Crédit Agricole Bank reporting positive net result of around 700 MUAH in the first half of 2021

Credit Agricole Bank profitability comes back to pre-coronavirus crisis levels.  In the first 6 months 2021, the Bank almost doubled its net profit compared to the same period of 2020, with a Net Result of around 700 MUAH, thus confirming the soundness & resilience of its business model.

“As soon as the crisis let the economy breath again, the Country immediately started to recover, and the Credit Agricole Bank was there to support its clients and the society. Commercial activity of bank continues its positive “momentum”, with new records in Car loans production (315mUAH in April) and in cash loans production (more than 700 MUAH in 6 months). This is the result of excellent work of our colleagues and the investment plan that, despite the COVID crisis, the Bank decided to do not slow-down and even to accelerate: Credit Agricole Bank was ready to anticipate the trends that were emerging before the pandemic (digital channels, remote working, reshaping of business models) and just sped up by the crisis. - Giorgio Sopranzi, Financial Director of Crédit Agricole Bank, commented.

If the Q1-21 has been marked with the 2020-similar COVID challenges & macroeconomic instability, the Q2-21 slowed down these trends. Ukrainian & global economies recover from the crisis, but the growth pace is slower than expected, and the macroeconomic risks remain high. However, Credit Agricole Bank increased significantly its customer loan portfolio compared to June 2020 (+27% on average for UAH loans), with a significant development both for Legal Entities (+32%) and Private Individuals (+15%). This increase confirms the support provided by Credit Agricole Bank to its clients and the society, since the Bank is among the Top 10 Banks by the amount of cheap loans issued in the scope of governmental programs of affordable lending (5-7-9 Program).

Credit Agricole Bank stands next to its customers and the Ukrainian economy thanks to its sound capital and liquidity position: Capital adequacy remains at an extremely high level (N2 at 19.0%, 2X more the regulatory minimal level) and significant excess of liquidity (LCR at 214% vs 100% minimum while Net Stable Funding Ratio - NSFR - at 160%, 2X the requirement).

Credit Agricole Ukraine boasts a solid and stable customer deposit base thanks to its clients – from private individuals to Big Corporation - that recognize the Bank as an international reliable partner, above all in crisis times.

As of H1-21, Crédit Agricole Bank reported 694 mUAH of Net Result (+75% on YoY basis) with a Return on Equity of 23%. Revenues raised up at 1.8 bUAH, with a strong development compared to H1-20 (+9%), thanks to the growth in Net interest & Commission income, while the decrease in Other NBI by -57 mUAH or -30% was mainly driven by the highly volatile market and non-recurrent profit in March 2020.

Net interest income, notwithstanding the narrowing in margins, is higher than in H1-20 by +14% thanks to the development of UAH loan, both on corporate and retail side, while the cost of funding has been progressively realigned to the market level.

On the commission’s side, as soon as quarantine restrictions came to an end, clients started relaunching their businesses, and the demand for Credit Agricole Bank’s products and services came back to the pre-crisis level. As of H1-21, Commission income increased by +12% on YoY basis or +42 mUAH.

Despite additional COVID-related expenses (to allow clients end employees to work and make business in the safest possible conditions) and significant investments in the scope of 2019-2022 MTP Plan, Operating expenses increased just by +3% (or +29 mUAH) vs H1-20.

Credit Agricole Bank maintains a very cautious managerial approach in provisioning, its risk profile remains strong (NPL ratio <3% is one of the lowest among Ukrainian banks with a coverage ratio – included collective provisions >200%).

Annex 1

Summary Income Statement*

(UAH million)

Annex 2 

Short Balance Sheet*

(UAH million)

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 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 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:

PR and corporate communications division of Credit Agricole Bank.

E-mail: Communications@credit-agricole.ua

*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.