Credit Agricole SA (ACA-FR)

QUOTE AND NEWS
newratings.com  Sep 11  Comment 
FRANKFURT (dpa-AFX) - French lender Credit Agricole SA (CRARF.PK, CDA.L, ACA) is said to near an official agreement with U.S. officials in the next couple of months to settle an investigation of the bank's business in sanctioned countries...
Benzinga  Aug 18  Comment 
Analysts at Credit Agricole downgraded Constellium NV (NYSE: CSTM) from Outperform to Neutral. Constellium NV shares have surged 70.46% over the past 52 weeks, while the S&P 500 index has gained 18.77% in the same period. Constellium NV's...
SeekingAlpha  Aug 12  Comment 
By Sebastien Couvidat: Credit Agricole S.A. (OTCPK:CRARY), which trades as an unsponsored ADR in the US, is a major French banking group. It includes retail banking, investment banking, asset management, insurance, etc. As the name implies, its...




 

Credit Agricole (EPA:ACA, NASDAQ:CRARY) is a Paris based financial institution offering products and services ranging from regular banking to insurance to asset management. As a banking group it offers retail banking (11,500 branches in 65 countries) in France through LCL (Le Credit Lyonnais) and throughout the rest of Europe, Africa, Latin America and the Middle-East through numerous regionally focussed divisions/subsidiaries (for example business in Egypt is done through Credit Agricole Egypt). The group's business is divided into 4 main segments; retail banking, specialized financial services, asset management, and corporate and investment banking. It is a major international player ranking 4th in terms of asset value (over US$2.227 trillion) and 53 overall in revenue.[1][2] It is France's third largest bank by market value.[3]

The credit crisis had an adverse affect on the bank for at least 2 years starting in late 2007 when subsidiary Caylon lost €3.3 billion in the 4th quarter before recovering somewhat in 2009.[4]

The bank acquired Emporiki Bank of Greece in 2006 because of a desire to expand in Greece where at that time the economy was growing three times faster than in France. The initial offer was $3.5 billion.[5]

Company Overview

Retail banking business in France is conducted through Regional Banks and Le Credit Lyonnais (LCL has over 21 million customers and 9100 branches making it the largest player in France).[6] International retail banking has 6.5 million customers, 2400 branches in 15 countries (mostly in Europe and the Mediterranean) Specialized financial services includes asset management and securities, insurance, consumer finance, private banking, leasing and subsidiaries that specialize in other activities (2009 saw the creation of Amundi and the acquisition of 85% of Caseis). Corporate and investment banking deals in capital markets, brokerage, investment banking, structural finance and commercial banking.

Credit Agricole's 64 brands/divisions include Agos Italia (consumer finance services, part of subsidiary Sofinco), CLSA Asia-Pacific Markets (65% owned investment banking and asset management company), Le Credit Lyonnais (6 million customers in France, owned since 2003), Credit Agricole Corporate and Investment Bank (corporate and investment bank with an international presence (58 countries), Emporiki Bank (serves the Greek market with retail banking services), Amundi (75% owned asset management in 30 countries, has assets that are about a third of Credit Agricole's total, ranks 3rd in Europe in assets among asset management companies, is also run by Societe Generale).[7]

Business Segments

  • French retail banking offers property insurance, mutual fund investments, mortgage as well as other lending and deposits and savings.
  • International retail banking offers services similar to those by its French counterpart, in 57 countries but with a focus on Greece, Egypt, Serbia, Chile, Morocco, Italy and the Congo.
  • Specialized financial services which are divided into 3 categories; consumer credit, lease finance and factoring offers insurance options, repayment loans, credit cards and other credit services.
  • Insurance (Predica) Asset Management & private banking (CA Asset Management) is involved in the investment businesses of asset allocation (helps investors choose between asset classes) and private investment (investments that are not publically traded).
  • Corporate and investment banking deals in such areas as foreign exchange, commodities, derivatives, and other investment banking.[8]

In the following table NBI is net banking income, OI is operating income, NI is net income and Risk is the cost of risk.

Business Line € million Regional Banks LCL International
Retail Banking
Spec Fin Services AM, Insur, Prvt Banking Corp&Inv Banking Corp Centre
1hfy09 NBI 6821 1904109815811700 3497(343)
1hfy10 NBI 7285 19711094197624832964(329)
1hfy09 gr OI2777640.94419168331989(773)
1hfy010 gr OI3138689423111312131312(782)
1hfy09 Risk829.7 180576na552(27)
1hfy10 Risk877 20566317185(21)
1hfy09 NI334.62921981945641032(808)
1hfy10 NI514339158253741820(744)

Business & Financials

€ billion 2005[9] 2006[10] 2007[11] 2008[12] 2009[13] 1hfy09[14] 1hfy10[14]
NBI (group) 13.693 16.187 16.768 15.956 17.9428.62010.293
Gross Loans 261.4 336.3397.3 436.9 463.6440.952506.063
Customer Deposits 416.5 513.6 564.9 907.89 634.4
Total Equity 34.908 39.089 46.474 47.336 51.96445.546.0
Total Assets 1061.41261.3 1414.2 1653.21557.31605.41765.5
AUM 562.7 636.9 614.4 550.8 688.5578.7834.7
Data from page 8 and 9 of the company's 2009 Annual Results

The biggest negative effect on the company's finances in 2009 came from its corporate center businesses. The business segment suffered a net loss on the year of €1,390 million compared to a net gain of €261 million in the last fiscal year. Concerning assets 2009 saw major growth in bank deposits (largest contributor to the 9.5% rise in amounts due to customers for the year) and securities sold under repurchase agreements. There was also a 21.6% fall in the value of total financial assets at fair value through profit or loss (89.9% of which are securities). The credit crisis had an adverse affect on the bank for at least 2 years starting in late 2007 when subsidiary Caylon lost €3.3 billion in the 4th quarter before recovering somewhat in 2009.[4] An unauthorized $348 million trade also affected performance in 2007.[15]

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Competition

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The financial crisis that wiped away trillions of dollars in market value globally also reduced the value of assets held by leading banks. Some financial institutions dealt with the crisis better than others. Credit Agricole's asset value grew larger with each year for the last 5 reaching a record high in 2010 when it ranked 4th among all forbes 2000 companies, surpassing Bank of America and Barclays.[16][17][18][19][20]

Credit Agricole Luxembourg (specializes in private banking) has been active in takeovers, formed first as a result of a merger between CA Indosuez & CA Lyonnais and then in August 2010 it acquired Belgian brokerage Dresdner Van Moer Courtens (DVMC). DVMC had €615 million in assets at the end of 2008[21] The move makes Credit Agricole an even bigger player in Belgium-Luxembourg private banking, a region where lenient and attractive tax laws have enabled and encouraged private banking business growth.

Leading European banks in the graph to the right

Financial Data 1hfy10 unless ow stated Societe Generale[22] Unicredit Group[23][24] ICBC[25][26] Intesa Sanpaolo[27][28] Credit Agricole[29]
Net Interest Income (€ mil) 30,545('09)17,568('09)15,89610,486('09)na
RevenueNBI 13,26013,29930,267('09)$50,710('09)[30]10,293
Operating Income 2745548216,171('09)82351672
Customer Deposits 300,054('09)235,896('09)1,059,961858,577634.4

Credit Agricole companies and subsidiaries

Credit Agricole companies[31]
name business segment percent stake (%) 2009 revenue/assets (mil) name business segment percent stake (%) 2009 revenue/assets (mil)
Regional Banks
(38 managed by different
consortiums)
France
Retail Banking (RB)
25 €18,000[32] LCL Le Credit Lyonnais France RB 95.1 €3800[33]
Cariparma&FriulAdria Group Italy RB Cariparma 75
FriulAdria 53.33
€1440[34] BES Group
(Portugal's largest prvt bank)[35]
Banco Espirito Santo
Portugal RB 10.81 dir
9.15 thru Bespar
€2235
:€80.7b net assets[36]


Bankinter Spain RB 23.42 €1245.182
EUR 54.4 bn Assets[37]
Credit Agricole Egypt S.A.E. Egypt RB 47.09 EGP 1006.5[38]
Credit Agricole Banka
SRBIJA Ad Novi Sad
Serbia RB 100 €36.6[39] Emporiki Bank Greece RB 86.49 €750.9[40]
BESPAR (ESFG) Portugal RB 22.88 €1400[41] Lukas SA Poland RB 76.29
JSC Index Bank
2006 for $260 mil
Ukraine RB 99.99 GEL 319[42]
1:1.75 USD 1Q2010
Credit Du Maroc Morocco RB 76.66 €154.7[43]
Credit Uruguay Banco Uruguay RB 100 CA Consumer Finance
owns 99.63% of Sofinco,100% Finaref SA
Specialised
Financial
Services (SFC)
100 €466 (€983 tot less
€517 CA Leasing)[44]
incl.factoring
CA Leasing SFC 100 € 517[45]
after merging w Eurofaktor
Eurofaktor SFC 100 Zloty 8.764
(€1:Z4)[46]
EFL SFC Poland 99.98 Amundi Group
(100% owner of Amundi,
Immobilier, CPR AM)
Asset Management 73.62 assets of €670,000
BFT Asset Management 28.22 Caceis
(100% owner of Caseis Bank
(Luxembourg, Deutschland), Fastnet
Suisse, CT)
Issuer Services 85 €813[47]
Caseis Fastnet Issuer Services 79.77 CA Assurances
(100% owner of Predica, Pacifica,
CA Creditor Insur., CA Assu. Italia Hold.,
Emporiki Life)
Insurance 100 €22,000[48]
Bes Vida Portugal Insurance 50 Bes Seguroos Portugal Insurance 50
BGPI Private Banking 100 CA Luxembourg
merger CA Indosuez
& CA Lyonnais[49] Luxembourg
Private Banking 100
CA Suisse Private Banking 100 CHL 414.4[50] Fininvest Private Banking 95.65 €5536.9[4]
Credit Foncier De Monaco Private Banking 67.1 €100.3[51]
€9330 Assets
Calyon (100% owner
CA Cheuvreux)
Corporate & Inv.
Banking (C&IB)
97.33 €2153[52]
2008
CLSA Group C&IB 96.24 Newedge Group C&IB 48.67 €949[53]
Banque Saudi Fransi BSF C&IB 30.28
(69.9 by Saudi's)
SR 4295[54]
(€1:SR4-5)
CA CIB C&IB 100 €4428[55]
  • Revenue in Europe is referred to as net banking income. In other places like Portugal it refers to operating income.

References

  1. the global 2000 2010 (2010-04-21).
  2. Crédit Agricole Forbes Global 2000 (2010-04-21).
  3. Credit Agricole Says Profit Falls, Chifflet to Replace Pauget (2009-11-10).
  4. 4.0 4.1 4.2 Fininvest 2009 Annual Report (2010).
  5. Credit Agricole Offers to Buy Greece's Emporiki Bank (2006-06-13).
  6. France, Credit Agricole. Retrieved on 2010-08-11.
  7. Amundi. Retrieved on 2010-08-11.
  8. Plunkett's E-Commerce & Internet Business Almanac 2007 Credit Agricole SA (2007).
  9. Credit Agricole 2005 Annual Report
  10. Credit Agricole 2006 Annual Report (2007-03-07).
  11. Credit Agricole 2007 Annual Report (2008-03-05).
  12. Credit Agricole 2008 Annual Report (2009-03-04).
  13. Credit Agricole 2009 Annual Report (2010-02-25).
  14. 14.0 14.1 Credit Agricole 2010 first half results (2010-08-26).
  15. Global 500 Credit Agricole (2008-07-21).
  16. The Global 2000 2006 Edition (2006-03-30).
  17. The Global 2000 2007 Edition (2007-03-29).
  18. The Global 2000 2008 Edition (2008-04-02).
  19. The Global 2000 2009 Edition (2009-04-08).
  20. The Global 2000 2010 Edition (2010-04-21).
  21. Commerzbank sells Dresdner Van Moer Courtens and the Belgian branch of Commerzbank International S.A. Luxembourg (2009-10-15).
  22. Societe Generale 2009 Annual Report
  23. Unicredit Group Consolidated Results for the First Half of 2010
  24. Unicredit Group 2009 Annual Results
  25. ICBC 2009 Annual Results
  26. Industrial and Commercial bank of China 2010 Interim Report
  27. Intesa Sanpaolo 2009 Annual Report
  28. Intesa Sanpaolo 2010 Interim Report
  29. Credit Agricole 2010 Half Year Review
  30. 2010 Global 2000
  31. 2009 Annual Results (2010-02-25).
  32. CREDIT AGRICOLE SA : Credit Agricole S.A. Good overall 2009 performance FY 2009 (2010-02-25).
  33. Financial Review 2009 Credit Agricole Group (February 2010).
  34. Cariparma & FriulAdria. Retrieved on 2010-08-11.
  35. BES bank preparing to move into Mozambique, South Africa (2010-07-31).
  36. 2009 Financial Statements and Notes to the Financial Statements (2010).
  37. 2009 Annual Report (2010).
  38. credit agricole Egypt. Retrieved on 2010-08-11.
  39. Credit Agricole business lines Credit Agricole Banka Serbia. Retrieved on 2010.
  40. Emporiki Bank of Greece Fiscal Year Results 2009 (2010-18-02).
  41. bespar annual results 2009 (2010).
  42. JSC Bank of Georgia Q1 2010 results presentation (2010).
  43. Credit Du Maroc 2009 Annual Report 3 Parts (2010).
  44. Credit Agricole Profit Doubles on Investment Bank (2010-05-13).
  45. Credit Agricole Leasing, Eurofactor Merge To Establish Credit Agricole Leasing & Factoring (2010-04-14).
  46. financial data. Retrieved on 2010-08-11.
  47. Credit Agricole Caseis. Retrieved on 2010.
  48. Credit Agricole business lines Credit Agricole Assurances. Retrieved on 2010.
  49. Credit Agricole business lines Private Banking. Retrieved on 2010.
  50. Credit Agricole (Suisse) SA Reports Consolidated Gross Profit of CHF 316.4 Million in 2009 (2010-05-03).
  51. Resultats 2009 (2010-02-04).
  52. 2008 key figures (2009).
  53. Newedge Financial Report 2009 (2010).
  54. Banque Saudi Fransi posts SR2,471m net income for the financial year 2009 (2010-01-11).
  55. CA Corporate and Investment Banking CIB 2009 Shelf Registration Document (2010-03-23).
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