CRÉDIT AGRICOLE S.A. : UPDATE A.02 OF THE 2007 REGISTRATION DOCUMENT (D ) Update A.02 FINANCIAL REVIEW AT 31 MARCH 2008 CRÉDIT AGRICOLE S.A.

Transcription

1 CRÉDIT AGRICOLE S.A. : UPDATE A.02 OF THE 2007 REGISTRATION DOCUMENT (D ) Update A.02 FINANCIAL REVIEW AT 31 MARCH 2008 CRÉDIT AGRICOLE S.A.

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3 Contents FINANCIAL REVIEW OF CRÉDIT AGRICOLE S.A. AT 31 MARCH 2008 P. 4 ADDITIONAL INFORMATION: P. 46 PRESS RELEASE 15 MAY 2008: 1ST QUARTER RESULTS AND ANNOUNCEMENT OF THE CAPITAL INCREASE P.46 APPENDIX: SLIDE ANNOUNCING THE CAPITAL INCREASE P.58 SELECTED EXPOSURES BASED ON THE RECOMMENDATIONS OF THE FINANCIAL STABILITY FORUM P.75 PRESS RELEASE 15 MAI 2008: APPOINTMENTS P.75 PERSON RESPONSIBLE FOR THE REGISTRATION DOCUMENT AND UPDATES P. 76 STATUTORY AUDITORS P. 77 CROSSREFERENCE TABLE P. 78 AMF Only the French version of this update has been submitted to the Autorité des Marchés Financiers (AMF). It is therefore the only version that is binding in law. The original French version of this update was registered with the AMF on 20 May 2008, in accordance with article of the AMF s Internal Regulations. It updates the registration document registered with the AMF on 20 March 2008 under number D It may not be used in support of a financial transaction unless accompanied by a transaction circular approved by the AMF. Crédit Agricole S.A. Update A.02 3

4 FINANCIAL REVIEW OF CRÉDIT AGRICOLE S.A. AT 31 MARCH 2008 On 15 May 2008, Crédit Agricole S.A. presents its 2008 first quarter results 2008 first quarter results 15 May first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Disclaimer This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts under the meaning of European Regulation n 809/2004 from 29 April 2004 (chapter 1, article 2, 10). This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, they are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset depreciation. The readers must take all these risk factors and uncertainties into consideration before making their own judgement. Applicable standards and comparisons The figures in this presentation have been drawn up in accordance with the IFRS accounting standards adopted by the European Union first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 4

5 Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking Regional Banks French retail banking LCL International retail banking Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Financial structure Crédit Agricole Group highlights Appendices 3 Results for Q and 2007 first quarter annual results 15 March May 2008 Crédit Agricole S.A. consolidated results Q1 08 A solid base of recurring income Net income, Group share: 892m Substantial impairment of subprime portfolio: 1,249m (compared to 4,290m in 2007) Ratio Tier one: 7.7% first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 5

6 Crédit Agricole S.A. consolidated results Severe adverse impact on earnings from Corporate and investment banking m Net banking income Operating expenses Gross operating income Riskrelated costs Operating income Equity affiliates Net income on other assets Tax Net income Net income Group share Cost/income ratio ROE Q108 4,110 (3,218) 892 (446) (205) 1, % 9.6% Q107 5,015 (2,959) 2,056 (223) 1, ,065 (480) 2,793 2, % Δ Q1/Q1 (18.0%) 8.8% (56.6%) % (75.7%) (9.5%) (60.4%) (57.3%) (64.0%) (66.4%) +19.3pts Δ Q1/Q1*** +2.9% +5.1% +0.0% Net banking income reflects the businesses 2.9% increase, excluding CIB, but is impacted by substantial impairment of subprime portfolio ( 1.2bn) and by changes in scope of consolidation or nonrecurring impacts: Integration of 100% of Cariparma FriulAdria in Q108 ( 285m) Gains on disposals*: 882m in Q108, 448m in Q107 businesses operating expenses are 5.1% up excluding CIB and Cariparma s impact on scope of consolidation Gross operating income mainly reflects the impact of the impairment of subprime portfolio; it is stable yearonyear for businesses excluding CIB Riskrelated costs reflect changes in scope of consolidation and increase in collective provisions Net income on other assets decreases by 643m** 5 *Intesa in 2007; Suez in 2008 ** Intesa gain on dilution in 2007; Newedge in 2008 *** Businesses excluding CIB, Proprietary asset management and other activities and excluding change in scope of consolidation due to Cariparma 2008 first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Balanced contribution from business lines (except Corporate and investment banking) to pretax income Business lines showed resilience in prevailing climate (stability of pretax income Q1/Q1) Acceleration of our international growth engines Pretax income excluding Corporate and investment banking 1,511 million Q107 1,511 million Q108 Asset management, insurance, private banking 40.3% Specialised financial services 15.8% Regional banks 20.6% LCL 14.4% IRB 8.9% Retail banking 43.9% Asset management, insurance, private banking 40.3% Regional banks 17.9% LCL 15.8% IRB Specialised 13.3% financial services 12.7% Retail banking 47.0% Specialised business lines 56.1% Specialised business lines International : 15.7% 53.0% International : 19.5% first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 6

7 Crédit Agricole S.A. consolidated results Business lines with solid fundamentals Change in NBI ( m) 1, % 1,371 ( m) 1, % 1,823 March 07 March 08 Retail banks* March 07 March 08 Specialised businesses** Change in GOI ( m) ( m) % % 542 March 07 March 08 Retail banks* March 07 March 08 Specialised businesses** Change in pretax income ( m) 663 ( m) 5.5% +7.1% March 07 March 08 March 07 March 08 Retail banks* Specialised businesses** *LCL, Regional banks equity accounted for, international retail banking including 100% of Cariparma FriulAdria over Q108 **Specialised financial services and asset management, insurance and private banking first quarter results 15 May 2008 Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking Regional Banks French retail banking LCL International retail banking Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Financial structure Crédit Agricole Group highlights Appendices 8 Results for Q and 2007 first quarter annual results 15 March May 2008 Crédit Agricole S.A. Update A.02 7

8 French retail banking Regional Banks Solid contribution to the Retail banking business line m Q108 Q107 Δ Q1/Q1 Δ Q1/Q4 Revenues from customer business up 0.5% yearonyear Operating expenses remained tightly controlled despite continued investment in business expansion Riskrelated costs remained under control, stable over the year Aggregate NBI Adjusted NBI* Operating expenses Aggregate gross operating income Riskrelated costs 3,030 2,953 (1,733) 1,220 (204) 3,200 3,124 (1,729) 1,395 (204) (5.3%) (5.5%) +0.2% (12.5%) (0.1%) (4.4%) (7.6%) (4.4%) (11.7%) (33.4%) Contribution of 201m from the segment, i.e. 43% of the total for Retail banking with ROE of 31.0% (before Crédit Agricole S.A. s tax charge) Operating income Cost/income ratio 1, % 1, % (14.7%) +3.3pts (5 5%) +1.9pt But aggregate NBI for the Regional Banks was down to about 3bn (5.5% decrease) due to a high basis of comparison in 2007 (good results in financial management) and increase in the cost of funds Net income accounted for at equity (25%) Change in share of reserves Share of income from equity affiliates (13.1%) (12.9) (13.0%) (9.7%) x % Tax** (70) (71) (1.8%) nm Net income (16.3%) (9.8%) * Aggregate figures for the 38 equityaccounted Regional Banks, adjusted for dividend and similar income received by the Regional Banks from Crédit Agricole S.A. ** Tax impact of dividends received from the Regional Banks first quarter results 15 May 2008 French retail banking Regional Banks Persistently robust business momentum in a less buoyant environment Customer assets 2.3% rise in customer deposits outstanding fed by growth of nearly 29% in time deposit accounts and 6% in passbook accounts, despite a decline of over 8% in securities and mutual funds following the market plunge Persistently strong growth in loans outstanding despite slowdown in business Loans to business customers up sharply (17.8%) and substantial increase in shortterm loans Residential mortgage loans up 11.5% with continued improvement in margins bn bn * % 491,4 March 06 March 07 March 08 Customer loans % % March 06 March 07 March 08 * Including financial customers first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 8

9 French retail banking Regional Banks Persistently robust business momentum in a less buoyant environment Le Crédit Agricole: continued proximity to customers 28 new branches and 72% of staff in contact with customers 100,000 new accounts opened, primarily with younger customers Development of onbalance sheet deposits in riskfree savings products offering an attractive return ( sustainable development passbook accounts, "livrets boostés" passbook accounts, time deposits) Persistently strong growth in property, motor and comprehensive household insurance (+10.5%) and in healthcare insurance (+23.4%) Continued innovation in all business lines Development of online residential mortgages Product range opened up to new customers: Cap découverte, a life insurance plan for young working people (162,000 policies in 3 months) Launch of premium mutual funds (Magnetis, Optimance) Continued enhancement of service range with a remote surveillance and assistance offering that takes advantage of synergies with residential mortgages, the property business and homeowner's insurance first quarter results 15 May 2008 French retail banking LCL Challenges and targets of Crescendo 2 development plan Underpinned by the attractiveness of its new brand, a successful reorganisation of its commercial capability and an innovative marketing policy that has enabled it to deliver its best performance in 10 years, notably in attracting new accounts, LCL can now move into a phase of steppedup growth. The Company will dedicate an investment of 800m to this over the next three years One aspect of the Crescendo 2 corporate strategic plan is to enhance the company's competitive plan (presented in Q22007) and another aspect dedicated to growth: A vision for LCL in 2010 To be the urban bank targeting mid to highend customer segments, which is fully in keeping with the social trends and is successful because it makes a commitment to its customers The plan has three drivers Development differentiated by market Optimising and modernising the network Mobilising the Company around operational excellence and customer satisfaction first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 9

10 French retail banking LCL Operating income up sharply NBI up 3.1% m Q108 Q107 Δ Q1/Q1 Operating expenses stable over the quarter, up 0.5% Net banking income % Cost/income ratio improved by 1.9 point over the quarter Operating expenses (645) (642) +0.5% Riskrelated costs wellcontrolled, at 35bp of riskweighted assets, vs. 33bp in Q12007 Operating income up sharply (+9.5% on Q1 2008) Gross operating income Riskrelated costs Operating income 281 (43) (39) % +11.1% +9.5% Net income Group share % Cost/income ratio 69.6% 71.5% 1.9 pt Allocated capital ( bn) 2.0 ROE 31.2% first quarter results 15 May 2008 French retail banking LCL Strong business momentum bn Customer assets Growth in customer deposits was stunted by the downturn in financial markets over the quarter (16.2% drop in CAC 40 yearonyear). Modest overall growth obscures the rise in interestbearing accounts (up 4.2%), sight deposits (+2.8%) and life insurance (+5.1%) in a difficult market % % Mortgage loans outstanding (up 11.2%) topped the 40bn mark and, with medium to long term loans to SMEs (outstandings up 21.6%), contributed to the solid 10.8% advance in total loans outstanding bn March 06 March 07 March 08 Customer loans +11.7% % March 06 March 07 March first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 10

11 French retail banking LCL Strong business momentum LCL delivered a solid business performance in each of its four markets, in a difficult climate: Retail customers An excellent quarter for new business, with 39,000 net new individual accounts following actions targeting young customers and the rollout of highly attractive offers (Gulliver and Beaux jours de LCL ) Residential mortgages: continued upturn in margins Successful launch of the innovative "Option System'Epargne" product, sold to over 1,000 customers per day. This unprecedented option in France enables customers to save over time, when they pay for purchases with their Indigo, Visa Cléo or Visa Premier card Highly promising launch of new nonlife insurance range; production is in line with highly ambitious targets Small business customers Number of new accounts opened up sharply (26%), owing to advisers dynamic, proactive approach Success of Solution Trésorerie Pro loan promotion operations, with 13% more cash lines provided than in Q Private banking Q1 in line with highly ambitious sales and financial targets Growth momentum in advised asset management and strong growth in EMTN Corporates Persistently solid loan production driven by Corporate Finance, with higher margins Higher inflows, in terms of number of transactions and capital, owing primarily to electronic banking activities Draft agreement signed between Corporate Banking and Interfimo, an LCL subsidiary, to enable "SME Professional Firms to access high valueadded services offered by LCL Corporate Banking LCL (corporate finance, cash management, interest rate hedging). The agreement is the extension of an existing partnership, which has amply demonstrated its effectiveness first quarter results 15 May 2008 International retail banking Q1: building market share on a stable base Robust earnings growth reflecting the new scope m Net banking income Q Q Δ Q1/Q % Continued improvement for Cariparma FriulAdria (NBI up 6.1%, GOI up 28.5% on previous quarter) Operating expenses Gross operating income (521) 261 (308) % +58.7% Emporiki transformation continues Riskrelated costs (99) (65) +51.1% Excluding Italy and Greece, NBI advanced by nearly 4% on previous quarter, excluding the effect from consolidation of 100% of Lukas in business line results Development of a structured, solid, innovative international retail banking model applicable to all entities in keeping with their special attributes Operating income Equity affiliates Pretax income Net income Group share Cost/income ratio Allocated capital ( bn) % % +63.7% +9.4% +49.5% +49.5% +1.4 pt ROE 13.0% first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 11

12 International retail banking Cariparma FriulAdria: Italian branch network fully operational Conquering market share after a year dedicated to integration in 2007 Continued growth in inflows and lending Deposits up 2.8% over the quarter, loan production up 2.9% New branch openings continued at the same pace, expansion to new customers launched: 12 new branches opened in the first quarter alone Including creation of five business centres dedicated to large corporate customers, with relationships established with 500 groups The bank has won recognition for its performance: It was awarded a prize for value creation at the Milano Finanza Global Awards An operational, competitive banking platform A new identity is being established, primarily by changing the branch façades The Italian network is a significant advantage in the Agos/Ducato merger and for the integration of Po Vita Expenses were down from the previous quarter, pushing up GOI by 28.5% and net income, Group share, by 25.7% Net banking income 386m GOI 180m Pretax income 152m Net income, Group share 71m first quarter results 15 May 2008 International retail banking Emporiki: business revival held back by the crisis Transformation already bearing fruit Longterm rating from S&P upgraded to A+ (April 2008): the sign that the bank's transformation since its acquisition is producing positive effects Growth momentum initiated in the corporate segment Increased density of dedicated marketing system: 14 corporate centres as of 31/03/2008 Substantial growth in lending to corporate customers: in the first quarter, loans outstanding were up 5% in the SME segment and up 18% in the large corporates and institutions segment Q affected by the crisis In the first quarter, Emporiki registered a decline in the value of its trading portfolio, which shaved 23m off net banking income This effect was partially offset by a substantial (15%) cut in expenses compared with the previous quarter Net banking income 178m GOI 27m Net income, Group share 14m first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 12

13 International retail banking A structured, solid, innovative model A new branch concept internationally Target: to build a uniform, visible and consistent branch network internationally, in keeping with cultural and competitive attributes in the local market, while transforming the organisations and developing the businesses The new international branch concept will scale up the networks and allow them to grow A concept that is being deployed in three pilot subsidiaries: Crédit du Maroc, Crédit Agricole Egypt and Meridian Bank Core Banking System: a benchmark IT system Target: to build a common IT platform that meets the combined ambitions of the Group and its international retail banking subsidiaries A programme overseen by central and local governance entities An industrial, mutual project that will serve as a solid foundation International training program: an international training platform Target: to create a common culture and foster sharing of expertise A shared training architecture to adjust to the needs of the subsidiaries and their local context, with online training Common crossfunctional projects: the programme includes training to the new international branch concept together with its deployment Close synergies with the Group's other training and development projects first quarter results 15 May 2008 Specialised financial services Business line showed good resilience NBI resilient owing to strong growth engines abroad, which accounted for 44% of the total at 31/03/08 m Q108 Q107 Δ Q1/Q1 Δ Q1/Q1 on a like for like basis* Drop in net income, Group share due to an unfavourable base effect (gain on the disposal of Finconsum in Q107) and the transfer of 100% of Lukas' net income to IRB in Q1 08. On a likeforlike basis*, net income fell by 4% Net banking income Operating expenses Gross operating income Riskrelated costs 725 (396) 329 (140) 728 (389) 339 (122) (0.3%) +2.0% (2.9%) +15.3% +1.9% +2.7% +0.9% +16.6% Factoring and lease finance: growth and increased density of European coverage In factoring, factored receivables rose to 10.2bn and there are new growth prospects, with the opening of a subsidiary in Italy in the beginning of April 2008 Lease finance: production moved up sharply (up 23.5%** on Q107), raising outstandings to 13.8bn and entry into Europe's second largest leasing market was announced with the creation of a subsidiary in Italy: 600m increase in production expected in 2008 Operating income Equity affiliates Net gain/(loss) on disposal of other assets Pretax income Net income, Group share Cost/income ratio Allocated capital ( bn) ROE % % % (13.1%) +17.6% nm (19.6%) (21.9%) +1.2pt (8.3%) +17.6% nm (7.7%) (4.0%) +0.4pt 20 * Excluding changes in scope of consolidation and changes in business line allocations, and excluding PV Finconsum in Q107 ** +16.8% on a like for likebasis 2008 first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 13

14 Specialised financial services Consumer finance: resilient The business showed resilience in a deteriorating climate and despite intensifying competition: production rose by 6.8% yearonyear in Q108, driven by international business (up 9.7%) Growth in outstandings: 10.5% (7.7% on an unchanged consolidation basis) owing to development of partnerships with Group networks and international growth (12% in Italy with Agos, 62% in the Czech Republic with Credium, 47% in Greece with Credicom, x6 in the Netherlands with the integration of Interbank, etc.) Continued creation of growth engines: after acquiring 100% of Agos, the creation of Italy's leader in consumer credit via the merger of Agos and Ducato*** was announced bn Managed loan book Geographical breakdown of loans outstanding bn Δ March/March Δ March/March* 60.9** ** Total +7.7%* International +9.2% 5.4 Regional Banks partnership +13.2% LCL Partnership +2.5% France +6.0% 13.7 Thirdparty and JV +4.0%* Proprietary outstandings +10.4%* March 06 March 07 March 08 March 06 March 07 March * On a likeforlike basis ** Including all FGAFS loans outstanding *** subject to the required approvals from regulatory authorities 2008 first quarter results 15 May 2008 Asset management, insurance and private banking Business line resilient Q1 was impacted by a difficult climate but the business line's marketing efforts were unchanged Total net new inflows for asset management, life insurance and private banking amounted to 3.8bn Assets under management excluding double counting amounted to nearly 590bn; decline confined to 2.1% compared with an excellent first quarter of 2007 Nonlife insurance business remained on a strong growth track On the whole, the business line stood up well GOI advanced by 1.8% yearonyear, primarily due to robust momentum in life insurance Pretax income was stable It continued to buildup its growth engines First quarter of consolidation for NBCI in Private banking Strong growth for entities abroad m Net banking income Operating expenses Gross operating income Riskrelated costs Operating income Equity affiliates Pretax income Net income Group share Cost/income ratio Allocated capital ( bn) ROE Q108 1,098 (484) 614 (5) % % Q107 1,058 (455) % Δ Q1/Q1 +3.7% +6.4% +1.8% nm +0.9% nm +0.0% (5.8%) +1.1 pt first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 14

15 Asset management, insurance and private banking Asset management: leadership strengthened in a difficult climate In a difficult business environment, CAAM reinforces its market shares in France and in Europe 18.9% market share of French mutual funds at 31/03/2008 compared to 17.9% at 30/06/ % market share of European mutual funds Excellent inflows in money market funds compensates for the decrease of assets under management of equity and absolute performance products linked to increase of risk aversion A negative market impact ( 20.8bn) weights on global assets outstanding Continued international development with the creation of a JV in China with Agricultural Bank of China bn Assets under management* Assets under management by asset class Inflows 3.2 Market Δ Q1/Q1 AUM 2.8% 13% 18% Money markets International* 4.0% 43% 44% Bonds March 07 Dec 07 March 08 France 2.6% 15% 12% 9% 8% 20% 17% March 07 March 08 Equities Diversified Structured, alternative and other * After unwinding of CAAM Sgr JV effective in Q and extrapolated backwards to first quarter results 15 May 2008 Asset management, insurance and private banking Life insurance: business performance maintained Despite a difficult environment for bancassurance companies, the Group maintained its performance and continued to capture market share Premium income sustained, at 6.1bn owing to sources of growth abroad Development of customer base: 162,000 new customers in Q108 attracted by Cap Découverte product Predica awarded Trophée d Or du Revenu prize for the Floriane highend market product Strong growth in provident insurance (premium income up 24% on Q107) bn Assets under management* Δ March/March Breakdown of investment (excl. unitlinked) 3.4% 3.1% 2.3% 0.1% 2.6% 2.4 Real estate Q107 Q108 Assets under management +5.7% Unitlinked +6.9% +5.4% Treasury 73.9% 77.8% Alternative products Fixed income Equity 18.0% 16.4% Q107 Historical value Q108Historical value * Mathematical provisions excl. Po Vita first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 15

16 Asset management, insurance and private banking Nonlife insurance: persistently strong forward momentum Solid growth persisted in first quarter, with Predica writing over 335,000 policies, and premium income rising by 26.1% to 716 m with the consolidation of AF IARD Significant marketing efforts continued, targeting farmers and professionals as well as provident products in France and abroad Continued development of personal services with VIAVITA m 715,9 Premium income Δ March/March Q106 Q107 Q108 Premium income +19.6%* Farmers and small +30.3% businesses Car +11.4%* Comprehensive 13.8%* household Personal accident, +34.6%* health Legal protection and +12.1% other * On a likeforlike basis, excl. AF IARD first quarter results 15 May 2008 Asset management, insurance and private banking Private banking: business line's growth obscured by adverse market conditions Business growth Business revitalised in France: inauguration of the apartment reception concept at LCL AUM of NBCI in the Bahamas consolidated in Q1 for the first time New prospects for expansion with a licence to be obtained in Bahrain in Q208 In a difficult climate Unfavourable currency impact adversely affected international business: ( / $ exchange rate) Market performance held down inflows bn Assets under management Market Inflows and Fx Scope Δ March/March AUM 1.2%* France 1.3% International 1.1%* March 07 Dec 07 March 08 * On a likeforlike basis first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 16

17 Corporate and investment banking Q108 results severely affected by market turbulence New impairment charges were recognised during the quarter due to the crisis in the US residential mortgage market, with a negative impact of 646m on net income m Net banking income Operating expenses Gross operating income Q108 (81) (936) (1,017) Q107 1,620 (913) 707 Q108* 860 (936) (76) Q107* 1,753 (913) 840 Δ Q108 / Q1 07* (50,9%) +2.5% Excluding the crisis impact, Q108 net income, group share was a loss of 149m, with a mixed performance: Respectable performance in brokerage and in financing activities Growth in fixed income business excluding credit Credit and equity markets severely affected by widening spreads and the fall in market indices Against this backdrop, operating costs were wellcontrolled Riskrelated costs Operating income Equity affiliates Net income on other assets Pretax income Tax Net income Group share (170) (1,187) 32 0 (1,155) 381 (795) (202) 539 (126) (202) 32 0 (170) 42 (149) (242) 632 Cost/income ratio nm 56.4% nm 52.1% * Excluding impact of subprime crisis, p first quarter results 15 May 2008 Financing activities ( m) Revenue growth Revenues in corporate banking were stable (down 1%) excluding sales of repackaged debt in Q107 and a 34m discount on syndication loans in Q108 Structured finance: solid performance across all business lines over the quarter. Only acquisition finance saw a slowdown in business ( bn) Structured finance Q105 Q106 Q107 Q108 Commercial banking and other Change in risk weighted assets The cost/income ratio remained at about 40% Riskrelated costs primarily registered a 98m increase in collective provisions, which totalled 1,226m at 31 March No new significant single deal during the quarter Over the quarter, Basle II riskweighted assets declined in investment banking, reflecting: positive impact of foreign exchange more stringent selection criteria in origination good distribution capacity maintained in a more difficult climate in Q108 31/03/07 31/12/07 31/03/08 CAD Bâle II first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 17

18 Capital markets and investment banking ( m) ( m) ,124 Revenue growth Equities Q107 Q108 Fixed income Trends in VaR (1 day 99%) Q1 hurt by highly turbulent markets Revenues from equity business (equity derivatives, brokerage and advisory services) Valuation of positions in equity derivatives severely affected by market conditions, offsetting a good business performance over the period The CA Cheuvreux and CLSA brokerages stood up well despite decline in stock indices Newedge off to a satisfactory start Advisory business stable Revenues from fixed income business (interest rate, foreign exchange, credit, treasury, commodities) Fixedincome business resilient in a volatile market Sharp rise in treasury and foreign exchange business Underachievement from credit activities (cash and correlation) in the wake of widening spreads and market dislocation Operating costs (excluding Newedge) down 3.6% yearonyear and down 2% quarteronquarter Riskrelated costs ( 69m) consisted of onetime operations, primarily the unwinding of repo transactions with a Carlyle fund 50 0 April 07 29avr.07 May 07 29mai07 29juin07 June 07 July 07 29juil.07 Aug août07 Sept sept.07 Oct oct.07 Nov nov.07 Dec déc.07 Jan janv.08 Feb févr.08 March 08 29mars08 Apr avr.08 VaR: despite the continued policy to reduce exposure to market risk, VaR was again adversely affected by market volatility * Excluding subprime crisis impact, p first quarter results 15 May 2008 Corporate and investment banking Exposure of CDO business to US property market not covered by insurers 31 March 2008 Discount rate ( m) Nominal amount Discount Net value 31/03/ /12/ /09/ /06/2007 ABS portfolio* 1, % 29% 15% 2% CDO units Mezzanine % 89% 80% 47% Super senior 3,554 1,607 1,947 45% 33% 5% 1% TOTAL 5,444 Highlights of the quarter Final loss scenarios adopted to value supersenior CDO tranches were tightened up Increase in discounts on ABSs and mezzanine CDO tranches Impact on NBI (total): 509m ABS (net of hedging): 87m Super senior CDOs: 358m Mezzanine CDOs: 64m 2,814 Valuation methodology ABS: external prices plus a stressed bid offer provision Mezzanine CDOs: valuation matrix by external ratings Super senior CDOs: the valuation obtained by applying final loss scenarios was compared with a valuation resulting from the application of ABX indices to the super senior tranches 2, * Of which 60% AAA and 32% AA. This portfolio is also partially covered by protection purchases (net value: 416m at 31/03/08 against 639m at 31/12/07) 2008 first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 18

19 Corporate and investment banking Breakdown of super senior CDO tranches ( m) Nominal amount Discount Net value Discount rate % % % % % % % 3,554 1,606 1,947 45% Attachment point 51% 51% 7% 51% 51% 40% 30% Underlying % of underlying subprime assets produced before 2006 % of underlying subprime assets produced in 2006 and 2007 % of AltA underlying assets High Grade 13% 30% 29% High Grade 37% 11% 15% High Grade 29% 30% 21% High Grade 29% 30% 21% Mezzanine 64% 21% 1% Mezzanine 28% 69% 0% Mezzanine 39% 53% 4% Methodology Discounts are calculated by applying a credit scenario on the underlying assets (mainly residential mortgage loans) of the ABSs that make up each CDO the percentage of final losses is calibrated as a function of the quality and origination date of each residential mortgage loan: subprimes produced before 2006: 14% (31/12/07: 10%) subprimes produced in 2006: 25% (31/12/07: 20%) subprimes produced in 2007: 30% (31/12/07: 20%) the period of recognition of these losses has been fixed at 40 months (with gradual recognition of losses over the period) A discount of 15% (31/12/07: 10%) was applied to the supersenior tranches that are not affected by this scenario 31 NB: detailed analysis of underlying assets implied a modification in the percentage of subprime assets when compared to 31/12/ first quarter results 15 May 2008 Corporate and investment banking Exposure to credit derivatives with monoline insurers Significant events of the quarter CDO impairment scenarios tightened up, causing an increase in exposures Increase in impairment rates for guarantors with the lowest ratings Exposure at 31 March 2008 Gross exposure: 4.9bn ( 4.1bn at 31/12/07) including 3.6bn ( 3.4bn at 31/12/07) in US residential mortgages, for a notional amount of 6.5bn ( 7.1bn at 31/12/07) Allowances and provisions for these guarantors: 2.6bn ( 2bn at 31/12/07) Net exposure: 2.3bn ( 2.1bn at 31/12/07) Impact on Q108 NBI: 696 m Analysis of net exposure on monolines at 31 March 2008 Radian Ixis Financial Guaranty 18.1% 15.0% 30.6% Security capital / XL 22.7% 13.6% FGIC Other monolines first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 19

20 Proprietary asset management and other activities Division results NBI for the quarter includes 882m in gains on disposal of our equity stake in Suez m Net banking income Q Q Δ Q1/Q1 x2.8 A 420m gain arising on the creation of Newedge, recorded under net income from other assets Operating expenses Gross operating income (236) 424 (252) (13) (6.6%) nm Private Equity NBI was 17m in Q108 and GOI of 7m Riskrelated costs Operating income (11) (24) nm nm Equity affiliates (1) (11) (94.7%) Net income on other assets 421 1,046 (59.7%) Pretax income 855 1,011 (15.2%) Net income Group share 685 1,059 (35.4%) first quarter results 15 May 2008 Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking Regional Banks French retail banking LCL International retail banking Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Financial structure Crédit Agricole Group highlights Appendices 34 Results for Q and 2007 first quarter annual results 15 March May 2008 Crédit Agricole S.A. Update A.02 20

21 Financial structure Crédit Agricole S.A. A decrease of risk weighted assets related to the transition to Bâle 2 A 7,7% tier one ratio, including a 3.6bn shareholders advance bn * Capital (shareholders equity and subordinated debt) * Dec 07 March 08 Δ March/Dec Subordinated debt and similar items +37.3% Preferred shares +3.5% Shareholders equity Group share (3.1%) Total +10.8% Riskweighted Risques pondérés assets and et Ratio CAD/CRD Cooke ratio 265.7bn 248.5bn 345.1bn 225.5bn 328.3bn 8,7% 8.6% 8,5% 8,2% 8.3% 8,2% 8,3% 8.1% 7,6% 7.7% Mars 05 Déc 05 Mars 06 Dec 07 March 08 CAD/CRD Ratio international ratio de O/w solvabilité Tier 1 dont Tier 1 35 * In December 2007, including 4,319m of deeply subordinated notes. In March 2008, including 5,487m of deeply subordinated notes and a 3.6bn shareholders' advance first quarter results 15 May 2008 Contents Crédit Agricole S.A. consolidated results Presentation of results by business line French retail banking Regional Banks French retail banking LCL International retail banking Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Financial structure Crédit Agricole Group highlights Appendices 36 Results for Q and 2007 first quarter annual results 15 March May 2008 Crédit Agricole S.A. Update A.02 21

22 Crédit Agricole Group highlights Consolidated income statement m Q108 Q107 Δ Q1/Q1 Net banking income 7,254 8,349 (13.1%) Operating expenses (5,092) (4,826) +5.5% Gross operating income 2,162 3,523 (38.6%) Riskrelated costs (661) (424) +55.8% Operating income 1,501 3,099 ( 51.6%) Equity affiliates % Net income on other assets 424 1,036 ( 59.1%) Tax (567) (928) (38.9%) Net income 1,429 3,263 (56.2%) Net income Group share 1,316 3,137 (58.0%) first quarter results 15 May 2008 Crédit Agricole Group highlights Consolidated capital bn Dec 07 March 08 Equity group share Preferred shares Subordinated debt Total riskweighted assets CAD/CRD ratio 9.6% 9.7% Tier 1 ratio 7.4% 8.1% first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 22

23 first quarter results 15 May first quarter results Appendices first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 23

24 Contents Crédit Agricole S.A. consolidated results Consolidated results by business line Movements in consolidated capital Capital allocation Trends in risk Additional information on business lines French retail banking Regional Banks French retail banking LCL Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Consolidated balance sheet at 31 March Results for Q and 2007 first quarter annual results 15 March May 2008 Crédit Agricole S.A. consolidated results Consolidated income statement by business line m French retail banking Regional Banks French retail banking LCL International retail banking Specialised financial services Asset management, insurance and private banking Corporate and investment banking Proprietary asset management and other activities Group Q107 Q108 Q107 Q108 Q107 Q108 Q107 Q108 Q107 Q108 Q107 Q108 Q107 Q108 Q107 Q108 Net banking income ,058 1,098 1,620 (81) ,015 4,110 Operating expenses (642) (645) (308) (521) (389) (396) (455) (484) (913) (936) (252) (236) (2,959) (3,218) Gross operating income (1,017) (13) 424 2, Riskrelated costs (39) (43) (65) (99) (122) (140) (5) 14 (170) (11) 11 (223) (446) Equity affiliates (11) (1) Net income on other assets , , Pretax income (1,155) 1, ,277 1,211 Tax (71) (70) (65) (71) (33) (58) (76) (62) (157) (182) (202) (143) (480) (205) Gain/(loss) on discontinued operations (4) (4) Net income (774) 1, ,793 1,006 Minority interests Net income Group share (795) 1, , first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 24

25 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m French retail banking Regional Banks Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income Operating expenses Gross operating income Riskrelated costs Equity affiliates Net income on other assets Integrationrelated costs Pretax income Tax (56) (15) (4) (62) (26) (2) (71) (16) (70) Net income Minority interests Net income Group share first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m French retail banking LCL Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income Operating expenses (627) (613) (612) (635) (641) (604) (612) (637) (642) (785) (618) (661) (645) Gross operating income Riskrelated costs (41) (31) (18) (60) (36) (35) (39) (41) (39) (34) (28) (26) (43) Equity affiliates Net income on other assets Integrationrelated costs Pretax income Tax (51) (77) (67) (65) (79) (84) (68) (71) (65) (34) (72) (78) (71) Net income Minority interests Net income Group share first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 25

26 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m International retail banking Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income Operating expenses (53) (76) (67) (71) (77) (100) (181) (267) (308) (460) (458) (537) (521) Gross operating income Riskrelated costs (2) (10) (1) (20) (4) (18) (32) (19) (65) (73) (86) (68) (99) Equity affiliates Net income on other assets (3) 3 52 Integrationrelated costs Pretax income Tax Gain/(loss) on discontinued operations Net income (1) (1) 121 (6) 101 (3) (7) 157 (67) (3) 131 (33) (4) 97 (64) (3) 187 (52) 179 (46) (58) 143 Minority interests Net income Group share first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Specialised financial services Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income Operating expenses (324) (308) (317) (342) (344) (341) (339) (366) (389) (393) (391) (404) (396) Gross operating income Riskrelated costs (97) (85) (96) (119) (102) (110) (106) (102) (122) (125) (128) (116) (140) Equity affiliates Net income on other assets (83) 5 (64) Integrationrelated costs (2) (16) (3) (4) Pretax income Tax (57) (67) (58) (66) (67) (74) (69) (69) (76) (77) (74) (83) (62) Net income Minority interests Net income Group share first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 26

27 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Asset management, insurance and private banking Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income ,086 1,058 1, ,114 1,098 Operating expenses (338) (350) (342) (434) (431) (388) (395) (466) (455) (438) (415) (494) (484) Gross operating income Riskrelated costs (6) (2) 4 (2) 2 (5) Equity affiliates (2) 2 Net income on other assets (1) (4) (2) (2) 4 (2) (6) 222 Integrationrelated costs (12) (19) 2 (4) Pretax income Tax (155) (107) (175) (198) (181) (175) (151) (150) (157) (245) (154) (226) (182) Net income Minority interests Net income Group share first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Corporate and investment banking Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income 1,033 1,119 1,107 1,197 1,394 1,495 1,243 1,324 1,620 1, (1,169) (81) Operating expenses (678) (684) (691) (760) (820) (863) (770) (869) (913) (957) (786) (881) (936) Gross operating income (33) (2,050) (1,017) Riskrelated costs (8) (19) (15) (22) (951) (170) Equity affiliates Net income on other assets 4 (1) 14 (3) (4) 3 (16) (1) Integrationrelated costs (20) (20) (18) (19) Pretax income (23) (2,973) (1,155) Tax (87) (106) (90) (97) (145) (176) (129) (126) (202) (174) 54 1, Net income (1,884) (774) Minority interests (2) Net income Group share (1,912) (795) first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 27

28 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Financing activities Investment banking Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207Q307 Q407 Q108 Q105Q205Q305Q405Q106Q206Q306Q406Q107Q207Q307 Q407 Q108 Net banking income (1,683) (650) Operating expenses (202) (210) (202) (202) (209) (217) (220) (229) (252) (234) (215) (234) (229) (476) (475) (489) (558) (611) (646) (549) (640) (661) (723) (571) (646) (707) Gross operating income (394) (2,329) (1,357) Riskrelated costs (8) (18) (16) (4) 49 (163) (101) 1 (5) (1) 1 (1) 6 (71) (788) (69) Equity affiliates (1) 1 (1) Net income on other assets 1 (7) (5) (1) 4 (2) 14 4 (4) 3 (11) Integrationrelated costs (6) (5) (5) (5) (14) (15) (13) (14) Pretax income (463) (3,117) (1,426) Tax (56) (73) (58) (59) (70) (105) (86) (82) (110) (95) (81) 9 (86) (31) (33) (32) (38) (75) (71) (44) (45) (92) (79) 135 1, Net income (328) (2,037) (959) Minority interests (8) Net income Group share (337) (2,054) (965) first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Proprietary asset management and other activities Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income (80) 8 (137) (171) (54) 41 (76) (166) (26) Operating expenses (190) (221) (199) (232) (179) (200) (223) (241) (252) (505) (217) (358) (236) Gross operating income (270) (213) (336) (403) (233) (159) (299) (407) (13) (335) (243) (351) 424 Riskrelated costs (11) (10) (59) (2) (11) 15 (8) (30) 11 Equity affiliates (4) (11) (13) 120 (10) (1) Net income on other assets (5) (5) 1, Integrationrelated costs (15) (40) (9) (20) Pretax income (296) (250) (279) (418) (146) (105) (283) (411) 1,010 (330) (127) (343) 855 Tax (143) Net income (148) (164) (78) (193) (80) (59) (147) (269) 1,134 (83) (19) (223) 712 Minority interests (8) 27 Net income Group share (199) (219) (128) (248) (134) (109) (200) (321) 1,059 (120) (61) first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 28

29 Crédit Agricole S.A. consolidated results Quarterly consolidated income statement m Group Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Net banking income 3,233 3,461 3,317 3,682 3,995 4,171 3,813 4,208 5,015 5,271 4,076 2,406 4,110 Operating expenses (2,209) (2,254) (2,229) (2,474) (2,493) (2,496) (2,520) (2,846) (2,959) (3,538) (2,885) (3,336) (3,218) Gross operating income 1,024 1,207 1,088 1,208 1,502 1,675 1,293 1,362 2,056 1,733 1,191 (930) 892 Riskrelated costs (138) (123) (177) (205) (127) (168) (170) (147) (223) (211) (275) (1,188) (446) Equity affiliates Net income on other assets (4) (81) 1, Integrationrelated costs (49) (95) (28) (47) Pretax income 1,230 1,353 1,306 1,302 1,939 1,871 1,527 1,514 3,277 1,795 1,281 (1,536) 1,211 Tax (258) (283) (195) (206) (471) (488) (288) (343) (480) (363) (190) 776 (205) Net gain (loss) on discontinued operations (3) (4) (4) 4 Net income 972 1,070 1,111 1,096 1,468 1,383 1,239 1,168 2,793 1,428 1,091 (756) 1,006 Minority interests Net income Group share ,020 1,006 1,370 1,284 1,146 1,060 2,655 1, (857) first quarter results 15 May 2008 Crédit Agricole S.A. consolidated results CADCRD ratio bn Credit risks Market risks Operational risks Total riskweighted assets Tier 1 Tier 2 Tier 3 Deductions Capital from insurance companies Total net regulatory capital Tier 1 solvency ratio Total solvency ratio Dec n.a n.a % 8.6% March n.a % 8.3% first quarter results 15 May 2008 Crédit Agricole S.A. Update A.02 29