Q1 2025 Credit Agricole SA Earnings Call Transcript
Key Points
- Credit Agricole SA (CRARF) reported a record level of revenue for the first quarter of 2025, with a 6.6% increase to EUR7.3 billion.
- The company achieved a very high return on tangible equity, close to 16%, which is among the highest levels ever.
- Solvency ratios significantly improved, with the CET1 ratio increasing to 12.1% from 11.7%.
- The cost-income ratio remains competitive at 55%, well below the target ceiling of 58%.
- Credit Agricole SA (CRARF) continues to develop strategic operations, including a joint venture in China for car leasing and a partnership with Victory Capital in the USA.
- Net income after tax decreased due to a significant French taxation increase, impacting the group by more than EUR200 million.
- The retail banking business division experienced a slight decline in revenue, primarily due to a base effect in international retail banking activities.
- The consumer finance business saw a slight decrease in new loan production, particularly in car financing activities.
- The company faces ongoing challenges in the competitive French home loan market, impacting pricing and margins.
- The CET1 ratio is expected to decrease to 11.8% in the second quarter due to the conclusion of the Victory Capital transaction and investment in Banco BPM.
Good afternoon. This is the conference operator. Welcome and thank you for joining the Credit Agricole first-quarter 2025 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 or good afternoon -- I don't know -- depending on the time zone in which each of you is located. I'm happy to present these results today.
We can go directly to page 4 of the presentation. I know the day is quite busy for analysts, and I don't want to make to make it too long. So start directly with the key messages on these results, where we can see that Credit Agricole SA and the group are posting this quarter, a record level in terms of revenue. Credit Agricole SA, in addition, is posting a very high return on tangible equity.
The cost-income ratios are stable or
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