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Results for the second quarter and first half of 2019 of Credit Agricole Group

12 August 2019

Q2-19: Business lines deliver increased revenues   

Credit Agricole Group   

In second quarter, Crédit Agricole Group’s underlying Net income Group Share was high, at €1,846 million, despite a fall of -10.2% compared to second quarter 2018, the highest quarterly level since Crédit Agricole S.A.’s IPO. In the first half-year, Crédit Agricole Group’s underlying Net income Group Share was €3,281 million, a year-on-year decrease of -3.7% compared to first half 2018. This performance was achieved thanks to very high levels of activity across all business lines: buoyant customer capture (+140 000 net customer capture for the Regional Banks, LCL and CA Italia in first half 2019), credit, inflows and equipment in Retail banking, sustained inflows in Asset gathering and savings/retirement, increased market share in property and casualty insurance, and a return to the levels of activity seen in first half 2018 in Large customers. This activity demonstrates the strength of the Universal Customer-focused Banking model, which generates revenue synergies.

Expenses were well controlled, and there was a positive jaws effect in the first half of the year, with revenue up +1.2% and non-SRF operating expenses up +1.0%. Revenues from Regional Banks increased by +2.8% this half-year, thanks to the dynamism in life insurance fees and commissions (+4.9%) and the positive effect of portfolio valuation. At the Group level, the cost of risk increased to 19 bp from the very low level in the second quarter of 2018 (18 bp), due in particular to one-off provisions in CIB and the Regional Banks, but remained very low. The coverage ratio stood at 83.7%. The Common Equity Tier 1 ratio reached 15.4% at end June 2019, an increase of 0.1 percentage point compared to end March 2019, and 590 basis points above the required regulatory level1.

In line with the “Raison D’être”, formulated when the Medium-Term Plan was presented in June 2019, the Group focuses on excellence in customer relations, empowered teams for customers, and societal commitment. Its stable, diversified and profitable business model drives organic growth in all its business lines, in particular through synergies between specialized business lines and retail networks, and ensuring a high level of operating efficiency while generating capacity to invest in business development. The Group has recorded first achievements of the Medium-Term Plan this quarter, in particular by stepping up green finance.

In the second quarter of 2019, Crédit Agricole Group’s stated Net income Group Share reached €1,813 million, versus €2,076 million in second quarter 2018. The specific items recorded this quarter generated a limited negative net impact of -€33 million on Net income Group Share.

Excluding these specific items, underlying Net income Group Share2 reached €1,846 million, a decrease of -10.2% compared to second quarter 2018, when Net income Group Share was at its highest level since 2001, the year of CASA’s IPO.

Credit Agricole S.A.

High quarterly underlying net income 

- Underlying Group net income: Q2-19 €1,242m, -12.4% Q2/Q2, H1-19 €2,038m, -7.6% H1/H1, stable business line results (excluding Corporate centre) (+0.1% H1/H1);

- Annualized underlying ROTE3 11.0%, good profitability in all business lines;

- Growth in activity in a challenging environment and compared to an historic Q2-18;

- Contribution of Asset gathering (AG) division to net income up, and positive in all divisions except in Large customers due to a reversal in cost of risk; deterioration of the volatile component of the Corporate Centre.  

Increase in Q2/Q2 revenues (+1.9% for the business lines4) and H1/H1 revenues (+1.4%) 

- Dynamic customer capture, equipment, loans and customers savings in Retail banking, strong inflows in Savings/retirement, market share gains in Property and casualty Insurance;

- Outstandings at a record high in Asset management, in Insurance and in Asset servicing, in particular thanks to a market effect.

- Automobile JVs achieved excellent business growth, generating equity-accounted income;

- Stable revenues H1/H1 in the Large customers division;

- Underlying revenues up +0.6% Q2/Q2, +0.4% H1/H1.

Expenses well under control and cost of risk still very low 

- Underlying costs excluding SRF: +2.0% Q2/Q2 in an environment of high investment; development costs increasing in all divisions, €10m in one-off consulting fees on structural operation projects (15% of the increase);

- Underlying cost/income ratio excluding SRF at 58.6% in Q2, positive jaws effect for business lines;

- Cost of risk still very low at 25 bp, one-off provisions in CIB;

Financial solidity confirmed this quarter  

- CET1 ratio at 11.6%, up 0.1 pp, well above the 11% MTP target; RWAs up moderately +0.9% June/March.

First achievements of the 2022 Medium-Term Plan  

- Development of non-Group partnerships: signature of a partnership in non-life insurance with Abanca, expansion and extension of the agreement between CACF and Banco BPM and renewal of the partnership with FCA this quarter. Operations with Santander and Kas Bank in Asset servicing this half-year.  

- Acceleration in green finance: adoption of a Group climate strategy and strengthening our leading position in green bonds.  

- Crédit Agricole Assurance becomes the #1 life insurer in France5.

In the second quarter of 2019, stated net income reached €1,222 million versus €1,436 million in the second quarter of 2018. Specific items for this quarter had a limited net negative impact of -€20 million on net income, while they had a limited but positive +€19 million impact during the second quarter of 2018.

Excluding these specific items, underlying net income for the second quarter of 2019 totaled €1,242 million, a high point but down -12.4% compared to the all-time high observed in the second quarter of 2018 (the highest underlying quarterly net income published by Crédit Agricole S.A. since its IPO in December 2001).

Underlying earnings per share stood at €0.40 in the second quarter of 2019, down -14.1% compared to second quarter 2018.

Activity grew in Crédit Agricole SA’s business lines, despite a challenging environment, and compared to a historically high second quarter 2018.

The Crédit Agricole S.A. business lines and the Crédit Agricole Group retail networks, in particular the Regional banks, which distribute the products and services of Crédit Agricole S.A.’s business lines, again enjoyed strong activity levels this quarter, in lending, customer savings and protection of assets and individuals. Customer equipment increased, reflecting the potential for organic growth through revenue synergies of the Group’s Universal Customer-focused Banking model.  


1. According to pro forma SREP requirement for 2019 of 9.5% as notified by the ECB (incl. countercyclical buffer)

2. Underlying, excluding specific items. See p. 16 onwards for more details on specific items

3. Annualised rate calculated without restating IFRIC21 charges, taking into account AT1 coupons deducted directly from Group net equity; RONE of the divisions and business lines calculated using the same method

4. Underlying revenues of the business lines (excluding Corporate Centre)

5. Source : Argus de l’Assurance 28/06/2019


Read more about Group financial results via link https://www.credit-agricole.com/en/news-channels/the-channels/newsflash/q2-and-h1-2019-results

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!”. 

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