Credit Agricole SA Q1 2021 Earnings Call Transcript

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

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : So the first one, I would like to ask on the payout ratio. Just trying to understand a little bit your 50% policy, which you said you would top up with a little bit of the full year '19 dividends. I think you mentioned EUR 0.40. I just wondered how quickly we could see those extra, let's say, dividends. And would they come in the form of specials? Or would be -- would they be part of your normal dividend policy? And more broadly speaking, I mean, given -- you're still targeting 11% CET1, I assume. Just wondering how you get there. And given the level of capital you have now, would you consider accelerating a little bit to switch to reimbursement in that context? And then the second question is on cost of risk. I think you mentioned -- you still mentioned that cost of risk is supposed to come down this year. And the question is really how much? Given the start of the year, and you've booked in 37 basis points on Stage 1, Stage 2 provisions as well. So should we expect more of those Stage 1, Stage 2 provisioning again in the next few quarters? Or should that normalize? And would you have a guidance for us for '21?

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : So just firstly, on insurance. You normally tell us to only look at the net profits and not the rest of the P&L. So is this EUR 300 million a normalized base after the pandemic disruptions last year? I ask because there's -- you quoted like a lower [C3S] social contribution charge, and I can't tell if that's a one-off or not and how that's accounted. So in other words, usually, it used to be that Q1 for insurance is the lowest quarter and net-net profit improves throughout the year. Is that kind of what we should still expect now? Then second question is on LCL. If I look at loan growth ex the guaranteed loans, in the last 3 quarters, that's been plus 5%, plus 4% and plus 3% this quarter. Why should that improve when the economy reopens? Because businesses have tons of liquidity, and we'll spend time getting rid of the guaranteed loans. Mortgages aren't elastic to reopening if we look at other countries, and consumer credit is small in the networks. It seems especially important for your sales because you're the only bank in Europe where NII is growing in line with loans somehow. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2021 / 12:30PM, CAGR.PA - Q1 2021 Credit Agricole SA Earnings Call

Question: Omar Fall - Barclays Bank PLC, Research Division - Analyst : Great. And just as a very quick follow-up. On consumer credit, you'd mentioned that March was almost at the level of 2019, the highest of '19. What's the, like, average duration of the loan book that's consolidated?

Question: Kirishanthan Vijayarajah - HSBC, Research Division - Analyst : First question on capital. Just very quickly, I wanted to clarify any of the negative effects that you're flagging this quarter potentially unwind in the coming quarters. It doesn't -- it feels like they're all pretty permanent on that slide, but I just wanted to check that. I wasn't missing anything there. And then turning to the second question on those government-backed equity loans in the pipeline. Because you own a large insurance company, you've also got Amundi, I just wondered if your eventual exposure to that vehicle is going to be bigger than, say, your natural market share -- your natural banking market share in France because of the way that particular fund is being structured. So really, just some guidance on where you think your aggregate exposure might eventually end up taking account of all the various entities within the wider CrTdit Agricole Group?

Question: Jonathan Matthew Balfour Clark - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : A couple of questions, please. So firstly, can I just come back to the insurance division and the top line? I mean should we read anything into the level of revenues compared to the insurance assets under management there, which seem to be a bit lower than they have been in the past? Or is this really -- is that red herring and we should be looking at some other metric in order to gauge the revenue power of that division? So any guidance or thoughts there would be appreciated. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2021 / 12:30PM, CAGR.PA - Q1 2021 Credit Agricole SA Earnings Call And then second question is just on cost of risk and the Stage 1 and 2 provisions that you booked this quarter. I'm just curious why you're still booking Stage 1 and 2 provisions. I mean, what is it about the development of the macro environment during the first quarter or year-to-date that meant you're still taking these? I'd have thought you took quite a lot of them last year and that maybe there would be a chance for them to drop down to 0, and you just see the defaults come through only Stage 3 provisions for here. So why are you still taking them? And will you keep taking them in coming quarters?