(AOF) – Bernard Muselet has been appointed Chief Executive Officer of Crédit Agricole Bank Polska and First Vice-Chairman of the Management Board since December 9, 2022. He is also Senior Country Officer for the Crédit Agricole group in Poland and a member of the Management Committee of Crédit Agricole Agricole SA Bernard Muselet succeeds Jean-Bernard Mas who took over as Chief Executive Officer of BforBank on November 1, 2022.
Since October 2019, Bernard Muselet has been Chairman of the Management Board of Crédit du Maroc and Senior Country Officer of the Crédit Agricole group for Morocco.
With nearly 3,800 employees, 1.3 million individual, professional, agricultural and business customers, Crédit Agricole Bank Polska develops, in synergy with the group’s other entities in Poland, a universal local banking activity with, in particular, a significant position in the consumer credit market.
AOF – LEARN MORE
Key points
– Listed vehicle of the mutualist group of the same name, 1
time
French bank and 8
th
worldwide;
– Net banking income of €22.7 billion, generated by retail banking at 65%, by specialized financial services at 12%, by wholesale banking at 14% and by savings management and insurance ;
– Business model in 3 points – relational excellence by becoming the preferred bank for individuals, entrepreneurs and institutions, local responsibility to support digitalisation and societal commitment by amplifying mutualist 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 – at the end of June, CET 1 ratio of 11.3% and liquidity reserves of €468 billion.
Challenges
– New “Ambitions 2025” plan: net income above €6 billion and return on tangible equity above 12% / acceleration of technological and digital transformation with €20 billion budget for IT and digital, including €1 billion the technological transformation / distribution in cash of 50% of the result;
– 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 aiming for carbon neutrality in 2050 for the own footprint and the investment and financing portfolios; 2025 objective: reduction to 20% of oil exposure to oil extraction /for Amundi’s open funds under active management, an energy rating higher than that of the competition and €20bn committed to impact / growth funds 60% of the investment bank’s exposure to non-carbon energies and development of the platform dedicated to hydrogen projects / 50% increase in the financing of renewable energies in France / 2030 objective: launch of two new businesses, Transitions & Energies for the accessibility of accessible energy transitions and Health & Territories for access to care and “aging well”;
– Benefits from the penetration of Chinese markets (1
time
foreign asset management company) and Indian (cash management offer);
– Reinforcement in the financing of mobility via the partnership with Stellantis, operational in 2023 and the launch of a specialized internal entity.
Challenges
– Integration of Italian CreVal and Lyxor;
– High impact of provisions and the rise in the cost of risk in the Ukraine and Russia zone, resulting in a 16.1% decline in net profit as of 1
er
semester ;
– Difficult market prospects for the 2
n/a
semester, excluding the United States: sharp fall in growth and rise in inflation in Europe, stagflation in emerging countries and rise in key rates.
The negative effects of rising interest rates
The rise in interest rates normally causes an increase in bank income through the loans granted. In Europe, according to a survey conducted by S&P among 85 banking establishments, the sector expects an average increase of 18% in its net interest income. However, this new inflationary context also has undesirable effects, in particular an increase in refinancing costs. It is also accompanied by the fear of a new recession, which would then affect all the bank’s businesses, ranging from loans to asset management, whose income is correlated to market valuations. Reassuring element: the banks of the euro zone are sufficiently solid to face a deterioration of their environment.