SOURCE: CREDIT AGRICOLE SA
|
March 05, 2008 05:28 ET
CREDIT AGRICOLE SA : Annual 2007 and Q4-07 results
PARIS--(Marketwire - March 5, 2008) - Solid results in spite of the crisis
FY 2007 results: 4,044 million
- Net banking income EUR 16,768 million (+3.6%)
- Net income - Group share EUR 4,044 million (- 16.8%)
- Annualised ROE after tax 12.2%
- Proposed dividend EUR 1.20 per share (+4.3%)
Results for the 4th quarter of 2007
(Q4-07 compared with Q4-06)
- Net income (Group share) (EUR 857 million)
Crédit Agricole S.A.'s board of directors, chaired by René Carron, met on 4
March 2008 to review the results for the fourth quarter of 2007 and to
approve the accounts for the year ended 31 December 2007.
Over the full year 2007, Crédit Agricole S.A. generated net income (Group
share) of EUR 4,044 million. These results, representing a 16.8% decline,
still demonstrate the Group's resilience in a climate of severe
international financial crisis. They reflect the strength of the Group's
model, which is based on maintaining an even balance among the three
business lines - retail banking, specialised financial services and
corporate and investment banking. The negative impact of the crisis on
revenues in capital market activities was offset by solid growth across all
other business lines. Overall, net banking income rose by 3.6%.
Excluding the impact of the crisis, net banking income would have risen by
25.5% and gross operating income would have increased by 30.5%. This very
good operating performance attests to the quality of the different business
lines' growth engines and particularly international contributions. This
applied especially to international retail banking, specialised financial
services and asset management.
In 2007, the Group firmly established the strength of its international
presence in retail banking. With the successful and rapid integration of
the Cariparma FriulAdria branch networks in Italy, that country became the
Group's second largest domestic market; Emporiki's in-depth transformation
underpins prospects for profitable growth in both Greece and the Balkans;
the equity investment in Banco Espirito Santo in Portugal proved to be
highly profitable; and the subsidiaries in Egypt and Morocco continue to
expand at a fast pace.
Whenever possible, Crédit Agricole S.A. applies the "distributor/producer"
model to its foreign networks which it has so successfully implemented in
France and as is already the case in consumer credit and insurance.
In specialised financial services, 2007 was the first full year for the
joint venture with Fiat, FGAFS, which delivered stronger-than-expected
growth. In the Netherlands, the Group acquired two consumer finance
companies, which combined with the previously owned Dutch entity, is now
the No. 1 consumer finance company in the country.
In asset gathering business line, Crédit Agricole Asset Management
successfully reconfigured its asset management business in Italy at the end
of 2007. With EUR 26 billion in new inflows, the new CAAM SGR subsidiary is
the leading foreign asset management company in Italy. The Group took many
initiatives in this business line. It acquired a private bank in
Luxembourg, thereby consolidating its presence there. At the end of the
year, it created a life insurance company in Japan, the world's second
largest market in this sector.
As regards the Regional Banks, 2007 was a good year in terms of deposits.
In addition, their contribution to the Group's results is up considerably.
2007 was also the start of the implementation of the LCL competitiveness
plan, which is designed to reinforce the bank's reaffirmed business
momentum while keeping it under stringent and controlled management.
On the whole, several major transformations were completed in 2007. The
Group took a both pro-active and responsive approach to perfect its
reconfiguration.
Fourth-quarter results were severely affected by the crisis in the
structured credit markets and Calyon booked EUR 3.3 billion in exceptional
impairment charges relating to its capital market activities. As a result,
Crédit Agricole S.A.'s net income (Group share) was a loss of EUR 857
million for the quarter.
In order to fully support the business lines' growth going forward, Georges
Pauget, Chief Executive Officer, proposed to the Board of Directors, that a
part of the capital gains on disposal from two transactions completed in
January 2008 (the disposal of the holding in Suez and Calyon Financial's
contribution to the creation de Newedge) be allocated to strengthening risk
management and control systems within the Group; an initiative with which
the Board unanimously agreed.
*
* *
At the Annual General Meeting of 21 May 2008, the Board of Directors will
recommend that the shareholders approve a dividend of EUR 1.20 per share,
an increase of 4.3% on the dividend paid in respect of 2006. This
represents a payout ratio of nearly 50%.
The Board of Directors resolved to offer the shareholders two options for
payment of the dividend:
- full payment in cash; or
- payment of 80% of the dividend in shares and the remaining 20% in cash.
During the Board meeting, Crédit Agricole S.A.'s majority shareholder,
S.A.S. La Boétie, indicated that it was strongly in favour and that it
would choose to take 80% of the dividend in the form of new shares,
providing that it is approved at the next Annual General Meeting.
At the end of the Board of Directors meeting, Georges Pauget, Chief
Executive Officer, noted: "The Group's reconfiguration, which was designed
to build strong international positions and business, was successfully
completed within a short period of time. We have demonstrated our capacity
for innovation and for adjusting to market trends in each of our business
lines; a real strength in the current period of turmoil".
Chairman René Carron commented: "We have built a solid model. With its
sound capital base, the Group will make organic growth its priority and it
is not considering any significant new acquisitions."
2008 financial calendar
15 May 2008 First quarter results
21 May 2008 Annual General Meeting of Shareholders
27 May 2008 Coupon date
23 June 2008 Dividend payment
28 August 2008 Half year results
13 November 2008 Third quarter results
This information is provided by HUGIN