Full Year 2020 Credit Agricole SA Earnings Call Transcript

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

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Can you hear me?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Brilliant. So just a couple of questions for me. So if I reverse the EUR 800 million or so of stage 1 and 2 provisions, you're basically hitting your 11% RoTE target under the MTP without really doing anything else and bearing in mind you're carrying more capital than you target. Are you still happy with that 11% target? Because I guess for most banks, it's a struggle to make double digit, assuming -- yes, so I mean, assuming the macro environment continues as expected, what other headwinds should we think about for you not to hit that number? Is it just normalization of capital markets revenue? Is it -- I don't expect you to tell me that you're going to meet your target or not, but I'm just trying to think what are the potential headwinds. And then just a high-level question, but looking through your presentation, I don't read much mention of the topic of potential transformation of -- or the excess retail deposits from individuals because of the pandemic, the potential to shift these into unit linked products, mutual funds, I would have thought this trend would be a key one for you of all the banks. Is that because you don't see signs of it yet? Or you think these excess savings are just going to sit in site deposits and Livret A?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Great. And just a cheeky follow-up, just the NII and LCL very briefly. There was a big jump there that you mentioned is driven by favorable refi conditions? Sorry, if I missed that. Is that TLTRO? I thought you did most of the allocation.

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : I just have 2 very quick ones on capital, if I may. The first one is just to go back on buybacks. Historically, I think as a group, you've tended to have a preference for dividends over buybacks. And clearly, this one that you're starting for 2020 is -- has a purpose of compensating for the dilution of the scrip. But I was just wondering going forward in terms of return of excess capital, if you still have a preference for dividends or buybacks is going to become a bit of a bigger component of capital distribution. And are you concerned about the level of free float? Or you don't really mind because that doesn't really affect your decision-making process, just checking. Second question is on the capital headwinds that we still should expect. So you mentioned Basel IV. And on TRIM, just checking that beyond the 20 basis points for TRIM you've taken in Q4, how much is there still coming, if any, in '21. And maybe also longer term, I think one of your peers have started estimating a bit on the impact of IFRS 17. So just wondering if you have any indication to give us at this point.

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : A couple of questions on capital again. And first one is really just a clarification. I know there's lots of moving parts. But really, once the scrip and then the buybacks will complete, are you saying that the share count should be flat on where it is today, leaving aside the usual drip feed of employee share? So can you make that commitment for us on the share count? And I guess the reason I kind of ask is, is this such a clever overengineered way of distributing cash to your shareholders, where actually, what in 12 months' time, we don't know what your share counts necessarily going to be given all the different moving parts there? And then just secondly, very quickly, in terms of the RWA decline you show on the business line contribution. Just wondering if there are any special levers you've activated there? Or is it maybe just a bit of positive ratings, migration and a bit of seasonality kicking in driving that favorable RWA movement in the fourth quarter?

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : A couple of questions, please. So firstly, with respect to the TLTRO again, is this all booked in the retail banking divisions? Or is there any particular allocation ideology that you pursue like maybe booking the bonus effect in the corporate center or something like that? So any guidance there would be helpful. Second question is just to verify the switch repayment doesn't need ECB approval. I guess, is that the right way to think about things because (technical difficulty) And then final question, just coming back to the TRIM risk-weighted assets you mentioned. Could you be a bit more specific about what those portfolios are and maybe what the portfolios that led to the fourth quarter TRIM impact were, just so we can reconcile those?