Financial results Crédit Agricole for the first quarter of 2023

In the context of the war that started with the russian invasion on February 24, 2022, despite of the displacement of the population, the Black Sea blockade which prohibited exports of Ukrainian cereals, destruction of electricity networks, the country and the economy adapted to the war conditions thanks to strong state policy, the restructuring of logistics and the adaptation of the process to the martial law.

Meanwhile, during the entire period,  Credit Agricole Ukraine reported solid capital and liquidity position despite of the extraordinary adverse context (Capital adequacy remains at an extremely high level (N2 at 19.6%, 2X more the regulatory minimal level) and significant excess of liquidity (LCR at 228% vs 100% minimum while Net Stable Funding Ratio - NSFR - at 243%, 2X the requirement). Being among the top-3 most resilient to war shocks banks in Ukraine according to the ranking by the investment company Dragon Capital and the NV magazine, Credit Agricole Bank supports its clients and society.

Additionally, in March Credit Agricole Ukraine was included to the list of systemically important banks. The current level of capital ratios as of the end of March is: 16.6% of Tier 1 ratio and 18.1% of Solvency ratio, meanwhile requirement level is 8% and 11% accordingly so as a result, Credit Agricole Ukraine is already in line with this requirement.

Since the beginning of the war, the Group has expressed and demonstrated complete solidarity and has launched at €10 million solidarity fund to meet the needs of employees and Ukrainians affected by the war. In such a context, the bank remains committed to its clients, employees and society.

Thanks to the constant Group support, balanced risk management policy, the effective team work and the customers’ loyalty, Credit Agricole Ukraine has not stopped its work for a single day since the beginning of the war and once again confirms the status of a reliable financial partner and socially responsible business. Over a third of all outlets of the bank network, 52 outlets all over Ukraine, are provided with alternative power sources.

Credit Agricole Ukraine continues to support clients contributing to resilience of the Ukrainian economy, especially in the agriculture sector.

Moreover, the Bank has more than 4.5 bnUAH portfolio under the State program “Affordable loans 5-7-9”; Credit Agricole Ukraine granted more than 770 mUAH of Loans under the State guarantee program and more than 450 mUAH of Loans under the risk sharing program with the European Bank for Reconstruction and Development (EBRD), which was signed at the end of 2022 with 50 mEUR envelope or around 2 billion UAH in equivalent.

At the same time, the bank also provides support to its clients thanks to continuous car loan production (in Q1, the Bank issued almost 350 mUAH or 820 mUAH since the start of the war). Credit Agricole is the leader of the “Car Loan” nomination according to the Financial Club rating “25 Leading Ukrainian Banks in War Time”.

Furthermore, Credit Agricole focuces and accelerated its investments in Digital services, new solutions, automation of processes and reinforced IT backbone of the bank (Cloud). Since the start of the war, the Bank has improved CA+ for supporting private clients, and this application is the best banking mobile application according to the Ukrainian Fintech Award 2022. In addition, the Bank improved its internet banking for legal entities – CORPEX and entrepreneurs - CA+ Pro.

At the end of March, Credit Agricole began processing non-cash transfers in the national currency in accordance with the ISO international messaging standard, which will take place through the National Bank's new generation electronic payment system - SEP 4.0.

In the context of the war, the bank  allocates as much of its budget as it can to charity, mostly for the procurement of the vital medical equipment for hospitals with the support of Your Support charity foundation. In one year, the bank implemented over 20 good initiatives for the total amount exceeding UAH 21 million. In the period of extended blackouts, jointly with the regional banks of the Group, the bank purchased power generators for orphanages and social institutions. Group employees in France and overseas collect funds for Ukrainian colleagues and for charity organizations. As a socially responsible employer, Credit Agricole does everything to support its employees: no dismissals, all payments made in full, insurance, including on-line medical aid, additional assistance to those affected by the war, relocation of employees to safer regions, hubs where employees can stay for a few days if needed and many other initiatives.

Since the beginning of the year, Credit Agricole Ukraine has continued to improve its financial performance.

In the 1st quarter of 2023  Credit Agricole Ukraine was able to ensure notable growth of Net banking income (NBI is 2.0 bUAH or +67% vs Q1-22) mainly thanks to its strong liquidity position in local currency. The latter is based on the strong Deposits base which demonstrated increase since Dec-22 by +12.3bUAH or +19%. Credit Agricole Ukraine boasts a solid and stable customer deposit base, from private individuals to Corporations that confirm the preference to Crédit Agricole Bank as an international reliable partner.

Total Costs were kept under control: despite war-related expenses, charity and donations and the high level of CPI, the cost base mainly remained at the stable level (+8% vs Q1-22).

This great performance in terms of efficiency is confirmed by the Cost-to-income ratio, which reached the strong level of 26.6% at the end of Q1-23. Considering extremely prudent and careful risk approach mentioned above, the Bank formed 1.3 bUAH of provisions in Q1-23 for a total coverage on loans of 23.6% (88% on NPL).

Finally, as of Q1-23, despite an extremely prudent approach in war times, Credit Agricole Ukraine reported positive Net Result of 103 mUAH or 2.6 mEUR

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.