Excellent 2019 financial results of Credit Agricole Bank

11 February 2020

Net profit of Credit Agricole Bank for 2019 reached +UAH 1 730 million, which is +18% or +UAH 267 million above the 2018.

"Credit Agricole Bank finished 2019 with a highest ever Net result reaching above UAH 1.7 billion with a strong progression YoY (+18%), despite the drop in Key Policy Rate and solid investments in improving processes the bank for covering our customer’s needs. The result obtained is confirmation of the effectiveness of the chosen bank's strategy", - Giorgio Sopranzi, Board Member, Financial Director of Credit Agricole Bank, commented.

Performing loan portfolio (net of provisions) showed a steady growth of +7% or +UAH 1.5 billion in comparison with the end of December 2018. Quality of the loan portfolio is confirmed on high level: bank’s NPL ratio is one of the lowest among banks in Ukraine (4%) and the coverage ratio remains extremely prudent (96%).

Credit Agricole Bank's deposits portfolio amounted to UAH 28.8 billion at the end of December 2019, having increased by +7%, or almost +UAH 2 billion in comparison with the end of December 2018 and confirming the appreciation of customers for bank's products. Customer deposits provide a comfortable level of liquidity to the bank, both in hryvnia and in foreign currency. Available liquidity buffer in hryvnia is placed in liquid instruments (CDs and T‑bills).

The bank continues to demonstrate a strong capital position with a capital adequacy ratio (N2) of 19.8%, well above the regulatory minimal level (10%).

Net banking income is increasing year-by-year (UAH 3.6 billion at the end of 2019, +4% more than in the 2018). The bank has demonstrated growth in main components of net banking income, which confirms effectiveness of the bank’s business model and consistency of strategy implementation. Other NBI decreased vs 2018 on lower Trading results mainly linked with more stable exchange rates and lower FX spreads.

Operating expenses of the bank increased in comparison with 2018 on staff charges (labor market pressure continues) mainly. Growth of other expenses by +UAH 73 million or +13% was mainly due to the significant investments into bank’s transformation and development.

Cost to income ratio of Credit Agricole Bank remains one of the lowest among Ukrainian universal banks, and did not deteriorate in a context of pressure on general expenses and investments.

Cost of risk is positive in 2019 (+163 million for 2019 vs -269 million for 2018), thanks to successful NPL management (recoveries, repayments and sales of well-provisioned cases) and prudent risk policy

Annex 1

Summary Income Statement*
(UAH million)

Item	2018	2019	2019 vs 2018
Net Banking Income	3 426	3 558	131	4%
NII	2 330	2 483	153	7%
Commissions	703	734	31	4%
Other NBI	393	340	-53	-13%
Operating Expenses	-1 382	-1 607	-224	16%
Staff charges	-806	-956	-151	19%
Other expenses	-577	-650	-73	13%
Gross Operating Income	2 044	1 951	-93	-5%
Cost of Risk	-269	163	433	-161%
Result before taxes	1 775	2 114	340	19%
Taxes	-312	-384	-72	23%
Net Result	1 463	1 730	267	18%

Annex 2

Short Balance Sheet*
(UAH million)

Item	Dec-2018	Dec-2019	Dec-2019 vs Dec-2018
Assets
Cash and cash equivalents	8 217	6 874	-1 344	-16%
Due from other banks and the NBU	1 091	2 485	1 394	128%
Securities and investments	1 000	1 458	458	46%
Gross Loans and advances to customers	23 953	25 061	1 109	5%
Corporate loans	20 096	20 169	74	0%
Private individuals loans	3 857	4 892	1 035	27%
Provisions	-2 266	-1 837	429	-19%
Loans net of provisions	21 686	23 224	1 538	7%
Other assets	795	1 261	467	59%
Total assets	32 789	35 302	2 513	8%
Liabilities
Due to other banks	6	7	1	14%
Customer deposits	27 054	28 813	1 759	7%
Corporate deposits	20 107	21 541	1 434	7%
Private individuals deposits	6 947	7 272	325	5%
Other liabilities	463	648	185	40%
Subordinated debts	1 065	679	-386	-36%
Total liabilities	28 587	30 146	1 559	5%
Equity	4 201	5 156	955	23%
Total equity and liabilities	32 789	35 302	2 513	8%

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 corporate communications Credit Agricole Bank.

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

* Credit Agricole Bank’s preliminary Financial Statements are elaborated according to IFRS. Additionally, the detailed annual financial statements will be published on the bank's website.

Business hours of Credit Agricole outlets during the Christmas holidays