Second quarter and first half results 2020

A V-shaped recovery for Crédit Agricole Group

Crédit Agricole Group

Underlying revenues Q2: €8,536m stable Q2/Q2 H1: 16,914m +0,3% H1/H1
Underlying GOI Q2: €3,398m +5,4% Q2/Q2 H1: €5,843m stable H1/H1
Underlying net income Q2: €1,785m  -3,3% Q2/Q2 H1: €2,767m -15,7% H1/H1
CET1 ratio CET1 16.1% +0.6pp June/March, +7.2pp above SREP

• Q2 stated net income Group share: €1,483m (-18.2% Q2/Q2), H1: €2,391m (-24.4% H1/H1); Q2 stated revenues: €8,096m (-4.6% Q2/Q2); H1: €16,462m (-1.3% H1/H1);
• Strong recovery in Group business activity thanks to the Universal Customer-focused Banking model: 685,000 new retail banking customers in H1-20, net promoter score up (+7 pts vs. 2019 in Regional Banks and LCL); growth in outstanding loans excluding State guaranteed loans (+5.9% June/June), accelerated roll-out of the three pillars of the Group project, especially in green finance;
• One of the best levels of loan-loss reserves in Europe. Stable NPL ratio (2.4%), increase in coverage ratio (84.5% +0.2pp vs. March 2020); loan loss reserves of €20.1bn; increase in provisioning (to €1,208m, x2 Q2/Q2), (70% of the increase related to provisioning on performing loans of €424m in Q2). Annualised cost of risk/outstandings in H1 45bp;
• Very strong level of solvency, CET1 at 16.1%, 2022 MTP target already reached (buffer above SREP: 7.2pp);
• Excellent results for the Regional Banks: Underlying net income €663m (+17.9% Q2/Q2). Underlying revenues up: +1.2% Q2/Q2, underlying costs excluding SRF down: -8.9% Q2/Q2; stable NPL ratio (1.8%), high coverage ratio (99.7%), increase in provisioning (+24.9% Q2/Q2)

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

Crédit Agricole S.A.

Underlying revenues Q2: €5,185m +0.1% Q2/Q2 H1: €10,322m +2.4% H1/H1
Underlying GOI Q2: €2,130m -0.5% Q2/Q2 H1: €3,713m +2.9% H1/H1
Underlying net income Q2: €1,107m -10.9% Q2/Q2 H1: €1,758m -13.7% H1/H1
CET1 ratio  12.0% +0.6pp June/March,  +4.1pp above the SREP

• Stated result: €954m (-21.9% Q2/Q2); stated revenues: €4,897m (-4.9% Q2/Q2), stated GOI: €1,838m (-12.9% Q2/Q2);
• GOI up in the first half: €2.1bn Q2-20 -0.5% Q2/Q2; €3.7bn H1-20 +2.9% H1/H1; improvement in Q2 of the cost/income ratio of 1.2pp thanks to stable revenues (+0.1%) and lower expenses (-1.9%);
• Increase in provisioning (€908m, x2.5 Q2/Q2), of which €236m in provisioning on performing loans (48% of the increase). Annualised cost of risk/outstandings in H1 74bp; stable NPL ratio (3.2%), increase in coverage ratio (73.4% +0.9 pp vs. Mar. 20); loan loss reserves: €10.1bn;
• CET1 ratio up sharply (+0.6pp) to 12.0%, incorporating ECB regulatory adjustment measures (Quick Fix for +41bp) and the impact of the market upturn in the quarter on unrealised gains and/or losses on securities portfolios (+19bp). Provision for Q2 dividends of €0.15 per share. Buffer above SREP requirements: 4.1pp at 30 June, +0.6pp vs. March;
• Underlying earnings per share: Q2-20: €0.36, -10.1% Q2/Q2; H1-20; €0.53, -15.5% H1/H1;
• Annualised H1 underlying RoTE 8.5%;
• Liquidity indicators up (€405bn in reserves at 30/06/2020, an increase of €67bn vs. 31/03/2020);
• Activation of the Switch mechanism due to market tensions during H1, stated cost of risk impact of €65m.