CREDIT AGRICOLE SA: Crédit Agricole Q3-21 and 9M-21 RESULTS
Crédit Agricole Q3-21 and 9M-21
RESULTS
Record high 9-month-2021
results, continuing the
trend.
Full unwinding of the
switch
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CRÉDIT AGRICOLE GROUP |
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CRÉDIT AGRICOLE S.A. |
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Stated |
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Underlying |
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Stated |
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Underlying |
9M net
income |
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€6,746m+62.2% 9M/9M |
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€6,201m+31.9% 9M/9M |
|
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€4,416m+71.9% 9M/9M |
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€3,962m+37.9% 9M/9M |
Q3 net
income |
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€2,222m+25.7% Q3/Q3 |
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€2,235m+15.6% Q3/Q3 |
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€1,402m+43.5% Q3/Q3 |
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€1,414m+26.7% Q3/Q3 |
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Revenues |
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€8,969m+5.9% Q3/Q3 |
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€8,972m+6.1% Q3/Q3 |
|
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€5,531m+7.4% Q3/Q3 |
|
€5,535m+7.6% Q3/Q3 |
Costs
excl. SRF |
|
-€5,452m+7.0% Q3/Q3 |
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-€5,438m+6.8% Q3/Q3 |
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-€3,259m+9.0% Q3/Q3 |
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-€3,245m+8.6% Q3/Q3 |
GOI |
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€3,516m+4.3% Q3/Q3 |
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€3,535m+5.0% Q3/Q3 |
|
|
€2,272m+5.2% Q3/Q3 |
|
€2,290m+6.2% Q3/Q3 |
Cost
of risk |
|
-€403m-32.3%
Q3/Q3 |
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-€403m-32.3%
Q3/Q3 |
|
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-56.1% Q3/Q3 |
|
-€266m-54.0%
Q3/Q3 |
C/I
ratio (excl. SRF) |
|
60.8%+0.6 pp Q3/Q3 |
|
60.6%+0.4 pp Q3/Q3 |
|
|
58.9%+0.9 pp Q3/Q3 |
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58.6%+0.5 pp Q3/Q3 |
CRÉDIT AGRICOLE S.A. RESULTS DRIVEN
BY THE SURGE IN
REVENUES Stated net income +43.5% Q3/Q3
to €1,402m; +71.9% 9M/9M to €4,416mUnderlying net income: +26.7%
Q3/Q3 to €1,414m; +37.9% 9M/9M to €3,962m
Strong business momentum, 1,311,000 new customers
over 9M-21 in Retail bankingRevenues +4.4% Q3/Q3, +7.3% 9M/9M
excluding scope effect1, +9.1% Q3/Q3-2019Expenses +3.8% Q3/Q3,
+3.4% 9M/9M excluding scope effect1, +7.3% Q3/Q3-2019Gross
operating income +5.3% Q3/Q3, +13.0% 9M/9M excl. scope effect1,
+11.9% Q3/Q3-19Cost/income ratio 57.2% for 9M-21, MPT target
reachedCost of risk 24 bp (annualised quarter basis), coverage
ratio up
PROFITABILITY AND FINANCIAL
POSITION AMONG THE
SECTOR’S BEST IN EUROPE
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CRÉDIT AGRICOLE GROUP |
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CRÉDIT AGRICOLE S.A. |
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Phased-in CET1 |
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17.4% |
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+10
bp Sept/June |
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12.7% |
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+10
bp Sept/June |
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+8.5 pp above SREP requirements |
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+4.8 pp above SREP requirements |
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[1] For the calculation on a like for like
basis, excluded entities for 2021 : Creval, CA Serbia, JV Amundi
Bank of China, Fund Channel, Anatec, Sabadell, CACF NL, So You, Kas
Bank ; excluded entities for 2020 : CA serbia, Via Vita,
IWM Miami and Brazil, CACF NL ; excluded entities for
2019 : CA serbia, CA Romania, Via Vita, IWM Miami and Brazil,
CACF NL [2] Underlying ROTE calculated on
the basis of annualised underlying net income Group share and
annualised IFRIC costs[3] Estimated based on
CET1 level and risk weighted assets at end September 2021; the
impact will be recognised in Q4-21
SHAREHOLDER FRIENDLY REMUNERATION, OVER
TIME
21/09/21: completion of the first share buyback for €559m
05/10/21: launch of the second share buyback for €500m 16/11/21:
full unwinding of the Switch (CET1 impact -60 bp,3 net income
full-year impact €+104m)The 50% cash dividend distribution policy
target will have been respected over the span of the
MTPSTRENGTH OF THE UNIVERSAL CUSTOMER-FOCUSED BANKING
MODEL
Constantly renewed organic growth
potential, enhanced by acquisitions and partnerships, and
by the launch of new
businesses
Launch of CA Mobility, CA CF/CAL&F long-term
vehicle leasing offering in FranceAcquisition of Olinn by CAL&F
to extend the offering to business equipment management
servicesLaunch of a leasing business in Germany
Since 2019: acquisition of
Credito Valtellinese, KAS Bank, GNB Seguros, Sabadell AM; creation
of Amundi Technologies, and of the Amundi – Bank of China joint
venture; partnership agreements signed with Banco Sabadell, Abanca;
expansion of Azqore.
CLIMATE COMMITMENTS
CRÉDIT AGRICOLE GROUP |
|
CRÉDIT AGRICOLE S.A. |
- Commitment of all of the Group's business lines to the
Net Zero initiatives
(Net Zero Banking Alliance, Net Zero Asset Owners’ Alliance)
- No. 1 provider of renewable energy
financing in France
- No. 1 responsible investor in
Europe
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CACIB: +60% exposure to non-carbon energy by
2025Amundi: +€20bn of investments
in funds with a positive impact target by 2025CAA:
X2 investments in renewable energy installations by
2025CACIB: -20% oil production financing by
2025 |
Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors
“The Group, building upon its Raison d’être and its financial
strength, wants to create the conditions for a new model of
prosperity, that will result in progress for all. We will present
our societal commitments for climate, for agriculture and the
agri-food industry, and for social cohesion, on 1 December
2021.”
Philippe
Brassac,Chief Executive Officer
of Crédit Agricole S.A.
“We are reporting excellent results, at all-time highs, in
keeping with previous quarters. Business is strong, driven in
particular by the effectiveness of public measures. The Group’s
Universal Customer-focused Banking model allows for steady revenue
growth and gives us one of the sector’s highest profitability rates
in Europe.”
Crédit Agricole Group
Group activity
Commercial activity in the Group’s business
lines was strong this quarter, reflecting the strength of the
Universal Customer-focused Banking model. Gross customer capture
was especially strong. In the first nine months of 2021, the Group
recorded +1,311,000 new Retail banking customers, 1,202,000 of them
in France (934,000 customers for the Regional Banks) and 109,000 in
Italy, while the customer base continued to grow (+245,000 retail
banking customers). In the third quarter 2021, the Group captured
+405,000 new retail banking customers, 374,000 of them in France
(287,000 for the Regional Banks) and 32,000 in Italy, with the
customer base also growing (+82,000 customers). Loan production in
French retail banking was up significantly, with a +5.2%4 increase
with respect to the third quarter 2019, including +14.5%4 for the
Regional Banks and +45.5%5 for LCL. Premium income from property
and casualty insurance was also up sharply (+15.0% with respect to
the third quarter 2019) while consumer finance production was
stable compared to the same period. The equipment rate at Regional
Banks, LCL and CA Italia has shown a marked increase since end 2019
(+2.0 percentage points, +1.5 percentage points and
+3.4 percentage points respectively) and end 2018
(+6.5 percentage points, +2.8 percentage points and
+5.1 percentage points respectively) to 42.7%, 26.5% and 18.8%
respectively at 30 September 2020.
The potential for organic growth fostered by the
Universal Customer-focused Banking model is constantly renewed, and
is supported ince the beginning of the year by acquisitions and
partnerships that will bring future growth to the universal
bank:
- Credito
Valtellinese: successful takeover bid for CreVal on 23 April 2021
allowing the Group to build a reference banking group in Italy;
consolidation in second quarter 2021
- Lyxor:
acquisition allowing Amundi to become the European leader in ETF
management. Closing expected by end 2021;
- Olinn: Crédit
Agricole Leasing and Factoring announced the acquisition during the
quarter. It is aimed at extending its offering to business
equipment management services.
This growth potential is also supported by the
launch of new businesses:
- Azqore, a
subsidiary of Indosuez Wealth Management, signed an agreement with
Société Générale in January 2021 to perform the back-office
operations and a large percentage of the IT services
internationally for the private bank Société Générale;
- Amundi
Technologies, a technology services business line created by Amundi
in 2020 with targeted revenues of €150 million by 2025;
- CA Mobility, a
joint offering between CA Consumer Finance and CAL&F for
long-term vehicle leasing for individuals and SMEs, launched this
quarter in France;
- Launch this
quarter of a leasing business in Germany through the creation of a
marketplace.
Group results
In the third quarter of
2021, Crédit Agricole Group’s stated
net income Group share reached
€2,222 million versus
€1,769 million in the
third quarter of 2020, a rise of +25.7%. This
quarter, specific items generated a net negative impact of
-€12 million on net income Group share.
The specific items recorded
this quarter include recurring volatile accounting items in
revenues, such as the DVA (Debt Valuation Adjustment, i.e. gains
and losses on financial instruments related to changes in the
Group’s issuer spread) amounting to +€3 million in net income
Group share and hedges on the Large customers loan book for
-€4 million in net income Group share. The other factors to be
added to these recurring items are presented below: the
classification of the Serbian assets held for sale (revenue impact
of -€2 million, expenses of -€1 million, net income from
assets held for sale of -€1 million, i.e. a total impact on
net income Group share of -€4 million), CreVal integration
costs (-€9 million in operating expenses, -€4 million in
net income Group share), and provisions for restructuring costs
related to the Turbo project at CACEIS (-€5 million in
expenses, -€3 million euros in net income Group share).
Specific items in third quarter 2020 represented
an impact on net income Group share of -€165 million and
included the reclassification of entities held for sale (CACF NL,
Bankoa, Nacarat) for a total impact on net income Group share of
-€170 million, the integration costs of entities recently
acquired by CACEIS (Kas Bank and Santander Securities Services) for
-€2 million in net income Group share, and recurring
accounting volatility items which had a net positive impact of
+€7 million on net income Group share.
Excluding these specific items, Crédit
Agricole Group’s underlying
net income Group share6 in third
quarter 2021 amounted to
€2,335 million, a year-on-year increase of
+15.6%. The quarterly increase in underlying net income Group share
was +€301 million, driven by the quarterly increase in gross
operating income which came in at €167 million, as well as the
positive effect of a lower cost of risk amounting to
+€193 million.
Crédit Agricole Group – Stated and underlying results, Q3-21 and
Q3-20
€m |
Q3-21stated |
Specific items |
Q3-21underlying |
Q3-20stated |
Specific items |
Q3-20underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
|
|
|
|
|
|
|
|
|
Revenues |
8,969 |
(4) |
8,972 |
8,468 |
8 |
8,460 |
+5.9% |
+6.1% |
Operating
expenses excl.SRF |
(5,452) |
(15) |
(5,438) |
(5,096) |
(4) |
(5,093) |
+7.0% |
+6.8% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross operating income |
3,516 |
(18) |
3,535 |
3,372 |
4 |
3,368 |
+4.3% |
+5.0% |
Cost of
risk |
(403) |
- |
(403) |
(596) |
0 |
(596) |
(32.3%) |
(32.3%) |
Equity-accounted entities |
107 |
- |
107 |
88 |
- |
88 |
+22.2% |
+22.2% |
Net income on
other assets |
(14) |
1 |
(15) |
(6) |
- |
(6) |
x 2.4 |
x 2.6 |
Change in
value of goodwill |
(2) |
- |
(2) |
- |
- |
- |
n.m. |
n.m. |
Income before tax |
3,205 |
(17) |
3,222 |
2,858 |
4 |
2,854 |
+12.1% |
+12.9% |
Tax |
(792) |
5 |
(797) |
(743) |
(0) |
(742) |
+6.6% |
+7.3% |
Net income
from discont'd or held-for-sale ope. |
(3) |
(1) |
(1) |
(170) |
(170) |
(0) |
(98.4%) |
x 3.8 |
Net income |
2,410 |
(14) |
2,424 |
1,945 |
(166) |
2,111 |
+23.9% |
+14.8% |
Non
controlling interests |
(187) |
2 |
(189) |
(177) |
1 |
(177) |
+6.1% |
+6.7% |
Net income Group Share |
2,222 |
(12) |
2,235 |
1,769 |
(165) |
1,934 |
+25.7% |
+15.6% |
Cost/Income ratio excl.SRF
(%) |
60.8% |
|
60.6% |
60.2% |
|
60.2% |
+0.6 pp |
+0.4 pp |
In third quarter 2021, thanks to steady momentum
across all business lines, underlying revenues
increased +6.1% compared to third quarter 2020 to come in at
€8,972 million. Excluding scope effect7, underlying revenues
were up +3.9% from third quarter 2020 and +6.1% from third quarter
2019. The Asset gathering division posted excellent revenue growth
of +10.7% (+€152 million), driven by increased management fee
and commission income in particular linked to positive market
conditions. In insurance, very high financial revenues, mostly
following the reduced-tax disposal of securities, allowed for an
additional provisioning of the Policyholder Participation Reserve
(PPE) as part of prudent financial margin management. Revenues for
the Large customers division were down -2.3% from third quarter
2020 (-€37 million), with revenues in capital markets
normalising in a context of low volatility. This impact was
partially offset by strong growth in structured finance and
commercial banking revenues and fee and commission income from
Asset servicing which benefited from a positive market effect.
Revenues for Specialised financial services were up +13.8%
(including the reclassification of CACF NL out of held-for-sale
operations8), i.e. +5.5% excluding scope effect, with CA CF posting
its best quarterly result for the past two years and CAL&F
benefiting from outstanding leasing and factoring business. In
French retail banking, the Regional Banks recorded revenue growth
of +3.0% compared to third quarter 2020, with LCL recording revenue
growth of +5.1%. In International retail banking, CA Italia
recorded strong revenue growth this quarter (+32.6% or +1.1%
excluding the scope effect related to the consolidation of Credito
Valtellinese since second quarter 20219). This was due to strong
momentum in fee and commission income from managed savings and
insurance. International retail banking excluding Italy posted a
recovery in revenues of +4.8% (+27% excluding Serbia, the entity
having been reclassified this quarter as an asset held for sale),
driven mainly by brisk business at CA Poland and CA Ukraine.
Underlying operating expenses excluding
the contribution to the Single Resolution Fund (SRF) stood
at €5,438 million in third quarter 2021, a year-on-year rise
of +6.8%. All divisions reported an increase in expenses related
primarily to a scope effect. Excluding this effect7, expenses were
up +3.7% from third quarter 2020 and +2.0% from third quarter 2019.
The French retail banking division posted a +1.8% rise in expenses
from third quarter 2020 to €2,712 million, largely due to an
increase in discretionary and compulsory profit sharing. The
International retail banking division posted a +20.5% increase in
expenses following the integration of CreVal, or stable expenses
excluding scope effect. Specialised financial services recorded a
rise of +28.2%, or +5.2% excluding CACF NL. Expenses in the Large
customers division showed a moderate increase over the period of
+3.3% (+€28 million) as a result of investments and
development of the workforce to support business growth. The Asset
gathering division saw its expenses rise +12.1% related to a scope
effect (integration of Sabadell AM, creation of Amundi bank of
China and Fund Channel) and ongoing investments, particularly for
the expansion of Amundi Technologies.
Overall, the Group posted a stable underlying
cost/income ratio excluding SRF of
+0.4 percentage points, taking it to 60.6% in third
quarter 2021.
Underlying gross operating
income was therefore up +5.0% year-on-year to
€3,535 million. Excluding scope effect7, gross operating
income excluding SRF was up +4.2% from third quarter 2020 or +12.8%
from third quarter 2019.
The cost of credit risk fell to
-€403 million (including -€116 million in Stage 1 and 2
cost of risk relative to performing loans and -€287 million in
Stage 3 cost of risk) versus -€596 million in third quarter
2020 and -€445 million in second quarter 2021, i.e. a decline
of -32% from third quarter 2020 and -9% from second quarter 2021.
The cost of risk relative to performing loans was down -51%
compared to second quarter 2021, a trend seen across all divisions
with the exception of LCL (due to changes in the portfolio), and
was marked for Regional Banks (-59% fall in the cost of risk
relative to performing loans to -€88 million in third quarter
2021, versus -€214 million in second quarter 2021).
Provisioning for proven cost of risk rose +67% to
-€287 million in third quarter 2021 from -€172 million in
second quarter 2021. However, compared to third quarter 2020 it was
down by -33%. The increase from second quarter 2021 was notable at
the Regional Bank level (a -€52 million addition versus a
+€27 million reversal in the previous quarter) and at the
Financing activities level (a -€20 million addition versus a
+€13 million reversal in the previous quarter). Asset quality
remained satisfactory: the doubtful loan ratio was 2.2% at end
September 2021, down by just -0.1 percentage point compared to June
2021, while the coverage ratio improved by +1.6 percentage points
to reach 87.1% at end September 2021. Loan loss reserves amounted
to €20.4 billion at end September 2021, of which 35% was
for performing loans (Stages 1 and 2). Loan loss reserves were up
slightly by +€0.1 billion compared to June 2021. The context
and uncertainties related to global economic conditions were taken
into account and the expected effect of public measures was
incorporated to anticipate future risks. Provisioning levels were
established taking into account several weighted economic
scenarios and applying flat-rate adjustments for the
retail banking portfolios and specific additions for customers in
sensitive sectors. Several weighted economic scenarios are used to
define provisioning for performing loans. These have bee updated
since the issuance of the 2020 Universal Registration Document and
include a more favourable scenario (French GDP at +5.9% in 2021 and
+5.3% in 2022) and a less favourable scenario (French GDP at +2.7%
in 2021 and +3.3% in 2022). They have nevertheless not been updated
in the third quarter 2021.
The cost of risk relative to
outstandings10 over four
rolling quarters continued to normalise, reaching 23 basis
points (a -2 basis point drop compared to second quarter
2021). It reached 16 basis points on an annualised quarterly
basis11 (versus 18 basis points in second quarter 2021).
Underlying pre-tax income stood at
€3,222 million, a year-on-year increase of +12.9%. In
addition to the changes explained above, underlying pre-tax income
included the contribution from equity-accounted entities in the
amount of €107 million (up +22.2%, driven by the strong
performance of equity-accounted entities at Amundi and CA Consumer
Finance) and net income on other assets, which stood at
-€15 million this quarter versus -€6 million in third
quarter 2020. The underlying tax charge was
up +7.3% over the period, driven by the increase
in underlying pre-tax income and offset by an underlying tax
rate of 25.6% — down from third quarter 2020 (26.8%). In fact, the
tax rate is never representative on a quarterly basis.
Underlying net income before
non-controlling interests was up +14.8% to
€2,424 million. Non-controlling interests rose +6.7%. Lastly,
underlying net income Group share was
€2,235 million, significantly higher than in third quarter
2020 (+15.6%).
Crédit Agricole Group – Stated and underlying results,9M-2021
and 9M-2020
€m |
9M-21stated |
Specific items |
9M-21underlying |
9M-20stated |
Specific items |
9M-20underlying |
∆ 9M/9Mstated |
∆ 9M/9Munderlying |
Revenues |
27,322 |
(28) |
27,350 |
24,930 |
(444) |
25,375 |
+9.6% |
+7.8% |
Operating
expenses excl.SRF |
(16,493) |
(50) |
(16,443) |
(15,680) |
(78) |
(15,602) |
+5.2% |
+5.4% |
SRF |
(479) |
185 |
(664) |
(562) |
- |
(562) |
(14.7%) |
+18.2% |
Gross operating income |
10,350 |
106 |
10,244 |
8,688 |
(523) |
9,211 |
+19.1% |
+11.2% |
Cost of
risk |
(1,410) |
(25) |
(1,385) |
(2,733) |
- |
(2,733) |
(48.4%) |
(49.3%) |
Equity-accounted entities |
299 |
5 |
294 |
256 |
- |
256 |
+17.0% |
+15.0% |
Net income on
other assets |
(37) |
(15) |
(22) |
78 |
- |
78 |
n.m. |
n.m. |
Change in
value of goodwill |
378 |
378 |
0 |
(3) |
- |
(3) |
n.m. |
n.m. |
Income before tax |
9,580 |
449 |
9,131 |
6,286 |
(523) |
6,809 |
+52.4% |
+34.1% |
Tax |
(2,193) |
179 |
(2,372) |
(1,531) |
148 |
(1,679) |
+43.2% |
+41.2% |
Net income
from discont'd or held-for-sale ope. |
2 |
3 |
(1) |
(171) |
(170) |
(1) |
n.m. |
+39.1% |
Net income |
7,389 |
631 |
6,758 |
4,584 |
(545) |
5,128 |
+61.2% |
+31.8% |
Non
controlling interests |
(642) |
(86) |
(556) |
(424) |
4 |
(428) |
+51.5% |
+30.0% |
Net income Group Share |
6,746 |
545 |
6,201 |
4,159 |
(541) |
4,700 |
+62.2% |
+31.9% |
Cost/Income ratio excl.SRF
(%) |
60.4% |
|
60.1% |
62.9% |
|
61.5% |
-2.5 pp |
-1.4 pp |
In the first nine months of
2021, stated net income Group share amounted to
€6,746 million, compared with €4,159 million in the first
nine months of 2020, an increase of +62.2%.
Specific items in the first nine months
of 2021 had a positive impact of
+€545 million on stated net income Group
share. In addition to the third quarter items already mentioned
above, first half 2021 items had a positive impact of
+€557 million and also corresponded to recurring accounting
volatility items, i.e. the DVA for +€1 million, hedges of the
Large customers loan book for -€11 million, changes in
provisions for home purchase savings plans for -€6 million,
and the overpayment of contributions to the SRF for financial years
2016 to 2020 for +€185 million. These recurring items do not
include the following specific items for first half 2021: the
recording of preliminary net badwill on CreVal for
+€321 million in net income Group share, CreVal’s acquisition
costs for -€9 million, additional provisioning for CreVal’s
performing loan outstandings for -€21 million, Affrancamento
gains within the Asset gathering, International retail banking and
Specialised financial services business lines for a total of
+€116 million, transformation costs related to the LCL New
Generation Network project, additional branch groupings at LCL and
the Turbo project, the CACEIS transformation and development plan
for a total of -€18 million, the costs of integrating Kas Bank
and S3 by CACEIS for -€2 million and the planned disposal of
Wealth management activities in Miami and Brazil for
+€2 million.
Specific items in the first nine months
of 2020 had a negative impact of -€541 million
on net income Group share.
Excluding these specific items,
underlying net income Group share
reached €6,201 million, up
+31.9% compared to the first nine months of
2020.
Underlying revenues were
up +7.8% compared to the first nine months of
2020, and +6.7% excluding scope effect7.
Underlying operating expenses
excluding SRF were up +5.4% compared to the first nine months of
2020 (+4.2% excluding scope effect), generating a positive jaws
effect. The cost/income ratio excluding SRF for the first half of
the year was 60.1%, down -1.4 percentage point compared to the
first nine months of 2020. Underlying gross operating
income totalled €10,244 million, up +11.2% compared
to the first nine months of 2020 (+10.7% excluding scope effect7
excluding SRF).
Lastly, cost of risk was down
sharply (-49.3% to -€1,385 million versus -€2,733 million
for the first nine months of 2020).
Regional Banks
Regional Banks’ activity was dynamic in third
quarter 2021. Gross customer capture was up
sharply (+934,000 customers since the beginning of the year), and
the customer base grew by an additional +196,000 customers. The
auto/home/health insurance12 equipment rate also
increased (+1.2 percentage points compared to end September 2020),
reaching 42.7% at end September 2021. Mobile app use
rates13 reached 69.5% and were up +3.3 percentage points
compared to September 2020 (+7.2 percentage points compared to
September 2019). Outstanding loans reached
€588 billion at end September 2021, up +6.3% compared to end
September 2020 (of which +7.5% for home loans and +6.9% for
corporates), driven by dynamic loan production
that quarter (+14.5%14 compared to third quarter 2020, of which
+15.9%14 in specialised markets15). On-balance sheet
deposits rose significantly (+7.7% since end September
2020), driven by demand deposits (+11.8%) and passbooks (+11.6%),
as did off-balance sheet deposits, which were up
+6.2% since the same period (of which +3.6% in life insurance). As
a result, total customer assets increased by +7.2%
compared to end September 2020 to reach €826 billion at end
September 2021.
In the
third quarter 2021, underlying
revenues of the Regional Banks amounted to
€3,408 million, a year-on-year increase of +3.0%. This
increase was driven by both the net interest margin (+1.7%) and
fees and commissions income (+4.6%), which were dynamic in
insurance and account management/payment instruments.
Underlying operating expenses excluding SRF
(Single Resolution Fund) were under control (+1.5% year-on-year)
and totalled €2,146 million in third quarter 2021. As a
result, the underlying cost/income ratio (excl.
SRF) improved (-1.0 percentage point compared to third
quarter 2020) to 63.0% this quarter, and underlying gross
operating income was up year-on-year (+5.8%). The
cost of risk amounted to -€136 million16, up
(x6.1) compared to a weak third quarter 2020 (€22 million).
The non performing
loans ratio
remains under control (1.6% at end September 2021 compared to 1.7%
at end June 2021) and the coverage ratio remains
high (103.5% at end September 2021 compared to 102.3% at end June
2021). The contribution from taxes was down this
quarter compared with third quarter 2020 (-15.7%), mainly due to
the lower current tax rate. All in all, the contribution of the
Regional Banks to underlying net income Group
share reached €790 million in third quarter 2021, up
+1.9% year-on-year.
In the first nine months of
2021, underlying revenues reached
€10,415 million, increasing +5.7% compared to the first nine
months of 2020. Underlying operating expenses excluding
SRF increased by +4.0% compared to the first nine months
of 2020, mainly due to higher employee expenses (notably
profit-sharing). As a result, the underlying cost/income
ratio excluding SRF improved (-1.0 percentage point
compared to the first nine months of 2020, to 63.8%), and
underlying gross operating income rose sharply
(+8.4% compared to the first nine months of 2020). The underlying
cost of risk decreased by -24.1% since the first
nine months of 2020 and reached -€476 million. Finally, the
contribution of the Regional Banks to the underlying net
income Group share reached €2,186 million in the
first nine months of 2021, up sharply (+24.2%) compared to the
first nine months of 2020.
The performance of the other
Crédit Agricole Group business lines is described in
detail in the section of this press release on
Crédit Agricole S.A.
Crédit Agricole S.A.
Robust commercial activity, customer
capture momentum
- Dynamic
medium-long-term net inflows (+15.0%), driven by active management
in all asset classes (+€11.1 billion), and net insurance
inflows (+€1.1 billion, driven by unit-linked products:
+1.4 billion), continued business momentum in property and
casualty insurance (+5.6% Q3/Q3) and personal protection (+7.4%
Q3/Q3)
- Excellent
performance of Financing activities (+13.0 Q3/Q3, both in
structured finance and commercial banking against a backdrop of
normalisation of post-crisis market conditions. Leading position in
syndicated loans (no. 1 France, no. 3 EMEA); high volume of flows
in Asset servicing.
- Commercial
production at pre-crisis level at CA Consumer Finance, strong
leasing and factoring activity. Acquisition of Olinn to extend
CAL&F’s offering, launch of CA Mobility, a CA Consumer
Finance/CAL&F long-term leasing offering for individuals and
SMEs in France.
- Strong growth in
loan production in all markets at LCL (+45.5% Q3/Q3); positive
sales momentum at CA Italia and integration of CreVal into the
Group’s universal banking model. Property and casualty insurance
equipment up (+2.8 pp at LCL and +5.1 pp at CA Italia compared to
end 2018).
- Crédit Agricole
S.A. Retail banking customer capture over nine months +377,000
customers17
Underlying income growth (+26.7% Q3/Q3,
+37.9% 9M/9M) driven by revenues
- Stated income
+43.5% Q3/Q3 and +71.9% 9M/9M
- Underlying
revenues up (+7.6% Q3/Q3, and excluding scope effect : +4.4% Q3/Q3
and 7.3% 9M/9M), thanks to sustained activity, as well as a
positive market effect in asset management; steady generation of
growing revenues over the last five years, increase in the share of
fee and commission income in revenues
- Increase in
expenses (+8.6% Q3/Q3, and excluding scope effect : +3.8% Q3/Q3 and
3.4% 9M/9M). Positive jaws effect over 9M. Increase in expenses
excluding this effect notably due to the increase in variable
compensation linked to activity and to IT investments.
- Operating
efficiency: cost/income ratio at 58.6% Q3-21 and 57.2% 9M-21, MTP
targets reached in Asset gathering, Large customers, and at
LCL
- Increase in
gross operating income (+6.2% Q3/Q3, and excluding scope effect18 :
+5.3% Q3/Q3 and +13.0% 9M/9M)
- Stable non
performing loans ratio Q3/Q2, sustained increase in coverage ratio.
Cost of risk over outstandings at 24 bp annualized.
- Underlying ROTE
at 13.1%19 over 9M-21, well above the average of the 10 major
European banks that publish the figure for the past 18
quarters
Very robust capital position,
shareholder friendly remuneration policy over
time
- CET1 CASA 12.7%,
4.8 pp above SREP requirements, +0.1 pp Q3/Q1; nine-month dividend
provision of €0.61 based on a 50% distribution policy.
- Final stage in
the simplification of Crédit Agricole S.A.’s capital structure
- Reminder:
01/03/2021: unwinding of 15% of the insurance Switch
- 21/09/21:
completion of the first tranche of a €559m share buyback
- 05/10/21: launch
of the second tranche of a €500m share buyback
- 16/11/21: full
unwind of the Switch (CET1 impact ~-60 bp, net income Group share
full-year impact €104m)
- Impact of these
transactions on 2021 of approximately +1% on net earnings per
share20
- The 50% cash
dividend distribution policy will have been respected over the span
of the MTP
Crédit Agricole S.A.’s Board of Directors,
chaired by Dominique Lefebvre, met on 9 November 2021 to examine
the financial statements for third quarter 2021.
Results
Crédit Agricole S.A. – Stated and underlying results, Q3-21 and
Q3-20
€m |
Q3-21stated |
Specific items |
Q3-21underlying |
Q3-20stated |
Specific items |
Q3-20underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
|
|
|
|
|
|
|
|
|
Revenues |
5,531 |
(4) |
5,535 |
5,151 |
8 |
5,143 |
+7.4% |
+7.6% |
Operating
expenses excl.SRF |
(3,259) |
(14) |
(3,245) |
(2,991) |
(4) |
(2,988) |
+9.0% |
+8.6% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Gross
operating income |
2,272 |
(18) |
2,290 |
2,160 |
4 |
2,156 |
+5.2% |
+6.2% |
Cost of
risk |
(266) |
- |
(266) |
(605) |
(28) |
(577) |
(56.1%) |
(54.0%) |
Equity-accounted entities |
103 |
- |
103 |
98 |
- |
98 |
+4.6% |
+4.6% |
Net income on
other assets |
(8) |
1 |
(9) |
(3) |
- |
(3) |
x 2.7 |
x 3.1 |
Change in value
of goodwill |
0 |
- |
0 |
- |
- |
- |
n.m. |
n.m. |
Income
before tax |
2,101 |
(17) |
2,118 |
1,650 |
(23) |
1,674 |
+27.3% |
+26.6% |
Tax |
(470) |
5 |
(474) |
(346) |
8 |
(354) |
+35.9% |
+33.9% |
Net income from
discont'd or held-for-sale ope. |
(3) |
(1) |
(1) |
(125) |
(124) |
(0) |
n.m. |
n.m. |
Net
income |
1,628 |
(14) |
1,642 |
1,180 |
(139) |
1,319 |
+38.0% |
+24.5% |
Non controlling
interests |
(226) |
2 |
(229) |
(203) |
1 |
(204) |
+11.4% |
+12.3% |
Net
income Group Share |
1,402 |
(12) |
1,414 |
977 |
(139) |
1,115 |
+43.5% |
+26.7% |
Earnings per
share (€) |
0.43 |
(0.00) |
0.43 |
0.32 |
(0.05) |
0.36 |
+35.2% |
+18.4% |
Cost/Income ratio excl. SRF (%) |
58.9% |
|
58.6% |
58.1% |
|
58.1% |
+0.9 pp |
+0.5 pp |
Net
income Group Share excl. SRF |
1,402 |
(12) |
1,414 |
977 |
(139) |
1,115 |
+43.5% |
+26.7% |
In the
third quarter 2021,
Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,402 million, an increase of +43.5%, versus
€977 million in third quarter 2020.
The specific items recorded
this quarter include recurring volatile accounting items in
revenues, such as the DVA (Debt Valuation Adjustment, i.e. gains
and losses on financial instruments related to changes in the
Group’s issuer spread) amounting to +€3 million in net income
Group share and hedges on the Large customers loan book for
-€4 million in net income Group share. The other factors to be
added to these recurring items are presented below: acquisition
costs of Credito Valtellinese for -€4 million in net income
Group share, the reclassification of CA Serbia as an asset held for
sale (IFRS 5) for an impact of -€4 million in net income
Group share and the provisions for restructuring costs in the
context of the Turbo project, CACEIS transformation and development
plan for -€5 million in expenses and -€3 million in net
income Group share. In third quarter 2020, specific items had a net
negative impact of -€139 million on net income Group share,
and they included recurring accounting volatility items, namely DVA
amounting to €14 million, the hedge on the Large customers
loan book amounting to -€5 million, changes in the provision
for home purchase savings amounting to -€3 million, the costs
of the integration of Kas Bank/S3 amounting to -€2 million,
the activation of the Switch Insurance amounting to
-€19 million, as well as the downgrading under IFRS 5 of
CACF NL, which broke down as follows: -€55 million in goodwill
impairment and -€69 million in IFRS 5 treatment.
Excluding these specific items, the
underlying net income Group share21 reached
€1,414 million, up sharply by +26.7% compared
to third quarter 2020, thanks in particular to sustained activity
in all businesses, continued positive market effects and a
reduction in the cost of risk.
In third quarter 2021, underlying
revenues reached €5,535 million, up +7.6% compared to
third quarter 2020, and +4.4% like-for-like22. For the past five
years, Crédit Agricole S.A.’s quarterly revenues have been growing
continuously.
Revenues in the Asset gathering division (+11.3%
compared to third quarter 2020) were up, thanks in particular to
dynamic management fee and commission income that benefited from a
positive market effect in Asset management and despite prudent
externalising of the financial margin in Insurance. Revenues in
Large customers were down (-2.4%) compared to third quarter 2020,
against a backdrop of normalisation of revenues in capital markets
due to low volatility and despite strong growth in revenues in
structured finance and commercial banking, and a positive market
effect on fee and commission income in Asset servicing. In the
Specialised financial services division, revenues rose sharply
(+13.8% compared to third quarter 2020, +5.5% excluding CACF NL).
CA Consumer Finance’s23 revenues were at their highest this quarter
thanks to the momentum from the activity, and business was dynamic
in Leasing and Factoring. Retail banking revenues rose +12.0%
compared to third quarter 2020 and +5.1% like-for-like24, excluding
the impact of the consolidation of Credito Valtellinese at Crédit
Agricole Italia and excluding Serbia, which were driven by both
interest margins and fee and commission income at LCL and by
dynamic fee and commission income at Crédit Agricole Italia.
Corporate Centre division revenues were stable compared to third
quarter 2020.
Underlying operating expenses excluding
SRF rose (+8.6%) compared to third quarter 2020 to
€3,245 million in third quarter 2021. At constant scope,25
this increase is reduced to +3.8% compared to 2020, for an increase
in expenses of +€114 million driven by the increase in
variable compensation (50% of the increase; approximately
€50 million), investments and IT costs (30% of the increase;
approximately €35 million), other employee expenses (20% of
the increase; approximately €30 million) and other
miscellaneous expenses (a decrease of approximately
€-10 million). The cost/income ratio26 excluding SRF was low
at 58.6%, but stable (+0.5 percentage points) compared to third
quarter 2020. Like-for-like, Crédit Agricole S.A. thus recorded a
positive jaws effect of 0.6 percentage points in third quarter
2021. The cost/income ratio targets26 excluding SRF of the
Medium-Term Plan were already reached in Asset gathering (MTP
target <48%; Q3-21 at 47.0%; 9M-21 at 46.1%), Large customers
(MTP target <57%; Q3-21 at 58.6%; 9M-21 at 56.7%) and LCL (MTP
target <66%; Q3-21 at 60.6%; 9M-21 at 61.3%). In the Asset
gathering division, operating expenses excluding SRF were up +12.1%
due to the increase in expenses in asset management (+18.7%
compared to third quarter 2020), which includes continued
development investments and provisioning of variable compensation,
and in the insurance business (+3.9% compared to third quarter
2020) due to business development investments and higher employee
expenses. In the Large customers division, operating expenses
excluding SRF were up +3.3% compared to third quarter 2020 due to
investments and staffing changes accompanying corporate and
investment banking activity. The Specialised financial services
division saw its expenses increase by +28.2% compared to third
quarter 2020 and by +5.2% excluding the impact of CACF NL, in line
with the increase in activity. Retail banking’s operating expenses,
excluding SRF, rose by +9.0% compared to third quarter 2020.
Excluding the scope effect27, expenses rose by a limited +2.0% in
the division, with a contained increase at LCL (+3.0% compared with
third quarter 2020) and a decline at Crédit Agricole Italia (-0.2%
on a like-for-like basis compared with third quarter 2020).
Corporate Centre expenses decreased by -€19 million compared
to third quarter 2020.
Underlying gross operating
income thus increased by +6.2% compared to third quarter
2021 to reach €2,290 million and excluding the scope effect28
the increase was +5.3%. By business, gross operating income grew
compared to third quarter 2020 in the Asset gathering division
(+10.6%), Specialised financial services (+1.2%) and French and
International retail banking (+16.9%), with the Large customers
division seeing a decline (-9.5%) compared to an exceptional third
quarter 2020, but an increase of +5.8% compared to third quarter
2019.
As at 30 September 2021, risk indicators confirm
the high quality of Crédit Agricole S.A.’s assets
and risk coverage level. The diversified loan book is
mainly geared towards home loans (28% of gross outstandings) and
corporates (44% of Crédit Agricole S.A. gross outstandings). The
doubtful loan ratio was still low at 3.1% (down -0.1 percentage
point compared to June 2021), and the coverage ratio29 was high, at
75.4% and up +1.8 percentage points for the quarter. Loan
loss reserves amounted to €10.4 billion for Crédit
Agricole S.A., a +€0.1 billion increase from end June 2021. Of
these loan loss reserves, 26% are for performing loan provisioning.
Several weighted economic scenarios are used to define provisioning
for performing loans. These have been updated since the issuance of
the 2020 Universal Registration Document and include a more
favourable scenario (French GDP at +5.9% in 2021 and +5.3% in 2022)
and a less favourable scenario (French GDP at +2.7% in 2021 and
+3.3% in 2022). They have nevertheless not been updated in the
third quarter 2021.
The cost of risk was down by
-4% compared to second quarter 2021 and down by -54% compared to
third quarter 2020. It amounted to -€266 million versus
-€254 million in second quarter 2021 and -€577 million in
third quarter 2020 respectively. The expense of
-€266 million in third quarter 2021 consists of the
provisioning for performing loans (Stages 1&2) for
-€27 million (versus an addition of -€17 million in
second quarter 2021 and -€165 million in
third quarter 2020) and the provisioning for proven risks
(Stage 3) for -€234 million (versus
-€199 million in second quarter 2021 and -€425 million in
third quarter 2020). For the first nine months of 2021,
the cost of credit risk relative to outstandings over a rolling
four-quarter period30 was 33 basis points (down -8 basis
points compared to second quarter 2021) and 24 basis points on an
annualised quarterly basis31 (stable compared to second quarter
2021).
The decrease is pronounced in CA-CF (-22.4%
where it reached -€92 million versus -€119 million in the
second quarter 2021 and -€127 million in the third quarter
2020) and at LCL (-5% where it reached -€41 million versus
-€43 million in the second quarter 2021 and -€83 million
in the third quarter 2020).
Provision for cost of risk on Financing
activities was -€13 million, increasing compared to second
quarter 2021 where it was subject to a reversal of
+€35 million but down by -94% compared to third quarter 2020
when it stood at -€225 million. It remained stable this
quarter for CA Italia at -€79 million (down -8% compared to
third quarter 2020).
Asset quality remains good with a non performing
loans ratio for Crédit Agricole S.A. of 3.1%, down by -0.1
percentage points since June 2021, and a coverage ratio of 75.4%,
up by +1.8 percentage points compared to June 2021. By
division, this trend is confirmed: Financing activities showed a
doubtful loan ratio of 2.9%, down (-0.1 percentage point compared
to June 2021) ; and a higher coverage ratio at 71.5% (+4.5
percentage points compared to June 2021), CA Consumer Finance
posted a doubtful loan ratio of 5.7%, down -0.6 percentage point
compared to June 2021 and an increased coverage ratio of 85.3%, up
+3.7 percentage points compared to June 2021, CA Italia presented a
doubtful loan ratio of 6.3% at end September 2021, down -0.1
percentage point compared to June 2021 and a coverage ratio of
69.3%, up +0.8 percentage point compared to June 2021, the LCL non
performing loans ratio was down to 1.5% (-0.1 percentage point
compared to June 2021) and the coverage ratio was 83.5% (+1.8
percentage points compared to June 2021)
The underlying contribution of
equity-accounted entities amounted to
€103 million, up +4.6% compared to third
quarter 2020, reflecting the good activity within entities of
consumer finance (€79 million, up +9.7% compared to third
quarter 2020) and asset management (€25 million, up +47.6%
compared to third quarter 2020).
Net income on other assets
stood at -€9 million in third quarter 2021, vs.
-€3 million in third quarter 2020.
Underlying
income32 before tax,
discontinued operations and non-controlling interests was therefore
up +26.6%, at €2,118 million. The
underlying effective tax rate stood at
23.5%(up +1.1 percentage points compared
to third quarter 2020), while the underlying tax charge
increased +33.9% to -€474 million. Net income
before non-controlling interests was up by
+24.5%.
Non-controlling interests stood
at -€229 million in third quarter 2021, a +12.3% increase, in
line with the results of the businesses and due to a change in
third quarter 2020 in Insurance in the recognition methods used for
subordinated debt (RT1) coupons, without impact on net earnings per
share.
Underlying
net income Group share was up by +26.7%
compared to third quarter 2020 at
€1,414 million.
Underlying earnings per share
in third quarter 2021 reached €0.43,
increasing by +18.4% compared to third quarter
2020.
In addition, this quarter Credit Agricole S.A
finalises the simplification of its capital structure, along with
continuing its commitments towards a shareholder friendly
remuneration over time.
As a reminder, on the 1st March 2021, Crédit
Agricole S.A. had proceeded to dismantle 15% of the switch
guarantee, which had a 31 million euros full-year impact on
net income Group share and a -20 basis points CET1 ratio. In
addition, Credit Agricole S.A finalised as of the 21st of September
2021 its first share buy-back operation for 559 million euros.
In the wake of the initiatives announced during
the 4th quarter 2020, Crédit Agricole S.A started on the 5th of
October 2021 its second share buy-back, will can be carried out up
to the 28th of January 2022, for 500 million euros, which should
have an impact of approximately -1433 basis points on CET1. In
addition, on the 16th of November 2021, Credit Agricole S.A will
proceed to the dismantling of the remaining 50% of switch
guarantee. This last operation should lead to an increase in the
full-year net income Group share of 10434 million euros and should
have an impact of approximately -60 basis points on the CET1 ratio.
The 65% dismantling of the switch guarantee together with two share
buyback operations reinforces the earning per share by about
1%35.
Moreover, Credit Agricole S.A reconfirms its
intention36 to pay the remaining €0.4037 related to the 2019
dividend during the 2021 and 2022 dividend payment, which means
that, overall, the 50% in cash distribution policy will have been
respected over the span of MTP period, between 2018 and 2022.
Crédit Agricole S.A. – Stated and underlying results, Q3-21 and
Q3-20
€m |
9M-21stated |
Specific items |
9M-21underlying |
9M-20stated |
Specific items |
9M-20underlying |
∆ 9M/9Mstated |
∆ 9M/9Munderlying |
|
|
|
|
|
|
|
|
|
Revenues |
16,843 |
(29) |
16,872 |
15,248 |
(217) |
15,465 |
+10.5% |
+9.1% |
Operating
expenses excl.SRF |
(9,709) |
(50) |
(9,659) |
(9,226) |
(68) |
(9,158) |
+5.2% |
+5.5% |
SRF |
(392) |
130 |
(522) |
(439) |
- |
(439) |
(10.7%) |
+18.9% |
Gross
operating income |
6,742 |
51 |
6,691 |
5,583 |
(285) |
5,869 |
+20.7% |
+14.0% |
Cost of risk |
(929) |
(25) |
(904) |
(2,068) |
38 |
(2,106) |
(55.1%) |
(57.1%) |
Equity-accounted
entities |
291 |
5 |
286 |
277 |
- |
277 |
+5.2% |
+3.4% |
Net income on
other assets |
(42) |
(15) |
(27) |
84 |
- |
84 |
n.m. |
n.m. |
Change in value
of goodwill |
378 |
378 |
0 |
- |
- |
- |
n.m. |
n.m. |
Income
before tax |
6,440 |
394 |
6,046 |
3,876 |
(248) |
4,124 |
+66.1% |
+46.6% |
Tax |
(1,245) |
179 |
(1,424) |
(692) |
63 |
(756) |
+79.8% |
+88.4% |
Net income from
discont'd or held-for-sale ope. |
2 |
3 |
(1) |
(125) |
(124) |
(1) |
n.m. |
n.m. |
Net
income |
5,197 |
576 |
4,621 |
3,059 |
(309) |
3,368 |
+69.9% |
+37.2% |
Non controlling
interests |
(781) |
(122) |
(660) |
(490) |
4 |
(494) |
+59.4% |
+33.6% |
Net
income Group Share |
4,416 |
454 |
3,962 |
2,568 |
(305) |
2,874 |
+71.9% |
+37.9% |
Earnings
per share (€) |
1.38 |
0.15 |
1.23 |
- |
(0.89) |
0.89 |
n.m. |
+37.7% |
Cost/Income ratio excl.SRF
(%) |
57.6% |
|
57.2% |
60.5% |
|
59.2% |
-2.9 pp |
-2.0 pp |
Net
income Group Share excl. SRF |
4,753 |
454 |
4,299 |
2,961 |
(305) |
3,266 |
+60.5% |
+31.6% |
In the first nine months of
2021, stated net income Group share amounted to
€4,416 million, compared with €2,568 million in the first
nine months of 2020, an increase of +71.9%.
Specific items in the first nine months
of 2021 had a positive impact of
+€454 million on stated net income Group
share. In addition to the third quarter items already mentioned
above, the first-half 2021 items had a positive impact of
+€466 million and also corresponded to the recurring volatile
accounting items, i.e. the DVA for +€1 million, loan book
hedges in the Large customers division for -€11 million, and
changes in the Home Purchase Savings Plan for -€6 million.
Added to this are the following items: the excess SRF contributions
paid for financial years 2016 to 2020 for +€130 million,
wealth management losses in Miami and Brazil in the process of
disposal for +€2 million within the Wealth management
sub-division, costs of integration of Kas Bank and S3 by CACEIS for
-€2 million, transformation costs related to the LCL New
Generation Network project at LCL for
-€9 million, and the Turbo project, the CACEIS transformation
and development plan for -€8 million, the preliminary net
badwill for the initial consolidation of CreVal for
+€285 million, the CreVal acquisition costs -€8 million,
additional provisioning for CreVal performing loan outstandings for
-€19 million, in addition to the Affrancamento gains related
to exceptional tax provisions in Italy for the non-accounting
revaluation of goodwill and its amortisation amounting to
€111 million in net income Group share for the IRB
(+€28 million), AG (+€78 million) and SFS
(+€5 million) divisions. Specific items in the
first nine months of 2020 had an impact of
-€305 million on net income Group share.
Compared to specific items in third quarter 2020 already
mentioned above, these items had an impact of -€167 million on
net income Group share in first half 2020 and corresponded to
recurring accounting volatility items, i.e. the DVA for
-€19 million, hedges of the Large customers loan book for
+€32 million, and changes in the provision for home purchase
savings plans for -€41 million, the costs of the integration
of Kas Bank and S3 by CACEIS for -€4 million, the impact
of solidarity donations relating to COVID-19 of -€52 million,
the impact of the cooperative support given to SMEs and small
businesses with business interruption insurance amounting to
-€98 million, the impact of the cash adjustment on the
Liability Management transaction carried out by Crédit Agricole
S.A. in June 2020 for -€28 million, and activation of the
Switch Insurance for +€44 million.
Excluding these specific items,
underlying net income Group share amounted
to €3,692 million, up
+37.9% compared to the first nine months of
2020.
Underlying earnings per share were €1.23
per share in the first nine months of 2021, up
+37.7% compared to the first nine months of
2020.
Underlying38
RoTE, which is calculated on the
basis of an annualised underlying net income Group share39 and
IFRIC charges linearised over the year, net of
annualised Additional Tier 1 coupons (return on equity Group share
excluding intangibles) reached 13.1% for
the first nine months of 2021, up from the first nine
months of 2020 (10.0%). Since first quarter 2017, Crédit Agricole
S.A.’s annualised underlying RoTE40 of exceeds by at least 2.6
percentage points the average of 10 major European banks publishing
a RoTE. Annualised RoNE (Return on Net Equity) increased this
half year compared to 2020, in line with the increasing
results.
Underlying revenues increased
by +9.1% compared to first nine months of 2020
(and +7.3% on a like-for-like basis41), due to strong revenue
growth in the Asset gathering division (+16.2%), under very
positive market conditions which allowed the recognition of
exceptional outperformance fee and commission income over the first
nine months of 2021 (+€356 million) and the change in the
product mix in insurance and asset management as well as the
unwinding of an additional 15% of the Switch Insurance over seven
months, due to strong growth in Retail banking (+9.9% compared to
first nine months of 2020) driven by the net interest margin and
fee and commission income both in France and internationally, to
the recovery in Specialised financial services with revenues up
+7.1%, to revenues in Large customers which were almost stable
(-1.4% compared to first nine months of 2020) and to revenues in
the Corporate Centre division which were up +€198 million
compared to first half 2020, reflecting market conditions as well
as the income of the other businesses, notably CACIF. Fees and
commissions account for 43% of nine months revenues, i.e. one
percentage point higher than last year.
Underlying operating expenses
excluding SRF were up +5.5% compared to the first nine months of
2020 (and +3.4% on a like-for-like basis42), but less than revenues
for the period, resulting in a jaws effect of 3.6 percentage points
and 3.9 percentage points on a like-for-like basis. The cost/income
ratio excluding SRF for the first nine months was 57.2%, down
-2.0 percentage points compared to first nine months of 2020.
The SRF for the first nine months totalled €522 million, up
18.9% compared to the first nine months of 2020. Note that the
refund of an overpayment over financial years 2016-2020 was
accounted for under specific items in the first quarter 2020.
Underlying gross operating income totalled €6,691 million, up
+14.0% compared to the first nine months of 2020.
Lastly, cost of risk was down
sharply (-57.1%/-€1,202 million, to -€904 million versus
-€2,106 million in the first nine months of 2020).
Analysis of the activity and the results of Crédit
Agricole S.A.’s divisions and business lines
Asset gathering
Assets under management stood at
€2,320 billion at end of September 2021, up +8.3% from
end September 2020. Of the €20 billion increase compared
to end June 2021, -€0.1 billion is related to a scope effect
(exit of the Miami and Brazil activities in Wealth management),
+€2.2 billion in net inflows, of which +€0.2 billion in
Asset management, +€1.1 billion in life insurance and
+€0.9 billion in Wealth management, and +€18.5 billion in
market and foreign exchange impact.
In Savings/Retirement, activity
is dynamic and Crédit Agricole Assurances continues its commercial
expansion and diversification in France and internationally.
Revenues were up by +23.7% compared to third quarter 2020. The
share of unit linked products in total gross inflows hit a level of
43.2% this quarter. Net inflows in third quarter 2021 were
therefore positive (+€1.1 billion), despite a slight outflow
in euros contracts (-€0.3 billion). Net UL inflows totalled
€1.4 billion, i.e. respective increases of +38.0% and +11.4%
compared to the third quarters 2020 and 2019 and higher than the
quarterly averages for 2019 (+€1.3 billion) and 2020
(+€1.2 billion).
Assets (savings, retirement and death and
disability) stood at €318.2 billion, up +4.6% from September
2020. Unit-linked outstandings reached a new all-time high of
€83.1 billion this quarter, with the share of unit-linked
products in outstandings totalling 26.1%, up +3.0 percentage
points compared with September 2020.
In property and casualty
insurance, business was strong in third quarter 2021, with
growth of 5.6%43 in premium income compared to third quarter 2020.
The number of property and casualty insurance policies in the
Crédit Agricole Assurances portfolio reached more than
15 million at end September 2021, up +4.6% over one year, an
increase of 511,000 policies in the first nine months of the year.
Growth in the casualty business was driven by traditional
activities (home, legal protection, personal accident insurance,
car) and was also boosted by launches, in France, of corporate
offerings (corporate property and casualty insurance and
professional multi-risk). The combined ratio remained under control
at 96.9%, showing a slight year-on-year deterioration of -0.2
percentage point.
In death & disability/creditor/group
insurance, premium income stood at €1.1 billion, an
increase of +7.4%43 this quarter compared to third quarter 2020,
with a positive contribution from the three business lines.
Creditor insurance performed well, supported by a well-oriented
property market. Crédit Agricole Assurances is ranked the second
largest creditor insurer44 in France.
Also, on 6 October 2021, Crédit Agricole
Assurances successfully issued €1 billion in eligible Tier 2
capital subordinated bonds with a maturity of 10 years.
As part of its climate commitments, Crédit
Agricole Assurances announced on 26 October 2021 that it was
joining the Net Zero Asset Owners’ Alliance and committing to the
Principles for Sustainable Insurance (PSI); Crédit Agricole
Assurances is also committed to doubling its investments in
renewable energy facilities by 2025.
Asset Management
(Amundi) recorded growth
in assets under management this quarter, with positive market
effects and high medium- to long-term (MLT) inflows in almost all
customer segments. As a result, Amundi posted net MLT inflows
excluding joint ventures of +€15.0 billion, driven by active
management (+€11.1 billion). The very good level of activity
in Retail banking continues, with net MLT inflows excluding joint
ventures in this customer segment standing at +€7.5 billion,
despite outflows of -€0.7 billion in French networks in line
with anticipated outflows in light of favourable market conditions.
The Institutional segment also recorded an increase in MLT inflows
at €7.5 billion. Treasury products recorded moderate net
outflows of -€2.2 billion in both customer segments. Outflows
in joint ventures are negative at -€12.7 billion. These
outflows are primarily the result of an exceptional
reinternalisation of funds for -€11.6 billion as well as
outflows related to the low-margin products of the Channel Business
in China for -€4.1 billion. Restated for these items, net MLT
inflows of joint-ventures remain dynamic with +€3 billion in
mutual funds.
Assets under management are up +1.0% from end of
June 2021 (+8.9% year-on-year since end of September 2020),
totalling €1,811 billion at end September 2021. The
market/foreign exchange impact on assets under management was
+€17.0 billion compared to June 2021.
In addition, in the context of the Glasgow COP
26, Amundi joined the Net Zero Asset Managers initiative
(commitments in keeping with the Paris climate agreement), which
includes asset managers committed to net zero emissions by 2050.
Amundi is specifically committed to increasing its investments in
funds with a positive environmental or social impact between now
and 2025 by +€20 billion.
In Wealth management, assets
under management are stable for the quarter and stand at
€131 billion at end June 2021, a +5.1% increase since the
start of the year excluding the scope effect related to the exit of
Miami and Brazil activities.
The Asset gathering (AG)
business line posted underlying net income Group
share of €573 million in third quarter 2021, up
+24.8% from third quarter 2020, driven by growth in the
contribution of all businesses.
The Asset gathering (AG) business line posted
underlying net income Group share of €1,739 million
in the first nine months of 2021, up +27.2% from the
first nine months of 2020.
The business line contributed 40% to the
underlying net income Group share of the
Crédit Agricole S.A. business lines (excluding the
Corporate Centre division) in the first nine months of 2021 and 29%
to underlying revenues of Crédit Agricole S.A. business lines.
(excluding the Corporate Centre division).
As at 30 September 2021, own funds allocated to
the business line amounted to €11.0 billion, including
€9.3 billion for Insurance, €1.2 billion for Asset
management, and €0.4 billion for Wealth management. The
business line’s risk weighted assets amounted to
€48.6 billion, including €31.1 billion for Insurance,
€12.7 billion for Asset management and €4.7 billion for
Wealth management.
The underlying RoNE (Return on Normalised
Equity) for the business line stands at 24.4% for the first nine
months of 2021, versus 22.5% for full year 2020.
Insurance
Underlying revenues for the insurance activity
stood at €594 million in third quarter 2021, down -2.6%
over one year. Indeed, it was possible to reinforce of the
Policyholder Participation Reserve (PPE) thanks to very high
financial revenues, notably following long-term gains on
reduced-tax disposals of securities. Insurance revenues nonetheless
benefited compared to third quarter 2020 from the unwinding of an
additional 15% of the Switch Insurance carried out on 1 March 2020
for €11 million. Underlying expenses were up +3.9% in third
quarter 2021 compared to third quarter 2020. Excluding taxes, the
increase in expenses was +8.6% due to investments for the
development of the activity and the increase in staff costs. As a
result, underlying gross operating income was down -5.1% to
€420 million in third quarter 2021. The underlying cost/income
ratio in third quarter 2021 stood at 29.3%, an improvement of
+1.8 percentage points compared to third quarter 2020.
The tax charge decreased by -35.6% to €64 million in relation
to the decrease in the normative rate and the reduced-tax disposals
of securities during the quarter. The underlying net income Group
share showed an increase of +12.7%, taking into account in
non-controlling interests the change in the recognition methods
used for RT1 subordinated debt coupons (-€19 million in
accrued interest, with no impact on net earnings per share).
Underlying revenues for the first nine months of
2021 reached €1,948 million, up +6.9% compared to the first
nine months of 2020. This was due to market impacts, the increase
in unit-linked product outstandings and the additional 15%
unwinding of the Switch Insurance over seven months. Costs were up
+1.0%, resulting in an improvement in the underlying cost/income
ratio of 1.8 percentage points at 30.2% for the first nine
months of 2021. Underlying gross operating income thus increased by
+9.7%. Finally, the tax charge for the first nine months of 2021
was down -12.5% compared to the first nine months of 2020, due to a
lower standard tax rate and provision reversals. In all, net income
Group share reached €1,038 million, up sharply by +16.6%
compared to the first nine months of 2020.
Asset management
Underlying revenues totalled €774 million
in third quarter 2021, a year-on-year increase of +27.1%. Net
management revenues were up +26.4% compared to third quarter 2020,
driven by a +17.6% increase in net management fee and commission
income and a very high level of performance fee income totalling
€90 million for the quarter. The underlying operating expenses
stood at €390 million, an increase of +18.7%. This was due to
the provisioning of variable compensation related to increased
operating income, and to ongoing development investments,
particularly for Amundi Technologie. Underlying gross operating
income was thus up a strong +36.9% and the underlying cost/income
ratio excluding SRF stood at 50.4%, down -3.6 percentage
points compared to third quarter 2020. The contribution of
equity-accounted entities, comprising in particular income from
Amundi’s joint ventures in Asia, was up +47.6% from third quarter
2020 and totalled €25 million. The underlying tax charge
worked out at €101 million, a +30.5% increase. Lastly,
underlying net income Group share was up by +44.3% to
€211 million.
Revenues in the first nine months of 2021 rose
by +30.4% due to highly favourable market conditions related to the
rise in the average level of the equity markets and strong inflow
momentum, especially in Retail banking and MLT assets, over several
quarters. This resulted in performance fee and commission income
for the first nine months of +€356 million. Revenues also
benefited from a scope effect of +€45 million, mainly due to
the integration of Sabadell since 1 July 2020. Underlying operating
expenses excluding SRF were up +18.0% due to the increase in
variable compensation, higher development capex, mostly for Amundi
Technologie, and a scope effect of -€36 million in the first
nine months of 2021. The underlying cost/income ratio excluding SRF
stood at a low 49.4%, an improvement of
-5.2 percentage points compared to the first nine months
of 2021. Gross operating income was up +45.3% compared to the first
nine months of 2021. The net income of equity-accounted entities
increased by +38.0%. Net income Group share for the first nine
months of 2021 stood at €629 million, a year-on-year increase
of +49.8%.
Wealth management
Underlying revenues totalled €203 million
in third quarter 2021, representing a +5.5% increase compared to
third quarter 2020. Underlying expenses excluding SRF rose +7.2% to
€173 million. Accordingly, underlying gross operating income
fell slightly year-on-year by -3.5% while the underlying
cost/income ratio excluding the SRF stood at 87.7% in third quarter
2021. Cost of risk in third quarter 2021 fell by -97.5% to stand at
€0.3 million. All in all, underlying net income Group share in
third quarter 2021 was up +87.7% to €23 million, an increase
of +31.0% from third quarter 2019.
Underlying revenues for the first nine months of
2021 rose +2.0% compared to the same period in 2020, while expenses
excluding SRF declined slightly by -0.8%. Gross operating income
was therefore up +21.2% to €93 million. After cost of risk
(€5 million in first quarter 2021), tax and non-controlling
interests, net income Group share improved by +26.8% to reach
€72 million for the first nine months of 2021. It should be
noted that net income Group share was impacted in the first nine
months of 2021 by the recognition of -€1 million in revenues,
-€2 million in costs and €5 million from discontinued
operations related to the contribution of the Miami and Brazil
entities held for sale, representing a total net impact after tax
of €2 million in specific items.
Large customers
Business for the whole of Corporate and
Investment banking (CIB) was buoyant in third quarter 2021, thanks
to a good performance in Financing activities and market conditions
returning to normal post-pandemic. Underlying
revenues therefore remained high at
€1,241 million (-3.7% compared to third quarter 2020) and
above pre-pandemic levels (+5.7% compared to third quarter 2019 or
+9.9% at constant exchange rates). Financing
activities performed very well, with revenues up
significantly in third quarter 2021, rising +13.0% compared to
third quarter 2020. Compared to the pre-pandemic level of third
quarter 2019, revenues increased +9.2% (+16.6% at constant exchange
rates). This very good level was also driven by structured finance
(+9.2% versus third quarter 2020) and commercial banking (+16.4%
versus third quarter 2020), thanks to supply chain and private
equity financing solutions activities. Crédit Agricole CIB remains
the leader in syndicated loans (no. 3 in the EMEA45 zone and no. 1
in France46). Capital markets and investment
banking revenues in third quarter 2021 were up from
pre-pandemic levels to stand at €552 million (+1.5% versus
third quarter 2019 and +2.4% at constant exchange rates). However,
they fell -18.7% from third quarter 2020 due to the slowdown in
FICC activities (-23.7% versus third quarter 2020) in a normalising
market environment and with a sharply declining VaR level. VaR
stood at €6.1 million at end-September 2021, versus
€12.1 million at end-September 2020. Regulatory average VaR
was €6.1 million in third quarter 2021, versus
€14.5 million in third quarter 2020. Investment banking and
the equity business continued to perform well. In a normalising
market, Crédit Agricole Corporate and Investment bank confirmed its
leading positions in bond issuances (no. 5 in All
Bonds in Euro worldwide47 and no. 8 in All Corporate Bonds in Euro
worldwide48).
Asset servicing (CACEIS)
recorded a good level of activity this quarter. Assets
under custody recorded strong momentum, totalling
€4,367 million at end September 2021, up +9% from
end September 2020. Assets under
administration also recorded an increase, rising +11%
year-on-year to €2,303 billion at end September 2021.
This growth is explained both by a volume effect and a market
effect.
In third quarter 2021, the
underlying revenues of the Large customers
division amounted to €1,528 million, a moderate decline of
-2.4% compared to third quarter 2020, mainly due to a normalising
market environment. Underlying operating expenses excluding SRF
were up from third quarter 2020 (+3.3%), with investments and
change in headcount supporting corporate and investment banking
activity. The underlying cost/income ratio excluding SRF was 58.6%.
Thus, gross operating income decreased by -9.5%. The division
recorded an overall net provision for cost of risk of
-€12 million in third quarter 2021, compared to a provision of
-€217 million in third quarter 2020. This substantial decrease
in provisioning was largely due to lower provisioning for
performing loans in Financing activities, mainly as a result of the
improvement in medium-term economic forecasts. Pre-tax income was
up sharply by +28.4% in third quarter 2021 versus third quarter
2020 to reach €621 million. The tax charge was up +16.8% over
the same period. Consequently, net income Group share rose by
+33.0% in third quarter 2021 to stand at €455 million.
In the first nine months of 2021, the underlying
revenues of the Large customers division amounted
to €4,769 million, or -1.4% compared to the first nine months
of 2020. Underlying operating expenses excluding
SRF increased by +4.1% compared to the first nine
months of 2020, totalling -€2,706 million, related to growth
in the business lines and investments. SRF
expenses were up +26.2% compared to the same period in
2020. Gross operating income for the first nine months of 2021
totalled €1,735 million, representing a decrease of -12.3%
compared to the first nine months of 2020. The underlying
cost/income ratio excluding SRF was up
+3.0 percentage points compared to the first nine months of
2020, but remained low at 56.7%. The cost of risk stood at
-€38 million versus -€719 million for the first nine
months of 2020, primarily due to improved economic scenarios. The
division’s contribution to underlying net income Group
share was €1,225 million, up +24.2% from the first
nine months of 2020.
The division contributed 28% to the
underlying net income Group share
of Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) in the first nine months of 2021 and 28%
to underlying revenues excluding the Corporate
Centre.
At 30 September 2021, own funds
allocated to the division totalled
€12.6 billion and its risk weighted assets
amounted to €132.4 billion.
The division’s underlying RoNE
(Return on Normalised Equity) stood at 13.8% for the first nine
months of 2021, versus 10.7% for 2020.
Corporate and Investment
banking
In third quarter 2021,
Corporate and Investment banking’s underlying
revenues were down -3.7% on third quarter 2020 but
up +5.7% on third quarter 2019 (+9.9% at constant exchange rates).
Revenues therefore remained at a high level and higher than the
pre-pandemic level. The complementary nature of activities has
meant that Financing activities revenues are rising as market
conditions normalise in the aftermath of the pandemic. Underlying
operating expenses excluding SRF
were up +4.7% this quarter compared to third quarter 2020 to stand
at -€680 million. This was related to investments in IT
projects and changes in the headcount to support business growth.
The cost/income ratio excluding SRF remained low
at 54.8%. Consequently, gross operating income
came in at €560 million, down -12.2% compared to third quarter
2020 but up +4.2% (+11.9% at constant exchange rates) compared to
third quarter 2019. The cost of risk recorded a
net provision of -€14 million versus a provision of
-€220 million in third quarter 2020 (contrasting with a
+€40 million reversal in second quarter 2021). This was
largely due to the significant drop in provisioning on Stage 1 and
2 performing loans in Financing activities. Lastly, pre-tax
income in third quarter 2021 was up +30.1%. This included
a negative impact of -€3 million recognised in gains or losses
on other assets following the deconsolidation of Crédit Agricole
Corporate and Investment bank’s Algerian subsidiary in second
quarter 2021. The tax charge stood at -€119 million, up +13.7%
from third quarter 2020. In all, underlying
net income Group share was €416 million in
third quarter 2021, a rise of +35.5% compared to the third quarter
of 2020.
Risk weighted assets at
end September 2021 were up by +€2.3 billion
compared to end June 2021 and stood at €123.2 billion.
This increase was largely the result of greater market risks
(+€1.9 billion, of which +1.5 billion euros related to higher
stressed VaR) after reaching a historic low, and a foreign exchange
impact of +€0.8 billion.
Underlying revenues for the first nine months of
2021 fell slightly by -2.2% versus the same period in 2020 to come
in at €3,901 million (+9.3% versus the first nine months of
2019). Underlying expenses excluding SRF increased
over the same period (+4.5%), while contributions to the SRF, which
recorded a sharp rise of +27.3%, amounted to €295 million at
end September 2021. As a result, underlying gross operating
income fell to €1,553 million (-13.5% versus the
first nine months of 2020) but rose by +3.7% (+13.5% at constant
exchange rates) versus the first nine months of 2019 prior to the
pandemic. The underlying cost/income ratio
excluding SRF remained low at 52.6% at end September 2021, the
Medium-Term Plan target of 55% is met. Finally, the cost of risk
recorded a provision of -€45 million for the first nine months
of 2021, compared to -€716 million for the first nine months
of 2020. The business line’s contribution to net income
Group share was therefore up +26.5% to
€1,128 million, the highest level since 2006.
Crédit Agricole CIB continued its commitment to
climate change by announcing a +60% increase in its exposure to
non-carbon energy by 2025 and a -20% decrease in oil production
financing by that same date.
Asset servicing
In third quarter 2021, underlying
revenues were up +3.4% compared to third quarter
2020 to stand at €288 million, thanks to the strong
performance of the activity. Assets under custody increased +9%
over one year, while assets under administration rose by +11%. Flow
activities remained at a high level. The increase in revenues was
driven by higher fee and commission income on assets and a positive
market effect. Underlying operating expenses
excluding SRF and costs related to the Turbo project49 held steady
(-1%) compared to third quarter 2020, coming in at
€215 million. Underlying gross operating
income thus increased substantially, rising +18.7% to
€73 million. The underlying cost/income ratio
excluding SRF stood at 74.8% in third quarter 2021, down
-3.3 percentage points compared to third quarter 2020.
Underlying net income totalled €58 million, a
rise of +11.4%. After the €19 million share of Santander’s
non-controlling interests, the business line’s contribution to
underlying net income Group share rose +11.5%
year-on-year to €39 million.
Underlying revenues for the
first nine months of 2021 were up +2.4% compared to the same period
in 2020, driven by the good performance of customer activities.
Underlying expenses excluding SRF were up +2.7%,
as a result of growth in business and the recognition of KAS Bank’s
residual integration costs which ceased to be restated as a
specific item in second quarter 2021, while SRF expenses rose
sharply by +16.6%. Underlying gross operating
income was therefore stable at -0.7% compared to the first
nine months of 2020. The underlying cost/income
ratio excluding SRF was relatively unchanged at 75.3% at
end September 2021. As a result, underlying net
income was up +3.0%. The overall contribution of the
business line to net income Group share in the
first nine months of 2021 was €97 million, a +2.7% increase
compared to 30 September 2020.
Specialised financial services
The Specialised financial services
business line recorded a strong performance across all
businesses.
In addition this quarter was marked by a number
of initiatives that will contribute to the future growth of the
Group: the launch of CA Mobility, a joint offering between CA
Consumer Finance and CAL&F for long-term vehicle leasing in
France for individuals and SMEs; the announcement of the cquisition
of Olinn by CAL&F aimed at extending its offering to business
equipment management services; and the launch by CAL&F of a
leasing activity in Germany through the creation of the Vendoramed
marketplace. Concerning the Olinn acquisition, the expected impact
on CET1 ratio of Crédit Agricole S.A is approximately -6 basis
points and for Crédit Agricole Groupe around – 4 basis points
during the fourth quarter 2021.
Crédit Agricole Consumer Finance’s loan
production in the third quarter 2021 was down slightly
year-on-year (-3.3% excluding scope effect50) due to the automotive
market affected by the shortage of electronic components, but
returned to its pre-pandemic level (+0.9% compared to third quarter
2019). The decline in loan production compared to third quarter
2020 was concentrated in France (-7% drop in business with Crédit
Agricole Group) and automotive partnerships (-6%, primarily FCA
Bank), but was partially offset by the strong performance of
international entities, excluding CACF NL (13% at Agos, +10% at
Wafasalaf). Assets under management at CA Consumer
Finance totalled €91.0 billion at end September 2021. They
were up +2% from end September 2020 and +0.5% from end September
2019. The increase was driven by the international entities51 and
by business with Crédit Agricole Group (+14% and +4.1% versus end
September 2020 respectively). Outstandings related to automotive
partnerships were relatively unchanged from third quarter 2020
(-0.3%), despite automotive production being affected by the
shortage of electronic components.
At Crédit Agricole Leasing and Factoring
(CAL&F), leasing production was stable
compared to third quarter 2020, but was up +17% for the first nine
months of 2021 compared to the same period in 2020. In factoring,
factored revenues were up +27% from third quarter
2020. Leasing outstandings stood
at €16 billion at end September 2021 (of which,
€13 billion in France and €3.1 billion abroad), i.e.
+4.7% higher than at end September 2020 and +8.8% higher than at
end September 2019.
Income in Specialised financial
services grew in the third quarter 2021, in line with the
dynamic commercial activity. Underlying revenues of Specialised
financial services excluding CACF NL52 were up +5.5% compared to
third quarter 2020, driven by strong revenues for CA Consumer
Finance (+3% excluding CACF NL and +2.6% excluding the integration
of SoYou53) and CAL&F (+14.9%). Underlying costs excluding CACF
NL were up +5.2%, in line with the increase in activity.
Gross operating income excluding CACF NL was up
+5.8% compared to third quarter 2020, and the underlying
cost/income ratio excluding SRF at constant scope
remains low at 50%50 (and down -0.3 percentage points compared to
third quarter 2020). Cost of risk significantly
decreased compared to third quarter 2020 (-19.5%50). As a result,
in third quarter 2021, the business line’s underlying net
income Group share reached €200 million, an increase
of +20.3% compared to third quarter 2020.
Underlying revenues at constant
scope for the first nine months of 2021 were up by +6%50 compared
to the first nine months of 2020, driven by the excellent
performance of CAL&F (+14.7% compared to the first nine months
of 2020) and the rising revenues of CA Consumer Finance (+2.8%
compared to the same period in 2020 excluding CACF NL).
Underlying costs50
excluding SRF at constant scope were up +10.7%
compared to the first nine months of 2020, representing a
normalisation following the low reached during first half 2020. The
underlying cost/income ratio50 excluding SRF remained low at 50.7%,
+1.04 percentage points compared to the same period in
2020. Cost of risk at constant scope 50 was down
-32.5%, as the first nine months of 2020 were marked by major
provisions for performing loans due to the spread of the COVID-19
crisis. The underlying contribution of equity-accounted entities
was up +13.8%, thanks to the good performances by Wafasalaf and FCA
Bank during first nine months of 2021. Net
income Group share was therefore up +18.5% at
€658 million50.
The division contributed 13% to the
underlying net income Group share
of Crédit Agricole S.A.’s core businesses (excluding
Corporate Centre division) in the first nine months and 12% to
underlying revenues excluding Corporate Centre
division.
At 30 September 2021, the capital
allocated to the Specialised financial services business
line was €4.9 billion and risk weighted
assets were €51.9 billion.
The business line’s underlying
RoNE (Return on Normalised Equity) stood at 15.9%
in the first nine months of 2021 (versus 11.7% for 2020).
Consumer finance
In third quarter 2021, CA Consumer Finance’s
underlying revenues at constant scope reached
€517 million, up +3.0%50 compared to third quarter 2020,
benefiting from dynamic activity in France and internationally and
the full consolidation of SoYou53. CA Consumer Finance’s
underlying costs at constant scope increased by
+3.0%50, in line with the changes in activity. As a result,
underlying gross operating income at constant
scope was up +3.1% compared to third quarter 2020 and the
underlying cost/income ratio excluding SRF
remained low at constant scope, at 49.2% (stable compared to third
quarter 2020). The contribution of equity-accounted
entities was excellent and reached €79 million in
third quarter 2021 (+9.7% underlying compared to third quarter
2020). The cost of risk at constant scope was
historically low at -€98 million, down sharply compared to
third quarter 2020 (-23%50). The cost of credit risk
relative to outstandings over a rolling
four-quarter period54 was 132 basis points. The non
performing loans ratio
is at 5.7%, down -0.6 percentage point compared to end June
2021, and the coverage ratio reached 85.2%, up +3.7 percentage
points compared to end June 2021. All in all, underlying
net income Group share totalled €158 million in third
quarter 2021, up +19.5%50 compared to third quarter 2020.
In the first nine months of
2021, at constant scope, underlying
revenues were slightly up by +2.8%50 compared to
the same period in 2020. Costs excluding SRF
increased by +3.9%50 at constant scope, but the underlying
cost/income ratio excluding SRF
remained low at 49.8% and was stable compared to the first nine
months of 2020 (49.3%50). Underlying gross operating income thus
remained stable, up +1.7%50 compared to the same period in 2020.
Cost of risk at constant scope was down -34.9%50 compared to the
first nine months of 2020, a period that saw provisions for
performing loans due to the spread of the COVID-19 pandemic. The
contribution of equity-accounted entities
performed well, increasing by +15.3%. All in all, at constant
scope, the business’s contribution to the underlying net
income Group share rose by +22.4%50.
The CA Consumer Finance business’s
contribution to the net income Group share of
Crédit Agricole S.A. for the
first half was 12%.
Leasing & Factoring
In third quarter 2021,
CAL&F’s underlying revenues stood at
€151 million, a sharp rise of +14.9% compared to third quarter
2020, thanks to the strong recovery in both leasing and factoring.
Costs excluding SRF were up by +13% compared to
third quarter 2020, but the underlying cost/income ratio
excluding SRF remained low at 52.7%, improving by +0.9
percentage point compared to third quarter 2020. This quarter,
there was a positive jaws effect of +1.9
percentage points compared to third quarter 2021. This resulted in
a year-on-year increase in gross operating income
of +17.1%. Cost of risk remained low at
€16 million (+11.8% compared to second quarter 2020).
CAL&F’s underlying net income Group share was
€42 million in third quarter 2021, (+23.4% compared to third
quarter 2020).
For the first nine months of 2021, underlying
revenues were up significantly, by +14.7% compared
to the first nine months of 2020, due to the strong recovery in
leasing and factoring activity. Costs excluding
SRF were up by +8.4% compared to the first nine months of
2020 due to the recovery in activity. The underlying
cost/income ratio excluding SRF showed a strong
improvement, dropping -3.1 percentage points compared to
the first nine months of 2020 to stand at 53.0%. Underlying
gross operating income was up +22.4% compared to
the first nine months of 2020. The cost of risk
fell significantly (-36.6%), reflecting strong provisioning for
performing loans in first half 2020 in the context of the spread of
COVID-19. Ultimately,
underlying net income Group share
totalled €105 million (+62.9% compared to the same period in
2020).
Retail Banking
The Crédit Agricole S.A. Retail
banking activity was very dynamic during the quarter,
driven at LCL by housing, corporates and SMEs and small businesses
and at Crédit Agricole Italia by dynamic commercial activity.
Loan production at LCL was up
sharply compared with third quarter 2020 (+45.5%55) for housing
(€5.9 billion, +51.4%), corporates (+82.7%55) and SMEs and
small businesses (+11.2%55). In this context, loans
outstanding reached €147.6 billion at end September
2021 and were up +4.3% since end September 2020, including +6.2%
for real estate loans and +7.9%56 for loans to SMEs and small
businesses. Renegotiations on home loans were
stable compared to third quarter 2020, with outstandings of
€0.5 billion this quarter, still well below the high point of
€5.2 billion in fourth quarter 2016. On-balance sheet
deposits have been on the rise since end September 2020
(+5.7%), driven by DAVs (+11.5%), as have off-balance sheet
savings, which have increased by +5.8% year-on-year
(including +3.3% in life insurance). Finally, customer
capture remained dynamic with 84,000 new customers this
quarter and 261,000 new customers in the first nine months of 2021,
and the customer base has grown by +34,000 since the beginning of
the year. The equipment rate of car, home, health,
legal, all mobile phones or personal accident insurance is up by
+1.0 percentage point compared to end September 2020 (+2.8
percentage points compared to end December 2018) to 26.5% at end
September 2021.
CA Italia home loan production remains dynamic.
Loan outstandings stood at €60.9 billion (up +32.3%
year-on-year). Excluding the scope effect related to the
consolidation of Credito Valtellinese in second quarter 2021, loan
outstandings in Italy reached €46.6 billion, up +1.4%
year-on-year, driven by home loans (+6.2% year-on-year) and
impacted by the slowdown in loan production in the corporates and
professional segments in a highly liquid market. Balance sheet
inflows continued to slow down (+3.5% Sept/Sept excluding the
Credito Valtellinese scope effect), reflecting the resource
optimisation policy initiated in December 2020. CA Italia’s AuM
recorded very strong year-on-year growth (+13.3% Sept/Sept
excluding scope effect). Its equipment rate in car, multi-risk
household, health, legal, all mobile phones or personal accident
insurance increased to 18.8% (+2.6 percentage points from end
September 2020, +3.4 percentage points from end 2019 and
+5.1 percentage points from end 2018).
Finally, for all the International retail
banking excluding Italy, the growth in commercial activity
accelerated. Growth in loan outstandings reached +7.6% at end
September 2021 compared to end September 2020 and +6.2% excluding
foreign exchange impact, driven in particular by Ukraine (+35%),
Poland (+11%) and Egypt (+8%), to total €12.8 billion.
On-balance sheet deposits were up +7.5% excluding foreign exchange
impact, especially in Ukraine (+19%) Poland (+16%) and Egypt
(+10%). Total inflows rose by +6.4% year-on-year and by +4.9%
excluding the foreign exchange impact to €16.4 billion. The
result was a surplus of deposits over loans in International retail
banking outside Italy of +€2.1 billion at 30 September
2021.
French retail banking
In third quarter 2021,
LCL’s underlying revenues amounted to
€934 million, a year-on-year increase of +5.1% compared to
third quarter 2020. This increase was driven both by the net
interest margin (+5.4%) and by fee and commission income, which was
dynamic in all activities (+4.8%). Underlying operating
expenses excluding SRF remained under control, with the
+3.0% year-on-year increase being due to the rise in
profit-sharing. As a result, the underlying cost/income
ratio (excluding SRF) improved (-1.2 percentage points
compared to third quarter 2020) to 60.6% this quarter (MTP target
<66%), and underlying gross operating income
was up sharply year-on-year (+8.5%). Cost of risk
decreased by -50.5% compared to third quarter 2020 and reached
-€41 million this quarter, against the backdrop of an improved
economic outlook. The doubtful loans ratio remains
under control (1.5% at end September 2021 compared to 1.6% at end
June 2021) and the coverage ratio remains high
(83.5% at end September 2021 compared to 81.7% at end June 2021).
In the end, net income Group share reached
€230 million in third quarter 2021, up sharply year-on-year
(+30.6%).
In the first nine months of
2021, LCL’s underlying revenues reached
€2,767 million, increasing +5.0% compared to the first nine
months of 2020. Underlying costs excluding SRF
were under control and increased by +1.1% compared to the same
period. As a result, the underlying cost/income ratio
excluding SRF improved (-2.4 percentage points compared to
the first nine months of 2020, to 61.3%), and underlying
gross operating income rose sharply (+10.7%
compared to the first nine months of 2020). The cost of
risk decreased by -44.4% compared to the first nine months
of 2020 to -€167 million. Finally, the contribution of the
business to the net income Group share reached
€575 million in the first nine months of 2021, up sharply
(+41.0%) compared to the first nine months of 2020.
At 30 September 2021, the capital
allocated to the business line was €4.8 billion and
risk weighted assets were €50.1 billion.
LCL’s underlying RoNE (Return
on Normalized Equity) stood at 15.5% for the first nine months of
2021, compared to 8.4% in 2020.
International retail
banking
The International retail banking business line’s
underlying revenues increased by +21.3% to €797 million in
third quarter 2021 and by +5.2% at constant scope excluding the
CreVal acquisition in Italy and the transition to IFRS 5 in Serbia.
Underlying expenses excluding SRF increased by +17.0% to
€486 million in third quarter 2021. At constant scope, this
change was +0.6%. As a result, underlying gross operating income
was up from third quarter 2020 to stand at €311 million, a
rise of +28.8% (+13.1% at constant scope). Cost of risk fell -12.6%
this quarter to €109 million. All in all, the underlying net
income Group share of International retail banking was
€107 million, up +69.2% compared to third quarter 2020.
In the first nine months of the year, underlying
revenues for the International retail banking division rose by
+16.5% to €2,291 million. Underlying operating expenses
excluding SRF increased by +10.1% to €1,363 million, resulting
in a -3.5 percentage point improvement in the underlying
cost/income ratio which stood at 60.3%. At constant scope, the
changes are, respectively, +6.0% for revenues and -0.5% for
expenses. Cost of risk fell by -30.7% to stand at €304 million
for the first nine months of 2021. This translates into a net
income Group share of €295 million for the first nine months
of 2021, up +90.1% compared to the net income Group share of the
first nine months of 2020.
Italy
In third quarter 2021, CA Italia’s underlying
revenues were up +32.6% year-on-year to €612 million,
including €145 million from the consolidation of Credito
Valtellinese since May 2021. Excluding this scope effect, CA
Italia’s revenues still rose by +1.1% compared to third quarter
2020, driven by fee and commission income from managed savings and
insurance (+19% compared to third quarter 2020). Underlying costs
excluding SRF57 remained under control compared to third quarter
2020 (+18.1%) at €374 million, of which €93 million were
related to Credito Valtellinese. Excluding this scope effect, costs
would have decreased by -0.2%, benefiting from a high basis of
comparison following the costs in 2020 of the health crisis. As a
result, the underlying cost/income ratio excluding SRF stood at
61.1%, stable compared to third quarter 2020. Excluding the scope
effect, the underlying cost/income ratio excluding SRF was 60.2%.
Overall, underlying gross operating income recorded a substantial
increase versus third quarter 2020 (+32.4% and +3.2% excluding
scope effect). The cost of risk fell, reflecting a high 2020 base
(-27.2% over the year). Cost of risk on outstandings was
50 basis points (annualised quarterly). The doubtful loan
ratio was stable at 6.3% and the coverage ratio was 69.3% at end
September 2021. This translates into a net income Group share of
€74 million for CA Italia, up +44% compared to the net income
Group share of the third quarter of 2020.
During the quarter, the CreVal consolidation
process continued according to schedule. Over 2,000 employees
received training in the universal banking model and the
organisation of Crédit Agricole Group, the sale of Amundi products
was launched and an agreement was reached on consumer finance and
leasing. The timetable for future steps was also confirmed, with a
final estimate of the PPA (Purchase Price Allocation) in the fourth
quarter following the completion of due diligence this quarter, the
announcement by Credit Agricole Italia of a Plan de Sauvegarde de
l’Emploi (PSE) a voluntary redundancy programme, and a legal merger
of CreVal expected in the second quarter of 2022.
For the first nine months of 2021, Crédit
Agricole Italia’s underlying revenues rose by +25.9% to
€1,682 million (+7.7% excluding scope effect). Operating
expenses excluding SRF were kept under control (+18.1% but -0.4%
excluding scope effect), reducing the underlying cost/income ratio
excluding SRF to 59.6%, an improvement of -3.9 percentage
points Sept/Sept or -4.8 percentage points excluding scope
effect to 58.7%. Cost of risk fell sharply in the first nine months
of 2021 (-27.2%). All in all, the business line’s contribution to
net income Group share was multiplied by a factor of 2.0 for the
first nine months.
CA Italia’s underlying RoNE (return on normalised equity) for
first half 2021 was 11.8%.
Crédit Agricole Group in
Italy
The Group’s net income Group share in Italy
stood at €603 million in the first nine months of 2021, an
improvement of +43% compared to the first nine months of 2020, due
to the growth in operating income and the inclusion of CreVal in
the scope of consolidation in May 2021.
International Retail Banking – excluding
Italy
In July 2021, Crédit Agricole S.A. announced the
disposal of its Serbian subsidiary, Credit Agricole Srbija A.D.,
which is expected to be completed in first quarter 2022. The
results of this entity for the first nine months of the year were
thus reclassified under IFRS 5 during the third quarter,
impacting for this quarter all income lines for International
retail banking excluding Italy58. Only the net income from the
disposal (-€4 million in net income Group share) has been
classified as specific items At constant scope58 entity revenues
grew strongly, with the absorption of the 2020 key rate decline in
the various countries. Underlying revenues at constant scope of
International retail banking outside Italy rose by +15.4% in third
quarter 2021 (to €211 million at constant scope) compared to
third quarter 2020. Underlying expenses excluding SRF at constant
scope increased (+2.2% compared to third quarter 2020) but the
underlying cost/income ratio excluding SRF of IRB excluding Italy
at constant scope improved by -7.8 percentage points this
quarter compared to third quarter 2020 to stand at 60.5%.
Underlying gross operating income at constant scope was therefore
up +44.0% compared with third quarter 2020. The cost of risk fell
(-18.9% compared to third quarter 2020) to -€31 million. The
non performing loans ratio was low at 7.1% at end September 2021,
while the coverage ratio was high at 100%. All in all, underlying
net income Group share at constant scope was €25 million, up
by a factor of 3.1 compared to third quarter 2020.
By country:
- CA Poland59: revenues were up
sharply (+21%), driven by new and expanded fee and commission
income; the coverage ratio of non performing loans reached
111%.
- CA Egypt59: revenues were up +3%
compared to third quarter 2020 and operating expenses remain under
control at +4% in line with inflation. The cost of risk fell
sharply (-30%) and the non performing loans ratio reached 4.4%. The
coverage ratio remained high at 115%.
- CA Ukraine59: revenues were up
sharply (+28% compared to third quarter 2020) owing to the good
level of activity. The cost/income ratio is below 50% and the cost
of risk was down -24% compared to third quarter 2020, while the non
performing loans ratio remained low at 1.2%.
- Crédit du Maroc59: activity and
revenues remained steady; the cost of risk and doubtful loan ratio
were down.
For the first nine months of 2021, underlying
revenues on a like-for-like basis of International retail banking
excluding Italy are up +2.2% to €609 million thanks to sales
momentum and the gradual absorption of key interest rate reductions
in Egypt, Poland, Ukraine and Morocco occurring in 2020. Underlying
operating expenses excluding SRF on a like-for-like basis are down
-0.6%. This resulted in an improvement in the underlying
cost/income ratio excluding SRF on a like-for-like basis, to 62.4%,
a decrease of -1.7 percentage points compared to the first
nine months of 2020. The cost of risk is down -37.5%. All in all,
the business line’s contribution to underlying net income Group
share rose sharply by +63.7% to €72 million.
The underlying RoNE (return on normalized
equity) of the other IRBs stands at 13.3% for the first nine months
of 2021, compared to 12.3% for 2020.
The International retail banking business line
contributed for 7% to the underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) in the first nine months of 2021 and 14%
to underlying revenues excluding the Corporate Centre.
The entire Retail banking business line
contributed for 20% to the underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) in the first nine months of 2021and 30%
to underlying revenues excluding the Corporate Centre.
As at 30 September 2021, the capital allocated
to the division was €9.5 billion, including €4.8 billion
for French retail banking and €4.8 billion for International
retail banking. Risk weighted assets for the division totalled
€100.3 billion including €50.1 billion for French retail
banking and €50.1 billion for International retail
banking.
Corporate Centre
The underlying net income Group share of the
Corporate Centre division was -€151 million in third quarter
2021, a drop of -€45 million since third quarter 2020. An
analysis of the negative contribution of the Corporate Centre looks
at both the “structural” contribution (-€179 million) and
other items (+€28 million). The contribution of the
“structural” component is down compared to the third quarter 2020
(-€79 million) due to lower tax revenues in that quarter. It
includes three types of activities:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution amounted to
-€194 million in third quarter 2021, down from third quarter
2020 (-€76 million) in line with a negative impact from the
effective corporate income tax rate;
- The
sub-divisions that are not part of the core business lines, such as
CACIF (Private equity) and CA Immobilier and, since first
quarter 2021, BforBank, equity-accounted as it is 50% owned by
Crédit Agricole S.A. following its capital increase. Their
contribution of +€8 million in the third quarter 2021 is
stable compared to the third quarter 2020. The positive impact from
the revaluation of certain CACIF funds was offset by the negative
contribution of BforBank.
- The Group’s
support functions. Their contribution for +€7 million this
quarter is down by -€3 million since third quarter 2020 due to
a change introduced in 2021 in the way CAGIP income and expenses
are recognised.
The contribution of “other items” was up
compared to third quarter 2020 (+€34 million) due to a base
effect on eliminations on intra-group securities underwritten by
Predica and Amundi.
The underlying net income Group share of the
Corporate Centre division in the first nine months of 2021 was
-€436 million, an improvement of +€45 million compared to
the first nine months of 2020. The structural component contributed
-€585 million, down -€37 million compared to the first
nine months of 2020, and the business line’s other items
contributed for +€149 million in the first nine months of
2021, an increase of +€82 million over one year.
As at 30 September 2021, risk weighted assets
was €25.4 billion.
* *
*
Financial strength
Crédit Agricole Group
As at 30 September 2021, the
phased-in Common Equity Tier 1 (CET1)
ratio of Crédit Agricole Group was 17.4%, an
increase of +0.1 percentage point compared to end June 2021.
Therefore, Crédit Agricole Group posted a substantial buffer of
+8.5 percentage points between the level of its CET1 ratio and
the 8.9% SREP (Supervisory review and evaluation process)
requirement. The fully loaded CET1 ratio is 17.1% (+0.1 percentage
point compared to 30 June 2021).
- Retained
income: +38 basis points of stated income and -7 basis
points of distribution and payment of AT1 coupons
- Business
line growth (“risk weighted assets
variation”): -7 basis points, change concentrated in Corporate and
Investment banking, Insurance and Regional Banks
sub-divisions;
-
Regulatory methodologies & effects: -9 basis
points, related to coming into force of ECB requirement on hedging
of non-performing exposures (NPE) and impact of IFRS 9
phasing;
- M&A,
OCI and others: -3 basis points. The impact from OCI
reserves on CET1 ratio is neutral this quarter. The stock of OCI
reserves was 16 basis points as at 30 September 2021 (stable
compared to June 2021).
Concerning Basel IV regulatory requirements,
based on the publication of the 27th of October 2021 by the
European Commission of a proposal on the revised regulatory
framework related to Basel 3, Crédit Agricole Groupe considers that
the output floor will be applicable to the highest consolidation
level in France. The estimated Crédit Agricole Group phased-in CET1
ratio should remain above the current MTP target by 2030, i.e.
higher than 16%, without prejudging future targets.
The phased-in
leverage ratio stood at 6.0%,
+0.1 percentage point compared to end June 2021 (5.4% before the
exclusion of ECB exposures) and well above the regulatory
requirement of 3.11%60. The daily phased-in leverage ratio was 5.3%
at 30 September 202161 before the exclusion of ECB exposures.
The Crédit Agricole Group’s risk
weighted assets were up +€2.9 billion compared to 30
June 2021:
- Large
customers: +€2.5 billion (of which +€0.8 billion
foreign exchange impact) with an increase concentrated in the
Corporate and Investment banking sub-divisions, mainly related to
the market risks (+€1.9 billion)
-
Insurance: up +€0.9 billion in line with the
insurance equity-accounted value increase (positive result of
+€370 million and decrease in unrealised gains and/or losses
of -€101 million);
- Asset
gathering (excluding insurance activity): increase of
+€0.4 billion related to business development
-
Corporate Centre: -€1.5 billion notably related to
the reduction of the size of the securities’ portfolio
- Regional
Banks: +€1.2 billion compared to end June 2021
TLAC
The Financial Stability Board (FSB) has defined
the calculation of a ratio aimed at estimating the adequacy of the
bail-in and recapitalisation capacity of Global Systemically
Important Banks (G-SIBs). This
Total Loss Absorbing Capacity (TLAC) ratio provides
resolution authorities with the means to assess whether G-SIBs have
sufficient bail-in and recapitalisation capacity before and during
resolution. It applies to Global Systemically Important Banks, and
therefore to Crédit Agricole Group.
The elements that could absorb losses consist of
equity, subordinated notes and debts to which the Resolution
Authority can apply the bail-in.
The TLAC ratio requirement was transposed into
European Union law via CRR2 and has been applicable since 27 June
2019. As from that date, Crédit Agricole Group must comply
with the following requirements at all times:
- a TLAC ratio
above 16% of risk weighted assets (RWA), plus – in accordance with
EU directive CRD 5 – a combined capital buffer requirement
(including, for the Crédit Agricole Group, a 2.5% capital
conservation buffer, a 1% G-SIB buffer and the counter-cyclical
buffer). Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a TLAC ratio of above 19.5%
(plus the counter-cyclical buffer);
- a TLAC ratio of
above 6% of the Leverage Ratio Exposure (LRE).
As from 1 January 2022, the minimum TLAC
requirements will increase to 18% of risk weighted assets – plus
the combined buffer requirement at that date – and 6.75% of the
leverage ratio exposure.
At 30 September 2021,
Crédit Agricole Group’s TLAC ratio stood
at 26% of RWA and 8.5% of
leverage ratio exposure, excluding
eligible senior preferred debt 62. The
TLAC ratio expressed as a percentage of risk-weighted assets
increased by +40 basis points over the quarter due to the moderate
increase of RWA. Expressed as a percentage of leverage exposure
(LRE), the TLAC ratio climbed 10 basis points compared to June
2021. Without taking into account the neutralisation of Central
Bank exposures, the TLAC ratio expressed in LRE would have reached
7.6% (stable compared to end June 2021). It exceeded the respective
requirements of 19.5% of RWA (according to CRR 2/CRD 5,
to which the countercyclical buffer of 0.03% as of 30 September
2021 must be added) and 6% of the leverage exposure.
Achievement of the TLAC ratio is supported by a
TLAC debt issuance programme of around €7 billion in
the wholesale market in 2021. At 30
September 2021, €6.2 billion equivalent had been issued in the
market; the amount of the Crédit Agricole Group senior
non-preferred debt taken into account in the calculation of the
TLAC ratio was €25.7 billion.
MREL
The MREL (Minimum Requirement for Own Funds and
Eligible Liabilities) ratio is defined in the European “Bank
Recovery and Resolution Directive” (BRRD). This Directive
establishes a framework for the resolution of banks throughout the
European Union, with the aim to provide resolution authorities with
shared instruments and powers to pre-emptively tackle banking
crises, preserve financial stability and reduce taxpayers’ exposure
to losses. Directive (EU) 2019/879 of 20 May 2019 known as “BRRD2”
amended the BRRD and was transposed into French law by Order
2020-1636 of 21 December 2020.
The MREL ratio corresponds to an own funds and
eligible liabilities buffer required to absorb losses in the event
of resolution. The required minimum levels are set by decisions of
resolution authorities and then communicated to each institution,
then revised periodically.
In 2020, Crédit Agricole Group was notified of
the revision of its consolidated MREL requirement and of a new
subordinated MREL requirement (from which senior debt instruments
are excluded). These two requirements were already met by the Group
at the time of their notification. The two requirements were
calibrated under BRRD and are applicable until the next
notification, which will include the changes to the European
regulatory framework (i.e. BRRD2) 63.
Under BRRD, the MREL ratio is calculated as the
amount of own funds and eligible liabilities expressed as a
percentage of the institution’s total liabilities and own funds,
after certain prudential adjustments (TLOF64), or expressed as risk
weighted assets (RWA). Regulatory capital, as well as subordinated
notes, senior non-preferred debt instruments and certain senior
preferred debt instruments with residual maturities of more than
one year are eligible for the numerator of the MREL ratio.
Crédit Agricole Group’s target is to
reach a subordinated MREL ratio (excluding eligible senior
preferred debt) of 24-25% of the RWAs by the end of 2022 and to
maintain the subordinated MREL ratio above 8% of TLOF.
This level would enable recourse to the Single Resolution Fund
(subject to the decision of the resolution authority) before
applying the bail-in to senior preferred debt, creating an
additional layer of protection for investors in senior preferred
debt.
At 30 September 2021, Crédit Agricole
Group posted an estimated MREL ratio65
of approximately 10% of the TLOF and 8.3% excluding
eligible senior preferred debt. Expressed as a percentage
of risk weighted assets, Crédit Agricole Group’s estimated MREL
ratio was approximately
31.8% at
end September 2021. It was 26% excluding eligible
senior preferred debt. The MTP target regarding
subordinated MREL has been met since September 2020.
Under BRRD 2, given the possibility of
downward adjustment, at the discretion of the resolution authority,
to calibrate the MREL requirement at the subordinated level for the
Crédit Agricole Group, the highest expected subordination
requirement is the TLAC. The current TLAC ratio is
6.5 percentage points above the requirement at 30/09/2021 and
4.5 percentage points66 above the expected requirement of 21.5% (+
counter-cyclical buffer) as of 1 January 2022.
Maximum Distributable Amount (MDA)
trigger
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined buffer
requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 30 September 2021, Crédit Agricole
Group posted a buffer of 764 basis points
above the MDA trigger, i.e. €45 billion in CET1
capital.
At 30 September 2021, Crédit Agricole
S.A. posted a buffer of 450 basis points
above the MDA trigger, i.e. €16 billion in CET1
capital.
Crédit Agricole S.A.
At end September 2021, Crédit Agricole S.A.’s
solvency level was high, with a phased-in Common Equity
Tier 1 (CET1) ratio of 12.7% (up +0.1 percentage point
from end June 2021). Crédit Agricole S.A. therefore had a
substantial buffer of 4.8 percentage points between the level
of its CET1 ratio and the 7.9% SREP requirement. The fully loaded
CET1 ratio is 12.5%.
- Retained income:
+39 basis points in stated income: and -21 basis points in
distribution and payment of AT1 coupons. The provision for the
distribution of dividends is €0.22 per share for the quarter based
on a 50% dividend distribution policy (€0.61 per share for the
first nine months of the year);
- Sub-division
growth (“Risk weighted assets variation”): -5 basis points, with an
impact concentrated in Corporate and Investment banking and
Insurance sub-divisions.
- M&A, OCI and
others: -7 basis points, the positive impact from the sale of CA
Bank Romania (+1 basis point) is counterbalanced by the impact from
the buyback of Friuladria minority interests (-4 basis points),
aimed at streamlining the structure of Crédit Agricole Italia. The
impact from OCI reserves on CET1 ratio was -1 basis point. The
stock of OCI reserves reached 33 basis points at 30 September
2021 (versus 34 basis points at 30 June 2021).
Proforma the two capital transactions scheduled
for the fourth quarter 2021, the Credit Agricole S.A CET1 ratio
would reach 12.0% Indeed the unwinding of remaining 50% of the
switch insurance guarantee on the 16th November 2021 and the second
tranche of the €500 million share buyback launched on 5th
October and which can continue until 28th January 2022,
should have an estimated impact on Credit Agricole S.A CET1 ratio
of -70-75 basis points (based on the end of Septembre risk weighted
assets level).
The phased-in leverage
ratio was 4.6% at end September 2021 (3.9% before
the exclusion of ECB exposures, stable compared to end June 2021)
compared to a requirement of 3.18%67. The phased-in
daily leverage
ratio68 was 3.9% before the
exclusion of ECB exposures.
Crédit Agricole Group’s risk weighted
assets were up +€1.7 billion compared to 30 June
2021.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is based on
the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet
whose definition is commonly accepted in the marketplace. It
relates to the banking scope, with insurance activities being
managed in accordance with their own specific prudential
constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €67 billion at end September 2021.
Similarly, €122 billion in repos/reverse repos were eliminated
insofar as these outstandings reflect the activity of the
securities desk carrying out securities borrowing and lending
operations that offset each other. Other nettings calculated in
order to build the cash balance sheet — for an amount totalling
€144 billion at end September 2021 — relate to derivatives,
margin calls, adjustment/settlement/liaison accounts and to
non-liquid securities held by Corporate and Investment banking
(CIB) and are included in the “Customer-related trading assets”
section.
Note that deposits centralised with Caisse des
Dépôts et Consignations are not netted in order to build the cash
balance sheet; the amount of centralised deposits (€71 billion
at end September 2021) is booked to assets under “Customer-related
trading assets” and to liabilities under “Customer-related
funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, senior
issues placed through the banking networks as well as financing by
the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Note that for Central Bank refinancing
transactions, outstandings related to the T-LTRO (Targeted
Longer-Term Refinancing Operations) are included in “Long-term
market funds”. In fact, T-LTRO 3 transactions are similar to
long-term secured refinancing transactions, identical from a
liquidity risk standpoint to a secured issue.
Medium to long-term repos are also included in
“Long-term market funds”.
Finally, the CIB’s counterparties that are banks
with which we have a commercial relationship are considered as
customers in the construction of the cash balance sheet.
Standing at €1,616 billion at 30 September
2021, the Group’s banking cash balance sheet shows a
surplus of stable funding resources over stable application
of funds of €293 billion, up €1 billion compared
to end June 2021 and up €44 billion compared to end September
2020.
Total T-LTRO 3 outstandings for the Crédit
Agricole Group amounts to €162 billion69 at 30 September 2021.
It should be noted that the interest rate applicable to the
refinancing rate of these operations is accrued over the drawdown
period. The special interest rate is accrued over the related
special interest rate period. The special interest rate applicable
to the refinancing rate for these operations for the second period
(June 2021 to June 2022) was taken into account in Q3 2021 for the
French and Italian entities.
The Group once again recorded momentum in
commercial activity during the quarter, posting a balanced increase
in deposits and loans.
The surplus of 293 billion euros,
known as “stable resources position”, allows the Group to cover the
LCR deficit generated by long term assets and stable liabilities
(customer, tangible and intangible assets, long-term funds, own
funds). Internal management excludes the temporary surplus of
stable resources provided by the increase in T-LTRO 3 outstanding
in order to secure the Medium-Term Plan target of more than
€100 billion, irrespective of the future repayment
strategy.
The NSFR of Crédit Agricole Group and Crédit
Agricole S.A. exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 30 September
2021 (central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market
resources amounted to
€347 billion at 30 September 2021, stable
compared to end June 2021, and up €34 billion compared to end
September 2020.
They included senior secured debt of
€222 billion, senior preferred debt of €76 billion,
senior non-preferred debt of €28 billion and Tier 2
securities amounting to €21 billion.
At 30 September 2021, the Group’s
liquidity reserves, at market value and after haircuts, amounted to
€469 billion, up €6 billion from end June 2021
and up €65 billion from end September 2020. They covered
short-term net debt more than four times over (excluding the
replacements with Central Banks).
The high level of central bank deposits was the
result of the replacement of significant excess liquidity: they
amounted to €243 billion at 30 September 2021 (excluding cash
and mandatory reserves), up +€17 billion compared to end June
2021 and up +€65 billion compared to end September 2020.
Crédit Agricole Group also continued its efforts
to maintain immediately available reserves (after recourse to ECB
financing). Eligible central bank assets after haircut amounted to
€95 billion, down -€6 billion compared to end June
2021, up +€11 billion compared to end September 2020.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
The average LCR ratios over 12 months at
30 September 2021 were respectively 170.3% for Crédit Agricole
Group and 156.3% for Crédit Agricole S.A. They exceeded
the Medium-Term Plan target of around 110%.
In the context of the COVID-19 health crisis,
the increase in the level of LCR ratios of Crédit Agricole Group
and Crédit Agricole S.A. was in line with the recourse of the Group
to T-LTRO 3 drawings from the central bank.
The Group continues to follow a prudent policy
as regards medium-to-long-term refinancing, with a very diversified
access to markets in terms of investor base and
products.
At end September 2021, the Group’s main
issuers raised the equivalent of
€23.2 billion70 in
medium-to-long-term debt on the markets, 33% of which was
issued by Crédit Agricole S.A. The most recent noteworthy
events are:
- Crédit Agricole
next bank (Switzerland) completed an inaugural Covered bond
issuance in Green format in September for CHF 150 million
at 10 years;
- Crédit Agricole
Assurances completed a 10-year Tier 2 bullet issuance in September
for €1 billion to refinance intra-group subordinated debt
(settlement in October).
In addition, €2.4 billion was also borrowed
from national and supranational organisations or placed in the
Group’s Retail banking networks (Regional Banks, LCL, CA Italia)
and other external retail networks at 2021.
At end October, Crédit Agricole S.A.
completed 89% of its medium-long term financing
programme of €9 billion on the markets for 2021
(including €7 billion in non-preferred senior debt or Tier 2
debt).
The bank raised the equivalent of
€8.0 billion71, of which €4.2 billion in senior
non-preferred debt and €2.1 billion in Tier 2 debt, as well as
€0.7 billion in senior preferred debt and €1.0 billion in
senior secured debt. The funding is diversified with various
formats and currencies (EUR, USD, AUD, GBP, JPY, CNY, CHF,
NOK).
Moreover, Crédit Agricole S.A. completed an
issue of senior non-preferred bonds in Social format in September
for €1 billion with a maturity of 8NC7 years and spread
at mid-swap plus 68 basis points.
Finally on 25 October, Crédit Agricole S.A. and
LCL announced the possibility to redeem or to include a call option
on 5 bonds FR0010161026, US225313AA37 - USF22797FJ25, FR0000140071,
FR0000584997 and FR0000165912. These bonds lose the benefit of the
CRR grandfathering provision as of 1 January 2022; the solvency
impact of these potential redemptions is non-material.
Appendix 1 – Specific items, Crédit Agricole Group and
Crédit Agricole S.A.
Group Crédit Agricole – Specific items, Q3-21 and Q3-20, 9M-21
and 9M-20
|
|
Q3-21 |
Q3-20 |
|
9M-21 |
9M-20 |
€m |
|
Gross impact* |
Impact on Net
income |
Gross impact* |
Impact on Net
income |
|
Gross impact* |
Impact on Net
income |
Gross impact* |
Impact on Net
income |
DVA (LC) |
|
4 |
3 |
19 |
14 |
|
5 |
4 |
(7) |
(5) |
Loan portfolio hedges (LC) |
|
(5) |
(4) |
(7) |
(5) |
|
(21) |
(15) |
41 |
28 |
Home Purchase Savings Plans (LCL) |
|
- |
- |
- |
- |
|
(10) |
(7) |
(15) |
(10) |
Home Purchase Savings Plans (CC) |
|
- |
- |
(4) |
(3) |
|
0 |
0 |
(50) |
(34) |
Home Purchase Savings Plans (RB) |
|
- |
- |
- |
- |
|
1 |
0 |
(133) |
(90) |
Liability management upfront payment (CC) |
|
- |
- |
- |
- |
|
- |
- |
(41) |
(28) |
Support to insured clients Covid-19 (LCL) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(1) |
Support to insured clients Covid-19 (AG) |
|
- |
- |
- |
- |
|
- |
- |
(143) |
(97) |
Support to insured clients Covid-19 (RB) |
|
- |
- |
- |
- |
|
- |
- |
(94) |
(64) |
Ongoing sale project NBI (WM) |
|
- |
- |
- |
- |
|
(1) |
(1) |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
(2) |
|
- |
- |
|
(2) |
|
- |
- |
Total impact on revenues |
|
(4) |
(1) |
8 |
7 |
- |
(28) |
(19) |
(444) |
(303) |
Covid-19 donation (AG) |
|
- |
- |
- |
- |
|
- |
- |
(38) |
(38) |
Covid-19 donation (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(8) |
(4) |
Covid-19 donation (CC) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
Covid-19 donation (RB) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(4) |
(2) |
|
(4) |
(2) |
(12) |
(6) |
Transformation costs (LC) |
|
(5) |
(3) |
- |
- |
|
(22) |
(11) |
- |
- |
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
(13) |
(9) |
- |
- |
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Creval integrations costs (IRB) |
|
(9) |
(4) |
- |
- |
|
(9) |
(4) |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
(1) |
|
- |
- |
|
(1) |
|
- |
- |
Total impact on operating expenses |
|
(15) |
(7) |
(4) |
(2) |
- |
(50) |
(28) |
(78) |
(68) |
Restatement SRF 2016-2020 (CR) |
|
- |
- |
- |
- |
|
55 |
55 |
- |
- |
Restatement SRF 2016-2020 (CC) |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Total impact on SRF |
|
- |
- |
- |
- |
|
185 |
185 |
- |
- |
Triggering of the Switch2 (AG) |
|
- |
- |
- |
- |
|
- |
- |
65 |
44 |
Triggering of the Switch2 (RB) |
|
- |
- |
- |
- |
|
- |
- |
(65) |
(44) |
Adjustement on switch 2 activation (RB) |
|
- |
- |
28 |
19 |
|
- |
- |
28 |
19 |
Adjustement on switch 2 activation (GEA) |
|
- |
- |
(28) |
(19) |
|
- |
- |
(28) |
(19) |
Creval - Cost of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
(25) |
(21) |
- |
- |
Total impact on cost of credit risk |
|
- |
- |
- |
- |
|
(25) |
(21) |
- |
- |
Badwill Creval (IRB) |
|
- |
- |
- |
- |
|
378 |
321 |
- |
- |
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
378 |
321 |
- |
- |
"Affrancamento" gain (IRB) |
|
- |
- |
- |
- |
|
38 |
32 |
- |
- |
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
114 |
80 |
- |
- |
Total impact on tax |
|
- |
- |
- |
- |
|
152 |
111 |
- |
- |
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Total impact equity-accounted entities |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Creval acquisition costs (IRB) |
|
- |
- |
- |
- |
|
(16) |
(9) |
- |
- |
Creval integrations costs (IRB) |
|
1 |
|
- |
- |
|
1 |
|
- |
- |
Total impact on Net income on other assets |
|
1 |
- |
- |
- |
|
(15) |
(9) |
- |
- |
Reclassification of held-for-sale operations (SFS) |
|
- |
- |
(69) |
(69) |
|
- |
- |
(69) |
(69) |
Reclassification of held-for-sale operation Bankoa (IRB) |
|
- |
- |
(40) |
(40) |
|
- |
- |
(40) |
(40) |
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(5) |
(5) |
|
- |
- |
(5) |
(5) |
impairment on goodwill (AHM) |
|
- |
- |
(55) |
(55) |
|
- |
- |
(55) |
(55) |
Reclassification of held-for-sale operations (IRB) |
|
(1) |
(4) |
- |
- |
|
(1) |
(4) |
- |
- |
Ongoing sale project (WM) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Total
impact on Net income from discounted or held-for-sale
operations |
(1) |
(4) |
(170) |
(170) |
|
3 |
0 |
(170) |
(170) |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific items |
|
(19) |
(12) |
(165) |
(165) |
|
605 |
545 |
(693) |
(541) |
Asset gathering |
|
- |
- |
(28) |
(19) |
|
116 |
82 |
(144) |
(110) |
French Retail
banking |
|
- |
- |
22 |
14 |
|
32 |
39 |
(298) |
(207) |
International Retail
banking |
|
(12) |
(8) |
(40) |
(40) |
|
363 |
314 |
(48) |
(44) |
Specialised financial
services |
|
- |
- |
(69) |
(69) |
|
5 |
5 |
(69) |
(69) |
Large customers |
|
(7) |
(4) |
8 |
8 |
|
(42) |
(24) |
22 |
16 |
Corporate centre |
|
- |
- |
(59) |
(58) |
|
130 |
130 |
(156) |
(127) |
*
Impact before tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
Crédit Agricole S.A. – Specific items, Q3-21 and Q3-20, 9M-21
and 9M-20
|
|
Q3-21 |
Q3-20 |
|
9M-21 |
9M-20 |
€m |
|
Gross impact* |
Impact on Net
income |
Gross impact* |
Impact on Net
income |
|
Gross impact* |
Impact on Net
income |
Gross impact* |
Impact on Net
income |
DVA (LC) |
|
4 |
3 |
19 |
14 |
|
5 |
4 |
(7) |
(5) |
Loan portfolio
hedges (LC) |
|
(5) |
(4) |
(7) |
(5) |
|
(21) |
(15) |
41 |
27 |
Home Purchase
Savings Plans (FRB) |
|
- |
- |
- |
- |
|
(10) |
(7) |
(15) |
(10) |
Home Purchase
Savings Plans (CC) |
|
- |
- |
(4) |
(3) |
|
0 |
0 |
(50) |
(34) |
Liability
management upfront payment (CC) |
|
- |
- |
- |
- |
|
- |
- |
(41) |
(28) |
Support to
insured clients Covid-19 (LCL) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(1) |
Support to
insured clients Covid-19 (AG) |
|
- |
- |
- |
- |
|
- |
- |
(143) |
(97) |
Ongoing sale
project NBI (WM) |
|
- |
- |
- |
- |
|
(1) |
(1) |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
(2) |
|
- |
- |
|
(2) |
|
- |
- |
Total
impact on revenues |
|
(4) |
(1) |
8 |
6 |
|
(29) |
(19) |
(217) |
(148) |
Covid-19 donation (AG) |
|
- |
- |
- |
- |
|
- |
- |
(38) |
(38) |
Covid-19 donation (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(8) |
(4) |
Covid-19 donation (CC) |
|
- |
- |
- |
- |
|
- |
- |
(10) |
(10) |
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(4) |
(2) |
|
(4) |
(2) |
(12) |
(6) |
Transformation costs (LC) |
|
(5) |
(3) |
- |
- |
|
(22) |
(11) |
- |
- |
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
(13) |
(9) |
- |
- |
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
(2) |
(2) |
- |
- |
Creval integration costs (IRB) |
|
(9) |
(4) |
- |
- |
|
(9) |
(4) |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
(0) |
|
- |
- |
|
(0) |
|
- |
- |
Total
impact on operating expenses |
|
(14) |
(6) |
(4) |
(2) |
|
(50) |
(27) |
(68) |
(58) |
Restatement SRF2016-2020 |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Total
impact on SRF |
|
- |
- |
- |
- |
|
130 |
130 |
- |
- |
Triggering of
the Switch2 (AG) |
|
- |
- |
- |
- |
|
- |
- |
65 |
44 |
Creval - Cost
of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
(25) |
(19) |
- |
- |
Adjustement on
switch 2 activation (GEA) |
|
- |
- |
(28) |
(19) |
|
- |
- |
(28) |
(19) |
Total
impact on cost of credit risk |
|
- |
- |
(28) |
(19) |
|
(25) |
(19) |
38 |
26 |
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Total
impact equity-accounted entities |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Creval integration costs (IRB) |
|
1 |
|
- |
- |
|
1 |
|
- |
- |
Creval acquisition costs (IRB) |
|
- |
|
- |
- |
|
(16) |
(8) |
- |
- |
Total
net income on other assets |
|
1 |
- |
- |
- |
|
(15) |
(8) |
- |
- |
Badwill Creval (IRB) |
|
- |
- |
- |
- |
|
378 |
285 |
- |
- |
Total
impact on change of value of goodwill |
|
- |
- |
- |
- |
|
378 |
285 |
- |
- |
"Affrancamento" gain (IRB) |
|
- |
- |
- |
- |
|
38 |
28 |
- |
- |
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
114 |
78 |
- |
- |
Total
impact on tax |
|
- |
- |
- |
- |
|
152 |
106 |
- |
- |
Reclassification of held-for-sale operations (IRB) |
|
(1) |
(4) |
- |
- |
|
(1) |
(4) |
- |
- |
Impairment on goodwill (CC) |
|
- |
- |
(55) |
(55) |
|
- |
- |
(55) |
(55) |
Reclassification of held-for-sale operations (SFS) |
|
- |
- |
(69) |
(69) |
|
- |
- |
(69) |
(69) |
Ongoing sale project (WM) |
|
- |
- |
- |
- |
|
5 |
5 |
- |
- |
Total
impact on Net income from discounted or held-for-sale
operations |
|
(1) |
(4) |
(124) |
(124) |
|
3 |
0 |
(124) |
(124) |
Total impact of specific items |
|
(19) |
(12) |
(148) |
(139) |
|
549 |
454 |
(372) |
(305) |
Asset gathering |
|
- |
- |
(28) |
(19) |
|
116 |
80 |
(144) |
(110) |
French Retail
banking |
|
- |
- |
- |
- |
|
(23) |
(16) |
(17) |
(11) |
International Retail
banking |
|
(12) |
(8) |
- |
- |
|
363 |
279 |
(8) |
(4) |
Specialised financial
services |
|
- |
- |
(69) |
(69) |
|
5 |
5 |
(69) |
(69) |
Large customers |
|
(7) |
(4) |
8 |
7 |
|
(42) |
(24) |
22 |
16 |
Corporate centre |
|
- |
- |
(59) |
(58) |
|
130 |
130 |
(156) |
(127) |
* Impact
before tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
Appendix 2 – Credit Agricole Group: results by business
lines
Group Crédit Agricole – results by business lines, Q3-21
and Q3-20
|
Q3-21 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,408 |
934 |
810 |
1,573 |
704 |
1,528 |
11 |
8,969 |
Operating expenses excl. SRF |
(2,146) |
(566) |
(509) |
(738) |
(370) |
(901) |
(222) |
(5,452) |
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
1,262 |
368 |
301 |
835 |
335 |
627 |
(211) |
3,516 |
Cost of risk |
(136) |
(41) |
(109) |
6 |
(108) |
(12) |
(4) |
(403) |
Equity-accounted entities |
0 |
- |
1 |
25 |
79 |
2 |
- |
107 |
Net income on other assets |
(6) |
1 |
0 |
(0) |
(7) |
(3) |
0 |
(14) |
Change in value of goodwill |
(2) |
- |
- |
- |
- |
0 |
- |
(2) |
Income before tax |
1,118 |
329 |
193 |
865 |
299 |
615 |
(215) |
3,205 |
Tax |
(328) |
(88) |
(60) |
(168) |
(68) |
(135) |
55 |
(792) |
Net income from discont'd or held-for-sale ope. |
- |
- |
(3) |
1 |
(1) |
- |
(0) |
(3) |
Net income |
790 |
240 |
131 |
698 |
230 |
479 |
(159) |
2,410 |
Non controlling interests |
(0) |
0 |
(21) |
(118) |
(31) |
(17) |
(1) |
(187) |
Net income Group Share |
790 |
240 |
111 |
580 |
200 |
463 |
(161) |
2,222 |
|
Q3-20 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,308 |
889 |
1,421 |
652 |
619 |
1,578 |
2 |
8,468 |
Operating expenses excl. SRF |
(2,115) |
(550) |
(658) |
(414) |
(289) |
(871) |
(199) |
(5,096) |
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
1,192 |
339 |
762 |
238 |
330 |
708 |
(198) |
3,372 |
Cost of risk |
6 |
(83) |
(41) |
(120) |
(141) |
(217) |
1 |
(596) |
Equity-accounted entities |
(2) |
- |
17 |
- |
72 |
0 |
(0) |
88 |
Net income on other assets |
(2) |
1 |
(1) |
6 |
(11) |
1 |
(1) |
(6) |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,194 |
258 |
737 |
124 |
250 |
492 |
(197) |
2,858 |
Tax |
(398) |
(74) |
(173) |
(33) |
(43) |
(119) |
98 |
(743) |
Net income from discont'd or held-for-sale ope. |
(5) |
- |
- |
(41) |
(69) |
- |
(55) |
(170) |
Net income |
790 |
184 |
564 |
51 |
138 |
372 |
(154) |
1,945 |
Non controlling interests |
(2) |
(0) |
(112) |
(20) |
(26) |
(15) |
(1) |
(177) |
Net income Group Share |
789 |
184 |
452 |
31 |
112 |
357 |
(155) |
1,769 |
Group Crédit Agricole – results by business lines, 9M-21 et
9M-20
|
9M-21
(stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
10,416 |
2,757 |
2,338 |
4,920 |
2,007 |
4,753 |
131 |
27,322 |
Operating expenses excl. SRF |
(6,649) |
(1,709) |
(1,432) |
(2,272) |
(1,032) |
(2,732) |
(667) |
(16,493) |
SRF |
(87) |
(59) |
(33) |
(7) |
(23) |
(328) |
58 |
(479) |
Gross operating income |
3,680 |
989 |
873 |
2,641 |
952 |
1,693 |
(478) |
10,350 |
Cost of risk |
(476) |
(167) |
(331) |
(19) |
(369) |
(38) |
(9) |
(1,410) |
Equity-accounted entities |
(11) |
- |
1 |
63 |
241 |
5 |
- |
299 |
Net income on other assets |
6 |
2 |
(13) |
(1) |
5 |
(39) |
3 |
(37) |
Change in value of goodwill |
- |
- |
378 |
- |
- |
0 |
- |
378 |
Income before tax |
3,199 |
824 |
908 |
2,684 |
828 |
1,621 |
(484) |
9,580 |
Tax |
(957) |
(239) |
(132) |
(468) |
(177) |
(355) |
134 |
(2,193) |
Net income from discontinued or held-for-sale operations |
- |
- |
(3) |
5 |
- |
- |
(0) |
2 |
Net income |
2,242 |
585 |
773 |
2,221 |
651 |
1,266 |
(350) |
7,389 |
Non controlling interests |
(1) |
(0) |
(131) |
(385) |
(82) |
(39) |
(4) |
(642) |
Net income Group Share |
2,241 |
585 |
642 |
1,837 |
569 |
1,227 |
(354) |
6,746 |
|
9M-20
(stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
9,631 |
2,617 |
4,115 |
2,013 |
1,873 |
4,873 |
(191) |
24,930 |
Operating expenses excl. SRF |
(6,401) |
(1,678) |
(2,130) |
(1,304) |
(949) |
(2,612) |
(607) |
(15,680) |
SRF |
(123) |
(42) |
(6) |
(25) |
(20) |
(260) |
(86) |
(562) |
Gross operating income |
3,107 |
897 |
1,979 |
684 |
904 |
2,001 |
(883) |
8,688 |
Cost of risk |
(664) |
(301) |
4 |
(436) |
(579) |
(719) |
(38) |
(2,733) |
Equity-accounted entities |
1 |
- |
46 |
- |
204 |
5 |
(0) |
256 |
Net income on other assets |
(6) |
2 |
2 |
72 |
7 |
1 |
(1) |
78 |
Change in value of goodwill |
(3) |
- |
- |
- |
- |
- |
- |
(3) |
Income before tax |
2,434 |
598 |
2,032 |
319 |
536 |
1,288 |
(922) |
6,286 |
Tax |
(862) |
(183) |
(501) |
(87) |
(25) |
(223) |
350 |
(1,531) |
Net income from discontinued or held-for-sale operations |
(5) |
- |
- |
(41) |
(69) |
- |
(55) |
(171) |
Net income |
1,567 |
415 |
1,531 |
191 |
442 |
1,065 |
(627) |
4,584 |
Non controlling interests |
(3) |
(0) |
(244) |
(60) |
(72) |
(41) |
(5) |
(424) |
Net income Group Share |
1,564 |
415 |
1,287 |
131 |
370 |
1,024 |
(632) |
4,159 |
Appendix 3 –
Crédit Agricole S.A.:
results by business line
Crédit Agricole S.A. – results by business lines, Q3-21 and
Q3-20
|
Q3-21 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,571 |
934 |
794 |
704 |
1,527 |
0 |
5,531 |
Operating expenses excl. SRF |
(738) |
(566) |
(495) |
(370) |
(901) |
(189) |
(3,259) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
833 |
368 |
299 |
335 |
626 |
(189) |
2,272 |
Cost of risk |
6 |
(41) |
(109) |
(108) |
(12) |
(2) |
(266) |
Equity-accounted entities |
25 |
- |
1 |
79 |
2 |
(4) |
103 |
Net income on other assets |
(0) |
1 |
0 |
(7) |
(3) |
(0) |
(8) |
Income before tax |
864 |
329 |
192 |
299 |
614 |
(196) |
2,101 |
Tax |
(168) |
(88) |
(59) |
(68) |
(135) |
49 |
(470) |
Net income from discontinued or held-for-sale operations |
1 |
- |
(3) |
(1) |
- |
- |
(3) |
Net income |
696 |
240 |
130 |
230 |
478 |
(147) |
1,628 |
Non controlling interests |
(123) |
(11) |
(31) |
(31) |
(26) |
(4) |
(226) |
Net income Group Share |
573 |
230 |
99 |
200 |
452 |
(151) |
1,402 |
|
Q3-20 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,411 |
889 |
657 |
619 |
1,579 |
(3) |
5,151 |
Operating expenses excl. SRF |
(658) |
(550) |
(415) |
(289) |
(871) |
(209) |
(2,991) |
SRF |
- |
- |
- |
- |
- |
- |
- |
Gross operating income |
753 |
339 |
241 |
330 |
708 |
(212) |
2,160 |
Cost of risk |
(41) |
(83) |
(124) |
(141) |
(217) |
2 |
(605) |
Equity-accounted entities |
17 |
- |
- |
72 |
0 |
9 |
98 |
Net income on other assets |
(1) |
1 |
6 |
(11) |
1 |
0 |
(3) |
Income before tax |
728 |
258 |
123 |
250 |
492 |
(201) |
1,650 |
Tax |
(172) |
(74) |
(33) |
(43) |
(119) |
96 |
(346) |
Net income from discontinued or held-for-sale operations |
- |
- |
(0) |
(69) |
- |
(55) |
(125) |
Net income |
556 |
184 |
89 |
138 |
372 |
(160) |
1,180 |
Non controlling interests |
(116) |
(8) |
(26) |
(26) |
(23) |
(4) |
(203) |
Net income Group Share |
440 |
176 |
63 |
112 |
350 |
(164) |
977 |
Crédit Agricole S.A. – results by business lines, 9M-21 and
9M-20
|
9M-21 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
4,919 |
2,757 |
2,289 |
2,007 |
4,753 |
119 |
16,843 |
Operating expenses excl. SRF |
(2,272) |
(1,709) |
(1,392) |
(1,032) |
(2,732) |
(573) |
(9,709) |
SRF |
(7) |
(59) |
(33) |
(23) |
(328) |
58 |
(392) |
Gross operating income |
2,640 |
989 |
864 |
952 |
1,693 |
(396) |
6,742 |
Cost of risk |
(19) |
(167) |
(329) |
(369) |
(38) |
(6) |
(929) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
63 |
- |
1 |
241 |
5 |
(19) |
291 |
Net income on other assets |
(1) |
2 |
(13) |
5 |
(39) |
4 |
(42) |
Change in value of goodwill |
- |
- |
378 |
- |
0 |
- |
378 |
Income before tax |
2,683 |
824 |
901 |
828 |
1,621 |
(417) |
6,440 |
Tax |
(467) |
(239) |
(131) |
(177) |
(355) |
124 |
(1,245) |
Net income from discontinued or held-for-sale operations |
5 |
- |
(3) |
- |
- |
- |
2 |
Net income |
2,221 |
585 |
767 |
651 |
1,266 |
(293) |
5,197 |
Non controlling interests |
(402) |
(26) |
(193) |
(82) |
(65) |
(13) |
(781) |
Net income Group Share |
1,819 |
559 |
574 |
569 |
1,201 |
(306) |
4,416 |
|
9M-20 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
4,090 |
2,617 |
1,967 |
1,873 |
4,872 |
(170) |
15,248 |
Operating expenses excl. SRF |
(2,129) |
(1,678) |
(1,263) |
(949) |
(2,612) |
(594) |
(9,226) |
SRF |
(6) |
(42) |
(25) |
(20) |
(260) |
(86) |
(439) |
Gross operating income |
1,954 |
897 |
678 |
904 |
2,000 |
(850) |
5,583 |
Cost of risk |
4 |
(301) |
(438) |
(579) |
(719) |
(36) |
(2,068) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
46 |
- |
- |
204 |
5 |
22 |
277 |
Net income on other assets |
2 |
2 |
72 |
7 |
1 |
0 |
84 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
2,007 |
598 |
312 |
536 |
1,287 |
(863) |
3,876 |
Tax |
(495) |
(183) |
(86) |
(25) |
(223) |
320 |
(692) |
Net income from discontinued or held-for-sale operations |
- |
- |
(1) |
(69) |
- |
(55) |
(125) |
Net income |
1,512 |
415 |
225 |
442 |
1,064 |
(599) |
3,059 |
Non controlling interests |
(255) |
(19) |
(74) |
(72) |
(62) |
(9) |
(490) |
Net income Group Share |
1,257 |
396 |
151 |
370 |
1,002 |
(608) |
2,568 |
Appendix 4 – Methods used to calculate earnings per
share, net asset value per share
(€m) |
|
Q3-21 |
Q3-20 |
|
9M-21 |
9M-20 |
|
∆ Q3/Q3 |
∆ 9M/9M |
|
|
|
|
|
|
|
|
|
|
Net income
Group share - stated |
|
1,402 |
977 |
|
4,416 |
2,568 |
|
+43.5% |
+71.9% |
- Interests on
AT1, including issuance costs, before tax |
|
(97) |
(65) |
|
(290) |
(294) |
|
+49.2% |
(1.4%) |
NIGS
attributable to ordinary shares - stated |
[A] |
1,305 |
912 |
|
4,126 |
2,274 |
|
+43.1% |
+81.4% |
Average number
shares in issue, excluding treasury shares (m) |
[B] |
3,050.3 |
2,882.3 |
|
2,979.4 |
2,882.6 |
|
+5.8% |
+3.4% |
Net earnings per share - stated |
[A]/[B] |
0.43 € |
0.32 € |
|
1.38 € |
0.79 € |
|
+35.2% |
+75.5% |
Underlying net
income Group share (NIGS) |
|
1,414 |
1,115 |
|
3,962 |
2,874 |
|
+26.7% |
+37.9% |
Underlying
NIGS attributable to ordinary shares |
[C] |
1,317 |
1,050 |
|
3,672 |
2,580 |
|
+25.3% |
+42.3% |
Net earnings per share - underlying |
[C]/[B] |
0.43 € |
0.36 € |
|
1.23 € |
0.89 € |
|
+18.4% |
+37.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
30/09/2021 |
30/09/2020 |
|
|
|
Shareholder's
equity Group share |
|
|
|
|
66,809 |
64,591 |
|
|
|
- AT1
issuances |
|
|
|
|
(4,886) |
(5,134) |
|
|
|
- Unrealised
gains and losses on OCI - Group share |
|
|
|
|
(2,233) |
(2,562) |
|
|
|
- Payout
assumption on annual results* |
|
|
|
|
(1,857) |
|
|
|
|
Net book value (NBV), not revaluated, attributable
to ordin. sh. |
[D] |
|
|
|
57,833 |
56,894 |
|
|
|
- Goodwill
& intangibles** - Group share |
|
|
|
|
(17,755) |
(18,301) |
|
|
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
|
|
40,078 |
38,593 |
|
|
|
Total shares
in issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,043.9 |
2,882.0 |
|
|
|
NBV per share
, after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
19.0 € |
19.7 € |
|
|
|
TNBV per
share, after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
13.2 € |
13.4 € |
|
|
|
* dividend
proposed to the Board meeting to be paid |
|
|
|
|
|
|
|
|
|
** including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
9M-21 |
9M-20 |
|
|
|
Net income
Group share - stated |
[K] |
|
|
|
4,416 |
2,568 |
|
|
|
Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
|
|
|
IFRIC |
[M] |
|
|
|
-568 |
-493 |
|
|
|
Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*2+[M] |
|
|
|
6,077 |
3,589 |
|
|
|
Interests on
AT1, including issuance costs, before tax, annualised |
[O] |
|
|
|
-387 |
-392 |
|
|
|
Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
5,690 |
3,197 |
|
|
|
Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
|
|
38,961 |
36,102 |
|
|
|
Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
14.6% |
8.9% |
|
|
|
Underlying Net
income Group share |
[Q] |
|
|
|
3,962 |
2,874 |
|
|
|
Underlying
NIGS annualised |
[R] = ([Q]-[M])*12/9+[M] |
|
|
|
5,471 |
3,996 |
|
|
|
Underlying
NIGS adjusted |
[S] = [R]+[O] |
|
|
|
5,085 |
3,604 |
|
|
|
Underlying
ROTE adjusted(%) |
= [S] / [J] |
|
|
|
13.1% |
10.0% |
|
|
|
*** including
assumption of dividend for the current exercise |
|
|
|
|
0.0% |
0.0% |
|
|
|
Appendix 5 –
CACF P&L excluding
scope effect
€m |
Q3-21stated |
Specific items |
Q3-21underlying |
Q3-20stated |
Specific items |
Q3-20underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
Q3-20CACF NL |
Q3-20excl. CACF
NL |
Q3-21CACF NL |
Q3-21excl. CACF
NL |
∆ Q3/Q3underlying excl. CACF
NL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
553 |
- |
553 |
488 |
- |
488 |
+13.5% |
+13.5% |
(15) |
502 |
36 |
517 |
+3.0% |
Operating
expenses excl.SRF |
(290) |
- |
(290) |
(218) |
- |
(218) |
+33.0% |
+33.0% |
29 |
(247) |
(36) |
(255) |
+3.0% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
|
- |
|
- |
n.m. |
Gross operating income |
263 |
- |
263 |
269 |
- |
269 |
(2.4%) |
(2.4%) |
14 |
255 |
0 |
263 |
+3.1% |
Cost of
risk |
(92) |
- |
(92) |
(127) |
- |
(127) |
(27.4%) |
(27.4%) |
0 |
(127) |
6 |
(98) |
(23.0%) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
- |
n.m. |
Equity-accounted entities |
79 |
- |
79 |
72 |
- |
72 |
+9.7% |
+9.7% |
- |
72 |
- |
79 |
+9.7% |
Net income on
other assets |
(7) |
- |
(7) |
(10) |
- |
(10) |
(29.2%) |
(29.2%) |
- |
(10) |
- |
(7) |
(29.2%) |
Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
ns |
ns |
- |
- |
- |
- |
ns |
Income before
tax |
243 |
- |
243 |
205 |
- |
205 |
+18,7% |
+18,7% |
15 |
190 |
6 |
237 |
+24.8% |
Tax |
(54) |
- |
(54) |
(32) |
- |
(32) |
+69,1% |
+69,1% |
- |
(32) |
(5) |
(48) |
+52.7% |
Net income from
discont'd or held-for-sale ope. |
(1) |
- |
(1) |
(69) |
(69) |
- |
ns |
ns |
- |
- |
(1) |
(0) |
ns |
Net income |
189 |
- |
189 |
104 |
(69) |
173 |
+81,1% |
+8,9% |
15 |
158 |
0 |
188 |
+19.1% |
Non controlling
interests |
(31) |
- |
(31) |
(26) |
- |
(26) |
+17,3% |
+17,3% |
|
(26) |
(0) |
(31) |
+17.3% |
Net income Group
Share |
158 |
- |
158 |
78 |
(69) |
147 |
x 2 |
+7,4% |
15 |
132 |
0 |
158 |
+19.5% |
Appendix 6 – P&L
IRB excl. Italy,
excluding scope effect (excluding CA
Serbia)
€m |
Q3-21stated |
Specific items |
Q3-21underlying |
Q3-20stated |
Specific items |
Q3-20underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
Q3-20CA Srbija
AD |
Q3-20adjusted |
Q3-21CA Srbija
AD underlying |
Q3-21adjusted |
∆ Q3/Q3underlying excl. CA
Srbija |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
182 |
(2) |
184 |
195 |
- |
195 |
(6.6%) |
(5.5%) |
12 |
183 |
(27) |
211 |
+15.4% |
Operating
expenses excl.SRF |
(112) |
(0) |
(112) |
(134) |
- |
(134) |
(15.9%) |
(16.2%) |
(8) |
(125) |
16 |
(128) |
+2.2% |
SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
|
- |
|
- |
n.m. |
Gross operating income |
70 |
(3) |
72 |
61 |
- |
61 |
+13.4% |
+18.0% |
4 |
58 |
(11) |
83 |
+44.0% |
Cost of
risk |
(29) |
- |
(29) |
(38) |
- |
(38) |
(22.5%) |
(22.5%) |
(0) |
(38) |
1 |
(31) |
(18.9%) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
|
- |
n.m. |
Equity-accounted entities |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
- |
n.m. |
Net income on
other assets |
(1) |
- |
(1) |
7 |
- |
7 |
n.m. |
n.m. |
0 |
7 |
(0) |
(1) |
n.m. |
Change in value
of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
- |
n.m. |
Income before
tax |
39 |
(3) |
42 |
30 |
- |
30 |
+30.8% |
+40.2% |
3 |
27 |
(10) |
52 |
+93.8% |
Tax |
(14) |
- |
(14) |
(11) |
- |
(11) |
+32.7% |
+32.7% |
(0) |
(10) |
1 |
(15) |
+50.4% |
Net income from
discont'd or held-for-sale ope. |
(3) |
(1) |
(1) |
(0) |
- |
(0) |
n.m. |
n.m. |
- |
(0) |
- |
(1) |
x 2.9 |
Net income |
22 |
(4) |
27 |
19 |
- |
19 |
+18.5% |
+41.0% |
3 |
16 |
(8) |
35 |
x 2.2 |
Non controlling
interests |
(10) |
- |
(10) |
(8) |
- |
(8) |
+27.0% |
+27.0% |
- |
(8) |
|
(10) |
+27.0% |
Net income Group
Share |
13 |
(4) |
17 |
11 |
- |
11 |
+12.6% |
+50.8% |
3 |
8 |
(8) |
25 |
x 3.1 |
Alternative Performance Indicators
NBV Net Book Value not
re-evaluatedThe Net Book Value not re-evaluated
corresponds to the shareholders’ equity Group share from which the
amount of the AT1 issues, the unrealised gains and/or losses on OCI
Group share and the pay-out assumption on annual results have been
deducted.
NBV per share Net Book Value per share -
NTBV per share Net Tangible Book Value per shareOne of the
methods for calculating the value of a share. This represents the
Net Book Value divided by the number of shares in issue at end of
period, excluding treasury shares.
Net Tangible Book Value per share represents the
Net Book Value after deduction of intangible assets and goodwill,
divided by the number of shares in issue at end of period,
excluding treasury shares.
EPS Earnings
per ShareThis is the net income
Group share, from which the AT1 coupon has been deducted, divided
by the average number of shares in issue excluding treasury shares.
It indicates the portion of profit attributable to each share (not
the portion of earnings paid out to each shareholder, which is the
dividend). It may decrease, assuming the net income Group share
remains unchanged, if the number of shares increases.
Cost/income ratioThe
cost/income ratio is calculated by dividing operating expenses by
revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of
risk/outstandingsCalculated by dividing
the cost of credit risk (over four quarters on a rolling basis) by
outstandings (over an average of the past four quarters, beginning
of the period). It can also be calculated by dividing the
annualised cost of credit risk for the quarter by outstandings at
the beginning of the quarter. Similarly, the cost of risk for the
period can be annualised and divided by the average outstandings at
the beginning of the period.
Since the first quarter of 2019, the
outstandings taken into account are the customer outstandings,
before allocations to provisions.
The calculation method for the indicator is
specified each time the indicator is used.
Doubtful loanDefaulting loan.
The debtor is considered to be in default when at least one of the
following conditions has been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation;
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loanLoan which has
been provisioned due to a risk of non-repayment.
Impaired (or doubtful) loan coverage
ratio: This ratio divides the outstanding provisions by
the impaired gross customer outstandings.
Impaired (or doubtful) loan
ratio:This ratio divides the gross customer outstandings
depreciated on an individual basis, before provisions, by the total
gross customer outstandings.
Net income Group shareNet
income/(loss) for the financial year (after corporate income tax).
Equal to net income Group share, less the share attributable to
non-controlling interests in fully consolidated subsidiaries.
Underlying Net income Group
shareThe underlying net income Group share represents the
stated net income Group share from which specific items have been
deducted (i.e. non-recurring or exceptional items).
Net income Group share attributable to
ordinary shares The net income Group share attributable to
ordinary shares represents the net income Group share from which
the AT1 coupon has been deducted, including issuing costs before
tax.
RoTE Return on Tangible
EquityThe RoTE (Return on Tangible Equity) measures the
return on tangible capital by dividing the Net income Group share
annualised by the group’s NBV net of intangibles and goodwill. The
annualised Net income Group share corresponds to the annualisation
of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding
impairments of intangible assets and restating each period of the
IFRIC impacts in order to linearise them over the year.
Disclaimer
The financial information on Crédit Agricole
S.A. and Crédit Agricole Group for third quarter and first nine
months of 2021 comprises this press release, the presentation and
the attached appendices which are available on the website:
https://www.credit-agricole.com/en/finance/finance/financial-publications.
This presentation may include prospective
information on the Group, supplied as information on trends. This
data does not represent forecasts within the meaning of EU
Delegated Act 2019/980 of 14 March 2019 (chapter 1, article 1,
d).
This information was developed from scenarios
based on a number of economic assumptions for a given competitive
and regulatory environment. Therefore, these assumptions are by
nature subject to random factors that could cause actual results to
differ from projections. Likewise, the financial statements are
based on estimates, particularly in calculating market value and
asset impairment.
Readers must take all these risk factors and
uncertainties into consideration before making their own
judgement.
Applicable standards and comparability
The figures presented for the nine-month period
ending 30 September 2021 have been prepared in accordance with IFRS
as adopted in the European Union and applicable at that date, and
with prudential regulations currently in force. This financial
information does not constitute a set of financial statements for
an interim period as defined by IAS 34 “Interim Financial
Reporting” and has not been audited.
Note: The scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups have not
changed materially since the Crédit Agricole S.A. 2020
Universal Registration Document and its A.01 update (including all
regulatory information about the Crédit Agricole Group) were filed
with the AMF (the French Financial Markets Authority).
The sum of values contained in the tables and
analyses may differ slightly from the total reported due to
rounding.
On 30 June 2020, once all necessary regulatory
approvals were secured, Amundi acquired the entire share capital of
Sabadell Asset Management.
At 30 June 2021, following the buyback by Crédit
Agricole Consumer Finance of 49% of the share capital of the CACF
Bankia S.A. joint venture, CACF Bankia S.A. is fully consolidated
in Crédit Agricole S.A.’s consolidated financial statements.
As at 30 June 2021 following the takeover bid
launched by Crédit Agricole Italia for Credito Valtellinese, 100%
of Credito Valtellinese is held by Crédit Agricole Italia and is
fully consolidated in the consolidated financial statements of
Crédit Agricole S.A.
Financial Agenda
10 February
2022 Publication of
the 2021 fourth quarter and full year results5 May
2022
Publication
of the 2022 first quarter results24 May 2022
General
Meeting in Montpellier4 August 2022
Publication
of 2022 second quarter and first half results10 November 2022
Publication of the
2022 third quarter and first nine months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Charlotte de
Chavagnac +33 (0)1
57 72 11
17 charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain + 33 1 43 23
25
41 olivier.tassain@credit-agricole-sa.frBertrand
Schaefer +33 (0)1 49
53 43
76 bertrand.schaefer@ca-fnca.fr
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
Institutional
shareholders |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
|
|
|
Clotilde
L’Angevin |
+ 33 1 43 23 32
45 |
clotilde.langevin@credit-agricole-sa.fr |
Equity
investors: |
|
|
Toufik
Belkhatir |
+ 33 1 57 72 12
01 |
toufik.belkhatir@credit-agricole-sa.fr |
Joséphine
Brouard |
+ 33 1 43 23 48
33 |
joséphine.brouard@credit-agricole-sa.fr |
Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
Nicolas
Ianna |
+ 33 1 43 23 55
51 |
nicolas.ianna@credit-agricole-sa.fr |
Anna
Pigoulevski |
+ 33 1 43 23 40
59 |
anna.pigoulevski@credit-agricole-sa.fr |
Annabelle
Wiriath |
+ 33 1 43 23 55
52 |
annabelle.wiriath@credit-agricole-sa.fr |
|
|
|
Credit investors and rating agencies: |
|
Caroline
Crépin |
+ 33 1 43 23 83
65 |
caroline.crepin@credit-agricole-sa.fr |
Marie-Laure
Malo |
+ 33 1 43 23 10
21 |
marielaure.malo@credit-agricole-sa.fr |
Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@credit-agricole-sa.fr |
|
|
|
|
|
|
|
|
|
|
|
|
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
|
Crédit_Agricole |
|
Crédit
Agricole Group |
|
créditagricole_sa |
1 For the calculation on a like for like basis, excluded
entities for 2021 : Creval, CA Serbia, JV Amundi Bank of China,
Fund Channel, Anatec, Sabadell, CACF NL, So You, Kas Bank ;
excluded entities for 2020 : CA serbia, Via Vita, IWM Miami
and Brazil, CACF NL ; excluded entities for 2019 : CA
serbia, CA Romania, Via Vita, IWM Miami and Brazil, CACF NL 2
Underlying ROTE calculated on the basis of annualised underlying
net income Group share and annualised IFRIC costs3 Estimated
based on CET1 level and risk weighted assets at end September 2021;
the impact will be recognised in Q4-214 Excluding state-guaranteed
loans for Q3-2020 (€2.6 billion) and negligible for Q3-20215
Excluding state-guaranteed loans6 Underlying, excluding specific
items. See Appendixes for more details on specific items. 7 For the
calculation on a like for like basis, excluded entities for 2021 :
Creval, CA Serbia, JV Amundi Bank of China, Fund Channel, Anatec,
Sabadell, CACF NL, So You, Kas Bank, Bankoa ; excluded
entities for 2020 : CA serbia, Via Vita, IWM Miami and Brazil,
CACF NL, Bankoa ; excluded entities for 2019 : CA serbia,
CA Romania, Via Vita, IWM Miami and Brazil, CACF NL,
Bankoa 8 This led to CACF NL 9M-2021 revenues being
integrated into CA Consumer Finance’s Q3-2021 revenues9 Excluding
scope effect related to the first-time consolidation of Creval in
Q2-2110 The cost of risk relative to 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 quarters11 The cost of risk relative
to 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 quarter12
Equipment rate - Home-Car-Health policies, Legal, All
Mobile/Portable or personal accident insurance13 Number of
customers with an active profile on the Ma Banque app or who had
visited CAEL (CA online) during the month / number of adult
customers having an active demand deposit account14 Excluding
state-guaranteed loans for Q3-2020 (€2.6 billion) and
negligible for Q3-202115 Specialised markets: farmers, SMEs and
small businesses, corporates and public authorities16 The cost of
risk on outstandings reached 16 basis points over a four rolling
quarter period and 9 basis points on an annualised quarterly basis
in third quarter 202117 LCL, CA Italia and Bforbank18 Gross
operating income excluding SRF. 2021 excluded entities: CreVal, CA
Serbia, JV Amundi Bank of China, Fund Channel, Annatec, CACF NL, So
You, Kas Bank. 2020 excluded entities: CA Serbia, Via Vita, IWM
Brazil and Miami, CACF NL. Q3/Q3 gross operating income up +€22m
year-on-year due to scope effect. . 9M/9M gross operating income up
+€86m year-on-year due to scope effect.19 Underlying ROTE
calculated on the basis of annualised underlying net income Group
share and annualised IFRIC costs20 Simulated from underlying
2020 EPS adjusted for transactions completed and/or announced in
2021
21 Underlying, excluding specific items. See Appendixes for more
details on specific items. 22 2021 excluded entities: CreVal, CA
Serbia, JV Amundi Bank of China, Fund Channel, Annatec, CACF NL, So
You, Kas Bank. 2020 excluded entities: CA Serbia, Via Vita, IWM
Brazil and Miami, CACF NL. Q3/Q3 revenues up +€165m year-on-year
due to scope effect. 9M/9M revenues up +€277m year-on-year due to
scope effect.23 Quarterly CA Consumer Finance revenues excluding
CACF NL.24 2021 excluded entities: CreVal, CA Serbia. 2020 excluded
entities: CA Serbia. Q3/Q3 revenues up +€106m year-on-year due to
scope effect. 9M/9M revenues up +€209m year-on-year due to scope
effect.25 2021 excluded entities: CreVal, CA Serbia, JV Amundi Bank
of China, Fund Channel, Annatec, CACF NL, So You, Kas Bank. 2020
excluded entities: CA Serbia, Via Vita, IWM Brazil and Miami, CACF
NL. Q3/Q3 expenses up +€143m year-on-year due to scope effect.
9M/9M expenses up +€190m year-on-year due to scope effect.26 Data
on an underlying basis27 2021 excluded entities: CreVal, CA Serbia.
2020 excluded entities: CA Serbia. Q3/Q3 expenses up +€68m
year-on-year due to scope effect. 9M/9M expenses up +€133m
year-on-year due to scope effect.28 2021 excluded entities: CreVal,
CA Serbia, JV amundi Bank of China, Fund Channel, Annatec, CACF NL,
So You, Kas Bank. 2020 excluded entities: CA Serbia, Via Vita, IWM
Brazil and Miami, CACF NL. Q3/Q3 gross operating income up +€22m
year-on-year due to scope effect. . 9M/9M gross operating income up
+€86m year-on-year due to scope effect.29 Provisioning rate
calculated with outstandings in Stage 3 as denominator, and the sum
of the provisions recorded in Stages 1, 2 and 3 as numerator30 The
cost of risk relative to 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 quarters31 The cost of risk relative to
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 quarter32
See Appendixes for
more details on specific items.33 Estimated on the
basis of the CET1 and RWA amounts as of end of September 2021;
impact will be accounted for in Q4-202134 Calculated with the
normative tax rate of 28,41%35 Simulated using 2020 underlying EPS,
adjusted for transactions that have been carried out and / or
announced36 Subject to dividend payment proposal by the Board of
Directors of Crédit Agricole S.A. to the General Meetings held in
2022 and 202337 Reminder: exceptional payment of a €0.80 dividend
in 2021, €0.30 above the €0.50 corresponding to our 50%
distribution policy, as a first-step in the catch-up of the 2019
€0,70 dividend38 See details on the calculation of the business
lines’ ROTE (return on tangible equity) and RONE (return on
normalised equity) on p. 5039 The annualised underlying net income
Group share corresponds to the annualisation of the underlying net
income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period
for IFRIC impacts to linearise them over the year40 The annualised
underlying net income Group share corresponds to the annualisation
of the underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by
restating each period for IFRIC impacts to linearise them over the
year41 2021 excluded entities: CreVal, CA Serbia, JV Amundi Bank of
China, Fund Channel, Annatec,, CACF NL, So You, Kas Bank. 2020
excluded entities: CA Serbia, Via Vita, IWM Brazil and Miami, CACF
NL. Q3/Q3 revenues up +€165m year-on-year due to scope effect.
9M/9M revenues up +€277m year-on-year due to scope effect.42 2021
excluded entities: CreVal, CA Serbia, JV Amundi Bank of China, Fund
Channel, Annatec,, CACF NL, So You, Kas. 2020 excluded entities: CA
Serbia, Via Vita, IWM Brazil and Miami, CACF NL. Q3/Q3 expenses up
+€143m year-on-year due to scope effect. 9M/9M expenses up +€190m
year-on-year due to scope effect.
43 Increases adjusted for a change in accounting
method; excluding adjustment, growth was 4.5% in property and
casualty insurance and 3.1% in death &
disability/creditor/group insurance.
44 Source: Argus de l’assurance; based on 2020 revenues45
Source: Refinitiv R1746 Source: Refinitiv47 Source: Refinitiv N148
Source: Refinitiv N849 CACEIS transformation and development plan50
Like-for-like analysis: excluding CACF NL, which was classified
under IFRS 5 in third quarter 2020 and reintegrated into
line-by-line consolidation in third quarter 202151 Other
international entities excluding CACF NL and automotive JVs in
Italy and China52 The impact of the reintegration of CACF NL on a
line-by-line basis is detailed in Appendix 553 In third quarter
2021, full consolidation of SoYou on a line-by-line basis versus
equity-accounted consolidation at 50% previously. Excluding this
effect, +2.6% increase in revenues at constant scope54 Cost of risk
for the last four quarters as a proportion of the average
outstandings at the beginning of the period for the last four
quarters55 Excluding state-guaranteed loans56 Including
state-guaranteed loans57 Specific items: Creval consolidation costs
-€9m in operating expenses, +€1m in net income on other assets,
(-€4m in net income Group share)58 Detailed reclassification impact
in IFRS 5 of CA Sbrija A.D. See appendix 659 Excluding foreign
exchange impact60 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022. The Crédit Agricole Group applies
this provision and must, therefore, comply with a leverage ratio
requirement of 3.11% during this period.61 The daily leverage ratio
is calculated by taking into account the daily average of the
quarter’s securities financing transactions (SFTs) exposures
62 As part of its annual resolvability assessment, Crédit
Agricole Group has chosen to waive the possibility offered by
Article 72ter(3) of the Capital Requirements Regulation to use
senior preferred debt for compliance with its TLAC requirements in
2021.63 The Group is waiting for notifications under BRRD2, due to
delays in the transposition of BRRD2 in the European countries in
which it operates64 TLOF – Total Liabilities and Own Funds,
equivalent to the prudential balance sheet after netting of
derivatives65 Computation made in accordance with the BRRD
applicable to the requirements in force. MREL eligible liabilities
issued externally by all Group entities are included.66 On the
basis of the countercyclical buffer applicable on 30 September
2021
67 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022. Crédit Agricole S.A. applies this
provision and must, therefore, comply with a leverage ratio
requirement of 3.18% during this period68 Crédit Agricole S.A.’s
daily leverage ratio is calculated by taking into account the daily
average of the quarter’s securities financing transactions (SFTs)
exposures69 Excluding FCA Bank70 Gross amount before buy-backs and
amortisations 71 Gross amount before buy-backs and
amortisations
- CASA_2021-Q3_Results_PR_VDEF
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