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2017 – a record year for Credit Agricole Bank

15 February 2018

Credit Agricole Bank achieved a record Net result of 1110 MUAH in 2017, an increase by 302 MUAH or +37% as compared to 2016[1]. 

"Credit Agricole Bank achieved a very good financial year with a record net result of 1 110 MUAH. But beyond the excellent financial results, I would like to stress the improvement of the contribution of the bank to Ukrainian economy with a growth of its loan portfolio by 25% in 2017 after +12% in 2016. Such a growth paves also the way for an increase of the NBI of the bank in 2018" Régis Lefèvre, Member of the Management Board, Financial Director of Credit Agricole Bank commented.

This result has been achieved through a diversification of its main sources of revenues and a reduction of Cost of Risk. NBI decreased by 86 MUAH or -3% in 2017 vs 2016 due to shrinking of FX spreads and less FX Forwards with customers. Decrease of NBI was largely offset by an improvement of cost of risk that decreased by -68% or 594 MUAH in comparison with the 2016. This confirms overall improving trend of the economic situation in Ukraine and the quality of credit risk monitoring system of Credit Agricole Bank. 

Credit Agricole Bank continues to diversify its loan portfolio and invest in the Ukrainian economy by attracting new clients from the Corporate, SME and Retail sectors. During 2017 loan portfolio (net of provisions) increased by +25% or by 3.9 billion UAH. Gross loans to legal entities increased by +8%. Gross loans to private individuals increased by +44% as compared to the last year, evidencing the will of CAU to reinforce its lending to Ukrainian economy and to contribute to its development.

Short overview of Credit Agricole Bank’s Income Statement:

  • Net Banking Income (NBI) amounted to 2.8 billion UAH in 2017 (-3% vs 2016). Increase of outstanding almost balanced the negative interest rate trend and the decrease of FX spreads.
  • Net Interest Income (NII) increased by +1% in 2017. Development of loans volumes allowed offsetting the overall decrease of interest rate and credit spreads.
  • Net Commissions increased by 96 MUAH or by +16% in 2017 as compared to 2016 due mainly to Private individuals activity (Insurance, Cards and Service commissions).
  • Other NBI decreased by 207 MUAH or -51% over 2017 in comparison with 2016, evidencing the lower volatility and the stabilization of the foreign exchange market, which in turn led to a reduction of FX spreads and a lower appetite of customers to engage FX Forwards operations.
  • Operating expenses increased by +15% or 154 MUAH compared to 2016. Staff costs increased by 110 MUAH or +19%. Growth of other expenses of 44 MUAH or +10% was mainly due to an increase in depreciation, reflecting the continuous investment of the bank in its infrastructure and in the transformation of processes towards digitalization.
  • Decrease in Cost of risk by 594 MUAH or -68% in 2017 vs 2016 reflects the improvement of the environment and a better management of bad debts. In this respect, CAU reduced significantly its bad loans portfolio in 2017, which the evolution of provisions reflects: -42% vs end 2016. Credit Agricole Bank maintained its cautious provisioning policy, reflected by the increase of the coverage ratio of non-performing loans by 6.2 % from 89.8% to 96.0% (Dec 17 vs Dec16)

[1] CAU’s preliminary financial statements are subject to audit by external auditors and approval by its Supervisory Board. An Annual auditor's report will also be published on CAU’s website within regulatory required deadline

 Other significant information on Credit Agricole Bank’s financials:

  • Total assets increased by 1 billion UAH in comparison with the last year to 30.9 billion UAH, which indicates a steady development of business volumes.
  • Cash and cash equivalents decreased by 1.8 billion UAH down to 8.7 billion UAH as a result of the reallocation of extra liquidity to more profitable assets: NBU certificates of deposit, government bonds and customers loans. Credit Agricole Bank has a strong liquidity position and does not require any additional external funding.
  • Gross Loans and advances to customers increased by 13%. Loans granted to legal entities increased by +8% compared to the last year, while loans to private individuals increased by +44%.
  • Customer deposits increased by +3%: Corporate deposits +1% or 266 MUAH, Private individuals’ deposits +10% or 588 MUAH.
  • Capital adequacy ratio H2 is 19.14% (mandatory level is 10%) despite a partial repayment by anticipation of subordinated debt. Shareholders reinvested in the bank in 2017 485 MUAH of 2016 profit

Annex 1

Short Income Statement

(UAH million)

Item

2016

2017

2017 vs 2016

Net Banking Income

2 877

2 791

-86

-3%

NII

1 863

1 888

26

1%

Commissions 

610

706

96

16%

Other NBI

404

197

-207

-51%

Operating Expenses 

-1 010

-1 163

-154

15%

Staff charges

-565

-675

-110

19%

Other expenses 

-444

-488

-44

10%

Gross Operating Income

1 867

1 628

-240

-13%

Cost of Risk

-869

-275

594

-68%

Result before taxes

998

1 352

354

35%

Taxes

-190

-243

-52

28%

Net Result

808

1 110

302

37%

 Annex 2 

Short Balance Sheet

(UAH million)

Item

Dec-2016

Dec-2017

Dec-2017 vs Dec-2016

Assets




Cash and cash equivalents

10 538

8 709

-1 829

-17%

Due from other banks and the NBU

2 604

1 109

-1 495

-57%

Gross Loans and advances to customers

19 041

21 440

2 398

13%

Corporate loans

16 851

18 277

1 426

8%

Private individuals loans

2 190

3 162

972

44%

Provisions

-3 536

-2 046

1 489

-42%

Other assets

1 249

1 734

485

39%

Total assets

29 895

30 945

1 050

4%

Liabilities




Due to other banks

392

14

-377

-96%

Customer deposits

25 210

26 064

854

3%

Corporate deposits

19 045

19 310

266

1%

Private individuals deposits

6 166

6 754

588

10%

Other liabilities

448

526

78

17%

Subordinated debts

1 370

1 077

-293

-21%

Total liabilities

27 420

27 681

261

1%

Equity

2 476

3 264

788

32%

Total equity and liabilities

29 895

30 945

1 050

4%

About Credit Agricole:

PJSC «CREDIT AGRICOLE BANK» is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of bank insurance and third - in project financing in Europe. Credit Agricole has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including VIP clients, and business. The Bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of CREDIT AGRICOLE in Ukraine is confirmed by the highest possible FITCH ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 300 000 active private and 18 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business. 

Contacts:

Viktoriia Torianyk, Head of PR and corporate communications Credit Agricole Bank.

Phone: +38 044 581 07 45, e-mail: Viktoriia.Torianyk@credit-agricole.ua

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