Financial results of Crédit Agricole for the first quarter of 2024

Credit Agricole Ukraine reports high level of net financial result - UAH 2.0 billion in the first quarter of 2024, thanks to the loyalty of clients, constant support of the Group, balanced risk management policy, and effective teamwork. Credit Agricole Ukraine continues to support its clients contributing to the resilience of the Ukrainian economy.

“In 2024 Credit Agricole Ukraine confirmed its status of systemically important bank and excellent reliability according to the several independent ratings. Thanks to the bank's stability and comprehensive expertise, we are able to offer our clients daily support and assistance in developing own projects even during war time. The volume of customer funds in our bank continues to grow, which confirms the satisfaction and trust of our customers to a reliable international partner ” – Vitalii Kucher, Board Member, Chief Financial Officer at Credit Agricole Ukraine.

Relatively stable macroeconomic situation and a moderate level of inflation (3.2% YoY), mainly due to the help of Western partners, led to a gradual decrease in interest rates. Since the beginning of 2024, the key policy rate has been revised by 50 b.p. down to 14.5% as of March 31, and as forecast could reach 10-12% by the end of the year. The market is experiencing some positive changes in credit recovery, but it is still quite limited by the availability of qualitative demand. Military risks continue to be the most important factor.

For Credit Agricole Ukraine, the 1^st quarter of 2024 is characterized by the continued growth of the deposit portfolio, albeit at a slightly slower pace, while the decline in the loan portfolio has almost stopped. At the same time, the share of High-Quality Liquid Assets (HQLA) in the Bank's portfolio remains at a quite significant level of 82% (vs. 79% in December 2023).

Credit Agricole Ukraine continues to support its clients and contribute to the resilience of the Ukrainian economy, focusing on the agricultural sector, Premium, Professionals and IT clients. The bank is one of the market leaders in car loans ranking 2^nd with 27% market share by number of deals. In the 1^st quarter of 2024, Credit Agricole Ukraine issued almost UAH 0.6 billion (+64% YoY) or UAH 3 billion of car loans since the beginning of the war.

As of March 2024, 45% of loans for legal entities were covered by targeted risk-sharing programs (state programs, EBRD, IFC). Cooperation with international financial institutions is one of the priority directions to recover the loan portfolio and participate in the reconstruction of the Ukrainian economy, with the total volume of signed programs at EUR 140 million.

Credit Agricole Ukraine is continuing to invest in Digital services for clients (CA+, CA+ Pro, CORPEX), automation of processes and a reinforced IT backbone for the bank (Cloud).

Social and Human pillars are also a constant focus. The Bank is continuing its contribution to society and employees through the umbrella of the “We Care” program. An independent evaluation by NV magazine has p[laced the Bank among the Top-10 largest donors among financial institutions, with contributions of UAH 123 million since the beginning of the war. In the 1^st quarter of 2024, the bank launched the next editions of the “Agro School” and “Managerial school”, in line with its leadership pipeline development strategy.

The bank's liquidity position was maintained at a high level, both in hryvnia and in foreign currency (LCR at 753% & NSFR at the level of 378%, exceeding the regulatory requirements of 100% for both ratios).

In addition, the Bank maintains a solid capital position with a capital adequacy ratio (N2) of 32.84% as of March 2024, well above the regulatory minimum (10%). During the 1^st quarter of 2024, the regulatory capital of Credit Agricole Ukraine increased by UAH 0.9 billion, reaching a total of UAH 10.8 billion.

It is also worth noting that Credit Agricole Ukraine was recognized the most resilient bank in Ukraine, according to the investment company Dragon Capital and the NV magazine (3^d place a year before).

Financial Performance

Net Banking Income reached UAH 2.4 billion in Q1 2024, up 23% YoY, mainly driven by high Net interest income resulting from a robust liquidity position.

Operating expenses stood at UAH 0.6 billion in Q1 2024, up 10% YoY. Staff charges increased by +11% YoY, driven by a 12% salary increase in April 2023. Other expenses increased by +9% YoY, driven by an increase in investments in IT (Cloud, banking applications for Private and LE customers).

Cost to income ratio of the Bank is at a strong level of 24% for Q1 2024 thanks to high revenues and a strict control over the cost base.

In Q1 2024, the Bank released provisions of UAH 0.8 billion, reflecting loan repayments and ratings upgrades. The total provisions coverage to loans ratio is 26% (88% on NPL), which is consistent with previous quarter.

Net financial result of Credit Agricole Ukraine in Q1 2024 reached UAH 2.0 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.