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  • 2010/05/12
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Results at 31 March 2010 Crédit Agricole Group*

Results at 31 March 2010 Crédit Agricole Group*
Net income – Group share: €949 million
Tier 1 ratio: 10.0%

Crédit Agricole S.A.
Net banking income: up 18.8% on Q1 09, up 13.5% on a like-for-like basis
Gross operating income: up 53.5% on Q1 09, up 47.5% on a like-for-like basis
Risk-related costs: down 1.0% on Q1 09
Net income – Group share: €470 million, x2.3 on Q1 09
Tier 1 ratio: 9.6% of which Core Tier 1: 9.2%

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

Crédit Agricole's Board of directors, chaired by René Carron, met on 12 May 2010 to review the accounts for the first quarter of 2010.

In an economic and financial climate that showed some improvement but remained fraught with uncertainty, Crédit Agricole S.A. confirmed its ability to generate solid, recurring results. Net income - Group share more than doubled year-on-year to €470 million in the first quarter of 2010, owing to strong operating performances across the business lines.

Gross operating income reflected this performance, with a 47.5% jump on a like-for-like basis fuelled by continuous and vigorous business momentum, a 13.5% rise in net banking income and nearly stable operating expenses (up 1.2%). It also benefited from the stabilisation in aggregate cost of risk, which dipped by 1.0%.

All business lines that generate recurring revenues reflected this strong business momentum. In French retail banking, the Regional Banks registered solid growth in both deposits (up 7.2%) and loans outstanding (up 3.2%), with an impressive 8.3% rise in net banking income from customer business. LCL opened more than 43,000 net new accounts, a rise of 27% on the first quarter of 2009, while demand deposits increased by 13.6% and residential mortgage loans outstanding were up by almost 6%. The Group thus confirmed its position as the leading financial partner to the French economy. In international retail banking, net banking income moved up 4.8% despite deteriorating economic conditions in certain countries where the Group operates.

In Specialised financial services, revenues were 15.3% higher than in Q1-09. In Asset management, insurance and private banking, business was robust, underpinned partly by the creation of Amundi and the takeover of Caceis. The business line’s net banking income rose by 54.1% (24.1% on a like-for-like basis), propelled by aggregate inflows which almost doubled to €14.6 billion compared with the first quarter of 2009.

In Corporate and investment banking, revenues from ongoing activities were down 8.6% on an unusually high basis of comparison in the first quarter of 2009. However, they were 20.3% higher than in the fourth quarter of 2009, reflecting CA-CIB's solid positions in structured finance amongst other areas.

After two years of adverse effects from the financial crisis, Corporate and investment banking reported net income-Group share of €157 million in the first quarter. Results of ongoing activities (€379 million) amply offset the cost of discontinuing operations, which as anticipated, continues to fall, despite Crédit Agricole S.A.'s adoption of more pessimistic assumptions on final losses and recoveries.

In Greece, despite unfavourable economic conditions, Emporiki improved its gross operating income to €46 million thanks to the implementation of the restructuring plan unveiled last autumn. Operating expenses were cut by 5.7%, while revenues rebounded by 25.1% owing to improvement in margins and to local customers’ trust – two benefits directly derived from Crédit Agricole S.A.'s backing of Emporiki. However, to factor in the effects of the macroeconomic situation on all components of the loan book, substantial provisions were set aside in the first quarter, and this despite the low cost of risk on new generations of loans granted according to the procedures introduced over a year ago.

First-quarter results also included the loss on disposal of a 0.8% stake in Intesa Sanpaolo, which was completed at the end of February according to the agreement.

Crédit Agricole S.A.'s net income-Group share was €470 million in the first quarter. Excluding the impact of discontinuing operations in Corporate and investment banking and of the loss on disposal of a stake in Intesa Sanpaolo, recurring net income for the quarter amounted to approximately €850 million – a figure that is more representative of the performance delivered across the Group by all business lines.

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