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Financial results of Credit Agricole Bank for the first quarter of 2020

06 May 2020

In 1Q-20 Credit Agricole Bank generated 386 MUAH * of Net Result even though global crisis and quarantine restrictions, which led to market volatility and economic slowdown

«2020 started with one of the biggest challenges the world faced since decades, COVID-19 deeply affected the society and, consequently, the business. In this context, Crédit Agricole Bank, thanks to sound fundamentals and excellent team, confirmed to be a reliable partner for all our customers, providers and society. Of course, we revised and updated our approaches within a changing COVID-context, especially greatly enhanced digitalization and remote working. Credit Agricole Bank introduced a number of solutions to support customers and decrease the tense on their budgets. Bank keeps financing corporate clients with a focus on agribusiness and retail customers, especially in car loans segment. Banks does charity to fight COVID by equipping hospitals in Kyiv and regions. We continue to follow our mission: working every day for our customers and society!» - Giorgio Sopranzi, Member of the Management Board, Financial Director of Crédit Agricole Bank commented.

Crédit Agricole Bank continued supporting the development of Ukrainian economy. Loan portfolio (net of provisions) increased by +6% or +UAH 1.4 billion in comparison with the 1Q-19. Level of loan portfolio quality remain stable high: The asset quality remains a profile of excellence for CA Ukraine: NPL ratio is one of the lowest among banks in Ukraine (5%) and the coverage ratio remains extremely prudent (97%).

Bank's deposits portfolio showed a significant growth by +24% in comparison with end of March 2019 to UAH 36.1 billion at the end of March 2020. All business lines, but mainly corporate clients, drove that growth. In such challenging situation, that fact confirmed customer satisfaction & confidence to Bank. Thanks to the appreciation of its customers, CA Ukraine confirm its sound liquidity position, both in hryvnia and in foreign currency.

Despite the strong evolution of Assets, the prudent strategy adopted allowed the Bank to maintain its solid capital position. Capital adequacy remain on high level (N2) of 19.85%, almost 2 times the regulatory minimal level (10%).

Despite the deterioration in the context and narrower margins (in the last 12 months the NBU K-rate decreased from 17.5% to 8.0%), in first quarter 2020 Crédit Agricole Bank reaffirmed as one of the most efficient and profitable Banks in Ukraine.

Net banking Income is UAH 897 million, almost in line with the same period of last year. Interest Income continued to be the major share in NBI structure (68%).

Quarantine-related restrictions affected banking sector & led to lower Bank’s Commission income by -15% in comparison with the end of March 2019, which Bank managed to cover with other NBI, mainly trading results due to higher volatility on the market. Cost/Income remains on excellence level (49,1%, without COVID-19 charges).

Operating expenses of the bank increased in comparison with end of March 2019 by +17% mainly on staff charges (labor market pressure continues). Growth of other expenses by +UAH 20 million or +14% reflect the to the significant investment plan in the scope of Medium-Term Plan 2022 aiming to bank’s transformation and development, also burdened by the COVID related needs.

COVID-risks had also a negative impact in terms of additional provisions. Nevertheless, Cost of risk remained positive in 2020 (+6 million as of 1Q-20 vs +14 million as of 1Q-19), thanks to successful NPL management and prudent risk policy.

Net profit for 1Q-20 was +UAH 386 million for an annualized RONE of 45.8% (which is -12% or -UAH 54 million below the 2019 due to extraordinary COVID-aspect).


Annex 1
Summary Income Statement *
(UAH million)

ItemQ1-19Q1-20Q1-20 VS Q1-19
Net Banking Income

903

897

-6

-1%

NII

605

611

5

1%

Commissions

206

174

-32

-15%

Other NBI

91

112

21

23%

Operating Expanses

-380

-445

-65

17%

Staff charges

-230

-274

-44

19%

Other expenses

-150

-170

-20

14%

Gross Operating Income

523

453

-70

-13%

Cost of Risk

14

6

-8

-59%

Results before taxes

537

458

-79

-15%

Taxes

-97

-72

24

-25%

Net Results

440

386

-54

-12%


Annex 2
Short Balance Sheet *
(UAH million)

ItemMar-19Mar-20Mar-20 VS Mar-19
Assets




Cash and cash equivalents

6,961

10,343

3,382

49%

Due from other banks and the NBU

1,094

3,780

2,686

246%

Securities and investments

1,219

1,448

229

19%

Gross Loan and advances to customers

27,043

28,239

1,197

4%

Corporate loans

23,076

23,281

204

1%

Private individuals loans

3,966

4,959

992

25%

Provisions

-2,253

-2,000

253

-11%

Loans net of provisions

24,790

26,239

1,449

6%

Other assets

1,046

1,356

309

30%

Total assets

35,110

43,166

8,056

23%

Liabilities

 

 

 

 

Due to other banks

7

7

1

7%

Customer deposits

29,125

36,074

6,949

24%

Corporate deposits

22,136

27,539

5,403

24%

Private individuals deposits

6,989

8,535

1,546

22%

Other liabilities

534

802

268

50%

Subordinated debt

788

810

22

3%

Total liabilities

30,454

37,694

7,240

24%

Equity

4,656

5,472

816

18%

Total equity and liabilities 

35,110

43,166

8,056

23%

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: Viktoriia.TORIANYK@credit-agricole.ua


* 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.

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