Editorial

Annual General Meeting - MAY 2010

More than one thousand people attended Crédit Agricole S.A.’s Annual General Meeting in Paris on 19May: an opportunity for managers to reaffirm the Group’s financial solidity and commercial dynamism.
The fact that the Crédit Agricole S.A. share has recently been penalised more than the banking sector average can be explained by two circumstantial factors that have no bearing on validity of the fundamental strategic decisions made. Indeed, René Carron, Chairman of Crédit Agricole S.A. (until 19 May 2010), and Jean-Paul Chifflet, Chief Executive Officer, highlighted the positive results of the refocussing moves made by the Group.

Greek crisis and Basel Committee
The situation facing Greece (Crédit Agricole S.A. has given details of its exposure to the country has caused a drop in market confidence towards the stock. The particular situation of Greece does not undermine the rationale for the Group’s international development: its overall international network is displaying strong commercial momentum. As for the Group’s financial solidity, its readability is disturbed by the Basel Committee’s work on capital adequacy for banks, which is not expected to be finalised until the end of 2010. This should not obscure the fact that the Crédit Agricole group is today one of the better capitalised banks, with €68.8 billion of shareholders’ equity – group share and a Tier One ratio of 9.7% at the end of 2009.

Strategic decisions bearing fruit
The Crédit Agricole group can now feel the first benefits of strategic decisions made in 2008. Costs fell significantly in 2009: -5.5% year on year at constant scope. Retail banking and the specialised activities have achieved some fine performances, with stable and recurring results. The refocussing of corporate and investment banking is bearing fruit, as Crédit Agricole CIB returned to profit in the first quarter of 2010. Moreover, Crédit Agricole reaffirmed its regional roots, while consolidating its international positions. This is an opportunity to remind that the Group’s values are primarily grounded in the men and women of whom it is composed, and who place proximity among the most important of these values. By distributing more than 90% of its profits to shareholders in a dividend of €0.45 per share, Crédit Agricole S.A. has chosen to recognise their loyalty.

“Our governance is a living reality. The Board of Directors has opened up to independent directors, women, individuals from outside the Group, from European countries, who have brought with them valuable viewpoints and experience. I am particularly proud of these developments within the Board of Directors, which are a response to the development of the Group.”
René Carron, Chairman (until 19 May 2010)

“Crédit Agricole could not remain enclosed in a French cocoon. Its dynamism has always been fed by great changes in society, French society at first, but now European society. At each stage, we have invented structures, expanded our skills and developed our activities so as to accompany the real economy.”
Jean-Paul Chifflet, Chief Executive Officer