Shareho Club des actionnaires Shareholders`Club

Club
Shareholders’Club
des actionnaires
DE CRÉDIT AGRICOLE S.A.
//////
VOTRE
NEWSLETTER
LETTRE
September 2009
The Shareholders’ Club newsletter
is an English translation of the French
Lettre du Club des actionnaires,
for information purposes only. Any
information of a fiscal nature applies
only to French tax residents.
Share price
/// The merchant bank
for managing shareholders
Crédit Agricole S.A’s. share price performance has been
contrasting over the last three months, falling below €9 in early
July before rising to over €13. The share price has risen by 22%
since the Annual General Meeting, compared with an increase
of 25% for the European banking sector index and 11%
for the CAC 40.
Crédit Agricole’s Regional Banks are
creating merchant banks intended
specifically for people running
a business. page 4
€13.055 (at 27 August 2009)
/// Making your home
more efficient
Focus on three tax incentives in France
to encourage greener housing. page 6
/// My Club:
your benefits
Paris Champs Élysées LCL branch.
FriulAdria head office in Italy.
Crédit Agricole branch of the Anjou Maine
Regional Bank.
This autumn, the Crédit Agricole S.A.
Shareholders’ Club is offering discounted
entry to the lighthouse of Verzenay. To
take advantage of this offer, go to page 8
of the newsletter, where you will also find
the diary for the coming quarter. page 8
Contact us
ADDRESS
Shareholder Relations
Crédit Agricole S.A.
91-93, bd Pasteur, 75710 Paris Cedex 15
TELEPHONE
Online information around the clock
on: +33 800 000 777 (toll free number
in France – press 5 to contact us)
INTERNET
All information available online at:
finance.credit-agricole.com
@
E-MAIL
Your questions in a click at:
[email protected]
/// Healthy, solid and
recurring first-half earnings
Under continuing difficult global economic
conditions, the Crédit Agricole Group generated
net income – group share of €1.1 billion in the
first half of 2009, and Crédit Agricole S.A. net
income – group share of €403 million.
My
news
First-half earnings 2009
How would you comment your results?
Under continuing difficult global economic
conditions, the Crédit Agricole Group generated net income – group share of €1.1 billion in
the first half of 2009, and Crédit Agricole S.A.
net income – group share of €403 million.
These results reflect the initial effects of the
business model implemented by the Group a
year ago, based on a powerful retail banking
network – we are No. 1 in France and one of
the market leaders in Europe – developing our
activities in all areas of banking and insurance.
The Group has also drawn on the strengths of
its specialised subsidiaries, making them
more efficient by looking for economies of
scale. This is demonstrated by the signature
of the definitive agreement concerning the
merger between CAAM and SGAM to create
Europe’s fourth-largest asset management
company, 75%-owned by Crédit Agricole S.A.
All of the Group’s business units are also
endeavouring to optimise their management
through strict control of costs. Lastly, we have
deliberately reduced the risk profile of our corporate and investment banking business,
which has now been refocused on its areas of
expertise, serving the Group and its
58 million customers. Our business
model is in keeping with our strategy: we have opted to prioritise
Crédit Agricole’s ability to generate healthy, solid and recurring earnings.
René Carron, Chairman of Crédit Agricole S.A., and Georges Pauget, Chief Executive Officer.
Why are your corporate and investment
banking results lower than those posted by
other banks?
Last September, we took full stock of the lessons
learned from the financial crisis and proposed a new
development plan for our corporate and investment
banking business. As a result, we deliberately
reduced its risk profile by discontinuing activities
identified as posing too high a risk. As a result of our
policy of reducing our risk profile, we have for example chosen not to invest heavily in fixed income
products over the last few quarters. We are not
comparable with other banks because we now have
a different business model.
Banks are being criticised for not lending any more. Where
does Crédit Agricole stand on this?
Customers are at the heart of Crédit Agricole’s strategy and the model
developed by Crédit Agricole S.A. is in keeping with the Group’s original
values. We are dedicating all of our resources to financing the economy
and to helping our retail and business customers through this time of
crisis. Despite deterioration in economic conditions, we have continued
to lend. This is demonstrated by the 3.7% increase in outstanding loans
relative to 30 June 2008 for the Regional Banks and LCL, with particular
efforts concerning SMEs and small businesses.
2 Newsletter///September 2009
13
12
11
10
9
First-half of 2009 8
7
6
5
4
3
MY SHARES
markets have01/01/09
remained extremely01/02/09
volatile since the start
of
03/03/09
theCrédit
year,Agricole
reacting
and 600
forecasts
of a return
S.A. to various
CAC 40statistics
DJ Stoxx
Bank (European
banks)to
economic growth. Crédit Agricole S.A.’s share price has risen by 63%,
outperforming the European banking sector index (up 55%) and
the CAC 40 index (up 13%).
n The
01/12/08
f13.055 14
(at 27 August 2009)
13
12
11
€8.00
(at 31 December 2008)
10
9
8
7
6
5
4
3
31/12/08
02/03/09
Crédit Agricole S.A.
4/05/09
CAC 40
01/07/09
27/08/09
DJ Stoxx 600 Bank (European banks)
ABOUT OUR CAPITAL
The Crédit Agricole Group is No. 1 in France, No. 3 in Europe
and No. 9 worldwide in terms of Tier 1 capital at 31 December
2008. These rankings are published each year by Anglo-Saxon
magazine The Banker.
Crédit Agricole S.A.
net income - group share.
+ €403 million
In the first half of the year, business
momentum was a constant for all of the
Group’s business lines. Crédit
Agricole S.A. generated net banking
income of €8,620 million, up 17.1%
compared with the first half of 2008,
following the acceleration of this trend
during the second quarter. Gross
operating income rose sharply to
€2,656 million (x 2.7) on tightly
controlled operating expenses, which
declined by 6.3%.
This offset the increase in risk-related
costs, which were also multiplied by 2.7
but stabilised at a high level in the
second quarter.
Operating income therefore rose sharply
to €444 million as a result of the
implementation of the business model
prioritising our ability to generate
healthy, recurring and solid earnings.
At €403 million, net income – group
share reflects the impact of
discontinuing corporate and investment
banking activities (see shareholder
question, page 5) and the negative
impact of €206 million linked with our
stake in Intesa Sanpaolo, which was
equity-accounted for the first time.
At 30 June 2009, Crédit Agricole S.A.’s
Tier 1 ratio stood at 9.2%, with
a Core Tier 1 ratio of 8.6%.
World top 10 (in ebn)
Tier 1
capital
1. JPMorgan Chase & Co
2. Bank of America Corp
3. Citigroup 4. Royal Bank of Scotland
5. HSBC Holdings
6. Wells Fargo & Co
7. Mitsubishi UFJ Financial 8. ICBC
9. Crédit Agricole Group
10. Santander Central Hispano
USA
USA
USA
UK
UK
USA
Japon
China
France
Spain
Amounts
lent by
governments
97.8 86.8
85.3
73.2
68.5
62.1
55.5
53.7
51.5
46.9
18
11
32
21
0
18
0
0
3
0
FOR FURTHER INFORMATION
Go to finance.credit-agricole.com
to see the second-quarter and first-half
2009 earnings presentation and press
release.
For more information about Crédit
Agricole S.A.’s results, contact
the shareholder relations team on
+33 800 000 777 (toll-free number
in France) - press 5 to speak to a
member of the team.
Source : The Banker, July 2009 - Figures as at 31 December 2008.
Currency translation on the basis of €1 = $1.39
September 2009///Newsletter 3
My
Group
Crédit Agricole deploying the managing shareholders’
merchant banking network
A number of Regional Banks in the Centre region
of France and Brittany have joined forces in a
common structure dedicated to business expansion and buyouts. Within these regional merchant
banks, the Regional Banks offer solutions tailored to the various needs of people running a
business. As an entrepreneur, employer and
manager facing problems of growth, financing,
selling the company or buying a company, people running a business also own part of their
company, with all of the needs this implies in
terms of safeguarding and optimising assets.
Other Regional Banks are set to roll out this
structure in this high-potential market between
now and 2014. The business banking network for
the Centre region (Carcie) targets a market of
2,300 businesses with revenues of €23 billion
and 126,000 employees. n
Launch of a home insurance policy
in Italy
With over 10,000 car insurance policies taken out since September
2008, the launch of the non-life insurance business at the
Cariparma and FriulAdria networks has been a success and Crédit
Agricole Assicurazioni is expanding its product range. As of midJune 2009, customers can take out a home insurance policy from
a selection of four easy-to-understand formulas, each of which
can be combined with optional guarantees. This product has
been well received by customers, who welcome its innovative
guarantees. At the end of July, the Italian network had sold over
1,300 policies. n
Financial services
for institutional clients
Crédit Agricole S.A. has acquired 35% of Caceis’s share
capital, bringing its total stake to 85%. With €2,200 billion
in assets under custody and €950 billion under administration, Caceis is No. 1 in Europe and one of the world market
leaders. In June, it was named Top Rated in Global Custodian
magazine’s customer satisfaction survey. n
IN BRIEF
 Calyon has been given the go-ahead to create a bank under Chinese law
(09/07/09).
 Crédit Agricole S.A. and Assicurazioni Generali have adopted a new
three-year agreement concerning Intesa Sanpaolo, replacing the agreement announced on 24 April
2009 (25/06/09).  More than 85% of Crédit Agricole S.A. shareholders have opted for payment of
the dividend in shares (23/06/09).  Crédit Agricole S.A. launches an $850 million Tier 1 perpetual
super-subordinated note issue (17/06/09).
4 Newsletter///September 2009
Following the losses of the first half of the
year, what is the outlook for Emporiki?
At the start of March, a new executive management team was put into place at Emporiki. This
new team has carried out an in-depth review of the
Greek bank’s operating conditions. A
series of measures aiming to improve
the situation, with the aim of returning to profitability in 2011, was announced on 25 June. To this end, a
plan is in the process of being drawn
up taking account of current economic conditions in Greece, which
have deteriorated significantly over
the last few quarters. This plan will be
finalised in early October and subject
to a major announcement.
Why are Calyon’s discontinued activities
continuing to weigh down the financial
statements?
As part of the refocusing plan announced in September 2008, Calyon’s structured credit products
and exotic derivatives activities are now managed
on a run-off basis. These assets are still subject to
changes in market conditions and some of them
have to be held until maturity. Therefore, our exposure is being reduced
gradually and the negative impact on
earnings will decrease over time. In
the first half of 2009, this represented
a negative impact of €881 million following €3,427 million over the full
year in 2008.
/// G
uide to personal services
in France
For matters like domestic help, private tuition or IT support, people like to
be able to find the appropriate professional who meets their needs around
the home with just one call... Demonstration of the service with Viavita,
Crédit Agricole’s personal services expert
1 Viavita selects service
providers carefully from all
over France, on the basis of
an extremely precise quality
charter.
2 The customer can
contact Viavita by phone or
e-mail to order a service.
Viavita then selects the
suitable service provider
from its network, and then
gives the customer a quote
that has to be agreed before
any service is provided.
4 Viavita sends a statement
of services used at the end of
each month and the customer
can pay using pre-paid
cheques to pay domestic
employees (“CESU”) or by
direct debit.
3 Appointed by Viavita,
the service provider goes to
the customer’s home.
The customer does not have
to employ the service
provider! The provider
is paid by Viavita.
N.B.
n T he personal services’ offering has been a huge success in a market that meets fast-developing needs. It presents
the major advantage of ensuring professionalism in services around the home, in the joint interest of the professional
and the user. It also allows for a tax reduction in France of up to 50% and, in certain situations, this tax reduction
can be converted into a tax credit.
September 2009///Newsletter 5
My
assets
///Making your home
more efficient
Carrying out home renovations with the aim of reducing energy consumption
can prove very economically-efficient.
A
more energy-efficient home
is good for the planet and
good for your wallet... There
are various ways of helping you to
do this in France. Explanations.
costs after the works will be enough
to offset the cost of the works.
The interest-free eco-loan:
how to make the most of it
Created five years ago in France, the
sustainable development tax credit
is intended to encourage “clean”
homes. It has been extended until
31 December 2012. It applies to all
homeowners (owner-occupiers and
landlords) and tenants spending
money on equipment to make their
primary residence more energyefficient or environmentally-friendly,
such as thermal insulation and use
of renewable energies (see inset p.7).
In 2009 and 2010, it is possible in
France to accumulate the sustainable development tax credit with the
interest-free eco-loan if the household’s taxable income is less than
€45,000.
Created in April 2009 as a result of
the Grenelle environmental talks
in France, the aim of this loan is to
encourage households to carry out
major energy-efficiency works in
their homes in France. It is intended
for everyone, provided that the cost
of works relate to a home completed
before 1 January 1990 and used as
a primary residence. Carrying out
works that will make your home
more comfortable and cheaper to
run while also increasing its market value, without paying anything
upfront... and without paying interest – it’s easy to see why this makes
sense. But be careful – the loan is
intended for major renovation works
that must allow for an immediate
real saving (see detailed conditions
in the inset p.7). A question to consider before taking out the loan is
whether the saving made in energy
Sustainable development
tax credit: conditions for
accumulation
The energy-saving loan:
a complementary solution
Ways of reducing greenhouse gas
emissions can also be found in
making minor improvements to our
living space on a day-to-day basis.
In conjunction with the “Livret développement durable” savings account
launched in January 2007, various
loan initiatives have emerged in
France specifically to finance this
type of spending eligible for the sustainable development tax credit. Of
the banks offering the loan, which is
subject to varying terms and under
different names, Crédit Agricole has
called it the “Économies d’énergie”
energy-saving loan. It is intended
for all homes – whether primary or
secondary residences – completed
more than two years ago. It therefore
constitutes the perfect complement
to the interest-free eco-loan, with
which it can also be accumulated.
What is more, it offers interest rates
more similar to mortgage rates than
conventional consumer loans, which
makes it very attractive. The best
thing to do is to look at the works
you are planning with a professional,
who will make a recommendation on
the basis of which your bank advisor
will be able to put together the most
suitable loan proposal. n
*Availability and loan terms vary
according to each Crédit Agricole
Regional Bank.
Expert opinion
Mathieu Wellhoff – Observation, savings and assessment department,
French agency for the environment and energy management (Ademe)
The interest-free eco-loan and the tax credit offer very advantageous terms for financing
energy-saving works, immediately cutting your energy bills and increasing the value of
your home, as well as significantly reducing greenhouse gas emissions. However, it is important to choose the most effective works for your home, depending on the technical
characteristics of the building. In practice, the best thing to do is to visit an Info-Énergie
centre: there are over 300 in France providing personalised, independent and free advice.
Find out more by calling 0810 060 050 (charged at the local rate from landlines in France)
or visiting www.ademe.fr.
6 Newsletter///September 2009
In the light of the market rebound, can we say that
the crisis is behind us?
The markets think that things are getting better, that the worst
is over and that there is very little risk of the situation deteriorating between now and the end of the year. Having bottomed
out at the start of 2008 and then rising sharply, before uneasiness set in, the Paris stock market – like others – is on the way
up. Business owners cut back significantly on their
spending in late 2008 and early 2009 but are now
readjusting again. Consumers are spending, as
their real income has risen thanks to price cuts in
particular. Exports allowed for an upturn in the second quarter, which was a surprise resulting from
improvement in manufacturing in Germany and
Italy. However, in order to lay the foundations for a
solid recovery, investment and jobs are needed. We
are not yet there.
Jean-Paul Betbèze, Chief economist at Crédit Agricole
What changes have
you made to your
traders’
remuneration?
In February 2009, a code
of ethics with the aim of
improving control of traders’ remuneration was drawn up under
the authority of the Fédération Bancaire Française (FBF), chaired by
Georges Pauget. Calyon was the first
financial institution to apply the FBF’s
recommendations, combining moderation in the amounts paid, deferred
payment of bonuses over several years
to take account of medium-term performances, and strict control of guaranteed bonuses.
Ta x a i d f o r e c o l o g i c a l h o m e r e n o v a t i o n s i n F r a n c e
Interest-free eco-loan
ELIGIBLE WORKS AND
AMOUNTS
Option 1 : homes completed
before 1 January 1990.
Financing for the supply and fitting
– provided that they are carried out
by a professional – of the materials
needed for the following works: roof
insulation, insulation of external walls,
replacement of glass partitions and
doors to the exterior, installation
or replacement of heating system
(if necessary combined with an
efficient ventilation system) or hot
water system, installation of heating
equipment using a renewable energy
source, installation of hot water
production equipment using
a renewable energy source. It is
necessary to put together eligible
works selected from at least two
of the above categories.
For a combination consisting of two
categories of works: maximum loan
of €20,000. For a combination
consisting of three or more
categories of works: maximum loan
of €30,000.
Option 2 : homes completed
between 1 January 1948 and 1990.
Financing of works recommended by
a thermal analysis firm to enable the
property to achieve minimum overall
energy efficiency. Maximum loan of
€30,000.
Option 3 : renovation works to
non-collective sanitation systems
by non-energy consuming means.
Maximum loan of €10,000.
HOMES CONCERNED
Only for primary residences. One
interest-free eco-loan per home.
However, the same borrower can
take out a number of interest-free
eco-loans in respect of their primary
residence and each home rented out
as a primary residence.
LOAN REFERENCE PERIOD
10 years
Sustainable development tax credit
ELIGIBLE EXPENSES
Option 1 : homes completed
more than two years ago.
Covers expenses relating to thermal
insulation, improving and regulating
heating systems, installing equipment
using renewable energies (solar,
wood), heating pumps or pumps
connected to a heat network, energy
efficiency diagnosis.
Option 2 : homes completed in
the last two years, or homes
bought as new or off-plan.
Covers expenses relating to
equipment using renewable energies
(solar, wood), heat pumps or pumps
connected to a heat network using
mainly renewable energies or
cogeneration.
TAXPAYERS CONCERNED
All tenants or owners of homes used
as a primary residence. Since 1
January 2009, owners of homes
effectively rented out for five years to
persons not belonging to their tax
household can benefit from the tax
credit for expenses relating to a
maximum of three homes.
AMOUNTS
The tax credit varies depending on
the nature of the expenses incurred,
between 25% and 50% of the total
cost of equipment and materials
(excluding labour).
The maximum amount of
expenditure* for entitlement to the tax
credit is €8,000 for a single person
and €16,000 for a couple, plus €400
per dependent.
*This maximum amount applies to
costs incurred between 1 January
2005 and 31 December 2012.
September 2009///Newsletter 7
MY BENEFITS
/// VISIT THE LIGHTHOUSE
OF VERZENAY
Overlooking one of the most spectacular slopes of the
Montagne de Reims, the lighthouse of Verzenay and its Musée
de la Vigne invite you to learn about the fascinating world of the
vineyards of the Champagne region. Built in 1909, the lighthouse
was initially intended for promotional purposes. Since 1999,
the Musée de la Vigne, of which Crédit Agricole Regional Bank
Nord-Est is a partner, offers fun and educational visits
explaining the specific characteristics of the Champagne
vineyards. The Shareholders’ Club is offering its members
a coupon entitling them to discounted entry. The Musée de
la Vigne is open from 10.00 am to 5.00pm, Tuesday to Sunday.
The lighthouse of Verzenay’s Musée de la Vigne teaches visitors about
the various stages of the champagne-making process using high-tech
audiovisual and stage techniques.
DR
To receive a discount coupon (limited
number)
. Photo credits: Edoardo Fornaciari, Alain Goulard, DR. Illustration: Véronique Béné.
My
Club
If you want to subscribe to these alerts, go to the “services” section
of the website.
My diary
15 October Rouen
Shareholder information
meeting with the
Normandie Seine
Regional Bank. Georges
Pauget, CEO of Crédit
Agricole S.A., presents
the Group’s strategy and
business lines. Jean-Paul
Betbèze, Chief economist,
takes a look at the key
trends in economic
conditions.
Financial Officer, presents
the Group’s results
and strategy.
Crédit Agricole Asset
Management’s strategists
present their analysis
of the various
asset classes.
10 November
Nine-month results
(after market close).
22 October Le Havre
Salon Actionaria. Palais
des Congrès in Paris
(Porte Maillot). For a free
invitation, call the toll-free
number or go to the “diary”
section of “shareholders’
corner” on the finance.
credit-agricole.com
website.
3 December Toulouse
Shareholder information
meeting with Georges
Pauget and Jean-Paul
Betbèze, in partnership
with the Toulouse and
Midi-Toulousain Regional
Bank.
26 November Caen
12 November Angoulême
Shareholder information
meeting with the
Normandie Seine
Regional Bank. Bertrand
Badré, Group Chief
20 and 21 November
Paris
Shareholder information
meeting with Bertrand
Badré and Jean-Paul
Betbèze, in partnership with
the Charente-Périgord
Regional Bank.
Shareholder information
meeting with
Georges Pauget
and Jean-Paul Betbèze,
in partnership with
the Normandy
Regional Bank.
To sign up:
YOUR NEWSLETTER is published by the Investor Relations Department of Crédit Agricole S.A. (Ref: 7349 DRI 09/09). Creation and realisation:
This document is printed on Condat-Silk paper certified PEFC.
/// MORE INFORMATION À LA CARTE
The finance.credit-agricole.com website provides all of Crédit Agricole
S.A.’s financial documentation and offers an alerts service if you want to
receive e-mails informing you of each new financial press release. n