Outstanding financial strength and robustness of the banking model in the face of wartime challenges

Since the beginning of 2023, the assets of Credit Agricole Bank increased by UAH 19.3 billion to UAH 91.9 billion (+27% vs Dec-22), of which the total loan portfolio according to the results of the 3rd quarter amounted to UAH 28.3 billion, including UAH 24.3 billion to legal entities.

Loan portfolio back to growing trend since Jul-23 on specialized lending programs to support our business clients, in particular agricompanies. The Bank actively participates in “Affordable loans 5-7-9%”¹ (4.9 bUAH portfolio as of Sep-23), Risk sharing program with the Government² (0.8 bUAH portfolio as of Sep-23) and Risk sharing program with the European Bank for Reconstruction and Development³ (1.1 bUAH portfolio as of Sep-23). At the same time, almost 50% of the Bank’s loan portfolio was granted to the country’s key sector – agriculture, where the Bank maintains leadership in supporting agribusiness by financing the sowing and harvesting campaign. Furthermore, Credit Agricole holds a prominent position in the consumer automotive lending sector, having disbursed almost UAH 1.5 billion in new loans since the beginning of the year. As of the first 9 months of 2023, the bank maintains a significant market share of 27% in the automotive industry.

The resource base for the three quarters increased by UAH 16.7 billion and almost reached UAH 80.7 billion (+26% vs Dec-22), of which more than UAH 63.8 billion were the funds of legal entities and UAH 16.9 billion – funds of private individuals. Despite the war, the volume of customer funds in Credit Agricole Ukraine continues to grow, which confirms the satisfaction and trust of our customers in a reliable international partner.

Credit Agricole Ukraine is the oldest foreign bank in Ukraine, which for more than 30 years has been a reliable partner taking care of its customers, employees and society. Since March 2023, the Bank has been included in the list of systemically important banks, which indicates the importance of Credit Agricole for the Ukrainian economy.

Strong capital and liquidity positions

The bank's liquidity position was maintained at a high level, both in hryvnia and in foreign currency (LCR at the level of 262% & NSFR at the level of 358% against 100% of the regulatory requirement).

In addition, the bank has a strong capital position with a capital adequacy ratio (N2) of 28.45% as of Sep 2023, well above the regulatory minimum (10%). During Q3-23, the regulatory capital of Credit Agricole Bank increased by UAH 1.5 billion and exceeded UAH 8.8 billion.

Exceptional operational efficiency: cost/income ratio at 27%

For 9M-23, Credit Agricole Ukraine reported a strong level of Net banking income of 6.5 bUAH (+45% vs YtD-22) mainly driven by high Net interest income resulting from a strong liquidity position and a growing deposit base.

Operating expenses for 9M-23 reached 1.7 bUAH. Staff charges increased by +16% YoY reflecting the bank’s responsible human resources policy. Other expenses increased by +20% YoY due to accelerated investments into IT infrastructure for uninterrupted operations (power generators in branches and the head office, Cloud), development of mobile applications for individuals and IT Professional clients and enhancement of Internet banking solution for legal entities (CORPEX).

Along with this, the bank maintains a prudent approach to provisioning and booked 1.9 bUAH of provisions in 2023, achieving a Loan coverage ratio of 28.4%. Nevertheless, most of the provisioning has already been done, therefore asset quality is stabilizing and NPL ratio has been consistently decreasing for three consecutive months, reaching 14.4% as of September 2023 (+1.1 pts compare to December 2022).

Net profit of Credit Agricole Bank for the first nine months of the year amounted to UAH 2.3 billion. These exceptional results demonstrate Credit Agricole Ukraine’s ability to adjust to a less favorable environment and its usefulness to both society and its clients.

Social responsibility and support for society and employees

For 7 years now, the bank has been implementing charitable projects in Ukraine as part of the We Care! program. During the war, Credit Agricole confirmed its active social stance. Credit Agricole Ukraine and the Group allocated UAH 72 million to various charity projects, mainly for the purchase of medical equipment for hospitals with the support of the Charity Foundation “Your support”. Among the most recent good deeds – donation of state-of-the-art medical equipment worth over UAH 16,000,000 in total to four regional hospitals in Khmelnytskyi, Vinnytsia, Chernihiv and Dnipro. All the equipment was purchased at the request of the medical institutions to meet their current needs to the maximum, especially during surgeries.

Credit Agricole currently employs 2,200 people. As a socially responsible employer, the bank is doing everything it can to support its employees: no layoffs, full payment of salaries, insurance, including online medical assistance, additional support for those affected by the war, relocation of employees to safer regions and professional psychological assistance.

The Credit Agricole Group continues to provide full support to all its employees, allocating almost 2,150 million euros since the beginning of the war.

Annex 1

Summary Income Statement^*
(UAH million)

Annex 2

Short Balance Sheet^*
(UAH million)

¹ The state program to support business and compensates part of the interest rate on the loan, thus reducing the client's rate under the contract. More information https://business.diia.gov.ua/marketplace/5-7-9-program/5-7-9-program

² The state program where bank provides a loan to the borrower, and the state ensures its return to the bank in the amount of 80% of the whole financing.

³ At the end of November 2022, Credit Agricole signed a risk sharing agreement with the the EBRD for EUR 50 million. It will enable the bank to offer funding to the essential industries of Ukrainian economy More information https://credit-agricole.ua/en/o-banke/pres-centr/novini/kredi-agrikol-pidpisav-ugodu-z-yebrr-pro-pidtrimku-finansuva-1402

^* 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.