Credit Agricole Sa: Results for the fourth quarter and full year
2019 - Historic level for annual results
|
Montrouge, 14 February 2020 |
Results for the fourth quarter and full year
2019
Historic level for annual results
|
Crédit Agricole S.A. |
|
Underlying revenues1Q4: €5,184m
+7.7% Q4/Q4 2019: €20,339m +3.3% 2019/2018 |
Underlying net income2Q4: €1,318m
+23.5% Q4/Q4 2019: €4,582m +4.0% 2019/2018 |
Underlying ROTE11.9%CET1
ratio 12.1% +0.4 pp Dec./Sept., well
above the MTP target |
- Stated net income up sharply, in Q4: €1,661m
(+64.9% Q4/Q4) and in 2019: €4,844m (+10.1% 2019/2018);
- Favourable decision by the French Council of State on Emporiki
(+€1,038m) and partial impairment of goodwill on LCL (-€611m)
classified as specific items (for a total of +€343 m in net
income Group share Q4-2019, compared to -€59m in Q4-2018);
- Underlying income1 up in the quarter (+23.5% Q4/Q4) and
the year (+4.0% 2019/2018), historic level
in 2019;
- High profitability: Underlying ROTE3 2019:
11.9%;
- Underlying EPS: Q4 2019: €0.42, +28.1% Q4/Q4, 2019:
€1.39 +0.1% 2019/2018 (+2.9% excluding foreign
exchange impact on the AT1 coupons in Q3 2019);
- Dividend proposed at the General Meeting up +1.4%
2019/2018 at €0.70;
- Positive contribution of all business lines to
the annual growth in results; underlying revenues
up (+7.7% Q4/Q4 and +3.3% 2019/2018), in a more positive
market context in 2019. Return of the cost of credit risk to a
normal level (32 basis points4)
- Significantly positive jaws (+5.5 pp Q4/Q4) and
improvement in the underlying cost/income ratio excluding
ratio SRF5 (from -3.4 pp to 62.6% in Q4 and from -1.1 pp to 61.0%
in 2019);
- CET1 ratio up by +0.4 pp in Q4 to
12.1%, enabling an initial 35% dismantling of the Switch
mechanism in Q1-2020, which is anti-dilutive for Crédit Agricole
S.A.; Decline in risk-weighted assets in the business lines
in Q4-2019.
|
|
Crédit Agricole Group* |
|
Underlying revenues1Q4:
€8,602m +6.7% Q4/Q4 2019: €33,790m +3.0%
2019/2018 |
Underlying net income2Q4:
€1,986m +22.1% Q4/Q4 2019: €7,191m
+5.0% 2019/2018 |
CET1 ratio 15.9% +0.4 pp
Dec./Sept. +6.2 pp above SREP6 |
|
§ Stated net income Group share2 for Q4:
€2,186m, +39.2% Q4/Q4 (2019: €7,198m, +5.2%
2019/2018);§ Regional Banks: increase of the
underlying net income Group share1 (+26.6% Q4/Q4, +8.1% 2019/2018),
cost of risk at 10 bp4.§ First implementation of the
Group project €9 billion in Group revenue synergies (+€0.3
billion), dynamic customer acquisition in France and Italy (
1 800 000 individuals and entrepreneurs), international
development of business lines (Amundi, CACF, CAA, CACEIS) through
signing or strengthening of partnerships. * Crédit Agricole S.A.
and 100% of Regional Banks. |
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 55.9% of Crédit Agricole S.A. Please see p. 20 onwards of
this press release for details of specific items, which are
restated in the various indicators to calculate underlying income.
A reconciliation between the stated income statement and the
underlying income statement can be found from p. 26 onwards for
Crédit Agricole Group and from p. 22 onwards for
Crédit Agricole S.A.
Crédit Agricole
S.A.
Strong increase in underlying
quarterly net income Group share
- Sharp increase in reported results: Q4-2019:
€1,661m, +64.9% Q4/Q4; 2019: €4,844 m, +10.1% 2019/2018. Favourable
decision by the French Conseil d’Etat on Emporiki (+€1,038m) and
partial impairment of goodwill on LCL (-€611m) classified as
specific items (for a total of +€343m in net income Group share
Q4-2019, compared to -€59m in Q4-2018);
- Underlying net income1 up in the quarter
(1 318 m€, +23.5% Q4/Q4) and over the year (4 582 m€,
+4.0% 2019/2018), an historic level for underlying net income Group
share in 2019 (€4,582m).
Profitability at a high level:
Underlying ROTE at 11.9%
Dividend up +1.4% 2019/2018, to
€0.70
- Underlying EPS: Q4-2019: €0.42, +28.1% Q4/Q4;
2019: €1.39, +0.1% 2019/2018 (+2.9% excluding foreign exchange
impact on AT1 coupons in Q3-2019);
- Performance and regularity of the dividend:
dividend proposed at the General Meeting up +1.4% 2019/2018 to
€0.70 (distribution policy confirmed).
Strong commercial activity in
all business lines
- Record net inflows in Asset management,
positive market effect; premium income up +7.7% in property and
casualty and +8.7% in personal protection in 2019;
- Strong customer acquisition in Retail
banking in France and Italy (1 800 000 individuals
and entrepreneurs in 2019), dynamic growth in savings and loans
(+6.7% Dec./Dec. in France and Italy in the retail networks);
- High business production in consumer
finance (+4.0% of outstandings under management
Dec./Dec.), leasing production at its highest
level since 2014;
- Dynamic commercial activity in capital
markets, in a market environment that became more
favourable in 2019; high level of activity in structured
finance; increase in assets under custody and
administration in asset servicing.
Positive contribution of the
business lines to income growth in 2019
- Underlying revenues up (+7.7% Q4/Q4 and +3.3%
2019/2018);
- Significantly positive jaws (+5.5 pp Q4/Q4),
improvement in the underlying cost/income ratio excluding SRF7 (by
-3.4 pp to 62.6% in Q4 and -1.1 pp to 61.0% in 2019) despite
development investments in the Asset gathering business line;
- Decline in risk-weighted assets in business
lines Q4-2019 (-2.0% Dec./Sept.), thanks to securitisation
transactions in corporate and investment banking, without calling
into question the level of activity;
- Return of the cost of credit risk to a normal
level (32 basis points).
Financial strength: CET1 ratio
at 12.1% (+0.4 pp Dec/Sept), allowing for a partial dismantling of
35% of the Switch mechanism in Q1-2020, accretive for
CAsa
Group project and MTP
2022
Implementation of the Group
project and MTP initiated, strengthening of business line
partnerships
- Group revenue synergies at €9 billion, up €0.3
billion, mainly driven by insurance;
- Customer project: growth of the net promoter
score of Regional Banks and LCL, launch of innovative offerings,
intensification of digital customer relations, 500,000 customers
met as part of the Trajectoires Patrimoine initiative;
- Human-centric project: Crédit Agricole Group
is ranked first in financial services in France for diversity by
the Financial Times;
- Societal project: Crédit Agricole S.A. issued
a €1 billion Green bond, and Crédit Agricole Home Loan SFH issued a
€1.25 billion Green covered bond;
- International development of business lines via
partnerships (CACEIS Santander, CACEIS KAS Bank,
CAA Abanca, CACF BBPM, CACF Bank, CAC FCA Bank, Amundi Sabadell,
Amundi Bank of China)
Crédit Agricole S.A.'s Board of Directors,
chaired by Dominique Lefebvre, met on 13 February 2020 to examine
the financial statements for the fourth quarter and full year
2019.
In the fourth quarter of 2019,
stated net income Group share reached €1,661
million, versus €1,008 million in the
fourth quarter of 2018. The specific
items recorded this quarter generated a positive
net impact of +€343 million on net income Group share. For
the record, they had a limited negative impact of -€59 million in
the fourth quarter of 2018.
Excluding these specific items,
underlying net income Group share for
fourth quarter 2019 came to
€1,318 million, a strong increase of
+23.5% compared to
fourth quarter 2018.
Underlying earnings per share stood at
€0.42 in the fourth quarter of 2019, up
+28.1% compared to fourth quarter 2018.
Crédit Agricole S.A. - Stated and underlying results,
Q4-19 and Q4-18
| In €m |
Q4-19 stated |
Q4-18 stated |
Var Q4/Q4 stated |
Q4-19 underlying |
Q4-18 underlying |
Var Q4/Q4 underlying |
| |
|
|
|
|
|
|
| Revenues |
5,119 |
4,853 |
+5.5% |
5,184 |
4,814 |
+7.7% |
| Operating expenses excl.SRF |
(3,260) |
(3,213) |
+1.5% |
(3,244) |
(3,175) |
+2.2% |
| SRF |
(0) |
- |
n.m. |
(0) |
- |
n.m. |
|
Gross operating income |
1,859 |
1,641 |
+13.3% |
1,940 |
1,640 |
+18.3% |
| Cost of risk |
(340) |
(246) |
+38.0% |
(340) |
(246) |
+38.0% |
| Cost of legal risk |
- |
(75) |
(100.0%) |
- |
(75) |
(100.0%) |
| Equity-accounted entities |
76 |
7 |
x
10.3 |
76 |
74 |
+2.6% |
| Net income on other assets |
14 |
56 |
(74.7%) |
20 |
56 |
(63.7%) |
| Change in value of goodwill |
(589) |
- |
n.m. |
- |
- |
n.m. |
|
Income before tax |
1,021 |
1,383 |
(26.2%) |
1,697 |
1,450 |
+17.1% |
| Tax |
847 |
(222) |
n.m. |
(219) |
(221) |
(1.0%) |
| Net income from discont'd or
held-for-sale ope. |
(46) |
(0) |
n.m. |
(0) |
(0) |
n.m. |
|
Net income |
1,821 |
1,161 |
+56.8% |
1,479 |
1,229 |
+20.4% |
| Non controlling interests |
(160) |
(154) |
+4.0% |
(161) |
(162) |
(0.6%) |
|
Net income Group Share |
1,661 |
1,008 |
+64.9% |
1,318 |
1,067 |
+23.5% |
|
Earnings per share (€) |
0.54 |
0.31 |
+75.5% |
0.42 |
0.33 |
+28.1% |
|
Cost/Income ratio excl.SRF (%) |
63.7% |
66.2% |
-2.5 pp |
62.6% |
65.9% |
-3.4 pp |
Activity
Commercial activity was buoyant in
Crédit Agricole SA’s business lines, in the fourth quarter of 2019
as well as over the full year 2019, in a persistently
difficult interest rate environment, but against a backdrop of
gradually improving market conditions
The business lines of
Crédit Agricole S.A. once again enjoyed excellent
activity this quarter, be it in lending, customer savings or
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, outstandings (savings,
retirement and death & disability) reached €304 billion, up
+6.6% compared to December 2018, of which 22.8% are unit-linked, up
+1.8 percentage points year-on-year. Premium income reached €6.0
billion for fourth quarter 2019 (down -12.0% compared to fourth
quarter 2018), as a result of a decrease in total net inflows of
-€1.1 billion compared to fourth quarter 2018 to €1.0 billion. Net
inflows were entirely unit-linked, with unit-linked contracts
accounting for 33.4% of gross inflows in fourth quarter 2019,
up +4.4 percentage points compared to fourth quarter 2018
and +4.2 percentage points compared to the previous
quarter. For several years, Crédit Agricole Assurances
has been adapting its strategy to the low interest rate environment
and has significant flexibility with regard to this situation. The
average rate of return on euro contract assets reached 2.46% in
2019 and the stock of Policyholder Participation Reserve (PPE)
reached €10.8 billion at the end of December 2019, an increase of
+€948 million compared to December 2018, thanks to the maintenance
of the spread between the return on assets and the return on
liabilities. The PPE reached 5.2% of outstanding euro-denominated
contracts, a level of coverage that is higher than the average for
the French market. The solvency of Crédit Agricole Assurances is at
a comfortable level (263% and 188% excluding the new rules for the
integration of the PPE). Crédit Agricole Assurances also continues
to adopt measures to encourage unit-linked underwriting.
- In Property and Casualty insurance,
Crédit Agricole Assurances continued to outperform the
French market, with premium growth of +6.7% in the fourth quarter
of 2019, driven by continued strong growth in France (+6.9%) and
Italy (+1.6%). Pacifica recorded a net increase of +115,000
contracts over the quarter, reaching nearly 14.1 million contracts
at end-December 2019. The equipment rate for individual customers8
grew in the LCL network (25.0% at end-December 2019, i.e. a
+1.1 percentage point increase since December 2018) and the
Regional Banks network (40.7% at end-December 2019, i.e. a
+1.5 percentage point increase since December 2018), as well
as in CA Italia (15.4% at end-December 2019, i.e. a +1.7 percentage
point increase since December 2018). The combined ratio is well
managed at 95.9%, slightly in increase of +0.4 percentage point
year-on-year, due to the weather events in the second half of the
year. In Death & disability/Creditor/Group,
revenues reached nearly €1,024 million in the fourth quarter of
2019, up +9.1% compared to the same period in 2018, driven by
growth in all three business segments.
- Asset management (Amundi) recorded record net
inflows this quarter, at +€76.8 billion, driven by medium to
long-term assets (€82.4 billion), thanks to the excellent
performance of medium to long-term retail asset inflows in Retail
(+€69.9 billion) including +€66.7 billion for Joint Ventures,
driven by India (+€61.4 billion) and +€3.2 billion for third-party
distributors. Medium to long-term inflows for institutional and
corporate investors were up +€12.5 billion, driven by all segments.
Assets under management reached €1,653 billion at
end-December 2019, up +16.0% compared to end-December 2018, despite
continuing uncertainty in the global environment.
- Retail banking is still showing strong sales
momentum, with high rates of credit growth, particularly in France
for LCL (up +8.2% compared to end-December 2018), thanks to home
loans (+9.2%), the small businesses market (+11.4%) and corporates
(+3.3%), but also in Italy for CA Italia (+2.6%), driven by loans
to individuals (+4.9%) and corporates (+4.3%). Renegotiations of
housing loans have increased for the past two quarters at LCL (€1.0
billion in outstandings respectively in the third quarter and the
fourth quarter 2019), but remain well below the high point of the
fourth quarter 2016 (€5.2 billion). LCL’s inflows increased
year-on-year (+7.6%), driven by on-balance sheet deposits (+8.6%,
including +7.8% for passbooks and +11.7% for demand deposits) but
also by off-balance sheet deposits (+6.0%) thanks to life insurance
(+5.5%). Inflows were up in Italy (+4.9%), thanks to strong growth
in off-balance sheet deposits (+8.8%) and a slight increase in
on-balance sheet deposits (+1.6%). Net customer acquisition is
still buoyant at LCL (+52,000 individual and SME and small business
customers since the beginning of the year, and +17,000 customers of
LCL Essentiel since its launch in April), and at CA Italia (+33,000
individual customers9 since the beginning of the year). Equipment
rates continued to increase steadily, with growth of +6.6% in
comprehensive auto/home/health contracts and +4.6% in premium cards
at LCL, and a +25% increase in the number of property and casualty
insurance policies at CA Italia year-on-year
- In the Specialised financial services business
line, new business production in the fourth quarter of
2019 was €11.5 billion and continued its upward trend (+3.3%
compared to the fourth quarter of 2018) with a strong contribution
from the Regional Banks and LCL (+12.9% and +7.6%, respectively).
Assets under management totalled €92 billion up +4.0% year-on-year.
Consolidated outstandings were also up (+3.6%) to €34.8 billion.
CAL&F’s activity is buoyant, both in factoring and in leasing.
Commercial factoring production has been rising sharply since the
fourth quarter of 2018 (+119% to €4.9 billion) both in France
(+144% to €3 billion) and abroad (+87% to €1.8 billion). Commercial
leasing reached its highest level since 2014 (€1.8 billion, a +9.3%
increase from fourth quarter 2018).
- Activity in the Large customers
business line was good overall, with revenues up in
the fourth quarter of 2019 (+20.7% compared to the fourth quarter
of 2018) and over the full year 2019 (+6.5%). Underlying revenues
from Capital markets and investment banking increased sharply
(+54.7% compared to the fourth quarter of 2018), driven by strong
commercial activity across almost all product lines, with market
conditions that became more favourable after a low fourth quarter
2018. Despite the absence of major transactions, structured finance
recorded a good performance this quarter (+7.2%), while revenues in
commercial banking were penalized (-2.3%) by the downturn in the
syndicated EMEA loans market (-10% year-on-year)10. Nevertheless,
the business line has maintained its leading position (number 2) in
EMEA syndicated loans11. Lastly, Asset servicing (CACEIS) posted
record levels of assets under custody (€3,879 billion at
end-December 2019, up +47.3% year-on-year) and assets under
administration (€2,047 billion, up +21.0% year-on-year) in this
quarter, thanks in particular to the consolidation of Kas Bank
(+€196 billion AuC and +€142 billion AuA), Santander Securities
Services (“S3”) (+€654 billion AuC and +€12 billion AuA), and also
to good commercial dynamism and a positive market effect (+€395
billion AuC and +€201 billion AuA at a constant scope).
International development of business
lines via
partnerships.
In keeping with the strategy outlined at the
presentation of the Group’s Medium-Term Plan on 6 June 2019, Amundi
and CACEIS continued their policy of non-Group partnerships in
Europe and Asia this quarter.
- Following the announcement on 17 April of the agreement between
Crédit Agricole S.A. and Santander of a
merger of their institutional custody and asset servicing
activities, on 23 December the two entities announced the
completion of the merger between CACEIS and Santander Securities
Services (“S3”) to create a leading player at the European level.
The new entity retains the name CACEIS, and will be held by
Crédit Agricole S.A. and Santander for 69.5% and 30.5%,
respectively. It will combine the activities of CACEIS and
Santander Securities Services (“S3”) in Spain and Latin
America (Brazil, Mexico and Colombia). This new entity, with €3,879
billion in assets under custody and €2,047 billion of assets under
administration at the end of December 2019, will benefit from the
increase in its critical size and a strengthened competitive
positioning, thanks to a broader geographic presence stemming from
the growth of high-potential countries (Latin America and
Asia).
- On 20 December 2019, Amundi and BOC Wealth Management,
a subsidiary of Bank of China, announced that they had
received the approval from the China Banking and Insurance
Regulatory Commission to create an asset management joint venture.
The aim is to launch the activity in the second half of 2020.
- On 21 January 2020, Amundi also announced that it is entering
into a 10-year strategic partnership with Banco
Sabadell for distributing asset management products in the
Banco Sabadell network in Spain. Amundi will also acquire 100% of
Sabadell Asset Management, the asset management subsidiary of Banco
Sabadell, the fifth largest player on the Spanish market with a 6%
market share and €22 billion in assets under management, for a cash
purchase price of €430 million. The transaction is expected to be
completed in the third quarter of 2020 and would make Amundi the
fourth largest player on the Spanish market.
Besides these operations, the following
transactions were announced since the beginning of
2019:
- KAS Bank was consolidated in the CACEIS
financial statements as at 30 September 2019 following CACEIS’
friendly public takeover bid, launched on 26 July for all of the
share capital of KAS Bank. This confirmed CACEIS’ pan-European
ambitions by strengthening its position in the Netherlands and its
capabilities to serve the customer base of insurance companies and
pension funds; this acquisition will create value thanks to its
strong potential for synergies.
- On 28 June 2019, CA Consumer Finance 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. The
third quarter saw the first consolidation of SoYou resulting from
the partnership signed between CA Consumer Finance and
Bankia on 7 March 2018. On 10 October
2019, the joint venture was approved by the Spanish Ministry of
Economy to operate as a financial credit institution.
- 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 European
Commission approved the creation of a joint venture on 28 October
2019.
Moreover, during 2019, Crédit Agricole Corporate
& Investment Bank completed the disposal of a 10.9% holding in
the capital of the Bank of Saudi Fransi (BSF) to a
consortium led by Ripplewood and to the Olayan Saudi Investment
Company. This disposal was completed in two stages: the disposal of
a first block of 4.9% on 29 April 2019 followed by the disposal of
a second block of 6.0% on 21 November 2019 after the exercise of
the right to purchase attached to the disposal of the first block .
At 31 December 2019, Crédit Agricole CIB still holds 4.0% of the
share capital of the BSF.
Results
The specific items recorded
this quarter generated a positive net impact of
€343 million on net income Group share. They include
the favourable decision of France's Council of State (Conseil
d’Etat) on the tax treatment dispute regarding the Emporiki
securities in the amount of +€1,038 million, the costs of
integration and acquisition by CACEIS of Santander and Kas Bank
(respectively -€15 million in operatingl expenses/-€11 million in
net income Group share, and -€6 million in net income on other
assets/-€5 million in net income Group share), a reclassification
of held-for-sale operations of -€46 million under income from
held-for-sale operations. The acquisition of Kas Bank by CACEIS
resulted in badwill of +€22 million and the goodwill of LCL
was partially impaired for -€611 million. To this is can be
added the recurring accounting volatility items with a limited net
negative effect of -€44 million on net income Group share,
namely DVA (Debt Valuation Adjustment, i.e. gains and losses on
financial instruments related to changes in the Group’s issuer
spread), plus the Funding Valuation Adjustment (FVA) portion
associated with the change in the issuer spread, which is not
hedged, totalling -€4 million, the hedge on the
Large customers loan book for -€11 million, and the
change in the provision for home purchase savings plans
for -€29 million. In the fourth quarter 2018, specific items had a
limited net loss effect of -€59 million on net income Group
share, and included in particular the fine of -€67 million
imposed by the Italian competition authority (AGCM) on FCA Bank.
The other elements were less significant: -€27 million (-€14
million in net income Group share) Pioneer integration costs at
Amundi, the integration costs of the three Italian banks of -€11
million (-€6 million in net income Group share), offset by a net
profit of +€28 million in net income Group share from the recurring
volatile accounting items, namely the DVA (Debt Valuation
Adjustment, i.e. gains and losses on financial instruments linked
to changes in the Group's issuer spread) for +€11 million, the
hedging of the Large customers loan book for +€12 million, and
changes in provisions for home purchase savings plans for +€5
million.
The business lines performed strongly in the
fourth quarter of 2019. Underlying net income Group
share of business lines12 increased by +12.8%. This
strong increase is explained in particular by the Large customers
and Asset gathering business lines. The former posted a very good
performance this quarter (+30.1% at €408 million), driven by
capital markets. Its contribution increased despite the reversal of
the cost of risk in the business line and the increase in operating
expenses related to the integration of new partnerships in asset
servicing. The Asset gathering business line had a strong quarter
(+13.8% at €583 million), illustrated by a solid contribution from
insurance and by high profitability in asset management. In Retail
Banking, gross operating income rose sharply (+6.7% to €525
million), and the cost of risk continued to fall at CA Italia. The
Specialised financial services business line posted resilient gross
operating income (+1.8% at €341 million) thanks to good cost
control.
In fourth quarter 2019, underlying
revenues totalled €5,184 million (+7.7%). This rapid
growth was driven by dynamic commercial activity across all
businesses, in particular within the Large customers business line
(+20.7%) in market conditions that became more favourable over the
course of the year. The increase in revenues was also strong in the
Asset gathering business line (+10.4%) with record inflows for
Amundi, dynamic unit-linked assets and a better performance than
the French property and casualty insurance market. The Retail
banking business line continues to grow in terms of customer
acquisition and business. Interest revenues held up well, despite
the low interest rate environment both in France and
internationally. Volume effect helped therefore to maintain the net
interest margin, even in the low interest rates context. For all of
the business lines (excluding the Corporate Centre), underlying
revenues were up +8.4% this quarter.
These positive revenue trends were accompanied
by good cost control. Underlying operating
expenses showed a controlled increase of
+2.2% compared to fourth quarter 2018. This
enabled significantly positive jaws of +5.5
percentage points. Expenses nevertheless continued to rise in the
business lines (+3.3% between the fourth quarter of 2018 and the
fourth quarter of 2019), in particular for those that are growing
their activities. In particular, the Asset
gathering business line showed an increase in expenses reflecting
the development in international insurance activity and corporate
P&C projects (this effect is cumulative with a base effect on
insurance compared to the fourth quarter 2018). In Asset
management, the increase in expenses can be explained by the
increase in variable compensation (linked to solid performance),
and by one-off costs linked to strategic projects. Large customers
posted a sharply improved cost/income ratio on corporate and
investment banking (-9.1 percentage points over the period) and
Asset servicing made investments to support recent partnerships and
customer acquisition (FTEs and IT costs). Retail Banking posted
cost income ratio improvements for LCL (-1.7 percentage points in
fourth quarter 2019 and for the year) and CA Italia (-0.7
percentage points in fourth quarter 2019/-0.5 percentage points for
the year) thanks to positive jaws. The Specialised financial
services business line recorded good cost control over the period.
The underlying cost/income ratio stood at
62.6% for fourth quarter 2019 for Crédit Agricole S.A., an
improvement of +3.4 percentage points over the period.
Underlying gross operating
income therefore strongly increased, by
+18.3% compared to the fourth quarter of 2018.
Cost of risk increased by
+38.0%/-€94 million, to -€340 million versus
‑€246 million in fourth quarter 2018, mainly due to a
return to a normal level of the cost of credit risk in Corporate
and Investment Banking, which reported net reversals of provisions
for +€28 million in fourth quarter 2018, while it reported net
provisions of -€55 million (i.e., a -€83 million
variation) in this quarter. For the same reason, we are seeing a
return to normal levels in the cost of risk on consolidated
outstandings13 for fourth quarter 2019. It stood at 32 basis
points, up +9 basis points versus fourth quarter 2018 and
up +3 basis points versus the previous quarter, but it remained
low. The other three business lines that contributed the most to
the cost of risk show contrasting variations, albeit of very
limited magnitude. LCL thus posted a +2.7% increase in the cost of
risk, to -€64 million, but its cost of risk relative to
outstandings remained low at 17 basis points (stable compared to
the previous quarter). CA Italia was down -4.0%, with the cost of
risk on outstandings continuing to improve, standing at 57 basis
points (compared to 67 points in the fourth quarter 2018 and 59
points in the third quarter 2019); lastly, Crédit Agricole Consumer
Finance recorded a +40.6% increase in the cost of risk to €115
million compared to the fourth quarter 2018, with a cost of risk on
outstandings that also rose to 128 basis points. This remains,
however, in the 120-130 basis points range, and well below the
Medium-Term Plan's assumption of 160 basis points.
The contribution of equity-accounted
entities is up +2.6%, at
€76 million, reflecting, in particular, the good performance
of the Joint-Ventures in asset management for the quarter, thanks
to India.
Net income from other assets
was €20 million, as a result of a one-off
real estate transaction in Wealth management. Underlying
income14 before tax, discontinued operations and non-controlling
interests thus increased by +17.1% to €1,697 million. The
underlying effective tax rate was
13.5%, a low level, down-2.6 percentage points
compared to fourth quarter 2018, as a result in particular of a
favourable decision on a tax dispute at Crédit Agricole Corporate
and Investment Bank. The underlying tax charge was therefore down
-1.0% to €219 million. The effective tax rate is not representative
on a quarterly basis, at end-2019 it amounted to 24.4% (vs 23.8% in
2018). The underlying net income before
non-controlling interests was up by +20.3%.
Net income attributable to
non-controlling interests was stable
(-0.6%) at €161 million.
Underlying
net income Group share increased by
+23.5% versus fourth quarter 2018, to
€1,318 million.
Over the whole of 2019,
stated net income Group share amounted to €4,844 million,
compared to €4,400 million in 2018, an increase of +10.1%.
Specific items
in 2019 had an impact of
+€262 million on
stated net income Group share. In addition to
the fourth quarter items already mentioned above, items for the
first nine months of 2019 had a limited net negative impact
of -€81 million on net income Group share; they included
recurring volatile accounting items such as the Debt Valuation
Adjustment (DVA, i.e. gains and losses on financial instruments
related to changes in the Group’s issuer spread), plus the portion
of the Funding Value Adjustment (FVA) associated with the change in
the issuer spread, which is not hedged, amounting to
-€11 million, the hedge on the Large customers loan
book for -€20 million, and the change in the provision
for home purchase savings schemes in the amount of
-€50 million. Specific items in 2018 had
a limited negative impact of -€5 million on
stated net income Group share. Compared to the fourth
quarter 2018 items already mentioned above, they had an impact
of +€54 million for the first nine months of 2018, i.e. the
adjustment of negative goodwill recognised at the time of
acquisition of the three Italian savings banks of
+€66 million, the Pioneer integration costs of
-€14 million (-€30 million before tax and non-controlling
interests), the integration costs of the three Italian banks for
+€5 million (+€9 million before tax and
non-controlling interests), the ECB fine of -€5 million, as
well as recurring specific items, namely the DVA for
+€5 million, hedges of the Large customers loan books for
+€4 million and the changes in provisions for home purchase
savings plans for -€7 million.
Excluding these specific items,
underlying net income Group share
reached €4,582 million, up
+4.0% compared to 2018.
Underlying earnings per share amounted
to €1.39 per share, up (+0.1%) compared
to 2018 but up +2.9% excluding foreign exchange impact on AT1
coupons in third quarter 2019.
Annualised ROTE15 (return on
tangible equity Group share excluding intangibles) net of annual
coupons on Additional Tier 1 securities reached
11.9% in 2019, lower than the
financial year 2018 (12.7%).
Crédit Agricole S.A. - Stated and underlying results,
2019 and 2018
| In €m |
2019 stated |
2018 stated |
Var 19/18 stated |
2019 underlying |
2018 underlying |
Var 19/18 underlying |
| |
|
|
|
|
|
|
| Revenues |
20,153 |
19,736 |
+2.1% |
20,339 |
19,694 |
+3.3% |
| Operating expenses excl.SRF |
(12,421) |
(12,286) |
+1.1% |
(12,405) |
(12,227) |
+1.5% |
| SRF |
(340) |
(302) |
+12.5% |
(340) |
(302) |
+12.5% |
|
Gross operating income |
7,392 |
7,147 |
+3.4% |
7,594 |
7,165 |
+6.0% |
| Cost of risk |
(1,256) |
(1,002) |
+25.5% |
(1,256) |
(1,002) |
+25.5% |
| Cost of legal risk |
- |
(80) |
(100.0%) |
- |
(75) |
(100.0%) |
| Equity-accounted entities |
352 |
256 |
+37.6% |
352 |
323 |
+9.0% |
| Net income on other assets |
54 |
89 |
(39.5%) |
60 |
89 |
(32.5%) |
| Change in value of goodwill |
(589) |
86 |
ns |
- |
- |
ns |
|
Income before tax |
5,952 |
6,496 |
(8.4%) |
6,749 |
6,500 |
+3.8% |
| Tax |
(456) |
(1,466) |
(68.9%) |
(1,559) |
(1,471) |
+6.0% |
| Net income from discont'd or
held-for-sale ope. |
(38) |
(3) |
ns |
8 |
(3) |
ns |
|
Net income |
5,458 |
5,027 |
+8.6% |
5,198 |
5,026 |
+3.4% |
| Non controlling interests |
(614) |
(627) |
(2.1%) |
(616) |
(620) |
(0.7%) |
|
Net income Group Share |
4,844 |
4,400 |
+10.1% |
4,582 |
4,405 |
+4.0% |
|
Earnings per share (€) |
1.48 |
1.39 |
+6.9% |
1.39 |
1.39 |
+0.1% |
|
Cost/Income ratio excl.SRF (%) |
61.6% |
62.3% |
-0.6 pp |
61.0% |
62.1% |
-1.1 pp |
For the year 2019, business line results were up
+4.0%, thanks to growth in activity of all business lines and to
controlled growth in expenses (positive jaws of +1.8 percentage
points), and despite the cost of risk returning to a normal level.
With regard to the negative result of the Corporate Centre division
(‑€813 million, compared to -€731 million in 2018), the
“structural” contribution improved by +€72 million to -€881 million
in 2019, mainly due to an improvement in the contribution from the
activities and functions of Crédit Agricole S.A.’s
corporate centre: At the same time, the other items contributed
positively in the amount of +€68 million in full year 2019, a clear
decrease compared to full year 2018 (+€222 million).
Underlying revenues were
up +3.3% compared to 2018, with a positive
contribution to this growth of all business lines except
Specialised financial services. Consumer finance is evolving in an
environment of strong competitive pressure in France over the
period, and the good performance of the automotive partnerships is
equity-accounted. Leasing and factoring posted higher revenues,
supported by very buoyant business. Revenues from the Large
customers business line increased sharply (+6.5%), due to the sales
momentum in all business activities, in market conditions that have
become more favourable in 2019.
Underlying operating expenses
increased slightly, by +1.5%, excluding SRF
contributions. This control of expenses led to positive
jaws of +1.8 percentage points over the period. In the
business lines alone, the increase amounted to +2.0%, centring
mainly on the Asset gathering and Large customers business lines,
which saw their expenses increase in line with the development of
their activities. The underlying cost/income ratio
excluding SRF was 61.0%, including
IFRIC21 expenses in the first quarter, an improvement of 1.1
percentage points compared to 2018.
Lastly, the cost of credit risk
showed an increase of +25.5%/-€254 million compared
to 2018, to -€1,256 million. This increase is mainly due to the
Large customers business line (which reported a risk charge of
-€160 million at end-December 2019, compared to a net reversal of
+€64 million at end-December 2018), and Financing activities in
particular, stemming from a progressive return to a normal level in
the cost of risk and to the one-off charges reported in the
period.
Financial solidity
At end-December 2019, the solvency of Crédit
Agricole S.A. remains at a high level, with a Common Equity
Tier 1 (CET1) ratio of 12.1%, up
+0.4 percentage point compared to end-September
2019. This increase is specifically explained by the
significant positive impact of +32 basis points related to the
favourable outcome of the tax treatment dispute regarding the
Emporiki equity investments generating a gain in income of
+€1,038 million, this profit will be allocated in its entirety
to financing the partial dismantling of 35% of the Switch guarantee
as early as the first quarter 2020 (expected impact of
approximately -40 basis points on the CET1 ratio). Excluding this
impact the ratio remained broadly stable for the quarter:
generation of capital (+16 basis points, including a dividend
provision of €0.23 for the quarter, bringing the dividend to €0.70
for the 2019 financial year) and a significant decline in
risk-weighted assets (+18 basis points) offset the decline in OCI
reserve (-10 basis points) in the context of rising interest rates,
as well as other impacts (merger of CACEIS and Santander for -5
basis points, additional sale of BSF shares for +8 basis points,
regulatory for -8 basis points).
Risk-weighted assets totalled €324
billion at end-December 2019 and fell sharply in the fourth quarter
of 2019 (-€6.6 billion/-2.0%), notably due to
securitisation transactions in corporate and investment banking and
a decline in the equity-accounted value of insurance investments.
(-€3.1 billion).
The phased-in leverage ratio
was 4.2% at end-December 2019. The intra-quarter
average measure of phased-in leverage ratio16 stood at 3.9% in the
fourth quarter of 2019.
Crédit Agricole S.A.’s average LCR
(Liquidity Coverage Ratio) over 12 months stood at 131.6%17 at
end-December 2019, which is higher than the target level of around
110% set out in the Medium-Term Plan.
At the end of December 2019,
Crédit Agricole S.A. had realised 97% of its
medium-to-long-term market funding programme for the year.
The bank raised the equivalent of €16.4 billion, of which
€10.1 billion equivalent of
senior preferred debt and senior secured debt,
and €4.5 billion equivalent of
senior non-preferred debt and €1.8
billion equivalent of Tier 2 debt. The
2020 programme is set at €12 billion, including around
€5 to €6 billion of TLAC eligible debt (Tier 2
debt or senior non-preferred debt). At end of January 2020, 22% of
the funding plan was completed.
Note that in 2019 Crédit Agricole S.A. carried
out:
- a senior non-preferred Green Bond issue for €1 billion
(included in the amounts above).
- a CAHL SFH senior secured Green Bond issue for an amount of
€1.25 billion (included in the amounts above).
- a senior preferred Panda Bond issue in the amount of CNY 1
billion (included in the amounts above).
An AT1 instrument was also issued for €1.1
billion equivalent in February 2019 (not included in the funding
plan).
* *
*
Philippe Brassac, Chief Executive Officer,
commented on the fourth quarter 2019 and full year 2019 results and
activity of Crédit Agricole S.A. as follows: « Underlying net
income of Crédit Agricole S.A. is up +23.5% this quarter, and +4.0%
for the year. All business lines contributed to this annual growth,
thanks to dynamic commercial activity, which resulted in a net gain
of 370,000 individual customers and entrepreneurs in France and
Italy this year; revenue synergies reached €9 billion within the
Group, demonstrating our organic growth potential. Lastly, the
business lines of Credit Agricole S.A., in particular asset
management, asset servicing and consumer finance, have been
actively participating in European consolidation by signing or
strengthening partnerships in France, Italy and Spain. The growth
of our profitability is robust. It is driven as much by the
dynamism of revenues as by the improvement in operational
efficiency, without impeding investment in the development of our
business lines. And it is done by controlling risk-weighted assets
and keeping the cost of risk low. Our financial solidity continues
to strengthen: the CET1 ratio of Crédit Agricole S.A. reached
12.1%, making an initial dismantling of Switch possible in 2020 and
securing our distribution policy of 50% in cash. The dividend was
up +1.4% in 2019 to €0.70 per share, demonstrating the performance
and the regularity of our distribution policy.”
Crédit Agricole
Group
In the fourth quarter, underlying
net income Group share of Crédit Agricole Group was
€1,986 million, up +22.1% compared to fourth quarter 2018. For full
year 2019, underlying net income Group share of the
Crédit Agricole Group was €7,191 million, an increase of +5.0%
compared to 2018.
The Group's performance this year is on
based the implementation of the three pillars of the Group Project.
With regard to the Customer Project, the customer net promoter
score at LCL and the Regional Banks increased (by +8 points and +5
points), innovative offerings were launched (EKO, LCL Essentiel, Je
suis entrepreneur, Yapla), the digital relationship was enhanced,
and 500,000 customers were met as part of Trajectoires Patrimoine.
Customer capture reached 1 800 000 individual and entrepreneur
customers in France and Italy over the year 2019, and net customer
capture reached 370 000. With regard to the Human-centric Project,
the Crédit Agricole Group was ranked first in financial services in
France in terms of diversity by the Financial Times. Lastly, in
respect to the Societal Project, a €1 billion Green bond was issued
by Crédit Agricole S.A. in October 2019, and a €1.25 billion Green
covered bond was issued by Crédit Agricole Home Loan SFH in
November 2019.
The contribution of the Regional Banks
to the underlying net income Group share was up +26.6% in fourth
quarter 2019. Underlying revenues of the Regional Banks increased
as well (+5.7%). Underlying operating
expenses were up +1.8% compared to fourth quarter 2018,
corresponding to continued IT investments under the Group’s Project
and Medium-Term Plan. The underlying cost/income
ratio improved compared to fourth quarter 2018 (‑2.6
percentage points) to 66.7%.
The Group’s underlying revenues reached
€33,790 million in 2019, up +3.0% year-on-year, reflecting the
strength of the Universal customer-focused banking model, stable
and diversified, and which generates organic growth in all the
business lines, thanks in particular to revenue synergies between
specialised business lines and distribution networks. Underlying
operating expenses excluding SRF are well controlled (+1.7%
increase in 2019), while incorporating IT investments in the
Regional Banks and investments to develop Crédit Agricole S.A.’s
business lines, especially in the Asset gathering business line.
Positive jaws of 1.3 percentage points were recorded this year.
Underlying cost/income ratio excluding SRF improved by -0.8
percentage point compared to 2018, reaching 63.2% this year and
reflecting the Group’s high level of operational
efficiency.
The cost of risk on outstandings of the
Regional Banks was still low (10 basis points, after 14 basis
points at end-2018). Furthermore, the NPL
ratio was down (1.87% vs 2% at end-2018) and the
NPL coverage ratio remained high
(99.1%). The Group’s cost of credit risk increased by +7.1%
in 2019, as a result of the reversal of the cost of risk in
corporate and investment banking, but it remained very low, and the
coverage ratio was 82.6%.
The Group’s Common Equity Tier 1 ratio
was 15.9% at end-December 2019, an increase of +0.4 percentage
point compared to end-September 2019, more than 6.2 percentage
points above the required regulatory level18.
The Group's performance can in particular be
explained in particular by the implementation of the three pillars
of its Group Project, which underpins its Raison d’Etre, “Working
every day in the interests of customers and society”: the Customer
Project, the Human-centric Project and the Societal Project.
Customer Project
The Group embarked upon the implementation of
its Group Project and MTP launched in June 2019. Concrete actions
were initiated ton foster excellence in customer
relations, which is at the heart of the Customer Project.
All Group business lines were organised around customer
satisfaction, as evidenced by the net promoter score (NPS), which
has grown significantly since the end of 2018: +8 at LCL and +5 for
the Regional Banks in the individual customers’ segment. Crédit
Agricole Assurances also ranked No. 1 in automotive and home claims
management by “Que Choisir” magazine in its January 2020 issue. A
zero-defect culture was been instilled within the entities with the
designation of 70 Customer Champions, voice of the customer,
in all business lines, for the resolution of pain-points and the
creation of fluid customer journey. A plan to address pain-points
was already launched and 25 priority actions have been identified.
Lastly, the Group continues to support its customers by proposing
innovative offerings adapted to their needs. This is illustrated by
“Trajectoires Patrimoine”: this new approach to providing advice
offers a global and dynamic vision of customers’ assets, enabling
them to choose the best possible options for developing and
protecting them from the very first euro. Since its launch at the
beginning of 2019, more than 500,000 customers were supported as
part of this initiative.
The Group continues to adapt its offerings to
new uses in order to become a leading digital
bank. More than 127,000 customers have subscribed to
“EKO”, Crédit Agricole's entry-level banking offering launched at
the end of 2017. The “LCL Essentiel” banking offering, launched in
April 2019 to meet the specific needs of young urban workers,
attracted more than 20,000 customers. New tailor-made offerings
will continue to be rolled out, including the Globe-Trotter
offering for young people aged 18 to 30 who travel, which has been
launched in February 2020. The multi-channel relationship also
intensified, the number of customers contacted within the Regional
Banks has increased (+1.9 percentage points since 2018), as has the
number of customers using our mobile applications: +6 percentage
points for the LCL mobile application since the end of 2018, and +4
percentage points for the “MaBanque” application. For the third
year in a row the LCL mobile application was voted best mobile
application by the meilleurebanque.com comparison site, and Crédit
Agricole's digital performance was rewarded in 2019 with the
Group's D-rating moving up to BBB under its digital
transformation.
Innovation is finally placed at
the heart of Crédit Agricole's strategy: 547 start-ups currently
assisted by Villages by CA; the network currently consists of 33
Villages By CA in France and Italy, with four new Villages created
in 2019. La “Fabrique By CA” (the Group's fintech start-up studio)
also launched two platforms in 2019, to offer a wide range of
banking and non-banking services: Je suis entrepreneur for
establishing companies, ranging from the choice of location to
securing business plans, including financing simulations, and
Yapla, dedicated to the management of associations.
In this context, the Group's customer capture is
very dynamic both in France and in Italy, with 1 800 000 new
individual and entrepreneur19 customers in 2019 and
370 000 net additional customers in 2019, of which 280,000 are
individual customers.
Human-centric Project
As part of the Group's Human Project, the
management is being transformed to increase
accountability. As of January 2020, 53% of the managers of Crédit
Agricole S.A. were trained in managerial transformation. Circular
assessments (180°) were set up at CA Italia and Amundi. In order to
adopt shorter decision-making chain, to increase
employee engagement and autonomy and to ensure greater customer
proximity, the number of management layers at Crédit Agricole
Payment Services was reduced. “Remote work” agreements were also
rolled out in 80% of the Group's entities by the end of 2019.
In order to strengthen social
dialogue, an international framework agreement was signed
on 31 July, with, as a first concrete measure, paid maternity leave
of 16 weeks for all female employees outside France. The Group's
gender diversity policy was also expanded this
year, with 23.5% women on the Crédit Agricole S.A. Executive
Committee (up +17 points compared to 2018), and 28% of women in the
decision-making bodies of Crédit Agricole S.A. entities at the end
of 2019 (up +5 points compared to 2018). Lastly, in terms of social
diversity, 100% of Crédit Agricole S.A. Group entities welcomed 300
Year 10 school children on their work experience placements.
These actions are recognised by
VIGEO, which raised the rating of Crédit Agricole
in 2019, indicating that the Group is one of the most attractive
companies in Europe. With its A1 ranking, the Group is ranked among
the top 2% of the 5,000 companies evaluated by VIGEO, and is fourth
out of 31 banks in the banking industry. Lastly, Crédit Agricole
Group was ranked first among financial services in France in terms
of diversity, in the Diversity Leaders 2020 ranking in the
Financial Times.
Societal Project
Governance
As part of the Group's climate strategy, a
Scientific Committee is in the final stages of being set up. This
Committee, which brings together climate experts and scientists
from outside Crédit Agricole Group, is responsible for conducting
the scientific work needed to guide and implement the Group's
climate strategy. It feeds into the decisions of the Corporate
Project Committee.
As part of the transition rating implemented
this year, Crédit Agricole will request its large corporate
customers to provide a detailed plan, by 2021, for the withdrawal
of their industrial mining and thermal coal production assets
within the 2030/2040 timeframe, depending on the location of their
assets. As a tool for dialogue and decision-making, this transition
rating complements the financial rating and enriches the customer
analysis file. The consolidation of the transition ratings will
enable us to identify more precisely the potential effects of
climate change on our financing portfolios and to develop climate
stress tests for 2050, aligned with different types of
scenarios.
Sustainable finance
Unifergie – a subsidiary of Crédit Agricole
Leasing & Factoring – The “Nord de France” Regional Bank, and
Crédit Agricole CIB, participated in the refinancing of the French
asset portfolio of Boralex, a Canadian company that develops,
builds and operates renewable power generation facilities in North
America and Europe. Approximately 50% of its capacity is in wind
farms in France. Boralex carried out an operation involving the
refinancing of 57 wind farms and 2 photovoltaic plants and the
construction of 4 additional wind farms over the next two years,
for a total capacity of more than 1,014 MW, corresponding to the
annual consumption of 500,000 households. The transaction,
totalling more than €1.1 billion, is the largest refinancing of a
portfolio of renewable energy assets in France.
Crédit Agricole Home Loan SFH, the housing
finance company subsidiary wholly owned by Crédit Agricole S.A.,
issued a Green covered bond for €1.25 billion over 10 years. The
funds will be allocated to the refinancing of the Regional Banks'
and LCL's energy-efficient housing loans that reduce carbon
emissions. This inaugural green issue reinforces the Group's
presence in capital markets dedicated to financing the energy
transition, and highlights the role of the Regional Banks and LCL
in promoting low-energy residential real estate.
LCL has introduced its first full range of
investments in the fight against global warming. This range
consists of equity or bond funds of companies that reduce their CO2
emissions, reinforced by a carbon offsetting mechanism.
Credit Agricole S.A. issued in October 2019 a
Green Bond with a nominal size of €1 billion and a tenor of 6
years.
Furthermore, Crédit Agricole CIB structured in
2019 more than €42.9 billion green bonds.
Inclusive finance
Crédit Agricole CIB played a leading role at the
global level in the arrangement of the Social Bonds, by
participating in the structuring of more than €3.7 billion in
Social Bonds in 2019, representing a market share of more than 30%,
and even more than 40% of the European issuers' market (source:
Dealogic).
Amundi pursues the target defined in 2018 of
doubling Amundi Finance et Solidarité's solidarity funds
outstanding loans in the next three years. At the same time, the
business line is paving the way for a similar offering on a
European scale. The objective is to be able to offer a vehicle in
the future in the social enterprises of European countries where
the Crédit Agricole Group and Amundi are particularly present.
Group results
In the fourth quarter
of 2019, Crédit Agricole Group’s
stated net income Group share was
€2,186 million, versus €1,571 million in
fourth quarter 2018. The specific items
recorded this quarter generated a positive net impact of
+€200 million on net income Group share.
Excluding these specific items, the
underlying net income Group share20 was
€1,986 million, up +22.1% compared to fourth
quarter 2018.
Credit Agricole Group - Stated and underlying results,
Q4-19 and Q4-18
| In €m |
Q4-19 stated |
Q4-18 stated |
Var Q4/Q4 stated |
Q4-19 underlying |
Q4-18 underlying |
Var Q4/Q4 underlying |
| |
|
|
|
|
|
|
| Revenues |
8,399 |
8,110 |
+3.6% |
8,602 |
8,064 |
+6.7% |
| Operating expenses excl.SRF |
(5,582) |
(5,478) |
+1.9% |
(5,566) |
(5,440) |
+2.3% |
| SRF |
- |
- |
n.m. |
- |
- |
n.m. |
|
Gross operating income |
2,818 |
2,632 |
+7.1% |
3,035 |
2,624 |
+15.7% |
| Cost of risk |
(494) |
(499) |
(1.0%) |
(494) |
(499) |
(1.0%) |
| Cost of legal risk |
- |
(75) |
(100.0%) |
- |
(75) |
(100.0%) |
| Equity-accounted entities |
83 |
10 |
x
8 |
83 |
77 |
+7.5% |
| Net income on other assets |
15 |
48 |
(69.2%) |
21 |
48 |
(56.1%) |
| Change in value of goodwill |
(642) |
- |
n.m. |
- |
- |
n.m. |
|
Income before tax |
1,780 |
2,116 |
(15.9%) |
2,646 |
2,175 |
+21.6% |
| Tax |
587 |
(416) |
n.m. |
(525) |
(412) |
+27.4% |
| Net income from discont'd or
held-for-sale ope. |
(46) |
(0) |
x
1768.1 |
(0) |
(0) |
x
8.1 |
|
Net income |
2,320 |
1,700 |
+36.5% |
2,120 |
1,763 |
+20.3% |
| Non controlling interests |
(134) |
(130) |
+3.7% |
(134) |
(137) |
(2.1%) |
|
Net income Group Share |
2,186 |
1,571 |
+39.2% |
1,986 |
1,626 |
+22.1% |
|
Cost/Income ratio excl.SRF (%) |
66.5% |
67.5% |
-1.1 pp |
64.7% |
67.5% |
-2.7 pp |
In fourth quarter 2019, underlying
revenues increased by +6.7% compared to
fourth quarter 2018, to €8,602 million, and by
+7.3% for the business lines excluding the
Corporate Centre. This growth was driven by the underlying revenues
of the Large customers business line, up +20.7%/+€244 million, of
the Regional Banks, up +5.7%/+€185 million over the period, and of
the Asset gathering business line, up +10.4%/+€153 million.
Underlying revenues in the Specialised financial services business
line fell by -2.6%/- €18 million, but it should be remembered that
the results of the automotive partnerships are equity-accounted.
International retail banking posted underlying revenues up
+1.3%.
Underlying operating expenses
were up +2.3% compared to the fourth quarter of
2018, in connection with IT investments in the Regional Banks under
the Medium-Term Plan, and investments in the development of the
Crédit Agricole S.A. business lines, especially Asset gathering and
Large customers. The underlying cost/income ratio excluding
SRF stood at 64.7%, a clear improvement of
2.7 percentage points compared to the fourth
quarter of 2018. Operating efficiency continues to improve, with a
significantly positive jaws effect of +4.4 percentage points.
Underlying gross operating
income thus increased to €3,035 million compared to fourth
quarter 2018 (+15.7%).
The cost of credit risk is
stable (-1.0%) at -€494 million, versus -€499 million in
fourth quarter 2018. This change stems in particular from the Large
customers business line, where the cost of credit risk is returning
to a normal level, with net charges of -€55 million, compared to
net reversals of +€26 million that were recorded in the fourth
quarter of 2018. The cost of risk on
outstandings21 of Crédit Agricole Group stood at
20 basis points, up +2 basis points from fourth
quarter 2018, but still at a low level, below the Medium-Term Plan
assumption of 25 basis points.
By incorporating the contribution from
equity-accounted entities, which was up by +7.5% from €77 million
to €83 million as a result of the strong performance of the
asset management joint ventures (in India in particular), the
underlying pre-tax income was €2,646 million, up
+21.6% compared to fourth quarter 2018.
The underlying tax charge was up
+27.4% from fourth quarter 2018, showing an increase of
+0.9 percentage points in the underlying tax rate, from 19.6% to
20.5%. Accordingly, underlying net income before
non-controlling interests was up +20.3% and underlying net
income Group share was up +22.1% compared to the fourth quarter of
2018.
Specific items had a
net positive impact of +€200 million on net income Group share
this quarter. They include the favourable decision of
France's Conseil d’Etat on the tax treatment dispute regarding the
Emporiki securities in the amount of +€1,038 million, the costs of
integration and acquisition by CACEIS of Santander and Kas Bank
(respectively -€15 million in operating expenses/-€11 million in
net income Group share, and -€6 million in net income on other
assets/-€5 million in net income Group share), a reclassification
of held-for-sale operations of -€46 million under income from
held-for-sale operations. The acquisition of Kas Bank by CACEIS
generated a badwill of +€22 million and LCL’s goodwill was
partially impaired in the amount of -€664 million. Lastly,
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
-€4 million in net income Group share, hedges on the
Large customers loan book for -€12 million, and the
changes in provisions for home purchase savings plans in
the amount of -€119 million are also to be included.
In fourth quarter 2018,
specific items had a negative impact of -€55 million on net income
Group share, including ‑€14 million from Pioneer Investments
integration costs (-€27 before tax and non-controlling interests),
-€7 million from the integration costs of the three Italian banks
(-€11 before tax and non-controlling interests), -€67 million for
the FCA Bank fine, and, lastly, +€33 million in net income Group
share from recurring volatile accounting items, namely the DVA in
the amount of +€11 million and the hedges on the Large customers’
loan book in the amount of +€13 million and the changes in the
provision for home purchase savings plans in the amount of +€9
million.
For full year 2019, the
underlying net income Group share was up
(+5.0%/+€342 million) compared with 2018, to
€7,191 million. The increase in the cost of credit
risk (-€117 million) is attributable to the return of the cost of
risk in corporate and investment banking to a normal level. The
increase in the tax charge (-€202 million) remained below the
strong increase in gross operating income (+€575 million).
Underlying revenues were up
+3.0% and underlying operating expenses
excluding the Single Resolution Fund (SRF) remained under
tight control, at +1.7%. The Group thus posted
positive jaws of +1.3 percentage points over the year.
Credit Agricole Group - Stated and underlying results,
2019 and 2018
| In €m |
2019 stated |
2018 stated |
Var 19/18 stated |
2019 underlying |
2018 underlying |
Var 19/18 underlying |
| |
|
|
|
|
|
|
| Revenues |
33,297 |
32,839 |
+1.4% |
33,790 |
32,813 |
+3.0% |
| Operating expenses excl.SRF |
(21,386) |
(21,064) |
+1.5% |
(21,371) |
(21,005) |
+1.7% |
| SRF |
(426) |
(389) |
+9.4% |
(426) |
(389) |
+9.4% |
|
Gross operating income |
11,485 |
11,385 |
+0.9% |
11,993 |
11,418 |
+5.0% |
| Cost of risk |
(1,757) |
(1,640) |
+7.1% |
(1,757) |
(1,640) |
+7.1% |
| Cost of legal risk |
- |
(80) |
(100.0%) |
- |
(75) |
(100.0%) |
| Equity-accounted entities |
356 |
266 |
+33.9% |
356 |
333 |
+7.0% |
| Net income on other assets |
36 |
87 |
(59.0%) |
42 |
87 |
(51.8%) |
| Change in value of goodwill |
(642) |
86 |
n.m. |
- |
- |
n.m. |
|
Income before tax |
9,478 |
10,105 |
(6.2%) |
10,634 |
10,123 |
+5.0% |
| Tax |
(1,737) |
(2,733) |
(36.5%) |
(2,945) |
(2,743) |
+7.4% |
| Net income from discont'd or
held-for-sale ope. |
(38) |
(3) |
n.m. |
8 |
(3) |
n.m. |
|
Net income |
7,704 |
7,369 |
+4.5% |
7,697 |
7,377 |
+4.3% |
| Non controlling interests |
(506) |
(525) |
(3.5%) |
(506) |
(527) |
(4.0%) |
|
Net income Group Share |
7,198 |
6,844 |
+5.2% |
7,191 |
6,849 |
+5.0% |
|
Cost/Income ratio excl.SRF (%) |
64.2% |
64.1% |
+0.1 pp |
63.2% |
64.0% |
-0.8 pp |
Regional Banks
At end-December 2019, customer
acquisition in the Regional Banks was very
buoyant, with +1 300 000 new individual customers and
entrepreneurs since the start of the year, and a net increase of
+264 000 customers of which 185,000 were individual customers.
The momentum in the commercial development of the Regional Banks
significantly contributed to growth in
Crédit Agricole S.A.’s business lines, of which the
Regional Banks, the leading retail banking network in France, are
the prime partners in Retail Banking, demonstrating the strength of
the Group’s Universal customer-focused banking model. Customer’s
equipment continues to increase: the stock of premium cards for
individual customers rose +9% between December 2018 and
December 2019, the stock of property and personal insurance
policies increased by +4.4%, and outstandings in consumer credits
increased by +7.3%.
Outstanding loans grew
+6.7% compared to end-December 2018. This growth
was driven by home loans (+7.6%) and business loans (+6%).
Customer assets rose
+5.9% year-on-year, driven by on-balance sheet
deposits (+6.3%), notably demand deposits (+11.3%). Off-balance
sheet deposits rose by 5.2% year-on-year, driven by life insurance
assets (+5.3%).
The contribution of the Regional Banks to
Crédit Agricole Group’s underlying
net income Group share came to
€680 million, a sharp increase of
+26.6% compared to the fourth
quarter of 2018.
At €3,413 million, underlying
revenues were up (+5.7%) compared to the fourth
quarter of 2018. This increase is explained by a positive market
effect on the investment portfolio and by a good level of
commissions, offsetting the pressure on interest revenues.
Operating expenses were up
+1.8% compared to fourth quarter 2018, mainly
reflecting the continued IT investments under the Group’s
Medium-Term Plan. The underlying cost/income ratio thus
was 66.7%, a decrease of -2.6 percentage points.
Cost of risk recorded a
significant decrease in fourth quarter 2019, to -€155
million compared to fourth quarter 2018 (-37.9%). It
represents 10 basis points on outstandings22 (compared to 14 basis
points in the fourth quarter of 2018), and remains at a low level.
Furthermore, the NPL ratio was down to 1.87% (versus 2% at
end-2018) and the NPL coverage ratio remained high at 99.1%.
Over 2019, the contribution of
the Regional Banks to underlying net income Group
share was €2,597 million, an increase of
+8.1%.
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.
Financial solidity
Over the quarter,
Crédit Agricole Group maintained a high level of
financial solidity, with a Common Equity Tier 1 (CET1)
ratio of 15.9%, up +0.4 percentage
point compared to end-September 2019. This ratio provides
a substantial buffer of 6.2 percentage points in relation
to the SREP requirement applicable to Crédit Agricole Group, set at
9.7% by the ECB (including the countercyclical buffer).
The MREL ratio is estimated at 33% of
risk-weighted assets at 31 December 2019. It stood at 22.6% without
including eligible preferred senior debt, up 120 basis points over
the year. The target under the Crédit Agricole Group’s
Medium-Term Plan is to achieve a subordinated MREL ratio (excluding
eligible senior preferred debt) of 24-25% of risk-weighted assets
by 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 8.5% at 31 December 2019, excluding eligible senior
preferred 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 have been
applicable since 27 June 2019, when European Regulation
CRR2 (Capital Requirement Regulation 2) came into force. At
31 December 2019, the Crédit Agricole Group’s TLAC ratio stood at
22.6% of RWA and 7.6% of leverage risk exposure (LRE), excluding
eligible senior preferred debt. The TLAC ratio increased
by 40 basis points compared to 30 September 2019 due to a stronger
CET1 (tax gain in relation to Emporiki) and to the issuance of
senior non-preferred Green debt in October. It increased by 120
basis points year-on-year. The TLAC ratios for Crédit Agricole
Group at 31 December 2019 remain much higher than the CRR2/CRDV
requirements23, by 2.9 percentage points for risk-weighted assets
and 1.6 percentage point for LRE, respectively.
The phased-in leverage ratio
came to 5.7% at end-December 2019.
The liquidity position of Crédit Agricole Group
is solid. The Group’s banking cash balance sheet, at €1,331 billion
at 31 December 2019, showed a surplus of stable funding
sources over stable assets of €126 billion, up
€8 billion compared to end-September 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 or customer-related activities. These securities
(€108 billion) covered more than five times the
short-term debt net of Central Bank deposits.
The liquidity
reserves, which include capital‑gains and haircuts on the
securities portfolio, stood at €298 billion at 31
December 2019. The Group’s average LCR ratio over 12
months stood at 128.8%24 at end-December 2019, exceeding the
Medium-Term Plan target of around 110%.
At end-December 2019, the Group’s main
issuers raised the equivalent of €38.4 billion in
medium-to-long-term debt on the markets, 43% of which was
issued by Crédit Agricole S.A. In addition,
€3.9 billion was placed in Crédit Agricole Group’s retail
banking networks (Regional Banks, LCL and CA Italia) and other
external networks, or borrowed from supranational organisations at
end-December 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 fourth quarter 2019 and full
year 2019 results and business as follows: “In 2019, all the
Group's business lines continued to expand, both in France and
abroad. In line with our Raison d’Etre ‘Working every day in the
interest of our customers and society’ formulated at the
presentation of our Medium-Term Plan in June, customer satisfaction
has improved in all segments. We have strengthened our relationship
with our customers, notably through the “Trajectoires patrimoine”
initiative, which has enabled us to meet 500,000 customers, and we
have launched innovative offerings such as EKO, “LCL Essentiel”,
and “Je suis entrepreneur”. The Group's 142,000 employees are
committed to serving customers. I am proud of Crédit Agricole Group
being ranked first in the French financial services sector in terms
of diversity by the Financial Times, and that we are stepping up
our societal commitment, both in terms of inclusive finance, with
the issue of €3.7 billion in social bonds by Crédit Agricole CIB,
and the growth of nearly 26% in Amundi's social impact
outstandings, and in terms of green finance, with the definition of
an ambitious climate strategy, and this year's issues of Green
bonds and Green covered bonds”.
Appendix 1 – Specific items, Crédit Agricole
S.A. and Crédit Agricole
Group
Crédit Agricole S.A. - Specific items,
Q4-19 and Q4-18, 2019 and 2018
| |
|
Q4-19 |
Q4-18 |
|
2019 |
2018 |
| In €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) |
|
(6) |
(4) |
15 |
11 |
|
(21) |
(15) |
22 |
16 |
| Loan
portfolio hedges (LC) |
|
(16) |
(11) |
17 |
12 |
|
(44) |
(32) |
23 |
17 |
| Home
Purchase Savings Plans (FRB) |
|
(12) |
(8) |
1 |
1 |
|
(31) |
(20) |
(1) |
(1) |
| Home
Purchase Savings Plans (CC) |
|
(32) |
(21) |
6 |
4 |
|
(90) |
(59) |
(3) |
(2) |
|
Total impact on revenues |
|
(66) |
(44) |
39 |
28 |
|
(186) |
(126) |
41 |
30 |
|
Santander/Kas Bank integration costs (LC) |
|
(15) |
(11) |
- |
- |
|
(15) |
(11) |
- |
- |
|
Pioneer integration costs (AG) |
|
- |
- |
(27) |
(14) |
|
- |
- |
(56) |
(29) |
| 3
Italian banks integration costs (IRB) |
|
- |
- |
(11) |
(6) |
|
- |
- |
(2) |
(1) |
|
Total impact on operating expenses |
|
(15) |
(11) |
(38) |
(20) |
|
(15) |
(11) |
(59) |
(30) |
|
ECB fine (CC) |
|
- |
- |
- |
- |
|
- |
- |
(5) |
(5) |
|
Total impact Non-allocated legal risk
provisions |
|
- |
- |
- |
- |
|
- |
- |
(5) |
(5) |
|
FCA Bank fine (SFS) |
|
- |
- |
(67) |
(67) |
|
- |
- |
(67) |
(67) |
|
Total impact on equity affiliates |
|
- |
- |
(67) |
(67) |
|
- |
- |
(67) |
(67) |
|
Impairment LCL goodwill (CC) |
|
(611) |
(611) |
- |
- |
|
(611) |
(611) |
- |
- |
|
Badwill Kas Bank (LC) |
|
22 |
22 |
- |
- |
|
22 |
22 |
- |
- |
| Change
of value of goodwill (CC)(1) |
|
- |
- |
- |
- |
|
- |
- |
86 |
66 |
|
Total impact on change of value of goodwill |
|
(589) |
(589) |
- |
- |
|
(589) |
(589) |
86 |
66 |
|
Emporiki litigation (CC) |
|
- |
1,038 |
- |
- |
|
- |
1,038 |
- |
- |
|
Total impact on tax |
|
- |
1,038 |
- |
- |
|
- |
1,038 |
- |
- |
|
Santander/Kas Bank acquisition costs (LC) |
|
(6) |
(5) |
- |
- |
|
(6) |
(5) |
- |
- |
|
Total impact on Net income on other assets |
|
(6) |
(5) |
- |
- |
|
(6) |
(5) |
- |
- |
|
Reclassification of held-for-sale operations (IRB) |
|
(46) |
(46) |
- |
- |
|
(46) |
(46) |
- |
- |
|
Total impact on Net income from discounted or held-for-sale
operations |
|
(46) |
(46) |
- |
- |
|
(46) |
(46) |
- |
- |
| Total
impact of specific items |
|
(723) |
343 |
(66) |
(59) |
|
(843) |
262 |
(4) |
(5) |
| Asset
gathering |
|
- |
- |
(27) |
(14) |
|
- |
- |
(56) |
(29) |
| French
Retail banking |
|
(12) |
(8) |
1 |
1 |
|
(31) |
(20) |
(1) |
(1) |
|
International Retail banking |
|
(46) |
(46) |
(11) |
(6) |
|
(46) |
(46) |
(2) |
(1) |
|
Specialised financial services |
|
- |
- |
(67,0) |
(67) |
|
- |
- |
(67,0) |
(67) |
| Large
customers |
|
(22) |
(9) |
32 |
23 |
|
(65) |
(40) |
45 |
33 |
| Corporate
centre |
|
(643) |
406 |
6 |
4 |
|
(701) |
368 |
78 |
59 |
| * Impact before tax and before minority
interests |
|
|
|
|
|
|
|
|
|
|
Crédit Agricole Group - Specific items, Q4-19 et Q4-18,
2019 et 2018
| |
|
Q4-19 |
Q4-18 |
|
2019 |
2018 |
| In €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) |
|
(6) |
(4) |
15 |
11 |
|
(21) |
(16) |
22 |
16 |
| Loan
portfolio hedges (LC) |
|
(16) |
(12) |
17 |
13 |
|
(44) |
(32) |
23 |
17 |
| Home
Purchase Savings Plans (LCL) |
|
(12) |
(8) |
1 |
1 |
|
(31) |
(20) |
(1) |
(1) |
| Home
Purchase Savings Plans (CC) |
|
(32) |
(21) |
6 |
4 |
|
(90) |
(59) |
(3) |
(2) |
| Home
Purchase Savings Plans (RB) |
|
(137) |
(90) |
7 |
4 |
|
(307) |
(201) |
(15) |
(10) |
|
Total impact on revenues |
|
(202) |
(135) |
46 |
33 |
|
(493) |
(329) |
26 |
21 |
| Santander/Kas Bank integration costs
(LC) |
|
(15) |
(11) |
- |
- |
|
(15) |
(11) |
- |
- |
|
Pioneer integration costs (AG) |
|
- |
- |
(27) |
(14) |
|
- |
- |
(56) |
(29) |
| 3
Italian banks integration costs (IRB) |
|
- |
- |
(11) |
(7) |
|
- |
- |
(2) |
(0) |
|
Total impact on operating expenses |
|
(15) |
(11) |
(38) |
(21) |
|
(15) |
(11) |
(59) |
(29) |
| ECB
fine (CC) |
|
- |
- |
- |
- |
|
- |
- |
(5) |
(5) |
|
Total impact Non-allocated legal risk
provisions |
|
- |
- |
|
|
|
- |
- |
(5) |
(5) |
| FCA Bank fine (SFS) |
|
- |
- |
(67) |
(67) |
|
- |
- |
(67) |
(67) |
| Total impact on equity
affiliates |
|
- |
- |
(67) |
(67) |
|
- |
- |
(67) |
(67) |
|
Impairment LCL goodwill (CC) |
|
(664) |
(664) |
- |
- |
|
(664) |
(664) |
- |
- |
|
Badwill Kas Bank (LC) |
|
22 |
22 |
- |
- |
|
22 |
22 |
- |
- |
| Change of value of goodwill
(CC)(1) |
|
- |
- |
- |
- |
|
- |
- |
86 |
74 |
|
Total impact on change of value of goodwill |
|
(642) |
(642) |
- |
- |
|
(642) |
(642) |
86 |
74 |
|
Emporiki litigation (CC) |
|
(6) |
(5) |
- |
- |
|
(6) |
(5) |
- |
- |
|
Total impact on tax |
|
(6) |
(5) |
- |
- |
|
(6) |
(5) |
- |
- |
|
Santander/Kas Bank acquisition costs (LC) |
|
- |
1,038 |
- |
- |
|
- |
1,038 |
- |
- |
|
Total impact on Net income on other assets |
|
- |
1,038 |
- |
- |
|
- |
1,038 |
- |
- |
|
Reclassification of held-for-sale operations (IRB) |
|
(46) |
(46) |
- |
- |
|
(46) |
(46) |
- |
- |
| Total impact on Net income from
discounted or held-for-sale operations |
|
(46) |
(46) |
- |
- |
|
(46) |
(46) |
- |
- |
| Total impact of specific
items |
|
(912) |
200 |
(59) |
(55) |
|
(1,202) |
6 |
(19) |
(5) |
|
Asset gathering |
|
- |
- |
(27) |
(14) |
|
- |
- |
(56) |
(29) |
|
French Retail banking |
|
(149) |
(98) |
8 |
5 |
|
(338) |
(222) |
(16) |
(10) |
|
International Retail banking |
|
(46) |
(46) |
(11) |
(7) |
|
(46) |
(46) |
(2) |
(0) |
|
Specialised financial services |
|
- |
- |
(67,0) |
(67) |
|
- |
- |
(67) |
(67) |
|
Large customers |
|
(22) |
(10) |
32 |
24 |
|
(65) |
(42) |
45 |
34 |
|
Corporate centre |
|
(696) |
353 |
6 |
4 |
|
(754) |
315 |
78 |
67 |
* Impact before tax and before minority
interests
Appendix 2 – Crédit Agricole S.A.:
Stated and underlying detailed income
statement
Crédit Agricole S.A. - From stated to underlying
results, Q4-19 and Q4-18
| In €m |
Q4-19stated |
Specific items |
Q4-19underlying |
Q4-18stated |
Specific items |
Q4-18underlying |
Q4/Q4stated |
Q4/Q4underlying |
| |
|
|
|
|
|
|
|
|
| Revenues |
5,119 |
(66) |
5,184 |
4,853 |
39 |
4,814 |
+5.5% |
+7.7% |
| Operating expenses excl.SRF |
(3,260) |
(15) |
(3,244) |
(3,213) |
(38) |
(3,175) |
+1.5% |
+2.2% |
| SRF |
(0) |
- |
(0) |
- |
- |
- |
n.m. |
n.m. |
|
Gross operating income |
1,859 |
(81) |
1,940 |
1,641 |
1 |
1,640 |
+13.3% |
+18.3% |
| Cost of risk |
(340) |
- |
(340) |
(246) |
- |
(246) |
+38.0% |
+38.0% |
| Cost of legal risk |
- |
- |
- |
(75) |
- |
(75) |
(100.0%) |
(100.0%) |
| Equity-accounted entities |
76 |
- |
76 |
7 |
(67) |
74 |
x
10.3 |
+2.6% |
| Net income on other assets |
14 |
(6) |
20 |
56 |
- |
56 |
(74.7%) |
(63.7%) |
| Change in value of goodwill |
(589) |
(589) |
- |
- |
- |
- |
n.m. |
n.m. |
|
Income before tax |
1,021 |
(677) |
1,697 |
1,383 |
(66) |
1,450 |
(26.2%) |
+17.1% |
| Tax |
847 |
1,065 |
(219) |
(222) |
(1) |
(221) |
n.m. |
(1.0%) |
| Net income from discont'd or
held-for-sale ope. |
(46) |
(46) |
(0) |
(0) |
- |
(0) |
n.m. |
n.m. |
|
Net income |
1,821 |
342 |
1,479 |
1,161 |
(67) |
1,229 |
+56.8% |
+20.4% |
| Non controlling interests |
(160) |
1 |
(161) |
(154) |
8 |
(162) |
+4.0% |
(0.6%) |
|
Net income Group Share |
1,661 |
343 |
1,318 |
1,008 |
(59) |
1,067 |
+64.9% |
+23.5% |
|
Earnings per share (€) |
0.54 |
0.12 |
0.42 |
0.31 |
(0.02) |
0.33 |
+75.5% |
+28.1% |
|
Cost/Income ratio excl. SRF (%) |
63.7% |
|
62.6% |
66.2% |
|
65.9% |
-2.5 pp |
-3.4 pp |
| |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
1,661 |
343 |
1,318 |
1,008 |
(59) |
1,067 |
+64.9% |
+23.5% |
Crédit Agricole S.A. - From stated to underlying
results,2019 and 2018
| In €m |
Q4-19stated |
Specific items |
Q4-19underlying |
Q4-18stated |
Specific items |
Q4-18underlying |
Q4/Q4stated |
Q4/Q4underlying |
| |
|
|
|
|
|
|
|
|
| Revenues |
20,153 |
(186) |
20,339 |
19,736 |
41 |
19,694 |
+2.1% |
+3.3% |
| Operating expenses excl.SRF |
(12,421) |
(15) |
(12,405) |
(12,286) |
(59) |
(12,227) |
+1.1% |
+1.5% |
| SRF |
(340) |
- |
(340) |
(302) |
- |
(302) |
+12.5% |
+12.5% |
|
Gross operating income |
7,392 |
(201) |
7,594 |
7,147 |
(18) |
7,165 |
+3.4% |
+6.0% |
| Cost of risk |
(1,256) |
- |
(1,256) |
(1,002) |
- |
(1,002) |
+25.5% |
+25.5% |
| Cost of legal risk |
- |
- |
- |
(80) |
(5) |
(75) |
(100.0%) |
(100.0%) |
| Equity-accounted entities |
352 |
- |
352 |
256 |
(67) |
323 |
+37.6% |
+9.0% |
| Net income on other assets |
54 |
(6) |
60 |
89 |
- |
89 |
(39.5%) |
(32.5%) |
| Change in value of goodwill |
(589) |
(589) |
- |
86 |
86 |
- |
n.m. |
n.m. |
|
Income before tax |
5,952 |
(797) |
6,749 |
6,496 |
(4) |
6,500 |
(8.4%) |
+3.8% |
| Tax |
(456) |
1,103 |
(1,559) |
(1,466) |
5 |
(1,471) |
(68.9%) |
+6.0% |
| Net income from discont'd or
held-for-sale ope. |
(38) |
(46) |
8 |
(3) |
- |
(3) |
n.m. |
n.m. |
|
Net income |
5,458 |
260 |
5,198 |
5,027 |
2 |
5,026 |
+8.6% |
+3.4% |
| Non controlling interests |
(614) |
2 |
(616) |
(627) |
(7) |
(620) |
(2.1%) |
(0.7%) |
|
Net income Group Share |
4,844 |
262 |
4,582 |
4,400 |
(5) |
4,405 |
+10.1% |
+4.0% |
|
Earnings per share (€) |
1.48 |
0.09 |
1.39 |
1.39 |
(0.00) |
1.39 |
+6.9% |
+0.1% |
|
Cost/Income ratio excl.SRF (%) |
61.6% |
|
61.0% |
62.3% |
|
62.1% |
-0.6 pp |
-1.1 pp |
| |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
5,159 |
262 |
4,897 |
4,687 |
(5) |
4,692 |
+10.1% |
+4.4% |
Appendix 3 – Crédit Agricole S.A.:
Results by business line
Crédit Agricole S.A.: Contribution by business line
Q4-19 & Q4-18
|
Q4-19 (stated) |
| €m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
| Revenues |
1,623 |
851 |
713 |
672 |
1,401 |
(141) |
5,119 |
| Operating expenses excl. SRF |
(746) |
(598) |
(454) |
(331) |
(902) |
(229) |
(3,260) |
| SRF |
- |
0 |
(0) |
(0) |
0 |
(0) |
(0) |
|
Gross operating income |
877 |
254 |
259 |
341 |
499 |
(370) |
1,859 |
| Cost of risk |
(5) |
(64) |
(78) |
(127) |
(55) |
(10) |
(340) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
| Equity-accounted entities |
14 |
- |
- |
65 |
3 |
(5) |
76 |
| Net income on other assets |
11 |
1 |
3 |
(0) |
7 |
(8) |
14 |
| Change in value of goodwill |
- |
- |
- |
- |
22 |
(611) |
(589) |
|
Income before tax |
896 |
191 |
184 |
278 |
476 |
(1,004) |
1,021 |
| Tax |
(224) |
(53) |
(49) |
(40) |
(67) |
1,278 |
847 |
| Net income from discontinued or
held-for-sale operations |
- |
- |
(46) |
- |
- |
(0) |
(46) |
|
Net income |
672 |
138 |
90 |
238 |
409 |
274 |
1,821 |
| Non controlling interests |
(90) |
(6) |
(31) |
(25) |
(10) |
2 |
(160) |
|
Net income Group Share |
583 |
132 |
59 |
213 |
399 |
276 |
1,661 |
|
Q4-18 (stated) |
| €m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
| Revenues |
1,470 |
842 |
704 |
690 |
1,210 |
(63) |
4,853 |
| Operating expenses excl. SRF |
(724) |
(597) |
(467) |
(356) |
(813) |
(256) |
(3,213) |
| SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
746 |
245 |
237 |
335 |
397 |
(319) |
1,641 |
| Cost of risk |
(22) |
(63) |
(84) |
(99) |
26 |
(5) |
(246) |
| Cost of legal risk |
- |
- |
- |
- |
- |
(75) |
(75) |
| Equity-accounted entities |
10 |
- |
- |
(2) |
(1) |
1 |
7 |
| Net income on other assets |
(1) |
47 |
14 |
(0) |
(0) |
(3) |
56 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
733 |
230 |
167 |
233 |
422 |
(401) |
1,383 |
| Tax |
(176) |
(87) |
(39) |
(40) |
(79) |
199 |
(222) |
| Net income from discontinued or
held-for-sale operations |
(0) |
- |
- |
- |
- |
- |
(0) |
|
Net income |
558 |
142 |
127 |
194 |
343 |
(202) |
1,161 |
| Non controlling interests |
(60) |
(6) |
(32) |
(40) |
(6) |
(10) |
(154) |
|
Net income Group Share |
498 |
136 |
96 |
154 |
337 |
(213) |
1,008 |
Crédit Agricole S.A.: Contribution by business line 2019
& 2018
|
2019 (stated) |
| €m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
| Revenues |
6,078 |
3,457 |
2,796 |
2,716 |
5,603 |
(497) |
20,153 |
| Operating expenses excl. SRF |
(2,896) |
(2,340) |
(1,731) |
(1,343) |
(3,321) |
(789) |
(12,421) |
| SRF |
(7) |
(32) |
(22) |
(18) |
(177) |
(83) |
(340) |
|
Gross operating income |
3,174 |
1,086 |
1,042 |
1,354 |
2,105 |
(1,369) |
7,392 |
| Cost of risk |
(19) |
(217) |
(335) |
(497) |
(160) |
(28) |
(1,256) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
| Equity-accounted entities |
46 |
- |
- |
295 |
4 |
6 |
352 |
| Net income on other assets |
32 |
2 |
2 |
0 |
6 |
12 |
54 |
| Change in value of goodwill |
- |
- |
- |
- |
22 |
(611) |
(589) |
|
Income before tax |
3,233 |
870 |
710 |
1,152 |
1,978 |
(1,991) |
5,952 |
| Tax |
(881) |
(274) |
(199) |
(233) |
(407) |
1,539 |
(456) |
| Net income from discontinued or
held-for-sale operations |
8 |
- |
(46) |
- |
- |
(0) |
(38) |
|
Net income |
2,360 |
596 |
465 |
919 |
1,570 |
(452) |
5,458 |
| Non controlling interests |
(326) |
(27) |
(132) |
(104) |
(32) |
7 |
(614) |
|
Net income Group Share |
2,034 |
570 |
333 |
815 |
1,538 |
(445) |
4,844 |
|
2018 (stated) |
| €m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
| Revenues |
5,778 |
3,433 |
2,732 |
2,769 |
5,368 |
(344) |
19,736 |
| Operating expenses excl. SRF |
(2,833) |
(2,363) |
(1,716) |
(1,362) |
(3,169) |
(842) |
(12,286) |
| SRF |
(3) |
(28) |
(22) |
(18) |
(170) |
(62) |
(302) |
|
Gross operating income |
2,941 |
1,043 |
994 |
1,389 |
2,030 |
(1,249) |
7,147 |
| Cost of risk |
(17) |
(220) |
(358) |
(467) |
64 |
(5) |
(1,002) |
| Cost of legal risk |
- |
- |
- |
- |
- |
(80) |
(80) |
| Equity-accounted entities |
47 |
- |
- |
187 |
0 |
21 |
256 |
| Net income on other assets |
(3) |
50 |
14 |
1 |
14 |
13 |
89 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
86 |
86 |
|
Income before tax |
2,969 |
873 |
650 |
1,110 |
2,108 |
(1,213) |
6,496 |
| Tax |
(774) |
(288) |
(185) |
(244) |
(550) |
576 |
(1,466) |
| Net income from discontinued or
held-for-sale operations |
(1) |
(1) |
- |
(0) |
- |
- |
(3) |
|
Net income |
2,193 |
584 |
465 |
866 |
1,557 |
(638) |
5,027 |
| Non controlling interests |
(285) |
(26) |
(124) |
(128) |
(30) |
(35) |
(627) |
|
Net income Group Share |
1,908 |
558 |
341 |
738 |
1,528 |
(672) |
4,400 |
Appendix 4 – Crédit Agricole Group:
Stated and underlying detailed income
statement
Crédit Agricole Group - Stated and underlying results,
Q4-19 and Q4-18
| €m |
Q4-19 stated |
Specific items |
Q4-19 underlying |
Q4-18 stated |
Specific items |
Q4-18 underlying |
Q4/Q4 stated |
Q4/Q4 underlying |
| |
|
|
|
|
|
|
|
|
| Revenues |
8,399 |
(202) |
8,602 |
8,110 |
46 |
8,064 |
+3.6% |
+6.7% |
| Operating expenses excl.SRF |
(5,582) |
(15) |
(5,566) |
(5,478) |
(38) |
(5,440) |
+1.9% |
+2.3% |
| SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
|
Gross operating income |
2,818 |
(218) |
3,035 |
2,632 |
8 |
2,624 |
+7.1% |
+15.7% |
| Cost of risk |
(494) |
- |
(494) |
(499) |
- |
(499) |
(1.0%) |
(1.0%) |
| Cost of legal risk |
- |
- |
- |
(75) |
- |
(75) |
(100.0%) |
(100.0%) |
| Equity-accounted entities |
83 |
- |
83 |
10 |
(67) |
77 |
x
8 |
+7.5% |
| Net income on other assets |
15 |
(6) |
21 |
48 |
- |
48 |
(69.2%) |
(56.1%) |
| Change in value of goodwill |
(642) |
(642) |
- |
- |
- |
- |
n.m. |
n.m. |
|
Income before tax |
1,780 |
(866) |
2,646 |
2,116 |
(59) |
2,175 |
(15.9%) |
+21.6% |
| Tax |
587 |
1,112 |
(525) |
(416) |
(3) |
(412) |
n.m. |
+27.4% |
| Net income from discont'd or
held-for-sale ope. |
(46) |
(46) |
(0) |
(0) |
- |
(0) |
x
1768.1 |
x
8.1 |
|
Net income |
2,320 |
200 |
2,120 |
1,700 |
(63) |
1,763 |
+36.5% |
+20.3% |
| Non controlling interests |
(134) |
- |
(134) |
(130) |
8 |
(137) |
+3.7% |
(2.1%) |
|
Net income Group Share |
2,186 |
200 |
1,986 |
1,571 |
(55) |
1,626 |
+39.2% |
+22.1% |
|
Cost/Income ratio excl.SRF (%) |
66.5% |
|
64.7% |
67.5% |
|
67.5% |
-1.1 pp |
-2.7 pp |
|
|
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
2,186 |
200 |
1,986 |
1,571 |
(55) |
1,626 |
+39.2% |
+22.1% |
Crédit Agricole Group - Stated and underlying results,
2019 and 2018
| €m |
2019 stated |
Specific items |
2019 underlying |
2018 stated |
Specific items |
2018 underlying |
2019/2018 stated |
2019/2018 underlying |
| |
|
|
|
|
|
|
|
|
| Revenues |
33,297 |
(493) |
33,790 |
32,839 |
26 |
32,813 |
+1.4% |
+3.0% |
| Operating expenses excl.SRF |
(21,386) |
(15) |
(21,371) |
(21,064) |
(59) |
(21,005) |
+1.5% |
+1.7% |
| SRF |
(426) |
- |
(426) |
(389) |
- |
(389) |
+9.4% |
+9.4% |
|
Gross operating income |
11,485 |
(508) |
11,993 |
11,385 |
(32) |
11,418 |
+0.9% |
+5.0% |
| Cost of risk |
(1,757) |
- |
(1,757) |
(1,640) |
- |
(1,640) |
+7.1% |
+7.1% |
| Cost of legal risk |
- |
- |
- |
(80) |
(5) |
(75) |
(100.0%) |
(100.0%) |
| Equity-accounted entities |
356 |
- |
356 |
266 |
(67) |
333 |
+33.9% |
+7.0% |
| Net income on other assets |
36 |
(6) |
42 |
87 |
- |
87 |
(59.0%) |
(51.8%) |
| Change in value of goodwill |
(642) |
(642) |
- |
86 |
86 |
- |
n.m. |
n.m. |
|
Income before tax |
9,478 |
(1,156) |
10,634 |
10,105 |
(19) |
10,123 |
(6.2%) |
+5.0% |
| Tax |
(1,737) |
1,208 |
(2,945) |
(2,733) |
10 |
(2,743) |
(36.5%) |
+7.4% |
| Net income from discont'd or held-for-sale
ope. |
(38) |
(46) |
8 |
(3) |
- |
(3) |
x
12.5 |
n.m. |
|
Net income |
7,704 |
6 |
7,697 |
7,369 |
(8) |
7,377 |
+4.5% |
+4.3% |
| Non controlling interests |
(506) |
- |
(506) |
(525) |
3 |
(527) |
(3.5%) |
(4.0%) |
|
Net income Group Share |
7,198 |
6 |
7,191 |
6,844 |
(5) |
6,849 |
+5.2% |
+5.0% |
|
Cost/Income ratio excl.SRF (%) |
64.2% |
|
63.2% |
64.1% |
|
64.0% |
+0.1 pp |
-0.8 pp |
| |
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
7,604 |
6 |
7,597 |
7,221 |
(5) |
7,226 |
+5.3% |
+5.1% |
Appendix 5 – Crédit Agricole Group:
Results by business line
Crédit Agricole Group: Contribution by business line -
Q4-2019 & Q4-2018
| |
Q4-19 (stated) |
| €m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
|
| Revenues |
3,276 |
851 |
740 |
1,621 |
672 |
1,401 |
(163) |
8,399 |
| Operating expenses excl. SRF |
(2,276) |
(598) |
(478) |
(746) |
(331) |
(902) |
(251) |
(5,582) |
| SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,000 |
254 |
262 |
875 |
341 |
499 |
(414) |
2,818 |
| Cost of risk |
(155) |
(64) |
(77) |
(5) |
(127) |
(55) |
(10) |
(494) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
| Equity-accounted entities |
2 |
- |
- |
14 |
65 |
3 |
- |
83 |
| Net income on other assets |
1 |
1 |
3 |
11 |
(0) |
7 |
(8) |
15 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
22 |
(664) |
(642) |
|
Income before tax |
848 |
191 |
188 |
895 |
278 |
476 |
(1,096) |
1,780 |
| Tax |
(257) |
(53) |
(49) |
(225) |
(40) |
(67) |
1,277 |
587 |
| Net income from discont'd or
held-for-sale ope. |
- |
- |
(46) |
- |
- |
- |
(0) |
(46) |
|
Net income |
590 |
138 |
93 |
670 |
238 |
409 |
181 |
2,320 |
| Non controlling interests |
(0) |
(0) |
(25) |
(85) |
(25) |
(1) |
2 |
(134) |
|
Net income Group Share |
590 |
138 |
69 |
585 |
213 |
408 |
184 |
2,186 |
| |
Q4-18 (stated) |
|
| €m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
|
| Revenues |
3,235 |
841 |
1,469 |
730 |
690 |
1,210 |
(66) |
8,110 |
| Operating expenses excl. SRF |
(2,236) |
(597) |
(724) |
(488) |
(356) |
(813) |
(266) |
(5,478) |
| SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,000 |
244 |
745 |
243 |
335 |
397 |
(331) |
2,632 |
| Cost of risk |
(250) |
(63) |
(22) |
(84) |
(99) |
26 |
(8) |
(499) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
(75) |
(75) |
| Equity-accounted entities |
4 |
- |
10 |
- |
(2) |
(1) |
- |
10 |
| Net income on other assets |
(9) |
47 |
(1) |
14 |
(0) |
(0) |
(3) |
48 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
745 |
229 |
732 |
173 |
233 |
422 |
(418) |
2,116 |
| Tax |
(204) |
(87) |
(175) |
(41) |
(40) |
(79) |
210 |
(416) |
| Net income from discont'd or
held-for-sale ope. |
- |
- |
(0) |
- |
- |
- |
- |
(0) |
|
Net income |
541 |
142 |
557 |
132 |
194 |
343 |
(208) |
1,700 |
| Non controlling interests |
0 |
0 |
(57) |
(26) |
(40) |
1 |
(8) |
(130) |
|
Net income Group Share |
541 |
142 |
500 |
106 |
154 |
344 |
(216) |
1,571 |
Crédit Agricole Group. : Contribution by business line -
stated - 2019 & 2018
| |
2019 (stated) |
| €m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
|
| Revenues |
13,117 |
3,457 |
2,898 |
6,061 |
2,716 |
5,601 |
(553) |
33,297 |
| Operating expenses excl. SRF |
(8,836) |
(2,340) |
(1,813) |
(2,897) |
(1,343) |
(3,321) |
(837) |
(21,386) |
| SRF |
(86) |
(32) |
(22) |
(7) |
(18) |
(177) |
(83) |
(426) |
|
Gross operating income |
4,196 |
1,085 |
1,063 |
3,157 |
1,354 |
2,103 |
(1,473) |
11,485 |
| Cost of risk |
(498) |
(217) |
(337) |
(19) |
(497) |
(159) |
(29) |
(1,757) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
| Equity-accounted entities |
11 |
- |
- |
46 |
295 |
4 |
- |
356 |
| Net income on other assets |
(6) |
2 |
2 |
32 |
0 |
6 |
(1) |
36 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
22 |
(664) |
(642) |
|
Income before tax |
3,703 |
870 |
728 |
3,215 |
1,152 |
1,976 |
(2,166) |
9,478 |
| Tax |
(1,307) |
(274) |
(201) |
(879) |
(233) |
(407) |
1,564 |
(1,737) |
| Net income from discontinued or
held-for-sale operations |
- |
- |
(46) |
8 |
- |
- |
(0) |
(38) |
|
Net income |
2,396 |
596 |
481 |
2,345 |
919 |
1,569 |
(602) |
7,704 |
| Non controlling interests |
(0) |
(0) |
(105) |
(309) |
(104) |
(0) |
14 |
(506) |
|
Net income Group Share |
2,396 |
596 |
375 |
2,035 |
815 |
1,569 |
(588) |
7,198 |
| |
2018 (stated) |
| €m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
| |
|
|
|
|
|
|
|
|
| Revenues |
13,040 |
3,433 |
5,770 |
2,835 |
2,769 |
5,370 |
(377) |
32,839 |
| Operating expenses excl. SRF |
(8,657) |
(2,363) |
(2,833) |
(1,790) |
(1,362) |
(3,169) |
(890) |
(21,064) |
| SRF |
(87) |
(28) |
(3) |
(22) |
(18) |
(170) |
(62) |
(389) |
|
Gross operating income |
4,296 |
1,042 |
2,934 |
1,023 |
1,389 |
2,031 |
(1,329) |
11,385 |
| Cost of risk |
(634) |
(220) |
(17) |
(359) |
(467) |
64 |
(8) |
(1,640) |
| Cost of legal risk |
- |
- |
- |
- |
- |
- |
(80) |
(80) |
| Equity-accounted entities |
12 |
- |
47 |
- |
187 |
0 |
19 |
266 |
| Net income on other assets |
(1) |
50 |
(3) |
14 |
1 |
14 |
13 |
87 |
| Change in value of goodwill |
- |
- |
- |
- |
- |
- |
86 |
86 |
|
Income before tax |
3,673 |
872 |
2,961 |
678 |
1,110 |
2,109 |
(1,299) |
10,105 |
| Tax |
(1,280) |
(288) |
(773) |
(191) |
(244) |
(551) |
594 |
(2,733) |
| Net income from discontinued or
held-for-sale operations |
- |
(1) |
(1) |
- |
(0) |
- |
- |
(3) |
|
Net income |
2,393 |
583 |
2,186 |
487 |
866 |
1,559 |
(705) |
7,369 |
| Non controlling interests |
(0) |
0 |
(271) |
(101) |
(128) |
2 |
(27) |
(525) |
|
Net income Group Share |
2,393 |
583 |
1,916 |
386 |
738 |
1,560 |
(732) |
6,844 |
Appendix 6 – Method used to calculate earnings
per share, net assets per share and ROTE
Crédit Agricole S.A. – data per
share
|
(€m) |
|
Q4-19 |
Q4-18 |
|
2019 |
2018 |
|
Q4/Q4 |
19/18 |
| Net income
Group share - stated |
|
1,661 |
1,008 |
|
4,844 |
4,400 |
|
+64.9% |
+10.1% |
| - Interests on AT1, including issuance
costs, before tax |
|
(105) |
(127) |
|
(587) |
(443) |
|
-17.3% |
+32.5% |
|
NIGS attributable to ordinary shares - stated |
[A] |
1,556 |
881 |
|
4,257 |
3,957 |
|
+76.7% |
+7.6% |
| Average
number shares in issue, excluding treasury shares (m) |
[B] |
2,883.5 |
2,863.0 |
|
2,873.4 |
2,853.7 |
|
+0.7% |
+0.7% |
|
Net earnings per share - stated |
[A]/[B] |
0.54 € |
0.31 € |
|
1.48 € |
1.39 € |
|
+75.5% |
+6.9% |
|
Underlying net income Group share (NIGS) |
|
1,318 |
1,067 |
|
4,582 |
4,405 |
|
+23.5% |
+4.0% |
|
Underlying NIGS attributable to ordinary
shares |
[C] |
1,213 |
940 |
|
3,995 |
3,962 |
|
+29.0% |
+0.8% |
|
Net earnings per share - underlying |
[C]/[B] |
0.42 € |
0.33 € |
|
1.39 € |
1.39 € |
|
+28.1% |
+0.1% |
|
(€m) |
|
31/12/2019 |
31/12/2018 |
|
Shareholder's equity Group share |
|
62,921 |
58,811 |
| - AT1 issuances |
|
(5,134) |
(5,011) |
| - Unrealised gains and losses on OCI -
Group share |
|
(2,993) |
(1,696) |
| -
Payout assumption on annual results* |
|
(2,019) |
(1,975) |
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
52,774 |
50,129 |
| -
Goodwill & intangibles** - Group share |
|
(18,011) |
(17,843) |
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
34,764 |
32,286 |
| Total
shares in issue, excluding treasury shares (period end, m) |
[F] |
2,884.3 |
2,862.1 |
|
NBV per share , after deduction of dividend to pay
(€) |
[D]/[F] |
18.3 € |
17.5 € |
|
+ Dividend to pay (€) |
[H] |
0.7 € |
0.69 € |
|
NBV per share , before deduction of dividend to pay
(€) |
|
19.0 € |
18.2 € |
|
TNBV per share, after deduction of dividend to pay
(€) |
[G]=[E]/[F] |
12.1 € |
11.3 € |
|
TNBV per sh., before deduct. of divid. to pay
(€) |
[G]+[H] |
12.8 € |
12.0 € |
|
(€m) |
|
|
2019 |
2018 |
|
Net income Group share attributable to ordinary shares |
[H] |
|
4,257 |
3,957 |
|
Tangible NBV (TNBV), not revaluated attrib. to ord. sh. -
avg*** |
[J] |
|
33,525 |
31,120 |
|
Stated ROTE (%) |
[H]/[J] |
|
12.7% |
12.7% |
|
Underlying Net income attrib. to ord. shares (annualised) |
[I] |
|
3,995 |
3,962 |
|
Underlying ROTE (%) |
[I]/[J] |
|
11.9% |
12.7% |
| *** including
assumption of dividend for the current exercise |
|
|
|
|
Disclaimer
Financial information on Crédit Agricole
S.A. and Crédit Agricole Group for the fourth quarter and full year
2019 comprises this presentation and the attached press release and
quarterly financial report which are available on the website at
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 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 full year period
ending 31 December 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. The Statutory
Auditor’s audit work on the financial consolidated statements is
under way.
Note: The scopes of consolidation of
Crédit Agricole S.A. and Crédit Agricole Group have not
changed materially since the Crédit Agricole S.A. 2018
Registration Document and its 2018 A.01 update (including all
regulatory information about Crédit Agricole Group) were filed with
the AMF (French Financial Markets Authority).
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.
Since 30 September 2019, Kas Bank has been
included in the scope of consolidation of Crédit Agricole
Group as a subsidiary of CACEIS. SoYou has also been included in
the scope of consolidation as a joint-venture between
Crédit Agricole Consumer Finance and Bankia. Historical
data have not been restated on a proforma basis.
Since 23 December 2019, Caceis and Santander
Securities Services (S3) have been bringing their activities
together. As of this date, Crédit Agricole S.A. and Santander hold
69.5% and 30.5% of the share capital in CACEIS, respectively.
Financial Agenda
6 May
2020
Publication of first quarter 2020 results13 May
2020
Shareholders’ meeting in Paris6 August
2020
Publication of second quarter and first half 2020 results4 November
2020
Publication of third quarter and first nine months 2020
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.frBertrand
Schaefer
+ 33 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) |
credit-agricole-sa@relations-actionnaires.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 |
| 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 |
| |
|
|
|
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 In this press release, the term “underlying” refers to
intermediary balances adjusted for the specific items described on
p.30 onwards
2 Net income Group share
3 Underlying, excluding specific items, see p. 20 onwards for
more details on specific items and p. 30 for the calculation of the
ROTE
4 Average over last four rolling quarters, annualised
5 Contribution to Single Resolution Funds (SRF)
6 Based on the 9.7% SREP requirement (including countercyclical
buffer)
7 Contribution to Single Resolution Funds (SRF)
8 Equipment rate: percentage of individual banking customers
holding at least one insurance product (Pacifica estimates). Scope:
auto, home, health, life accidents and legal protection
insurance.
9 Active customers
10 Thomson Reuters on the EMEA zone
11 Source: Refinitiv
12 Excluding the Corporate Centre.
13 Average loan loss reserves over the last four rolling
quarters, annualised
14 See p. 20 for more details on specific items related to
Crédit Agricole S.A.
15 See details on the calculation of the business lines’ ROTE
(return on tangible equity) and RONE (return on normalised equity)
on p.30.
16 Intra-quarter leverage refers to the average of the end of
month exposures for the first two months of said quarter.
17 The ratio’s numerator and denominator stand at
€189.3 billion and €143.8 billion, respectively, for
Crédit Agricole S.A.
18 Under the SREP requirement at 9.7% (including countercyclical
buffer); €32 billion higher than the threshold for triggering
distribution restrictions.
19 LCL/CA Italia: includes professionals – Regional Banks:
includes professionals, farmers, small businesses and
associations
20 Underlying, excluding specific items. See p. 20 and onwards
for more details on specific items.
21 Average loan loss reserves over the last four rolling
quarters, annualised
22 Relative to consolidated outstandings, calculated on an
average annualised basis over four rolling quarters.
23 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 0.20% countercyclical buffer at 31
December 2019); and 6% of leverage risk exposure.
24 The ratio’s numerator and denominator stand at
€223.2 billion and €173.3 billion, respectively, for the
Crédit Agricole Group.
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