BPI : Q3 and first nine months results of 2018

International retail banking (IRB) - Contribution to results, stated and underlying, Q3-18 and 9M-18

• Underlying net income of 240 million € in the first 9 months, +15.1% vs first 9 months of 2017, mainly driven by an improvement in the asset quality (decrease in the cost of risk -15.7% compared to same period last year);
• Increase in monthly net banking income, cumulated NBI up to +8.8% vs first 9 months (+6.9% for Q3 2018 vs Q3 2017);
• Cost/income ratio excluding SRF on first 9 monts at 62%, up 3,2 points vs 2017, due to the integration of the 3 Italian banks at the end of 2017;
• International Retail Banking represented 13% of the underlying revenues of Crédit Agricole SA’s business lines (excluding Corporate Centre) in the first 9 months of 2019.

CA Italia : solid business momentum against a difficult backdrop, improvement of asset quality and growth in net profit

Business activity is strong, within a difficult context, benefiting from the integration of the 3 banks.

• NIGS at 49 million € for Q3, year-to-year increase of +19%;
• Net banking income total 453 million €, up +9,7% vs Q3 2017 (-5% vs Q2 2018 due to the usual seasonality effect);
• Underlying operating expenses at 283 million €, +16,5% (+40 million €) vs Q3 2017;
• Underlying cost/income ratio at 62,5%, up by 3,6 points vs Q3 2017;
• Cost of risk at 70 million € at Q3 2018, -12,4% vs Q3 2017, amounted to 73bp;
• Acquisition of 30 000 net new clients in first 9 months of 2018.

Development of outstanding collections and credit:

• Total customer savings at 75,3 billion € at end-September 2018, +17,3% vs end-September 2017;
• Off-balance sheet customer at 34.3 billion € and on-balance sheet customer at 40.9 billion € at end-September 2018 (+19,9% vs end-September 2017 and -2,9% vs Q2 2018);
• Loans at 42,1 billion € at end-September 2018, +13,4% vs end-September 2017.

Activities of Crédit Agricole Group in Italy:

• NIGS at 422 million € on first 9 months;
• Contribution of 12% to underlying NIGS of Crédit Agricole SA business line (excluding Corporate Centre).

Other BPIs : dynamic sales activity and strong increase in net profit thanks to a lower cost of risk

Underlying NIGS of Other BPIs at 97 million € on first 9 months of 2018, +24,3% vs first 9 months of 2017. Cost/income ratio exc. SRF at 61,9%.

 
For Q3 2018:

• Underlying NIGS at 32 million €, +21,3% vs Q3 2017;
• Revenues at 209 million €, +1,4% vs Q3 2017;
• Operating expenses +4,1% over same period. Cost/income ratio at 60,4%;
• Cost of risk at -25 millions €, -23,6% over same period.

More specifically:

• Egypt : NIGS +2% Q3/Q3 linked to an unfavourable base effect, expenses contained below the rate of inflation and net reversals of cost of risk;
• Poland : NIGS +65% Q3/Q3 thanks to the sharp decline in cost of risk (-24% Q3/Q3);
• Ukraine : NIGS +41% Q3/Q3 thanks to growth in revenues (+24% Q3/Q3) and a very low cost of risk;
• Morocco : NIGS +7% Q3/Q3, revenues up +3% and sharp fall in the cost of risk (-15% Q3/Q3).

• Total on- and off-balance sheet customer savings up +10,2% between end-September 2018 and end-September 2017, reaching 13,0 billion €;
• On-balance sheet deposits at 11,4 billion € at end-September 2018, +13% Q3/Q3 (Ukraine +19%, Egypt +11%, Poland +8%, Serbia +7%);
• Loans at 10,7 billion € at end-September 2018, +6,6% over 1 year, +7% Q3/Q3 (Ukraine +27%, Egypt +11% of which loans in local currency +17%, Serbia +10%);
• Surplus of deposits over loans at 1,4 billion € at end-September 2018.