Credit Update. September 2016

Transcription

1 Credit Update September 2016

2 Contents Crédit Agricole Group Q2-16 & H1-16 Highlights Simplified Group Structure Financial Management Risks Implementation of the MTP French Housing Market Crédit Agricole Home Loan SFH Crédit Agricole Public Sector SCF Appendices Contact list 3 Credit Update September 2016

3 SECTION 1: CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS 4 Credit Update September 2016

4 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Key figures Crédit Agricole Group Crédit Agricole S.A. Q2-16 H1-16 Q2-16 H1-16 Stated Net Income Group Share (NIGS) 1,942m 2,760m 1,158m 1,385m +29.5% Q2/Q2 +1.2% H1/H % Q2/Q2-18.7% H1/H1 Underlying Net Income Group Share (NIGS*) 1,623m 2,865m 818m 1,212m -1.5% Q2/Q2-0.9% H1/H % Q2/Q2 +4.6% H1/H1 Regional Banks NIGS 780m 1,606m -3.8% Q2/Q2 +0.4% H1/H1 Fully-loaded CET % 11.2% * See slides 9 and 10 of this presentation, as well as slides 10 and 25 of the Second quarter and first half 2016 results on Credit Agricole s website for more details on specific items 5 Credit Update September 2016

5 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Highlights - Crédit Agricole Group Good second quarter results ( 1,942m), boosted by the VISA disposal gain ( 337m), driven by: - strong business momentum in all business lines - robust business model in an environment of very low interest rates - continued prudent risk profile (low cost of risk and daily results of market activities still positive post- Brexit) Group's CET1 ratio increased to 14.2% EBA stress tests confirm the Group's financial strength - In the adverse stress scenario (around bps impact vs the Group's phased-in CET1 at 31/12/2015), the Group would continue to meet its regulatory requirements, i.e. the minimum SREP level for 2019 set in December 2015 and the systemic buffer, with a ratio of 10.5% Financial strength of the Group is confirmed by Moody s upgrade by one notch to A1, in July 2016, of the long-term debt ratings of Crédit Agricole S.A., Credit Agricole CIB, as well as the 38 rated Regional Banks; outlook stable. 6 Credit Update September 2016

6 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Highlights - Crédit Agricole S.A. Second quarter confirms resilience of underlying performance Sustained activity in all business lines Continued strong business momentum in Asset gathering and in Retail banking, which delivered revenue growth vs Q1-16 (+1.6% for LCL, +3.8% for Cariparma) Strong growth in insurance, particularly property & casualty (premium income +6% Q2/Q2) Sustained growth in new consumer finance lending (+ 10.3bn in Q2-16) Continued growth in CIB revenues in the last three quarters (+8.7% Q2/Q1) NIGS at 1,158m including the disposal gain on VISA ( 328m), up 26% Q2/Q2 Underlying net income Group share at 818m, up 13% vs Q2-15 due to the first positive recurring impact on revenues of the Group simplification transaction, and thanks to the near-stability of expenses and continued control of the cost of risk Financial robustness further strengthened with a CET1 ratio of 11.2% (pro forma of the Group simplification transaction, the CET1 ratio would be 11.9%) 7 Credit Update September 2016

7 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Sustained activity in all business lines Retail banking - LCL : - On-balance sheet deposits: +7.4% June/June, o/w +12.1% in demand deposits - Loans outstanding: +6.9% June/June in the small business and corporate segment - Excellent momentum in property & casualty insurance: new home, motor and health insurance business +24% Q2/Q2 - Cariparma : - Loans to individuals: +3% June/June - Loans to large corporates: +7.9% June/June Specialised financial services Asset gathering - Asset management : - Target of 1,000bn reached - Net inflows of bn in H Insurance: - Savings/retirement: 264bn in AuM - Property & casualty insurance: more than12 million policies in force Wealth management: - Assets under management : 150bn Large customers Consumer finance: - Record new lending of + 10bn in Q2-16 Leasing & Factoring: - Leasing: outstandings +3.1% June/June - Factored receivables France: +9% Q2/Q2 Regional Banks - Capital markets and investment banking: - Good momentum in all activities - Credit: growth in market share from 5.6% at end-june 2015 to 6.0% at end-june 2016* - Structured finance: - Healthy new business : fee and commission income up 15% Q2/Q2 - Asset servicing: - Development of Private Equity activites, real estate, and infrastructure (assets up 39% H1/H1), clearing and execution * Bookrunner in green bonds in euros, worldwide scope (Source Thomson Financial) - On-balance sheet deposits: +4.8% June/June o/w +10.7% in demand deposits and +7.8% in home purchase savings schemes - Loans outstanding: +3.2% June/June, o/w +7.3% in consumer finance and +5.0% in home loans - Life insurance: almost 180bn in assets under management at end-june 2016 (+2.6% June/June) 8 Credit Update September 2016

8 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Crédit Agricole Group Income statement H1-16 m H1-16 Specific items H1-16 underlying H1-15 Specific items H1-15 underlying D H1/H1 underlying Revenues 15,425 (280) 15,705 16, ,005 (1.9%) Operating expenses excl. SRF (10,047) (41) (10,006) (9,907) - (9,907) +1.0% Contribution to Single Resolution Fund (SRF) (282) - (282) (229) - (229) +23.1% Gross operating income 5,096 (321) 5,417 6, ,869 (7.7%) Cost of risk (1,308) - (1,308) (1,646) (350) (1,296) +0.9% Equity-accounted entities % Net income on other assets ns Income before tax 4,066 (321) 4,387 4,629 (63) 4,692 (6.5%) Tax (1,143) 215 (1,358) (1,676) (99) (1,577) (13.8%) Net income from discontinued or held-for-sale operations (18) - (18) ns Net income 2,934 (106) 3,040 2,935 (162) 3,097 (1.8%) Non controlling interests 174 (1) (14.6%) Net income Group Share 2,760 (105) 2,865 2,728 (162) 2,890 (0.9%) Specific items H1-16 Specific items H1-15 m Impact before tax Impact on NIGS Impact before tax Impact on NIGS DVA running (LC) Loan hedges (LC) Issuer spreads (Corporate centre) Liability management upfront payment (Corporate centre) (683) (448) - - Capital gain on VISA EUROPE (Corporate centre) Total impact on revenues (280) (78) LCL network optimisation cost (Retail banking) (41) (27) - - Total impact on operating expenses (41) (27) - - Additional provision for legal risk (LC) - - (350) (350) Total impact on cost of risk - - (350) (350) Total impact of specific items (105) (162) 9 Credit Update September 2016

9 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Crédit Agricole S.A. Income statement H1-16 m H1-16 Specific items H1-16 underlying H1-15 Specific items H1-15 underlying D H1/H1 underlying Revenues 8, ,531 8, ,700 (1.9%) Operating expenses excl. SRF (5,781) (41) (5,740) (5,764) - (5,764) (0.4%) Contribution to Single Resolution Fund (SRF) (244) - (244) (175) - (175) +39.5% Gross operating income 2,512 (35) 2,547 3, ,761 (7.8%) Cost of risk (899) - (899) (1,078) (177) (901) (0.2%) Equity-accounted entities ns Net income on other assets ns Income before tax 1,860 (35) 1,895 2, ,979 (4.3%) Tax (267) 214 (481) (717) (165) (552) (12.8%) Net income from discontinued or held-for-sale operations (17) ns Net income 1, ,425 1, , % Non controlling interests (5) 251 (15.6%) Net income Group Share 1, ,212 1, , % Specific items H1-16 Specific items H1-15 m Impact before tax Impact on NIGS Impact before tax Impact on NIGS DVA running (LC) Loan hedges (LC) Issuer spreads (Corporate centre) Regional Banks' dividends (Corporate centre) Liability management upfront payment (Corporate centre) (683) (448) - - Capital gain on VISA EUROPE (Corporate centre) Total impact on revenues LCL network optimisation cost (Retail banking) (41) (26) - - Total impact on operating expenses (41) (26) - - Switch (Corporate centre) Switch (Asset Gathering) Additional provision for legal risk (LC) - - (350) (342) Total impact on cost of risk - - (177) (235) Eurêka Total impact on Net income from discontinued or heldfor-sale operations Total impact of specific items Credit Update September 2016

10 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Prudent risk management in all business lines Cost of risk on outstandings (in bps over a rolling four-quarter period) Crédit Agricole S.A.* Groupe Crédit Agricole ** CACF Cariparma (1) CIB Financing activities (2) Regional Banks (3) LCL * Restated for the impact of Switch guarantee trigger and additional OFAC provision at end-june 2015, Switch guarantee clawback and provision for OFAC remediation costs at end-september 2015, and provision for OFAC remediation costs, additional legal provisions at end-december 2015 and additional legal provisions at end-june ** Restated for the impact of additional OFAC provision at end-june 2015, provision for OFAC remediation costs at end-september and end-december 2015, additional legal provisions at end-december 2015 and additional legal provisions at end-june 2016 (1) Restated for additional provisions recognised largely in preparation for the AQR in Italy for - 109m at end- March 2014 (2) Restated for the impact of the additional OFAC litigation provision at end-june 2015 and additional legal provisions at end-june 2016 (3) Restated for the impact of the Switch guarantee trigger at end-june 2015 and the Switch guarantee clawback at end-september 2015 Crédit Agricole S.A. & Regional Banks : impaired loans ratios and coverage ratios 4.0% Impaired loans ratio 3.6% 3.6% 3.6% 3.6% 3.7% 3.5% 3.5% 3.6% CASA Coverage ratio (incl. collective reserves)* 106.1% 105.6% 101.3% 100.3% 100.3% 100.4% 102.6% 102.3% 103.4% Regional Banks 2.5% 2.5% 2.6% 2.6% 2.5% 2.5% 2.5% 2.5% 2.5% Regional Banks 71.1% 71.9% 71.9% 72.8% 72.9% 72.6% 71.5% 68.5% 67.9% CASA * Calculated on the basis of outstandings not netted for available collateral and guarantees 11 Credit Update September 2016

11 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Oil & Gas sector: A high-quality and resilient portfolio 75% of sector exposure (EAD (1) ) to investment grade counterparties (2) Diversified exposure in terms of operators, activity type, commitments and geographies 75% of EAD in segments with small or no impact from falling oil prices 25% of EAD in Exploration & Production and Oil Services segments, more directly affected by falling oil prices First-ranking collateral on the vast majority of counterparties in the Exploration & Production segment $22.4bn EAD excluding commodity traders at end-june 2016 (2% of Crédit Agricole S.A. s total EAD) Down 3% vs December 2015, and stable vs March 2016 $4.2bn EAD to commodity traders at end-june 2016, compared to $3.5bn at end-march 2016 Increase of EAD to commodity traders due to higher oil prices during the quarter EAD except commodity traders ($bn) Oil and Gas Services 8% Upstream E&P 17% Downstream & Refining 9% MEXICO 5.0% RUSSIA 5.8% FRANCE 6.0% BRAZIL 4.9% 2.1 SAUDI ARABIA 2.4% CHINA 2.4% Midstream, Transport & Storage 24% State owned Oil&Gas Companies 21% 4.7 Integrated Oil Companies «majors» 21% SINGAPORE 0.7% INDIA 2.3% Others 4.7% Under watch 4% Provisions on 32% of the total Sub investment grade 18% UNITED STATES 32.9% EAD to commodity traders $4.2 bn Defaulted 3% Provisions on 45% of the total Investment Grade 75% (1) EAD: Exposure at default. EAD of $22.4bn at 30/06/2016 corresponds to an exposure of $28.6bn before the application of credit conversion factors (2) Internal rating equivalent Africa and Middle- East (others) 6.9% Asia (others) 5.0% UNITED KINGDOM SWITZERLAND 0.7% 8.5% Western europe (others) 11.8% 12 Credit Update September 2016

12 CRÉDIT AGRICOLE GROUP Q2-16 & H1-16 HIGHLIGHTS Strong solvency and TLAC position: Credit Agricole exhibits no shortfall Current and 2019 requirements* already fulfilled at 30/06/2016 Forecasts: No need to issue new AT1 instruments over the medium term plan horizon The Tier 2 bucket represents 3.0% at Crédit Agricole Group and 4.4% at Crédit Agricole S.A., leading to fully-loaded Total Capital ratios at 18.2% for the Group and 17.4% for Crédit Agricole S.A. 11.2% Crédit Agricole S.A. 9.5% Crédit Agricole S.A. CET1 ratio Fully-loaded at 30/06/ requirements* Systemic buffer 2019 target at 16.0% 10.5% 1.0% 2.5% Pillar 2 2.5% (SREP add-on) 2.5% Conservation 2.5% buffer 4.5% CET1 4.5% (Pillar 1) Crédit Agricole Group 14.2% Crédit Agricole Group 13.0% 1.8% 11.2% Crédit Agricole S.A. 11.0% 1.5% 9.5% Crédit Agricole S.A. Tier 1 ratio Fully-loaded at 30/06/ requirements* of which AT1 Including Pillar 2 (2.5% SREP add-on) ** 12.0% 1.5% 10.5% Crédit Agricole Group 15.2% 1.0% 14.2% Crédit Agricole Group 19.5% Systemic buffer 1.0% Conservation buffer 2.5% Additional TLAC 8.0% Tier 2 2.0% AT1 1.5% CET1 (Pillar 1) 4.5% TLAC ratio Crédit Agricole Group 4.3% 1.0% 14.2% 2019 Estimate at requirements* 30/06/16 (per FSB final Term Sheet) Excl. eligible senior debt*** 19.5% 22.0% Senior non pref., T2, T1 under 5.0% Basel 2 1.0% 16.0% Targeted structure in 2019 AT1 CET1 Crédit Agricole Group s CET1 ratio is strongly above SREP requirement, and Crédit Agricole S.A. is managed above a 150bps buffer (as calculated under current SREP methodology) AT1 ratio is calibrated to fulfill 1.5% bucket for Credit Agricole S.A., whereas Credit Agricole Group uses 0.5% of its excess of CET1 TLAC minimum for 2019 is already reached without eligible senior debt*** Targeted structure in 2019 includes a growing contribution from CET1 * Assuming that the current overall SREP requirement (Pillar 1, Pillar 2, capital conservation buffer) remains unchanged over the period. As a reminder, the ECB performs an analysis of the SREP requirements on at least an annual basis and may impose additional requirements at any time. This hypothesis should not be construed as any form of guarantee in respect of the expected CET1 ratios and buffers going forward. It corresponds to the position of the EBA and the ECB, and to Crédit Agricole S.A. s interpretation of the relevant texts ** Pillar 2 SREP add-on assumed to be included in requirements starting from 2016, as per our understanding of EBA and ECB s guidelines *** Preferred senior unsecured liabilities that rank alongside those excluded liabilities in the insolvency creditor hierarchy but otherwise respects eligibility criteria 13 Credit Update September 2016

13 RATINGS OVERVIEW Crédit Agricole S.A. s ratings are based on Crédit Agricole Group s credit fundamentals Moody s S&P Fitch Ratings LT / ST: A1 / P-1 Outlook: stable Last rating action on 19/07/2016: LT rating raised to A1 from A2, ST rating affirmed Outlook changed to stable from positive Subordinated debt ratings raised by 1 notch LT / ST: A / A-1 Outlook: stable Last rating action on 02/12/2015: LT/ST ratings affirmed; the removal of 1 notch for extraordinary government support was compensated by 1-notch of ALAC Outlook changed to stable from negative On 11/08/16, S&P raised by 1 notch the ratings of AT1 and Tier 2 Coco issues LT / ST: A / F1 Outlook: positive Last rating action on 07/06/2016: LT/ST ratings affirmed Positive outlook (since 23/06/15) affirmed Rating drivers The stable outlook reflects the absence of tangible rating drivers up or down Rating drivers The stable outlook reflects the absence of tangible rating drivers up or down Rating drivers The positive outlook reflects expectations that the Group will maintain its fairly low risk appetite and continue to improve its capitalisation => possible LT rating upgrade (an outlook typically lasts up to18-24 months) G-SIB LT ratings G-SIB LT ratings G-SIB LT ratings Aa2 Aa3 A1 A2 A3 Baa1 Baa2 AA- A+ A A- BBB+ BBB BBB- AA AA- A+ A A- BBB+ Ratings at 25/08/2016 Ratings at 25/08/2016 Ratings at 25/08/ Credit Update September 2016

14 RATINGS OVERVIEW Crédit Agricole S.A. s debt ratings and 5 year CDS spreads Long-term ratings Ratings Issuer Rating Adjusted Baseline Credit Assessment Moody s S&P Fitch Ratings A1 LT senior unsecured debt A2 Issuer Credit Profile A A3 Stand-Alone Credit Profile A+ A+ LT senior unsecured debt Issuer Default Rating Viability Rating A LT senior unsecured debt Senior non-preferred* a- A- Dated T2 baa1 BBB+ Senior non-preferred* BBB+ Baa2 Senior non-preferred* Dated T2 BBB Dated T2 BBB Baa3 BBB- BBB- Ba1 Debt instrument Additional T1 (unsolicited rating) *Crédit Agricole S.A. s assessment of the rating that is likely to be assigned to senior non-preferred debt instruments Ratings Debt instrument Ratings Debt instrument BB+ Additional T1 BB+ Additional T1 Crédit Agricole S.A. 5-Year CDS spreads 5-year CDS spreads - senior 5-year CDS spreads - subordinated 15 Credit Update September 2016

15 SECTION 2: SIMPLIFIED GROUP STRUCTURE 16 Credit Update September 2016

16 SIMPLIFIED GROUP STRUCTURE Crédit Agricole Mutual Group: customer-focused universal banking model 8.8 mn (3) mutual shareholders 2,476 (3) Local Credit Co-operatives Public (of which 3.8% employees and 0.2% treasury shares) 42.6% (2) Crédit Agricole S.A. Four business lines LCL, Cariparma, CA Bank Polska, Crédit du Maroc.. ~25% (through CCI/CCA) 38 Regional Banks (excl. CR Corsica) (1) 100% Sacam Mutualisation 57.4% (2) via specific holding company (SAS La Boétie) Crédit Agricole S.A. Listed Company Central Body and member of CA network HoldCo of Group subs Asset Gathering : Amundi, CAA, CA Indosuez Private Banking Large customers: CACIB, CACEIS 27 mn (3) retail customers in France 52 mn (3) customers worldwide Specialised financial services: CACF, CAL&F At 3 August, ,476 Local Credit Co-operatives form the foundation of the Group and hold nearly all of the share capital of Crédit Agricole s 39 Regional Banks, which in turn are the majority shareholders of Crédit Agricole S.A. Local Credit Co-operatives: Private law co-operative companies owned by their members, owning 100% of the voting rights and the majority of the share capital of the Regional Banks; no branches Regional Banks: Private law co-operative companies and individually licensed banks, forming France s leading retail banking network; majority owned by Local Credit Co-operatives, Sacam Mutualisation (~25% through CCI/CCA) and, for 13 of them, by retail and institutional investors through non-voting shares with rights on net assets SACAM Mutualisation: An entity to be wholly owned by the Regional Banks for the purpose of pooling part of their earnings. SAS La Boétie: The HoldCo managing, on behalf of the Regional Banks, their 57.4% equity interest in Crédit Agricole S.A. Crédit Agricole S.A.: A listed company and the Central Body of the Crédit Agricole Network, of which it is a member according to the French Monetary and Financial Code; at the same time, the holding company of Group subsidiaries and functionally, the lead institution of the Crédit Agricole Group (1) The Regional Bank of Corsica, which is 99.9%-owned by Crédit Agricole S.A., will also be a shareholder of SACAM Mutualisation (2) At 30 June, 2016 (3) At 31 December, Credit Update September 2016

17 Joint & Several G tee Fin. & Monetary Code Fin. & Monetary Code SIMPLIFIED GROUP STRUCTURE Unchanged internal support mechanisms Crédit Agricole S.A., as the Central Body and as a member of the Crédit Agricole Network Crédit Agricole S.A. obligations under the Financial & Monetary Code is required (cf. Article L511-31) to take all necessary measures to ensure that each and all of the Crédit Agricole Network members and its affiliated members - essentially the Regional Banks and CACIB - (both defined in Article R512-8) maintain satisfactory liquidity and solvency; this requirement, being enshrined in public law, it is considered to be even stronger than a guarantee acts as Central Bank to the Crédit Agricole Regional Banks in terms of refinancing, supervision and reporting to the ACPR reviews and monitors the credit and the financial risks of its affiliated members - essentially the Regional Banks and CACIB Reciprocal binding commitments between the Regional Banks and Crédit Agricole S.A. Crédit Agricole S.A. Regional Banks joint and several guarantee Through a joint and several guarantee issued in 1988, the Regional Banks guarantee all of the obligations of Crédit Agricole S.A. to third parties and they also cross-guarantee each other, should Crédit Agricole S.A. become insolvent and after the liquidation and dissolution of Crédit Agricole S.A. The potential liability of the Regional Banks under this guarantee is equal to the aggregate of their share capital, reserves and retained earnings, i.e. 63.4bn* at end-2015 In accordance with the Decree Law no dated 20/08/15, the ACPR may, at its discretion, impose a resolution on the Group prior to any liquidation or dissolution. The ACPR considers the SPE resolution strategy as the most appropriate in France. Any resolution mechanism could limit the likelihood of the occurrence of the conditions necessary for the application of the guarantee, further to a liquidation or a dissolution Importantly, upon the institution of a resolution procedure, the ACPR must respect the no creditor worse off in a resolution than in a liquidation principle (cf. Art. L I of the French Monetary and Financial Code, and Art. 73 of the BRRD). Because of this principle, Crédit Agricole S.A. believes that the existence of the guarantee granted in 1988 should be taken into account by the ACPR in a resolution, although it is not possible to determine how this will be done. Regional Banks CACIB The alignment of the senior unsecured debt ratings of the Regional Banks and CACIB with those of Crédit Agricole S.A. reflects the support mechanisms within the Group * Aggregate figures from French GAAP, unaudited individual accounts of the 39 Regional Banks 18 Credit Update September 2016

18 SIMPLIFIED GROUP STRUCTURE Crédit Agricole Group Plan to simplify the Group s structure now completed The CCIs/CCAs, which were held until now by Crédit Agricole S.A., have been transferred to SACAM Mutualisation, a wholly owned subsidiary of the Regional Banks, effective as of 3 August 2016 P&L impact: - For Credit Agricole S.A. the transaction will result in a gain of around 1,250 million which will be recognised in Q m Initial sale price (1) 18,025 Price adjustment (2) 517 FINAL SALE PRICE 18,542 DISPOSAL RESULT IN Q3-16 ~1,250 (1) based on the Regional Banks' balance sheets as of 31/12/2015 (2) taking into account the change in the Regional Banks' restated Equity between 31/12/2015 and 30/06/2016 Impact on solvency: - No impact at Group level - Positive impact on Crédit Agricole S.A. s CET1 ratio of around +70 bps 19 Credit Update September 2016

19 SECTION 3: FINANCIAL MANAGEMENT 20 Credit Update September 2016

20 FINANCIAL MANAGEMENT Crédit Agricole Group: CET1 ratio 14.2% Phased-in total ratio (1) : 18.9% at 30/06/ Slight decrease compared to end-march 2016 due to Tier 2 optimisation transactions Solvency ratio (1) (Basel 3) 19.3% 19.0% 18.9% Fully-loaded CET1 ratio (1) : 14.2% at 30/06/2016, up +30bps in the quarter and +100bps YoY - Significant and recurring capital generation: in Q2-16, +39bps of retained earnings including the payment of dividends of Crédit Agricole S.A. in shares - Increase of AFS reserves : +1bp - Moderate increase of RWAs in Q2-16 (+ 9.5bn) in line with business growth 15.3% 15.5% 15.8% 13.7% 13.9% 14.2% 18.1% 18.1% 18.2% 14.5% 14.9% 15.2% Dec. 15 Mar 16 June 16 Dec. 15 Mar 16 June 16 Dec. 15 Mar 16 June 16 Phased-in Tier 1 Phased-in total ratio Fully-loaded CET1 o/w Fully-loaded Tier 1 o/w Fully-loaded total ratio Leverage ratio: 5.6% at 30/06/2016 Leverage ratio (2) Change in fully-loaded CET 1 ratio (1) - March to June bps +1bp -7bps 5.5% 5.6% 3%: minimum indicative level recommended by the Basel Committee 13.9% 14.2% 11.9% 31/03/2016 phased-in 30/06/2016 phased-in (1) Including Q2-16 unaudited results (2) Subject to ECB autorisation. Assumption of exemption of intragroup transactions for Crédit Agricole S.A. and of non exemption of exposure linked to the centralisation of CDC deposits, according to our understanding of information obtained from the ECB March 16 Retained earnings after distribution AFS reserves Other June Credit Update September 2016

21 Impact of adverse scenario (bps) FINANCIAL MANAGEMENT Crédit Agricole Group: stress test results Stress test: Crédit Agricole Group confirms its financial robustness by the 2016 stress test results Crédit Agricole Group s phased-in CET1 capital ratio would be reduced to 10.5% by end-2018, around -300bps compared to phased-in CET1 ratio at end-2015 (13.5%) The fully-loaded CET1 capital ratio of 10.5% at end corresponds to the current level of SREP including the systemic risk buffer 16% 15% 14% 13% 12% 11% 10% 9% 8% EBA stress test results Phased-in ratio 16% 15% Fully-loaded ratio 13.5% 13.7% 14% 13.0% 13% 13.1% 12% 10.5% 11% 10.5% 10.0% 10% 9.9% 9% 8% Crédit Agricole Group French banks average Crédit Agricole Group French banks average CET 1 ratio at 31/12/2015 CET 1 ratio in adverse scenario Peers (GSIB) comparison Impact at end-2018 of the adverse scenario on fully-loaded CET 1 ratios (bps) Crédit Agricole Group % 7.0% 9.0% 11.0% 13.0% 15.0% Fully loaded CET 1 ratio in adverse scenario Sample: Global Systemically Important Banks, i.e. Banco Santander, Barclays, BNP Paribas, BPCE Group, Crédit Agricole Group, Deutsche Bank, HSBC, ING, Nordea, RBS, Société Générale and Unicredit 22 Credit Update September 2016

22 FINANCIAL MANAGEMENT Resilient Organic Earnings Generation Capacity RWAs (bn ) Retained earnings** / RWAs * % 0.9% 0.9% 1.2% Dec. 11 Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 19 f Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 19 f Net income group share (bn ) Retained earnings** / Net income group share 5, > 7,2 95% 89% 79% 84% -3,7 * Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 19 f Not Relevant Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 19 f * Including impact of the sale of Emporiki ** Prudential definition of retained earnings; no impact of goodwill depreciation 23 Credit Update September 2016

23 FINANCIAL MANAGEMENT Maximum Distributable Amount: Pillar 2 constraint MDA above target for Crédit Agricole S.A. at Q2-16 (150bps above Pillar 2 requirement of 9.5%) Under current ECB methodology* Distributable items at Q2-16 EUR 25.9bn ** Crédit Agricole Group Buffer*** to mandatory coupon restrictions Crédit Agricole S.A. Buffer*** to mandatory coupon restrictions Current buffer: 425bps EUR 22bn EUR 21bn EUR 20bn EUR 18bn 10.00% 10.25% 10.50% 9.75% 0.25% 0.50% 0.75% 1.00% 0.625% 1.25% 1.875% 2.50% Current buffer: 5bn 0.625% 1.25% 1.875% Target: 150bps or 4.5bn+ 9.50% 9.50% 9.50% 9.50% 2.50% 4.375% 3.75% 3.125% 2.50% No G-SIB buffer at Crédit Agricole S.A. level 4.375% 3.75% 3.125% 2.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Year-end G-SIB Buffer Capital Conservation Buffer Pillar 2 buffer Minimum CET1 ratio Pillar 2 CET1 requirement Year-end * We do not take into account the planned evolution of the SREP methodology in This new methodology is expected to have a favourable impact, with a lower requirement and the introduction of a non-binding guidance ** Including reserves of 13.9bn and share issue premium of 12bn at 30/06/2016 *** Based on reported CRR/CRD4 phased-in CET1 capital and RWAs at 30/06/2016, assuming that they remain constant, excluding potential TLAC requirements, and assuming that the overall SREP requirement (Pillar 1, Pillar 2, capital conservation buffer) remains constant over the period. As a reminder the ECB performs an analysis of the SREP requirement at least on an annual basis, and may impose additional requirements at any time. These hypotheses should not be construed as any form of guidance in respect of the expected CET1 ratios and buffers going forward. They correspond to the current position of the EBA and the ECB, and to Crédit Agricole S.A. s interpretation of the relevant texts 24 Credit Update September 2016

24 FINANCIAL MANAGEMENT Crédit Agricole Group: TLAC & MREL ratios TLAC ratio at 30/06/ % excluding eligible senior debt, estimated in accordance with FSB* final term sheet requirements, versus minimum requirement of 19.5% including eligible senior debt On track for the 22% Medium Term Plan target by end-2019 excluding eligible senior debt The Group intends to protect its existing senior bondholders and is considering issuing non preferred senior debt as specified in the draft French law MREL ratio at 30/06/ % excluding potentially eligible senior debt > 1 year* Calculation based on the same numerator as the one used to calculate the TLAC ratio End-2016 Group commitment of 8% already met Level reached allowing potential recourse to the Single Resolution Fund (SRF), subject to decision of the resolution authority ~34% G-SIB buffer Conservation buffer 19.5% to 21.5% ** 1.0% 2.5% 22.0% 2.5% Eligible senior debt **** ~ 6,0% ~14% Potentially eligible senior debt **** > 1 year ~14.4% Additional TLAC Tier 2 Additional Tier 1 CET1 8.0% to 10.0% 2.0% 1.5% 4.5% 19.5% Regulatory own funds and eligible subordinated debt 6% 8.0% 8.1% Regulatory own funds and eligible subordinated debt 19.5% TLAC requirement (FSB final term sheet) TLAC estimate at 30/06/16** MREL possibly allowing recourse to SRF*** MREL estimate at 30/06/16** MREL estimate as a % of RWA * Estimate based on Crédit Agricole S.A. s understanding of texts ** Countercyclical buffer set at 0% *** Subject to decision of the resolution authority **** Preferred senior unsecured liabilities that rank alongside those excluded liabilities in the insolvency creditor hierarchy but otherwise respect eligibility criteria 25 Credit Update September 2016

25 FINANCIAL MANAGEMENT Crédit Agricole Group: liquidity Surplus of long-term funding sources: 104bn at 30 June 2016, in line with our management targets in Q21% au T Ratio of stable liabilities to LT assets stable at 112.0% ASSETS LIABILITIES 1,063 1,066 1,066 1,063 Central Bank deposits (o/w cash & mandatory reserves) Interbank assets Reverse repos & other ST Securities portfolio Customer-related trading assets Surplus: bn ST market funds LT market funds Customer assets Customer-related funds Tangible & intangible assets 51 30/03/ /06/16 30/06/ /03/16 Equity & similar items In bn LT market funds include T-LTRO drawings 26 Credit Update September 2016

26 FINANCIAL MANAGEMENT Crédit Agricole Group: liquidity reserves Liquidity reserves at end-december 2015 ( bn) Liquidity reserves at end-june 2016 ( bn) Reverse repos & other ST Assets eligible to Central Banks after ECB haircut (immediate access) Self-securisations eligible to Central Banks Other non HQLA securities* Securities portfolios 132 Valuation gains/losses & haircuts 130 HQLA* (High Quality Liquid Asset) securities portfolio ST debt net of Central Bank deposits Central Bank deposits 36 o/w cash ( 3bn) o/w mandatory reserves ( 6bn) Central Bank deposits (excl. cash and mandatory reserves) 24 Central bank deposits (excl. cash and mandatory reserves) Cash balance sheet assets Liquidity reserves ST debt HQLA securities represent 224% of ST debt not deposited with Central Banks Liquidity Coverage Ratio (LCR) at 30/06/2016 above 110% at both Crédit Agricole Group and Crédit Agricole S.A. * Available liquid market securities after haircut 27 Credit Update September 2016

27 FINANCIAL MANAGEMENT Crédit Agricole Group: diversified funding sources Crédit Agricole Group Highly diversified funding mix by instrument, investor base and targeted geographic area At 30/06/2016: 20.1bn in senior debt* issued by Group issuers (full year 2015: 33.6bn) Crédit Agricole S.A. 79% of the 2016 MLT market funding programme (senior + sub.) completed at 30/06/2016 (as a reminder, 2016 programme of 14bn) Senior debt: 9.5bn eq. (EUR, USD, JPY, CHF) EMTN: 2.6bn eq., 6 and 10 years USMTN: USD1.4bn ( 1.2bn eq.), 5 years Covered Bonds: 4.9bn eq., 5, 7, 10 and 15 years Samurai: JYP92.4bn ( 0.8bn eq.), 5, 7 and 10 years 2016 MLT senior + sub. issues - Crédit Agricole Group Breakdown by main issuers: 24.1bn at 30/06/2016 CACIB 18% Cariparma network 3% LCL network 2% 2016 MLT market senior + sub. issues - Crédit Agricole S.A. Breakdown by main issuers: 11.0bn at 30/06/2016 Senior: 9.5bn (average maturity: 8.1 years; spread vs. mid-swap : 42.5bps) Subordinated issues 13% CACF 15% EFL 1% Amundi 1% Crédit Agricole S.A. network 14% Crédit Agricole S.A. market 46% Covered public issues 45% Subordinated debt: 1.5bn eq (USD, JPY) Additional Tier 1: USD1.25bn ( 1.15bn eq.) Tier 2 Samurai: JPY37.7bn ( 0.3bn eq.) Senior public issues 42% * Excluding T-LTRO drawings, which are however classified as LT market sources 28 Credit Update September 2016

28 FINANCIAL MANAGEMENT 2019 Financial Targets Regulatory requirement At 30/06/16 ratio Target LCR Crédit Agricole S.A Crédit Agricole Group 70% at 01/01/ % from 01/01/2018 >110% ~110% >110% ~110% LCR: the aim of the Group is to secure its compliance with regulatory requirements by maintaining a buffer of a magnitude of 10% The Group s financial structure provides for a surplus of stable resources covering LCR needs (at 100%) of commercial activities. The Group intends to maintain this structure over the MTP NSFR 1 SRP 2 Crédit Agricole Group Crédit Agricole Group 100% from 01/01/2018 >100% >100% 104bn > 100bn NSFR: no definitive text yet The EBA report was published on 18 December The European Commission should make a legislative proposal before December 2016 These proposals remain penalising for ST market activities (repos/ reverse repos and lending/borrowing transactions) as well as derivative activities (20% add-on) Moreover, the EBA advocates an application on both individual and consolidated scopes 1. Calculation based on our understanding of the 18 December 2015 EBA text 2. Stable Resources Position: surplus of long-term funding sources 29 Credit Update September 2016

29 Denmark Greece Ireland Germany Cyprus Spain Italy Sweden United Kingdom Belgium France Finland Norway Portugal Netherlands Austria Slovakia Luxembourg Croatia Latvia Hungary Poland Malta Bulgaria Czech Republic Slovenia Lithuania Romania Estonia FINANCIAL SOLVENCY MANAGEMENT AND LIQUIDITY Crédit Agricole Group: low asset encumbrance ratio Asset encumbrance disclosure EBA guidelines provide three disclosure templates (based on the reporting templates of asset encumbrance) and a box for narrative information to be filled in by institutions on the level of encumbrance in their funding model These templates don t explicitly mention the encumbrance ratio defined as Carrying amount of encumbered assets and collateral / Total assets and collateral Crédit Agricole Group asset encumbrance ratio 14,4% at end Dec-15 Its encumbrance ratio is significantly below France s ratio (at end Dec-15) : 23% Asset encumbrance in Europe EBA published its second annual report based on December 2014 and December 2015 data France s encumbrance ratio has moved slightly below the the average ratio in Europe 60,0% Asset Encumbrance December ,0% 40,0% 30,0% 20,0% 10,0% 0,0% EU Average 30 Credit Update September 2016

30 SECTION 4: RISKS 31 Credit Update September 2016

31 RISKS Change in credit risk outstanding Crédit Agricole S.A. m June 15 Dec. 15 June 16 Gross customer and interbank loans outstanding 421, , ,667 of which: impaired loans 15,176 14,769 15,755 Loans loss reserves (incl. collective reserves) 11,068 10,561 10,695 Impaired loans ratio 3.6% 3.5% 3.6% Coverage ratio (excl. collective reserves)* 55.1% 53.9% 52.3% Coverage ratio (incl. collective reserves)* 72.9% 71.5% 67.9% Note: principal amount excluding lease finance transactions with customers, excluding Crédit Agricole internal transactions and accrued interest * Calculated on the basis of outstandings not netted for available collateral and guarantees Regional Banks (aggregate individual accounts French GAAP) m June 15 Dec. 15 June 16 Gross customer loans outstanding 403, , ,885 of which: impaired loans 10,271 9,938 9,914 Loans loss reserves (incl. collective reserves) 10,306 10,196 10,247 Impaired loans ratio 2.5% 2.5% 2.5% Coverage ratio (excl. collective reserves)* 64.0% 64.4% 64.2% Coverage ratio (incl. collective reserves)* 100.3% 102.6% 103.4% * Calculated on the basis of outstandings not netted for available collateral and guarantees 32 Credit Update September 2016

32 RISKS Crédit Agricole Group: France and retail banking risks predominant By geographic region June 16 Dec. 15 France (Retail) 40.3% 40.1% France (Non-retail) 30.2% 29.6% Western Europe (excl. Italy) 8.0% 8.7% Italy 6.8% 6.8% North America 5.5% 5.5% Asia and Oceania excl. Japan 2.9% 2.9% Africa and Middle-East 2.4% 2.3% Japan 1.6% 1.7% Eastern Europe 1.3% 1.3% Central and South America 1.0% 1.1% Other - - Total 100% 100% By business sector Jun. 16 Dec. 15 Retail banking 49.6% 49.1% Non-merchant service / Public sector / Local authorities 10.5% 10.2% Energy 5.0% 5.2% Other non banking financial activities 4.5% 4.2% Real estate 3.5% 3.5% Banks 3.0% 3.5% Food 2.6% 2.7% Others 2.6% 3.3% Automotive 2.4% 2.3% Heavy industry 2.0% 2.0% Construction 1.7% 1.8% Retail and consumer goods 1.7% 1.6% Aerospace 1.6% 1.6% Shipping 1.6% 1.6% Healthcare / pharmaceutical 1.3% 1.3% Other transport 1.1% 1.1% Other industries 1.0% 1.2% Telecom 1.0% 1.2% Insurance 0.8% 0.8% Tourism / hotels / restaurants 0.8% 0.8% IT / computing 0.6% 0.6% Media / Edition 0.4% 0.4% Utilities 0.4% 0.0% Wood / Paper / Packaging 0.3% 0.0% Total 100% 100% 33 Credit Update September 2016

33 RISKS Crédit Agricole S.A.: market risk exposure Crédit Agricole S.A. s VaR (99% - 1 day) is computed by taking into account the impact of diversification between the Group s various entities VaR (99% - 1 day) at 30 June 2016: 14m for Crédit Agricole S.A. Change in the risk exposure of Crédit Agricole S.A. s capital market activities m VAR (99% - 1 day) 1 st January to 30 June 2016 Minimum Maximum Average 30 June Dec. 15 Fixed income Credit Foreign Exchange Equities Commodities Mutualised VaR for Crédit Agricole S.A Credit Update September 2016

34 SECTION 5: FRENCH HOUSING MARKET 35 Credit Update September 2016

35 FRENCH HOUSING MARKET Favourable structural fundamentals Strong demand-side factors Lower rate of home ownership (64.3% of French households are owner-occupiers) compared with other European countries. A higher birth rate than in most Western European countries Other factors also support demand (divorce, retirement planning, limited supply of rental accommodation) A safe haven effect: in a deteriorated environment and given the volatility of financial markets, French households are showing a preference for what is perceived as low-risk investments, in particular housing Weak supply Source : 2013, Eurostat % Ownership ratio in Europe (as a % of total households) France: Housing starts and permits 000', aggregate12m France has a structural housing deficit of about 600,000 units (a figure smaller than previously estimated as series on housing starts have been recently revised upwards) Developers have been cautious during the housing boom, adjusting their supply to fluctuating demand. The stock of new housing units for sale is limited, and 58% of it is still at the planning stage, which limits the risk of oversupply Housing starts Permits Source: Ministry of Ecology A structurally sound home loan market Prudent lending direct housing demand towards the most creditworthy buyers The housing debt ratio remains low in France compared with the rest of Europe 36 Credit Update September 2016

36 FRENCH HOUSING MARKET Far more resilient than the rest of Europe The French market did not experience a bubble / excessive risk-taking, as seen in the US, the UK, Ireland and Spain between 1998 and Housing price Indices Index base 100=1997 Q1 The recession put an end to the boom. Since then, the housing sector has been undergoing a correction, with a cumulative decline in prices of 50% in Ireland, 35% in Spain, 20 % in Italy and the Netherlands. In the UK, prices dropped by 19% between 2009 and mid In France, prices continued to rise in The real estate cycle is currently either bottoming (Spain, Italy, the Netherlands) or picking up (the UK, Ireland) In France, stabilising factors have led to a gradual correction in , followed by a recovery in In , sales volumes were slightly reduced and prices declined overall by 6% in the existing housing sector. In 2015, housing sales bounced back and prices have stabilised In the existing housing sector, sales volumes up 16% in 2015 (to 800,000 units) and expected to be stable in 2016 Newly built housing sales volumes rebounded by 15% in 2015 (up 40% in buy-to-let) and should be up by 10% in 2016 Existing housing prices were stable in 2015 and could be slightly up, by 2%, in UK Spain France Ireland Sources: Halifax, Ministerio de Fomento,Insee, DS France: Sales of newly-built housing 000s per quarter Source: Ministry of Ecology On market France: Existing housing sales and prices 000s Sales Sales Sources: CGEDD, Notaries, Crédit Agricole S.A % forecast Credit Update September 2016

37 FRENCH HOUSING MARKET Negative and positive economic environment factors Economic factors and high prices negatively affect demand GDP growth remains modest: 1.2% in 2015, 1.4% expected in High unemployment rate: close to 10% in Mid-term household income expectations are mediocre Fiscal tightening measures in : sharp reduction in housing capital gains allowance in 2012 Selling prices remain quite high, even if they are now close to their equilibrium value (due to decreasing prices and falling lending rates) Recent recovery due to two factors: record low lending rates and new housing support plan Long-term fixed-rate mortgage lending rates fell again in 2015, dropping to a record low in July, at 2.16%, before edging back up in Q4 and declining again in 2016 (1.9% in June). That low cost of credit triggered a windfall effect and unlocked or accelerated certain projects. Lending rates will be the main driver in the housing market in OAT and lending rates should remain low. Yet, they could rise modestly, which would lead to a less upbeat market Easing of the Duflot scheme for rental investment (since renamed the Pinel scheme), with 6, 9, and 12-year options, the possibility of renting to parents or children and a limitation on rent caps. The PTZ interest-free loan is strengthened again in 2016 with a higher income ceiling, loans of up to 40% of the purchase price compared with 18-26% previously, deferred repayments, and longer terms for loans ,0 3,5 3,0 2,5 France: Housing loan rates Monthly average, % 2,0 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Sources: BdF, Crédit Agricole France: Housing prices and unemployment rate Yearly price increase Sources: Notaries, Insee Unemployment rate (inv. rhs) Housing loan rate excl. Insurances Credit Update September 2016

38 FRENCH HOUSING MARKET Lending practices enhance borrower solvency A cautious origination process In France, the granting of a housing loan is based on the borrower s ability to repay and not on the value and quality of the housing asset. The ratio of repayments to income must not significantly exceed one third of the borrower s income Low risk characteristics of the loans Loans are almost always amortising, with constant repayments Most housing loans have a fixed rate to maturity (96.7% for new loans in 2015). Almost all floating rates are capped. This has a stabilising effect on borrower solvency The initial maturity of new loans gradually lengthened between 2000 and 2008, up to 20 years. Since then, it has shortened slightly and remains reasonable, standing at an average of 18 years in 2015 The LTV for new loans stood at 85.7% in 2015 (new lending, excluding refinancing) French housing loan market largely based on guarantees provided by Crédit Logement and housing loan insurance companies Mortgage equity withdrawal mechanisms are highly regulated and are not used As a result the risk profile is very low The doubtful loans ratio for housing loans is rising slightly but remains low, at 1.55% in % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source : ACPR years New housing loans : respective contribution of fixed and floating rates fixed rate floating rate Initial average maturity of new housing loans Source : ACPR, Crédit Agricole S.A. % 2 1,8 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 Non performing loans/total housing loans Source : ACPR 39 Credit Update September 2016

39 SECTION 6: CRÉDIT AGRICOLE HOME LOAN SFH 40 Credit Update September 2016

40 CRÉDIT AGRICOLE HOME LOAN SFH Crédit Agricole: leader in home finance Crédit Agricole Group is the unchallenged leader in French home finance 308.5bn in housing loans outstanding at end Q Market share of 29.3% at end Q2-2016* Recognised expertise built on Extensive geographical coverage via the density of the branch network Significant local knowledge Insider view based on a network of real estate agencies Home financing at the heart of client relationship management Around 70% of home loan borrowers have been customers of their Regional Bank for more than 10 years Home finance is the starting point in retail banking for product cross-selling (death and disability insurance, property and casualty insurance, home loan guarantee, current account facilities, etc.) Source: Crédit Agricole S.A. * Source: Economic Department Crédit Agricole S.A. 41 Credit Update September 2016

41 CRÉDIT AGRICOLE HOME LOAN SFH Crédit Agricole home loans: very low risk profile Origination process relies on the borrower s repayment capability Borrower risk is analysed through revenues and credit history checks (3 pay slips, most recent tax statement, bank statements, Banque de France records) Analysis includes project features (proof of own equity, construction and work bills, etc.) Borrower repayment capability is measured with the income sufficiency test, which ensures that disposable income after all expenses exceeds a minimum amount, depending on the size and means of each household In addition, credit risks are analysed before and after the granting of a guarantee As a result, the risk profile is very low The rate of doubtful loans remains low, despite a slight increase since 2007 The provisioning policy is traditionally very cautious, well above the French market (42.6 % at end-2015) Final losses remain very low: 0.021% in 2015 Source: Crédit Agricole S.A. & Banque de France 42 Credit Update September 2016 Source: Crédit Agricole S.A. & Banque de France

42 CRÉDIT AGRICOLE HOME LOAN SFH A diversified guarantee policy, adapted to clients risks and needs Mortgage French State guarantee for eligible borrowers in addition to a mortgage PAS loans (social accession loans) Guaranteed loans: growing proportion, in line with the French market Mainly used for well known customers and low risk loans in order to avoid mortgage registration costs and to simplify administrative procedures both at the signing of the loan and at loan maturity via Crédit Logement (external institution jointly owned by major French banks) or CAMCA (internal mutual insurance company) Outstanding 2014 New loans 2014 Outstanding 2015 New loans 2015 Mortgage 33,3% 33,1% 32,8% 27,6% Mortgage & State g tee 4,2% 4,3% 4,2% 4,0% Crédit Logement 21,4% 26,0% 22,9% 30,7% CAMCA 27,0% 23,4% 26,8% 25,8% Other guarantees + others Source: Crédit Agricole 14,1% 13,2% 13,4% 11,9% 43 Credit Update September 2016

43 CRÉDIT AGRICOLE HOME LOAN SFH Issuer legal framework Crédit Agricole Home Loan SFH (CA HL SFH), the Issuer A French credit institution, 100% owned by Crédit Agricole S.A. licensed by the French financial regulator (ACPR, Autorité de Contrôle Prudentiel et de Résolution) Formerly Crédit Agricole Covered Bonds (CACB), it was converted on 12 April 2011 into a SFH (Société de Financement à l Habitat), a specialised bank created under the law dedicated to French home loan Covered Bonds Investor benefits provided by the French SFH legal framework Strengthened Issuer Protection given by the cover pool Enhanced liquidity Limited activity of the Issuer : exposure to eligible cover pool and issuance of CB (Obligations de financement de l Habitat OH) > 40bn Bankruptcy remoteness from bankruptcy of the parent company Eligibility criteria : pure residential loans, either 1 st lien mortgage or guarantee by a credit institution, a financing company (Société de financement) or an insurance company, property located in France or another country in the European economic area or a highly rated country Over-collateralisation : 105% minimum, loan eligible amount capped at 80% of LTV Legal privilege : absolute priority claim on all payments arising from the assets of the SFH Liquidity coverage for interest and principal amounts due over the next 180 days New source of liquidity as the Issuer may subscribe to its own Covered Bonds for pledge as collateral with the Central Bank, up to 10% of overall Covered Bonds outstanding CA HL SFH recognition ECB eligible : CA HL SFH Jumbo Covered Bond issues eligible in category II UCITS 52(4)-Directive compliant CRR 129 compliant with reduced risk weighting of 10% (Standard Approach) LCR eligible as Level 1 asset (M 500 and above CB issues) Controls Public supervision by the French regulator (ACPR) Ongoing control by the specific controller to protect bondholders 44 Credit Update September 2016

44 CRÉDIT AGRICOLE HOME LOAN SFH Structural features Home loans cover pool Home loans granted as security in favour of the SFH Self originated home loans by the Crédit Agricole Regional Banks or LCL Property located in France No arrears Overcollateralisation Allowing for the AAA rating of the CB Monitored by the Asset Cover Test, ensuring credit enhancement the coverage of carrying costs Double recourse of the Issuer Recourse of the Issuer both on the cover pool and on Crédit Agricole S.A. Controls The structure relies on the European Collateral Directive provisions transposed into the French Monetary and Financial Code (Article L211-38, July 2005) Assets of the cover pool are identified by the collateral providers as granted for the benefit of the Issuer; and will be transferred as a whole in case of enforcement of collateral security Audited by Mazars and Ernst & Young Ongoing control by the specific controller, Fides Audit, approved by the French regulator 45 Credit Update September 2016

45 CRÉDIT AGRICOLE HOME LOAN SFH Structure overview Investors Legal privilege over all assets of the Issuer and the cover pool No mismatch between Covered Bonds and CASA Borrower Facilities Covered Bonds Proceeds CA Home Loan SFH Borrower Facilities The Issuer Collateral Securities Collateral Providers: Regional Bank 1 Regional Bank Regional Bank i Proceeds from the issuance of Covered Bonds will be used by the Issuer to grant Crédit Agricole S.A. Borrower Facilities, collateralised by the eligible cover pool Crédit Agricole S.A. will grant Collateral Provider Facilities to each of the 39 Regional Banks and LCL (the Collateral Providers) Borrower 2 nd Lender Administrator Collateral Providers Agent Collateral Provider Facilities LCL Each Collateral Provider will benefit from facilities with an attractive interest rate 46 Credit Update September 2016

46 CRÉDIT AGRICOLE HOME LOAN SFH Liquidity and market risk monitoring Liquidity and interest rate risks Average life of the cover pool (including overcollateralisation) has become 1,5y shorter than cover bonds ( CB) following the March 2016 LM exercise, which has also reduced the average coupon of the CB (-0,40%) : - Buyback of 3.061bn on 7CB benchmarks (average life: 3,8y and average coupon: 3.3%) - Replacement of CB by 3.25bn new issues (average life: 10.7y and average coupon: 0.8%) - Switch from hard bullet to soft bullet format for all CB hard bullet benchmarks* following bondholders consent, enhancing the efficiency of the programme. Cover pool as well as CB are mostly fixed rate Monthly control based on cash flow model to check timely payment of CB with cash from cover pool including overcollateralisation, with stressed interest rate and conditional Prepayment Rate (CPR) scenarios. Currency breakdown Currency risk A limited currency risk fully hedged through cross currency swaps with internal counterparty * maturing from 2017 Source: Crédit Agricole S.A. at end-june 2016 * fully hedged into EUR via XCCY swaps 47 Credit Update September 2016

47 CRÉDIT AGRICOLE HOME LOAN SFH Cover pool at end-june 2016 Total outstanding current balance 31,179,399,066 Number of loans 682,034 Average loan balance 45,715 Seasoning Remaining term 96 months 151 months WA LTV 56.41% Indexed WA LTV 55.68% Interest rates Guarantee type distribution Occupancy Origination Key eligibility criteria 87.02% fixed 12.98% variable, capped Mortgage : 67.3% (of which 14.0% with additional guarantee of the French State) Crédit Logement guarantee : 24.2% CAMCA guarantee : 8.5% 82.63% owner occupied homes 100% home loans self originated in France by 39 Regional Banks and LCL No arrears Current LTV max 100% Excellent geographical diversification Very low LTV, allowing high recoveries, even in highly stressed scenarios 48 Credit Update September 2016

48 CRÉDIT AGRICOLE HOME LOAN SFH Programme features Programme size 35bn > 40bn Rating Aaa by Moody s, AAA by Standard & Poor s, AAA by Fitch CB Governing laws French law, German Law, New York law, Australian Law Outstanding CB 42 series - 48 tranches CB Outstanding amount 21.88bn At end-june Credit Update September 2016

49 CRÉDIT AGRICOLE HOME LOAN SFH Investor information Crédit Agricole S.A. Home Loan SFH is registered with the Covered Bond Label Investor information available on the Group website 50 Credit Update September 2016

50 SECTION 7: CRÉDIT AGRICOLE PUBLIC SECTOR SCF 51 Credit Update September 2016

51 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Key features CA Public Sector SCF s objectives Expanding Credit Agricole s export finance activities guaranteed by Export Credit Agencies (ECAs), acting in the name of Governments: a high credit quality/low margin business requiring low refinancing costs Diversifying Credit Agricole s funding sources at an optimal cost A 10bn Covered Bond programme rated Aaa (Moody s) and AAA (Standard & Poor s) since launch A regulated credit institution, licensed within the SCF French legal framework CA Public Sector SCF only refinances eligible exposures to public entities through Covered Bond issues (Obligations Foncières) Value of cover pool must equal at least 105% of Covered Bonds issued, by Law Investors in Covered Bonds benefit from legal privilege over the assets Bankruptcy remoteness of the Issuer from the parent ensured by Law By law, no early redemption or acceleration of the Covered Bonds in case of insolvency Close monitoring and supervision (ACPR, specific controller, independent auditors) Compliance with provision 52 (4) of the UCITS EU Directive Reduced risk weighting of 10% in Standard Approach according to EU Capital Requirements Regulation (CRR) 52 Credit Update September 2016

52 CRÉDIT AGRICOLE PUBLIC SECTOR SCF CACIB s Export Credit Agency (ECA) business CACIB, 100% subsidiary of Crédit Agricole S.A., is an established leader in asset based finance Leader in aircraft finance among European banks Top player in shipping in the European and Asian markets Major player in project finance and especially infrastructure, power and oil & gas Experience of more than 25 years ECA loan origination in the EU has continued to grow after the Lehman crisis Loans are guaranteed by ECAs, acting in the name of their governments Steady demand from exporters for LT financing given large infrastructure needs in emerging markets (construction, telecoms, energy, transportation, etc.) Very low risk thanks to the recourse to ECAs and often mortgages as well Very low capital consumption for banks Attractive business with solid ROE CACIB ranks among the top players in the EU for ECA guaranteed loans A portfolio of 16.3bn Outstanding ECA loans ( bn) 53 Credit Update September 2016

53 CRÉDIT AGRICOLE PUBLIC SECTOR SCF CACIB s Export Credit Agency (ECA) business CACIB continues to dedicate important resources to the ECA business Origination capacity in more than 25 countries Product teams in Paris, in charge of structuring and of relations with ECAs Strong transaction teams with high expertise, managing deals from signature to final repayment Sector mix ECA mix Strong credit processes Annual strategy review by business line, including risk policy Credit approval granted by specialised credit committees and by the top credit committee of the Bank Annual portfolio review Borrowers country mix Diversified portfolio Sovereign guarantees provided by a diversified group of guarantors Good sector and geographic diversification At end-june Credit Update September 2016

54 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Issuer legal framework Crédit Agricole Public Sector SCF, the Issuer A French credit institution, 100% owned by Crédit Agricole S.A., licensed by the French financial regulator (ACPR, Autorité de Contrôle Prudentiel et de Résolution) Investor benefits provided by the French SCF legal framework Strengthened Issuer Limited activity of the Issuer: exposure to eligible cover pool and issuance of Covered Bonds (Obligations Foncières) > 40bn Bankruptcy remoteness from bankruptcy of the parent Protection given by the cover pool Eligibility criteria: public exposure, as defined by Law (public exposure to European Economic Area or country with a minimum rating of A-) Over-collateralisation : 105% minimum Legal privilege: absolute priority claim on all payments arising from the assets of CA PS SCF Enhanced liquidity Liquidity coverage for interest and principal amounts due over the next 180 days Additional source of liquidity as the Issuer may subscribe to its own Covered Bonds for pledge as collateral with the Central Bank, up to 10% of overall Covered Bonds outstanding CA PS SCF Recognition ECB eligible : CA PS SCF Jumbo Covered Bond issues eligible in category II UCITS 52(4)-Directive compliant CRR 129 compliant with reduced risk weighting of 10% (Standard Approach) LCR eligible as Level 1 asset (M 500 and above CB issues) Control Public supervision by the French regulator (ACPR) Ongoing control by the Specific Controller to protect bondholders 55 Credit Update September 2016

55 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Structural features Programme 10bn programme of Obligations Foncières, with 2bn of issues outstanding rated Aaa by Moody s and AAA by Standard & Poor s since launch Cover pool Loans fully guaranteed by ECAs acting on behalf of governments originated by CACIB Loans to or fully guaranteed by multinational or national or regional authorities or public institutions originated by CACIB Loan transfers achieved on a loan-by-loan basis Due diligence performed by our French counsel Review by local counsel in borrower countries of pre and post transfer formalities, to achieve a binding and enforceable transfer to the borrower and any third party including the ECAs Completion of formalities: obtaining all necessary consents from third parties (ECAs, borrower, other lenders, Agent, etc.) in due form Loans to, or guaranteed by, French national, regional authorities or public institutions only originated by the Crédit Agricole Group Regional Banks to be potentially included in the future Over-collateralisation Over-collateralisation above the 105% legal requirement to reach the maximum achievable rating Over-collateralisation ratio monitored by the monthly Asset Cover Test Double recourse of the Issuer Recourse of the CA Public Sector SCF both on the cover pool and on Crédit Agricole S.A. The structure relies on the European Collateral Directive provisions transposed into French Law (Article L July 2005, French Monetary and Financial Code ) Controls Assets of the cover pool are identified by CACIB as granted for the benefit of the Issuer Assets will be effectively transferred as a whole in case of enforcement of collateral security Audit by two auditors : PriceWaterhouseCoopers and Ernst & Young Ongoing control by a Specific Controller approved by the French regulator (Fides Audit) 56 Credit Update September 2016

56 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Structure overview Investors Legal privilege over all assets of the Issuer and the cover pool Proceeds from the issuance of Covered Bonds will be used by the Issuer to grant Crédit Agricole S.A. Issuer Facilities, No mismatch between Covered Bonds and Issuer Facilities Covered Bonds proceeds CA Public Sector SCF Issuer Facilities The Issuer Collateral Securities Crédit Agricole S.A. will grant CASA Facilities to CACIB (the Collateral Provider) with an attractive interest rate Eligible cover pool will be transferred by way of security, in accordance with the French Monetary and Financial code (Article L ): by CACIB to CASA as collateral of CASA Facilities, Borrower 2 nd Lender Collateral Provider Collateral Securities CASA Facilities CACIB Borrower Collateral Provider and by CASA to CA PS SCF, as collateral of Issuer Facilities 57 Credit Update September 2016

57 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-june bn (eq) drawn ECA loans* Total commitment of 4.9bn (eq) 192 loans Strongly rated guarantors (% of drawn amounts) 49% France, rated Aa2/ AA/ AA (COFACE) 20% Germany, rated Aaa/ AAA/ AAA (mainly EULER- HERMES and LAND SCHLESWIG HOLSTEIN for 1%) 20% UK, rated Aa1/ AA/ AA (UKEF) Enhancement of the pool diversification by inclusion of new high quality guarantors of which mainly Switzerland (SERV) for 3%, Korea (KSURE) for 2%, Finland (Finnvera) for 2%, Multilateral Investment Guarantee Agency for 1% and Austria (OeKB) for 1% Sector mix (% of drawn amounts) 54% aircraft (all aircraft loans are secured by mortgages) 10% power 36% others 2,5 2,0 1,5 1,0 0,5 0,0 2,1 1,6 0,70,6 0,6 0,6 Infrastructure 4% Rail Finance 5% Cover pool ECA mix Commitment ( bn) 0,2 0,1 0,1 0,1 0,1 0,1 0,0 0,0 0,10,0 0,10,0 0,10,0 Mining 2% Power 10% Oil & Gas 2% Outstanding ( bn) Industry 1% Other 0% Aircraft 54% at end-june 2016 Sector mix * 3.9bn transferred at end-june 2016 to CA Public Sector SCF of which: 3,21bn with post transfer formalities fully completed and, 0,67bn with post transfer formalities in progress. Telecom 10% Defence 12% drawn amount at end-june Credit Update September 2016

58 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-june 2016 Borrower country mix Well diversified among 28 countries The contribution of Ireland results from the location of aircraft finance SPVs operated mainly by non-irish companies in this country Currency mix (% of drawn amount) 53% USD 42% EUR 6% AUD Borrower interest rate 44% fixed rate 56% variable Cover pool maturity Average residual life : 4,3 years Average residual term : 7,6 years Average initial maturity : 12,3 years Seasoning of the pool : 4,7 years FINLAND 3% UNITED STATES 3% AUSTRIA 3% LUXEMBOURG 3% 2,5 2,0 1,5 1,0 0,5 0,0 INDONESIA 4% 1,9 1,7 Cover pool Borrower country mix KUWAIT 2% TURKEY 4% RUSSIA 5% UNITED ARAB EMIRATES 5% 2,0 OTHER 12% 1,3 AUSTRALIA 6% CHINA 11% BRAZIL 9% NETHERLANDS 7% SOUTH AFRICA 6% Cover pool Currency mix 0,2 0,2 SOUTH KOREA 8% IRELAND 8% drawn amount at end-june ,0 0,0 USD EUR AUD JPY Commitment (bn ) Outstanding (bn ) at end-june Credit Update September 2016

59 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Programme features Programme size 10bn > 40bn Rating Aaa by Moody s, AAA by Standard & Poor s CB Governing laws French Law, German Law Outstanding CB 2 series CB Outstanding amount 2bn At end-june 2016 Crédit Agricole S.A. Public Sector SCF is registered with the Covered Bond Label Investor information available on the Group website 60 Credit Update September 2016

60 SECTION 8: APPENDICES 61 Credit Update September 2016

61 1. KEY DATA 62 Credit Update September 2016

62 KEY DATA Crédit Agricole Group Leading French co-operative bank 8.8mn mutual shareholders and 2,476 Local Credit Co-operatives 39 Regional Banks owning 57.4% of Crédit Agricole S.A. via SAS Rue La Boétie at 30/06/16 Leading player in Retail Banking and in Savings Management in France Leading lender to the French economy, with loans outstanding in respect of Regional Banks and LCL of 516.9bn at 30/06/16 Leading market shares in non-financial customer deposits and loans in France: 24.4% and 21.1% respectively at end Q1-16 (1) Leading banking Group in residential housing loans, with outstandings of 308.5bn at end Q2-16; market share of 29.3% at end Q2-16 (1) No. 2 insurance Group in France by written premiums (2) ; market share of 15.0% of life insurance outstandings at end Q4-15 (2) No. 1 in bancassurance (in Europe) (2) No. 1 in asset management (in Europe) (3) Resilient customer-focused universal banking model Retail banking networks accounted for 62% of revenues and 55% of Crédit Agricole Group net income Group share at 30/06/16 (excl. Corporate centre) Increasing share of Savings management and Insurance related revenues Crédit Agricole Group: Sound financial fundamentals at Q2-16 Net income Group share: 1,942mn in Q2-16 (+29,5%, Q2-16/Q2-15) and 2,760mn in H1-16 (+1.2% vs H1-15) Equity, Group share: 96.6bn at 30/06/16 vs. 89.2bn at 30/06/15 B3 CET1 fully-loaded ratio: 14.2% at 30/06/16 vs.13.2% at 30/06/15 Leverage ratio: 5.6% at 30/06/16 (Subject to ECB authorisation. Assumption of exemption of intragroup transactions for Crédit Agricole S.A. and of non exemption of exposure linked to the centralisation of CDC deposits, according to our understanding of information obtained from the ECB) Conglomerate ratio : 193% at end-2015 Estimated TLAC ratio excluding eligible senior debt: 19.5% excluding eligible senior debt at 30/06/16; estimated MREL ratio excluding potentially eligible senior debt: > 1 year of 8.1% at 30/06/16 Liquidity reserves: 227bn at 30/06/16 vs. 247bn at 30/06/15; liquidity reserves to gross ST debt ratio of 277% at 30/06/16 vs. 213% at 31/03/15; LCR >110% and NSFR > 100% at 30/06/16 Broad base of very high quality assets available for securitisation Ratings of A/Stable/A-1 (S&P), A1/Stable/P-1 (Moody s), A/Positive/F1 (Fitch Ratings) (1) Source: Economic Department - Crédit Agricole S.A. (2) L argus de l Assurance, 18/12/2015, based on data at end-2014 (3) Source IPE Top 400 published in June 2015, assets under management at December Credit Update September 2016

63 KEY DATA Crédit Agricole S.A. and Crédit Agricole Group consolidated balance sheets at 30/06/16 bn Assets CASA CA Group Liabilities CASA CA Group Cash and Central banks Central banks Financial assets at fair value through profit or loss Financial liabilities at fair value through profit or loss Available for sale financial assets Due to banks Due from banks Customer accounts Loans and advances to customers Debt securities in issue Financial assets held to maturity Accruals and sundry liabilities Accrued income and sundry assets Non-current assets held for sale Investments in equity affiliates Liabilities associated with noncurrent assets held for sale Insurance Company technical reserves Contingency reserves and subordinated debt Fixed assets Shareholder's equity Goodwill Non-controlling interests Total assets 1, ,770.7 Total liabilities 1, , Credit Update September 2016

64 2. IMPLEMENTATION OF THE MTP 65 Credit Update September 2016

65 IMPLEMENTATION OF THE MEDIUM TERM PLAN Strategic Ambition 2020: operational roll-out Medium Term Plan implementation phase launched in March work streams launched in accordance with schedule With a particular emphasis on reinforcing revenue synergies and cost savings High granularity allowing for a very focused approach Project managers designated for each work stream Approval of road maps, timetables and budgets, in keeping with the MTP announcements ( 4.4bn of cumulated investments over the MTP period, 900m of cost savings in 2019) 66 Credit Update September 2016

66 IMPLEMENTATION OF THE MEDIUM TERM PLAN Strategic Ambition 2020: Actions up and running Four strategic priorities: Implementation Simplify the Group s capital structure AMF authorisation obtained Progress in line with schedule Roll-out an ambitious Customer Project enhanced by digital revolution Strengthen the Group s growth momentum in its core business lines Transform the Group to sustainably improve our operational efficiency New promotional signature "A whole bank just for you" Launch of Cariparma new Multichannel CRM project with several interactive campaigns Intra-Group additional synergies project progressing - Internalisation of creditor insurance contracts - Group French retail networks: Consumer Credit origination +15.6% Launch of project to streamline Group support functions CACIB move to Evergreen campus as of Credit Update September 2016