Credit Agricole Bank achieves a quarterly record net result of 440 M UAH during Q1-18

Financial result after taxation of Credit Agricole Bank in the first quarter of 2018 reached new record level in amount of UAH 440 million. Such result confirms the efficiency of the bank’s business model and reflects the consistency in implementation of the bank’s strategy.

"Universal banking model allows Credit Agricole Bank to diversify its main sources of revenues and to maintain an excellent financial performance. The bank is in a position to compensate adverse trends that are associated with narrowing of market spreads, and to continue further its positive dynamics in 2018. In Q1 2018, Credit Agricole Bank has posted the highest quarterly net result ever achieved which gives good expectations for the whole year 2018", - Regis Lefevre, Management Board Member, Financial Director of Credit Agricole Bank commented.

Performing loans portfolio (net of provisions) has shown a steady growth by 23% or UAH 3.7 billion in comparison with the similar period of last year. At the same time, Credit Agricole Bank significantly improved quality of the loan portfolio – loans provisions decreased by 36% or UAH 1.1 billion in comparison with the similar period of last year. At the end of March 2018, NPL coverage ratio grew by 9% and reached the high level of 97.5% in comparison with the end of Q1 2017. The bank continued cleaning-up of its NPL portfolio and successfully managed a couple of big cases during Q1 2018.

Credit Agricole Bank's deposits portfolio amounted to UAH 25 billion at the end of first quarter 2018, having decreased by 4%, or by UAH 0.9 billion in comparison with Mar-17. Decrease of deposits portfolio is mainly due to FCY portfolio (change of behavior of corporate customers in terms of cash coverage of documentary operations). Deposits of clients provide a comfortable level of liquidity to the bank, both in hryvnia and in foreign currency. Credit Agricole Bank liquidity excess in FCY represents the equivalent of 67% of its customer deposits at the end of March 2018. Available liquidity buffer in hryvnia is placed in highly liquid instruments of the NBU and Ministry of Finance of Ukraine (CDs and T-bills). Solvency ratio of Bank (H2) at the end of Q1 2018 reaches 18.1%, which is 1.2% more than for the same period of last year. Such level of H2 significantly exceeds the regulatory minimal level (10%).

According to the results of the first quarter, net banking income amounted to UAH 797 million, which is 18% or UAH 124 million more than for the same period of last year. The Bank has demonstrated growth in all components of net banking income, which confirms adequacy of the chosen business strategy and its sustainability.

Operating expenses of the bank increased by 23% or UAH 59 million in comparison with the Q1 2017. Staff charges increased by 20% following normalization of the environment and delayed effects of the high inflation of the past years. At the same time, Credit Agricole Bank invests in its development (network, digitalization, IT security and infrastructure), which results in an increase of depreciations.

Cost of risk is positive in first quarter of 2018. The CoR improved significantly in comparison with the similar period of last year (UAH +52 million Q1-18 vs UAH -42 million Q1-17). Positive changes are due to active work with non-performing debts and prudent risk policy.

Cost to income ratio of the Credit Agricole Bank remains one of the lowest among Ukrainian universal banks, and does not deteriorate in a context of significant investments.

Net profit for the first quarter of 2018 is UAH 440 million, which is 44% or UAH 134 million exceeds results of the Q1 2017.

Annex 1

Short Income Statement

(UAH million)

Annex 2 

Short Balance Sheet

(UAH million)

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 ban 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 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 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 Credit Agricole Bank.

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