Financial results Crédit Agricole for the first half of 2023

Crédit Agricole Bank confirms resilience of its business model and chosen strategy, even in a context of war, and delivered strong financial performance during the first half of 2023.

In 2023, Crédit Agricole Ukraine marks the 30^th anniversary of its presence in Ukraine. For this period, the Bank become the Top-10 major player by net assets. Apart from that, the Bank was recognized the most resilient banks of Ukraine by Minfin on May 2023 and classified as systemically important bank by the National Bank of Ukraine.

Despite challenging context and massive blackouts at the beginning of the year, the country overcame the energetic/electric crisis and Crédit Agricole Bank has played its role by equipping with more than 50 branches with generators, gasoline and satellite internet to ensure continuity of operations in the network in order to support its customers and Ukrainian economy.

Crédit Agricole Ukraine continues financing agro sector contributing to the development of Ukrainian economy. The Bank provides financing within the framework of the state program “Affordable loans 5-7-9%” (4.3 billion UAH portfolio as of Jun-23), Risk sharing program with the Government (0,8 billion UAH portfolio as of Jun-23), Risk sharing program with European Bank for Reconstruction and Development (EBRD). As of June, more than 50% of loans portfolio of the Bank were grated to agro clients. In addition, the bank provides Car financing to Private individuals (in H1-23 were granted almost 860 million UAH of new loans).

Since the war broke out in Ukraine, Credit Agricole has taken an active social stance, implemented around 25 charitable initiatives and allocated UAH 26 million for various charity projects. Meanwhile, in order to support Ukraine in the wartime, the international Group allocated EUR 700 thousand, the regional banks of the Group – EUR 435 thousand. Helping hospitals is among Bank priorities. We do it in a systemic way, and since the war broke out, we even increased the number of initiatives and engaged the large-scale support of the international Group and its regional banks that demonstrate their unprecedented solidarity with Ukrainians

Credit Agricole Group has continued to provide full support to all its employees and allocated almost EUR 2,150 million since the beginning of the war.

The Bank keeps positive trend on deposits reaching over 82 billion UAH as of June 2023 (+29% compared with Jun-22). This trend confirms satisfaction and trust of clients to the reliable international partner.

Liquidity position of the Bank is solid, both in hryvnia and in foreign currency (LCR at 294% vs 100% regulatory requirement, NSFR at 359% vs 100% regulatory requirement). Apart from that, the Bank has strong capital position with a capital adequacy ratio (N2) of 23.8% as of June 2023, well above the regulatory minimal level (10%).

NBI reached 4.1 billion UAH for H1-23 (+55% compared vs H1-22) mainly lead by high Net interest income driven by strong liquidity position linked with development of deposits base.

Operating expenses were at 1.1 billion UAH in H1-23. Staff charges increased by +9% YoY following responsible HR policy of the Bank. Other expenses increased +16% YoY as a result of accelerated investment into IT infrastructure for uninterrupted activity (Power banking, Cloud), development of mobile applications for Private individuals and Professional clients and enhancement of internet banking solution for legal entities (CORPEX).

Cost to income ratio of the Bank is at the historical minimum of 27%, thanks to good performance of revenues and strict control over cost base.

In the context of the war, Ukrainian banking sector faced with an issue of declining assets quality, non-performing loans increased considerably and banks were making provisions to cover expected losses. Crédit Agricole Bank maintains prudent provisioning approach and created more than 6.3 billion UAH of provisions since start of the war reaching the Loans coverage rate by provisions at 29.3%.

All in all, Crédit Agricole delivered strong financial result of 1 billion UAH or 25 million EUR for the first half of 2023.

Annex 1

Summary Income Statement*

(UAH million)

Annex 2 

Short Balance Sheet^*

(UAH million)