Financial results Credit Agricole Group for the the second quarter and first half of 2023

Strong momentum in the entire range of customer needs

Thanks to the renewed potential of its model to produce continuous organic growth, the Group is enjoying commercial momentum across all of its business lines. In the second quarter, the retail banks added 471,000 new customers, of which 100,000 were outside France (Italy and Poland). The equipment rate for property and casualty insurance continued to improve, reaching 42.8% for the Regional Banks (+0.5 pts), 27.4% for LCL (+0.5 pts) and 17.9% for CA Italia (+2.3 pts).

Despite high inflation and interest rates, consumer finance production was up by 9%, driven by a 30% increase in the automotive channel. Amid uncertainty and volatility on the financial markets and greater risk aversion among investors, the asset management business garnered inflows of €3.7 billion. Lastly, Corporate and Investment Banking structured loans were up by 20.4% compared with the second quarter of the previous year.

This commercial momentum means the Group’s revenues continue to rise, reaching a record €9.16 billion in the second quarter for Crédit Agricole Group (+9.5%) and €6.33 billion for Crédit Agricole S.A. (+15.6%).

A model that is fully able to absorb the consequences of less favourable environments

Since it is rooted in the real economy, the Group is suffering the consequences of an inflationary environment in which interest rates are rising sharply. Tighter monetary policy is weighing on demand and therefore on loan production in retail banking.  Fixed-rate loans transfer the interest rate risk from the customer to the banks. This naturally and temporarily impacts the net intermediation margin in a context of rapidly changing rates. The cost of risk is also rising, albeit staying below the assumption made in Crédit Agricole S.A.’s 2025 Ambitions strategic plan.

Testament to the model’s ability to absorb the fluctuations of more restrictive environments, the Group has published top-tier results. In the second quarter of 2023, Crédit Agricole Group’s reported net income Group share reached €2.48 billion, up by +2.1% compared with the second quarter of 2022, while the same figure for Crédit Agricole S.A. climbed by +24.7% to a record €2.04 billion.

Still very high capital and liquidity positions

At 30 June, the Group’s solvency was among the best in Europe for the sector, well above regulatory requirements, with a phased-in Common Equity Tier 1 (CET1) ratio of 17.6%, unchanged since the end of March 2023. Additionally, Crédit Agricole Group’s NPL ratio was low at 2.1%. The NPL coverage ratio of 83.6% is among the best in Europe.

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

Various measures were swiftly taken throughout the quarter to speed up the claim filing and compensation process, and to support customers affected by the French riots. It was also made possible to defer maturities and, exceptionally, to cancel the deductible.

In the second quarter, the Group strengthened its position in Mobility with the successful launch of the multibrand operating lease business Leasys – a joint venture between Stellantis and CA CF – and of Crédit Agricole Auto Bank (created from the purchase of 100% of FCA Bank).

On 1 July, with a view to defining, promoting, managing and coordinating its environmental and social initiatives, and encouraging a responsible and sustainable approach across all its businesses and stakeholder relations, the Group set up a Societal Commitment Division at the highest level of governance within Crédit Agricole S.A.

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