FINANCIAL RESULTS
The Group benefits from a stable, diversified and cost-effective economic model to support organic growth in all its business lines, particularly through synergies between specialised business lines and retail banking. Its operational efficiency and low cost of risk provide room for manoeuvre for its development investments.
CONTINUE TO STRENGTHEN THE GROUP’S SOLVENCY
SOLVENCY RATIOS, FULLY LOADED
Crédit Agricole group
(%)
- 6.2 pp
- CET1 ratio: 15.9%
- Overall solvency ratio: 18.9%
- SREP regulatory minimum at 31/12/2019: 9.7%
Crédit Agricole S.A.
(%)
- 3.4 pp
- CET1 ratio: 12.1%
- Overall solvency ratio: 16.9%
- SREP regulatory minimum at 31/12/2019: 8.7%
The solvency level of Crédit Agricole S.A. remains high, with a Common Equity Tier 1 (CET1) ratio of 12.1%, up by +0.6 percentage point from end-December 2018. The increase was due in particular to the significant positive impact of
+32 basis points related to the favourable outcome of the tax dispute on Emporiki, which generated a profit in earnings of €1,038m. This benefit will be fully allocated to the partial unwinding of the Switch guarantee with an effect of approximately
–40 basis points on the CET1 ratio.
SWITCHING OFF
The Switch guarantee mechanism corresponds to a transfer to the Regional Banks of part of the regulatory prudential requirements applying to Crédit Agricole S.A. related to its insurance activities against a fixed fee.
Partial unwinding at 35% (target 50% by 2022) of this intragroup transaction in March 2020 strengthens the beneficiary capacity of Crédit Agricole S.A. with an accretive impact of €58m in 2020 and about €70m in full year on Net income Group share.
This transaction has no impact at the Group level.
