CREDIT AGRICOLE SA: Results Q3 2022 - Revenues up, strong
profitability, solid balance sheet and capital
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Revenues
up, strong
profitability, solid balance sheet and
capital |
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GCA AND CASA STATED AND UNDERLYING DATA
9M-2022 |
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CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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Stated |
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Underlying |
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Stated |
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Underlying |
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Revenues |
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€17,832m+5.9% 9M/9M |
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€17,701m+4.9% 9M/9M |
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€28,728m+5.1% 9M/9M |
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€28,186m+3.1% 9M/9M |
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Costs excl. SRF |
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-€10,371m+6.8% 9M/9M |
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-€10,281m+6.4% 9M/9M |
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- €17,486m+6.0% 9M/9M |
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-€17,396m+5.8% 9M/9M |
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GOI |
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€6,814m+1.1% 9M/9M |
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€6,773m+1.2% 9M/9M |
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€10,440m+0.9% 9M/9M |
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€9,987m-2.5% 9M/9M |
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Cost of risk |
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-€1,303m +40.3% 9M/9M |
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-€1,108m+22.6% 9M/9M |
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-€2,140m+51.8% 9M/9M |
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-€1,945m+40.4% 9M/9M |
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Net income Group share |
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€3,880m-12.1% 9M/9M |
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€3,937m-0.6% 9M/9M |
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€6,104m-9.5% 9M/9M |
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€5,856m-5.6% 9M/9M |
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C/I ratio (excl. SRF) |
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58.2%+0.5 pp 9M/9M |
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58.1%+0.8 pp 9M/9M |
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60.9%+0.5 pp 9M/9M |
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61.7%+1.6 pp 9M/9M |
EXCEPTIONAL MARKET CONDITIONS
- 10-year swap
rate +280 bp over the past 9M, market volatility back to 2008
levels
UNDERLYING Q3
REVENUES HIGH
(+0.9% Q3/Q3, after
+7,6%
Q3-21/Q3-20,
+4.9% 9M/9M)
- 1.5 million
new customers 9M-22
- Strong
corporate loans (+15.4% Q3), consumer finance (+12.6%), leasing
(+15.5%) production, home loans production (-3.1% vs market
-27%).
- Strong
activity in AG and LC: MLT active management (€1.1bn inflows ex. JV
at Amundi), property and casualty insurance (turnover +6.7%1
Q3/Q3), personal protection (+7.4%1 Q3/Q3), and financing
activities CACIB (revenues +12.6% Q3/Q3, +4.4% at constant FX)
EXCELLENT OPERATING EFFICIENCY
- Cost/income
ratio2 9M-22 58.1%; below MTP target, 5pp lower than the average
for 10 European banks over the past 5 years
UNDERLYING INCOME +20.6% vs. pre-crisis level
9M-2019
- Cost of risk
+35.5% Q3 vs a very low Q3-21, back to the 2019 quarterly
average.
PROFITABILITY AMONG THE BEST IN EUROPE
- Underlying
9M-22 RoTE 12.5%3, > 2.5 pp above average of 10 large
European banks
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SOLID BALANCE SHEET, CET1 ON TARGET DESPITE THE RISE IN
RATES |
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CRÉDIT AGRICOLE S.A. |
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CRÉDIT AGRICOLE GROUP |
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| Phased-in
CET1 |
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11% |
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-30 bp
Sept/June |
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17.2% |
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-30 bp Sept/June |
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+3.1 pp > SREP, despite the rapid rise in rates in 2022 |
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+8.3 pp > SREP |
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€0.58/share dividend accrual 9M-22 |
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€19.6bn CAG provisions; 86.9% coverage ratio, best among largest
European banks |
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CACEIS: would become #1 in
Europe in AuA and #2 in AuC, after the acquisition of RBC’s
European investor services business.
CONTINUED
ROLL-OUT OF THE MEDIUM-TERM
PLAN
- Roll-out
of sustainability mobility offers (lease
purchase agreements from €100/month in France), ahead of the
exclusive long-term leasing partnership with Stellantis, coming
into force on the 1st half of the year 2023
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Commitment to society: Moody’s ESG solutions
67/100/A1+, top 3/68 global banks; ISS-ESG: C+/Prime.
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Crédit Agricole S.A. climate workshop on 6 December
2022
At the meeting of the Board of Directors of
Crédit Agricole S.A. on 9 November 2022, SAS Rue La Boétie informed
the company of its intention to purchase Crédit Agricole S.A.
shares on the market for a maximum amount of one billion euros with
no intention to increase its stake beyond 65% of the share capital
of Crédit Agricole S.A. Details of the transaction are provided in
a press release issued today by SAS Rue La Boétie.
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Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors “Supported by solid results, the Group continues
to commit to make transitions accessible to all, rolling-out, at
scale, concrete initiatives to renovate homes, to enable access to
green mobility, and to massively support renewable energies.”
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Philippe Brassac,Chief Executive Officer of Crédit
Agricole S.A. “Our strong commercial momentum bolsters our
high levels of profitability, solidity and operational efficiency,
among the best in Europe. Key assets that allow us to roll-out our
MTP and amplify our support to customers and society”. |
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This press release comments on the results of
Crédit Agricole S.A. and those of Crédit Agricole Group, which
comprises the Crédit Agricole S.A. entities and the Crédit Agricole
Regional Banks, which own 56.8% of Crédit Agricole S.A. Please see
p.31 onwards of this press release for details of specific items,
which are restated in the various indicators to calculate
underlying income.
Crédit Agricole Group
Group activity
The Group saw strong commercial activity over
the quarter across all business lines thanks to our customer
focused banking model. Gross customer capture has been strong. In
third quarter 2022, the Group recorded +460,000 new customers in
retail banking, and the customer base continued to grow (+105,000
customers). Over the first nine months of 2022, the Group recorded
+1.5 million new retail banking customers and the customer base
grew also (+342,000 customers). Production also showed solid growth
in the third quarter of 2022, with a 3.0% rise in loan origination
at the Regional Banks and LCL (of which +15.4% for professional and
corporate loans, -3.1% for home loans in a declining market4 and
-1.5% for consumer finance), a +13.0% increase in consumer finance
(CACF, managed outstandings) & leasing originations (CALEF),
and +6.7% growth in property and casualty insurance premium income
compared to the third quarter of 2021. Last, the insurance
equipment rate5 was at a high level in the retail banking networks
at end September 2022, at 27.1% for LCL, 20.6% for CA Italia, 16.1%
including Creval, and 42.6% in the Regional Banks.
Each of the Group’s business lines posted very
strong levels of activity (see Infra).
Group results
In the
third quarter of 2022,
Crédit Agricole Group’s stated
net income Group share came to
€2,004 million, down -9.8% compared to the
third quarter of 2021.
Specific items in third quarter
2022 had a net positive effect of +€79 million on net
income Group share, of which +€101 million related to the
gain on disposal of La Médicale and -€21 million for the
exceptional provision for moratoria in Poland (-€17 million in net
income Group share), the recurring volatile accounting items, such
as the DVA (Debt Value Adjustment, i.e. gains and losses on
financial instruments related to changes in the Group’s issuer
spread) amounting to +€10 million in net income Group share,
and hedges on the Large customers loan book for
-€10.4 million in net income Group share. In addition to these
items, Lyxor integration costs amounted to -€4 million in net
income Group share.
The specific items recorded in
third quarter 2021 included recurring volatile accounting items in
revenues, such as the DVA (Debt Valuation Adjustment, i.e. gains
and losses on financial instruments related to changes in the
Group’s issuer spread) amounting to +€3 million in net income
Group share and hedges on the Large customers loan book for
-€4 million in net income Group share. The other factors to be
added to these recurring items are presented below: the
reclassification of the Serbian assets as held for sale (revenue
impact of -€2 million, expenses of -€1 million, net
income from assets held for sale impact of -€1 million, i.e. a
total impact on net income Group share of -€4 million), Creval
integration costs (-€9 million in operating expenses,
-€4 million in net income Group share), and provisions for
restructuring costs related to the Turbo project at CACEIS
(-€5 million in expenses, -€3 million euros in net income
Group share).
Excluding these specific items,
Crédit Agricole Group’s underlying
net income Group share6 amounted to
€1,924 million, a decline of -13.9% compared
to third quarter 2021.
Crédit Agricole Group – Stated and Underlying results, Q3-2022
and Q3-2021
| €m |
Q3-22stated |
Specific items |
Q3-22underlying |
Q3-21stated |
Specific items |
Q3-21underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
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Revenues |
8,927 |
(22) |
8,948 |
8,969 |
(4) |
8,972 |
(0.5%) |
(0.3%) |
| Operating
expenses excl.SRF |
(5,689) |
(9) |
(5,680) |
(5,452) |
(15) |
(5,438) |
+4.3% |
+4.5% |
| SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
|
Gross operating income |
3,238 |
(30) |
3,268 |
3,516 |
(18) |
3,535 |
(7.9%) |
(7.5%) |
| Cost of
risk |
(636) |
- |
(636) |
(403) |
- |
(403) |
+57.8% |
+57.8% |
|
Equity-accounted entities |
111 |
- |
111 |
107 |
- |
107 |
+4.0% |
+4.0% |
| Net income on
other assets |
6 |
- |
6 |
(14) |
1 |
(15) |
n.m. |
n.m. |
| Change in
value of goodwill |
- |
- |
- |
(2) |
- |
(2) |
(100.0%) |
(100.0%) |
|
Income before tax |
2,720 |
(30) |
2,750 |
3,205 |
(17) |
3,222 |
(15.1%) |
(14.6%) |
| Tax |
(662) |
6 |
(668) |
(792) |
5 |
(797) |
(16.4%) |
(16.1%) |
| Net income
from discont'd or held-for-sale ope. |
123 |
101 |
22 |
(3) |
(1) |
(1) |
n.m. |
n.m. |
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Net income |
2,181 |
77 |
2,104 |
2,410 |
(14) |
2,424 |
(9.5%) |
(13.2%) |
| Non
controlling interests |
(177) |
2 |
(179) |
(187) |
2 |
(189) |
(5.4%) |
(5.3%) |
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Net income Group Share |
2,004 |
79 |
1,924 |
2,222 |
(12) |
2,235 |
(9.8%) |
(13.9%) |
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Cost/Income ratio excl.SRF (%) |
63.7% |
|
63.5% |
60.8% |
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60.6% |
+2.9 pp |
+2.9 pp |
In third quarter 2022,
underlying revenues amounted to
€8,948 million, down -0.3%, and down -0.9% at constant scope
Creval and Lyxor7, compared to third quarter 2021.
Underlying operating expenses excluding the Single
Resolution Fund (SRF) stood at €5,680 million in
third quarter 2022, a year-on-year rise of +4.5% (+3.9%
pro forma Creval and Lyxor). Overall, the Group’s
underlying cost/income ratio excluding the SRF
recorded an increase of +2.9 percentage points to 63.5% in
third quarter 2022. Underlying gross operating
income was down -7.5% year-on-year to
€3,268 million.
The cost of credit risk rose to
-€636 million (of which -€209 million cost of risk on performing
loans (stages 1 and 2), -€498 million cost of proven risk (level
3)), i.e. an increase of +57,8% compared to third quarter 2021,
explained in particular by the continued provisioning of performing
loans this quarter and +€71 million corresponding mainly to
reversals of legal provisions in capital markets and investment
banking. The provisioning levels were determined by taking into
account several weighted economic scenarios, as in
previous quarters, and by applying adjustments on sensitive
portfolios (such as real estate, steel and aluminium, offset by a
relief on the tourism sector). The economic scenarios are weighed,
more severely than during the second quarter 2022, and include a
favourable scenario (French GDP +4.0% in 2022 and +2.5% in 2023)
and an unfavourable scenario (French GDP +1.9% in 2022 and -0.3% in
2023). They have nevertheless not been updated in the third quarter
2022. In addition, the cost of proven risk continues to normalise.
It thus returned to its average quarterly level observed in 2019.
The
cost of credit risk relative to outstandings8
on a four quarter rolling period stands at
22 basis points. It stands at 23 basis points on
a quarterly annualised basis9.
As at 30 September 2022, risk indicators confirm
the high quality of Crédit Agricole Group’s
assets and risk coverage level. The diversified loan book
is mainly geared towards home loans (46% of gross outstandings) and
corporates (33% of gross outstandings). Loan loss reserves amount
to €19.6 billion at the end of September 2022
(€10.4 billion for Regional Banks), 42% of which represented
provisioning of performing loans (47% for Regional Banks). The loan
loss reserves for performing loans have increased at Group level by
+€2.9 billion since fourth quarter 2019. The prudent management of
these loan loss reserves enables the Crédit Agricole Group to have
the best10 overall coverage ratio for doubtful loans (86.9% at the
end of September 2022) among largest European banks.
Underlying pre-tax income stood at
€2,750 million, a year-on-year decrease of -14.6%.
The underlying pre-tax income included the contribution from
equity-accounted entities for €111 million (up +4.0%) and net
income on other assets, which came to €6 million in the second
quarter. The underlying tax charge
fell -16.1% over the period.
Underlying net income before
non-controlling interests was down -13.2% to
€2,104 million. Non-controlling interests decreased -5.3%.
Lastly, underlying net income Group share was
€1,924 million, -13.9% lower than in third quarter 2021.
Crédit Agricole group – Stated and underlying results, 9M-2022
and 9M-2021
| €m |
9M-22stated |
Specific items |
9M-22underlying |
9M-21stated |
Specific items |
9M-21underlying |
∆ 9M/9Mstated |
∆ 9M/9Munderlying |
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Revenues |
28,728 |
543 |
28,186 |
27,322 |
(28) |
27,350 |
+5.1% |
+3.1% |
| Operating
expenses excl.SRF |
(17,486) |
(90) |
(17,396) |
(16,493) |
(50) |
(16,443) |
+6.0% |
+5.8% |
| SRF |
(803) |
- |
(803) |
(479) |
185 |
(664) |
+67.6% |
+20.9% |
|
Gross operating income |
10,440 |
453 |
9,987 |
10,350 |
106 |
10,244 |
+0.9% |
(2.5%) |
| Cost of
risk |
(2,140) |
(195) |
(1,945) |
(1,410) |
(25) |
(1,385) |
+51.8% |
+40.4% |
|
Equity-accounted entities |
323 |
- |
323 |
299 |
5 |
294 |
+7.8% |
+9.6% |
| Net income on
other assets |
41 |
- |
41 |
(37) |
(15) |
(22) |
n.m. |
n.m. |
| Change in
value of goodwill |
- |
- |
- |
378 |
378 |
0 |
(100.0%) |
(100.0%) |
|
Income before tax |
8,664 |
258 |
8,406 |
9,580 |
449 |
9,131 |
(9.6%) |
(7.9%) |
| Tax |
(2,164) |
(117) |
(2,047) |
(2,193) |
179 |
(2,372) |
(1.4%) |
(13.7%) |
| Net income
from discont'd or held-for-sale ope. |
144 |
94 |
49 |
2 |
3 |
(1) |
x 71.3 |
n.m. |
|
Net income |
6,644 |
235 |
6,408 |
7,389 |
631 |
6,758 |
(10.1%) |
(5.2%) |
| Non
controlling interests |
(540) |
13 |
(552) |
(642) |
(86) |
(556) |
(16.0%) |
(0.7%) |
|
Net income Group Share |
6,104 |
248 |
5,856 |
6,746 |
545 |
6,201 |
(9.5%) |
(5.6%) |
|
Cost/Income ratio excl.SRF (%) |
60.9% |
|
61.7% |
60.4% |
|
60.1% |
+0.5 pp |
+1.6 pp |
In the first nine months of
2022, stated net income Group share amounted to
€6,104 million, compared with €6,746 million in the first
nine months of 2021, a decrease of -9.5%.
Specific items for the first nine months of 2022
include the specific items of the Regional Banks for the first nine
months of 2022 detailed in the Regional Banks section and the
specific items of Crédit Agricole S.A. for the first nine months of
2022 detailed in the Crédit Agricole S.A. results section.
Excluding these specific items,
underlying net income Group share amounted
to €5,856 million, down -5.6%
compared to the first nine months of 2021. Underlying
revenues were up +3.1%. Underlying
operating expenses excluding SRF were up +5.8%. As
a result, the cost/income ratio excluding SRF for the first nine
months of 2022 was 61.7%. Underlying gross operating
income totalled €9,987 million, down -2.5% compared
to the first nine months of 2021.
Regional Banks
Regional Banks’ activity and
capture remained dynamic in third quarter 2022. Gross
customer capture was buoyant with +912,000 new customers
since the start of 2022 (287,000 in the third quarter), and a
growing customer base +198,000 in the first nine months (56,000 in
the third quarter). The share of customers using digital
tools increased to 72.8%11 (+3.3 percentage points
compared to end September 2021) and the number of online
signatures12 jumped by +111.0% in the third quarter 2022 compared
to the third quarter 2021. Propulse by CA, a 100% digital offer
with non-banking services for micro-entrepreneurs and individual
businesses, was launched this quarter.
Loan production was stable this
quarter (+0.5% compared to third quarter 2021), thanks to strong
production on specialised markets13, offsetting the slight drop in
home loan production (-3.4% compared to third quarter 2021). This
performance should be compared with a 27% drop in new home loans on
the portfolio of transactions guaranteed by Crédit Logement in
third quarter 202214, and with the decrease by -11% observed by
Banque de France over June/July/August between 2021 and 2022. In
addition, the average customer loan production rate15 for the third
quarter is now higher than the average loan outstandings rate.
Outstandings reached €622.9 billion at end
September 2022, rising over the year (+6.0% overall, +11.2% in the
corporate market).
Total customer assets rose by
+2.1% year on year to €843.6 billion at the end of September
2022. This growth was driven by on-balance sheet
deposits, which reached €572.4 billion at end September
2022, up +5.0% compared to end September 2021 (including +10.4% for
passbook accounts and +4.8% for demand deposits).
Off-balance sheet deposits reached €271.2 billion,
down -3.5% year-on-year, with the impact of the stock market
decline partially offset by strong inflows in the first nine months
of 2022 in securities (net inflow of +€1.4 billion in the first
nine months of 2022) and life insurance (net inflow of +€1.2
billion over nine months).
In third quarter 2022, no specific items were
recorded at the Regional Banks.
In third quarter 2022,
underlying revenues of the Regional Banks amounted
to €3,328 million, down -2.3% from third quarter 2021.
Operating expenses excluding SRF increased +3.7%.
As a result, underlying gross operating income
fell by -12.6%. The cost of risk amounted to -€273
million, multiplied by 2, due to conservative provisioning of
performing loans (Stage 1 & 2) for -€166 million and a
normalisation for proven risks (Stage 3). The Regional Banks’
contribution to the Group’s underlying net income Group
share thus stood at €623 million, down -21.2%.
In the first nine months of 2022, provisions for
home purchase savings plans, with an impact of €411.9 million in
revenues and €305.5 million in underlying net income Group share,
were reclassified as specific items.
For the first nine months of
2022, underlying revenues were down
slightly (-0.7%) compared to the first nine months of 2021, due to
the decline in the interest margin linked to the increase in the
cost of customer resources and the TLTRO, and despite good momentum
on fee and commission income. Operating expenses excluding
SRF rose by +3.9%, with the SRF amounting to
-€156 million (+9.7%) and underlying gross operating
income down -9.5%. The
underlying cost/income ratio
excluding SRF worked out at 66.8%, up
+2.9 percentage points. The underlying cost of risk rose
by 74.5% to €830 million, due to a prudent provisioning of €585
million for performing loans and the beginning of normalisation for
proven risks. Cost of
risk/outstandings over a rolling four-quarter period
remains low at 16 basis points; the NPL ratio is low at 1.6% and
the coverage ratio remains high at 104.4% at end September 2022.
The Regional Banks’ contribution to the Group’s
underlying net income Group share thus stood at
€1,862 million, down -14.8%. The Regional Banks’
contribution to the Group’s stated net income Group
share thus stood at €2,167 million, down -3.3%.
Crédit Agricole S.A.
Results
Crédit Agricole S.A.’s Board of Directors,
chaired by Dominique Lefebvre, met on 9 November 2022 to review the
financial statements for the third quarter and first nine months of
2022.
Crédit Agricole S.A. – Stated and underlying results, Q3-2022
and Q3-2021
|
€m |
Q3-22stated |
Specific items |
Q3-22underlying |
Q3-21stated |
Specific items |
Q3-21underlying |
∆ Q3/Q3stated |
∆ Q3/Q3underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
5,564 |
(22) |
5,585 |
5,531 |
(4) |
5,535 |
+0.6% |
+0.9% |
| Operating
expenses excl.SRF |
(3,403) |
(9) |
(3,394) |
(3,259) |
(14) |
(3,245) |
+4.4% |
+4.6% |
| SRF |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Gross
operating income |
2,161 |
(30) |
2,191 |
2,272 |
(18) |
2,290 |
(4.9%) |
(4.3%) |
| Cost of
risk |
(360) |
- |
(360) |
(266) |
- |
(266) |
+35.5% |
+35.5% |
|
Equity-accounted entities |
102 |
- |
102 |
103 |
- |
103 |
(1.0%) |
(1.0%) |
| Net income on
other assets |
5 |
- |
5 |
(8) |
1 |
(9) |
n.m. |
n.m. |
| Change in value
of goodwill |
- |
- |
- |
0 |
- |
0 |
n.m. |
(100.0%) |
| Income
before tax |
1,909 |
(30) |
1,939 |
2,101 |
(17) |
2,118 |
(9.2%) |
(8.5%) |
| Tax |
(461) |
6 |
(467) |
(470) |
5 |
(474) |
(2.0%) |
(1.6%) |
| Net income from
discont'd or held-for-sale ope. |
123 |
101 |
22 |
(3) |
(1) |
(1) |
n.m. |
n.m. |
| Net
income |
1,571 |
77 |
1,494 |
1,628 |
(14) |
1,642 |
(3.5%) |
(9.0%) |
| Non controlling
interests |
(219) |
2 |
(221) |
(226) |
2 |
(229) |
(3.3%) |
(3.3%) |
| Net
income Group Share |
1,352 |
79 |
1,273 |
1,402 |
(12) |
1,414 |
(3.6%) |
(10.0%) |
| Earnings per
share (€) |
0.41 |
0.03 |
0.38 |
0.43 |
(0.00) |
0.43 |
(4.8%) |
(11.8%) |
|
Cost/Income ratio excl. SRF (%) |
61.2% |
|
60.8% |
58.9% |
|
58.6% |
+2.2 pp |
+2.1 pp |
In third quarter 2022,
Crédit Agricole S.A.’s stated
net income Group share amounted to
€1,352 million, a decrease of -3.6% from
third quarter 2021.
Specific items for the quarter
totalled +€79 million and include recurring accounting items for an
impact of -€0.4 million in net income Group share. These
include the following items: recurring accounting volatility items
in revenues, such as the DVA (Debt Valuation Adjustment), the
issuer portion of the FVA, and secured lending for +€10 million in
net income Group share, and the hedging of the loan book in the
Large Customers segment for -€10.4 million in net income Group
share. Specific items also include non-recurring items for an
impact of +€79 million in net income Group share. They include
the capital gain on the disposal of La Médicale in insurance
activities held for sale for an impact of +€101 million in net
income, Group share, and the costs of integrating Lyxor in asset
management expenses for -€4 million in net income Group share, as
well as the exceptional provision on moratoria (home loan credits)
in Poland for -€17 million. In the third quarter of
2021, specific items had a net negative impact of
-€12 million on net income Group share. They included
recurring volatile accounting items in revenues, such as the DVA
(Debt Valuation Adjustment, i.e. gains and losses on financial
instruments related to changes in the Group’s issuer spread)
amounting to +€3 million in net income Group share and hedges
on the Large customers loan book for -€4 million in net
income Group share. In addition to these recurring items, there are
also the following: acquisition costs of Credito Valtellinese for
-€4 million in net income Group share, the reclassification of
CA Serbia as an asset held for sale (IFRS 5) for an impact of
-€4 million in net income Group share and the provisions for
restructuring costs in the context of the Turbo project, CACEIS
transformation and development plan for -€5 million in
expenses and -€3 million in net income Group share.
Excluding specific items, underlying net
income Group share16 was
€1,273 million, down -10.0% in the third
quarter of 2022 from third quarter 2021, which was a historically
high level. Activity of the business lines remained dynamic, but
their profitability was impacted over the quarter by significant
market effects, despite support, thanks primarily to steady
activity in all business lines and a strong increase in income.
In the third quarter of 2022, underlying
revenues reached €5,585 million, and were up
+0.9% over third quarter 2021 (and +1.9% for the revenues of the
business lines excluding Corporate Centre). This growth in revenues
in third quarter 2022 is consistent with the steady growth in
quarterly revenues of Crédit Agricole SA over the last five years,
thanks to the diversity of the business mix.
Underlying operating expenses excluding
SRF totalled €3,394 million in the third quarter of 2022,
an increase of €149 million, or +4.6% (and +4.3% for the
expenses of the business lines, excluding Corporate Centre). Pro
forma for the integration of Lyxor and Creval, this increase is
brought down to +3.3% compared to 2021, i.e. +€108 million,
and to +3.3% for the expenses of the business lines, excluding
Corporate Centre. After adjusting for foreign exchange impact
(mainly on CACIB and CA Indosuez, for approximately
€37 million), it came to +€71 million, in support of the
business lines’ growth. Of this +€71 million increase, the
Large customers division posted a rise in expenses of
+€55.3 million compared with the third quarter of 2021,
including +€25.5 million related to staff costs and variable
compensation and +€18 million related to IT investments. The
Specialised financial services division recorded a decrease of
-€12.1 million, including -€19.2 million from the scope effect
of CACF NL and Olinn. The Asset gathering and insurance division
saw its expenses rise by +€5 million, including
+€11.6 million in investments and IT costs and
+€1.8 million in staff costs and variable compensation.
Lastly, Retail banking division saw its expenses rise by +€5.7
million compared to the third quarter of 2021, of which +€8.1
million on IT expenses and -€1.7 million on staff expenses.
The cost/income ratio excluding
SRF thus stood at 60.8% in the third quarter of
2022, up +2.1 percentage points compared to third quarter
2021.
Gross underlying operating
income for third quarter 2022 totalled €2,191 million,
down -4.3% (-5.1% Pro forma for Creval and Lyxor).
As at 30 September 2022, risk indicators confirm
the high quality of Crédit Agricole S.A.’s assets
and risk coverage level. The diversified loan book is
mainly geared towards home loans (27% of gross outstandings) and
corporates (46% of Crédit Agricole S.A. gross outstandings). The
non-performing loan ratio was still low at 2.6%, and the coverage
ratio17, while high at 73.2%, was down -1.1 percentage points over
the quarter18. Loan loss reserves amounted to €9.3
billion for Crédit Agricole S.A., a +€0.1 billion increase
from end June 2022. Of these loan loss reserves, 37% are for
performing loan provisioning. Loan loss reserves for performing
loans are higher by €1.4 billion compared with the fourth
quarter of 2019.
The cost of risk shows a net
provisioning of -€360 million (+35.5%/-€94 million
compared to third quarter 2021 when it stood at -€266 million,
a historically low level). The expense of -€360 million in
third quarter 2022 consists of the provisioning for performing
loans (Stages 1&2) for -€42 million (versus an allocation
of -€27 million in third quarter 2021), provisioning for
proven risks (Stage 3) for -€377 million (versus
-€234 million in third quarter 2021), which is a return to the
average level recorded in 2019 (-€362 million from +€59
million in other items, essentially corresponding to reversals of
legal provisions in capital markets and investment banking. In
third quarter 2022, the cost of risk/outstandings over a rolling
four-quarter period19 was 31 basis points, and 30 basis
points on an annualised quarterly basis20.
The underlying contribution of the
equity-accounted entities remained stable at
€102 million in third quarter 2022 versus €103 million in
third quarter 2021. Net income on other assets
stood at €5 million in third quarter 2022, vs.
-€9 million in third quarter 2021.
Underlying
income21 before tax,
discontinued operations and non-controlling interests was therefore
down -8.5% to €1,939 million. The underlying effective tax
rate stood at 25.4% (+1.9 percentage points compared
to third quarter 2021), while the underlying tax charge was
down -1.6% at -€467 million. The underlying
net income before non-controlling interests was
therefore down -9.0%. Non-controlling interests
amounted to -€221 million in third quarter 2022, down
-3.3%.
Underlying
net income Group share was down by -10.0%
compared to third quarter 2021 at
€1,273 million.
Underlying earnings per share
in third quarter 2022 reached €0.38,
decreasing by -11.8% compared to third quarter
2021.
Crédit Agricole S.A. – Stated and underlying results, 9M-2022
and 9M-2021
|
€m |
9M-22stated |
Specific items |
9M-22underlying |
9M-21stated |
Specific items |
9M-21underlying |
∆ 9M/9Mstated |
∆ 9M/9Munderlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
17,832 |
131 |
17,701 |
16,843 |
(29) |
16,872 |
+5.9% |
+4.9% |
| Operating
expenses excl.SRF |
(10,371) |
(90) |
(10,281) |
(9,709) |
(50) |
(9,659) |
+6.8% |
+6.4% |
| SRF |
(647) |
- |
(647) |
(392) |
130 |
(522) |
+65.2% |
+24.0% |
| Gross
operating income |
6,814 |
41 |
6,773 |
6,742 |
51 |
6,691 |
+1.1% |
+1.2% |
| Cost of
risk |
(1,303) |
(195) |
(1,108) |
(929) |
(25) |
(904) |
+40.3% |
+22.6% |
|
Equity-accounted entities |
291 |
- |
291 |
291 |
5 |
286 |
(0.2%) |
+1.6% |
| Net income on
other assets |
26 |
- |
26 |
(42) |
(15) |
(27) |
n.m. |
n.m. |
| Change in
value of goodwill |
- |
- |
- |
378 |
378 |
0 |
(100.0%) |
(100.0%) |
| Income
before tax |
5,827 |
(154) |
5,981 |
6,440 |
394 |
6,046 |
(9.5%) |
(1.1%) |
| Tax |
(1,438) |
(10) |
(1,428) |
(1,245) |
179 |
(1,424) |
+15.5% |
+0.3% |
| Net income
from discont'd or held-for-sale ope. |
143 |
94 |
49 |
2 |
3 |
(1) |
n.m. |
n.m. |
| Net
income |
4,532 |
(70) |
4,602 |
5,197 |
576 |
4,621 |
(12.8%) |
(0.4%) |
| Non
controlling interests |
(652) |
13 |
(665) |
(781) |
(122) |
(660) |
(16.6%) |
+0.8% |
| Net
income Group Share |
3,880 |
(57) |
3,937 |
4,416 |
454 |
3,962 |
(12.1%) |
(0.6%) |
|
Earnings per share (€) |
1.20 |
(0.02) |
1.22 |
1.38 |
0.15 |
1.23 |
(13.2%) |
(0.9%) |
|
Cost/Income ratio excl.SRF (%) |
58.2% |
|
58.1% |
57.6% |
|
57.2% |
+0.5 pp |
+0.8 pp |
In the first nine months of
2022, stated net income Group share amounted to
€3,880 million, compared with €4,416 million in the first nine
months of 2021, a decrease of -12.1%.
Specific items in the first nine months
of 2022 had a negative impact of
-€57 million on stated net income Group
share. In addition to the third quarter items already mentioned
above, the first-half 2022 items had a negative impact of
-€136 million on stated net income Group share and included
the recurring volatile accounting items, i.e. the DVA, FVA and
secured lending for -€6 million, and coverage of Large
Customers loan books for +€53 million. To this were added the
changes in the Home Purchase Savings provision for +€63 million,
the Credito Valtellinese integration costs in Retail banking in
Italy for -€16 million and those for Lyxor in asset management for
-€26 million in net income Group share, as well as the provision
for Ukraine equity risks for -€195 million in cost of risk, and the
reclassification of Crédit du Maroc to assets held for sale for
-€10 million. The specific items for the first nine months
of 2021 had a positive impact of +454 million on stated
net income Group share with the recurring volatile accounting
items, specifically the DVA for +€4 million, hedges of the
Large customers loan book for -€15 million, and changes in the
provision for home purchase savings plans for -€6 million.
Added to this were the following items: the excess SRF
contributions paid for financial years 2016 to 2020 for
+€130 million; wealth management losses in Miami and Brazil in
the process of disposal for +€2 million within the Wealth
management sub-division, the reclassification of CA Serbia as
assets held for sale (IFRS 5) for -€4 million; Credito
Valtellinese acquisition costs for -€4 million; costs of
integration of Kas Bank and S3 by CACEIS for -€2 million,
transformation costs related to the LCL New Generation Network
project at LCL for -€9 million, and the Turbo project, the
CACEIS transformation and development plan for -€11 million,
the preliminary net badwill for the initial consolidation of Creval
for +€285 million, the Creval acquisition costs
-€8 million, additional provisioning for Creval performing
loan outstandings for -€19 million, as well as the
Affrancamento gains related to exceptional tax provisions in Italy
for the non-accounting revaluation of goodwill and its amortisation
amounting to +€111 million in net income Group share for the
IRB (+€28 million), AG (+€78 million) and SFS
(+€5 million) divisions.
Excluding these specific items,
underlying net income Group share
reached €3,937 million, down -0.6% compared to the first nine
months of 2021.
Underlying earnings per share were €1.22
per share for the first nine months of 2022, down -0.9%
compared to the first nine months of 2021.
Underlying
RoTE22, which is calculated on the basis
of an annualised underlying net income Group share23 and IFRIC
charges linearised over the year, net of
annualised Additional Tier 1 coupons (return on equity
Group share excluding intangibles) and restated for certain
volatile items recognised in equity (including unrealised gains
and/or losses), reached 12.5% for the first nine months of
2022, -0.6 percentage point from the first nine months of
2021.
Underlying revenues rose by
+4.9% over the first nine months of 2021, with
revenue growth in all divisions (increase of +4.9% in the business
lines, excluding Corporate Centre), despite unfavourable market
effects impacting our stocks activities, more specifically the
Asset gathering and insurance business line. At constant scope
(integration of Créval and Lyxor in the results for the first nine
months of 2021), revenues were up 2.8%. Excluding Corporate Centre,
and at constant scope, they were also up +2.8% over the first nine
months of 2022.
Underlying operating expenses
excluding SRF increased by +6.4% compared to the first nine months
of 2021. At constant scope (integration of Créval and Lyxor in the
results for the first nine months of 2021)24, they rose 3.8% (€+376
million). This increase, which supports the growth of the business
lines, was primarily driven by the increase of +118 million in
investments and IT expenses, in particular at CACIB (+€41 million),
CAA (+€28 million) and Amundi (+€16 million); secondly, by the
increase of +€87 million in payroll, particularly at CACIB (+€75
million) – note that Amundi’s payroll declined by -€19 million
because of the drop in variable compensation – primarily because of
the anticipation in July of the 2023 increase in fixed compensation
in France; and thirdly, because of the foreign exchange impact of
+€85 million. Excluding Corporate Centre, business line expenses
rose by 6.1%. Excluding Corporate Centre and at constant scope,
they were up +€306 million (+3.3%).
The underlying cost/income ratio
excluding SRF for the first nine months was 58.1%, an
increase of +0.8 percentage point compared to first nine
months of 2021. The cost/income ratio is therefore lower than the
Medium Term Plan target of 60% each year. Since 2017, the
cost/income ratio25 of Crédit Agricole S.A. has remained more than
5 percentage points lower than that of a sampling of ten European
banks26.
The SRF for the first nine months of 2022
totalled €647 million, up +24% compared to the same period in
2021. Underlying gross operating income thus
totalled €6,773 million, up +1.2%.
Lastly, the cost of risk
reached -€1,108 million and increased over the period
(+22.6%/-€204 million compared with -€904 million over
the first nine months of 2021, mainly due to the provisioning
following the beginning of the Ukraine/Russia war in first quarter
2022 and the gradual normalisation of the proven cost of risk.
Analysis of the activity and the results of Crédit
Agricole S.A.’s divisions and business lines
Activity of the Asset Gathering division
In third quarter 2022, activity of the Asset
gathering (AG) division was strong in a market with high outflows
and unfavourable market conditions. Assets under management stood
at €2,403 billion at the end of September 2022 (+3.6% vs end
September 2021). Compared to end June 2022, they fell by
-€31 billion, driven by net outflows of -€11.9 billion, out of
which -€12.9 billion from Asset management, +€1.5 billion from
Wealth management and -€0.1 billion from Life insurance, as well as
a negative market effect of -€19 billion.
Insurance (Crédit Agricole
Assurances) posted a solid performance in third quarter
2022, despite the inflationary context and the continued increase
in rates.
For Crédit Agricole Assurances27, this quarter
was marked by the finalisation of the disposal of La Médicale with
a capital gain of €101 million recorded in stated net income for
third quarter 2022.
Savings /
Retirement activity was impacted by the economic
and financial environment, with premium income down by -16% over
one year. Gross inflows totalled €5 billion with a share of
unit-linked products at 37.8%. A light net outflow of -€0.1 billion
was recorded this quarter, which was related to the decrease in net
inflows on euro-denominated policies (-€0.9 billion), offset by the
positive inflow in unit-linked products (+€0.8 billion).
Assets (savings, retirement and death and
disability) stood at €318 billion, stable over one year, with
a share in euro outstandings up +1.7% compared to September 2021.
Unit-linked contracts accounted for 24.8% of assets under
management, down -1.3 percentage point over one year in connection
with the decline in equity markets.
It should be noted that, in this quarter, CAA
became the second largest retirement insurer in France according to
Argus de l’Assurance, thus moving up two places over the previous
ranking28.
In property and casualty
insurance, despite the increase in claims in third quarter
2022, activity remains dynamic, with premium income up
+6.7%29compared to the third quarter of 2021. At end September
2022, the portfolio of property and casualty policies totalled
nearly 15.2 million30, a +3.5% increase over one year at constant
scope, following the disposal of La Médicale tocim Generali. The
equipment of individual customers in the banking networks of Crédit
Agricole Group was stable vs end September 2021 for the Regional
Banks (42.6%, -0.1 percentage point) and LCL (27.1%, +0.6
percentage point), and up for CA Italia (20.6%, +1.8 percentage
point; 16.1% including the Créval customer base). The combined
ratio remained under control at 98.7%, down slightly by -1.8
percentage point year-on-year, due to the climate events that
occurred in the first nine months of 2022.
In death & disability/creditor and
group insurance, premium income came in at €1.1 billion
this quarter, an increase of +7.4%29 vs third quarter 2021, driven
notably by the increase in creditor insurance activity related to
the strong trend in property loans (+6%) and the steady performance
of consumer finance (+10%). Group insurance activity was also
strong, with growth in premium income of +17.9%.
Asset management (Amundi)
posted a resilient third quarter 2022, in particular in medium and
long-term assets (MLT), in a market with high level of
outflows.
Assets under management
totalled €1,895 billion at end September 2022 (including the
integration of the Lyxor assets for €148 billion at 31 December
2021), a year-on-year increase of +4.7% and down -1.5% compared to
the end of June 2022. This quarter has been impacted by a negative
market and foreign exchange effects of -€16.3 billion given the
unfavourable market conditions, and an outflow of -€12.9 billion
(out of which -€3.5 billion in MLT assets excluding JVs).
In the third quarter of 2022, activity
was resilient in medium/long-term assets excluding JVs. In
Retail, activity trended well in the networks
(+€1.9 billion in MLT assets in France and abroad).
The institutional inflows in active
management are positive (+€2.7 billion in MLT assets),
driven by equity and bond products. The ‘derisking’ context
explains the outflows in passive management for institutional
investors and third-party distributors.
Business in the Asian JVs was
negative this quarter (-€1.3 billion), primarily related to the
outflows in cash and cash equivalent products in
China. In contrast, inflow in MLT assets was positive (+€2.1
billion), notably thanks to the momentum of the Indian JV.
Amundi Technology continued its
growth, primarily by increasing the number of its customers.
In wealth
management31, assets
under management amounted to €190.1 billion at end September 2022
(out of which €130.3 billion for Indosuez Wealth Management),
stable compared to the end of June 2022 and end of September
2021. The positive net inflows of third quarter 2022 (+€1.5 billion
vs end June 2022), offset the negative market effect.
Results of the Asset Gathering division
The Asset gathering (AG)
business line posted underlying net income Group
share of €555 million in third quarter 2022, down
-3.1% from third quarter 2021. Positive income from the
insurance activities (+4.1%) and wealth management (+24.2%)
mitigate a decline in asset management (-17.7%), which was severely
impacted by the adverse market conditions.
For the first nine months of 2022, underlying
net income Group share was €1,710 million, down -1.6% vs the first
nine months of 2021. Over the same period, the Asset Gathering
division’s contribution to underlying net income Group share and
the underlying revenues of Crédit Agricole S.A.’s core businesses
(excluding the Corporate Centre division) was 38% and 28%,
respectively.
As at 30 September 2022, equity allocated to the
business line amounted to €12.6 billion, including
€10.9 billion for Insurance, €1.2 billion for Asset
management, and €0.4 billion for Wealth management. The
business line’s risk weighted assets amounted to
€35.7 billion, including €18.1 billion for Insurance,
€12.9 billion for Asset management and €4.7 billion for
Wealth management.
The underlying RoNE (Return on
Normalised Equity) for the business line stands at 20.8% for the
first nine months of 2022, versus 24.4% for full year 2021.
Insurance results
Underlying insurance revenues
totalled €602 million in third quarter 2022, representing a
+1.3% increase (+6.8% at constant scope32) compared to third
quarter 2021. Underlying costs in third quarter
2022 rose +2.5% (+12.1% at constant scope32) compared to third
quarter 2021, in line with the rise in payroll to support the
development of growth businesses, specifically group insurance and
creditor insurance, in addition to the IT costs associated with
regulatory projects. Underlying gross operating
income stood at €423 million, a slight increase of
+0.8% compared to the third quarter 2021. The underlying
cost/income ratio stood at 29.6% in the third quarter 2022,
remaining stable over the same period (+0.4%). Net income
from discounted or held-for-sale
operations was up +€13 million this quarter. This
corresponds to the impact of the finalisation of the disposal of La
Médicale on the recognition of Crédit Agricole Assurances Group
intra-Group transactions, offset by equally amounted negative
impact on insurance revenues. The tax charge increased slightly by
+1.3% to -€65 million. Underlying net income Group share was
therefore €352 million, up by +4.1% compared to
third quarter 2021. This result does not include the
capital gain of +€101 million from the disposal of La Médicale
posted in stated net income in third quarter 2022.
For the first nine months of
2022, underlying
revenues from reached €1.990 million, up +2.2% (+5.1% at
constant scope33) compared to the first nine months of 2021, due to
the increased recognition of the financial margin and the reversal
of technical reserves, as well as the positive impact on income of
the total unwinding of the Switch in the fourth quarter 2021, which
offset the market effect and increased claims.
Expenses increased +4.9% (+12.7% at constant
scope33) driven primarily by an increase in taxes related to growth
in premium income adversely impacting the C3S34, in addition to the
costs associated with business development. The cost/income ratio
therefore stood at 31.0%, up +0.8 percentage point compared to
the first nine months of 2021. Underlying gross operating income
thus increased by +1.0%. The tax charge for the first nine months
of 2022 decreased by -7.6% compared to first half 2021, due to the
decrease in the effective tax rate, despite an unfavourable tax
impact related to the payment of a special dividend of
€2 billion. Lastly, net income from
discounted or held-for-sale operations stood at
+€17 million over the first nine months due to the finalisation of
the disposal of La Médicale in the third quarter 2022. As a result,
net income Group share reached
€1,089 million, an increase of +4.9% (+4.3% at constant
scope33) compared to first half 2021.
Asset management results
In third quarter 2022, underlying
revenues reached €738 million, down -4.7% compared to
third quarter 2021 (-11.4% at constant scope35). Net management
fees were resilient in the adverse market conditions, up +6.7%
(-1.3% at constant scope35). Performance fees declined, however,
compared to the record level posted in 2021. Underlying
operating expenses stood at €424 million, up +8.6% as
a result of the integration of Lyxor since first quarter 2022, but
down -1.6% at constant scope35 The underlying cost/income
ratio excluding SRF therefore stood at 57.5%.
Underlying gross operating income decreased by
-18.2%. The contribution from equity-accounted entities, comprising
the contribution from the Amundi joint ventures in Asia, stood at
€24 million, down -5.0%, and the tax charge of -€76 million
represents a decrease of -24.5%. Lastly, underlying
net income Group share decreased by -17.7% to
€174 million.
In the first nine months of
2022, underlying revenues were
down -3.1% compared to the first nine months of 2021 (-9.1% at
constant scope35). The drop in revenues is impacted by the
anticipated decline in performance fees (€108 million compared to
€356 million over the first nine months of 2021), offset by a
significant rise in net management fees (+2.6% at constant scope35)
despite the sharp drop of the equity and fixed income markets.
Underlying operating expenses excluding SRF
increased by +10.0% related to the integration of Lyxor. Charges
remained stable at constant scope35 thanks, in particular, to the
beginning of synergies with Lyxor. The underlying cost/income ratio
excluding SRF was 56.1%, up +6.7 percentage points compared to
the first nine months of 2021, which saw very high performance
fees. Thus, gross operating income fell by -16%.
The net income of equity-accounted entities increased by +2.0%. All
in all, net income Group share for the first nine
months stood at €543 million, a decrease of -13.7%.
Wealth management
results36
In the third quarter
2022, underlying wealth
management revenues stood at €226 million, up +11.6%
compared to third quarter 2021 (+6.8% excluding the foreign
exchange impact), benefiting primarily from a favourable product
mix, dynamic inflows, the euro and dollar interest rate hikes and a
positive foreign exchange impact. Underlying costs
excluding SRF reached €191 million, up +9.9% (+4.5%
excluding the foreign exchange impact) primarily due to rising IT
costs. The jaws effect was positive this quarter at +1.7 percentage
point (+2.3 percentage points excluding the foreign exchange
impact) and the underlying cost/income ratio decreased by -1.3
percentage point to 84.3% in third quarter 2022. Underlying gross
operating income, excluding SRF, rose +21.7% to €36 million.
Underlying net income Group share thus
reached €29 million, up +24.2% compared with the third quarter
of 2021.
For the first nine months of
2022, underlying
revenues for the wealth management business in stood at
€672 million, up +9.7% compared to the first nine months of 2021
(+6.0% excluding the foreign exchange impact). Costs excluding SRF
were up +9.9%. (+5.8% excluding the foreign exchange impact),
reaching €568 million. Underlying gross operating
income was up +9.0% at €101 million. All in all,
net income Group share was up +9.6% for the first
nine months of 2022, reaching €78 million.
Activity of the Large Customers division
Business activity in Corporate and
Investment Banking (CIB) as a whole reached very good
levels for a third quarter in 2022. Underlying
revenues were up to €1,296 million, or +4.5%
compared to third quarter 2021 (-1.2% excluding the foreign
exchange impact). This growth was driven by the strong performance
of financing activities at €776 million, i.e.
+12.6% compared to third quarter 2021 (+4.4% at constant scope).
Commercial banking was notably driven by record International Trade
& Transaction Banking business activity with the return to
positive interest rates and strong client demand and by positive
results from the Telecom business line. It saw growth of +12.1%
compared to third quarter 2021. Structured finance activities also
posted a good quarter, at €264 million, up +13.5% compared to the
third quarter of 2021. Capital markets and investment
banking, at €520 million, saw a slight drop of -5.7%
compared to third quarter 2021 (-8.1% excluding foreign exchange
impact). It maintains dynamic commercial activity, with +7.9%
growth in interest rate and foreign exchange hedging products, but
was penalised by negative valuation impacts (xVA and model
reserves) associated with the current volatility. In investment
banking, customers remain cautious and are awaiting a more
favourable business environment.
In this atypical environment, CIB improved its
overall position over the first nine months, with revenues up
+10.2% compared to the first nine months of 2021 (+5.8% at constant
scope). Underlying revenues in financing
activities increased significantly to €2,278 million
in 2022, +12.4% compared to the first nine months of 2021 and +6.1%
excluding the foreign exchange impact. Financing activities thus
maintained its leading position in syndicated loans (#1 in France37
and #2 in EMEA37) and was ranked #3 in project finance loans
worldwide37. Revenues from capital markets and investment
banking were up to €2,022 million in the first nine months
of 2022, +7.8% compared to the first nine months of 2021 and +5.4%
excluding the foreign exchange impact. CACIB strengthened its
leading positions in bond issues, becoming #3 All
bonds in EUR Worldwide37, and confirming itself as #2 Green, Social
& Sustainable bonds in EUR38. Average regulatory
VaR increased to €18.7 million in third quarter
2022 from €6.1 million in third quarter 2021 (and
€14.5 million in third quarter 2020), reflecting the market
and interest rate shocks over the period. However, it remained at a
low level, reflecting prudent risk management.
On 17 October 2022, CACEIS announced it was
entering into a Master Agreement stipulating CACEIS’s potential
acquisition of RBC’s investors services activities in Europe. With
this acquisition, CACEIS would further enhance its positioning
among the world’s asset servicing leaders in Europe and worldwide,
becoming #1 in Europe in terms of assets under administration with
close to €3,500 billion39 and #2 in terms of assets under custody
with €4,800 billion39. This transaction would also diversify the
profile of customers by lowering the share of French customers to
50% primarily in favour of customers from English speaking
countries and Luxembourg.
Prior to being signed, agreements between CACEIS
and Royal Bank of Canada must be reviewed by relevant work councils
and the transaction will be subject to the customary closing
conditions, including applicable regulatory approvals. This
transaction would be in line with the Group's development
objectives and would respect our profitability criteria with an
expected return on investment of more than 10% over 3 years thanks
to the realisation of synergies. It would have a negative impact of
less than 10 basis points on the CET1 of Crédit Agricole S.A. and
Crédit Agricole Group40.
In the third quarter, Asset
servicing (CACEIS) continued to face significant market
effects on its assets, bringing them to levels near those in
mid-2020. Assets under custody were down -9.0% at
end September 2022 compared to end September 2021, reaching
€3,975 billion. Assets under administration
were down -8.5% year-on-year to €2,107 billion at end
September 2022. The momentum of the customer business was not
enough to offset the impact of long rates evolution or equity
markets on assets.
Results of the Large Customers division
In
third quarter 2022, the underlying
revenues of the Large customers division amounted
to €1,608 million, up +5.2% compared to third quarter 2021,
buoyed by a solid performance in the financing activities and asset
servicing business lines. Operating expenses excluding
SRF were up compared to third quarter 2021 (+9.1%), with
the development of the business. The gross operating income for the
division remained stable (-0.4%) over the quarter. The division
recorded an overall net provision for cost of risk of
-€34 million in third quarter 2022, including reversals of
legal provisions, compared to a provision of -€12 million in
third quarter 2021. Pre-tax income totalled €603 million, down
slightly by -2.9%. The tax charge increased by +13.6% to
€156 million. Lastly, net income Group share
reached €412 million in the third quarter of 2022, down -9.5% after
the impact of the increase in the non-controlling interests of
CACEIS.
In the first nine months of 2022, the underlying
revenues of the Large customers division amounted
to €5,237 million, or +9.8% compared to the first nine months
of 2021. Operating expenses excl. SRF increased by
+7.3% to €2,905 million, reflecting support for growth and IT
investments (including the enhancement of the F/O platform and
improvement in the e-business offer in capital markets).
SRF expenses were up +34.7%
compared to the first nine months of 2021. Gross operating income
for the period totalled €1,890 million, representing an
increase of +8.9% compared to the first nine months of 2021. The
cost of risk for the first nine months of 2022 had
a net provision of -€236 million compared to a net provision
of -€38 million in the first nine months of 2021, mainly due
to the impact of the Russia/Ukraine war and its consequences in
terms of provisioning on performing loans in the first quarter
2022. The division’s contribution to underlying net income
Group share was €1,165 million, down -4.9% from the
first nine months of 2021.
The business line contributed 26% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding
Corporate Centre division) in the first nine months of 2022 and 30%
to underlying revenues excluding Corporate Centre
division.
At 30 September 2022, the equity
allocated to the division was €14.6 billion and
risk weighted assets were €153.7 billion.
The division’s underlying RoNE
(Return on Normalised Equity) stood at 11.8% for the first nine
months of 2022, versus 13.1% for the first nine months of 2021.
Corporate and Investment banking
results
In third quarter 2022
underlying revenues from corporate and investment
banking activities was up +4.5% compared to the third quarter of
2021, at €1,296 million, reflecting solid commercial performance in
financing activities and capital markets, despite the latter
suffering from the negative impacts of market valuations (xVA and
model reserves) associated with the current volatility. Underlying
operating expenses excluding SRF
were up +12.2% this quarter compared to third quarter 2021, and
reached -€764 million, due to an expanded portfolio of IT
projects (enhancement of the F/O platform and improvement of the
e-business offering) and to activity development (headcount and
compensation.) However, gross operating income was
down -5.0% compared to third quarter 2021 and reached
€532 million. The cost of risk recorded a net
provision of -€32 million, compared to a provision of -€14 million
in third quarter 2021, which can be explained by the provisioning
on credit risk of -€98 million and a reversal of legal risk
provisions of +€65 million in capital markets and investment
banking. Lastly, pre-tax income in third quarter
2022 stands at +€501 million, down -7.8% compared to third quarter
2021. The tax charge was €134 million. All in all, underlying
net income Group share was
€358 million in third quarter 2022, a decline of -13.9%
compared to the third quarter of 2021.
In first nine months of 2022, underlying
revenues rose +10.2% compared to the first nine
months of 2021, to €4,300 million, up +5.8% at constant
exchange rates. Financing activities continued to grow with
revenues up +12.4% in the first nine months while capital markets
and investment banking saw positive business momentum despite being
penalised by market valuations. The latter therefore did not rise
as much, +7.8% in the first nine months of 2022. Underlying
expenses excluding SRF increased by +9.4%, related
to the organic growth strategy and business development of CIB,
whereas SRF expenses were up more significantly in the first nine
months, by +30.2% to €384 million. Thus, underlying
gross operating income at €1,671 million was
up sharply (+7.6% compared to the first nine months of 2021.) The
cost of risk recorded a depreciation of -€236 million during
the first nine months of 2022, in keeping with the
conservative provisioning of Russian exposures in the first quarter
(a provision of -€346 million on performing loans in Russia in
the first quarter 2022), versus -€45 million in the first nine
months of 2021. The tax charge was -€366 million, up +15.6% and the
contribution from the business line to Net income Group
share was down by -7.4% to €1,045 million.
Risk-weighted assets at end September
2022 were up (+€11.4 billion compared with end June 2022,
of which +€5.5 billion was due to the foreign exchange impact
–market and credit- and +€2.2 billion of model effects namely
TRIM), totalling €144.0 billion.
Asset servicing results
In third quarter 2022, underlying
revenues of asset servicing were up a strong +8.3%
compared to third quarter 2021, to €312 million. This increase
was mainly due to the good performance of the interest margin over
the period (+40.3%), linked to the cash management activity, which
benefited from the rise of interest rates and offset the decline in
fee and commission income resulting from the market impact on
assets. Underlying operating expenses excluding
SRF were stable at €214 million (-0.6%), and benefited from
operational efficiency plans. As a result, underlying gross
operating income was up sharply by +34.7% to
€98 million in third quarter 2022. Underlying net
income totalled €79 million, a rise of +36.1%. After
sharing €25 million with non-controlling interests, the
business line’s contribution to underlying net income Group
share during third quarter 2022 was up +37.2% year-on-year
at €54 million.
Underlying revenues for the
first nine months of 2022 were up +7.9% compared to the first nine
months of 2021, driven by the increase in the net interest margin
(+23.4%) and flow activities, which offset the decrease in fee and
commission income linked to the drop in assets. Underlying expenses
excluding SRF were under control with a slight
increase of +1.0% as a result of the effect of the operational
efficiency plan. Underlying gross operating income
was up +20.3% compared to the first nine months of 2021 and
underlying net income was up +13.4%. The overall
contribution of the business line to net income Group
share in the first nine months of 2022 was
€120 million, a +23.3% increase.
Specialised financial services activity
Crédit Agricole Consumer Finance (CACF)
loan production was up 12.6% in third quarter 2022
compared with third quarter 2021, driven by very strong activity at
Agos (+16.8%) and the Automotive JVs (+22.9%), despite the
persistent shortages of electronic components in the automotive
market. At end September 2022, CACF’s total outstandings therefore
stood at €98.9 billion, i.e., +8.7% compared to end September
2021.
Crédit Agricole Leasing and Factoring
(CAL&F) commercial production in leasing
remains strong, increasing by +15.5% compared to third quarter
2021. Commercial production in factoring fell by -18.5% due to
macroeconomic conditions. Factored revenues, however, reached €28.4
billion, up +20.8%, under the effect of inflation, but also driven
by the rise of the pan-European platform. Leasing outstandings
reached €17 billion at end September 2022 (of which €13.6 billion
in France and €3.3 billion abroad), i.e. +5.8% compared to end
September 2021.
Specialised financial services’ results
The financial results of Specialised Financial
Services were impacted by some changes in scope.
For Consumer finance, CACF NL (classified under IFRS 5 since third
quarter 2020 and reinstated line by line on the third quarter 2021
results) was removed from the following comparisons between third
quarter 2022 and third quarter 2021; CACF Spain (formerly 50% owned
and equity-accounted, has been fully consolidated since third
quarter 2021) was not restated for the quarterly comparisons, but
only for the comparisons between the first nine months of 2022 and
the first nine months of 2021. Lastly, as regards Leasing and
Factoring, Olinn (acquired in fourth quarter 2021) was removed from
the quarterly and cumulative comparisons.
At constant
scope41, excluding CACF NL and
Olinn, underlying revenues from
specialised financial services amounted to €683 million in third
quarter 2022, up +2.2% compared to third quarter 2021, driven by
strong revenues from CACF. The underlying expenses excluding SRF
totalled -€341 million, i.e. a +1.9% increase. Underlying
gross operating income was up (+2.4%), while the
underlying cost/income ratio excluding SRF
remained low at 49.9% (-0.1 percentage point). The underlying
cost of risk increased by +32.0% compared to a
historically low third quarter 2021. Underlying net income group
share totalled €206.8 million, up by +4.1%.
The following data for the Specialised
Financial Services business line for the first
nine months of 2022 is presented on a like-for-like
basis42, excluding CACF Spain and
Olinn. Underlying revenues in Specialised
Financial Services increased by +1.6% compared to the
first nine months of 2021, driven by a good performance at CACF and
CAL&F. Underlying expenses excluding SRF were
up +1.8%. The
underlying cost/income ratio excluding SRF
remained low at 51.3%%, an increase of
+0.1 percentage point. The contribution to the
SRF amounted to -€34 million for the first nine months of
2022, an increase of +47.9%. The underlying cost of
risk increased slightly by +0.5%. The contribution of
equity-accounted entities in underlying terms increased by +0.2%.
Underlying net income Group share was therefore up
+2.3% at €585 million.
The business line contributed 13% to the
underlying net income Group share of
Crédit Agricole S.A.’s core businesses. (excluding
Corporate Centre division) in the first nine months of 2022 and 12%
to underlying revenues excluding Corporate Centre
division.
At 30 September 2022, the equity
allocated to the division was €5.5 billion and its
risk weighted assets were €58.4 billion.
The division’s underlying RoNE
(Return on Normalised Equity) stood at 14.9% for the first nine
months of 2022, versus 15.2% for 2021.
Consumer finance results
The following data for CACF for third
quarter 2022 is presented excluding
scope effect43, i.e. excluding
CACF NL. CACF’s underlying revenues reached €533.5 million, up
+3.1% compared to third quarter 2021, thanks to dynamic activity
and the gradual rise in customer rates, and despite the continued
rise in refinancing costs. Underlying expenses excluding SRF
increased +0.9%. Underlying gross operating income increased by
+5.2% and the underlying cost/income ratio excluding SRF remained
low at 48.2%%, a decline of -1.0 percentage point. The
contribution of equity-accounted entities in underlying terms
reached €82 million (+3.9%). The underlying cost of risk was
€140.4 million, up +43.4%, taking into account an
exceptionally low third quarter 2021 benchmark (€92 million, the
lowest level seen since first quarter 2019). Underlying taxes
amounted to -€32.4 million in third quarter 2022, down -33%.
Underlying net income Group share totalled €157.6 million in
third quarter 2022, up by +0.5%.
Concerning the level of risk
and changes in it, the following data is presented
excluding scope effect. The underlying cost of
risk reached -€141 million over the quarter, mainly due to
provisions for proven risks of -€129 million (Stage 3), as well as
provisions of -€7 million for performing loans (Stages 1 and 2);
the cost of risk for outstandings, which is in the
process of normalisation, reached 128 basis points over a rolling
four-quarter period44, identical to the average level for 2019.
After integrating the cost of risk of automotive JVs, it stands at
102 basis points; the non-performing loan ratio
stands at 5.0%, stable compared to end June 2022, and the coverage
ratio reached 88.4%, down -0.3 percentage point compared to end
June 2022.
The following data for CACF for the
first nine months of 2022 is presented
excluding scope
effect45, i.e. excluding CACF
Spain. Underlying revenues rose by 1.1% compared
to the first nine months of 2021, as the dynamic activity,
especially in less risky outstandings, and the gradual rise in
customer rates offset the rise in refinancing costs. Underlying
expenses excluding SRF were up +0.3%, the contribution to SRF
amounted to -€16 million (+65.3%), the underlying
cost/income ratio excluding SRF
remained low at 50.3%, down -0.4 point. Underlying gross operating
income increased (+1.1%). The underlying cost of risk increased by
+5.5% and reached -€340 million. The contribution of
equity-accounted entities rose by +0.2% in
underlying terms. All in all, the business line’s contribution to
underlying net income Group share amounted to
€468.7 million for the first nine months, up +0.3% in underlying
terms.
Leasing & Factoring
results
The following data for CAL&F for the
third quarter is presented excluding
scope effect46,
i.e. excluding Olinn. Underlying revenues totalled
€149 million, down -1.2% compared to
third quarter 2021. Underlying costs excluding SRF were
up by +5.2% due to activity growth and IT investments. The
underlying cost/income ratio excluding SRF
was 56.0%, an increase of +3.4 percentage points.
Underlying gross operating income thus fell by
-8.2%. The underlying cost of risk decreased
significantly (-39.0%) compared to third quarter 2021 which was
marked by high provisioning. Underlying net income Group
share was up +0.7% at €42.2 million.
The following data for CAL&F for the
first nine months of 2022 is presented
excluding scope
effect47, i.e. excluding Olinn.
Underlying
revenues were up 3.4% compared to end September
2021, thanks in particular to strong factoring activity. Underlying
expenses excluding SRF were up +6.7%, in line with
the growth in activity. The contribution to the SRF amounted to
-€18 million (+35.0%). This led to a decrease in underlying
gross operating income of -2.9%. The
underlying cost/income ratio excluding SRF
amounted to 54.7%, an increase of +1.7 percentage point.
The underlying cost of risk fell significantly in
2021 (-35.0%). Lastly, underlying net income Group
share was up +11.1% at €116 million.
Crédit Agricole S.A. Retail Banking
activity
The Crédit Agricole S.A.
Retail banking activity was strong this quarter,
driven at LCL by the production of corporate and professional loans
and at Crédit Agricole Italia by resilient commercial
activity.
Loan production at LCL
increased in third quarter 2022 compared to third quarter 2021
(+10%48), in corporate loans (+34%48 and professional loans
(+37%48) in particular. Home loan production, although slightly
down (-2%), remained at a high level, with average home loan
production rate higher than the average outstanding rate in the
third quarter. In this context, outstanding loans increased by
+9.2% since end September 2021, to €161.3 billion, including
+9.2% for home loans, +8.9% for loans to professionals, +10.6% for
corporate loans and +5.3% for consumer finance. Customer assets
were stable at +0.4% compared to end September 2021, driven by
on-balance sheet deposits (+2.4%) from the increase in passbooks
and time deposits, and despite off-balance sheet savings, which
fell by -3.1% due to an unfavourable market effect. Lastly, gross
customer capture was 263,400 in the first 9 months (85,400 in third
quarter), and the increase in the customer base was 43,400 in the
first 9 months of the year, and 16,500 in third quarter 2022. The
equipment rate for car, home, health, legal, all mobile phones or
personal accident insurance rose +0.6 percentage point compared
with third quarter 2021 to 27.1% at end September 2022. Lastly, in
October, LCL announced the launch of a 100% digital offering, LCL
Essentiel Pro, with extra-banking services for self-employed
professionals.
CA Italia’s activity was
resilient and benefited from the diversification of the Group’s
activities in Italy. Gross customer capture over nine months thus
reached 115,000 new customers. CA Italia’s loan outstandings at end
September 2022 amounted to €59.7 billion49. They were stable
compared to end September 2021, excluding the disposal of €1.5
billion in non-performing loans in fourth quarter 2021, and stable
compared to second quarter 2022. The production of corporate50 and
consumer51 loans was dynamic, respectively reaching +7% compared to
third quarter 2021 and +28% compared to the first nine months of
2021, and +23% compared to third quarter 2021 and +31% compared to
the first nine months 2021. Home loan production was resilient in a
declining market in Italy, allowing CA Italia to gain market share
year-on-year (6.2%52 in third quarter 2022 compared with 5.7% in
third quarter 2021). Customer assets at end September 2022 amounted
to €109.7 billion, down -3.3% due to a negative market effect on
managed savings and a decline in on balance sheet savings despite
positive inflows from individuals, professionals and private
banking.
For International Retail Banking excluding
Italy, outstanding loans were down -4.8% at end September 2022
compared to end September 2021 and customer assets were down -2.0%
over the same period. Excluding disposed entities or those held for
sale53, i.e while considering Poland, Egypt and Ukraine, loans
outstanding grew by +3.7% and customer assets +7.8% over the same
period.
In third quarter 2022, commercial activity was
up sharply in Poland and Egypt compared to third quarter 2021, with
a loan growth of +13.3% at constant exchange rates, especially in
Poland (+12.2%) and Egypt (+16.3%), and on-balance sheet savings up
by +17.2% at constant exchange rates (+16.5% in Poland and +18.7%
in Egypt).
The surplus of deposits over loans in Poland and
Egypt amounted to €2.0 billion at 30 September 2022, and
reached €2.6 billion including Ukraine.
Finally, the Group continues to expand its
universal customer-focused banking model in Poland. Gross customer
capture amounted to 28,000 new customers in the third quarter in
the country.
French retail banking
results
In third quarter 2022, underlying revenues at
LCL were stable at +0.6% compared to third quarter 2021, at
€940 million. The increase in fee and commission income
(+5.8%) offset the decline in the net interest margin (-4.0%)
related to the hike in refinancing costs (including the end of the
special interest period of Targeted Longer-Term Refinancing
Operations (TLTRO) at 30 June and customer resources (notably,
regulated savings).
On an underlying basis, expenses excluding SRF
were kept under control (+1.0% Q3/Q3) at €572 million this
quarter and the underlying cost/income ratio excluding SRF was
stable at 60.8%.
Underlying gross operating income was stable
over one year, while the cost of risk rose +31.4% to -€54 million
versus a low of -€41 million recorded in Q3 2021. The coverage
ratio remained high at 79.9% at end September, versus 82% at end
June 2022. The non-performing loans ratio was 1.4% at end June
2022, down 0.1 percentage point compared to end June 2022. As
a result, net income Group share fell -1.1% compared to third
quarter 2021.
Over the first nine months of 2022, LCL’s
revenues rose by +4.9% versus the first nine months of 2021 to
reach €2,902 million, driven by the net interest margin
(+3.7%), which was supported by corporate and professional activity
and, secondly, by fee and commission income (+6.3%), particularly
on non-life insurance and payment instruments. Underlying costs
excluding SRF rose in a controlled manner by +2.6% and by +1.9%
excluding SRF and FGD contributions. This led to an improvement in
the underlying cost/income ratio excluding SRF of
-1.3 percentage point compared to the first nine months of
half 2021, which stood at 60.0%. As a result, gross operating
income was up +8.0%. The cost of risk fell by -5.3% chiefly due to
the -25.8% decline in the first quarter 2022. All in all, the
business line’s contribution to net income Group rose sharply
by+17.7%.
LCL’s underlying RoNE (Return on Normalised Equity) stood at
18.8% for the first nine months of 2022, compared to 15.2% in
2021.
International Retail Banking
results
Within International Retail banking, Creval,
acquired by CA Italia, has been consolidated since 30 April 2021;
Crédit du Maroc has been classified under IFRS 5 since the quarter
2022; and Crédit Agricole Serbia was sold on 1 April 2022. The
income of these two latter entities is recognised in 2022 under
IFRS 5, impacting all profit and loss lines of International
Retail Banking excluding Italy on a quarterly and cumulative basis.
Net Income group share was null this quarter given the increase in
provisions. Moreover, the exceptional provision of -€21m on the
moratoria in Poland, net of revenues, was restated specifically in
third quarter 2022.
Underlying revenues of International Retail
Banking rose by +3.6% to €825 million in third quarter 2022.
Excluding Crédit du Maroc, Crédit Agricole Serbia and Crédit
Agricole Ukraine, underlying revenues of the international retail
banking division rose by +5.6% in third quarter 2022 compared to
the third quarter 2021. Underlying expenses excluding SRF were
stable at -€486 million in third quarter 2022. Excluding
Crédit du Maroc, Crédit Agricole Serbia and Crédit Agricole
Ukraine, expenses were up by +3.8%. As a result, underlying gross
operating income amounted to +€340 million, i.e an increase of
+9.3%. Excluding Crédit Agricole Serbia and Crédit du Maroc,
underlying GOI rose by +8.4%. The underlying cost of risk was
at-€120 million, i.e an increase of +10.2%, with the increase
coming from international retail banking outside Italy. All in all,
the underlying net income Group share of the International retail
banking division amounted to €127 million, i.e. 8.3% of the
net income Group share of Crédit Agricole S.A.’s business
lines (ie excluding Corporate Center). Excluding Crédit Agricole
Serbia and Crédit du Maroc, the underlying net income Group share
of the international retail banking division was up 7.3% over third
quarter 2021.
Over the first nine months of the year,
underlying revenues for the International retail banking division
rose by +5.8% to €2,424 million. Proforma for Creval, which
has been consolidated since 30 April 2021, excluding Crédit du
Maroc, which fell under IFRS 5 in first quarter 2022, and excluding
Crédit Agricole Serbia, sold on 1 April 2022, the revenues of the
International Retail Banking division rose by +2.7% over the first
nine months of 2022 compared with the first nine months of 2021.
Underlying operating expenses excluding SRF increased by +4.4% to
€1,443 million. Proforma for Creval and excluding Crédit
Agricole Serbia and Crédit du Maroc, they rose by +1.2%. As a
result, underlying gross operating income excluding SRF was
+€981 million, i.e an increase of +7.9%. Proforma for Creval
and excluding Crédit Agricole Serbia and Crédit du Maroc,
underlying GOI excluding SRF rose +5.5%. Cost of risk totalled
-€316 million, an increase of +3.8%. In all, the underlying
net income Group share of the International retail banking division
amounted to €361 million, i.e. 8.1% of the net income Group
share of Crédit Agricole S.A.’s business lines excluding
Corporate Center. Proforma for Creval, excluding Crédit Agricole
Serbia and Crédit du Maroc, the underlying net income Group share
of the international retail banking division was up 33.7% over the
first nine months of 2021.
Results in Italy
In third quarter 2022, underlying revenues of CA
Italia were stable (+0.9%) from third quarter 2021 and totalled
€619 million in a context of continued pressure on the net interest
margin in a competitive environment. Nevertheless, the upward trend
of the rates on home and corporate loans allowed for a higher rate
on production this quarter than the average rate on outstanding
loans as well as a stable net interest margin between the second
and third quarters in 2022. Banking fee and commission income rose
due to activity in property and casualty insurance and consumer
finance. Operating expenses were stable (+0.6%) at €376 million,
primarily thanks to cost synergies following the Creval
integration, resulting in a positive jaws effect of
+0.3 percentage point compared with third quarter 2021. Thus,
gross operating income increased by +1.6% compared to third quarter
2021. As CA Italia’s risk profile was improved by the disposal of
non-performing loans for €1.5 billion in fourth quarter 2021,
cost of risk/outstandings54 was 49 basis points and the
non-performing loans ratio as at 30 September 2022 stood at 3.7%
and the coverage ratio was 58.7%55. Net income Group share for CA
Italia was €101 million, up +12.0% compared to the third quarter of
2021.
Over the first nine months, underlying revenues
for Crédit Agricole Italia rose +10.5% to €1,859 million.
Proforma for the acquisition of Creval, which has been consolidated
since 30 April 2021, revenues were down -0.9%, related to the
competitive pressure on the net interest margin, offset by the rise
in fee and commission income, notably on property and casualty
insurance and consumer finance. Underlying expenses excluding SRF
were up compared to the first nine months of 2021 (+11.3%) at
-€1,116 million. Proforma Creval, expenses were down -1.6%,
with a positive jaws effect of 0.7 percentage point. The cost of
risk decreased -21.0%(-31% proforma for Creval). This translates
into net income Group share of €298 million for CA Italia, up
+33.7% compared to the first nine months of 2021 and +27% proforma
for Creval.
CA Italia’s underlying RoNE (Return on
Normalised Equity) was 13.4% for the first nine months of 2022.
Crédit Agricole Group in Italy
results
The Group’s underlying income in
Italy reflects an excellent performance from the
Group’s various business lines and was €685 million over the
first nine months of 2022, an improvement of +14% compared to the
first nine months of 2021. The Group’s income in Italy represents
16% of Crédit Agricole S.A.’s56 underlying income, and
Crédit Agricole Italia’s income represents 44% of the Group’s
income in Italy.
International Retail Banking results –
excluding Italy
In the scope of International Retail banking
excluding Italy, Crédit du Maroc was classified under IFRS 5 in
first half 2022, and Crédit Agricole Serbia was sold on 1 April
2022. The income of these two entities is recognised in 2022 under
IFRS 5, impacting all profit and loss lines of International
Retail Banking excluding Italy on a quarterly and cumulative
basis.
In a context of continued conflict in Ukraine,
commercial activity remains heavily penalised and the operations of
Crédit Agricole Ukraine reduced. Income was at zero this quarter
given the increase in provisions to the amount of gross operating
income.
The following data for the third quarter
for retail banking outside Italy is therefore presented
at constant scope57, i.e.,
excluding Crédit Agricole Serbia and Crédit du Maroc, and
excluding Crédit Agricole Ukraine. This scope thus
corresponds to the cumulative view of Egypt and
Poland. Revenues totalled €136 million in third quarter
2022, an increase of +12.0% over third quarter 2021, after the
impact of an exceptional provision of €21 million booked in
revenues for the moratorium on loans in Poland58. Restated for this
provision, revenues were up 29.3% in a context of higher rates.
Operating expenses excluding SRF rose +21.0% under the impact of
inflation. Gross operating income excluding SRF was €50 million,
and stable from third quarter 2021 (+41.0% after restatement of the
exceptional provision). Cost of risk totalled -€21 million, up
+12.0%. In all, the contribution of the business line to net income
Group share was €10 million, down -25.4% (+86.9% after
restatement of the exceptional provision).
The following data for the first nine
months of 2022 for Retail banking excluding Italy are
therefore presented at constant scope and excluding
Ukraine59. This scope
thus corresponds to the cumulative view of Egypt and Poland.
Revenues totalled €410 million and were up +15.9%
compared to the first nine months of 2021 (+21.9% excluding the
exceptional provision), in a context of higher rates, driven by the
growth in the interest margin in Poland and of the Corporates
activity in Egypt. Operating expenses excluding SRF rose +16.5% in
Poland in particular because of IT investments and investments to
support the growth of the activity. Gross operating income
excluding SRF was €166 million, an increase of +15.1% (+29.7%
excluding the exceptional provision). Cost of risk totalled
-€47 million, a decrease of -13.7%. In all, the contribution
of the business line to net income Group share was
€50 million, up +33.4% from first half 2021 (+72.3% after
restatement of the exceptional provision).
The underlying RoNE (Return on Normalised
Equity) of the other IRBs stands at 11.6% for the first nine months
of 2022, compared to 14.4% for 2021.
The International retail banking business line
contributed 8% to the underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) over the first nine months of 2022 and
14% to underlying revenues excluding the Corporate Centre.
The entire Retail banking business line
contributed 23% to the underlying net income Group share of
Crédit Agricole S.A.’s core businesses (excluding the
Corporate Centre division) over the first nine months of 2022 and
30% to underlying revenues excluding the Corporate Centre.
As at 30 September 2022, the equity allocated to
the division was €9.7 billion, including €4.8 billion for
French retail banking and €4.9 billion for International
retail banking. Risk weighted assets for the division totalled
€102.5 billion including €51.7 billion for French retail
banking and €50.7 billion for International retail
banking.
Corporate Centre results
The underlying net income Group share of the
Corporate Centre division was -€254 million in third quarter
2022, a drop of -€103 million from third quarter 2021. Revenue
was -€53 million in third quarter 2022, down -€53 million from
third quarter 2021, notably because of the elimination of the
intra-group securities subscribed by Prédica and Amundi, and the
end of the TLTRO additional special interest rate.The negative
contribution of the Corporate Centre can be analysed by
distinguishing between the «structural» contribution
(-€302 million) and other items (+€49 million). The
contribution of the «structural» component decreased by -€123
million compared to third quarter 2021 and can be broken down into
three types of activity:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution was
-€319 million in third quarter 2022, down -€125
million.
- The
sub-divisions that are not part of the core business lines, such as
CACIF (Private equity) and CA Immobilier and BforBank: their
contribution of +€8 million in third quarter 2022 was
stable compared to third quarter 2021.
- Group support
functions: their contribution was +€9 million this quarter (+€2
million compared to third quarter 2021), thanks to the steady
activity at Credit Agricole Payment Services.
The contribution of “other items” was up (+€20
million) compared to third quarter 2021 despite the eliminations on
intra-group securities underwritten by Prédica and Amundi.Corporate
income tax amounted to +€19 million in third quarter 2022, a
change of -€30 million compared to third quarter 2021, reflecting a
prudent vision before end of-year recalculation.
Over the first nine months of 2022, underlying
net income Group share of the Corporate Centre division was
-€544 million, down -€108 million compared to the
first nine months of 2021. The structural component
contributed -€778 million and other items of the division
recorded a positive contribution of +€234 million over the
first nine months of 2022. The “structural” component contribution
fell by -€196 million compared with the first nine months of
2021 and can be broken down into three types of activities:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution amounted to
-€834 million over the first nine months of 2022, down by -€179
million compared with the first nine months of 2021;
- The businesses
that are not part of the business lines, such as CACIF (Private
equity) and CA Immobilier and BforBank: their contribution of +€39
million over the first nine months of 2022 was down by -€27 million
compared with the first nine months of 2021.
- The Group’s
support functions: their contribution for the first nine months of
2022 was +€17 million, up +€10 million compared to the first nine
months of 2021.
The contribution of “other items” was up
compared to the first nine months of 2021 (+€88 million), due
in particular to the positive impact of the rise in spreads since
the beginning of the year on eliminations on intra-group securities
underwritten by Predica and Amundi.As at 30 September 2022, risk
weighted assets were €27.2 billion.
* *
*
Financial strength
Crédit Agricole Group
As at 30 September 2022, the phased-in
Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group
was 17.2%, a decrease of 0.3 percentage point compared to end June
2022. Therefore, Crédit Agricole Group posted a substantial buffer
of 8.3 percentage points between the level of its CET1 ratio
and the 8.9% SREP60 requirement. The fully loaded CET1 ratio is
16.9%.
- The CET1 ratio benefited this
quarter from the impact of the retained earnings
of +26 bp.
- The organic growth of
businesses contributes to risk weighted assets increase
for +€4.6 billion compared to end June 2022 (excluding the
foreign exchange impact of +€2.9 billion and Market impact RWA
of +€5.0 billion), of which €+1.2 billion for Regional Banks, for
an impact of -14 bp on the CET1 ratio.
- The CET1 ratio
was impacted this quarter by adverse market
effects of -24 basis points, weighing on both the
Insurance and Capital markets business lines. Impact
on OCI reserves (unrealised gains and/or losses)
related to the Insurance business represents -9 basis
points stemming primarily from the negative impact of the interest
rate hike on CAA unrealised gains and/or losses. The overall stock
of OCI reserves reached -19 basis points at 30 September 2022
(versus -11 basis points at end June 2022). Market effects on
Crédit Agricole Group CET1 related to the Capital
markets business had an impact of -15 basis points
(associated with heightened market risk and CVA risk and with the
foreign exchange impact on the counterparty risk of the trading
book).
- Lastly, “Other”
effects, regulatory and other contribute -13 basis points,
of which foreign exchange impact accounts for -3 bp and model
effects -5 bp.
It is worth noting that, restated for effects
from unrealised gains and/or losses, the CET1 ratio is stable over
the first nine months of 2022 at 17.4%, net of +16 basis points of
unrealised gains at end December 2021, and net of -19 basis points
of unrealised losses at end September 2022.
The phased-in Tier 1 ratio
stood at 18.4% and the phased-in total ratio was 21.3% this
quarter.
The phased-in leverage ratio
stood at 5.1%, down -0.2 percentage point compared to end June
2022, well above the regulatory requirement of 3%.
Risk weighted assets for the
Crédit Agricole Group amounted to €588.6 billion, up by +€9.1
billion compared to 30 June 2022. The organic growth
of businesses contributes to risk
weighted assets increase for +€4.6 billion (excluding the foreign
exchange impact of +€2.9 billion and Market impact RWA of +€5.0
billion), of which €+1.2 billion for Regional Banks. The
equity-accounted value of insurance had a negative impact
on risk weighted assets of -€5.1 billion, mainly due to
unfavourable changes in OCI reserves stemming primarily from the
negative impact of the 10 years SWAP interest rate hike of 80 basis
points this quarter. Risk weighted assets were also impacted this
quarter by an impact on Market RWA of CACIB for
€+5.0 billion, associated with the foreign exchange impact on the
counterparty risk of the trading book (RCTB) for €+2.4 billion, in
addition to market risk and CVA. The item “Methodology, regulatory
effects & others” had an impact on risk-weighted assets of
+€1.8 billion, mainly including the TRIM impact of the
quarter.
Maximum Distributable Amount (MDA)
trigger
The transposition of Basel regulations into
European law (CRD) introduced a restriction mechanism for
distribution that applies to dividends, AT1 instruments and
variable compensation. The Maximum Distributable Amount (MDA, the
maximum sum a bank is allowed to allocate to distributions)
principle aims to place limitations on distributions in the event
the latter were to result in non-compliance with combined buffer
requirements.
The distance to the MDA trigger is the lowest of
the respective distances to the SREP requirements in CET1 capital,
Tier 1 capital and total capital.
At 30 September 2022,
Crédit Agricole Group posted a buffer of
771 basis points above the MDA trigger, i.e.
€45 billion in CET1 capital.
At 30 September 2022, Crédit Agricole
S.A. posted a buffer of 310 basis points above the
MDA trigger, i.e. €12 billion in CET1 capital.
TLAC
The TLAC ratio requirement was transposed into
European Union law via CRR2 and has been applicable since 27 June
2019. Crédit Agricole Group must comply with the
following TLAC ratio requirements at all times:
- a TLAC ratio
above 18% of risk weighted assets (RWA), plus – in accordance with
EU directive CRD 5 – a combined capital buffer requirement
(including, for the Crédit Agricole Group, a 2.5% capital
conservation buffer, a 1% G-SIB buffer and the counter-cyclical
buffer set at 0.03% for the CA Group at 30/09/22). Considering the
combined capital buffer requirement, the Crédit Agricole Group must
adhere to a TLAC ratio of above 21.5%;
- a TLAC ratio of
above 6.75% of the Leverage Ratio Exposure (LRE).
The Crédit Agricole Group’s
2025 target is to maintain a TLAC ratio greater than or equal to
26% of RWA excluding eligible senior
preferred debt.
At 30 September 2022,
Crédit Agricole Group’s TLAC ratio stood
at 26.5% of RWA and 7.4% of leverage ratio exposure,
excluding eligible senior preferred
debt61, which is well above the
requirements. The TLAC ratio expressed as a percentage of
risk-weighted assets decreased by 20 bp over the quarter related to
the increase in RWA. Expressed as a percentage of leverage exposure
(LRE), the TLAC ratio also fell by 20 bp compared to June
2022.
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 500 bp higher, i.e.
€29 billion, than the current requirement of 21.5% of RWA.
Over the first nine months of 2022,
€3.8 billion equivalent was issued in the market (senior
non-preferred debt and Tier 2). The amount of
Crédit Agricole Group senior non-preferred securities
taken into account in the calculation of the TLAC ratio is
€26.5 billion.
MREL
The required minimum levels are set by decisions
of resolution authorities and then communicated to each
institution, then revised periodically. Since 1 January 2022, the
Crédit Agricole Group has to meet a minimum total MREL requirement
of:
- 21.04% of RWA,
plus – in accordance with EU directive CRD 5 – a combined
capital buffer requirement (including, for the Crédit Agricole
Group, a 2.5% capital conservation buffer, a 1% G-SIB buffer and
the counter-cyclical buffer set at 0.03% for the CA Group at
30/09/22). Considering the combined capital buffer requirement, the
Crédit Agricole Group must adhere to a total MREL ratio of above
24.6%;
- 6.02% of the
LRE.
At 30 September 2022, the Crédit
Agricole Group had an estimated MREL ratio of 30.7% of RWA and 8.6%
of leverage exposure, well above the total MREL
requirement.
An additional subordination requirement to TLAC
(“subordinated MREL”) is also determined by the resolution
authorities and expressed as a percentage of RWA and LRE, in which
senior debt instruments are excluded, similar to TLAC, which ratio
is equivalent to the subordinated MREL for the Crédit Agricole
Group. At 1 January 2022, this subordinated MREL requirement for
the Crédit Agricole Group did not exceed the TLAC requirement.
The distance to the maximum distributable amount
trigger related to MREL requirements (M-MDA) is the lowest of the
respective distances to the MREL, subordinated MREL and TLAC
requirements expressed in RWA.
At 30 September 2022, the Crédit
Agricole Group had a buffer of 500 basis
points above the M-MDA trigger, taking into account the TLAC
requirement applicable as at 30 September 2022, i.e.
€29 billion of CET1 capital.
Crédit Agricole S.A.
At end September 2022,
Crédit Agricole S.A.’s solvency level stood at the Medium
Term Plan Target, with a phased-in Common Equity Tier 1
(CET1) ratio of 11.0% (down 0.3 percentage point from
end June 2022). Crédit Agricole S.A. therefore had a substantial
buffer of 3.1 percentage points between the level of its CET1
ratio and the 7.9% SREP requirement62, compared with
3.4 percentage points at end June 2022. The fully loaded CET1
ratio is 10.7%.
- The CET1 ratio
benefited this quarter from a positive impact of +16 bp due to
retained earnings. In particular, the provision
for dividend distribution, based on a 50% income-distribution
policy, amounted to €0.58 per share for the first nine months, of
which €0.20 per share for third quarter 2022. This quarter
Crédit Agricole S.A. reiterated its intention to pay
€0.20 per share in 2023 as a 2019 dividend catch-up.
- The change in
risk weighted assets associated with organic growth of the
businesses excluding foreign exchange impact impacted the
CET1 ratio by -7 bp this quarter, an increase of +€2.3 billion, of
which +€1.3 billion in the Large customers division, +€1.7 billion
in the Specialised financial services division and -€0.9 billion in
the Insurance business, incorporating a 2022 interim dividend of
€700 million (i.e. -€2.6 billion RWA impact this quarter).
- The CET1 ratio
was impacted this quarter by adverse market
effects of -36 basis points, weighing on both the
Insurance and Capital markets business lines. Impact on
Crédit Agricole SA OCI reserves (unrealised gains and/or losses)
related to the Insurance business represents -21 basis
points stemming primarily from the negative impact of the interest
rate hike on CAA unrealised gains and/or losses. The overall stock
of OCI reserves reached -50 basis points at 30 September 2022
(versus -31 basis points at end June 2022). Market effects on
Crédit Agricole SA’s CET1 related to the Capital
markets business had an impact of -15 basis points
(associated with heightened market risk and CVA risk and with the
foreign exchange impact on the counterparty risk of the trading
book).
- The item
“Other” had an impact on the CET1 ratio by -7
basis points, with a neutral foreign exchange impact, with model
effects of -6 basis points, i.e., €+2.0 billion in risk-weighted
assets mainly on TRIM, and +3 basis points associated with the
capital increase reserved for employees performed on 30 August,
which will be related to a share buyback operation designed to
offset its dilutive effect.
Over the first nine
months of the year, the CET1 ratio fell -90 basis points,
-126 basis points of which can be explained by economic and market
effects, most of which are reversible over time: -84 basis points
for unrealised gains and/or losses, related primarily to the impact
of the credit rate hike on unrealised insurance gains and/or
losses, -18 basis points in RWA for credit risk associated with the
Russia/Ukraine crisis and -24 basis points in RWA for market risk.
Excluding these economic and market effects, capital generation was
positive, by +34 basis points in the first nine months of 2022,
including an impact of +47 basis points from retained income for
the past nine months, outpacing the effect of the organic growth of
the business lines, M&A and regulatory operations (specifically
the impact of the exceptional payment of a €2 billion dividend by
Crédit Agricole Assurances in the second quarter of 2022).
It is worth noting that, restated for effects
from unrealised gains and/or losses, the CET1 ratio is practically
stable over the first nine months of 2022: from 11.6% at end
December 2021 net of +31 basis points of unrealised gains, to
11.5%, net of -50 basis points of unrealised losses at end
September 2022.
The phased-in leverage ratio
was 3.4% at end September 2022, down -0.2 percentage point
compared to end June 2022, largely above the 3% requirement.
The phased-in Tier 1 ratio
stood at 12.8% and the phased-in total ratio was 17.1% this
quarter.
Risk weighted assets for the
Crédit Agricole S.A. amounted to €377.4 billion at end of
September, up by +€7.4 billion compared to 30 June 2022.
The organic growth of businesses contributes to
risk weighted assets increase for +€2.3 billion (excluding the
foreign exchange impact of +€2.9 billion and Market impact RWA of
+€5.0 billion), including +€1.7 billion in the Specialised
Financial Services Division, +€1.3 billion in the Large Customer
division, a stability in the Retail Banking division and €-0.9
,billion in the insurance division. The equity-accounted
value of insurance had a negative impact on risk weighted
assets of -€4.8 billion, mainly due to unfavourable changes in
OCI reserves stemming primarily from the negative impact of the 10
years SWAP interest rate hike of 80 basis points this quarter. Risk
weighted assets were also impacted this quarter by an impact on
Market RWA of CACIB for +€5.0 billion, associated
with the foreign exchange impact on the counterparty risk of the
trading book (RCTB) for +€2.4 billion, in addition to market risk
and CVA. The item “Methodology, regulatory effects & others”
had an impact on risk-weighted assets of +€2.0 billion, mainly
including the TRIM impact of the quarter.
Liquidity and Funding
Liquidity is measured at
Crédit Agricole Group level.
In order to provide simple, relevant and
auditable information on the Group’s liquidity position, the
banking cash balance sheet’s stable resources surplus is calculated
quarterly.
The banking cash balance sheet is derived from
Crédit Agricole Group’s IFRS financial statements. It is based on
the definition of a mapping table between the Group’s IFRS
financial statements and the sections of the cash balance sheet as
they appear in the next table and whose definition is commonly
accepted in the marketplace. It relates to the banking scope, with
insurance activities being managed in accordance with their own
specific prudential constraints.
Further to the breakdown of the IFRS financial
statements in the sections of the cash balance sheet, netting
calculations are carried out. They relate to certain assets and
liabilities that have a symmetrical impact in terms of liquidity
risk. Deferred taxes, fair value impacts, collective impairments,
short-selling transactions and other assets and liabilities were
netted for a total of €50 billion at end September 2022.
Similarly, €119 billion in repos/reverse repos were eliminated
insofar as these outstandings reflect the activity of the
securities desk carrying out securities borrowing and lending
operations that offset each other. Other nettings calculated in
order to build the cash balance sheet – for an amount totalling
€248 billion at end September 2022 – relate to derivatives,
margin calls, adjustment/settlement/liaison accounts and to
non-liquid securities held by Corporate and Investment banking
(CIB) and are included in the “Customer-related trading assets”
section.
Note that deposits centralised with Caisse des
Dépôts et Consignations are not netted in order to build the cash
balance sheet; the amount of centralised deposits (€78 billion
at end September 2022) is booked to assets under “Customer-related
trading assets” and to liabilities under “Customer-related
funds”.
In a final stage, other restatements reassign
outstandings that accounting standards allocate to one section,
when they are economically related to another. As such, senior
issues placed through the banking networks as well as financing by
the European Investment Bank, the
Caisse des Dépôts et Consignations and other
refinancing transactions of the same type backed by customer loans,
which accounting standards would classify as “Medium long-term
market funds”, are reclassified as “Customer-related funds”.
Note that for Central Bank refinancing
transactions, outstandings related to the T-LTRO (Targeted
Longer-Term Refinancing Operations) are included in “Long-term
market funds”. In fact, T-LTRO 3 transactions are similar to
long-term secured refinancing transactions, identical from a
liquidity risk standpoint to a secured issue.
Medium to long-term repos are also included in
“Long-term market funds”.
Finally, the CIB’s counterparties that are banks
with which we have a commercial relationship are considered as
customers in the construction of the cash balance sheet.
Standing at €1,706 billion at 30 September
2022, the Group’s banking cash balance sheet shows a
surplus of available stable funding over required stable funding of
€266 billion, down -€2 billion compared to end
June 2022 and down €27 billion compared to end September 2021
due to the credit growth momentum observed. The Group’s commercial
activity was very dynamic during the quarter, with a
+€20 billion increase in loans, offset in part by a +€15
billion increase in customer-related funds.
In addition, total T-LTRO 3 outstandings for the
Crédit Agricole Group amounts to €162 billion63 at
30 September 2022. It should be noted that the interest rate
applicable to the refinancing rate of these operations is accrued
over the drawdown period until 23 November 2022, pursuant to the
ECB announcement dated 27 October 2022. The special interest rate
is accrued over the related special interest rate period. The
special interest rate applicable to the refinancing rate for these
operations for the second period (June 2021 to June 2022) was taken
into account in Q2 2022 for all drawdowns.
It should be noted, with regard to the position
in available stable funding, that internal management excludes the
temporary surplus of stable resources provided by the increase in
T-LTRO 3 outstandings in order to secure the Medium-Term Plan’s
target of more than €110 billion to €130 billion,
regardless of the future repayment strategy.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 30 September
2022 (central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €353 billion at 30 September 2022, up
+€3 billion compared to end June 2022, and up +€6 billion
compared to end September 2021.
They included senior secured debt of
€224 billion, senior preferred debt of €78 billion,
senior non-preferred debt of €30 billion and Tier 2
securities amounting to €21 billion.
At 30 September 2022, the Group’s
liquidity reserves, at market value and after haircuts, amounted to
€462 billion, down €6 billion from end June 2022
and €7 billion from end September 2021. They covered
short-term net debt more than three times over (excluding the
replacements with Central Banks). The quarter is marked by a
technical decrease in value in liquidity reserves of eligible
Central Bank receivables, due primarily to the normalisation of ECB
haircuts (gradual end to exceptional easing measures instituted
early in the Covid crisis).
The high level of central bank deposits was the
result of the replacement of significant excess liquidity: they
amounted to €250 billion at 30 September 2022 (excluding cash
and mandatory reserves), up +€10 billion compared to end June
2022 and up +€7 billion compared to end September 2021.
Crédit Agricole Group also continued its efforts
to maintain immediately available reserves (after recourse to ECB
financing). Central bank eligible non-HQLA assets after haircuts
amounted to €92 billion.
Credit institutions are subject to a threshold
for the LCR ratio, set at 100% on 1 January 2018.
Average year-on-year LCR ratios at 30
September 2022 were respectively 167.7% for Crédit Agricole Group
and 147.4% for Crédit Agricole S.A. They exceeded the
Medium-Term Plan target (around 110%).
In the context of the COVID-19 health crisis,
the increase in the level of LCR ratios of Crédit Agricole Group
and Crédit Agricole S.A. was in line with the recourse of the Group
to T-LTRO 3 drawings from the central bank.
In addition, the NSFR of
Crédit Agricole Group and Crédit Agricole S.A.
exceeded 100%, in accordance with the regulatory
requirement applicable since 28 June 2021 and above the Medium-Term
Plan target (>100%).
The Group continues to follow a prudent policy
as regards medium-to-long-term refinancing, with a very diversified
access to markets in terms of investor base and
products.
At end September, the Group’s main
issuers raised the equivalent of
€35.1 billion64 in
medium-to-long-term debt on the markets, 41% of which was
issued by Crédit Agricole S.A.
In addition, €5.4 billion was also borrowed
from national and supranational organisations or placed in the
Group’s retail banking networks (Regional Banks, LCL, CA Italia)
and other external retail networks.
At end September,
Crédit Agricole S.A. had thus completed
111% of its €13 billion medium- to
long-term market funding programme65
for 2022. Funding in diverse formats (Senior
secured, Senior preferred, Senior non-preferred and Tier 2) and
currencies (EUR, USD, AUD, CHF, NOK, SGD, HKD,
JPY).
The bank raised the equivalent of
€14.5 billion64, of which €3.5 billion in senior
non-preferred debt and €0.3 billion in Tier 2 debt, as well as
€4.6 billion in senior preferred debt and €6.0 billion in
senior secured debt.
Since end September, Crédit Agricole S.A. also
completed additional refinancing of €1.1 billion, including a
senior non-preferred Social 4NC3-type issue of €1 billion.
Note that on 5 January 2022,
Crédit Agricole S.A. issued a perpetual NC7.7 year AT1
bond for USD1.25 billion at an initial rate of 4.75% (not
included in the refinancing plan).
Appendix 1 – Specific items, Crédit Agricole Group and
Crédit Agricole S.A.
|
Crédit Agricole Group – Specific
items, Q3-22,
Q3-21, 9M-22,
9M-21 |
|
|
|
|
|
|
|
Q3-22 |
Q3-21 |
|
9M-22 |
9M-21 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
14 |
10 |
4 |
3 |
|
5 |
4 |
5 |
4 |
|
Loan portfolio hedges (LC) |
|
(14) |
(11) |
(5) |
(4) |
|
59 |
44 |
(21) |
(15) |
|
Home Purchase Savings Plans (LCL) |
|
- |
- |
- |
- |
|
34 |
26 |
(10) |
(7) |
|
Home Purchase Savings Plans (CC) |
|
- |
- |
- |
- |
|
53 |
39 |
0 |
0 |
|
Home Purchase Savings Plans (RB) |
|
- |
- |
- |
- |
|
412 |
306 |
1 |
0 |
|
Reclassification of held-for-sale operations - NBI (IRB) |
|
- |
- |
(2) |
(2) |
|
0 |
0 |
(2) |
(2) |
|
Exceptional provisionning on moratoria Poland (IRB) |
|
(21) |
(17) |
- |
- |
|
(21) |
(17) |
- |
- |
|
Ongoing sale project NBI (WM) |
|
- |
- |
- |
- |
|
- |
- |
(1) |
(1) |
|
Total impact on revenues |
|
(22) |
(17) |
(4) |
(3) |
|
543 |
401 |
(28) |
(21) |
|
Creval integration costs (IRB) |
|
- |
- |
- |
- |
|
(30) |
(18) |
- |
- |
|
Lyxor integration costs (AG) |
|
(9) |
(4) |
- |
- |
|
(59) |
(31) |
- |
- |
|
S3 / Kas Bank integration costs (LC) |
|
- |
- |
- |
- |
|
- |
- |
(4) |
(2) |
|
Transformation costs (LC) |
|
- |
- |
(5) |
(3) |
|
- |
- |
(22) |
(11) |
|
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
- |
- |
(13) |
(9) |
|
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(2) |
|
Creval integrations costs (IRB) |
|
- |
- |
(9) |
(4) |
|
- |
- |
(9) |
(4) |
|
Reclassification of held-for-sale operations - Costs (IRB) |
|
- |
- |
(1) |
(1) |
|
(0) |
(0) |
(1) |
(1) |
|
Total impact on operating expenses |
|
(9) |
(4) |
(15) |
(7) |
|
(90) |
(49) |
(50) |
(29) |
|
Restatement SRF 2016-2020 (CR) |
|
- |
- |
- |
- |
|
- |
- |
55 |
55 |
|
Restatement SRF 2016-2020 (CC) |
|
- |
- |
- |
- |
|
- |
- |
130 |
130 |
|
Total impact on SRF |
|
- |
- |
- |
- |
|
- |
- |
185 |
185 |
|
Creval - Cost of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(25) |
(21) |
|
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
(195) |
(195) |
- |
- |
|
Total impact on cost of credit risk |
|
- |
- |
- |
- |
|
(195) |
(195) |
(25) |
(21) |
|
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Total impact equity-accounted entities |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Creval integrations costs (IRB) |
|
- |
|
1 |
|
|
- |
|
1 |
|
|
Creval acquisition costs (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(16) |
(9) |
|
Total impact on Net income on other assets |
|
- |
- |
1 |
- |
|
- |
- |
(15) |
(9) |
|
Badwill Creval (IRB) |
|
- |
- |
- |
- |
|
- |
- |
378 |
321 |
|
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
- |
- |
378 |
321 |
|
"Affrancamento" gain (IRB) |
|
- |
- |
- |
- |
|
- |
- |
38 |
32 |
|
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
- |
- |
114 |
80 |
|
Total impact on tax |
|
- |
- |
- |
- |
|
- |
- |
152 |
111 |
|
Capital gain La Médicale (GEA) |
|
101 |
101 |
- |
- |
|
101 |
101 |
- |
- |
|
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(1) |
(1) |
|
7 |
(10) |
(1) |
(1) |
|
Ongoing sale project (WM) |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Total impact on Net income from discounted or held-for-sale
operations |
|
101 |
101 |
(1) |
(1) |
|
94 |
91 |
3 |
3 |
|
Total impact of specific items |
|
71 |
79 |
(19) |
(12) |
|
352 |
248 |
605 |
545 |
|
Asset gathering |
|
92 |
97 |
- |
- |
|
42 |
70 |
116 |
82 |
|
French Retail banking |
|
- |
- |
|
- |
|
446 |
331 |
32 |
39 |
|
International Retail banking |
|
(21) |
(17) |
(12) |
(8) |
|
(253) |
(240) |
363 |
314 |
|
Specialised financial services |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Large customers |
|
(1) |
(0) |
(7) |
(4) |
|
64 |
48 |
(42) |
(24) |
|
Corporate centre |
|
- |
- |
|
- |
|
53 |
39 |
130 |
130 |
* Impact before tax and before minority interests
| Crédit
Agricole SA – Specific items Q3-22, Q3-21, 9M-22,
9M-21 |
it Agricole S.A. - Eléments spécifiques, T4-21 et T4-20, 2021 et
2020
|
|
|
Q3-22 |
Q3-21 |
|
9M-22 |
9M-21 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
DVA (LC) |
|
14 |
10 |
4 |
3 |
|
5 |
4 |
5 |
4 |
|
Loan portfolio hedges (LC) |
|
(14) |
(10) |
(5) |
(4) |
|
59 |
43 |
(21) |
(15) |
|
Home Purchase Savings Plans (FRB) |
|
- |
- |
- |
- |
|
34 |
24 |
(10) |
(7) |
|
Home Purchase Savings Plans (CC) |
|
- |
- |
- |
- |
|
53 |
39 |
0 |
0 |
|
Reclassification of held-for-sale operations - NBI (IRB) |
|
- |
- |
(2) |
(2) |
|
0 |
0 |
(2) |
(2) |
|
Exceptional provisionning on moratoria Poland (IRB) |
|
(21) |
(17) |
- |
- |
|
(21) |
(17) |
- |
- |
|
Ongoing sale project NBI (WM) |
|
- |
- |
- |
- |
|
- |
- |
(1) |
(1) |
|
Total impact on revenues |
|
(22) |
(17.4) |
(4) |
(3) |
|
131 |
93 |
(29) |
(21) |
|
S3 / Kas Bank integration costs (LC) |
|
- |
- |
- |
- |
|
- |
- |
(4) |
(2) |
|
Reclassification of held-for-sale operations - Costs (IRB) |
|
- |
- |
(0) |
(0) |
|
(0) |
(0) |
(0) |
(0) |
|
Transformation costs (LC) |
|
- |
- |
(5) |
(3) |
|
- |
- |
(22) |
(11) |
|
Transformation costs (FRB) |
|
- |
- |
- |
- |
|
- |
- |
(13) |
(9) |
|
Creval integration costs (IRB) |
|
- |
- |
(9) |
(4) |
|
- |
- |
(9) |
(4) |
|
Ongoing sale project Expenses (WM) |
|
- |
- |
- |
- |
|
- |
- |
(2) |
(2) |
|
Creval integration costs (IRB) |
|
- |
- |
- |
- |
|
(30) |
(16) |
- |
- |
|
Lyxor integration costs (AG) |
|
(9) |
(4) |
- |
|
|
(59) |
(30) |
|
|
|
Total impact on operating expenses |
|
(9) |
(4) |
(14) |
(7) |
|
(90) |
(46) |
(50) |
(28) |
|
Restatement SRF2016-2020 |
|
- |
- |
- |
- |
|
- |
- |
130 |
130 |
|
Total impact on SRF |
|
- |
- |
- |
- |
|
- |
- |
130 |
130 |
|
Creval - Cost of Risk stage 1 (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(25) |
(19) |
|
Provision for own equity risk Ukraine (IRB) |
|
- |
- |
- |
- |
|
(195) |
(195) |
- |
- |
|
Total impact on cost of credit risk |
|
- |
- |
- |
- |
|
(195) |
(195) |
(25) |
(19) |
|
"Affrancamento" gain (SFS) |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Total impact equity-accounted entities |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Creval integration costs (IRB) |
|
- |
- |
1 |
|
|
- |
|
1 |
|
|
Creval acquisition costs (IRB) |
|
- |
- |
- |
- |
|
- |
- |
(16) |
(8) |
|
Total impact Gains ou pertes sur autres
actifs |
|
- |
- |
1 |
- |
|
- |
- |
(15) |
(8) |
|
Badwill Creval (IRB) |
|
- |
- |
- |
- |
|
- |
- |
378 |
285 |
|
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
- |
- |
378 |
285 |
|
"Affrancamento" gain (IRB) |
|
- |
- |
- |
- |
|
- |
- |
38 |
28 |
|
"Affrancamento" gain (AG) |
|
- |
- |
- |
- |
|
- |
- |
114 |
78 |
|
Total impact on tax |
|
- |
- |
- |
- |
|
- |
- |
152 |
106 |
|
Reclassification of held-for-sale operations (IRB) |
|
- |
- |
(1) |
(1) |
|
(7) |
(10) |
(1) |
(1) |
|
Capital gain La Médicale (GEA) |
|
101 |
101 |
- |
- |
|
101 |
101 |
- |
- |
|
Ongoing sale project (WM) |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Total impact on Net income from discounted or held-for-sale
operations |
|
101 |
101 |
(1) |
(1) |
|
94 |
91 |
3 |
3 |
|
Total impact of specific items |
|
71 |
79 |
(19) |
(12) |
|
(60) |
(57) |
549 |
454 |
|
Asset gathering |
|
92 |
97 |
- |
- |
|
42 |
71 |
116 |
80 |
|
French Retail banking |
|
- |
- |
- |
- |
|
34 |
24 |
(23) |
(16) |
|
International Retail banking |
|
(21) |
(17) |
(12) |
(8) |
|
(253) |
(238) |
363 |
279 |
|
Specialised financial services |
|
- |
- |
- |
- |
|
- |
- |
5 |
5 |
|
Large customers |
|
(1) |
(0) |
(7) |
(4) |
|
64 |
47 |
(42) |
(24) |
|
Corporate centre |
|
- |
- |
- |
- |
|
53 |
39 |
130 |
130 |
* Impact before tax and before minority
interests
Appendix 2 – Credit Agricole Group: results by business
lines
Crédit Agricole Group – Results by business line, Q3-22 and
Q3-21
|
|
Q3-22 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,328 |
940 |
823 |
1,574 |
699 |
1,607 |
(45) |
8,927 |
|
Operating expenses excl. SRF |
(2,225) |
(572) |
(503) |
(802) |
(358) |
(978) |
(252) |
(5,689) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,103 |
368 |
320 |
772 |
341 |
630 |
(297) |
3,238 |
|
Cost of risk |
(273) |
(54) |
(119) |
(0) |
(151) |
(34) |
(5) |
(636) |
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
Equity-accounted entities |
0 |
- |
0 |
24 |
82 |
5 |
0 |
111 |
|
Net income on other assets |
1 |
0 |
0 |
(2) |
6 |
1 |
0 |
6 |
|
Income before tax |
831 |
314 |
202 |
794 |
278 |
602 |
(302) |
2,720 |
|
Tax |
(208) |
(75) |
(61) |
(143) |
(47) |
(156) |
27 |
(662) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
9 |
114 |
1 |
(1) |
(0) |
123 |
|
Net income |
623 |
240 |
151 |
765 |
232 |
445 |
(275) |
2,181 |
|
Non controlling interests |
(0) |
2 |
(27) |
(104) |
(27) |
(27) |
7 |
(177) |
|
Net income Group Share |
623 |
242 |
124 |
661 |
205 |
418 |
(268) |
2,004 |
|
|
Q3-21 (stated) |
|
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,408 |
934 |
1,573 |
810 |
704 |
1,528 |
11 |
8,969 |
|
Operating expenses excl. SRF |
(2,146) |
(566) |
(738) |
(509) |
(370) |
(901) |
(222) |
(5,452) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
1,262 |
368 |
835 |
301 |
335 |
627 |
(211) |
3,516 |
|
Cost of risk |
(136) |
(41) |
6 |
(109) |
(108) |
(12) |
(4) |
(403) |
|
Cost of legal risk |
- |
- |
- |
- |
- |
- |
- |
- |
|
Equity-accounted entities |
0 |
- |
25 |
1 |
79 |
2 |
- |
107 |
|
Net income on other assets |
(6) |
1 |
(0) |
0 |
(7) |
(3) |
0 |
(14) |
|
Income before tax |
1,118 |
329 |
865 |
193 |
299 |
615 |
(215) |
3,205 |
|
Tax |
(328) |
(88) |
(168) |
(60) |
(68) |
(135) |
55 |
(792) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
1 |
(3) |
(1) |
- |
(0) |
(3) |
|
Net income |
790 |
240 |
698 |
131 |
230 |
479 |
(159) |
2,410 |
|
Non controlling interests |
(0) |
0 |
(118) |
(21) |
(31) |
(17) |
(1) |
(187) |
|
Net income Group Share |
790 |
240 |
580 |
111 |
200 |
463 |
(161) |
2,222 |
Crédit Agricole Group – Results by business line, 9M-22 et
9M-21
|
|
9M-22 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10,760 |
2,936 |
2,457 |
4,962 |
2,072 |
5,300 |
242 |
28,728 |
|
Operating expenses excl. SRF |
(6,911) |
(1,740) |
(1,521) |
(2,526) |
(1,084) |
(2,905) |
(800) |
(17,486) |
|
SRF |
(156) |
(69) |
(38) |
(7) |
(34) |
(442) |
(56) |
(803) |
|
Gross operating income |
3,693 |
1,128 |
898 |
2,429 |
954 |
1,953 |
(615) |
10,440 |
|
Cost of risk |
(830) |
(158) |
(511) |
(6) |
(388) |
(236) |
(11) |
(2,140) |
|
Equity-accounted entities |
5 |
- |
2 |
64 |
240 |
11 |
0 |
323 |
|
Net income on other assets |
25 |
5 |
6 |
1 |
4 |
0 |
(0) |
41 |
|
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
2,893 |
974 |
395 |
2,489 |
810 |
1,729 |
(627) |
8,664 |
|
Tax |
(725) |
(250) |
(173) |
(497) |
(161) |
(435) |
78 |
(2,164) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
21 |
120 |
4 |
(1) |
- |
144 |
|
Net income |
2,168 |
724 |
243 |
2,112 |
652 |
1,292 |
(549) |
6,644 |
|
Non controlling interests |
(1) |
(0) |
(85) |
(310) |
(83) |
(63) |
2 |
(540) |
|
Net income Group Share |
2,167 |
724 |
159 |
1,802 |
569 |
1,229 |
(546) |
6,104 |
|
|
9M-21 (stated) |
|
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10,416 |
2,757 |
4,920 |
2,338 |
2,007 |
4,753 |
131 |
27,322 |
|
Operating expenses excl. SRF |
(6,649) |
(1,709) |
(2,272) |
(1,432) |
(1,032) |
(2,732) |
(667) |
(16,493) |
|
SRF |
(87) |
(59) |
(7) |
(33) |
(23) |
(328) |
58 |
(479) |
|
Gross operating income |
3,680 |
989 |
2,641 |
873 |
952 |
1,693 |
(478) |
10,350 |
|
Cost of risk |
(476) |
(167) |
(19) |
(331) |
(369) |
(38) |
(9) |
(1,410) |
|
Equity-accounted entities |
(11) |
- |
63 |
1 |
241 |
5 |
- |
299 |
|
Net income on other assets |
6 |
2 |
(1) |
(13) |
5 |
(39) |
3 |
(37) |
|
Change in value of goodwill |
- |
- |
- |
378 |
- |
0 |
- |
378 |
|
Income before tax |
3,199 |
824 |
2,684 |
908 |
828 |
1,621 |
(484) |
9,580 |
|
Tax |
(957) |
(239) |
(468) |
(132) |
(177) |
(355) |
134 |
(2,193) |
|
Net income from discontinued or held-for-sale operations |
- |
- |
5 |
(3) |
- |
- |
(0) |
2 |
|
Net income |
2,242 |
585 |
2,221 |
773 |
651 |
1,266 |
(350) |
7,389 |
|
Non controlling interests |
(1) |
(0) |
(385) |
(131) |
(82) |
(39) |
(4) |
(642) |
|
Net income Group Share |
2,241 |
585 |
1,837 |
642 |
569 |
1,227 |
(354) |
6,746 |
Appendix 3 – Crédit Agricole S.A.: results by
business line
Crédit Agricole S.A. – Results by business line, Q3-22 and
Q3-21
|
|
Q3-22 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,566 |
1,607 |
699 |
940 |
804 |
(53) |
5,564 |
|
Operating expenses excl. SRF |
(802) |
(978) |
(358) |
(572) |
(486) |
(208) |
(3,403) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
764 |
630 |
341 |
368 |
319 |
(261) |
2,161 |
|
Cost of risk |
(0) |
(34) |
(151) |
(54) |
(120) |
(1) |
(360) |
|
Equity-accounted entities |
24 |
5 |
82 |
- |
0 |
(9) |
102 |
|
Net income on other assets |
(2) |
1 |
6 |
0 |
0 |
0 |
5 |
|
Income before tax |
786 |
602 |
278 |
314 |
199 |
(271) |
1,909 |
|
Tax |
(141) |
(156) |
(47) |
(75) |
(60) |
19 |
(461) |
|
Net income from discontinued or held-for-sale operations |
114 |
(1) |
1 |
- |
9 |
(0) |
123 |
|
Net income |
759 |
445 |
232 |
240 |
148 |
(253) |
1,571 |
|
Non controlling interests |
(107) |
(33) |
(27) |
(13) |
(38) |
(1) |
(219) |
|
Net income Group Share |
652 |
412 |
205 |
227 |
110 |
(254) |
1,352 |
|
|
Q3-21 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,571 |
1,527 |
704 |
934 |
794 |
0 |
5,531 |
|
Operating expenses excl. SRF |
(738) |
(901) |
(370) |
(566) |
(495) |
(189) |
(3,259) |
|
SRF |
- |
- |
- |
- |
- |
- |
- |
|
Gross operating income |
833 |
626 |
335 |
368 |
299 |
(189) |
2,272 |
|
Cost of risk |
6 |
(12) |
(108) |
(41) |
(109) |
(2) |
(266) |
|
Equity-accounted entities |
25 |
2 |
79 |
- |
1 |
(4) |
103 |
|
Net income on other assets |
(0) |
(3) |
(7) |
1 |
0 |
(0) |
(8) |
|
Income before tax |
864 |
614 |
299 |
329 |
192 |
(196) |
2,101 |
|
Tax |
(168) |
(135) |
(68) |
(88) |
(59) |
49 |
(470) |
|
Net income from discontinued or held-for-sale operations |
1 |
- |
(1) |
- |
(3) |
- |
(3) |
|
Net income |
696 |
478 |
230 |
240 |
130 |
(147) |
1,628 |
|
Non controlling interests |
(123) |
(26) |
(31) |
(11) |
(31) |
(4) |
(226) |
|
Net income Group Share |
573 |
452 |
200 |
230 |
99 |
(151) |
1,402 |
Crédit Agricole S.A. – Results by business line, 9M-22 and
9M-21
|
|
9M-22 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
4,947 |
5,301 |
2,072 |
2,936 |
2,403 |
173 |
17,832 |
|
Operating expenses excl. SRF |
(2,526) |
(2,905) |
(1,084) |
(1,740) |
(1,474) |
(643) |
(10,371) |
|
SRF |
(7) |
(442) |
(34) |
(69) |
(38) |
(56) |
(647) |
|
Gross operating income |
2,414 |
1,954 |
954 |
1,128 |
891 |
(527) |
6,814 |
|
Cost of risk |
(6) |
(236) |
(388) |
(158) |
(510) |
(6) |
(1,303) |
|
Equity-accounted entities |
64 |
11 |
240 |
- |
2 |
(27) |
291 |
|
Net income on other assets |
1 |
0 |
4 |
14 |
6 |
0 |
26 |
|
Change in value of goodwill |
- |
- |
- |
- |
- |
- |
- |
|
Income before tax |
2,475 |
1,730 |
810 |
983 |
389 |
(559) |
5,827 |
|
Tax |
(493) |
(436) |
(161) |
(250) |
(172) |
74 |
(1,438) |
|
Net income from discontinued or held-for-sale operations |
120 |
(1) |
4 |
- |
21 |
- |
143 |
|
Net income |
2,101 |
1,293 |
652 |
733 |
238 |
(486) |
4,532 |
|
Non controlling interests |
(320) |
(82) |
(83) |
(33) |
(115) |
(19) |
(652) |
|
Net income Group Share |
1,782 |
1,211 |
569 |
700 |
123 |
(505) |
3,880 |
|
|
9M-21 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
4,919 |
4,753 |
2,007 |
2,757 |
2,289 |
119 |
16,843 |
|
Operating expenses excl. SRF |
(2,272) |
(2,732) |
(1,032) |
(1,709) |
(1,392) |
(573) |
(9,709) |
|
SRF |
(7) |
(328) |
(23) |
(59) |
(33) |
58 |
(392) |
|
Gross operating income |
2,640 |
1,693 |
952 |
989 |
864 |
(396) |
6,742 |
|
Cost of risk |
(19) |
(38) |
(369) |
(167) |
(329) |
(6) |
(929) |
|
Equity-accounted entities |
63 |
5 |
241 |
- |
1 |
(19) |
291 |
|
Net income on other assets |
(1) |
(39) |
5 |
2 |
(13) |
4 |
(42) |
|
Change in value of goodwill |
- |
0 |
- |
- |
378 |
- |
378 |
|
Income before tax |
2,683 |
1,621 |
828 |
824 |
901 |
(417) |
6,440 |
|
Tax |
(467) |
(355) |
(177) |
(239) |
(131) |
124 |
(1,245) |
|
Net income from discontinued or held-for-sale operations |
5 |
- |
- |
- |
(3) |
- |
2 |
|
Net income |
2,221 |
1,266 |
651 |
585 |
767 |
(293) |
5,197 |
|
Non controlling interests |
(402) |
(65) |
(82) |
(26) |
(193) |
(13) |
(781) |
|
Net income Group Share |
1,819 |
1,201 |
569 |
559 |
574 |
(306) |
4,416 |
Appendix 4 – Methods used to calculate earnings per
share, net asset value per share
|
Crédit Agricole S.A. – Earnings per share, net book value per share
and RoTE |
| Crédit
Agricole S.A. - data per share |
|
|
|
|
|
|
|
|
|
|
(€m) |
|
Q3-2022 |
Q3-2021 |
|
9M-22 |
9M-21 |
|
∆ Q3/Q3 |
∆ 9M/9M |
|
|
|
|
|
|
|
|
|
|
|
| Net income Group
share - stated |
|
1,352 |
1,402 |
|
3,880 |
4,416 |
|
(3.6%) |
(12.1%) |
| - Interests on
AT1, including issuance costs, before tax |
|
(119) |
(97) |
|
(327) |
(290) |
|
+22.7% |
+12.8% |
| NIGS
attributable to ordinary shares - stated |
[A] |
1,233 |
1,305 |
|
3,553 |
4,126 |
|
(5.5%) |
(13.9%) |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
3,029 |
3,050 |
|
2,957 |
2,979 |
|
(0.7%) |
(0.8%) |
| Net
earnings per share - stated |
[A]/[B] |
0.41 € |
0.43 € |
|
1.20 € |
1.38 € |
|
(4.8%) |
(13.2%) |
| Underlying net
income Group share (NIGS) |
|
1,273 |
1,414 |
|
3,937 |
3,962 |
|
(10.0%) |
(0.6%) |
| Underlying NIGS
attributable to ordinary shares |
[C] |
1,154 |
1,317 |
|
3,610 |
3,672 |
|
(12.4%) |
(1.7%) |
| Net
earnings per share - underlying |
[C]/[B] |
0.38 € |
0.43 € |
|
1.22 € |
1.23 € |
|
(11.8%) |
(0.9%) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
30/09/2022 |
30/09/2021 |
|
|
|
| Shareholder's
equity Group share |
|
|
|
|
64,295 |
66,809 |
|
|
|
| - AT1
issuances |
|
|
|
|
(5,988) |
(4,886) |
|
|
|
| - Unrealised
gains and losses on OCI - Group share |
|
|
|
|
3,338 |
(2,233) |
|
|
|
| - Payout
assumption on annual results* |
|
|
|
|
(1,763) |
(1,857) |
|
|
|
| Net book
value (NBV), not revaluated, attributable to ordin.
sh. |
[D] |
|
|
|
59,881 |
57,833 |
|
|
|
| - Goodwill &
intangibles** - Group share |
|
|
|
|
(18,386) |
(17,755) |
|
|
|
| Tangible
NBV (TNBV), not revaluated attrib. to ordinary sh. |
[E] |
|
|
|
41,495 |
40,078 |
|
|
|
| Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
|
|
3,039.5 |
3,043.9 |
|
|
|
| NBV per share ,
after deduction of dividend to pay (€) |
[D]/[F] |
|
|
|
19.7 € |
19.0 € |
|
|
|
| + Dividend to
pay (€) |
[H] |
|
|
|
0.00 € |
0.00 € |
|
|
|
| NBV per share ,
before deduction of dividend to pay (€) |
|
|
|
|
19.7 € |
19.0 € |
|
|
|
| TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
|
|
13.7 € |
13.2 € |
|
|
|
| * dividend
proposed to the Board meeting to be paid |
|
|
|
|
|
|
|
|
|
| ** including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
(€m) |
|
|
|
|
9M-22 |
9M-21 |
|
|
|
| Net income Group
share - stated |
[K] |
|
|
|
3,880 |
4,416 |
|
|
|
| Impairment of
intangible assets |
[L] |
|
|
|
0 |
0 |
|
|
|
| IFRIC |
[M] |
|
|
|
-682 |
-568 |
|
|
|
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*4/3+[M] |
|
|
|
5,401 |
6,077 |
|
|
|
| Interests on
AT1, including issuance costs, before tax, annualised |
[O] |
|
|
|
-436 |
-387 |
|
|
|
| Stated result
adjusted |
[P] = [N]+[O] |
|
|
|
4,965 |
5,690 |
|
|
|
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
|
|
40,471 |
38,961 |
|
|
|
| Stated ROTE
adjusted (%) |
= [P] / [J] |
|
|
|
12.3% |
14.6% |
|
|
|
| Underlying Net
income Group share |
[Q] |
|
|
|
3,937 |
3,962 |
|
|
|
| Underlying NIGS
annualised |
[R] = ([Q]-[M])*4/3+[M] |
|
|
|
5,477 |
5,471 |
|
|
|
| Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
|
|
5,041 |
5,085 |
|
|
|
| Underlying ROTE
adjusted(%) |
= [S] / [J] |
|
|
|
12.5% |
13.1% |
|
|
|
| ***
including assumption of dividend for the current exercise |
|
|
|
0.0% |
0.0% |
|
|
|
Alternative Performance Indicators
NBV Net Book Value not
re-evaluatedThe Net Book Value not re-evaluated
corresponds to the shareholders’ equity Group share from which the
amount of the AT1 issues, the unrealised gains and/or losses on OCI
Group share and the pay-out assumption on annual results have been
deducted.
NBV per share Net Book Value per share -
NTBV per share Net Tangible Book Value per shareOne of the
methods for calculating the value of a share. This represents the
Net Book Value divided by the number of shares in issue at end of
period, excluding treasury shares.
Net Tangible Book Value per share represents the
Net Book Value after deduction of intangible assets and goodwill,
divided by the number of shares in issue at end of period,
excluding treasury shares.
EPS Earnings per ShareThis is
the net income Group share, from which the AT1 coupon has been
deducted, divided by the average number of shares in issue
excluding treasury shares. It indicates the portion of profit
attributable to each share (not the portion of earnings paid out to
each shareholder, which is the dividend). It may decrease, assuming
the net income Group share remains unchanged, if the number of
shares increases.
Cost/income ratioThe
cost/income ratio is calculated by dividing operating expenses by
revenues, indicating the proportion of revenues needed to cover
operating expenses.
Cost of
risk/outstandingsCalculated by dividing the cost of credit
risk (over four quarters on a rolling basis) by outstandings (over
an average of the past four quarters, beginning of the period). It
can also be calculated by dividing the annualised cost of credit
risk for the quarter by outstandings at the beginning of the
quarter. Similarly, the cost of risk for the period can be
annualised and divided by the average outstandings at the beginning
of the period.
Since the first quarter of 2019, the
outstandings taken into account are the customer outstandings,
before allocations to provisions.
The calculation method for the indicator is
specified each time the indicator is used.
Doubtful loanDefaulting loan.
The debtor is considered to be in default when at least one of the
following conditions has been met:
- a payment
generally more than 90 days past due, unless specific circumstances
point to the fact that the delay is due to reasons independent of
the debtor’s financial situation;
- the entity
believes that the debtor is unlikely to settle its credit
obligations unless it avails itself of certain measures such as
enforcement of collateral security right.
Impaired loanLoan which has
been provisioned due to a risk of non-repayment.
MREL
The MREL (Minimum Requirement for Own Funds and
Eligible Liabilities) ratio is defined in the European “Bank
Recovery and Resolution Directive” (BRRD). This Directive
establishes a framework for the resolution of banks throughout the
European Union, with the aim to provide resolution authorities with
shared instruments and powers to pre-emptively tackle banking
crises, preserve financial stability and reduce taxpayers’ exposure
to losses. Directive (EU) 2019/879 of 20 May 2019 known as “BRRD2”
amended the BRRD and was transposed into French law by Order
2020-1636 of 21 December 2020.
The MREL ratio corresponds to an own funds and
eligible liabilities buffer required to absorb losses in the event
of resolution. Under BRRD2, the MREL ratio is calculated as the
amount of eligible capital and liabilities expressed as a
percentage of risk weighted assets (RWA), as well as a leverage
ratio exposure (LRE).
Are eligible for the numerator of the total MREL
ratio the Group’s regulatory capital, as well as eligible
liabilities issued by the central body and the Crédit Agricole
network affiliated entities, i.e. subordinated notes, senior
non-preferred debt instruments and certain senior preferred debt
instruments with residual maturities of more than one year.
Impaired (or doubtful)
loan coverage ratioThis ratio divides the outstanding
provisions by the impaired gross customer outstandings.
Impaired (or doubtful)
loan ratioThis ratio divides the gross customer
outstandings depreciated on an individual basis, before provisions,
by the total gross customer outstandings.
TLAC
The Financial Stability Board (FSB) has defined
the calculation of a ratio aimed at estimating the adequacy of the
bail-in and recapitalisation capacity of Global Systemically
Important Banks (G-SIBs). This
Total Loss Absorbing Capacity (TLAC) ratio provides
resolution authorities with the means to assess whether G-SIBs have
sufficient bail-in and recapitalisation capacity before and during
resolution. It applies to Global Systemically Important Banks, and
therefore to Crédit Agricole Group.
Are eligible for the numerator of the TLAC ratio
the Group’s regulatory capital as well as subordinated notes and
eligible senior non-preferred debt with residual maturities of more
than one year issued by Crédit Agricole S.A.
Net income Group shareNet
income/(loss) for the financial year (after corporate income tax).
Equal to net income Group share, less the share attributable to
non-controlling interests in fully consolidated subsidiaries.
Underlying Net income Group
shareThe underlying net income Group share represents the
stated net income Group share from which specific items have been
deducted (i.e. non-recurring or exceptional items).
Net income Group share attributable to
ordinary shares The net income Group share attributable to
ordinary shares represents the net income Group share from which
the AT1 coupon has been deducted, including issuance costs before
tax.
RoTE Return on Tangible
EquityThe RoTE (Return on Tangible Equity) measures the
return on tangible capital by dividing the Net income Group share
annualised by the group’s NBV net of intangibles and goodwill. The
annualised Net income Group share corresponds to the annualisation
of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding
impairments of intangible assets and restating each period of the
IFRIC impacts in order to linearise them over the year.
Disclaimer
The financial information on
Crédit Agricole S.A. and Crédit Agricole Group
for the third quarter and first nine months of 2022 comprises this
presentation and the attached appendices and press release which
are available on the website:
https://www.credit-agricole.com/finance/finance/publications-financieres.
This press release may include prospective
information on the Group, supplied as information on trends. This
data does not represent forecasts within the meaning of EU
Delegated Act 2019/980 of 14 March 2019 (chapter 1, article 1,
d).
This information was developed from scenarios
based on a number of economic assumptions for a given competitive
and regulatory environment. Therefore, these assumptions are by
nature subject to random factors that could cause actual results to
differ from projections. Likewise, the financial statements are
based on estimates, particularly in calculating market value and
asset impairment.
Readers must take all these risk factors and
uncertainties into consideration before making their own
judgement.
Applicable standards and
comparability
The figures presented for the six-month period
ending 30 September 2022 have been prepared in accordance with IFRS
as adopted in the European Union and applicable at that date, and
with prudential regulations currently in force. This financial
information does not constitute a set of financial statements for
an interim period as defined by IAS 34 “Interim Financial
Reporting” and has not been audited.
Note: The scopes of consolidation of the
Crédit Agricole S.A. and Crédit Agricole Groups have not
changed materially since the Crédit Agricole S.A. 2021
Universal Registration Document and its A.01 update (including all
regulatory information about the Crédit Agricole Group) were filed
with the AMF (the French Financial Markets Authority).
The sum of values contained in the tables and
analyses may differ slightly from the total reported due to
rounding.
At 30 June 2021, following the buyback by
Crédit Agricole Consumer Finance of 49% of the share
capital of the CACF Bankia S.A. joint venture, CACF Bankia S.A. is
fully consolidated in Crédit Agricole S.A.’s consolidated
financial statements.
As at 30 June 2021 following the takeover bid
launched by Crédit Agricole Italia for Credito Valtellinese, 100%
of Credito Valtellinese is held by Crédit Agricole Italia and is
fully consolidated in the consolidated financial statements of
Crédit Agricole S.A.
At 31 December 2021, Amundi announcement
completion of the Lyxor acquisition. Lyxor is fully consolidated in
the consolidated financial statements of Crédit Agricole S.A. The
transaction had no impact on Crédit Agricole S.A.’s consolidated
income at 31 December 2021.
Financial Agenda
10 November
2022 Publication
of the 2022 third quarter and first 9 months results9
February
2023 Publication
of the 2022 fourth quarter and full year results10 May
2023 Publication
of the 2023 first quarter results17 May
2023 Annual
General Meeting in Paris4 August
2023 Publication
of the 2023 third quarter and the first half year results8 November
2023 Publication
of the 2023 third quarter and first 9 months results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Olivier Tassain +
33 1 43 23 25
41 olivier.tassain@credit-agricole-sa.frMathilde
Durand
+ 33 1 57 72 19
43
mathilde.durand@credit-agricole-sa.frBertrand
Schaefer +33 (0)1 49
53 43
76 bertrand.schaefer@ca-fnca.fr
CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS
| Institutional
shareholders |
+ 33 1 43 23 04
31 |
investor.relations@credit-agricole-sa.fr |
| Individual
shareholders |
+ 33 800
000 777 (freephone number – France only) |
relation@actionnaires.credit-agricole.com |
| |
|
|
| Clotilde
L’Angevin |
+ 33 1 43 23 32
45 |
clotilde.langevin@credit-agricole-sa.fr |
|
Equity investors: |
|
|
| Jean-Yann
AsserafFethi Azzoug |
+ 33 1 57 72 23
81+ 33 1 57 72 03 75 |
jean-yann.asseraf@credit-agricole-sa.fr
fethi.azzoug@credit-agricole-sa.fr |
| Joséphine
Brouard |
+ 33 1 43 23 48
33 |
joséphine.brouard@credit-agricole-sa.fr |
| Oriane Cante |
+ 33 1 43 23 03
07 |
oriane.cante@credit-agricole-sa.fr |
| Nicolas
Ianna |
+ 33 1 43 23 55
51 |
nicolas.ianna@credit-agricole-sa.fr |
| Leila Mamou |
+ 33 1 57 72 07
93 |
leila.mamou@credit-agricole-sa.fr |
| Anna
Pigoulevski |
+ 33 1 43 23 40
59 |
anna.pigoulevski@credit-agricole-sa.fr |
| Annabelle
Wiriath |
+ 33 1 43 23 55
52 |
annabelle.wiriath@credit-agricole-sa.fr |
| |
|
|
|
Credit investors and rating agencies: |
|
| Caroline
Crépin |
+ 33 1 43 23 83
65 |
caroline.crepin@credit-agricole-sa.fr |
| Florence Quintin
de Kercadio |
+ 33 1 43 23 25
32 |
florence.quintindekercadio@credit-agricole-sa.fr |
| Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@credit-agricole-sa.fr |
| |
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1 At constant scope (excluding La Médicale for 3M and 9M-21),
revenues for property and casualty insurance and personal
protection2 SFR excluded3 Underlying RoTE calculated on the basis
of annualised underlying net income Group share and annualised
IFRIC costs4 Crédit Logement reported a -27% drop in Q3 2022
in production in the portfolio of transactions it guarantees
(Observatoire Crédit Logement - 18/10/2022). Banque de France
reported a -11% decrease in home loan production in June, July and
August 2022 5 Car, home, legal, all mobile phones, or personal
accident insurance6 See Appendixes for more details on specific
items.
7 At constant scope: Creval (IRB) and Lyxor (AG)
were added in 20218 The cost of risk relative to outstandings (in
basis points) on a four quarter rolling basis is calculated on the
cost of risk of the past four quarters divided by the average
outstandings at the start of each of the four quarters9 The cost of
risk relative to outstandings (in basis points) on an annualised
basis is calculated on the cost of risk of the quarter multiplied
by four and divided by the outstandings at the start of the
quarter10 Analysis based on 30/09 data for Crédit Agricole S.A. and
the Crédit Agricole Group, as well as 30/06/2022 publications on
customer loans, Stage 3 outstandings and Stage 1, 2 and 3
provisions from Banco Santander, Barclays, BNP Paribas, Groupe
BPCE, Crédit Agricole Group, Crédit Agricole S.A., Crédit Suisse,
Deutsche Bank, HSBC, ING, Société Générale, Standard Chartered,
UBS, and finally from the 31/12/2021 Unicredit publication
11 Number of customers with an active profile on
the Ma Banque app or who had visited CAEL (CA online) during the
month/number of adult customers having an active demand deposit
account12 Signatures initiated in BAM (multi-channel bank access)
deposit mode, for which the final signing medium is BAM, the mobile
customer portal or the Ma Banque app13 Specialised markets:
farmers, professionals, corporates and public authorities14 Source:
Observatoire Crédit Logement - 18/10/202215 Average quarterly
rates, all markets, all loans (fixed rate term loans in euros)16
Underlying, excluding specific items. See Appendixes for more
details on specific items. 17 Provisioning rate calculated with
outstandings in Stage 3 as denominator, and the sum of the
provisions recorded in Stages 1, 2 and 3 as numerator18 In the
context of the finalisation of the Creval Purchase Price Allocation
(PPA), reallocation of the B1 and B2 provisions as a deduction from
the associated customer outstandings, resulting in a decrease in
the Crédit Agricole S.A. coverage ratio of 1.0 percentage point19
The cost of risk relative to outstandings (in basis points) on a
four quarter rolling basis is calculated on the cost of risk of the
past four quarters divided by the average outstandings at the start
of each of the four quarters20 The cost of risk relative to
outstandings (in basis points) on an annualised basis is calculated
on the cost of risk of the quarter multiplied by four and divided
by the outstandings at the start of the quarter21
See Appendixes for
more details on specific items.
22 See details on the calculation of the
business lines’ RoTE (return on tangible equity) and RONE (return
on normalised equity) on p. 3723 The annualised underlying net
income Group share corresponds to the annualisation of the
underlying net income Group share (Q1x4; H1x2; 9Mx4/3) by restating
each period for IFRIC impacts to linearise them over the year24
Créval (in International retail banking) and Lyxor (in Asset
gathering) added in 202125 In order to be certain about comparable
data, the comparison with the sample of European banks was made on
the basis of a reported cost/income ratio, including SRF.26 Société
Générale; BNP Paribas; Banco Santander; UniCredit; Crédit Suisse;
UBS; Deutsche Bank; HSBC; Standard Chartered; Barclays 27 As a
reminder, as of 30 June 2022 the provisions for the Policy
Participation Reserve (PPE) reached €13.8 billion, i.e. 6.5%
of total outstandings (+0.7 pp compared to June 2021). At end
2021, the average yield of the Crédit Agricole Assurances group’s
assets was 2.26% (2.13% at end 2020), well above the average
guaranteed minimum rate (0.16% at end 2021, compared to 0.20% at
end 2020) and the profit sharing rate of euro-denominated policies
of 1.28% at the end of 2021, stable compared to the end of 2020.28
Source: Argus de l’Assurance 202229 Constant scope: excluding La
Médicale for 3M and 9M-2130 Scope: Property & Casualty France
and International; decrease vs. June 2022 in connection with the
disposal of La Médicale to Generali31 LCL Private Banking and
Indosuez Wealth Management32 Constant scope: excluding La Médicale
for 3M and 9M-2133 Constant scope: excluding La Médicale for 3M and
9M-2134 Contribution sociale de solidarité des sociétés/corporate
social welfare tax35 Constant scope: Lyxor data added for the 3M
and 9M 202136 Indosuez Wealth Management scope37 Refinitiv38
Bloomberg39 Based on 31 March 2022 figures; for assets under
administration, incl. €734 billion from Transfer Agency40 Estimated
on figures as at 30 June 2022
41 Not adjusted for scope, in third
quarter 2022, compared to third quarter 2021: Revenues
totalled €699.3 million, down -0.7% compared to the first nine
months of 2021. The division’s expenses excluding SRF stood at
-€358 million, a decrease of -3.3%. Gross operating income was
up +2.0% and the cost/income ratio excluding SRF remained low at
51.2% (down-1.3 percentage point). The cost of risk was up
+40.3%, given a particularly low 2021 cost of risk benchmark at
CACF. The Specialised Financial Services division’s net income
Group share amounted to €204.6 million in the first nine months of
2022, up +2.5%.42 Not adjusted for scope, at end September
2022, and compared to end September 2021, Specialised
Financial Services revenues increased by +3.2%. Costs excluding SRF
increased +5.1%. The cost/income ratio excluding SRF
remained low at 52.3%%, up +0.9 percentage point. The
cost of risk was up +5.0%. The contribution of equity-accounted
entities rose +2.1% in underlying terms (stable in stated terms).
Net income Group share was thus €568.8 million, up +0.8% from
the first nine months of 2021 (-0.1% in stated terms).43
Not adjusted for scope, in third quarter 2022, compared to
third quarter 2021: CACF’s revenues totalled €542 million,
down -2.0%. CACF’s expenses fell by -7.6%. Gross operating income
was up +4.3% and the cost/income ratio excluding SRF remained low
at 49.5% (down 3.0 percentage points). The contribution of
equity-accounted entities reached €82 million in third quarter 2022
(+3.9%). The cost of risk was up +53.6%. Taxes amounted to -€32.4
million in third quarter 2022, down -39.6%. All in all, net income
Group share totalled €154 million in third quarter 2022, down
-2.1% compared to third quarter 2021.44 Cost of risk for the last
four quarters as a proportion of the average outstandings at the
beginning of the period for the last four quarters45
Not adjusted for scope, at end September 2022, and compared
to end September 2021, revenues reached €1,597 million, an
increase of +1.8%. Costs excluding SRF were up by +2.2%; the SRF
contribution was -€16 million; the cost/income ratio excluding
SRF remained low at 51.2%, up +0.2 percentage point. Gross
operating income was up +0.6%. The cost of risk was up +10.2%. The
contribution of equity-accounted entities rose +2.1% in underlying
terms and was stable in stated terms. All in all, the business
line’s contribution to net income Group share amounted to €444
million for the first nine months of 2022, down -3.4% in underlying
terms and -4.5% in stated terms.46 Not adjusted for scope,
in third quarter 2022, compared to third quarter 2021:
CAL&F’s revenues totalled €157 million, up +3.7%. Expenses
increased by +12.6%. As a result, gross operating income was down
-6.1%, and the cost/income ratio excluding SRF was 57.1%, up
4.5 percentage points. The cost of risk fell sharply by
-37.2%. The quarter recorded an earn-out of €7 million for Olinn in
net income on other assets. Taxes totalled -€15 million, a
+7.5% increase. All in all, net income Group share reached
€50 million, an increase of +19.7%.47 Not adjusted for
scope, at end September 2022, and compared to end September
2021, revenues reached €474,9 million, an increase of
+8.3%. Costs excluding SRF were up by +14.8%; the SRF contribution
was -€18 million; the cost/income ratio excluding SRF was
56.2%, up +3.2 percentage point. Gross operating income was
slightly decreasing (+1.3%). The cost of risk was down -33.6%. An
earn-out of €7 million for Olinn was recognised in net income on
other assets sold. All in all, the business line’s contribution to
net income Group share amounted to €125 million for the first nine
months of 2022, up +19.4%48 Excluding state-guaranteed loans49
These outstandings are gross of POCI, with POCI outstandings of
€0.6 billion in September 202250 Excluding “Ecobonuses”, the
production of which increased 3.5 times that of the first nine
months of 2021. “Ecobonuses” correspond to refinancing of the
customer tax credit: Italian tax deductions for renovation, energy
efficiency and building safety, introduced in 2021. Excluding
SGL.51 Agos52 Source: CRIF53 Disposed or held for sale entities:
Romania classified under IFRS 5 in Q1 2021 (disposal effective Q3
2021); Serbia classified under IFRS 5 since Q2 2021 (disposal
effective 1 April 2022) and Crédit du Maroc classified under IFRS 5
since Q1 2022.54 Over a rolling four quarter period55 In the
context of the finalisation of the Creval Purchase Price Allocation
(PPA), reallocation of the Bucket 1 and Bucket 2 provisions as a
deduction from the associated outstandings, resulting in a decrease
in the coverage ratio of 5.6 percentage points 56 Excluding
Corporate Center57 Without restatement for scope,
in third quarter 2022 versus third quarter
2021: the underlying revenues of Retail
banking excluding Italy was €207 million, an
increase of +12.4% (+2.3% stated).Underlying expenses declined by
-2.0% (-2.4% stated). Underlying gross operating income rose by
+34.6% (+9.9% stated) and the underlying cost/income ratio
excluding SRF was 52.9% (58.9% stated), down 7.8 percentage points.
Cost of risk was up, rising from -€29 million to -€58 million
because of the provisioning on Ukraine. Underlying taxes amounted
to -€13 million in third quarter 2022, down -10.1%.In all,
underlying net income Group share totalled €27 million in
third quarter 2022, down +57,8% compared to third quarter 2021 (net
income Group share totalled €10 million, decreasing of -24.1%
stated).58 Provision covering the eight months of Credit Holidays
deducted from revenues
59 Without restatement for
scope, over the first nine months of 2022 versus
the first nine months in 2021: the underlying
revenues of Retail banking excluding Italy was
€565 million, a decrease of -7.2% (-10.3% stated).
Underlying expenses declined by -13.9% (-14% stated). Underlying
gross operating income increased by +4,0% (-4.1% stated) and the
underlying cost/income ratio excluding SRF was 57,9% (60.2%
stated), down 4.5 percentage points. Cost of risk was up, rising
from -€74 million to -€134 million because of the provisioning on
Ukraine. The stated cost of risk declined from -€74 million to
-€329 million as a result of the provisions on Ukraine (additional
provisions recorded each quarter in 2022, and provisioning for the
net position of Ukraine in the first quarter recorded under
specific items). Underlying taxes amounted to -€37 million in
third quarter 2022, down -28,3% (-36.1% stated). In all, over the
first nine months of 2022, underlying net income Group share was
€63 million, down -12.7% vs the first nine months of 2021 (down
from €68 million to -€159 million stated).60 Countercyclical buffer
of 3 bp at 30 September 2022, expected to be 41 bp at 30
September 2023 for the Crédit Agricole Group based on
information known to date, in particular the increase in the French
countercyclical buffer rate to 0.50%, which comes into force in
April 2023. 61 As part of its annual resolvability assessment,
Crédit Agricole Group has chosen to waive the possibility offered
by Article 72ter(3) of the Capital Requirements Regulation to use
senior preferred debt for compliance with its TLAC requirements in
2022.62 Countercyclical buffer of 3 bp at 30 September 2022,
expected to be 36 bp at 30 September 2023 for
Crédit Agricole S.A. based on information known to date,
in particular the increase in the French countercyclical buffer
rate to 0.50% which comes into force in April 2023.63 Excluding FCA
Bank64 Gross amount before buy-backs and amortisations, excl. AT1
issuances65 Excl. AT1 issuances
- CASA_CP_EN_2022-T3_Resultats
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