08.11.2017

Results 3rd quarter : "the Group's overall performance was in line with our Medium-Term Plan targets" by Jérôme Grivet

On 8 November, Crédit Agricole S.A. published its and the Group's results for the third quarter and first nine months of 2017. Jérôme Grivet, Deputy General Manager, Chief Financial Officer
decrypts for us.

Newsroom Credit Agricole : Jérôme Grivet good morning,
Jérôme Grivet : Good morning,

Newsroom Credit Agricole : You are the Deputy General Manager in charge of Group Finance, what are the highlights of these results?
Jérôme Grivet : For the first 9 months of 2017:

  • For Crédit Agricole Group, which encompasses all the Regional Banks and Crédit Agricole S.A., stated net income Group share was €5.6 billion, already higher than for the whole of 2016. Excluding specific items, underlying net income Group share was €5.4 billion, an increase of +15.3 % compared with the first nine months of 2016.
  • For Crédit Agricole S.A., stated net income Group share came to almost 3.3 billion, similar to the first nine months of 2016 even though last year's figure included the €1.27 billion gain on the operation to simplify the Group's structure. Last year's non-recurring gain was therefore offset this year by the consolidation of Pioneer Investments and healthy organic growth in the various business lines.

When restated for specific items, underlying net income Group share came to more than €3 billion, an increase of +36.6 % compared with the first nine months of 2016, a true reflection of the Group's growth. For the third quarter, stated net income was €1.9 billion for the Group and almost €1.1 billion for Crédit Agricole S.A. The Group's financial solidity remained strong, with a fully-loaded Common Equity Tier 1 (CET1) ratio of 14.9% for Crédit Agricole Group, down 10 basis points compared with end-June 2017, but up 30 basis points compared to end june proforma of Pioneer intégration. For Crédit Agricole S.A. the CET1 ratio was 12.0%, up 30 basis points, also proforma of Pioneer integration.

Newsroom Credit Agricole : You mentioned the Group's business lines, could you tell us a bit more about their activity?
Jérôme Grivet : Business momentum remained healthy in all our business lines and enabled us to finance investment in our future development:

  • In Property & casualty insurance, the number of in-force contracts increased by 6%, year on year, to 12.8 million. In life insurance, asset under management were up 3% over nine months, with the store of unit-linked assets increasing by almost 2 percentage points over one year.
  • In asset management, assets under management rose to 1 400 billion thanks to the consolidation of Pioneer and strong inflows of €60 billion over nine months.
  • Retail banking once again delivered strong grouth in both loans and customer savings  over one year, particularly in France and Italy, with growth of +9.7% in loans and + 5.2% in customer savings  for LCL, and +7.1% and +4.8% respectively for Italy. The Regional Banks also performed well, with +6% growth in loans and +4.6% in customer savings.
  • Specialised financial services stepped up their development, year on year, with growth of +7.1% in the Consumer finance managed loan book driven by sustained momentum in the Group's banks and the car finance partnerships, and growth of +7.4% in factoring and +3.6% in leasing.
  • Lastly, Large customers delivered a solid nine-month performance, with growth in both revenues and net income Group share. However, revenues were down in the third quarter compared to the third quarter of 2016 , as capital markets activity were particularly buoyant after the Brexit vote.

Newsroom Credit Agricole : To sum up ?
Jérôme Grivet : The Group's overall performance was in line with our Medium-Term Plan targets. Results for the first nine months and third quarter of 2017 remain high despite investment in future growth. We have further strengthened our financial robustness while absorbing disciplined and profitable acquisitions.

Newsroom Credit Agricole : Thank you very much Jéro^me Grivet,
Jérôme Grivet : Thank you.