Credit Agricole Ukraine financial results for the First Quarter of 2025

Macroeconomic and Regulatory Landscape

In the first quarter of 2025, Ukraine’s economy maintained a positive growth, YoY GDP increased by 1.1%, highlighting economy’s adaptability. As forecasted, annual GDP growth will accelerate slightly compared to the previous year to 3.1% in 2025.

Inflation remained elevated at 14.6% in March (YoY), although showing flattering signs. According to National Bank in the coming months, the inflation will increase moderately and will begin to decline in summer, supported by monetary policy measures, the arrival of new crops on the markets and improvement in the energy sector. Inflation will slow down to 8.7% in 2025, and to the target of 5% in 2026.

In March the National Bank kept the key policy rate unchanged at 15.5% after a series of increases starting from December 2024. Central bank plans to maintain the key rate at current level until the risk of inflation has decreased.

In the end of March USD exchange rate remained stable versus the previous quarter, at 41.5 USD/UAH, while the EUR rate increased by 2% to 44.7 EUR/UAH with increasing trend, reflecting global market fluctuations. International reserves remained robust at USD 42.3 billion, covering approximately 5.2 months of future imports.

Business development

Credit Agricole Ukraine continues developing its banking model following AIR strategy (Aim is to Invest in Recovery).

Client base grew by 3% year-on-year, supported by the activation and acquisition of Premium and Professional (IT sector) clients, notably through the launch of on-line onboarding at the beginning of 2025.

Automotive segment had a strong start of the year, surpassing previous year results: almost UAH 1 billion of new car loans (+52% YoY). In March, the Bank regained second place in market share, reaching 30%.

In line with further development of Leasing business, UAH 105 million of new agreements were financed in 1 quarter 2025 (+46% YoY). To ensure further business development, finance lease service in EUR and USD was launched and now available for clients with earnings in foreign currency, including agribusiness clients.

Bank continues to restore its Cash loan portfolio: in Q1 2025, the Bank issued UAH 36 million of new loans, up 43% compared to Q4 2024 with a continued growth trend.

Within the Agro and ESG direction, the Bank continued to develop partnership programs. For example, in 1^st quarter 2025 the Bank signed new agreements with leading providers of solar power energy and plant protection equipment, offering favorable financing terms for small and medium-sized businesses.

Commercial Portfolios

Year-on-year loan portfolio increased by 11%, contributed by: Proximity business +33%, mainly thanks to Car loans and IT professionals, and Corporate +10%, thanks to Large and Middle corporate clients. Quarter-on-quarter portfolio remains stable, with continues growth in Proximity and minor fluctuations in Corporate.

Stability of deposits, both in Corporate and Proximity. The share of term deposits in total deposits (52%) increased slightly in comparison with 2024.

Strong Capital and Liquidity Positions

At the end of 1st quarter of 2025 Bank has a strong capital position with CET1/Tier 1 ratios at 20.4% and a solvency ratio of 20.7%, much above the regulatory minimums. Liquidity remains at a high level, both in hryvnia and in foreign currency (LCR at the level of 611% & NSFR at the level of 309% against 100% of the regulatory requirement).

Corporate Social Responsibility

This spring, the We Care! program turned 9 years old. Within the new AIR strategy – Aim to Invest in Recovery – this program fulfills an important mission: to invest in the recovery of society. More than 100 charitable initiatives amounting to over UAH 170 million – this is the result of the We Care! program during the war.

Credit Agricole Group donated to support the recovery of Ukraine. Recently the Charity Fund allocated over 5 million hryvnias to fund 3 sessions of the psychological rehabilitation camp "I am Da Vinci", helping Ukrainian children who have lost one or both parents during the conflict. 60 children aged 6 to 16 participated in the 1st session from 01/20 to 02/03/2025, benefiting from an intensive psychological support program based on the British "Children and Bereavement" method.

Credit Agricole Bank supports employees and approved a new support policy for veterans and returning employees, as part of its social responsibility strategy. The policy includes employment support, social adaptation, financial stability assistance, and dedicated integration programs for veterans returning from service.

Financial Performance

Net Banking Income reached UAH 2.1 billion in Q1 2025, down 13% YoY, mainly due to additional mandatory provisions introduced by regulator in October 2024.

Operating expenses reached UAH 0.7 billion in Q1 2025, up 26% YoY, driven by staff expenses (+28%) and Other expenses (+24%), including Cloud back-up, IT software maintenance and utilities costs.

Despite changed monetary environment and pressure on costs side, the Bank managed to maintain Cost to income ratio at good level of 35%.

In Q1 2025 Bank released UAH 0.4 billion provisions reflecting loan repayments and credit ratings upgrades. Provision coverage to total loans stood at 16.7%, and coverage of non-performing loans (NPLs) at 89%.

As a result, Net financial result of Credit Agricole Ukraine in Q1 2025 reached UAH 1.4 billion, down 32% YoY, effected by decrease in net interest income, higher costs and lower provisions release, however remains in line with the central scenario for 2025.

Annex 1. Summary Income Statement*
(UAH million)

Annex 2.*
(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.