BPI : 2019 First quarter results

BPI business line

Strong business dynamics for all banks and all segments - Increase in results and profitability driven by decline of expenses and cost of risk

Underlying net income of 79 M€ in Q1 2019, +13.8% vs Q1 2018, helped by the combination of stable revenues, slightly reduced expenses and more significantly reduced cost of risk, and a lower tax expense.

Net banking income stable on Q1 2019 vs Q1 2018 at 677M€.

Underlying cost/income ratio excluding SRF at 62.1%, up 0.4 point on Q1 2019 vs Q1 2018.

Increase in net banking income at 79 M€, +13.8% on Q1 2019 vs Q1 2018.

On the overall BPI business line, Italy accounts for 2/3 of revenues and 4/5 of loans and on-balance sheet deposits, followed by Poland and Morocco. Although CA Italia is only 76.9%-owned by Crédit Agricole S.A., it makes up 54% of the division’s underlying net income Group share.

CA Italia

Good business momentum across all segment despite uncertain economic environment – Improvement of profitability thanks to the reduction in expenses and cost of risk

Underlying net income at 43 M€ for Q1 2019, year-on-year increase of +8.1% largely attributable to decreased cost of risk thanks to the ongoing improvement in the quality of the loan book.

Net banking income total 452 M€, down -3.9% for Q1 2019 vs Q1 2018, with financial fees adversely affected by the unsupportive market environment.

Underlying operating expenses at 284 M€, -1.5% vs Q1 2018.

Underlying cost/income ratio at 62.8%, up by 1.5 point vs Q1 2018.

Strong decrease of cost of risk by -15.1% at Q1 2019 vs Q1 2018 thanks to continuous improvement in the portfolio’s quality.
 
Development of outstanding collections and credit at end-March 2019:

• Total customer savings at 74,3 billion € (-1.8% vs March 2018)
• Off-balance sheet customer savings at 34.5 billion € (+2.8% vs March 2018)
• On-balance sheet deposits at 39.8 billion € (-5.5% vs March 2018)
• Loans at 42,5 billion € (-1.5% vs March 2018)

 
Net income Group share for all Crédit Agricole S.A. entities in Italy amounted to 168 M€ in Q1 2019. They contributed 16% to the underlying net income Group share of the Crédit Agricole S.A. core businesses.

Other BPIs

Strong pick-up in business momentum. Strong increase in revenues and earnings, clear improvement in C/l ratio

Underlying NIGS of Other BPIs at 37 M€ for Q1 2019, up +21.3% year-on-year, primarily on the back of very strong growth in revenues and gross operating income, despite the rise in cost of risk stemming from a very low comparison base.

Net revenues at 224 M€, +8.6% year-on-year, boosted by a volume effect (loans and deposits).

Operating costs +1.0% vs Q1 2018.

Cost/income ratio +60.7%, up by 4.5 points vs T1 2018.

Cost of risk increases by +46.8% - but was still low - vs Q1 2018 to reach -22 M€
 
By country:

• Egypt : NBI +9% and NIGS +2% Q1/Q1 due to increase in revenues (+9% Q1/Q1) and zero cost of risk
• Poland : NBI +3%, GOI +8% Q1/Q1 and unfavourable base effect
• Ukraine : stable NIGS Q1/Q1 thanks to growth in revenues (+13% Q1/Q1) and zero cost of risk
• Crédit du Maroc : NIGS +14% Q1/Q1 in line with GOI +3% and sharp fall in the cost of risk (-39% Q1/Q1)

Document

• To read the press release, click here