Crédit Agricole (ACA) Q2 2024 earnings summary

Executive summary

• H1 2024 net profit rose 14% year-over-year to €3.7bn; Q2 net profit at €1.8bn, stable after adjusting for exceptional items.

• Underlying net income Group share for H1 2024 up 21.2% to €3,756m for Crédit Agricole S.A.; Group underlying net income up 11.4% to €4,389m.

• Return on tangible equity at 15.5% for H1, well above the 12% medium-term target.

• CET1 ratio at 11.6% for CASA and 17.3% at group level, both down 20bps sequentially due to M&A activity but well above regulatory requirements.

• Strategic acquisitions completed: Degroof Petercam and Alpha Associates, plus partnership with Victory Capital.

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 up 21.2% to €3,756m.

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

• Cost-income ratio at 53.4% for H1 and 53.2% for Q2, well below the 58% ceiling.

• Cost of risk stable, NPL ratio at 2.2% (group) and 2.5% (CASA), with high coverage ratios.

• 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 2024, a year ahead of the original 2025 target.

• Management expects continued strong activity and growth, supported by solid capital and liquidity.

• Basel IV implementation expected to be neutral overall, with phased impacts; FRTB impact expected in 2026.