CREDIT AGRICOLE company profile

(AOF) – Key points

– Listed vehicle of the mutualist group of the same name, 1st French bank and 8th worldwide;

– Net banking income of € 35.6 billion, generated by local banking at 57%, by specialized financial services at 18%, by large clientele banking at 17% and at 8% by savings management and insurance;

– Business model redefined in 2019 in 3 points – relational excellence by becoming the preferred bank for individuals, entrepreneurs and institutions, local responsibility to support digitization and societal commitment by amplifying mutualist commitment;

– Capital 55.3% owned by the regional mutuals, hence the strong presence of their representatives on the board of directors (10 out of 21 members) chaired by Dominique Lefebvre, Philippe Brassac being CEO;

– Solid financial position with a CET 1 ratio of 17.4% at the end of September 2021.

Challenges

– Medium-term plan 2019-2022: desire for growth by being 1st in conquering customers, revenue synergies of € 10 billion and technological transformation with a dedicated envelope of € 15 billion / target of net income above € 5 billion, and profitability equity of more than 16%;

– Innovation strategy, one of the 3 levers of the business model: internally: 90% of the Group’s entities have a “data-centric” architecture in 2022, and € 300 million in IT efficiency gains , 100% of IT employees trained in new technologies in the Information System University and 100% of emerging technologies tested on new business services / towards customers: extension of the range of leading applications (Ma Banque Pro, Pro & Entreprises LCL , etc…), offers digital and mobile checkout solutions for small / medium-sized traders, European electronic payment services for large brands and a full range of e-commerce;

– Environmental strategy detailed in the “Planet 21” roadmap: financial indicators: financing of 1/3 renewable energy project (1/4 in 2020), doubling in 3 years of the green financing portfolio (2nd in the world) / creation of an extra-financial reporting platform / total exit from coal financing in 2030 / consumption of hydraulic energy (already 92%) for its data centers, agencies and administrative sites / SRI offering in asset management (22 € bn in green and social assets at Amundi);

– Impact of penetration of the Chinese (leading foreign asset management company) and Indian (cash management offer) markets;

– Diversification of investment banking in mid-sized companies.

Challenges

– Net assets of € 13.2 per share at the end of September 2021, to be compared with the stock market price;

– Monitoring of the cost / income ratio, down slightly to 57.2%;

– Integration of the Italian CreVal and acquisition of Lyxor which will give the group 14% of the ETF market in Europe;

– At the end of September 2021, a 7.3% increase in revenues and a 72% rebound in net profit;

– 2020 dividend of € 0.8, payable in shares and share buyback program.