Credit Agricole group announced 2022 Third quarter results

Credit Agricole group announced today the Third quarter and first nine months 2022 results.

In third quarter 2022, the Group recorded +460,000 new customers in retail banking, and the customer base continued to grow (+105,000 customers).

Over the first nine months of 2022, the Group recorded +1.5 million new retail banking customers and the customer base grew also (+342,000 customers).

Production also showed solid growth in the third quarter of 2022, with a 3.0%  rise in loan origination at  the Regional  Banks  and LCL (of  which  +15.4% for professional and corporate loans, -3.1%  for home loans in a declining  market3F4  and -1.5%  for consumer finance),  a  +13.0%  increase  in  consumer finance (CACF, managed outstandings) & leasing originations (CALEF), and +6.7% growth in property and casualty insurance premium income compared to the third quarter of 2021.

Last, the insurance equipment rate4F5 was at a high level in the retail banking networks at end September 2022, at 27.1% for LCL, 20.6% for CA Italia, 16.1% including Creval, and 42.6% in the Regional Banks.

In the third quarter of 2022, Crédit Agricole Group’s stated net income Group share came to €2,004 million, down -9.8% compared to the third quarter of 2021.

Specific items in third quarter 2022 had a net positive effect of +€79 million on net income Group share, of which +€101 million related to the gain on disposal of La Médicale and -€21 million for the exceptional provision for moratoria in Poland (-€17 million in net income Group share), the recurring volatile accounting items, such as the DVA (Debt Value Adjustment, i.e. gains and losses on financial instruments related to changes in the Group’s issuer spread) amounting to +€10 million in net income Group share, and hedges on the Large customers loan book for -€10.4 million in net income Group share.

In addition to these items, Lyxor integration costs amounted to  -€4 million in net incomeGroup share, The specific itemsrecorded in third quarter 2021 included recurring volatile accounting items in revenues, such as the DVA (Debt Valuation Adjustment, i.e. gains and losses on financial instruments related to changes in the Group’s issuer spread) amounting to +€3 million in net income Group share and hedges on the Large customers loan book for -€4 million in net income Group share.

The other factors to be added to these recurring items are presented  below:

• the  reclassification  of  the  Serbian  assets  as  held  for  sale  (revenue  impact  of  -€2 million, expenses  of  -€1 million,  net  income  from  assets  held  for  sale  impact  of  -€1 million,  i.e.  a  total  impact  on  net  income Group share of -€4 million), Creval integration costs (-€9 million in operating expenses, -€4 million in net income Group share), and provisions for restructuring costs related to the Turbo project at CACEIS (-€5 million in expenses, -€3 million euros in net income Group share).

Excluding these specific items, Crédit Agricole Group’s underlying net income Group share5F6 amounted  to  €1,924 million, a decline of -13.9% compared to third quarter 2021.

In  third quarter 2022, underlying  revenues  amounted  to  €8,948 million,  down  -0.3%,  and  down  -0.9% at constant scope Creval and Lyxor6F7, compared to third quarter 2021.

Underlying operating expenses excluding the Single Resolution Fund (SRF) stood at €5,680 million in third quarter 2022, a year-on-year rise of +4.5% (+3.9% pro forma Creval and Lyxor).

Overall, the Group’s underlying cost/income ratio excluding the SRFrecorded  an  increase  of  +2.9 percentage  points  to  63.5%  in  third quarter 2022, Underlying  gross  operating  income was down -7.5% year-on-year to €3,268 million.