(Boursier.com) — The Board of Directors of the Caisse Régionale du Morbihan met on Friday January 27, 2023 to approve the accounts as of December 31, 2022 (being certified by the Statutory Auditors).
In an uncertain environment, Crédit Agricole du Morbihan is continuing its mobilization to serve the Morbihan region, as management explains: “More than 17,000 new customers have joined us since the start of the year, thus enabling us to cross the threshold of 400,000 customers Our overall inflow increased by 2.6% to nearly €14.8 billion in assets Liquid and secure savings (current accounts and passbooks) remained very dynamic (+8.3%). and despite the unfavorable trend in the stock markets, life insurance outstandings also increased by +1.5%.Our outstanding loans financing the local economy increased by 5.8% over one year to more than 10 billion. euros, with in particular a significant growth in financing for professionals and companies. Our “insurance” development continues with a 2.5% growth over the year in the number of property and personal insurance contracts”.
Social net banking income amounted to 243.1 ME, up 12.9% compared to the previous year. In addition to the dynamism of commercial activity, net banking income was also driven by favorable exceptional items (reversal of the home savings provision, taking into account the economic situation of a bonus on insurance commissions) and by the increase in the dividend paid by SAS rue de La Boétie (holding of the Regional Banks holding the majority stake in Crédit Agricole SA).
The intermediation margin is up to 103.7 ME (+8.1%).
Net business commissions are up sharply (+13%) compared to 2021. “This change is explained, on the one hand, by the intensification of activity with our customers, and on the other hand, by the “insurance” sector, which benefits from the development of our customers’ equipment, the improvement in claims and an exceptional bonus.
In accordance with our mutualist and societal commitments, we have set up the “SMS alert” since January 1, 2022. In the event of a debit exceeding the authorizations, the customer is alerted by SMS to allow him to regularize his account in the day while being exempt from fees. This has made it possible to reduce this type of billing by 2.2 ME for the benefit of customers” continues the group.
Operating expenses, which amounted to 147.1 ME, increased significantly by 7.4% while remaining well below the increase in net banking income. This increase is due to the increase in profit-sharing linked to the company’s performance, salary increases in the current inflationary context and the +2% growth in the workforce to support the development of the territory. Miscellaneous operating expenses are also progressing in a context less disturbed by the effects of the health crisis (resumption of more normal operation in terms of travel, training, receptions, etc.) and the preparation of the next business project.
Gross operating income amounted to 96 ME, up 22.5%.
The rate of doubtful and litigious debts is still down to 1.58% against 1.68% as of December 31, 2021 (on a consolidated basis). The coverage rate, which relates impairment to outstanding doubtful and litigious customer debts, fell significantly to 57.96%. It was 61.66% at the end of December 2021.
The cost of risk on a corporate basis amounted to €9.4 million, including €6.3 million in allocations to collective provisions and sectors.
Faced with this limited cost of risk for 2022 and taking into account the uncertain health, geopolitical and economic contexts, the Caisse Régionale has decided to provide the Fund for General Banking Risks (FRBG) with €16.4 million. This enables the Caisse Régionale to maintain a prudent level of risk coverage.
It should be noted that the Caisse Régionale has no direct exposure to Ukrainian or Russian counterparties.
Outstanding provisions for bad debts on a consolidated basis amounted to €92.1 million. Taking this item into account as well as the provisions on sound and sensitive outstandings and also the FRBG, the overall coverage rate (provisions on doubtful, sound, downgraded and FRBG/total gross loans) amounts to 2.88% on consolidated basis.
After corporate tax of 19.1 ME, the Net Social Income stands at 51.2 ME compared to 47.6 ME in 2021.
Consolidated Net Income (Group share) amounted to EUR 82.3 million at December 31, 2022 compared to EUR 68.9 million in 2021, up +19.5%.
A solid financial structure
The financial structure of the Caisse Régionale confirms its solidity with €1,859 million in consolidated shareholders’ equity, Group share as of December 31, 2022. The CET 1 ratio stood at 26.23% as of September 30, 2022. Similarly, the Caisse Régionale du Morbihan complies, as of December 31, 2022, with all the liquidity risk monitoring indicators. These include internal short- and medium-term debt limits, and the LCR ratio, which stood at 118.4% as of December 31, 2022 (for a regulatory requirement of 100%).
The total of the consolidated balance sheet as of December 31, 2022 amounted to 13.9 billion euros, equity and debt represent respectively 13.4% and 86.6% of the consolidated balance sheet. In terms of debt structure, the main sources of financing consist of debts to customers, mainly sight and term deposits (30% of all debts) and debts to credit institutions, mainly vis-à-vis of Crédit Agricole SA with regard to the Group’s internal refinancing rules (63.8% of all debts).
The price of the Crédit Agricole du Morbihan Cooperative Investment Certificate (CCI) listed under the ISIN code FR0000045551 fell over the period. It amounts to 55.50 euros as of December 31, 2022, compared to 70.50 EUR as of December 31, 2021.
The Board of Directors will propose to the General Meeting of March 22, 2023, the payment of a dividend of 2.94 euros per share (i.e. 4.80% yield on the average price in 2022).
Perspectives
In an economic and geopolitical context which has become much more complex since the beginning of 2022, the Caisse Régionale du Morbihan continues more than ever to mobilize by acting to strengthen its proximity and the daily support of its customers.
Despite this complex environment and the many uncertainties for 2023, the Caisse Régionale faces the future with serenity thanks to the growth in its number of customers and its extremely solid solvency base, which allow it to extend its action to serve Morbihan and from Morbihan.