Crédit Agricole (ACA) Q3 2024 Fixed Income earnings summary

Executive summary

• Q3 results show continuity with previous quarters, with stable activity and financials compared to Q2.

• Net income group share for the first nine months is €6.5bn, stable year-over-year; Q3 net income is €2.1bn, down from last year due to one-off reversals in Q3 2023.

• Revenues for the quarter are €9.2bn, stable year-over-year, but up 4.1% when excluding last year's provision reversals.

• Asset quality remains strong with cost of risk at 26bps, in line with targets.

• Solvency remains high at 17.4%, with significant buffer above regulatory requirements.

Financial highlights

• Net income for Crédit Agricole S.A. for the first nine months is €5.4bn, close to the €6bn full-year guidance.

• Retail banking and consumer finance saw solid performance and net customer growth of +100,000 in Q3.

• Home loan activity rebounded, up 30% from Q2; corporate loan production increased in France.

• International loan activity grew 24% in volume, with positive trends in Italy, Poland, and Egypt.

• Asset management and insurance posted record inflows and assets under management, with Amundi seeing €15bn in net inflows (excluding mandate exit).

• CIB achieved record revenues for Q3 and the first nine months.

• Underlying revenue growth is 4% year-over-year, excluding base effects.

• Recurring expenses rose 2.9%, normalizing after past inflation impacts.

• Cost of risk stable at €800m for the quarter, with consumer finance showing improvement.

Outlook and guidance

• Guidance for €6bn net income group share for 2024 is confirmed.

• Funding plan for 2025 is expected to be slightly lower than 2024, reflecting high liquidity and business needs.

• No significant impact observed from political uncertainty in France on individual or corporate client behavior.