INCREASED REVENUES, STRONG PROFITABILITY
DESPITE EXCEPTIONAL HIGH TAX IMPACTCRÉDIT AGRICOLE S.A. | CRÉDIT AGRICOLE GROUP |
Q1 2025 | Var. Q1/Q1 | Q1 2025 | Var Q1/Q1 | ||
Revenues | 7,256 | +6.6% | 10,048 | +5.5% | |
Expenses | -3,991 | +8.8% | -5,992 | +7.2% | |
Gross Operating Income | 3,266 | +4.1% | 4,056 | +3.0% | |
Cost of risk | -413 | +3.4% | -735 | +12.9% | |
Net pre-tax income | 2,900 | +4.6% | 3,399 | +1.6% | |
Net income group | 1,824 | 2,165 | |||
share | -4.2% | -9.2% | |||
C/I ratio | 55.0% | +1.1 pp | 59.6% | +1.0 pp | |
NET PRE-TAX INCOME UP | |||||
- Record quarterly revenues and strong growth, fuelled by the excellent performance by Asset Gathering and Large Customers
- High profitability: contained cost/income ratio (increase in expenses of +3.2% Q1/Q1 excluding exceptional elements) and 15.9% return on tangible equity
- Stable cost of risk
-
Results impacted by additional corporate tax charge
EXCELLENT PERFORMANCE IN CIB AND ASSET GATHERING DIVISION
- High CIB, asset management and insurance business, reflected in the increased level of insurance revenues with contributions from all activities, net inflows (medium-long term) and a record level of assets under management, as well as a new record reached by CIB
-
Loan production in France recovered compared with the low point in early 2024 without confirming the end-of-year momentum and consumer finance down, impacted by
decreased activity in automotive financing; international credit activity at a high level.
CAPITAL OPERATIONS AND STRATEGIC PROJECTS
Creation of the GAC Sofinco Leasing joint venture
Partnership created between Amundi and Victory Capital
Stake in the capital of Banco BPM increased to 19.8%
Planned acquisition of Banque Thaler announced by Indosuez Wealth Management
AS EXPECTED, SOLVENCY RATIOS BENEFITING FROM THE POSITIVE IMPACT OF CRR3.
Crédit Agricole S.A.'s phased-in CET1 at 12.1% and Group phased-in CET1 at 17.6%
CONTINUED SUPPORT FOR THE ENERGY TRANSITION
Continued withdrawal from fossil energies and reallocation to low-carbon energy sources
Support for the transition of households and businesses
Dominique Lefebvre,
Chairman of SAS Rue La Boétie and Chairman of the Crédit Agricole S.A. Board of Directors
"Quarter after quarter, Crédit Agricole continues its action to support the major societal, environmental, agricultural and agri-food transitions, which are solid development levers for the entire Group. I would like to thank each of our employees for their daily commitment to serving our customers."
Philippe Brassac,
Chief Executive Officer of Crédit Agricole S.A.
"The Group has published high-level results this quarter, driven by strong revenue growth, despite exceptional taxation. Crédit Agricole S.A. posted record revenues this quarter and high profitability."
This press release comments on the results of Crédit Agricole S.A. and those of Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 62.8% of Crédit Agricole S.A.
All financial data are now presented stated for Crédit Agricole Group, Crédit Agricole S.A. and the business lines results, both for the income statement and for the profitability ratios.
Crédit Agricole Group Group activityThe Group's commercial activity during the quarter continued at a steady pace across all business lines, with a good level of customer capture. In the first quarter of 2025, the Group recorded +550,000 new customers in retail banking. More specifically, over the year, the Group gained +433,000 new customers for Retail Banking in France and 117,000 new International Retail Banking customers (Italy and Poland).
At 31 March 2025, in retail banking, on-balance sheet deposits totalled €835 billion, up +1.3% year-on-year in France and Italy (+1.6% for Regional Banks and LCL and -2.1% in Italy). Outstanding loans totalled €881 billion, up +1.0% year-on-year in France and Italy (+1.0% for Regional Banks and LCL and +1.6% in Italy). The upturn in home loan production continued in France compared to the low point observed at the beginning of 2024, without confirming the end-of-year momentum, partly explained by the seasonal effect, recording an increase of
+37% for the Regional Banks and +46% for LCL compared to the first quarter of 2024, and -4.3% and -34% respectively compared to the fourth quarter of 2024. Home loan production by CA Italia is high and up +19% compared with the first quarter of 2024. The property and casualty insurance equipment rate1 rose to 44.2% for the Regional Banks (+0.8 percentage points compared to the first quarter of 2024), 28.0% for LCL (+0.2 percentage point) and 20.3% for CA Italia (+1.0 percentage point).
In asset management, quarterly inflows remained strong at +€31.1 billion, fuelled by strong medium/long-term assets, excluding JVs (+€37 billion). In insurance, savings/retirement gross inflows rose to a record €10.8 billion over the quarter (+27% year-on-year), with the unit-linked rate in production staying at a high 34.3%. Net inflows were positive at +€4 billion, growing for both euro-denominated and unit-linked contracts. The strong performance in property and casualty insurance was driven by price changes and portfolio growth (16.8 million contracts at end-March 2025, +5% year-on-year). Assets under management totalled €2,878 billion, up +8.7% in the year for all three segments: asset management rose +6.2% over the year to €2,247 billion; life insurance was up +5.2% to €352 billion; and wealth management (Indosuez Wealth Management and LCL Private Banking) increased
+41.3% year-on-year to €278 billion, notably with the positive impact of the consolidation of Degroof Petercam (€69 billion in assets under management consolidated in the second quarter of 2024).
Business in the SFS division decreased. At CAPFM, consumer finance outstandings increased to €120.7 billion, up +5.6% compared with the end of March 2024, with car loans representing 54%2 of total outstandings, while new loan production decreased slightly, by -6.4% compared with end-March 2024, mainly due to the economic context negatively impacting the automotive market in Europe and China. Regarding Crédit Agricole Leasing & Factoring (CAL&F), production of lease financing outstandings was up +5.7% compared to March 2024 to
€20.5 billion, with a particularly strong contribution from property leasing and renewable energy financing in France.
Large Customers again posted record revenues for the quarter in Corporate and Investment Banking. Capital Markets and Investment Banking was driven by all activities, supported by high volatility, while Financing activities reaped the benefits of growth in commercial activities. Asset Servicing recorded a high level of assets under custody of €5,467 billion and assets under administration of €3,575 billion (+9% and +4.7%, respectively, compared with the end of March 2024), with good sales momentum and positive market effects over the year.
1 Car, home, health, legal, all mobile phones or personal accident insurance.
2 CA Auto Bank, automotive JVs and automotive activities of other entities
Continued support for the energy transitionThe Group is continuing the mass roll-out of financing and investment to promote the transition. The Crédit Agricole Group increased its exposure to low-carbon energy financing3 by +141% between the end of 2020 and the end of 2024, with €26.3 billion in financing at 31 December 2024. Investments in low-carbon energy4 totalled €6 billion at 31 December 2024.
At the same time, as a universal bank, Crédit Agricole is supporting the transition of all its customers. Thus, outstandings related to the environmental transition5 amounted to €111.7 billion at 31 December 2024, including
€86.7 billion for energy-efficient buildings and €5.3 billion for clean transport and mobility.
In addition, the Group is continuing its exit path from carbon-based energy financing and disclosed its exposure to hydrocarbon extraction project financing6, down to $0.96 billion at the end of 2024, i.e. -30% compared to 2020. The target of a -25% reduction of exposure to oil extraction at the end of 2025 compared to 2020 was greatly exceeded at the end of 2024 and stands at -56%.
3 Low-carbon energy outstandings made up of renewable energy produced by the clients of all Crédit Agricole Group entities, including nuclear energy outstandings for Crédit Agricole CIB.
4CAA outstandings (listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly) and Amundi Transition Energétique.
5 Crédit Agricole Group outstandings, directly or via the EIB, dedicated to the environmental transition according to the Group's internal sustainable assets framework, as of 31/12/2024. Change of method compared with the outstandings reported at 30/09/2024: with the same method, the outstandings at 31/12/2024 would be €115.5 billion.
6 Direct exposure to project financing of hydrocarbon extraction (gross exposure excl. export credit cover).
Group resultsIn the first quarter of 2025, Crédit Agricole Group's net income Group share came to €2,165 million, down
-9.2% compared to the first quarter of 2024.
Credit Agricole Group, Income statement Q1-25 and Q1-2024 | ||||
€m | Q1-25 | Q1-24 | ∆ Q1/Q1 | |
Revenues | 10,048 | 9,525 +5.5% | ||
Operating expenses | (5,992) | (5,589) +7.2% | ||
Gross operating income | 4,056 | 3,936 +3.0% | ||
Cost of risk | (735) | (651) +12.9% | ||
Equity-accounted entities | 75 | 68 +9.5% | ||
Net income on other assets | 4 | (7) n.m. | ||
Change in value of goodwill | - | - n.m. | ||
Income before tax | 3,399 | 3,347 +1.6% | ||
Tax | (1,041) | (755) +37.9% | ||
Net income from discont'd or held-for-sale ope. | (0) | - n.m. | ||
Net income | 2,358 | 2,592 (9.0%) | ||
Non controlling interests | (193) | (208) (7.2%) | ||
Net income Group Share | 2,165 | 2,384 | (9.2%) | |
Cost/Income ratio (%) | 59.6% | 58.7% | +1.0 pp | |
In the first quarter of 2025, revenues amounted to €10,048 million, up +5.5% compared to the first quarter of 2024, driven by favourable results from most of the business lines. Revenues were up in French Retail Banking, while the Asset Gathering division benefited from good business momentum and the integration of Degroof Petercam, the Large Customers division enjoyed a high level of revenues across all of its business lines and the Specialised Financial Services division benefited from a positive price effect, compensating slightly down revenues in international retail banking. Operating expenses were up +7.2% in the first quarter of 2025, totalling
€5,992 million. Overall, Credit Agricole Group saw its cost/income ratio reach 59.6% in the first quarter of 2025, up by +1.0 percentage point. As a result, the gross operating income stood at €4,056 million, up +3.0% compared to the first quarter of 2024.
The cost of credit risk stood at -€735 million, a year-on-year increase of +12.9% compared to the first quarter of 2024. This figure comprises an amount of -€47 million to prudential provisions on performing loans (stages 1 and 2) and an amount of -€677 million for the cost of proven risk (stage 3). There was also an addition of -
€11 million for other risks. The provisioning levels were determined by taking into account several weighted economic scenarios and by applying some flat-rate adjustments on sensitive portfolios. The weighted economic scenarios for the first quarter are the same used for the previous quarter. The cost of risk/outstandings7 reached 27 basis points over a four rolling quarter period and 24 basis points on an annualised quarterly basis8.
Pre-tax income stood at €3,399 million, a year-on-year increase of +1.6% compared to first quarter 2024. This includes the contribution from equity-accounted entities for €75 million (up +9.5%) and net income on other assets, which came to +€4 million over this quarter. The tax charge was -€1,041 million, up +37.9% over the period, with the tax rate this quarter rising by +8.3 percentage points to 31.3%. This increase is related to the
7 The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
8 The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
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Crédit Agricole SA published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 06:03 UTC.
