Credit Agricole SA Launches A Cash Voluntary Public Tender Offer For All Shares Of Banca Piccolo Credito Valtellinese SpA Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Yes. Firstly, just a quick follow-up on the NPE, NPL question. So I'm wondering, has the local regulator or the ECB provided or set your guidance in terms of the target level of NPE and coverage ratios you should be aiming for, for the combined group as a quid pro quo for getting approval for this deal? Or is that sort of plan for de-risking that's completely been driven by you? So really, just the background there. And then in terms of taking a step back in terms of improving the product penetration at the CreVal customer base. What are the kind of big gaps that you see? Because as far as I can tell, CreVal already has the full product suite available today. So really, my question, what are you going to be doing differently that's suddenly going to ramp up the product penetration and revenue per customer at the CreVal network?

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : A couple of questions. So firstly, just going back to the CET1 impact of 20 basis points. So if I understood your -- or extrapolate your answer earlier, am I right to understand that this is formulated under the existing tax laws? So it doesn't include any DTA tax credit benefit. And secondly, a similar question, what step-up or step-down to fair value assumptions are embedded in that 20 basis points CET1 reduction? And then finally, could you just let me know when the CrTdit Agricole Assurance stake increased from 5% to 9.8%? I haven't realized that had happened.

Question: Pierre Chedeville - CIC Market Solutions (ESN), Research Division - Analyst : Yes. 2 quick questions. First question, I'm not sure, but it seems to me that this operation will have a bad will around maybe EUR 1 billion. And and I wanted to know what will be the use of this bad will. And did you have any conversation with the ECB in terms of capacity for you to use this bad will in your CET1 or distribution possibilities, et cetera? And I ask my second question now or [after]?

Question: Pierre Chedeville - CIC Market Solutions (ESN), Research Division - Analyst : No. No. It's -- and my second question regards the network of CreVal. We can see that 25% of the branches are located in Sicily that I love very much, but which is obviously not the part of Italy you were, CrTdit Agricole Italia was targeting initially. So my question is very clear. What is the quality of this part of the business of CreVal in Italy, for instance, in terms of profitability compared to other branches in the north in terms of NPE? And don't you think that it's somehow 94 branches only in Sicily? Once again, I would say, now clearly, 8% of the total network is not too much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 23, 2020 / 9:00AM, CAGR.PA - Credit Agricole SA Launches A Cash Voluntary Public Tender Offer For All Shares Of Banca Piccolo Credito Valtellinese SpA

Question: Pierre Chedeville - CIC Market Solutions (ESN), Research Division - Analyst : Well, I'm calculating well.

Question: Pierre Chedeville - CIC Market Solutions (ESN), Research Division - Analyst : If I may have a follow-up on your answer. Because if we consider that CreVal is doing well its job in terms of provisioning, and I cannot imagine that they don't, most of this bad will be allocated to restructuring costs, we can imagine. But at the end of the day, we will have, I would say, a net bad will improving your core tier 1. Do You -- or have you made any hypothesis of this [west], I would say, not using the bad will, when you indicate to the market that this operation will have only 20 basis points of impact in CET1? Because for me, in my view, at the end of the day, with this bad will and if CreVal is well provisioned, impact on CET1 will be 0, more or less, or even maybe positive. It could be positive.