(Boursier.com) — The GNP of the CRCAM Sud Rhône Alpes stood at €324.2 million as of September 30, down -4.3% year-on-year due to the impact of the very rapid rise in rates which has an unfavorable impact on the intermediation margin. The hedging of interest rate risk as well as the diversification of income (4.4% increase in commissions linked to sustained activity) cushion the effect of the squeeze in the credit margin. Income from investments increased by +17.6%, notably due to the Group’s dividends. Operating expenses, amounting to 212.4 ME, recorded an increase of +1.9% over one year linked in particular to the evolution of salaries and expenses affected by inflation.
The cost of risk reached 19.3 ME over the first three quarters (20.1 ME in 2022) due to provisions on certain individual files. The CDL (Doubtful and Disputed Debts) rate in capital on outstanding remains under control at 1.23%.
After taking into account corporate tax, the social net income at the end of September 2023 stands at 81.2 ME, down -5.4% year-on-year.
Taking into account the restatements linked to IFRS standards and the taking into account of the results of the consolidated structures, the consolidated net income group share as of September 30, 2023 stands at €79.7 million, an increase of -17.4% compared to 2022 which was high.
The collection provided by customers and kept on the balance sheet amounts to €16.3 billion, representing approximately 59% of the Regional Bank’s balance sheet. Short-term market debt is €0.3 billion, covered by liquidity reserves (liquefiable securities, BCE receivables) worth €2 billion. The LCR ratio calculated on the average of the last 12 months amounts to 120% for a regulatory requirement of 100%. It is 110% as of September 30, 2023. Prudential capital, composed almost entirely of Core Tier one, amounts to €1.67 billion (data as of June 30, 2023).
The Regional Fund has a high level of solvency with a CRD5 ratio of 20.46%. The level of Crédit Agricole Sud Rhône Alpes’ ratios therefore confirms the robustness of the Regional Bank as well as its capacity to develop and support its clients in its territory.
Outlook
In a context of successive crises with economic effects for our customers, the Crédit Agricole Group and the Regional Bank demonstrate the strongest fundamentals on the market (equity ratio, liquidity ratio and reserves, rate of Doubtful and Disputed Debts) . The diversity of the clientele, the intensity of the customer relationship and the presence of the fund in the territory are strong elements of robustness, particularly in the current period.
The financial context has, for several months, been very marked by the sudden rise in rates. The impacts of this increase in rates on the financial results of the Fund are felt on our results as of September 30 with a drop in the intermediation margin, due to the rapid evolution of the cost of the resource. At the same time, the production of credits gradually makes it possible to renew the average rate of the asset but at a slower pace because the outstanding credits are mainly at a fixed rate, which preserves the purchasing power of borrowing customers.
As noted in our quarterly accounts, the diversity of the Caisse Régionale’s businesses generates growth in revenues from commissions and investments, which partially offsets the drop in the intermediation margin.