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September 2011
Did you pass the stress tests?
Based on the results of the Stress Tests published by the European Banking Authority (EBA), the Crédit Agricole Group ranks among the leading French banks. Its projected Core Tier One Capital ratio stands at 8.5% in 2012 in a stressed scenario, according to the method used by the EBA. Based on the 5% threshold set by the EBA for the tests, these results show the resilience and effectiveness of the Crédit Agricole Group’s model. The stress tests conducted on 90 European banks accounting for more than 60% of the European Union’s total banking assets aimed to assess banks’ ability to cope with major shocks and their solvency in certain scenarios of heavy pressure on the global economy. It is worth highlighting that the 2011 stress tests were extremely demanding, especially in terms of the macroeconomic scenarios and the assumptions adopted by the EBA. The indicative figures produced by the round of tests should be considered merely as projections.
Find out more on the stress tests
Why were Crédit Agricole S.A.’s credit ratings downgraded?
On 20 May, Standard and Poor’s downgraded Credit Agricole S.A.’s long-term credit rating from AA - to A+ owing to the Group’s sensitivity to Greece’s macroeconomic and financial situation. Even so, the rating agency acknowledged that all the Group’s businesses (except for Emporiki) are performing well, it is demonstrating good resilience and boasts a level of capital commensurate with its rating.
Fitch Ratings reiterated Crédit Agricole S.A.’s AA - rating with a stable outlook on 22 July. According to Fitch, this rating reflects the Group’s dominant position in retail banking, the high quality of its assets, its limited exposure to market risks, its solid customer deposit base, its healthy solvency ratios and its improving profitability.
On 15 June, Moody’s put the principal ratings of the three leading French banks - BN P Paribas, Société Générale and Crédit Agricole S.A.- on credit watch with negative implications. This decision to add the banks to its watch list was caused by their exposure to Greece given the backdrop of Moody’s recent rating downgrade of Greek sovereign debt. Crédit Agricole S.A. currently boasts the best long-term rating (Aa1) awarded by Moody’s to French banks, and we await the end of the credit watch period to see whether the rating will be confirmed or downgraded.
Written before 25 August 2011
June 2011
What is the timing for the dividend payment?
The net dividend for 2010 has been set at 0.45 euro per share. We are offering shareholders two options for dividend payment: either full payment in cash, or full payment in shares, at an issue price of 9.49 euros. The share will go ex-dividend on 26 May and you will have until 7 June to choose your payment option, with payment following on 20 June. If we receive no reply from you, payment will automatically be made in cash. Following a positive vote at the AGM, Crédit Agricole S.A.’s majority shareholder, SAS Rue La Boétie, has confirmed its intention to opt for payment in new shares.
In addition, the AGM approved a resolution concerning the creation of an increased dividend, up to the legal maximum of 10%, for shareholders who have been registered for at least two years. This provision will apply for the first time to the dividend for the year ending 31/12/2013, which will be paid after the AGM of 2014, for shareholders who will have held their fully registered shares or administered registered shares from before 31/12/2011 until the date of dividend payment.
You will find more details on the increased dividend and on the different types of registered shares in the next edition of En direct, due to be published in mid- September.
Have Crédit Agricole’s activities in Egypt and Japan been affected by the crises in those countries?
In Egypt, the situation has normalised. Expatriates’ families who had come back to France are gradually returning to Cairo.
The expatriates themselves had chosen to remain in Egypt to keep the bank operating alongside their Egyptian colleagues.
In Japan, the entities operated by Crédit Agricole (Crédit Agricole Corporate and Investment Bank, Amundi and Crédit Agricole Life Insurance Japan) have remained fully operational, even at the most difficult period of the disaster just after the tsunami. Crédit Agricole decided to send a first tranche of aid amounting to 100 million yen (800,000 euros) in order to make an immediate contribution to the reconstruction efforts and show solidarity with the population affected.
March 2011
How Taking part in the forthcoming Annual General Meeting?
You must have the necessary documents to take part in the Annual General Meeting on 18 May in Strasbourg, vote remotely or by proxy. If you own Crédit Agricole S.A. bearer shares (held in France in a stock account or a PEA share savings plan at a bank branch), contact your bank branch to obtain these documents. Owners of registered shares will receive the necessary documentation automatically.
In 2011, for the first time, Crédit Agricole S.A. will offer the option of voting by internet from 26 April until 15.00 on 17 May.
Impact of the French 2011 Finance Law on taxation of dividends?
In France, the general tax system will end tax credits (€115 for a single person and €230 for a couple) and raise by one percentage point to 41% the upper rate of income tax for income received from 1 January 2010. The flat rate withholding tax has been raised by one percentage point to 19% for income received from 1 January 2011. Finally, social charges have been raised to 12.3% (from 12.1%) on capital gains realised in 2010 and dividends received from 1 January 2011.
What are these exceptional items that have affected the results?
2010 results incorporate the impacts of several very significant but non-recurring items, including the effects of the disposal of part ofthe investment in Intesa Sanpaolo (-€171 million) and the deconsolidation of the remainder of the stake after renouncing to the significant influence (-1.24 billion euros), a 418 million euro goodwill impairment charge for Emporiki, and the recognition of the “exit tax” in life insurance, with a net positive effect above 400 million euros.
