Core Viewpoint - Crédit Agricole S.A. has announced the redemption of its outstanding USD Undated Deeply Subordinated Additional Tier 1 Fixed Rate Resettable Notes, with a total nominal amount of USD 457,689,000 remaining after a previous tender offer [2][3]. Group 1: Redemption Details - The redemption will take effect on December 23, 2025, and will include the outstanding nominal amount along with any accrued interest [2][4]. - The issuer previously repurchased USD 792,311,000 of the Notes through a tender offer conducted on September 2, 2025 [3]. Group 2: Terms and Conditions - On the redemption date, the redemption amount will be due and payable, and the Notes will cease to bear interest unless the redemption amount is improperly withheld [4]. - Holders of the Notes will receive formal notice of the redemption in accordance with the terms and conditions outlined in the original prospectus [4].

Core Insights - Credit Agricole SA reported a 10% increase in third-quarter profit, surpassing expectations [1] - The profit increase was attributed to the revaluation of its increased stake in Banco BPM and a rise in investment banking revenues [1] Financial Performance - The third-quarter profit growth of 10% indicates strong financial performance relative to market expectations [1] - The increase in investment banking revenues contributed significantly to the overall profit growth [1] Strategic Moves - Credit Agricole's decision to mark up the value of its stake in Banco BPM reflects a strategic investment approach [1] - The focus on enhancing investment banking operations suggests a commitment to diversifying revenue streams [1]

Core Insights - Crédit Agricole S.A. reported strong financial results for Q3 2025, with net income group share increasing by 10.2% year-on-year to €1,836 million, driven by high revenues and a controlled cost of risk [32][40][44] - The group achieved revenues of €9,731 million in Q3 2025, reflecting a 5.6% increase compared to Q3 2024, with a gross operating income of €3,944 million, up 8.9% [18][33] - The cost/income ratio improved to 59.5%, down 1.2 percentage points from the previous year, indicating better operational efficiency [18][35] Financial Performance - For Q3 2025, Crédit Agricole S.A. reported revenues of €6,850 million, a 5.6% increase from Q3 2024, with operating expenses rising by 4.0% to €3,837 million [33][34] - The gross operating income for the quarter was €3,013 million, up 7.7% year-on-year, while the cost of risk increased by 13.0% to €489 million [35][37] - In the first nine months of 2025, net income group share reached €7,120 million, a 9.7% increase compared to the same period in 2024 [21][40] Business Lines and Activity - The group experienced sustained activity across all business lines, with significant growth in home loans (+18% year-on-year) and corporate loans (+14% year-on-year) [7][10] - Asset management saw record inflows of €15 billion in Q3 2025, contributing to a total of €2,317 billion in assets under management [11][52] - The insurance segment reported strong performance, with revenues reaching €11.8 billion, up 21.4% compared to Q3 2024 [46][62] Customer Growth and Market Position - Crédit Agricole Group gained 522,000 new customers in Retail Banking during Q3 2025, with total on-balance sheet deposits amounting to €835 billion, reflecting a 0.6% year-on-year increase [10][27] - The group maintained a strong market share in credit, standing at 22.6% as of June 2025, with buoyant loan production driven by home loans and specialized markets [27][10] Risk Management and Solvency - The phased-in CET1 ratio for Crédit Agricole S.A. was reported at 11.7%, while the group’s CET1 ratio stood at 17.6%, indicating strong solvency [3] - The cost of risk for the group was stable at 27 basis points over a rolling four-quarter period, reflecting prudent risk management practices [19][24]

Group 1 - French bank stocks experienced a widespread decline on October 17, with Crédit Agricole, BNP Paribas, and Société Générale seeing drops between 2.5% and 3.8% [1]

Core Viewpoint - The Crelan Group and Crédit Agricole Group have finalized their strategic partnership, which includes the signing of commercial agreements and the acquisition of a 9.9% minority stake in Crelan SA/NV by Crédit Agricole [2][5]. Group 1: Strategic Partnership Details - The partnership aims to enhance banking services in Belgium by combining Crelan's local presence with Crédit Agricole's expertise in asset management, private banking, and leasing [3]. - The two groups will focus on commercial collaborations in key areas such as asset management through Amundi, private banking via Indosuez Wealth Management / Bank Degroof Petercam, and leasing through CA Leasing & Factoring [2][3]. Group 2: Financial Impact - The acquisition of the 9.9% stake has a negligible impact on the CET1 ratio of Crédit Agricole S.A. and its subsidiaries, while positively affecting Crelan Group's phased CET1 capital ratio by 2.1% [6]. - This increase in capital ratio provides Crelan with greater financial flexibility to pursue future organic growth opportunities [6]. Group 3: Company Profiles - Crelan Group ranks fifth among Belgian retail banks, with total assets of €55.8 billion, managing €44.3 billion in customer deposits and supporting €49.5 billion in loans [7]. - Crédit Agricole Group is Europe's leading retail bank and asset manager, serving 54 million customers and characterized by its cooperative banking model [8][9].

Core Points - The Paris stock market experienced a significant decline due to political turmoil in France, with the CAC40 index dropping as much as 2.1% before closing down 1.36%, falling below the 8000-point mark [1] - The resignation of Prime Minister Le Cornu, which occurred shortly after the announcement of a new government, triggered widespread criticism and heightened political tensions, marking the shortest tenure for a Prime Minister in the history of the Fifth Republic [1] - The financial sector was particularly hard hit, with major banks like Société Générale, Crédit Agricole, and BNP Paribas seeing declines of 4.23%, 3.43%, and 3.21% respectively [1] Market Analysis - Analysts noted that French bank stocks are highly sensitive to changes in domestic debt financing costs, with a notable increase in sovereign bond yields putting pressure on these stocks [1] - Following Le Cornu's resignation, the yield on France's 10-year government bonds rose from 3.51% to 3.61%, before settling at 3.57% [1] - The spread between French and German 10-year government bond yields widened to 0.85 percentage points, significantly higher than the approximately 0.5 percentage points observed before President Macron's planned dissolution of the National Assembly in June 2024 [1][2]

Core Viewpoint - Following the resignation of the French Prime Minister, French bank stocks continued to decline, with shares of Société Générale, BNP Paribas, and Crédit Agricole experiencing a drop of 4.2% to 5.5% [1] Company Summary - Société Générale's stock price fell within the range of 4.2% to 5.5% after the political shift [1] - BNP Paribas also saw a similar decline in its stock price, contributing to the overall downturn in the banking sector [1] - Crédit Agricole's shares were affected as well, reflecting the broader negative sentiment in the French banking industry following the Prime Minister's resignation [1]

Core Viewpoint - Crédit Agricole S.A. has announced a share repurchase program for up to 22,886,191 ordinary shares, aimed at offsetting the dilutive effect of a capital increase reserved for employees, with the program set to commence on October 1, 2025, and conclude by November 13, 2025 [1][2]. Group 1: Share Repurchase Program Details - The share repurchase program will involve the cancellation of shares purchased [1]. - An independent investment services provider has been instructed to execute the share purchases during the specified period [2]. - The purchases will be conducted on the regulated market of Euronext Paris, adhering to relevant regulatory standards [3]. Group 2: Temporary Suspension of Agreements - The existing liquidity agreement with Kepler Cheuvreux will be temporarily suspended during the execution of the share repurchase program [4]. Group 3: Documentation and Resources - Details of the share repurchase program are available in Crédit Agricole S.A.'s Universal Registration Document and the text of the relevant resolution adopted at the General Meeting [5].

Group 1 - Credit Agricole is in discussions with the Italian government regarding a potential merger between its Italian unit and Banco BPM [1][2] - The French bank has sought supervisory clearance to increase its stake in Banco BPM to 29.9% and has already raised its holding to just above 20% using derivative contracts [2] - Banco BPM is considering merger options, including a tie-up with Credit Agricole Italy, which is its largest shareholder, or a combination with Monte dei Paschi di Siena [3] Group 2 - The Italian government has special powers to review deals involving strategic national assets, including banks, and has requested guarantees from Credit Agricole to ensure continued credit flow to small businesses, which are key clients of Banco BPM [4] - Additional guarantees are sought regarding Anima Holding, a fund manager acquired by Banco BPM, to protect domestic savings [5] - The Italian Economy Minister has indicated no political objections to a merger with Credit Agricole but emphasized the application of legislation to protect key assets if the deal proceeds [5]

Group 1 - Credit Agricole representatives have engaged in discussions with Italian government officials regarding a potential merger between Credit Agricole's Italian unit and Banco BPM [1] - The talks indicate a strategic interest from Credit Agricole in expanding its presence in the Italian banking sector [1] - The discussions are part of broader trends in the European banking industry, where consolidation is being considered to enhance competitiveness and efficiency [1]