Credit Agricole Sa

Good afternoon, ladies and gentlemen. This is the conference operator. Welcome and thank you for joining the Credit Agricole Third Quarter 2025 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions by pressing star and 1 on your telephone. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Ms. Clotilde Langevin, Deputy General Manager of Credit Agricole SA in charge of Finance and Steering Division. Please go ahead, madam.

Thank you very much. Hello, everybody. Welcome. So a few comments on these Q3 results, which are very strong. So we have very high net income this quarter at 1.8 billion euros, an increase by 10.2% over the quarter. Part of this increase is linked to the completion of the acquisition of Santander's 30.5% stake in Caissez this quarter, with a retroactive cancellation of the minority interest already paid over the years for 79 million euros. But if you exclude this impact, net income grew by 3.3%, thanks in particular to sustained activity in all of the business lines. And this reflects the continued strength of our business model. We have integration processes, by the way, which are still well underway. If we look at figures, the revenues continue to increase strongly and regularly by 5.6% this quarter. Costs are under control, with a cost to income at the competitive level of 54.6% over nine months. And all of this allows us to post a very strong ROTE ratio of 15.4%. And finally, solvency is high at the CAVA level at 11.7%, and of course, as you know, very high at the group level at 17.6%. Now, if you turn to the main figures... We have, for the group Crédit Agricole, net income, which was up 11.4% this quarter, to 2.3 billion euros, and up 9.7% these first nine months, to 7.1 billion euros. Our capital position is very strong, as I just said, and the cost of risk is very low. The liquidity reserves are high, at 488 billion euros. For Casa, As I was saying, the net income increased this quarter, thanks to a strong increase in gross operating income, 7.7%. And as you can see, over nine months, net income increased 12.1% to 6 billion euros, which you recall was our 2025 MTP target that we had set in 2022 for the full year. Now, how do we explain this strong performance? We have activity that was very sustained this quarter. Customer capture was strong, 522,000 new customers in the third quarter, which brings a total for the first nine months of the year to more than 1.5 million new customers. And activity was strong in all of the business lines. In retail banking, loan production was dynamic. In France, it was driven by home loans in regional banks and by corporate loans in LCL and regional banks. In Italy, loan production was driven by corporates because we preserved our margins in a highly competitive market in home loans. And the loan outstandings grew in other international retail networks in all geographies, with in particular strong commercial activity in Egypt. The on-balance sheet deposits were high, and the off-balance sheet resources were also up. And this translates into the performance of insurance. We have strong net inflows this quarter, plus 3.8 billion euros in particular in France. Premium income is very high at 11.8 billion. It's up 21% Q3 over Q3, thanks of course to savings and retirement in the context of increasing precautionary savings, but also thanks to PNC activity in France and internationally. And we now have 17.2 million contracts in our portfolio. But also we have an average premium that grew And as you can see on the right, the equipment of our customers continues to increase in all the retail networks. And we also have strong activity in individual death and disability insurance and in group insurance. In asset management, the AUMs reached $2,317 billion thanks to strong inflows and a positive market effect. The net inflows reached $15 billion this quarter thanks to medium to long-term assets and thanks to JVs. In wealth management, we had strong commercial activity this quarter, and we had an increase in AUM in particular with the first contribution this quarter from Banque Talaire in Switzerland. We also had high production in personal finance and mobility, 12 billion this quarter. It was balanced between traditional consumer finance and automobile activity. And we had production and leasing that was up this quarter thanks to renewable energy. And finally, the CIB continues to conform the performance with a record level of Q3 and nine-month revenues, thanks both to the market activities with an increase in FIC revenues by 8.3, excluding foreign effects effects, and structured finance and acquisition financing. And we, of course, maintain our leading positions on syndicated loans and bond issuances. And finally, in asset servicing, we have an increase in assets under custody and under management, thanks to positive market conditions and thanks to the acquisition of new customers. And as I was saying, we completed the acquisition of Santander's minority stake this quarter. Now, activity translates and will continue to translate into revenue growth, which is strong this quarter, 5.6% growth. This increase in particular comes from the revaluation of Banco BPM shares with a 245 million impact in a context where the share prices increased this quarter by 28%. And revenue growth was also driven by the growth in business lines, which was 135 million if you exclude the scope effect linked to the deconsolidation of Amundi US for 85 million. So if you exclude these two effects, Revenue growth was 3.2%. Now, if we look in a little bit more detail, revenues increased in asset gathering thanks to savings and retirement revenues and insurance. P&C claims rose due to weather effects, but we had strong increase in management fees, performance-free fees, and technology revenues in asset management. and of course an increase in fees and commissions income in wealth management. Wealth management was impacted by the integration of the group Petercrumb with the takeover of custodian banking activities by Cassez and with the hedging of market activities by Cassez. The revenues increased in CIB despite the negative foreign exchange impact, 5.8% excluding this impact, and remained high in asset servicing. And in FFS, we had the revenues benefit from a favorable price effect, thanks to an increase in the production margin, but we were penalized by the decrease in margins on factoring. And finally, in retail banking, fees and commissions income are strong in France and Italy. In LCL, net interest income was penalized by a negative base effect due to the revaluation of equity investments last year, but it increased, excluding this. thanks to the gradual repricing of loans and the decrease in the cost of resources. It's the same thing as what we saw last quarter. And in Italy, of course, we have still a very competitive market in the context of decreased rates, but strong fees and commissions. So all in all, we have strong and growing revenues, and as you can see with the graph on the right, we continue the dynamics that we observed over the past 10 years. Now, if we move to expenses... The cost-to-income ratio is low at 54.6% over these nine months. And if we break down the expense increase this quarter, we have $18 million restructuring costs at Amundi in a context of an optimization plan for France, Italy, Germany, and Australia that will generate about $40 million annual savings from 2026 onward. We also have a couple of scope effects and integration costs that more or less cancel out between CASEIS and Indosuel. We expect, of course, revenue and cost synergies going forward following these two operations, CASEIS and Indosuel. And we have expenses in retail banking that are stable due to an acceleration of IT investment in LCL with the transformation of the distribution strategy. And in Italy, we have some reversals of provisions regarding operational expenses ahead of the Q4 when we are planning to establish a solidarity fund for the 2026-2027 period, pending an agreement, of course, with the trade unions for a net impact of around $65 million in the Q4. Now, if we move to cost of risk, it increased this quarter significantly. but incurred proven risk decreased compared to the Q2. We have about half of this proven risk, which is explained by SFS, where we have had an S3 risk that has been relatively stable for several quarters with a slight deterioration in particular in international subsidies. The rest is very stable. It's explained by self-employed professionals on the LCL market, a few large corporates, slight increase in Italy. Cost of risk remains very low in CIB. And we have no significant change this quarter in stage one and two cost of risk because there's no update in the economic scenario. We have a slight reversal of loan loss provisions in CIB due to a transfer to incurred risk. But overall, the main asset quality remains very solid. The cost of risk is low, both for CASA and GROUP. The loan loss reserves are very high and very stable. They allow us to absorb any surge in the Stage 3 cost of risk. We have among the best coverage ratios in Europe, both for the group and CASA. So there's no significant evolution this quarter. And if we look on the detailed business line by business line, I gave you a few elements on the previous slide. I just wanted to outline the fact that for CAPFM, we have a slight increase... After a few exceptional elements that we had posted in the Q4 of 2022, this quarter we added legal provisions, about $20 million for a legal risk in the UK due to motor finance litigation. Elsewhere, everything is very stable with very strong coverage ratios. Now, if I move on to the next slide for the results, we have a very high level of net income group share and of pre-tax income. If we look at the pre-tax income, it increased by 6.2%. In asset gathering, we have the impact of the restructuring costs in Amundi, but we have strong activity in asset management and insurance and integration costs in Indosuez for the group. We had solid income in large customers. In SFS, we have a positive revenue momentum, thanks to improved production market margin. This was compensated this quarter by a short-term impact on equity-accounted entities, 30 million, namely LISIS, about two-thirds, where we have observed a decline in remarketing activities and the impact of a competitive market in Italy. And China, for about a third, where business deteriorated in 2024 and the first half of 2025, but has been picking up since the Q2. So very cyclical short-term effect. In retail banking, we had buoyant activities and a couple of one-offs. And of course, this strong positive impact in the corporate center due to a 245 positive impact of the revaluation of Bank of BPM on revenue. This, of course, creates volatility, which will be strongly reduced once we equity account our participation. And we asked the authorization of ECB to have this equity accounting. Hopefully, it's going to be in the Q4. Just to insist upon the fact that this revaluation effect is, in fact, not virtual, because if you were to replace it, as we will be doing once we equity account with the 100 million around ECB, increase in equity accounting every quarter thanks to our participation in Banco BPM, you'll see that despite excluding this impact, you have an increase in results this quarter. So if you look at these net income group shares, we have a strong increase in gross operating income by 7.7%, and all in all, a strong increase in net income, 10.2%. Now, solvency. So I remind you that the target is still 11%, but we still have a high level this quarter of CET1 at 11.7%. The retained results are the consequence of what we said before, plus 20 basis points. Then we have the organic growth of business lines for 21 basis points. And then we have an M&A impact. We already referred to the buyback of CACI's minority interest for 24 basis points. We have a very limited impact of the banque salaire acquisition. And then we have the others box, which is a sum of many items. I just wanted to flag one, which is the impact this quarter of the capital increase for employees for seven basis points. This will be compensated next quarter by a share buyback, which is currently underway, to neutralize the dilutive impact, and which should cost us about nine basis points. And the impact of Banco BPM is very limited this quarter because we have a slight positive impact in the retained earnings, but we have a negative impact in the other part, nine basis points, which is the sum of the impact of the fair value through OCI, positive, and a negative impact linked to, as you remember, the significant participation exemption threshold that I told you about last quarter. Now, when we consolidate through the equity accounted method, normally in the Q4, when we will have received the authorization of the ECB, I just wanted to flag the fact that there will be a significant negative impact on P&L. After the positive impact on net income that we have posted over the past nine months, a little bit more than $700 million, including the $180 million dividends that we have earned, The impact that we will see in the fourth quarter normally will have no cash effect and will not have a significant impact on solvency, but there will be a significant negative impact on P&L. And so if I come back to the Q3, we have provisions 93 cents per share of dividends, considering no restatements made whatsoever. Now, if I move on to the group, we have the same type of evolution, just there's a slightly higher increase in RWAs because, you know, the exemption threshold is not saturated at the level of the group. We have CT1, which is very high, 7.7 percentage points above the requirements. And as you can see, a very high leverage ratio, high TLAC, high MRELA. Liquidity, we still have a very comfortable liquidity position, very high level of liquidity reserves at $488 billion. LCR and NSFR ratios are excellent, and as you know, the group mobilizes all these various levers to diversify the sources of liquidity. One are customer deposits that are abundant, stable, diversified, and granular, and we have a high NSFR ratio. On the next slide, I want to insist upon the fact that we have our transition plan that continues to be rolled out with the acceleration of the development of financing to development of renewables, low carbon energy financing and investment. We have a strong financing of the environmental transition. We help our customers in their own transition. by providing financing in particular for new-built real estate, but also for SMEs and large corporates. This increased this quarter to 114 billion euros. And then lastly, we continue to decrease our financing to carbon-based energy sources. We're down to very low levels compared to the starting point of 2020. And then the last slide, I'm going to comment on this sum up of figures. Quarterly net income is very high, 1.8 billion, thanks to sustained activity in all of the business lines, thanks to a very competitive cost-to-income ratio, and thanks to low cost of risk. We continue to post very strong profitability with an ROTE of 15.4%, with a strong capital and liquidity position. And we can discuss the strengths of remodel in length during our Capital Markets Day, which, as you recall, is scheduled for the 18th of November. And to help you concentrate on the 18th on strategy, we're soon going to provide you with a few elements on the reporting principles we will adopt in the medium-term plan pertaining to regulatory capital and pro forma 2024. And you can call Cécile and the team to have all of the necessary clarifications on this point. And for now, I'm going to open the floor to any questions that you may have. Thank you. Thank you very much.

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 when they're touched on telephone. To remove yourself from the question queue, please press star N2. Please pick up the receiver when asking questions. Anyone who has a question may press star N1 at this time. First question is from Tariq El-Majad, Bank of America.

Hi, good morning. Thanks for taking my questions. I have actually one particularly on your asset management business and Amundi. I mean, there have been a few headlines in terms of your distribution partnership with Unicredit, but also just as I did in a call where Sovjan was talking about internalizing some of the assets you have with Amundi. I mean, how do you see, you know, your asset management's kind of progression in terms of offsetting these earnings? I know you have a C&D ahead and Amundi is organizing one as well, but from a clinical perspective, how do you see that potential loss of earnings feeling through? Thank you.

All right, so maybe just to take a step back, as you know, activity was very strong, and we have activity that was strong for, in particular, net inflows for retail, which is what you're talking about, but also for institutionals and also for JVs, for which we have strong inflows. So we have a strong activity in all of these domains, and we are going to continue to invest on all of these areas, which are very important for us, ETFs, Asia, all of the other technology diversification in many different directions. Now, for the two agreements that you're talking about, we have a distribution contract for the unit credit that comes to an end in July 2027. But as of today, we're still completely committed to and willing to remain a partner for Unicredit and to create value for all of the stakeholders beyond the 2027 milestone, and I don't want to anticipate their outcome. Now, our new medium-term plan will integrate a financial trajectory that takes into account the uncertainty of the contribution of Unicredit's starting from 2027, but also will take into account the solid dynamics of Amundi and all of its strategic pillars. For Société Générale, we have a partnership that's going to be 15 years old at the end of the year. It's a long-standing one. Amundi and Société Générale know each other very well. Amundi renewed the agreement two times, 2015 and 2020, and every time we amend slightly the economics and the KPI to 2015, better meet the evolution of client needs and each group's priorities. So there's no reason why this should be different this quarter.

Thank you.

Next question is from Giulia Miotto Morgan Stanley.

Yes, hi, good morning, Clotilde. Thanks for taking my questions. I have two. The first one is on costs in French retail. I see that the IT investments continue. And I was wondering if you can give us some color around what exactly you're doing here and how long we shall expect the costs to remain elevated in this Division 4. And then secondly, my usual question, do you have any update on Italian M&A? We see a lot of headlines. Yeah, I wonder if you have any comments on potential developments with BAI. Thank you.

All right. For LCL, we have had an increase in expenses this quarter, which is an acceleration of our IT investments because we're preparing for a transformation that we've talked to you a little bit about. to improve the solutions that we can provide to our customers in terms of digital solutions in particular. We're starting to launch solutions for the mass markets and for the professionals, which we're going to call simplified LCL easy solutions. But we also have to invest to increase customer capture going forward, also in other dimensions, i.e. all of the specialized corporates, affluent customers. So all of these elements require an acceleration of IT investments, so we're really planning for the future here. So this is for LCL, French retail. For Italy, our strategy in Italy is unchanged. We are a long-standing player in Italy. We have developed two dimensions, our retail business with Crédit Agricole Italy, which is the sixth player in the country, and our business lines. We have all of our main business lines, which are present in Italy. And so as our setup is very solid, it's very extensive. We have 6 million customers, 340 billion customer assets, 100 billion in loans outstanding. We're the number one commercial bank in MPS, number two in consumer finance, number three in asset management, etc., So we continue to finance the Italian economy. We're really an Italian player. Now, we have taken a participation in one of our distribution partners, which is a distribution partner both in consumer finance and non-life. We have this participation. And we, as you know, we want to equity account it to reduce the volatility in our books. We have asked ECB for the authorization for that. And what we're doing is that we're concentrating on what we can control There's lots of scenarios that do not depend on us. What we can control is setting up a long-term partnership with Banco BPM. So with the equity accounting that should normally be possible in the Q4, we are going to consolidate this long-term partnership.

Thank you.

Next question is from Jacques-Henri Goulart, Kepler-Schöbre.

Yes. Good afternoon, Christine. I have two. I'm going to try to actually squeeze three, but the third one is really, really short. On Amundi, there is the possibility nonetheless of a reasonable, say, earnings loss. Usually, the culture of the group is to offset any sort of thing because you respect your shareholders very much. by share buyback potentially. If that was the case, would you be happy to increase your stake in Amundi? That's the first question. The second question is on consumer credit, where it's not exactly completely working. I hear your point about the fact that the impacts are short-term. But if I look at the trend of consumer credit earnings, it's not been great, and now Lease is showing signs of weakness as well. are we going to have a little bit of a view about what you want to do to improve that business at your CMD? And the third one that I would like to squeeze, you mentioned, I think, a change in the way the reporting or the disclosure of the CT1 is going to be. Would you mind actually elaborating a little bit on that? That's it for me. Thanks a lot.

All right. Thanks, Jacques-Henri. For Amundi, as you know, Amundi is very important in the setup of group credit agriculture. It's the number one non-American asset manager. It provides solutions for our customers in retail, solutions for credit card assurance, institutional customers, so it's very important for our setup. We're going to talk, of course, about the developments that we want to have for Amundi in our medium-term plan, so I'm not going to be able to answer your specific questions, Jacques-Henri, regarding this, but we're always committed to reaching the financial targets regardless of uncertainty. So we will commit to reach our financial targets regardless of what takes place with unit credits. So that's for Amundi. Now, if I move to FFS to give you a little bit more of color on these equity-accounted entities that have been suffering this quarter, we have two dimensions. We have China and Leaseit. Now, In China, we have, since the beginning of 2024, very competitive conditions on the market. You know, we have a JV with a car constructor, Gak, which is a very strong state-owned car constructor in China. And so we have had very competitive commissions, in particular due to traditional banks entering the motor finance market. And this has had an impact recently. on our volumes. We have had a decrease in 25% of the outstandings over the years, over the one year, sorry, and a price effect. Since the Q2 2025, the Chinese authorities have imposed a 5% floor on commissions, and this has caused markets to normalize. And since then, our production has almost doubled since the first quarter. But the full effect of this normalization of the market will take time a little bit for two reasons. First, there's the difference between the date at which we sign the contract and the date at which we produce the loan, a few months. And also, we have an average duration of these loans, which is 33 months. So the outstandings that we have put in place over the past quarters will still have an impact going forward on our revenues. But nevertheless, it's a short cycle, and so we're relatively confident regarding the pickup in 2026. And also, of course, we're going to develop a whole range of services, diversified towards used car financing, etc. So all of this should help us pick up activity in China. Now, if I move to leases on the leases market, Remarketing has been difficult for several quarters. This is the case for us, but also for our competitors. We have a lower stock of vehicles than our competitors, but we are not immune to the slowdown, of course. And going forward, we want to improve our capacity to remarket. It's not an issue of residual value, which is good. It's really the capacity to sell off the stock. And so we're going to develop a cross-European remarketing strategy, building on the synergies between our different entities. And on top of that, in Italy, Leases has defended its market share in a very competitive market. We've increased our volumes. We're number one in Italy. We're confirming our position as the third leasing player in Europe. And we can now, based upon these volumes that we have accumulated, focus on the profitability of the new business line going forward. Now, In this respect, again, it takes a little bit of time, but I'm very confident as to the fact that after the year 2025, which was the year of transition, the income in 2026 should come back to the level that we had seen in 2024 for leases. Now, on the CEQN reporting, I think you're referring to the ROTE maybe reporting or the MTP reporting principles. For the ROTE reporting principles, we really want to simplify. It's really an investor and an analyst-friendly move that we're doing here. We really want to simplify the method of calculation of the ROTE to bring it perfectly close to a market standard. and we're going to work in particular on the denominator of this indicator. Regarding the other elements I was talking about, in particular for the OCI retreatments, regarding all the other elements that we're talking about, pro forma, et cetera, you're going to have insight on this next, well, soon, before the medium-term plan, hopefully next week. Very technical elements, but the idea is really to give you the baseline, 2024 baseline, of the targets we will be setting for 2028. The idea is to really make sure that you concentrate on what we're saying in terms of strategy on the 18th of November. So we're going to try to make things easier for you with your Excel files before that.

Fantastic. Thank you so much, Clotilde.

Next question is from Delphine Lee, JP Morgan.

Yes. Good afternoon. Thank you for taking my questions. Um, just to, first of all, um, just wanted to come back on, uh, Italy, um, about your comments around, um, you know, your strategy, your positioning, uh, and your setup. Um, do I, do I understand from this that your priority is really to kind of like build most, you know, partnerships with mango BPM and that, um, unlike maybe previously, You're not looking at all scenarios right now. And the second question is on, yes, if you could just share your thoughts on the proposal, the law that has been adopted recently around the tax on dividends and and what is being discussed, I think, today as well in terms of the banking fees in Parliament. Just trying to think about, you know, the implications for Caliagol. Thank you. All right. Thanks, Delphine.

So, regarding Italy, we have two partnerships with Banco BPM, in fact, because we have 61% of Agos with a distribution contract that goes to 2034. We have 65% of a partnership in Italy in non-life insurance that goes to 2043. I'm not saying that we're not looking at all of the scenarios. There's lots of scenarios. Most of them do not depend on us. We're concentrating today on what we can control. But in any case, I think you should... I mean, the press is always full of lots of hypotheses. And so when you read in the press that we could sell Crédit Agricole Italia against cash or ANIMA all the while remaining minority, or shares of Agos, in which we're majority, you can imagine that this is not something we want to do. We have a development plan which is ambitious on Italy. We're committed to financing the Italian economy. Italy is our second domestic market, so this is very important for us. That was the first point. The second point on the law adapting the tax dividends. It's difficult for me to comment on this because this is not, as you know, share buybacks are not part of our usual distribution strategy. Over the past years, we have committed to having a payout of dividends in cash. Now, of course, I was talking about the fact that we have a share buyback that's planned in the Q4, but it's very, very small. and it's really consisting in limiting the dilutive impact of our employee capital operation this quarter.

Sorry, Christy, but I think there is also an increased tax on dividends.

On corporate, and also on corporate. So there is an increase. We have had a corporate tax, which has had an impact this year on the group Crédit Agricole and on Casa Crédit Agricole. That was relatively significant, in fact, about 280 million for the group and about 160 for Casa. It's really too far early to draw conclusions on anything going forward in terms of taxation in this respect. But as you know, we always include buffers in our medium-term plan predictions to account for any uncertainty regarding fiscal policy in France and in Italy.

Great. And on banking fees as well, any thoughts on what is being proposed?

Again, same thing. It's too early to draw any conclusions, but it's true that this year we have had an impact that was strong of corporate tax charge, 280 for the group, 160 for CASA, And as you know, as we said in the Q2, we're committing to have a 2025 net income, which is equivalent to that of last year, excluding this corporate tax.

Thank you very much.

Next question is from Sarat Kumar, Deutsche Bank.

Good morning. Good afternoon. Thank you for taking my questions. I have two, please. The first one might sound philosophical. Looking back at the current medium-term plan, what are the lessons you think in your view that you can take to the next plan? I'm also asking this cognizant of the fact that you have underperformed European banks despite delivering returns above your guidance. So is there a message to be taken here in your view? Then the second one is on the clarification on the Bank of BPM accounting impacts. Well, assuming you get the ECB approval for equity accounting, can you update us on the accounting impacts that you had given at the end of the last quarter? Thank you.

Yeah. All right. Thank you, Sharad. So I'm not going to give you any elements that you're waiting for for the 18th of November regarding a medium term plan, of course, but we can capitalize on the strength of our groups. The strengths being our strong capital position, our strong liquidity position, credit quality, loan loss provisions that are very high, but also the track record that we have had for the past 10 years in terms of very regular increase in revenues, more than 5% CAGR over the past 10 years. decreased operational efficiency, decreased in cost-to-income ratio by 15 percentage points over the last five years, a shareholder-friendly policy with a very strong ROTE, and a multiplication by three of the dividends we provide to shareholders since 10 years. So this track record bodes well for the future. We build upon our model, and there's no reason why we should stop anything regarding our model, which is very efficient. We have a diversified development business model based upon a strong customer base and also based upon the capacity of our business lines, which are leaders in all of their areas to expand, to develop, to provide solutions that are always improving for the benefit of our customers. So this is something that should go forward, continue in the medium-term plan, but I know that you're very excited to have the insights that we will provide on the 18th of November. The idea is, of course, to continue to be a top performer in Europe. You were talking about performance compared to Europe. We have a very strong performance compared to Europe in terms of the strength of ROTE, the strength of revenues, and also the regularity of revenues and ROTE growth. This regularity is really a strong point for us. Now, bank OBPM accounting in the Q4. In the Q2, I was telling you that we would have a strong negative impact, but this impact can change due to a certain number of moving pieces. First, there's the revaluation of the share price that has an impact on the fair value through P&L. That will be a positive impact that we have seen this quarter that will be reversed in the Q4. Then there's the impact of the OCI, fair value impact, same thing. And then we can always update the equity value of our position in Banco BPM. So lots of moving pieces. And what I can tell you is that this will be several million euros in negative P&L impact in the Q4. But recall that it's not a cash impact and it's not a solvency impact. And then going forward, once we have equity accounted our participation, we will have a very regular increase in our equity accounting amounting for 100 million per quarter. So this is a very strong impact that we will have on our results going forward.

Thank you.

For any further questions, please press star N1 on your telephone. Ms. Langevin, there are no more questions registered at this time.

Thank you. Well, thank you very much, everyone. And so I'm really looking forward to seeing you in person or from afar on the 18th of November in Montrouge.