Credit Agricole Targets One Million New Customers, Net Income Boost With 2025 Strategy -- Update
June 22 2022 - 2:31AM
Dow Jones News
By Ed Frankl
Credit Agricole SA said Wednesday that it aims to take on one
million additional customers, boost its net income and add two new
business lines and as part of a new strategic plan to 2025.
The French lender said it will target one million additional
retail-banking customers alongside yearly net income of 6 billion
euros ($6.32 billion), based on strong organic-growth potential and
increased offering in protection insurance, savings solutions and
real estate.
In addition, the Paris-based company will target an average
annual revenue growth rate of around 3.5% between 2021 and 2025,
with a return on tangible equity--ROTE--of more than 12%.
It comes despite what its Chairman Dominique Lefebvre called a
current "opaque short-term environment."
"The 'medium term' is no longer observable. It has made way for
a 'short-term' horizon that is particularly opaque under the
combined effects of multiple crises," the company said in its
strategy presentation.
As part of its previous plan to 2022, which it achieved a year
early, Credit Agricole targeted net income of more than EUR5
billion and ROTE of more than 11%.
It said it would continue to aim for a dividend payout rate of
50% in cash, and target a common equity Tier 1 ratio--a measure of
financial strength--of 11%, from more than 11% under 2022
targets.
The bank will also launch two new business lines--one to focus
on renewable energy and another directed at healthcare.
"It is now easier to think long-term than it is to predict the
short-term," Chief Executive Philippe Brassac said.
"By creating two new business lines to make energy transition
accessible to all, and to facilitate access to care and aging
services, we are extending our mission as shapers of the future,"
he added.
The company said it will continue its targeted acquisitions
strategy, while keeping to its profitability constraints of more
than 10% in return on investment.
In an effort to keep up with the digital transformation, Credit
Agricole said it would allocate around EUR20 billion to IT and
digital spending over the period.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
June 22, 2022 02:16 ET (06:16 GMT)
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