Jacques-Henri Gaulard

Jacques-Henri Gaulard from Kepler Cheuvreux asked for reassurance on the trajectory of the Specialized Financial Services (SFS) division, particularly consumer finance, and questioned whether inorganic growth's contribution to profitability could be explicitly included in the next medium-term plan targets.

Answer

Executive Jerome Grivet acknowledged the SFS division is in a more difficult period due to rising rates but noted margins are starting to improve. He stated the company is continuously adjusting its setup, avoiding the need for a massive restructuring. Regarding the next plan, Grivet explained that inorganic growth is opportunistic and difficult to build into formal targets, which will continue to be based on organic development.

Jacques-Henri Gaulard sought reassurance on the trajectory of the Specialized Financial Services (SFS) division, particularly consumer finance, and asked if inorganic growth could be formally incorporated into future profitability targets.

Answer

Executive Jerome Grivet acknowledged that the SFS division faces challenges from higher rates but noted the bank is continuously adjusting its cost base, precluding the need for a major restructuring. He clarified that future strategic plans will be based on organic growth, viewing inorganic opportunities as opportunistic rather than a predictable component of targets.

Jacques-Henri Gaulard of Kepler Cheuvreux inquired about the maximum ownership stake the regional banks intend to hold in CASA and whether the bank's improved stock multiple could be used to finance acquisitions.

Answer

Executive Jerome Grivet stated that the regional banks' publicly communicated intention is not to exceed a 65% stake in CASA. Regarding M&A, he emphasized that any transaction is first judged on its strategic and financial merits. While using stock is an option, financing via organic capital generation has proven to be the most efficient method to date.

Jacques-Henri Gaulard asked if the regional banks might be tempted to sell down their stake in CASA given its higher profitability. He also inquired about the company's M&A appetite, wondering if they would pause for integration after recent deals or remain active.

Answer

Executive Jerome Grivet responded that the regional banks are currently in an 'acquisitive mode,' citing recent share purchase programs, and that any questions about selling should be directed to them. On M&A, he emphasized that the company is very wary of integration risk and assesses each business line's capacity before approving deals, suggesting they will remain opportunistic but disciplined.

Asked for confirmation of the EUR 2 billion NII uplift target by 2025, questioned the strategy for the large S1/S2 provision stock, and asked if the 2023 distributable income guidance was conservative.

Answer

The executive confirmed the bank is sticking to its 2025 guidance. The S1/S2 provisions are a buffer to be used in adverse conditions, and there is no specific target level for the stock. The 2023 guidance of EUR 1 billion above 2022 reported results was also reiterated.