02.08.2019

Results for the second quarter and first half of 2019

Q2-19: Business lines deliver increased revenues

Crédit Agricole S.A.

Underlying[1] revenues

Q2: €5,179m
+0.6% Q2/Q2
H1: €10,081m
+0.4% H1/H1

Underlying net income[2]

Q2: €1,242m
-12.4% Q2/Q2
H1: €2,038m
-7.6% H1/H1

 CET1 ratio

11.6%
+0.1 pp in Q2, well above the MTP target

  • Q2 stated net income1 €1,222m, -14.9% Q2/Q2 (H1: €1,985m, -13.4% H1/H1), down compared to Q2-18, marked by net reversals in cost of risk in CIB, and at the highest level since Crédit Agricole S.A.’s IPO.
  • Good performance in the business lines, stable underlying net income1 of business lines H1/H1.
  • Underlying EPS: Q2 €0.40, -14.1% Q2/Q2, H1 €0.63, -9.8% H1/H1; ROTE[3] 11.0% H1 annualised
  • Increased revenues in the business lines despite a challenging market environment
  • Costs under control while financing development projects: underlying1 cost/income ratioexcluding SRF[4]at 58.6%, positive jaws effect for the business lines.
  • Cost of risk still low: 25bp[5], one-off provisions in CIB.
  • CET1 ratio up to 11.6% in Q2, making a first unwinding of the Switch possible in 2020.
  • First achievements of the 2022 Medium-Term Plan: development of non-Group partnerships (Abanca, Banco BPM, FCA), acceleration in green finance, CAA becomes the #1 life insurer in France.

Crédit Agricole Group*

Underlying7 revenues

Q2: €8,534 m
+1.6% Q2/Q2
H1: €16,857 m
+1.2 H1/H1

 

Underlying net income2

Q2: €1,846 m
-10.2% Q2/Q2
H1: €3,281 m
-3.7% H1/H1

CET1 ratio

15.4%
+0.1 pp in Q2
5.9 pp above the SREP[6]

  • Stated net income2 for Q2: €1,813m, -12.7% Q2/Q2 (H1: €3,163m, -9.8% H1/H1)
  • Operating expenses excluding SRF4 under control over H1 (+1% H1/H1), SRF expenses up (+9.4% H1/H1)
  • Cost of credit risk low at 19bp5, one-off provisions in CIB and in the Regional Banks
  • Increase in Regional Bank underlying revenues of +2.8% H1/H1

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

  1. In this press release, “underlying” refers to intermediary balances adjusted for the specific items described on p. 16 and onwards
  2. Net income Group share
  3. Underlying, excluding specific items. See p. 16 and onwards for more details on specific items and p. 26 for the ROTE calculation
  4. Contribution to the Single Resolution Fund (SRF)
  5. Average over last four rolling quarters, annualised
  6. According to the 9.5% SREP requirement (including countercyclical buffer)