Results for the
second quarter and first half of 2018
Q2-18: highest net
profit[1] since IPO
Crédit Agricole S.A. |
Stated
net income Group share
Q2: €1,436m
+6.4% Q2/Q2
H1: €2,292m
+4.4% H1/H1 |
Stated revenues
Q2: €5,171m
+9.8% Q2/Q2
H1: €10,081m
+7.1% H1/H1 |
Fully-loaded CET1 ratio
11.4%
stable in Q2, well above
the MTP target |
-
Underlying1 net income[2] Q2
€1,418m, +19.6% Q2/Q2 (H1: €2,205m, +5.9% H1/H1), the highest level since IPO
-
At constant scope and exchange
rates[3]: increase
of +23.8% Q2/Q2 and +16.1%
H1/H1
-
Earnings per share1: Q2 €0.46, +21.3% Q2/Q2, H1
0.70€, +7.2% H1/H1; ROTE1
13.1% on annualised H1
-
Contribution to growth by all
CASA divisions and the Corporate Centre, with a particularly
high level of profitability in CIB
-
Excellent control of underlying
costs excluding SRF[4]:
scissors effect of 4pp Q2/Q2, 5pp at constant scope and exchange
rates, improvement in C/I ratio1 of >2pp Q2/Q2 and nearly 3pp at
constant scope and exchange rates
-
Still a very low cost of credit
risk, with further decline: 26bp[5] (-9bp
Q2/Q2)
-
Fully-loaded CET1 ratio
stable in Q2 despite the increase in RWA linked to the activity
and several jumbo deals in CIB; Reminder:
target CET1 of 11% in the medium-term plan
|
Crédit Agricole Group* |
Stated
net income Group share
Q2: €2,076m
-1.4% Q2/Q2
H1: €3,505m
-5.4% H1/H1 |
Stated revenues
Q2: €8,428m
+6.3% Q2/Q2
H1: €16,686m
+3.1% H1/H1 |
Fully-loaded CET1 ratio
14.8%
+20 pb in Q2
+530bp above the P2R[6]
|
-
Very strong, good quality activity in all
business lines: Retail banking, specialised businesses and the
Large customers division
-
Underlying1 net income2
Q2: €2,056m, +2.0% Q2/Q2 (H1: €3,408m, -7.2%
H1/H1 but +3.0% like-for-like3 and excl. SRF)
-
Acquisitions and
partnerships: good progress made in integration, new operations
with the acquisition of
Banca Leonardo and announced partnerships in consumer finance with
Bankia and bancassurance with Creval
-
Decrease in cost of credit
risk to 18bp5 (Regional Banks: -€176m in Q2-18, vs. net
reversals in Q2-17)
* Crédit Agricole S.A. and Regional Banks at
100%. |
This press release comments on
the results of Crédit Agricole S.A. and those of
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 from
p. 15 onwards for
details of specific items which, after restatement for the various
related intermediary balances, are used to calculate underlying
results. A reconciliation between the stated income statement and
the underlying income statement can be found from
p. 21 onwards for
Crédit Agricole Group and from p. 17 onwards for
Crédit Agricole S.A.
Crédit Agricole Group
Crédit Agricole Group's second quarter net income
was the highest quarterly level since IPO, surpassing the two
billion mark, as it did in the
second quarter of 2017, to reach
€2,076 million. This can be attributed to strong business
trends, driven by cross-sales and in particular excellent cost
control. It reflects, in respect of underlying income, a positive
two-point scissors effect excluding the contribution to the Single
Resolution Fund (SRF) and an improvement of more than one point in
the cost/income ratio excluding SRF. Most of the Group's business
lines contributed to this improvement in operating efficiency, with
the exception of retail banking, for which interest margins in
France and Italy continued to come under pressure from low interest
rates. The Regional Banks nevertheless succeeded in slightly
increasing their underlying revenues, while LCL generated
underlying revenue growth of +2.1%. The
Large customer Division saw a sharp increase in revenues
over the quarter of +11%, excluding the forex effect, thanks to
excellent business levels in the financing activities. The
successful integration of recent acquisitions (Pioneer, the three
Italian banks, acquisitions in wealth management) are again set to
compensate for the still negative impact of disposals in 2017,
notably BSF and Eurazeo. The cost of risk seems to have increased
in relation to a very low comparison base in the
second quarter of 2017, during which the
Regional Banks saw significant provision reversals. The high
level of result this quarter is therefore fully attributed to the
increase in revenues and the cost control. The fully-loaded Common
Equity Tier 1 ratio at end-June 2018 increased by
+20 basis points compared to the end of March at
14.8%, 530 basis points above the required regulatory
level[7].
In line with the "Strategic
Ambition 2020" medium-term plan (MTP), the Group's stable,
diversified and profitable business model drove organic growth in
all its business lines, largely through synergies between the
specialised business lines and the retail networks and ensured a
high level of operating efficiency while generating leeway to
invest in development.
Acquisitions and
new partnerships have been finalised or announced since the
last quarterly publication:
-
the acquisition of 94.1% of private Italian bank
Banca Leonardo was finalised on 3 May; it
contributed €5.1 billion in assets under management to the
wealth management business line;
-
new car finance partnerships were signed by
FCA Bank, the joint venture between
CA Consumer Finance (CACF) and Fiat Chrysler,
notably with the manufacturer Aston
Martin;
-
CACF also announced a
partnership with banking group Bankia in Spain (8.1 million customers) to
create a joint venture there to extend CACF's European presence and
offer Bankia's customers CACF's personal financing products;
-
CA Assurances (CAA)
put into action its new strategy to extend its
distribution to partnerships internationally outside the
Crédit Agricole Group by signing a draft
bancassurance partnership agreement with Credito Valtellinese (Creval, 1 million customers)
in Italy; the exclusive 15-year distribution agreement covering the
savings and death & disability products of CA Vita, CAA's
wholly-owned Italian subsidiary, will give rise to the acquisition
of 100% of the Creval insurance brokerage for €70-80 million;
this has already been secured through a 5% stake by CAA in the
capital of Creval.
In the
second quarter of 2018,
Crédit Agricole Group's stated
net income Group share came to €2,076 million versus €2,106 million in the
second quarter of 2017.
Specific
items for the quarter had a limited net impact this quarter on
net income Group share, which reached +€20
million, notably the cost of integrating
Pioneer Investments in Amundi in the amount of
-€4 million (-€8 million before tax and minority
interests), a provision reversal on the integration costs of the
three Italian banks in the amount of +€9 million (+16 before tax
and minority interests), a -€5 million fine imposed by the ECB
on Crédit Agricole S.A. and two of its subsidiaries for
failure to comply with ECB notification deadlines regarding to
capital increases and a net balance of +€19 million in recurring
volatile accounting items, namely the DVA[8] in the
amount of +€8 million and hedges of the loan portfolios of the
Large Customers division for +€12 million. In the
second quarter 2017, specific items had an impact on
net income Group share of +€91 million, notably a positive impact from the
disposal of ownership interests in Eurazeo (+€107 million in
equity-accounted entities), a negative effect of the adjustment of
liability costs for the Regional Banks coming to -€148 million
(-218 in pre-tax revenues), a gain on long-term funding
restructuring operation carried out in June 2017 (+26 in
net income Group share, +39 in pre-tax revenues),
the integration costs of Pioneer Investments in the amount of
-€12 million (-24 before tax and minority interests) and a net
balance of +€118 million in net income Group share from recurring
volatile accounting items, namely issuer spread for -104 before
tax, the DVA (Debt Valuation Adjustment) for -13 hedges of the loan
portfolios of the Large Customers division for -16 and provisions
for home purchase savings plans in the amount of +300.
Excluding these specific items,
underlying
net income Group share[9] was
€2,056 million, representing an increase
of +2.0% compared with the second quarter of 2017.
At constant scope and exchange rates[10], the
increase in net income Group share was +4.1%,
reaching as high as +4.8% excluding the contribution to the Single
Resolution Fund, which increased sharply this year, and in the
second quarter (-€30 million compared with -€10 million
in the second quarter of 2017). This is the highest quarterly net profit since
Crédit Agricole S.A.'s IPO, i.e. before the financial
crisis. It is also worth noting that it surpasses
the two-billion-euro mark, as it did in the
second quarter of 2017, but the latter included net
provision reversals in respect of the Regional Banks
(+€35 million against net provisions of -€176 million in
the second quarter of 2018).
Table 1.
Consolidated results of Crédit Agricole Group in
Q2-18 and in Q2-17
€m |
Q2-18
stated |
Q2-17
stated |
Var. Q2/Q2
stated |
Q2-18
underlying |
Q2-17
underlying |
Var. Q2/Q2
underlying |
|
|
|
|
|
|
|
Revenues |
8,428 |
7,928 |
+6.3% |
8,402 |
7,940 |
+5.8% |
Operating expenses
excl.SRF |
(5,141) |
(4,987) |
+3.1% |
(5,149) |
(4,960) |
+3.8% |
SRF |
(30) |
(11) |
x
2.6 |
(30) |
(11) |
x
2.6 |
Gross operating income |
3,257 |
2,930 |
+11.2% |
3,224 |
2,968 |
+8.6% |
Cost of risk |
(397) |
(318) |
+25.0% |
(397) |
(318) |
+25.0% |
Cost of legal
risk |
(5) |
- |
n.m. |
- |
- |
n.m. |
Equity-accounted
entities |
80 |
226 |
(64.5%) |
80 |
119 |
(32.4%) |
Net income on other
assets |
17 |
(1) |
n.m. |
17 |
(1) |
n.m. |
Change in value of
goodwill |
- |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
2,953 |
2,837 |
+4.1% |
2,924 |
2,767 |
+5.7% |
Tax |
(734) |
(654) |
+12.3% |
(725) |
(666) |
+8.9% |
Net income from
discont'd or held-for-sale ope. |
(1) |
31 |
n.m. |
(1) |
31 |
n.m. |
Net income |
2,218 |
2,214 |
+0.2% |
2,198 |
2,132 |
+3.1% |
Non controlling
interests |
(142) |
(107) |
+31.7% |
(142) |
(117) |
+21.7% |
Net income Group Share |
2,076 |
2,106 |
(1.4%) |
2,056 |
2,015 |
+2.0% |
Cost/Income ratio excl.SRF (%) |
61.0% |
62.9% |
-1.9 pp |
61.3% |
62.5% |
-1.2 pp |
In the second quarter,
underlying net revenues increased by +5.8% compared to the
second quarter of 2017, reaching
€8,402 million, with all divisions contributing to growth,
including at constant scope and exchange rates
(+3.4%), therefore excluding the positive impact of the
integration of Pioneer on Asset gathering and of the three Italian
banks on Retail banking and restating the
second quarter 2017 from the contributions of BSF and
Eurazeo. The Insurance business line continued to shore up its
reserves (policyholders participation reserve - PPE) by applying a low recognition of its financial
margin this quarter, although its revenues grew significantly
(+6.9%) in relation to a very low comparison base in the
second quarter of 2017. Also of note is the very
good performance by the Corporate and Investment Banking division,
for which net revenues rose by +11% excluding the forex effect, in
relation to a high comparison base in the
second quarter of 2017. This performance was driven
primarily by the Financing activity (+17.3%) which benefited from
strong activity levels on its markets, the positive effect of the
rise in the oil price on the trade finance activity and several
jumbo deals.
The underlying
net revenue of the Regional Banks increased slightly by +0.5%,
i.e. excluding the impact in the
second quarter of 2017 of the reversals of
provisions on home purchase savings plans (+€125 million) and
the adjustment of liability costs (€218 million). The ongoing low
interest rates context continued to weigh on interest margin. This
negative development was only partly offset by the increase in
commission income (+1% versus the
second quarter of 2017), which accounts for more
than half of net commercial revenue.
In the second quarter, the
Regional Banks received their dividend share from
Crédit Agricole S.A. of €1,016 million, compared
with €958 million in the
second quarter of 2017; this income is nevertheless
eliminated from the contribution of the Regional Banks to the
Group's accounts.
Underlying
operating expenses excluding the contribution to the Single
Resolution Fund (SRF) continued to be tightly managed,
rising by +3.8% in relation to the
second quarter of 2017 and by just +0.8% at
constant scope and exchange rates. The
positive scissors effect therefore stands at
+2.0 percentage points, and even +2.6
percentage points at
constant scope and exchange rates.
The underlying
cost/income ratio excluding the SRF improved therefore by more than
one point to 61.3% compared to the
second quarter of 2017, and by nearly 2 points
at constant scope and exchange rates. The
underlying gross operating income including the SRF contribution
increase by +8.6% compared to the
second quarter 2017.
The cost of
credit risk rose by +25.0% to €397 million versus
€318 million in the
second quarter of 2017. This increase obscures an
actual decrease excluding the provision changes recorded by the
Regional Banks (notably the net reversals of +€35 million in
the second quarter of 2017 versus net provisions of
-€176 million in the second quarter of 2018).
Excluding these movements, the decrease between the two quarters
comes from the specialised business lines of
Crédit Agricole S.A., notably the Large customers
division. The cost of credit risk relative to outstandings fell
again from an already low level to 18 basis points[11] versus
21 basis points in the
second quarter of 2017.
Including the contribution of
€80 million from equity-accounted entities, down -32.4%
due to the deconsolidation of BSF (contribution of €59 million in
the second quarter of 2017) and non-material gains
or losses on other assets, underlying pre-tax
income rose by +5.7% compared to the
second quarter of 2017, reaching €2,924 million
(+6.5% at constant scope and exchange rates).
The capital gain on the sale of
Crédit Agricole Assurances' reinsurance subsidiary CARE for
€30 million in the second quarter of 2017
(under "Net income from held-for-sale operation") and a sharp
increase in the tax expense in relation to a very low base in the
second quarter of 2017 (+8.9%) explain the more modest increase of +2.0% in underlying net income
Group share to €2,056 million.
In the
first half of 2018, underlying
net income Group share decreased by -7.2% compared with the
first half of 2017 but by just -2.1% at constant scope and exchange rates and
increased by +3.0% at
constant scope and exchange rates excluding
SRF. Underlying revenues increased by +2.3%, with underlying
operating expenses excluding SRF up by +3.2% and the cost of credit
risk (excluding an unallocated legal provision of €40 million in
the first quarter of 2017) up by +2.8%. At constant scope and
exchange rates, underlying revenues and underlying expenses
excluding SRF remained nearly stable at +0.2% and +0.4%
respectively.
Table 2.
Crédit Agricole Group - Stated and underlying
results, H1-18 and H1-17
€m |
H1-18
stated |
H1-17
stated |
Var. H1/H1
stated |
H1-18
underlying |
H1-17
underlying |
Var. H1/H1
underlying |
|
|
|
|
|
|
|
Revenues |
16,686 |
16,177 |
+3.1% |
16,651 |
16,272 |
+2.3% |
Operating expenses
excl.SRF |
(10,484) |
(10,193) |
+2.9% |
(10,483) |
(10,161) |
+3.2% |
SRF |
(389) |
(285) |
+36.2% |
(389) |
(285) |
+36.2% |
Gross operating income |
5,813 |
5,699 |
+2.0% |
5,780 |
5,826 |
(0.8%) |
Cost of risk |
(818) |
(796) |
+2.8% |
(818) |
(796) |
+2.8% |
Cost of legal
risk |
(5) |
(40) |
(88.5%) |
- |
(40) |
(100.0%) |
Equity-accounted
entities |
179 |
443 |
(59.7%) |
179 |
336 |
(46.8%) |
Net income on other
assets |
38 |
(1) |
n.m. |
38 |
(1) |
n.m. |
Change in value of
goodwill |
86 |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
5,293 |
5,305 |
(0.2%) |
5,178 |
5,325 |
(2.8%) |
Tax |
(1,501) |
(1,442) |
+4.1% |
(1,492) |
(1,489) |
+0.2% |
Net income from
discont'd or held-for-sale ope. |
(2) |
45 |
n.m. |
(2) |
45 |
n.m. |
Net income |
3,789 |
3,908 |
(3.0%) |
3,684 |
3,881 |
(5.1%) |
Non controlling
interests |
(285) |
(202) |
+41.0% |
(276) |
(210) |
+31.1% |
Net income Group Share |
3,505 |
3,706 |
(5.4%) |
3,408 |
3,671 |
(7.2%) |
Cost/Income ratio excl.SRF (%) |
62.8% |
63.0% |
-0.2 pp |
63.0% |
62.4% |
+0.5 pp |
During the second quarter,
the Regional Banks saw continued good business
growth, both in loans which were up +6.4% at end-June 2018 in
relation to end-June 2017 and in customer savings which increased
by +4.3%. As in the previous quarters, growth was particularly
strong in home loans (+7.9%), consumer loans (+9.9%), and loans to
businesses and professional clients (+8.9%). Life insurance assets
under management increased by +1.9%, with the share of unit-linked
inflows up by +7.8 points to 25.1% in the first six months in
relation to the same period last year.
This commercial performance made a
significant contribution to growth in
Crédit Agricole S.A.'s business lines, of which they
distribute a large number of products as the Group's main
distribution network and the leading retail banking network in
France.
In the
second quarter of 2018, the contribution of the Regional Banks to
Crédit Agricole Group's underlying
net income Group share came to €608 million, representing a decrease of -22.2% compared with the
second quarter of 2017, attributable to the
aforementioned provision movements.
In the
first half of 2018, this contribution reached
€1,195 million, down also by -22.2% for the same reason.
The performance of the other
Crédit Agricole Group business lines is described in
detail in the section of this press release on
Crédit Agricole S.A.
Over the quarter,
Crédit Agricole Group's financial solidity remained
robust, with a fully-loaded CET1 ratio[12] of
14.8%, up by +20 basis points
compared to end-March 2018. This ratio provides a substantial
buffer above the distribution restriction trigger applicable to
Crédit Agricole Group as of 1 January 2019, set at 9.5% by the
ECB.
The TLAC
ratio was 21.2% at 30 June 2018,
excluding eligible senior preferred debt,
versus 21.0% at end-March 2018 and 20.8% at end-June 2017. This
level already respects the 2019 minimum requirement of 19.5%
without taking into account senior preferred debt, which would be
eligible at 2.5% according to the regulatory calculation. The Group
issued the equivalent of €5.9 billion in Tier
2 and senior non-preferred debt over the first seven months of
the year.
The MREL
ratio stood at circa 13% at
30 June 2018, or 8.2% excluding eligible
senior preferred debt. Crédit Agricole Group was
notified on 8 June 2018 of the immediately applicable
minimum required level including eligible senior preferred debt.
Crédit Agricole Group complied with this minimum level at
30 June 2018.
The phased-in
leverage ratio[13] came to
5.4%, stable compared to
end-March 2018.
The liquidity
position of Crédit Agricole Group is solid. Its
banking cash balance sheet, at €1,191 billion at
30 June 2018, shows a surplus of stable
funding resources over stable application of funds of
€106 billion, down -€11 billion compared with
end-March 2018 and end-June 2017. This surplus exceeded
the Medium-Term Plan target of over €100 billion. The surplus
of stable funds finances the HQLA securities portfolio generated by
the LCR requirement for customer and customer-related activities.
The liquidity reserves, which include capital
gains and discounts on securities portfolios, stood at €256 billion on 30 June 2018, covering the level
of short-term debt (€106 billion) more than twice over.
Crédit Agricole Group's
issuers issued the equivalent of
€18.4 billion in medium to long-term debt in the
first half of 2018, of which 45% was issued by
Crédit Agricole S.A. (€8.2 billion) versus just over
€36.1 billion for 2017 as a whole. Moreover,
Crédit Agricole Group placed €1.9 billion in bonds
with its regional banking networks (the Regional Banks, LCL
and CA Italia). At end-July 2018, Crédit Agricole S.A.
issued a total of €10.1 billion, thus completing 84% of its
issuance programme for 2018.
* *
*
Dominique Lefebvre, Chairman of
SAS Rue La Boétie and Chairman of Crédit Agricole S.A.'s
Board of Directors, commented on the Group's first half 2018
results and activity as follows: "During the
first six months, Crédit Agricole Group continued to establish
new business relationships, to improve the equipment rates of
customers of the Regional Banks, LCL and the international
retail banks, announced or finalised acquisitions and strategic new
partnerships, demonstrated once again its operating efficiency,
reaped the rewards of its prudent risk approach, and further
improved its financial solidity. These developments confirm the
universal customer-focused banking strategy, underpinned by
business lines that are leaders on their markets and efficient
retail banks."
Crédit Agricole S.A. Highest quarterly underlying net income since
IPO
-
Underlying Group net income:
Q2-18 €1,418m, +19.6% Q2/Q2, H1-18 €2,205m, +5.9% H1/H1,
highest quarterly level since IPO and highest half-year level since
the financial crisis;
-
Annualised underlying
ROTE[14] 13.1%,
annualised RONE of all business lines higher than the MTP targets
except for Retail Banking (which represents only 17% of
consolidated net income excluding Corporate Centre), RONE of the
Large customers division 12,8%;
-
Positive contribution to growth
by all CASA divisions and the Corporate Centre, with a
particularly high level of profitability in CIB;
Very strong, good quality activity in all business lines
-
Acceleration of growth in loans
to businesses for the Retail banks, good resilience of inflows
in Asset gathering despite a slowdown,
several jumbo deals in Financing/Large
customers;
-
Underlying revenues up +11.4%
Q2/Q2, +7.1% at constant scope and exchange rates[15],
contribution by all divisions and Corporate Centre, sharp increase
in Large customers (+11%10);
Excellent cost control and further fall in the cost of risk
-
Underlying costs: +7.4%,
+1.9% Q2/Q2 at constant scope and exchange
rates15 excluding
SRF;
-
Positive scissors
effect15 in all divisions, >5pp at
consolidated level (+2.6pp H1/H115), improvement
in C/I ratio15 of nearly 3pp Q2/Q2 (1.5pp
H1/H115);
-
Further decrease in the cost of
credit risk: -36.5% Q2/Q2; cost of risk relative to
outstandings: 26bp;
Financial solidity confirmed this quarter
-
Fully-loaded CET1 ratio
11.4%, higher than the MTP target of 11%, stable in Q2, with
high capital generation (+22bp) having financed growth in
risk-weighted assets linked to activity.
Crédit Agricole S.A.'s Board of
Directors, chaired by Dominique Lefebvre, met on 2 August 2018 to
examine the financial statements for the second quarter and
first half of 2018.
In the
second quarter of 2018, stated net income Group
share reached €1,436 million versus
€1,350 million in the
second quarter of 2017.
Specific items for the quarter had
a limited, positive net impact of
+€19 million on net income Group share and
included the integration costs of Pioneer Investments at
Amundi in the amount of -€4 million (-8 before tax and
non-controlling interests), a provision reversal on the integration
costs of the three Italian banks for +€8 million[16] (+16
before tax and non-controlling interests), the negative impact from
a -€5 million fine imposed by the ECB on
Crédit Agricole S.A. and two of its subsidiaries for
non-compliance with ECB notification deadlines regarding to capital
increases and a net balance of +€19 million in net income Group
share from recurring volatile accounting items, namely the
DVA[17] in the
amount of +€7 million and coverage of the loan portfolios of the
Large Customers division for +€12 million. In the
second quarter 2017, specific items had an impact on
net income Group share of +€165 million, including a positive impact from
the disposal of interest in Eurazeo[18]
(+€107 million in equity-accounted entities), a gain on
long-term funding restructuring operation carried out in
June 2017[19]
(+€26 million in net income Group share,
+39 in pre-tax revenues), the integration costs of
Pioneer Investments in the amount of -€12 million (-26 before
tax and minority interests) and a net balance of +€44 million in
net income Group share from recurring volatile accounting items,
namely issuer spread for -€97 million before tax, the DVA for
-13, hedges of the loan portfolios of the Large customers division
for -16 and provisions for home purchase savings plans for
+175.
Excluding these specific items,
underlying
net income Group share for the
second quarter of 2018 came to €1,418 million, an increase of +19.6% compared to second-quarter 2017. This is
the highest quarterly underlying net income Group
share by Crédit Agricole S.A. since its IPO in
December 2001.
Underlying
earnings per share came to €0.46, an increase of +21.3% compared with the
second quarter of 2017, +26.5% at
constant scope and exchange rates.
Table 3.
Crédit Agricole S.A. - Stated and underlying
results, Q2-18 and Q2-17
€m |
Q2-18
stated |
Q2-17
stated |
Var. Q2/Q2
stated |
Q2-18
underlying |
Q2-17
underlying |
Var. Q2/Q2
underlying |
|
|
|
|
|
|
|
Revenues |
5,171 |
4,708 |
+9.8% |
5,146 |
4,619 |
+11.4% |
Operating expenses
excl.SRF |
(2,966) |
(2,795) |
+6.1% |
(2,974) |
(2,769) |
+7.4% |
SRF |
(11) |
(10) |
+10.3% |
(11) |
(10) |
+10.3% |
Gross operating income |
2,195 |
1,903 |
+15.3% |
2,162 |
1,840 |
+17.5% |
Cost of risk |
(223) |
(351) |
(36.5%) |
(223) |
(351) |
(36.5%) |
Cost of legal
risk |
(5) |
- |
n.m. |
- |
- |
n.m. |
Equity-accounted
entities |
77 |
224 |
(65.4%) |
77 |
117 |
(33.6%) |
Net income on other
assets |
14 |
0 |
x
171.9 |
14 |
0 |
x
171.9 |
Change in value of
goodwill |
- |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
2,059 |
1,776 |
+16.0% |
2,030 |
1,606 |
+26.4% |
Tax |
(448) |
(321) |
+39.6% |
(439) |
(307) |
+43.2% |
Net income from
discont'd or held-for-sale ope. |
(1) |
31 |
n.m. |
(1) |
31 |
n.m. |
Net income |
1,610 |
1,486 |
+8.4% |
1,590 |
1,330 |
+19.6% |
Non controlling
interests |
(174) |
(136) |
+28.0% |
(172) |
(145) |
+19.3% |
Net income Group Share |
1,436 |
1,350 |
+6.4% |
1,418 |
1,185 |
+19.6% |
Earnings per share (€) |
0.47 |
0.44 |
+6.9% |
0.46 |
0.38 |
+21.3% |
Cost/Income ratio excl.SRF (%) |
57.3% |
59.4% |
-2.0 pp |
57.8% |
59.9% |
-2.2 pp |
This high result can be attributed
to a high level of good quality activity in terms
of margins and risks, across all the business lines, and in
particular the Financing/Large customers division which arranged
several jumbo deals this quarter and moved up two places to second
in the syndicated loans ranking for Europe-Middle East-Africa
(EMEA). It can also be attributed, as in previous quarters, to the
cross-sales policy between the Crédit Agricole S.A.'s
business lines and Crédit Agricole Group's retail banks,
including the Regional Banks, as part of the strategy to strengthen
cross sales set out in the Medium-Term Plan (MTP). These helped to
overcome a more difficult environment on the
market and in the economies of European countries in general in
the second quarter. The high level of profitability is also a
reflection of excellent cost control, with particular action taken
since the launch of the MTP, and the initial effects of the
successful integration of acquisitions, notably Pioneer and the
three Italian banks. It benefited from an ongoing low cost of risk,
and notably net reversals over the quarter in Financing/Large
customers.
Despite reaching almost +20%,
growth in underlying net income Group share was affected by
scope and forex effects.
Although cost savings and cross sales have helped to significantly
improve the contributions from Pioneer and the Italian banks since
their acquisition, this is not yet sufficient to offset the
deconsolidation of the contribution of BSF and to a lesser degree
that of Eurazeo. There was a
negative net scope effect of -€29 million on growth between the
second quarter of 2017 and the
second quarter of 2018. The depreciation of the US
dollar and to a lesser extent of other currencies also gave rise to
a negative forex effect on growth of
-€27 million, although this was lower
than the forex effect seen in the first quarter thanks to a rise in
the US dollar. At constant scope and exchange
rates, growth reached +23.8%. The contribution to the Single
Resolution Fund (SRF) was lower this quarter at -€11 million,
similar to the level in second quarter 2017 (-10), and
required recognition on receipt of final notification from the
Fund. At constant scope and exchange
rates[20] and
excluding the SRF, growth reached +23.4%.
In the
second quarter of 2018, underlying revenues reached €5,146 million,
representing an increase of +11.4% thanks to a
contribution at constant scope and exchange rates by all the
business lines and the Corporate Centre. It includes
Retail Banking, which showed a slight increase of +0.7% in
relation to the second quarter of 2017 despite
pressure on interest margin in France and Italy, thanks notably to
a good performance by LCL at +2.1% (+4.9% excluding renegotiation
fees and early redemptions). Also of note is the very good
performance by the Corporate and Investment Banking division, for
which net revenues rose by +12.2% excluding the forex effect, in
relation to a high comparison base in the
second quarter of 2017. This performance was driven
primarily by the Financing activity (+17.3%) which benefited from
strong activity levels on its markets, the positive effect of the
rise in the oil price on the trade finance activity and several
jumbo deals. The Net revenues to CIB's risk-weighted assets ratio
increased by +60 basis points against the
second quarter of 2017 and
+50 basis points against the
first quarter of 2018. The Insurance business line
continued to shore up its reserves (policyholders participation
reserve - PPE) by applying a low recognition
of its financial margin this quarter, although its revenues appears
to grow significantly (+6.9%) in relation to a very low comparison
base in the second quarter of 2017.
Other notable activity
developments among the business lines in the second quarter
include:
-
the acceleration of growth in
loans to corporates outstanding among the Retail banks in the
Group's domestic business markets, with growth rates of +9%
(+8.9% Regional Banks) to +10% (LCL) in relation to
30 June 2017;
-
good inflow levels, thanks
in particular to the life insurance activity (+€1.6 billion of
which €1.3 billion in unit-linked policies) and good
resilience in Asset management (+€2.6 billion) despite
seasonal outflows from cash products (-€5.7 billion) and the
slowdown observed on the markets; the net inflows in the
second quarter in Asset management was primarily driven
by the Retail activity (+€12.9 billion, of which joint
ventures +€11.4 billion) and international activity
(+€16.4 billion); also of note in the Insurance businesses is
the sharp increase in premiums on non-life policies at +7.4%,
thanks notably to a +5.4% net increase in the number of contracts
to 13 million at end-June in relation to end-June 2017, linked
to an improvement in the equipment rate of Retail banking customers
(by more than one point in one year for the Regional Banks and
LCL);
-
good growth in Specialised
financial services outstandings, both in consumer finance
(+5.6% versus end-June 2017 to €85.3 billion), which were
driven by partnerships with automotive companies and the Group
networks, and in consolidated finance leases (+3.6% to
€14.3 billion, and in particular international leases
+7.3%).
Since the last quarterly
publication, the commentary on the Crédit Agricole Group has
included a series of acquisitions and partnership
announcements that will drive activity in the years ahead,
notably:
-
the finalisation of the acquisition of Banca Leonardo, which contributes assets under
management of €5.1 billion to the wealth management activity
in Italy;
-
the consumer finance
partnership with Bankia (8.1 million customers);
-
the bancassurance partnership between
Crédit Agricole Assurances and Credito Valtelinese
(1 million customers).
These positive revenue trends were
further amplified by an excellent cost
control. While enabling financing of development, underlying operating expenses excluding SRF increased
by +7.4% versus the
second quarter of 2017, but by only +1.9% at constant scope and exchange rates, producing a
significant scissors effect between growth in
underlying revenues and in expenses of
+4 percentage points and +5.2 points at constant scope and exchange rates
and thus enabling an improvement in the underlying
cost to income ratio excluding SRF of
2.2 percentage points versus the
second quarter of 2017, at 57.8%, 2.9 points at constant
scope and exchange rates. All divisions contributed to this
good performance, generating a positive scissors effect at constant
scope and exchange rates.
The acquired companies, Pioneer
and the three Italian banks, which had much higher cost/income
ratios than Crédit Agricole S.A. and their corresponding
business lines during integration, 63.8% and 118% respectively,
have seen a sharp improvement in this ratio since then: Pioneer has
now been merged with Amundi, which has an underlying cost/income
ratio of 53.0% while the three Italian banks have seen their
cost/income ratio decrease from 118% to 80% through cost savings
and revenue growth via cross sales.
The underlying
gross operating income increased then by +17.5% compared to the second quarter 2017,
+14.9% at constant scope and exchange
rates.
The cost of
risk decreased once again to a very low level of
€223 million versus €351 million in the
second quarter of 2017, down
-36.5%/-€128 million versus second quarter 2017,
thanks notably to net reversals of Bucket 1 and 2
provisions under IFRS9 in Corporate and Investment Banking
(+€46 million compared with a cost of risk in the
second quarter of 2017 of -€81 million). The
cost of risk relative to consolidated
outstandings[21] stands at
26 basis points, down 3 basis points versus the
previous quarter and down 9 basis points versus the same
quarter last year, still below the scenario of 50 basis points
in the Medium Term Plan. By business line, in addition to
the impact of the aforementioned net reversals in respect of Large
customers, the two biggest contributors to this item show
contrasting trends, with a sharp decrease for international retail
banking (+20.5%), notably Italy, but an increase for
Specialised financial services (+8.3%), notably consumer
finance (+7.7%). Despite the scope effect related to the three
banks, which did not make any material contribution to the cost of
risk, the Italian activity saw an improvement in the quality of its
assets with a decrease in the NPL ratio from 11.3% at end-March to
10.6% at end-June. The cost of risk relative to outstandings in
this business line came out at 78 basis points in average
on four quarters annualised, down -9 basis points also
compared with the second quarter of 2017. Consumer
finance, at 114 basis points (-9 basis points in relation
to the second quarter of 2017), has decreased over
the last few quarters thanks to the normalisation of the disposals
of doubtful loans.
Excluding the positive effect of
the sale of the stake in Eurazeo, classified under specific items
in the second quarter of 2017, the underlying
contribution of equity-accounted entities
decreased by -33.6% to €77 million. Excluding the loss of the
contribution from the stake in BSF, which was partially sold and
deconsolidated in the third quarter of 2017, there would have been
an increase of +34% thanks to the sharp growth in profitability of
the asset management and consumer finance joint ventures.
Underlying[22] pre-tax
income before discontinued operations and non-controlling interests
increased by +26.4% to €2,030 million and by +27.7% at constant scope and exchange rates. The
second quarter of 2017 benefited from low tax on
capital gains on the disposal by the Insurance business line, which
saw the underlying effective tax rate come out at 20.6%. In the
second quarter of 2018, the underlying tax expense
therefore increased at a higher pace than pre-tax income, by +43.2%
to €439 million. This brought growth in net income before non-controlling interests to
+19.6%, or +21.8% at constant scope and exchange rates.
Net income attributable to
non-controlling interests increased in line
with underlying income by +19.3%/+€28 million to
€172 million, but this obscures two contrasting trends:
firstly, the scope effect of the integration of Pioneer in Amundi
of +€16 million (the decrease in
Crédit Agricole S.A.'s stake in Amundi to 68.5% was
already recognised in the second quarter of 2017),
and, secondly, the acquisition of non-controlling interests in
CACEIS last December which had an impact of -€8 million. After
incorporating the latter acquisition, non-controlling interests
increased therefore by only +7.6% at constant scope and exchange
rates.
Underlying
net income Group share increased by +19.6% versus the second quarter of 2017
to €1,418 million.
In the
first half of 2018, stated
net income Group share amounted to €2,292 million, compared with €2,195 million
in the first half of 2017, representing an increase
of +4.4%.
Specific items in
the first half of 2018 had an impact of
+€87 million on
stated net income Group share. In addition to
the second quarter items already mentioned above, the
first quarter 2018 items had a positive impact of
+€68 million, including the adjustment of negative goodwill
recognised at the time of acquisition of the
three Italian banks totalling +€66 million, the cost
of integrating Pioneer Investments of -€4 million
(-€9 million before tax and non-controlling interests), as
well as recurring specific items, namely the DVA for
+€4 million (+5 before tax) and coverage of the loan
portfolios of the Large customers division for +€3 million (+4
before tax). Specific items from the
first half of 2017 had an impact of
+€114 million on net income Group share. In
addition to the second quarter of 2017 items already
mentioned above, they had an impact of -€51 million on
net income Group share in first quarter 2017:
Pioneer integration costs in the amount of -€3 million, issuer
spread in the amount of -4, the DVA for -31, coverage of the loan
portfolios of the Large customers division for -15 and provisions
for home purchase savings plans for +1.
Excluding these specific items,
underlying net income Group share increased by
+5.9% compared to the first half of 2017, to
€2,205 million, the
highest half-year level since the
first half year 2007, before the financial
crisis. At constant scope and exchange rates, it increased by
+16.1% and by +16.6% excluding SRF.
Underlying
earnings per share came to €0.70, up +7.2%
on the first half of 2017, +19.0%
at constant scope and exchange rates.
Annualised ROTE [23] (return on
tangible equity Group share excluding intangibles) net of coupons
on Additional Tier 1 securities reached 13.1%
in the first half of 2018, a
significant increase compared to the
first half of 2017 (11.4%). The annualised RONE
(return on normalised equity) of all the business lines surpassed
the objectives in the Medium-Term Plan, with the exception of
Retail banking (which accounts only for 17% of underlying
consolidated net income Group share, excluding the Corporate
Centre), while annualised RONE of the Large customers division
reached 12.8% (excluding the contribution from BSF and without
restating first-half IFRIC21 charges).
Table 4.
Crédit Agricole S.A. - Stated and underlying
results, H1-18 and H1-17
€m |
H1-18
stated |
H1-17
stated |
Var. H1/H1
stated |
H1-18
underlying |
H1-17
underlying |
Var. H1/H1
underlying |
|
|
|
|
|
|
|
Revenues |
10,081 |
9,408 |
+7.1% |
10,046 |
9,398 |
+6.9% |
Operating expenses
excl.SRF |
(6,076) |
(5,791) |
+4.9% |
(6,075) |
(5,759) |
+5.5% |
SRF |
(301) |
(242) |
+24.5% |
(301) |
(242) |
+24.5% |
Gross operating income |
3,703 |
3,375 |
+9.7% |
3,670 |
3,397 |
+8.0% |
Cost of risk |
(537) |
(711) |
(24.4%) |
(537) |
(711) |
(24.4%) |
Cost of legal
risk |
(5) |
(40) |
(88.5%) |
- |
(40) |
(100.0%) |
Equity-accounted
entities |
170 |
439 |
(61.3%) |
170 |
332 |
(48.7%) |
Net income on other
assets |
32 |
(0) |
n.m. |
32 |
(0) |
n.m. |
Change in value of
goodwill |
86 |
- |
n.m. |
- |
- |
n.m. |
Income before tax |
3,450 |
3,063 |
+12.6% |
3,335 |
2,977 |
+12.0% |
Tax |
(810) |
(663) |
+22.1% |
(801) |
(681) |
+17.6% |
Net income from
discont'd or held-for-sale ope. |
(2) |
45 |
n.m. |
(2) |
45 |
n.m. |
Net income |
2,638 |
2,445 |
+7.9% |
2,532 |
2,341 |
+8.1% |
Non controlling
interests |
(346) |
(250) |
+38.5% |
(327) |
(260) |
+25.8% |
Net income Group Share |
2,292 |
2,195 |
+4.4% |
2,205 |
2,082 |
+5.9% |
Earnings per share (€) |
0.73 |
0.69 |
+5.4% |
0.70 |
0.65 |
+7.2% |
Cost/Income ratio excl.SRF (%) |
60.3% |
61.6% |
-1.3 pp |
60.5% |
61.3% |
-0.8 pp |
As during the quarter, this
performance was achieved through strong growth in net revenues,
excellent cost control and a decrease in the cost of risk.
Underlying
revenues rose by +6.9% in relation to the
first half of 2017, +3.1% at
constant scope and exchange rates, with a positive contribution
from all divisions with the exception of Large customers, which
suffered from the decline in the first quarter linked to a very
high comparison base in the first quarter of 2017 and a wait-and
see approach on the debt markets in the first quarter of 2018.
Excluding the forex effect, however, this division's revenue rose
by +1.6%.
Underlying operating costs increased by +5.5%, excluding the
contribution to the SRF, which increased by a significant +24.5% to
€301 million in the first half of 2018 versus
€242 million in the first half of 2017.
Expenses excluding SRF remained virtually stable
at constant scope and exchange rates, at +0.5%. Thanks to this
positive scissors effect of +1.4 percentage points in
underlying terms and +2.6 percentage points at constant
scope and exchange rates, the underlying cost/income ratio
excluding SRF improved by 0.8 of a percentage point to 61.3%
including other first-quarter IFRIC21 expenses and by
1.5 percentage points at constant scope and exchange
rates.
The cost of
credit risk excluding unallocated legal provisions
(€40 million in the first half of 2017)
decreased by -24.4%/-€174 million compared to the
first half of 2017 to €537 million. This
decrease is mainly attributable to the Large customers division
(-€169 million) and notably the Financing activity, thanks to
a large extent to efforts made in the second quarter. The
contribution changes of the other activities more or less cancelled
each other out: slight increase for Specialised financial services
(+7.9%/+€17 million) but a decrease for International retail
banking (-15.7%/-€33 million), and virtually no change for
LCL.
At the end of June 2018, Crédit
Agricole S.A. was highly solvent, with a fully-loaded Common equity tier 1 (CET1)
ratio[24] of
11.4%, no change versus
end-March 2018. Capital generation over the quarter
(+22 basis points) and a positive impact on OCI reserves
(+4 basis points) were almost entirely offset by growth in
risk-weighted assets (-28 basis points), with other movements
cancelling each other out. Risk-weighted assets amounted to
€307 billion at end-June 2018, versus €299 billion
at end-March 2018. This growth (+€8 billion) is
attributable to the Large customers division, excluding forex
effect for +€5.5 billion. However this growth is related to a
profitable activity: the ratio between annualised revenues and the
average risk-weighted assets of the
Corporate and Investment banking increased
significantly, +50 basis points between the first and the
second quarter of 2018 (+20 basis points
for Crédit Agricole S.A. as a whole). It should be noted
that at 30 June 2018, the solvency ratios, including the
fully-loaded CET1 ratio, were calculated based on a dividend
assumption of 50% of stated net earnings per share, i.e.
€0.35 per share, which corresponds to €0.23 per share for
the second quarter of 2018. In the third quarter,
Group equity is expected to increase by +€136 million as
a result of the capital increase reserved for employees recognised
on 1st August.
The phased-in leverage ratio[25] was
4.1% at end-June 2018 as defined in the
Delegated Act adopted by the European Commission.
Crédit Agricole S.A.'s
average LCR ratio over twelve months stood at
136% at end-June 2018 (135% related to Crédit
Agricole Group), higher than the Medium-Term Plan target of over
110%.
At end-July
2018, Crédit Agricole S.A. had completed 84% of its €12 billion medium-to long term market funding
programme for the year. It raised the equivalent of
€2.7 billion in senior preferred debt (uncollateralised) and
collateralised senior debt and the equivalent of €5.5 billion in
Tier 2 and senior non-preferred debt.
* *
*
Philippe Brassac, Chief Executive
Officer, commented on the second quarter 2018 results and
activity of Crédit Agricole S.A. as follows: "In the second quarter of 2018, Crédit
Agricole S.A. generated its highest level of underlying net income
Group share since its IPO. This level has been reached thanks to
strong activity trends among its business lines, the support of
Crédit Agricole Group's Retail banking networks, the
Regional Banks, LCL and the International retail banking, an
excellent cost control and a further reduction in its cost of risk,
despite a less favourable environment. This performance is all the
more praiseworthy given that the simplification of the Crédit
Agricole S.A. structure meant it was without the contribution of
the Regional Banks, BSF and Eurazeo, which have been sold or
deconsolidated following the simplification of the Group structure
conducted since 2016 and while recent acquisitions have yet to
yield their full contribution following integration. Over the first
six months, ROTE largely surpassed the target set out in the
Medium-Term Plan and solvency has also been strengthened. Further
this excellent quarterly performance, these figures nevertheless
confirm that the Group is on an excellent track."
Corporate social responsibility
Liquidity Green
supporting Factor
In order to assist its business
lines, Crédit Agricole CIB implemented an initiative
under which projects to help combat climate change can benefit from
a more advantageous internal funding rate. With the "Liquidity
Green supporting Factor" favourable terms can be offered to
investors enabling an increase in responsible financing
amounts.
Integrated
report
Crédit Agricole S.A.
published its second Integrated Report - jointly prepared and
approved by the Board of Directors - at its Annual Shareholders'
Meeting of 16 May. Prepared based on the recommendations of the
IIRC (International Integrated Report Committee), of which
Crédit Agricole S.A. has been a member since 2016, it
offers a summary account of all the Group's other financial and
extra-financial information and of its business model, strategy and
key performance indicators. This document reflects the growing pace
of integration of CSR in the Group's strategy and different
business lines.
Appendix 1 - Specific items, Crédit Agricole S.A. and
Crédit Agricole Group
Table 5.
Crédit Agricole S.A. - Specific items, Q2-18 and
Q2-17,H1-18 and H1-17
|
|
Q2-18 |
Q2-17 |
|
H1-18 |
H1-17 |
|
€m |
|
Gross
impact* |
Impact on
NIGS |
Gross
impact* |
Impact on
NIGS |
|
Gross
impact* |
Impact on
NIGS |
Gross
impact* |
Impact on
NIGS |
Issuer
spreads (CC) |
|
- |
- |
(97) |
(51) |
|
- |
- |
(105) |
(55) |
DVA
(LC) |
|
10 |
7 |
(13) |
(8) |
|
15 |
11 |
(61) |
(39) |
Loan
portfolio hedges (LC) |
|
15 |
12 |
(16) |
(10) |
|
20 |
14 |
(40) |
(25) |
Home
Purchase Savings Plans (FRB) |
|
- |
- |
55 |
34 |
|
- |
- |
55 |
34 |
Home
Purchase Savings Plans (CC) |
|
- |
- |
120 |
79 |
|
- |
- |
122 |
80 |
Liability
management upfront payment (CC) |
|
- |
- |
39 |
26 |
|
- |
- |
39 |
26 |
Total impact on revenues |
|
25 |
19 |
89 |
69 |
|
35 |
25 |
10 |
21 |
Pioneer
integration costs (AG) |
|
(8) |
(4) |
(26) |
(12) |
|
(18) |
(8) |
(32) |
(14) |
3 Italian
banks integration costs (IRB) |
|
16 |
8 |
- |
- |
|
16 |
8 |
- |
- |
Total impact on operating expenses |
|
8 |
4 |
(26) |
(12) |
|
(1) |
(0) |
(32) |
(14) |
ECB fine
(CC) |
|
(5) |
(5) |
- |
- |
|
(5) |
(5) |
- |
- |
Total impact Non-allocated legal risk provisions |
|
(5) |
(5) |
- |
- |
|
(5) |
(5) |
- |
- |
Eurazeo
sale (CC) |
|
- |
- |
107 |
107 |
|
- |
- |
107 |
107 |
Disposal of
BSF (LC) |
|
- |
- |
- |
- |
|
- |
- |
- |
- |
Total impact on equity affiliates |
|
- |
- |
107 |
107 |
|
|
|
107 |
107 |
Change of
value of goodwill (CC) |
|
- |
- |
- |
- |
|
86 |
66 |
- |
- |
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
86 |
66 |
- |
- |
Total impact of specific items |
|
29 |
19 |
170 |
165 |
- |
114 |
87 |
86 |
114 |
Asset
gathering |
|
(8) |
(4) |
(26) |
(12) |
|
(18) |
(8) |
(32) |
(14) |
French Retail
banking |
|
- |
- |
55 |
34 |
|
- |
- |
55 |
34 |
International Retail
banking |
|
16 |
8 |
|
- |
|
16 |
8 |
|
- |
Specialised
financial services |
|
- |
- |
- |
- |
|
- |
- |
- |
- |
Large
customers |
|
25 |
19 |
(29) |
(18) |
|
35 |
25 |
(101) |
(64) |
Corporate
centre |
|
(5) |
(5) |
170 |
161 |
|
81 |
61 |
163 |
158 |
* Impact before tax and before minority interests |
|
|
|
|
|
|
|
|
|
|
|
Table 6.
Crédit Agricole Group - Specific items, Q2-18 and
Q2-17,H1-18 and H1-17
|
|
Q2-18 |
Q2-17 |
|
H1-18 |
H1-17 |
€m |
|
Gross
impact* |
Impact on
NIGS |
Gross
impact* |
Impact on
NIGS |
|
Gross
impact* |
Impact on
NIGS |
Gross
impact* |
Issuer
spreads (CC) |
|
- |
- |
(104) |
(60) |
|
- |
- |
(118) |
DVA
(LC) |
|
10 |
8 |
(13) |
(8) |
|
15 |
11 |
(61) |
Loan
portfolio hedges (LC) |
|
15 |
12 |
(16) |
(10) |
|
20 |
15 |
(40) |
Home
Purchase Savings Plans (LCL) |
|
- |
- |
55 |
36 |
|
- |
- |
55 |
Home
Purchase Savings Plans (CC) |
|
- |
- |
120 |
79 |
|
- |
- |
122 |
Home
Purchase Savings Plans (RB) |
|
- |
- |
125 |
82 |
|
- |
- |
125 |
Adjustment
on liability costs (RB) |
|
- |
- |
(218) |
(148) |
|
- |
- |
(218) |
Liability
management upfront payment (CC) |
|
- |
- |
39 |
26 |
|
- |
- |
39 |
Total impact on revenues |
|
25 |
19 |
(12) |
(5) |
|
35 |
26 |
(96) |
Pioneer
integration costs (AG) |
|
(8) |
(4) |
(26) |
(12) |
|
(18) |
(8) |
(32) |
Integration
costs 3 Italian banks (IRB) |
|
16 |
9 |
- |
- |
|
16 |
9 |
- |
Total impact on operating expenses |
|
8 |
5 |
(26) |
(12) |
|
(1) |
1 |
(32) |
ECB fine
(CC) |
|
(5) |
(5) |
- |
- |
|
(5) |
(5) |
- |
Total impact Non-allocated legal risk provisions |
|
(5) |
(5) |
- |
- |
|
(5) |
(5) |
- |
Eurazeo
sale (CC) |
|
- |
- |
107 |
107 |
|
- |
- |
107 |
Disposal of
BSF (LC) |
|
- |
- |
- |
- |
|
- |
- |
- |
Total impact on equity affiliates |
|
- |
- |
107 |
107 |
|
|
|
107 |
Change of
value of goodwill (CC) |
|
- |
- |
- |
- |
|
86 |
74 |
- |
Total impact on change of value of goodwill |
|
- |
- |
- |
- |
|
86 |
74 |
- |
Total impact of specific items |
|
29 |
20 |
69 |
91 |
- |
114 |
96 |
(20) |
Asset
gathering |
|
(8) |
(4) |
(26) |
(12) |
|
(18) |
(8) |
(32) |
French Retail
banking |
|
- |
- |
(38) |
(30) |
|
- |
- |
(38) |
International Retail
banking |
|
16 |
9 |
|
- |
|
16 |
9 |
- |
Specialised
financial services |
|
- |
- |
- |
- |
|
- |
- |
- |
Large
customers |
|
25 |
19 |
(29) |
(19) |
|
35 |
26 |
(101) |
Corporate
centre |
|
(5) |
(5) |
162 |
152 |
|
81 |
69 |
151 |
*
Impact before tax and before minority interests |
|
|
|
|
|
|
|
|
|
Appendix 2 - Crédit Agricole S.A.: Stated and underlying
detailed income statement
Table 7.
Crédit Agricole S.A. - From stated to underlying
results, Q2-18 and Q2-17
€m |
Q2-18
stated |
Specific items |
Q2-18
underlying |
Q2-17
stated |
Specific items |
Q2-17
underlying |
Var. Q2/Q2
stated |
Var. Q2/Q2
underlying |
Q2-17
scope adj. |
Q2-18
scope adj. |
Q2-18
forex adj. |
Var. Q2/Q2
like-for-like |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
5,171 |
25 |
5,146 |
4,708 |
89 |
4,619 |
+9.8% |
+11.4% |
192 |
(62) |
69 |
+7.1% |
Operating expenses
excl.SRF |
(2,966) |
8 |
(2,974) |
(2,795) |
(26) |
(2,769) |
+6.1% |
+7.4% |
(123) |
53 |
(26) |
+1.9% |
SRF |
(11) |
- |
(11) |
(10) |
- |
(10) |
+10.3% |
+10.3% |
- |
(0) |
- |
+14.3% |
Gross operating income |
2,195 |
33 |
2,162 |
1,903 |
63 |
1,840 |
+15.3% |
+17.5% |
70 |
(10) |
43 |
+14.9% |
Cost of risk |
(223) |
- |
(223) |
(351) |
- |
(351) |
(36.5%) |
(36.5%) |
(0) |
3 |
(2) |
(36.9%) |
Cost of legal
risk |
(5) |
(5) |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Equity-accounted
entities |
77 |
- |
77 |
224 |
107 |
117 |
(65.4%) |
(33.6%) |
(59) |
- |
1 |
+35.0% |
Net income on other
assets |
14 |
- |
14 |
0 |
- |
0 |
x 171.9 |
x 171.9 |
(0) |
- |
(0) |
x 170.9 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Income before tax |
2,059 |
29 |
2,030 |
1,776 |
170 |
1,606 |
+16.0% |
+26.4% |
11 |
(7) |
41 |
+27.7% |
Tax |
(448) |
(9) |
(439) |
(321) |
(14) |
(307) |
+39.6% |
+43.2% |
(19) |
(1) |
(14) |
+39.2% |
Net income from
discont'd or held-for-sale ope. |
(1) |
- |
(1) |
31 |
- |
31 |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Net income |
1,610 |
20 |
1,590 |
1,486 |
156 |
1,330 |
+8.4% |
+19.6% |
(9) |
(7) |
27 |
+21.8% |
Non controlling
interests |
(174) |
(1) |
(172) |
(136) |
9 |
(145) |
+28.0% |
+19.3% |
(15) |
1 |
(0) |
+7.6% |
Net income Group Share |
1,436 |
19 |
1,418 |
1,350 |
165 |
1,185 |
+6.4% |
+19.6% |
(23) |
(6) |
27 |
+23.8% |
Earnings per share (€) |
0.47 |
0.01 |
0.46 |
0.44 |
0.06 |
0.38 |
+6.9% |
+21.3% |
(0.01) |
- |
0.01 |
+26.5% |
Cost/Income ratio excl.SRF (%) |
57.3% |
|
57.8% |
59.4% |
|
59.9% |
-2.0 pp |
-2.2 pp |
63.8% |
84.3% |
|
-2.9 pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
1,445 |
19 |
1,426 |
1,360 |
165 |
1,195 |
+6.3% |
+19.3% |
(23) |
(7) |
27 |
+23.4% |
Table 8.
Crédit Agricole S.A. - Crédit Agricole S.A. - From
stated to underlying results, H1-18 and H1-17
€m |
H1-18
stated |
Specific items |
H1-18
underlying |
H1-17
stated |
Specific items |
H1-17
underlying |
Var. H1/H1
stated |
Var. H1/H1
underlying |
H1-17
scope adj. |
H1-18
scope adj. |
H1-18
forex adj. |
Var. H1/H1
like-for-like |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
10,081 |
35 |
10,046 |
9,408 |
10 |
9,398 |
+7.1% |
+6.9% |
394 |
(115) |
169 |
+3.1% |
Operating expenses
excl.SRF |
(6,076) |
(1) |
(6,075) |
(5,791) |
(32) |
(5,759) |
+4.9% |
+5.5% |
(255) |
103 |
(75) |
+0.5% |
SRF |
(301) |
- |
(301) |
(242) |
- |
(242) |
+24.5% |
+24.5% |
- |
4 |
- |
+23.0% |
Gross operating income |
3,703 |
34 |
3,670 |
3,375 |
(22) |
3,397 |
+9.7% |
+8.0% |
139 |
(8) |
93 |
+6.2% |
Cost of risk |
(537) |
- |
(537) |
(711) |
- |
(711) |
(24.4%) |
(24.4%) |
(2) |
7 |
1 |
(25.8%) |
Cost of legal
risk |
(5) |
(5) |
- |
(40) |
- |
(40) |
(88.5%) |
(100.0%) |
- |
- |
- |
(100.0%) |
Equity-accounted
entities |
170 |
- |
170 |
439 |
107 |
332 |
(61.3%) |
(48.7%) |
(203) |
- |
2 |
+34.2% |
Net income on other
assets |
32 |
- |
32 |
(0) |
- |
(0) |
n.m. |
n.m. |
(0) |
0 |
- |
n.m. |
Change in value of
goodwill |
86 |
86 |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Income before tax |
3,450 |
114 |
3,335 |
3,063 |
86 |
2,977 |
+12.6% |
+12.0% |
(66) |
(1) |
97 |
+17.8% |
Tax |
(810) |
(9) |
(801) |
(663) |
18 |
(681) |
+22.1% |
+17.6% |
(38) |
(1) |
(30) |
+15.6% |
Net income from
discont'd or held-for-sale ope. |
(2) |
- |
(2) |
45 |
- |
45 |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Net income |
2,638 |
105 |
2,532 |
2,445 |
104 |
2,341 |
+7.9% |
+8.1% |
(104) |
(2) |
66 |
+16.1% |
Non controlling
interests |
(346) |
(19) |
(327) |
(250) |
10 |
(260) |
+38.5% |
+25.8% |
(26) |
(0) |
(4) |
+15.8% |
Net income Group Share |
2,292 |
87 |
2,205 |
2,195 |
114 |
2,082 |
+4.4% |
+5.9% |
(130) |
(2) |
62 |
+16.1% |
Earnings per share (€) |
0.73 |
0.03 |
0.70 |
0.69 |
0.04 |
0.65 |
+5.4% |
+7.2% |
(0.05) |
- |
0.02 |
+19.0% |
Cost/Income ratio excl.SRF (%) |
60.3% |
|
60.5% |
61.6% |
|
61.3% |
-1.3 pp |
-0.8 pp |
64.6% |
89.5% |
|
-1.5 pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
2,578 |
87 |
2,491 |
2,429 |
114 |
2,315 |
+6.1% |
+7.6% |
(130) |
(6) |
62 |
+16.6% |
Appendix 3 - Crédit Agricole S.A.: Income statement by
business line
Table 9.
Crédit Agricole S.A.: Contribution by divisions -
Q2-18 & Q2-17
Q2-18
(stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,388 |
875 |
689 |
695 |
1,531 |
(6) |
5,171 |
Operating expenses
excl. SRF |
(685) |
(576) |
(409) |
(310) |
(801) |
(184) |
(2,966) |
SRF |
0 |
(2) |
(5) |
(1) |
(2) |
(1) |
(11) |
Gross operating income |
703 |
298 |
274 |
384 |
728 |
(192) |
2,195 |
Cost of credit
risk |
(4) |
(56) |
(85) |
(127) |
45 |
5 |
(223) |
Cost of legal
risk |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted
entities |
14 |
- |
- |
65 |
(0) |
(0) |
77 |
Net income on other
assets |
(0) |
1 |
(0) |
1 |
13 |
(0) |
14 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
712 |
242 |
189 |
322 |
786 |
(193) |
2,059 |
Tax |
(147) |
(73) |
(54) |
(76) |
(197) |
100 |
(448) |
Net income from
discontinued or held-for-sale operations |
(0) |
(1) |
- |
- |
- |
- |
(1) |
Net income |
564 |
168 |
135 |
246 |
589 |
(92) |
1,610 |
Non controlling
interests |
(82) |
(7) |
(36) |
(30) |
(12) |
(7) |
(174) |
Net income Group Share |
483 |
161 |
98 |
216 |
578 |
(99) |
1,436 |
Q2-17
(stated) |
|
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
1,151 |
912 |
639 |
690 |
1,370 |
(54) |
4,708 |
Operating expenses
excl. SRF |
(570) |
(591) |
(372) |
(332) |
(729) |
(201) |
(2,795) |
SRF |
(1) |
1 |
(0) |
(1) |
(6) |
(3) |
(10) |
Gross operating income |
580 |
322 |
267 |
357 |
634 |
(258) |
1,903 |
Cost of credit
risk |
(2) |
(56) |
(107) |
(117) |
(81) |
12 |
(351) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted
entities |
8 |
- |
- |
49 |
60 |
107 |
224 |
Net income on other
assets |
0 |
0 |
0 |
0 |
0 |
(0) |
0 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
587 |
267 |
159 |
289 |
613 |
(139) |
1,776 |
Tax |
(100) |
(71) |
(47) |
(70) |
(166) |
134 |
(321) |
Net income from
discontinued or held-for-sale operations |
31 |
- |
(0) |
- |
- |
- |
31 |
Net income |
517 |
196 |
112 |
219 |
447 |
(5) |
1,486 |
Non controlling
interests |
(51) |
(10) |
(31) |
(31) |
(16) |
3 |
(136) |
Net income Group Share |
466 |
186 |
81 |
188 |
431 |
(2) |
1,350 |
Table 10. Crédit
Agricole S.A. : Contribution by divisions - H1-18 &
H1-17
H1-18
(stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
2,855 |
1,734 |
1,366 |
1,383 |
2,862 |
(119) |
10,081 |
Operating expenses
excl. SRF |
(1,429) |
(1,189) |
(832) |
(668) |
(1,583) |
(375) |
(6,076) |
SRF |
(3) |
(28) |
(22) |
(17) |
(170) |
(62) |
(301) |
Gross operating income |
1,423 |
517 |
512 |
698 |
1,109 |
(556) |
3,703 |
Cost of credit
risk |
(9) |
(107) |
(179) |
(227) |
(19) |
3 |
(537) |
Cost of legal
risk |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted
entities |
25 |
- |
- |
127 |
1 |
17 |
170 |
Net income on other
assets |
(0) |
2 |
(0) |
1 |
13 |
16 |
32 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
86 |
86 |
Income before tax |
1,439 |
412 |
333 |
599 |
1,104 |
(438) |
3,450 |
Tax |
(357) |
(132) |
(101) |
(141) |
(305) |
226 |
(810) |
Net income from
discontinued or held-for-sale operations |
(1) |
(1) |
- |
- |
- |
- |
(2) |
Net income |
1,081 |
279 |
232 |
458 |
799 |
(212) |
2,638 |
Non controlling
interests |
(155) |
(13) |
(64) |
(64) |
(16) |
(35) |
(346) |
Net income Group Share |
926 |
267 |
168 |
394 |
783 |
(247) |
2,292 |
H1-17
(stated) |
€m |
AG |
FRB (LCL) |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
Revenues |
2,401 |
1,816 |
1,246 |
1,375 |
2,791 |
(220) |
9,408 |
Operating expenses
excl. SRF |
(1,195) |
(1,219) |
(733) |
(684) |
(1,542) |
(417) |
(5,791) |
SRF |
(3) |
(15) |
(10) |
(14) |
(139) |
(61) |
(242) |
Gross operating income |
1,203 |
582 |
502 |
677 |
1,110 |
(698) |
3,375 |
Cost of credit
risk |
(1) |
(104) |
(212) |
(210) |
(188) |
4 |
(711) |
Cost of legal
risk |
- |
- |
- |
- |
(40) |
- |
(40) |
Equity-accounted
entities |
15 |
- |
- |
115 |
129 |
179 |
439 |
Net income on other
assets |
(0) |
0 |
0 |
(0) |
(0) |
(0) |
(0) |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,217 |
478 |
290 |
582 |
1,011 |
(515) |
3,063 |
Tax |
(292) |
(135) |
(91) |
(144) |
(250) |
250 |
(663) |
Net income from
discontinued or held-for-sale operations |
30 |
- |
0 |
15 |
- |
- |
45 |
Net income |
955 |
343 |
199 |
452 |
761 |
(266) |
2,445 |
Non controlling
interests |
(92) |
(17) |
(57) |
(64) |
(26) |
6 |
(250) |
Net income Group Share |
864 |
326 |
142 |
389 |
735 |
(260) |
2,195 |
Appendix 4 - Crédit Agricole Group: Stated and underlying
detailed income statement
Table 11. Crédit
Agricole Group - From stated to underlying results, Q2-18 and
Q2-17
€m |
Q2-18
stated |
Specific items |
Q2-18
underlying |
Q2-17
stated |
Specific items |
Q2-17
underlying |
Var. Q2/Q2
stated |
Var. Q2/Q2
underlying |
Q2-17
scope adj. |
Q2-18
scope adj. |
Q2-18
forex adj. |
Var. Q2/Q2
like-for-like |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
8,428 |
25 |
8,402 |
7,928 |
(12) |
7,940 |
+6.3% |
+5.8% |
192 |
(62) |
69 |
+3.4% |
Operating expenses
excl.SRF |
(5,141) |
8 |
(5,149) |
(4,987) |
(26) |
(4,960) |
+3.1% |
+3.8% |
(123) |
53 |
(26) |
+0.8% |
SRF |
(30) |
- |
(30) |
(11) |
- |
(11) |
x
2.6 |
x
2.6 |
- |
(0) |
- |
x 2.6 |
Gross operating income |
3,257 |
33 |
3,224 |
2,930 |
(38) |
2,968 |
+11.2% |
+8.6% |
70 |
(10) |
43 |
+7.2% |
Cost of risk |
(397) |
- |
(397) |
(318) |
- |
(318) |
+25.0% |
+25.0% |
(0) |
3 |
(2) |
+24.5% |
Cost of legal
risk |
(5) |
(5) |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Equity-accounted
entities |
80 |
- |
80 |
226 |
107 |
119 |
(64.5%) |
(32.4%) |
(59) |
- |
1 |
+35.1% |
Net income on other
assets |
17 |
- |
17 |
(1) |
- |
(1) |
n.m. |
n.m. |
(0) |
- |
(0) |
n.m. |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Income before tax |
2,953 |
29 |
2,924 |
2,837 |
69 |
2,767 |
+4.1% |
+5.7% |
11 |
(7) |
42 |
+6.5% |
Tax |
(734) |
(9) |
(725) |
(654) |
13 |
(666) |
+12.3% |
+8.9% |
(19) |
(1) |
(14) |
+7.9% |
Net income from
discont'd or held-for-sale ope. |
(1) |
- |
(1) |
31 |
- |
31 |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Net income |
2,218 |
20 |
2,198 |
2,214 |
82 |
2,132 |
+0.2% |
+3.1% |
(9) |
(7) |
28 |
+4.5% |
Non controlling
interests |
(142) |
0 |
(142) |
(107) |
9 |
(117) |
+31.7% |
+21.7% |
(12) |
1 |
(1) |
+9.8% |
Net income Group Share |
2,076 |
20 |
2,056 |
2,106 |
91 |
2,015 |
(1.4%) |
+2.0% |
(21) |
(6) |
27 |
+4.1% |
Cost/Income ratio excl.SRF (%) |
61.0% |
|
61.3% |
62.9% |
|
62.5% |
-1.9 pp |
-1.2 pp |
63.8% |
84.3% |
37.7% |
-1.6 pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
2,104 |
20 |
2,084 |
2,118 |
91 |
2,027 |
(0.6%) |
+2.8% |
(19) |
(7) |
- |
+4.8% |
Table 12. Crédit
Agricole Group - From stated to underlying results, H1-18 and
H1-17
€m |
H1-18
stated |
Specific items |
H1-18
underlying |
H1-17
stated |
Specific items |
H1-17
underlying |
Var. H1/H1
stated |
Var. H1/H1
underlying |
H1-17
scope adj. |
H1-18
scope adj. |
H1-18
forex adj. |
Var. H1/H1
like-for-like |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
16,686 |
35 |
16,651 |
16,177 |
(96) |
16,272 |
+3.1% |
+2.3% |
394 |
(115) |
171 |
+0.2% |
Operating expenses
excl.SRF |
(10,484) |
(1) |
(10,483) |
(10,193) |
(32) |
(10,161) |
+2.9% |
+3.2% |
(255) |
103 |
(77) |
+0.4% |
SRF |
(389) |
- |
(389) |
(285) |
- |
(285) |
+36.2% |
+36.2% |
- |
4 |
- |
+34.9% |
Gross operating income |
5,813 |
34 |
5,780 |
5,699 |
(127) |
5,826 |
+2.0% |
(0.8%) |
139 |
(8) |
94 |
(1.7%) |
Cost of risk |
(818) |
- |
(818) |
(796) |
- |
(796) |
+2.8% |
+2.8% |
(2) |
7 |
1 |
+1.5% |
Cost of legal
risk |
(5) |
(5) |
- |
(40) |
- |
(40) |
(88.5%) |
(100.0%) |
- |
- |
- |
(100.0%) |
Equity-accounted
entities |
179 |
- |
179 |
443 |
107 |
336 |
(59.7%) |
(46.8%) |
(203) |
- |
2 |
+36.2% |
Net income on other
assets |
38 |
- |
38 |
(1) |
- |
(1) |
n.m. |
n.m. |
(0) |
0 |
- |
n.m. |
Change in value of
goodwill |
86 |
86 |
- |
- |
- |
- |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Income before tax |
5,293 |
114 |
5,178 |
5,305 |
(20) |
5,325 |
(0.2%) |
(2.8%) |
(66) |
(1) |
97 |
+0.3% |
Tax |
(1,501) |
(9) |
(1,492) |
(1,442) |
47 |
(1,489) |
+4.1% |
+0.2% |
(38) |
(1) |
(30) |
(0.3%) |
Net income from
discont'd or held-for-sale ope. |
(2) |
- |
(2) |
45 |
- |
45 |
n.m. |
n.m. |
- |
- |
- |
n.m. |
Net income |
3,789 |
105 |
3,684 |
3,908 |
27 |
3,881 |
(3.0%) |
(5.1%) |
(104) |
(2) |
67 |
(0.8%) |
Non controlling
interests |
(285) |
(9) |
(276) |
(202) |
8 |
(210) |
+41.0% |
+31.1% |
(24) |
(0) |
(4) |
+19.4% |
Net income Group Share |
3,505 |
96 |
3,408 |
3,706 |
35 |
3,671 |
(5.4%) |
(7.2%) |
(128) |
(2) |
63 |
(2.1%) |
Cost/Income ratio excl.SRF (%) |
62.8% |
|
63.0% |
63.0% |
|
62.4% |
-0.2 pp |
+0.5 pp |
64.6% |
89.5% |
44.9% |
+0.1 pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Group Share excl. SRF |
4,202 |
96 |
4,105 |
4,207 |
35 |
4,172 |
(0.1%) |
(1.6%) |
(128) |
(8) |
- |
+3.0% |
Appendix 5 - Crédit Agricole Group: Income statement by
business line
Table 13. Crédit Agricole Group - Contribution by division,
Q2-18 and Q2-17
|
Q2-18
(stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,227 |
875 |
714 |
1,385 |
695 |
1,531 |
0 |
8,428 |
Operating expenses
excl. SRF |
(2,145) |
(576) |
(427) |
(685) |
(310) |
(801) |
(196) |
(5,141) |
SRF |
(19) |
(2) |
(5) |
0 |
(1) |
(2) |
(1) |
(30) |
Gross operating income |
1,063 |
298 |
282 |
700 |
384 |
728 |
(197) |
3,257 |
Cost of credit
risk |
(176) |
(56) |
(84) |
(4) |
(127) |
45 |
5 |
(397) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted
entities |
2 |
- |
- |
14 |
65 |
(0) |
- |
80 |
Net income on other
assets |
3 |
1 |
(0) |
(0) |
1 |
13 |
(0) |
17 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
893 |
242 |
198 |
709 |
322 |
787 |
(198) |
2,953 |
Tax |
(285) |
(73) |
(57) |
(147) |
(76) |
(197) |
101 |
(734) |
Net income from
discont'd or held-for-sale ope. |
- |
(1) |
- |
(0) |
- |
- |
- |
(1) |
Net income |
608 |
168 |
141 |
562 |
246 |
590 |
(97) |
2,218 |
Non controlling
interests |
0 |
1 |
(29) |
(78) |
(30) |
(0) |
(6) |
(142) |
Net income Group Share |
608 |
169 |
113 |
484 |
216 |
589 |
(103) |
2,076 |
|
Q2-17
(stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
3,117 |
912 |
1,145 |
668 |
690 |
1,370 |
26 |
7,928 |
Operating expenses
excl. SRF |
(2,122) |
(591) |
(570) |
(387) |
(332) |
(729) |
(255) |
(4,987) |
SRF |
(2) |
1 |
(1) |
(0) |
(1) |
(6) |
(3) |
(11) |
Gross operating income |
994 |
322 |
574 |
280 |
357 |
634 |
(232) |
2,930 |
Cost of credit
risk |
35 |
(56) |
(2) |
(109) |
(117) |
(81) |
13 |
(318) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
- |
- |
Equity-accounted
entities |
2 |
- |
8 |
- |
49 |
60 |
107 |
226 |
Net income on other
assets |
(1) |
0 |
0 |
0 |
0 |
0 |
(0) |
(1) |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
1,029 |
266 |
581 |
171 |
289 |
613 |
(113) |
2,837 |
Tax |
(314) |
(70) |
(100) |
(50) |
(70) |
(166) |
118 |
(654) |
Net income from
discont'd or held-for-sale ope. |
- |
- |
31 |
(0) |
- |
- |
- |
31 |
Net income |
715 |
196 |
511 |
121 |
219 |
447 |
5 |
2,214 |
Non controlling
interests |
(0) |
(0) |
(48) |
(25) |
(31) |
(7) |
3 |
(107) |
Net income Group Share |
715 |
196 |
463 |
96 |
188 |
440 |
8 |
2,106 |
Table 14. Crédit
Agricole Group. : Contribution by divisions - stated - H1-18 &
H1-17
H1-18 (stated) |
€m |
RB |
LCL |
IRB |
AG |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
6,585 |
1,733 |
1,418 |
2,848 |
1,383 |
2,862 |
(143) |
16,686 |
Operating expenses
excl. SRF |
(4,344) |
(1,189) |
(869) |
(1,429) |
(668) |
(1,583) |
(402) |
(10,484) |
SRF |
(87) |
(28) |
(22) |
(3) |
(17) |
(170) |
(62) |
(389) |
Gross operating income |
2,153 |
517 |
527 |
1,416 |
698 |
1,109 |
(606) |
5,813 |
Cost of credit
risk |
(280) |
(107) |
(179) |
(9) |
(227) |
(19) |
3 |
(818) |
Cost of legal
risk |
- |
- |
- |
- |
- |
- |
(5) |
(5) |
Equity-accounted
entities |
7 |
- |
- |
25 |
127 |
1 |
19 |
179 |
Net income on other
assets |
5 |
2 |
(0) |
(0) |
1 |
13 |
16 |
38 |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
86 |
86 |
Income before tax |
1,886 |
412 |
347 |
1,432 |
599 |
1,104 |
(487) |
5,293 |
Tax |
(690) |
(132) |
(105) |
(356) |
(141) |
(305) |
228 |
(1,501) |
Net income from
discontinued or held-for-sale operations |
- |
(1) |
- |
(1) |
- |
- |
- |
(2) |
Net income |
1,195 |
279 |
243 |
1,075 |
458 |
799 |
(260) |
3,789 |
Non controlling
interests |
(0) |
1 |
(51) |
(148) |
(64) |
1 |
(24) |
(285) |
Net income Group Share |
1,195 |
280 |
192 |
928 |
394 |
799 |
(283) |
3,505 |
H1-17 (stated) |
€m |
RB |
LCL |
AG |
IRB |
SFS |
LC |
CC |
Total |
|
|
|
|
|
|
|
|
|
Revenues |
6,647 |
1,816 |
2,392 |
1,302 |
1,375 |
2,791 |
(145) |
16,177 |
Operating expenses
excl. SRF |
(4,299) |
(1,219) |
(1,195) |
(767) |
(684) |
(1,542) |
(485) |
(10,193) |
SRF |
(43) |
(15) |
(3) |
(10) |
(14) |
(139) |
(61) |
(285) |
Gross operating income |
2,304 |
582 |
1,194 |
524 |
677 |
1,110 |
(691) |
5,699 |
Cost of credit
risk |
(81) |
(104) |
(1) |
(215) |
(210) |
(188) |
3 |
(796) |
Cost of legal
risk |
- |
- |
- |
- |
- |
(40) |
- |
(40) |
Equity-accounted
entities |
4 |
- |
15 |
- |
115 |
129 |
179 |
443 |
Net income on other
assets |
(0) |
0 |
(0) |
0 |
(0) |
(0) |
(1) |
(1) |
Change in value of
goodwill |
- |
- |
- |
- |
- |
- |
- |
- |
Income before tax |
2,227 |
478 |
1,209 |
309 |
582 |
1,011 |
(510) |
5,305 |
Tax |
(756) |
(134) |
(292) |
(96) |
(144) |
(250) |
231 |
(1,442) |
Net income from
discontinued or held-for-sale operations |
- |
- |
30 |
0 |
15 |
- |
- |
45 |
Net income |
1,471 |
344 |
947 |
213 |
452 |
761 |
(279) |
3,908 |
Non controlling
interests |
(1) |
(0) |
(86) |
(45) |
(64) |
(11) |
4 |
(202) |
Net income Group Share |
1,471 |
343 |
861 |
167 |
389 |
750 |
(274) |
3,706 |
Appendix 6 - Method used to calculate earnings per share, net
assets per share and ROTE
Table 15. Crédit
Agricole S.A. - data per share
(€m) |
|
Q2-18 |
Q2-17 |
|
H1-18 |
H1-17 |
Net income
Group share - stated |
|
1,436 |
1,350 |
|
2,292 |
2,195 |
-
Interests on AT1, including issuance costs, before tax |
|
(93) |
(96) |
|
(225) |
(237) |
NIGS attributable to ordinary shares - stated |
[A] |
1,343 |
1,254 |
|
2,067 |
1,958 |
Average
number shares in issue, excluding treasury shares (m) |
[B] |
2,849.2 |
2,843.7 |
|
2,846.6 |
2,843.1 |
Net earnings per share - stated |
[A]/[B] |
0.47 € |
0.44 € |
|
0.73 € |
0.69 € |
Underlying
net income Group share (NIGS) |
|
1,418 |
1,185 |
|
2,205 |
2,082 |
Underlying NIGS attributable to ordinary shares |
[C] |
1,324 |
1,089 |
|
1,981 |
1,845 |
Net earnings per share - underlying |
[C]/[B] |
0.46 € |
0.38 € |
|
0.70 € |
0.65 € |
(€m) |
|
30/06/2018 |
30/06/2017 |
Shareholder's equity Group share |
|
57,144 |
57,371 |
-
AT1 issuances |
|
(5,008) |
(5,011) |
-
Unrealised gains and losses on AFS - Group share |
|
(2,522) |
(3,268) |
- Payout
assumption on annual results* |
|
- |
- |
Net book value (NBV), not revaluated, attributable to
ordin. sh. |
[D] |
49,615 |
49,092 |
- Goodwill
& intangibles** - Group share |
|
(17,764) |
(15,648) |
Tangible NBV (TNBV), not revaluated attrib. to ordinary
sh. |
[E] |
31,851 |
33,444 |
Total
shares in issue, excluding treasury shares (period end, m) |
[F] |
2,848.9 |
2,844.0 |
NBV per share , after deduction of dividend to pay
(€) |
[D]/[F] |
17.4 € |
17.3 € |
+ Dividend to pay (€) |
[H] |
0.00 € |
0.00 € |
NBV per share , before deduction of dividend to pay
(€) |
|
17.4 € |
17.3 € |
TNBV per share, after deduction of dividend to pay
(€) |
[G]=[E]/[F] |
11.2 € |
11.8 € |
TNBV per sh., before deduct. of divid. to pay (€) |
[G]+[H] |
11.2 € |
11.8 € |
* dividend proposed to the Board
meeting to be paid |
|
|
|
** including goodwill in the
equity-accounted entities |
|
|
|
(€m) |
|
|
H1-18 |
H1-17 |
Net income
Group share attributable to ordinary shares |
[H] |
|
4,144 |
3,917 |
Tangible
NBV (TNBV), not revaluated attrib. to ord. sh. - avg*** |
[J] |
|
30,404 |
32,382 |
Stated ROTE (%) |
[H]/[J] |
|
13.6% |
12.1% |
Underlying
Net income attrib. to ord. shares (annualised) |
[I] |
|
3,971 |
3,689 |
Underlying ROTE (%) |
[I]/[J] |
|
13.1% |
11.4% |
*** including assumption of
dividend for the current exercise |
|
|
|
|
This page is left blank
intentionally
Disclaimer
The second quarter and first half 2018 financial
information for Crédit Agricole S.A. and the
Crédit Agricole Group comprises this press release and
the attached quarterly financial report and presentation, available
at
https://www.creditagricole.com/finance/finance/publications-financieres.
This press
release may include prospective information on the Group, supplied
as information on trends. This data does not represent forecasts
within the meaning of European Regulation 809/2004 of 29 April 2004
(chapter 1, article 2, §10).
This information
was developed from scenarios based on a number of economic
assumptions for a given competitive and regulatory environment.
Therefore, these assumptions are by nature subject to random
factors that could cause actual results to differ from
projections.
Likewise, the
financial statements are based on estimates, particularly in
calculating market value and asset impairment.
Readers must take
all these risk factors and uncertainties into consideration before
making their own judgement.
Applicable standards and comparability
The figures
presented for the period ending 30 June 2018 have been
prepared in accordance with IFRS as adopted in the European Union
and applicable at that date, and with prudential regulations
currently in force. This financial information does not constitute
a set of financial statements for an interim period as defined by
IAS 34 "Interim Financial Reporting" and has not been
audited.
Note: The scopes
of consolidation of groups Crédit Agricole S.A. and Crédit Agricole
have not changed materially since the registration with the French
market watchdog AMF of the 2017 Registration Document of Crédit
Agricole S.A. on 22 March 2018 under the registration
number D.18-0164 and the A.01 update of this 2017 Registration
Document including all regulatory information about
Crédit Agricole Group.
The sum of values
contained in the tables and analyses may differ slightly from the
total reported due to rounding.
On 1 January
2017, Calit was transferred from
Specialised Financial Services (Crédit Agricole Leasing
& Factoring) to Retail Banking in Italy. No pro forma data have
been prepared in relation to historical data.
Since
1 July 2017, Pioneer has been included in the scope of
consolidation of Crédit Agricole Group as a subsidiary of
Amundi. No pro forma data have been prepared in relation to
historical data. Pioneer Investments integration costs in both
the first and second quarter have been restated in specific
items, contrary to the treatment applied in both publications made
previously. Underlying net income Group share has
been adjusted.
Since
26 September 2017, Banque Saudi Fransi (BSF) has been
excluded from the scope of consolidation of
Crédit Agricole Group further to the disposal of a
majority of the holding (16.2% out of the 31.1% held prior to
disposal). This subsidiary was consolidated using the equity
method. No pro forma data have been prepared in relation to
historical data.
Since
21 December 2017, Cassa di Risparmio (CR) di Cesena, CR
di Rimini and CR di San Miniato have been included in the scope of
consolidation of Crédit Agricole Group as subsidiaries of
Crédit Agricole Italy. No pro forma have been prepared in relation
to historical data.
Since
26 December 2017, Crédit Agricole S.A.'s stake in CACEIS
has increased from 85% to 100%, further to the acquisition of the
15% stake in the company held by Natixis before that date.
Since
3 May 2018, Banca Leonardo has been included in the
scope of consolidation of Crédit Agricole Group as a
subsidiary of Indosuez Wealth Management. Historical data
have not been restated on a proforma basis.
Pioneer Investments' integration costs in both the
first and second quarter 2017 have been restated in
specific items, contrary to the treatment applied in both
publications made previously. Underlying
net income Group share has been adjusted.
Financial agenda
7 November
2018 Publication of
third quarter 2018 results
14 February
2019
Publication of fourth quarter and full-year 2018 results
15 May 2019
Publication of first-quarter 2019 results
21 May 2019
Annual Shareholders' Meeting in Metz
2 August 2019
Publication of second quarter and first half 2019
results
8 November 2019
Publication of third quarter 2019 results
Contacts
Crédit Agricole press contacts
Charlotte de
Chavagnac + 33 1 57
72 11
17
charlotte.dechavagnac@credit-agricole-sa.fr
Olivier
Tassain
+ 33 1 43 23 25
41
olivier.tassain@credit-agricole-sa.fr
Caroline de
Cassagne
+ 33 1 49 53 39
72
caroline.decassagne@ca-fnca.fr
Crédit Agricole S.A. investor relations
contacts
Institutional
investors
+ 33 1 43 23 04
31
investor.relations@credit-agricole-sa.fr
Individual
shareholders
+ 33 800
000 777
credit-agricole-sa@relations-actionnaires.com
(toll-free number France only)
Cyril Meilland,
CFA
+ 33 1 43 23 53
82
cyril.meilland@credit-agricole-sa.fr
Letteria
Barbaro-Bour
+ 33 1 43 23 48
33
letteria.barbaro-bour@credit-agricole-sa.fr
Oriane
Cante
+ 33 1 43 23 03
07
oriane.cante@credit-agricole-sa.fr
Emilie
Gasnier
+ 33 1 43 23 15
67
emilie.gasnier@credit-agricole-sa.fr
Annabelle
Wiriath
+ 33 1 43 23 55
52
annabelle.wiriath@credit-agricole-sa.fr
Vincent
Liscia
+ 33 1 57 72 38
48
vincent.liscia@credit-agricole-sa.fr
See all our press releases at:
www.credit-agricole.com - www.creditagricole.info
|
Crédit_Agricole |
|
Crédit Agricole Group |
|
créditagricole_sa |
[1] Underlying, excluding specific items. see
p. 15 and following pages
for more details on specific items and p. 27 for the ROTE
calculation
[2] Underlying net income Group share
[3] Constant scope and exchange rates: combining
the contributions to underlying income of Amundi and Pioneer and
taking account of the amortisation of distribution agreements in
Q2-17 and H1-17, excluding the contributions of the three Italian
banks in Q2-18 and H1-18 and those of BSF and Eurazeo in Q2-17 and
H1-17 and excluding forex effect
[4] Contribution to the Single Resolution Fund
(SRF)
[5] Average over last four rolling quarters,
annualised
[6] According to pro forma P2R for 2019 of 9.5% as
notified by the ECB (excl. countercyclical buffer)
[7] According to pro forma P2R for 2019 of 9.5% as
notified by the ECB (excl. countercyclical buffer)
[8] Debt Valuation Adjustment, i.e. gains and
losses on financial instruments related to changes in the Group's
issuer spread
[9] Underlying, excluding specific items. See
p. 15 and following pages
for more details on specific items
[10] Constant scope and exchange rates: combining the
contributions to underlying income of Amundi and Pioneer and taking
account of the amortisation of distribution agreements in Q2-17 and
H1-17, excluding the contributions of the three Italian banks and
of Banca Leonardo in Q2-18 and H1-18 and those of BSF and Eurazeo
in Q2-17 and H1-17 and excluding forex effect
[11] Average loan loss reserves over the last four rolling
quarters, annualised
[12] Including first-half 2018 retained earnings.
[13] The leverage ratio amounts to 5.6% subject to the issue by
the ECB of an authorisation to exempt exposures linked to the
centralisation of deposits with the Caisse des Dépôts et
Consignations to take account of Judgement T-758/16 of the General
Court of the European Union of 13 July 2018.
[14] See calculation of ROTE p. 25Erreur !
Signet non défini.; 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
[15] Constant scope and exchange rates: combining the
contributions to underlying income of Amundi and Pioneer and taking
account of the amortisation of distribution agreements in Q2-17 and
H1-17, excluding the contributions of the three Italian banks and
of Banca Leonardo in Q2-18 and H1-18 and those of BSF and Eurazeo
in Q2-17 and H1-17 and excluding forex effect
[16] Reversal of provisions on termination costs for
distribution contracts with external partners, as the fees proved
to be lower than anticipated.
[17] Debt Valuation Adjustment, i.e.
gains and losses on financial instruments related to changes in the
Group's issuer spread
[18] Disposal of 15.42% interest, consolidated using the equity
method until disposal in June 2017; see press release of 6 June
2017
[19] See press releases of 15, 22, 30 and 31 May and 14 June
2017
[20] Constant scope and exchange rates: combining the
contributions to underlying income of Amundi and Pioneer and taking
account of the amortisation of distribution agreements in Q2-17 and
H1-17, excluding the contributions of the three Italian banks and
Banca Leonardo in Q2-18 and H1-18 and those of BSF and Eurazeo in
Q2-17 and H1-17 and excluding forex effect
[21] Average provisions on loans outstanding over last four
quarters, annualised
[22] See p. 15 for
more details on specific items related to Crédit Agricole
S.A.
[23] See details on the calculation of the business lines' ROTE
(return on tangible equity) and RONE (return on normalised equity)
on p.25.
[24] Including first half 2018 retained
earnings.
[25] The leverage ratio amounts to 4.3% at this date subject to
the issue by the ECB of an authorisation to exempt exposures linked
to the centralisation of deposits with the Caisse des Dépôts et
Consignations to take account of Judgement T-758/16 of the General
Court of the European Union of 13 July 2018.
PR CASA Q2 2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: CREDIT AGRICOLE SA via Globenewswire
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