Credit Agricole Sa

Hello everyone, I'm very happy to be here with you today. So I'm going to present the results for the second quarter, starting on page four. We're posting a record net income this quarter at 2.4 billion euros, an increase by 30.7 percent this quarter. Part of the strong increase is linked to the capital gain related to the consolidation of M&E U.S. net of non-controlling interest, but excluding this impact, net income grew by 14.1 percent this quarter. And so this performance reflects the continued strength of our business model. This quarter we witnessed dynamic activity across all the business lines and the steady flow of strategic transactions. We have integration processes well underway. Several operations concluded this quarter and several projects initiated or announced. And if we look at the figures, net income growth share growth stems from a strong revenue growth, 7 billion up 3.1 percent. Expenses under control with a cost to income ratio at the very competitive level of 53.9 percent this half year. And this allows us to post a very strong ROTE ratio of 16.6 percent this half year. And finally, solvency is high at CAESA at 11.9 and of course at the group level at 17.6. So all of this bodes very well for our medium-term outlook, which we will discuss on our capital markets day, which is planned on the 18th of November. I'm looking forward to seeing you there. If I move to the next slide, if we look a little bit more detail at the figures, for the group Celi-Agricole, net income growth share is up shortly, shortly, sorry, 30.1 percent this quarter to 2.6 billion euros. We have a very strong capital position and a stable and a low cost of risk on outstanding, very strong liquidity reserves, 471 billion. And for CAESA, net income growth share also grew sharply 13.7 percent, Q2 over Q2, at 2.4 billion euros with a growth operating income up 4.1 percent. And again, this figure of ROTE at 16.6 percent. Now if I move on to activity, I'm going to dig into this activity a little bit here since I will not detail the slides on business on business lines going forward. So let me just detail a little bit the activity which feeds into our growth operating income increase. So customer capture is strong at 493,000 this quarter. This brings the total of customer capture for the first half year to more than 1 million. And activity was very strong in all of the business lines. In retail banking, loan production was dynamic in France and in Italy. And in France in particular, driven by home loans that grew 28 percent and corporate loans 12 percent. The low down spending increased in all of our geographies and we have on balance sheet customer access that also increased. Insurance also posted an excellent quarter. We had a record level of net inflows, 4.2 billion this quarter in savings and retirements, which is well balanced between unit links and the Eurofund. Premium income is also at a very high level, 12.7 billion. In particular, thanks to savings and retirement of 22 percent and PNC activities of 9 percent. And for the latter, we have both a volume effect, 16.9 million contracts in our portfolio, an increase of 2.8 percent and a price effect with an increase in average premium. And as you can see, the equipment rates are still high and continue to increase in the regional banks in NCL and in Créer Ecolitaria. In asset management, the net inflows are high, 20 billion, again balanced between medium to long term assets in JV. This brings the level of the total AUM to the record level of 2,266 billion, of which 96 billion in the U.S. at the end of June. I'll come back to that. And also we have an increase in AUMs in wealth management. Production and personal finance and mobility is also at a very high level, 12.4 billion this quarter, thanks to the traditional consumer finance activity, since the automobile activity was stable in a complex market that's still complex in Europe and China. The gross managed loans, however, increased in all three segments, thanks in particular to car rental. And production and mobility, however, was down this quarter, mainly in France, but buoyant internationally, and factoring was very strong. And finally, the CID confirms its performance with a new record in half-year revenues and strong Q2 revenues, thanks in particular to structured finance. And we maintain, of course, our leading positions on syndicated loans and on bond issuances. And finally, in asset servicing, assets under custody increased this quarter, benefiting from favorable market effects and new customer acquisitions. On the following slide, you see that we continue to roll out our growth model, which as you saw with the activity, relies on organic growth, naturally, but also on a steady flow of strategic transactions, acquisitions, or partnerships, or both. And you see here on this slide a dozen operations that we wanted to put in front of you. Regarding the integration processes that are well underway, I wanted to talk about two specifically, the acquisition of the European Asset Servicing Activities of RBC in 2024, which should generate 100 million of net income. And the cost and revenue synergies are well underway, 60% completion rate. We also have the synergies that are well underway for the group that's become by Endosuez, the acquisition in 2024 should generate 150 to 200 net income in 2028. And so we already have about 25% of synergies underway. And we announced the integration in April 1st of Amundi US and Victory Capital in exchange for 26% participation in the capital of Victory Capital, which will be equity accounted. And this goes along with the reciprocal 15 year distribution agreement.

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you will see in these figures, capital gain of 453 million in net income, which corresponds to 304 in net income group share. We have also concluded several transactions this quarter, the purchase of Semtander's 30.5 minority stake in Cassis, which will be accounted for in the third quarter with the retroactive cancellation at that date of the minority interest paid in 2025. Of course, Banco BPM, which you've heard about quite a lot, the increase of our stake 19.8%. And we have also announced our intention to increase our stake just above the 20% threshold in order to apply the equity accounting method. Other acquisitions operations concluded this quarter, Merco Leasing acquisition, a majority stake by Crédit des Transitions d'Energie in Comwhat, it's a specialist in production and optimization of solar energy. All of this bears witness to the development of our business line. And we have initiated or announced several projects. In July, the project for the acquisition by LCL and Crédit Récur l'Assurance of Milleis, which is a historical wealth management player in France. We've also announced the plan to acquire a solar bank in Switzerland and we have projects on Crelan and Indusuez wealth management in Monaco, which have been announced as well. On the next slide, if I go into a little bit more detail on the revenues, the activity in these transactions, transactions translate into revenue growth, which is strong this quarter at .1% to 7 billion. Now, this increase in particular stands from the increase in dividends received in respect to our participation in Banco BPM since we increased our stake from .9% to 19.8%.