New risk factors relating to the Medium term plan “2025 Ambitions”
announced by Crédit Agricole S.A. on 22 June 2022
Montrouge, 24 June 2022
New risk
factors relating to the Medium term plan “2025
Ambitions” announced by Crédit Agricole S.A. on 22 June
20221
Following the announcement by Crédit Agricole S.A. of its new
Medium term Plan “2025 Ambitions” on 22 June 2022 (the
“2025 Medium-Term Plan”), Crédit
Agricole S.A. draw investors’ attention on the following risk
factors relating to the achievement of the 2025 Medium-Term Plan
targets. |
|
Crédit Agricole S.A. may not achieve the targets set out in
its 2025 Medium-Term Plan
On 22 June 2022, Crédit Agricole S.A. announced
its 2025 Medium-Term Plan “2025 Ambitions” (the
“2025 Medium-Term Plan”). The
2025 Medium-Term Plan relies on the strength of the Crédit Agricole
Group business model, based on the comprehensive and sustainable
relationship for all clients, all regions and all channels. This
development also leverages on business lines that have their own
development dynamics and that have become leaders and consolidators
on their respective markets. The 2025 Medium-Term Plan also relies
on the organic growth strategy of Crédit Agricole Group. The Group
targets 1 million additional customers in retail banking by 2025
and aims at increasing the customer equipment in P&C insurance
savings solutions and real estate. It has the ambition of widening
and adapting its offer range (more accessible, more responsible and
more digital) so as to answer new customer needs. In addition, ,
the partnership and targeted acquisition strategy will be
continued, with compliance to the profitability criteria (ROI >
10% by 3 years). Crédit Agricole S.A. targets new distribution
partnerships with financial players as well as industrial and
technological partnerships. In the 2025 Medium-Term Plan, Crédit
Agricole S.A. aims at developing its worldwide business lines,
increasing the pace of its growth on transversal businesses such as
payments, real estate, digital banking and technology-as-a-service,
and accelerating its technological, digital and human
transformation.
The 2025 Medium-Term Plan includes a number of
financial targets, notably on the cost to income ratio, the net
income, the return on equity and capital adequacy ratios. These
financial targets, established primarily for purposes of internal
planning and allocation of resources, are based on a number of
assumptions with regard to the economic climate and the activity of
the business lines of the Crédit Agricole S.A. The financial
targets do not constitute projections or forecasts of anticipated
results. The actual results of Crédit Agricole S.A. are likely to
vary (and could vary significantly) from these targets for a number
of reasons, including the materialisation of one or more of the
risk factors described in this section. For example,
Crédit Agricole S.A. expects to achieve the following targets
presented in the 2025 Medium-Term Plan: a net income group share in
excess of €6 billion by 2025, a permanent ceiling of the cost to
income ratio to below 60% which will be lowered to 59% post
implementation of the IFRS17 reform, return on tangible equity
(RoTE) in excess of 12% by 2025, a CET1 ratio of 11% across the
2025 Medium-Term Plan with a floor at all time of 250bp above the
minimum SREP requirement (together with a strategy of optimisation
of the AT1 bucket). The 2025 Medium-Term Plan also provides a
dividend distribution target of 50% in cash, even in case of moves
of the CET1 ratio around its 2025 Medium-Term Plan target. In 2023,
it is Crédit Agricole S.A. intention to propose to the General
Shareholder Meeting an additional dividend of €0.20 per share that
was not distributed for 2019 dividend.
In addition, as a responsible and committed
player, the Crédit Agricole Group adopts a fair climate transition
approach that preserves social and territorial cohesion. This
approach is based on three priorities: acting for climate,
strengthening social cohesion, in particular by acting for equal
access to healthcare, and ensuring the success of the agricultural
and agri-food transitions.
For climate, the Group’s action is consistent
with its contribution to global carbon neutrality by 2050. End
2021, Crédit Agricole initiated a major methodological project to
define decarbonisation trajectories for ten economic sectors
financed by the bank, applicable to each business line and each
entity. These ten sectors account for 75% of global carbon
emissions and 60% of the Group’s credit exposure. This work is
based on the International Energy Agency’s Net Zero Emissions
scenario and follows the Glasgow Financial Alliance principles to
chart a progressive withdrawal from the highest CO2-emitting
assets. The path is complex. It requires enhanced customer dialogue
to facilitate decarbonisation of the economy while avoiding social
shock.
Crédit Agricole Group has already mapped out its
gradual withdrawal from the oil and gas sector by setting a target
of decreasing sector-financing-related CO2 emissions by 30% in
absolute value between 2020 and 2030. We are also committed to
supporting the decarbonisation of the automotive sector by reducing
the carbon intensity of our sector portfolio by 50% over the same
period (Crédit Agricole CIB, Crédit Agricole Consumer Finance and
Crédit Agricole Leasing & Factoring France portfolios).
The target for the reduction of our own carbon
footprint, scope 1 and 2 (energy, fleet and business travel) is
also set at a minimum of 50% by 2030.
The sectoral trajectories that we will continue
to define and publish in 2022 and 2023 will be accompanied by
action plans to ensure their implementation. For the oil and gas
sector, the action plan will include the adoption of a new policy
in line with the recommendations of the Glasgow Financial Alliance
for Net Zero.
At the same time, Crédit Agricole is
accelerating its support for renewable energies by targeting 60%
growth in CACIB’s exposure to low-carbon energies by 2025 and the
achievement of 14 GW of installed capacity via Crédit Agricole
Assurances’ investments in 2025.
To go further, the Group is structuring itself
and launching two new business lines:
- Crédit
Agricole Transitions & Energies, to make energy transitions
accessible to all,
- Crédit
Agricole Santé & Territoires to facilitate access to healthcare
and ageing services.
Non-compliance with these ESG commitments may
cause damage to Crédit Agricole S.A.’s reputation, which could lead
to a negative impact on its business.
More generally, the 2025 Medium-Term Plan
success relies on a number of initiatives of different importance,
to be rolled out in different Crédit Agricole Group entities.
Though a big part of the 2025 Medium-Term Plan targets may be
achieved, it is not possible to predict which ones will be achieved
and which ones will not. The 2025 Medium-Term Plan also plans for
significant investments, which return may be below projections if
the 2025 Medium-Term Plan targets are not achieved at the end.
Thus, if Crédit Agricole S.A. is not in capacity to achieve the
2025 Medium-Term Plan targets (either totally or partially), its
financial position and its performance could be significantly
impacted in an adverse manner.
The Crédit Agricole Group may not achieve the
targets set out in the 2025 Medium-Term Plan
On 22 June 2022, Crédit Agricole S.A.
announced its 2025 Medium-Term Plan (the “2025 Medium-Term
Plan”). The 2025 Medium-Term Plan relies on the strength
of the Crédit Agricole Group business model, based on the
comprehensive and sustainable relationship for all clients, all
regions and all channels. This development also leverage on
business lines that have their own development dynamics and have
become leaders and consolidators on their respective markets. The
2025 Medium-Term Plan also relies on the organic growth strategy of
Crédit Agricole Group. The Group targets 1 million additional
customers in retail banking by 2025 and aims at increasing the
customer equipment in P&C insurance savings solutions and real
estate. It has the ambition of widening and adapting its offer
range (more accessible, more responsible and more digital) so as to
answer new customer needs. In addition, the partnership and
targeted acquisition strategy will be continued, with compliance to
the profitability criteria (ROI > 10% by 3 years). Crédit
Agricole S.A. targets new distribution partnerships with financial
players as well as industrial and technological partnerships. In
the 2025 Medium-Term Plan, Crédit Agricole S.A. aims at developing
its worldwide business lines, increasing the pace of its growth on
transversal businesses such as payments, real estate, digital
banking and technology-as-a-service, and accelerating its
technological, digital and human transformation. The 2025
Medium-Term Plan includes a number of financial targets, notably on
the cost to income ratio, the net income, the return on equity,
capital adequacy ratios and liquidity.. These financial targets
were established primarily for purposes of internal planning and
allocation of resources, and are based on a number of assumptions
with regard to the economic climate and the activity of the
business lines of the Crédit Agricole Group. The financial targets
do not constitute projections or forecasts of anticipated results.
The actual results of Crédit Agricole Group are likely to vary (and
could vary significantly) from these targets for a number of
reasons, including the materialisation of one or more of the risk
factors described elsewhere in this section. For example,
Crédit Agricole Group expects to post by 2025 a CET1 ratio above or
equal to 17% and a TLAC ratio above or equal to 26% (without any
eligible senior preferred debt). In addition, the Stable Resources
Position Target set in the 2025 Medium-Term Plan between €110 and
130 billion would allow to meet comfortably the regulatory
requirement in relation to long term liquidity structural ratio
(Net Stable Funding Ratio or NSFR)
In addition, as a responsible and committed
player, the Crédit Agricole Group adopts a fair climate transition
approach that preserves social and territorial cohesion. This
approach is based on three priorities: acting for climate,
strengthening social cohesion, in particular by acting for equal
access to healthcare, and ensuring the success of the agricultural
and agri-food transitions.
For climate, the Group’s action is consistent
with its contribution to global carbon neutrality by 2050. End
2021, Crédit Agricole initiated a major methodological project to
define decarbonisation trajectories for ten economic sectors
financed by the bank, applicable to each business line and each
entity. These ten sectors account for 75% of global carbon
emissions and 60% of the Group’s credit exposure. This work is
based on the International Energy Agency’s Net Zero Emissions
scenario and follows the Glasgow Financial Alliance principles to
chart a progressive withdrawal from the highest CO2-emitting
assets. The path is complex. It requires enhanced customer dialogue
to facilitate decarbonisation of the economy while avoiding social
shock.
Crédit Agricole Group has already mapped out its
gradual withdrawal from the oil and gas sector by setting a target
of decreasing sector-financing-related CO2 emissions by 30% in
absolute value between 2020 and 2030. We are also committed to
supporting the decarbonisation of the automotive sector by reducing
the carbon intensity of our sector portfolio by 50% over the same
period (Crédit Agricole CIB, Crédit Agricole Consumer Finance and
Crédit Agricole Leasing & Factoring France portfolios).
The target for the reduction of our own carbon
footprint, scope 1 and 2 (energy, fleet and business travel) is
also set at a minimum of 50% by 2030.
The sectoral trajectories that we will continue
to define and publish in 2022 and 2023 will be accompanied by
action plans to ensure their implementation. For the oil and gas
sector, the action plan will include the adoption of a new policy
in line with the recommendations of the Glasgow Financial Alliance
for Net Zero.
At the same time, Crédit Agricole is
accelerating its support for renewable energies by targeting 60%
growth in CACIB’s exposure to low-carbon energies by 2025 and the
achievement of 14 GW of installed capacity via Crédit Agricole
Assurances’ investments in 2025.
To go further, the Group is structuring itself
and launching two new business lines:
- Crédit
Agricole Transitions & Energies, to make energy transitions
accessible to all,
- Crédit
Agricole Santé & Territoires to facilitate access to healthcare
and ageing services.
Non-compliance with these ESG commitments may
cause damage to Crédit Agricole Group reputation, which may lead to
a negative impact on its business.
More generally, the 2025 Medium-Term Plan
success relies on a number of initiatives of different importance,
to be rolled out in different Crédit Agricole Group entities.
Though a big part of the 2025 Medium-Term Plan targets may be
achieved, it is not possible to predict which ones will be achieved
and which ones will not. The 2025 Medium-Term Plan also plans for
significant investments, which return may be below projections if
the 2025 Medium-Term Plan targets are not achieved at the end.
Thus, if Crédit Agricole Group is not in capacity to achieve the
2025 Medium-Term Plan targets (either totally or partially), its
financial position and its performance could be significantly
impacted in an adverse manner.
DISCLAIMER
In this press release, “Credit Agricole Group”
is defined as the whole made up of Credit Agricole S.A. (the parent
company and listed company), and its direct and indirect
consolidated subsidiaries according to the meaning of Article L.
233-3. of the French Commercial Code (Code de Commerce), the
Caisses Régionales de Crédit Agricole Mutuel, the Caisses Locales
de Crédit Agricole and their respective direct and indirect
subsidiaries.
This press release may include prospective
information and considerations on Crédit Agricole S.A. and the
Crédit Agricole Group related to trends.
The information and considerations include
financial projections, the underlying considerations and
assumptions on which these projections are based, statements on
projects, targets and expectations regarding future transactions,
products and services, as well as considerations on future
performance. 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 and uncertainties that are
difficult to predict and that could cause the actual results to
differ substantially from those presented, implied or arising from
the prospective information and considerations mentioned. 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.
CREDIT AGRICOLE S.A. PRESS
CONTACTS:
Charlotte de
Chavagnac Olivier
Tassain Mathilde
Durand |
+ 33 1 57 72 11 17
+ 33 1 43 23 25 41 + 33 1 57 72 19 43 |
charlotte.dechavagnac@credit-agricole-sa.frolivier.tassain@credit-agricole-sa.frmathilde.durand@credit-agricole-sa.fr |
CREDIT AGRICOLE S.A. INVESTOR RELATIONS
CONTACTS:Institutional Investors + 33 1 43 23 04
31 investor.relations@credit-agricole-sa.frIndividual shareholders
+ 33 800 000 777
relation@actionnaires.credit-agricole.com (toll free number France
only)
Clotilde L’Angevin + 33 1 43 23 32 45
clotilde.langevin@credit-agricole-sa.frFethi
Azzoug + 33 1 57 72 03 75
fethi.azzoug@credit-agricole-sa.frOriane
Cante +
33 1 43 23 03
07 oriane.cante@credit-agricole-sa.frNicolas
Ianna +
33 1 43 23 55
51 nicolas.ianna@credit-agricole-sa.frLeïla
Mamou +
33 1 57 72 07
93 leila.mamou@credit-agricole-sa.frAnna
Pigoulevski +
33 1 43 23 40
59 anna.pigoulevski@credit-agricole-sa.frAnnabelle
Wiriath +
33 1 43 23 55
52 annabelle.wiriath@credit-agricole-sa.fr
Read all our press releases at: www.credit-agricole.com -
www.creditagricole.info
1 This press release cancels and replaces the
press release entitled "Amendment to the risk factors of the
Universal registration Document of Crédit Agricole S.A" published
by Crédit Agricole S.A. on 23 June 2022. The risk factors in Crédit
Agricole S.A.'s Universal Registration Document are not modified by
this press release, which is intended to draw investors' attention
to new risk factors following the announcement by Crédit Agricole
S.A. of its new Medium term Plan “2025 Ambitions” on 22 June 2022.
The text of the risk factors remains unchanged.
- CP_FDR PMT Ambitions 2025_EN
Credit Agricole (BIT:1ACA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Credit Agricole (BIT:1ACA)
Historical Stock Chart
From Sep 2023 to Sep 2024