06-05-2020

First Quarter 2020 Results

Crédit Agricole absorbs the Covid-19 impact and is mobilised for the economy          

First Quarter 2020 Results

Crédit Agricole Group*

Underlying revenues[1]

Q1: €8,378m
+0.7% Q1/Q1
 

Underlying net income Group share1

Q1: €981m
-31.6% Q1/Q1

CET1 ratio

15.5%
-0.4pp Mar/Dec
+6.6pp above the SREP[2]

  • 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.  

Crédit Agricole S.A.

Underlying revenues1

Q1: €5,137m

+4.8% Q1/Q1


 

Underlying GOI1

Q1: €1,583m
+7.9% Q1/Q1

Underlying net income Group share1

Q1: €652m
-18.1% Q1/Q1
 

CET1 ratio

11.4%
-0.7pp Dec/Sept,

+3.5pp above the SREP[3]

  • 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).  

Footnotes

 

[1] In this press release, 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).

Adoption of Wiztopic’s Blockchain Certification Platform
In order to safeguard its communication, Crédit Agricole certifies its contents with Wiztrust since February 20, 2020. You can check the authenticity of our information on the website www.wiztrust.com.

Our press contacts