Excellent financial results of Crédit Agricole Bank for 9 months 2019*

31 October 2019

Credit Agricole Bank demonstrates positive dynamics of financial performance in 2019. This trend confirms the stability and reliability of the bank.

"2019 is the first year of the New Medium Term Plan 2019-2022 and the bank is confirming its capacity of achieving excellent financial performance with a Net result for the 9 months 2019 above 1.3 billion. Credit Agricole Bank is one of the main sources of financing for companies, especially for international companies and agro businesses, as well as retail clients seeking a higher level of service. To meet our customers' needs, we continue to invest in improving our processes, both offline and digital", - Giorgio Sopranzi, Member of the Management Board, Financial Director of Credit Agricole Bank commented.

Performing loan portfolio (net of provisions) showed a steady growth of +22% or +UAH 4.9 billion in comparison with the end of December 2018. Quality of the loan portfolio confirmed on high level: bank’s NPL ratio is one of the lowest among banks in Ukraine (4.4%) and the coverage ratio remains extremely prudent (95.2%).

Crédit Agricole Bank's deposits portfolio amounted to UAH 29.9 billion at the end of September 2019, having increased by +11%, or by +UAH 2.9 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 16.2%, well above the regulatory minimal level (10%).

Net banking income is increasing year-by-year (UAH 2.7 billion at the end of September 2019, +10% more than in the same period of 2018). The bank has demonstrated growth in all components of net banking income, which confirms effectiveness of the bank’s business model and consistency of strategy implementation.

Operating expenses of the bank increased in comparison with the 9 months 2018, mainly on staff charges (labor market pressure continues). Growth of other expenses by +UAH 71 million or +17% was mainly due to the significant investments into bank’s transformation and development.

Cost to income ratio of Crédit 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.

Globally, despite the context, Gross Operating Income is keeping to increasing trend (+2% in comparison with 9 months 2018).

Cost of risk is positive in 2019 (+129 million for 9 months 2019 vs -36 million for 9 months 2018), due to active work on non-performing loans, prudent risk policy and efficient collection of bad debts.

Net profit for the 9 months of 2019 was +UAH 1 332 million, which is +12% or +UAH 147 million above the 9 months 2018 net profit.

Annex 1
Summary Income Statement*
(UAH million)

Item	9M-18	9M-19	9M-19 vs 9M-18
Net Banking Income	2 466	2 701	235	10%
NII	1 629	1 787	159	10%
Commissions	569	643	73	13%
Other NBI	268	271	3	1%
Operating Expenses	-991	-1 204	-213	21%
Staff charges	-583	-725	-142	24%
Other expenses	-408	-479	-71	17%
Gross Operating Income	1 475	1 497	22	2%
Cost of Risk	-36	129	165	-457%
Result before taxes	1 439	1 626	187	13%
Taxes	-254	-294	-40	16%
Net Result	1 185	1 332	147	12%

Annex 2
Short Balance Sheet*
(UAH million)

Item	Dec-18	Sep-19	Sep-19 vs Dec-18
Assets
Cash and cash equivalents	8 217	4 703	-3 514	-43%
Due from other banks and the NBU	1 091	2 580	1 489	136%
Securities and investments	1 000	1 247	247	25%
Gross Loans and advances to customers	23 953	28 437	4 484	19%
Corporate loans	20 096	23 811	3 715	18%
Private individuals loans	3 857	4 626	769	20%
Provisions	-2 266	-1 887	379	-17%
Loans net of provisions	21 686	26 549	4 863	22%
Other assets	795	978	183	23%
Total assets	32 789	36 057	3 268	10%
Liabilities
Due to other banks	6	10	4	61%
Customer deposits	27 054	29 926	2 872	11%
Corporate deposits	20 107	23 264	3 157	16%
Private individuals deposits	6 947	6 662	-285	-4%
Other liabilities	463	684	222	48%
Subordinated debts	1 065	696	-368	-35%
Total liabilities	28 587	31 316	2 729	10%
Equity	4 201	4 741	540	13%
Total equity and liabilities	32 789	36 057	3 268	10%

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. The detailed quarterly financial statements is published on the bank's website.

Credit Agricole has signed the Charter on Financial Inclusion and Reintegration of Veterans