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Credit Agricole SA — Crédit Agricole Covered Bonds — Debt Investor Presentation (May 2009)

43 slides from Credit Agricole SA's debt investor presentation, May 2009

  1. Slide 1: Crédit Agricole Covered Bonds Investor Presentation

    Crédit Agricole Group Crédit Agricole Covered Bonds Investor Presentation May 2009 Page 1 Investor Presentation

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Crédit Agricole Covered Bonds (“CACB”) and Crédit Agricole S.A. solely for use in the roadshow presentation held in connection with the proposed covered bond offering of CACB (the “Offer”). This document is confidential and is not to be reproduced by any

  3. Slide 3: Table of Contents

    Table of Contents 1. Crédit Agricole Group  Crédit Agricole Group Overview • Highlights • Group‟s structure • A diversified NBI • Cost of risk • Strong AA ratings • Capital structure  Crédit Agricole Group Funding Strategy 2. Crédit Agricole Covered Bonds  French Home Loan Business and Crédit Agr

  4. Slide 4: Section 1: Crédit Agricole Group

    Section 1: Crédit Agricole Group Page 4 Investor Presentation

  5. Slide 5: Crédit Agricole Group Overview

    Crédit Agricole Group Overview Page 5 Investor Presentation

  6. Slide 6: Highlights

    Highlights Market shares at end Sept-08, outstanding at end 2008  #1 in Retail Banking in France  26mn customers, almost half of the French population and 9,145 branches under 2 brands: Crédit Agricole and LCL  29% market share in deposits from households with € 275bn outstanding (source: Banque

  7. Slide 7: Crédit Agricole: a sound mutual retail-oriented Group

    Crédit Agricole: a sound mutual retail-oriented Group 6.2 Mio co-operative shareholders Public (including employees) French retail banking (LCL) 2,549 local credit co-operatives 45.2% International retail banking: Cariparma (It.), Emporiki (Gr.), Crédit du Maroc (Ma.), … 54 % 25% Asset management (C

  8. Slide 8: 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

  9. Slide 9: A diversified NBI and high operating efficiency driven by retail banking

    A diversified NBI and high operating efficiency driven by retail banking and ancillary businesses  A substantial Net Banking Income (NBI) with a high degree of recurrence thanks to 2008 NBI per Business Line the contribution of retail banking and related businesses Total €28.5bn Others  Retail Ban

  10. Slide 10: In a context of crisis, the Group net income remains a strong positive

    In a context of crisis, the Group net income remains a strong positive  In 2008, the Crédit Agricole Group’s net income (Group share) stood at € 2.5bn despite lower market value of financial assets, impairment charges reflecting the impact of the ongoing Crédit Agricole Group 2008 and Q1-09 Income

  11. Slide 11: Risk well reserved through specific and collective loan-loss reserves

    Risk well reserved through specific and collective loan-loss reserves  Crédit Agricole S.A. Group € mn Mar-08 Dec-08 Mar-09 Gross customer and interbank loans outstanding 398,175 424,409 420,588 Bad and doubtful loans 10,246 13,093 13,817 Loans loss reserves (1) 8,293 9,121 9,888 Doubtful loan to g

  12. Slide 12: LT Rating of Crédit Agricole clearly above average of European Banks

    LT Rating of Crédit Agricole clearly above average of European Banks: the example of Standard and Poor’s Top 50 Western European Banks : Long term Rating Distribution Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008 May. 17, 2009 20 18 16 14 12 10 8 6 4 2 0 AAA AA+ AA AA- A+ A A- BBB+ BBB Crédit Agricole:

  13. Slide 13: Sound capital position after the financial crisis

    Sound capital position after the financial crisis T1 Capital structure (as at end of Q1-09)  Extremely sound Group capital structure  A high level of net Tier 1 capital: € 50.6bn at end of March-09  A low leveraged Tier 1 capital structure Lower T1  Strong Tier 1 (10%) and Core Tier 1* (8.3%) un

  14. Slide 14: Crédit Agricole Group Funding Strategy

    Crédit Agricole Group Funding Strategy Page 14 Investor Presentation

  15. Slide 15: Very strong liquidity position

    Very strong liquidity position  The CA Group is mostly funded by customer deposits Savings to loans ratios of CA Group French retail banking  At 2008 year-end, 75% of the loans outstanding is funded by core customer deposits, 2.00 one of the highest core deposits to loans ratio in Europe 1.80  Th

  16. Slide 16: Section 2: Credit Agricole Covered Bonds

    Section 2: Credit Agricole Covered Bonds Page 16 Investor Presentation

  17. Slide 17: The French Home Loan Business and Crédit Agricole's Home Loan Business

    The French Home Loan Business and Crédit Agricole’s Home Loan Business Page 17 Investor Presentation

  18. Slide 18: A sound French housing market

    A sound French housing market Residential property prices 250 Index base 100=2000Q1  The French market is undergoing a slowdown:  Prices have decreased by 9.8% between March-08 and March-09, less than most 200 European markets 150  Sales volume has decreased in 2008 by 38% for new homes and 16.8%

  19. Slide 19: Crédit Agricole Group: the leader in French Home Finance

    Crédit Agricole Group: the leader in French Home Finance An unrivaled market share in Home Finance  Crédit Agricole Group is the unchallenged leader in French Home Finance CA+LCL 28% Crédit Of note: mutuel 13%  #1 with a 28% market share  € 227bn home loans outstanding at 2008 year-end Caisses d'

  20. Slide 20: Well-established selection and risk management processes

    Well-established selection and risk management processes  Origination process relies on the borrower’s repayment capacity, which is assessed through a comprehensive risk analysis  Borrower‟s own risk is analysed through revenue and credit history check (3 pay slips, most recent tax statement, 3 mo

  21. Slide 21: Very low risk profile

    Very low risk profile  The rate of doubtful loans* remains very low, in line with  Crédit Agricole Group traditionally has a cautious the French market provisioning policy Doubtful loans / Total home loans Loan loss reserves / Doubtful loans 60% 1.6% 50% 1.4% 1.2% 40% 1.0% 30% 0.8% 0.6% 20% 0.4% 0

  22. Slide 22: A diversified guarantees policy, adapted to clients' risks and needs

    A diversified guarantees policy, adapted to clients’ risks and needs  Mortgage as base case  French State guarantee for eligible borrowers in addition to a mortgage  PAS loans (see next slide)  Guaranteed loans: growing proportion, in line with the French market  Mainly used for well known cust

  23. Slide 23: Focus on guarantee policy: PAS loans

    Focus on guarantee policy: PAS loans Crédit Agricole 2007 market share  PAS loans figures for Crédit Agricole Group with regards to PAS loans  With a 25.7% market share, Crédit Agricole Group is a market leader in the distribution of „Accession Sociale‟ loans (PAS loans)  The Group's (Crédit Agri

  24. Slide 24: Focus on guarantee policy: Crédit Logement Home Loan Guarantee

    Focus on guarantee policy: Crédit Logement Home Loan Guarantee Crédit Logement Capital Breakdown  Crédit Logement provides home loan guarantees to private individuals  An outstanding of € 155bn of guarantees granted to individuals as at 31/12/08  Crédit Logement is strongly backed by top quality

  25. Slide 25: Focus on guarantee policy: CAMCA Home Loan Guarantee

    Focus on guarantee policy: CAMCA Home Loan Guarantee CAMCA guaranteed home loans outstanding  CAMCA Assurance provides home loan guarantees to private 60€ bn 50 individuals, sold in connection with home loans granted by the Group 50 38  € 50bn outstanding 40 30 25  925,000 insured loans 20 13 3 6

  26. Slide 26: The Covered Bond Programme and the Cover Pool

    The Covered Bond Programme and the Cover Pool Page 26 Investor Presentation

  27. Slide 27: Crédit Agricole Covered Bonds Highlights

    Highlights  Crédit Agricole Covered Bonds (CACB) is 99.9% owned by Crédit Agricole S.A. and duly licensed as a French credit Crédit Agricole Covered Bonds institution  Highest ratings for Covered Bonds issued by CACB: AAA (S&P) / Aaa (Moody’s) / AAA (Fitch)  High quality issuer and a robust struc

  28. Slide 28: Issuer legal framework

    Issuer legal framework  Crédit Agricole Covered Bonds (CACB), the Issuer  A French credit institution duly licensed by the CECEI (Comité des Etablissements de Crédit et des Entreprises d‟Investissement)  Under permanent supervision by the Commission Bancaire  Prior approval from Banque de France

  29. Slide 29: Structure Overview (1/2)

    Structure Overview (1/2) Investors Issuer Security Covered Collateral Providers: Bonds Proceeds Issuer Security Agent  Proceeds from the issuance of covered bonds will be used by the No mismatch Issuer to grant Borrower Facilities between Covered to Crédit Agricole S.A. Bonds and CASA Regional Borr

  30. Slide 30: Structure Overview (2/2)

    Structure Overview (2/2)  No currency or interest rate risk  Terms and conditions on Borrower Facilities exactly mirror terms and conditions on Covered bonds: no hedging is needed under normal circumstances  If one of the ratings of the Borrower falls below A1 (S&P), F1+ (Fitch) or P1 (Moody‟s),

  31. Slide 31: Summary

    Summary  Main terms of the programme  Main terms of the issues Issuer Crédit Agricole Covered Bonds Inaugural Issue Rating AAA (S&P) / Aaa (Moody‟s) / AAA (Fitch) Programme size € 35bn 4.5% 7-Year Maturity Any EUR 1,250,000,000 Currency Any January 2009 Minimum Over-collateralisation 8.1% Arranger

  32. Slide 32: General information on the pool as at end of March-09

    General information on the pool as at end of March-09 Pool Notional € 6,231,775,433 Number of loans 112,489 Average loan balance € 55,399 WA seasoning 50 months WA remaining term 179 months WA LTV 66 % Indexed WA LTV 52 % France only, regional distribution Geographical distribution on the map 100% h

  33. Slide 33: Cover pool: low default risk

    Cover pool: low default risk The Cover pool reflects Crédit Agricole’s leading role in French Home Finance  The size of the programme (€ 35bn) represents the lowest Geographical diversification of the cover pool proportion of the loans outstanding (€ 227bn) among French issuers , i.e. 15%  100% of

  34. Slide 34: Cover pool: low default risk

    Cover pool: low default risk Rate type distribution  The borrower’s monthly costs are predictable  The proportion of fixed rates to maturity loans is large: 84% (European average : 42%)  All floating rates are capped Source: Crédit Agricole  All loans are secured by  A mortgage (54%) or a mortg

  35. Slide 35: Section 3: Appendices

    Section 3: Appendices Page 35 Investor Presentation

  36. Slide 36: Crédit Agricole Group Appendices

    Crédit Agricole Group Appendices Page 36 Investor Presentation

  37. Slide 37: Crédit Agricole Group: Key figures

    Crédit Agricole Group: Key figures € bn 2007 2008* Q1-09 Δ Q1-09/Q1-08 Net banking income 29.6 28.5 7.2 -0.8 % Gross operating income 9.3 8.3 2.4 +11.9 % Net income, Group share 6.0 2.5 0.4 -67.5 % Total assets 1,540.9 1,784.0 na na Equity, Group share 64.8 63.7 na na Preferred shares 2.7 2.8 na na

  38. Slide 38: Crédit Agricole S.A. 2008 and Q1-09 consolidated results

    Crédit Agricole S.A. 2008 and Q1-09 consolidated results Net income Q1-09 – Group share: € 202 million  Δ € mn 2008 Q1-09 2008/2007 Q1-09/Q1-08  In Q1-09, NBI growth of 25.8%, excluding Net banking income 15,956 -4.8 % 4,061 -1.2 % gains on disposal in Q1-08  reflecting the reduction in the effec

  39. Slide 39: Crédit Agricole Group: Outstanding soundness after the financial crisis

    Crédit Agricole Group: Outstanding soundness after the financial crisis Solvency ratios of Crédit Agricole S.A. and Credit Agricole Group as at end December-08 and March-09 Crédit Agricole S.A. Crédit Agricole S.A. Crédit Agricole Group Crédit Agricole Group €bn 31/12/2008 31/03/2009 31/12/2008 31/0

  40. Slide 40: Crédit Agricole Group: Strong customer liquidity

    Crédit Agricole Group: Strong customer liquidity Coming from the retail network  Crédit Agricole Group Balance Sheet € bn Assets 31/12/08 € bn Liabilities 31/12/08 Cash, central banks, French postal system 52.5 Central banks, French postal system 1.3 Financial assets at fair value through profit or

  41. Slide 41: Crédit Agricole Covered Bonds Appendix

    Crédit Agricole Covered Bonds Appendix Page 41 Investor Presentation

  42. Slide 42: Home Loan Eligibility Criteria

    Home Loan Eligibility Criteria a) Prior to the date upon which the Home Loan has been made available to the borrower thereof, all lending criteria and conditions precedent as applied by the originator of the Home Loan pursuant to its customary lending procedures were satisfied ; b) The underlying pr

  43. Slide 43: Contact List

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

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