Financial results of Credit Agricole Bank for the first quarter of 2021

As of Q1-21, Credit Agricole Bank reported positive Net Result of 340 mUAH, confirming high level of profitability and resilience of its business model.

“Despite some stop&go related to local lock down, the recovery of Ukrainian economy continued during the first quarter of the year and Credit Agricole Bank was ready to support its clients and the country in this positive trend with specific products (with cheap funding in the scope of program “Affordable loans 5-7-9%”) and new digital features (the new mobile application CA+  reached around 100 thousands clients in first quarter).”- Giorgio Sopranzi, Financial Director of Crédit Agricole Bank commented.

The beginning of 2021 has been marked with the 2020 similar COVID-challenges & macroeconomic instability: permanent national quarantine & few lockdowns (in Jan & March), inflation intensification and consequent key policy rate increase. In such circumstances, Credit Agricole Bank maintained the average loan portfolio at the level of Dec-20 (end of period figures, -11% vs Dec-20, are influenced by some early repayment from primary clients, due to VAT reimbursement by the Government) and increased significantly compared to march 2020 (+21% on average UAH loan). Credit Agricole Bank has been able to support its customers and Ukrainian economy to recover after the crisis thanks to its sound capital and liquidity position (Capital adequacy – N2 – remains at a high level of 19.7%, 2X more the regulatory minimal level and significant excess of liquidity – LCR at 219% vs 100% minimum). The last one based on strongly Deposits base, which demonstrated increase since Dec-20 by +578 mUAH to 43.3 bUAH. Both corporate customers and private individuals continue to drive this development, confirming the preference to Crédit Agricole Bank as an international reliable partner.

As of Q1-21 Crédit Agricole Bank reported 340 mUAH of Net Result for a Return on Equity of 24%. Net of the not recurrent FX revenues reported during the 1Q20, the net result is at the same level of the first 3 months 2020.

Net banking Income is 0.9 bUAH which is globally in line with Q1-20 (-1%), when the volatility on the market lead to significant non-recurrent FX profits: net of this not ordinary item, the comparison with 1^st quarter 2020 is positive for +4%.

• Net interest income, notwithstanding the narrowing in margins, is higher Q1-20 by +7%, thanks to the development of UAH loan volumes, both corporate and retail side, and repricing of liabilities.
• Commission income increase of +2% on YoY basis was driven by the recovery of retail activity starting from the last part of 2020.

Operating expenses slightly increased vs Q1-20 by +3% or +12 mUAH on additional COVID-related expenses and investments in the scope of 2019-2022 MTP Plan, never stopped even during the crisis: this strategy lead, for example, to the great success of the new mobile application CA+ (which in just 9 months reached more than 100 thousands users and it’s Top 3 in market rating).

In Q1-21 Crédit Agricole Bank spent 4.3 mUAH costs for remote working & medical protection in offices and branches for staff and customers. It worth to mention, that despite the context, in order to support its employees Crédit Agricole Bank made a decision to pay staff bonuses on 2020.

Credit Agricole Bank maintained a very prudent approach in provisioning, taking into account the macro-economic context (19 bps or 12 Millions UAH). NPL ratio remains one of the lowest among banks in Ukraine (2.3%).

Annex 1
Summary Income Statement
(UAH million)

Annex 2
Short Balance Sheet
(UAH million)

* Credit Agricole Bank’s Interim Financial Statements are elaborated according to IFRS. Additionally, the detailed quarterly financial statements will be published on the bank's website.

About Credit Agricole:

JSC «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 ban 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 premium-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 280 000 active private and 17 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business. Credit Agricole Bank is a socially responsible bank that confirms its status by the large number of projects implemented under the Corporate Social Responsibility program «We Care!». 

Contacts:

PR and corporate communications division of Credit Agricole Bank.

E-mail: Communications@credit-agricole.ua