Full Year 2024 Credit Agricole SA Earnings Call Transcript
Key Points
- Credit Agricole SA (CRARF) exceeded its 2025 profitability targets a year early, with net profit 20% above target and return on tangible equity 2% points above target.
- The company reported a record level of profit for both the fourth quarter and the full year of 2024, driven by a high level of revenues.
- The capital and liquidity positions are very strong, with a proposed dividend increase of 5% compared to 2023.
- There was a significant increase in loan production, particularly in home loans in France, which rose by 18% compared to the last quarter of 2023.
- Asset management and insurance activities posted record levels, with Amundi achieving EUR55 billion in net inflows and insurance activities reaching EUR43.6 billion in net premium income for 2024.
- There is an apparent increase in the cost of risk, primarily driven by IFRS 9 provisions, although Stage 3 provisions have decreased.
- The solvency ratio decreased by 10 basis points over the full year, despite organic growth and M&A operations.
- The macro hedging strategy at LCL led to a decrease in net interest income in the fourth quarter, with only a slight increase expected in 2025.
- The company faces potential legal risks in the UK related to car loans, although its market share is small.
- There is no immediate plan to change the 50% payout policy, despite having excess capital and ongoing M&A activities.
Good morning. This is the conference operator. Welcome and thank you for joining the Credit Agricole fourth quarter and full-year 2024 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Jerome Grivet, Deputy Chief Executive Officer of Credit Agricole SA, in charge of Steering and Control. Please go ahead, sir.
Good morning everyone. Thank you for attending our call. Very happy to present these results for 2024 and for the last quarter of 2024, which are absolutely excellent results. Let me start directly on Page 4 of the presentation, and let me start by comparing our results for '24 with the targets that we had initially set for 2025 in the course of our latest medium term plan, as we have stated several times since the beginning of last year, we are indeed meeting as soon as 2024, all targets that we had initially set for 2025, and I should say that it's the habit because it's the third time
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