Credit Agricole SA · EURONEXT:ACA
Credit Agricole SA — Investor Day (March 2016)
189 slides from Credit Agricole SA's investor day presentation, Mar 9, 2016
Slide 1: Strategic Ambition - Investor Day
STRATEGIC AMBITION > Investor Day 9 March 2016
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 bas
Slide 3: Contents
General Policy of the Group 1 A new strategic plan based on our strengths A strategic ambition embedded in four priorities 2 CONTENTS 1. Simplify the Group's capital structure 2. Roll out an ambitious Customer Project, enhanced by the digital revolution 3. Strengthen the Group's growth momentum in i
Slide 4: A new strategic plan based on our strengths
CHAPTER 1 A NEW STRATEGIC PLAN BASED ON OUR STRENGTHS
Slide 5: A new strategic plan based on our strengths
CHAPTER 1 The Group's DNA A NEW STRATEGIC PLAN BASED ON OUR Confirmed leadership year after year in our business STRENGTHS lines Ability to deliver on our commitments – MTP achievements Prudent economic and regulatory assumptions
Slide 6: The Group's DNA (1/3)
THE GROUP'S DNA (1/3) A CUSTOMER-FOCUSED UNIVERSAL BANKING MODEL Recognised ability to distribute products created by our specialised business lines through our retail banking networks to meet our customer needs €7.8bn of revenue synergies in 2015 for Crédit Agricole Group An average of 9 produc
Slide 7: The Group's DNA (2/3)
THE GROUP'S DNA (2/3) STRONG COOPERATIVE AND MUTUAL ROOTS Trend in number of mutual-shareholder customers 2013-2015 (millions) #1 bank +1.4m ~ 9m in France in terms of the number of mutual-shareholder mutual-shareholder customers customers at end 2015 2013 2015 A decentralised A united Group structu
Slide 8: The Group's DNA (3/3)
THE GROUP'S DNA (3/3) A GROUP CAPABLE OF ADAPTING TO DELIVER SUSTAINABLE PERFORMANCE Common chairmanship between Crédit Agricole S.A., SAS Rue La Boétie Crédit Agricole S.A.'s Compliance Division and FNCA since November 2015 reports directly to Executive Management since September 2015 Highly
Slide 9: Confirmed leadership year after year (1/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (1/6) IN RETAIL BANKING (1/2) Market leader in France in all segments, with In Italy, a robust, profitable bank forming the differentiated and complementary positions backbone of our growth in this country 3 complementary brands in France with a total # 7 ret
Slide 10: Confirmed leadership year after year (2/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (2/6) IN RETAIL BANKING (2/2) Steady growth in business by more than 2% a year since 2013 Loans outstanding (in €bn) On-balance sheet deposits (in €bn) CAGR + 2% CAGR + 3% 542 520 524 501 34 469 480 33 33 37 97 36 36 89 91 95 85 88 Cariparma LCL Régional Banks 39
Slide 11: Confirmed leadership year after year (3/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (3/6) IN ASSET GATHERING (1/2) Strong leadership in our activities, coupled with A comprehensive player offering our customers sustained growth momentum end-to-end real estate management solutions #1 €985bn asset manager in Europe in assets under management at en
Slide 12: Confirmed leadership year after year (4/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (4/6) IN ASSET GATHERING (2/2) Strong growth momentum in Asset gathering Renewed success of property & casualty insurance Assets under management1 (€bn) Number of property & casualty insurance policies3 in France and Italy (millions) CAGR +10% 1,396 1,159 1,268 1
Slide 13: Confirmed leadership year after year (5/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (5/6) IN FINANCING ACTIVITIES AND PAYMENTS (1/2) Expertise in financing activities supporting the Group's other activities LARGE CUSTOMERS After a refocusing period, # 1 worldwide in aircraft financing1 a new streamlined CIB model # 2 in syndication business
Slide 14: Confirmed leadership year after year (6/6)
CONFIRMED LEADERSHIP YEAR AFTER YEAR (6/6) IN FINANCING ACTIVITIES AND PAYMENTS (2/2) Expertise in financing activities supporting the Group's other activities SPECIALISED FINANCIAL SERVICES Top 3 in consumer finance in Europe €71bn managed loan book at end 2015 # 1 ex aequo originator of equipm
Slide 15: Ability to deliver on our commitments (1/5)
ABILITY TO DELIVER ON OUR COMMITMENTS (1/5) GROWTH IN INTRAGROUP SYNERGIES AND A STRENGTHENED POSITION IN EUROPE Revenue synergy growth ahead of schedule Revenue synergies (€bn) + ~€745m Of which revenue synergies in Italy (€m) 7.8 8.0 7.11 7.3 576 450 500 2013 2014 2015 2016 target 2013 2015 2016 t
Slide 16: Ability to deliver on our commitments (2/5)
ABILITY TO DELIVER ON OUR COMMITMENTS (2/5) AN AMBITIOUS INVESTMENT PROGRAMME AND CONTINUED COST CUTTING FOR IMPROVED OPERATIONAL PERFORMANCE Continued efforts to cut costs at CASA with the Major investments in business transformation in completion of the MUST programme 2014-2015 Reduction in costs
Slide 17: Ability to deliver on our commitments (3/5)
ABILITY TO DELIVER ON OUR COMMITMENTS (3/5) DIFFERENTIATED TRANSFORMATION OF OUR NETWORKS TO MEET NEW CUSTOMER EXPECTATIONS Laureate 2nd brand of the international 3.5 million 1st banking group Finovate award 2013 users of the for digital services « Ma Banque » App in France1 in 2015 The Crédit Agri
Slide 18: Ability to deliver on our commitments (4/5)
ABILITY TO DELIVER ON OUR COMMITMENTS (4/5) A GOOD LEVEL OF NET INCOME GROUP SHARE IN ALL BUSINESS LINES Net income Group share up strongly thanks to a recovery in the activities that made substantial deleveraging efforts from 2011 to 2013 Crédit Agricole S.A.'s underlying net income Group share1 (€
Slide 19: Ability to deliver on our commitments (5/5)
ABILITY TO DELIVER ON OUR COMMITMENTS (5/5) PROVEN FINANCIAL ROBUSTNESS AND PROFITABILITY IN LINE WITH 2016 TARGETS Crédit Agricole Group Crédit Agricole S.A. Year end 2015 2016 target1 Year end 2015 2016 target1 Fully-loaded CET1 ratio 13.7% 14% 10.7% > 10.5% reported €6.0bn €3.5bn NIGS > €6.5bn >
Slide 20: Conservative economic and regulatory assumptions (1/2)
CONSERVATIVE ECONOMIC AND REGULATORY ASSUMPTIONS (1/2) ECONOMIC AND FINANCIAL ENVIRONMENT Deliberately conservative economic growth and interest rate assumptions Moderate recovery in growth Durably low interest rates GDP growth (year-on-year, %) 3-month Euribor and 10-year OAT rates 5% Eurozone 2% F
Slide 21: Prudent economic and regulatory assumptions (2/2)
PRUDENT ECONOMIC AND REGULATORY ASSUMPTIONS (2/2) REGULATORY ENVIRONMENT Regulatory changes result in a harsher financial and economic equation for banks New requirements for regulatory ratio levels and calculation methods, which have an impact on REGULATORY ASSUMPTIONS Level of capital: calibrati
Slide 22: A strategic ambition embedded in four priorities
CHAPTER 2 A STRATEGIC AMBITION EMBEDDED IN FOUR PRIORITIES
Slide 23: A strategic ambition embedded in four priorities
1 Simplify the Group's capital structure CHAPTER 2 A STRATEGIC Roll out an ambitious Strengthen the Group's AMBITION EMBEDDED 2 Customer Project, growth momentum in its 3 IN FOUR PRIORITIES enhanced by the digital core business lines transformation Transform the Group to sustainably 4 improve our in
Slide 24: Simplify the Group's capital structure
SIMPLIFY THE GROUP'S CAPITAL STRUCTURE 1 1.1 Rationale behind the operation for Simplify Crédit Agricole S.A. the Group's capital structure Impacts on Crédit Agricole Group's 1.2 and Crédit Agricole S.A.'s financial position 1.3 Consequences for the business mix 24
Slide 25: Plan to simplify the Group's structure: rationale
PLAN TO SIMPLIFY THE GROUP'S STRUCTURE 1.1 RATIONALE OF THE TRANSACTION FOR CRÉDIT AGRICOLE S.A. Simplification of Crédit Greater clarity for the market and the Supervisor Agricole Group’s structure Improvement of quality of Unwinding of Switch 1 mechanism: impact of 170bps at the fully-loaded c
Slide 26: Plan to simplify the Group's structure: impacts
PLAN TO SIMPLIFY THE GROUP'S STRUCTURE 1.2 IMPACTS ON THE FINANCIAL SITUATION OF THE GROUP AND CASA On net income Transaction overall neutral at On regulatory ratios Crédit Agricole Group level On liquidity position (Intragroup funding of the transaction) No change in the scope of tax consol
Slide 27: Timeline of the impacts on Crédit Agricole S.A.
PLAN TO SIMPLIFY THE GROUP'S STRUCTURE 1.2 TIMELINE OF THE IMPACTS ON CRÉDIT AGRICOLE S.A. 2017 and 2016 following Q1 Q2 Q3 Q4 Balance sheet Capital gain optimisation +€725m (€750m) in revenues (€490m) in NIGS +€833m in Net income from discontinued or held- Dividend for-sale operations2 (€108m) rela
Slide 28: Consequences on Crédit Agricole S.A. business mix
PLAN TO SIMPLIFY THE GROUP'S STRUCTURE 1.3 CONSEQUENCES ON CRÉDIT AGRICOLE S.A. BUSINESS MIX A balanced business mix which remained very largely dominated by retail banking activities until now and this will not significantly change between 2015 (pro forma) and 2019 Revenues: CASA business mix Net i
Slide 29: Roll out an ambitious Customer Project, enhanced by the digital revolution
ROLL OUT AN AMBITIOUS CUSTOMER PROJECT, ENHANCED BY THE DIGITAL REVOLUTION 2 2.1 A Customer-focused Universal banking Roll out an model ambitious Customer Project, enhanced 2.2 A “Full Multi-Channel” distribution model by the digital revolution 2.3 A strategic investment in customer relationships 29
Slide 30: A customer-focused universal banking model
2.1 A CUSTOMER-FOCUSED UNIVERSAL BANKING MODEL A model based on the expertise of all our business lines, on the excellence and the know-how required to meet the financial and wealth management needs of our customers Diverse customer Small Individuals Farmers profiles, with very businesses different
Slide 31: A full multi-channel distribution model
2.2 A “FULL MULTI-CHANNEL” DISTRIBUTION MODEL A model that enables our customers to choose how and when they interact with their bank and switch easily between the various channels Illustration of the customer journey for a home loan Agreement in Revision of % of customers1 Human Information princip
Slide 32: Actions to accelerate digital transformation and foster innovation
2.2 THE GROUP IS TAKING ACTIONS TO ACCELERATE THE DIGITAL TRANSFORMATION AND FOSTER INNOVATION Aim of our digital transformation IMPROVE THE CUSTOMER EXPERIENCE by streamlining and digitalising all key customer journeys 300 10–15 minutes customer journeys re-designed maximum throughout the entire Gr
Slide 33: Three levers to drive digital transformation
2.2 THE GROUP IS TAKING ACTIONS TO ACCELERATE THE DIGITAL TRANSFORMATION AND FOSTER INNOVATION 3 levers to drive this transformation AGILITY INNOVATIVE ECOSYSTEM DIGITAL CULTURE Introduce new working methods to Take advantage of our relationships Develop a digital culture among the foster agility wi
Slide 34: Proactive digital transformation
2.2 PROACTIVE DIGITAL TRANSFORMATION Concrete examples of the digital transformation serving our customers 100% of branches digitalised by 2017 40 flagship branches Open Bank1 Digital "Mobile branches Innovative products + first" Online platform and strategy distributing all Group services products
Slide 35: A strategic investment in customer relationships
2.3 A STRATEGIC INVESTMENT IN CUSTOMER RELATIONSHIPS OUR PROMISE To act and behave as the true partner of our customers DRIVERS 1 2 3 A partner that can A partner that helps A partner that accompanies continuously reinvent every customer make each of its individual itself to simplify and ease the ri
Slide 36: Customer project reflected in concrete actions
A CUSTOMER PROJECT REFLECTED IN CONCRETE 2.3 ACTIONS TAKEN AT THE GROUP LEVEL AND BY EACH ENTITY Concrete evidence at a Group level, across all entities 1 2 3 A new wealth Group Charter setting out the rules for the use advisory of personal data 100% approach to be implemented in 2016 of key custome
Slide 37: Strengthen the Group's growth momentum in core business lines
STRENGTHEN THE GROUP'S GROWTH MOMENTUM IN ITS CORE BUSINESS LINES 3 3.1 Retail banking Strengthen the Group's 3.2 Asset gathering growth momentum in its core 3.3 Large customers business lines 3.4 Specialised financial services Strengthening intragroup revenue synergies 37
Slide 38: Growth momentum: Retail banking
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Increase customers equipment in Accelerate the pace of customer synergy with specialised capture to support our businesses leadership over the long-term Complete the digital transformation while controlling the cost base 38
Slide 39: Accelerate the pace of customer capture
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Accelerate the pace of customer capture to support our leadership over the long-term Individuals: 3 main levers to gain new 500,000 customers customers in 2020 Full digital offer, free for (i.e. +360,000 customers Digital products and servi
Slide 40: Increase number of products per customer
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Increase in the number of products per customer in synergy with specialised activities 2019 targets (vs 2015) Continue our multi-product strategy Strengthen our position in consumer finance + €5bn Further increase our equipment rate of pr
Slide 41: Complete digital transformation while controlling cost base
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING Complete the digital transformation while controlling the cost base DIGITAL TRANSFORMATION AND COST CONTROL BRANCH NETWORK UPGRADE An ambitious investment plan A proactive plan to support business development to improve operating efficiency ~
Slide 42: Retail banking 2019 financial targets
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.1 RETAIL BANKING 2019 FINANCIAL TARGETS Crédit Agricole S.A.'s Retail banking 2015 - 2019 LCL Cariparma Revenues CAGR ~ +0.5% p.a. ~ +3% p.a. Cost / income ratio (2019) ~ 65% ~ 55% RoNE1 (2019) > 16% > 16% 1. RoNE: calculated on the basis of a capital allocat
Slide 43: Growth momentum: Asset gathering
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING Investment in the growth of our A driving role in Crédit Agricole activities S.A.'s revenue growth Boosting in revenue synergies 43
Slide 44: A driving role in revenue growth
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING A driving role in Crédit Agricole S.A. revenue growth ~45% Crédit Agricole S.A. business-line revenues (€bn) of growth in Crédit Agricole 1/3 S.A. business line revenues of Crédit Agricole S.A. generated by the Asset business line revenues g
Slide 45: Investment in the growth of our business lines
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING Investment in the growth of our business lines Growth in the capital allocated to the Asset Capital allocated to business lines1 (€bn) gathering business line 7.7 7.1 3% 3% 27% Wealth 26% management Asset Pursuit of value-creating acquisitio
Slide 46: Boosting revenue synergies
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING Boosting in revenue synergies Between the Asset gathering entities Between the Asset gathering entities and the rest of the Group Be the partner of choice to companies for Crédit Agricole Assurances to take over group group employee savi
Slide 47: Asset gathering 2019 financial targets
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.2 ASSET GATHERING 2019 FINANCIAL TARGETS Sustained business momentum while ensuring growth in the business line's already high profitability Asset gathering of which of which 2015 - 2019 (including CA Indosuez WM, Insurance1 Asset management excluding CA Immo
Slide 48: Growth momentum: Large customers
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS Large customers: A CIB serving the Group whilst a new coherent business line maintaining a low risk profile generating synergies Proactive RWAs and cost base optimisation to offset impacts of new regulatory requirements 48
Slide 49: A CIB serving the Group with a low risk profile
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS A CIB serving the Group whilst maintaining a low risk profile A CIB serving the Group A Large customers business line with a specially prudent risk profile, helping reduce earnings volatility Support the development of the Regional Banks a
Slide 50: A new coherent business line generating synergies
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS Large customers: a new coherent business line generating synergies PRODUCT SYNERGIES CLIENT SYNERGIES INDUSTRIAL SYNERGIES Strengthen our global offer for Greater commercial cooperation Industrialisation of common institutional customers bet
Slide 51: Proactive optimisation of RWAs and cost base
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS Proactive optimisation of RWAs and cost base to offset impacts of new regulatory requirements Proactive optimisation of RWAs Operational efficiency plan Selective review of CACIB client portfolio Investments to converge CACIB and CASA to
Slide 52: Large customers 2019 financial targets
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.3 LARGE CUSTOMERS 2019 FINANCIAL TARGETS Large customers: a coherent business Proactive optimisation of RWAs and cost line generating additional synergies base to offset impacts of new regulatory requirements 2015-2019 2015-2019 Revenues RoNE2 ~ +2% p.a. >11%
Slide 53: Growth momentum: Specialised financial services
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES A selective growth An improvement in profitability after several years under severe thanks to cost cutting efforts and constraint adaptation of the model to capital and liquidity constraints 53
Slide 54: A selective growth
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES A selective growth Further integrate specialised financial services Selectively relaunch profitable production in with the Group's retail banks stand-alone business Support the Group’s networks in gaining new Direct channe
Slide 55: An improvement in profitability
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES An improvement in profitability Switch to an asset-light model Operating optimisation, with sustained cost cutting efforts Sharp improvement in RWAs/consolidated loan book ratio Convergence of CACF and CAL&F IT systems to
Slide 56: Specialised financial services 2019 financial targets
STRENGTHEN THE GROUP'S GROWTH MOMENTUM 3.4 SPECIALISED FINANCIAL SERVICES 2019 FINANCIAL TARGETS A selective growth An improvement in profitability after several years under severe thanks to cost cutting efforts and the constraints adaptation of the model to capital and liquidity constraints 2015-20
Slide 57: Intragroup revenue synergies
STRENGTHEN THE GROUP'S GROWTH MOMENTUM INTRAGROUP REVENUE SYNERGIES Revenue synergies target of €8.8bn for Crédit Agricole Group in 2019 i.e. more than 25% of business line revenue Main sources of additional revenue synergies Revenue synergies (€bn) CAA to insource the group creditor insurance +€1
Slide 58: Italy: develop intragroup synergies
STRENGTHEN THE GROUP'S GROWTH MOMENTUM ITALY: DEVELOP INTRAGROUP SYNERGIES IN THE GROUP'S SECOND DOMESTIC MARKET A comprehensive profitable range of business lines: robust fundamentals underpinning the future Impressive performances at end 2015 3.5 million €123bn1 €3.1bn1 > €570m of deposits and ass
Slide 59: Strong growth ambitions in Italy
STRENGTHEN THE GROUP'S GROWTH MOMENTUM ITALY: DEVELOP INTRAGROUP SYNERGIES IN THE GROUP'S SECOND DOMESTIC MARKET Strong growth ambitions in Italy Develop all the specialised businesses in synergy with the Cariparma Group Growth in off-balance sheet customer assets with Amundi and CAA Revenue syner
Slide 60: Transform the Group to improve industrial efficiency
TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY Transform the 4 Group to sustainably improve our industrial efficiency 60
Slide 61: A €900m operational efficiency programme
TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY A €900m operational efficiency programme for Crédit Agricole S.A. Annual cost savings by 2019 (€m) 900 900 Retail banking IT transformation 37% 36% Asset gathering Operational optimisation - 6 pts and efficiency of Crédit Agricole
Slide 62: Cost cutting programmes for IT and non-IT purchase
TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY Ambitious cost cutting programmes for IT expenses and non-IT purchase Reduction in IT expenses Reduction in non-IT purchase Convergence of Retail banking IT Pool purchases, rationalisation of suppliers and productions (includin
Slide 63: Additional cost saving drivers
TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY Additional cost saving drivers Operational efficiency drivers Legal and organisational simplification LCL: ongoing rationalisation of back Launch of a process to rationalise the offices and branch network remodelling, Group's l
Slide 64: A €7.7bn investment programme over 4 years
TRANSFORM THE GROUP TO SUSTAINABLY IMPROVE OUR INDUSTRIAL EFFICIENCY An ambitious investment programme of €7.7bn over 4 years1 to prepare for the future and better serve our customers Cumulative investment over the plan period (€bn) 4.4 7.7 €1.8bn in improving industrial efficiency and cutting costs
Slide 65: In summary, a coherent strategic plan
CHAPTER 2 Crédit Agricole S.A.’s solvency sustainably strengthened and a resilient business mix IN SUMMARY, A A prudent risk profile and strengthened compliance COHERENT system STRATEGIC PLAN
Slide 66: Solvency strengthened and resilient business mix
CRÉDIT AGRICOLE S.A.’S SOLVENCY SUSTAINABLY STRENGTHENED AND A RESILIENT BUSINESS MIX Improvement in the quality of Crédit A controlled and oriented increase in RWAs towards Agricole S.A.'s capital Retail banking and Asset gathering Crédit Agricole S.A. CET1 fully-loaded Change in RWAs (€bn) Incurre
Slide 67: A prudent risk profile and strengthened compliance system
A PRUDENT RISK PROFILE AND STRENGTHENED COMPLIANCE SYSTEM A Group with a low risk appetite A strategic investment in Compliance Selective lending policy Guarantee high standards of business ethics and loyalty to our customers Market risk weighted assets to represent less than 5% of Crédit Agri
Slide 68: Financial and prudential planning
CHAPTER 3 FINANCIAL AND PRUDENTIAL PLANNING
Slide 69: Financial and prudential planning
2019 financial targets CHAPTER 3 Revenues and expenses FINANCIAL AND Focus on the Corporate Centre PRUDENTIAL PLANNING Risk weighted assets and profitability Solvency planning and capital structure Liquidity management
Slide 70: 2019 financial targets
2019 FINANCIAL TARGETS Crédit Agricole Of which Group Crédit Agricole S.A. Revenue growth1 >+1.5% >+2.5% 2019 cost / income ratio <60% <60% Cost of risk / outstandings <35bps <50bps 2019 Net income Group share >€7.2bn >€4.2bn 2019 RoTE >10% Fully-loaded CET1 16% ≥11% TLAC excl. eligible senior debt
Slide 71: 2019 financial targets: business line indicators
2019 FINANCIAL TARGETS BUSINESS LINE INDICATORS Revenues 2019 2019 RoNE2 2015-2019 CAGR1 Cost / income LCL ~+0.5% ~65% >16% Retail banking Cariparma ~+3% ~55% >16% Insurance Asset Asset management >+3% <45% >25% gathering Wealth management Specialised Consumer credit financial >+2.5% <46% >13% servi
Slide 72: Business line revenues: analysis of revenues
BUSINESS LINE REVENUES AND EXPENSES ANALYSIS OF REVENUES A balanced growth in all 4 business lines Crédit Agricole S.A. business lines’ revenues in €bn Relative share in total business lines and 2015-2019 CAGR ~ 20.3 ~ 18.5 +2,5% p.a. 14% +3% p.a. +2% p.a. All business lines 14% +2% p.a. contribut
Slide 73: Business line expenses: analysis of expenses
BUSINESS LINE REVENUES AND EXPENSES ANALYSIS OF EXPENSES Expenses well under control in all 4 business lines Crédit Agricole S.A. business line expenses in €bn Relative share in total business lines and 2015-2019 CAGR For each business line, ~ 10.7 ~ 10.9 increase of expenses is 12% lower than rev
Slide 74: Cost / income ratio analysis
BUSINESS LINE REVENUES AND EXPENSES COST / INCOME RATIO ANALYSIS An improvement of the cost/income ratio in all business lines Cost / income ratio (in %) (2015 pro forma) Significant improvement 2015 of the cost/income ratio 2019 for Crédit Agricole S.A. and all business lines 66 < 60 Crédit Agric
Slide 75: Focus on the Corporate Centre: NIGS analysis
FOCUS ON THE CORPORATE CENTRE NET INCOME GROUP SHARE (NIGS) ANALYSIS A 2019 NIGS of the Corporate centre lowered to approximately -€700m Evolution of the Corporate Centre NIGS (in €m) ~ -700 200 -50 ~ -1,500 -100 200 550 Underlying Capital Transfer of Costs allocated to TLAC Other items 2019 2015 NI
Slide 76: Consequences of capital simplification on leverage
FOCUS ON THE CORPORATE CENTRE CONSEQUENCES OF THE CAPITAL SIMPLIFICATION ON LEVERAGE A reduction of €12bn of the debt allocated to the funding of equity stakes, of which €10bn in 2016 Debt allocated to the funding of equity stakes (in €bn) -43% 8 ‐6 28 ‐12 18 ‐2 16 2015 Simplification Increase in De
Slide 77: RWAs and capital allocated by business line
RISK WEIGHTED ASSETS RISK WEIGHTED ASSETS AND CAPITAL ALLOCATED BY BUSINESS LINE Capital allocation tailored to the needs Moderate growth of RWAs and risks of each business line Business lines’ RWAs (excl. Corporate Centre)1 Capital allocated to business lines (excl. Corporate Centre) 2015 pro forma
Slide 78: Crédit Agricole S.A. risk weighted assets
RISK WEIGHTED ASSETS CRÉDIT AGRICOLE S.A. A moderate growth in risk weighted assets Risk weighted assets - Crédit Agricole S.A. (in €bn) 17 12 -10 -5 -17 306 296 303 31 December Simplification 31 December FX effect Organic Selectivity and Regulatory 31 December 2015 transaction 2015 proforma changes
Slide 79: Regulatory evolutions: RWA floor revision
RISK WEIGHTED ASSETS REGULATORY EVOLUTIONS Floor revision in an embryonic state, preventing it from being taken into account in the MTP The future floor revision is not yet defined, which makes it difficult to estimate potential impacts Scheduled for 2019 at the earliest, it is likely that it will n
Slide 80: Normative profitability of business lines
PROFITABILITY NORMATIVE PROFITABILITY OF CRÉDIT AGRICOLE S.A. BUSINESS LINES An increase in profitability for all business lines Business lines' RoNE1 in 2015 and 2019 RoNE (%) 26 Asset gathering >25% 22 Cariparma >16% LCL >16% 18 14 Specialised financial services >13% Large customers >11% 10 60 0 5
Slide 81: Solvency planning: CET1 and Tier 1 ratios
SOLVENCY PLANNING CRÉDIT AGRICOLE S.A. CET 1 AND TIER 1 RATIOS Fully-loaded CET1 and Tier 1 target ratios of 11% and 12.5% over the MTP duration Fully-loaded CET1 and Tier 1 target ratios Crédit Agricole S.A. Optimisation of the capital structure AT1 with an AT1 target of 1.5% already 1.5% achieve
Slide 82: Fully-loaded CET1 ratio of Crédit Agricole S.A.
SOLVENCY PLANNING FULLY-LOADED CET1 RATIO OF CRÉDIT AGRICOLE S.A. A capital planning reconciling a cash pay-out policy in a constrained regulatory environment and capital allocation favouring high profitability business lines Fully-loaded CET1 ratio - Crédit Agricole S.A. +4.6% +0.7% -2.3% -0.7% -0.
Slide 83: Fully-loaded CET1 ratio targets
SOLVENCY PLANNING FULLY-LOADED CET1 RATIO Crédit Agricole Group aims to stay among the most solid groups in Europe in terms of solvency Fully-loaded CET1 ratio Targets for Crédit Agricole Group & Crédit Agricole S.A. Taking into account 31 Dec. 2015 31 Dec. 2019 the risk weighting of capital and r
Slide 84: CET1 ratio of Crédit Agricole Group compared to peers
SOLVENCY PLANNING FULLY-LOADED CET1 RATIO OF CRÉDIT AGRICOLE GROUP COMPARED TO ITS PEERS Crédit Agricole Group aims to stay among the most solid groups in Europe in terms of solvency The Group’s strategy consists in capitalising on the Regional Banks’ capacity to retain their earnings in order to di
Slide 85: Crédit Agricole Group CET1 ratio and RWAs
SOLVENCY PLANNING CRÉDIT AGRICOLE GROUP: FULLY-LOADED CET1 RATIO AND RWAS Fully-loaded CET1 ratio - Crédit Agricole Group +4.8% +0.3% +0.6% -0.4% -0.5% -2.5% 16% 13,7% 31 Déc. 2015 Retained earnings Issuing of mutual AFS reserve Regulatory impacts1 Selectivity and Expansion of 31 Déc. 2019 shares op
Slide 86: Capital structure at end-2019: TLAC ratio
CAPITAL STRUCTURE AT END-2019 TLAC RATIO EXCLUDING ELIGIBLE SENIOR DEBT Capital structure adapted to future TLAC ratio requirements1 Target capital structure – Crédit Agricole Group AT1 volumes are calibrated to optimise 22% the capital structure of Crédit Agricole 19.5% 19.7% S.A. T1 under Basel
Slide 87: Capital structure at end-2019: leverage ratio
CAPITAL STRUCTURE AT END-2019 LEVERAGE RATIO Leverage ratio: an additional ratio for the analysis of financial strength Leverage ratio at 31/12/2015 Minimum indicative level already exceeded 5.6% 4.5%1 Minimum indicative level recommended by the Basel Committee 1 January 2018 (3%) Crédit Agricole Gr
Slide 88: Capital structure at end-2019: MREL ratio
CAPITAL STRUCTURE AT END-2019 MREL RATIO Crédit Agricole Group MREL ratio sustainably exceeding 8%1, excl. preferred senior debt MREL ratio MREL ratio numerator (€bn) denominator (€bn) Definition: equity, hybrid debt and non-preferred MLT senior Definition: total prudential balance sheet unsecured d
Slide 89: Liquidity management: LCR and NSFR
LIQUIDITY MANAGEMENT LCR AND NSFR Regulatory End-2015 2016-2019 requirement ratio Target Crédit 70% at LCR: the aim of the Group is to secure its Agricole 01/01/2016 >110% ~110% compliance with regulatory requirements by S.A maintaining a buffer of a magnitude of 10% LCR The Group’s financial stru
Slide 90: Synthesis: financial and prudential planning
CHAPTER 3 A satisfactory, recurring and increasing profitability SYNTHESIS over the duration of the MTP FINANCIAL AND A prudential situation already fully compliant with all known requirements PRUDENTIAL PLANNING Dividend pay-out policy confirmed: 50% pay-out, in cash
Slide 91: Business line strategy
CHAPTER 4 BUSINESS LINE STRATEGY
Slide 92: Retail banking
CHAPTER 4 BUSINESS LINE RETAIL BANKING STRATEGY Autres
Slide 93: Regional Banks
CHAPTER 4 BUSINESS LINE STRATEGY REGIONAL BANKS
Slide 94: A strengthened leadership in retail banking in France
A STRENGTHENED LEADERSHIP IN RETAIL BANKING IN FRANCE #1 bank in terms of loans outstanding ~7,000 branches nationwide #2 brand and #1 banking group in France in #1 financial Loans outstanding (€bn) digital services (web, social media, mobile)5 #1 multi- partner of channel 3.5m customers of
Slide 95: Identity and values that strengthen customer relationship
IDENTITY AND VALUES THAT STRENGTHEN THE CUSTOMER RELATIONSHIP Cooperative values, at the heart of our relationship A bank valued for its usefulness and its local roots #1 cooperative bank in Number of mutual shareholders at end 2014 (millions) 8.2 According to our customers, Crédit Agricole stands o
Slide 96: Three key underlying drivers of business growth
3 KEY UNDERLYING DRIVERS OF BUSINESS GROWTH STRENGTHENED CUSTOMER CAPTURE FINANCING THE ECONOMY EXPERTISE Strong customer capture capability, A dominant role in financing our Rollout of Crédit Agricole Private with an acceleration in the young customers' home projects Banking and wealth manage
Slide 97: Transformation of our model well underway
TRANSFORMATION OF OUR MODEL WELL UNDERWAY Relationship commitments implemented Focus on innovation at the heart of our action Inauguration of "Le Village by CA" in 2014, Crédit Agricole's business incubator which now Your loyalty Impartial Clear houses ~100 young innovative companies is rewarded adv
Slide 98: Renewed financial performance
RENEWED FINANCIAL PERFORMANCE Continuous growth in customer assets with a Revenues1 stable at a high level despite the strong focus on new inflows challenging environment On- and off- balance sheet Loan to deposit ratio Revenues1 2011- 2015 (€bn) customer assets (€bn) (net) CAGR CAGR Off-balance she
Slide 99: Summary of strategic ambitions through to 2019
SUMMARY OF OUR STRATEGIC AMBITIONS THROUGH TO 2019 Reaffirming our Customer-focused Universal banking model Provide all our customers with a full range of banking, insurance and real estate services Group level action Set ourselves apart through a new commercial positioning Act and behave as the tru
Slide 100: Step up the cooperative model
1 STEP UP THE COOPERATIVE MODEL Increase our number of mutual-shareholder Support young clients (18 to 30 year old) in both customers with a target of 12 million in 2019 good and bad times Our ambition 12 millions To be the bank that best supports young clients and helps them get a foot on the ladde
Slide 101: Accelerate business development
2 ACCELERATE BUSINESS DEVELOPMENT REINFORCE BUSINESS IN GAIN NEW CUSTOMERS DEVELOP REVENUE DRIVERS SPECIALISED MARKETS Strengthen our positions in all segments Accelerate momentum in high net worth Strengthen our position in consumer segment finance and death & disability Individuals: accelera
Slide 102: Full multi-channel banking model
BUILD ON A DIFFERENTIATING DISTRIBUTION MODEL: OUR FULL MULTI-CHANNEL BANKING MODEL A full-choice model: from 100% human to 100% digital Illustration of the customer journey for a home loan Agreement in Revision of % of customers Human Information principle and Subscription repayment Early interacti
Slide 103: Accelerate the digital transformation
ACCELERATE THE DIGITAL TRANSFORMATION Become leader in customer experience in France with a Mobile first strategy Re-design our 300 customer journeys covering the entire banking and insurance offer in digital and multi-channel mode through decentralised Digital Factories nationwide Continue to c
Slide 104: Summary of financial and commercial targets
SUMMARY OF FINANCIAL AND COMMERCIAL TARGETS COMMERCIAL TARGETS FINANCIAL TARGETS Penetration rates +1 pt Positive in individuals +€300m NPS1 +2.5 pts in all markets in small businesses in additional revenue synergies +1.5 pt in corporates to reach 12m +2m €2.5bn2 in 2019 mutual shareholder personal
Slide 105: BforBank
CHAPTER 4 BUSINESS LINE STRATEGY BFORBANK
Slide 106: Crédit Agricole's direct bank
CRÉDIT AGRICOLE’S DIRECT BANK STRATEGIC POSITIONING 2014-2016 MTP ACHIEVEMENTS Complementary positioning to the Growing customer base Regional Banks and LCL: a fully digital bank to meet the new expectations of mobile and ~140,000 autonomous mass affluent customers A positive, differentiating
Slide 107: Key strategic priorities
CRÉDIT AGRICOLE’S DIRECT BANK KEY STRATEGIC PRIORITIES Gradually accelerate the gaining of new customers while Maintaining our mass affluent positioning Controlling the average customer acquisition cost Continue to expand our product and service range Launch of a home loan offer in 2016 500,00
Slide 108: LCL
CHAPTER 4 BUSINESS LINE STRATEGY LCL
Slide 109: LCL, a strong positioning
LCL, A STRONG POSITIONING… An urban bank 1,880 branches 64% 65% 72 private banking centres of branches of revenue generated by branches 47 business centres in urban areas along the Paris-Lyon-Marseille corridor A leading position in €41bn several in assets under management customer 43% of 30% (Priva
Slide 110: Solid fundamentals in a period of transformation
...AND SOLID FUNDAMENTALS IN A PERIOD OF TRANSFORMATION Solid - 53% 108% fundamentals loan to deposit ratio at end 2015 drop in cost of risk from 2011-2015 (vs 129% in June 2011) And since the launch of LCL's transformation plan… Cost control Transformations Process digitalisation A network reorgani
Slide 111: Ambition 2020: premium service bank in urban areas
AMBITION 2020: MAKE LCL THE PREMIUM SERVICE BANK IN URBAN AREAS Our achievements 2014 - 2015 Our beliefs Net new customers ~+ 80,000 customers over the period 2014-2015 Digital bank and adviser's Adapting the distribution model to new practices expertise will be the winning A network of 1,200 ma
Slide 112: Commercial ambitions in 2020
OUR COMMERCIAL AMBITIONS IN 2020: SUPPORT OUR BUSINESS FRANCHISES LCL, the Premium service bank in urban areas TRADITIONAL BUSINESS FRANCHISE FRANCHISES Private Banking Corporates and Institutionals Individual and small businesses Develop a unique relationship and Strengthen our relationship dedicat
Slide 113: Make LCL the premium service bank
MAKE LCL THE PREMIUM SERVICE BANK FOR ALL ITS CUSTOMERS Strengthen LCL's Premium positioning with a rapidly evolving urban clientele Support customers through a coordinated approach to their business and personal needs, by expanding the Wealth management, Account opening, births, divorce, financing,
Slide 114: Become an intensive digital and relationship bank
BECOME AN INTENSIVE DIGITAL AND RELATIONSHIP BANK Step up relations with our customers by leveraging digital technologies A mobile first strategy for both individual and business customers : simple operations, subscriptions, notifications, adviser chat Shift from services approach to solutions appro
Slide 115: Become the #1 bank in urban areas
BECOME THE #1 BANK IN URBAN AREAS Redefine the in-branch service promise in a renovated resized network Broaden access to an expert adviser Target network 6 days a week from 8 a.m. to 10 p.m. thanks to our 10 regional Customer Relations Centres Within our branches, create an entirely seamless link
Slide 116: Significant cost savings to finance investment programme
SIGNIFICANT COST SAVINGS TO FINANCE AN AMBITIOUS INVESTMENT PROGRAMME Recurring cost savings Investment in transformation -1.5% / year €450m including exceptional of exceptional transformation investments1 transformation investments2 Convergence of retail banking IT Transformation of branches pr
Slide 117: Summary of financial targets
SUMMARY OF FINANCIAL TARGETS Make LCL the Premium service bank in urban areas 2019 FINANCIAL TARGETS Revenues €3.7bn Jump in revenues as of 2018 in 2019 Cost / income ratio -6 pts Decrease in cost / income to ~63.5%1 from 2015 to 2019 RoNE >16% Good profitability level in 2019 in 2019 1. 65% includi
Slide 118: Cariparma
CHAPTER 4 BUSINESS LINE STRATEGY CARIPARMA
Slide 119: Cariparma Group: recognised positioning and strengths
167_84 CARIPARMA GROUP: RECOGNISED POSITIONING AND STRENGTHS 210 A3 rating €5.2bn 178 143 Solid financial structure alongside One of the best rated banks in Net surplus 2013 2014 2015 rising profitability Italy by Moody’s of deposits (higher than the Italian sovereign) Underlying net income1 over lo
Slide 120: 2014-2016 MTP: significant achievements
6_85 149_85 30_85 2014-2016 MTP : SIGNIFICANT ACHIEVEMENTS Sustained growth in customer assets, +11% since end 2013, Loan to deposit ratio including +34% in life insurance and mutual funds, bringing a (2015) significant contribution to intragroup synergies Balanced growth with Controlled growth
Slide 121: 2016-2019: acceleration in business development
2016-2019: ACCELERATION IN BUSINESS DEVELOPMENT 1 2 3 Accelerate multi-channel Renewed drive to win transformation to improve Strengthen synergies with new customers customer service the rest of the Group Initiatives supported by An exceptional investment plan An operational efficiency programme
Slide 122: Renewed drive to win new customers
1 RENEWED DRIVE TO WIN NEW CUSTOMERS Accelerate growth in savings Accelerate customer capture through management home loans Create a network of 300 financial advisers Launch an e-immobilier website to win new (employees of the bank) with a high expertise in customers advice and sales provided at
Slide 123: Accelerate multi-channel transformation
2 ACCELERATE MULTI-CHANNEL TRANSFORMATION TO IMPROVE CUSTOMER SERVICE Transform our model to improve customer service Simplify processes and key services Implement a new customer relationship model Provide training programmes for advisers / change management Strengthen integration between the
Slide 124: Strengthen synergies with the rest of the Group
3 STRENGTHEN SYNERGIES WITH THE REST OF THE GROUP Reinforce our brand affiliation with the Crédit Agricole Group A change in the Cariparma Group brand is scheduled to New brand capitalise on the Crédit Agricole Group membership to be launched mid-2016 Improve our presence in the mid-corp segment b
Slide 125: Exceptional investment plan and operational efficiency
AN EXCEPTIONAL INVESTMENT PLAN AND OPERATIONAL EFFICIENCY PROGRAMME An exceptional investment plan New measures to improve operational of almost €625m efficiency Increase the proportion of investment in process Continue to rationalise the branch network optimisation, IT security and digital transfor
Slide 126: Summary of financial and commercial targets
SUMMARY OF FINANCIAL AND COMMERCIAL TARGETS Strong ambitions built on the reinforced operational efficiency and financial solidity y of the Cariparma Group since 2013 COMMERCIAL TARGETS FINANCIAL TARGETS +2% p.a. + 5% p.a. + ~3% p.a. in on-balance loan book revenue growth from 2015 to 2019 sheet dep
Slide 127: Other international retail banks
CHAPTER 4 BUSINESS LINE STRATEGY Other OTHER INTERNATIONAL RETAIL BANKS
Slide 128: Targeted growth in synergy with other banks and business lines
Autres TARGETED GROWTH IN SYNERGY WITH THE GROUP'S OTHER BANKS AND BUSINESS LINES Continue to develop business and strengthen our customer relationship while preserving operational excellence and financial solidity FINANCIAL TARGETS Step up the digital transformation of our banks to improve their cu
Slide 129: Asset gathering
CHAPTER 4 ASSET GATHERING BUSINESS LINE STRATEGY
Slide 130: Business line strategy
CHAPTER 4 BUSINESS LINE STRATEGY
Slide 131: A leading position in Europe (1/2)
A LEADING POSITION IN EUROPE IN ASSET GATHERING ACTIVITIES (1/2) A leading position in Europe coupled with a strong growth drive momentum #1 European asset manager (€985bn of AuM at end 2015) #1 bancassurer in France and Europe (~€30bn of 2015 premium income1) #2 insurer in France Crédit Agricole As
Slide 132: A leading position in Europe (2/2)
A LEADING POSITION IN EUROPE IN ASSET GATHERING ACTIVITIES (2/2) Business lines with high, recurring profitability 2015 FINANCIAL INDICATORS of which Asset gathering of which (including CA Indosuez WM, Asset Insurance excluding CA Immobilier) management Net income €1,803m €1,181m €519m2 RoNE ~22%1 ~
Slide 133: Crédit Agricole Assurances: #1 bancassurer in Europe
A LEADING POSITION IN EUROPE CRÉDIT AGRICOLE ASSURANCES: #1 BANCASSURER IN EUROPE, LEADER IN FRANCE IN ITS MARKETS Savings/retirement 79% 83% in France ~€24.0bn €30.4bn (i.e. €25.3bn) Death & disability/creditor/group 10% ~€3.0bn in premium income in 20151 17% International insurance (i.e. €5.1bn) P
Slide 134: Crédit Agricole Assurances: strong growth
A LEADING POSITION IN EUROPE CRÉDIT AGRICOLE ASSURANCES: STRONG GROWTH IN BUSINESS AND RESULTS Sustained growth in savings/retirement business Premium income up ~9% p.a. on average from 2013 to 2015 AuM in €bn Premium income2 (€bn) +6% +4% +14% +3% Property & casualty 235 249 260 29.4 30.4 25.7 Deat
Slide 135: Amundi today - key data
A LEADING POSITION IN EUROPE AMUNDI TODAY – KEY DATA €985bn AuM, #1 in Europe, #10 globally 2015 KEY FIGURES The leading European Created in 2010 through the merger of CAAM and SGAM asset manager A global player, present in 30 countries across 5 continents €985bn in assets under An establish
Slide 136: Amundi among the world's top 10 asset managers
A LEADING POSITION IN EUROPE AMUNDI: AMONG THE WORLD'S TOP 10 ASSET MANAGERS Assets under management (€bn) at 31/12/2014 3,844 European asset managers 2,577 €985bn US asset managers 2,023 at 31/12/2015 1,595 1,407 1,267 1,167 1,163 968 8781 846 772 755 736 727 722 704 655 643 623 Invesco Natixis GAM
Slide 137: Amundi: best-in-class cost/income ratio
A LEADING POSITION IN EUROPE AMUNDI: A BEST-IN-CLASS COST/INCOME RATIO 2015 cost/income ratios of the main global asset managers 79,4% 76,7% 69,0% 69,4% 65,2% 59,4% 61,9% 1 52,4% 53,5% Source: Companies, latest annual reports N.B.: Cost / income ratio = net revenues/operating expenses. Figures are a
Slide 138: Amundi: successful merger providing growth platform
A LEADING POSITION IN EUROPE AMUNDI: A SUCCESSFUL MERGER PROVIDING A PLATFORM FOR GROWTH +€315bn in AuM from 2009 to 2015 Strong momentum in net inflows Assets under management (€bn) Net inflows (€bn) 79.9 CAGR Retail 9.6% CAGR 985 Institutionals 41.5 0.1% 878 28.6 749 792 32.5 705 670 671 15.9 38.9
Slide 139: Amundi: history of profitable growth
A LEADING POSITION IN EUROPE AMUNDI: A HISTORY OF PROFITABLE GROWTH Amundi's profitability from 2013 to 2015 (€m) +7.7% +8.6% 1 519 482 444 1 402 372 Net income 325 Net income Group share 2013 2014 2015 1. Excluding IPO expenses 139
Slide 140: Real estate: comprehensive offer for wealth management
A LEADING POSITION IN EUROPE REAL ESTATE: A COMPREHENSIVE OFFER SERVING OUR CUSTOMERS' WEALTH MANAGEMENT NEEDS Real estate at the heart of Crédit Agricole Group Leader in real estate funds #5 property manager in Leading real estate en France France investor in France €17.2bn ~290,000 ~€30bn in asset
Slide 141: Our ambition: accelerate growth
OUR AMBITION: ACCELERATE GROWTH 3 growth drivers 1 2 3 Base our growth on a Fully exploit our synergy Step up the momentum renewed wealth advisory potential specific to each activity approach 141
Slide 142: Renewed advisory approach: individual customers
1 A RENEWED CUSTOMER ADVISORY APPROACH INDIVIDUAL CUSTOMERS Individual customers: an overall wealth advisory approach, a renewed offer INDIVIDUAL CUSTOMERS Conseil global et personnalisé ADVISER Range of savings and investment solutions On-balance sheet Life insurance Real estate Death & disability
Slide 143: Renewed advisory approach: corporate and institutional clients
1 A RENEWED CUSTOMER ADVISORY APPROACH CORPORATE AND INSTITUTIONAL CLIENTS Corporate and institutional clients: the partner of choice for group pensions, employee savings, death & disability and health CORPORATE/INSTITUTIONAL CLIENTS Analysis - Advice Group Employee savings Death & disability Health
Slide 144: Stronger synergies in asset gathering (1/3)
2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (1/3) Adapt our range of savings solutions to the Expand the share of unit-linked contracts in savings/retirement new regulatory and market environment and insurance AuM by +5 points by end 2019 fully exploit the synergy p
Slide 145: Stronger synergies in asset gathering (2/3)
2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (2/3) Be the partner of choice to companies for their group pension, employee savings, death & disability and health plans An overall offer A comprehensive offer including all pension products (Article 83 and 39 pensions,
Slide 146: Stronger synergies in asset gathering (3/3)
2 STRONGER SYNERGIES BETWEEN ASSET-GATHERING ENTITIES AND THE REST OF GROUP (3/3) Use our real estate expertise to serve our customers' wealth management needs INDIVIDUALS Strengthen our position as #1 retail asset gatherer in France Real estate funds Develop sales of new properties to reach a t
Slide 147: Insurance growth strategy
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Our ambition: become the leading insurer in France Death & disability/ creditor/ Savings/retirement Property & casualty group insurance Become the #1 life insurer in Intensify the growth Scale up the creditor France and
Slide 148: Savings/retirement growth strategy
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Become the #1 life insurer in France and a major player y in g group pension plans SAVINGS/RETIREMENT Savings: roll out our advisory approach CAGR Develop savings and investment solutions in synergy with +2,3% the as
Slide 149: Scale up the creditor insurance business
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Scale up the creditor insurance business Creditor insurance: increase the magnitude of this business +~35% premium income2 from death Insource group insurance contracts for the Regional & disability, creditor and group
Slide 150: Property and casualty: intensify growth momentum
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Property and Casualty: intensify the growth momentum in all customer segments g Step up current business momentum: Individuals + ~27% premium income4 Target growth of 1.5 pt in market share in Car and from 2015 to 2019
Slide 151: Insurance: commercial and financial targets
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE INSURANCE GROWTH STRATEGY Our ambition: become the leading insurer in France COMMERCIAL TARGETS FINANCIAL TARGETS +10% +5 pts 2015 2015 2019 Savings pro forma2 Retirement growth in AuM growth in share of unit- Contribution to (€285bn in 2019) lin
Slide 152: Asset management growth strategy
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Our ambition: strengthen our leadership Retail: continue our Institutionals: accelerate Seek value-creating development our growth acquisitions 152
Slide 153: Retail: continue our development
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Retail: continue our development THE REFERENCE PLAYER FOR RETAIL ASSET MANAGEMENT IN EUROPE AND ASIA Assets under management Customers 31/12/2015 CAGR 2012-2015 French retail Take full advantage of the €102bn -1.6
Slide 154: Institutionals: step up our growth
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Institutionals: step up our growth A SOLID, DIVERSIFIED AND GROWING INSTITUTIONAL CLIENT BASE Institutionals & Sovereigns Assets under management Institutional, corporate and employee savings schemes 31/12/2015 CA
Slide 155: Seek value-creating acquisitions
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Seek value-creating acquisitions Boost organic growth with external acquisitions offering major revenue enhancement and cost-savings opportunities, based on one or more of Recent external acquisitions the followin
Slide 156: Asset management: commercial and financial targets
3 STEP UP THE MOMENTUM SPECIFIC TO EACH BUSINESS LINE ASSET MANAGEMENT GROWTH STRATEGY Our ambition: strengthen our leadership COMMERCIAL TARGETS FINANCIAL TARGETS 2015-2019 Retail Net inflows +€100bn Cost / income ratio in total over 2016-2019 < 55% incl. €40bn from joint ventures (2019) Institutio
Slide 157: Key financial targets
KEY FINANCIAL TARGETS 2019 FINANCIAL TARGETS Sustained business momentum while ensuring growth in the business line's already high profitability Asset gathering of which of which 2015 - 2019 (including CA Indosuez WM, Insurance1 Asset management excluding CA Immobilier) Business €285bn €160bn indica
Slide 158: Business line strategy
CHAPTER 4 BUSINESS LINE STRATEGY
Slide 159: Well-positioned to capture market growth
WELL-POSITIONED TO CAPTURE MARKET GROWTH STRATEGIC POSITIONING 2014-2016 MTP ACHIEVEMENTS €110bn1 in assets under management AuM target achieved a year ahead of schedule A wealth management activity in France mainly serving customers of the Regional Banks A historically strong presence in Europe
Slide 160: Consolidate position as a European leader in wealth management
CONSOLIDATE OUR POSITION AS ONE OF THE EUROPEAN LEADERS IN WEALTH MANAGEMENT KEY STRATEGIC PRIORITIES Provide an all-encompassing approach to wealth management, to meet both the business and personal needs of our customers Enhance our offer in synergy with the Group's business lines (corporate fin
Slide 161: Large customers
CHAPTER 4 LARGE CUSTOMERS BUSINESS LINE STRATEGY
Slide 162: CIB: global businesses with strong European focus
CIB: GLOBAL BUSINESSES WITH A STRONG EUROPEAN FOCUS 2015 business revenues1 (€4.1bn) by region ~30% ~30%2 ~15% < 5% ~20% x% Breakdown of business revenues Regional platform Branch, subsidiary or representative office on a coverage basis About 60% of CACIB's business revenues come from France and oth
Slide 163: Asset servicing: European footprint
ASSET SERVICING: AMONG THE PLAYERS WITH AN EUROPEAN FOOTPRINT CACEIS European presence A leader in France and Europe Assets under custody: €2,327bn at end 2015 Historical presence Funds under administration: €1,477bn at end 2015 New depository banks A full service offering Operational efficiency dem
Slide 164: CIB: delivered performances
CIB: DELIVERED PERFORMANCES 2014-2016 MTP: activities’ growth in line with … resulting in a ~32% increase in underlying net targets… income Group share between 2013 and 2015 Revenues (€bn)1 NIGS (€bn)1,2 MTP Target +3% +3% Reported +7% +5% +32% 4.0 4.2 3.8 1.17 1.03 0.78 2013 2014 2015 2013 2014 201
Slide 165: Asset servicing: good momentum
ASSET SERVICING: GOOD MOMENTUM IN AN ENVIRONMENT OF LOW INTEREST RATES AND REGULATORY CHANGES 2014-2016 MTP achievements : healthy fundamentals with strong recurring revenues and well controlled costs Fee income (€m) Costs (€m) net of correspondent costs excluding taxes and levies (of which SRF) +5%
Slide 166: Business customer strategy
BUSINESS CUSTOMER STRATEGY FINANCIAL STRUCTURED MID-CORPS1 CORPORATES INSTITUTIONS FINANCE Reinforce the weight of Maintain leadership in Strengthen the support Selective focus on financial institutions structured finance to the development of growth in Corporate the mid-corp segment segment Expan
Slide 167: Business line strategy: expert and industrial services
BUSINESS LINE STRATEGY Rebalancing expert services that already exists and a strengthening of industrial service offer A comprehensive CACIB/CACEIS offering based on two complementary pillars EXPERT SERVICES INDUSTRIAL SERVICES "Spread existing expertise to strengthen the "Accelerate these businesse
Slide 168: Revenue growth of ~+2% p.a. over the plan period
REVENUE GROWTH OF ~ +2% P.A. OVER THE PERIOD OF THE PLAN Revenues (€bn) Structured finance: maintain the current momentum in Coverage and synergies with CACEIS CAGR ~ +2% 5.5 Financing activities International trade and transaction banking: unify international trade businesses and invest in tran
Slide 169: Financing activities: target revenues of ~€2.3bn
FINANCING ACTIVITIES: TARGET REVENUES OF ~ €2.3BN I.E. A CAGR OF ~ +1.4% FROM 2015 TO 2019 Financing activities Efficient growth Structured finance: World # 1 – Bookrunner – Aircraft finance1 in 2014–15 a leadership position “Bank of the Year 2015 – Americas” (Project Finance International) Wo
Slide 170: Capital markets and investment banking: target revenues ~€2.4bn
CAPITAL MARKETS AND INVESTMENT BANKING: TARGET REVENUES OF ~ €2.4BN I.E. A CAGR OF ~ +3.8% BETWEEN 2015 AND 2019 Banque Capital markets de marchéand et investment d'investissement banking La poursuite Continueddugrowth schémamomentum de croissance Capital markets activities: a recognised 1.5% mark
Slide 171: Asset servicing: target revenues of ~€800m
ASSET SERVICING: TARGET REVENUES OF ~ €800M I.E. A CAGR OF ~ +2% BETWEEN 2015 AND 2019 Asset servicing Broaden the offer and synergies with CACIB Confirm our position as a leading player in Europe Private Equity, Real Estate and Securitisation (PERES) Strengthen development synergies in the Join
Slide 172: Proactive optimisation of RWAs and cost base
PROACTIVE OPTIMISATION OF RWAS AND COST BASE TO OFFSET IMPACTS OF NEW REGULATORY REQUIREMENTS Proactive optimisation of RWAs Operational efficiency plan Selective review of CACIB client portfolio to free up €10bn of RWAs (out of a total reduction Investments to converge CACIB and CASA of €12bn)
Slide 173: Sustained growth in profitability: 2019 targets
SUSTAINED GROWTH IN PROFITABILITY 2019 FINANCIAL TARGETS 2015 2019 target Steady growth in revenues both for CACIB and Revenues €5.0bn ~ +2% p.a.1 CACEIS Costs €-3.1bn ~ 0% p.a.1 Strict cost control both within CACIB and CACEIS Active management of scarce resources to offset RWAs €132bn €134bn
Slide 174: Summary - Large customers
SUMMARY – LARGE CUSTOMERS A new business line bringing synergies Solid commercial position and client mix rebalanced towards financial institutions Low-risk strategy Efficient management of new regulatory constraints that will impact CIBs (~€12bn of RWAs in 2019 related to increased regulatory press
Slide 175: Specialised financial services
CHAPTER 4 SPECIALISED FINANCIAL BUSINESS LINE SERVICES STRATEGY
Slide 176: Specialised financial services
SPECIALISED FINANCIAL SERVICES Activities in synergy with the Group, Activities that have significantly with their own growth dynamics adjusted in the past A selective boast in growth Improvement in profitability thanks to cost cutting efforts and the adaptation of the model to capital and liquidity
Slide 177: CACF
CHAPTER 4 BUSINESS LINE STRATEGY CACF
Slide 178: CACF: first class European player
CACF: FIRST CLASS EUROPEAN PLAYER Operations in 21 countries, with 93% of the managed loan book in Europe €71.2bn managed loan book at end 2015 CACF Netherlands CreditPlus Bank 3 car finance joint ventures €2.7bn €2.6bn €17.2bn CACF France €25.8bn €2.8bn Agos €15.2bn €1.0bn Credibom €1.1bn Wafasalaf
Slide 179: Diversified markets and business models
DIVERSIFIED MARKETS AND BUSINESS MODELS Direct channel Distribution through CA Group retail banks Car finance joint ventures and partnerships Autres partenariats : Partnerships in consumer goods Financial institutions 179
Slide 180: CACF builds on solid foundations
CACF NOW BUILDS ON SOLID FOUNDATIONS AND REINFORCED LINKS WITH THE GROUP Renewed organic growth and a good execution of 2014-2016 MTP targets 2013 2014 2015 Managed loan 69.9 68.8 71.2 Increase in synergies book of which €13.5bn in loan book managed for the Group in 2015 consolidated (€bn) 35.2 33
Slide 181: Five strategic areas to support 2020 ambition (1/3)
5 STRATEGIC AREAS TO SUPPORT OUR 2020 AMBITION (1/3) Ambition 2020: development built on digitalisation, strengthening profitability and optimising scarce resources 1 2 3 Accelerate our digital Extend Group synergies transformation to improve Strengthen our car finance beyond current scope customer
Slide 182: Five strategic areas to support 2020 ambition (2/3)
5 STRATEGIC AREAS TO SUPPORT OUR 2020 AMBITION (2/3) 1 2 3 EXTEND GROUP SYNERGIES ACCELERATE OUR DIGITAL STRENGTHEN OUR CAR FINANCE BEYOND CURRENT SCOPE TRANSFORMATION AND OTHER PARTNERSHIPS Continue to develop our synergies Complete digital optimisation of our Consolidate our portfolio of car
Slide 183: Five strategic areas to support 2020 ambition (3/3)
5 STRATEGIC AREAS TO SUPPORT OUR 2020 AMBITION (3/3) 4 5 TRANSFORM OUR GROUP SECURE OUR LIQUIDITY TO IMPROVE OUR INDUSTRIAL EFFICIENCY IN THE LONG TERM AND OPTIMISE OUR PROFITABILITY Make strategic investments for our future competitiveness: Continue our funding diversification policy (new Agos
Slide 184: Summary of 2019 financial and commercial targets
SUMMARY OF 2019 FINANCIAL AND COMMERCIAL TARGETS Ambition 2020: growth built on digitalisation, strengthening profitability and optimising scarce resources COMMERCIAL TARGETS FINANCIAL TARGETS €82bn ~ +2.5% ~ -0.5% managed loan book revenues p.a. costs p.a. of which 44% ~ 15% < 190 bps RoNE cost of
Slide 185: CAL&F
CHAPTER 4 BUSINESS LINE STRATEGY CAL&F
Slide 186: A sound business with a restored profitability path
A SOUND BUSINESS WITH A RESTORED PROFITABILITY PATH TO SERVE THE GROUP STRATEGIC POSITIONING 2014-2016 MTP ACHIEVEMENTS Strong domestic positions Reinforced integration of leasing and factoring businesses with the in France, Poland and Group's banks: share of CAL&F’s Group-driven production up fro
Slide 187: Growth linked to Group's banks and improved profitability
A BUSINESS COMBINING GROWTH LINKED TO THE GROUP’S BANKS AND IMPROVED PROFITABILITY KEY STRATEGIC PRIORITIES Grow business volumes generated jointly with Group entities Step up synergies with Regional Banks and LCL in the mid-corp market In Restore leadership in equipment leasing in the Agri-busi
Slide 188: Summary of commercial and financial targets
SUMMARY OF COMMERCIAL AND FINANCIAL TARGETS Strengthen profitability and optimise scarce resources COMMERCIAL TARGETS FINANCIAL TARGETS 35% <50% market share in renewables in France cost/income ratio €22bn -35 points in leasing and factoring RWA/consolidated outstandings ratio new business (+ 26% vs
Slide 189: Summary - Specialised financial services
SUMMARY – SPECIALISED FINANCIAL SERVICES A deep and quick adaptation following the crisis A selective growth strategy ...based on Group synergies and digitalisation ...and framed by a cautious risk approach The optimisation of assets, liquidity and profitability 189