Financial results Crédit Agricole Ukraine for the first half of 2024

First half 2024 Net result of Credit Agricole Ukraine is UAH 3.6 billion. Bank continues demonstrating stable results, thanks to combination of customer’s trust and adherence to the chosen strategy

In July 2024, NBU decided to keep unchanged the key rate at 13% for the first time after the period of reduction that began in the second half of 2023. The inflation rate in June 2024 reached 4.8% with a forecast of growth to 8.5% by the end of the year. As NBU officially reports, the pressure on the prices will continue in the coming months, pushed mainly by business operating costs, higher taxes and the fading effect of large harvest gathered last year.

From other hand, Ukraine lending market is recovering. Market volumes in hryvna has exceeded the pre-war level, according to NBU’s data published in May 2024. The growth of the market mainly driven by state and local banks, including their active involvement in state lending stimulating programs.

Credit Agricole Ukraine' s deposits and loans portfolio stabilized in the second quarter 2024, at the same time share of High-Quality Liquid Assets in the Bank's portfolio remains on a quite significant level of 79%.

Credit Agricole Ukraine is contributing to Ukraine's energy infrastructure recovery. In June 2024, Bank joined the NBU’s initiative in frame of the “Memorandum on bank lending projects aimed for energy infrastructure recovery, suffered as a result of Russia's aggression”. Bank will participate in the financing of companies implementing initiatives to increase the level of energy independence of Ukraine.

Credit Agricole Ukraine keeps the position of one of the market leaders in Car loans taking the second place with 27% of market share by number of deals. In first half of 2024, the Bank issued more than UAH 1.3 billion (+57% YoY) or UAH 3.8 billion of Car loans since the beginning of the war.

As part of the AIR strategy, in May - June 2024, a series of management sessions were held, aimed to refresh Bank's strategy in the conditions of external environment changes. Business review results confirmed three main priority areas of the Bank's development: Agro & ESG, IT clients and Automotive.

In connection with regional network development, in May 2024 Credit Agricole Ukraine officially opened the largest branch in Ukraine of a new format, located in Kyiv in the “San Francisco” business center.

As part of the Social and Human pillars, Bank allocated UAH 1.5 million for the reconstruction of the “Okhmatdyt” hospital to overcome the consequences of the rocket attack on 8^th of July. Bank employees also joined in helping: they sent water and medicines to the victims. Since the beginning of the war, Credit Agricole Ukraine has had an active social position and allocated UAH 144 million to charity projects within large-scale program of corporate social responsibility We Care!

The bank's liquidity position has maintained at a high level, both in hryvnia and in foreign currency (LCR at the level of 617% & NSFR at the level of 367% against 100% of the regulatory requirement).

In addition, the Bank has a strong capital position with a capital adequacy ratio (N2) of 29.41% and Tier 1 ratio (N3) of 14.71% as of June 2024, well above the regulatory minimum (10% for N2 and 7% for N3). During 2^nd quarter of 2024, the regulatory capital of Credit Agricole Bank increased by UAH 0.7 billion and exceeded UAH 11.5 billion.

The international Credit Agricole Group demonstrates its continued support and willingness to take part in the recovery and reconstruction of Ukraine. Given the extraordinary context, the shareholder decided to fully preserve the results obtained over the past 3 years in the bank's capital in order to support the Ukrainian economy and participate in the future reconstruction of the country.

Bank’s stability has confirmed by independent ratings, according to which Credit Agricole Ukraine took a first place in the rating of reliability of bank deposits by “Standard Rating” report, and the first place in the most stable banks of Ukraine rating by “Minfin” financial web portal published by the results of the first quarter 2024.

Financial performance 

Net Banking Income reached UAH 4.9 billion in H1 2024, up 18% YoY, mainly lead by high Net interest income driven by strong liquidity position.

Operating expenses stood at UAH 1.2 billion in H1 2024, up 11% YoY. Staff charges increased by +12% YoY mostly driven by HR fixed part. Other expenses increased +10% YoY driven by increasing investments in IT (Cloud, banking applications for customers) and uninterrupted operations (generators, electricity back-ups, etc.).

Cost to income ratio of the Bank is at a very good level of 25.6% for H1 2024 thanks to higher revenues and operating expenses under control.

In H1 2024 Bank released UAH 1.2 billion provisions, mostly realized in 1Q 2024, thanks to loan repayments and ratings upshifts. Total provisions coverage to loans is 24% (89% on NPL) globally stable in comparison with previous quarter.

Net financial result of Credit Agricole Ukraine in H1 2024 reached UAH 3.6 billion

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.