Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France (CAF) H2 2024 earnings summary

Executive summary

• Net profit (group share) for 2024 was €191.9 million, down 21.4% year-over-year, mainly due to margin compression from higher funding costs and a slower pass-through of rate hikes to loan books.

• Product net banking income (PNB) fell 5.1% to €966.2 million, reflecting a shift in deposit structure and increased cost of funds, partially offset by higher commission income and investment returns.

• Operating expenses rose 2.2% to €646 million, driven by wage increases and headcount growth, while the cost of risk increased by 4.9% to €88 million, but remained stable as a percentage of outstanding loans.

• The consolidated balance sheet grew by 4.8% to €75.9 billion, with loan outstandings up 1.1% and customer deposits up 2.2%.

• The solvency ratio stood at 23.6% (down 2 points from 2023), and the leverage ratio at 7.94%, both well above regulatory requirements.

Financial highlights

• Net profit (group share): €191.9m (-21.4% YoY).

• Product net banking income: €966.2m (-5.1% YoY).

• Operating expenses: €646m (+2.2% YoY).

• Cost of risk: €88m (+4.9% YoY), stable at 15 bps of loans.

• Loans outstanding: €56.1bn (+2.2% YoY).

• Customer deposits: €88.2bn (+1.7% YoY).

• Solvency ratio: 23.6% (down 2 pts YoY).

Outlook and guidance

• Improvement in net interest margin expected in 2025 as funding costs stabilize and loan production recovers.

• Continued prudent approach due to macroeconomic and political uncertainties, including potential impacts from US policy changes and high corporate default rates.

• The bank will maintain a strong capital base and liquidity position to support ongoing business and client transitions.