Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — Debt Investor Presentation (June 2010)

54 slides from Credit Agricole SA's debt investor presentation, June 2010

  1. Slide 1: Credit Update - June 2010

    Credit Update - June 2010 CREDIT =——= AGRICOLE S.A.

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Crédit Agricole, S.A. and is confidential and is not to be reproduced by any person, nor be distributed to any person other than its original recipient. None of Crédit Agricole S.A. or its affiliates, advisers, dealers or representatives takes no respons

  3. Slide 3: Contents

    Contents 1 Crédit Agricole Group Highlights 2 Focus on Liquidity 3 Focus on Capital 4 Focus on Risks 5 Focus on Crédit Agricole Covered Bonds 6 Appendices 7 Contact list 3 Credit Update

  4. Slide 4: Section 1: Crédit Agricole Group Highlights

    Section 1: Crédit Agricole Group Highlights 4 Credit Update

  5. Slide 5: A diversified Mutual Banking Group dominated by Retail and related activities

    A diversified Mutual Banking Group dominated by Retail and related activities  Commanding market shares in France  Total customer deposits: 25%  Total customer loans: 21.6% (of which home finance: 27.8%)  Life-assurance: 14.6%  Mutual funds: 28.1%  Increasing market presence in Europe, particu

  6. Slide 6: A dynamic and resilient business model

    A dynamic and resilient business model  CA Group profitability is steadily improving. €mn Operating Profitability This positive trend is supported by: 10,000 8,335 The commercial dynamism and scale of the Group’s business lines 7,195 7,500  Good performance of the Regional Banks and LCL 5,000 3,30

  7. Slide 7: An overall good performance in Q1-10

    An overall good performance in Q1-10  With an increase of +122% vs. Q1-09, Net Income (Group Share) in Q1-10 is supported by:  A 15.8% increase of NBI (Q1/Q1*)  A 36.6% increase in Gross Operating Income due to strict control of Operating Expenses (Q1/Q1)  A 12% decrease in Cost of Risk compared

  8. Slide 8: Strong financial fundamentals translate into sound credit ratings

    Strong financial fundamentals translate into sound credit ratings Senior debt rating distribution of Top 50 Western European Banks rated by S&P 20  Crédit Agricole LT Senior Debt Ratings: 16  S&P: AA- Negative Outlook  Moody’s: Aa1 Negative Outlook 12  Fitch: AA- Stable Outlook 8 According to S&

  9. Slide 9: Section 2: Focus on Liquidity

    Section 2: Focus on Liquidity 9 Credit Update

  10. Slide 10: Liquidity Market Overview

    Liquidity Market Overview  The liquidity market (short term and long term) is impacted by  The sovereign debt crisis  Regulatory projects  New rules applicable to placements made by U.S. money-market funds  The sovereign crisis has spread to the banking sector  With the crisis, sovereign debt

  11. Slide 11: Liquidity Market Overview

    Liquidity Market Overview  A high level of disturbance has been witnessed since mid-April Money market  Decrease in loans duration (CD, CP, interbank loans)  Increasing 3 month liquidity price, but much less than during the 2008 crisis  Shrinking amounts of cash contributed by US money market fu

  12. Slide 12: Crédit Agricole: very strong customer liquidity

    Crédit Agricole: very strong customer liquidity  The French retail banking network is mostly funded Loans and savings outstanding of CA Group French retail banking by customer deposits 700  At the end of March 2010, French retail banks (Caisses Régionales and 500 LCL) customer deposits outstanding

  13. Slide 13: Crédit Agricole: a secure framework for liquidity management

    Crédit Agricole : a secure framework for liquidity management  CA Group applies a very strict framework in the management of liquidity risk  It is based on a comprehensive set of limits and indicators  It aims at ensuring a positive treasury over long periods of time, in case of a long lasting or

  14. Slide 14: Crédit Agricole: Highly diversified sources of ST funding

    Crédit Agricole : Highly diversified sources of ST funding  The rules and the organisation support diversification of funding  Crédit Agricole’s short term funding is very diversified, in terms of geography, currency, and type of lender  This diversification is supported by a network of 27 treasu

  15. Slide 15: Efficiency of the framework applied by CA demonstrated again

    Since April, the efficiency of the framework applied by CA has been demonstrated once again  Resilience witnessed again in the context of the % of cumulated renewal since beginning of May (per currency and global) current liquidity crisis 160%  The Group ST funding (more than 1 week initial maturi

  16. Slide 16: 2010 MLT CA funding programme well on track

    2010 MLT CA funding programme well on track  Funding programme of €25bn for 2010 (market and network resources) Medium to Long Term liquidity 66% completed at mid-June, of which €3.5bn since the end of April raised as of June 2010  A diversified access to markets (both institutional and retail) 

  17. Slide 17: Section 3: Focus on Capital

    Section 3: Focus on Capital 17 Credit Update

  18. Slide 18: Sound Crédit Agricole Group capital position after the financial crisis

    Sound Crédit Agricole Group capital position after the financial crisis Crédit Agricole Group consolidated 31/12/08 31/12/09 31/03/10  Extremely sound Group capital structure regulatory capital - €bn Tier 1 51.5 52.4 54.5  A high level of net Tier 1 capital: €54.5bn at end of March-10, Total net r

  19. Slide 19: Capital regulatory environment

    Capital regulatory environment  Most topics are still under discussion…  Full deduction from Tier One of minority participations in the banking and insurance sectors  A technical solution has been agreed with the regulator regarding CA s.a.’s equity interest in the Regional Banks  Insurance impa

  20. Slide 20: Section 4: Focus on Risks

    Section 4: Focus on Risks 20 Credit Update

  21. Slide 21: Crisis-linked risks: limited in relative terms and addressed by the Group

    Crisis-linked risks : limited in relative terms and addressed by the Group € bn March 10 Crédit Agricole Group Equity (Group Share) (1) 67.8 Net exposure to super senior CDO (with US residential mortgage underlyings) 2.8 Net exposure to monolines 0.3 Net exposure to mortgage ABS 1.4 Net exposure to

  22. Slide 22: Trend in credit risk and coverage of doubtful loans

    Trend in credit risk and coverage of doubtful loans Stabilisation of doubtful loans, high level of credit reserves  Crédit Agricole S.A. Group € mn March 09 (1) Dec 09 (1) March 10 Gross customer and interbank loans outstanding 420,588 445,913 476,394 of which: bad and doubtful loans 15,082 18,177

  23. Slide 23: Credit risk-related costs vs. risk-weighted assets

    Credit risk-related costs vs. risk-weighted assets Credit risk-related costs have stabilised since the end of 2008 Crédit Agricole Group (loans outstanding)  2009 as a whole represented a peak in terms of assets quality (in bp) 109 problems. In Q1-10, Crédit Agricole Group’s quarterly risk-related

  24. Slide 24: Credit risk-related costs vs. risk-weighted assets

    Credit risk-related costs vs. risk-weighted assets Very high cover rates in retail banking Regional Banks (loans outstanding) International retail banking (loans outstanding) (in bp) (in bp) 361 58 52 54 49 50 51 242 41 186 186 192 183 27 25 114 77 67 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09

  25. Slide 25: Emporiki: a very prudent assessment of the cost of risk

    Emporiki : a very prudent assessment of the cost of risk Staff numbers  Improvement of gross operating income expected 7,000 6,280 5,500 5,220 6,000  NBI estimates overall unchanged (repricing effect) 5,000 4,780 4,000  Better evolution of costs (faster decrease of headcount and G&A expenses) 3,0

  26. Slide 26: Corporate and Investment Banking: back to profit

    Corporate and Investment Banking : back to profit  Losses on discontinued activities reduced by 84% since Q1-08  61% decrease in Group cost of risk since 2008 (as % of the RWA), 153bp in Q4-08, 60bp in Q1-10  Total net income group share of CIB back in the black in Q1-09 (€49mn), increasing till

  27. Slide 27: Section 5: Focus on Crédit Agricole Covered Bonds

    Section 5: Focus on Crédit Agricole Covered Bonds 27 Credit Update

  28. Slide 28: CA Group, leader in a sound French housing market

    CA Group, leader in a sound French housing market CACB  The French market has undergone a slowdown but has Residential property prices (Index base 100=Q1-2000) started to recover: 250  Prices have decreased by 10% in 2008, less than most European markets, and 200 have recovered by 2.2% in 2009 150

  29. Slide 29: Very low risk profile

    Very low risk profile CACB  Origination process relies on the borrower’s repayment capacity  Borrower’s own risk is analysed through revenues and credit history check (3 pay slips, most recent tax statement, 3 most recent monthly bank statements are required, and Banque de France file is checked f

  30. Slide 30: Crédit Agricole Covered Bonds: issuer legal framework

    Crédit Agricole Covered Bonds: issuer legal framework CACB  Crédit Agricole Covered Bonds (CACB), the Issuer  A French credit institution duly licensed and under permanent supervision by the ACP (Autorité de Conrôle Prudentiel, merging of the insurance banking regulator (Autorité de Contrôle des A

  31. Slide 31: Crédit Agricole Covered Bonds: structure overview

    Crédit Agricole Covered Bonds: structure overview CACB Investors Issuer Security Covered Collateral Providers: Bonds Proceeds Issuer Security Agent  Proceeds from the issuance of covered bonds will be used by No mismatch the Issuer to grant Borrower between Covered Facilities to Crédit Agricole S.A

  32. Slide 32: General information on the pool as of June 2010

    General information on the pool as of June 2010 CACB Pool Notional € 9 741 170 498 Number of loans 224 752 Average loan balance € 43 342 WA seasoning 65 months WA remaining term 218 months WA LTV 63.15 % Indexed WA LTV 53.87 % Proportion of fixed rates 85.6%, all floating rates are capped Mortgage :

  33. Slide 33: Section 6: Appendices

    Section 6: Appendices 33 Credit Update

  34. Slide 34: 1. Group Structure

    1. Group Structure 34 Credit Update

  35. Slide 35: Crédit Agricole: a sound mutual retail-oriented Group

    Crédit Agricole: a sound mutual retail-oriented Group 6.2 mn co-operative shareholders Public (of which employees 4.5%) French retail banking (LCL) 2,544 local credit co-operatives 44.8% International retail banking: Cariparma (It.), Emporiki (Gr.), Crédit du Maroc (Ma.)… 54 % 25% Asset management (

  36. Slide 36: The Cross-Guarantee Mechanism: a source of structural strength

    The Cross-Guarantee Mechanism: a source of structural strength  Reciprocal commitments exist between the Regional Banks and Crédit Agricole S.A. Through them, resources within the Crédit Agricole Network, as defined by the law, may, in certain circumstances, meet the needs of particular members  C

  37. Slide 37: 2. Subprime and Related Risks

    2. Subprime and Related Risks 37 Credit Update

  38. Slide 38: Exposure to Monolines, CDPC and super senior CDOs

    Exposure to Monolines, CDPC and super senior CDOs  Exposure to monoline counterparty risk €bn at 31/03/09 at 31/12/09 at 31/03/10 Notional amount of monoline hedge on US residential CDOs 3.6 0.5 0.6 Notional amount of monoline hedge on other underlyings 13.2 10.5 9.2 Exposure to monolines to hedge

  39. Slide 39: Exposure to Monolines, CDPC and super senior CDOs

    Exposure to Monolines, CDPC and super senior CDOs  Unhedged super senior CDOs with US residential mortgages underlyings  Super senior CDOs measured at fair value  Discounts are calculated by applying a credit scenario on the underlying assets (mainly residential mortgage loans) of the ABSs that m

  40. Slide 40: Exposure to mortgage ABS and LBOs

    Exposure to mortgage ABS and LBOs  Exposure to mortgage ABS US United Kingdom Spain RMBS* 31/12/2009 31/03/2010 31/12/2009 31/03/2010 31/12/2009 31/03/2010 Recognised under loans and receivables 728 757 404 289 197 179 Recognised under assets measured at fair value* Gross exposure 506 485 110 90 30

  41. Slide 41: ABCP conduits sponsored by Crédit Agricole CIB

    ABCP conduits sponsored by Crédit Agricole CIB on behalf of third parties, as at 2009 year-end Sponsored securitisation conduits as at 31 March 2010 Atlantic LMA Hexagon Total Ratings on ABCP issued by the conduits A1/P1/F1 A1/P1 A1+ (S&P/Moody’s/Fitch) Country of issue USA France + USA France Cash

  42. Slide 42: 3. Crédit Agricole Results

    3. Crédit Agricole Results 42 Credit Update

  43. Slide 43: Crédit Agricole Group key results

    Crédit Agricole Group key results  Crédit Agricole Group net income - Group share amounts to €94mn, and increased by a factor of 2.2 €mn 12M-09 Q1-10  Q1/Q1  Q1/Q4 year-on-year, reflecting the following main elements: Net banking income 31,305 8,335 +15.8% +4.3% • The strong performance of the Re

  44. Slide 44: French Retail Banking – Regional Banks

    FRENCH RETAIL BANKING – REGIONAL BANKS 2009 momentum maintained Crédit Agricole S.A.  Fifth consecutive quarter of revenue and €mn Q1-10  Q1/Q1  Q1/Q4 2009  2009 /2008 earnings growth since reaching low point at end-2008 Aggregate IAS NBI 3,398 +9.5% +7.8% 13,280 +7.4%  Solid business momentum

  45. Slide 45: French Retail Banking – LCL

    FRENCH RETAIL BANKING – LCL Robust earnings growth and controlled risks Crédit Agricole S.A.  Net banking income up 3.2% YoY in Q1  Excluding home purchase savings provisions, up  2009 €mn Q1-10  Q1/Q1  Q1/Q4 2009 /2008 3.4% on Q1-09  Steady rise since the beginning of 2008  Strong growth in

  46. Slide 46: French Retail Banking – LCL

    FRENCH RETAIL BANKING – LCL Active prospecting, solid business momentum Crédit Agricole S.A.  Strong commercial results  43,200 net new personal accounts (up 27% YoY in Customer loans Q1); 3,900 net new small business accounts (up 8% €bn YoY in Q1) +7.7% 74.5 +3.4% 77.0 69.2  Success of LCL Sécur

  47. Slide 47: International Retail Banking

    INTERNATIONAL RETAIL BANKING Excluding Emporiki, net income, Group share: €88mn Note: 2009 figures for the business line restated for the transfer of  Limited decrease in NBI despite CUB to discontinued operations in Q1-10 persistently unfavourable business Q1-10  2009 climate €mn excluding  Q1/Q

  48. Slide 48: Specialised Financial Services

    SPECIALISED FINANCIAL SERVICES Momentum confirmed Crédit Agricole S.A.  Business line's transformation to serve as a foundation for growth  2009  Sofinco and Finaref merged to create CACF (Crédit €mn Q1-10  Q1/Q1  Q1/Q4 2009 /2008 Agricole Consumer Finance); CA Leasing and Eurofactor merged to

  49. Slide 49: Consumer Finance

    CONSUMER FINANCE Revenues higher, risks under control  Business resilient: Outstanding loans €bn  Overall growth in outstandings: 6.5% YoY in Q1 on the same scope of consolidation 76.7  In France, outstandings rose by 5.4%, driven by the 72.0 expanded credit range (Double Action card) and 60.9 18

  50. Slide 50: Asset Management, Insurance and Private Banking

    ASSET MANAGEMENT, INSURANCE AND PRIVATE BANKING An expanding business line with solid commercial momentum  The business line delivered a high level of €mn Q1-10  Q1/Q1*  Q1/Q4*  Q1/Q1** activity and revenues, reinforced by acquisitions in 2009 Net banking income 1,183 +54.1% +13.1% +24.1%  Crea

  51. Slide 51: Asset Management

    ASSET MANAGEMENT A good first quarter for Amundi: GOI up 46%* Assets under management**  Net banking income up 19.1%* €bn Market  High level of inflows, €6.5bn, driven by institutional Inflows +14.2 709.3 688.6 +6.5 investors in France and internationally 614.3 117.2 of which AUM  Positive market

  52. Slide 52: Corporate and Investment Banking

    CORPORATE AND INVESTEMENT BANKING CIB as a whole net income, Group share: €157mn  Positive contribution from Corporate and CIB net income - Group share restated for reevaluation of debt issues and loan hedges investment banking: €157mn €mn  First quarter of positive results after two years 514 518

  53. Slide 53: Corporate Centre

    CORPORATE CENTRE Segment net income Crédit Agricole S.A.  First quarter impacted by the disposal of 0.8% of Intesa Sanpaolo (in excess of the 5.0% historical   €mn Q1-10 2009 2008 stake), which generated the following impacts: Q1/Q1* Q1/Q4* Net banking  Negative impact of €159mn on net result on

  54. Slide 54: Contacts List

    Contacts List Olivier Nicolas +33 1 43 23 34 08 Head of the Financial Management Department [email protected] Claude Rosenfeld +33 1 57 72 16 21 Assistant to the Head of the Financial Management Department [email protected] and London Branch Supervisor Nadine

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