Crédit Agricole (ACA) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached €3.7bn, up 14.2% year-over-year; Q2 net profit at €1.8bn, down 10.4% year-over-year due to prior year base effects, but stable after adjusting for exceptional items.

• Revenues for H1 2024 rose 6.3% year-over-year to €13.6bn; Q2 2024 revenues up 1.8% year-over-year, with strong underlying growth across most business lines.

• Cost-income ratio improved to 53.2% in Q2 and 53.4% for H1, well below the 58% medium-term target, despite integration costs.

• Return on tangible equity (ROTE) at 15.5% for H1, significantly above the 12% medium-term plan target.

• CET1 ratio at 11.6% for CASA and 17.3% at group level, both well above regulatory requirements.

Financial highlights

• H1 2024 net income Group share: €3,731m (+14.2% year-over-year); Q2 2024: €1,828m (-10.4% year-over-year); underlying net income for H1: €3,756m (+21.2%).

• H1 2024 revenues: €13,602m (+6.3% year-over-year); Q2 2024: €6,796m (+1.8% year-over-year); underlying revenues for H1: €18,917m (+4.4%).

• Gross operating income increased for H1 and on a comparable basis for Q2.

• Cost of risk stable, with NPL ratio at 2.2% for the group and 2.5% for CASA; coverage ratios remain high.

• Underlying EPS for CASA at €1.09 in H1 2024 (+15.4% year-over-year).

Outlook and guidance

• Confident in exceeding €6bn net profit for full year 2024, a target initially set for 2025.

• Management expects continued growth in underlying results, supported by strong business momentum and recent acquisitions.

• Basel IV implementation expected to be neutral overall, with phased impacts in Q4 2024 and 2025.

• Continued focus on cost discipline, with inflationary pressures now curbed and no further mid-year salary increases planned.

• Normal seasonality expected in H2, with no negative surprises anticipated.