Crédit Mutuel Alliance Fédérale - 2025 Half-year results press release

Core Insights - Crédit Mutuel Alliance Fédérale reported strong business activity and solid results for the first half of 2025, despite being impacted by a non-recurring income tax surcharge [2][3]. Financial Performance - The mutualist group's operating results reached record levels, with net revenue of €8.8 billion, reflecting a 6.2% increase compared to the previous year [3][8]. - Income before tax was €2.9 billion, up 8.4%, while net income decreased to €1.8 billion, down 10.1% due to a €314 million impact from the income tax surcharge [3][8]. - General operating expenses rose to €5 billion, an increase of 6.7%, driven by investments in technology and expansion efforts [6][8]. Business Segments - All business lines performed well, with retail banking generating €6.5 billion in revenue (+6.1%), insurance at €812 million (+15.9%), and specialized business lines at €1.5 billion (+2.8%) [8]. - The banking networks benefited from an improved net interest margin and a rebound in new business [4]. Risk and Capital Structure - The total cost of risk stabilized at €902 million, a decrease of 5.8%, although it remains elevated due to ongoing economic challenges [5][8]. - The group maintains a strong financial position with €68 billion in shareholders' equity and a CET1 ratio of 19.5% as of June 30, 2025 [5][9]. Strategic Initiatives - Crédit Mutuel Alliance Fédérale is committed to promoting the common good through its "benefit corporation" approach, allocating 15% of its consolidated net income annually to societal initiatives [7].