Results for the third quarter and the first nine months of 2019

Results for the third quarter and the first nine months of 2019

Results for the third quarter and the first nine months of 2019

Q3‑19: Results increasing strongly

Crédit Agricole S.A.

Underlying revenues[1]

Q3: €5,073 m
+4.9% Q3/Q3
9M: €15,154 m
+1.8% 9M/9M

Underlying net income[2]

Q3: €1,226 m
+8.2% Q3/Q3
9M: €3,264 m
-2.2% 9M/9M

CET1 ratio

+0.1 pp Sept/June, well above the MTP target

- Stated result Q3: €1,199 m, +8.9% Q3/Q3 (9M: €3,183 m, -6.2% 9M/9M), up significantly Q3/Q3;
- Underlying income1 increased (+8.2% Q3/Q3) as a result of buoyant commercial activity and improved operational efficiency;
- Underlying EPS: Q3 €0.34, -6.3% Q3/Q3, 9M €0.97 -8.6% 9M/9M; ROTE[3] 11.3% annualised over 9M;
- Increase in underlying revenue (+4.9% Q3/Q3 and +1.8% 9M/9M), as a result of buoyant customers capture, savings, loan and equipment;
- Significantly positive jaws effect (+340 bp Q3/Q3) and improvement in the underlying cost/income ratio excluding SRF[4] (by -2.0 pp to 59.6% in Q3 and -0.4 pp to 60.5% over 9M) despite development investments in the Asset Gathering business line;
- Cost of credit risk low: 29 basis points[5], normalisation of the cost of risk in CIB, Q3/Q2 decrease for CACF and CA Italy;
- CET1 ratio up +0.1 pp in Q3 to 11.7%, thanks in particular to the stability of organic risk-weighted assets in the business lines;
- Upgrade by Moody’s of Casa’s LT credit rating to Aa3;
- Continuation of implementation of the 2022 Medium-Term Plan: growing digitalisation of customer relations, increase in customer satisfaction, customer capture buoyant in France and Italy (+210,000 individual customers); issue of a €1 bn Green bond.

Crédit Agricole Group*

Underlying revenues1

Q3: €8,331 m
+2.9% Q3/Q3
9M: €25,188 m
+1.8% 9M/9M

Underlying net income2

Q3: €1,924 m
+6.0% Q3/Q3
 9M: €5,205 m
-0.3% 9M/9M

CET1 ratio

+0.1 pp Sept/June
+5.8 pp above SREP[6]

- Stated net income2 for Q3: €1,849 m, +4.5% Q3/Q3 (9M: €5,012 m, -5.0% 9M/9M);
- Operating expenses excl. SRF4 under control over 9M (+1.5% 9M/9M), cost/income ratio down (62.7%, -0.1 pp 9M/9M) 
- Cost of credit risk low at 20 basis points5, one-off provisions in CIB;
- Increase in the Regional Banks’ underlying revenues over 9 months (+1.9%), cost of risk stable at 12 bp.

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

This press release comments on the results for Crédit Agricole S.A. and for Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 56.6% of Crédit Agricole S.A. Please see p.17 onwards of this press release for details of specific items, which are restated in the various indicators to calculate underlying results. A reconciliation between the stated income statement and the underlying income statement can be found from p.23 onwards for Crédit Agricole Group and from p.19 onwards for Crédit Agricole S.A.

Crédit Agricole S.A.

Strong increase in underlying quarterly net income Group share

  • Underlying net income Group share: Q3-19 €1,226 m, +8.2% Q3/Q3, 9M-19 €3,264 m, -2.2% 9M/9M, increase in business line results (excluding Corporate Centre) (+6.8% Q3/Q3, +2.4% 9M/9M);
  • Solid contributions from the Asset Gathering division, GOI still strong in French Retail Banking, and strong growth (+24%) in the contribution of CA Italia, good cost control and strong contribution from automotive partnerships in Specialised Financial Services, and solid performance in capital markets, with an increase in the contribution from Large Customers despite the reversal of the cost of risk in the division;
  • Over 9M-19, underlying net income Group share high (€3,264 m) despite the CC’s contribution being penalised by a high H1-18 base, the +2.0 pp increase in the corporate income tax rate, and the measured increase in the cost of risk, due to the normalisation in CIB;
  • Annualised underlying ROTE[7] 11.3%, good profitability in all business lines.

Increase in underlying revenues Q3/Q3 (+4.9%) and 9M/9M (+1.8%), as a result of dynamic commercial activity

  • String inflows in Asset management, Insurance, Wealth management and Asset servicing. Record net inflows for Amundi;
  • Property and casualty insurance outperforming the French market (6.8% increase in premiums Q3/Q3), increase in customer equipment rates (+1.5 pp for the Regional Banks Sept./Sept., +1.2 pp for LCL);
  • Continued growth in loans and customer savings, increase in equipment rates, and continuing momentum of customer capture in Retail Banking (+210,000 individual customers since the end of 2018 (+156,000 at the Regional Banks, +40,000 at LCL, +16,000 at CA Italia);
  • Strong performance of the automotive partnerships, generating equity-accounted income;
  • Commercial activity strong in capital markets, commercial banking positions maintained in a slowing syndicated loan market in the eurozone.

Very positive jaws effect (+340 bp) and improvement in the cost/income ratio

  • Underlying costs: +1.5% Q3/Q3, due in particular to the development of international and corporate insurance. Positive jaws effect in the Retail banking and Large customer business lines. Costs stable in Specialised financialsServices.
  • Underlying cost/income ratio at 59.6% (-2.0 pp) in Q3, and 60.5% over 9M (-0.4 pp);
  • Cost of risk low, at 29 bp, normalisation in CIB, down at CACF and at CA Italia:

Financial strength confirmed this quarter

  • CET1 ratio at 11.7%, +0.1 pp Sept/June, risk-weighted assets stable in the business lines;

Continuing implementation of the 2022 Medium-Term Plan

  • Increase in NPS[8] in Retail banking, digital interaction with customers strengthened, customer capture buoyant in France and Italy (+210,000 individual customers since the end of 2018).
  • Issuance of a non-preferred senior Green bond for €1 billion in October.
  • Upgrade by Moody’s of Crédit Agricole S.A.’s long-term credit rating to Aa3.


[1] In this press release, the term “underlying” refers to intermediary balances adjusted for the specific items described on p.17 and onwards
[2] Net income Group share
[3] Underlying, excluding specific items, see p. 17 onwards for more details on specific items and p. 27 for the calculation of the ROTE
[4] Contribution to the Single Resolution Fund (SRF)
[5] Average over last four rolling quarters, annualised
[6] Based on the 9.7% SREP requirement (including countercyclical buffer)
[7] See calculation of ROTE p. 27; annualised rate calculated without restating IFRIC21 charges, taking into account AT1 coupons deducted directly from Group net equity; RONE of the divisions and business lines calculated using the same method
[8] Net Promotor score, calculated by Institut BVA (H1-2019) and corresponding to the gap between promoters and detractors.

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