Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France (CAF) H1 2024 earnings summary

Executive summary

• Net income for H1 2024 was €117M, down 9.7% year-over-year, mainly due to a 6.5% drop in net banking income and a 1.5% rise in operating expenses, reflecting higher personnel costs.

• Credit outstandings remained stable (+0.8%), while client deposits grew 6.3% year-over-year, driven by strong banking savings inflows.

• The cost of risk decreased by 17.7% year-over-year, with a maintained prudent provisioning policy and a coverage ratio of 140%.

• The consolidated balance sheet grew by 1.2% since end-2023, with increased bond portfolio allocations and client deposits.

Financial highlights

• Net banking income: €515M (-6.5% year-over-year), mainly due to lower net interest margin.

• Operating expenses: €326M (+1.5% year-over-year), mainly from higher staff costs.

• Gross operating income: €189M (-17.6% year-over-year).

• Cost of risk: €58M (-17.7% year-over-year); cost of risk on credit outstandings at 12 bps.

• Net income: €117M (-9.7% year-over-year).

• Total assets: €73.3B (+1.2% since 31/12/2023).

Outlook and guidance

• Economic scenario expects gradual normalization, with moderate growth in France and the eurozone, and persistent inflation risks.

• Anticipates continued monetary easing by the ECB and a cautious approach by the Fed, with interest rates expected to remain relatively high.

• Credit and deposit activity expected to remain stable, with ongoing competition and margin pressure.