Credit Agricole SA at Barclays Global Financials New York Conference (Virtual) Transcript

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

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : So then starting with the most topical subject, which is asset quality. Could you give us your updated thoughts on where we stand now that the reopening of the economy has progressed further. In particular, there are those of us who continue to be concerned that a kind of wave of defaults in both the corporates and retail segments as state support measures roll off. What do you think the risk is that actually impairments next year are not lower than 2020 as is the forecast by most banks? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2020 / NTS, CAGR.PA - Credit Agricole SA at Barclays Global Financials New York Conference (Virtual) Then maybe as a follow-up, how are loans and the moratorium on the payment holidays behaving? Are you seeing normalization of payments occurring as you'd forecast? Or is it still a little bit too early to tell?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : No. That's very, very comprehensive. Maybe switching perhaps a bit to capital. You were obviously very detailed in giving guidance for uses of capital at your last Investor Day, but that was some time ago, particularly with regulatory headwinds such as Basel IV and the repayment of the Switch, which is particular to you. A lot has happened since then that your CET1 ratio is 400 basis points above the regulatory minimum, which is a good buffer. There's plenty of uncertainty at the moment, of course. But what would be very helpful would be getting your view on the priority of use of that excess over time, and dependent on the ECB, of course, between capital return and repayment of the Switch, high-end growth, of course.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Great. So another topical area, as it often is in the sector every 3 or 4 years, is M&A. And the recent proposed transactions in Spain, and in particular in Italy, suggest we could finally see a broader wave of consolidation in the sector. Do you agree with this view? Or do you think that these 2 geographies are specific, and the focus is likely to remain on in-market transactions only? In particular -- well, in Italy, you have high market shares in the country in the product factories, as you'd like to call them, Pioneer, Agos, Leonardo, CA Vita in insurance, yet you still have low market share comparatively on the retail side, I think 4%. So is it kind of inevitable that you would have to participate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2020 / NTS, CAGR.PA - Credit Agricole SA at Barclays Global Financials New York Conference (Virtual)