Credit Agricole remains trusted & reliable partner for its clients and Ukrainian economy

Credit Agricole Ukraine reported a net profit of 2.8 billion UAH for the financial year of 2023. This result is largely driven by a context of highly liquid market with wide interest rate spread that rather has a temporary nature. In 2024 there will be a gradual transition to a more normal functioning of the banking market, although military risks still remain relevant.

Following IMF requirements, at the end of 2023 has been introduced a windfall tax. It implies that 50% of the banking sector profits will be re-directed to the state budget, thereby substantially amplifying financial support of the state budget by banking sector.

Another remarkable figure is 3.3 billion UAH - the total amount of all taxes and contributions that Credit Agricole will pay for the financial year of 2023. This represents substantial contribution to the stability of the country during challenging times.

In November 2023, Philippe Brassac the CEO of Crédit Agricole S.A. has visited Ukraine, once again reassuring constant support of the Group to the Ukrainian society. The Group's presence is aimed at developing business in Ukraine and reinvesting significant part of its financial results into the expansion of activities and supporting the country’s economy.

Credit Agricole Ukraine continues to provide financing, contributes to the support of Ukrainian economy and customers. Bank actively participates in the following lending programs as “Affordable loans 5-7-9%”, Risk sharing program with the Government and Risk sharing program with the European Bank for Reconstruction and Development. The share of loans covered by those programs increased from 30% to 40% during 2023.

Furthermore, the Bank recently signed new agreements with the EBRD and IFC to increase lending to the Ukrainian economy by another 90 mEUR. Credit Agricole Ukraine maintains leading position in agribusiness allocating almost 50% of the loans portfolio to this sector.

Apart from that, Credit Agricole holds the 2^nd place in the consumer automotive lending sector, having disbursed almost 2 bnUAH of new loans in 2023. The Bank maintains a strong market share of 26% in the automotive industry and improved it by +3% compared vs 2022.

Recently, the Bank launched new positioning "Code of Trust" specifically tailored offers for the IT clients, both Individuals and Private entrepreneurs.

Deposits portfolio of the Bank exceeded 90 bnUAH having increased almost 1.5 times (by 26 bnUAH or +41%), in comparison with December 2022 that confirms trust of our clients.

Credit Agricole reported high level of Net banking income of 8.8 bnUAH (+37% vs 2022). The main growth is driven by Net interest income resulting from a strong liquidity position.

Operating expenses reached 2.4 bnUAH. Staff charges increased by +20% YoY reflecting responsible HR policy of the Bank. Other expenses increased by +25% YoY due to investments in IT infrastructure for uninterrupted operations (Powerbanking project, back-up in Cloud), development of mobile applications for Individuals and IT Professional clients as well as enhancement of Internet banking solution for legal entities (CORPEX).

Along with this, in 2023 the Bank booked around 1 bnUAH of provisions and kept strong level of Loan coverage ratio at 25.8%. At the same time, assets quality is stabilizing and NPL ratio has been consistently decreasing for six months in a row reaching 12.9% as of December 2023.

Liquidity position of the Bank is solid, both in hryvnia and in foreign currency (LCR at the level of 277% & NSFR at the level of 345% against 100% of the regulatory requirement).

The Bank maintains strong capital position with a capital adequacy ratio (N2) of 28.3% as of December 2023 (regulatory minimal level is 10%).

Corporate social responsibility, support for society and employees

For 7 years now, the Bank has been implementing charitable projects in Ukraine as part of the We Care! program. During the war, Credit Agricole confirmed its active social stance. Credit Agricole Ukraine and the Group allocated UAH 97 mUAH to various charity projects, mainly for the purchase of medical equipment for hospitals with the support of the Charity Foundation “Your support”. This is one of the largest amounts among banks, contributing to 70 pieces of medical equipment for 20 hospitals and 2 mobile intensive care units (essentially hospitals on wheels). Among the most recent good deeds – donation of state-of-the-art medical equipment worth 5,6 mUAH in total to 3 regional hospitals in Vinnytsia, Lviv and Dnipro. All the equipment was purchased at the request of the medical institutions to meet their current needs to the maximum, especially during surgeries. We will continue to develop this direction in 2024.

As of December 2023, Credit Agricole has 2 167 employs. As a socially responsible employer, the Bank is doing everything it can to support its employees: no layoffs, full payment of salaries, solidarity bonuses, insurance, including online medical assistance, additional support for those affected by the war, relocation of employees to safer regions and professional psychological assistance.