Credit Agricole Group financial results for the third quarter and 9 months of 2023

Credit Agricole Group published good financial results for the third quarter and for the first nine months of 2023, an embodiment of the constant expansion of its model. The quarterly underlying revenues continued to rise, reaching a record €8.85 billion for Crédit Agricole Group (+7.3%) and €6.06 billion for Crédit Agricole S.A. (+13.4%) in the third quarter of 2023.

Crédit Agricole Group’s reported net income Group share reached €2.38 billion, up by +21% compared with the third quarter of 2022, while the same figure for Crédit Agricole S.A. climbed by +32.8% to €1.75 billion.

Sustained activity

In the third quarter, the Group’s retail banks added 445,000 new customers, of which 92,000 were outside France (Italy and Poland). The equipment rate for property and casualty insurance continued to improve, reaching 43.1% for the Regional Banks (+0.5 pts), 27.6% for LCL (+0.5 pts) and 18.3% for CA Italia (+2.2 pts). Death and disability insurance also had strong momentum, with a rise in premium income of +10.9% compared to the third quarter of 2022. In addition, unit-linked contracts account for over 40% in gross inflows in life insurance.

Car loan production maintained its strong momentum, with a +6.7% increase compared to the third quarter of 2022.

Asset management inflows amounted to €13.7 billion, with a positive contribution from all asset classes (medium-/long-term assets, and cash).

Corporate and investment banking posted record quarterly highs driven in particular by the excellent performance of fixed-income activity, which benefited from the backdrop of rising interest rates and for which revenues increased by +25.6%.

Market-leading business lines

The Group relies not only on its organic growth potential but also on the development of its business lines through acquisitions and partnerships. The Specialised Financial Services division developed a comprehensive mobility offering: the joint venture Leasys, created with Stellantis to become the European leader in long-term car rental; the acquisition of 100% of CA Auto Bank, in order to develop partnerships with manufacturers and independent distributors; and the acquisition of six European subsidiaries of ALD and LeasePlan.

At the same time, the insurance business line extended its distribution network through new commercial partnerships: a non-life and credit insurance distribution agreement in Italy between Crédit Agricole Assurances and Banco BPM and a partnership between Pacifica and Renault in car insurance.

Lastly, Crédit Agricole S.A. is structuring its property services operations via the acquisition of Casino’s property management activities, and is stepping up its digitalisation and innovation thanks to its acquisition of a stake in Worklife^[1] and, in payments, its partnership with Wordline^[2].

Still very high capital and liquidity positions

At 30 September, the phased-in Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group was 17.5%, one of the best percentages in Europe for the sector, well above regulatory requirements. The Group’s liquidity reserves totalled €419 billion.

Continual mobilisation in the interest of customers and society as a whole

The Group is the leading home lender in France (one in three home loans) and remains committed to access to home financing, offering interest-free loan supplements.

Launched in June 2022, Crédit Agricole Transitions & Énergies (CATE) unveiled its roadmap and its first achievements in October. It provides a global offering covering transition advisory services, to support customers as they implement their energy and environmental sobriety processes, and the development of renewable energy in the regions through project financing.

CATE will produce and supply renewable electricity and has ambitious targets in this regard (2 GW of production capacity by 2028, 500 MWh of low-carbon electricity supply by 2026). This offering is delivered by Selfee^[3], in which CATE is the reference shareholder.

More details here https://pressroom.credit-agricole.com/news/results-for-the-third-quarter-and-first-nine-months-2023-6cf6-94727.html

[1] Employee benefits management tool
[2] Creation of a joint venture to develop innovative commercial offerings
[3] Selfee is an electricity market operator that enables the purchase via local supply chains, at a local price, of electricity generated in the territory, as the only intermediary of the energy producer.