Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — FY2011 Earnings Presentation
45 slides from Credit Agricole SA's earnings presentation, Feb 23, 2012
Slide 1: Q4-11 and full year 2011 results
Q4-11 and full year 2011 results 23 February 2012
Slide 2: Disclaimer
Disclaimer 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 base
Slide 3: Contents
Contents I. Crédit Agricole Group Key messages Environment Business and results Financial structure II. Crédit Agricole S.A. Key messages and overview of results Update on adjustment plan Results by business lines Financial structure III. Liquidity and funding Appendices - see separate file 3 FOURTH
Slide 4: Crédit Agricole Group Key messages
Crédit Agricole Group Key messages Crédit Agricole Group's business proved resilient in extremely unfavourable conditions, with net income Group share of €812m in 2011. Loans outstanding : €799bn Crédit Agricole Group is the leading provider of financing to the French economy, with outstanding l
Slide 5: The banking environment in 2011
The banking environment in 2011 Economic slowdown Tensions in interbank market Trends on sovereign debt ratings 5 FOURTH QUARTER AND FULL YEAR 2011 RESULTS
Slide 6: Tougher regulatory requirements and CET1 timetable
The banking environment in 2011 The whole banking sector faces stepped-up timetable and tougher regulatory requirements Timetable for application of CET1 ratio under Basel 3 standards (at 31/12 of each year) 9% Anticipation by 5 years +2 points 7% Ratio required at 1 January 2019 Timetable at ea
Slide 7: Crédit Agricole Group Income statement for Q4-11 and 2011
CRÉDIT AGRICOLE GROUP Income statement for Q4-11 and 2011 €m Q4-11 Q4/Q4 2011 2011/2010 Revenues 8,243 (2.5%) 35,129 +2.7% Operating expenses* (5,868) +8.1% (21,629) +3.7% Gross operating income 2,375 (21.5%) 13,500 +1.1% Cost of risk (1,908) +79.3% (6,708) +29.2% Operating income 467 (76.2%) 6,
Slide 8: Solid momentum in financing the economy
CRÉDIT AGRICOLE GROUP Solid momentum in financing the economy In France, the Group is the leading provider of financing to the economy Loan origination: €96bn for French retail banking (Regional Banks and LCL) Over the year, for business lines globally Loans outstanding up by €39.5bn On-ba
Slide 9: Operating profitability resilient
CRÉDIT AGRICOLE GROUP Operating profitability resilient Q4 revenues topped €8.5bn before cost of adjustment plan (up 0.6% YoY in Q4) despite tougher economic conditions Controlled costs Costs up 1.9% YoY before cost of adjustment plan (including NICE project) Cost/income ratio: 61.6% at end-
Slide 10: Retail banking businesses predominant
CRÉDIT AGRICOLE GROUP Retail banking businesses predominant Business line revenues Business line GOI €35.9bn €* €15.2bn €* Corporate and investment Corporate and investment banking banking Asset 11% 15% management & Asset 6% CACEIS management & 6% CACEIS 11% Retail Retail Insurance 7% banking Insura
Slide 11: Solvency ratios
CRÉDIT AGRICOLE GROUP Solvency ratios Core Tier 1 ratio: 10.2% at 31 December 2011 (unfloored Basel 2.5); 9.0% floored EBA ratio at 31 December 2011: 9.6% €bn Regulatory capital* RWAs and Ratios (Basel 2.5* unfloored) 109.1 110.2 111.1 108.9 €522bn €493bn €507bn Total capital funds 25.7 24.8 24.
Slide 12: Content
Content I. Crédit Agricole Group Key messages Environment Business and results Financial structure II. Crédit Agricole S.A. Key messages and overview of results Update on adjustment plan Results by business line Financial structure III. Liquidity and funding Appendices - see separate file 12 FOURTH
Slide 13: Crédit Agricole S.A. Income statement for 2011
CRÉDIT AGRICOLE S.A. Income statement for 2011 2011 2011/2010 2011/2010** 2011 before costs of 2011 Impacts before costs before costs €m 2011 Costs of the the plan & 2011/2010 of Greece* of the plan & of the plan & plan & similar similar and similar and similar and Greece Greece Greece Revenue
Slide 14: Crédit Agricole S.A. Income statement for Q4-11
CRÉDIT AGRICOLE S.A. Income statement for Q4-11 Q4-11 Q4/Q4 Q4/Q4** Q4-11 Q4-11 before costs before costs before costs €m Q4-11 Costs of the Impacts of of the plan & Q4/Q4 of the plan of the plan plan & similar Greece* similar and & similar & similar Greece and Greece and Greece Revenues 4,663
Slide 15: Significant events in 2011
CRÉDIT AGRICOLE S.A. Significant events in 2011 Retail banking and asset gathering operations sustained their activity and profitability Business healthy: loans outstanding up 6.9% for LCL, up 16.1% for Cariparma A good year in 2011 with net income Group share up by 3.4% in French retail banki
Slide 16: Analysis of 2011 income
CRÉDIT AGRICOLE S.A. Analysis of 2011 income Net income Group share €m 1,586 ( 2,378) (482) 2,336 (2,532) (1,470) H1 - normalised* H2 - normalised* Cost of Greece in Cost of the plan Impairments in 2011 published 2011** (Q4-11) Q4-11 * Excl. the cost of Greece and the plan & similar ** PSI and Empor
Slide 17: Impacts of Greece and of the adjustment plan
CRÉDIT AGRICOLE S.A. Impacts of Greece and of the adjustment plan €m Q4-11 2011 Revenues (72) 463 Adjustment plan – impact of CIB portfolio disposals (258) (258) Emporiki 186 721 Operating expenses (573) (965) Adjustment plan – provisioning of all measures (CIB, SFS) (393) (393) Emporiki (180) (572)
Slide 18: Impact of the European support plan to Greece (PSI)
CRÉDIT AGRICOLE S.A. Impact of the European support plan to Greece (PSI) €m Q2-11 Q3-11 Q4-11 Cumulated 2011 impact (Q2 +Q3 +Q4) Emporiki Insurance Total Emporiki Insurance Total Emporiki Insurance Total Cost of risk (71) (131) (202) (141) (764) (905) (34) (186) (220) (1,327) Net impact (71) (94) (1
Slide 19: Implementation of the adjustment plan
Adjustment plan Implementation of the adjustment plan Funding needs reduced ahead of target (€bn) Realised* Target Cost of the plan between between (net income 30/06/11 and 30/06/11 and Group share) 31/12/11 31/12/12 in Q4-11** Retail banking -9 - 23 - Specialised financial services -1 -9 -€103m C
Slide 20: French retail banking – Regional Banks
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. French retail banking – Regional Banks Customer loans Loans: strong support to all customer segments of the €bn French economy +4.1% 390.6 - 4.1% growth in outstandings in 2011, driven by mortgages (up 5.7%) and 357.2 375.3 +5.1% business loans (up 4.2%)
Slide 21: French retail banking – Regional Banks
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. French retail banking – Regional Banks €m Q4-11 Q4/Q4 2011 2011/2010 Operating income up 5.5% YoY: Revenues 3,321 (1.4%) 13,420 +1.4% Revenues from customer business up 1.1%, and up 1.2% excluding home purchase savings plans, Operating expenses (1,9
Slide 22: French retail banking – LCL
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. French retail banking – LCL €bn Stepped-up growth in on-balance sheet Customer loans deposits: up 16.7% YoY +6.9% 87.8 Persistently strong growth in term savings deposits: up 44.1% +7.4% 82.1 76.4 Passbook account and sight deposits both up by over 12
Slide 23: French retail banking – LCL
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. French retail banking – LCL Revenues down 1.5% YoY in 2011* Margins adversely affected by higher cost of on- balance sheet deposits in H2-11 €m Q4-11 Q4/Q3* 2011 2011/2010* Slowdown in commissions and fee income, mainly due to decline in securitie
Slide 24: International retail banking - Cariparma
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. International retail banking - Cariparma Outstanding loans and deposits Cariparma consolidated its positions, mainly through integration of the 33.2 33.6 33.8 new branches, and remains one of the strongest-performing, most €bn 31.6 33.8 profitable players i
Slide 25: International retail banking – excluding Italy and Greece
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. International retail banking – excluding Italy and Greece Breakdown of revenues – other entities* (2011) Business of other IRB entities* CA Srbija Madagascar Poland: expansion and renovation of branch network in the framework of the development of retai
Slide 26: Emporiki: reduced exposure
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Emporiki: reduced exposure Gross loans outstanding down €100m YoY Change in exposure to Emporiki Bank €bn Costs lowered during the year 1.0 0.8 454 staff departures in Q4-11 representing an expense of €38m 0.7 - 610 departures during 2011 costing €51m
Slide 27: Asset management – Amundi
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Asset management – Amundi* Annual results up slightly despite highly unfavourable Change in assets under management* financial climate €bn Branch networks, corporates, Business resilient: decline in outstandings limited to -7% third-party distributors, Yo
Slide 28: Asset servicing - CACEIS
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Asset servicing - CACEIS Solid business momentum limited the decline in Assets under custody Funds under administration €bn €bn assets in a difficult market climate 2,325 2,379 1,150 An expanded product range (middle-office solutions, etc.) 2,264 2,259
Slide 29: Private Banking
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Private Banking AUM solid over the year despite worsening Change in assets under management* €bn financial crisis in H2-11 128.2 126.3 0.3 (2.9) 0.7 Stable in France, with sharp rise in on-balance sheet 115.0 34.4 Inflows Capital market Scope 34.8 inflo
Slide 30: Insurance
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Insurance Change in premium income Life insurance in France: weathering a difficult market (French GAAP) Market share of business in force: 15.1%* at end- 2011 €m Positive net new inflows of €2.5bn over the year, down 67%; 29,679 premium income down 1
Slide 31: Insurance
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Insurance Breakdown of investment (excl. unit-linked)* Net income Group share before impairment of Greek 1.6% 1.6% government bonds: €1,110m in 2011 (€187m in Q4-11) 3.0% 2.6% 4.0% 2.0% 4.6% 1.7% 5.0% 8.1% 6.1% 12.5% Other (private equity, Impairment of
Slide 32: Specialised financial services - Consumer Finance
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Specialised financial services - Consumer Finance €bn Managed loan book Managing slowdown in business: Managed loan book up 0.3% over the year, lower cash consumption 78.1 78.4 78.3 75.8 A year impacted by a downturn in consumer finance under the impact
Slide 33: Specialised financial services – Lease finance & Factoring
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Specialised financial services – Lease finance & Factoring Slower growth in outstandings in lease finance and Lease finance Factored fall in production in Q4-11 (- 4% QoQ in Q4) and factoring (€bn) receivables Slower growth in lending (up 5.0% year-on-y
Slide 34: Corporate and investment banking
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Corporate and investment banking Net income Group share Before impact of adjustment plan, net income Group Restated for revaluation of debt issues and loan hedges, share of ongoing activities*: €1,125m in 2011, of which €m before costs of adjustment plan
Slide 35: Financing activities
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Financing activities Impact of adjustment plan on revenues in Q4-11 €m Change in revenues Cost of loans sold Cost of loans sold 2,703 2,425 Production down in all segments of Financing activities Loan hedges Structured finance 40 Revenues from struc
Slide 36: Capital markets and investment banking
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Capital markets and investment banking Change in revenues Fixed income results down over the quarter €m 3,325 Impact of adjustment plan 2,986 Treasury business continued to suffer from effects of Revaluation of debt issues** 671 liquidity crisis and sha
Slide 37: Discontinuing operations
THE BUSINESS LINES OF CREDIT AGRICOLE S.A. Discontinuing operations Change in inrevenues revenuesand andcost costof ofrisk CDO, ABS, CLO: active management of Changes risk 3 exposures €m m € En 29 39 35 44 12 8 Negative impact of €132m from disposal of a (141) (119) portfolio of US RMBS in in De
Slide 38: Change in shareholders' equity and RWAs
CRÉDIT AGRICOLE S.A. : FINANCIAL STRUCTURE Change in shareholders' equity and RWAs Core Tier 1 capital net of deductions: down €4.1bn €bn Regulatory capital* QoQ in Q4 88.0 87,9 81.4 Partial repayment of shareholder's advance (-€2.8bn) Total capital funds 23.7 22.2 Tier 2 and Tier 3 capital and
Slide 39: Solvency ratios
CRÉDIT AGRICOLE S.A. : FINANCIAL STRUCTURE Solvency ratios Core Tier 1 ratio nearly stable despite first-time application of CRD3: down 0.2 pt QoQ in Q4 Impact of implementation of CRD3: -0.6 pt Excluding Switch implementation and CDR3 impact, RWAs down by €9bn (down 2.5% QoQ in Q4): +0.2 pt
Slide 40: Change in RWAs and impacts of the adjustment plan
CRÉDIT AGRICOLE S.A. : FINANCIAL STRUCTURE Change in RWAs and impacts of the adjustment plan €bn Change in RWAs and impacts of the adjustment plan (Basel 2.5) +5 (52.7) +24.8 (7) (3) (13) (1) (6) Impacts of the plan -€8bn 368 334 CIB SFS Crédit Agricole S.A. June Switch CRD3 Foreign Adjustment
Slide 41: Contents
Contents I. Crédit Agricole Group Key messages Environment Business and results Financial structure II. Crédit Agricole S.A. Key messages and overview of results Update on adjustment plan Results by business line Financial structure III. Liquidity and funding Appendices - see separate file 41 FOURTH
Slide 42: Liquidity: Short term funding
LIQUIDITY Short term funding* Breakdown of 2011 ST debt Crédit Agricole Group gross short term debt at by currency 31 December 2011: €127bn CHF 1% GBP JPY 5% 8% Surplus cash position with €21bn in overnight deposits with central banks in EUR and USD Others 15% The Group weathered the US dollar
Slide 43: Liquidity: Change in short-term debt
LIQUIDITY Change in short-term debt Planned €50bn reduction in structural funding needs Reduction of short term debt announced on 28 September 2011 ahead of schedule 185 €bn 15 127 Reduction in net short-term market debt between 21 June and December 2011: €64bn 170 Excess liquidity deposited wit
Slide 44: Liquidity reserves
LIQUIDITY Liquidity reserves Solid liquidity reserves exceeding Available reserves €bn amount of net short-term debt at 31/12/2011 Reserves of available assets at 31 December 2011: €110bn* €7bn increase in available liquidity reserves (net of amounts used) since 30 September 2011 New reserves
Slide 45: Medium and long term funding
LIQUIDITY Medium and long term funding Crédit Agricole S.A. MLT market programme* 2011 MLT market issues 2011 programme (€22bn) 120% completed Crédit Agricole S.A. - €4.4bn more than original programme Collateralized Public senior - Average term: 6.4 years public issues issues - Average spread v