Crédit Agricole Bank generated 680 M UAH of Net Result during 9 months 2020

Despite a context still affected by the COVID-19 Crisis, Crédit Agricole Bank provided UAH 680 million of Net Result as of 9M of 2020, confirming the soundness of its Business Model and the resilience of the Bank even in adverse scenario.

“With the gradual easing of COVID-restrictions, business activity and consumer demand have reinforced from the Q3-20. Crédit Agricole Bank provided its support the Ukrainian economy (Loans to customers increased by +13% in Q3 vs Q2), with particular attention to financial conditions for clients (CAU is among the Top 3 Banks in the 5-7-9 Program). At the same time Bank never stopped investing into new services and product for customers, with a special focus on digital offer: the new Mobile App CA+ is in the Top 3 for clients rate” - Giorgio Sopranzi, Member of the Management Board, Financial Director of Crédit Agricole Bank commented.

Q3-20 recorded positive signals for the economy, after the slump of the activity and freeze of household consumption registered in 2Q. Thus, as of 9M-20 total UAH loans portfolio is UAH 19.5 billion (in line with Sep-19 level). The demand for loans in hard currency is still weak (the stock is  7.8 billion UAH, -13% vs Sep-19), due to the delays on investments - from one  side - and the appeal of (relatively) low interest rates for funding in UAH – on the other side. CAU strongly supported the recovery of the economy, providing more than 1 billion UAH loans with favorable conditions for clients, in the scope of the Program 5-7-9 (CAU is among the Top 3 Banks in terms of amount of loans granted) and took care of customers facing hard times due to the crisis (the Bank renegotiated 3611 #of loans to PI in total amount of 417mUAH)

Crédit Agricole Bank was ready to support the recovery & development thanks to its sound capital and liquidity position (Capital adequacy - N2 – remains at a high level of 18.5% vs 10% minimum and significant excess of liquidity – LCR at 234% vs 100% minimum).

In a crisis context, CAU confirmed its role of “safe haven” for depositors, with a deposits portfolio grew up to UAH 40.4 billion at the end of Sep-20 (+35% in comparison with the end of Sep-19). The performance has been supported also by digital channels, with on-line time deposits growth by 12.8% since year beginning

Despite the crisis and the structural drop in interest rates, in 9 month of 2020 Crédit Agricole Bank registered +UAH 680 million of Net Result (EUR 20.5 million). Compared to 9M-19 of course the result is lower (-49%), due to the freeze of the economy (which lead to a decrease in revenues) and a very prudent approach in provisioning.

Net banking Income is +UAH 2.5 billion, just -6% below the same period of last year.

• Net interest income, notwithstanding the narrowing in margins, is almost in line with the first 9 months of 2019 and continues to be the major share in NBI structure (69%).
• Commissions are the most affected by Quarantine-related restrictions, with a decrease of -20% in comparison with the 9 months 2019.
• Other NBI is globally in line with the same period 2019.

Operating expenses of the Bank increased in comparison with end of Sep-19 by +11% mainly on staff charges (2019 salary increase effect) but also due to COVID19 costs. They also highlight the effort of the bank to take care of the health of its clients and employees in COVID-19 times: Smart Working on large scale has been launched (allowing more than 90% of head office employees to work from home during the crisis), more than 226 thousands surgical masks have been bought, together with other medical protections. It is also worth to say that the Bank decided to do not cut salaries nor any lay-off due to COVID-19.  

Growth of other expenses by +UAH 50 million or +11% reflects the investment plan in the scope of Medium-Term Plan 2022 (Bank didn’t stop even in a crisis context, to be ready to hook immediately the recovery).

Bank remain a reliable partner for the clients, so have provided an opportunity for loans restructuring and rental holidays for borrowers affected by pandemic-related difficulties. Nevertheless, the NPL ratio remains one of the lowest among banks in Ukraine (2.8%) and the coverage ratio remains sufficient (83%). From Cost of Risk point of view, Bank maintained a very prudent approach reacting to the deterioration in the macroeconomic scenario in accordance to IFRS Standard. Thus, Crédit Agricole Bank actualized estimates of expected credit losses & provisions. Total impact on Cost of Risk (CoR) of 9 month of 2020 is +UAH 501 million.

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.

 About Credit Agricole:

JSC «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 bancassurance 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 Premium 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 280 000 active private and 17 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business. Credit Agricole Bank is a socially responsible bank that confirms its status by the large number of projects implemented under the Corporate Social Responsibility Program “We Care!”. 

 Contacts:

Viktoriia Torianyk, head of public relations and internal communications at credit Agricole Bank 

Email: Viktoriia.TORIANYK@credit-agricole.ua