Results for the 4th quarter and full year 2019 of Credit Agricole Group

In the fourth quarter, underlying net income Group share of Crédit Agricole Group was €1,986 million, up +22.1% compared to fourth quarter 2018. For full year 2019, underlying net income Group share of the Crédit Agricole Group was €7,191 million, an increase of +5.0% compared to 2018.

The Group's performance this year is on based the implementation of the three pillars of the Group Project. With regard to the Customer Project, the customer net promoter score at LCL and the Regional Banks increased (by +8 points and +5 points), innovative offerings were launched (EKO, LCL Essentiel, Je suis entrepreneur, Yapla), the digital relationship was enhanced, and 500,000 customers were met as part of Trajectoires Patrimoine. With regard to the Human-centric Project, the Crédit Agricole Group was ranked first in financial services in France in terms of diversity by the Financial Times. Lastly, in respect to the Societal Project, a €1 billion Green bond was issued by Crédit Agricole S.A. in October 2019, and a €1.25 billion Green covered bond was issued by Crédit Agricole Home Loan SFH in November 2019.

The contribution of the Regional Banks to the underlying net income Group share was up +26.6% in fourth quarter 2019. Underlying revenues of the Regional Banks increased as well (+5.7%). Underlying operating expenses were up +1.8% compared to fourth quarter 2018, corresponding to continued IT investments under the Group’s Project and Medium-Term Plan. The underlying cost/income ratio improved compared to fourth quarter 2018 (-2.6 percentage points) to 66.7%.

The Group’s underlying revenues reached €33,790 million in 2019, up +3.0% year-on-year, reflecting the strength of the Universal customer-focused banking model, stable and diversified, and which generates organic growth in all the business lines, thanks in particular to revenue synergies between specialised business lines and distribution networks. Underlying operating expenses excluding SRF are well controlled (+1.7% increase in 2019), while incorporating IT investments in the Regional Banks and investments to develop Crédit Agricole S.A.’s business lines, especially in the Asset gathering business line. Positive jaws of 1.3 percentage points were recorded this year. Underlying cost/income ratio excluding SRF improved by -0.8 percentage point compared to 2018, reaching 63.2% this year and reflecting the Group’s high level of operational efficiency.

The cost of risk on outstandings of the Regional Banks was still low (10 basis points, after 14 basis points at end-2018). Furthermore, the NPL ratio was down (1.87% vs 2% at end-2018) and the NPL coverage ratio remained high (99.1%). The Group’s cost of credit risk increased by +7.1% in 2019, as a result of the reversal of the cost of risk in corporate and investment banking, but it remained very low, and the coverage ratio was 82.6%.

The Group’s Common Equity Tier 1 ratio was 15.9% at end-December 2019, an increase of +0.4 percentage point compared to end-September 2019, more than 6.2 percentage points above the required regulatory level.

Crdit Agricole S.A.

Strong increase in underlying quarterly net income Group share 

• Sharp increase in reported results: Q4-2019: €1,661m, +64.9% Q4/Q4; 2019: €4,844 m, +10.1% 2019/2018.
• Underlying net income up in the quarter (1 318 m€, +23.5% Q4/Q4) and over the year (4 582 m€, +4.0% 2019/2018), an historic level for underlying net income Group share in 2019 (€4,582m);

Strong commercial activity in all business lines

• Record net inflows in Asset management, positive market effect; premium income up +7.7% in property and casualty and +8.7% in personal protection in 2019;
• Strong customer acquisition in Retail banking in France and Italy (1 800 000 individuals and entrepreneurs in 2019), dynamic growth in savings and loans (+6.7% Dec./Dec. in France and Italy in the retail networks);
• High business production in consumer finance (+4.0% of outstandings under management Dec./Dec.), leasing production at its highest level since 2014;
• Dynamic commercial activity in capital markets, in a market environment that became more favourable in 2019; high level of activity in structured finance; increase in assets under custody and administration in asset servicing.

Positive contribution of the business lines to income growth in 2019

• Underlying revenues up (+7.7% Q4/Q4 and +3.3% 2019/2018);
• Significantly positive jaws (+5.5 pp Q4/Q4), improvement in the underlying cost/income ratio excluding SRF (by -3.4 pp to 62.6% in Q4 and -1.1 pp to 61.0% in 2019) despite development investments in the Asset gathering business line;
• Decline in risk-weighted assets in business lines Q4-2019 (-2.0% Dec./Sept.), thanks to securitisation transactions in corporate and investment banking, without calling into question the level of activity;
• Return of the cost of credit risk to a normal level (32 basis points).

Implementation of the Group project and MTP initiated, strengthening of business line partnerships 

• Group revenue synergies at €9 billion, up €0.3 billion, mainly driven by insurance;
• Customer project: growth of the net promoter score of Regional Banks and LCL, launch of innovative offerings, intensification of digital customer relations, 500,000 customers met as part of the Trajectoires Patrimoine initiative;
• Human-centric project: Crédit Agricole Group is ranked first in financial services in France for diversity by the Financial Times;
• Societal project: Crédit Agricole S.A. issued a €1 billion Green bond, and Crédit Agricole Home Loan SFH issued a €1.25 billion Green covered bond.   

Read more about Group financial results via link https://www.credit-agricole.com/en/news-channels/the-channels/newsflash/q4-and-full-year-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!”. 

Contacts:

Viktoriia Torianyk, Head of PR and internal communications division of Credit Agricole Bank.

E-mail: Viktoriia.TORIANYK@credit-agricole.ua