CREDIT UPDATE DECEMBER l Credit Update December Crédit Agricole S.A. - Credit Update

Transcription

1 CREDIT UPDATE DECEMBER l Credit Update December 2017 Crédit Agricole S.A. - Credit Update

2 DISCLAIMER This document has been prepared by Crédit Agricole S.A. on the basis of confidential information and is available on its website ( It may not be reproduced by any person, or be forwarded or distributed to any person unless so authorised by Crédit Agricole S.A.. Failure to comply with this directive may result in a violation of the Securities Act of 1933, as amended (the Securities Act), or the applicable laws of other jurisdictions. None of Crédit Agricole S.A. or its affiliates, advisers, dealers or representatives takes any responsibility for the use of these materials by any person. This document does not constitute regulated financial information on Crédit Agricole S.A. and Crédit Agricole Group. Regulatory financial information comprises the periodic financial results presentations, the financial reports, the registration document and the updates thereto, which are available on Crédit Agricole S.A. s website ( Some of, but not all, the data presented in this document is derived from the aforementioned regulatory financial information. Save for the data that has been directly extracted from publications which have been reviewed by the Statutory auditors of Crédit Agricole S.A., the information contained in this document has not been independently verified. No representation or warranty expressed or implied is made as to the entire information within this document being subjected to a full independent review, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of Crédit Agricole S.A. or its affiliates, advisers, dealers or representatives, or any other person, shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document is for preliminary informational purposes only and is not an offer to sell or the solicitation of an offer to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Without limiting the foregoing, this document does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. Any securities referred to herein have not been, and will not be, registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Crédit Agricole S.A. does not intend to register any portion of any offering in the United States or to conduct a public offering of securities in the United States. Forward-Looking and Prospective Statements This documents may contain forward-looking information and prospective statements about Crédit Agricole S.A., that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Such statements do not represent forecasts within the meaning of European Regulation 809/2004 of 29 April 2004 (chapter 1, article 2, 10). Forward-looking statements may be identified by the words believe, expect, anticipate, target or similar expressions. Although Crédit Agricole S.A. s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Crédit Agricole S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the annual reports and other filings with the French Autorité des marchés financiers made or to be made by Crédit Agricole S.A. Crédit Agricole S.A. undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. 2 l Credit Update December 2017

3 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 3 l Credit Update December 2017

4 INTRODUCTION Key figures CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q3-17 9M-17 Q3-17 9M-17 Net income Group share - stated 1,907m 5,614m 1,066m 3,262m +36.8% Q3/Q % 9M/9M -42.8% Q3/Q3 +0.4% 9M/9M Reminder: Eureka capital gain in Q3-16 ( 1.27bn) Net inc. Group share - underlying (1) 1,759m 5,430m 966m 3,048m -4.5% Q3/Q % 9M/9M -5.2% Q3/Q % 9M/9M Earnings per share - underlying (1), (2) % Q3/Q % 9M/9M Fully-loaded CET1 ratio 14.9% 12.0% (1) See slide 80 (Crédit Agricole Group) and slide 82 (Crédit Agricole S.A.) for further details on specific items (2) After deduction of AT1 coupons, charged to net equity 4 l Credit Update December 2017

5 INTRODUCTION Key messages of the quarter Strong results in the first nine months of 2017 Crédit Agricole Group - strong growth in both reported and underlying earnings (+35%/+15% 9M/9M) Crédit Agricole S.A. - the Eureka capital gain recorded in 2016 ( 1.27bn) matched this year by enhanced business profitability: underlying NIGS (1) +37% 9M/9M High level of earnings and profitability in Q3: underlying net income Group share (1) close to 1bn for CASA Continued strong business momentum Very low cost of credit risk, decision to add 75m to non-specific legal provisions Costs still well under control: costs +2.0% versus Q3-16 at constant scope (2), including development investments Q3/Q3 decrease due an exceptionally high profit level in the Capital markets business line in Q3-16 Further refocusing: acquisitions in core businesses and asset disposals Disposal of a 16.2% stake in BSF for 1.3bn Completion of the Pioneer Investments acquisition for 3.545bn, first contribution of its acquisition to the Group s earnings Acquisition of a 95% stake in three Italian banks for 130m (closing expected in Q4) Acquisition of a minimum of 67.67% stake in Banca Leonardo in Italy for a CET1 impact <-5bp (closing expected in H1 2018) Further improvement in the financial position Crédit Agricole Group: fully-loaded CET1 14.9%, +30bp compared to 30/06/17 proforma of Pioneer integration Crédit Agricole S.A.: fully-loaded CET1 12.0%, +30bp compared to 30/06/17 proforma of Pioneer integration, increase in the dividend provision to 0.52 per share Effect of transactions announced but not completed (3 Italian banks and Banca Leonardo): <-15bp for CASA, <-12bp for Crédit Agricole Group Ratings: positive outlook from S&P, upgrade of ratings (3) from DBRS (long-term) and Scope Ratings (short term) (1) For detail of specific items see slide 82, of which the impact in NIGS is positive in Q3-17 by + 100m (+ 845m in Q3-16) and for 9M-17 by + 214m (+ 1,018m for 9M-16) for Crédit Agricole S.A. (2) By combining the contribution to underlying NIGS of Amundi and Pioneer and taking into account the amortisation of distribution contracts in 2017 and 2016 (3) Unsolicited ratings 5 l Credit Update December 2017

6 INTRODUCTION Sustained activity in all businesses in Q3-17 Regional Banks Home loans +8.0% Consumer finance loans +8.2% Demand deposits +17.3% Growth in outstandings September/September ASSET GATHERING Insurance: No.1 in France Savings/Retirement: unit-linked share of gross inflows at 30.1%, +8.1pp Q3/Q3; UL share of AuM at 21% (+1.9pp Sept/Sept) P&C: over 158K new contracts (net) in Q3, stock of contracts 12.8m +5.8% Sept/Sept (1) No.4 in home insurance: up one notch in the 2017 ranking (1) Asset management (Amundi): Assets under management: 1,400bn, +32.8% Sept/Sept Sustained net inflows: + 31bn in Q3, driven by Retail, + 60bn in 9M Wealth management: Assets under management: 158bn, +3.4% Sept/Sept SPECIALISED FINANCIAL SERVICES Consumer finance: managed loans +7.1% Sept/Sept Leasing: loans +3.6% (2) Sept/Sept Factoring: factored turnover +7.4% Q3/Q3 RETAIL BANKS LCL Home loans +9.6% Loans to corporates +11.3% Demand deposits +16.0% 6 l Credit Update December 2017 Italy Home loans +9.9% Loans to large corporates +2.8% Off-b/s customer assets +9.4% LARGE CUSTOMERS Capital markets and investment banking - market shares World No.4* in bonds issued by financial institutions in euro in 9M-17 No.4** in M&A advisory in France in 9M-17 with 30 deals in 9M-17 Financing activities No.2 in project finance in EMEA: market share 5.4%***, +2.7pp 9M/9M No.4 in syndicated credit in EMEA: market share 5.8%*, +1.7pp 9M/9M Distribute to originate: 38% average redistribution of primary deals in past 12 months, +5pp compared to 12 months ending 30/09/16 and +11pp vs Green financing World No.1 in Green bonds issues, with 45 deals in 9M-17**** Asset servicing (CACEIS) Assets under custody: +7.3% Sept/Sept; assets under administration: +12.3% Sept/Sept (1) Source Argus de l assurance n October 2017 (2) Restated for the contribution of Calit * Bookrunner (source: Thomson Financial at 30/09/17) ** Market share (source: Thomson Financial at 30/09/17) *** Mandated lead manager (source: Thomson Financial at 30/09/17) **** Bookrunner all currencies combined (source: CACIB at 30/09/17)

7 INTRODUCTION Integration of Pioneer Investments on 3 July 2017 Amundi-Pioneer : AuM of 1,400bn, 9 th asset manager worldwide, No.1 in Europe (1) Leadership strengthened in Europe (2) thanks to 4 major markets A customer mix rebalanced in favour of Retail A full range of expertise reinforced in equities and multi-asset Strong first results in Q3 after integration France No.1 Germany 1 st foreign player Italy Top 3 Austria Top 3 Institutional 64% 5% 3% Retail 36% 12% 4% Retail : from 29% for Amundi alone (30/06/17) to 36% pour Amundi + Pioneer (30/09/17) 28% Real, alternative & structured assets 67bn Bonds 644bn 31% 46% 5% 16% 16% 17% Equities 222bn Multi-asset 247bn Treasury 219bn Equities + multi-asset: from 27% for Amundi alone (30/06/17) to 33% pour Amundi + Pioneer (30/09/17) Net inflows > 30bn Driven by Retail (42% of total) and MLT assets (47% of total) Net income at 100% > 200m Up +12% YoY in T3-17 at unchanged scope (3) Revenues +4.6%, costs +1.4% YoY in T3-17 at unchanged scope (3) Cost/income ratio 55.8% (-1.8 pp Q3/Q3) (1) Sources: Amundi, Pioneer, IPE, Top 400, June 2017 (2) Sources: Amundi, Pioneer, end-september 2017 data (3) Combining underlying net profit contribution of both Amundi and Pioneer and distribution agreement amortisation in 2016 and l Credit Update December 2017

8 INTRODUCTION Acquisition of three regional banks in Italy enabling a 20% growth of the franchise Market shares in Italy post transaction Market share in Emilia-Romagna > 10% +1pp market share at national level (from 2.8% to 3.7%) A transaction based on 3 strategic pillars (closing expected in Q4-17) Increased size of the Group in Italy to reach >2m customers Increased market share at national level, in particular in two Group s core territories in Italy (Emilia-Romagna and Toscany) 0% Market shares: 0-2% 5-10% Market share in Toscany > 6% +430k customers +~220 branches (post rationalisation) Value creation in the medium-long term thanks to synergies which will be achieved with other Group entities, high level of confidence in capacity to achieve these synergies rapidly Financial criteria in line with the Medium Term Plan targets Improvement of the impaired loans ratio proforma: disposal prior to the acquisition of 3bn of non-performing loans (mainly sofferenze) in accordance with the conditions set by Crédit Agricole S.A. ROI significantly above 10% over 3 years Fully self-funded transaction Impact on CET 1 ratio below 10bp for Crédit Agricole S.A. and Crédit Agricole Group 2-5% 10-20% 8 l Credit Update December 2017

9 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 9 l Credit Update December 2017

10 CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS Specific items of the quarter: + 149m on NIGS Disposal of a stake of 16.2% in BSF: NIGS impact of + 117m (1) Sale for a total consideration of 1.3bn effective 20 September 2017, deconsolidation of the remaining stake at this date Revaluation of the total residual stake (14.9%) at the sale price, added to the capital gain in the P&L Pioneer integration costs: NIGS impact of - 11m - 27m this quarter before tax, - 59m before tax in 9M-17 (- 26m in NIGS), out of a total announced of 190m Reclassification of Q1 and Q2 costs under specific items: - 6m in Q1 (- 3m in NIGS), - 26m in Q2 (- 12m in NIGS) Acquisition costs of three Italian banks: NIGS impact of - 3m - 5m before tax Recurring specific items: NIGS impact of + 46m Issuer spread (- 23m), DVA ( 0m), hedging of loan portfolios (2) (- 9m), change in HPSP provision (+ 52m for the Regional Banks, + 5m for LCL and + 21m in Corporate centre) See slide 80 for further details on specific items, which had a positive impact of + 149m in Q3-17 NIGS (- 447m in Q3-16) and + 184m in 9M-17 (- 556m in 9M-16) for Crédit Agricole Group (1) Excluding transaction costs and contribution from BSF until its deconsolidation date : 46m (2) Hedging of CACIB's loan portfolios to adapt it to sector, geographical, etc. exposure 10 l Credit Update December 2017

11 CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS Sustained 9M/9M increase in revenues 7,099 7, ,807 7, ( 679) (43) +194 (217) (64) Q3-16 stated 22,524 9M-16 stated Specific items(1) Q3-16 underlying +0.4% RBs Retail Asset gathering SFS Large Corporate Customers centre Q3-17 underlying (1) See slide 80 for details of specific items (2) Impact on revenues of Eureka operation to simplify the Group structure 9M/9M: unwinding of Switch guarantee and the loan granted by Crédit Agricole S.A. to the Regional banks: 369m (negative for Regional banks and positive for Corporate centre) AG: Asset gathering, including Insurance; RB: Retail banking, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre Specific items(1) ,080 ( 967) 23, ( 17) Specific items(1) 9M-16 underlying (415) RBs Retail Asset gathering +2.5% Change Q3/Q3 and 9M/9M in underlying revenues (1), by division SFS Large Corporate 9M-17 Customers centre underlying Specific items(1) Q3-17 stated 24,062 9M-17 stated +0.4% increase in underlying revenues (1) Q3/Q3 +2.5% Increase in underlying revenues (1) 9M/9M 11 l Credit Update December 2017 Q3/Q3: Pioneer offsets base effect on markets RB/Regional Banks: good level of fee and commission income (+2.1% Q3/Q3), but negative impact of renegotiations on interest margins and lower related fees RB/Other: decrease of loan renegotiation fees at LCL, impact of previous renegotiations on interest margin AG: first-time contribution of Pioneer, decline in insurance revenues due to prudent financial policy SFS: confirmation of upturn of consolidated loans LC: Q3-16 exceptionally high in market activities CC: lesser impact of Eureka transaction on growth, decrease in funding costs 9M/9M: positive trends in all business lines except Regional Banks Strong contribution to growth by CC (Eureka impacts) and AG (Pioneer and organic growth) RB/Regional Banks: impacted by Eureka operation (2) (effective on 3 August 2016), as well as the low interest rate environment RB/Other: good resilience of LCL (+1.9%) and IRB Italy (+2.7%) to the pressure on interest margin AG: strong underlying 9M/9M growth SFS: good growth 9M/9M (+4.4%)

12 CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS Costs well under control Change Q3/Q3 and 9M/9M in underlying costs (1), by division 4,710 4, Q3-16 stated Specific items(1) SRF Q3-16 underlying excl. SRF % RBs Retail Asset gathering SFS ( 9) Large Corporate Customers centre 4,947 4, Q3-17 underlying excl. SRF Specific items(1) Q3-17 stated 15,039 14,716 ( 51) ,108 15, M-16 stated Specific items(1) SRF 9M-16 underlying excl. SRF RBs Retail Asset gathering +2.7% SFS Large Customers Corporate centre 9M-17 underlying excl. SRF SRF Specific items(1) 9M-17 stated +2.3% increase in underlying costs (1) excl. SRF and at constant scope (4) Q3/Q3 +1.7% increase in underlying costs (1) excl. SRF and at constant scope (4) 9M/9M 9M/9M: positive jaws effect (3) in most business lines Cost/income ratio (2) : 62.7% Cost/income ratio under 50% for SFS (49.8% excl. SRF) and Insurance (33.9%) Strong jaw effects for LC (+3pp), LCL (+5pp) and SFS (+3pp) RB/Regional Banks: increase in costs mainly due to MTP IT developments (regulatory requirements and digital) and branch refurbishment programme Continued investment in business and digital development in various business lines (1) See slide 80 for details of specific items (2) Underlying, excluding SRF, but including IFRIC 21 in other expenses (3) Difference in growth rate between underlying revenues and underlying operating costs excluding SRF (4) Combined contributions of underlying income of both Amundi and Pioneer restated for amortisation of distribution agreements in 2017 and l Credit Update December 2017 AG: Asset gathering, including Insurance; RB: Retail banking, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre

13 CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS Strong 9M/9M increase in underlying NIGS 1,394 Q3-16 stated 4,154 9M-16 stated ( 447) Specific items(1) -556 Specific items(1) 1, ( 4) 1,759 ( 33) ( 217) Q3-16 underlying 4,710 9M-16 underlying RBs Retail Asset gathering (81) % RBs Retail Asset gathering SFS +15.3% SFS Change Q3/Q3 and 9M/9M in underlying NIGS (1), by division Large Customers 67 Corporate centre 407 Q3-17 underlying 5,430 Large Corporate 9M-17 Customers centre underlying +149 Specific items(1) 184 Specific items(1) 1,907 Q3-17 stated 5,614 9M-17 stated -4.5% decrease in underlying NIGS (1) Q3/Q % increase in underlying NIGS (1) 9M/9M (1) See slide 80 for further details on specific items, which had a positive impact of + 149m in Q3-17 NIGS (- 447m in Q3-16) and + 184m in 9M-17 (- 556m in 9M-16) for Crédit Agricole Group (2) Impact on NIGS of Eureka operation to simplify the Group structure 9M/9M: unwinding of Switch guarantee and the loan granted by Crédit Agricole S.A. to the Regional banks: 242m (negative for Regional banks and positive for Corporate centre) 13 l Credit Update December 2017 Unfavourable Q3/Q3 comparison and strong 9M/9M growth Q3/Q3: unfavourable base effect due to the exceptionally strong performance in the capital markets business line (atypical quarterly profile in 2016) Balanced contribution from almost all business lines to 9M/9M growth Retail banking/regional Banks: decrease of -3.3% 9M/9M, due mainly to Eureka operation (2) and pressure on gross operating income, which was partly offset by lower cost of risk (write backs of collective provisions) Retail banking/others: significant increase 9M/9M both in France and Italy (excluding Calit) thanks to efficiency gains and low level of cost of risk Asset gathering: first-time contribution from Pioneer, good 9M/9M growth SFS: continued growth thanks to development Large customers: good 9M/9M growth Corporate centre: further improvement of the contribution Q3/Q3 and 9M/9M thanks to the impact of the Eureka transaction and lower funding costs AG: Asset gathering, including Insurance; RB: Retail banking, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre

14 CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS A stable, diversified and profitable business model Predominance of Retail banking and related business lines, generating 74% of underlying revenues (1) and 72% of underlying NIGS (1) at 9M-17 Asset Gathering including Insurance accounts for 15% of underlying revenues (1) and 22% of underlying NIGS (1) at 9M-17 Leading franchises in Retail banking (RBs and LCL), Asset management (Amundi), Insurance (CAA) and in Consumer finance (CACF) Underlying revenues (1) 9M-17 by business line (excluding Corporate Centre) (%) 9M-17: 24.4bn, +0.3% year-on-year Underlying NIGS (1) 9M-17 by business line (excluding Corporate Centre) (%) 9M-17: 6.0bn, +5.4% year-on-year CIB: 15% Asset servicing: 2% CIB: 17% Asset servicing: 1% LC 17% LC 18% Consumer Finance: 7% Leasing & Factoring: 2% Insurance: 7% Asset management: 6% Wealth management: 2% SFS 8% AG 15% RB 59% FRB (RBs): 41% FRB (LCL): 11% IRB: 8% Consumer Finance: 8% Leasing & Factoring: 2% Insurance: 15% Asset management: 6% Wealth management: 1% SFS 10% AG 22% RB 50% FRB (RBs): 38% FRB (LCL): 7% IRB: 4% (1) See slide 80 for further details on specific items AG: Asset gathering, including Insurance; RB: Retail banking, SFS: Specialised financial services; LC: Large customers 14 l Credit Update December 2017

15 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 15 l Credit Update December 2017

16 FINANCIAL MANAGEMENT Crédit Agricole Group: fully-loaded CET1 ratio at 14.9% at 30 September 2017 Change in fully-loaded CET 1 ratio (bp) Change in RWAs ( bn) 15.0% +27bp +1bp +6bp 14.9% -38bp (0.5%) Market risk Operational risk Credit risk June 2017 Retained earnings Acquisitions & sales AFS reserves Risk-weighted assets & others September 2017 Dec 16 Mar 17 June 17 Sept 17 Fully-loaded CET1 ratio: 14.9% Good contribution from retained earnings: +27bp in Q3 Strategic transactions: integration of Pioneer (-43bp) and partial disposal of BSF (+5bp) Stable level of the AFS (1) : +1bp in Q3 CET1 ratio well above the distribution restriction threshold of 9.5% (2) applicable as from 1 January 2019 Effect of transactions announced but not completed: <-12bp (3 Italian banks and Banca Leonardo) Phased-in Tier 1 ratio: 16.2% Phased-in total ratio: 18.8% TLAC ratio: 20.6%, excluding eligible senior preferred debt Phased-in leverage ratio (3) : 5.5% (1) Amount of unrealised AFS gains in CET1 capital after deduction of impact of insurance reserves on risk-weighted assets (2) According to pro forma P2R for 2019 as notified by the ECB (3) As defined in the Delegated Act. Assumption of non-exemption of exposures related to the centralisation of CDC deposits, according to our understanding of information obtained from the ECB 16 l Credit Update December 2017

17 FINANCIAL MANAGEMENT Capital planning focused on TLAC targets CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. 16.3% 16.5% 16.2% 19.3% 19.2% 18.8% 15.2% 15.2% 14.5% 19.8% 19.7% 18.9% 14.5% 15.0% 14.9% 15.6% 16.0% 15.9% 18.4% 18.6% 18.4% 11.9% 12.4% 12.0% 13.8% 14.2% 13.8% 18.2% 18.5% 18.0% Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 Phased-in Tier 1 Phased-in total ratio Phased-in Tier 1 Phased-in total ratio Fully-loaded CET1 o/w Fully-loaded Tier 1 o/w Fully-loaded total ratio Fully-loaded CET1 o/w Fully-loaded Tier 1 o/w Fully-loaded total ratio 17 l Credit Update December 2017

18 FINANCIAL MANAGEMENT Best in class solvency and TLAC targets 12.0% CET1 ratio Fully-loaded at 30/09/ target at 16.0% (1) (2) 2019 requirements 9.5% 8.5% Systemic buffer 1.0% 2.5% Conservation buffer 2.5% 1.5% P2R add-on 1.5% 4.5% CET1 (Pillar 1) 4.5% 14.9% 13.8% 1.8% 12.0% 10.0% 1.5% 8.5% Tier 1 ratio Fully-loaded at 30/09/ requirements (1) (2) of w hich AT1 11.0% 1.5% 9.5% 15.9% 1.0% 14.9% Systemic buffer Conservation buffer Additional TLAC Tier 2 AT1 CET1 (Pillar 1) 19.5% 1.0% 2.5% 8.0% 2.0% 1.5% 4.5% TLAC ratio Crédit Agricole Group Excl. 2.5% of eligible senior pref. debt 20.6% 22.0% 4.7% 1.0% ~5% ~1% 14.9% 16.0% Senior non pref., T2, T1 under Basel 2 AT1 CET Crédit Agricole S.A. Crédit Agricole Group Crédit Agricole Group s CET1 ratio is well above SREP requirement and Crédit Agricole S.A. s CET1 ratio is managed above 11% Crédit Agricole S.A. Crédit Agricole Group AT1 ratio is calibrated to fulfill 1.5% bucket for Crédit Agricole S.A., whereas Crédit Agricole Group uses 0.5% of its excess of CET Estimate at Targeted structure requirements (1) 30/09/17 in minimum TLAC requirement already met excluding eligible senior debt Targeted structure in 2019 includes a growing contribution from CET1 Current and 2019 requirements (1)(2) already fulfilled Around 4bn- 5bn of senior non-preferred / Tier 2 debt to be issued annually in 2018 and 2019 (1) Assuming that the current overall SREP requirement (Pillar 1, Pillar 2 and 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 According to the FSB TLAC final Term Sheet, the minimum TLAC ratio requirement will increase to 21.5% in 2022 (2) Pillar 2 Requirement (P2R) proforma 2019 notified by the ECB 18 l Credit Update December 2017

19 FINANCIAL MANAGEMENT MREL ratios: prospective requirements met MREL ratio at 30/09/17 (% of prudential balance sheet) ~15% MREL ratio at 30/09/17 (% of risk-weighted assets) ~37.5% 8.0% ~6.8% 8.1% Potentially eligible senior pref. debt >1 year Senior non preferred debt, T2, T1 under Basel 2 Additional T1 CET1 Market Confidence Charge Recapitalisation Amount Loss Absorbing Amount 24.75% 2.25% 9.5% 13.0% 17.0% 20.6% ~17.1% ~4.7% ~1.0% 14.9% Potentially eligible senior pref. debt >1 year Senior non preferred debt, T2, T1 under Basel 2 Additional T1 CET1 MREL possibly allowing recourse to SRF (1) Estimate at (1) SRB's MREL ratio o/w instruments default calculation other than eligible (2) senior debt (3) Estimate at (2) MREL ratio as % of prudential B/S at 30/09/17: 8.1% (1) Excluding potentially eligible senior preferred debt >1 year Level reached allowing potential recourse to the Single Resolution Fund (SRF), subject to decision of the Resolution Authority MREL ratio as % of RWA at 30/09/17: ~37.5% Credit Agricole Group s estimated MREL ratio above default calculation of the Single Resolution Board (SRB) (2) SRB s requirement for instruments other than eligible senior debt converging with that of TLAC for G-SIBs (1) Estimate based on Crédit Agricole S.A. s understanding of texts; recourse to SRF subject to decision of the Resolution Authority (2) According to the SRB s 2017 MREL policy: MREL ratio default calculation = Loss Absorbing Amount (Pillar 1 + Pillar 2 Requirement add-on + Combined buffer) + Recapitalisation Amount (Pillar 1 + Pillar 2 Requirement add-on) + Market Confidence Charge (3.5% Combined buffer requirement - 125bp) (3) For Credit Agricole Group, the required level is defined as: TLAC before Combined buffer requirement and excluding eligible senior debt (16.0% - 2.5%) + Combined buffer requirement (2.5% Capital conservation buffer + 1.0% Systemic buffer; Countercyclical buffer set at 0%) 19 l Credit Update December 2017

20 FINANCIAL MANAGEMENT Maximum Distributable Amount Crédit Agricole Group Buffer (3) to mandatory coupon restrictions Crédit Agricole S.A. Buffer (3) to mandatory coupon restrictions Buffer as at 30/09/17 36bn 7.75% 7.75% 0.5% 0.5% 1.25% 1.25% Pillar 2 CET1 Requirement ("P2R") 8.625% 0.75% 1.875% 32bn+ 9.50% 1.0% 2.50% G-SIB buffer Conservation buffer Buffer as at 30/09/17 14bn 7.25% 7.25% 1.25% 1.25% Pillar 2 CET1 Requirement ("P2R") 7.875% 1.875% 7.5bn+ 8.50% 2.50% 1.5% 1.5% 1.5% 1.5% P2R add-on 1.5% 1.5% 1.5% 1.5% No G-SIB buffer at Crédit Minimum CET1 Agricole ratio (Pillar 1) S.A. 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% level 30/09/ /12/ /12/ /12/ /09/ /12/ /12/ /12/2019 Buffers above distribution restriction thresholds at 30/09/17 Under 2017 ECB SREP methodology (1) 38.1bn (2) distributable items at 30 September 2017 (1) We take into account the evolution of the SREP methodology in 2017, as it was notified by the ECB, for MDA calculation additional requirements at any time. These hypotheses should not be construed as any form of guidance in respect of the (2) Including reserves of 25.9bn and share issue premium of 12.2bn at 30/09/17. expected CET1 ratios and buffers going forward. They correspond to the position of the EBA and the ECB, and to Crédit (3) Based on reported CRR/CRD4 phased-in CET1 capital and RWAs at 30/09/17, for current buffer, and based on the MTP Agricole S.A. s interpretation of the relevant texts. Pillar 2 guidance (P2G) not taken into account as P2G is not expected to targets for In our calculation, the overall SREP requirement (Pillar 1, Pillar 2 Requirement, Capital conservation buffer, affect distribution thresholds, based on current ECB interpretation. TLAC constraint (applicable only at Crédit Agricole Group G-SIB buffer) does not take into account the Countercyclical buffer (not material) and it is supposed to remain constant over level starting in 2019) is not taken into account in buffer calculation the period. As a reminder the ECB performs an analysis of the SREP requirement at least on an annual basis, and may impose 20 l Credit Update December 2017

21 FINANCIAL MANAGEMENT Alternative MREL approach and potential impact on MDA Under current application of BRRD (1) Single Resolution Board s MREL prospective requirement Proposed revision of texts (3) («BRRD 2 / CRD5») European Commission s MREL potential requirement 24.75% Market Confidence Charge Recapitalisation Amount (9.5%) Loss Absorbing Amount (13.0%) CBR - 125bp (2.25%) P2R add-on (1.5%) Pillar 1 (8.0%) Combined buffer (3.5%) P2R add-on (1.5%) Pillar 1 (8.0%) 17.0% Combined buffer (3.5%) 16% Pillar 1-2.5% eligible senior pref. debt exemption (13.5%) Including eligible senior pref. debt > 1 year Proposed MREL Requirement Recapitalisation Amount Loss Absorbing Amount MREL Guidance Combined buffer (3.5%) P2R add-on (1.5%) Pillar 1 (8.0%) P2R add-on (1.5%) Pillar 1 (8.0%) 22.5% Possible MDA restrictions Combined buffer (3.5%) 16% Pillar 1-2.5% eligible senior pref. debt exemption (13.5%) 19.5% 17.0% Proposed TLAC requirement for G-SIBs SRB's MREL ratio default calculation (2) o/w instruments other than eligible senior debt EC's proposed MREL under BRRD2 (3) EC's proposed TLAC under CRR2 (3) A breach of MREL requirement does not automatically trigger a MDA restriction MREL requirement expected to be confirmed by the Single Resolution Board (SRB) in Q In the future framework, possible automatic MDA restriction after a 6-month grace period European Commission (EC) s approach is part of the CRR2/CRD5/BRRD2 legislative package published on 23 November 2016 and currently under consideration by the Council and the European Parliament Treatment of the 2.5% eligible senior preferred debt exemption to be clarified (1) SRB s default calculation is based on the EC s delegated regulation 2016/1450/EU on the methodology for setting MREL, supplementing directive 2014/59/EU (BRRD) (2) According to the SRB s 2017 MREL policy as presented during the 6th Industry Dialogue Meeting on 21 November 2017 (3) In the CRD5 proposal published by the EC in November 2016, the Combined buffer requirement sits on top of the TLAC and MREL requirements (in line with the TLAC Term Sheet); the EC s proposal provides a 6-month grace period in case the capital buffers are breached due to the inability of the institution to replace TLAC/MREL liabilities that do no longer meet the eligibility or maturity criteria 21 l Credit Update December 2017

22 FINANCIAL MANAGEMENT Key liquidity indicators LCR Regulatory requirement 80% at 01/01/ % from 01/01/2018 Crédit Agricole S.A. Crédit Agricole Group Ratio at 30/09/17 Avg over 12 months: 137% Avg over 12 months: 132% MTP Target ~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 through the Medium-Term Plan NSFR: transposition in the EU legislative framework NSFR (1) SRP (2) 100% from 01/01/2018 Crédit Agricole Group Crédit Agricole Group >100% >100% 117bn > 100bn The NSFR is part of the CRR2/CRD5 legislative proposal published on 23 November 2016 by the European Commission (EC) and is now being considered by the European Parliament and the Council These proposals are less stringent than the Basel standard on some points but remain penalising for ST market activities as well as derivative activities (addon) Moreover, the EC proposes an application on both individual and consolidated scopes (1) Calculation based on our understanding of the most recent texts; (2) Stable Resources Position: surplus of long-term funding sources 22 l Credit Update December 2017

23 FINANCIAL MANAGEMENT Liquidity and funding Liquidity reserves at 30/09/17 ( bn) 254 Reverse repos & other ST Assets eligible to Central Banks after ECB haircut (immediate access) Self-securitisations eligible to Central Banks Other non-hqla securities (1) 254bn liquidity reserves at 30 September 2017 Securities portfolio Cash and Central Bank deposits 66 o/w cash 3 o/w mandatory reserves Cash balance sheet assets 119 Central Bank deposits Central Bank deposits (excl. cash & mandatory reserves) (excl. cash & mandatory reserves) Liquidity reserves HQLA (High Quality Liquid Assets) securities(1) portfolio Short term debt ST debt net of Central Bank deposits Short term debt (net of Central Bank deposits) covered more than 4 times by HQLA securities Average LCR ratios over 12 months: Crédit Agricole Group 132%, Crédit Agricole S.A. 137%, in line with the MTP target >110% (1) Available liquid market securities, at market value and after haircuts 23 l Credit Update December 2017

24 FINANCIAL MANAGEMENT Strong cash balance sheet Banking cash balance sheet at 30/09/17 ( bn) Cash & central bank deposits (incl. mandatory reserves) Interbank assets Reverse repos (net) & other ST Securities portfolio Customer-related trading assets ASSETS LIABILITIES 1,115 1,121 1,121 1,115 Surplus: bn ST market funds > 100bn MTP target for surplus of stable funds Met at 30/09/17 Tangible & intangible assets /06/ /09/ /09/ /06/2017 Equity & similar items The surplus of stable funds finances the HQLA securities portfolio generated by the LCR requirement of customer and customer-related activities Ratio of stable funding (1) / long term applications of funds unchanged at 113% (1) LT market funds include T-LTRO drawings 24 l Credit Update December 2017

25 FINANCIAL MANAGEMENT Breakdown of MLT market funds outstanding MLT market funds outstanding at 30/09/17 ( bn) 30/06/17 30/09/17 78 Senior secured bn 196bn 88 Senior preferred 89 6 Senior non-preferred 6 22 Tier 2 (1) 21 3 Tier 1 (1) 3 5 AT The breakdown of medium- to long term funds remained broadly stable over the quarter Senior non-preferred debt remained stable at 6bn eq. (1) Notional amount 25 l Credit Update December 2017

26 FINANCIAL MANAGEMENT Crédit Agricole S.A. MLT market funding programme completed at 104% at end-october Crédit Agricole Group MLT senior market issues Breakdown by issuer: 28.4bn at 30/09/17 Crédit Agricole S.A MLT senior market issues Breakdown by segment: 15.2bn at 30/09/17 CACF 22% EFL 1% Senior nonpreferred 32% Senior preferred and senior secured 10.3bn Average maturity: 10 years Spread vs 3m Euribor: 38 bp Crédit Agricole S.A. 53% CACIB 18% CA Italia 6% Crédit Agricole Group At end-september, 28.4bn equivalent issued in the market by Group issuers Highly diversified market funding mix by type of instrument, investor base and targeted geographic area Besides, 2.6bn also collected by the Group s retail networks (Regional Banks, LCL, CA Italia) Senior preferred 21% Crédit Agricole S.A. Senior secured 47% At end-october, 104% of 2017 MLT market funding programme of 16bn completed (senior secured, senior preferred and senior nonpreferred debt), 16.6bn equivalent, of which: Senior preferred debt and senior secured debt: 10.4bn eq. at end- October including (a) EMTN and Samurai: 3.4bn eq. in EUR and JPY; (b) Covered bonds: 6.1bn eq. in EUR and CHF; (c) True sale securitisation: 1bn Senior non-preferred debt: 6.2bn eq. including USD3.8bn; 1bn; JPY135bn; AUD500m; CHF275m 26 l Credit Update December 2017

27 FINANCIAL MANAGEMENT Crédit Agricole S.A. s ratings reflect Crédit Agricole Group s improving credit fundamentals Moody s S&P Global Ratings 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: Positive Last rating action on 25/10/2017: Outlook changed to positive from stable LT/ST ratings affirmed LT / ST: A+ / F1 Outlook: Stable Last rating action on 23/05/2017: LT rating raised to A+ from A, ST rating affirmed Outlook changed to stable from positive Subordinated debt ratings raised by 1 notch Rating drivers: The stable outlook reflects the absence of tangible rating drivers up or down Rating drivers: The positive outlook reflects the possibility that S&P may raise the long-term rating in the next two years in case of further strengthening of the Group's capitalisation, combined with an overall continued low risk profile and superior coverage of impaired assets Rating drivers: The stable outlook reflects the absence of tangible rating drivers up or down Breakdown of 30 G-SIB LT ratings* at 31/10/17 (by number of banks) Breakdown of 30 G-SIB LT issuer ratings at 31/10/17 (by number of banks) Breakdown of 30 G-SIB LT issuer ratings at 31/10/17 (by number of banks) Aa2 Aa3 A1 A2 A3 Baa1 Baa2 AA AA- A+ A A- BBB+ BBB AA AA- A+ A A- BBB+ BBB *Issuer ratings or senior unsecured debt ratings 27 l Credit Update December 2017

28 FINANCIAL MANAGEMENT Crédit Agricole S.A. s long-term ratings and 5-year CDS spreads Contrasted senior non-preferred debt ratings reflect rating agencies diverging methodologies Aa3 AA- AA- LT Issuer Rating A1 LT senior unsecured debt A+ Adjusted Baseline Credit Assessment Moody s S&P Global Ratings Fitch Ratings Ratings Debt instrument Ratings Debt instrument A2 LT Issuer Credit Rating A LT senior unsecured debt LT Issuer Default Rating Viability Rating A3 Stand-Alone Credit Profile a- A- baa1 BBB+ Senior non-preferred BBB+ Baa2 Senior non-preferred Dated T2 BBB Dated T2 BBB A+ A LT senior unsecured debt Senior non-preferred Baa3 BBB- BBB- Additional T1 Ba1 Additional T1 (unsolicited rating) Crédit Agricole S.A. 5-year CDS spreads 5-year CDS spreads senior (bp) 120 Ratings BB+ Additional T1 BB year CDS spreads subordinated (bp) Debt instrument Dated T Crédit Agricole SA BNP Paribas Société Générale ITRAXX FINANCIAL -- SENIOR Source: Bloomberg Crédit Agricole SA BNP Paribas Société Générale ITRAXX FINANCIAL -- SUB 28 l Credit Update December 2017

29 FINANCIAL MANAGEMENT Crédit Agricole Group: low asset encumbrance ratio Asset Encumbrance Ratios at 31 December % 50% 40% 30% 20% 10% 0% 22% 26% 13.7% EU Average Crédit Agricole Group Asset encumbrance in Europe EBA published its latest annual report based on data received for 2016 France s encumbrance ratio remains below the average ratio in Europe Crédit Agricole Group s encumbrance ratio is significantly below France s ratio Disclosure Source: EBA 13.7% asset encumbrance ratio at 31 December 2016 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 do not explicitly mention the encumbrance ratio defined as Carrying amount of encumbered assets and collateral / Total assets and collateral 29 l Credit Update December 2017

30 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 30 l Credit Update December 2017

31 RISKS Stabilisation of cost of credit risk at a low level (1/2) Target 2019: 50bp Target 2019: 35bp Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Crédit Agricole S.A. (1) : 31bp - Low level, further fall vs. Q3-16 and vs. Q Below MTP assumption of 50bp Cost of credit risk on outstandings (in bps over a rolling four-quarter period) Crédit Agricole Group (1) : 18bp - Low level, further fall vs. Q3-16 and vs. Q Below MTP assumption of 35bp - Sharp decrease for Regional Banks Q3/Q3: -14bp to 5bp in Q Cost of risk significantly lower than MTP assumptions (1) Excluding impact of triggering Switch guarantees (for Crédit Agricole S.A. only) and additional OFAC provision in Q3-15, Switch clawback and provision for OFAC remediation costs in Q3-15, provision for OFAC remediation costs and additional legal provision in Q4-15 and provisions for legal risk in Q2-16, Q3-16, Q1-17 and Q Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q CACF: 114m in Q3, -18bp Q3/Q3 Continued decrease, low point reached Retail banking in Italy: 80m in Q3, -12bp Q3/Q3 New decrease due to the improvement of credit quality, increase Q3/Q2 following disposal of leasing NPL Financing activities (2) : - 21m in Q3, -13bp Q3/Q3 Net write-backs of general provisions in Q3 LCL: 45m in Q3, -1bp Q3/Q3 Stable, still at a low level RBs: 51m in Q3, -14bp Q3/Q3 Significant decline due to due to reversals of collective provisions Other business lines (3) : 48m (vs. 53m in Q3-16) Mainly International retail banking excl. Italy ( 33m) and Leasing & factoring ( 13m) (2) Excluding additional provision for legal risk in Q2-16 for 25m, Q3-16 for 50m, Q1-17 for 40m and Q3-17 for 37.5m (3) Asset gathering, International retail banking excluding Italy, Leasing and factoring, Capital markets, Asset servicing, Corporate centre 31 l Credit Update December 2017

32 RISKS Stabilisation of cost of credit risk at a low level (2/2) Key impaired loans and coverage ratios Impaired loans ratio Coverage ratio (incl. collective reserves) (1) Impaired loans ratio Coverage ratio (incl. collective reserves) (1) 100.4% 102.6% 102.3% 103.4% 103.4% 101.7% 100.9% 99.0% 98.7% 3.7% 3.6% 3.6% 3.6% 3.5% 3.5% 3.5% 3.1% 3.0% 3.0% 3.0% 3.0% 3.0% 2.9% 2.5% 2.5% 2.5% 2.5% 2.5% 2.4% 2.4% 3.4% 2.8% 2.3% 3.3% 2.7% 2.2% 84.5% 83.5% 72.6% 71.5% 83.5% 83.6% 83.3% 83.7% 81.3% 81.1% 81.0% 68.5% 67.9% 67.7% 67.7% 67.8% 70.1% 69.4% Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Crédit Agricole S.A Crédit Agricole Group Regional Banks (1) Calculated on the basis of outstandings not netted for available collateral and guarantees 32 l Credit Update December 2017

33 RISKS Credit risk scorecard Crédit Agricole Group m Sep-16 Dec-16 Sep-17 Gross customer loans outstanding 864, , ,583 of which: impaired loans 26,008 25,783 24,466 Loans loss reserves (incl. collective reserves) 21,057 20,760 19,757 Impaired loans ratio 3.0% 3.0% 2.7% Coverage ratio (excl. collective reserves) (1) 56.3% 56.3% 58.0% Coverage ratio (incl. collective reserves) (1) 81.0% 80.5% 80.8% Principal amounts, excluding finance lease with customers o/w Crédit Agricole S.A. m Sep-16 Dec-16 Sep-17 Gross customer and interbank loans outstanding 435, , ,447 of which: impaired loans 15,865 15,591 14,296 Loans loss reserves (incl. collective reserves) 10,733 10,564 9,919 Impaired loans ratio 3.6% 3.5% 3.3% Coverage ratio (excl. collective reserves) (1) 51.9% 52.1% 54.5% Coverage ratio (incl. collective reserves) (1) 67.7% 67.7% 69.4% o/w Regional Banks (aggregate individual accounts French GAAP) m Sep-16 Dec-16 Sep-17 Gross customer loans outstanding 412, , ,751 of which: impaired loans 9,925 9,960 9,933 Loans loss reserves (incl. collective reserves) 10,265 10,129 9,805 Impaired loans ratio 2.5% 2.4% 2.2% Coverage ratio (excl. collective reserves) (1) 63.8% 63.4% 63.4% Coverage ratio (incl. collective reserves) (1) 103.4% 101.7% 98.7% Principal amounts, excluding finance lease with customers, excluding intragroup transactions within Crédit Agricole and accrued interest (1) Calculated on the basis of outstandings, not netted for available collateral and guarantees 33 l Credit Update December 2017

34 RISKS Crédit Agricole Group: French and retail credit risk exposures predominant By geographic region Jun-17 Dec-16 France (retail banking) 42% 41% France (excl. retail banking) 28% 29% Western Europe (excl. Italy) 9% 9% Italy 7% 7% North America 5% 6% Asia-Pacific (excl. Japan) 3% 3% Africa and Middle-East 2% 2% Japan 2% 1% Eastern Europe 1% 1% Central and South America 1% 1% Total 100% 100% By business sector Jun-17 Dec-16 Retail banking 49% 49% Non-market service/public sector/local authorities 11% 10% Energy 5% 5% Real estate 4% 3% Other non-banking financial activities 4% 5% Banks 3% 3% Retail/Consumer goods industries 3% 2% Agriculture and Food processing 3% 3% Others 2% 3% Automotive 2% 3% Heavy industry 2% 2% Building and publics w orks 2% 2% Aerospace 2% 2% Healthcare/Pharmaceuticals 1% 1% Shipping 1% 1% Other transport 1% 1% Other industries 1% 1% Telecom 1% 1% Insurance 1% 1% Tourism/Hotels/Restaurants 1% 1% IT 1% 1% Total 100% 100% 34 l Credit Update December 2017

35 RISKS Crédit Agricole S.A.: market risk exposure Crédit Agricole S.A. s VaR (99% - 1 day) is computed taking into account the impact of diversification between the Group s various entities VaR (99% - 1 day) at 30 Septembre 2017: 8m 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 September 2017 Minimum Maximum Average 30/09/ /12/2016 Fixed income Credit Foreign Exchange Equities Commodities Mutualised VaR forcrédit Agricole S.A l Credit Update December 2017

36 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 36 l Credit Update December 2017

37 FRENCH HOUSING MARKET Favourable structural fundamentals Home ownership ratio in Europe (in % of total households) Strong demand-side factors Lower rate of home ownership (64.1% of French households were owner-occupiers in 2015) compared with other European countries (70.5% in the EU) 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 an uncertain 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 France has a structural housing deficit of about 600,000 units (a figure smaller than previously estimated as series on housing starts had been revised upwards) Developers are cautious, adjusting their supply to fluctuating demand. The stock of new housing units for sale is limited, and 68% of it is still at the planning stage in Q2 2017, which limits the risk of oversupply A structurally sound home loan market Prudent lending towards the most creditworthy buyers The French housing debt ratio (housing debt outstanding/overall household disposable income) is increasing but remains relatively low compared with the rest of Europe Source : 2015, Eurostat Source : French Ministry of Ecology France: housing starts and permits (in thousands,12-m aggregate) Permits Housing starts Households' housing debt ratio (% housing debt / disposable income) France Germany Spain UK Source : Central Banks 37 l Credit Update December 2017

38 FRENCH HOUSING MARKET Far more resilient than the rest of Europe Housing price indices (base 100 = Q1-97) UK The French market did not experience a bubble / excessive risk-taking, as seen in the US, the UK, Ireland and Spain between 1998 and Ireland France Spain 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, the correction was very limited, as prices decreased by 5% only between 2008 and Source : Halifax, Ministerio de Fomento, INSEE, DS 50 France: sales of newly-built homes (in thousands per quarter) Currently, the real estate cycle is either bottoming (Spain, Italy) or rising (UK, Ireland, the Netherlands), albeit at a slower pace in the UK due to the Brexit process On market Sales In France, in , a clear rebound is being experienced: housing sales are reaching record levels and prices are accelerating, albeit modestly For existing dwellings, the number of sales was up 15% in 2015 and 6% in They should rise by 11% in 2017, reaching units, an historical record level For newly-built homes, the number of sales rebounded by 15% in 2015 and by 20% in They should remain stable at a high level in 2017 For existing dwellings, prices were stable in 2015 and slightly up, by 1.5%, in They will rise by 3% in In Paris, prices are rebounding more strongly, 4.3% in 2016 and 7% expected in 2017 In 2018, transaction volumes will remain high. Yet, they are expected to fall slightly, by -5%, due to higher lending rates and changes in the Pinel buy-to-let scheme (see next slide). Price increases should reach 3% in 2018 and slow somewhat thereafter Source : French Ministry of Ecology France: existing dwellings (sales and prices) Sales volumes (in thousands, left scale) Annual change in prices (in %, right scale) 1, Forecasts Source : CGEDD, Notaries, Crédit Agricole forecasts % 38 l Credit Update December 2017

39 FRENCH HOUSING MARKET Negative and positive economic environment factors Positive economic factors but higher prices GDP growth is more sustained: 1.7% in 2017 and 1.6% in 2018, after 1.1% in The unemployment rate is decreasing: 9.3% in 2017 and 9% in 2018 after 9.8% in 2016 Mid-term household income expectations remain modest Selling prices remain quite high and are recovering. Households ability to purchase rose significantly on recent years, due to the sharp drop in lending rates, whereas prices had fallen very little. This ability to purchase is starting to decline, however, as prices are rising again. Two recovery factors, record low lending rates and housing support plan, to become less positive in 2018 Long-term fixed-rate mortgage lending rates fell again in 2016, reaching a record low of 1.5% in December. That low cost of credit triggered a windfall effect and accelerated certain projects. In 2017, OAT and lending rates remain low (QE, safe haven effect). Yet, lending rates have begun to rise slightly, reaching 1.66% in August. OAT and lending rates should continue to rise gradually in 2018 (improving economic outlook in the Eurozone, gradual increase in US long-term rates, expected reduction of bond purchases by the ECB in 2018). The twin trend of rising lending rates and rising prices would lead to a less upbeat market in The new housing market was boosted by two measures: the Pinel scheme for rental investment, 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 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. In 2018, a new plan for housing will be implemented. The main targets are freeing up of public and private building land and a simplification of standards, to bring down prices in new build housing. Those measures are positive, their impact will not be immediate. The Pinel scheme will be slightly modified, refocused on tense areas. It will lead to a 5% decrease in 2018 in newly built housing sales. France: housing prices and unemployment rate (in %) Annual change in prices (left scale) Unemployment rate (inverse right scale) Source : Notaries, INSEE France: home loan rates (in %, monthly average, excluding insurance) janv.-13 juil.-13 janv.-14 juil.-14 janv.-15 juil.-15 janv.-16 juil.-16 janv.-17 juil.-17 Source : Banque de France, Crédit Agricole S.A. 39 l Credit Update December 2017

40 FRENCH HOUSING MARKET Lending practices enhance borrower solvency New home loans: fixed vs floating rates (in % share) Floating rate loans A cautious origination process In France, the granting of a home 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 Source : ACPR Fixed rate loans Low risk characteristics of the loans Loans are almost always amortising, with constant repayments Most home loans have a fixed rate to maturity (97.9% for new loans in 2016). Most 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 18.6 years in 2016, after 18 years in The LTV for new loans stood at 85.7% in 2015 and 85.9% in 2016 French home loan market largely based on guarantees provided by Crédit Logement and home loan insurance companies Mortgage equity withdrawal mechanisms are highly regulated and are not used New home loans: initial average maturity (in years) Source : ACPR Ratio of non performing loans / Total home loans (in %) As a result the risk profile is very low The non-performing loans ratio for home loans is rising slightly but remains low, at 1.54% in 2016, after 1.57% in Source : ACPR 40 l Credit Update December 2017

41 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 41 l Credit Update December 2017

42 CRÉDIT AGRICOLE HOME LOAN SFH Crédit Agricole: leader in home finance Crédit Agricole Group is the unchallenged leader in French home finance 340.4bn in home loans outstanding at end Q % Crédit Agricole Group market share* in French home loans at end Q2-17 Crédit Agricole Group: French Home Loans Outstanding ( bn) 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 Q3-17 Home financing at the heart of client relationship management 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. - Economic Department 42 l Credit Update December 2017

43 CRÉDIT AGRICOLE HOME LOAN SFH Crédit Agricole s 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 non-performing loans* remains low, despite a slight increase since 2007 The provisioning policy is traditionally very cautious, well above the French market (42% at end-2016) Final losses remain very low: 0.018% in 2016 *Doubtful loans and irrecoverable loans 0.018% Crédit Agricole Group final losses on French home loans in 2016 Non-performing loans / Total home loans 1.8% 1.6% 1.54% 1.4% 1.2% 1.25% 1.0% 0.8% 0.6% 0.4% Source: ACPR, Crédit Agricole S.A. Non-performing loans coverage ratio 70% 60% 50% 40% 30% 42% 29% 20% 10% 0% Source: ACPR, Crédit Agricole S.A. French Market Crédit Agricole Group Crédit Agricole Group French Market 43 l Credit Update December 2017

44 CRÉDIT AGRICOLE HOME LOAN SFH A diversified guarantee policy, adapted to clients risks and needs 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) Mortgage French State guarantee for eligible borrowers in addition to a mortgage PAS loans (social accession loans) Home loans by guarantee type Outstanding 2015 New loans 2015 Outstanding 2016 New loans 2016 Mortgage 32.8% 27.6% 32.3% 28.3% Mortgage & State guarantee 4.2% 4.0% 4.3% 4.5% Crédit Logement 22.9% 30.7% 23.2% 25.8% CAMCA 26.8% 25.8% 27.6% 30.9% Other guarantees + others 13.4% 11.9% 12.6% 10.5% Total 100.0% 100.0% 100.0% 100.0% Source: Crédit Agricole Scope: Crédit Agricole Group French Home Loans 44 l Credit Update December 2017

45 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. and 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 de 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 CA HL SFH recognition Controls Limited activity of the Issuer : exposure to eligible cover pool and issuance of CB (Obligations à l Habitat, OH) Bankruptcy remoteness from bankruptcy of the parent company Eligibility criteria : pure residential loans, either 1st 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 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) Public supervision by the French regulator (ACPR) Ongoing control by the specific controller to protect bondholders 45 l Credit Update December 2017

46 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. The structure relies on the European Collateral Directive provisions transposed into the French Financial and Monetary 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 Controls Audited by Mazars and Ernst & Young Ongoing control by the specific controller, Fides Audit, approved by the French regulator 46 l Credit Update December 2017

47 CRÉDIT AGRICOLE HOME LOAN SFH Structure overview No mismatch between Covered Bonds and CASA Borrower Facilities Covered Bonds Proceeds Investors CA Home Loan SFH Borrower Facilities The Issuer Legal privilege over all assets of the Issuer and the cover pool 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 2nd Lender Administrator Collateral Providers Agent Collateral Provider Facilities LCL Each Collateral Provider will benefit from facilities with an attractive interest rate 47 l Credit Update December 2017

48 CRÉDIT AGRICOLE HOME LOAN SFH Liquidity and market risk monitoring Liquidity and interest rate risks Cover Pool* Covered bonds Average life (in years) 4.31 Average life of the cover pool (including overcollateralisation) has become shorter than cover bonds (CB) notably following: - the March 2016 LM exercise, which has also reduced the average coupon of the CB (-0,40%) - and longer term issues in 2017 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 *CPR assumption based on historical data *Capped for cover pool loans Breadown by interest rate ( bn) Fixed Floating* Cover Pool Covered bonds Currency risk Breadown by currency A limited currency risk fully hedged through cross currency swaps with internal counterparty EUR 100% EUR 95% CHF* 5% Source: Crédit Agricole S.A., figures at end-september 2017 Cover Pool *Fully hedged into EUR via XCCY swaps Cover bonds 48 l Credit Update December 2017

49 CRÉDIT AGRICOLE HOME LOAN SFH Cover pool at end-september 2017 Total outstanding current balance Number of loans Average loan balance Seasoning Remaining term 89 months 158 months WA LTV 59.81% Indexed WA LTV 59.97% Interest rates Guarantee type distribution Occupancy Origination Key eligibility criteria 90.86% fixed 9.14% variable, capped Mortgage : 68.1% (of which 14.8% with additional guarantee of the French State) Crédit Logement guarantee : 24.1% CAMCA guarantee : 7.8% 82.1% owner occupied homes 100% home loans self originated in France by 39 Regional Banks and LCL No arrears Current LTV max 100% Bretagne 4.8% > 15% % 7,5-10% 5-7,5% 2,5-5% 0-2,5% Pays de la Loire 5.8% Aquitaine 5.5% Centre 4.0% Limousin 0.7% Nord-Pas-de- Calais 5.0% Haute- Picardie Normandie 3.3% Basse- 2.4% Lorraine Normandie Ile-de-France Champagn 2.0% 2.0% 19.2% e-ardenne 1.7% Poitou- Charente s 2.7% Bourgogne 2.1% Auvergn e 1.5% Midi- Pyrénées 4.5% Languedoc- Roussillon 4.5% Outre mer 1.4% Excellent geographical diversification Franche- Comté 1.8% Rhône-Alpes 14.3% Alsace 1.7% Provence- Alpes-C. d'a. 8.6% Corse 0.5% Very low LTV, allowing high recoveries, even in highly stressed scenarios 49 l Credit Update December 2017

50 CRÉDIT AGRICOLE HOME LOAN SFH Programme features at end-september 2017 Programme size Ratings Governing laws Outstanding series Outstanding amount 35bn Aaa by Moody s, AAA by S&P Global Ratings, AAA by Fitch French law, German Law, Australian Law 45 series - 54 tranches 25.17bn Crédit Agricole S.A. Home Loan SFH is registered with the Covered Bond label Investor information available on Crédit Agricole s website 50 l Credit Update December 2017

51 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 51 l Credit Update December 2017

52 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 (S&P Global Ratings) 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 l Credit Update December 2017

53 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 Top 5 global Export Finance bank for 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 has continued to grow Loans are guaranteed by ECAs, acting in the name of their governments Steady demand from exporters for long term financing given large infrastructure needs in emerging markets (construction, telecoms, energy, transportation, etc...) Very low risk thanks to the recourse to ECAs and security packages in some cases as well Very low capital consumption for banks A portfolio of 16.4bn at end-june 2017 Outstanding ECA loans (in bn) Dec. 08 Dec. 11 Dec. 12 Dec. 13 Dec. 14 Dec. 15 Jun. 16 Dec. 16 Jun l Credit Update December 2017

54 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 Close proximity to ECAs, and well established relations with them Dedicated, experienced transaction teams based in Paris in charge of structuring and managing deals from signature to final repayment 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 Diversified portfolio Sovereign guarantees provided by a diversified group of guarantors Good sector and geographic diversification ECA mix Sector mix Borrowers' country mix Belgium 2% USA 3% Switzerland 2% Spain 1% Misc. 6% France 32% Japan 3% Finland 5% UK 8% Italy 12% Germany 9% Korea 16% Energy 28% Infrastructures 3% Telecom 8% Shipping 21% Misc. Industries 8% Defence 15% Aviation 15% AMERICAS 21% ASIA - OCEANIA 25% EUROPE - CENTR. ASIA 29% ME - AFRICA 25% At end-june l Credit Update December 2017

55 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 Protection given by the cover pool Enhanced liquidity CA PS SCF Recognition Control Limited activity of the Issuer: exposure to eligible cover pool and issuance of Covered Bonds (Obligations Foncières) Bankruptcy remoteness from bankruptcy of the parent 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 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 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 (500m and above CB issues) Public supervision by the French regulator (ACPR) Ongoing control by the Specific Controller to protect bondholders 55 l Credit Update December 2017

56 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Structural features Programme 10bn programme of Obligations Foncières, with 2.5 bn of issues outstanding rated Aaa by Moody s and AAA by S&P Global Ratings 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 borrowers countries of all transfer formalities necessary to achieve a transfer binding and enforceable to the ECAs, the borrower and any third party Completion of the formalities necessary for obtaining a valid transfer of the public exposure 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 l Credit Update December 2017

57 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 Collateral Securities CACIB 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 CASA Facilities Borrower Collateral Provider and by CASA to CA PS SCF, as collateral of Issuer Facilities 57 l Credit Update December 2017

58 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-september bn eq. drawn ECA loans* Total commitment of 6.0bn eq. 200 loans Sector mix (% of drawn amounts) 36% aircraft (all aircraft loans are secured by mortgages) 10% Oil & Gas 54% others Sector mix (drawn amounts) Strongly rated guarantors (% of drawn amounts) 44% France, rated Aa2/ AA/ AA (BPIFRANCE ASSURANCE EXPORT) 17% Germany, rated Aaa/ AAA/ AAA (mainly EULER-HERMES and LAND SCHLESWIG HOLSTEIN for 1%) 16% UK, rated Aa2/ AA/ AA (UKEF) Enhancement of the pool diversification by inclusion of new high quality guarantors of which mainly Switzerland (SERV) for 4%, Korea (KSURE) for 2%, Multilateral Investment Guarantee Agency for 1% and Austria (OeKB) for 1% Cover pool ECA mix Commitment ( bn) Outstanding ( bn) Mining 1% Industry 2% Infrastructure 3% Aircraft 36% Rail Finance 5% Power 9% Oil & Gas 10% Defence 24% Telecom 10% At end-september 2017 * 4.7bn transferred at end-september 2017 to CA PS SCF, of which: 4.51bn with post transfer formalities completed and, 0.22bn with post transfer formalities in progress. BPIFRANCE ASSURANCE EXPORT EULER HERMES AKTIENGESELLSCHAFT UKEF EXPORT IMPORT BANK OF THE UNITED STATES FINNVERA PLC SERV KOREA TRADE INSURANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY LAND SCHLESWIG HOLSTEIN OESTERREICHISCHE KONTROLLBANK AG DELCREDERE / DUCROIRE At end-september l Credit Update December 2017

59 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-september 2017 Borrower country mix Well diversified among 32 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) 52% EUR 45% USD 3% AUD Borrower interest rate 43% fixed rate 57% floating rate Cover pool maturity Average residual life : 4.2 years Average residual term : 7.7 years Average initial maturity : 12.2 years Seasoning of the pool : 4.5 years Cover pool borrower country mix (drawn amount) 3.4 UNITED ARAB EMIRATES 3% IRELAND 3% AUSTRALIA 3% AUSTRIA 4% NETHERLANDS 4% SOUTH AFRICA 4% 2.3 OMAN 4% OTHER 15% SPAIN 4% KUWAIT 4% Cover pool currency mix Commitment (bn ) 2.2 INDONESIA 4% 2.0 EGYPT 15% RUSSIA 6% Outstanding (bn ) 0.2 CHINA 9% MEXICO 7% BRAZIL 6% SOUTH KOREA 6% 0.2 EUR USD AUD At end-september 2017 At end-september l Credit Update December 2017

60 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Programme features at end-september 2017 Programme size Ratings Governing laws Outstanding series Outstanding amount 10bn Aaa by Moody s, AAA by S&P Global Ratings French law, German Law 4 series 3.0bn Crédit Agricole S.A. Public Sector SCF is registered with the Covered Bond Label Investor information available on Crédit Agricole s website 60 l Credit Update December 2017

61 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q3 AND 9M-17 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 61 l Credit Update December 2017

62 1. Key Data 62 l Credit Update December 2017

63 KEY DATA Crédit Agricole Group Leading French co-operative bank 9.3 mn mutual shareholders and 2,471 Local Credit Co-operatives in France 38 Regional Banks owning 56.6% of Crédit Agricole S.A. via SAS Rue La Boétie end Q mn clients (o/w 27mn individuals in France); 138,000 employees worldwide Leading player in Retail Banking and Savings Management in France Leading lender to the French economy, with loans outstanding in respect of Regional Banks and LCL of 559.3bn at end Q3-17 Leading market shares in non-financial customer deposits and loans in France: 24.4% and 21.6% respectively at end Q2-17 (1) Leading banking Group in home loans, with outstandings in respect of Regional Banks and LCL of 340.4bn at end Q3-17; market share of 30.4% at end Q2-17 (1) No. 1 insurance Group in France by written premiums (2) ; market share of 15.0% of life insurance outstandings at end Q4-16 (3) No. 1 bancassurer in France and in Europe (2) No. 1 asset manager in France and in Europe by AUM (4) Among top 3 in consumer finance in Europe (5) Resilient customer-focused universal banking model Retail banking and related activities account for 72% of Crédit Agricole Group s underlying net income Group share (excl. Corporate Centre) in 9M-17 Solid fundamentals Stated net income Group share: 1,907m at Q3-17 (+36.8% Q3/Q3) and 5,614m at 9M-17 (+35.1% 9M/9M); underlying net income Group share: 1,759m at Q3-17 (-4.5% Q3/Q3) and 5,430m at 9M-17 (+15.3% 9M/9M) Shareholders equity: 101.6bn at end Q3-17 vs bn at end Q2-17 and 98.6bn at end Q4-16 B3 CET1 FL ratio: 14.9% at end Q3-17 vs. 14.2% at end Q3-16 Phased-in leverage ratio: 5.5% at end Q3-17 (as defined in the Delegated Act and assuming non-exemption of exposures linked to the centralisation of CDC deposits, in accordance with our understanding of information obtained from the ECB) Conglomerate ratio: 167% on a phased-in basis at end Q2-17, far above 100% requirement Estimated TLAC ratio excl. eligible senior debt of 20.6% at end Q3-17 (expressed as % of RWA); estimated MREL ratio excl. potentially eligible senior debt > 1 year of 8.1% at end Q3-17 (expressed as % of prudential balance sheet) Liquidity reserves: 254bn at end Q3-17 vs. 246bn at end Q2-17 and end Q3-16; liquidity reserves to ST debt ratio of 310% at end Q3-17 vs. 307% at end Q2-17 and 304% at end Q3-2016; average LCR over 12 months: 132% and NSFR > 100% at end Q3-17 Broad base of very high quality assets available for securitisation Issuer ratings: A/Positive/A-1 (S&P), A1/Stable/P-1 (Moody s), A+/Stable/F1 (Fitch Ratings) Sources: (1) Crédit Agricole S.A. - Economic Department (2) Argus de l Assurance, 16/12/2016 (3) Predica estimate (4) IPE Magazine 06/2017, based on 31/12/16 total AUM (5) CASA Registration Document l Credit Update December 2017

64 KEY DATA Crédit Agricole S.A. and Crédit Agricole Group consolidated balance sheets at 30/09/17 bn Assets CA Group CASA Liabilities CA Group CASA 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 Liabilities associated with non-current assets held for sale Non-current assets held for sale Insurance Company technical reserves Investments in equity affiliates Contingency reserves and subordinated debt Fixed assets Shareholder's equity Goodwill Non-controlling interests Total assets 1, ,559.3 Total liabilities 1, , l Credit Update December 2017

65 2. Group Structure 65 l Credit Update December 2017

66 GROUP STRUCTURE Crédit Agricole Mutual Group: customer-focused universal banking model 2,471 (2) Local Credit Co-operatives ~25% (through CCI/CCA) 9.3 mn (2) mutual shareholders 38 Regional Banks (excl. CR Corsica) (1) 100% Sacam Mutualisation 56.6% (3) via holding company (SAS La Boétie) 27 mn (2) retail customers in France 52 mn (2) customers worldwide Public (of which 3.5% employees and 0.1% treasury shares) 2,471 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 Cooperatives, 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 56.6% 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., is also a shareholder of SACAM Mutualisation (2) At 31 December, 2016 (3) At 30 September, % (3) 66 l Credit Update December 2017 Crédit Agricole S.A. Listed Company Central Body and member of CA network HoldCo of Group subs Crédit Agricole S.A. Four business lines Asset Gathering : Amundi, CAA, Indosuez Wealth Management.. Retail Banking: LCL, CA Italia, CA Bank Polska, Crédit du Maroc.. Specialised financial services: CACF, CAL&F Large customers: CACIB, CACEIS

67 Joint & Several G tee Fin. & Monetary Code GROUP STRUCTURE Internal support mechanisms Crédit Agricole S.A. obligations under the Financial & Monetary Code Crédit Agricole S.A., as the Central Body and as a member of the Crédit Agricole Network 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. 66.4bn* at end-2016 In accordance with the Decree Law no dated 20/08/15, the Resolution Authorities may, at their discretion, impose a resolution on the Group prior to any liquidation or dissolution. The ACPR, the national Resolution Authority, 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 Resolution Authorities 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 Resolution Authorities in a resolution, although it is not possible to determine how this will be done Fin. & Monetary Code Regional Banks The alignment of the issuer 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 CACIB 67 l Credit Update December 2017