICES
CA Consumer Finance
- Recovery of new business in June +€2.3 billion June/April 2020
- Reduction in operating expenses of -7.1%, excluding SRF Q2/Q2
+170%
in new business June/April
15 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A.
CAL&F
- Increase in factored revenues, +33% June/April 2020
- Reduction in operating expenses of -2.9%, excluding SRF Q2/Q2
+90%
in leasing June/April
ACTIVITY
LARGE CUSTOMERS
CACIB
- Strong growth in capital markets, +44% revenues Q2/Q2(1)
- No. 1 in Global Green, Social and Sustainability bonds
- Maintained prudent risk profile, VaR of €14m at 30/06/20
+27.1%
in underlying GOI Q2/Q2
(1) including Credit Valuation adjustments
16 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A.
CACEIS
- Increase in assets under custody:
- +€826bn with KAS BANK and Santander Securities Services
- +€173bn in new clients
+35%
assets under custody
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
Low NPL ratio and high coverage ratio
Crédit Agricole S.A.Regional Banks
NPL ratio : | 3.2% | 1.8% |
+0.1 pp from March 20 | -0.1 pp from March 20 |
Crédit Agricole Group
2.4%
Unchanged from March 20
Loan loss reserves: 24% linked to provisioning on performing loans for CASA, 37% for Regional Banks, 30% for GCA
A diversified loan book, skewed towards large corporates (46% CASA, 16% GCA) and housing loans (27% CASA, 46% GCA)
73% of Large corporates EAD(2) for CASA rated investment grade
NPL ratio(1) :
Loan loss reserves :
Crédit Agricole S.A.(1) | Regional Banks(1) |
73.4% | 99.7% |
+0.9 pp from March 20 | -0.3 pp from March 20 |
Crédit Agricole Group(1)
84.5%
+0.2 pp from March 20
Crédit Agricole S.A. | Regional Banks |
€10.1bn | €10.0bn |
Crédit Agricole Group
€20.1bn
- Including the full scale of reserves for performing loans due to COVID-19. Loan loss reserves, including collective provisions. Coverage ratios are calculated based on loans and receivables due from customers.
- EAD (Exposure At Default) is a regulatory definition used in pillar 3. It corresponds to the exposure in the event of default after risk mitigation factors. It encompasses balance sheet assets plus a proportion of off-balance sheet commitments
17 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
Controlled increase in Q2/Q2 provisioning, half of which related to the provisioning of performing loans
Cost of risk broken down by stage/bucket (in €m): S1 & S2 - Prudential provisioning of performing loans; S3 - Provisioning for proven risks
Crédit Agricole S.A. | Crédit Agricole Group | |
X2.5 |
x2.8 | 908 | X2.0 | |||||||||||||||||||||||
621 | 236 | X3.3 | 1 208 | ||||||||||||||||||||||
314 | 246 | 358 | 335 | 340 | 223 | Autres | 930 | 424 | Autres | ||||||||||||||||
CDR S1&S2 | CDR S1&S2 | ||||||||||||||||||||||||
29 | 223 | 218 | 225 | 499 | 598 | 494 | |||||||||||||||||||
0 | CDR S3* | 421 | 398 | 31 | 398 | CDR S3* | |||||||||||||||||||
273 | 262 | 242 | 316 | 216 | 371 | 331 | 531 | 382 | 667 | 28 | 29 | 323 | 281 | 384 | |||||||||||
CDR total | 5 | CDR total | |||||||||||||||||||||||
-30 | -40 | -59 | -26 | -7 | -184 | 372 | 382 | 371 | 505 | 294 | 588 | 420 | 602 | 516 | 785 | ||||||||||
-64 | 0 | -33 | -87 | ||||||||||||||||||||||
T1-18 | T2-18 | T3-18 | T4-18 | T1-19 | T2-19 | T3-19 | T4-19 | T1-20 | T2-20 | T1-18 | T2-18 | T3-18 | T4-18 | T1-19 | T2-19 | T3-19 | T4-19 | T1-20 | T2-20 |
Crédit Agricole S.A. | Cost of risk | Crédit Agricole Group |
74 bp (1.2) | x 2.5 Q2/Q2 | 45 bp (1.2) |
48% of the increase related | ||
CoR/loan | to performing loans | CoR/loan |
Annualised on the basis of H1 2020 | ||
Annualised on the basis of H1 2020 |
Cost of risk
x 2.0 Q2/Q2
70% of the increase related to performing loans
- Cost of risk on loans (in basis points, annualised); Cost of risk on loans in basis points over four quarters on a rolling basis at 55 bp on Crédit Agricole SA, 33 bp on Crédit Agricole Group; The CoR on loans is calculated based on the cost of the risk recognised over the annualised half-year to which is added the average of Q1 and Q2 loans (2), Since Q1-19, the loans taken into account in the credit risk indicators are only loans to customers, before deduction of provisions. *Including non-provisioning losses.
Coverage ratios are calculated based on loans and receivables due from customers
18 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A.
CET1 ratios(1) are well above SREP requirements and have already reached the targets set in the 2022 MTP
CREDIT AGRICOLE S.A. | CREDIT AGRICOLE GROUP |
+0.6 pp
+0.6 pp | 15,5% | |
12,0% | ||
11,4% | +6,6pp | |
vs SREP | ||
+3,5pp | +4,1pp | |
vs SREP | ||
vs SREP |
CRÉDIT AGRICOLE GROUP
16,1%
+7.2 pp vs SREP
Mars 20Juin 20Mars 20Juin 20
Distance to SREP(2): +4.1 pp | Distance to SREP(3) : +7.2 pp |
→ Phased-in Tier 1 ratio: 13.5% and Phased-in total ratio: 17.6% | Phased-in Tier 1 ratio: 17.0% and Phased-in total ratio: 19.7% |
→ Phased-in leverage ratio: 3.9%, unchanged from end-March 20 | Phased-in leverage ratio: unchanged at 5.3% from end-March 20 |
→ Phased-in average intra-quarterly leverage ratio(3):3.8% in Q2-20 | Phased-in average intra-quarterly leverage ratio: 5.2% in Q2-20 |
- Phased-in,the CET pro-forma ratio of two months' waiting period of SGL is at 12% for CASA and 16,3% for GCA(2) Intra- quarter leverage is the average of end-of-month exposures for the first two months of the quarter
19 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
(3) Intra-quarter leverage refers to the average of the end of month exposures for the first two months of said quarter.
Working every day in the interest of
our customers and society
Appendices
RESULTS AS OF 30 JUNE 2020
20 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
Key figures published
Crédit Agricole Group
(stated data)
Net Income | €1,483m |
Group Share | -18.2% Q2/Q2 |
Revenues(1) | €8,096m | €5,036m |
Expenses(2) | ||
-4.6% Q2/Q2 | -5.1% Q2/Q2 | |
Gross | €2,953m | Provisioning | €1,208m |
Operating | |||
X 2 Q2/Q2 | |||
Income | -7.0% Q2/Q2 |
- Revenues
- Excl. SRF
21 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
CRÉDIT AGRICOLE S.A. | GROUPE CRÉDIT AGRICOLE |
Crédit Agricole S.A.
(stated data)
Net Income | €954m |
Group Share | -21.9% Q2/Q2 |
€4,897m | €2,980m |
Revenues (1) | Expenses (2) |
-4.9% Q2/Q2 | -1.7% Q2/Q2 |
Gross | €1,838m | €842m | |
Operating | Provisioning | ||
Income | -12.9% Q2/Q2 | X 2.4 Q2/Q2 |
CRÉDIT AGRICOLE S.A.
SHARE PRICE
Based on CASA share price at 31/07/2020
Change since 01/01/2020
CASA -37.13%
Stoxx Banks
-37.85%
CAC40
-19.98%
22 | RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2020 |
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Crédit Agricole SA published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 13:23:02 UTC