CREDIT AGRICOLE SA: The Corporate and Investment Bank of the Group Crédit Agricole: A solid and profitable bank of experts c...
11 Dezember 2019 - 07:00AM
CREDIT AGRICOLE SA: The Corporate and Investment Bank of the Group
Crédit Agricole: A solid and profitable bank of experts committed
to serving Corporates
PRESS RELEASEMontrouge,
11 December 2019
The Corporate and Investment Bank of the
Group Crédit Agricole:A solid and profitable bank
of experts committed to serving Corporates
Today, Crédit Agricole CIB presents the details
of its targets for 2022, which form part of the Group project and
Crédit Agricole Group Medium Term Plan 2022.
Crédit Agricole CIB is a corporate and
investment bank which has chosen to focus more on financing
activities and corporate clients, and which is based on a powerful
and well-coordinated international network.
Its resilient, profitable and
conservative business model is based
on:
- A client-focused organisation, with an automated and systematic
measure of the profitability,
- High value-added financing activities generating a strong
RONE(1),
- Market activities which complement the financing activities for
its clients,
- A low risk profile, supported by an expert and conservative
approach on its exposures.
Within
the framework of the MTP 2022, the targets for
2022 combine:
- A RONE remaining above 10%;
- Contained RWA(2) , with an RWA target of
€123bn in 2022;
- A revenue growth of +3% on average per year by
2022, driven by all business lines:
- Development of the transactional commercial bank (accounting
for ~25% of the revenue growth between 2018 and 2022)
- Priority given to eight key sectors (revenue growth of +5% on
average per year),
- Revenue growth of +€300m for FICC,
- Doubling the size of the green loan portfolio.
- A low cost/income ratio (less
than 55%), with a cost reduction of €190m enabling to keep
investing,
- The above being based on the assumption of a normalisation of
the cost of risk: 20 to 25 bp.
Crédit Agricole CIB is also going to roll out
several cross-functional projects, including:
- A human-centric project aiming at building the
future by onboarding the new generation of experts, at empowering
the employees and at significantly communicating the values of the
Group,
- Continuously strengthening the expertise of the
business lines - the core of the resilience of the
model,
- Implementing a three-year data project, which
forms the foundation of the digital strategy,
- Consolidating its role as a leader in green and
sustainable finance, extending its offering of sustainable
solutions to all business lines.
- corresponding to an RWA allocation of 9.5%
- stable RWA excluding regulatory, BSF and FX impacts
++++++
A resilient and profitable
model
The Crédit Agricole CIB model is based on:
- A predominantly Corporate client base (70% of the commercial
revenues in 2018),
- Revenues driven by financing solutions (75% of the commercial
revenues),
- A powerful and well-coordinated international network (70% of
the commercial revenues generated outside of France).
This model, redefined after 2007/08 and deployed
since 2011, generates recurring revenues, while keeping the level
of exposure to market volatility low. The risk profile is low
thanks to an expert and conservative approach. Last, Crédit
Agricole CIB posts a low cost/income ratio, contributing to a high
RONE.
A confirmed international and client
strategy, with Asia-Pacific as a growth driver
Client coverage now operates via a
unified organisation, regrouping 330 senior bankers and
220 investment bankers. This allows for greater agility in the
allocation of resources and improved client selection. It is
combined with a sector-based approach, focussing on eight
sectors which Crédit Agricole CIB anticipates will generate revenue
growth of +5% on average per year by 2022.
In terms of geography,
Asia-Pacific is the first growth driver for Crédit
Agricole CIB, with a revenue growth target of +6.4% on
average per year by 2022, of which around +€100m by 2022 will be
from China.
Expertise in structured financing
activities and great ambitions for the commercial bank
Crédit Agricole CIB has long since demonstrated
its leadership in assets financing activities.
Its targets for the financing activities are
to:
- Maintain its leadership in real assets
financing,
- Support growth by promoting high value-added
solutions (revenue growth of +6% on average per year for
the Acquisition Finance and Advisory activity),
- Strengthen its distribution capacities through
a global and unified platform,
- Accelerate the development of the transactional
commercial bank. This activity will contribute to around
25% of Crédit Agricole CIB’s revenue growth by
2022.
Market activities supplementing
financing activities, with targets for increased
profitability
The new organisation of market activities aims
to mirror clients’ needs. It covers both financing and funding
market solutions (credit and securitisation), and hedging and
investment products.
The ambition is to achieve around €2bn
in revenues from FICC activities by 2022. Optimising the
set-up will reduce direct costs by around 10% over the same
time period.
To strengthen this strategy, Crédit
Agricole CIB will leverage green and sustainable finance, data and
digital solutions
A world leader in green and sustainable
finance activities, Crédit Agricole CIB want to go one
step further by:
- Expanding the offer of sustainable development solutions to all
Crédit Agricole CIB’s business lines,
- Doubling the size of the green loan portfolio to achieve €13bn
by 2022,
- Remaining in the Top 5 world ranking in green and sustainable
finance.
Crédit Agricole will also roll out a
three-year data project, forming the foundation of its long-term
digital strategy, and has created an innovation
team that directly reports to the CEO of Crédit Agricole
CIB.
Contact
Maryse Dournes 33 (0)1 41 89 89 38 /
maryse.dournes@ca-cib.com
About Crédit Agricole Corporate and Investment
Bank (Crédit Agricole CIB)
Crédit Agricole CIB is the corporate and
investment banking arm of Credit Agricole Group, the 12th largest
banking group worldwide in terms of tier 1 capital (The Banker,
July 2019). Nearly 8,000 employees across Europe, the Americas,
Asia-Pacific, the Middle East and Africa support the Bank's
clients, meeting their financial needs throughout the world. Crédit
Agricole CIB offers its large corporate and institutional clients a
range of products and services in capital markets activities,
investment banking, structured finance, commercial banking and
international trade. The Bank is a pioneer in the area of climate
finance, and is currently a market leader in this segment with a
complete offer for all its clients.For more information, please
visit www.ca-cib.com
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