CREDIT AGRICOLE SA: First quarter 2022 - Solid first quarter,
cautious provisioning
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SOLID FIRST QUARTER, CAUTIOUS
PROVISIONING |
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CAG and Crédit Agricole S.A. stated and underlying results
Q1-2022 |
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CRÉDIT AGRICOLE
GROUP |
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CRÉDIT AGRICOLE S.A. |
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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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€9,680m+7.0% Q1/Q1 |
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€9,601m+5.7% Q1/Q1 |
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€5,938m+8.1% Q1/Q1 |
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€5,929m+7.6% Q1/Q1 |
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Costs excl. SRF |
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-€5,911m+7.4% Q1/Q1 |
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-€5,892m+7.1% Q1/Q1 |
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-€3,518m+10.0% Q1/Q1 |
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-€3,499m+9.6% T1/T1 |
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SRF |
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-€794m+70.1% Q1/Q1 |
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-€794m+21.9% Q1/Q1 |
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-€636m+67.3% Q1/Q1 |
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-€636m+24.7% Q1/Q1 |
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GOI |
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€2,975m-3.3% Q1/Q1 |
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€2,914m-0.5% Q1/Q1 |
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€1,784m-6.9% Q1/Q1 |
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€1,793m-0.6% Q1/Q1 |
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Cost of risk |
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-€888m+65.5% Q1/Q1 |
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-€693m+29.2% Q1/Q1 |
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-€741m+93.0% Q1/Q1 |
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-€546m42.2% Q1/Q1 |
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Net income Group share |
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€1,331m-24.1% Q1/Q1 |
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€1,484m-7.2% Q1/Q1 |
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€552m-47.2% Q1/Q1 |
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€756m-18.9% Q1/Q1 |
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C/I ratio (excl. SRF) |
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61.1%+0.2 pp Q1/Q1 |
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61.4%+0.8 pp Q1/Q1 |
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59.2%+1.0 pp Q1/Q1 |
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59.0%+1.1 pp Q1/Q1 |
Crédit Agricole S.A. underlying results Q1-2022
Gross operating income excluding SRF: +4.9% Q1/Q1, or
+€114m to €2,429m Cost/ income ratio (excl. SRF):
59.0% (+1.1 pp Q1/Q1), below the MTP target of 60%Net income Group
share €756m, -€176m Q1/Q1, impacted by
- a new increase in the SRF (+24.7%
Q1/Q1 to €636m, contribution -€126m)
- a conservative provisioning of
Russian exposures (-€389m)
- provision for Ukraine equity risk
accounted for in specific items
(-€195m)
Underlying ROTE Q1-2022: 11.6% |
Dynamic commercial
activity in Q1 in all business lines,
macroeconomic impact of conflict
yet to come
- 516,000 new customers (France, Italy, Poland) in Q1-22,
six million since the launch of the MTP
- RB and LCL loan production +13.8% Q1/Q1
- Insurance equipment +0.3 pp RB year-on-year, +0.6 pp LCL, +1.5
pp CA Italia
- Life insurance and asset management inflows +€6.8bn, assets
under management +12.4% yoy
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Solid balance sheet and capital position |
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CRÉDIT AGRICOLE
GROUP |
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CRÉDIT AGRICOLE S.A. |
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| Phased-in
CET1 |
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17.0% |
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-0.5 pp
Mar/Dec |
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11.0% |
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-0.9 pp Mar/Dec |
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+8.1 pp above SREP requirements |
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+3.1 pp above SREP requirements |
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Asset quality |
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€18.9bn in loan loss reserves at end-March 22 |
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NPL ratio stable at 2.4%, coverage ratio up
to 77.5% |
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Confirmation of the 50% payout
policy and of the
intention to pay an additional 20 cents on the 2019
dividend in 2023 |
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Group adopts a
clear stance on Ukraine and
Russia |
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Ukraine: material and financial support to
employees and their families, continuity of essential banking
services for customers, two-thirds of branches open, banking mobile
application number 1 in stores.
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Russia: all new financing to Russian companies
stopped since the beginning of the war, as well as all commercial
activity in the country.
Non-performing risks: low
provisioning in Russia (€43m) and
Ukraine1 (€20m)
Conservative provisioning of performing
loans:
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Ukraine: full provisioning of equity risk of €195m
(restated in specific items)
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Russia: prudent provisioning of performing
exposures (€346m)2
Sharp drop in residual Russian exposures
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Exposure down -€0.6bn since 31/12/21, -€1.1bn since the
start of hostilities.
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As of 31/03/22, exposure represents:
- On-shore:
€0.7bn
- Off-shore
on-balance sheet: €3.1bn
- Off-shore
off-balance sheet: €0.6bn
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Almost all maturities have been paid since the beginning of the
conflict.
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Philippe Brassac,Chief Executive Officer of
Crédit Agricole S.A. “Regarding the Russia-Ukraine conflict,
the Group chooses cautious provisioning, while the risk on
non-performing loans is low.The first quarter results are solid,
with a dynamic activity in all business lines.” |
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Dominique Lefebvre, Chairman of SAS Rue La
Boétie and Chairman of the Crédit Agricole S.A. Board of
Directors “The Group is, yet again, proving the strength and
consistency of its model to adjust to various crises. On June 22nd,
we will present our medium-term ambitions to address societal
transitions.” |
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Crédit Agricole Group
Group activity
Commercial activity in all the Group’s business
lines was dynamic this quarter, reflecting the strength of the
Universal Customer-focused Banking model. Gross customer
acquisition was strong. In the first quarter 2022, the Group
recorded +516,000 new Retail banking customers, 418,000 of them in
France (320,000 customers for the Regional Banks), 37,000 customers
in Italy and 60,000 in Poland, while the customer base continued to
grow (+123,000 retail banking customers, 67,000 of them Regional
Bank customers and 80,000 customers in France). Since the launch of
the Medium Term Plan, the Group has gained 6 million new retail
banking customers, of which 5,028,000 in France, 431,000 in Italy
and 528,000 in Poland, and the customer base has increased by
+860,000, of which +820,000 in France (+695,000 in the Regional
Banks) and +41,000 in Italy. Loan production in French retail
banking was up significantly in the first quarter, by +13.8%3
compared with the first quarter 2021, with home loans up +8.8%,
corporates and small businesses up +22.8% and consumer loans up
+7.1%. In addition, consumer finance and leasing activities grew by
15.9% since the first quarter 2021. The revenues of Crédit Agricole
Assurances’ property and casualty insurance rose sharply (+6.8%
over the same period). The equipment rate of Regional Banks, LCL
and CA Italia also posted an increase since March 2021
(+0.3 percentage points, +0.6 percentage points and
+1.5 percentage points respectively) to 42.4%, 26.5% and 19.2%
respectively at 31 March 2022.
Group results
In the
first quarter 2022,
Crédit Agricole Group’s stated
net income Group share came to
€1,331 million versus
€1,754 million in the first quarter 2021, a
decline of -24.1%. This quarter, specific items
generated a net negative impact of -€153 million on
net income Group share (vs a positive impact of +€154
million in the first quarter of 2021).
The specific items recorded
this quarter include recurring volatile accounting items in
revenues, such as the DVA (debit valuation adjustment, i.e. gains
and losses on financial instruments related to changes in the
Group’s issuer spread) amounting to -€23 million in net income
Group share, hedges on the Large customers loan book for
+€12 million in net income Group share, and provisions for
home purchase savings plans in the amount of
+€69 million in net income Group share. In addition to these
recurring items, there were the Creval integration costs for -€5
million in net income Group share, those of Lyxor for
-€5 million, the provision for capital risk in Ukraine for
-€195 million, and the reclassification of Crédit du Maroc to
assets held for disposal for -€7 million. In the first
quarter 2021, specific items had a net positive impact of
+€154 million on net income Group share, including the impact
of the DVA of +€6 million, the hedge on the Large customers loan
book for -€5 million, and the variations in the provisions for
home purchase saving plans of -€25 million, the
integration/acquisition costs of Kas Bank and S3 by CACEIS for
-€2 million, as well as the impact of the refund of the
overpayment of SRF (Single Resolution Fund) contributions for
financial years 2016-2020 for +€185 million and losses on the
wealth management activities in Miami and Brazil held for disposal
for -€5 million.
Excluding these specific items, Crédit
Agricole Group’s underlying
net income Group share4 amounted to
€1,484 million, a year-on-year decline of
-7.2%. Underlying gross operating income excluding SRF was up
(+3.5% compared to first quarter 2021) at €3,709 million in
first quarter 2022. The contribution to the SRF came to
€794 million, a year-on-year increase of +21.9%.
Crédit Agricole Group – Stated and underlying results, Q1-2022
and Q1-2021
|
€m |
Q1-22stated |
Specific items |
Q1-22underlying |
Q1-21stated |
Specific items |
Q1-21underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
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Revenues |
9,680 |
79 |
9,601 |
9,049 |
(33) |
9,082 |
+7.0% |
+5.7% |
| Operating
expenses excl. SRF |
(5,911) |
(18) |
(5,892) |
(5,505) |
(4) |
(5,501) |
+7.4% |
+7.1% |
| SRF |
(794) |
- |
(794) |
(467) |
185 |
(652) |
+70.1% |
+21.9% |
|
Gross operating income |
2,975 |
61 |
2,914 |
3,078 |
148 |
2,930 |
(3.3%) |
(0.5%) |
| Cost of
risk |
(888) |
(195) |
(693) |
(537) |
- |
(537) |
+65.5% |
+29.2% |
|
Equity-accounted entities |
108 |
- |
108 |
94 |
- |
94 |
+14.9% |
+14.9% |
| Net income on
other assets |
13 |
- |
13 |
13 |
- |
13 |
+2.3% |
+2.3% |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
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Income before tax |
2,208 |
(134) |
2,342 |
2,648 |
148 |
2,500 |
(16.6%) |
(6.3%) |
| Tax |
(694) |
(15) |
(679) |
(720) |
11 |
(731) |
(3.7%) |
(7.2%) |
| Net income
from discont'd or held-for-sale ope. |
2 |
(4) |
6 |
(6) |
(5) |
(1) |
n.m. |
n.m. |
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Net income |
1,516 |
(153) |
1,669 |
1,921 |
153 |
1,768 |
(21.1%) |
(5.6%) |
| Non
controlling interests |
(185) |
(0) |
(184) |
(168) |
1 |
(169) |
+10.2% |
+9.4% |
|
Net income Group Share |
1,331 |
(153) |
1,484 |
1,754 |
154 |
1,599 |
(24.1%) |
(7.2%) |
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Cost/Income ratio excl. SRF (%) |
61.1% |
|
61.4% |
60.8% |
|
60.6% |
+0.2 pp |
+0.8 pp |
In first quarter 2022, underlying
revenues were up +5.7% versus first quarter 2021
to €9,601 million thanks to sustained activity across all
business lines, despite the Ukraine/Russia war, whose macroeconomic
impacts are still to come. The Asset gathering and Large customers
business lines posted strong revenue growth of +9.2%
(+€146 million) and +4.5% (+€74 million) respectively,
thanks to good business momentum and the complementarity of their
activities. In French Retail Banking, the Regional Banks recorded
revenue growth of +1.8%, or +€63 million, compared with the first
quarter 2021, due mainly to the strong performance of fee and
commission income. LCL recorded a sharp increase in revenue of
+8.3% this quarter, driven by very dynamic corporates and small
business activity. Specialised financial services achieved a very
good performance this quarter, with underlying revenues up +6.8%:
CA Consumer Finance reported revenue growth of +5.0% in the first
quarter of 2022, and +2.9% on a like-for-like basis5, thanks to the
dynamic international activity and despite the increase in
refinancing costs; CA Leasing & Factoring posted a sharp
increase in revenues of +13.2%, boosted by strong activity in all
segments. CA Italia recorded strong revenue growth this quarter
(+26.9%) due to the impact of the Creval integration. Pro forma of
the Creval acquisition, revenues were down -2.2%, with continued
pressure on the net interest margin and the disposal of
€1.5 billion in doubtful loans in the fourth quarter 2021. Fee
and commission income was higher, however (+3% compared with the
first quarter 2021).
Underlying operating expenses excluding
the Single Resolution Fund (SRF) stood at
€5,892 million in first quarter 2022, up
+7.1% year-on-year. French Retail Banking posted a moderate
increase in expenses of +2.9%, mainly due to the increase in the
contribution to the deposit guarantee scheme (Fonds de Garantie des
Dépôts, or FGD) amounting to €22 million for LCL and €52 million
for the Regional Banks vs €53 million in total in the first quarter
of 2021. Expenses in the Asset Gathering division were also kept
under control, with an increase of +10.7%, mainly explained by the
impact of the Lyxor integration, and continued investments (Amundi
Technology) in Asset Management, and the higher tax on Insurance
(+€16 million). The Specialised financial services division also
recorded an increase in expenses of +9.5%, mainly due to the
consolidation of CACF NL and CACF Spain since the third quarter of
2021 and of Olinn since the fourth quarter of 2021. Excluding these
consolidation effects, the increase in expenses for CA Consumer
Finance and CA Leasing & Factoring would be +0.2% and 8.3%,
respectively. Operating expenses for the Large customers
division were up +6.4%, in connection with investments in
IT projects related to the activity's growth.
Overall, the Group posted an underlying
cost/income ratio excluding SRF of 61.4% in the first
quarter 2022 (+0.8 pp year-on-year). The contribution to the
Single Resolution Fund was €794 million this quarter, up
+21.9% compared to first quarter 2021. As a reminder, the
€185 million refund of an overpayment for financial years
2016-2020 was accounted for in the first quarter 2021 and
classified as specific items.
Underlying gross operating
income excluding SRF was up at €3,709 million, +3.5%
year-on-year.
The underlying cost of credit
risk rose to €693 million (including
€480 million in stage 1 and 2 cost of risk – of which €346
million for Russia country risk 6 – and €190 million in stage 3
cost of risk – of which €43 million for Russia country risk and €20
million for Ukraine risk7) versus €537 million in first
quarter 2021 and €464 million in fourth quarter 2021, i.e. an
increase of +29% from first quarter 2021, and +49% from fourth
quarter 2021. As a reminder, in the fourth quarter 2021, CA Italia
receivables disposals and additional provisioning were reclassified
to specific items for €319 million. Also recall that in the first
quarter 2022, the provision for capital risk in Ukraine for €195
million was reclassified to specific items. Among the factors
explaining the +29% change compared to the first quarter 2021,
there was a marked increase in the provisioning of Stage 1&2
performing loans (+227%) and a decrease in provisions for Stage 3
proven risks (-49%).
The cost of risk remains low for the Regional
Banks, falling by -5.0% compared to the first quarter of 2021,
while it increased moderately for CACF (by 2.5% year-on-year to
€117 million). It rose more sharply in Corporate and Investment
Banking (CACIB), mainly due to the impact of the downgrading of the
Russia rating on the provisioning of CACIB's performing exposures
in Russia in the amount of €346 million6. Thus, the Corporate and
Investment Banking cost of risk for the first quarter stood at €283
million, versus €85 million in first quarter 2021. The
cost of risk declined for CA Italia (-36.4% year-on-year to €45
million) after its risk profile improved with the disposal of
doubtful loans for €1.5 billion in the fourth quarter of 2021. The
LCL cost of risk fell (-25.8% year-on-year to €61 million), due
mainly to the comparison basis with the first quarter of 2021,
which had been marked by provisioning related to the Covid crisis
at LCL.
Asset quality was good: the NPL
ratio was stable at 2.0% at end-March 2022 compared to end-December
2021, while the coverage ratio8, which was high at 89.6%, gained
strength during the quarter (+2.1 percentage points since
end-December 2021). The diversified loan book is mainly geared
towards home loans (46% of gross outstandings at Group level) and
corporates (33% of gross outstandings at Group level). Loan loss
reserves amounted to €18.9 billion at end-March 2022, of which
42% was for performing loans (Stages 1 and 2). Loan loss reserves
were stable compared to end-December 2021 despite the
reclassification of Crédit du Maroc as assets held for disposal
during the quarter (IFRS5). This quarter, provisioning is based on
several weighted economic scenarios. The weighting
of the scenarios has been revised in the first quarter of 2022, to
reflect the war in Ukraine and its macroeconomic impacts. For GDP
in France, are applied as in fourth quarter 2021, a favourable
scenario (+6% in 2022 and +2.7% in 2023), and a less favourable
scenario (+3.0% in 2022 and +0.9% in 2023). In the first quarter
2022, the weighting of the less favourable scenario has been
increased compared to the fourth quarter 2021.
The cost of credit risk relative to
outstandings9 over a rolling
four-quarter period was 19 basis points. It stands at
26 basis points on a quarterly annualised basis10.
Underlying pre-tax income stood at
€2,342 million, a year-on-year decrease of -6.3%. In
addition to the changes explained above, the underlying pre-tax
income includes the contribution of equity-accounted entities for
€108 million (+14.9% compared to the first quarter of 2021) as well
as the net income on other assets which was stable at €13 million.
The underlying tax charge fell
-7.2% over the period. The underlying tax rate stood
at 30.4%, unchanged from first quarter 2021. In fact, the tax rate
is never representative on a quarterly basis.
Underlying net income before
non-controlling interests was down -5.6% to
€1,669 million. Non-controlling interests rose +9.4%. Lastly,
underlying net income Group share was
€1,484 million, down from the first quarter 2021 (-7.2%).
Regional Banks
Regional Banks’ activity was buoyant in the
first quarter 2022. Gross customer capture was
320,000 customers since the beginning of the year and the customer
base grew by an additional +67,000 customers. The equipment
rate for Home-Auto-Health insurance11 was 42.4% at
end-March 2022 (+0.3 percentage points year-on-year). The
share of customers using digital tools reached 73.0% (+4.7
percentage points compared to the first quarter 2021). In addition,
the Group continues to develop its multi-channel model and the
number of online signatures12
jumped by +88% year-on-year (of which +23% is linked to the
expanded range of contracts with secure signing).
Loan production was dynamic in
the first quarter 2022 reaching €28.3 million. Loans grew by
+5.2% across all segments compared to the first quarter 2021: +19%
for corporates, +3.8% for consumer finance and +1.7% for home
loans. Loans outstanding reached
€603.7 billion at end-March 2022 and increased by 5.8%
compared to end-March 2021 (including +6.4% for home loans and
+4.9% for specialised markets). Customer assets
reached €839.3 billion at end-March 2022, up +4.3% compared to
March 2021. On-balance sheet deposits increased
significantly year-on-year (+6.1%), mainly driven by the DAV
(+9.0%) and passbook accounts (+9.0%). Off-balance sheet
deposits were stable compared year on year, while life
insurance production was +6% higher compared to March 2021.
In first quarter 2022,
underlying revenues of the Regional Banks amounted
to €3,617 million, +1.8% compared to the first quarter 2021.
This increase was driven by fee and commission income (+6.5%
compared to the first quarter 2021), mainly on insurance and
account management; the interest margin was down (-2.9% compared to
the first quarter 2021), due to the decline in portfolio revenues.
Operating expenses excluding SRF et
DGF amounted to €2,274 million, up +2.3% compared to
the first quarter 2021 and mainly related to staff costs (including
greater employee profit sharing and share ownership).The
contributions to the SRF and DGF stood at €158 million and €52
million, an increase by 11.9% and 17.1% respectively compared to
the first quarter 2021. This resulted in a year-on-year
decline in underlying gross operating income of
-1.2%. The cost of risk amounted to
-€145 million, down -5.2% compared to the first quarter 2021.
In the first quarter 2022, the cost of risk relative to
outstandings came in at 10 basis points over a rolling
four-quarter period and equally at 10 basis points on an
annualised basis. The NPL ratio was low and stood at 1.6% (stable
vs. end-December 2021) and loan loss reserves were
€10.1 billion (up €0.1 billion vs.
end-December 2021). This translated into a high coverage ratio
of 103.9% at end March 2022 (+0.6 percentage point
compared to end-December 2021). The contribution of the
Regional Banks to the Group’s underlying
net income Group share came to
€720 million, a +9.9% increase from the
first quarter 2021.
The performance of the other
Crédit Agricole Group business lines is described in
detail in the section of this press release on
Crédit Agricole S.A.
Crédit Agricole S.A.
Crédit Agricole S.A.'s Board of Directors,
chaired by Dominique Lefebvre, met on 4 May 2022 to examine the
financial statements for the
first quarter of 2022.
Results
Crédit Agricole S.A. – Stated and underlying results, Q1 2022
and Q1-2021
|
€m |
Q1-22stated |
Specific items |
Q1-22underlying |
Q1-21stated |
Specific items |
Q1-21underlying |
∆ Q1/Q1stated |
∆ Q1/Q1underlying |
| |
|
|
|
|
|
|
|
|
|
Revenues |
5,938 |
10 |
5,929 |
5,493 |
(15) |
5,508 |
+8.1% |
+7.6% |
| Operating
expenses excl.SRF |
(3,518) |
(18) |
(3,499) |
(3,197) |
(4) |
(3,193) |
+10.0% |
+9.6% |
| SRF |
(636) |
- |
(636) |
(380) |
130 |
(510) |
+67.3% |
+24.7% |
| Gross
operating income |
1,784 |
(9) |
1,793 |
1,916 |
111 |
1,805 |
(6.9%) |
(0.6%) |
| Cost of
risk |
(741) |
(195) |
(546) |
(384) |
- |
(384) |
+93.0% |
+42.2% |
|
Equity-accounted entities |
95 |
- |
95 |
87 |
- |
87 |
+9.8% |
+9.8% |
| Net income on
other assets |
10 |
- |
10 |
3 |
- |
3 |
x 2.9 |
x 2.9 |
| Change in
value of goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
| Income
before tax |
1,148 |
(204) |
1,352 |
1,622 |
111 |
1,511 |
(29.2%) |
(10.5%) |
| Tax |
(391) |
3 |
(394) |
(378) |
5 |
(384) |
+3.5% |
+2.8% |
| Net income
from discont'd or held-for-sale ope. |
2 |
(4) |
5 |
(6) |
(5) |
(1) |
n.m. |
n.m. |
| Net
income |
759 |
(205) |
963 |
1,238 |
112 |
1,126 |
(38.7%) |
(14.5%) |
| Non
controlling interests |
(207) |
0 |
(207) |
(193) |
1 |
(194) |
+7.5% |
+6.9% |
| Net
income Group Share |
552 |
(204) |
756 |
1,045 |
113 |
932 |
(47.2%) |
(18.9%) |
| Earnings per
share (€) |
0.14 |
(0.07) |
0.21 |
0.32 |
0.04 |
0.28 |
(55.5%) |
(25.3%) |
|
Cost/Income ratio excl. SRF (%) |
59.2% |
|
59.0% |
58.2% |
|
58.0% |
+1.0 pp |
+1.1 pp |
| Net
income Group Share excl. SRF |
1,117 |
(204) |
1,322 |
1,375 |
(17) |
1,392 |
(18.7%) |
(5.0%) |
In the first quarter of
2022, Crédit Agricole S.A.’s stated
net income Group share amounted to
€552 million versus €1,045 million in the
first quarter 2021. The quarter was impacted by recurring
accounting volatility items at the revenues level, namely DVA
(debit valuation adjustment, i.e. gains and losses on financial
instruments related to changes in the Group’s issuer spread) for
-€22 million on net income Group share, the hedge on the Large
customers loan book in the amount of €12 million on net income
Group share, and the variation in the provision for home purchase
savings plans for €17 million on net income Group share. In
addition to these recurring items, there were the Creval
integration costs for -€4 million in net income Group share, those
of Lyxor for -€5 million, the provision for capital risk in
Ukraine for -€195 million, and the reclassification of Crédit du
Maroc to assets held for disposal for -€7 million. In the
first quarter 2021, specific items had a net positive
impact of +€113 million on net income Group share, including
the impact of the DVA of +€6 million, the hedge on the Large
customers loan book for -€5 million, and the variations in the
provisions for home purchase saving plans of -€11 million, the
integration/acquisition costs of Kas Bank and S3 by CACEIS for
-€2 million, as well as the impact of the refund of the
overpayment of SRF (Single Resolution Fund) contributions for
financial years 2016-2020 for +€130 million and losses on the
wealth management activities in Miami and Brazil held for disposal
for -€5 million within the Wealth management business line.
Excluding these specific items, the underlying net
income Group share13 was
€756 millions, down -18.9% compared to the
first quarter 2021, due mainly to a sharp increase in the SRF and
prudent provisioning of performing loans related to the
Ukraine/Russia war.
In first quarter 2022, underlying
revenues reached €5,929 million, up +7.6% compared to
first quarter 2021. All business lines contributed to the increase
thanks to the strong activity in the quarter. Pro forma for the
integration of Creval and Lyxor in 2021, they were up by 4.1%. The
revenues of the Asset Gathering division (up +9.2% compared to
first quarter 2021, including the Lyxor scope effect) benefited
from good inflow momentum and a high level of performance fee and
commission income in asset management and a positive market effect.
Revenues in Large Customers (+4.4%) were driven by the
complementary nature of corporate and investment banking activities
and good activity in asset servicing. In Specialised Financial
Services, revenues rose +6.8%, thanks to increased activity in all
business lines this quarter. Commercial production was indeed
strong in consumer finance, as well as in leasing and factoring.
Retail banking revenues increased compared to first quarter 2021
(+10.5%, including the Creval scope effect), thanks in particular
to strong loan production at LCL.
Underlying operating expenses excluding
SRF (Single Resolution Fund) were up (+9.6% compared to
first quarter 2021), totalling €3,499 million in first quarter
2022. Pro forma for the integration of Creval and Lyxor in 2021,
they were up by +5.4%. Within the Asset Gathering business line,
operating expenses excluding SRF rose by 10.7% (including the Lyxor
scope effect). Asset management expenses increased by 3.6% (pro
forma Lyxor in 2021) due to continued investment (especially at
Amundi Technology), by 8.9% compared to first quarter of 2021 in
Crédit Agricole Assurances, to support the development of the
business lines and as a result of tax increases (positive jaws
effect of +2.8 pp), and were kept under control in the wealth
management.. In the Large Customers business line, operating
expenses excluding SRF were up 6.4% compared to first quarter 2021,
in corporate and investment banking especially, due in particular
to IT investments in financing and cash management to support the
development of use of digital technology by customers. Expenses are
under control in Asset Servicing. The Specialised Financial
Services business line saw its expenses increase by 9.5% compared
to first quarter 2021, in line with the growth in activity and the
scope effects observed (+7.3% for CACF; +2.9% excluding CACF NL and
+17.2% for CALF; +8.2% excluding Olinn). Retail Banking operating
expenses, excluding SRF, rose by 8.6% (including the Creval scope
effect). Excluding Creval, they were down 1.5% in Italian retail
banking. At LCL, they remained under control over the quarter,
excluding the Deposit Guarantee Fund. The jaws effect excluding SRF
was therefore positive at LCL by 4.5 pp in first quarter 2022
compared with first quarter 2021.
The IFRIC 21 impact was €835 million,
and included expenses of €636 million for the SRF14 for 2022,
representing an increase of 24.7% (or +€126 million) compared
to first quarter 2021. The higher SRF expense mainly relates to the
Large customers (+30.3% or +€89 million, compared to first
quarter 2021) and Retail banking (+21.5% or +€17 million,
compared to first quarter 2021) business lines. Note that the
refund of an overpayment over financial years 2016-2021 was
accounted for under specific items in the first quarter 2021.
Underlying gross operating
income excluding SRF was thus very strong
in first quarter 2022. It rose by 4.9% to €2,429 million (+2.5% pro
forma for the integration of Lyxor and Creval). The underlying
cost/income ratio excluding SRF was 59.0%, up 1.0 percentage point
compared to first quarter 2021 (up 0.7 percentage point pro forma
Lyxor et Creval), and still below the target set in the Medium-Term
Plan. By business line, gross operating income excluding SRF was up
compared to first quarter 2021 for all business lines: Asset
Gathering (+7.8%), Large Customers (+2.0%), Specialised Financial
Services (+3.9%), Retail Banking in France (+16.1%) and
internationally (+10.7%).
As at 31 March 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 (28% of gross outstandings) and
corporates (44% of Crédit Agricole S.A. gross outstandings). The
doubtful loan ratio was still low at 2.4% (-0.1 percentage point
compared to 31 December 2021), while the coverage ratio15 was high
at 77.5%, up +2.8 percentage points compared to fourth quarter
2021. Crédit Agricole S.A.’s loan loss reserves totalled €8.8
billion, down €0.1 billion compared with 31 December 2021 due to
the reclassification of Crédit du Maroc to held-for-sale operations
during the quarter. Of these loan loss reserves, 38% are for
performing loan provisioning. This quarter, provisions are based on
several weighted economic scenarios. The weighting
of the scenarios has been revised since the fourth quarter 2021, to
reflect the war in Ukraine and its macroeconomic impacts. For GDP
in France, a more favourable scenario (+6% in 2022 and +2.7% in
2023), and a less favourable scenario (+3.0% in 2022 and +0.9% in
2023) were used. For first quarter 2022, the weighting of the less
favourable scenario was increased compared to fourth quarter
2021.
The underlying cost of
risk for first quarter 2022 amounted to €546 million,
up €162 million (+42.2%) compared to first quarter 2021, with
a marked increase in the provisioning of Stage 1 & 2 performing
loans (+295% compared to first quarter 2021) and a decrease in
provisions for Stage 3 proven risks (-43% compared to first quarter
2021).
A provision of €195 million for equity risk
for Ukraine was recognised this quarter for the international
retail banking business line excluding Italy. This provision was
reclassified to specific items. Excluding this provision, the
underlying provision of €546 million in first quarter 2022
breaks down into a provisioning of performing loans (Stage
1&2) for €356 million (compared
to a provision of €90 million in first quarter 2021 and a
provision of €20 million in fourth quarter 2021), which was
mainly affected by the impact of the downgrades of Russian ratings
on the provisioning of performing exposures for corporate and
investment banking for the country for -€346 million16.
Provisioning for non-performing risks (Stage 3) amounted to
-€161 million (compared to €283 million in first quarter
2021 and €277 million in fourth quarter 2021), including a €43
million provision for Russian risk in corporate and investment
banking and a €20 million provision17 recognised in the
international retail banking business line for Ukraine risk,
following credit events that occurred prior to the start of the
conflict.
In first quarter 2022, the cost of risk relative
to outstandings over a rolling four-quarter period18 was
31 basis points, and was 47 basis points on an
annualised quarterly basis19. The cost of risk has increased
moderately for CACF. It rose more sharply in Corporate and
Investment Banking due mainly to the impact of the downgrading of
the Russia rating for the provisioning of CACIB’s performing
exposures in Russia in the amount of €346 million16. The cost
of risk was down for CA Italia and LCL, due in particular to a base
effect compared with first quarter 2021, which was marked by
provisioning in connection with the Covid crisis at LCL.
Accordingly, in Corporate and Investment Banking, the cost of risk
for the quarter amounted to -€283 million, compared with a
provision of -€85 million in first quarter 2021, and
-€12 million in fourth quarter 2021. The cost of risk relative
to outstandings over a rolling four-quarter period18 was
23 basis points for first quarter 2022 (compared to
88 basis points on an annualised quarterly basis19); the
CACF cost of risk increased by 2.5% compared to first quarter 2022
to -€117 million and increased by 2.5% compared to first
quarter 2021, and the cost of risk relative to outstandings was
127 basis points for first quarter 2022 (and
127 basis points on an annualised quarterly basis19).
Finally, CA Italia recorded a cost of risk of €45 million in
first quarter 2022 (-36.4% compared to first quarter 2021 and
-61.5% compared to fourth quarter 2021), with a cost of risk
relative to outstandings18 that reached 55 basis points
in first quarter 2022 (30 basis points on an annualised
quarterly basis19); LCL posted a cost of risk of €61 million
(-25.8% compared to first quarter of 2021 and up +12.8% since
fourth quarter 2021) and a stabilisation of its cost of risk
relative to outstandings18 to 14 basis points in first quarter 2022
(16 basis points on an annualised quarterly basis19);
The underlying contribution from
equity-accounted entities was €95 million,
up+ 9.8% compared to first quarter 2021 thanks to
the good performance of our partnerships in asset management and
consumer credit in particular
Net income on other assets
stood at €9 million in first quarter 2022, vs.
€0 million in first quarter 2021 due to the disposal of
branches in French Guiana by LCL.
Underlying20
income before tax, discontinued operations and
non-controlling interests was therefore down
-10.5%, at €1,352 million.
The underlying effective tax rate stood at
31.4%, up +4.4 percentage points on first
quarter 2021 (mainly due to the increase in IFRIC21 taxes). The
underlying tax charge therefore increased by +2.8% to
-€394 million. The underlying net income before
non-controlling interests was therefore down
-14.5%.
Non-controlling interests
amounted to -€207 million in first quarter 2022, up +6.9%.
Underlying
net income Group share was down by -18.9%
compared to first quarter 2021 at
€756 million.
Underlying earnings per share
in first quarter 2022 reached €0.21,
decreasing by -25.3% compared
first quarter 2021.
Analysis of the activity and the results of Crédit
Agricole S.A.’s divisions and business lines
Asset gathering
The business line’s assets under management
stood at €2,535 billion at the end of March 2022, up 12.4%
from end March 2021. In first quarter 2022, net inflows
amounted to +€6.8 billion, of which +€3.2 billion in
asset management, +€2 billion in life insurance, and
+€1.6 billion in wealth management, and the market and foreign
exchange impact were the reason for a -€53 billion
decline.
In savings/retirement, activity
was brisk and Crédit Agricole Assurances continued to expand its
business, with premium income up 5.2% compared with first quarter
2021. Net inflows in first quarter 2022 were positive
(+€2.0 billion) compared to first quarter 2021, including a
historic net inflow from UL products of +€2.1 billion. The
share of unit linked products in total gross inflows hit a level of
40.9%, this quarter, i.e. 0.2 percentage points compared to first
quarter 2021.
Assets (savings, retirement and death and
disability) stood at €322.3 billion, up +3.2% from March 2021.
Unit-linked outstandings reached €84.5 billion this quarter,
representing 26.2% of total assets, up 1.1 percentage points
compared to March 2021.
In property and casualty
insurance, business was strong in first quarter 2022, with
growth of 6.7% in premium income compared to first quarter 2021.
The number of property and casualty policies in the Crédit Agricole
Assurances portfolio rose to over 15.3 million at
end June 2022, up +3.4% year-on-year. On 1 January 2022, the
transfer of 10 million assistance contracts to Europ Assistance
France was successfully completed. Finally, the combined ratio21
was 97.7% and was marked by climatic events in first quarter
2022.
In
death & disability/creditor/group
insurance, revenues reached €1.4 billion this
quarter, up 7.8% compared with first quarter 2021, driven by all
three business segments, both in France and internationally.
Creditor insurance is still supported by a favourable property
market (+10%). Group insurance posted a strong 15% increase in
revenues. And Death & Disability benefited from the
good performance of the Funeral coverage (+11%).
In addition, on 1 February 2022, Crédit Agricole
Assurances signed an agreement with Generali for the sale of La
Médicale, which resulted in its accounting being reclassified under
IFRS 5 in fourth quarter 2021.
Lastly, Crédit Agricole Assurances is continuing
its climate protection efforts to reduce the carbon footprint of
its products and services and enable its customers to limit their
impact on the environment. To that end, Crédit Agricole Assurances
has announced its membership of the NZIA (Net-Zero Insurance
Alliance).
Asset Management (Amundi)
recorded strong activity this quarter, supported by Retail and the
main areas of expertise. Assets under management amounted to
€2,021 billion, up 15.1% year-on-year following the
integration of Lyxor assets (+€148 billion at 31 December
2021). In the first quarter, assets were down by -2.1% with
unfavourable market effects (-€46.4 billion) and net inflows
of €3.2 billion. However, there has been a marked slowdown in
inflows since the start of the war in Ukraine.
In first quarter 2022, net MLT inflows excluding
JVs remained strong at +€21.0 billion, driven by the main
areas of expertise (active, passive and real & alternative
asset management). The good level of activity in Retail continued,
with net MLT inflows excluding JVs in this customer segment
standing at +€14.4 billion. The Institutional segment also
recorded solid MLT inflows at €6.6 billion. Treasury products
recorded net outflows of -€26.3 billion mainly in the
corporate customers segment. Inflows in joint ventures were
positive at +€8.4 billion, driven by India and China.
In wealth management, assets
under management grew over the quarter to €133 billion at the
end of March 2022, an increase of 1.3% compared to the end of March
2021, driven in particular by dynamic net inflows of
€1.2 billion in first quarter 2022.
The Asset gathering (AG)
business line posted underlying net income Group
share of €571 million in first quarter 2022, up 11.6%
from first quarter 2021, driven by growth in the contribution
of all businesses.
As at 31 March 2022, own funds allocated to the
business line amounted to €11.7 billion, including €10 billion
for Insurance, €1.2 billion for Asset management, and
€0.5 billion for Wealth management. The business line’s risk
weighted assets amounted to €59.2 billion, including
€41.7 billion for Insurance, €12.8 billion for Asset
management and €4.7 billion for Wealth management.
Insurance
The underlying revenues for insurance activity
reached €697 million in first quarter 2022, up 11.7%22
year-on-year and benefited from the total unwinding of the switch
(+€44 million) and an increase in recognition of the financial
margin to offset the negative market effect on JVR. Underlying
expenses for first quarter 2022 were up by 8.9%22 compared to first
quarter 2021, for an increase of €21 million, including
€16 million relating to the increase in C3S tax, in line with
2021 strong revenue growth. Gross operating income rose
significantly by 13.3% to €443 million in first quarter 2022.
The underlying cost/income ratio in first quarter 2022 stood at
36.4%, a decrease of 0.9 percentage points compared to
first quarter 2021. The tax charge stood at €79 million, up
2.4% from first quarter 2021. Lastly, the underlying net income
Group share showed an increase of +17.0% to €346 million in first
quarter 2022.
Asset management
Underlying revenues totalled €814 million
in first quarter 2022, up +8.2% from first quarter 2021 and +2.1%
pro forma for the Lyxor acquisition. Net management revenues were
up +3.1% compared to first quarter 2021, driven by net management
fees, which rose by +9.2%, benefiting from the strong inflow of
funds for several quarters and the increase in the markets quarter
after quarter. Performance fees began to normalise, amounting to
€71 million in first quarter 2022 (€111 million in first quarter
2021). Amundi Technology revenues were up +37.8% compared to first
quarter 2021. Underlying operating expenses excluding SRF amounted
to €427 million, up +12.7% compared to first quarter 2021 and
+3.6% pro forma for the Lyxor acquisition, as investment efforts
continue. Underlying gross operating income was up +3.5% (+0.5% on
a pro forma basis) and the underlying cost/income ratio excluding
SRF was 52.5%, up 2.1 percentage points compared to first quarter
2021 (+0.8 percentage points on a pro forma basis), this change
being mainly due to a 2021 comparison base that included a high
level of performance fees. The contribution of equity-accounted
entities, comprising in particular income from Amundi’s joint
ventures in Asia, was up +11.5% from first quarter 2021 and
totalled €20 million. The underlying tax charge worked out at
€95 million, a 1.5% decrease. Lastly, underlying net income
Group share was up by +3.7% to €204 million (+0.9% pro forma
Lyxor in 2021).
Wealth management
Underlying revenues were strong at
€218 million in first quarter 2022, up +5.5% compared to first
quarter 2021. Underlying expenses excluding SFR rose, albeit under
control (+8.6%) despite IT investments, and reached
€185 million. As a result, gross operating income excluding
SRF decreased slightly year-on-year to €29 million
(€33 million in first quarter 2021) and the underlying
cost/income ratio excluding SRF stood at 85.2% in first quarter
2022. The cost of risk is improving sharply to €2 million in first
quarter 2022 compared to -€5 million in first quarter 2021. As a
result, underlying net income Group share was up sharply,
increasing by 10.1% compared to first quarter 2021, reaching €22
million in first quarter 2022.
Large customers
Activity for the whole Corporate and
Investment banking (CIB) remains buoyant in first quarter
2022, thanks in particular to a good performance in Financing
activities, and despite the decline in revenues in capital markets
(compared to the high level in first quarter 2021), in a context of
a wait-and-see attitude among Corporate issuers.
Underlying revenues remain strong
at €1,425 million, up +4.3% compared to first quarter 2021 and
+1.7% at constant exchange rates). Financing
activities perform very well, with revenues at
€737 million, up +11.9% compared to first quarter 2021 (+8.0%
at constant exchange rates), thanks to both structured finance
which registered an excellent quarter (+16.0% compared to first
quarter 2021) and commercial banking (+8.2% compared to first
quarter 2021) and in particular thanks to the continued strong
development of International Trade & Transaction Banking (ITB).
Crédit Agricole CIB remains the leader in syndicated loans (#1 in
France23 and #2 in the EMEA zone24) and in project financing (#3 –
Project finance loans worldwide25). Revenues from capital
markets and investment banking amount to
€688 million, down - 2.8% compared to first quarter 2021
(-4.2% at constant exchange rates), which can be explained by FICC
activity (-9.1% compared to first quarter 2021, +3.2% compared to
first quarter 2020 and +18.9% compared to first quarter 2019),
which was penalised by an unfavourable CVA impact linked to the
Russian-Ukrainian crisis (increasing spreads in the first quarter
2022), but partially offset by very strong investment banking an
Equity activities (+40.1% in first quarter 2022 compared to first
quarter 2021). Regulatory average VaR was down to
€8.7 million in first quarter 2022, compared to
€12.3 million in first quarter 2021. In a normalising market,
CACIB confirms its leading positions in bond issuances (#5 in All
Bonds in Euro worldwide26, #7 in Green, Social & Sustainable
bonds All currencies27).
Asset servicing (CACEIS)
records a good level of activity in first quarter 2022. Assets
under Custody were up +1.3% from March 2021 to €4,349 billion
at end-March 2022. Assets under administration
also records an increase, up +3.1% year-on-year to
€2,290 billion at end-March 2022. Transaction flows were also
dynamic.
In first quarter 2022, underlying
revenues of the Large customers business line reach €1,737
million, up +4.4% compared to first quarter 2021, driven by strong
activity. Underlying operating expenses excluding
SRF amount to €968 million, an increase of +6.4%
compared to first quarter 2021, in connection with investments in
IT projects supporting the activity’s growth. The underlying
cost/income ratio excluding SRF of the Large customers business
line comes to 55.7%, increasing by 1.1 percentage points
compared to first quarter 2021. Gross operating income thus
decreases by -23.1%, adversely impacted by an increase in the SRF
contribution of +34.5%. The business line records an overall net
provision for cost of risk of -€278 million in first quarter 2022,
compared to a provision of -€67 million in first quarter 2021 (the
increase mainly reflects the provisioning of performing loans due
to the rating downgrades on performing exposures to Russian
counterparties). Pre-tax income amounts to €52 million, down -85.5%
in first quarter 2022 compared to first quarter 2021. The tax
charge stands at -€79 million, up +18.1% over the same period due
to non-recurring items.
As a result, net income Group share comes to
-€33 million in first quarter 2022 (against +€277 million in first
quarter 2021).
At 31 March 2022, the capital
allocated to the business line is €13.7 billion and
risk weighted assets are€143.5 billion.
Corporate and Investment
banking
In first quarter 2022, the
underlying revenues of Corporate and Investment
banking amounted to €1,425 million, up +4.3% compared to first
quarter 2021 (+1.7% at constant exchange rates), thanks to the
complementary nature of its business model. Financing activities
revenues are buoyant (at €737 million, up +11.9% compared to first
quarter 2021), whereas Capital markets and Investment Banking
revenues are down (at €688 million, down by -2.8% compared to first
quarter 2021), weighed down by the Russian-Ukrainian crisis and a
wait-and-see attitude on the part of corporate issuers with regard
to primary issues. Underlying operating
expenses excluding SRF increase by +7.8%
this quarter compared to first quarter 2021 (+6.0% at constant
exchange rates) to -€743 million, mainly due to IT investments
aimed at accelerating the modernisation of production lines in
financing and payments preparing for the opening of digital
channels to customers. The cost/income ratio excluding
SRF is 52.1%, up 1.7 percentage point compared to first
quarter 2021. The contribution to the SRF is -€383 million,
increasing sharply (+30.3%) compared to first quarter 2021.
Gross operating income therefore amounts to €299
million, down -22.0% compared to first quarter 2021 (excluding the
SRF, gross operating income amounted to €682 million in first
quarter 2022, up €5 million compared to the first quarter). The
cost of risk records a net provision of -€279
million compared to a provision of -€72 million in first quarter
2021, a 3.9x increase. This increase in provisioning is mainly due
to the rise in provisions for performing loans in Financing
activities (Stages 1&2, -€282 million in first quarter 2022
compared with provisions of -€71 million in first quarter 2021),
mainly because of the impact of the Russian-Ukrainian war (-€346
million 28 in first quarter 2022). Excluding these items,
performing loans recover by +€64 million in first quarter 2022. The
provision for proven risks is low at -€3 million in first quarter
2022 (including -€43 million for proven risks on Russian files)
compared to -€14 million in first quarter 2021. Lastly,
pre-tax income in first quarter 2022 stands at €20
million, down -93.6%. The tax charge came to -€67 million, a
+29.8% increase compared to first quarter 2021.
All in all, Corporate and Investment banking’s
underlying Net income Group share was -€46 million in first quarter
2022 (compared to €255 million in first quarter 2021).
Risk weighted assets at the end
of March
2022 amount to €133.4 billion, up
by +€10.5 billion compared to the end of December 2021, in a
context of Market Share increase in Structured Finance.
Asset servicing
In first quarter 2022, underlying
revenues stand at €312 million, up +4.8%
compared to first quarter 2021. The increase in revenues is driven
by higher fee and commission income on assets and flows and on a
positive market effect. Underlying operating
expenses excluding SRF rise +2% compared to first quarter
2021 to €225 million. The SRF contribution come to
-€58 million in first quarter 2022, up +71.4% compared to the
first quarter 2021. Underlying gross operating
income (including SRF) amounts tp €29 million, down
-33.1%. Excluding SRF, gross operating income rise
by +12.9% to €87 million in first quarter 2022 thanks to a positive
jaws effect (+2.8 percentage points). The underlying
cost/income ratio excluding SRF
in first quarter 2022 stands at 72.0%, an improvement of
2.0 percentage points compared to first quarter 2021.
After the €7 million share of non-controlling interests, the
business line’s contribution to underlying net income Group
share is lower by -41.7% year-on-year to €13 million
due to the SRF increase.
Specialised financial services
The Specialised financial services
business line saw buoyant activity across all businesses
this quarter. Commercial production was indeed strong in consumer
finance, as well as in leasing and factoring.
The commercial production of
Crédit Agricole Consumer Finance (CACF) rose in first quarter 2022
compared to first quarter 2021 (+13%), boosted by strong momentum
both in France and abroad. Despite persistent shortages of
electronic components the automotive market, the production of
automotive JVs was notably up this quarter (+3% compared to fourth
quarter 2021 and +11% year-on-year, driven by GAC Sofinco).
Assets under management at CACF totalled
€93.9 billion at end-March 2022. They were up +2.7% from
end-March 2021 and +1.5% from end-December 2021. The increase in
assets was driven by international business29 (+4.8% compared to
end-March 2021) and by business with the Crédit Agricole Group in
France +4.9% compared to end-March 2021. Assets related to
automotive partnerships were virtually unchanged compared to first
quarter 2021 (+0.2%) and were up compared to fourth quarter 2021
(+2.9%).
At Crédit Agricole Leasing and Factoring
(CAL&F), commercial leasing production was up
significantly compared to first quarter 2021 (+45%), driven by the
property leasing and renewable energy activities (x4.5 Q1/Q1).
Commercial factoring production also rose sharply compared to first
quarter 2021 (+59.4%), with dynamic activity both in France and
abroad (mainly Poland and Italy), and factored
revenues increased by +28.3% year-on-year, thanks to the
increase in the financed quota. Outstanding
leasing reached €16.5 billion at end-March
2022 (of which €13.3 billion in France and €3.2 billion
abroad), i.e. an increase of +5.2% compared to end-March 2021.
Specialised financial services
income grew in first quarter 2022 by +3.4% compared to first
quarter 2021, thanks in particular to strong commercial activity.
Underlying revenues of Specialised financial services were up +6.8%
compared to first quarter 2021, an increase driven both by strong
revenues for CACF (+5%; +2.9% excluding CACF NL) and CAL&F
(+13.2%; +8% excluding Olinn). Underlying costs excluding SRF were
up by +9.5%, in line with the increase in activity and recognition
of scope effects (+7.3% for CACF; +2.9% excluding CACF NL and
+17.2% for CAL&F; +8.2% excluding Olinn). Gross
operating income was stable at +0.3% compared to first
quarter 2021, and the underlying cost/income ratio
excluding SRF remained low at 53.3% (up +1.3 percentage points
compared to first quarter 2021). Cost of
risk31 decreased compared to first
quarter 2021 (-2.3%). As a result, in first quarter 2022, the
business line’s underlying net income Group share
reached €164 million, an increase of +3.4% compared to first
quarter 2021.
At 31 March 2022, the capital
allocated to the Specialised financial services business
line was €5.3 billion and risk weighted
assets were €55.3 billion.
Consumer finance
In first quarter 2022, CACF’s underlying
revenues excluding CACF NL reached €517 million, up
+2.9% compared to first quarter 2021, benefiting from dynamic
activity in France and abroad and the increase of insurance
revenues. CACF’s underlying costs excluding CACF
NL increased by +2.9%, in line with the evolution of the business
and the full consolidation of CACF Spain30 (for an effect of €7
million). Excluding CACF NL and CACF Spain, the increase in CACF’s
costs would be 0.2% (positive jaws effect of +1.9 percentage point
excluding scope effects). As a result, the underlying gross
operating income, excluding CACF NL was stable compared to
first quarter 2021, and the underlying cost/income ratio
excluding SRF and CACF NL remained low, at 51.4%
(unchanged from first quarter 2021). The contribution of
equity-accounted entities was strong and reached
€80 million in first quarter 2021 (+8.1% compared to first
quarter 2021). The cost of risk31
was low at -€117 million31, up +2.5% compared to first quarter
2021. The cost of credit risk relative to
outstandings over a rolling four-quarter period31 was
127 basis points. The non-performing loan
ratio came to 5.1% this quarter, down -0.4 percentage
points from end-December 2021, and the coverage ratio reached
89.7%, up 2 percentage points compared to end-December 2021. All in
all, the underlying net income Group share reached
€133 million in first quarter 2021, stable compared to
first quarter 2021.
Leasing & Factoring
In first quarter 2022,
CAL&F’s underlying revenues stood at
€160 million, a rise of +13.2% compared to first quarter 2021,
thanks to the strong activity in both leasing and factoring.
Costs excluding SRF increased by +17.2% compared
to first quarter 2021 in line with IT investments and the Olinn
consolidation since the fourth quarter 2021 (excluding Olinn, costs
excluding SRF rose by +8.2% with a neutral jaws effect of -0.15
percentage points. However, the cost/income ratio excluding
SRF and excluding Olinn remained stable
compared to first quarter 2021 at 53.9%). This resulted in a
year-on-year increase in gross operating income of
+1.8%. Cost of risk remained low at €7 million,
down -43.7% compared to first quarter 2021. CAL&F’s
underlying net income Group share was
€31 million in first quarter 2021, (+29.1% compared to first
quarter 2021).
Retail Banking
The Crédit Agricole S.A. Retail
banking activity was very dynamic this quarter, driven at
LCL by the production of housing, corporate, and SME and small
business loans and at Crédit Agricole Italia by dynamic commercial
activity.
Loan production at LCL was up
sharply compared to first quarter 2021 (+48%32) including for home
loans (+39%) corporates (+101%) and SME and small businesses
(+34%). In this context, loans outstanding reached
€153.1 billion at end-March 2022 and were up +6.3% since
end-March 2021, including +8.1% for real estate loans and +5.9% for
loans to SME and small businesses. Customer assets
have risen by +3.7% compared to end-March 2021, driven by
on-balance sheet deposits (+4.1%) in line with the increase in DAVs
(+11%), as well as by off-balance sheet savings which grew by +3.1%
year on year (out of which +2.7% is due to life insurance). Lastly,
customer capture remained dynamic with 93,800 new
customers this quarter. The equipment rate for
car, home, health, legal, all mobile phones or personal accident
insurance was up +0.6 percentage point compared to end-March 2021,
and reached 26.5% at end-March 2022.
Loans outstanding at CA Italia reached €59.5
billion at end-March 2022 and increased by +28.0% compared to
end-March 2021. On a like-for-like basis excluding Credito
Valtellinese, loans outstanding were down -2.9% (March/March)
impacted by the €1.5 billion disposal of doubtful loans in the
fourth quarter 2021 and by sluggish loan production in Italy at the
beginning of the year, mainly on corporates. Customer assets as of
31 March amounted to €113.5 billion, up +33.6% (+3.8% March/March
on a like-for-like basis pro forma Creval) driven by the growth in
managed customer assets (+5.8% March/March on a like-for-like basis
pro forma Creval). CA Italia’s equipment rate in car, multi-risk
home, health, legal, all mobile phones or personal accident
insurance increased to 19.2% (+1.5 percentage points from
end-March 2021).
The commercial integration of Creval is ongoing
and the legal merger was completed on 23 April 2022. The network
has expanded its offering of group products in consumer finance
with around 95% of new business being done by Agos and in asset
management, where almost a third of funds sold are produced by
Amundi.
In addition, the Next Generation HR plan was
implemented with the recruitment of approximately 150 employees for
approximately 120 departures.
For the International retail banking division,
excluding Italy, the growth in commercial activity remained strong.
Loans outstanding grew by +8.3% at end-March 2022 (+10% at constant
exchange rates) compared to end-March 2021, while customer assets
increased by +2.9% (+5% at constant exchange rates) over the same
period.
In Poland and Egypt, activity was especially
buoyant, with loan growth of +14% and +19% respectively, excluding
exchange rate impact, and on-balance sheet deposits up +18% and
+12% respectively.
In Ukraine, normal bank operations have been
affected by the war. The teams have been mobilised since the
beginning to meet customers’ essential needs. Two-thirds of the
branches are open and the digital banking app is still number one
on app stores in the country. The Group also provided immediate
financial and material support to employees and their families. The
bank’s liquidity position remains strong, and local provisions
amounting to €20 million33 have been recognized for doubtful loans.
The Group also recorded a provision for equity risk of €195
million, which has been classified as a specific item.
Lastly, two entities from this business line are
in the process of disposal, the sale of the Romanian subsidiary
being effective since the second quarter of 2021.
The sale of CA Srbija was finalised on 1 April
2022 (first quarter income recognised under IFRS 5 for €5
million).
The agreement to sell Crédit Agricole SA’s
entire 78.7% stake in Crédit du Maroc to the Moroccan group
Holmarcom was announced on 27 April 2022. Subject to approval by
regulatory authorities, the sale is expected to be completed in two
stages, with 63.7% of the stake to be sold by end-2022 and the
remaining 15% to be sold 18 months after the first sale is
completed. This transaction is expected to have an impact of around
10 basis points on the CET1 of Credit Agricole S.A. in 2022. The
income and provisions related to this disposal were recognised
under IFRS 5 in the first quarter 2022 for a total of -€7 million,
classified as specific items.
The result was a surplus of deposits over loans
in International retail banking outside Italy of +€2.8 billion
at 31 March 2022.
French retail banking
Underlying revenues were up
+8.3% compared to first quarter 2021, to €980 million in first
quarter 2022. The increase in revenues was driven by strong growth
in fee and commission income (+6%), mainly in the payment
instruments activity, as well as by the net interest margin (+10%)
which was boosted by dynamic corporates and SME and small business
activity and benefited from some non-recurring effects (including a
revaluation of the private equity portfolio). The
contribution to the Single Resolution Fund
(SRF) was €66 million this quarter, up +12.6%
compared to first quarter 2021. Underlying costs excluding
SRF increased by +3.8% to €596 million in first quarter
2022, mainly due to the increase of the contribution to the deposit
guarantee scheme (Fonds de Garantie des Dépôts, or FGD), which
reached €22 million. Excluding contributions to the SRF and FGD,
underlying costs: were up +1.4%, in particular as a result of
ongoing IT and real estate investments. The underlying cost/income
ratio excluding SRF improved by 2.6 percentage points to 60.8%
this quarter, and the underlying cost/income ratio
excluding SRF and FGD came to 58.6%, an improvement of
-4.0 pp compared to first quarter 2021. Underlying gross
operating income increased by +16.8% (+16.1% restated for
SRF) compared to first quarter 2021 for a total of €318 million.
The cost of risk was -€61 million for this
quarter, down by -25.8% compared to first quarter 2021, which was
impacted by quarantine measures. The NPL ratio
remained low, at 1.4% (-0.1 percentage points compared to first
quarter 2021), and the coverage ratio was high at 83.7% (-2.3
percentage points compared to first quarter 2021). Overall,
underlying net income Group share was up +54.0%
compared to first quarter 2021, to €179 million in first quarter
2022.
At 31 March 2022, the capital
allocated to the business line was €4.9 billion and
risk weighted assets were €51.2 billion.
International retail
banking
The International retail banking division’s
underlying revenues increased by +13.4% to €786 million in
first quarter 2022 and declined by -6.2% on a like-for-like basis
excluding the Creval acquisition in Italy. This decrease reflects
the transition to IFRS 5 for our entities in Serbia and Morocco.
Excluding this scope effect and on a like-for-like basis excluding
the Creval acquisition in Q2 2022, the International retail banking
division’s revenues rose by +1.1%. Underlying expenses excluding
SRF increased by +15.2% to €478 million in first quarter 2022.
On a like-for-like basis excluding Creval, expenses declined by
-6.1% and increased by +0.3% excluding Serbia and Morocco. As a
result of these changes in scope, the underlying gross operating
income excluding SRF stood at +€308 million. The underlying cost of
risk was -€78 million, its decline reflecting the improvement in
the quality of the assets of international retail banks. The
provision of -€195 million for equity risk on Ukraine was recorded
as a specific item. All in all, the underlying net income Group
share of the International retail banking division amounted to €107
million, i.e. 11% of the net income Group share of Crédit Agricole
S.A.’s business lines.
Italy
In first quarter 2022, CA Italia’s underlying
revenues were up 26.9% compared with first quarter 2021 and stood
at €619 million. Pro forma for the Creval acquisition,
revenues were down -2.2% with the continued pressure on the net
interest margin and the disposal of doubtful loans amounting to
€1.5 billion in fourth quarter 2021 and despite the continued
increase in fees (+3% compared to first quarter 2021). Underlying
expenses excluding SRF are up compared to first quarter 2021
(+31.5%) at €368 million. Pro forma Creval, expenses decreased
by -1.5%. Overall, underlying gross operating income excluding SRF
recorded an increase of +21.4% versus first quarter 2021 (-3.1% pro
forma Creval). The cost of risk decreased by -36.4% compared to
first quarter 2021 (-54.0% pro forma Creval) as CA Italia’s risk
profile was improved by the disposal of doubtful loans for
€1.5 billion in fourth quarter 2021. The doubtful loan ratio
at 31 March 2022 was 3.7% and the coverage ratio 62.6%. Both of
these items were impacted by the entry of Creval outstandings net
of provisions in fourth quarter 2021 but are stable compared to 31
December 2021. This translates into a net income Group share of
€96 million for CA Italia, up 58.8% compared to the net income
Group share of the first quarter of 2021 and 34.3% pro forma
Creval.
International Retail Banking – excluding
Italy
The contribution of this business line for the
first quarter amounts to €10 million, down 45.7% compared to
first quarter 2021.
The earnings of our entities in Morocco and
Serbia are recognised in first quarter 2022 under IFRS 5,
impacting all international retail banking earnings lines of
International Retail Banking-excluding Italy. Serbia contributed
€5 million to the business line’s Net income Group share and
Crédit du Maroc contributed -€7 million (results and
provisions related to the disposal), the latter being identified as
a specific item this quarter.
Apart from our entities that have been sold or
are in the process of being sold and Ukraine, whose operations have
been heavily penalised, the revenues of our entities in Poland and
Egypt grew strongly.
By country:
- CA Poland34: revenues rose sharply
(+23%), driven by the acquisition of new customers (+22,000 in
first quarter 2022) and a strong increase in the net interest
margin and the increase in fee and commission income; expenses rose
by +21%, with this increase including contributions to the deposit
guarantee fund and commercial investments. The doubtful loan ratio
fell to 5.7% thanks to the improved quality of the loan portfolio
and portfolio disposals.
- CA Egypt34: revenues increased by 7%
compared to first quarter 2021, driven by corporates activity.
Expenses were up by +9% in an accelerating inflationary context.
The cost/income ratio remained below 40%.
As at 31 March 2022, the capital allocated to
the business line was €9.6 billion, including
€4.9 billion for French Retail banking and €4.7 billion
for International Retail banking. Risk weighted assets for the
business line totalled €101.1 billion including
€51.2 billion for French retail banking and €49.9 billion
for International retail banking.
Corporate Centre
AHM’s underlying net income Group Share was
-€231 million in first quarter 2022, remaining almost stable
compared to first quarter 2021 at -€210 million. An analysis
of the negative contribution of the Corporate Centre looks at both
the “structural” contribution (-€301 million) and other items
(+€70 million). The contribution of the “structural” component
was down compared to first quarter 2021 (-€55 million) due to
volatility in intragroup operations with Regional Banks, and to the
decrease in contributions from CACIF and BforBank, and despite the
increase in revenues from Crédit Agricole Payment Services. This
contribution includes three types of activities:
- The activities
and functions of the Corporate Centre of the Crédit
Agricole S.A. corporate entity. This contribution reached
-€303 million in first quarter 2022, down
€43 million compared with first quarter 2021, due to
a negative effect linked to the volatility in intragroup operations
with Regional Banks.
- The
sub-divisions that are not part of the core business lines, such as
CACIF (Private equity) and CA Immobilier and, since first
quarter 2021, BforBank, equity-accounted as it is 50% owned by
Crédit Agricole S.A. following its capital increase. Their
contribution, at -€1 million in first quarter 2022, fell by
€15 million compared with first quarter 2021, which can be
explained by the increase in CACIF and BforBank revenues.
- The Group’s
support functions. Their contribution of +€3 million this
quarter rose by €4 million since first quarter 2021, due to
higher revenues from Crédit Agricole Payment Services.
The contribution from “other items” amounts to
+€70 million, up €34 million compared to first quarter
2021, due to the results of the liquidity reserve portfolio and the
seasonal nature of inflation.
At 31 March 2022, risk-weighted assets
stood at €26.3 billion.
* *
*
Financial strength
Crédit Agricole Group
As at 31 March 2022, the phased-in
Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group
was 17.0%, a decrease of -0.5 percentage point compared to end
December 2021. Therefore, Crédit Agricole Group posted a
substantial buffer of +8.1 percentage points between the level
of its CET1 ratio and the 8.9% SREP (Supervisory review and
evaluation process) requirement. The fully loaded CET1 ratio is
16.7%.
Retained earnings include +23 basis points
in stated income: and -4 basis points in distribution and
payment of AT1 coupons. The contribution of the change in risk
weighted assets to the change in ratios includes a
€5.8 billion increase in RWAs at CACIB due to the Russian
crisis (including the deterioration of Russian exposures), for
-17 bp. Excluding the effect from the Russian crisis, the
increase was concentrated in the Large Customers, which benefited
from high loan demand, Regional Banks and Specialised Financial
Services business lines, for -28 bp overall. The insurance
effect on OCI reserves (unrealised gains and/or losses) and
equity-accounted value represents -15 bp (-11 bp linked
to the decrease in unrealised gains and/or losses and -4 bp
for equity-accounted value). Finally, regulatory and other effects
contributed -17 bp, mainly due to the impact of the deduction
of irrevocable payment commitments (-17 bp) and IFRS9 phasing
(-11 bp).
The phased-in leverage ratio
stood at 5.8%, -0.3 percentage point compared to end December
2021 (5.2% before the exclusion of ECB exposures) and well above
the regulatory requirement of 3.11%35.
The Crédit Agricole Group’s risk
weighted assets increased by €6.5 billion compared
with 31 December 2021 to €592 billion, including +€2.3 billion
for Regional Banks.
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 31 March 2022, Crédit Agricole
Group posted a buffer of
733 basis points
above the MDA trigger, i.e.
€43 billion in CET1
capital.
At 31 March 2022, Crédit Agricole
S.A. posted a buffer of
289 basis points
above the MDA trigger, i.e.
€11 billion in CET1
capital.
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.
The elements that could absorb losses consist of
equity, subordinated notes and debts to which the Resolution
Authority can apply the bail-in.
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 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 0.02% for the CA Group at 31/03/22). 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).
At 31 March 2022,
Crédit Agricole Group’s TLAC ratio stood
at 25.9% of RWA and 8.3%
of leverage ratio exposure, excluding eligible senior preferred
debt 36, which is well above the
requirements. The TLAC ratio excluding eligible senior debt,
expressed as a percentage of risk-weighted assets, fell by
40 bp over the quarter, in line with the decline in the Crédit
Agricole Group’s CET1 ratio and increase of its RWA, due in
particular to the impact of the war in Ukraine. Expressed as a
percentage of leverage exposure (LRE), the TLAC ratio excluding
eligible senior preferred debt fell 40 bp compared with
December 2021. Without taking into account the neutralisation of
Central Bank exposures, such TLAC ratio expressed in LRE would have
reached 7.5% (-30 bp compared with December 2021).
The Group thus has a TLAC ratio excluding
eligible senior preferred debt that is 440 bps higher, i.e.
€26 billion, than the current requirement of 21.5% of RWA.
Achievement of the TLAC ratio is supported by a
TLAC debt issuance programme of around €6 billion in
the wholesale market in 2022. At 31 March 2022,
€2 billion equivalent had been issued in the market (senior
non-preferred and Tier 2 debt); the amount of the Crédit Agricole
Group senior non-preferred debt taken into account in the
calculation of the TLAC ratio was €26.4 billion.
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). Eligible for the numerator of the total MREL
ratio are the Group’s regulatory capital, as well as eligible
liabilities issued by the central body and its 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.
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 0.02% for the CA Group at
31/03/22). 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 31 March 2022, the Crédit Agricole
Group had an estimated MREL ratio of 30.2% of RWA and
9.7% 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 31 March 2022, the Crédit Agricole
Group had a buffer of 440 basis points above
the M-MDA trigger, taking into account the TLAC requirement
applicable as of 31 March 2022, i.e. €26 billion of CET1
capital.
Crédit Agricole Group’s target is to reach a
subordinated MREL ratio (excluding eligible senior preferred debt)
of 24-25% of the RWA by the end of 2022 (a goal achieved in
September 2020) and to maintain the subordinated MREL ratio above
8% of TLOF37. This level would enable recourse to
the Single Resolution Fund (subject to the decision of the
resolution authority) before applying the bail-in to senior
preferred debt, creating an additional layer of protection for
investors in senior preferred debt. At 31 March 2022, the
subordinated MREL ratio reached 8.3% of TLOF.
Crédit Agricole S.A.
At end March 2022, Crédit Agricole S.A.’s
solvency level remained high, with a phased-in Common
Equity Tier 1 (CET1) ratio of 11.0% (down
0.9 percentage point from end December 2021). 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
requirement. The fully loaded CET1 ratio is 10.8%.
The stated result contributed +15 bp to the
change in the ratio since the end of 2021. Distribution contributed
-9 bp, including a dividend provision of €0.07/share based on
a 50% payout policy, as well as the payment of AT1 coupons for the
first quarter (-3 bp). The contribution of the change in risk
weighted assets to the change in ratios includes a
€5.8 billion increase in RWAs at CACIB due to the Russian
crisis (including the deterioration of Russian exposures), for
-17 bp. Excluding the effect from the Russian crisis, the
increase was concentrated in the Large Customers, which benefited
from high loan demand and Specialised Financial Services business
lines, for -20 bp overall. The insurance effect on OCI
reserves (unrealised gains and/or losses) and equity-accounted
value represents -29 bp (-25 bp linked to the decrease in
unrealised gains and/or losses and -4 bp for equity-accounted
value). Finally, regulatory and other effects contributed to -32
bp, mainly due to the impact of the deduction of irrevocable
payment commitments (-18 bp) and IFRS9 phasing
(-10 bp).
The phased leverage ratio stood
at 4.2% at end March 2022 compared with a requirement of 3.18%38.
The leverage ratio before neutralisation of ECB exposures is 3.6%,
slightly down compared with the end of December 2021.
Crédit Agricole Group’s risk weighted
assets were up +€8 billion compared to 31 December
2021 to €385 billion, mainly due to the consideration of the impact
if the war in Ukraine (+€5.8 billion). The rest of the
increase was recorded in Specialised Financial Services
(+€1.7 billion), and in Large Customers (€3.9 billion),
which benefited from high loan demand in 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 €62 billion at end March 2022.
Similarly, €120 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
€159 billion at end-March 2022 – relate to derivatives, margin
calls, adjustment/settlement/liaison accounts and to non-liquid
securities held by Corporate and Investment banking 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 (€73 billion
at end March 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 €1,654 billion at 31 March
2022, the Group’s banking cash balance sheet shows a surplus of
stable funding resources over stable application of funds of
€286 billion, up €7 billion compared to end December
2021 and to end March 2021.
Total T-LTRO 3 outstandings for the Crédit
Agricole Group amounts to €162 billion39 at 31 March 2022. It
should be noted that the interest rate applicable to the
refinancing rate of these operations is accrued over the drawdown
period. 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 Q1 2022 for all
drawdowns.
The Group recorded balanced growth in commercial
activity during the quarter, with an increase of €6 billion in
customer resources and €8 billion in loans.
The surplus of 286 billion euros,
known as “stable resources position”, allows the Group to cover the
LCR deficit generated by long term assets and stable liabilities
(customer, tangible and intangible assets, long-term funds, own
funds). Internal management excludes the temporary surplus of
stable resources provided by the increase in T-LTRO 3 outstanding
in order to secure the Medium-Term Plan target of more than
€100 billion, irrespective of the future repayment
strategy.
Furthermore, given the excess liquidity, the
Group remained in a short-term lending position at 31 March 2022
(central bank deposits exceeding the amount of short-term net
debt).
Medium-to-long-term market resources
were €350 billion at 31 March 2022, up
€6 billion compared to end December 2021, and up
€12 billion compared to end March 2021.
They included senior secured debt of
€223 billion, senior preferred debt of €77 billion,
senior non-preferred debt of €29 billion and Tier 2
securities amounting to €21 billion.
At 31 March 2022, the Group’s liquidity
reserves, at market value and after haircuts, amounted to
€472 billion, up +€7 billion from
end December 2021 and up +€11 billion from end March
2021. They covered short-term net debt nearly four times over
(excluding the replacements with Central Banks).
The high level of central bank deposits was the
result of the replacement of significant excess liquidity: they
amounted to €241 billion at 31 March 2022 (excluding cash and
mandatory reserves), up €14 billion compared to end December
2021 and up €23 billion compared to end March 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 €105 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 31
March 2022 were respectively 170.4% for Crédit Agricole Group and
150.5% for Crédit Agricole S.A. They exceeded the
Medium-Term Plan target of 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.
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 March 2021, the Group’s main
issuers raised the equivalent of
€17.7 billion40 in
medium-to-long-term debt on the markets, 52% of which was
issued by Crédit Agricole S.A. To be noted that:
- Crédit Agricole
next bank (Switzerland) completed a CHF100 million 6.5-year
covered bond issue in January;
- Crédit Agricole
Italia completed a €1.5 billion covered bond issue in two
tranches (10 and 20 years) in January
In addition, €2.2 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 April, Crédit Agricole S.A.
completed 84% of its €13 billion medium- to
long-term market funding programme41
for 2022. Funding in diverse formats (Senior
secured, Senior preferred, Senior non-preferred and Tier 2) and
currencies (EUR, USD, AUD, CHF, NOK, SGD).
The bank raised the equivalent of
€11.0 billion42, of which €3.4 billion in senior
non-preferred debt and €0.2 billion in Tier 2 debt (for a
combined budget of €6 billion), as well as €3.3 billion
in senior preferred debt and €4.0 billion in senior secured
debt (for a combined budget of €7 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.
Groupe Crédit Agricole – Specific items, Q1-22 and Q1-21
|
|
|
Q1-22 |
Q1-21 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
(31) |
(23) |
8 |
6 |
|
Loan portfolio hedges (LC) |
|
17 |
12 |
(7) |
(5) |
|
Home Purchase Savings Plans (LCL) |
|
6 |
4 |
(12) |
(9) |
|
Home Purchase Savings Plans (CC) |
|
18 |
13 |
(4) |
(3) |
|
Home Purchase Savings Plans (RB) |
|
70 |
52 |
(18) |
(13) |
|
Reclassification of held-for-sale operations - NBI (IRB) |
|
0.2 |
0.2 |
- |
- |
| Total
impact on revenues |
|
79 |
59 |
(33) |
(23) |
|
Creval integration costs (IRB) |
|
(8) |
(5) |
- |
- |
|
Lyxor integration costs (AG) |
|
(10) |
(5) |
- |
- |
|
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(4) |
(2) |
|
Provision for restructuring costs (CACEIS) |
|
- |
- |
- |
- |
|
Reclassification of held-for-sale operations - Costs (IRB) |
|
(0.4) |
(0.3) |
- |
- |
| Total
impact on operating expenses |
|
(18) |
(10) |
(4) |
(2) |
|
Restatement SRF 2016-2020 (CR) |
|
- |
- |
55 |
55 |
|
Restatement SRF 2016-2020 (CC) |
|
- |
- |
130 |
130 |
| Total
impact on SRF |
|
- |
- |
185 |
185 |
| |
|
|
|
|
|
|
Provision for own equity risk Ukraine (IRB) |
|
(195) |
(195) |
- |
- |
| |
|
|
|
|
|
| Total
impact on cost of credit risk |
|
(195) |
(195) |
- |
- |
|
Reclassification of held-for-sale operations (IRB) |
|
(4) |
(7) |
- |
- |
|
Ongoing sale project (WM) |
|
- |
- |
(5) |
(5) |
| Total
impact on Net income from discounted or held-for-sale
operations |
|
(4) |
(7) |
(5) |
(5) |
|
|
|
|
|
|
|
|
Total impact of specific items |
|
(138) |
(153) |
143 |
154 |
|
Asset gathering |
|
(10) |
(5) |
(5) |
(5) |
|
French Retail banking |
|
76 |
56 |
24 |
33 |
|
International Retail banking |
|
(207) |
(207) |
|
- |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(14) |
(10) |
(3) |
(1) |
|
Corporate centre |
|
18 |
13 |
126 |
127 |
Crédit Agricole S.A. – Specific items, Q1-22 and Q1-21
|
|
|
Q1-22 |
Q1-21 |
|
€m |
|
Gross impact* |
Impact on Net income |
Gross impact* |
Impact on Net income |
| |
|
|
|
|
|
|
DVA (LC) |
|
(31) |
(22) |
8 |
6 |
|
Loan portfolio hedges (LC) |
|
17 |
12 |
(7) |
(5) |
|
Home Purchase Savings Plans (FRB) |
|
6 |
4 |
(12) |
(8) |
|
Home Purchase Savings Plans (CC) |
|
18 |
13 |
(4) |
(3) |
|
Reclassification of held-for-sale operations - NBI (IRB) |
|
0.2 |
0.2 |
- |
- |
| Total
impact on revenues |
|
10 |
7 |
(15) |
(10) |
|
S3 / Kas Bank integration costs (LC) |
|
- |
- |
(4) |
(2) |
|
Creval integration costs (IRB) |
|
(8) |
(4) |
- |
- |
|
Reclassification of held-for-sale operations - Costs (IRB) |
|
(0.4) |
(0.3) |
- |
- |
|
Lyxor integration costs (AG) |
|
(10) |
(5) |
- |
|
| Total
impact on operating expenses |
|
(18) |
(9) |
(4) |
(2) |
|
Restatement SRF2016-2020 |
|
- |
- |
130 |
130 |
| Total
impact on SRF |
|
- |
- |
130 |
130 |
|
Provision for own equity risk Ukraine (IRB) |
|
(195) |
(195) |
- |
- |
| Total
impact on cost of credit risk |
|
(195) |
(195) |
- |
- |
|
Reclassification of held-for-sale operations (IRB) |
|
(4) |
(7) |
- |
- |
|
Ongoing sale project (WM) |
|
- |
- |
(5) |
(5) |
| Total
impact on Net income from discounted or held-for-sale
operations |
|
(4) |
(7) |
(5) |
(5) |
|
Total impact of specific items |
|
(207) |
(204) |
106 |
113 |
|
Asset gathering |
|
(10) |
(5) |
(5) |
(5) |
|
French Retail banking |
|
6 |
4 |
(12) |
(8) |
|
International Retail banking |
|
(207) |
(206) |
- |
- |
|
Specialised financial services |
|
- |
- |
- |
- |
|
Large customers |
|
(14) |
(10) |
(3) |
(1) |
|
Corporate centre |
|
18 |
13 |
126 |
127 |
Appendix 2 – Credit Agricole Group: results by business
lines
Crédit Agricole Group – Results by business lines, Q1-2022 and
Q1-2021
|
|
Q1-22 (stated) |
|
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,686 |
986 |
804 |
1,728 |
688 |
1,723 |
65 |
9,680 |
|
Operating expenses excl. SRF |
(2,326) |
(596) |
(502) |
(877) |
(366) |
(968) |
(276) |
(5,911) |
|
SRF |
(158) |
(66) |
(30) |
(8) |
(35) |
(441) |
(56) |
(794) |
|
Gross operating income |
1,202 |
324 |
273 |
844 |
286 |
314 |
(267) |
2,975 |
|
Cost of risk |
(145) |
(61) |
(275) |
(2) |
(125) |
(278) |
(3) |
(888) |
|
Equity-accounted entities |
4 |
- |
1 |
20 |
80 |
3 |
(0) |
108 |
|
Net income on other assets |
13 |
(0) |
(0) |
1 |
0 |
0 |
(1) |
13 |
|
Income before tax |
1,074 |
262 |
(1) |
863 |
242 |
38 |
(271) |
2,208 |
|
Tax |
(302) |
(81) |
(57) |
(178) |
(54) |
(75) |
54 |
(694) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
1 |
(1) |
1 |
- |
- |
2 |
|
Net income |
772 |
181 |
(57) |
685 |
189 |
(37) |
(217) |
1,516 |
|
Non controlling interests |
(0) |
(0) |
(31) |
(115) |
(26) |
(10) |
(4) |
(185) |
|
Net income Group Share |
772 |
181 |
(88) |
570 |
164 |
(47) |
(221) |
1,331 |
|
|
Q1-21 (stated) |
|
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
3,536 |
893 |
1,582 |
711 |
644 |
1,664 |
20 |
9,049 |
|
Operating expenses excl. SRF |
(2,267) |
(574) |
(783) |
(428) |
(334) |
(913) |
(204) |
(5,505) |
|
SRF |
(87) |
(59) |
(7) |
(20) |
(24) |
(328) |
58 |
(467) |
|
Gross operating income |
1,183 |
260 |
792 |
262 |
285 |
422 |
(127) |
3,078 |
|
Cost of risk |
(153) |
(83) |
(7) |
(99) |
(127) |
(67) |
1 |
(537) |
|
Equity-accounted entities |
0 |
- |
18 |
- |
74 |
2 |
- |
94 |
|
Net income on other assets |
10 |
0 |
1 |
2 |
(0) |
0 |
(0) |
13 |
|
Income before tax |
1,040 |
178 |
804 |
165 |
232 |
357 |
(126) |
2,648 |
|
Tax |
(342) |
(65) |
(179) |
(51) |
(50) |
(66) |
32 |
(720) |
|
Net income from discont'd or held-for-sale ope. |
- |
- |
(5) |
(1) |
- |
- |
- |
(6) |
|
Net income |
697 |
113 |
620 |
113 |
182 |
291 |
(94) |
1,921 |
|
Non controlling interests |
(0) |
(0) |
(109) |
(23) |
(24) |
(10) |
(2) |
(168) |
|
Net income Group Share |
697 |
113 |
510 |
91 |
158 |
281 |
(96) |
1,754 |
Appendix 3 –
Crédit Agricole S.A.:
results by business
line
Crédit Agricole S.A. – Results by business lines, Q1-2022 and
Q1-2021
|
|
Q1-22 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,729 |
1,723 |
688 |
986 |
786 |
26 |
5,938 |
|
Operating expenses excl. SRF |
(877) |
(968) |
(366) |
(596) |
(487) |
(224) |
(3,518) |
|
SRF |
(8) |
(441) |
(35) |
(66) |
(30) |
(56) |
(636) |
|
Gross operating income |
845 |
314 |
286 |
324 |
270 |
(255) |
1,784 |
|
Cost of risk |
(2) |
(278) |
(125) |
(61) |
(273) |
(2) |
(741) |
|
Equity-accounted entities |
20 |
3 |
80 |
- |
1 |
(8) |
95 |
|
Net income on other assets |
1 |
0 |
0 |
9 |
(0) |
(0) |
10 |
|
Income before tax |
864 |
38 |
242 |
272 |
(2) |
(265) |
1,148 |
|
Tax |
(178) |
(75) |
(54) |
(81) |
(57) |
54 |
(391) |
|
Net income from discontinued or held-for-sale operations |
(1) |
- |
1 |
- |
1 |
- |
2 |
|
Net income |
686 |
(37) |
189 |
190 |
(58) |
(212) |
759 |
|
Non controlling interests |
(120) |
(6) |
(26) |
(8) |
(42) |
(6) |
(207) |
|
Net income Group Share |
566 |
(43) |
164 |
183 |
(100) |
(218) |
552 |
|
|
Q1-21 (stated) |
|
€m |
AG |
LC |
SFS |
FRB (LCL) |
IRB |
CC |
Total |
|
|
|
|
|
|
|
|
|
|
Revenues |
1,584 |
1,665 |
644 |
893 |
693 |
14 |
5,493 |
|
Operating expenses excl. SRF |
(783) |
(913) |
(334) |
(574) |
(415) |
(176) |
(3,197) |
|
SRF |
(7) |
(328) |
(24) |
(59) |
(20) |
58 |
(380) |
|
Gross operating income |
793 |
423 |
285 |
260 |
258 |
(104) |
1,916 |
|
Cost of risk |
(7) |
(67) |
(127) |
(83) |
(100) |
1 |
(384) |
|
Equity-accounted entities |
18 |
2 |
74 |
- |
- |
(7) |
87 |
|
Net income on other assets |
1 |
0 |
(0) |
0 |
2 |
(0) |
3 |
|
Income before tax |
805 |
358 |
232 |
178 |
160 |
(110) |
1,622 |
|
Tax |
(179) |
(66) |
(50) |
(65) |
(50) |
31 |
(378) |
|
Net income from discontinued or held-for-sale operations |
(5) |
- |
- |
- |
(1) |
- |
(6) |
|
Net income |
621 |
292 |
182 |
113 |
109 |
(79) |
1,238 |
|
Non controlling interests |
(114) |
(16) |
(24) |
(5) |
(30) |
(4) |
(193) |
|
Net income Group Share |
507 |
276 |
158 |
108 |
79 |
(83) |
1,045 |
Appendix 4 – Methods used to calculate earnings per
share, net asset value per share
|
Crédit Agricole S.A. – Data per share, net book value per share and
ROTE |
|
(€m) |
|
|
Q1-22 |
Q1-21 |
|
Var Q1/Q1 |
|
|
|
|
|
|
|
|
| Net income
Group share - stated |
|
|
552 |
1,045 |
|
(47.2%) |
| - Interests on
AT1, including issuance costs, before tax |
|
|
(122) |
(114) |
|
+7.0% |
| NIGS
attributable to ordinary shares - stated |
[A] |
|
430 |
931 |
|
(53.9%) |
| Average number
shares in issue, excluding treasury shares (m) |
[B] |
|
3,024.1 |
2,915.7 |
|
+3.7% |
|
Net earnings per share - stated |
[A]/[B] |
|
0.14 € |
0.32 € |
|
(55.5%) |
| Underlying net
income Group share (NIGS) |
|
|
756 |
932 |
|
(18.9%) |
| Underlying NIGS
attributable to ordinary shares |
[C] |
|
634 |
818 |
|
(22.5%) |
|
Net earnings per share - underlying |
[C]/[B] |
|
0.21 € |
0.28 € |
|
(25.3%) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(€m) |
|
|
31/03/2022 |
31/12/2021 |
|
|
| Shareholder's
equity Group share |
|
|
67,695 |
68,217 |
|
|
| - AT1
issuances |
|
|
(5,982) |
(4,888) |
|
|
| - Unrealised
gains and losses on OCI - Group share |
|
|
(414) |
(2,125) |
|
|
| - Payout
assumption on annual results* |
|
|
(3,388) |
(3,176) |
|
|
|
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
|
57,912 |
58,027 |
|
|
| - Goodwill
& intangibles** - Group share |
|
|
(18,476) |
(18,581) |
|
|
|
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
|
39,435 |
39,445 |
|
|
| Total shares in
issue, excluding treasury shares (period end, m) |
[F] |
|
3,023.7 |
3,025.2 |
|
|
| NBV per share ,
after deduction of dividend to pay (€) |
[D]/[F] |
|
19.2 € |
19.2 € |
|
|
| + Dividend to
pay (€) |
[H] |
|
1.05 € |
1.05 € |
|
|
| NBV per share ,
before deduction of dividend to pay (€) |
|
|
20.2 € |
20.2 € |
|
|
| TNBV per share,
after deduction of dividend to pay (€) |
[G]=[E]/[F] |
|
13.0 € |
13.0 € |
|
|
| TNBV per sh.,
before deduct. of divid. to pay (€) |
[G]+[H] |
|
14.1 € |
14.1 € |
|
|
| * dividend
proposed to the Board meeting to be paid |
|
|
|
|
|
|
| ** including
goodwill in the equity-accounted entities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(€m) |
|
|
Q1-22 |
2021 |
|
|
| Net income
Group share - stated |
[K] |
|
552 |
5,844 |
|
|
| Impairment of
intangible assets |
[L] |
|
0 |
0 |
|
|
| IFRIC |
[M] |
|
-676 |
0 |
|
|
| Stated NIGS
annualised |
[N] = ([K]-[L]-[M])*4+[M] |
|
4,236 |
5,844 |
|
|
| Interests on
AT1, including issuance costs, before tax, annualised |
[O] |
|
-488 |
-353 |
|
|
| Stated result
adjusted |
[P] = [N]+[O] |
|
3,748 |
5,491 |
|
|
| Tangible NBV
(TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
39,440 |
38,645 |
|
|
| Stated ROTE
adjusted (%) |
= [P] / [J] |
|
9.5% |
14.2% |
|
|
| Underlying Net
income Group share |
[Q] |
|
756 |
5,397 |
|
|
| Underlying NIGS
annualised |
[R] = ([Q]-[M])*4+[M] |
|
5,054 |
5,397 |
|
|
| Underlying NIGS
adjusted |
[S] = [R]+[O] |
|
4,566 |
5,044 |
|
|
| Underlying ROTE
adjusted(%) |
= [S] / [J] |
|
11.6% |
13.1% |
|
|
| *** including
assumption of dividend for the current exercise |
|
|
0.0% |
0.0% |
|
|
(1) Average of the TNBV not
revalued is attributable to ordinary shares calculated between
31/12/2021 and 31/03/2022 and restated as presented in the median
table
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.
Impaired (or doubtful) loan coverage
ratio: This ratio divides the outstanding provisions by
the impaired gross customer outstandings.
Impaired (or doubtful) loan
ratio:This ratio divides the gross customer outstandings
depreciated on an individual basis, before provisions, by the total
gross customer outstandings.
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 issuing 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 first quarter 2022 comprises
this presentation and the attached appendices and press release
which are available on the website:
https://www.credit-agricole.com/en/finance/finance/financial-publications.
This presentation 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 three-month period
ending 31 March 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.
Other information
Crédit Agricole S.A.’s Combined General Meeting will take place
on 24 May in Montpellier. As already announced, the Board of
Directors will propose to the General Meeting a cash dividend of
€1.05 per share (of which €0.85 for the policy of distributing 50%
of earnings and €0.20 for the continuation of the 2019 dividend
catch-up). It corresponds to a return of 10% based on the share
price at 3 May 2022 (closing).
- Ex dividend date: 30 May 2022
- Payment: 1 June 2022.
Financial Agenda
24 May
2022 General
Meeting in Montpellier4 August
2022 Publication
of second quarter and first half 2022 results10
November 2022
Publication
of 2022 third quarter and first nine months
results
Contacts
CREDIT AGRICOLE PRESS CONTACTS
Charlotte de
Chavagnac +33 (0)1
57 72 11
17 charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain + 33 1 43 23
25
41 olivier.tassain@credit-agricole-sa.frBertrand
Schaefer + 33 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: |
|
|
| Fethi Azzoug |
+ 33 1 57 72 03
75 |
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 |
| Marie-Laure
Malo |
+ 33 1 43 23 10
21 |
marielaure.malo@credit-agricole-sa.fr |
| Rhita Alami
Hassani |
+ 33 1 43 23 15
27 |
rhita.alamihassani@credit-agricole-sa.fr |
| |
|
|
| |
|
|
| |
|
|
| |
|
|
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
| |
Crédit_Agricole |
|
Crédit
Agricole Group |
|
créditagricole_sa |
1 Following credit events that occurred before the beginning of
the conflict and including a risk analysis of corporate performing
exposures2 Of which €120 million as a provision for contingent
liabilities (included in Stage 1 and 2 cost of risk)3 Excluding
Regional Banks and LCL state-guaranteed loans 4 Underlying,
excluding specific items. See Appendixes for more details on
specific items. 5 Excluding CA Consumer Finance NL, classified
under IFRS 5 from the third quarter 20206 Of which €120
million as a provision for contingent liabilities (included in
Stage 1 and 2 cost of risk)7 Following credit events that took
place before the start of the conflict and including a risk
analysis of corporate performing exposures8 Provisioning rate
calculated with outstandings in Stage 3 as denominator, and the sum
of the provisions recorded in Stages 1, 2 and 3 as numerator9 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 quarters10 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 quarter11 Car, home,
health, legal, all mobile phones or personal accident insurance12
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 app
13 Underlying, excluding specific items. See Appendixes for more
details on specific items.
14 The Single Resolution Fund (SRF) was created
in 2014. It is a supranational fund financed by Eurozone member
states, notably enabling the pooling of financial resources to be
used for banking resolution. The Single Resolution Fund will be
gradually built up by contributions from national resolution funds
over a period of eight years from 2016, to reach a target of at
least 1% of the covered deposits of all approved credit
institutions of the participating Member States combined by 2023.15
Provisioning rate calculated with outstandings in Stage 3 as
denominator, and the sum of the provisions recorded in Stages 1, 2
and 3 as numerator16 Of which €120 million as a provision for
contingent liabilities (included in Stage 1 and 2 cost of risk)17
Following credit events that took place before the start of the
conflict and including a risk analysis of corporate performing
exposures18 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 quarters19 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
quarter20 See
Appendixes for more details on specific items.21 (claims +
operating expenses + commissions) to premium income, net of
reinsurance, Pacifica scope.22 Reclassification of La Médicale
under IFRS5 in Q4-21; excluding La Médicale, revenues +14% Q1/Q1;
expenses +16% Q1/Q1; Net income Group share +16% Q1/Q1.23 Source:
Refinitiv24 Source: Refinitiv R1725 Refinitiv X0226 Source:
Refinitiv N127 Source: Bloomberg, all currencies, as of 8 April28
Of which €120 million as a provision for contingent liabilities
(included in Stage 1 and 2 cost of risk)29 Agos and other
international entities (excluding CACF NL and automotive JVs in
Italy and China)30 In third quarter 2021, full consolidation of
CACF Spain (formerly SoYou). In Q1 2022, CACF Spain revenues
reached €4M and CACF Spain costs €7M. Positive jaws effect
excluding CACF NL, CACF Spain and FRU (+2 pp)31 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 quarters32
Excluding state-guaranteed loans33 Following credit events that
occurred before the beginning of the conflict and including a risk
analysis of corporate performing exposures34 Excluding foreign
exchange impact
35 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022 included. The Crédit Agricole Group
applies this provision and must, therefore, comply with a leverage
ratio requirement of 3.11% during this period.36 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 2022.37 Total Liabilities and Own
Funds (TLOF) – equivalent to the total prudential balance sheet
after netting of derivatives
38 Under CRR2, banks may exclude certain Central
Bank exposures from the total exposure of the leverage ratio when
justified by exceptional macroeconomic circumstances. If this
exemption is applied, institutions must meet an adjusted leverage
ratio requirement of more than 3%. On 18 June 2021, the European
Central Bank announced that credit institutions under its
supervision could apply this exclusion due to the existence of
exceptional circumstances since 31 December 2019; this measure is
applicable until 31 March 2022 included. Crédit Agricole S.A.
applies this provision and must, therefore, comply with a leverage
ratio requirement of 3.18% during this period39 Excluding FCA
Bank40 Gross amount before buy-backs and amortisations, excl. AT1
issuances41 Excl. AT1 issuances42 Gross amount before buy-backs and
amortisations, excl. AT1 issuances
- EN_CASA_2022-T1_Resultats_CP_Vdef
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