(AOF) – The Crédit Agricole group said it had ceased all new financing for Russian companies and all commercial activity in the country since the start of the conflict. It has contacted international corporate clients to determine with them the terms and conditions for suspending the services provided to them locally by Crédit Agricole CIB, for implementation in the coming weeks. As a reminder, the subsidiary of Crédit Agricole CIB present in Russia has 170 Russian employees and does not carry out any retail banking activity.
Last year, it achieved a profit after tax of 3.7 million euros.
With regard to Ukraine, the group stresses that its priority, since the start of the war, has been to secure and provide material and financial support to the 2,400 employees of Crédit Agricole Ukraine: still present in the territory, they remain mobilized to allow the continuity of essential services to customers. The group has just set up a solidarity contingency fund to support employees hit hard by the war.
A solidarity fund of 10 million euros has been created to meet the needs of employees and Ukrainians who are victims of the war.
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Key points
– Listed vehicle of the mutualist group of the same name, 1
time
French bank and 8
th
worldwide;
– Net banking income of €35.6 billion, generated by retail banking at 57%, by specialized financial services at 18%, by wholesale banking at 17% and at 8% by savings management and insurance;
– Business model redefined in 2019 in 3 points – relational excellence by becoming the preferred bank for individuals, entrepreneurs and institutions, local responsibility to support digitalization and societal commitment by amplifying mutual commitment;
– Capital held at 55.3% by the regional mutuals, hence the strong presence of their representatives on the Board of Directors (10 out of 21 members) chaired by Dominique Lefebvre, Philippe Brassac being Chief Executive Officer;
– Solid financial position with a CET 1 ratio of 17.4% at the end of September 2021.
Challenges
– Medium-term plan 2019-2022: desire for growth by being 1st in customer conquest, revenue synergies of €10 billion and technological transformation with a dedicated envelope of €15 billion / net profit target above €5 billion, and profitability equity of more than 16%;
– Innovation strategy, one of the 3 levers of the business model: internally: 90% of Group entities having a “data-centric” architecture in 2022, and €300 million in IT efficiency gains , 100% of IT employees trained in new technologies in the University of Information Systems and 100% of emerging technologies tested on new business services / towards customers: expansion of the range of leading applications (Ma banque Pro, Pro&Entreprises LCL , etc…), offer of digital and mobile checkout solutions for small/medium merchants, European electronic banking offer for major retailers and complete e-commerce range;
– Environmental strategy detailed in the “Planet 21” roadmap: financial indicators: financing of 1/3 renewable energy project (1/4 in 2020), doubling in 3 years of the green financing portfolio (2
th
world rank) / creation of an extra-financial reporting platform / total exit from coal financing in 2030 / hydraulic energy consumption (already 92%) for its data centers, agencies and administrative sites / SRI offer in management of assets (€22 billion in green and social assets at Amundi);
– Benefits from the penetration of Chinese markets (1
time
foreign asset management company) and Indian (cash management offer);
– Diversification of investment banking into medium-sized companies.
Challenges
– Net assets of €13.2 per share at the end of September 2021, compared to the stock market price;
– Monitoring of the cost/income ratio, down slightly to 57.2%;
– Integration of the Italian CreVal and acquisition of Lyxor which will give the group 14% of the ETF market in Europe;
– At the end of September 2021, 7.3% increase in revenues and 72% rebound in net profit;
– 2020 dividend of €0.8, payable in shares and share buyback program.