Crédit Agricole (ACA) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months reached €5.4bn, up 7.6% year-over-year, with Q3 net income at €1.7bn and restated Q3 profit up 8.2% YoY due to provision reversals.

• All business lines showed robust activity, with strong customer acquisition and dynamic growth in CIB, asset management, and insurance.

• Cost/income ratio at 54.4% for 9M 2024, with capital and liquidity positions solid and exceeding targets.

• Strategic initiatives included acquisitions (Degroof Petercam, Alpha Associates, Merca Leasing, Nexity Property Management) and new partnerships in China and Europe.

• On track to exceed €6bn net profit in 2024, achieving 2025 targets ahead of schedule.

Financial highlights

• Underlying revenues up 7% in Q3, with asset gathering and large customer divisions showing strong organic growth.

• 9M 2024 underlying net income Group share: €5.4bn (+17.8% YoY); Q3 underlying net income: €1.7bn (+10.9% YoY).

• Cost base increased 4.1% in Q3 after adjusting for integration and one-off items, showing deceleration from Q2.

• Dividend per share for 9M 2024 was €0.83, up 7 cents year-over-year.

• Cost of risk for Crédit Agricole S.A. was stable at 32bp (last four quarters); NPL ratio at 2.5% and coverage ratio at 71.4%.

Outlook and guidance

• 2024 net income Group share target of over €6bn confirmed, one year ahead of Ambitions 2025 plan.

• Management expects continued strong performance across business lines and ongoing support for the energy transition.

• Insurance net profit expected to grow in line with business volume, with 5% medium-term growth guidance.

• No change in strategic direction anticipated despite upcoming governance changes.