Credit Agricole Group’s financial results for the fourth quarter and full year 2023

Excellent results for the Group’s universal banking model

The Group published excellent financial results for the full year and fourth quarter of 2023, although naturally these were impacted by weather-related claims. The results are testament to the usefulness and strength of the Group’s universal banking development model.

Crédit Agricole Group’s reported net income Group share reached €8.26 billion, up by +3.3% compared with 2022, while the same figure for Crédit Agricole S.A. climbed by +19.6% to a record €6.35 billion.

Underlying revenues continued to rise steadily in 2023, reaching €35.64 billion for Crédit Agricole Group (+3.8%) and a record €24.56 billion for Crédit Agricole S.A. (+9.5%).

This strong performance is reflected in the dividend that will be proposed to the General Meeting on 22 May: the figure of €1.05/share has increased threefold in nine years.

Growth across all activities

The Group secured 1.9 million new retail banking customers in 2023 thanks to the combined effect of ongoing customer acquisition momentum and new offers.

The year saw robust activity across all business lines. In asset management, meanwhile, there were strong inflows of €26 billion in 2023, taking assets under management to more than €2,000 billion. A favourable market environment also saw the share of unit-linked contracts climb by 4.7 points compared with 2022 to 45.9% of gross insurance inflows. The property and casualty insurance business grew by 9.1% compared with 2022.

In Italy, Crédit Agricole Italy topped the universal banking net promoter score rankings. The bank won 175,000 new customers in 2023 and its outstanding loans rose by 2.8% to €61.1 billion.

Crédit Agricole Consumer Finance’s proactive mobility strategy enabled the threshold of 1 million financed vehicles in Europe to be crossed.

Market-leading business lines

As a complement to its organic growth, the Group is enjoying external growth in its business lines.

In 2023, the growth in Crédit Agricole S.A.’s business lines was founded on six pillars:

• Scaling up of Private Banking and Asset Servicing: agreement to purchase a majority stake in Degroof Petercam; acquisition of the European operations of RBC Investor Services.
• Development of a comprehensive mobility offer: creation of Leasys joint venture with Stellantis; 100% takeover of CA Auto Bank; acquisition of six European subsidiaries of ALD and LeasePlan; creation of CA Mobility Services.
• Extension of insurance distribution through new commercial partnerships: a non-life and credit insurance distribution agreement in Italy between Crédit Agricole Assurances and Banco BPM; partnership between Pacifica and Renault.
• Structuring of property services: acquisition of Casino’s property management activities.
• Accelerating digitalisation and innovation: Crédit Agricole S.A.’s acquisition of a stake in Worklife, for payment services; partnership with Wordline (offers for retail traders).
• Support for the societal transitions via the launch of the two new business lines Crédit Agricole Transitions & Énergies and Crédit Agricole Santé & Territoires (Healthcare and Regions): Crédit Agricole S.A.’s acquisition of a 40% stake in R3 (energy transition consultancy) and a 43% stake in Selfee (energy producer and provider), and Crédit Agricole Assurances’ acquisition of a 93% stake in Omedys and an 86% stake in Medicalib.

Still very high capital and liquidity positions

At 31 December, the phased-in Common Equity Tier 1 (CET1) ratio of Crédit Agricole Group was stable at 17.5%, one of the best percentages in Europe for the sector, well above regulatory requirements. The Group’s liquidity reserves totalled €445 billion.

A protective model for customers

The Group is the leading home lender in France (one in three home loans) and remains committed to facilitating access to home ownership. In 2023, outstanding property loans increased by 2.5% to €497 billion and the retail banks financed the purchase of 244,000 primary residences. Enhanced interest-free loan schemes were set up by the Regional Banks and LCL.

Amid high levels of inflation, the Group is helping people in France to make precautionary savings, with interest paid on regulated savings up sharply (compared with 2022: livret A and livret de développement durable (LDD) interest payments +140% to €4,023 million and livret d’épargne populaire (LEP) interest payments +167%).

Crédit Agricole came to the assistance of claimants who were affected by record temperatures and large-scale weather events in 2023. 66,000 policyholders received a payout, particularly in the wake of the fourth-quarter storms and floods.

A model that supports social change: Three-quarters of the results are retained and reinvested in the economy

In 2023, the Group acted in support of the agri-food transitions by launching four structured investment and financing instruments worth €680 million.

At the end of the year, as a follow-up to COP28, the Group stepped up its climate strategy and chose to:

• focus its financial resources on low-carbon energies;
• stop all financing of new fossil fuel extraction projects and adopt a selective approach to the financing of energy providers;
• cut financed emissions in the Oil & Gas sector by -75% by 2030 (vs 2020) versus -30% announced in 2022.

More details here.