Financial Data and Key Metrics Changes - The company reported a net profit that is 20% above the initial target for 2025, with a return on tangible equity (ROTE) of 14%, which is 2 percentage points above the target [5][47] - The cost/income ratio improved significantly, remaining below the ceiling set at 58% [5][47] - Overall, all financial indicators showed an increase, including revenues, gross operating income, and net profit for both the quarterly and full-year results [51] Business Line Data and Key Metrics Changes - Retail banking activities saw a strong rebound, particularly in home loan production, which increased by 18% compared to Q4 2023 [10][54] - The insurance segment achieved a record level of net premium income of EUR 43.6 billion for the full year [13][56] - Asset management, represented by Amundi, reported net inflows of EUR 55 billion and total assets under management of EUR 2.24 trillion [13][56] - The Specialized Financial Services division experienced a revenue increase of EUR 35 million, marking the first growth in 2024 [16] Market Data and Key Metrics Changes - The company reported a stable deposit mix in France, which is crucial for improving the net interest margin in the future [54] - The corporate center saw a sharp increase in revenues, driven partly by a higher valuation of Banco BPM shares [60] Company Strategy and Development Direction - The company is focused on transitioning towards financing renewables and low-carbon energy sources, with a significant shift in financing from fossil fuels to low-carbon energy [36][81] - The company aims to continue increasing market shares across various business lines, with a reported addition of 1.9 million new customers in retail banking annually [38][82] - The company is also exploring inorganic growth opportunities through strategic acquisitions, which are expected to contribute approximately EUR 4.5 billion in revenues by 2025 [84] Management's Comments on Operating Environment and Future Outlook - Management indicated that while there are both tailwinds and headwinds expected in 2025, they believe they can maintain performance similar to 2024 on a structural basis [98] - The company is in a transition period with a new CEO expected to take charge in mid-May, and a new medium-term plan is anticipated to be presented in Q4 2025 [95][96] - There are no signs of asset quality deterioration in France, despite some sectors being sensitive [112] Other Important Information - The solvency ratio remains strong at 11.7%, above the target of 11% [72] - The liquidity coverage ratio (LCR) is significantly above the target at 131% for Crédit Agricole S and 127% for the group [78] Q&A Session Summary Question: Are you reviewing your guidance up? - The company is in a transition period with a new CEO starting in mid-May, and a new medium-term plan will be developed, but no immediate updates on guidance are expected [95][96] Question: Is there a structural shift in ROTE? - The company is targeting a return on tangible equity above 12% for 2025, and they are well positioned regarding ROTE, but this will be part of the new medium-term plan [97][100] Question: What is the focus with excess capital? - The company is considering various opportunities, including bolt-on acquisitions and larger deals, but specifics will be outlined in the new medium-term plan [109] Question: Is there a risk of asset quality deterioration in France? - Management indicated that there are no signs of overall asset quality deterioration, although some sectors remain sensitive [112]
Credit Agricole(CRARY) - 2024 Q4 - Earnings Call Transcript