SOURCE: CREDIT AGRICOLE SA

September 07, 2005 03:00 ET

CREDIT AGRICOLE S.A. : Strong earnings growth Half year 2005 results (H1-05 compared to H1-04)

Paris -- (MARKET WIRE) -- September 7, 2005 -- Paris, 7 September 2005

- Gross operating income E2,231 million (+11.5%)

- Net income - Group share E1,865 million (+31.3%)

- Cost/income ratio 66.7% (-1.4 points)

- Annualised ROE 15.9%

Crédit Agricole S.A. achieved strong growth in the first half of 2005. Net income - Group share amounted to E1,865 million, an increase of 31.3% compared with the same period last year, demonstrating the continuation of the group's durable and profitable growth. The cost/income ratio improved significantly and annualised ROE stood at 15.9%.

This performance reflects solid growth in gross operating income (+11.5%), a further decrease in risk-related costs to an all-time low and a significant increase (+27.2%) in the contribution from equity affiliates.

Second quarter 2005 results

(Q2-05 compared to Q1-05)

- Gross operating income E1,207 million (+17.9%)

- Net income - Group share E960 million (+6.1%)

The Group performed very well in the second quarter of 2005, with gross operating income up 17.9% compared with the previous quarter (up 1.6% compared with the second quarter of 2004), driven in particular by strong growth momentum in all retail banking-related activities and the excellent operating performance of corporate and investment banking activities.

CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS

Net income - Group share for the first half of 2005 came to E1,865 million, an increase of 31.3% compared with the same period in 2004.

Net banking income came to E6,694 million, up 6.7%, driven mainly by sustained activity in asset management and corporate and investment banking. Operating costs were contained at E4,463 million, an increase of 4.4% compared with the first half of 2004, when the cost base contracted sharply. This reduction in costs relates mainly to the excellent condition of corporate and investment banking activities, with synergies able to offset most of the cost increases relating to organic growth. Consequently, gross operating income amounted to E2,231 million, up 11.5% compared with the same period in 2004.

The cost/income ratio improved by a further 1.4 percentage points from 68.1% in the first half of 2004 to 66.7% in the first half of 2005.

Risk-related costs amounted to E261 million; in a continuing favourable risk climate, risk-related costs decreased by 15.5% compared with the same period in 2004.

The contribution from equity affiliates increased by 27.2%

Pre-tax income on ordinary activities came to E 2,727 million, an increase of 21.6% on the first half of 2004. Integration-related costs recognised in the first half of 2005 totalled E144 million (or E98 million net of tax).

Net income - Group share before integration-related costs rose by 27.9% to E1,963 million, giving an annualised ROE of 15.9%.

In the second quarter of 2005, net income - Group share came to E960 million, confirming the positive trend, with growth of 6.1% in relation to the first quarter of 2005 and 22.9% in relation to the second quarter of 2004. This performance is due to ongoing improvement in gross operating income to E1,207 million, an increase of 1.6% compared with the same period in 2004 and 17.9% compared with the first quarter of 2005. Risk-related costs declined further in relation to the first quarter. Income from equity affiliates rose by 39.4%, mainly thanks to the excellent contribution from Banca Intesa.

Investor Relations

Denis Kleiber 00.33.1.43.23.26.78

Claude Rosenfeld 00.33.1.43.23.23.81

Marguerite Borsotto 00.33.1.43.23.34.83

Annabelle Wiriath 00.33.1.43.23.40.42

This information is provided by CompanynewsGroup

Contact Information