November 14, 2008 10:26 ET

CREDIT AGRICOLE SA: Results for the Third Quarter and First Nine Months of 2008

PARIS--(Marketwire - November 14, 2008) - Crédit Agricole GROUP*

Leading partner to the French economy over the first nine months of 2008

Significant growth in outstanding loans (9M 2008/9M 2007):

+19.2% in loans to SMEs

+8.5% in residential mortgage loans

Shareholders' equity (Group share): EUR 64.2 billion

Net income (Group share):

Third quarter: EUR 920 million

First nine months of 2008: EUR 2,516 million

Crédit Agricole S.A.

A solid, resilient, responsive model

Shareholders' equity (Group share): EUR 42.2 billion

Net income (Group share):

Third quarter of 2008: EUR 365 million

First nine months of 2008: EUR 1,333 million

(*) Crédit Agricole S.A. and 100% of the Regional Banks

Crédit Agricole S.A.'s board of directors, chaired by René Carron, met on 13 November 2008 to review the accounts for the nine months to 30 September 2008. Over the first nine months, net income, Group share, was EUR 1,333 million, including EUR 365 million in the third quarter.

The financial crisis that characterised the business climate during the first half intensified during the third quarter, creating unprecedented conditions in the financial sector: the interbank market collapsed, issues of fixed-income securities ground to a virtual halt, several major operators ceased to exist, and others were rescued through forced mergers, buyouts or State bailouts. This extraordinary turmoil led the governments of most industrialised countries to take far-reaching measures to restore confidence and to implement plans to provide financing to the economy, as was the case in France.

As the leading financial partner to the French economy, with EUR 420 billion in total loans outstanding held by the Regional Banks and LCL, lending by the Crédit Agricole Group increased significantly, with a 19.2% jump in loans to SMEs and a solid 8.5% rise advance in residential mortgages over the 12 months from September 2007 to September 2008.

The Crédit Agricole Group will of course continue to play its full role supporting the government measures and has committed to further increase lending by 3% to 4% in 2009.

Crédit Agricole S.A.'s accomplishments in this extremely difficult climate show the resilience, responsiveness and solidity of the model developed by the Group.

Resilience, when measured by revenues and net income, Group share. Despite tougher economic conditions, net banking income edged down only 1.9% year-on-year in the third quarter of 2008; taking into account the scope of consolidation excluding Calyon's discontinuing operations, revenues were down by 1.3% over the quarter and up by 0.3% over the first nine months. This performance was driven mainly by growth in French and international retail banking and by the highly resilient consumer finance and asset management businesses.

Net income, Group share, declined by 35.0% over the quarter and by 30.8% over the first nine months, scope of consolidation excluding Calyon's discontinuing operations.

Responsiveness, as evidenced by the extensive operational and financial measures that were rapidly put in place during the year: capital increase, which was launched at the right time and successfully completed, ensuring as of June a Tier 1 ratio of at least 8.5%; refocusing the corporate and investment banking on its strengths (structured finance and commercial banking, brokerage, fixed income) while reducing the model's volatility and cutting costs; active balance sheet management by initiating a EUR 5 billion asset disposal programme; the introduction of a new Group organisation by strengthening the executive management team so as to focus operational oversight.

Solidity, underpinned by a level of Shareholders equity (Group share) of EUR 42.2 billion at end-September 2008) and capital ratios that are among the highest in Europe (Tier 1: 8.5%); solidity, which is reinforced by the Group's structure: the Regional Banks, which form the Group's base, have committed to back Crédit Agricole S.A. up to 100% of their capital funds and reserves, which amounted to EUR 41 billion at end-September 2008.


* *

After the Board meeting, René Carron, Chairman of Crédit Agricole S.A.'s Board of Directors, noted: "These results are the fruit of the Group's collective efforts and the dedication of our staff. They substantiate the relevance of our business model, which is based on achieving a combination of resilience and responsiveness in all of our business lines. Moreover, with a Tier 1 ratio of 8.5% at 30 September, Crédit Agricole S.A. confirmed its position as one of Europe's soundest financial institutions."

Georges Pauget, Chief Executive Officer of Crédit Agricole S.A., commented: "In the prevailing climate, the growth achieved in French and international retail banking and the resilience demonstrated by the consumer finance and asset management businesses are quite noteworthy. In France, Crédit Agricole consolidated its position as the leading partner to the domestic economy. At 30 September 2008, loans to small and midsize businesses were up 19.2%, lifting our total loans outstanding to EUR 73.4 billion. We will continue to fulfil our mission to serve all segments of our customer base -individuals, companies and local authorities."

2009 financial calendar

4 March 2009 Q4 and full-year 2008 results

14 May 2009 Q1 2009 results

19 May 2009 Annual General Meeting

27 August 2009 Q2 2009 results

10 November 2009 Q3 2009 results

This information is provided by HUGIN

Contact Information

  • Contact:
    Crédit Agricole S.A.

    Anne-Sophie Gentil - ( +33 (0) 1 43 23 37 51

    Stéphanie Ozenne - ( +33 (0) 1 43 23 59 44

    M: Communication

    Louise Tingström - ( +44 (0) 789 906 6995