Crédit Agricole CIB Annual Report 2023

Crédit Agricole CIB Overview

• Universal Registration Document filed on March 25, 2024, with AMF under Regulation (EU) 2017/1129.
• Offers are subject to completion with a securities note, if necessary.
• The document is available in French and translated into English for accessibility.

Key Rankings and Figures

• Present in 46 countries with 54 million customers.
• Top provider of financing to the French economy and the number one European asset manager.
• Largest insurer in France and number one retail bank in the EU by customer base.
• Ranked as the 10th largest global bank by balance sheet size.
• 11.8 million mutual shareholders, making it the world's largest cooperative mutual bank by revenue.

Structure of Crédit Agricole Group

• Comprises Crédit Agricole S.A., regional and local banks, plus subsidiaries.
• 39 regional banks hold a majority share of Crédit Agricole S.A., with the majority owned through SACAM Mutualisation.
• Significant ownership distribution: 59.7% institutional investors, 40.3% individual shareholders.

Business Model and Commitment

• Focus on sustainable finance and long-term client support to foster the real economy.
• Strong corporate social responsibility (CSR) commitments highlighted.
• Employees considered a crucial asset to the business.

Significance in Capital Markets

• Leader in syndicated loans, ranked 2nd in France and 3rd in EMEA.
• Holds a prominent position in bond issuance, 2nd in all European bonds and sustainable bonds worldwide.
• Recognized for excellence in structured finance and trade finance, with multiple awards highlighting its leadership in the sector.

Diversity and Expertise

• Offers a diverse array of business lines, with a focus on corporate finance.
• Wealth management services tailored to individual client aspirations.
• Predominantly oriented towards corporate clients, comprising 35% financial institutions and 65% corporations.

Awards and Recognition

• Acknowledged as a top performer in trade finance and derivatives, specifically for its success in structured products.
• Best Bank in Monaco for Indosuez Wealth Management, showcasing excellence in client servicing and advisory capabilities.### Capital and Financial Overview
• Crédit Agricole CIB has a fully loaded CET1 ratio of 12.6% and €29.9 Billion in equity.
• Significant financial contributions include €321.5 Million outstanding in social notes and €4.5 Billion revenues from Europe.

Core Functions and Client Support

• Provides asset-backed financing, cash management, and international business solutions.
• Offers syndicate loans, CSR innovation, risk hedging, and investment solutions.
• Assists clients in managing balance sheet issues and wealth transfers.

Commitments and Strategic Ambitions

• Societal commitment focuses on energy transition and environmental sustainability.
• Growth model is concentrated on European clients, expanding business lines while leveraging strengths.

Responsible Finance and Employment Practices

• Actively engages in cultural sponsorship and has a strong ethical culture.
• Achieved an impressive 80% participation rate in the Accountability Index (IMR).

Sustainable Finance Contributions

• Co-founder of the Green Bond Principles, significant player in green financing.
• Ranked 2nd globally for bookrunner in euros related to green, social, and sustainability bonds.
• Holds a green asset portfolio of €17 Billion and €13.8 Billion in low-carbon energy exposures.

Digital Strategy and Transformation

• Focused on long-term digital strategies to facilitate client transformations.

Ownership and Corporate Structure

• Extensive ownership structure; Crédit Agricole S.A. directly owns various subsidiaries with notable stakes ranging from 67.5% in Amundi to 100% in several entities.
• Engaged in consumer finance and corporate services through various specialized structures.

Consolidated Financial Statements

• As of December 31, 2023, the corporate center integrates diverse financial services with significant partnerships and joint ventures.
• Asset servicing, leasing, and factoring capabilities expand the overall service offering of Crédit Agricole Group.### Organisational Structure
• Crédit Agricole Group has a complex structure with various entities, including CACEIS, which has 100% control, and CACEIS Bank, with a 33.3% stake in Fund Channel.
• Crédit Agricole Group holds a 99.9% control over Regional Banks, evidencing strong oversight and centralized management.

Financial Performance Highlights

• In 2023, Crédit Agricole CIB achieved record revenues of over €6.3 billion, a 10% increase from 2022.
• Net income for the Group share reached €2,017 million, marking a 23% rise compared to the previous year.
• Significant growth in market and financing activities is attributed to increasing interest rates and market volatility.

Economic Context and Strategy

• The group continues to navigate through an economic landscape impacted by inflation, geopolitical tensions, and environmental concerns.
• Central banks increased interest rates rapidly to combat inflation, influencing sectors like real estate.
• Crédit Agricole recognizes the need for sustainable economic models in light of climate change, integrating sustainability into its core strategy.

Business Model and Future Goals

• Crédit Agricole aims to build on successes while remaining connected to its client-focused approach, supporting business lines that address major societal challenges.
• In 2024, the focus will remain on expanding in Europe and harnessing growth opportunities in the Americas, particularly in renewable energy financing.

Financial Indicators

• Key financial indicators for 31.12.2023 include:
  • Total assets of €757.4 billion, an increase from €728.2 billion in 2022.
  • Gross loans to customers stood at €175.2 billion.
  • Shareholder's equity totaled €29.9 billion, reflecting strong financial health.

Capital Structure and Risk Management

• Fully-loaded Tier One capital ratio reached 17.3%, indicating robust capital adequacy.
• The Basel III risk-weighted assets totaled €137.2 billion, showcasing prudent risk management practices amidst market fluctuations.

Ratings and Global Presence

• Recent ratings affirm a strong credit profile:
  • Aa3 (Stable) for long-term ratings and A-1 for short-term ratings, indicating solid financial stability.
• As of the end of 2023, the headcount totaled 12,661, demonstrating sustained employment levels in both domestic and international operations.

Geographic Income Breakdown

• The distribution of net banking income as of 31.12.2023:
  • France accounted for 36%, down from 39% in 2022.
  • Europe excluding France represented 30% of net income.
  • International operations contributed significantly with 34%, reflecting a strong global footprint.

This quiz is based on the 2023 annual report of Crédit Agricole CIB, covering company history and financial statements.