Results for the fourth quarter and full year 2018

Fourth quarter and full year 2018 results

Very good results, solid and balanced

Crédit Agricole S.A.

Stated net income1

Q4: €1,008m
x2.6 Q4/Q4
 2018: €4,400m
+20.6% 2018/2017

Stated net revenues

Q4: €4,853m
+4.3% Q4/Q4
2018: €19,736m
+5.9% 2018/2017

Fully-loaded CET1 ratio

stable in Q4, well above
 the MTP target (11%)

  • Less favourable environment in Q4, primarily for activities related to financial markets
  • High underlying net income2 with further strong growth: Q4 €1,067m, +21.6% Q4/Q4; 2018: €4,405m, +12.2% 2018/2017
  • 2018 ROTE2 12.7%; earnings per share2: Q4 €0.33, +24.2% Q4/Q4; 2018 €1.39, +13.8% 2018/2017;
  • Dividend proposed at the Shareholders’ Meeting increased by +9.5% 2018/2017 to €0.69
  • High level of activity and income for all the Group's business divisions in 2018, despite the unfavourable market impact in Q4 on asset management and market activities
  • Good cost control: positive jaws effect2 excluding SRF3 > 1pp 2018/2017, in most business lines;
  • C/I ratio2 improved by 0.7pp 2018/2017 to 62.1%
  • Cost of credit risk still very low and declining: 23bp4 (-6bp Q4/Q4); provision for non-specific legal risk of €75m in Q4
  • 2019 MTP5 objectives already reached for NI, ROTE and CET1; new 2022 MTP to be presented on 6 June 2019

Crédit Agricole Group*

Stated net income1

Q4: €1,571m
+70.3% Q4/Q4
2018: €6,844m
+4.7% 2018/2017

Stated net revenues

Q4: €8,110m
+0.8% Q4/Q4
2018: €32,839m
+2.3% 2018/2017

Fully-loaded CET1 ratio

up 10bp in Q4
550bp above the P2R6

  • Sharp increase in stated net income linked to a favourable base effect, in particular the tax surcharge in Q4-17
  • 2018 underlying2 net income1: €6,849m, -3.8% 2018/2017 after a sharp increase in the SRF3, a negative scope effect and a slight increase in the cost of risk ; Q4 : €1,626m, -3.9% Q4/Q4
  • Cost of risk still at a very low level, at 18 bp4
  • Regional Banks (IFRS): negative impact of portfolio valuations in Q4 and a sharp rise in the cost of risk due to collective provision write-backs in 2017, but increase in business revenues and stabilisation of interest revenues

* Crédit Agricole S.A. and Regional banks at 100%

  1. Net income Group share
  2. Underlying, excluding specific items. see p. 16 and following pages for more details on specific items and p. 26 for the ROTE calculation
  3. Contribution to the Single Resolution Fund (SRF)
  4. Average over last four rolling quarters, annualised
  5. Medium Term Plan; the MTP 2020 was published in March 2016 and set financial targets until 2019.
  6. According to pro forma P2R for 2019 of 9.5% as notified by the ECB (excl. countercyclical buffers)