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Crédit Agricole Group*
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Underlying revenues[1]
Q1: €8,378m
+0.7% Q1/Q1
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Underlying net income Group share1
Q1: €981m
-31.6% Q1/Q1
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CET1 ratio
15.5%
-0.4pp Mar/Dec
+6.6pp above the SREP[2]
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- Q1 stated net income Group share: €908m (-32.8% Q1/Q1); stated revenues €8,366m (+2.1% Q1/Q1)
- Strong momentum across all business lines in Q1, production impacted by the crisis in March: increase in outstandings (+7% retail loans in France and Italy, +2.1% consumer finance managed loans, +2% life insurance, +3.5% asset management); gross retail customer capture France and Italy: 416,000 customers since the start of 2020.
- Increase in cost of risk (at €930m, x3.3 Q1/Q1), driven primarily (61% of the increase) by provisioning on performing loans (€398m in Q1). Annualised cost of risk on outstandings 40bp (x3.1 Q1/Q1); Stable NPL ratio (2.4%), increase in coverage ratio (84.3%, +1.7pp vs. Dec. 19). Loan loss reserves: €19.5bn.
- Very strong solvency (buffer to SREP requirements increased from 6.2pp to 6.6pp).
- Mobilisation of the Group’s structural strengths to assist its clients through the crisis: all services fully operational (9 out of 10 branches are reachable), acceleration of technological innovations (remote claims management), strong social commitment by the Group (>€70m in donations via solidarity funds).
- Voluntarily supporting public authorities' strategy over the crisis: €3.6bn loan moratoria granted to corporates and more than 81,000 applications (€13.5bn) in state-guaranteed loans processed as at 21/04; €10bn aid programme at CA Italia; €210m cooperative support mechanism for professional multi-risk insurance policyholders.
- Regional Banks: underlying net income1 under French accounting standards €583m (-22.3% Q1/Q1), underlying net income 1 €321m (-51.7% Q1/Q1). Strong underlying activity revenues. Increase in cost of risk (x5.5) linked to 68.5% of the performing loans provisioning; annualised cost of risk on outstandings still low (23bp).
.* Crédit Agricole S.A. and 100% of Regional Banks.
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Crédit Agricole S.A.
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Underlying revenues1
Q1: €5,137m
+4.8% Q1/Q1
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Underlying GOI1
Q1: €1,583m
+7.9% Q1/Q1
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Underlying net income Group share1
Q1: €652m
-18.1% Q1/Q1
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CET1 ratio
11.4%
-0.7pp Dec/Sept,
+3.5pp above the SREP[3]
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- Stated result: €638m (-16.4% Q1/Q1); stated revenues: €5,200m (+7.1% Q1/Q1), stated GOI: €1,586m (+11.7% Q1/Q1)
- Increase in underlying GOI (+7.9% Q1/Q1), thanks to revenue resilience (+4.8%), despite the decrease in the fair value through profit and loss in insurance, and to control of expenses excluding IFRIC 21 (+2.5%);
- Increase in cost of risk (at €621m, x2.8 Q1/Q1), driven primarily (56% of the rise) by provisioning on performing loans (€223m in Q1). Annualised cost of risk on outstandings 61bp (x2.6 Q1/Q1); Stable NPL ratio (3.1%), increase in coverage ratio (72.4%, +2.3pp vs. Dec. 19); loan loss reserves: €9.6bn.
- CET1 ratio down (-0.7pp) to 11.4%, including the unwinding of 35% of the Switch mechanism (-44pb), the impact of the allocation of the 2019 dividend to reserves following the ECB’s recommendation (+60bp) and the impact of adverse market effects on OCI reserves on securities portfolios (-33bp). Buffer to requirements in Q1 at 3.5pp.
- Underlying EPS: Q1-2020 €0.17, -25.0% Q1/Q1.
- Liquidity indicators up (€338bn in reserves at 31/03/20, increase by €40bn vs. 31/12/20).
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Footnotes
[1] The term “underlying” refers to intermediary balances adjusted for the specific items described on p.23 onwards
[2] Based on SREP requirement of 8.9% at 02/04/2020 (including France’s counter-cyclical buffer, applicable from 02/04/2020).
[3] Based on SREP requirement of 7.9% at 02/04/2020 (including France’s counter-cyclical buffer, applicable from 02/04/2020).
