Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — Q1 2018 Earnings Presentation

42 slides from Credit Agricole SA's earnings presentation, Jul 12, 2018

  1. Slide 1: First Quarter 2018 Results

    FIRST QUARTER 2018 RESULTS 1 l 2018 FIRST-QUARTER RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER  Financial information on Crédit Agricole S.A. and Crédit Agricole Group for the first quarter 2018 comprises this presentation and the attached press release NOTE and financial report which are available on the website https://www.credit-agricole.com/en/finance/finance/financial-publica

  3. Slide 3: Agenda

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 3 l 2018 FIRST-QUARTER RESULTS

  4. Slide 4: Introduction: Economic environment: solid growth

    INTRODUCTION Economic environment: solid growth France, Italy, Euro zone – Real GDP growth France – Household and business leaders’ confidence % 110 2.5 2.4 1.9 2.0 2.1 2.1 2.0 2.0 1.9 LT average 1.6 1.7 1.8 1.8 1.1 1.5 1.6 1.4 100 1.4 1.0 1.0 0.8 1.0 0.7 0.6 0.2 0.2 -0.2 90 2010 2011 2012 2013 2014

  5. Slide 5: Introduction: Market environment

    INTRODUCTION Market environment Interest rates, in Euros (%) France – Germany 10-year spread (bp) ECO forecasts 250 ECO forecasts 1.8 (%) Avg 10-year OAT rate Q1-18: for 2019: Avg spread Q1-18: 27bp for 2019: 1.6 0.887% (-9bp Q1/Q1) 200 (-35bp Q1/Q1) 1.4 1.2 150 0.9 0.7 100 0.5 0.3 50 0.0 -0.2 0 -0.

  6. Slide 6: Key figures

    INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q1-18 Q1-18 €1,429m Net income Group share - stated €856m -10.7% Q1/Q1 +1.2% Q1/Q1 €1,352m Net income Group share - underlying (1) (2) €788m -18.3% Q1/Q1 -12.1% Q1/Q1 -10.1% at constant scope and forex (3) +4.8% at constant scope an

  7. Slide 7: Items affecting the growth of NIGS (Q1/Q1)

    CRÉDIT AGRICOLE GROUP INTRODUCTION Items affecting the growth of NIGS (Q1/Q1) CRÉDIT AGRICOLE S.A.  Disposal of non-core entities in 2017 -€143m  Significant contributions to NIGS in Q1-17: Eurazeo (€77m) and BSF (€67m) Q1/Q1 loss of  Decline in the share of contributions of equity-accounted enti

  8. Slide 8: Key messages

    CRÉDIT AGRICOLE GROUP INTRODUCTION Key messages CRÉDIT AGRICOLE S.A.  Strong activity in numerous business lines  High level of net inflows, of good quality in Asset gathering +4.8%  Increased equipment rates and volumes in Retail banking and Specialised financial services increase Q1/Q1 in under

  9. Slide 9: Strong dynamics in all activities in Q1-18

    CRÉDIT AGRICOLE GROUP INTRODUCTION Strong dynamics in all activities in Q1-18 RETAIL BANKING Regional Banks LCL Italy*  Strong credit activity: slowdown in Home loans +7.7% Home loans +4.7% Home loans +6.0% home lending and pick-up in Consumer loans +9.9% Corporate loans +9.1% Corporate loans +7.8%

  10. Slide 10: Agenda: Crédit Agricole S.A.

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 10 l 2018 FIRST-QUARTER RESULTS

  11. Slide 11: Specific items of Q1-18: +€68m in NIGS

    CRÉDIT AGRICOLE S.A. RESULTS Specific items of Q1-18: +€68m in NIGS  Net change in value of goodwill: NIGS impact of +€66m  Additional negative goodwill on the acquisition of the three Italian banks: +€86m before minority interests  Largely attributable to the treatment of goodwill under IFRS3 

  12. Slide 12: Increase in underlying NIGS Q1/Q1 at constant scope and forex

    CRÉDIT AGRICOLE S.A. RESULTS Increase in underlying NIGS Q1/Q1 at constant scope and forex(2) Q1/Q1 change in underlying NIGS(1), by business line -12.1% 896 +47 845 856 (51) +42 788 (26) (22) (151) +68  Unfavourable Q1/Q1 comparison, especially for LC  Decrease in underlying NIGS focused on the L

  13. Slide 13: Good resistance of underlying revenues

    CRÉDIT AGRICOLE S.A. RESULTS Good resistance of underlying revenues(1) at constant scope and forex(2) Q1/Q1 change in underlying revenues(1), by business line +2.5% +3  Positive impact from Pioneer, challenging capital +25 +48 4,900 +9 4,909 4,700 4,779 +217 markets environment (172) (79)  AG: sco

  14. Slide 14: Excellent control of underlying costs

    CRÉDIT AGRICOLE S.A. RESULTS Excellent control of underlying costs, down at constant scope and forex(2) excl. SRF Q1/Q1 change in underlying costs(1), by business line +3.7%  Costs down significantly at constant scope(2) 3,401  Scope effects(2): Pioneer (equiv. +€132m), 3 Italian banks (+€51m 3,22

  15. Slide 15: Cost of credit risk: low level, further decrease

    CRÉDIT AGRICOLE GROUP RESULTS Cost of credit risk: low level, further decrease CRÉDIT AGRICOLE S.A. Cost of risk / outstandings (in basis points over a rolling four-quarter period) 41 41 41 39  Crédit Agricole S.A.(1) 37 31 35 29bp  Low and stable  Below MTP assumption of 50bp 30 31 cost of credi

  16. Slide 16: Well managed risks in all businesses

    CRÉDIT AGRICOLE S.A. RESULTS Well managed risks in all businesses Cost of risk / outstandings (in basis points over a rolling four-quarter period) 140 140  CACF: €90m in Q1-18, -22bp Q1/Q1 133 134 134 123 116 110 112  Low recurring cost of risk and positive impact from the disposal of non-performi

  17. Slide 17: Asset gathering

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Asset gathering Assets under management(1) (AuM) (€bn) Contribution to Crédit Agricole S.A. NIGS P&L Q1-18 Q1-17 ∆ Q1/Q1 €m +21.9% Mark et & underlying underlying underlying forex effects Insurance 276 268 +2.8% 1,868 +39.8 +1.6 +2.0 1,895 1,555 163 162 Asse

  18. Slide 18: 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 Q1-18 Q1-17 ∆ Q1/Q1 Premium income (€bn) Net new inflows (€bn) €m underlying underlying underlying +7.3% Q1/Q1 UL: +17.5% Q1/Q1 +2.

  19. Slide 19: 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 Q1-18 Q1-17 ∆ Q1/Q1 +28.8% €m underlying underlying underlying 18.1 21.7 - 13.5 1,452 Revenues 644 432 +49.1% 1,426 Retail Market 235 Treasury Operating expen

  20. Slide 20: 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 Q1-18 Q1-17 ∆ Q1/Q1 €m underlying underlying underlying +2.7% Revenues 858 904 (5.0%) 184.5 186.7 187.2 185.8 Operating expenses

  21. Slide 21: 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 Q1-18 Q1-17 ∆ Q1/Q1 €m underlying underlying underlying +20.8% Revenues 471 400 +17.6% 76.1 75.7 3.9 4.0 Operating expe

  22. Slide 22: 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 Q1-18 Q1-17 ∆ Q1/Q1 €m underlying underlying underlying +4.3%(1) Revenues 207 206 +0.2% +2.7%(1) Operating expens

  23. Slide 23: 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)(2) Gross consolidated loans (€bn) €m Q1-18 Q1-17 ∆ Q1/Q1 underlying underlying underlying Revenues 688 685 +0.4% +5.3% +

  24. Slide 24: 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 Q1-18 Q1-17 ∆ Q1/Q1 €m (11.5%) underlying underlying underlying 1,493 Revenues 1,322 1,493 (11.5%) 1,399 1,322 Operating expenses excl.SRF (782) (813) (3.7%)

  25. Slide 25: Corporate centre

    CRÉDIT AGRICOLE S.A. ACTIVITY AND RESULTS Corporate centre Change in quarterly underlying(1) NIGS (€m) Contribution to Crédit Agricole S.A. P&L ∆ Q1/Q1 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 €m Q1-18 Q1-17 (m€) Revenues (112) (166) +54 Operating expenses excl. SRF (190) (216) +25 SRF

  26. Slide 26: Agenda: Crédit Agricole Group

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 26 l 2018 FIRST-QUARTER RESULTS

  27. Slide 27: Regional Banks

    CRÉDIT AGRICOLE GROUP ACTIVITY AND RESULTS Regional Banks Activity indicators (€bn) Contribution to Crédit Agricole Group P&L Customer savings Loans outstanding Q1-18 Q1-17 ∆ Q1/Q1 €m underlying underlying underlying +3.7% Revenues 3,358 3,529 (4.8%) 674 675 Operating expenses excl.SRF (2,200) (2,17

  28. Slide 28: Agenda: Financial Solidity

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 28 l 2018 FIRST-QUARTER RESULTS

  29. Slide 29: Fully-loaded CET1 ratio at 11.4% at March 2018

    CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Fully-loaded CET1 ratio at 11.4% at 31 March 2018 Change in fully-loaded CET1 ratio (bp) Change in Risk Weighted Assets (RWA) (€bn) 11.7% +27bp 11.4% +0.8% ​ ​ 300 294 293 296 299 -16bp -31bp -6bp 8 7 10 11 11 -10bp 27 28 28 Market risk 28 29 Operational risk

  30. Slide 30: Fully-loaded CET1 ratio at 14.6% at 31 March 2018

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Fully-loaded CET1 ratio at 14.6% at 31 March 2018 Change in fully-loaded CET1 ratio (bp) Change in Risk-weighted assets (RWA) (€bn) +0.6% 524 520 517 522 525 14.9% +18 pb ​ ​ ​ 14.6% 8 8 11 11 45 45 7 47 45 47 ​ -39 pb -2 pb -3 pb Market risk Operational risk

  31. Slide 31: 62% of MLT market funding programme completed at end-April

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY 62% of Crédit Agricole S.A.’s MLT market funding programme completed at end-April Crédit Agricole Group - 2018 MLT market issues Crédit Agricole S.A. - 2018 MLT market issues Breakdown by issuer: €14.6bn at 30/04/18 Breakdown by segment: €7.4bn at 30/04/18 Se

  32. Slide 32: Liquidity and funding

    CRÉDIT AGRICOLE GROUP FINANCIAL SOLIDITY Liquidity and funding Liquidity reserves at 31/03/18 (€bn) 244 Assets eligible to Central Banks after ECB haircut (immediate access) 205 48 10 Self-securitisations eligible to Central Banks Reverse repos & other ST 9 17 Other non-HQLA securities (1) Securitie

  33. Slide 33: Agenda: Conclusion

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 33 l 2018 FIRST-QUARTER RESULTS

  34. Slide 34: Conclusion: Very good activity, operating costs under control

    CRÉDIT AGRICOLE GROUP CONCLUSION Very good activity, operating costs under control CRÉDIT AGRICOLE S.A. and cost of risk down  Integration of Pioneer and the three Italian banks ahead of initial schedule  Negative scope effect of the disposal in 2017 of non-core entities (BSF, Eurazeo)  Business

  35. Slide 35: Agenda: Appendix

    1 INTRODUCTION p. 3 2 CREDIT AGRICOLE S.A. p. 10 3 CREDIT AGRICOLE GROUP p. 26 4 FINANCIAL SOLIDITY p. 28 5 CONCLUSION p. 33 6 APPENDIX p. 35 35 l 2018 FIRST-QUARTER RESULTS

  36. Slide 36: Alternative Performance Measures – Specific items Q1-18

    CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – Specific items Q1-18 Q1-18 Q1-17 Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS Issuer spreads (CC) - - (8) (4) DVA (LC) 5 4 (48) (31) Loan portfolio hedges (LC) 4 3 (24) (15) Home Purchase Savings Plans (FRB) - - - - Hom

  37. Slide 37: Reconciliation between stated and underlying results – Q1-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q1-18 Q1-18 Q1-18 Q1-17 Specific Q1-17 ∆ Q1/Q1 ∆ Q1/Q1 Q1-17 Q1-18 Q1-18 Q1-18 ∆ Q1/Q1 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. adjusted like-for

  38. Slide 38: Alternative Performance Measures – specific items Q1-18 (Group)

    CRÉDIT AGRICOLE GROUP APPENDIX Alternative Performance Measures – specific items Q1-18 Q1-18 Q1-17 Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS Issuer spreads (CC) - - (13) (7) DVA (LC) 5 4 (48) (31) Loan portfolio hedges (LC) 4 3 (24) (16) Home Purchase Savings Plans (CC) - - 2 1 To

  39. Slide 39: Reconciliation between stated and underlying results – Q1-18 (Group)

    CRÉDIT AGRICOLE GROUP APPENDIX Reconciliation between stated and underlying results – Q1-18 Q1-18 Q1-18 Q1-17 Specific Q1-17 ∆ Q1/Q1 ∆ Q1/Q1 Q1-17 Q1-18 Q1-18 ∆ Q1/Q1 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues

  40. Slide 40: Data per share

    CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q1-18 Q1-17 Q1-18/Q1-17 Net income Group share - stated 856 845 +1.2% - Interests on AT1, including issuance costs, before tax (131) (141) -6.9% NIGS attributable to ordinary shares - stated [A] 724 704 +2.8% Average number shares in issue, excluding

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  42. Slide 42: Press and investor relations contacts

    CREDIT 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

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