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Crédit Agricole Bank achieved a Net Result of 853 MUAH for the first nine months of 2017, an increase by 292 MUAH or +52% as compared to the same period of 2016.

01 November 2017

"Crédit Agricole Bank has completed the first nine months of 2017 with a very high net profit of 853 MUAH, already above the Net profit of the full year 2016. If this increase of net profit is due to a decrease of cost of risk, I would like to stress that the good resistance of the Net Banking Income of Crédit Agricole Bank reflects the increase of its lending to Ukrainian economy" Régis Lefèvre, Member of the Management Board, Financial Director of Crédit Agricole Bank commented.

This result has been achieved through a diversification of its main sources of revenues and a reduction of Cost of Risk. NBI decreased by 104 MUAH or -5% for 9 months 2017 vs 9 months 2016 due to declining IRs and FX spreads. Decrease in NBI was offset by an improvement of the cost of risk, that decreased by -80% or 575 MUAH in comparison with the first nine months of 2016. This confirms overall improving trend of the economic situation in Ukraine and the quality of credit risk management system of Crédit Agricole Bank.

Crédit Agricole Bank continues to diversify its loan portfolio and invest in the Ukrainian economy by attracting new clients in the Large corporate, SME and Private segments. Loan portfolio (net of provisions) increased by +13% or by 2.1 billion UAH. Gross loans of the corporates decreased by -3%. Nevertheless, such decrease is largely driven by the successful management by CAU of its non-performing loans: work with clients, restructuring and sales of bad assets. Gross loans to private individuals increased by +50% as compared to the same period of last year, evidencing the will of CAU to reinforce its lending to Ukrainian economy.

Customer deposits increased by +3% or by 0.8 billion UAH. Deposits from corporates increased by +2% and individuals by +7%.

Short overview of Crédit Agricole Bank’s Income Statement:

  • Net Banking Income (NBI) for the nine months of 2017 amounted to 2.0 billion UAH (-5% vs first nine months of 2016). Decrease in interest income and revenues on Forex spreads is partially offset by an increase in commission income.
  • Net Interest Income (NII) decreased by -4% in comparison with the same period in 2016 due to lower interest rates (on customer loans and NBU certificates of deposit), reflecting a decrease in the NBU key rate and increased competition. However, it should be noted that the increase in outstanding loans allowed CAU to limit the impact of lower interest rate.
  • Net Commission income increased by 78 MUAH or by +18% over the first nine months of 2017 compared to the first nine months of 2016 due to fees from cash and settlement services, trade finance and insurance services increased.
  • Other NBI decreased by 127 MUAH or -45% over the first nine months of 2017 compared to the first nine months in 2016, mainly due to lower volatility and the stabilization of the foreign exchange market, which in turn led to a reduction of FX spreads.
  • Operating expenses increased by +18% or 129 MUAH compared to the first nine months of 2016. Staff costs increased by 98 MUAH or +25%. Growth in other expenses of 31 MUAH or +10% was mainly due to an increase in depreciation, reflecting investments into transformation processes and digital projects.
  • Decrease in Cost of risk by 575 MUAH or -80% in 9M-17 vs 9M-16 reflects a global improvement trend in the environment and better management of bad debts. Nevertheless, Crédit Agricole Bank maintained its cautious provisioning policy, reflected by a YTD increase of the coverage ratio of non-performing credit exposure by 300 basis points since Dec-16, from 81% to 84%.

Other significant information on Crédit Agricole Bank’s financials:

  • Total assets increased by 0.9 billion UAH in comparison with the same period last year to 30.0 billion UAH, which indicates a steady development of business volumes and further improvement and strengthen liquidity position.
  • Cash and cash equivalents decreased by 1.6 billion UAH up to 8.8 billion UAH as a result of the reallocation of extra liquidity to more profitable assets: NBU certificates of deposit, government bonds and customers loans. Crédit Agricole Bank has a strong liquidity position and does not need any external funding.
  • Gross Loans and advances to customers increased by 3%. Loans granted to corporates decreased by -3% compared to the same period last year, while loans to individuals increased by +50%.
  • Customer deposits increased by +3%: Corporate deposits +2% or 422 MUAH, Private individuals deposits +7% or 412 MUAH.
  • Capital adequacy ratio H2 is 16.71% (mandatory level is 10%)

Annex 1

 Summary First Nine months Income Statement

(UAH million)

Item
9M-2016
9M-2017
9M-2017 VS 9M- 2016

Net Banking Income

2116
2012
-104
-5%

NII

1397
1343
-54
-4%

Commissions

438
516
78
18%

Other NBI

280
153
-127
-45%

Operating expanses 

-698
-826
-129
18%

Staff charges

-396
-493
-98
25%

Other expenses

-302
-333
-31
10%

Gross Operating Income

1418
1186
-232
-16%

Cost of Risk

-723
-148
575
-80%

Result before taxes

696
1038
342
49%

Taxes

-134
-185
-51
38%

Net Result

561
853
292
52%

Annex 2 

Summary Balance Sheet

(UAH million)

Item
Sep- 2016
Sep- 2017
Sep-2017 VS Sep- 2016
Assets
 
 
 
 
Cash and cash equivalents
10418
8785
-1633
-16%
Due from other banks and the NBU
2006
1740
-267
-13%
Gross Loans and advances to customers
19156
19656
500
3%
Corporate loans
17200
16728
-472
-3%
Private individuals loans
1956
2928
972
50%
Provisions
-3458
-1873
1585
-46%
Other assets
1065
1730
665
62%

Total assets

29187
30037
850
3%
Liabilities
 
 


Due to other banks
511
8
-503
-98%
Customer deposits
24711
25545
834
3%
Corporate deposits
18805
19227
422
2%
Private individuals deposits
5906
6318
412
7%
Other liabilities
416
456
40
10%
Subordinated debts
1320
1017
-304
-23%
Total liabilities
26959
27026
67
0%
Equity
2228
3012
784
35%

Total equity and liabilities

29187
30037
850
3%

About Credit Agricole:

 PJSC «CREDIT AGRICOLE BANK» is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of bank insurance and third - in project financing in Europe. Credit Agricole has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including VIP clients, and business. The Bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of CREDIT AGRICOLE in Ukraine is confirmed by the highest possible FITCH ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 300 000 active private and 18 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business.

Contacts:

Viktoriia Torianyk, Head of PR and Corporate Communications at Credit Agricole Bank. 

Phone: +38 044 581 07 45, e-mail: Viktoriia.Torianyk@credit-agricole.ua

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