Credit Agricole Sa: Results for the second quarter and first half
of 2019
Results for the second quarter and
first half of 2019
Q2-19: Business lines deliver increased
revenues
Crédit Agricole S.A. |
Underlying1 revenuesQ2:
€5,179m +0.6% Q2/Q2 H1: €10,081m +0.4%
H1/H1 |
Underlying net income2Q2:
€1,242m -12.4% Q2/Q2 H1: €2,038m
-7.6% H1/H1 |
CET1 ratio11.6% +0.1 pp in
Q2, well above the MTP target |
- Q2 stated net income1 €1,222m, -14.9% Q2/Q2
(H1: €1,985m, -13.4% H1/H1), down compared to
Q2-18, marked by net reversals in cost of risk in CIB, and
at the highest level since Crédit Agricole S.A.’s
IPO.
- Good performance in the business lines, stable underlying net
income1 of business lines H1/H1.
- Underlying EPS: Q2 €0.40, -14.1% Q2/Q2, H1
€0.63, -9.8% H1/H1; ROTE3 11.0% H1
annualised
- Increased revenues in the business lines
despite a challenging market environment
- Costs under control while financing development
projects: underlying1 cost/income ratio excluding SRF4 at
58.6%, positive jaws effect for the business lines.
- Cost of risk still low: 25bp5, one-off
provisions in CIB.
- CET1 ratio up to 11.6% in Q2, making a first
unwinding of the Switch possible in 2020.
- First achievements of the 2022 Medium-Term Plan:
development of non-Group partnerships (Abanca, Banco BPM,
FCA), acceleration in green finance, CAA becomes the #1
life insurer in France.
|
Crédit Agricole Group* |
Underlying7
revenuesQ2: €8,534 m +1.6% Q2/Q2
H1: €16,857 m +1.2 H1/H1
|
Underlying net income2Q2:
€1,846 m -10.2% Q2/Q2 H1: €3,281 m -3.7%
H1/H1 |
CET1 ratio 15.4% +0.1 pp in Q2
5.9 pp above the SREP6 |
n Stated net income2 for Q2: €1,813m, -12.7%
Q2/Q2 (H1: €3,163m, -9.8% H1/H1)n Operating expenses
excluding SRF4 under control over H1 (+1% H1/H1), SRF
expenses up (+9.4% H1/H1) n Cost of credit
risk low at 19bp5, one-off provisions in CIB and in the
Regional Banksn Increase in Regional Bank underlying revenues
of +2.8% H1/H1 * Crédit Agricole S.A. and Regional Banks at
100%. |
This press release comments on the results of Crédit Agricole
S.A. and those of Crédit Agricole Group, which comprises the Crédit
Agricole S.A. entities and the Crédit Agricole Regional Banks,
which own 56.6% of Crédit Agricole S.A. Please see p. 16 onwards of
this press release for details of specific items, which are
restated in the various indicators to calculate underlying results.
A reconciliation between the stated income statement and the
underlying income statement can be found from p.22 onwards for
Crédit Agricole Group and from p.18 onwards for
Crédit Agricole S.A.
Crédit Agricole
S.A.
High quarterly underlying net
income
- Underlying Group net income: Q2-19 €1,242m, -12.4%
Q2/Q2, H1-19 €2,038m, -7.6% H1/H1, stable
business line results (excluding Corporate centre) (+0.1%
H1/H1);
- Annualised underlying ROTE7 11.0%, good profitability
in all business lines;
- Growth in activity in a challenging
environment and compared to an historic Q2-18;
- Contribution of Asset gathering (AG) division to
net income up, and positive in all divisions except in
Large customers due to a reversal in cost of risk; deterioration of
the volatile component of the Corporate Centre.
Increase in Q2/Q2 revenues (+1.9% for
the business lines8)
and H1/H1 revenues (+1.4%)
- Dynamic customer capture, equipment, loans and customers
savings in Retail banking, strong inflows in Savings/retirement,
market share gains in Property and casualty Insurance;
- Outstandings at a record high in Asset management, in Insurance
and in Asset servicing, in particular thanks to a market
effect.
- Automobile JVs achieved excellent business growth, generating
equity-accounted income;
- Stable revenues H1/H1 in the Large customers division;
- Underlying revenues up +0.6% Q2/Q2, +0.4%
H1/H1.
Expenses well under control and cost of risk
still very low
- Underlying costs excluding SRF: +2.0% Q2/Q2 in
an environment of high investment; development costs increasing in
all divisions, €10m in one-off consulting fees on structural
operation projects (15% of the increase);
- Underlying cost/income ratio excluding SRF at 58.6% in Q2,
positive jaws effect for business lines;
- Cost of risk still very low at 25 bp, one-off
provisions in CIB;
Financial solidity confirmed this
quarter
- CET1 ratio at 11.6%, up 0.1 pp, well above the
11% MTP target, making a first unwinding the Switch possible in
2020; RWAs up moderately +0.9% June/March.
First achievements of the 2022 Medium-Term
Plan
- Development of non-Group partnerships:
signature of a partnership in non-life insurance with Abanca,
expansion and extension of the agreement between CACF and Banco BPM
and renewal of the partnership with FCA this quarter. Operations
with Santander and Kas Bank in Asset servicing this half-year.
- Acceleration in green finance: adoption of a
Group climate strategy and strengthening our leading position in
green bonds.
- Crédit Agricole Assurance becomes the #1 life insurer
in France9.
Crédit Agricole S.A.'s Board of Directors,
chaired by Dominique Lefebvre, met on 1 August 2019 to examine the
financial statements for the second quarter and
first half of 2019.
In the
second quarter of 2019, stated net income reached
€1,222 million, versus
€1,436 million in the
second quarter of 2018. Specific
items for this quarter had a limited net negative
impact of -€20 million on net income, while they had a
limited but positive +€19 million impact during the second quarter
of 2018.
Excluding these specific items,
underlying net income for the second quarter of
2019 totalled €1,242 million, a high point but
down -12.4% compared to the all-time high observed
in the second quarter of 2018 (the highest underlying quarterly net
income published by Crédit Agricole S.A. since its IPO in
December 2001).
Underlying earnings per share
stood at €0.40 in the second quarter of 2019, down
-14.1% compared to second quarter 2018.
Table 1.
Crédit Agricole S.A. - Stated and underlying results, Q2-19
and Q2-18
€m |
Q2-19 stated |
Q2-18 stated |
Var Q2/Q2 stated |
Q2-19 underlying |
Q2-18 underlying |
Var Q2/Q2 underlying |
|
|
|
|
|
|
|
Revenues |
5,149 |
5,171 |
(0.4%) |
5,179 |
5,146 |
+0.6% |
Operating expenses excl.SRF |
(3,033) |
(2,966) |
+2.3% |
(3,033) |
(2,974) |
+2.0% |
SRF |
(6) |
(11) |
(47.3%) |
(6) |
(11) |
(47.3%) |
Gross operating income |
2,111 |
2,195 |
(3.8%) |
2,140 |
2,162 |
(1.0%) |
Cost of risk |
(358) |
(223) |
+60.3% |
(358) |
(223) |
+60.3% |
Cost of legal risk |
- |
(5) |
(100.0%) |
- |
- |
n.m. |
Equity-accounted entities |
108 |
77 |
+39.7% |
108 |
77 |
+39.7% |
Net income on other assets |
(1) |
14 |
n.m. |
(1) |
14 |
n.m. |
Change in value of goodwill |
- |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
1,861 |
2,059 |
(9.6%) |
1,890 |
2,030 |
(6.9%) |
Tax |
(485) |
(448) |
+8.4% |
(494) |
(439) |
+12.7% |
Net income from discont'd or
held-for-sale ope. |
8 |
(1) |
n.m. |
8 |
(1) |
n.m. |
Net income |
1,384 |
1,610 |
(14.1%) |
1,404 |
1,590 |
(11.7%) |
Non controlling interests |
(161) |
(174) |
(7.0%) |
(162) |
(172) |
(6.2%) |
Net income Group Share |
1,222 |
1,436 |
(14.9%) |
1,242 |
1,418 |
(12.4%) |
Earnings per share (€) |
0.39 |
0.47 |
(16.8%) |
0.40 |
0.46 |
(14.1%) |
Cost/Income ratio excl.SRF (%) |
58.9% |
57.3% |
+1.5 pp |
58.6% |
57.8% |
+0.8 pp |
Activity grew in Crédit Agricole SA’s
business lines, despite a challenging environment, and
compared to a historically high second quarter 2018.
The Crédit Agricole S.A. business lines and the
Crédit Agricole Group retail networks, in particular the
Regional banks, which distribute the products and services of
Crédit Agricole S.A.’s business lines, again enjoyed
strong activity levels this quarter, in lending,
customer savings and protection of assets and
individuals. Customer equipment increased, reflecting the potential
for organic growth through revenue synergies of the Group’s
Universal Customer-focused Banking model.
In Savings/Retirement, premium
income increased by 26.9% compared to the second quarter 2018. Net
inflows continued to accelerate, reaching +€3.3 billion in
second quarter 2019, a level that has been growing steadily for the
past seven quarters. Crédit Agricole Assurances, which
remains France’s leading insurance company, also became the leading
life insurer in 201810. Inflows on unit-linked contracts reached
their highest level, at €1.5 billion (46% of total net inflows).
The share of ULs in outstandings reached 22.2%, an increase of 0.5
percentage points over one year. Over the last few years,
Crédit Agricole Assurances has adapted its strategy to
the low interest rate environment, and benefits from considerable
flexibility in coping with these conditions. At end June 2019, the
Policyholder Participation Reserve (“PPE”) stood at
€10.9 billion (versus €9.8 billion at end 2018), with
represents 5.2% of outstanding euro-denominated contracts. To
promote UL inflows, Crédit Agricole Assurances is also in the
process of implementing measures to encourage alternatives to
investments in the Euro fund.
- Crédit Agricole Assurances continued to enjoy steady growth in
property and casualty insurance, both in France
and abroad. Premium income increased by +7.8% compared to the
second quarter 2018. With another +191,000 contracts this
quarter, and over 400,000 contracts for the half year, the
number of contracts reached more than 13.8 million at end June
2019. In the LCL networks the equipment rate for individual
customers11 increased (24.4% as at end June 2019, an increase
of +1.3 percentage points since June 2018), as it did in the
Regional Banks (37.0% at end June 2019, an increase of
+1.5 percentage points since June 2018). The combined ratio is
well managed at 95.2%, an improvement of 0.9 percentage points year
on year, despite the frost/hail event of June 2019.
- Asset management (Amundi) saw sustained net
inflows of MLT assets (+€8 billion12) and outflows in treasury
products this half year, and benefitted from the recovery in
financial markets, bringing assets under management to €1,487
billion at end June 2019, up +1.4% year on year. Activity is in
line with the European asset management market.
- Retail banking is still showing strong sales
momentum, with high rates of credit growth, particularly in France
for LCL (up 9.5% compared to end June 2018), thanks to home loans
(+8.9%) and the small businesses and corporate markets (+11.4%),
but also in Italy for CA Italia (+3.6% excluding disposals of
doubtful loans), there again with a sharp increase in home loans,
(up +6.8%). Customer savings grew year on year at LCL (+6.0%),
driven by demand deposits (+12.4%) and passbook accounts (+9.8%),
whereas they declined for CA Italia (-0.5%), despite the growth in
off-balance sheet savings (+3.8%), due to action initiated since
the third quarter of 2018 aimed at reducing high-cost volatile
resources. Net customer capture is still buoyant at LCL
(+28,000 individual and small business customers in the first
half of 2019, including +8,000 new customers since the launch of
LCL Essentiel) and at CA Italia (+12,000 customers
in first half 2019). Equipment rates continue to rise at a
sustained pace (e.g. +8.2% in Comprehensive Home-Auto-Health
contracts at LCL, and, since second quarter 2019, a multiplication
by 1.7 in home loans at the three banks acquired by CA Italia at
the end of 2017).
- In Specialised financial services, gross
managed loans increased by 6.2% compared to end June 2018, and
CA Consumer Finance passed the €90 billion managed loans
mark this quarter, thanks to sustained production this quarter
(+4.5%), driven by Agos (+7.5%) and by automotive partnerships
(+9.3%). CAL&F’s factoring business is very buoyant, with
production reaching a four-year high in the second quarter of 2019,
with several large contracts, due to generate revenues in the
second half of the year.
- Lastly, activity in the Large customers business
line was close to the high second quarter 2018, thanks to
the resumption of investment banking activities, in a market that
is nevertheless still sluggish, and of capital markets, despite a
continuous erosion of margins. In Financing activities, CACIB
remains the world’s second largest project finance company in EMEA
at the end of June 201913, and has confirmed its leadership in
Commercial banking, becoming the number one in syndication in
EMEA14. Lastly, Asset servicing (CACEIS) posted record levels of
assets under custody (€2,874 billion, +9.2% year on year) and
assets under administration (€1,819 billion, +2.4% year on year),
thanks to sustained activity and a favourable market effect.
In keeping with the strategy outlined at the
presentation of the Group’s Medium Term Plan on 6 June 2019, CA
Consumer Finance and Crédit Agricole Assurances developed
non-Group partnerships in Europe this quarter.
- On 8 July, Crédit Agricole Assurances and
Abanca signed a partnership agreement to create a
non-life insurance company for the Spanish and Portuguese markets
over a 30 year period. The agreement provides for the creation of a
50/50-owned joint venture that will offer the market innovative
products based on technological solutions and a differentiated
customer experience. The alliance will combine ABANCA’s knowledge
of the customer base with the expertise developed by Crédit
Agricole Assurances in the European insurance market. The
transaction will be finalised once authorisations have been
obtained from the competent authorities.
- On 28 June 2019, CA Consumer Finance also signed a
final agreement with Banco BPM (Italy’s
third-largest bank) to strengthen their global partnership,
expanding their commercial relationship to the entire Banco BPM
branch network, including the acquisition of Profamily’s banking
business, and extending it for 15 years. On 19 July 2019, CACF also
signed an agreement with
Fiat Chrysler Automobiles (FCA) to
extend their 50/50 joint venture until 31 December 2024.
Besides these operations, the following
transactions were announced since the beginning of
2019:
- On 29 April, CACIB completed the disposal of a 4.9% stake in
Banque Saudi Fransi (BSF) to a
consortium headed by Ripplewood, thereby reducing its stake in
Banque Saudi Fransi to 10% and, subject to the exercise
of a warrant on 6% of the equity, to 4% by the
end of the year; the impact of this transaction was
booked in the second quarter directly in equity that may not be
reclassified.
- On 17 April, Crédit Agricole S.A. and
Santander announced the merger of their custody
and asset servicing operations; after this merger,
Crédit Agricole S.A. and Santander would hold 69.5% and
30.5% respectively of this new entity that would keep the name
“CACEIS” and combine the activities of CACEIS and
Santander Securities Services (“S3”) in Spain and Latin
America (Brazil, Mexico and Colombia); this new entity would
benefit from greater scale and stronger competitive positioning
thanks to an expanded geographical presence, which would make it be
better placed to capture growth in high potential markets (Latin
America and Asia). The operation should be completed before the end
of 2019.
- Lastly, on 26 July, CACEIS launched a friendly public takeover
bid for the total capital of KAS Bank; CACEIS
is confirming its pan‑European ambition by strengthening its
position in the Netherlands and its ability to serve the customers
of insurance companies and pension funds; this acquisition will
create value thanks its the strong potential for synergies;
completion of this takeover bid is expected to occur in the second
half of 2019.
Specific items in this quarter
had a limited net effect of -€20 million on net
income. They include only recurring volatile accounting
items, namely the DVA for -€3 million in net income and hedges of
the loan portfolios for -€6 million in the Large customers business
line, as well as the provision for home purchase savings schemes
for -€2 million and -€10 million respectively in net income in the
French Retail banking division and the Corporate Centre. In second
quarter 2018, specific items had a positive impact of +€19 million
and consisted of integration costs for Pioneer Investments at
Amundi in the amount of ‑€4 million, a provision reversal on
the integration costs for the three Italian banks for +€8
million15, the negative impact from a -€5 million fine imposed
by the ECB on Crédit Agricole S.A. and two of its
subsidiaries for non-compliance with ECB notification deadlines
regarding capital increases, and the net balance of +€19 million of
recurring accounting volatility items.
The business lines performed strongly in second
quarter and first half 2019. Underlying net income
of business lines16 fell -5.2% this quarter, in a challenging
environment, but the contribution of the Asset gathering business
line increased by +2.0%, to €496 million, French Retail
banking contributed +€172 million (+6.5%), thanks in
particular to a positive scissors effect, and International retail
banking contributed +€98 million (+9.0%). Strong
performance of the automotive partnerships in Specialised financial
services generated result on the equity-accounted line
(contribution up by +21.3% between second quarter 2018 and second
quarter 2019). Lastly, the decrease in the contribution to
underlying net income by the Large customers business line, to
€461 million (17.6% compared to second quarter 2018) is
due to the reversal of CACIB’s cost of risk, which offset the good
level of activity in all this division’s business lines (compared
to a high base in second quarter 2018).
In second quarter 2019, underlying
revenues reached €5,179 million, up +0.6% despite a
difficult market environment and thanks in particular to the sharp
increase in revenue in the Asset gathering business line
(+6.6%, benefiting in particular from portfolio revaluations in
line with market growth). The performance of all the business
divisions also contributed, with underlying revenues of business
divisions (excluding Corporate Centre) growing by 1.9% this
quarter.
These good trends in revenues were accompanied
by a good control of costs. While
allowing for the development of activity in all business lines,
underlying operating expenses excluding SRF
increased in a controlled manner by +2.0% compared
to the second quarter 2018, and by +1.3% for business lines
alone, reflecting a positive jaws effect for business
lines. This moderate increase includes a one-off impact of
consulting fees related to the Group’s structural operations, for a
total of -€10 million (particularly in the Consumer finance,
Asset servicing and Insurance divisions), contributing by 15% to
the increase in expenses over the period. The
underlying cost/income ratio
excluding SRF reached 58.6% for the
second quarter 2019.
The underlying gross operating
income was therefore down -1.0% compared
to the second quarter 2018.
Cost of risk increased by
+60.3% / -€135 million, to -€358 million against
‑€223 million in second quarter 2018, mainly due to a
reversal of the cost of credit risk in Corporate and Investment
Banking, which reported net reversals of provisions for +€46
million in the second quarter 2018, while it reported net charges
of -€67 million (i.e., -€113 million differences) this
quarter. Cost of risk on outstandings17 stood at
25 basis points, down 1 basis point compared to
the second quarter 2018, up +4 basis points from the
previous quarter, still at a low level. The other three divisions
that contributed the most to the cost of risk show contrasting
variations, albeit of very limited magnitude. Thus, LCL shows a
decrease in cost of risk, of -10.3%, to -€51 million; CA Italia was
down slightly by -1.9%, with the cost of risk on outstandings
continuing to improve to 62 basis points (compared to 78 points in
the second quarter of 2018 and 63 points in the first quarter of
2019). Lastly, CA CF reported a moderate increase of 2.1% to €118
million, with a cost of risk on outstandings of 122 basis
points.
The contribution of equity-accounted
entities increased sharply by +39.7%, to
€108 million, reflecting in particular the very good
performance of CA Consumer Finance’s partnerships (+21.3% compared
to the second quarter 2018).
Net income on other assets fell
by -€15 million, whereby the second quarter
2018 had reported the positive impact of +€14 million related to
the capital gains from the disposal of CACEIS’ activities in North
America.
Underlying income18 before tax,
discontinued operations and non-controlling interests
thus decreased by -6.9% to €1,890 million. The
second quarter of 2018 benefited from a relatively low tax rate of
22.5%, benefiting in particular from low taxes on long-term capital
gains in insurance. This quarter, the tax rate stood at 27.7%, and
the underlying tax charge was therefore up by +12.7% to -€494
million, and net result before non-controlling interests
thus showed a decrease of -11.7%.
Net income attributable to
non-controlling interests fell -6.2% to
€162 million, mainly in line with the evolution of the
underlying result.
Underlying net income decreased
by -12.4% compared to the
second quarter 2018 to €1,242
million.
Over the first half of 2019,
stated net income amounted to €1,985 million, compared with
€2,292 million in the first half of 2018,
a decrease of -13.4%.
Specific items in the
first half of 2019 had a negative impact of
-€53 million on stated net income. In
addition to the second quarter items already mentioned above,
the first quarter 2019 items had a negative impact of
−€33 million and also corresponded to the recurring accounting
volatility items, i.e. the DVA for -€6 million, hedges of the loan
portfolios of the Large customers division for -€14 million,
and changes in the Home Purchase Savings Plan for -€13 million.
Specific items from the
first half of 2018 had an impact of
+€87 million on net income. In addition to the
second quarter 2018 items already mentioned above, they
had an impact of +€68 million on net income in
first quarter 2018, namely the adjustment of the amount
of badwill recorded at the time of the acquisition of the three
Italian banks for +€66 million, the integration costs of Pioneer of
‑€4 million, the DVA for +4, hedges of the loan portfolios of
the Large Customers division for +3.
Excluding these specific items,
underlying net income fell to €2,038
million, down -7.6% compared to the
first half 2018, which was the highest half-year level
since the first half of 2007, before the financial
crisis.
Underlying earnings per share came to
€0.63 per share, a decrease of -9.8%
compared to the first half of 2018.
Annualised ROTE19 (return on
tangible equity Group share excluding intangibles) net of coupons
on Additional Tier 1 securities reached 11.0%
in the first half of 2019, lower
than the financial year 2018 (12.7%). Annualised RONE
(normalised return on capital) of the business lines was stable or
declining this half year, in line with the decline in results,
compared to the peak of 2018.
Table 2.
Crédit Agricole S.A. - Stated and underlying results, H1-19
and H1-18
€m |
H1-19 stated |
H1-18 stated |
Var H1/H1 stated |
H1-19 underlying |
H1-18 underlying |
Var H1/H1 underlying |
|
|
|
|
|
|
|
Revenues |
10,004 |
10,081 |
(0.8%) |
10,081 |
10,046 |
+0.4% |
Operating expenses excl.SRF |
(6,136) |
(6,075) |
+1.0% |
(6,136) |
(6,074) |
+1.0% |
SRF |
(337) |
(302) |
+11.7% |
(337) |
(302) |
+11.7% |
Gross operating income |
3,530 |
3,703 |
(4.7%) |
3,607 |
3,670 |
(1.7%) |
Cost of risk |
(582) |
(537) |
+8.4% |
(582) |
(537) |
+8.4% |
Cost of legal risk |
- |
(5) |
(100.0%) |
- |
- |
n.m. |
Equity-accounted entities |
193 |
170 |
+13.7% |
193 |
170 |
+13.7% |
Net income on other assets |
22 |
32 |
(32.5%) |
22 |
32 |
(32.5%) |
Change in value of goodwill |
- |
86 |
(100.0%) |
- |
- |
n.m. |
Income before tax |
3,163 |
3,450 |
(8.3%) |
3,240 |
3,335 |
(2.8%) |
Tax |
(880) |
(810) |
+8.6% |
(903) |
(801) |
+12.7% |
Net income from discont'd or
held-for-sale ope. |
8 |
(2) |
n.m. |
8 |
(2) |
n.m. |
Net income |
2,291 |
2,638 |
(13.1%) |
2,346 |
2,532 |
(7.4%) |
Non controlling interests |
(307) |
(346) |
(11.3%) |
(308) |
(327) |
(5.9%) |
Net income Group Share |
1,985 |
2,292 |
(13.4%) |
2,038 |
2,205 |
(7.6%) |
Earnings per share (€) |
0.61 |
0.73 |
(16.1%) |
0.63 |
0.70 |
(9.8%) |
Cost/Income ratio excl.SRF (%) |
61.3% |
60.3% |
+1.1 pp |
60.9% |
60.5% |
+0.4 pp |
In the first half of 2019, business results were
stable (+0.1%), thanks to good growth in activity and control of
expenses, despite a significant +7% increase in the SRF, and the
maintenance of the cost of risk at a very low level. The negative
contribution of the Corporate Centre (‑€478 million, compared
to -€308 million in the first half of 2018) resulted from a
deterioration of the volatile component of this sector compared to
a high 2018 base.
Underlying revenues were
up +0.4% compared to first half 2018, with a
positive contribution to this growth by all business lines except
Specialised financial services. The environment for consumer
finance is one of strong competitive pressure in France, and the
division launched new partnerships (resulting in customer
acquisition costs) over the period. Factoring suffers from an
unfavourable 2018 base effect and a slowdown in the Cash in time
business. Revenues in the Large customers business line were up
slightly (+0.6%) compared to a high level in the first half of
2018.
Underlying operating expenses
increased by +1.0%, excluding the SRF
contributions, which increased by a significant +11.7% to
€337 million in the first half of 2019 versus
€302 million in first half 2018. In the business
divisions alone, the increase amounted to +0.9%, centring mainly on
the Specialised financial services and Large customers
business lines. Both are experiencing increases in expenses
related to the development of their activities, as well as
consulting fees pertaining to the external growth transactions at
CACEIS and CACF. The underlying cost/income ratio excluding
SRF is 60.9%, including IFRIC21 expenses
in the first quarter.
Lastly, the cost of risk showed
an increase of +8.4%/-€45 million compared to
first half 2018, to €582 million. This increase derives
chiefly from the Large customers business line (which reported
an additional risk charge of -€40 million this quarter) and in
particular from Financing activities, stemming from the one-off
provisions reported in the second quarter. Changes in the
contributions of the other activities more or less cancelled each
other out: a slight increase for Specialised financial services
(+5.4%/‑€12 million) but a decrease for International retail
banking (-3.6%/+€6 million) and LCL
(-11.3%/+€12 million).
At end June 2019, Crédit Agricole S.A. retains a
high level of solvency, with a Common Equity Tier 1 (CET1)
ratio20 of 11.6%, up +0.1 percentage points from
end March 2019. Capital generation in the quarter
(+18 basis points) and positive change in OCI reserves (+11 basis
points) were partially offset by growth in risk-weighted assets (‑7
basis points) and other movements (-18 basis points, including -10
basis points related to the completion of the CACF deal with
Banco BPM). Risk-weighted assets reached
€323 billion at end June 2019, compared with
€321 billion at end March, i.e. a limited increase of
+0.9% over one quarter. It should be noted that the ratio includes
a dividend provision equivalent to 50% of the earnings per share
published for the half year, i.e. €0.30 per share, which
corresponds to €0.19 per share for the
second quarter 2019.
Net equity Group share is expected to increase by
+€151 million in the third quarter, in connection with the
capital increase reserved for employees.
The phased-in leverage ratio
was 4.3% at end June 2019 as defined in the
Delegated Act adopted by the European Commission. The intra-quarter
average phased-in leverage ratio21 stands at 4.1% in the second
quarter.
Crédit Agricole S.A.’s average LCR
(Liquidity Coverage Ratio) over 12 months stood at 133.5%22 at end
June 2019, which is higher than the target level of around 110% set
out in the Medium-Term Plan.
At the end of July 2019,
Crédit Agricole S.A. completed 69% of its
medium/long-term market funding programme for the year.
The bank raised the equivalent of €11.7 billion, of which
€6.3 billion equivalent of
senior preferred debt and secured senior debt,
and €3.5 billion equivalent of
senior non-preferred debt and
€1.8 billion equivalent of Tier 2 debt. The
2019 programme is set at €17 billion, including around
€5 to €6 billion of TLAC eligible debt (Tier 2
debt or senior non-preferred debt). It should be noted that in
February 2019 Crédit Agricole S.A. carried out an
AT1 instrument issue for $1.25 billion (€1.1 billion
equivalent). This issue was not part of the annual funding
programme.
* *
*
Philippe Brassac, Chief Executive Officer,
commented on the second quarter 2019 and first half 2019 results
and activity of Crédit Agricole S.A. as follows: “As recently
announced in our new Medium term plan, Crédit Agricole and
Crédit Agricole S.A. once again delivered very high level
of financial results, particularly illustrated by the 11% RoTE
ratio of Credit Agricole S.A. Sales performances
continued to be outstanding – a new milestone was passed with
Credit Agricole becoming #1 life insurer in France. We have also
continued to develop partnerships in Europe, with the signing of
partnerships between our Insurance division and Abanca in Spain and
Portugal and the renewal of CACF’s partnerships with Banco BPM and
FCA. Our cost of risk remains very low and our financial strength
is confirmed. The increase in Credit Agricole S.A.’s CET1 this
quarter further secures our dividend policy and makes a first
unwinding of the Switch possible in 2020.”
Crédit Agricole
Group
In second quarter, Crédit Agricole
Group’s underlying Net income Group Share was high, at
€1,846 million, despite a fall of -10.2% compared to second
quarter 2018, the highest quarterly level since Crédit Agricole
S.A.’s IPO. In the first half-year, Crédit Agricole Group’s
underlying Net income Group Share was €3,281 million, a
year-on-year decrease of -3.7% compared to first half 2018. This
performance was achieved thanks to very high levels of activity
across all business lines : buoyant customer capture (+140 000
net customer capture for the Regional Banks, LCL and CA Italia in
first half 2019), credit, inflows and equipment in Retail banking,
sustained inflows in Asset gathering and savings/retirement,
increased market share in property and casualty insurance, and a
return to the levels of activity seen in first half 2018 in Large
customers. This activity demonstrates the strength of the Universal
Customer-focused Banking model, which generates revenue
synergies.
Expenses were well controlled, and there
was a positive jaws effect in the first half of the year, with
revenue up +1.2% and non-SRF operating expenses up +1.0%. Revenues
from Regional Banks increased by +2.8% this half-year, thanks to
the dynamism in life insurance fees and commissions (+4.9%) and the
positive effect of portfolio valuation. At the Group level, the
cost of risk increased to 19 bp from the very low level in the
second quarter of 2018 (18 bp), due in particular to one-off
provisions in CIB and the Regional Banks, but remained very low.
The coverage ratio stood at 83.7%. The Common Equity Tier 1 ratio
reached 15.4% at end June 2019, an increase of
0.1 percentage point compared to end March 2019, and
590 basis points above the required regulatory
level23.
In line with the “raison d’être” it
formulated when the Medium-Term Plan was presented in June 2019,
the Group focuses on excellence in customer relations, empowered
teams for customers, and societal commitment. Its stable,
diversified and profitable business model drives organic growth in
all its business lines, in particular through synergies between
specialised business lines and retail networks, and ensuring a high
level of operating efficiency while generating capacity to invest
in business development. The Group has recorded first achievements
of the Medium-Term Plan this quarter, in particular by stepping up
green finance.
In the
second quarter of 2019,
Crédit Agricole Group’s stated Net income Group
Share reached €1,813 million, versus
€2,076 million in second quarter 2018. The
specific items recorded this quarter generated a
limited negative net impact of -€33 million on Net
income Group Share.
Excluding these specific items,
underlying Net income Group Share 24 reached
€1,846 million, a decrease of -10.2% compared
to second quarter 2018, when Net income Group Share was at its
highest level since 2001, the year of CASA’s IPO.
Table 3.
Credit Agricole Group - Stated and underlying results,
Q2-19 and Q2-18
€m |
Q2-19 stated |
Q2-18 stated |
Var Q2/Q2 stated |
Q2-19 underlying |
Q2-18 underlying |
Var Q2/Q2 underlying |
|
|
|
|
|
|
|
Revenues |
8,485 |
8,428 |
+0.7% |
8,534 |
8,402 |
+1.6% |
Operating expenses excl.SRF |
(5,308) |
(5,141) |
+3.3% |
(5,308) |
(5,149) |
+3.1% |
SRF |
(4) |
(30) |
(87.0%) |
(4) |
(30) |
(87.0%) |
Gross operating income |
3,174 |
3,257 |
(2.6%) |
3,223 |
3,224 |
(0.0%) |
Cost of risk |
(598) |
(397) |
+50.5% |
(598) |
(397) |
+50.5% |
Cost of legal risk |
- |
(5) |
(100.0%) |
- |
- |
n.m. |
Equity-accounted entities |
94 |
80 |
+16.7% |
94 |
80 |
+16.7% |
Net income on other assets |
(8) |
17 |
n.m. |
(8) |
17 |
n.m. |
Change in value of goodwill |
- |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
2,662 |
2,953 |
(9.9%) |
2,711 |
2,924 |
(7.3%) |
Tax |
(728) |
(734) |
(0.9%) |
(743) |
(725) |
+2.5% |
Net income from discont'd or
held-for-sale ope. |
8 |
(1) |
n.m. |
8 |
(1) |
n.m. |
Net income |
1,942 |
2,218 |
(12.4%) |
1,976 |
2,198 |
(10.1%) |
Non controlling interests |
(130) |
(142) |
(8.3%) |
(130) |
(142) |
(8.5%) |
Net income Group Share |
1,813 |
2,076 |
(12.7%) |
1,846 |
2,056 |
(10.2%) |
Cost/Income ratio excl.SRF (%) |
62.6% |
61.0% |
+1.6 pp |
62.2% |
61.3% |
+0.9 pp |
In the second quarter 2019, underlying
revenues increased by +1.6% compared to
second quarter 2018, to €8,534 million, and by
+1.8% for the business lines excluding the
Corporate Centre, despite the unfavourable macroeconomic and
monetary environment. This growth was driven by revenues from the
Asset gathering business line, which increased by +6.8%,
International retail banking, which were up +3.5%, and French
retail banking, which rose +1.5%. Revenues from the Specialised
financial services and Large customers business lines fell
-1.1% and -1.8%, respectively.
Underlying operating expenses excluding
SRF were up +3.1% from second quarter
2018, in connection with IT investments in the Regional Banks under
the Medium-Term Plan, and development expenses in the Credit
Agricole S.A. business lines. Compared to second quarter 2018, the
underlying cost/income ratio excluding SRF increased by 0.9
percentage points, to 62.2%.
Underlying gross operating
income, including contributions to the SRF, was fully
stable at €3,223 million compared to second quarter 2018
(which included a contribution of -€30 million to the SRF).
The cost of credit risk rose by
+50.5% to -€598 million, versus -€397 million in the
second quarter of 2018. This increase mainly stems
from Retail banking through the Regional Banks, which posted a
35.6% rise in their cost of risk, from -€176 million to -€238
million owing to one-off provisions, and from the Large customers
division, where the cost of credit risk is returning to normal,
with net provisions of -€69 million while net reversals of
+€45 million were recorded in second quarter 2018, and which
is also subject to one-off provisions.
Crédit Agricole Group’s cost of risk relative to
outstandings25 was 19 basis points,
up one basis point compared to the second quarter of 2018 but
low, and below the Medium-Term Plan assumption of 25 basis
points.
By incorporating the contribution from
equity-accounted entities, which was up by 16.7% from €80 million
to €94 million as a result of the good performance of
automotive partnerships at CACF, the underlying pre-tax
income was €2,711 million, down -7.3% compared to
second quarter 2018.
The underlying tax charge
was up 2.5% compared to second quarter 2018,
showing a sharp increase of +2.9 percentage points in the
underlying tax rate, from 25.5% to 28.4%. Accordingly,
underlying net income before
non-controlling interests was down -10.1% and underlying net
income was down -10.2% compared to second quarter 2018.
Specific items had a limited
net negative impact of ‑€33 million on Net income Group Share
this quarter. These only included the net balance of recurring
volatile accounting items 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, hedges on the Large customers loan book for
-€6 million, and the change in the provision for
home purchase savings schemes in the amount of
-€25 million. In second quarter 2018,
specific items had a positive impact on Net income Group Share of
+€20 million, including ‑€4 million from Pioneer Investments
integration costs, +€9 million from the reversal of a provision on
the integration costs of the three Italian banks (+€16 million
before tax and non-controlling interests), a ‑€5 million fine
imposed by the ECB on Crédit Agricole S.A. and two of its
subsidiaries for non-compliance with ECB notification deadlines
regarding capital increases and, lastly, +€19 million from the net
balance in Net income Group Share from recurring volatile
accounting items, namely the DVA in the amount of +€8 million and
loan book hedges in the Large customers division in the amount of
+€12 million.
In the first half of 2019,
underlying Net income Group Share declined by
-3.7% compared to first half 2018;
excluding SRF contribution, it declined by -2.6%.
Underlying revenues were up by +1.2% and underlying operating
expenses excluding SRF increased by +1.0%, resulting in a positive
jaws effect of +0.2 percentage point. SRF contribution increased by
+9.4%, cost of credit risk rose by +7.5% and the tax charge was up
by 9.4% in first half 2019.
Table 4.
Credit Agricole Group - Stated and underlying results,
H1-19 and H1-18
€m |
H1-19 stated |
H1-18 stated |
Var H1/H1 stated |
H1-19 underlying |
H1-18 underlying |
Var H1/H1 underlying |
|
|
|
|
|
|
|
Revenues |
16,682 |
16,686 |
(0.0%) |
16,857 |
16,651 |
+1.2% |
Operating expenses excl.SRF |
(10,585) |
(10,483) |
+1.0% |
(10,585) |
(10,482) |
+1.0% |
SRF |
(426) |
(389) |
+9.4% |
(426) |
(389) |
+9.4% |
Gross operating income |
5,671 |
5,813 |
(2.5%) |
5,846 |
5,780 |
+1.1% |
Cost of risk |
(879) |
(818) |
+7.5% |
(879) |
(818) |
+7.5% |
Cost of legal risk |
- |
(5) |
(100.0%) |
- |
- |
n.m. |
Equity-accounted entities |
188 |
179 |
+5.5% |
188 |
179 |
+5.5% |
Net income on other assets |
3 |
38 |
(92.4%) |
3 |
38 |
(92.4%) |
Change in value of goodwill |
- |
86 |
(100.0%) |
- |
- |
n.m. |
Income before tax |
4,983 |
5,293 |
(5.8%) |
5,158 |
5,178 |
(0.4%) |
Tax |
(1,576) |
(1,501) |
+5.0% |
(1,633) |
(1,492) |
+9.4% |
Net income from discont'd or
held-for-sale ope. |
8 |
(2) |
n.m. |
8 |
(2) |
n.m. |
Net income |
3,415 |
3,789 |
(9.9%) |
3,534 |
3,684 |
(4.1%) |
Non controlling interests |
(253) |
(285) |
(11.2%) |
(253) |
(276) |
(8.3%) |
Net income Group Share |
3,163 |
3,505 |
(9.8%) |
3,281 |
3,408 |
(3.7%) |
Cost/Income ratio excl.SRF (%) |
63.5% |
62.8% |
+0.6 pp |
62.8% |
63.0% |
-0.2 pp |
In second quarter 2019,
Regional Banks’ customer capture continued to
demonstrate strong momentum, with an additional 96,000 individual
customers and 30,000 new EKO accounts registered since the start of
2019. This commercial performance made a significant contribution
to growth in Crédit Agricole S.A.’s business lines, whose
products are distributed by the Regional Banks, as the Group’s
leading distribution channel and the leading retail bank in France.
As a result, the customers equipment continues to increase: the
inventory of premium cards for individual customers rose +8.8%
between June 2018 and June 2019 and property and
personal insurance policies increased by +4.5% over the same
period.
Outstanding loans grew
+6.6% compared to 30 June 2018. This growth was
driven by home loans (+7.4%), consumer loans (+7.4%), and SMEs and
corporate loans (+7.3%).
Customer savings rose
+4.1% year on year, driven by on-balance sheet
deposits (+5.8%) and, in particular, demand deposits (+9.4%) and
passbook accounts (notably Livret A+10.9%). Off-balance sheet
savings rose more modestly by +1.4% year-on-year, driven by life
insurance assets (+3.9%).
The contribution of Regional Banks to
Crédit Agricole Group’s underlying
net income Group share reached
€563 million, down -7.5%
compared to second quarter 2018. At €3,277
million, underlying revenues recorded an increase
of +1.5% compared to second quarter 2018. This improvement
can be attributed primarily to a slight year-on-year increase in
fees and commissions (+0.6%), driven mainly by insurance (+4.9%),
and to positive impact of market conditions on the revaluation of
the Regional Banks’ investment portfolio.
In the second quarter, Regional Banks
received their dividend share from Crédit Agricole S.A.
of €1.1 billion, compared with €1.0 billion in
second quarter 2018; this income is nevertheless
eliminated from the contribution of the Regional Banks to the
Group’s accounts.
Operating expenses (excluding
SRF) saw an increase of +3.6% compared to
second quarter 2018, mainly reflecting IT investments under the
Group’s Medium-Term Plan. As a result, the underlying cost/income
ratio excluding SRF reached 67.8%.
The cost of risk remains low at
€238 million, up +35.6% year on year due to one-off provisions over
the quarter and corresponding to 13 basis points on outstandings.
The non-performing loan ratio stabilised at 2.0% and the coverage
ratio stands at 97.7%
In the first half, the
contribution of the Regional Banks to underlying net
income Group share reached
€1,228 million, an increase of
+2.8%.
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.
Over the quarter,
Crédit Agricole Group’s financial solidity remained
robust, with a Common Equity Tier 1 (CET1) ratio26 of
15.4%, up by
+0.1 percentage points compared to end
March 2019. This ratio provides a substantial buffer above the SREP
requirement applicable to Crédit Agricole Group, set at 9.5% by the
ECB.
The MREL ratio was estimated at 34% of
risk-weighted assets (RWA) at 30 June 2019, and stood at 22.7%
excluding eligible preferred senior debt. The target under
the Crédit Agricole Group’s Medium-Term Plan is to achieve a
subordinated MREL ratio (excluding potentially eligible preferred
senior debt) of 24-25% of RWA, by the end of 2022.
Expressed as a percentage of the institution’s total
liabilities and own funds, after certain prudential restatements
(Total Liabilities Own Funds – TLOF), the MREL ratio stood at 8.7%
at 30 June 2019, excluding eligible preferred senior
debt. This is in line with the Medium-Term Plan target of
maintaining this ratio above 8% of TLOF, a level which would enable
recourse to the Single Resolution Fund, subject to the decision of
the Resolution Authority.
The TLAC ratio requirements are
applicable since 27 June 2019, when European Regulation
CRR2 (Capital Requirement Regulation 2) came into force. At
30 June 2019, the Crédit Agricole Group’s TLAC ratio stood at 22.7%
of RWA and 7.6% of leverage risk exposure (LRE), excluding eligible
preferred senior debt. It was up compared to 31 March 2019
and much higher than CRR2/CRDV requirements27, by 3.2 points for
RWA and 1.6 points for LRE respectively.
The phased-in leverage ratio
came to 5.7% at end June 2019.
The liquidity position of Crédit Agricole Group
is solid. Its banking cash balance sheet, at €1,273 billion at
30 June 2019, showed a surplus of stable funding
sources over stable assets of €116 billion, down by
€4.3 billion compared to end March 2019, and in
line with the target under the Medium-Term Plan (over
€100 billion). The surplus of stable resources
finances the HQLA (High Quality Liquid Assets) securities portfolio
generated by the LCR (Liquidity Coverage Ratio) requirement for
customer and customer-related activities. These securities
(€116 billion) covered more than three times the
short-term debt net of Central Bank deposits.
The liquidity reserves, which
include capital gains and haircuts on securities portfolios,
stood at €277 billion at 30 June
2019. The Group’s average LCR ratio over 12 months stood
at 131.9%28 at the end of June 2019, exceeding the
Medium-Term Plan target of around 110%.
At the end of June 2019,
the Group’s main issuers raised the equivalent of
€24.0 billion in medium/long-term debt on the
markets, 49% of which was issued by
Crédit Agricole SA. Furthermore, €1.8 billion was
also placed in Crédit Agricole Group’s retail networks
(Regional Banks, LCL and CA Italia) and other external
networks or borrowed from supranational organisations at the end of
June 2019.
* *
*
Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of Crédit Agricole S.A.’s Board of
Directors, commented on the Group’s second quarter 2019 and first
half 2019 results and activity as follows: “In the first half
of the year, Crédit Agricole Group continued to develop
activity in all business lines, both in France and internationally.
Consistently with the “raison d’être” we formulated when we
presented our Medium-Term Plan in June, we are strengthening our
positioning in the range of products and services we offer in
accordance with our climate strategy, confirming our position as a
world leader in Green Bonds. We continue to build synergies between
Crédit Agricole S.A. business lines, leaders in their
markets, and the Group’s retail banks, focusing on customer
satisfaction. The three pillars of our unique relationship model,
namely excellence in customer relations, empowered teams for
customers, and societal commitment, create value in the uncertain
economic environment we are experiencing.”
Corporate social and
environmental responsibility
Crédit Agricole Group is committed to a
proactive climate strategy in line with the Paris
Agreement
The Crédit Agricole Group announced in its new
MTP its goal of making green finance one of its growth drivers.
Accordingly, Crédit Agricole published a Group climate strategy in
line with the Paris Agreement with the aim of strengthening its
energy transition initiatives. The strategy will be rolled out by
all of its entities, resulting in the phased reallocation of its
financing, investment and AuM portfolios to energy transition. Its
commitments include exiting from thermal coal production by 2030
for the EU and OECD countries, by 2040 for China, by 2050 for the
rest of the world, as well as the financing of one renewable energy
project out of every three in France. Implementation of the climate
strategy will be certified by an independent body.
Recent financing to support the energy
transition
In June, the European Investment Bank (EIB)
signed a partnership agreement with the Crédit Agricole Group to
support the funding of energy transition investment projects in
France with a financing package worth €500 million. The
package will fund investments by SMEs, mid-caps, the public sector,
farms and local authorities to encourage the energy transition in
the renewable energy, energy efficiency and electric vehicle
sectors.
During the quarter, Crédit Agricole Regional
Banks finalised a large number of renewable energy production
projects. New loan offers were launched to support French consumers
at key moments such as when they purchase a low emission vehicle or
carry out improvements to reduce their energy consumption. In
addition, LCL also launched an expanded range of new “Sustainable
City” commercial offers to finance clean vehicles and energy
equipment and improvement projects that are eligible for the energy
transition tax credit.
The Group strengthens its leadership position in
Green bonds
CACIB, the world’s leading arranger of green
bonds, confirmed its leadership position this half-year with a
number of major arrangements, including the first euro issuance for
the government of Chile, and, for the Société du Grand Paris, a key
role in the structuring of the first 100% green EMTN programme
worth €5 billion. Amundi’s expertise in green finance was also
recognised and rewarded, with the “Green Bond Fund of the Year”
prize awarded to Amundi for the Planet Emerging Green One fund, and
the “Initiative Green Finance Collaboration of the year” prize
awarded by the Climate Bonds initiative. Amundi launched the Green
Credit Continuum programme with the EIB, with €1 billion for green
finance in Europe.
Crédit Agricole S.A. consolidates its
global CSR performance
Crédit Agricole S.A was awarded a rating of A1
from the non-financial rating agency Vigeo Eiris, ranking the Group
as one of the world’s best companies29. Crédit Agricole S.A.’s
overall rating increased by 1 point compared to the previous rating
back in 2016. Vigeo Eiris commended the Group’s ability to
incorporate the ESG factors into its strategy, operations and risk
management, as well as the solid results that create sustainable
value for its customers and stakeholders.
Appendix 1 – Specific items, Crédit
Agricole S.A. and
Crédit Agricole Group
Table 5.
Crédit Agricole S.A. - Specific items, Q2-19 et Q2-18,
H1-19 et H1-18
|
|
Q2-19 |
Q2-18 |
|
H1-19 |
H1-18 |
€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) |
|
(5) |
(3) |
10 |
7 |
|
(12) |
(9) |
15 |
11 |
Loan portfolio hedges (LC) |
|
(8) |
(6) |
15 |
12 |
|
(27) |
(20) |
20 |
14 |
Home Purchase Savings Plans (FRB) |
|
(3) |
(2) |
- |
- |
|
(11) |
(7) |
- |
- |
Home Purchase Savings Plans (CC) |
|
(15) |
(10) |
- |
- |
|
(28) |
(18) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Total impact on revenues |
|
(30) |
(20) |
25 |
19 |
|
(78) |
(53) |
35 |
25 |
|
|
|
|
|
|
|
|
|
|
|
Pioneer integration costs (AG) |
|
- |
- |
(8) |
(4) |
|
- |
- |
(18) |
(8) |
3 Italian banks integration costs (IRB) |
|
- |
- |
16 |
8 |
|
- |
- |
16 |
8 |
|
|
|
|
|
|
|
|
|
|
|
Total impact on operating expenses |
|
- |
- |
8 |
4 |
|
- |
- |
(1) |
(0) |
|
|
|
|
|
|
|
|
|
|
|
ECB fine (CC) |
|
- |
- |
(5) |
(5) |
|
- |
- |
(5) |
(5) |
Total impact Non-allocated legal risk
provisions |
|
- |
- |
(5) |
(5) |
|
- |
- |
(5) |
(5) |
|
|
|
|
|
|
|
|
|
|
|
Change of value of goodwill (CC)(2) |
|
- |
- |
- |
- |
|
- |
- |
86 |
66 |
|
|
|
|
|
|
|
|
|
|
|
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
- |
- |
86 |
66 |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific items |
|
(30) |
(20) |
29 |
19 |
|
(78) |
(53) |
114 |
87 |
Asset gathering |
|
- |
- |
(8) |
(4) |
|
- |
- |
(18) |
(8) |
French Retail banking |
|
(3) |
(2) |
- |
- |
|
(11) |
(7) |
- |
- |
International Retail banking |
|
- |
- |
16 |
8 |
|
- |
- |
16 |
8 |
Specialised financial services |
|
- |
- |
- |
- |
|
- |
- |
- |
- |
Large customers |
|
(12) |
(9) |
25 |
19 |
|
(39) |
(28) |
35 |
25 |
Corporate centre |
|
(15) |
(10) |
(5) |
(5) |
|
(28) |
(18) |
81 |
61 |
* Impact before tax and before minority
interests |
|
|
|
|
|
|
|
|
|
|
Table 6.
Crédit Agricole Group - Specific items, Q2-19 et Q2-18,
H1-19 et H1-18
|
|
Q2-19 |
Q2-18 |
|
H1-19 |
H1-18 |
€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) |
|
(5) |
(3) |
10 |
8 |
|
(12) |
(9) |
15 |
11 |
Loan portfolio hedges (LC) |
|
(8) |
(6) |
15 |
12 |
|
(27) |
(20) |
20 |
15 |
Home Purchase Savings Plans (LCL) |
|
(3) |
(2) |
- |
- |
|
(11) |
(7) |
- |
- |
Home Purchase Savings Plans (CC) |
|
(15) |
(10) |
- |
- |
|
(28) |
(18) |
- |
- |
Home Purchase Savings Plans (RB) |
|
(19) |
(13) |
- |
- |
|
(98) |
(64) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Total impact on revenues |
|
(49) |
(33) |
25 |
19 |
|
(175) |
(118) |
35 |
26 |
|
|
|
|
|
|
|
|
|
|
|
Pioneer integration costs (AG) |
|
- |
- |
(8) |
(4) |
|
- |
- |
(18) |
(8) |
Integration costs 3 Italian banks (IRB) |
|
- |
- |
16 |
9 |
|
- |
- |
16 |
9 |
|
|
|
|
|
|
|
|
|
|
|
Total impact on operating expenses |
|
- |
- |
8 |
5 |
|
- |
- |
(1) |
1 |
|
|
|
|
|
|
|
|
|
|
|
ECB fine (CC) |
|
- |
- |
(5) |
(5) |
|
- |
- |
(5) |
(5) |
|
|
|
|
|
|
|
|
|
|
|
Total impact Non-allocated legal risk
provisions |
|
- |
- |
(5) |
(5) |
|
- |
- |
(5) |
(5) |
|
|
|
|
|
|
|
|
|
|
|
Change of value of goodwill (CC) |
|
- |
- |
- |
- |
|
- |
- |
86 |
74 |
|
|
|
|
|
|
|
|
|
|
|
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
- |
- |
86 |
74 |
|
|
|
|
|
|
|
|
|
|
|
Total impact of specific
items |
|
(49) |
(33) |
29 |
20 |
|
(175) |
(118) |
114 |
96 |
Asset gathering |
|
- |
- |
(8) |
(4) |
|
- |
- |
(18) |
(8) |
French Retail banking |
|
(22) |
(14) |
|
- |
|
(108) |
(71) |
- |
- |
International Retail banking |
|
- |
- |
16 |
9 |
|
- |
- |
16 |
9 |
Specialised financial services |
|
- |
- |
- |
- |
|
- |
- |
- |
- |
Large customers |
|
(12) |
(9) |
25 |
19 |
|
(39) |
(29) |
35 |
26 |
Corporate centre |
|
(15) |
(10) |
(5) |
(5) |
|
(28) |
(18) |
81 |
69 |
Appendix 2 –
Crédit Agricole S.A.: detailed, stated and underlying
income statement
Table 7.
Crédit Agricole S.A. - From stated to underlying results,
Q2-19 and Q2-18
€m |
Q2-19 stated |
Specific items |
Q2-19 underlying |
Q2-18 stated |
Specific items |
Q2-18 underlying |
Var Q2/Q2 stated |
Var Q2/Q2 underlying |
|
|
|
|
|
|
|
|
|
Revenues |
5,149 |
(30) |
5,179 |
5,171 |
25 |
5,146 |
(0.4%) |
+0.6% |
Operating expenses excl.SRF |
(3,033) |
- |
(3,033) |
(2,966) |
8 |
(2,974) |
+2.3% |
+2.0% |
SRF |
(6) |
- |
(6) |
(11) |
- |
(11) |
(47.3%) |
(47.3%) |
Gross operating income |
2,111 |
(30) |
2,140 |
2,195 |
33 |
2,162 |
(3.8%) |
(1.0%) |
Cost of risk |
(358) |
- |
(358) |
(223) |
- |
(223) |
+60.3% |
+60.3% |
Cost of legal risk |
- |
- |
- |
(5) |
(5) |
- |
(100.0%) |
n.m. |
Equity-accounted entities |
108 |
- |
108 |
77 |
- |
77 |
+39.7% |
+39.7% |
Net income on other assets |
(1) |
- |
(1) |
14 |
- |
14 |
n.m. |
n.m. |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Income before tax |
1,861 |
(30) |
1,890 |
2,059 |
29 |
2,030 |
(9.6%) |
(6.9%) |
Tax |
(485) |
9 |
(494) |
(448) |
(9) |
(439) |
+8.4% |
+12.7% |
Net income from discont'd or
held-for-sale ope. |
8 |
- |
8 |
(1) |
- |
(1) |
n.m. |
n.m. |
Net income |
1,384 |
(20) |
1,404 |
1,610 |
20 |
1,590 |
(14.1%) |
(11.7%) |
Non controlling interests |
(161) |
0 |
(162) |
(174) |
(1) |
(172) |
(7.0%) |
(6.2%) |
Net income Group Share |
1,222 |
(20) |
1,242 |
1,436 |
19 |
1,418 |
(14.9%) |
(12.4%) |
Earnings per share (€) |
0.39 |
(0.01) |
0.40 |
0.47 |
0.01 |
0.46 |
(16.8%) |
(14.1%) |
Cost/Income ratio excl. SRF (%) |
58.9% |
|
58.6% |
57.3% |
|
57.8% |
+1.5 pp |
+0.8 pp |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
1,227 |
(20) |
1,247 |
1,445 |
19 |
1,426 |
(15.1%) |
(12.5%) |
Table 8.
Crédit Agricole S.A. - From stated to underlying results,
H1-19 and H1-18
€m |
H1-19 stated |
Specific items |
H1-19 underlying |
H1-18 stated |
Specific items |
H1-18 underlying |
Var H1/H1 stated |
Var H1/H1 underlying |
|
|
|
|
|
|
|
|
|
Revenues |
10,004 |
(78) |
10,081 |
10,081 |
35 |
10,046 |
(0.8%) |
+0.4% |
Operating expenses excl.SRF |
(6,136) |
- |
(6,136) |
(6,075) |
(1) |
(6,074) |
+1.0% |
+1.0% |
SRF |
(337) |
- |
(337) |
(302) |
- |
(302) |
+11.7% |
+11.7% |
Gross operating income |
3,530 |
(78) |
3,607 |
3,703 |
34 |
3,670 |
(4.7%) |
(1.7%) |
Cost of risk |
(582) |
- |
(582) |
(537) |
- |
(537) |
+8.4% |
+8.4% |
Cost of legal risk |
- |
- |
- |
(5) |
(5) |
- |
(100.0%) |
n.m. |
Equity-accounted entities |
193 |
- |
193 |
170 |
- |
170 |
+13.7% |
+13.7% |
Net income on other assets |
22 |
- |
22 |
32 |
- |
32 |
(32.5%) |
(32.5%) |
Change in value of goodwill |
- |
- |
- |
86 |
86 |
- |
(100.0%) |
n.m. |
Income before tax |
3,163 |
(78) |
3,240 |
3,450 |
114 |
3,335 |
(8.3%) |
(2.8%) |
Tax |
(880) |
23 |
(903) |
(810) |
(9) |
(801) |
+8.6% |
+12.7% |
Net income from discont'd or
held-for-sale ope. |
8 |
- |
8 |
(2) |
- |
(2) |
n.m. |
n.m. |
Net income |
2,291 |
(54) |
2,346 |
2,638 |
105 |
2,532 |
(13.1%) |
(7.4%) |
Non controlling interests |
(307) |
1 |
(308) |
(346) |
(19) |
(327) |
(11.3%) |
(5.9%) |
Net income Group Share |
1,985 |
(53) |
2,038 |
2,292 |
87 |
2,205 |
(13.4%) |
(7.6%) |
Earnings per share (€) |
0.61 |
(0.02) |
0.63 |
0.73 |
0.03 |
0.70 |
(16.1%) |
(9.8%) |
Cost/Income ratio excl.SRF (%) |
61.3% |
|
60.9% |
60.3% |
|
60.5% |
+1.1 pp |
+0.4 pp |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
2,297 |
(53) |
2,350 |
2,579 |
87 |
2,492 |
(10.9%) |
(5.7%) |
Appendix 3 – Crédit Agricole S.A.: results by
business line
Table 9.
Crédit Agricole S.A.: Contribution by divisions - Q2-19
& Q2-18
|
Q2-19 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,479 |
886 |
715 |
687 |
1,467 |
(85) |
5,149 |
Operating expenses excl. SRF |
(691) |
(573) |
(436) |
(329) |
(797) |
(207) |
(3,033) |
SRF |
(3) |
(1) |
(7) |
(0) |
8 |
(3) |
(6) |
Gross operating income |
786 |
312 |
272 |
358 |
679 |
(296) |
2,111 |
Cost of risk |
(8) |
(51) |
(84) |
(132) |
(69) |
(15) |
(358) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
12 |
- |
- |
78 |
(1) |
19 |
108 |
Net income on other assets |
(0) |
(0) |
(1) |
0 |
(0) |
0 |
(1) |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
790 |
262 |
187 |
305 |
609 |
(292) |
1,861 |
Tax |
(221) |
(84) |
(52) |
(73) |
(148) |
94 |
(485) |
Net income from discontinued or
held-for-sale operations |
8 |
- |
- |
- |
- |
- |
8 |
Net income |
577 |
178 |
135 |
232 |
460 |
(198) |
1,384 |
Non controlling interests |
(80) |
(8) |
(36) |
(25) |
(9) |
(3) |
(161) |
Net income Group Share |
496 |
170 |
98 |
207 |
452 |
(201) |
1,222 |
|
Q2-18 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,388 |
875 |
689 |
695 |
1,531 |
(6) |
5,171 |
Operating expenses excl. SRF |
(685) |
(576) |
(409) |
(310) |
(801) |
(184) |
(2,966) |
SRF |
0 |
(2) |
(5) |
(1) |
(2) |
(1) |
(11) |
Gross operating income |
703 |
298 |
274 |
384 |
728 |
(192) |
2,195 |
Cost of risk |
(4) |
(56) |
(85) |
(127) |
45 |
5 |
(223) |
Cost of legal risk |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted entities |
14 |
- |
- |
65 |
(0) |
(0) |
77 |
Net income on other assets |
(0) |
1 |
(0) |
1 |
13 |
(0) |
14 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
712 |
242 |
189 |
322 |
786 |
(193) |
2,059 |
Tax |
(147) |
(73) |
(54) |
(76) |
(197) |
100 |
(448) |
Net income from discontinued or
held-for-sale operations |
(0) |
(1) |
- |
- |
- |
- |
(1) |
Net income |
564 |
168 |
135 |
246 |
589 |
(92) |
1,610 |
Non controlling interests |
(82) |
(7) |
(36) |
(30) |
(12) |
(7) |
(174) |
Net income Group Share |
483 |
161 |
98 |
216 |
578 |
(99) |
1,436 |
Table 10.
Crédit
Agricole S.A. : Contribution by divisions - H1-19 &
H1-18
|
H1-19 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
2,948 |
1,747 |
1,391 |
1,368 |
2,806 |
(256) |
10,004 |
Operating expenses excl. SRF |
(1,444) |
(1,166) |
(856) |
(671) |
(1,616) |
(384) |
(6,136) |
SRF |
(7) |
(32) |
(22) |
(18) |
(177) |
(81) |
(337) |
Gross operating income |
1,497 |
550 |
513 |
678 |
1,013 |
(721) |
3,530 |
Cost of risk |
(3) |
(95) |
(172) |
(239) |
(59) |
(13) |
(582) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
25 |
- |
- |
156 |
(1) |
13 |
193 |
Net income on other assets |
(0) |
1 |
(1) |
1 |
3 |
19 |
22 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,518 |
456 |
340 |
596 |
955 |
(702) |
3,163 |
Tax |
(420) |
(153) |
(96) |
(137) |
(278) |
205 |
(880) |
Net income from discontinued or
held-for-sale operations |
8 |
- |
- |
- |
- |
- |
8 |
Net income |
1,106 |
303 |
243 |
459 |
677 |
(497) |
2,291 |
Non controlling interests |
(157) |
(14) |
(66) |
(58) |
(13) |
1 |
(307) |
Net income Group Share |
949 |
289 |
178 |
401 |
664 |
(496) |
1,985 |
|
H1-18 (stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
2,855 |
1,734 |
1,366 |
1,383 |
2,862 |
(119) |
10,081 |
Operating expenses excl. SRF |
(1,429) |
(1,189) |
(832) |
(667) |
(1,583) |
(375) |
(6,075) |
SRF |
(3) |
(28) |
(22) |
(18) |
(170) |
(62) |
(302) |
Gross operating income |
1,423 |
517 |
512 |
698 |
1,109 |
(556) |
3,703 |
Cost of risk |
(9) |
(107) |
(179) |
(227) |
(19) |
3 |
(537) |
Cost of legal risk |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted entities |
25 |
- |
- |
127 |
1 |
17 |
170 |
Net income on other assets |
(0) |
2 |
(0) |
1 |
13 |
16 |
32 |
Change in value of goodwill |
- |
- |
- |
- |
- |
86 |
86 |
Income before tax |
1,439 |
412 |
333 |
599 |
1,104 |
(438) |
3,450 |
Tax |
(357) |
(132) |
(101) |
(141) |
(305) |
226 |
(810) |
Net income from discontinued or
held-for-sale operations |
(1) |
(1) |
- |
- |
- |
- |
(2) |
Net income |
1,081 |
279 |
232 |
458 |
799 |
(212) |
2,638 |
Non controlling interests |
(155) |
(13) |
(64) |
(64) |
(16) |
(35) |
(346) |
Net income Group Share |
926 |
267 |
168 |
394 |
783 |
(247) |
2,292 |
Appendix 4 – Crédit Agricole Group: detailed,
stated and underlying income statement
Table 11.
Crédit
Agricole Group - Stated and underlying results, Q2-19 and
Q2-18
€m |
Q2-19 stated |
Specific items |
Q2-19 underlying |
Q2-18 stated |
Specific items |
Q2-18 underlying |
Var Q2/Q2 stated |
Var Q2/Q2 underlying |
|
|
|
|
|
|
|
|
|
Revenues |
8,485 |
(49) |
8,534 |
8,428 |
25 |
8,402 |
+0.7% |
+1.6% |
Operating expenses excl.SRF |
(5,308) |
- |
(5,308) |
(5,141) |
8 |
(5,149) |
+3.3% |
+3.1% |
SRF |
(4) |
- |
(4) |
(30) |
- |
(30) |
(87.0%) |
(87.0%) |
Gross operating income |
3,174 |
(49) |
3,223 |
3,257 |
33 |
3,224 |
(2.6%) |
(0.0%) |
Cost of risk |
(598) |
- |
(598) |
(397) |
- |
(397) |
+50.5% |
+50.5% |
Cost of legal risk |
- |
- |
- |
(5) |
(5) |
- |
(100.0%) |
n.m. |
Equity-accounted entities |
94 |
- |
94 |
80 |
- |
80 |
+16.7% |
+16.7% |
Net income on other assets |
(8) |
- |
(8) |
17 |
- |
17 |
n.m. |
n.m. |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
Income before tax |
2,662 |
(49) |
2,711 |
2,953 |
29 |
2,924 |
(9.9%) |
(7.3%) |
Tax |
(728) |
16 |
(743) |
(734) |
(9) |
(725) |
(0.9%) |
+2.5% |
Net income from discont'd or
held-for-sale ope. |
8 |
- |
8 |
(1) |
- |
(1) |
n.m. |
n.m. |
Net income |
1,942 |
(33) |
1,976 |
2,218 |
20 |
2,198 |
(12.4%) |
(10.1%) |
Non controlling interests |
(130) |
- |
(130) |
(142) |
0 |
(142) |
(8.3%) |
(8.5%) |
Net income Group Share |
1,813 |
(33) |
1,846 |
2,076 |
20 |
2,056 |
(12.7%) |
(10.2%) |
Cost/Income ratio excl.SRF (%) |
62.6% |
|
62.2% |
61.0% |
|
61.3% |
+1.6 pp |
+0.9 pp |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
1,815 |
(33) |
1,848 |
2,104 |
20 |
2,084 |
(13.7%) |
(11.3%) |
Table 12.
Crédit
Agricole Group - Stated and underlying results, H1-19 and
H1-18
€m |
H1-19 stated |
Specific items |
H1-19 underlying |
H1-18 stated |
Specific items |
H1-18 underlying |
∆ H1/H1 stated |
∆ H1/H1 underlying |
|
|
|
|
|
|
|
|
|
Revenues |
16,682 |
(175) |
16,857 |
16,686 |
35 |
16,651 |
(0.0%) |
+1.2% |
Operating expenses excl.SRF |
(10,585) |
- |
(10,585) |
(10,483) |
(1) |
(10,482) |
+1.0% |
+1.0% |
SRF |
(426) |
- |
(426) |
(389) |
- |
(389) |
+9.4% |
+9.4% |
Gross operating income |
5,671 |
(175) |
5,846 |
5,813 |
34 |
5,780 |
(2.5%) |
+1.1% |
Cost of risk |
(879) |
- |
(879) |
(818) |
- |
(818) |
+7.5% |
+7.5% |
Cost of legal risk |
- |
- |
- |
(5) |
(5) |
- |
(100.0%) |
n.m. |
Equity-accounted entities |
188 |
- |
188 |
179 |
- |
179 |
+5.5% |
+5.5% |
Net income on other assets |
3 |
- |
3 |
38 |
- |
38 |
(92.4%) |
(92.4%) |
Change in value of goodwill |
- |
- |
- |
86 |
86 |
- |
(100.0%) |
n.m. |
Income before tax |
4,983 |
(175) |
5,158 |
5,293 |
114 |
5,178 |
(5.8%) |
(0.4%) |
Tax |
(1,576) |
57 |
(1,633) |
(1,501) |
(9) |
(1,492) |
+5.0% |
+9.4% |
Net income from discont'd or held-for-sale
ope. |
8 |
- |
8 |
(2) |
- |
(2) |
n.m. |
n.m. |
Net income |
3,415 |
(118) |
3,534 |
3,789 |
105 |
3,684 |
(9.9%) |
(4.1%) |
Non controlling interests |
(253) |
- |
(253) |
(285) |
(9) |
(276) |
(11.2%) |
(8.3%) |
Net income Group Share |
3,163 |
(118) |
3,281 |
3,505 |
96 |
3,408 |
(9.8%) |
(3.7%) |
Cost/Income ratio excl.SRF (%) |
63.5% |
|
62.8% |
62.8% |
|
63.0% |
+0.6 pp |
-0.2 pp |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
3,569 |
(118) |
3,687 |
3,881 |
96 |
3,785 |
(8.1%) |
(2.6%) |
Appendix 5 – Crédit Agricole Group: results by
business line
Table 13.
Crédit
Agricole Group: Contribution by divisions - Q2-2019 &
Q2-2018
|
Q2-19 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,257 |
886 |
740 |
1,480 |
687 |
1,466 |
(30) |
8,485 |
Operating expenses excl. SRF |
(2,221) |
(573) |
(455) |
(691) |
(329) |
(797) |
(242) |
(5,308) |
SRF |
2 |
(1) |
(7) |
(3) |
(0) |
8 |
(3) |
(4) |
Gross operating income |
1,038 |
312 |
278 |
786 |
358 |
678 |
(275) |
3,174 |
Cost of risk |
(238) |
(51) |
(87) |
(8) |
(132) |
(69) |
(14) |
(598) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
4 |
- |
- |
12 |
78 |
(1) |
- |
94 |
Net income on other assets |
(7) |
(0) |
(1) |
(0) |
0 |
(0) |
0 |
(8) |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
797 |
262 |
190 |
790 |
305 |
608 |
(289) |
2,662 |
Tax |
(247) |
(84) |
(53) |
(222) |
(73) |
(148) |
99 |
(728) |
Net income from discont'd or held-for-sale
ope. |
- |
- |
- |
8 |
- |
- |
- |
8 |
Net income |
550 |
178 |
137 |
576 |
232 |
460 |
(190) |
1,942 |
Non controlling interests |
0 |
(0) |
(29) |
(76) |
(25) |
1 |
(0) |
(130) |
Net income Group Share |
550 |
178 |
108 |
500 |
207 |
460 |
(190) |
1,813 |
|
Q2-18 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,227 |
875 |
1,385 |
714 |
695 |
1,531 |
0 |
8,428 |
Operating expenses excl. SRF |
(2,145) |
(576) |
(685) |
(427) |
(310) |
(801) |
(196) |
(5,141) |
SRF |
(19) |
(2) |
0 |
(5) |
(1) |
(2) |
(1) |
(30) |
Gross operating income |
1,063 |
298 |
700 |
282 |
384 |
728 |
(197) |
3,257 |
Cost of risk |
(176) |
(56) |
(4) |
(84) |
(127) |
45 |
5 |
(397) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted entities |
2 |
- |
14 |
- |
65 |
(0) |
- |
80 |
Net income on other assets |
3 |
1 |
(0) |
(0) |
1 |
13 |
(0) |
17 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
893 |
242 |
709 |
198 |
322 |
787 |
(198) |
2,953 |
Tax |
(285) |
(73) |
(147) |
(57) |
(76) |
(197) |
101 |
(734) |
Net income from discont'd or
held-for-sale ope. |
- |
(1) |
(0) |
- |
- |
- |
- |
(1) |
Net income |
608 |
168 |
562 |
141 |
246 |
590 |
(97) |
2,218 |
Non controlling interests |
0 |
1 |
(78) |
(29) |
(30) |
(0) |
(6) |
(142) |
Net income Group Share |
608 |
169 |
484 |
113 |
216 |
589 |
(103) |
2,076 |
Table 14.
Crédit
Agricole Group. : Contribution by divisions - stated - H1-19 &
H1-18
|
H1-19 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
6,669 |
1,747 |
1,442 |
2,940 |
1,368 |
2,804 |
(287) |
16,682 |
Operating expenses excl. SRF |
(4,413) |
(1,166) |
(894) |
(1,444) |
(671) |
(1,616) |
(381) |
(10,585) |
SRF |
(88) |
(32) |
(22) |
(7) |
(18) |
(177) |
(81) |
(426) |
Gross operating income |
2,167 |
550 |
526 |
1,489 |
678 |
1,011 |
(749) |
5,671 |
Cost of risk |
(295) |
(95) |
(175) |
(3) |
(239) |
(59) |
(13) |
(879) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted entities |
9 |
- |
- |
25 |
156 |
(1) |
- |
188 |
Net income on other assets |
(7) |
1 |
(1) |
(0) |
1 |
3 |
7 |
3 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,874 |
456 |
350 |
1,510 |
596 |
953 |
(755) |
4,983 |
Tax |
(710) |
(153) |
(99) |
(419) |
(137) |
(277) |
219 |
(1,576) |
Net income from discontinued or
held-for-sale operations |
- |
- |
- |
8 |
- |
- |
- |
8 |
Net income |
1,164 |
302 |
251 |
1,099 |
459 |
676 |
(537) |
3,415 |
Non controlling interests |
(0) |
(0) |
(53) |
(149) |
(58) |
1 |
7 |
(253) |
Net income Group Share |
1,164 |
302 |
198 |
950 |
401 |
677 |
(530) |
3,163 |
|
H1-18 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
6,585 |
1,733 |
2,848 |
1,418 |
1,383 |
2,862 |
(143) |
16,686 |
Operating expenses excl. SRF |
(4,344) |
(1,189) |
(1,429) |
(869) |
(667) |
(1,583) |
(402) |
(10,483) |
SRF |
(87) |
(28) |
(3) |
(22) |
(18) |
(170) |
(62) |
(389) |
Gross operating income |
2,153 |
517 |
1,416 |
527 |
698 |
1,109 |
(606) |
5,813 |
Cost of risk |
(280) |
(107) |
(9) |
(179) |
(227) |
(19) |
3 |
(818) |
Cost of legal risk |
- |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted entities |
7 |
- |
25 |
- |
127 |
1 |
19 |
179 |
Net income on other assets |
5 |
2 |
(0) |
(0) |
1 |
13 |
16 |
38 |
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
86 |
86 |
Income before tax |
1,886 |
412 |
1,432 |
347 |
599 |
1,104 |
(487) |
5,293 |
Tax |
(690) |
(132) |
(356) |
(105) |
(141) |
(305) |
228 |
(1,501) |
Net income from discontinued or
held-for-sale operations |
- |
(1) |
(1) |
- |
- |
- |
- |
(2) |
Net income |
1,195 |
279 |
1,075 |
243 |
458 |
799 |
(260) |
3,789 |
Non controlling interests |
(0) |
1 |
(148) |
(51) |
(64) |
1 |
(24) |
(285) |
Net income Group Share |
1,195 |
280 |
928 |
192 |
394 |
799 |
(283) |
3,505 |
Appendix 6 – Method used to calculate earnings
per share, net assets per share
Table 15.
Crédit
Agricole S.A. – Data per share, net book value per share and
ROTE
(€m) |
|
Q2-19 |
Q2-18 |
|
H1-19 |
H1-18 |
|
VarQ2/Q2 |
Var H1/H1 |
Net income
Group share - stated |
|
1,222 |
1,436 |
|
1,985 |
2,292 |
|
-14.9% |
-13.4% |
- Interests on AT1, including issuance
costs, before tax |
|
(99) |
(93) |
|
(240) |
(225) |
|
+6.1% |
+6.7% |
NIGS attributable to ordinary shares - stated |
[A] |
1,123 |
1,343 |
|
1,745 |
2,067 |
|
-16.4% |
-15.6% |
Average
number shares in issue, excluding treasury shares (m) |
[B] |
2,864.1 |
2,849.2 |
|
2,863.7 |
2,846.6 |
|
+0.5% |
+0.6% |
Net earnings per share - stated |
[A]/[B] |
0.39 € |
0.47 € |
|
0.61 € |
0.73 € |
|
-16.8% |
-16.1% |
Underlying net income Group share (NIGS) |
|
1,242 |
1,418 |
|
2,038 |
2,205 |
|
-12.4% |
-7.6% |
Underlying NIGS attributable to ordinary
shares |
[C] |
1,143 |
1,324 |
|
1,798 |
1,981 |
|
-13.7% |
-9.2% |
Net earnings per share - underlying |
[C]/[B] |
0.40 € |
0.46 € |
|
0.63 € |
0.70 € |
|
-14.1% |
-9.8% |
(€m) |
|
30/06/2019 |
30/06/2018 |
Shareholder's equity Group share |
|
61,216 |
57,144 |
- AT1 issuances |
|
(6,094) |
(5,008) |
- Unrealised gains and losses on OCI -
Group share |
|
(3,056) |
(2,522) |
-
Payout assumption on annual results* |
|
- |
- |
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
52,066 |
49,615 |
-
Goodwill & intangibles** - Group share |
|
(18,335) |
(17,764) |
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
33,731 |
31,851 |
Total
shares in issue, excluding treasury shares (period end, m) |
[F] |
2,864.0 |
2,848.9 |
NBV per share , after deduction of dividend to pay
(€) |
[D]/[F] |
18.2 € |
17.4 € |
+ Dividend to pay (€) |
[H] |
0.00 € |
0.00 € |
NBV per share , before deduction of dividend to pay
(€) |
|
18.2 € |
17.4 € |
TNBV per share, after deduction of dividend to pay
(€) |
[G]=[E]/[F] |
11.8 € |
11.2 € |
TNBV per sh., before deduct. of divid. to pay
(€) |
[G]+[H] |
11.8 € |
11.2 € |
* dividend
proposed to the Board meeting to be paid |
|
|
|
** including
goodwill in the equity-accounted entities |
|
|
|
(€m) |
|
|
H1-19 |
H1-18 |
Net income Group share attributable to ordinary shares |
[H] |
|
3,490 |
4,144 |
Tangible
NBV (TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
32,579 |
30,404 |
Stated ROTE (%) |
[H]/[J] |
|
10.7% |
13.6% |
Underlying Net income attrib. to ord. shares (annualised) |
[I] |
|
3,596 |
3,971 |
Underlying ROTE (%) |
[I]/[J] |
|
11.0% |
13.1% |
*** including
assumption of dividend for the current exercise |
|
|
|
|
This page is left blank intentionally.
Warning
The financial information for the
second quarter and first half of 2019
for Crédit Agricole S.A. and the
Crédit Agricole Group comprises this press release and
the attached quarterly financial report and presentation, available
at
https://www.credit-agricole.com/en/finance/finance/financial-publications.
This report may include prospective information
on the Group, supplied as information on trends. This data does not
represent forecasts within the meaning of European Regulation
809/2004 of 29 April 2004 (chapter 1, article 2, §
10).
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 six-month period
ending 30 June 2019 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 groups
Crédit Agricole S.A. and Crédit Agricole have not changed
materially since the registration with the French market regulatory
authority AMF of the 2018 Registration Document and its A.01
update (including all regulatory information about Crédit Agricole
Group).
The sum of values contained in the tables and
analyses may differ slightly from the total reported due to
rounding.
Since 3 May 2018, Banca Leonardo
has been included in the scope of consolidation of
Crédit Agricole Group as a subsidiary of
Indosuez Wealth Management. Historical data have not been
restated on a proforma basis.
Financial calendar
- 8 November 2019 Publication
of the 2019 third quarter and first 9 months results
- 14 February 2020
Publication of the 2019 fourth quarter and
full year results
-
6 May 2020
Publication of the 2020
first quarter 2020 results
-
13 May 2020
Annual General Meeting in Paris
-
6 August 2020
Publication of the 2020 second quarter and the
first half year results
- 4 November 2020 Publication
of the 2020 third quarter and first 9 months results
Contacts
CRÉDIT AGRICOLE PRESS
CONTACTS:
Charlotte de
Chavagnac + 33 1 57
72 11
17
charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain
+ 33 1 43 23 25
41
olivier.tassain@credit-agricole-sa.frCaroline de
Cassagne
+ 33 1 49 53 41
72
caroline.decassagne@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 (toll free number – France only) |
credit-agricole-sa@relations-actionnaires.com |
|
|
|
Clotilde
L’Angevin |
+ 33 1 43 23 32
45 |
clotilde.langevin@credit-agricole-sa.fr |
Cyril Meilland,
CFA |
+ 33 1 43 23 53
82 |
cyril.meilland@credit-agricole-sa.fr |
Equity
investors: |
|
|
Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
Emilie
Gasnier |
+ 33 1 43 23 15
67 |
emilie.gasnier@credit-agricole-sa.fr |
Ibrahima
Konaté |
+ 33 1 43 23 51
35 |
ibrahima.konate@credit-agricole-sa.fr |
Vincent
Liscia |
+ 33 1 57 72 38
48 |
vincent.liscia@credit-agricole-sa.fr |
Annabelle
Wiriath |
+ 33 1 43 23 55
52 |
annabelle.wiriath@credit-agricole-sa.fr |
|
|
|
Debt 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
1 In this press release, “underlying” refers to intermediary
balances adjusted for the specific items described on p. 16 and
onwards 2 Net income Group share3 Underlying, excluding
specific items. See p. 16 and onwards for more details on specific
items and p. 26 for the ROTE calculation4 Contribution to the
Single Resolution Fund (SRF) 5 Average over last four rolling
quarters, annualised6 According to the 9.5% SREP requirement
(including countercyclical buffer)7 See calculation of ROTE p. 26;
annualised rate calculated without restating IFRIC21 charges,
taking into account AT1 coupons deducted directly from Group net
equity; RONE of the divisions and business lines calculated using
the same method8 Underlying revenues of the business lines
(excluding Corporate Centre)9 Source : Argus de l’Assurance
28/06/201910 Source : Argus de l’Assurance 28/06/201911
Equipment rate: percentage of individual banking clients holding at
least one insurance product (Pacifica estimates). Scope: auto,
home, health, life accidents and legal protection insurance.12
Excluding the end of a mandate insourced by an Italian institution
in the first quarter of 2019, in the amount of €6.3 billion13
Project finance loans over first-half 2019, mandated arranger
in volume and in amount (USD – source: Refinitiv X15).14 Syndicated
loans over first-half year 2019, bookrunner in volume and
in amount (USD - source: Refinitiv R17).15 Reversal of provisions
on termination costs for distribution contracts with external
partners, as the fees proved to be lower than anticipated.16
Excluding the Corporate Centre.17 Average loan loss reserves over
the last four rolling quarters, annualised18 See p. 16 for more
details on specific items related to Crédit Agricole S.A.19 See
details on the calculation of the business lines’ ROTE (return on
tangible equity) and RONE (return on normalised equity) on p.26.20
Including first half 2019 retained earnings.21 The
intra-quarter leverage refers to the average of the end of month
exposures for the first two months of said quarter22 The ratio’s
numerator and denominator stand at €181.9 billion and
€136.2 billion, respectively, for Crédit Agricole S.A.23 According
to pro forma SREP requirement for 2019 of 9.5% as notified by the
ECB (incl. countercyclical buffer)24 Underlying, excluding specific
items. See p. 16 onwards for more details on specific items25
Average loan loss reserves over the last four rolling quarters,
annualised26 Including first-half 2019 retained
earnings.27 With the entry into force of CRR2, the Crédit
Agricole Group must meet the following TLAC requirements at all
times: 16% of risk-weighted assets, plus the combined buffer
requirement according to CRDV (including a 2.5% capital
conservation buffer, a 1% systemic buffer and a 0.03%
countercyclical buffer at 30 June 2019); and 6% of leverage risk
exposure.28 The ratio’s numerator and denominator stand at
€216.1 billion and
€163.8 billion respectively29 Of the 4,916 companies
evaluated by Vigeo Eiris worldwide, Crédit Agricole S.A. is one of
the 2% that were awarded the top rating.
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