CREDIT UPDATE MAY l Credit Update May Crédit Agricole S.A. - Credit Update

Transcription

1 CREDIT UPDATE MAY l Credit Update May 2018 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 May 2018

3 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

4 INTRODUCTION Key figures CREDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Q1-18 Q1-18 1,429m Net income Group share - stated 856m -10.7% Q1/Q1 +1.2% Q1/Q1 1,352m Net income Group share - underlying (1) (2) 788m -18.3% Q1/Q1-12.1% Q1/Q1-10.1% at constant scope and forex (3) +4.8% at constant scope and forex (3) -4.2% at constant scope and forex and excl. SRF (3) +8.7% at constant scope and forex and excl. SRF (3) Earnings per share (1) (2) l Credit Update May % Q1/Q1 Net tangible asset value per share 11.2 stable vs. end-december % Fully-loaded CET1 ratio (%) 11.4% (1) See slides 79 & 80 (Crédit Agricole Group) and 81 & 82 (Crédit Agricole S.A.) for further details on specific items (2) After deduction of AT1 coupons, charged to net equity (3) Combining the contributions to underlying income of Amundi and Pioneer and taking account of the amortisation of distribution agreements in Q1-17, excluding the contributions of the three Italian banks in Q1-18 and those of BSF and Eurazeo in Q1-17 and excluding forex effect

5 INTRODUCTION Items affecting the growth of NIGS (Q1/Q1) CRÉDIT AGRICOLE GROUP Disposal of non-core entities in 2017 Significant contributions to NIGS in Q1-17: Eurazeo ( 77m) and BSF ( 68m) Decline in the share of contributions of equity-accounted entities: 7% in Q1-18 vs. 13% in Q1-17 for Crédit Agricole Group A less risky CIB which suffered from market conditions in Q1 No proprietary trading: very low VaR ( 6.4m in Q1-18 on average, stable Q1/Q4 and down -35% Q1/Q1) Capital markets primarily exposed to Fixed income activities; low exposure to Equities Strong selectivity ( pick & choose ), enabling a decrease in RWA and capital consumption of -11% March/March (-7% at constant exchange rates) Forex effect: decrease of US dollar (-14% vs. Euro Q1/Q1), high exposure of CASA revenues, forex effect on NIGS of - 24m - 145m Q1/Q1 loss of contribution from sold non-core entities -11% Q1/Q1 decrease in RWA of CIB Substantial increase in the contribution to the Single Resolution Fund (SRF) Contribution in Q1-18 up +31.0% YoY to - 359m, impact on NIGS of - 351m (+30.4%/- 82m) Excl. SRF contribution, NIGS decrease at constant scope and forex rates would have been -4.2 % Q1/Q1-82m Q1/Q1 effect on NIGS growth due to contribution to the SRF 5 l Credit Update May 2018

6 INTRODUCTION Key messages CRÉDIT AGRICOLE GROUP Strong activity in numerous business lines High level of net inflows, of good quality in Asset gathering Increased equipment rates and volumes in Retail banking and Specialised financial services Excellent cost control Q1/Q1 decrease in costs excl. SRF at constant scope and forex rates (2) : CAG: stable, CASA: -0.7% Underlying cost/income ratio excl. SRF: CAG: 64.7%, CASA: 63.3% Acquisitions: accelerated synergies Pioneer: synergy schedule revised (60% as of 2018 vs. 40% in the initial plan) Three Italian banks: close to operating breakeven in Q1 (C/I ratio of 95.5% vs. 118% in Q4-17), ahead of business plan Strong results considering a high base effect in Q1-17 High basis of comparison in Q1-17 in revenues for Insurance (stable vs. Q1-17 which was boosted by capital gains), CIB and LCL Underlying NIGS at constant scope and forex rates (2) : CAG: -10.1% Q1/Q1, CASA: +4.8% Q1/Q1 Sharp drop in cost of risk despite the scope effect (Italy) and IFRS9 Significant rise in NPL coverage ratios after the first-time application of IFRS9 (incl. bucket 1 & 2 provisions: CAG 84%, CASA 73%) Solvency: fully-loaded CET1 ratios stable proforma IFRS9 Fully-loaded CET1 ratio: CAG 14.6% vs. MTP target of 16%; CASA 11.4%, MTP target of 11% for CASA maintained First-time application of IFRS9: impact on equity (CAG - 1.2bn; CASA - 1.1bn) on CET1: CAG -26bp, CASA -24bp RWA stable year-on-year (CAG +0.2%, CASA -0.4%) despite integration of the acquisitions of the period (+ 5bn) -10.1% decline in underlying NIGS at constant scope & forex (2) +0.0% stable Q1/Q1 in underlying costs at constant scope & forex (2) and excl. SRF 14.6% fully-loaded CET1 ratio (1) See slides 79 & 80 (Crédit Agricole Group) and 81 & 82 (Crédit Agricole S.A.) for further details on specific items (2) Combining the contributions to underlying income of Amundi and Pioneer and taking account of the amortisation of distribution agreements in Q1-17, excluding the contributions of the three Italian banks in Q1-18 and those of BSF and Eurazeo in Q1-17 and excluding forex effect 6 l Credit Update May 2018

7 INTRODUCTION Strong dynamics in all activities in Q1-18 Regional Banks Home loans +7.7% Consumer loans +9.9% Demand deposits +11.4% Growth in outstandings March/March RETAIL BANKING LCL Home loans +4.7% Corporate loans +9.1% Demand deposits +10.4% SAVINGS MANAGEMENT & INSURANCE Insurance: N 1 in France (1) Savings/retirement: share of UL in stock at 21.5% (+1.2 pp YoY) P&C insurance: stock of 12.9m contracts, +5.6% March/March LARGE CUSTOMERS Italy Home loans +6.0% Corporate loans +7.8% Off-B/S inflows * +2.5% Asset management: Record net inflows of bn in Q1 o/w bn in MLT assets SPECIALISED FINANCIAL SERVICES Consumer finance: managed loan book up +5.3% March/March Leasing: outstandings +4.3% March/March Factoring: factored turnover +6.6% Q1/Q1 * Excl. 3 newly acquired banks No.2 in EMEA on syndicated corporate loans (in volumes) (2) : market share 6.7% (2), +2.6 pp Q1/Q1 No.1 worldwide on supranational issues in Q1-18 (2) : gain of 4 ranks Q1/Q1 Distribute to originate: average primary redistribution rate of 37% over the last 12 months, +5 pp /2016 and +10 pp /2013 CRÉDIT AGRICOLE GROUP Strong credit activity: slowdown in home lending and pick-up in lending to businesses both confirmed Savings businesses: strong inflows of good quality P&C insurance: continued market share gains in France and growth in equipment rates Strong activity in all businesses Weak customer demand on credit and rate markets Continuation of selectivity policy Market share gains in selected businesses (1) Source: Argus de l assurance, no. 7557, 8 December 2017 (2) Source: Bookrunner (Thomson Financial at 31/03/2018) 7 l Credit Update May 2018

8 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 8 l Credit Update May 2018

9 CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS Specific items of Q1-18: + 76m in NIGS CRÉDIT AGRICOLE GROUP Net change in value of goodwill: NIGS impact of + 74m Additional negative goodwill on the acquisition of the three Italian banks: + 86m before minority interests Largely attributable to the treatment of goodwill under IFRS3 Integration costs related to the acquisition of Pioneer: NIGS impact of - 4m - 9m impact before tax and minority interests, i.e. aggregate costs of 145m since Q1-17 out of a projected total of 190m Accelerated cost savings: 60% in 2018 (vs. 40% in the initial plan) Recurring specific items: NIGS impact of + 7m DVA (+ 4m), hedging of loan portfolios (1) (+ 3m) No change in the provision for home purchase savings plans this quarter Issuer spread now recognised directly in equity as per IFRS9 (- 38m in Q1-18) NIGS impact of expenses under IFRIC21 not classified as specific item Of which contribution to the Single Resolution Fund (SRF): - 359m (before tax and minority interests), i.e % vs. Q1-17, - 351m in NIGS after minority interests (+30.4% Q1/Q1) See slide 80 for details on specific items for Crédit Agricole Group (1) Hedging of CACIB's loan portfolio in order to adapt it to targeted sector, geographical, etc. exposure 9 l Credit Update May 2018

10 CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS Good resistance of underlying revenues (1) at constant scope and forex (2) Change Q1/Q1 in underlying revenues (1), by division -1.0% 8,249 8, ,249 8,258 (84) (171) (172) Q1-17 stated Specific items (1) (1) Q1-17 underlying Regional Banks Other Retail Asset gathering SFS Large Customers -2.8% Q1/Q1 decline in underlying revenues, at constant scope and forex (2) Corporate centre Q1-18 underlying Specific items Q1-18 stated Positive impact from Pioneer, challenging capital markets environment Regional Banks and Other Retail: impact on interest margin from past loan renegotiations and near-disappearance of renegotiation fees; very high base effect for LCL in Q1-17 AG: scope effect (equiv. to + 202m) and strong organic growth by Amundi/Pioneer (+1.6% at constant scope (2) ); Insurance revenues stable vs. a very high base effect in Q1-17 (capital gains realised) SFS: stable at a high level LC: forex effect and weak market environment for client activity, especially impacting capital market activities due to the business mix (essentially FICC) and prudent risk profile (no proprietary trading) (1) See slide 80 for further details on specific items (2) Combining the contributions to underlying income of Amundi and Pioneer and taking account of the amortisation of distribution agreements in Q1-17, excluding the contributions of the three Italian banks in Q1-18 and excluding forex effect Other Retail: LCL & International retail banking, AG: Asset gathering, including Insurance, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre 10 l Credit Update May 2018

11 CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS Excellent control of underlying costs, stable at constant scope and forex (2) excl. SRF Change Q1/Q1 in underlying costs (1), by division 5,480 Q1-17 stated Specific items +2.6% 5, ,334 (30) (25) (1) (1) SRF Q1-17 Regional Other Asset SFS Large Corporate Q1-18 SRF Specific underlying Banks Retail gathering Customers centre underlying items 0.0% stable Q1/Q1 underlying costs excl. SRF, at constant scope and forex (2) ,702 Q1-18 stated Costs down significantly at constant scope (2) Scope effects (2) : Pioneer (equiv m), 3 Italian banks (+ 51m excl. SRF) Accelerated cost savings related to acquisitions: 60% anticipated in 2018 for the integration of Pioneer (vs. 40% in the initial plan), C/I ratio of the three Italian banks at 95.5% in Q1 (118% in Q4-17) Regional Banks and Other Retail: +1.0% increase in costs for Regional Banks but -2.4% decrease for LCL AG: decrease of -5% (2) in costs for Amundi (first synergies with Pioneer) and Insurance (decrease in taxes and charges) Cost/income ratio (3) : 64.7% Sharp rise in the contribution to the SRF: 359m, impacting only Q1 (+31.0%/+ 85m Q1/Q1) (1) See slide 80 for further details on specific items (2) Combining the contributions to underlying income of Amundi and Pioneer in Q1-17, excluding the contributions of the three Italian banks in Q1-18 and excluding forex effect (3) Underlying, excluding SRF, but including IFRIC 21 in other expenses Other Retail: LCL & International retail banking, AG: Asset gathering, including Insurance, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre 11 l Credit Update May 2018

12 CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS Underlying NIGS down -10.1% Q1/Q1 at constant scope and forex (2) Change Q1/Q1 in underlying NIGS (1), by division 1,600 1,656 (56) Q1-17 stated Specific items Q1-17 underlying +47 (169) (28) (22) Regional Banks Other Retail Asset gathering SFS (154) Large Customers +22 Corporate centre 1,352 1, (1) (1) -10.1% Q1/Q1 decline in underlying NIGS at constant scope and forex (2) -18.3% Q1-18 underlying Specific items -4.2% Q1/Q1 decline in underlying NIGS at constant scope and forex (2) excl. SRF (1) See slide 80 for further details on specific items (2) Q1-18: excluding the contributions of the three Italian banks; Q1-17: excluding the contributions to NIGS of BSF and Eurazeo and combining the contributions to underlying income of Amundi and Pioneer and taking into account the amortisation of distribution agreements and excluding forex effect Q1-18 stated Unfavourable Q1/Q1 comparison, especially for Regional Banks & Large Customers Decrease in underlying NIGS focused on Regional Banks and the Large Customers business line Regional Banks NIGS affected by drop in revenues (-4.8%), impacted by home loan renegotiations and portfolio revaluations, only partly offset by improved commissions (+0.8% Q1/Q1), overall controlled costs (+1% Q1/Q1) and the decreasing cost of risk (-10.2% Q1/Q1) LC NIGS adversely affected by the wait and see attitude of customers in FICC, and unfavourable scope and forex effects vs. Q1-17 Challenging base effect also observed for Insurance and LCL Contributions of the scope effects Q1/Q1 Pioneer: equiv. to + 36m and the 3 Italian banks - 4m Significant increase in the contribution to the SRF: NIGS impact: -351m after minority interests, - 82m/Q1-17 (of which -35m for LC and - 36m for Regional Banks and LCL) Other Retail: LCL & International retail banking, AG: Asset gathering, including Insurance, SFS: Specialised financial services; LC: Large customers; CC: Corporate centre 12 l Credit Update May 2018

13 RISKS Well managed risk in all businesses CRÉDIT AGRICOLE GROUP Cost of credit risk on outstandings (in bps over a rolling four-quarter period) Target 2019: 50bp Target 2019: 35bp CACF: 90m in Q1-18, -22 bp Q1/Q1 Low recurring cost of risk and positive impact from the disposal of non-performing loans by Agos Retail banking in Italy: 79m in Q1 Cost of risk stable Significant increase in coverage ratios for non-performing exposures Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Crédit Agricole S.A. (1) : 29bp - Low and stable - Below MTP assumption of 50bp - Charge to B1+B2 provisions: 52m Crédit Agricole Group (1) : 17bp - Low and stable - Below MTP assumption of 35bp - Still low for the Regional Banks: 5 bp in Q Charge to B1+B2 provisions: 52m Cost of risk significantly lower than MTP assumptions Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Financing activities (2) : 55m, -23 bp Q1/Q1 Continuation of the downward trend relative to 2016 LCL: 51m in Q1, -3 bp Q1/Q1 Stable, still at a low level Regional Banks: 104m in Q1, -9bp Q1/Q1 Decline and stabilisation at very low level Other business lines (3) : 42m (vs. 75m in Q1-17) Mainly International retail banking excl. Italy ( 15m) and Leasing & factoring ( 9m) (1) Excluding non-specific provisions for legal risk in Q2-16, Q3-16, Q1-17 and Q3-17 (2) Excluding additional provision for legal risk in Q2-16 for 25m, Q3-16 for 50m, Q1-17 for 40m and Q3-17 for 38m (3) Asset gathering, International retail banking excluding Italy, Leasing and factoring, Capital markets, Asset servicing, Corporate centre 13 l Credit Update May 2018

14 CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS A stable, diversified and profitable business model CRÉDIT AGRICOLE GROUP Predominance of Retail banking and related business lines, generating 84% of underlying revenues (1) and 87% of underlying NIGS (1) in Q1-18 Q1-18 Asset Gathering including Insurance accounts for 17% of underlying revenues (1) and 28% of underlying NIGS (1) in Q1-18 Leading franchises in Retail banking (Regional Banks & LCL), Asset management (Amundi), Insurance (CAA) and in Consumer finance (CACF) Underlying revenues (1) Q1-18 by business line (excluding Corporate Centre) (%) Q1-18: 8.4bn, -1.2% year-on-year Underlying NIGS (1) Q1-18 by business line (excluding Corporate Centre) (%) Q1-18: 1.6bn, -16.8% year-on-year Leasing & Factoring 2% Consumer Finance 7% Insurance 7% Asset management 8% Wealth management 2% Asset servicing 3% CIB 13% SFS 8% AG 17% LC 16% RB 59% Regional Banks 40% LCL 10% IRB 8% Insurance 17% Asset management 10% Wealth management 1% Asset servicing 1% CIB 11% Leasing & Factoring 2% LC 13% Consumer Finance 9% SFS 11% AG 28% RB 48% Regional Banks 37% LCL 7% IRB 5% (1) See slide 80 for details on specific items RB: Retail banking incl. Regional banks, LCL and International retail banking (IRB); AG: Asset gathering, including Insurance; SFS: Specialised financial services ; LC: Large customers 14 l Credit Update May 2018

15 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

16 FINANCIAL MANAGEMENT Fully-loaded CET1 ratio at 14.6% at 31 March 2018 CRÉDIT AGRICOLE GROUP Change in fully-loaded CET1 ratio (bp) Change in Risk-weighted assets (RWA) ( bn) 14.9% +18 pb 14.6% -39 pb -2 pb -3 pb % Market risk Operational risk Credit risk December 2017 Retained earnings Regulatory impacts Fully-loaded CET1 ratio: 14.6% Retained earnings (+18bp) Regulatory impacts: initial application of IFRS9 (-26bp) and the deduction of payment commitments to the Resolution and deposit guarantee funds (-13bp) Limited increase in risk-weighted assets (-3bp) OCI reserves RWA & others March 2018 IFRS9 recap: - 1.2bn in shareholders equity (-26bp), without any compensation of the shortfall in adjustments for credit risk relative to expected losses (=0 at CA Group level) CET1 ratio well above the applicable distribution restriction trigger (1) with a 510bp buffer Mar 17 June 17 Sept 17 Dec 17 Mar 18 Phased-in Tier 1 ratio: 15.9% Phased-in total ratio: 18.6% Phased-in leverage ratio (2) : 5.4% Note the effect of OCI reserves corresponds to the amount of unrealised OCI gains in CET1 capital after the deduction of the impact of insurance reserves on risk-weighted assets (1) According to pro forma P2R of 9.5% for 2019 as notified by the ECB (2) Delegated Act in effect with ECB authorisation on the non-exemption of exposures related to the centralisation of CDC deposits 16 l Credit Update May 2018

17 FINANCIAL MANAGEMENT Capital planning focused on TLAC targets CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. 18.8% 18.6% 18.6% 18.9% 18.3% 18.0% 16.2% 16.2% 15.9% 14.5% 14.1% 13.6% 14.9% 14.9% 14.6% 15.9% 15.8% 15.6% 18.4% 18.2% 18.1% 12.0% 11.7% 11.4% 13.8% 13.4% 13.0% 18.0% 17.4% 17.3% Sept-17 Dec-17 Mar-18 Sept-17 Dec-17 Mar-18 Sept-17 Dec-17 Mar-18 Sept-17 Dec-17 Mar-18 Sept-17 Dec-17 Mar-18 Sept-17 Dec-17 Mar-18 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 May 2018

18 FINANCIAL MANAGEMENT Crédit Agricole Group: resilient recurring earnings generation capacity CRÉDIT AGRICOLE GROUP RWAs ( bn) Retained earnings (2) / RWAs % 0.9% 0.9% 0.9% 1.1% 1.2% Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Dec. 19 f Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Dec. 19 f Net income Group share ( bn) (excluding goodwill impairment (1) ) Retained earnings (2) / Net income Group share > % 89% 79% 93% 91% 84% Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Dec. 19 f Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Dec. 19 f (1) Goodwill impairment : - 540m in 2016 regarding French retail banking-lcl and - 222m in 2017 regarding entities in Poland. (2) Prudential definition of retained earnings; no impact of goodwill impairment 18 l Credit Update May 2018

19 FINANCIAL MANAGEMENT Best in class solvency and TLAC targets CRÉDIT AGRICOLE GROUP 11.4% CET1 ratio Fully-loaded at 31/03/ MTP target at 16.0% 2019 requirements (1) (2) 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% 14.6% 13.0% 1,6% 11.4% 10.0% 1.5% 8.5% Tier 1 ratio Fully-loaded at 31/03/ requirements (1) (2) of w hich AT1 11.0% 1.5% 9.5% 15.6% ~1% 14.6% 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 21.0% 5.4% ~1% 14.6% 22.0% ~5% ~1% 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 its excess of CET Estimate at Targeted structure requirements (1)(3) 31/03/18 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 met excluding eligible senior preferred debt Confirmation of TLAC ratio target of 22%, excluding eligible senior preferred debt To meet this target, in a context of strong credit activity in France in 2016 and 2017, which is likely to continue into 2019, TLAC issuance of around 6bn 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 (3) Countercyclical buffer set at à 0% (given a buffer of 0.01% at 31/03/18) 19 l Credit Update May 2018

20 FINANCIAL MANAGEMENT Alternative MREL approach and potential impact on MDA Under current application of BRRD (1) Single Resolution Board s MREL prospective requirement Market Confidence Charge Recapitalisation Amount (9.5%) Loss Absorbing Amount (13.0%) 24.75% 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%) SRB's MREL ratio default calculation (2) 17.0% Combined buffer (3.5%) 16% Pillar 1-2.5% eligible senior pref. debt exemption (13.5%) o/w instruments other than eligible senior debt 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 Including eligible senior pref. debt > 1 year Proposed MREL Requirement Proposed revision of texts (3) («BRRD 2 / CRD5») European Commission s MREL potential 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%) EC's proposed MREL under EC's proposed TLAC under BRRD2 (3) CRR2 (3) 19.5% 17.0% Proposed TLAC requirement for G-SIBs 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 published on 20 December 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 no longer meet the eligibility or maturity criteria 20 l Credit Update May 2018

21 FINANCIAL MANAGEMENT MREL ratios: prospective requirements met MREL ratio at 31/03/18 (% of prudential balance sheet) ~15% CRÉDIT AGRICOLE GROUP MREL ratio at 31/03/18 (% of risk-weighted assets) ~38% 8.0% ~6.7% 8.3% 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% 21.0% ~17.1% ~5.4% ~1% 14.6% 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) MREL ratio as % of prudential B/S at 31/03/18: unchanged vs. 31/12/2017 at 8.3% (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 SRB's MREL ratio default calculation (2) o/w instruments other than eligible senior debt (3) Estimate at (2) MREL ratio as % of RWA at 31/03/18: ~38% 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 à 0% (given a buffer of 0.01% at 31/03/2018) (4) Potentially eligible senior preferred debt > 1 year calculation is based on Credit Agricole Group s understanding of the current applicable BRRD Directive. In particular, senior unsecured debts issued externally by all entities of the Group (not only Crédit Agricole S.A.) are included. Even if not eligible for TLAC, structured notes > 1 year are included since they are MREL eligible in the BRRD. Liabilities governed by third country law and with no bail-in recognition clause are excluded 21 l Credit Update May 2018

22 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 31/03/18 600bp ( 31bn) 8.63% 0.75% 1.875% Pillar 2 CET1 Requirement ("P2R") 510bp ( 27bn+) 9.50% 9.50% 1.0% 1.0% 2.5% 2.5% G-SIB buffer Capital conservation buffer P2R add-on Buffer as at 31/03/18 350bp ( 10bn) 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 7.88% 1.875% Pillar 2 CET1 Requirement ("P2R") 8.50% 8.50% 2.5% 2.5% 1.5% 1.5% 1.5% No G-SIB 1.5% 1.5% 1.5% buffer at Minimum Crédit CET1 ratio Agricole (Pillar 1) S.A. level 290bp ( 9bn+) 31/03/ /12/ /12/ /03/ /12/ /12/2020 Buffers above distribution restriction thresholds at 31/03/2018 Under 2017 ECB SREP methodology (1) 37.8bn (2) distributable items at 31 March 2018 (1) We take into account the evolution of the SREP methodology in 2017, as it was notified by the ECB, for MDA calculation (2) Including reserves of 25.6bn and share issue premium of 12.2bn at 31/03/18. (3) Based on reported CRR/CRD4 phased-in CET1 capital and RWAs at 31/03/18, for current buffer, and based on the MTP targets for In our calculation, the overall SREP requirement (Pillar 1, Pillar 2 Requirement, Capital conservation buffer, G-SIB buffer) does not take into account the Countercyclical buffer (not material) and it is supposed to remain 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 position of the EBA and the ECB, and to Crédit Agricole S.A. s interpretation of the relevant texts. Pillar 2 guidance (P2G) not taken into account as P2G is not expected to affect distribution thresholds, based on current ECB interpretation. TLAC constraint (applicable only at Crédit Agricole Group level starting in 2019) is not taken into account in buffer calculation 22 l Credit Update May 2018

23 FINANCIAL MANAGEMENT Key liquidity indicators CRÉDIT AGRICOLE GROUP CRÉDIT AGRICOLE S.A. Regulatory requirement Ratio at 31/03/ MTP Target LCR (1) 100% from 01/01/2018 Crédit Agricole S.A. Crédit Agricole Group Avg. over 12 months: = 137% Avg. over 12 months: = 135% ~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 (2) SRP (3) 100% from Crédit Agricole Group 01/01/2018 >100% >100% Crédit Agricole Group 117bn > 100bn NSFR: transposition in the EU legislative framework The NSFR is part of the CRR2/CRD5 legislative package which is now being considered by the European Parliament and Council According to the legislative proposal, the NSFR could apply to both individual and consolidated scopes (1) LCR calculation: liquidity buffer / net outflows; (2) Calculation based on our understanding of the most recent texts; (3) Stable Resources Position: surplus of long-term funding sources 23 l Credit Update May 2018

24 FINANCIAL MANAGEMENT Liquidity and funding CRÉDIT AGRICOLE GROUP Liquidity reserves at 31/03/18 ( bn) 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) 244bn liquidity reserves at 31 March 2018 Securities portfolio Cash and Central Bank deposits 68 o/w cash 3 o/w mandatory reserves Cash balance sheet assets Central Bank deposits 56 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 3 times by HQLA securities Average LCR ratios over 12 months: Crédit Agricole Group 135%, Crédit Agricole S.A. 137%, exceeding the MTP target of ~110% (1) Available liquid market securities, at market value and after haircuts 24 l Credit Update May 2018

25 FINANCIAL MANAGEMENT Strong cash balance sheet CRÉDIT AGRICOLE GROUP Banking cash balance sheet at 31/03/18 ( bn) ASSETS LIABILITIES > 100bn MTP target for surplus of stable funds Met at 31 March 2018 Cash & central bank deposits (incl. mandatory reserves) Interbank assets Reverse repos (net) & other ST Securities portfolio Customer-related trading assets Tangible & intangible assets Surplus: 1,148 1, bn 1,155 1, /12/ /03/ /03/ /12/2017 ST market funds 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 resources (1) / long term applications of funds stable at 112% (1) LT market funds include TLTRO drawings 25 l Credit Update May 2018

26 FINANCIAL MANAGEMENT Breakdown of MLT market funds outstanding CRÉDIT AGRICOLE GROUP MLT market funds outstanding at 31/03/18 ( bn) 31/12/17 31/03/18 79 Senior secured bn 88 Senior preferred bn 8 Senior non-preferred 10 Tier 2 (1) Tier 1 (1) 2 5 AT1 5 5 At 198bn, medium-to long term market funds unchanged in Q1-18 vs. Q4-17 Senior non-preferred debt up by 2bn eq. over the first quarter to meet future bailinable debt requirements Tier 2 and Legacy Tier 1 debt down by 1bn eq. over the first quarter Senior secured debt (incl. TLTRO) and senior preferred debt together down by 1bn eq. over the first quarter (1) Notional amount 26 l Credit Update May 2018

27 FINANCIAL MANAGEMENT CRÉDIT AGRICOLE GROUP 62% of Crédit Agricole S.A. s MLT market funding programme completed at end-april Crédit Agricole Group MLT market issues Breakdown by issuer: 14.6bn at 30/04/18 Crédit Agricole S.A MLT market issues Breakdown by segment: 7.4bn at 30/04/18 CACF 15% CACIB 20% CAL&F EFL 1% 2% CAA 7% CA Italia 4% Crédit Agricole S.A. 51% Subordinated Tier 2 14% Senior nonpreferred 51% Senior secured 33% Senior preferred 2% Senior preferred and senior secured 2.6bn Average maturity: 6.7 years Spread vs 3m Euribor: 12.7bp Senior non-preferred and Tier 2 4.9bn Average maturity: 6.8 years Spread vs 3m Euribor: 82.5bp Crédit Agricole Group (at end-april) 14.6bn eq. issued on the market by Group issuers Highly diversified market funding mix by type of instrument, investor base and targeted geographic areas Besides, 1bn also placed in the Group s retail networks (Regional Banks, LCL, CA Italia) Crédit Agricole S.A. update (at end-april) 62% of 12bn MLT market funding programme (including ca 6bn of T2 or senior non-preferred debt) completed - Senior preferred and secured debt: 2.6bn eq. incl. (a) EMTN: 0.1bn eq.; (b) Covered bonds: 1.4bn eq.; and (c) RMBS: 1bn - Senior non-preferred and Tier 2 debt: 4.9bn eq. incl. (a) Tier 2: USD1.25bn; and (b) senior non-preferred debt: 2.4bn and USD 1.75bn 27 l Credit Update May 2018

28 FINANCIAL MANAGEMENT Crédit Agricole Group: low asset encumbrance ratio CRÉDIT AGRICOLE GROUP Asset Encumbrance Ratios at 31 December % 50% 40% 30% 20% 10% 0% 22% 26% EU Average 14.8% (at 31/12/2017) 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 Source: EBA 14.8% asset encumbrance ratio at 31 December, 2017 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 do not explicitly mention the encumbrance ratio defined as Carrying amount of encumbered assets and collateral / Total assets and collateral 28 l Credit Update May 2018

29 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 ratings raised to A1 from A2, ST ratings 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 14/12/2017: LT/ST ratings affirmed Stable outlook unchanged 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 LT 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 01/05/18 (by number of banks) Breakdown of 30 G-SIB LT issuer ratings at 01/05/18 (by number of banks) Breakdown of 30 G-SIB LT issuer ratings at 01/05/18 (by number of banks) Aa2 Aa3 A1 A2 A3 Baa1 Baa AA AA- A+ A A- BBB+ BBB AA AA- A+ A A- BBB+ BBB *Issuer ratings or senior preferred debt ratings 29 l Credit Update May 2018

30 FINANCIAL MANAGEMENT Crédit Agricole S.A. s long-term ratings and 5-year CDS spreads Contrasted senior non-preferred debt ratings reflect rating agencies differing methodologies Aa3 AA- AA- LT Issuer Rating A1 LT senior preferred debt A+ Adjusted Baseline Credit Assessment Moody s S&P Global Ratings Fitch Ratings Ratings Debt instrument Ratings Debt instrument Ratings Debt instrument A2 LT Issuer Credit Rating A LT senior preferred 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+ LT senior preferred debt Senior non-preferred Baa3 BBB- BBB- Additional T1 Ba1 Additional T1 (unsolicited rating) BB+ Additional T1 BB+ A Dated T2 5-year CDS spreads Senior Preferred (bp) 5-year CDS spreads Senior Non-Preferred (bp) 5-year CDS spreads Tier 2 (bp) Crédit Agricole SA Société Générale 75 Crédit Agricole SA BNP Paribas Société Générale 250 Crédit Agricole SA Société Générale ITRAXX FINANCIAL - SUB BNP Paribas ITRAXX FINANCIAL - SENIOR BNP Paribas Source: Bloomberg 30 l Credit Update May 2018

31 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 HIGHLIGHTS 3. FINANCIAL MANAGEMENT 4. RISKS 5. FRENCH HOUSING MARKET 6. CRÉDIT AGRICOLE HOME LOAN SFH 7. CRÉDIT AGRICOLE PUBLIC SECTOR SCF 8. APPENDICES 31 l Credit Update May 2018

32 RISKS Low risk profile and sharp rise in coverage ratio post IFRS9 CRÉDIT AGRICOLE GROUP Key impaired loans and coverage ratios Impaired loans ratio Coverage ratio (incl. collective reserves) (1) Impaired Pre IFRS9 loans ratio Post IFRS9 Coverage ratio (incl. Pre collective IFRS9 reserves) (1) Post IFRS % 103.4% 103.4% 101.7% 100.9% 99.0% 98.7% 100.3% 100.9% 3.5% 3.6% 3.6% 3.5% 3.6% 3.0% 3.0% 3.0% 3.0% 2.9% 2.5% 2.5% 2.5% 2.4% 2.4% 3.4% 2.8% 2.3% 3.4% 3.3% 3.2% 2.7% 2.7% 2.8% 2.2% 2.2% 2.1% 81.3% 81.1% 81.0% 80.5% 80.2% 81.1% 80.8% 80.0% 68.5% 67.9% 67.7% 67.7% 67.8% 70.1% 69.4% 67.3% 84.1% 73.3% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 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 May 2018

33 RISKS Credit risk scorecard Crédit Agricole Group m March 17 Dec-17 IFRS 9 FTA - 01/01/2018 Mar-18 Gross customer loans outstanding 882, , , ,372 of which: impaired loans 25,936 24,335 25,895 25,610 Loans loss reserves (incl. collective reserves) 20,793 19,463 21,779 21,550 Impaired loans ratio 2.9% 2.7% 2.9% 2.8% Coverage ratio (excl. collective reserves) (1) 56.5% 57.9% 61.2% 61.1% Coverage ratio (incl. collective reserves) (1) 80.2% 80.0% 84.1% 84.1% Principal amounts, excluding finance lease with customers o/w Crédit Agricole S.A. m March 17 Dec-17 IFRS 9 FTA - 01/01/2018 Mar-18 Gross customer and interbank loans outstanding 441, , , ,228 of which: impaired loans 15,692 14,508 15,503 15,250 Loans loss reserves (incl. collective reserves) 10,636 9,763 11,341 11,175 Impaired loans ratio 3.6% 3.2% 3.5% 3.4% Coverage ratio (excl. collective reserves) (1) 52.6% 53.9% 58.0% 58.1% Coverage ratio (incl. collective reserves) (1) 67.8% 67.3% 73.2% 73.3% CRÉDIT AGRICOLE GROUP o/w Regional Banks (aggregate individual accounts French GAAP) m March 17 Dec-17 IFRS 9 FTA - 01/01/2018 Mar-18 Gross customer loans outstanding 423, , , ,264 of which: impaired loans 10,003 9,583 9,633 9,614 Loans loss reserves (incl. collective reserves) 10,094 9,609 9,739 9,700 Impaired loans ratio 2.4% 2.2% 2.1% 2.1% Coverage ratio (excl. collective reserves) (1) 63.3% 64.5% 64.4% 64.1% Principal amounts, excluding Coverage finance ratio lease (incl. with collective customers, reserves) excluding intragroup transactions 100.9% within Crédit Agricole 100.3% and accrued interest 101.1% 100.9% (1) Calculated on the basis of outstandings, not netted for available collateral and guarantees 33 l Credit Update May 2018

34 RISKS CRÉDIT AGRICOLE GROUP Crédit Agricole Group: French and retail credit risk exposures predominant By geographic region Dec-17 Dec-16 France (retail banking) 41% 41% France (excl. retail banking) 29% 29% Western Europe (excl. Italy) 9% 9% Italy 8% 7% North America 5% 6% Asia-Pacific (excl. Japan) 3% 3% Africa and Middle-East 2% 2% Japan 1% 1% Eastern Europe 1% 1% Central and South America 1% 1% Total 100% 100% By business sector Dec-17 Dec-16 Retail banking 49% 49% Non-market service/public sector/local authorities 12% 10% Energy 5% 5% Real estate 4% 3% Other non-banking financial activities 4% 5% Banks 3% 3% Agriculture and Food processing 3% 2% Retail/Consumer goods industries 2% 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 May 2018

35 RISKS Crédit Agricole S.A.: market risk exposure CRÉDIT AGRICOLE S.A. 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 31 March 2018: 7m 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 31 March 2017 Minimum Maximum Average 30/03/ /12/2017 Fixed income Credit Foreign Exchange Equities Commodities Mutualised VaR for Crédit Agricole S.A l Credit Update May 2018

36 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

37 FRENCH HOUSING MARKET Favourable structural fundamentals 52 Home ownership ratio in Europe (in % of total households) Strong demand-side factors Lower rate of home ownership (64.9% of French households were owner-occupiers in 2016) compared with other European countries (69.3% 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 according to Crédit Agricole s economic department Developers are cautious, adjusting their supply to fluctuating demand. The stock of new housing units for sale is limited, and 70% of it was still at planning stage in Q4 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 : 2016, Eurostat France: housing starts and permits (in thousands,12-m aggregate) Source : French Ministry of Ecology Permits Housing starts Households' housing debt ratio (% housing debt / disposable income) France Germany Spain UK Source : Central Banks 37 l Credit Update May 2018

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 2015 Currently, house prices are bottoming out in Spain and in Italy, accelerating in the Netherlands, and growth is slowing down in Ireland and in the UK (significantly in the UK, partly due to the Brexit process) In France, a clear rebound was been experienced from : housing sales reached record levels and prices accelerated, albeit modestly For existing dwellings, the number of sales was up 15% in 2015 and 6% in It reached a historical record level in 2017: units, up by 15% For newly-built homes, the number of sales rebounded by 15% in 2015 and by 20% in In 2017, the number of sales remained stable at a high level For existing dwellings, prices were stable in 2015 and slightly up, by 1.6%, in Prices accelerated gradually in 2017, up by 4%. Prices in Paris rebounded more strongly, 8.6% in 2017 In 2018, transaction volumes will remain high. Yet, they are expected to fall slightly, by -6%, due to higher lending rates, higher prices, and changes in the Pinel buy-tolet scheme and the PTZ interest-free loan (cf. next slide). Price increases should reach 3% in 2018, slowing down somewhat thereafter Source : Halifax, Ministerio de Fomento, INSEE, DS France: sales of newly-built homes (in thousands per quarter) On market Sales Source : French Ministry of Ecology France: existing dwellings (sales and prices) Sales volumes (in thousands, left scale) Annual change in prices (in %, right scale) Forecasts Source : CGEDD, Notaries, Crédit Agricole forecasts % 38 l Credit Update May 2018

39 FRENCH HOUSING MARKET Negative and positive economic environment factors Positive economic factors but higher prices GDP growth is more sustained: 2% in 2017 and 1.9% in 2018, after 1.1% in The unemployment rate is decreasing: 9.1% in 2017 and 8.5% in 2018 after 9.8% in 2016 Selling prices remain quite high and are recovering. Households real estate purchasing power rose significantly in recent years, due to the sharp drop in lending rates, whereas prices had fallen very little. This is starting to wane, however, as prices are rising again and lending rates are slightly increasing Two recovery factors, record low lending rates and housing support plan to become less supportive in 2018 Long-term fixed-rate mortgage lending rates declined again in 2016, reaching a record low of 1.5% in December. Rates rose slightly in 2017, reaching 1.61% in December. These record low levels stimulated sales through a windfall effect. OAT and lending rates should rise gradually in 2018 (improving economic outlook in the Eurozone, gradual increase in US long-term rates, reduction of bond purchases by the ECB in 2018). The twin trend of rising lending rates and rising prices could lead to a less upbeat market in 2018 The new housing market was boosted by two measures in : the Pinel scheme for rental investment, with 6, 9, and 12-year options, including the possibility of renting to parents or children and a limitation on rent caps; and 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 is being implemented. The main objectives are the freeing-up of public and private building land and a simplification of standards, to bring down prices in newly built housing. Those measures are positive, but their impact will not be immediate. The Pinel scheme and the PTZ interest-free loan are extended for four years, which is quite positive. However, they are gradually refocusing on tight areas (the Greater Paris region, the Côte d Azur, main large cities). This could lead to a 9% 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) 3,5 3,0 2,5 2,0 1,61 1,5 1,0 juil.-13 janv.-14 juil.-14 janv.-15 juil.-15 janv.-16 juil.-16 janv.-17 juil.-17 janv.-18 Source : Banque de France, Crédit Agricole S.A. 39 l Credit Update May 2018

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 May 2018

41 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

42 CRÉDIT AGRICOLE HOME LOAN SFH Crédit Agricole: leader in home finance Crédit Agricole Group is the unchallenged leader in French home finance 350.6bn in home loans outstanding at end Q % Crédit Agricole Group market share* in French home loans at end Q4-17 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 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 May 2018

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 (43% at end-2017) Final losses remain very low: 0.021% in 2017 *Doubtful loans and irrecoverable loans 0.021% Crédit Agricole Group final losses on French home loans in l Credit Update May 2018

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 2016 New loans 2016 Outstanding 2017 New loans 2017 Mortgage 32.3% 28.4% 31.7% 28.3% Mortgage & State guarantee 4.3% 4.5% 4.3% 3.9% Crédit Logement 23.2% 25.8% 23.2% 25.2% CAMCA 27.6% 30.9% 29.2% 33.0% Other guarantees + others 12.6% 10.5% 11.5% 9.6% Total 100.0% 100.0% 100.0% 100.0% Source: Crédit Agricole Scope: Crédit Agricole Group French Home Loans 44 l Credit Update May 2018

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 May 2018

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 Over-collateralisation 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 May 2018

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 May 2018

48 CRÉDIT AGRICOLE HOME LOAN SFH Liquidity and market risk monitoring Liquidity and interest rate risks Average life of the cover pool (including over-collateralisation) remains shorter than cover bonds (CB) notably following: - the March 2016 LM exercise - 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 over-collateralisation, with stressed interest rate and Conditional Prepayment Rate (CPR) scenarios Currency risk A limited currency risk fully hedged through cross currency swaps with internal counterparty Source: Crédit Agricole S.A., figures at end-march l Credit Update May 2018

49 CRÉDIT AGRICOLE HOME LOAN SFH Cover pool at end-march 2018 Total outstanding current balance Number of loans Average loan balance Seasoning Remaining term 87 months 159 months WA LTV 61.58% Indexed WA LTV 61.23% Interest rates Guarantee type distribution Occupancy Origination Key eligibility criteria 91.00% fixed 9.00% variable, capped Mortgage : 68.2% (of which 13.9% with additional guarantee of the French State) Crédit Logement guarantee : 24.2% CAMCA guarantee : 7.7% 80.8% 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 49 l Credit Update May 2018

50 CRÉDIT AGRICOLE HOME LOAN SFH Programme features at end-march 2018 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 46 series - 53 tranches 26.43bn 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 May 2018

51 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

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 May 2018

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 16.3bn at end-december l Credit Update May 2018

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 At end-december l Credit Update May 2018

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 AA-) 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 May 2018

56 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Structural features Programme 10bn programme of Obligations Foncières, with 3n 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 May 2018

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 May 2018

58 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-march bn eq. drawn ECA loans* Total commitment of 5.8bn eq. 188 loans Sector mix (% of drawn amounts) 30% aircraft (all aircraft loans are secured by mortgages) 23% Defence 46% others Strongly rated guarantors (% of drawn amounts) 40% France, rated Aa2/ AA/ AA (BPIFRANCE ASSURANCE EXPORT) 16% Germany, rated Aaa/ AAA/ AAA (mainly EULER-HERMES and LAND SCHLESWIG HOLSTEIN for 1%) 15% UK, rated Aa2/ AA/ AA (UKEF) Enhancement of the pool diversification by inclusion of high quality guarantors of which mainly Finland (FINVERA), Korea (KSURE), USA (EXIMBANK), Switzerland (SERV). * 4.8bn transferred at end-march 2018 to CA PS SCF, of which: 4.6bn with post transfer formalities completed and, 0.2bn with post transfer formalities in progress. 58 l Credit Update May 2018

59 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Cover pool at end-march 2018 Borrower country mix Well diversified among 34 countries Currency mix (% of drawn amount) 52% EUR 45% USD 3% AUD Borrower interest rate 38% fixed rate 62% floating rate Cover pool maturity Average residual life : 4.1 years Average residual term : 7.7 years Average initial maturity : 12.2 years Seasoning of the pool : 4.5 years 59 l Credit Update May 2018

60 CRÉDIT AGRICOLE PUBLIC SECTOR SCF Programme features at end-march 2018 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 May 2018

61 CONTENTS 1. INTRODUCTION 2. CRÉDIT AGRICOLE GROUP Q1-18 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 May 2018

62 1. Key Data 62 l Credit Update May 2018

63 KEY DATA Crédit Agricole Group Leading French co-operative bank 9.7mn mutual shareholders and 2,447 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); 139,000 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 574.4bn at end Q1-18 Leading market shares in non-financial customer deposits and loans in France: 24.4% and 21.7% respectively at end Q4-17 (1) Leading banking Group in home loans, with outstandings in respect of Regional Banks and LCL of 350.6bn at end Q1-18; market share of 30.8% at end Q4-17 (1) No. 1 insurance Group in France by written premiums (2) ; 14.4% market share of life insurance outstandings through RB and LCL networks at end Q4-17 (1) No. 1 bancassurer in France and in Europe (2) No. 1 asset manager in France and in Europe by AUM (3) A leading consumer credit provider in Europe (4) Resilient customer-focused universal banking model Retail banking and related activities account for 87% of Crédit Agricole Group s underlying net income Group share (excl. Corporate Centre) at end-q1-18 Solid fundamentals Stated net income Group share: 1,429m at Q1-18 (-10.7% Q1/Q1); underlying net income Group share: 1,352m at Q1-18 (-18.3% Q1/Q1) Shareholders equity: 101.8bn at end Q1-18 vs. 99.2bn at end Q1-17 B3 CET1 FL ratio: 14.6% at end Q1-18 vs. 14.5% at end Q1-17 Phased-in leverage ratio: 5.4% at end Q1-18 vs. 5.7% at end Q1-17 (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 Q4-17 vs. 175% at end Q4-16, far above 100% requirement Estimated TLAC ratio excl. eligible senior preferred debt of 21% at end Q1-18 vs. 20.5% at end Q1-17, as % of RWA; estimated MREL ratio excl. potentially eligible senior preferred debt of 8.3% at end Q1-18 vs 8.4% at end Q1-17 as % of prudential balance sheet; and of ca. 38% at end Q1-18 vs. ca. 35% at end Q1-17 as % of RWA Liquidity reserves: 244bn at end-q1-18 vs. 255bn at end Q1-17; liquidity reserves to ST debt ratio of 277.3% at end Q1-18 vs % at end Q1-17; average LCR over 12 months: 135% at end Q1-18, > ca. 110% MTP target at end-q1-17, and NSFR > MTP target of >100% at end Q1-18 and Q1-17 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, 08/12/2017 (3) IPE Magazine 06/2017, based on 31/12/16 total AUM (4) CACF 63 l Credit Update May 2018

64 KEY DATA Crédit Agricole S.A. and Crédit Agricole Group consolidated balance sheets at 30/03/2018 bn Assets CA Group Crédit Agricole SA Liabilities CA Group Crédit Agricole SA Cash and Central banks Central banks Financial assets at fair value through profit or loss Financial liabilities at fair value through profit or loss Financial assets at fait value through other comprehensive income Available for sale financial assets - - Due to banks Due from banks Customer accounts Loans and advances to customers Debt securities in issue Debt securities 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, ,572.2 Total liabilities 1, , l Credit Update May 2018

65 2. Group Structure 65 l Credit Update May 2018

66 GROUP STRUCTURE Crédit Agricole Mutual Group: customer-focused universal banking model 2,447 (2) Local Credit Co-operatives ~25% (through CCI/CCA) 9.7 m (2) mutual shareholders 38 Regional Banks (excl. RB of Corsica) ( 1) 100% Sacam Mutualisation 56.6% (3) via holding company (SAS La Boétie) 27 m (2) retail customers in France 52 m (2) customers worldwide 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 of Group subsidiaries 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 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, 2017 (3) At 31 March, l Credit Update May 2018 Public (of which 4.0% employees and 0.1% treasury shares) 43.4% (3) 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 May 2018