Half Year 2021 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 : So 2 questions. And firstly, could you help us in modeling the insurance business, please, since it's quite volatile. That EUR 400 million net number, is that sustainable on which to base our forecast? Or do we have to make an adjustment for the financial margin? So is that plus EUR 187 million positive market impact year-on-year that you quote just a normalization from a depressed return a year ago and the current run rate is normal? Or is the current run -- or is the current quarter elevated? And then on the P&C side, I guess you will have like an elevated combined ratio with some of these weather events. Could we have the euro million impact if you've got it and if material? And then secondly, just wondering on the comments you made on rounding up the dividends for future years to include the 2019 dividend, if I understood that correctly. So number one, do you consider all of the canceled 2019 dividend as being available to be rounded up? And secondly, why do you suggest that this will be done over time when you're in a position of significant excess capital today? I mean you could pay EUR 2 billion today, and you'd still be above 11%. And ECB doesn't seem to mind your peers paying more than 100% of earnings. Because I guess the previous question kind of asked it a bit more elegantly, but there are fears that, well, maybe you're holding capital so that you can make a larger acquisition or a larger transaction in Italy. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2021 / 12:00PM, CAGR.PA - Half Year 2021 Credit Agricole SA Earnings Call

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Very clear. Got it.

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Just as a follow-up, I take that on board, but do you see that there's may be a clash between that view because if you don't want to pay one-off more sizable dividends yet you're in the position of significant excess capital, how do you then get down to a more normalized level of CET1 if you're not banking on that additional capital for M&A?

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : So I just want to quickly clarify on what you said on the full year '19 dividend, the EUR 0.40 remaining. You mentioned '21 and '22 to pay that. Is the intention to pay the full EUR 0.40 amount by the end of '22, i.e., by the end of your business plan? Or do you intend to spread that out over a longer time period? So could we expect EUR 0.20 per year? Or is it going to take much longer? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2021 / 12:00PM, CAGR.PA - Half Year 2021 Credit Agricole SA Earnings Call And I mean, also, just sorry to come back on the share buyback discussion. But I understand the regional banks don't want to be kind of increase their stake too much, and that's why you have a preference for dividends. But you've just issued quite a lot of shares because the scrip and -- that they have taken. So I don't understand why you wouldn't buy back part of -- I mean, a lot more of those shares. And you're only buying back the shares taken up by the minority shareholders. I mean, in proportion that could be considered. And I don't know -- I mean, you've always run well above the 11% target. And I was just wondering if that's a real target? Or if you actually aim to maintain some kind of buffer for prudence on top of that 11%? And just on capital, and that's my last one, really. It's just a -- regulatory impact from on TRIM. So you haven't taken much this quarter. Can you just confirm how much is left for the year, please?

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : Just a couple of questions on CreVal, if I may. So firstly, on the net badwill on CreVal, correct me if I'm wrong, but you haven't included any kind of DTA benefits in there. So really, what's your thinking there? Roughly, how much could the DTA be worth eventually on some of those adjustments you're taking? And then a related point, now you've got your hands on the CreVal business. Have those PPAs come in line with what you originally expected when you were trying to price up the original tender offer? So things like the extra provisioning needs on the loan book, et cetera. Have they come in better or worse than anticipated? Because I guess the macro has kind of yoyo-ed around a bit since the beginning of the whole process when you launched the tender offer for CreVal. So yes, just your view on how the PPAs have come in versus original expectations.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Can I just come back to -- sorry, can I come back to your comments earlier that the EUR 400 million net profit for the insurance business is kind of not an unusual or not an abnormal number. Would you also say the same would apply under IFRS 17? So can we still expect to see that level of profitability coming through some quarters in the future? And anything else you can say to help us understand the impact of IFRS 17 on the group growth from a capital and profitability perspective? And actually, my other questions have been covered.

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Okay. Just to follow up on that. I think in the current business plan to 2022, I mean, when you came up with that, it was still expected that IFRS 17 would have been imposed by 2022, but you chose to exclude that effect. So I mean, does that mean that really, when we think about the order of magnitude, IFRS 17 could be the order of magnitude that would have threatened your group target?