Group 1 - Crédit Agricole has received authorization from the European Central Bank to increase its shareholding in Banco BPM beyond 20%, raising its stake by an additional 0.3% through derivative transactions [1] - The institution has stated it does not intend to acquire control of Banco BPM and will keep its stake below the mandatory tender offer threshold, transitioning to influence accounting from the fourth quarter of 2025 [2] - The change in accounting treatment will mean that fluctuations in Banco BPM's share price will no longer directly impact Crédit Agricole's results, with an initial negative impact of approximately €600 million expected in the fourth quarter of 2025 [3] Group 2 - Despite the initial negative impact, the net income effect from holding Banco BPM shares, including fair value adjustments and dividends, is anticipated to be positive by roughly €200 million in 2025 [4] - The consolidation of Banco BPM is projected to enhance Crédit Agricole's CET1 ratio by about five basis points [4] - In April 2025, the ECB authorized Crédit Agricole to increase its stake in Banco BPM to up to 19.9% under the qualifying holding regime [4] Group 3 - Separately, UniCredit has filed an appeal with Italy's highest administrative court regarding terms set by authorities concerning its unsuccessful attempt to take over Banco BPM [5] - The dispute centers on a government requirement for UniCredit to cease its Russian operations, a condition upheld by a lower court and now being challenged [6]

Core Insights - The European Central Bank has authorized Crédit Agricole S.A. to increase its stake in Banco BPM to 19.9% [1][5] - Crédit Agricole S.A. has stated that this increase aligns with its long-term investment strategy and does not plan to launch a public offer for Banco BPM [2][5] - As of Q1 2025, Crédit Agricole S.A. holds a position through derivatives that reaches 9.9% of Banco BPM's share capital and intends to exercise its right to physical delivery of shares [5] Financial Impact - The increased position in derivatives will have a limited impact on Crédit Agricole S.A.'s CET1 ratio in Q1 2025 [6] - In Q2 2025, the CET1 ratio is expected to be impacted by approximately 20 basis points due to the increased stake in Banco BPM and the crossing of the exemption threshold for significant equity investments in the financial sector [6]