Credit Agricole SA · EURONEXT:ACA

Credit Agricole SA — Kepler Cheuvreux Autumn conference 2018

48 slides from Credit Agricole SA's conference presentation, Sep 12, 2018

  1. Slide 1: Kepler Cheuvreux Autumn conference, Paris, 12 September 2018

    Kepler Cheuvreux Autumn conference, Paris, 12 September 2018

  2. Slide 2: Disclaimer

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

  3. Slide 3: Agenda

    1 STRATEGY AND MTP UPDATE p. 3 2 Q2-18 RESULTS p. 17 3 SOLVENCY AND CAPITAL PLANNING p. 35 4 CONCLUSION p. 39 5 APPENDIX p. 41 3 l ROADSHOW PRESENTATION – SEPTEMBER 2018

  4. Slide 4: Key messages: hybrid structure, mutual and listed

    KEY MESSAGES 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 insurer

  5. Slide 5: Key messages: shareholder-friendly structure

    CRÉDIT AGRICOLE GROUP KEY MESSAGES 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 in  Di

  6. Slide 6: 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 Group Net income, with no business line accounting for more than 30% of Net income

  7. Slide 7: A stable, diversified and profitable business model: RoNE and RoTE

    CRÉDIT AGRICOLE S.A. BUSINESS MODEL A stable, diversified and profitable business model Annualised underlying H1-18 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 H1-18 underlying annualised 25.2% >16% >

  8. Slide 8: Major achievements since launch of MTP: 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 €3,545m  Strong synergy potential – €180m before tax – thanks

  9. Slide 9: Zoom on Pioneer transaction

    CRÉDIT AGRICOLE GROUP ZOOM ON PIONEER TRANSACTION Integration of Pioneer on 3 July 2017 Amundi: AuM of €1,466bn at end-June 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 rebalan

  10. Slide 10: Zoom on acquisition in Italy

    CRÉDIT AGRICOLE GROUP ZOOM ON ACQUISITION IN ITALY Acquisition of 3 regional banks in Italy enabling growth of the franchise and results Market shares in Italy post transaction  Integration to International Retail Banking Italy +1pp  Merger of all 3 legal entities with Cariparma before end-Septemb

  11. Slide 11: Major achievements since launch of MTP: disposal of non-core assets

    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

  12. Slide 12: MTP update: synergy initiatives and client positioning

    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

  13. Slide 13: Digital: success of new products and digital services

    CRÉDIT AGRICOLE GROUP DIGITAL Success of new products and digital services and development of usage New services and digitalisation Rise of new applications 50,000 customers since launch,  80% of whom were not previously customers 228m 74% opened in-branch; in 13% of cases the connections per month

  14. Slide 14: MTP update: innovation at the heart of the Group's strategy

    CRÉDIT AGRICOLE GROUP MTP UPDATE Progress in MTP - Innovation at the heart of the Group’s strategy Create & develop Experiment & learn • Around 30 POCs(1) in progress surrounding artificial by CA intelligence • Launch of a start-up studio, “La Fabrique by CA”, for the creation • Collective experimen

  15. Slide 15: MTP update: 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

  16. Slide 16: MTP update: 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

  17. Slide 17: Agenda

    1 STRATEGY AND MTP UPDATE p. 3 2 Q2-18 RESULTS p. 17 3 SOLVENCY AND CAPITAL PLANNING p. 35 4 CONCLUSION p. 39 5 APPENDIX p. 41 17 l ROADSHOW PRESENTATION – SEPTEMBER 2018

  18. Slide 18: Key messages: highest quarterly profits since IPO

    CRÉDIT AGRICOLE GROUP KEY MESSAGES Highest quarterly profits since IPO CRÉDIT AGRICOLE S.A.  Highest quarterly profit(1) since IPO for CASA and for CAG  Contribution from all of CASA’s business lines and Corporate Centre, in particular high level of profit in Corporate & Investment Banking  Very

  19. Slide 19: Results: key figures

    RESULTS Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q2-18 H1-18 Q2-18 H1-18 €2,076m €3,505m Net income Group share - stated €1,436m €2,292m -1.4% Q2/Q2 -5.4% H1/H1 +6.4% Q2/Q2 +4.4% H1/H1 €2,056m €3,408m Net income Group share - underlying (1) (2) €1,418m €2,205m +2% Q2/Q2 -7.2% H1/H1 +19

  20. Slide 20: Strong dynamics in all activities in Q2-18

    CRÉDIT AGRICOLE GROUP RESULTS Strong dynamics in all activities in Q2-18  Strong credit activity: pick-up in corporate and +9% RETAIL June/June increase in business lending and slowdown in home lending both corporate lending BANKING confirmed for both the Regional Banks and LCL  Asset gathering: r

  21. Slide 21: Net income Group share: sharp rises Q2/Q2 and H1/H1

    CRÉDIT AGRICOLE S.A. RESULTS Net income Group share: sharp rises(1) Q2/Q2 and H1/H1 Q2/Q2 and H1/H1 change in underlying Net income Group share(1), by business line +19.6% +68 1,418 1,436 1,350 +165 1,185 +9 +28 +109 +19 +23.8% +18 Q2/Q2 increase in  All business lines and CC contributed underlying

  22. Slide 22: Revenues: up sharply Q2/Q2

    CRÉDIT AGRICOLE S.A. RESULTS Revenues: up sharply(1) Q2/Q2 despite a challenging market environment Q2/Q2 and H1/H1 change in underlying revenues(1), by business line +11.4% +110 5,146 +25 5,171 4,708 +89 4,619 +237 +68 +5 +106 +7.1% Q2/Q2 increase in underlying revenues  All business lines and CC

  23. Slide 23: Costs: C/I ratio down excl. SRF Q2/Q2

    CRÉDIT AGRICOLE S.A. RESULTS Costs: C/I ratio(1) down 2 points excl. SRF Q2/Q2 despite scope effects Q2/Q2 change in underlying costs(1), by business line +7.4% 2,805 +26 +10 2,769 +134 +38 (22) +71 (17) 2,974 +11 (8) 2,977 +1.9% Q2/Q2 increase in underlying costs  Gross operating income grew excl.

  24. Slide 24: 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) 41 41 41  Crédit Agricole S.A.(1) 37 35 26bp  Significant Q2/Q2 decrease: -9bp Q2/Q2 31 31 cost of credit risk /  Below MTP assum

  25. Slide 25: Cost of risk on a declining trend in all business lines

    CRÉDIT AGRICOLE S.A. RESULTS Cost of risk on a declining trend in all business lines Cost of credit risk / outstandings (in basis points over a rolling four-quarter period) 133 134 140 134 123 116 110 112 114 CACF: €115m in Q2 108 101 93 CA Italia: €62m in Q2, 87 87 89 92 88 €223m -9bp year-on-year

  26. Slide 26: 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 Income Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +23.9% Insurance 313 (8.3%) 589 (3.4%) 1,868 +5.1 +42.4 +3.2 +4.1 -1.6 1,921 A

  27. Slide 27: 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 Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 Premium income (€bn) Net new inflows (€bn) €m underlying underlying underlying underlying Revenues 512

  28. Slide 28: 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 +30.8% Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 +7.5% at constant €m underlying underlying underlying underlying perimeter Revenues 656 +37.9% 1,300 +43.2% 1,426 +7.8 +34.

  29. Slide 29: 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 Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +2.0% Revenues 875 +2.1% 1,734 (1.6%) Operating expen

  30. Slide 30: 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 Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +19.8% Revenues 477 +9.3% 947 +13.2% Operati

  31. Slide 31: 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 Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +6.7%(1) Revenues 212 +4.5% 419 +2.3%

  32. Slide 32: 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) Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m underlying underlying underlying underlying +5.6% +3.6% Re

  33. Slide 33: 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 Q2-18 ∆ Q2/Q2 H1-18 ∆ H1/H1 €m +7.6% underlying underlying underlying underlying 1,505 Revenues 1,505 +7.6% 2,827 (2.3%) 1,493 1,399 Operating expenses excl.

  34. Slide 34: 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 ∆ Q2/Q2 ∆ S1/S1 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 €m Q2-18 Q2-17 S1-18 S1-17 (m€) (m€) Revenues (6) (54) +47 (119) (220) 101 Operating expen

  35. Slide 35: Agenda

    1 STRATEGY AND MTP UPDATE p. 3 2 Q2-18 RESULTS p. 17 3 SOLVENCY AND CAPITAL PLANNING p. 35 4 CONCLUSION p. 39 5 APPENDIX p. 41 35 l ROADSHOW PRESENTATION – SEPTEMBER 2018

  36. Slide 36: Financial solidity: change in RWA in Q2

    CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Change in RWA in Q2 reflecting business lines’ growth Change in risk-weighted assets by business lines (€bn) +8.0 +5.5 +1.1 +0.2 +2.0 307  Increase in RWA: +€8bn June/March on the CET1 ratio 301 299 296 296 -0.9  Organic growth of the business lines: +€5.9bn

  37. Slide 37: Fully-loaded CET1 ratio at 11.4% pro forma

    CRÉDIT AGRICOLE S.A. FINANCIAL SOLIDITY Fully-loaded CET1 ratio at 11.4% pro forma at end-June 2018, above target of 11% Change in fully-loaded CET 1 ratio (bp) +1.7pp +0.7pp +0.7pp 11.7% -1.0pp Buffer: -0.4pp +0.8pp +0.0pp -0.5pp -0.3pp 11.4% +0.0pp -0.5pp 0.4pp -0.0pp -0.0pp -0.3pp -0.3pp ≥ 11% 10

  38. Slide 38: Attractive dividend policy

    FINANCIAL SOLIDITY Attractive dividend policy  Reminder: dividend 2017 €0.63(1)  i.e. a yield of 4.5%(1) based on 13 February 2018 share price  From 2017 onwards  Dividend payout of 50% of attributable net income(2)  Cash only  Intention not to lower dividend compared to 2016 level (€0.60 floo

  39. Slide 39: Agenda

    1 STRATEGY AND MTP UPDATE p. 3 2 Q2-18 RESULTS p. 17 3 SOLVENCY AND CAPITAL PLANNING p. 35 4 CONCLUSION p. 39 5 APPENDIX p. 41 39 l ROADSHOW PRESENTATION – SEPTEMBER 2018

  40. Slide 40: Conclusion: highest quarterly profits since IPO

    CRÉDIT AGRICOLE GROUP CONCLUSION Highest quarterly profits since IPO CRÉDIT AGRICOLE S.A.  Highest quarterly profit(1) since IPO for CASA and for CAG  Contribution from all of CASA’s business lines and Corporate Centre, in particular high level of profit in Corporate & Investment Banking  Very st

  41. Slide 41: Agenda

    1 STRATEGY AND MTP UPDATE p. 3 2 Q2-18 RESULTS p. 17 3 SOLVENCY AND CAPITAL PLANNING p. 35 4 CONCLUSION p. 39 5 APPENDIX p. 41 41 l ROADSHOW PRESENTATION – SEPTEMBER 2018

  42. Slide 42: Appendix: 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

  43. Slide 43: Alternative Performance Measures - specific items Q2-18 and H1-18

    CRÉDIT AGRICOLE S.A. APPENDIX Alternative Performance Measures – specific items Q2-18 and H1-18 Q2-18 Q2-17 H1-18 H1-17 Gross Impact on Gross Impact on Gross Impact on Gross Impact on €m impact* NIGS impact* NIGS impact* NIGS impact* NIGS Issuer spreads (CC) - - (97) (51) - - (105) (55) +€19m DVA (L

  44. Slide 44: Reconciliation between stated and underlying results - Q2-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – Q2-18 Q2-18 Q2-18 Q2-17 Specific Q2-17 ∆ Q2/Q2 ∆ Q2/Q2 Q2-17 Q2-18 Q2-18 ∆ Q2/Q2 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues

  45. Slide 45: Reconciliation between stated and underlying results - H1-18

    CRÉDIT AGRICOLE S.A. APPENDIX Reconciliation between stated and underlying results – H1-18 H1-18 H1-18 H1-17 Specific H1-17 ∆ H1/H1 ∆ H1/H1 H1-17 H1-18 H1-18 ∆ H1/H1 €m Specific items stated underlying stated items underlying stated underlying scope adj. scope adj. forex adj. like-for-like Revenues

  46. Slide 46: Appendix: data per share

    CRÉDIT AGRICOLE S.A. APPENDIX Data per share (€m) Q2-18 Q2-17 Q1-18 H1-18 H1-17 ∆ Q2/Q2 ∆ H1/H1 Net income Group share - stated 1,436 1,350 856 2,292 2,195 +6.4% +4.4% - Interests on AT1, including issuance costs, before tax (93) (96) (131) (225) (237) -2.8% -5.2% NIGS attributable to ordinary share

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  48. Slide 48: 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 — Kepler Cheuvreux Autumn conference 2018 on 6ix