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    Sharath Ramanathan • Deutsche Bank

    Sharath Ramanathan's questions to Credit Agricole SA (CRARY) leadership

    Sharath Ramanathan's questions to Credit Agricole SA (CRARY) leadership • Q1 2025

    Question

    Sharath Ramanathan of Deutsche Bank inquired about any updated thoughts on an interim dividend and asked for clarification on the capital trajectory, specifically the timing of the 30 bps impact from the CACEIS acquisition.

    Answer

    Executive Jerome Grivet said the company remains agnostic on an interim dividend, stating they could adapt if it becomes a market practice, but no decision has been made. He confirmed the pro forma CET1 ratio of 11.8% will be impacted by a further 30 bps from the CACEIS acquisition, which is expected to close either at the end of Q2 or the beginning of Q3, pending final administrative approvals.

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    Sharath Ramanathan's questions to Credit Agricole SA (CRARY) leadership • Q1 2025

    Question

    Sharath Ramanathan asked for updated thoughts on implementing an interim dividend and sought clarification on the forward-looking capital trajectory, including the impact from the CACEIS acquisition.

    Answer

    Executive Jerome Grivet stated that the bank remains agnostic on an interim dividend and could adapt if it becomes a market standard, but no decision has been made. He confirmed the pro forma CET1 ratio of 11.8% and the anticipated 30 bps impact from the CACEIS transaction, which is expected to close at the end of Q2 or the beginning of Q3.

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    Sharath Ramanathan's questions to Credit Agricole SA (CRARY) leadership • Q4 2024

    Question

    Sharath Ramanathan asked about the appetite for French retail mortgage loan production given the political climate and the outlook for margins and volumes in the personal finance business amid expectations of lower interest rates.

    Answer

    Jerome Grivet, Executive, stated that French consumer appetite to buy homes remains strong and is unaffected by political uncertainty; the key driver is their improved borrowing capacity. He expects further development in the home loan market. For personal finance, he noted the positive trend of improving margins on new loans is now lifting the overall margin on outstandings, and he expects this to continue in 2025.

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    Sharath Ramanathan's questions to Credit Agricole SA (CRARY) leadership • Q1 2024

    Question

    Sharath Ramanathan asked for details on the weakness in Specialized Financial Services (SFS) and the drivers for its ROE recovery. He also sought clarification on the capital impact of Amundi's stake in Victory Capital and the potential for volatility from revaluing stakes like Banco BPM.

    Answer

    Jerome Grivet, an executive, explained that SFS margins were compressed by rising funding costs but are now sharply increasing on new production, with benefits expected in H2 2024. He stated the capital impact from the Victory Capital deal would be 'very, very tiny.' While the Banco BPM stake valuation can cause P&L volatility, he sees no significant risk of a sharp price decrease and noted that dividends provide offsetting revenue.

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