Crédit Agricole has one virtue: regularity. As a result, the presentation of Crédit Agricole SA’s new three-year strategic plan, the canopy and listed structure of the combined group, contains few surprises or changes of course. Financial targets may appear modest, above the consensus of financial analysts, according to broker Jefferies.
Thus, the listed structure targets net income of €6 billion by 2025, i.e. 3% annual growth, 12% return on equity (versus 11%) and a fixed solvency ratio of 11% (17% group-wide). A goal of moving the cost/income ratio (expenses related to income) below the 60% threshold does not seem impossible, and Crédit Agricole SA maintains its dividend policy unchanged, with a distribution rate of 50% while BNP Paribas at 60% (incl. It repurchased the stock). Certainly, the group intends to refuel in terms of income, with an average growth rate of 3.5% annually over the period 2022-2025.
Growth is the key word of a strategic plan. Ignore the uncertainties burdening the economy with the return of geopolitical risks or inflation. “Our development model should not be hampered by macroeconomic ambiguity,” Judge Philippe Brassac, Managing Director of Crédit Agricole SA, ironically, given the current context, “It’s easier to plan long than to think short.” The leader also likes to point out the recurrence of the group’s results, with no quarter of the income dropping over the past five years. As a precautionary measure, the group raised its cost of risk forecast to 40 basis points for the period.
Strong development is expected in Italy
group secret? Comprehensive approach to customer needs with “Constantly increasing offer over current offer”, decentralized organization progress “Many Development Engines” Finally, Philip Brassac summarizes a line of business, such as Amundi in asset management or car rental, which is now developing according to its own logic, including through external growth. First and foremost, the group intends to “develop its comprehensive banking model in Europe,” assures Xavier Mosca, Executive Vice President.
In France, of course, where the group still has areas to contend with, in life insurance, borrowers’ insurance, real estate, damage or health insurance and savings insurance. It’s even a matter of gaining an additional 1 million customers in three years, despite a market share of about 30% (31 million customers with LCL). But also in Europe, especially Italy, where there is Crédit Agricole “It can grow very vigorously, with a very long development path”, Striker Xavier Mosca. After the acquisition of Italy’s Creval Bank, the group had big ambitions in the country and a consolidation role, in both banking and insurance.
Health, a new job for Credit Agricole
But to celebrate its time, the group is also announcing the creation of new structures, new professions, without linking it at the moment to a business plan with a revenue forecast. The first structure is almost imposing itself. The goal is to create a center of expertise, called Crédit Agricole Transitions & Energies, responsible for supporting the group’s clients, individuals and companies, in their transition, but also for accelerating the development of renewable energies.
The second is more unexpected as it establishes the entry of Crédit Agricole into the health sector, with Crédit Agricole Santé & Territoires. The idea is to better structure existing offerings (LCL is number one in the market for medical professionals), especially for seniors, to create a platform of services to help “aging well” and finally co-finance non-medical housing for seniors. This announcement also illustrates the group’s ambitions in the field of group health insurance. In short, the machine is still running and moving forward, at its own pace, more certain than ever.