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Region: Europe
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Fundamental View
AS OF 29 Jul 2024BNP’s financial strength is based on its strong franchises across retail, commercial and investment banking, particularly in Europe, and its wide business and geographic diversification.
Profitability is sound and fairly resilient, while asset quality has held up well despite the effects of COVID-19 and the war in Ukraine. However, its operations in Italy (less than 10% of credit exposure) and consumer finance (12% of lending) are potentially riskier.
Capital ratios look sound, especially in the context of its liquid and relatively low-risk balance sheet. They have improved considerably thanks to the exit from the USA.
Business Description
AS OF 29 Jul 2024- BNP is one of the most diversified banking groups in Europe, having been created from a merger of the retail/commercial bank BNP and the corporate/investment bank Paribas in 2000.
- Domestic Markets (DM) comprises the Group's four retail banking networks in the eurozone and its three specialised business lines (including leasing and digital banking). The retail banks are French Retail Banking (FRB), BNL in Italy, BNP Paribas Fortis in Belgium and BGL BNP Paribas in Luxembourg.
- International Financial Services (IFS) includes consumer finance, asset management and private banking, and subsidiaries in non-eurozone countries, including TEB in Turkey and BNP Paribas Bank Polska.
- Corporate & Institutional Banking (CIB) is a global provider of financial solutions to corporate and institutional clients and includes BNP's extensive trading and investment banking businesses.
Risk & Catalysts
AS OF 29 Jul 2024BNP’s Polish subsidiary has taken higher provisions for legal risks in its FX mortgage portfolio – these have been absorbed readily, and should have peaked.
Pressure on margins is high in Personal Finance, and despite the change in product mix – reducing the concentration in Personal loans and credit cards and moving to Auto loans, it was still a difficult FY23.
BNP Paribas remains the subject of various claims concerning the Madoff matter; amongst other claims. The bank says it has substantial defenses in the face of these claims. Litigation provisions on the balance sheet stood at €1,005 mn on 31 December 2023. BNP says the latest claims against it stand at $1.1 bn as of June 2024.
Key Metric
AS OF 29 Jul 2024| mn | 2Q24 | Y23 | Y22 | Y21 | Y20 |
|---|---|---|---|---|---|
| Return On Equity | 11.0% | 9.0% | 8.2% | 8.2% | 6.4% |
| Total Revenues Margin | 1.8% | 1.7% | 1.7% | 1.8% | 1.9% |
| Cost/Income | 58.5% | 62.6% | 60.7% | 67.3% | 68.2% |
| CET1 Ratio (Transitional) | 13.0% | 13.2% | 12.3% | 12.9% | 12.8% |
| CET1 Ratio (Fully-Loaded) | 13.0% | 13.2% | 12.3% | 12.9% | 12.8% |
| Leverage Ratio (Fully-Loaded) | 4.4% | 4.6% | 4.4% | 4.1% | 4.9% |
| Liquidity Coverage Ratio | 132% | 148% | 129% | 143% | 154% |
| Impaired Loans (Gross)/Total Loans | 2.9% | 2.9% | 2.9% | 3.3% | 3.6% |
CreditSight View Comment
AS OF 04 Sep 2024BNP remains one of the more diversified bank names in Europe and we regard it as a core holding. Its strong business and geographic diversification has helped it maintain good profitability and asset quality. It has extensive operations in Italy via its subsidiary BNL, where asset quality is now beginning to improve. Earnings have been resilient and CIB in particular a stand-out performer. Liquidity and funding metrics look sound. Asset quality has held up well, although an outlier is the group’s personal finance business. The latter is being restructured, to focus more on auto finance rather than personal lending. BNP is no longer a capital laggard in Europe after the sale of Bank of the West in the US. It is looking to expand now in insurance and asset management.
Recommendation Reviewed: September 04, 2024
Recommendation Changed: October 30, 2018
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Fundamental View
AS OF 24 May 2024Standard Chartered has been making good progress in the past few years, improving its asset quality and profitability and dealing with legacy litigation issues. Capital, funding and liquidity look solid.
However, the Russia/Ukraine conflict and global economic headwinds continue to cloud the near term outlook.
Its unusual business mix – headquartered and regulated in the UK but operating primarily in Asia, Africa and the Middle East – means it is well diversified but sensitive to geopolitical developments and emerging market volatility.
Business Description
AS OF 24 May 2024- Standard Chartered PLC is the holding company and listed entity of the group, in which Standard Chartered Bank is the main operating company.
- Although Standard Chartered is headquartered in London and therefore subject to UK banking regulation, its operations are mainly in Asia (Hong Kong is its biggest single market, as part of its Greater China & North Asia region), Africa and the Middle East. It is present in over 60 markets.
- It has the usual variety of businesses across these regions, including corporate and institutional banking, retail banking, commercial banking and private banking. It specialises in trade finance and cross-border cash management.
- The group announced a revised strategy in 2019 aimed at improving profitability after several years of de-risking, with a targeted return on tangible equity of 10%.
- It is classified as a G-SIB, with a regulatory capital buffer of 1%.
Risk & Catalysts
AS OF 24 May 2024Anti-government protests in Hong Kong, a slowing economy in China and a weak commercial real estate sector, and US/China trade tensions have threatened the growth and stability of some of Standard Chartered’s key markets.
A number of Standard Chartered’s markets have underperformed in the past and have therefore been seen as turnaround stories, including India, Korea, Indonesia and the UAE.
The group has had to improve its AML and sanctions controls. In April 2019, it paid a $947 mn fine to US authorities over breaches of US sanctions and a £102 mn fine to the UK FCA for AML weaknesses.
Key Metric
AS OF 24 May 2024| $ mn | 1Q24 | Y23 | Y22 | Y21 | Y20 |
|---|---|---|---|---|---|
| Return on Equity | 11.1% | 7.0% | 5.7% | 4.5% | 1.4% |
| Total Revenues Margin | 2.5% | 2.2% | 2.0% | 1.8% | 2.0% |
| Cost/Income | 58.4% | 64.1% | 66.9% | 74.3% | 70.4% |
| CET1 Ratio (Transitional) | 13.6% | 14.1% | 14.0% | 14.1% | 14.4% |
| CET1 Ratio (Fully-Loaded) | 13.6% | 14.1% | 13.9% | 14.1% | 14.3% |
| Leverage Ratio (Fully-Loaded) | 4.8% | 4.7% | 4.8% | 4.9% | 5.2% |
| Loan Impairment Charge | 0.2% | 0.2% | 0.3% | 0.1% | 0.8% |
| Impaired Loans (Gross)/Total Loans | 2.4% | 2.5% | 2.5% | 2.7% | 3.2% |
CreditSight View Comment
AS OF 02 May 2024We revised our recommendation on Standard Chartered HoldCo senior from Underperform to Market perform on 26 April 2023, but we changed our recommendations on Tier 2 and AT1 from Fair to Rich on 10 January 2024. The changes reflect StanChart’s recent resilient performance, with no impact on its deposit base from recent stresses in the banking system, while taking into account that the Chinese real estate market, a source of credit impairments in recent periods, remains weak. Capital and liquidity ratios are robust, but the bank continues to face geopolitical tensions inherent in its extensive operations in Hong Kong, China and the rest of Asia.
Recommendation Reviewed: May 02, 2024
Recommendation Changed: April 26, 2023
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Fundamental View
AS OF 08 Mar 2024UBS agreed to acquire Credit Suisse in March 2023 after the latter collapsed following a severe liquidity crisis.
CS was a large and complex organisation, so the integration, and the inevitable associated losses and costs, will dominate UBS’s strategic outlook and financial performance for several years.
However, UBS was able to negotiate substantial downside protection which should shield it from losses at CS.
Away from CS, UBS has reshaped its business model, with a greater emphasis on wealth management and less focus on investment banking, particularly fixed income.
Its earnings remain somewhat dependent on capital market conditions, but its capital, asset quality and profitability ratios have been among the best for European banks.
Business Description
AS OF 08 Mar 2024- Headquartered in Zurich, Switzerland, UBS has private, corporate and institutional clients worldwide and retail clients in Switzerland. It is one of the world's largest wealth managers.
- It completed the acquisition of CS on 12 June 2023. It has promised a strategic update with its 4Q23 earnings but confirmed that it will retain CS’s domestic Swiss bank (Credit Suisse Schweiz AG) and will merge it with its own domestic bank (UBS Switzerland AG) in 2024, keeping the CS brand “for the time being”.
- CS’s holding company (Credit Suisse Group AG) has been merged into UBS Group AG, so that the group has a single holding company, but so far the operating subsidiaries, including UBS AG and Credit Suisse AG, have been kept separate. UBS plans to merge the CS operating subsidiaries into UBS’s in 2024.
- UBS operates through its Corporate Center and four business divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and the Investment Bank, plus a new Non-core and Legacy division following the acquisition of CS.
- The Investment Bank has been restructured in recent years to scale back fixed income trading and focus on equities trading and origination & advisory business.
Risk & Catalysts
AS OF 08 Mar 2024The acquisition of CS will be a long and complex process, and the necessary restructuring is likely to result in heavy losses and costs, although UBS has substantial protection, not least in the large negative goodwill.
Litigation costs have been a feature of UBS’s results in recent years, although it has agreed settlements in various cases recently.
A French court imposed fines and civil damages of €4.5 bn ($5.1 bn) in February 2019, which UBS appealed. The Court of Appeal retried the case de novo in March 2021 and reduced the fine to €3.75 mn plus civil damages of €800 mn and confiscation of €1 bn. UBS has appealed again and has set aside reserves of €1.1 bn ($1.2 bn) so far.
Key Metric
AS OF 08 Mar 2024| $ mn | 4Q23 | Y23 | Y22 | Y21 | Y20 |
|---|---|---|---|---|---|
| Return On Equity | (1.3%) | 40.3% | 13.0% | 12.4% | 11.6% |
| Total Revenues Margin | 2.6% | 2.9% | 3.1% | 3.2% | 3.2% |
| Cost/Income | 105.7% | 95.0% | 72.1% | 73.6% | 73.0% |
| CET1 Ratio (Transitional) | 14.5% | 14.5% | 14.2% | 15.0% | 13.8% |
| CET1 Ratio (Fully-Loaded) | 14.5% | 14.5% | 14.2% | 15.0% | 13.8% |
| Leverage Ratio (Fully-Loaded) | 5.5% | 5.5% | 5.7% | 5.7% | 5.4% |
| Liquidity Coverage Ratio | 216% | 216% | 164% | 155% | 152% |
| Impaired Loans (Gross)/Total Loans | n/m | n/m | 0.4% | 0.4% | 0.6% |
CreditSight View Comment
AS OF 07 May 2024We have a Market perform recommendation on UBS AG (operating bank) but changed our recommendation on UBS Group (holding company) to Underperform on 10 January 2024. UBS was one of the first investment banks to restructure, exiting much of its fixed income trading business, leaving it with a greater emphasis on wealth management. Its capital and asset quality ratios are among the best for European banks, and it has had no problems complying with Swiss TLAC rules. Its takeover and rescue of Credit Suisse in March 2023 carries significant execution risk, the main reason for our Underperform recommendation, but UBS has substantial downside protection, and we expect its financials to remain relatively sound.
Recommendation Reviewed: May 07, 2024
Recommendation Changed: January 10, 2024
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Fundamental View
AS OF 05 Feb 2024ING displays robust and consistent asset quality, good earnings, solid capital ratios and a well-balanced funding profile.
These attributes are supported by its strong franchise in retail and wholesale banking in the Benelux region, its good geographic diversification, and its focus on low risk residential mortgage lending.
At the same time, it has sizeable exposures to cyclical industry sectors in its Wholesale Banking division, although these have been reduced in recent years.
Business Description
AS OF 05 Feb 2024- ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group. It is now the largest Dutch financial institution by total assets.
- ING Bank is focused on retail and commercial banking in the Benelux countries, with direct banking franchises in Germany, Spain, Italy, Australia, as well as Poland, Romania, Turkey and the Philippines.
- In April 2016, it completed the process of divesting all of its insurance business (in Europe, the US and Asia), under the Restructuring Plan conditions imposed by the European Commission after it received state aid in 2008-2009.
- In November 2016, ING announced that its resolution entity would be its holding company, ING Groep NV. ING Groep is now the issuing entity for all TLAC/MREL-eligible debt (AT1, Tier 2 and senior unsecured), and its sole operating entity is ING Bank N.V.
Risk & Catalysts
AS OF 05 Feb 2024ING has determinedly managed down its Russian exposure although we may expect a slower pace of reduction from now on.
ING’s CET1 ratio will trend down towards its 12.5% target in the coming years, bringing it more in line with other major peers. This is lower than its current level of above 14%, but its target implies a management buffer (including P2G) of around 150 bp over its fully-loaded CET1 requirement.
Customer deposits fund 64% of ING’s balance sheet. 85% of deposits are insured.
Commercial Real Estate exposure is €48 bn or 6% of total loans, of which US office exposure stands at €1.3 bn. The NPL ratio of the book is 2.0%.
Key Metric
AS OF 05 Feb 2024| € mn | 4Q23 | Y23 | Y22 | Y21 | Y20 |
|---|---|---|---|---|---|
| Return On Equity | 12.1% | 14.4% | 7.1% | 8.8% | 4.6% |
| Total Revenues Margin | 2.2% | 2.3% | 1.9% | 2.0% | 1.9% |
| Cost/Income | 56.9% | 51.2% | 60.3% | 60.5% | 63.2% |
| CET1 Ratio (Transitional) | 14.7% | 14.7% | 14.5% | 15.9% | 15.5% |
| CET1 Ratio (Fully-Loaded) | 14.7% | 14.7% | 14.5% | 15.9% | 15.5% |
| Leverage Ratio (Fully-Loaded) | 5.0% | 5.0% | 5.1% | 5.9% | 4.8% |
| Liquidity Coverage Ratio | 143% | 143% | 134% | 139% | 137% |
| Impaired Loans (Gross)/Total Loans | 1.8% | 1.8% | 1.8% | 1.8% | 2.1% |
CreditSight View Comment
AS OF 05 Sep 2024After divesting its insurance operations, the remaining business, ING Bank, has stayed a solid Benelux-based bank with a strong direct banking arm in several countries. Profitability growth has been supported by a gradual recovery in the Dutch economy, but since 2018 heavily affected by higher compliance costs after ING was hit by a money-laundering charge. In the current higher rate environment, ING has benefited greatly from higher deposit margins, helping to offset any slowdown in loan income. Net interest revenues are declining but fundamentally, the bank looks in good shape versus several other core European banks. We move to Outperform on its HoldCo bonds on 2 May 2024, from Market perform.
Recommendation Reviewed: September 05, 2024
Recommendation Changed: May 02, 2024
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Fundamental View
AS OF 12 Dec 2023- Having run off its non-core assets and sold Barclays Africa, Barclays is now focusing on improving profitability.
- It benefits from its wide diversification in UK and US markets, with investment banking performing well in recent periods despite being perceived as volatile and higher risk.
- Barclays’ large consumer finance business might prove to be vulnerable to rising interest rates and the cost of living crisis, but group earnings have been bolstered by good trading income and have, overall, benefited from the higher rates.
- Economic uncertainty clouds the near term outlook, but Barclays has strengthened its balance sheet metrics, with improved capital/leverage ratios, strong liquidity, and good loss-absorbing capacity.
Business Description
AS OF 12 Dec 2023- Barclays is a major global financial services provider, engaged in personal banking, credit cards in the US, UK and Europe (Barclaycard), corporate and investment banking, and wealth and investment management.
- Having had an extensive international presence in Europe, the Americas, Africa and Asia, it has narrowed its focus to the UK & US markets, and has sold its stake in Absa (Barclays Africa).
- Its operations were previously split into Core and Non-Core, with Barclays Non-Core (BNC) containing the Group's non-strategic assets and businesses. Following an accelerated wind-down, Barclays closed BNC on 1 July 2017 with residual RWAs of £23 bn re-absorbed by the bank's business divisions.
- Barclays has implemented its ring-fencing split under which the newly established Barclays Bank UK PLC has become its UK ring-fenced bank (from 1 April 2018) and Barclays Bank PLC continues as the non-ring-fenced bank (accounting for around 80% of group assets).
Risk & Catalysts
AS OF 12 Dec 2023- With the UK and US economies beset by high inflation and high interest rates, asset quality is likely to come under pressure, and credit losses look set to rise, although so far there are no material signs of stress.
- Barclays has substantial credit card businesses in the UK and US, which could be vulnerable to the economic weakness.
- There is an ongoing debate about the weight of investment banking in the group as peers scale back or exit certain activities.
- A rescission offer to bondholders after the over-issuance of structured securities in the US resulted in large losses in 2021 and 1H22, partially offset by hedges, but that appears to have been an isolated case.
Key Metric
AS OF 12 Dec 2023| £ mn | 3Q23 | Y22 | Y21 | Y20 | Y19 |
|---|---|---|---|---|---|
| Return On Equity | 7.4% | 8.7% | 10.5% | 3.8% | 5.3% |
| Total Revenues Margin | 1.6% | 1.7% | 1.6% | 1.7% | 1.9% |
| Cost/Income | 63.1% | 67.0% | 66.8% | 63.8% | 71.3% |
| CET1 Ratio (Transitional) | 14.0% | 13.9% | 15.1% | 15.1% | 13.8% |
| CET1 Ratio (Fully-Loaded) | 14.0% | 13.7% | 14.7% | 14.3% | 13.5% |
| Leverage Ratio (Fully-Loaded) | 5.0% | 5.3% | 5.2% | 5.3% | 4.5% |
| Liquidity Coverage Ratio | 159% | 165% | 168% | 162% | 160% |
| Impaired Loans (Gross)/Total Loans | 2.1% | 2.0% | 2.2% | 2.6% | 2.3% |
CreditSight View Comment
AS OF 22 Jan 2024We have a Market perform recommendation on the senior debt of Barclays PLC (holding company) and an Outperform on Barclays Bank (operating bank). We also see its Tier 2 as Cheap. Barclays has benefited from the diversification of its balance sheet and earnings, both geographically, with a large part of its business in the US, and by business, encompassing personal and business banking in the UK, consumer finance in the UK and US, and investment banking. While some of these businesses carry higher credit risk (e.g. credit cards) or market risk, recent performance has been solid, and asset quality remains benign. Capital ratios have improved, and it looks well protected against economic headwinds. Liquidity and funding metrics are strong.
Recommendation Reviewed: January 22, 2024
Recommendation Changed: January 13, 2020
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Search topics about wealth insights and investments.Société Générale
- Sector: Financial Services
- Sub Sector: BanksInsuranceSpecialty Finance
- Region: EuropeFrance
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Fundamental View
AS OF 04 Dec 2023- SocGen’s business is not geared to benefit significantly from the higher rate environment, given the quirks of the French market. Its investment banking business is doing well and looks less risky these days.
- The sale of its Russian businesses entailed a large write-down in 1H22, but it had a minimal capital impact and has benefited SocGen’s credit profile.
- Capital ratios have improved sizeably in recent years, making its MDA cushion comfortable.
- Asset quality also looks good, with a relatively low cost of risk and decreasing non-performing loans.
Business Description
AS OF 04 Dec 2023- SocGen is one of the leading retail and commercial banks in France and is also active in corporate and investment banking internationally. It has strong franchises in equipment financing, car leasing and fleet management.
- Its operations are split into French Retail Banking, Private Banking & Insurance, International Retail Banking, Mobility & Leasing Services, Global Banking & Investor Solutions, and a Corporate Centre.
- Retail banking in France includes the Société Générale, Crédit du Nord and Boursorama brands. In December 2020, it announced the merger of the Société Générale & Crédit du Nord networks, largely in order to reduce the number of branches.
- International Retail Banking includes operations in Western Europe, Czech Republic, Romania, Africa/Asia & Other Mediterranean regions.
- The acquisition of LeasePlan, and Boursorama’s agreement to take over ING’s French retail business, highlight SocGen’s determination to extend its franchise.
Risk & Catalysts
AS OF 04 Dec 2023- Exposure to Russia has been managed down significantly. While not completely gone, it now makes up only a small percentage of the bank’s balance sheet.
- It has substantial investment banking and capital markets operations that are somewhat less diversified than those of peers, but the business’s risk profile has improved.
- Trends in retail banking remain subdued, not helped by low rates and a changing operating environment, although management has already implemented changes in its French business.
- Our central scenario is that earnings will be lumpy for a little while. We expect SocGen to reshape the perimeter of its business operations several times over the next 12-24 months.
Key Metric
AS OF 04 Dec 2023| € mn | 3Q23 | Y22 | Y21 | Y20 | Y19 |
|---|---|---|---|---|---|
| Return On Equity | 1.7% | 2.8% | 8.9% | (0.4%) | 5.2% |
| Total Revenues Margin | 1.6% | 1.8% | 1.8% | 1.6% | 1.9% |
| Cost/Income | 70.4% | 66.3% | 68.2% | 75.6% | 71.9% |
| CET1 Ratio (Transitional) | 13.3% | 13.5% | 13.7% | 13.4% | 12.7% |
| CET1 Ratio (Fully-Loaded) | 13.2% | 13.5% | 13.6% | 13.2% | 12.7% |
| Leverage Ratio (Fully-Loaded) | 4.2% | 4.3% | 4.8% | 4.7% | 4.3% |
| Liquidity Coverage Ratio | 147% | 145% | 129% | 153% | 124% |
| Impaired Loans (Gross)/Total Loans | 3.3% | 3.1% | 8.6% | 3.7% | 3.5% |
CreditSight View Comment
AS OF 10 Jan 2024SocGen’s main business divisions have seen good growth post-COVID 19 and improving profitability, helped by rising interest rates. Global Markets earnings have been volatile over the years, but trading income has been strong in recent periods. Asset quality ratios are good, all things considering. Its financial services business – mainly auto leasing, helped by the acquisition of LeasePlan, has been making an increased contribution. The outlook for French Retail is quite weak until 2024. Capital and leverage ratios look much better than they did in the past. We moved its Tier 2 to Cheap from Fair, and its AT1 from Cheap to Fair, on 10 January 2024.
Recommendation Reviewed: January 10, 2024
Recommendation Changed: May 12, 2023
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Fundamental View
AS OF 29 Feb 2024Crédit Agricole’s business model enjoys benefits of scale, with a strategy of organic growth and bolt-on acquisitions.
Italy is an important part of its operations, accounting for around 7% of the loan book, and while asset quality there is weaker than at the group level, its performance has been improving.
Group asset quality and capital ratios are robust, reflecting a largely low-risk balance sheet – retail and related banking accounts for around 80% of group net profits.
Business Description
AS OF 07 Jun 2023- Crédit Agricole (CA Group) includes 38 regional banks (Caisses Régionales or CRs) owned by 2,401 local credit co-operatives themselves, owned by 11.5 million mutual shareholders.
- The scope of consolidation used by regulators (e.g. for stress tests) is the CA Group level. The listed entity is Crédit Agricole SA (CASA), owned 57.1% by the CRs (via a holding company); the remaining 42.9% is free float.
- CASA has four business lines in its own operations and through subsidiaries: Retail Banking (LCL, Italy operations), Asset Gathering (Amundi, Indosuez Wealth Management, and insurance business via Crédit Agricole Assurances), Large Customers (Corporate & Investment Bank and Caceis Investor Services), and Specialised Financial Services (Leasing & Factoring and Consumer Finance).
- It mainly operates in banking and insurance in France. Its second largest market is Italy, where CA Italia offers consumer, private and corporate banking, asset management and insurance. It acquired Cariparma in 2007, and since then has added a number of other small banks, most recently Credito Valtellinese in 2021.
Risk & Catalysts
AS OF 29 Feb 2024Crédit Agricole regards Italy as its second domestic market. Asset quality is still weaker than in the rest of the group but has been improving for some time now.
The group aims to strengthen its already strong positions in specialist finance and asset management via organic growth, partnerships, and bolt-on acquisitions. The group regularly looks for opportunities and it builds stakes in various businesses, which remain areas to monitor. The group tends to only pursue opportunities which generate specific return on investments, return on normalised equity, and the capacity to integrate without any difficulty.
Retail Banking in France remains under pressure due to higher (deposit) funding costs.
Group capital ratios remain of comfort for bondholders, with CASA run more tightly, although capital ratios improved there on the first time adoption of IFRS 17.
Key Metric
AS OF 29 Feb 2024| € mn | 4Q23 | Y23 | Y22 | Y21 | Y20 |
|---|---|---|---|---|---|
| Return On Equity | n/m | 6.3% | 6.3% | 7.4% | 4.0% |
| Total Revenues Margin | 1.4% | 1.5% | 1.5% | 1.6% | 1.6% |
| Cost/Income | 64.8% | 60.5% | 60.6% | 62.7% | 65.0% |
| CET1 Ratio (Transitional) | 17.5% | 17.5% | 17.6% | 17.5% | 17.2% |
| CET1 Ratio (Fully-Loaded) | 0.0% | 0.0% | 17.2% | 17.2% | 16.9% |
| Leverage Ratio (Fully-Loaded) | n/m | n/m | 5.3% | 6.0% | 6.0% |
| Liquidity Coverage Ratio | 144% | 144% | 167% | 171% | 149% |
| Impaired Loans (Gross)/Total Loans | 2.1% | 2.1% | 2.1% | 2.0% | 2.4% |
CreditSight View Comment
AS OF 01 Aug 2024Crédit Agricole remains a core holding amongst European banks, with the benefits of several large business franchises. The largest retail banking group in France has reduced the complexity in its mutual structure, with stakes in all the regional banks formerly held by the quoted entity Crédit Agricole S.A. now transferred to a new group entity. Retail banking has been under pressure but there are signs this is now reducing. Asset quality and capital are sound. This strong starting position helped protect the group’s financial ratios during the COVID-19 pandemic, and the latest set of results were resilient in the face of a challenging macro-economic backdrop globally.
Recommendation Reviewed: August 01, 2024
Recommendation Changed: August 10, 2017
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