Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — Non-Deal Roadshow (November 2018)

51 slides from Credit Agricole SA's roadshow presentation, Nov 9, 2018

  1. Slide 1: Crédit Agricole S.A. - Roadshow Presentation

    Crédit Agricole S.A. - Roadshow Presentation November 2018

  2. Slide 2: Disclaimer

    DISCLAIMER  Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the third quarter and first nine months of 2018 comprises the presentation, the press release and the quarterly financial report which are available on the website https://www.credit- agricole.com/en/finance/fin

  3. Slide 3: Key Messages

    KEY MESSAGES Optimised structure & profitable strategy  Group structure allows CASA to benefit from CAG‘s strong and rising solvency  CASA therefore profits from an optimised capital structure and low funding costs  CASA takes advantage of the largest retail distribution base in Europe  Its busi

  4. Slide 4: Agenda

    1 OPTIMISED & SOLID FINANCIAL STRENGTH p. 4 2 ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE p. 9 3 DELIVERING ON A PROFITABLE STRATEGY p. 14 4 CONCLUSION p. 19 5 APPENDIX p. 21 4 l ROADSHOW PRESENTATION – NOVEMBER 2018

  5. Slide 5: Strong solvency, optimised capital structure

    CRÉDIT AGRICOLE GROUP OPTIMISED & SOLID FINANCIAL STRENGTH Strong solvency, optimised capital structure CRÉDIT AGRICOLE S.A.  The whole CA Group (Regional banks + Crédit Agricole SA) is G-SIB, not CASA  Pillar 2 requirements: CAG 9.5%(1, 2) including a G-SIB buffer of +1pp, CASA 8.5% 14.9%  Solid

  6. Slide 6: Fully-loaded CET1 ratio at 11.5% at end-Sept. 2018

    CRÉDIT AGRICOLE S.A. OPTIMISED & SOLID FINANCIAL STRENGTH Fully-loaded CET1 ratio at 11.5% at end-Sept. 2018, above target of 11% Change in fully-loaded CET 1 ratio (bp) +156bp +110bp +72bp -61bp Buffer: 11.7% +4bp +77bp +3bp -31bp -9bp 11.5% -84bp +50bp -48bp -2bp -43bp -34bp -32bp ≥ 11% 10.7% Net

  7. Slide 7: Profitable growth in RWA in 9M

    CRÉDIT AGRICOLE S.A. OPTIMISED & SOLID FINANCIAL STRENGTH Profitable growth in RWA in 9M Change in risk-weighted assets by business lines (€bn) +10.9bn  Good control on RWA, profitable +4.2 growth in 9M, reflecting business 296 301 +8.9 (1.3) (1.8) +0.8 307 lines’ development 296  Increase in RWA:

  8. Slide 8: Attractive dividend policy

    OPTIMISED & SOLID FINANCIAL STRENGTH Attractive dividend policy  Reminder: dividend 2017 €0.63(1)  i.e. a yield of 4.5%(1) based on 13 February 2018 share price 50% payout ratio policy  From 2017 onwards  Dividend payout of 50% of attributable net income(2)  Cash only   Intention not to lower

  9. Slide 9: Agenda

    1 OPTIMISED & SOLID FINANCIAL STRENGTH p. 4 2 ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE p. 9 3 DELIVERING ON A PROFITABLE STRATEGY p. 14 4 CONCLUSION p. 19 5 APPENDIX p. 21 9 l ROADSHOW PRESENTATION – NOVEMBER 2018

  10. Slide 10: A stable, diversified and profitable business model

    CRÉDIT AGRICOLE S.A. RESULTS A stable, diversified and profitable business model  Synergies between business lines are maximising Group ROTE  Good level of diversification in terms of business lines' contribution to underlying Group net profit, with no business line accounting for more than 30% (e

  11. Slide 11: RWA and allocated capital by business lines

    CRÉDIT AGRICOLE S.A. APPENDIX RWA and allocated capital by business lines RWA by business line at end-September 2018 (€bn and %) Allocated capital by business line at end-Sept. 2018 (€bn and %) RWA of the business lines Allocated capital at end-September 2018 to business lines, (excl. Corporate Cent

  12. Slide 12: A stable, diversified and profitable business model

    ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE A stable, diversified and profitable business model Annualised underlying 9M-18 RoNE(1) by business line and 2019 targets in %(1) After tax and AT1 coupons allocated to business lines(2) 2019 MTP target >25% 2017 underlying 9M-18 underlying annualise

  13. Slide 13: Key Messages

    CRÉDIT AGRICOLE GROUP KEY MESSAGES Solid quarterly results in all business lines CRÉDIT AGRICOLE S.A.  Underlying net profit(1) once again >€1bn for CASA, despite the seasonal effect Annualised 9M-18 ROTE at a high level  Strong growth in Q3/Q3 net profit for CASA and CAG  Strong and high-quality

  14. Slide 14: Agenda

    1 OPTIMISED & SOLID FINANCIAL STRENGTH p. 4 2 ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE p. 9 3 DELIVERING ON A PROFITABLE STRATEGY p. 14 4 CONCLUSION p. 19 5 APPENDIX p. 21 14 l ROADSHOW PRESENTATION – NOVEMBER 2018

  15. Slide 15: Major achievements since launch of MTP

    CRÉDIT AGRICOLE S.A. MAJOR ACHIEVEMENTS SINCE LAUNCH OF MTP Disposal of non-core assets  Disposal of interest in Eurazeo (6 June 2017)  Disposal of a 15.42% interest in the listed holding company for a total of €790.5m  Hedging mechanism against changes in share price for mandatory convertibles i

  16. Slide 16: Increasing the cash component in profit generation

    CRÉDIT AGRICOLE S.A. MAJOR ACHIEVEMENTS SINCE LAUNCH OF MTP Increasing the cash component in the profit generation capacity Share of fully-controlled, “cash” earnings in the net income Group share(1) Deconsolidation of Partial Disposal of the the stake in the disposal of the stake in Eurazeo Regiona

  17. Slide 17: Value-creating acquisitions and partnerships

    CRÉDIT AGRICOLE S.A. MAJOR ACHIEVEMENTS SINCE LAUNCH OF MTP Value-creating acquisitions and partnerships  Pioneer investments (closed 3 July 2017)  Acquisition by Amundi of 100% of Pioneer Investments(1), Unicredit’s AM subsidiary, for €3.5bn  Strong synergy potential – €180m before tax – thanks

  18. Slide 18: Progress on the MTP – Update of financial targets

    MTP UPDATE Progress on the MTP – Update of financial targets Crédit Agricole Group Crédit Agricole S.A. 2015 2017 2019 Targets 2015 2017 2019 Targets 31,314 +1.5%(*) > +1,5% Underlying revenues CAGR(**) 17,379(**) +3.9%(*) > +2,5%  62.9% 63.4% < 60%  Cost / income ratio 68.6% 62.8% <60% 30 17 < 35

  19. Slide 19: Agenda

    1 OPTIMISED & SOLID FINANCIAL STRENGTH p. 4 2 ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE p. 9 3 DELIVERING ON A PROFITABLE STRATEGY p. 14 4 CONCLUSION p. 19 5 APPENDIX p. 21 19 l ROADSHOW PRESENTATION – NOVEMBER 2018

  20. Slide 20: Conclusion

    CONCLUSION Optimised structure & profitable strategy  Group structure allows CASA to benefit from CAG‘s strong and rising solvency  CASA therefore profits from an optimised capital structure and low funding costs  CASA takes advantage of the largest retail distribution base in Europe  Its busine

  21. Slide 21: Agenda

    1 OPTIMISED & SOLID FINANCIAL STRENGTH p. 4 2 ATTRACTIVE BUSINESS MODEL & FINANCIAL PERFORMANCE p. 9 3 DELIVERING ON A PROFITABLE STRATEGY p. 14 4 CONCLUSION p. 19 5 APPENDIX p. 21 21 l ROADSHOW PRESENTATION – NOVEMBER 2018

  22. Slide 22: Group structure

    APPENDIX Group structure As at 31/12/2017 CRÉDIT AGRICOLE S.A. ASSET GATHERING RETAIL BANKING SPECIALISED FINANCIAL SERVICES LARGE CUSTOMERS (1) Via SAS Rue la Boétie. The Regional bank in Corsica, held at 99,9% by Crédit Agricole S.A, is a shareholder of Sacam Mutualisation. (2) see detail p.10 du

  23. Slide 23: A hybrid structure (mutual+listed)

    GROUP PRESENTATION A hybrid structure (mutual+listed), combining a strong retail franchise with European leaders 39 REGIONAL BANKS + A LISTED ENTITY Egypt Romania Morocco Serbia Poland Ukraine (…) 21m #1 7,000 #1 #1 #1 #1 Top 3 #1 #1 customers market branches digital bank banking app asset manager i

  24. Slide 24: Shareholder-friendly structure

    CRÉDIT AGRICOLE GROUP GROUP PRESENTATION Shareholder-friendly structure CRÉDIT AGRICOLE S.A.  Strong distribution franchise, in one of the most diversified and competitive banking markets  Wide range of product offering, Market features similar to other European markets (eg Italy) #1 bancassurer i

  25. Slide 25: Long-term ratings and 5-year CDS spreads

    FINANCIAL MANAGEMENT Crédit Agricole S.A.’s long-term ratings and 5-year CDS spreads  LT rating upgrade by S&P in October 2018 Moody’s S&P Global Ratings Fitch Ratings Ratings Debt instrument Ratings Debt instrument Ratings Debt instrument Aa3 AA- AA- LT senior LT Issuer Default Rating LT senior pr

  26. Slide 26: Zoom on the integration of Pioneer

    ZOOM ON THE INTEGRATION OF PIONEER Integration of Pioneer on 3 July 2017 Amundi: AuM of €1,475bn at end-Sept. 2018, No.1 in Europe(1), in the top 10 asset manager worldwide Leadership strengthened A customer mix A full range of expertise Strong first results in Europe(1) thanks rebalanced reinforced

  27. Slide 27: Zoom on the integration of 3 Italian banks

    ZOOM ON THE INTEGRATION OF 3 ITALIAN BANKS Acquisition of 3 regional banks in Italy enabling growth of the franchise and results  Integration to International Retail Banking Italy  Merger of all 3 legal entities with CA Italia already completed +1pp market share  Finalisation of the IT migration

  28. Slide 28: Crédit Agricole in Italy

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Crédit Agricole in Italy – A group of profitable and developing activities Crédit Agricole Group in Italy Group in Italy - Gross NPL (€bn) and coverage ratio  A comprehensive and profitable customer-focused universal model 69.2% +18pp  A retail bank focuse

  29. Slide 29: Progress on the MTP - Synergy initiatives

    CRÉDIT AGRICOLE GROUP MTP UPDATE Progress on the MTP - Synergy initiatives, strengthening client positioning  Reinforced collaboration between the business lines and the Group networks, in line with their strategic targets  Strengthened cooperation between CACF and the Group's retail banks: increa

  30. Slide 30: Digital: 100% human, 100% digital

    CRÉDIT AGRICOLE GROUP DIGITAL Success of new products and digital services and development of usage New services and digitalisation Rise of new applications 63,000 customers since launch,  80% of whom were not previously customers 228m 74% opened in-branch; in 13% of cases the connections per month

  31. Slide 31: Cross-functional operational efficiency programmes

    CRÉDIT AGRICOLE GROUP MTP UPDATE Progress on the MTP – Cross-functional operational efficiency programmes  Convergence of IT production within a joint entity for Crédit Agricole Group  A top-tier mutual technology hub with a Group Cloud and DevOps automation platform  Implementation of the target

  32. Slide 32: Net profit: growth Q3/Q3 and 9M/9M

    CRÉDIT AGRICOLE S.A. RESULTS Net profit: growth(1) Q3/Q3 and 9M/9M Q3/Q3 and 9M/9M change in underlying net profit(1), by business line +17.3% +132 1,133 1,101 1,066 +100 +21 966 +33 (18) (1) (32) Q3/Q3: strong growth  All business divisions(2) increasing or stable (SFS) Q3-17 Specific (1) Q3-17 As

  33. Slide 33: Revenues: up sharply Q3/Q3

    CRÉDIT AGRICOLE S.A. RESULTS Revenues: up sharply(1) Q3/Q3 Q3/Q3 and 9M/9M change in underlying revenues(1), by business line +5.9% +150 +62 +20 +68 4,834 4,802 4,575 +10 4,564 (31) (33) Contribution from all business divisions(2) Q3/Q3 and 9M/9M  AG: strong increase of +11.5%(1) Q3/Q3 (normalisati

  34. Slide 34: Costs: C/I ratio excl. SRF down 1.4 point

    CRÉDIT AGRICOLE S.A. RESULTS Costs: C/I ratio(1) excl. SRF down 1.4 point Q3/Q3 despite scope effects Q3/Q3 and 9M/9M change in underlying costs(1), by business line +3.6% 2,902 +15 +32 +27 2,979 2,998 2,875 +27 +2 +27 +19 Q3/Q3: solid cost control  Cost/income ratio excl. SRF(1) improved by 1.4pp(

  35. Slide 35: Cost of credit risk: still very low

    CRÉDIT AGRICOLE GROUP RESULTS Cost of credit risk: still very low CRÉDIT AGRICOLE S.A. Cost of risk / outstandings (in basis points over a rolling four-quarter period)  Crédit Agricole S.A.(1) 41 41 37 -5 bp 26bp  Significant Q3/Q3 decrease: -5bp 35 cost of credit risk /  Below MTP assumption of

  36. Slide 36: Cost of risk well under control in business lines

    CRÉDIT AGRICOLE S.A. RESULTS Cost of risk still well under control in the business lines Cost of credit risk / outstandings (in basis points over a rolling four-quarter period)  LCL: €50m in Q3 101  CA Italia: €70m in Q3 €218m 93 stable year-on-year 87 87 89 92 88 78 -16bp year-on-year 73  Still

  37. Slide 37: Asset Gathering

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Asset Gathering Assets under management(1) (AuM) (€bn) Contribution to Crédit Agricole S.A.’s Net profit +5.4% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying 1,868 Insurance 330 +7.1% 918 +0.1% +5.1 +48.5 +5.3 +4.8 +1.9 1,933 1,83

  38. Slide 38: Insurance

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Insurance Activity indicators Contribution to Crédit Agricole S.A. P&L Protection of assets and individuals Savings/Retirement Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M Premium income (€bn) Net inflows (€bn) €m underlying underlying underlying underlying +6.8% Q3/Q3 UL: +

  39. Slide 39: Asset management - Amundi

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Asset management - Amundi Assets under management(1) (€bn) Contribution to Crédit Agricole S.A. P&L +5.4% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying +30.2 +0.6 1,475 Revenues 605 (1.5%) 1,905 +25.2% 1,400 1,426 +18.3 Operating

  40. Slide 40: Retail banking France – LCL

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Retail banking France – LCL Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying Revenues 860 +2.3% 2,594 (0.3%) +1.9% Operating expen

  41. Slide 41: International retail banking – Italy

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS International retail banking – Italy Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding €m Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M underlying underlying underlying underlying +17.3% Revenues 453 +9.7% 1,400 +12.1% Opera

  42. Slide 42: International retail banking – excl. Italy

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS International retail banking – excl. Italy Activity indicators (€bn) Contribution to Crédit Agricole S.A. P&L Customer savings Loans outstanding Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying (1) +10.2% Revenues 209 +1.4% 628 +2.0

  43. Slide 43: Specialised financial services

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Specialised financial services CACF – Consumer finance CAL&F – Leasing Contribution to Crédit Agricole S.A. P&L Gross managed loans (€bn) Gross consolidated loans (€bn) Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M €m underlying underlying underlying underlying +6.9% +3.4% Re

  44. Slide 44: Large Customers

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Large Customers Underlying revenues of Large Customers (€m) Contribution to Crédit Agricole S.A. P&L +0.1% Q3-18 ∆ Q3/Q3 9M-18 ∆ 9M/9M 4,142 9M/9M 4,145 €m underlying underlying underlying underlying Revenues 1,318 +5.5% 4,145 +0.1% +5.5% Operating expenses

  45. Slide 45: Corporate Centre

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Corporate Centre Change in underlying(1) Net income (€m) Contribution to Crédit Agricole S.A. P&L ∆ Q3/Q3 ∆ 9M/9M Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 €m Q3-18 Q3-17 9M-18 9M-17 (m€) (m€) Revenues (162) (106) (56) (281) (326) 45 Operating ex

  46. Slide 46: RWA and allocated capital by business lines

    CRÉDIT AGRICOLE S.A. APPENDIX RWA and allocated capital by business lines RWA by business line at end-September 2018 (€bn and %) Allocated capital by business line at end-Sept. 2018 (€bn and %) RWA of the business lines Allocated capital at end-September 2018 to business lines, (excl. Corporate Cent

  47. Slide 47: Alternative Performance Measures – specific items

    CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – specific items Q3-18 and 9M-18 Q3-18 Q3-17 9M-18 9M-17 Gross Impact on Gross Impact on Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS impact* NIGS impact* NIGS Issuer spreads (CC) - - (16) (14) - - (121) (69) DVA (LC) (8)

  48. Slide 48: Reconciliation between stated and underlying results – Q3-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q3-18 Q3-18 Q3-18 Q3-17 Specific Q3-17 ∆ Q3/Q3 ∆ Q3/Q3 €m Specific items stated underlying stated items underlying stated underlying Revenues 4,802 (33) 4,834 4,575 10 4,564 +5.0% +5.9% Operating expenses excl.SRF (

  49. Slide 49: Reconciliation between stated and underlying results – 9M-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – 9M-18 9M-18 9M-18 9M-17 Specific 9M-17 ∆ 9M/9M ∆ 9M/9M €m Specific items stated underlying stated items underlying stated underlying Revenues 14,882 2 14,880 13,983 20 13,962 +6.4% +6.6% Operating expenses excl.SRF

  50. Slide 50: Data per share

    CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q3-18 Q3-17 9M-18 9M-17 ∆ Q3/Q3 ∆ 9M/9M Net income Group share - stated 1,101 1,066 3,393 3,262 +3.2% +4.0% - Interests on AT1, including issuance costs, before tax (91) (92) (316) (329) -0.7% -4.0% NIGS attributable to ordinary shares - stated [A] 1

  51. Slide 51: Press and investor relations contacts

    Crédit Agricole PRESS CONTACTS: Charlotte de Chavagnac + 33 1 57 72 11 17 [email protected] Olivier Tassain + 33 1 43 23 25 41 [email protected] Caroline de Cassagne + 33 1 49 53 39 72 [email protected] CRÉDIT AGRICOLE S.A. INVESTOR RELATION

Crédit Agricole — Non-Deal Roadshow (November 2018) on 6ix