Crédit Agricole Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = €55.60b | Revenue (TTM) = €83.24b
Market Cap = €55.60b | Estimated Revenue = €28.69b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = €497.66b | Revenue (TTM) = €83.24b
Enterprise Value = €497.66b | Forward Revenue = €28.69b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Crédit Agricole Stock Analysis
Analyst Opinions
23 Analysts have issued a Crédit Agricole forecast:
Analyst Opinions
23 Analysts have issued a Crédit Agricole forecast:
Crédit Agricole Events
Past Events
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JUL
31
Q2 2026 Earnings Call
about 2 months ago
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APR
30
Q1 2026 Earnings Call
5 months ago
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FEB
4
Q4 2025 Earnings Call
8 months ago
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NOV
24
Crédit Agricole S.A., Q3 2025 Fixed Income Call, Nov 24, 2025
10 months ago
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NOV
18
Analyst/Investor Day - Crédit Agricole S.A.
10 months ago
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StocksGuide Free
Crédit Agricole — Q2 2026 Earnings Call
1. Management Discussion
Good morning. This is the conference operator. Welcome, and thank you for joining the Crédit Agricole Second Quarter and First Half 2026 Results Conference Call. [Operator Instructions]
At this time, I would like to turn the conference over to Mr. Olivier Gavalda, Chief Executive Officer of Crédit Agricole. Please go ahead, sir.
Thank you. Good morning, everyone. It's a pleasure for me to share with you the strong results published this morning by Crédit Agricole S.A. Clotilde will present them extensively in a few minutes.
But before, let me share with you a few key highlights, both on financials and on recent important developments, illustrating the fact that Crédit Agricole Group is on the move. Let me start with the results we released this morning. Crédit Agricole S.A. is posting high results of EUR 2.1 billion this quarter, up plus 1.4% on a proforma basis. This thanks to 2 elements. First of all, a very strong growth in revenues, plus 7.7% quarter-over-quarter, resulting from the dynamic activity observed in all business lines. Revenues reached their highest level this quarter at EUR 7.4 billion. Secondly, high profitability as we are posting for H1 '26, a cost-to-income ratio below 55%, precisely 54.7% and a return on tangible equity above 14% at 14.3%.
Based on these very solid results in H1 '26, we will pay our first interim dividend amounting to EUR 0.57 per share on the 15th of October. This corresponds to 50% of our H1 distributable results consistently with our distribution policy, as you know. Finally, CASA CET1 ratio is just about stable at 11.3%, so still above the 11% target for Crédit Agricole S.A., even considering the impact on the recently increased position in Banco BPM Capital up to 29.3%.
Indeed, we continue to develop strategically in Europe; particularly we are developing in Italy. Italy, as you know, is our second domestic market and a strategic priority for the group. Over the years, we have significantly expanded our presence in Italy, and we remain committed to further investing and growing our franchise. Notably, since the beginning of the year, we have continued to strengthen our ties with Banco BPM. We increased our stake from 20.1% to 22.9% in quarter 1. This allowed us to obtain 4 seats in the Board in April. And we have now in July, reached 29.3%. This increase in ownership is consistent with Crédit Agricole's strategy as a long-term investor and partner of Banco BPM in its development.
Having that said, as you know, there has been considerable market speculation regarding further consolidation in the Italian banking sector. Our position remains unchanged. Any transaction involving Banco BPM should create long-term value for Crédit Agricole S.A. and the other Banco BPM shareholders. With our 29.3% position, we are now by far the first shareholders in Banco BPM. We will thus have a say on any transaction involving the company alongside the other Banco BPM shareholders and we will analyze any solid project with respect to its strategic interest, execution risk and capacity to create value over the long term for all of Banco BPM's shareholders.
As always, there are many scenarios on the table. But at the time being, we are not aware of any concrete project regarding MPS, Monte Paschi and Banco BPM, and we have not been approached by other party regarding any potential involvement in such a project. At this stage, it is very difficult to see how a combination between MPS, Monte Paschi and Banco BPM can be value accretive for Banco BPM shareholders. More generally, we are rolling out our strategic plan. We continue to develop in Germany.
Last quarter, we announced the launch of our European digital platform, Crédit Agricole Savings. The initial phase in a success as we are onboarding 200 new clients per day already. This should accelerate with the upcoming launch of the app and be complemented soon by the launch of Crédit Agricole Deutschland. We continue to develop in France where activity is very strong, and we have -- and where we have also started integrated the Milleis Group since the end of April with LCL. And we continue to develop all over Europe, in Spain with new partnerships and in all the other geographies where we are present.
We are innovating. We have launched a stablecoin in Euro, CASA EURXT. We have led new initiatives related to tokenized finance, and we are working on other on-chain settlement solutions for institutional clients and for big corporates. And we are also accelerating our AI transformation.
Indeed, as you know, Crédit Agricole Group will allocate EUR 500 million of its investment -- IT investment plan over 3 years to accelerate the industrial deployment of AI across the group. We are thus creating a dedicated AI and data company and investing EUR 150 million in capital in it. This company will operate industrially the AI technology basis for all entities and create a shared data platform at the level of the group. These LLM agnostic infrastructures and private cloud solutions are essential for our strategic autonomy and more importantly, for the long-term management of our costs and the control of our industrial choices.
We will also deploy an industrial agentic platform designed to enhance productivity and enrich customer interactions. Driven by grand principles of performance, European technological sovereignty and ethical AI, this initiative aims to make AI a collective lever for transformation and efficiency at the service of the entire group.
I will stop here now and leave the floor to Clotilde. Thank you very much for your attention, and see you soon after the holidays. Bye-bye.
Thank you. Thank you, Olivier. So I'm going to pick up on the slide -- the following slide on the key figures. And I just wanted to take a step back from the listed entity to look at Group Crédit Agricole, which posted a very strong performance this quarter with a strong increase in net income by 7.8% Q2 over Q2 and 22.4%, excluding the Amundi U.S. base effect. You know that we're, of course, looking at figures pro forma of Banco BPM, i.e., considering that Banco BPM was at 20.1% equity accounted in the Q2 of 2025, and this 22.4% excludes the around roughly EUR 300 million impact of the Amundi deconsolidation of last year.
And so this strong performance is driven by revenues, which grew 12.9% to reach the record level of EUR 10.9 billion this quarter. And this strong increase in revenues results from both scopes, CASA's activities and revenues, of course, I will come back to that. But what we see this quarter is also the reiterated performance of the regional banks' revenues that increased by 12.9%, thanks again this quarter to a spectacular upturn in net interest income, plus 38% this quarter.
So, gross operating income grew by 25.8% Q2 over Q2, and the cost-to-income ratio is well below 60% at 58.3%. We have very favorable jaws of more than 8 percentage points this quarter. The cost of risk is stable at 30 basis points on outstanding. And of course, we maintain a very strong position in terms of solvency with a CET1 ratio of 17.2% and very strong liquidity.
Now if I come back to CASA, where we have, thanks to a strong growth in revenues and positive jaws, an increase in gross operating income by 11.4% this quarter. So this strong performance in revenues was driven by strong activity in all of the business lines.
And on the next slide, you see that activity was dynamic everywhere because this quarter, we have strong customer capture, 580,000 new customers in the Q2 in retail banking. That is close to 1.2 million new customers since the beginning of the year. This customer capture again benefited from increased digital acquisition in France and in Italy. And if we dig down a little bit by business line, in retail banking, in France, credit production is strong. Home loans are growing by 10%, corporate by 8%.
In Italy, credit production is dynamic, 8.5%, thanks to the recovery in home loan production this quarter in a very competitive market, and we also have dynamic production in Poland. The loans outstanding in the on-balance sheet assets continue to grow globally and the growth in off-balance sheet assets was dynamic in France and in Italy. And this was, therefore, reflected in the asset gathering division, which also posted a very good quarter. In Insurance, we have a record level of premium income at EUR 15 billion. It increased by 18%, thanks to all of the activities, savings and retirement, personal insurance, property and casualty.
The net inflows reached a record of EUR 6.8 billion in savings and retirement, in particular, thanks to the success of the Oriance offer, the outstandings of which represent close to EUR 5 billion at the end of June, and we reached 18.2 million contracts in P&C this quarter. Amundi, as you know, posted very strong net inflows and record AUMs. The medium- to long-term inflows are strong, thanks both to ETFs and active management and activity is dynamic in third-party distribution and through the insurers of our partners, Crédit Agricole and Société Générale.
And finally, in Wealth Management, AUM are increasing strongly with positive net inflows. If I turn to CAPFM, the production increased to EUR 12.8 billion, thanks both to mobility and to Personal Finance. Now of course, the used cars remarketing activity is impacted by an unfavorable automobile market that weighs on the sale of these used cars, but it's the case for all of the players on the market. And -- but and this bears witness to the strength of our diversified business model. You can see that in the large customers division, the CIB posted a record Q2, thanks to the excellent performance in investment banking, in particular, in structured equity and to ECM, we have FICC, which is stable at a high level.
And finally, CACEIS had a high level of settlement and delivery volumes that was boosted also by market volatility in 2026, and we continue to increase our outstandings of AUMs and AUCs. So a buoyant activity across the line, which reflects on Slide 9 in the growth in revenues, which was very high this quarter at 7.7%, driven by all the divisions. So I talked about the high -- the strong activity in asset gathering. So these revenues are growing, thanks to higher management and technology fees for Amundi and the strong commissions in Wealth Management.
The insurance revenues grew by 9.1%, supported by the performance of all of the business lines and of course, by a favorable market effect, particularly in savings and retirement. In the large customers, I talked about the record Q2, in particular, with investment banking, which had a growth of above 63%, excluding FX effect and asset servicing more than 8% growth. In SFS, I was talking about the fact that mobility was impacted by a weaker automobile market, this led in terms of revenues to a quarter to lower results on used cars at Crédit Agricole Auto Bank/Drivalia, but these effects were compensated by the good performance in Personal Finance revenues that was supported by positive price effect.
And then in retail banking, I talked about strong volume growth. But as you can see, we have in the same way as we had that with the regional banks, a very strong upturn in net interest income in France, 17% growth for LCL, so volume and price effects. And we also have an increase in Italy of net interest income by 2%, thanks to an efficient management of the cost of resources and of macro hedging. And of course, the fees increased in all of the geographies in France and in Italy.
So you see all of these green bars for the businesses. All of the businesses are contributing to the growth in revenues. And finally, in the Corporate Center, we integrate the contribution of Banco BPM for EUR 111 million. In fact, at the end of the second quarter in our accounts, we have a 24.9% share of Banco BPM, even though, as you'll see just afterwards, the CET1 is impacted in full by our participation that was brought to 29.3% in July. And so our contribution -- the contribution of Banco BPM to the Corporate Center revenues should increase in the following quarters. And so based upon the current results of Banco BPM, it could be something around EUR 150 million per quarter onward.
Now if I move now to expenses, we have a significant positively -- we have significantly positive jaws this quarter, plus 3.1 percentage points. And we have a limited increase in expenses in all of the businesses. So as you can see on the right, we have some scope effects that are summarized on Slide 34, including Milleis, in insurance, Abanca, and PiùVera, in Italy, and we have integration costs for Indosuez. But besides this, it's mostly the variable compensation increase, which is EUR 75 million linked to the strong performance of Amundi and CACEIS that explains most of the increase in asset gathering and large customers division.
We continue to invest in our development, in particular, in SFS and in the retail banking divisions. In SFS, as you know, we're supporting the strategic launching of CA Savings and CA Deutschland with costs that represent over the first half year around EUR 10 million. I had talked to you about EUR 50 million expected in 2026. We're also investing in the transformation of LCL with EUR 33 million in the first half of the year out of the EUR 95 million expected over 2026. And even as we invest, we are improving operational efficiency because our cost-to-income ratio is at 54.7%, minus 1.2 percentage points H1 over H1, thanks, of course, to our decentralized cost steering model, but also to the integration of recent acquisitions.
I'm thinking in particular of CACEIS, we're fully benefiting from the synergies generated by the integration of RBC Europe, which are going to generate more than EUR 100 million additional net income from 2026, of which 3/4 are linked to cost synergies. And just by the way, the Degroof Petercam integration is progressing also with about 45% of synergies realized. So we're well on track to reach our additional EUR 150 million to EUR 200 million net income target linked to this operation in 2028.
Now moving to cost of risk. The cost of risk decreased Q2 on Q1 and was roughly stable between -- from Q2 to Q2. And this evolution was mainly driven by an increase in Stage 3 provisions. A share of this increase, EUR 128 million, is a technical transfer from Stage 1, 2 to Stage 3 of exposures that are currently being disposed of in CACEIS. And excluding this, incurred risk is at EUR 571 million, and we have the increase Q2 over Q1, which is explained about EUR 60 million in CAPFM by the increased risk on Personal Finance in France due, of course, to the economic environment. We're monitoring this closely as well as some adverse impacts of model revisions.
And in CIB, roughly EUR 100 million by additional bucket transfers from the Stage 1 and Stage 2 to the Stage 3 on a few tickets. So these transfers are not a surprise. These exposures are closely monitored, and they, of course, have an impact on the Stage 1 and Stage 2 cost of risk, which presents a net reversal. But as you see, we have a very prudent provisioning, and that's why you see, by the way, this net reversal in the Q2. And so in the end, there's no surge in loan loss provisions. The annualized cost of risk on outstandings are decreasing since the Q4 2025. The credit quality indicators are very good. The nonperforming loans ratio remains very low and the coverage ratios are very high. And this is going to allow us to absorb any surge in incurred risk.
As you can see, our provisioning is, as always, very prudent, and we have among the best coverage ratios in Europe. Now with that said, of course, we remain cautious, and we continue to monitor closely the corporate customers in retail banking, real estate, construction, distribution, automobile, generally SMEs. But as you see, by the way, on the slide, moving forward, in French Retail Banking, in particular, the cost of risk remains under control.
In this slide, Page 12, you see that we have this additional Stage 3 cost of risk of CAPFM, but everything remains very, very controlled. And in the CIB, as you can see, there's these migrations, but we have very low cost of risk with investment-grade customers and a diversified and balanced assets. And just for Crédit Agricole Italia, the cost of risk is decreasing and credit quality indicators have been improving since the fourth quarter of 2025.
Now moving on to results, net income. All in all, the net income is high, and it's increasing by 1.4% if we exclude the base effect linked to the capital gain realized last year with the deconsolidation of Amundi U.S. for EUR 304 million in the Q2 of last year. So I already mentioned the very strong increase in revenues, the improved operational efficiency, the controlled cost of risk.
Let me just take you a few minutes about the fact that our net income is impacted by the slight decrease in equity accounted entities. We have various opposite effects. We have a decreased contribution from leases, minus EUR 33 million this quarter due to lower margin on used cars. I talked about it. This is really a market effect. A proforma issue on Banco BPM, which is very limited. And this is partially offset by a positive base effect in CACEIS and by positive effects for Amundi, where we have the contribution of ICG for plus EUR 12 million and Victory Capital for today, EUR 28 million. So we have pluses and minuses. And so the evolution of equity accounted entities is very limited.
And of course, we have a higher income tax. First, due to the strong operational performance that I already described. This is an increase in the tax base. But also, we have a couple of base effects, in particular, in insurance, where we had capital gains last year with reduced tax rates. And we also have a higher taxation in Italy, but also even though it's smaller, Poland and Ukraine. But as you can see, despite these elements, net income is increasing, thanks to this very strong increase in gross operating income activity was strong, net interest income high, jaw positive, cost of risk stable. And so this is really the strength of our diversified universal banking model.
This allows us slide -- following slide to generate organic capital. And so as you can see, the capital remained very strong this quarter for CASA with a CET1 ratio of 11.3%, even as we integrate significant M&A activity. So first, if we look at organic capital generation, the 31 bps, this includes an active management of the balance sheet with a new SRT, a significant risk transfer this quarter in CIB. And this brings the total of RWA released, thanks to these optimization measures to EUR 3.8 billion this first half year. Of course, we want to intensify securitizations in the medium-term plan, but we're always making sure that the cost of release is accretive.
This allows us to provision the dividend that Olivier was talking about of EUR 0.57 per share, which I recall will be paid on the 15th of October. We have an M&A impact, which is quite strong with 33 bps related to the increase in our stake in Banco BPM to 29.3% and 4 bps for the integration of Milleis. We have a methodological impact positive for 10 basis points. This includes bits and pieces, but as a reminder, it comes after a couple of negative impacts in the past. So all in all, we're not -- we don't have that strong methodological impact over the last 3 quarters.
And finally, OCI and other impact, plus 12 basis points, notably thanks to market recovery this quarter. And on the right, you see the RWAs are moderately increasing, EUR 2.2 billion over the quarter, with organic growth almost entirely offset by positive methodological effects, and you see the fact that we have this quite stable RWAs in CIB.
Moving to the Group Crédit Agricole because, as you know, our objective is not to build up capital at CASA level. So when we assess the capital strength, the relevant figure is Group Crédit Agricole CET1 ratio, which is above 17%. despite, again, the strong M&A activity, we have the same factors that apply. But as you know, the M&A is lower for Group Crédit Agricole because we have not gone beyond the threshold for the significant financial stake for Group Crédit Agricole. And we have an additional positive methodological effect in the regional banks. This brings the total to 28 bps.
The TLAC and MREL ratios are very comfortable, in particular, because we have front-loaded our medium- to long-term refinancing plan, which is today at close to a 90% refinancing plan for Crédit Agricole, so very prudently managed.
And as you see on the next slide, we have a very comfortable liquidity position with very high levels of liquidity reserves at EUR 475 billion. The LCR and NSFR ratios are excellent. Customer deposits are stable and are diversified, granular, so everything is fine on that front.
And so moving to the next slide, let me just conclude by saying that we're posting strong and growing results, thanks to dynamic activity in all business lines and in particular, thanks to a record performance in the asset gathering division and the dynamic loan production and net interest income in France. This allows us to reach a record level of revenues of EUR 7.4 billion, which bears witness to the strength of our universal model and diversified business mix. As we grow, operational efficiency is controlled with a steady cost of risk, positive jaws, declining cost-to-income ratio even as we invest.
We're investing in AI, as Olivier was saying, with a pooled industrial AI platforms in stablecoins, in the transformation of our businesses in France and in Europe. We integrated Milleis this quarter. We signed a partnership with Cajamar. We're rolling out our savings platform in Germany, and we have increased in our participation in Banco BPM to 29.3%.
And all in all, profitability is very high with a return on tangible equity of 14.3%, and this allows us to maintain strong capital levels and to announce the payment of an interim dividend of EUR 0.57 per share in cash on the 15th of October. So I'm going to stop here.
Thank you for your attention just before the summer break, and we can now open the floor to questions.
[Operator Instructions]
First question is from Giulia Aurora Miotto, Morgan Stanley.
2. Question Answer
The first one on targets. So cost-to-income, 54.7%, RoTE already above 14% in the first half. And maybe you can tell me that it was a particularly conducive environment, but we are 2 years before the end of the plan and you're already ahead of the targets. And especially in light of an acceleration of AI, your focus on AI, your investment in AI, these 2 things combined would probably call for an update or upgrade of targets. Wondering if that is on your mind?
Second, thank you for the clarification on Italy. In the past, you have talked about a deal which makes sense for you, which would be the combination of Crédit Agricole Italia and BAMI. Wondering if that is on the table or likely in your view anytime soon. And then sorry, just a quick numbers thing, Wildfires in France, is there any quantification you can do in terms of impact for Q3?
Great. Thanks, Giulia, for these 3 questions. Now first, in terms of targets and in particular, on cost-to-income ratio. As you know, usually, the cost-to-income ratio in the first quarter is lower than that of the second quarter. So you can't multiply that of H1 by 2 to get the impact of the cost-to-income ratio of the end of the year. However, we had told you a couple of quarters ago, and I'm going to reiterate that, that compared to the pro forma cost-to-income ratio we had in 2025, i.e., 57.4%, we will be decreasing that to -- it will be below the cost-to-income ratio of 2026. And more generally, we can say that the net income is going to continue to increase in 2025 -- in 2026, sorry, compared to 2025.
So we're really on track with our medium- to long-term targets with this movement, a downward movement of cost-to-income ratio and an upward movement in terms of net income, which is starting, of course, in 2026.
Now in terms of costs, of course, we're investing in our AI platform. And this industrial AI platform is going to allow us to create AI agents, customer relationship solutions, but also efficiencies. So indeed, we do want to improve efficiency with AI. But this is one out of a whole number of levers that we're going to use to improve efficiency. As you know, we have a decentralized model. And so each of the businesses are really targeting to lower their cost-to-income ratio to really improve their operational efficiency. We have cross-entity initiatives. We're working on synergies in Italy, we have the synergies due to the acquisitions. And of course, AI is going to help us improve our operational efficiency.
Italy. Now Italy, we have not changed our strategy. Our strategy is that Italy is our domestic -- second domestic market. It's a strong priority for us. As you see, Italy represents 20% of our net income this first half year, so 20.1%. So it's strategic. It's important for us, and we want to continue to develop in Italy organically, but also with the partnerships that we have between the business lines in Crédit Agricole Italia and the business lines and other retail networks and in particular, Banco BPM.
So we are a long-term partner of Banco BPM, and that's also why we strengthened our stake in Banco BPM to 29.3%. We're now, by far, the first shareholder in Banco BPM. And so we're committed to this investment and to the strategic relationship.
Now there's, of course, lots of scenarios on the table. Now we are not going to be the ones who are going to be taking decisions. But what's certain is that with our 29.3% stake, nothing can be done without us, nothing can be done against us. Now of course, one of the preferred scenarios for us would be a merger between Banco BPM and Crédit Agricole Italia because it would generate value for us, and it would allow us also to strengthen our setup in Italy.
But really, in Italy, the strategic market for us, it's a long-term position we have. We really want to build it up in the medium-term plan, we said we wanted to go from 6 million customers to 6.5 million customers. So we're rolling out a lot of initiatives also organically, in particular, digitalization for the professionals, synergies between Crédit Agricole Italia and CACEIS, et cetera.
Regarding your question on the wildfires. So it's been something that has indeed been very shocking for everyone. So our first priority is really to support the victims and the communities and our employees, and we're putting in place a certain number of relief measures for our customers. So we have loan repayment holidays. We have 0 interest emergency cash advances. We have support plans for businesses. We've put in place a EUR 2 million solidarity fund. So that's what we're focusing on right now.
Now in terms of impact, probably the impact is going to be lower than that of the storms impact in the first quarter. But that's the direct impact. There is going to be an indirect impact, nevertheless, with the impact on the macro economy, which will probably hit more on the regional bank in that area, which is Crédit Agricole Aquitaine. But at this stage, we're really focusing on supporting our customers as we always do in the good times and bad times.
Next question is from Tarik El Mejjad, Bank of America.
Just 2 questions, please. I will come back on Italy. I mean, I'm sorry, but you look actually passive but also active at the same time. I mean let me explain. So first, active because you raised your stake. As Mr. Gavalda said, you clearly have your say on any deal. I mean his comment was clear that it doesn't look like supportive to BAMI Banco BPM, Monte Paschi deal, if I understand well. And then passive because clearly also from your comment just now that you're really keen to do BAMI Crédit Agricole. But I mean, do you think this position of being really caring about what government think? I mean we've seen in Europe that any deal that can happen has to be going slightly hostile against different stakeholders, including government to land something. Is that something you intend to consider at some point? I mean, because if you want that deal to happen, clearly, that's what you want. I don't see just being on the sidelines, how that could land.
So -- and question number two is on the cost of risk. Clotilde, you explained very well that part in your comments. But can you just focusing on the Stage 3 ex migration from Stage 1 and 2? What are the areas that showed that flare-ups in Stage 3? And how do you see basically the outlook from there?
Okay. Thank you, Tarik. So in Italy, yes, indeed, we do have a say, sorry, with this 29.3%. We are a key player. We're not necessarily a decision-maker, but we're a key player. And so that's why I was saying that nothing can be done without us. Now regarding other scenarios, we have not received any concrete offer regarding the MPS, Banco BPM rumors that we're hearing in the press. So we're reading the press like you, but we have not received any concrete offer, sorry.
Going forward, do we care about the Italian government? Of course, naturally, we are a long-term player in Italy. It is our second domestic market. It is strategic. And so of course, we care about all of the stakeholders in Italy. It's important for us to continue to support the development of the Italian economy. So naturally, we have to think about all of the stakeholders in this country, which is very important for us.
Now in terms of cost of risk. So yes, there is this technical migration of a few files. I'm not going to tell you the details of the few files naturally. But what I can tell you is that we have a prudent stance in terms of cost of risk, and we have always had a prudent stance. Now in these specific files, which is a little bit specific compared to what you can see usually, the order of magnitude of the reversal of Stage 1 and 2 provisions that feed into the increase in Stage 3 provisions, the order of magnitude is very similar for these few technical migrations for files that have -- that are being currently disposed of.
So we have had a particularly prudent provisioning stance for these specific files for the 128. Besides that, indeed, we have a few tickets for which we have an increased transfer from Stage 1 and 2 to Stage 3 for CACEIS. But in fact, our -- it's limited compared to the view that we can have as to the whole asset -- the quality of our asset base. We have a very diversified and balanced business mix. We have investment-grade customers. As you can see in financing activities, the cost of risk is very low in terms of basis points.
So it's -- we're always monitoring the evolution of the corporate customers. But our corporate customers are solid, are diversified, are counting on us, by the way, to help them diversify, to help them hedge to help them develop internationally. And the NPL ratio for CACEIS is very low. It's below 2%. So this is something that is very a strength of CACEIS with our business mix.
Now moreover, this EUR 571 million in Stage 3 cost of risk is also, but to a lesser extent, due to CAPFM, and that's really the macroeconomic environment, which we're very much monitoring closely. And this is something that we're used to dealing with and that we have been used to dealing with it.
Can I just follow up on Italy very quickly? I mean the -- did you have any ever had, sorry, discussions with the government because contemplating merger, like others did in other geographies in Europe, also an argument of serving better the economy and other stakeholders and improving profitability in the system and so on and so on? Or do you feel discussions cannot even go to that ground? It's more political and you are after all French?
We are discussing all the time with all of the stakeholders. We are a very large bank. And so we're always talking with everyone.
Next question is from Delphine Lee, JPMorgan.
Delphine, we can't hear you. I can't hear you.
Sorry about that. Sorry. So just wanted to come back on Italy, if that's okay. And coming back on what Olivier said a bit earlier. Can you maybe a little bit elaborate on what you mean by when you say that you see it as difficult that a potential Monte Paschi, Banco BPM merger can be value accretive. So if you could just explain a bit more?
And then my second question is on NII, more generally speaking. We've seen some very strong performance in France. Is the guidance still high single-digit for the whole year? And also in Italy, NII has been progressing as well. But is the guidance also still sort of that NII this year is a little bit under pressure, which feels maybe a bit outdated?
Great. All right. I'm not going to comment more in detail regarding the mergers of, in particular, Banco BPM and MPS because what's important for us is to consider more generally, not in one scenario specifically. More generally, we have to consider the positive impact that we will need to get out of any scenario. We have a position where we will make sure that any outcome is value creating for us. So it's not so much a comment on one specific rumor about one specific merger on which, again, we have not reached any -- we have not received any concrete proposal. It's just to say that in any case, whatever happens, we will make sure that any outcome is positive for us. We will make sure that any outcome is value creating for us. So that's really what we have is kind of the way we're thinking about things in Italy.
Now for net interest income, yes, indeed, very strong net interest income, for example, for LCL, 17%. And indeed, I had told you about high single-digit net interest income by the end of the year. We're going to stay on that guidance, maybe it's a little bit prudent. But for 2026 to 2028, what we have told you in the workshop is that we're planning on having an increase in net interest income by 6% over the medium-term plan.
And what is this going to be driven by? We're making the hypothesis that we have a stable liabilities mix. This is an important hypothesis because you remember when there was that strong hike in interest income a couple of years ago, what the negative impact that we have had was this shift in the mix from sight deposits to time deposits. So what we're making is the assumption that it's going to be stable, which is a very reasonable assumption as you consider that the variations in rates are going to be progressive, which is what we're seeing today. And this increase in net interest income should be driven essentially by 2 things: well, three, one, volumes; two, on the liability side, a lower rate on the term deposits because as we renew our balance sheet, the rates are low; and three, on the asset side, higher rates on the new loans because as you can see, there is still a positive difference between the front book and the back book for LCL. We also have, in particular, that for regional banks.
For Italy, yes, indeed, we were talking about a decrease in net interest income. Again, it's probably prudent. It's more or less stable today in the first half year. So I want to remain on this prudent guidance for the end of the year because we have a very competitive market in Italy. We have had an impact -- I mean it's stable over the first half year because we had a decrease in the first quarter, an increase in the second quarter. So I think it's going to remain relatively stable over the year.
Next question is from Stefan Stalmann, Autonomous Research.
I wanted to get back to the moving parts on impaired loans and provisions. I'm not sure I understand that. You have an increase in impaired loans of about EUR 1.4 billion during the quarter. Can you tell us what happened? And maybe how much of that is related to this pending sale of nonperforming loans? And I'm also not quite sure I understand why there would be a technical migration from Stage 2 to Stage 3 potentially related to this pending disposal. And I also don't understand why the Stage 2 provisions of such a portfolio would be similar to the Stage 3 provisions. I mean, usually, Stage 3 should be much higher. Maybe you could add a little bit more detail on that part.
And I also wanted to come back to Italy. And I hear you that you don't want to comment on every scenario, but Olivier was actually very specific saying that he cannot see or difficult to see how the combination of Monte and BPM could create shareholder value. And that's a pretty specific comment. And I was wondering if you had any color on what the basis is on which he reached that view and whether that's already baking into the view, some view on what this combination would mean for CASA.
Okay. So for the cost of risk, thank you for your questions. So yes, indeed, impaired loans has increased by -- from EUR 13.4 billion to EUR 14.8 billion between the end of March and the end of June. So that's EUR 1.4 billion increase, 10%. Now between EUR 500 million and EUR 600 million of that is linked to this technical migration. I'm not going to again go into the different files, but what happens when you have a technical migration is that when you have -- you're relatively certain that the file is going to be disposed of, you know what is the price at which it's going to be disposed of. And so when you have an idea, a good idea as to the price of that, that's when you adjust your provisioning and you put it into incurred risk with a rate of provisioning, which is equivalent to the price at which you can dispose of that. And so sometimes, if you have been very, very prudent in the provisioning before of the Stage 1 and 2 cost of risk for this specific file, the price can be, in fact, close to that provisioning.
And so that's a situation where you can have the same ballpark for plus EUR 128 million and the minus on the other side with the reversal of the Stage 1 and 2 provisions. So it's something -- I agree. It's not something that's habitual. We don't do that usually. But in this specific different cases, we're going to have this effect, which, again, reflects our very prudent provisioning. Of course, we do that in all of our files. But in certain number of files, we have a little bit more specific provisioning.
Now if we take this off, in fact, the impaired loans ratio -- the impaired loans, sorry, increased by about 6% which is much more reasonable. And as I was saying, the NPL ratio is very low for CASA, 2.4%. And the NPL ratio for CACEIS, as I was saying, is below 2% if you correct from this technical migration impact. So very low NPL ratio for CACEIS, below 2% corrected from this, very high loan loss reserves, very high coverage ratio.
Now in Italy, what I can tell you is that, again, what is important for us is creating value for our shareholders. And we have a preferred scenario, yes, a preferred scenario would be to have a merger between Banco BPM and Crédit Agricole Italia. Now it's very difficult for us to be more precise than what Olivier was saying because we have not received a concrete proposal regarding any merger between MPS and Banco BPM. So it's difficult to give you more detail because we do not have a more -- we do not have any concrete proposal. But what I can tell you is that our preferred scenario, which is something that creates value strongly for us, is the scenario of a merger between Banco BPM and Crédit Agricole Italia.
Could I just maybe follow up on the credit part? Is it the fact that you received an indication of interest in these assets or that you tried to sell them? Is that what triggered the reclassification from Stage 2 to Stage 3?
Yes.
Or did these loans just go, yes?
Yes.
That was the case?
Yes, Stefan. Yes, it's a few files that are being disposed of and on which we are discussing a price. So we have a reasonable idea as to the price. And so that's why you can do this technical migration. You have to do it.
First time that I hear that the value indication on a loan drives its Stage 2 or Stage 3 classification.
Well, it's a technical migration linked to files that are currently being disposed of. So it's also because we're in the process of disposal currently. Oftentimes, what you see is you have files that are disposed of, but it's not currently being disposed of.
Next question is from Alberto Artoni, Intesa Sanpaolo.
I have 2, please. The first on French retail and the second one on large customers. On French retail, of course, a fantastic performance this quarter. Just wanted to understand a bit on the NII development, if the likely increase of Livret A, we'll see is going to have an impact and -- or if the other moving parts will massively outweigh what I think might be a negative impact if the Livret A goes to 1.7% as the Bank of France is suggesting.
And the second question is just a clarification on the I think that on the investment banking business in capital markets, you mentioned structured equity activities as one of the reasons for the good performance in the quarter. I just want to understand those products that you sell on the retail network to households and is something that you have been always doing or you're doing more of those things and perhaps is an opportunity to sell more of these products in the future? Yes, just a bit more color on that business.
All right. Thank you, Alberto. On French retail, so indeed, we are expecting an increase by 20 basis points of the Livret A in the month of August. Now in fact, before hedging, as you know, we hedge -- we have a macro hedging of our balance sheet. So we hedge according to the way we model our liabilities and our assets according to the way we evolve with short-term rates, long-term rates, inflation. And so before hedging, you could consider if you did the calculations because we have a lot of that -- the regulated savings that are centralized at the Caisse des Dépôts.
So if you did a before hedging calculation as to the impact on LCL of this 20 basis points impact of the Livret A, you would come to around EUR 10 million of a negative impact between August and December. It's a little bit more for the regional banks naturally because they're more exposed. But of course, we hedge that. And so we modeled the Livret A in the way it evolves based upon interest rates and inflation. So the -- since we hedge that, we don't hedge 100%, of course.
But since we hedge that, the impact on the income of retail banking, be it regional banks or LCL is very limited. The drivers going forward are going to be volumes, are going to be the evolution of the price of our balance sheet on the time deposits, and it's going to be the difference in the front book and the back book on the asset side.
For capital markets, in fact, yes, so in investment banking, we have an increase by more than 60% of activity, which is due in particular to the excellent performance of structured equity activities, equity derivatives. So this does include distribution that we do in the retail network, but not only Equity derivatives is something that we're developing. We have been developing it. It's very small for us as of today to tell you the truth.
As you know, you know that investment banking and capital markets is about half of our revenues and the other half is financing, finance market. And within Capital Markets and Investment Banking, you have investment banking and FICC. So it's very small as of today, but we are developing it. It's in our growth trajectory in the medium-term plan. So we want to continue to develop indeed for the retail networks, but we also want to increase the volumes, in particular, by opening new markets across Asia. We have sustained activity in the U.S., for example. So it's not only the retail market, the retail networks in France.
Next question is from Sharath Kumar, Deutsche Bank.
All right. So I think we're on Sharath's voicemail, probably.
Next question is from Matthew Clark, Mediobanca.
So 2 questions, again on NPLs and LCL, NII, please. So on the NPLs and in particular, NPLs in CACEIS, what I don't understand is that the coverage ratio has gone down from 90-something percent to 60% despite the big increase in gross NPLs by the EUR 1.4 billion. So we can kind of impute from the component you said that was a technical migration that, that part has a fairly low coverage ratio from the sort of EUR 100-plus million of provisions from S2 to S3 covering the EUR 500 million to EUR 600 million you alluded to, but that also implies a very low, if not negligible coverage ratio for the other NPLs that have come through in that division.
So can you just help us understand why there would be such a low or negligible coverage on the other incremental NPLs in CACEIS? That's a rather long-winded question one.
Question 2 is on LCL NII. It looks like you're already at the 2028 target NII level from annualizing the second quarter. So do you really expect no growth between now, this quarter and 2028? And if so, why?
All right. Thanks, Matt. So for the coverage ratio, when you have the coverage ratio, it's a ratio between the Stage 1 and 2 and Stage 3 provisions on the denominator -- on the numerator, sorry. And on the denominator, you're going to have your impaired loans. Now when you have migrations between Stage 1 and 2 to Stage 3, you're going to have a slight increase in impaired loans. We talked about that, answering Stefan's question. And then you're going to have a coverage ratio that can -- the numerator that can change depending on the mix between the Stage 1 and 2 and Stage 3. We do have a decrease here in the coverage ratio of CASA by 5.4 percentage points. This is after the disposal of the files, if we had integrated the disposal of the files, the coverage ratio would have been lower by about between 1 and 2 percentage points.
So we do have -- after the disposal, we have the coverage ratio that goes back up a little bit. But it's true that the coverage ratio decreases a little bit due to the fact that we are doing this migration to Stage 3 and therefore, that there's nonperforming loans that is increasing a little bit. But again, this is something -- our coverage ratio remains very high in CASA, 67.2%, very high at the level of the group. And it's quite logical that when you have a very large amount of Stage 1 and 2 provisions because we have out of the EUR 9.7 billion of loan loss reserves, EUR 3.2 billion in Stage 1 and Stage 2 provisions. It's natural that at one point, you use these provisions to have this migration in order to absorb the incurred risk.
So going forward, this is also something that is going to protect us from any surge in incurred risk going forward.
Now in terms of net interest income, we are going to continue to have a positive impact going forward. It's true that in variation, the increase this quarter has been very strong due also to a situation in 2022, where we had not started this normalization yet. Today, we're really in a normalization, normalization of the price of our term deposits, normalization also because we still have this difference between the front book and the back book. So this normalization takes some time. So the rate of growth is going to be slower going forward. But nevertheless, we still have these elements that are positive drivers of net interest income going forward.
But you gave this target of EUR 2.3 billion in 2028 8 weeks ago. Is it -- so you're saying it's already stale? The target you gave at the end of May. So with 1 month left to go from May, I don't quite understand.
Yes. You have to consider the target in terms of the rate of growth. The rate of growth is 6%. And so we have strong still drivers of growth, but very much more progressive going forward.
Next question is from Anke Reingen, RBC.
Just 2 quick ones, please. Sorry to come back to Italy. Just one thing still not clear to me. So you basically say your preferred option is a combination of your Italian operation with BPM. But what are you proactively doing to develop your preferred option apart from obviously increasing your stake to 29%? And would you be happy to just stay at the 29%? Or is that never going to be an end state?
I think that the increase of 29.3% is pretty proactive. In fact, if you're asking me what we can do proactively. I think this is a pretty proactive move. This allows us to really be key in the setup. This allows us to make sure that nothing takes place without us or against us. So there's so many different scenarios on the table. It's difficult to give you any more elements about that.
But I would not say that the increase of to 29.3% was passive. It's really something where we have proactively shown how Italy was important for us and how our partnership with Banco BPM was important for us in the long term.
Yes. No, sure. I meant in terms of in addition to that, would you be happy to stay at 29%?
There's lots of scenarios on the table as of today. What's going to be important for us is to create value for us and for our stakeholders.
Next question is from Sharath Kumar, Deutsche Bank.
Apologies for the earlier technical issues.
That's okay.
Hello?
Yes, we can hear you just fine.
First one is on Specialized Financial Services. Can you quantify the weakness associated with used car sales? And do you think you have reached an inflection point or there is more pain to come? And previously, you had said like a double-digit contribution for 2026 for leases. Do you have any updated guidance in light of the second quarter loss?
Second is on tax rate. You did speak about the reasons for the higher income tax rate in the second quarter. Tax rate was nearly 28%. So do you provide any guidance for the expected tax rate going forward? Consensus currently is factoring only a 24% income tax rate.
And lastly, a quick one on capital. Last quarter, we had a minus 17 basis points from model and OCI adjustments. This quarter, it was plus 22. So how should we think about this impact on an annual basis, at least on the model adjustments, do you give any guidance on an annual basis?
All right. Thanks, Sharath. So first of all, on CAPFM, in fact, the impact of the used cars market is really what explains the deterioration in the performance of Leases and Crédit Agricole Auto Bank. This is what explains the deterioration of the performance. Now why is this taking place. We have a situation where the new sales of new vehicles have been decreasing by 20% compared to their pre-COVID level. We have the used cars market for which the prices have normalized and have decreased by about 12% since their highest level of '22 and '23. We also have a situation that has been worsened for us because we have a partner which is Stellantis by the underperformance of Stellantis in Europe. And we also have structural drivers in the market with the development of the electric cars, with the entry of Europe and China, et cetera, the impact on consumption of the crisis, et cetera.
So we are in a situation where the market is weighing on our performance. So the year will not be a good year for the automobile activities of CAPFM, all the more so as we have been one of the last players to enter the market at a time where the prices for the used cars was high. So we have -- we will not have a good year in 2026. We're going to have to wait, I think, for within 2027 to start seeing things that can pick up a little bit more, but we don't have visibility as to that before 2027.
So naturally, we're launching structural measures to restore productivity, value-driven pricing. We're diversifying our distribution channels. We're improving the remarketing processes, et cetera. We have a strong foundation with 900,000 vehicles in our fleet. We have a very resilient model, but we are impacted by the automobile market. And so this is something that is going to take place that is going to weigh on our activity for the year at least.
In terms of tax rate, in fact, last year was a year where things were maybe less normal because last year, we had the effect of the deconsolidation of Amundi U.S. and we had base effects that were favorable, in particular for insurance. I was talking about capital gains that benefited from a low tax rate. So it's always very difficult to talk about what we can do in terms of guidance going forward. But I would not consider 2025 to be more a normal year than 2026.
And for methodology, so indeed, there have been pluses and minuses. So there was a lot of pluses this quarter. There were minuses last quarter and minuses in the Q4. I think what we can expect going down the line over the next year is there's still going to be probably pluses and minuses, but more or less, it should be relatively neutral until the end of the year on our capital.
We have no more questions registered at this time.
Thank you. Well, thank you very much, everyone. So it really was thank you for the very stimulating questions. Thank you. Of course, we're going to see you again at -- when we come back in September, and we have a workshop that is planned in insurance in the month of November -- 25th of November. So we're going to be very happy, hopefully, to see you all in person for this workshop. And of course, we're going to talk for the Q3 results naturally and during the roadshows before. So everyone, I hope you're having a holiday break. So enjoy everyone. Thank you.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.
Crédit Agricole — Q2 2026 Earnings Call
Crédit Agricole — Q2 2026 Earnings Call
Strong Q2/H1 results: record revenues, high profitability, interim dividend and active Italy expansion, but watch used-car losses and technical provisioning.
📊 Quarter at a Glance
- Group revenues: €10.9bn (+12.9% YoY Q2)
- CASA revenues: €7.4bn (record; +7.7% q/q)
- Net income (CASA): €2.1bn (+1.4% proforma)
- Profitability & capital: H1 cost-to-income 54.7%, Return on Tangible Equity (RoTE) 14.3%, CASA CET1 (Common Equity Tier 1) 11.3%
🎯 What Management Says
- Italy strategy: Increased stake in Banco BPM to 29.3% as a long‑term, active partner; merger scenarios considered only if value‑accretive.
- Digital & product push: Rolling out CA Savings across Europe and launching CA Deutschland; record digital acquisition and customer additions.
- AI & innovation: €500m IT plan with €150m equity to create a group AI/data company, plus tokenized finance initiatives including CASA EURXT stablecoin.
🔭 Outlook & Guidance
- Dividend: Interim cash dividend €0.57/share (50% of H1 distributable), payable 15 Oct.
- NII guidance: Management maintains high‑single‑digit NII outlook for 2026 and medium‑term NII growth ~6% (2026–28) assumption of stable liability mix.
- Risks: Used‑car weakness in Specialized Financial Services and technical Stage migrations on a few disposals; CET1 target remains >11% for CASA.
❓ Analyst Q&A
- Italy/M&A: Management kept options open—prefers a Banco BPM + Crédit Agricole Italia path but will only back deals that create long‑term value; active dialogue with stakeholders, including governments.
- Provisions/Stage moves: ~€500–600m of impaired loan increase tied to technical Stage 1/2→3 migrations for assets slated for disposal; provisioning deemed prudent.
- Auto finance drag: CAPFM hit by softer used‑car prices and remarketing; management expects pressure through 2026 with structural fixes and possible recovery in 2027.
⚡ Bottom Line
- Takeaway: Crédit Agricole shows strong revenue and profitability momentum, a shareholder‑friendly interim dividend and clear strategic moves (Italy, digital, AI). Monitor auto‑finance headwinds and provisioning technicals; Banco BPM exposure and any Italian consolidation remain key catalysts and risks.
Crédit Agricole — Q1 2026 Earnings Call
1. Management Discussion
Good afternoon. This is the conference operator. Welcome, and thank you for joining the Crédit Agricole First Quarter 2026 Results Conference Call. [Operator Instructions]
At this time, I would like to turn the conference over to Ms. Clotilde L’Angevin, Deputy General Manager of Crédit Agricole. Please go ahead, madam.
Thank you. Thank you very much. Hello, everybody. I'm conscious that this is a very busy day for you, so I'm going to try to be short. And so starting on Page 4 to tell you that we have solid results this quarter for Crédit Agricole S.A., EUR 1.7 billion despite the turbulent environment.
All of the Q1 2025 figures here are presented in pro forma. So for the Q1 2026, we don't change anything. But to compare it with the past, we consider that in the past, Banco BPM had been equity accounted at 20.1%. Now net income, therefore, increased by 1.8 percentage points sorry, pro forma, thanks to an increase in revenues to EUR 7 billion, supported by sustained activity, ongoing digitalization and strong client capture. We also have strong operational efficiency. The cost-to-income ratio improved by 0.6 percentage points quarter-on-quarter in CASA. And we have well-controlled risks with cautious provisioning on this quarter in the context of the conflicts in the Middle East.
And all of this leads to a strong profitability, and we're posting a high ROTE at 13.7%. CET1 ratio is at 11.4%, well above the 11% target, which is impacted notably by M&A operations. We increased our position this quarter in Banco BPM Capital, now reaching 22.9% since we decided to seize the opportunity of a dip in the share price in March to continue to build up our stake, but no change in our strategy.
The group continues to develop. We announced this quarter the acquisition of a small Ukrainian bank, Lviv in the west of the country that will allow Crédit Agricole Ukraine to strengthen its positions with SMEs and with corporates in the agri sector. And we launched a couple of weeks ago, the European digital platform, Crédit Agricole Savings in Germany, only 5 months after it was announced in our Medium-term Plan Act 2028.
On the next slide, you see the key figures. We have a good performance of the group Crédit Agricole, with a strong increase in net income, 5.5% driven by revenues, 2.8%, which reached this quarter the record level of EUR 10 billion. In particular, this is thanks to the strong performance of regional banks revenues, 7.8%, which benefited from a spectacular upturn in net interest income by 34%. There is a cautious provisioning in all of the business lines in the context of geopolitical uncertainty, which leads to an increase in cost of risk on outstandings over 4 rolling quarters this quarter, but it remains under control.
And of course, we maintain a strong position in terms of solvency and liquidity. So I talked to you about the impact of Banco BPM. We also have unfavorable market effects on insurance OCIs and on market RWAs for the CET1 of CASA. And we also have a front-loading of the consumption of [indiscernible] RWAs in order to accompany their customers. We can come to that a little bit later on when we talk about solvency.
Now moving to Slide 7, Activity. Activity was sustained across all of the business lines this quarter. This supported, in fact, the revenues. So what we can note this quarter is a strong customer capture, 600,000 new customers this quarter, 450,000 in France in retail banking. And what's important is that it also benefited from increased digital acquisition in France and in Italy. So we had client capture that was boosted by digital acquisition, in particular, for LCL with the launch of by LCL Pro, which explains the increase in customer capture for the professionals, 20% of capture on professionals was digital.
Digital acquisition also explains 40% of client capture for Crédit Agricole Italia. And we're launching several 100% self-care digital solutions in France in home loans, in savings with the launch of full self-care securities accounts and share savings plans and with a new life insurance contract [indiscernible] . And in the regional bank, we're going to launch a full digital onboarding in a couple of days.
Now if I move business by business to activity, in retail banking in France, credit production was strong, even though this performance was mainly driven by regional banks production in a very competitive market. Corporate and professionals loan growth was 7%. And in Italy, we had a very dynamic loan production for the corporates times 2 quarter-on-quarter in the context of a competitive market. And production is very dynamic in Poland, in particular for individuals and in Egypt. The loans outstanding in the on-balance sheet assets continued to grow in France and in Italy, also the off-balance sheet assets. And so therefore, asset gathering division posted a very dynamic quarter. Thanks to insurance, where we have an increase in premium income on all of the activities, savings and retirement, personal insurance, P&C.
We had a record net inflows of EUR 5.7 billion, of which EUR 1.5 billion, thanks to the [ Avient ] solution, and we reached EUR 18 million contracts in P&C this quarter. We have a weather-related effect impact, but activity is still very strong. For Amundi, we have very strong net inflows and growing AUM. The medium- to long-term inflows are strong, in particular, thanks to ETFs and index-based solutions and activity is dynamic in the third-party distributions and retirement solutions.
And finally, in Wealth Management, the AUMs are increasing, and you can note the fact that we finalized the acquisition of the wealth management customers of BNP in Monaco this quarter. For Personal Finance and Mobility, production increased year-on-year despite the unfavorable conditions in the car markets that weighed on our mobility activity and in particular, on remarketing, we had an increase in the stock of used cars this quarter, but production increased year-on-year for Personal Finance and Mobility.
And finally, in Large Customers division, the CIB posted its second best quarter after the record level that it had reached in the first quarter of last year. And so excluding FX of that impact, CIB is stable at this level, thanks to an excellent performance of investment banking and despite the wait-and-see attitude of our corporate customers and financing activities and the fact that FICC was impacted by lower activity on primary markets.
And finally, for [indiscernible] we had a high level of settlement and delivery volumes. It was boosted by market volatility. And of course, we continue to transform our business after the integration of the European activities of RBC. Now this feeds into revenues on the next slide that increased by 0.9% this quarter. If we read it on a like-for-like basis, i.e., if we exclude the Amundi U.S. deconsolidation for EUR 90 million in the first quarter of last year, and the impact of the first consolidation of ICG shares this quarter for EUR 68 million this quarter, revenues increased by 3.2%, sorry, Q1, Q1. Like-for-like, all of the business lines contributed positively to the growth in revenues, except for the large customers division, which is impacted by a EUR 69 million FX effect.
Asset gathering revenues decreased due to the scope effect. But excluding these 2 scope effects, we have an increase of EUR 59 million. It's mainly thanks to higher management fees and performance fees at Amundi, which more than offset a slight decline in insurance revenues impacted by the weather-related events that I talked to you about, storms and floods in P&C and impacted by a deterioration of market conditions in savings and retirement that was mostly absorbed by the CSM, but we have a residual revenue impact.
For large customers, I was telling you that we have a very high quarter, second best after the record level that it reached in Q1 2025. For SFS, we have a positive price effect, which was offset this quarter by a change in the residual values of the cars in Grivalia. Grivalia, as you know, is a subsidy of Crédit Agricole Alpha Bank. So this is why it has an impact on revenues.
For retail banking, we had a very strong upturn in net interest income for LCL, plus 13% and a stability of net interest income in Italy. And we can see right now what we talked about in the medium-term plan for France, an increase in the net interest income, thanks to a reduction in the cost of resources, a normalization of the customer deposit mix and the rate effect and also the gradual repricing of loans and fees increased in all geographies. And finally, on the Corporate Center, we had favorable volatility effects.
Now moving to expenses. We have, again, on a like-for-like basis, we have positive jaws, 1.7 percentage points. So we do have a few positive factors, in particular, the favorable FX impact on CIB costs and decreased provisions for variable compensation. But more importantly, operational efficiency is improving. We have this quarter, the full effect of the synergies for the [indiscernible] RBC operation, and therefore, we can confirm EUR 100 million additional income in 2026 linked to this operation.
The group integration with Amundi is progressing also. We now have 40% of synergies that are realized. And Amundi and Crédit Agricole Italia are expecting cost savings in the subsequent quarters. We talked about that at the end of last year. And these positive jaws that we observe, we can observe them despite the fact that we continue to invest in our investments. We continue to invest in the transformation of LCL, as you can see here in retail banking. And we invest also in SFS for our Crédit Agricole savings and development platform in Germany, for which the total costs are expected to be below EUR 50 million in 2026.
Now moving to cost of risk. Cost of risk, in fact, decreased this quarter compared to the Q4 2025, but increased by 32% compared to Q1 2025, mainly due to our prudent provisioning in the context of geopolitical and economic uncertainty. Because as you can see, most of the increase is due to Stage 1 and Stage 2 provisioning, about EUR 100 million, including scenario updates. We adjusted the weighting of the different scenarios. This is for about EUR 38 million. And we added overlays, geographic and sectorial overlays related to the conflict in the Middle East, around EUR 28 million.
So we have about EUR 60 million provisioning due to the Middle East conflict. We have other provisions that include legal risk that represent EUR 39 million, and those include an adjustment of EUR 17 million for the U.K. card loan litigation after the FCA released the conclusions of their consultation that they had launched at the end of last year. And so as you can see, besides these elements, the Stage 3 incurred cost of risk is very close to the Q1 2025 levels after a significant increase in Q4 2025. And if we look at what happens by business line, half of Stage 3 and total cost of risk is explained by SFS with CAPSM being the main contributor, but the increase in cost of risk for CAPSM is mainly driven by these S1S2 additions. The Stage 3 provisions are relatively stable and they're even decreasing, in fact, due to successful sales of NPL portfolios.
The increase in CIB is essentially due to Stage 1 and Stage 2 provisions linked to the Middle East conflict and the cost of risk remains broadly low with investment-grade customers mainly and a diversified and a balanced geopolitical risk. For French Retail Banking, the cost of risk is under control after a strong increase in the Q4. The default flow remains steady, both for LCL and the regional banks, and it's mainly driven by professionals and SMEs. So what we're doing is we're continuing to monitor quite closely the same sectors that we talked about last year, retail, distribution, automobile transportation for LCL and for the regional banks, real estate professionals, construction and farmers.
And in Italy, cost of risk is decreasing and credit quality indicators are improving. So to conclude on this, there's no surge in loan loss provisions we have an annualized cost of risk on outstandings that decreased Q1, Q4 and our credit quality indicators remain at a very good level. We have the NPLs that are stable. We have coverage ratio for CASA and loan loss reserves that are increasing, which will allow us to absorb surges in Stage 3 cost of risk going forward. As you know, our provisioning is always prudent, and that's also why, as I said, we remain cautious, and we continue to monitor closely these sectors that I was talking about.
Skipping Slide 11 to move on to the Slide 12 on income. In fact, we have a solid income in a volatile environment. I just wanted to make 2 comments, the fact that we have equity accounted entities that are increasing. We have a decrease for SFS for leases related to losses on remarketing activity in the current automobile context, and we have an unfavorable base effect in China, but we have an up for asset gathering related to the ICG first consolidation impact. This is a one-off of EUR 85 million. And we also have a victory capital scope effect, which is the run contribution this quarter, thanks to synergies.
So we now have ICG at 5.2%, and we plan to increase it to 9.9% over the rest of the year. And so next quarter, we're going to have a regular contribution in our equity account on ICG, but for this time, it's a one-off. And also, you have to recall that we're benefiting this quarter from the fact that we do not bear minority interest on [indiscernible] any longer compared to EUR 35 million per quarter in the Q1 2025. But most importantly, gross operating income is increasing on a like-for-like basis by 5.5%. We have 1.8% net income growth to EUR 1,676 million. So a very strong performance this quarter, thanks to strong activity and good operational efficiency.
Solvency, now we have a very high level of capital this quarter, and the CET1 ratio is at 11.4%, which is still well above our target at 11%. Thanks to retained results, but we did have a decrease from 11.8% to 11.4% due to a certain number of elements. First, we have organic growth, 23 basis points. In particular, with an impact of CIB, which accounts for 14 basis points. Why? Because we have a couple of elements. We can come back to that afterwards, but we have, in particular, a market impact on the RWAs. And we also have a front-loading of the annual RWA budget in the first quarter for TAI in the context of strong activity in March to support the customers of [indiscernible] That's the first dimension. Second, we have an M&A impact, 17 basis points, out of which we have 14 basis points linked to the increase in our stake in Banco BPM to 22.9% that I was talking about. In fact, this gives me the opportunity to mention the fact that in our past acquisitions, we completed the analysis that we did at the end of last year that showed that we had met our ROI criteria. In addition to these figures, we computed the average return on capital. You have that in the annex, and it's around 18%. So a quite profitable M&A past acquisitions.
So organic growth, M&A. Finally, we have a methodological impact with CRR 3 adjustments, and we have market effects on the insurance OCIs due to the rate spread and equity fluctuations by 4 basis points. So all in all, we remain at a very strong level of CET1 ratio for [indiscernible] 11.4%, which allows us to provision EUR 0.26 per share in terms of dividend. The RWAs are increasing also due to a foreign effect, foreign exchange impact for CACIB. This foreign exchange impact has no effect on the CET1 because, as you know, we immunize our CET1 ratio against adverse foreign exchange fluctuations on the dollar by neutralizing the impact on the numerator, but you do have that in the increase in the RWAs.
Moving to the slide on the CET1 ratio of Group Crédit Agricole. We have very strong capital at this level. As you know, our objective is not to accumulate capital at the level of CASA. So the relevant figure for the group is that of group Crédit Agricole. We're very comfortably above our SREP requirement, which, as you know, has increased by 60 basis points this quarter due to the increase in the systemic buffer, but we're still very comfortable with 670 basis points above the requirement. And we have more or less the same impact that we had for CASA that I talked about. We have a little bit more limited impact of Banco BPM due to the exemption threshold that I was talking to you about last time.
RWAs are increasing a little bit due to technical adjustments on the Basel IV impact on the corporate RWAs of the regional banks. And the leverage ratio is very comfortable as well as the TLAC and the MREL ratio. On liquidity on the next slide, very comfortable liquidity position, very high level of liquidity reserves, EUR 475 billion. The LCR and NSFR ratios are excellent. And just to tell you that almost 2/3 of our funding plan had already been completed during the first quarter.
So we're very comfortable also in terms of funding plan. And as you can see here, we have stable customer deposits and very diversified and granular deposits.
On the next slide, on transitions, we presented new targets in our Act 2028 plan. Our objective, as you know, is to be a leader in customer capture and technology and, of course, a leader in transition, and we reaffirmed our net zero commitments. And so we have new targets, which are the following: one, to reach a green ground ratio of 90 on 10. So we're well on track to reach this.
Our second target is to reach EUR 240 billion in financing of environmental and social transition. The split today is 65% environment and 35% social. Again, we're well on track. And finally, [indiscernible] should reach EUR 1 billion in annual revenues from sustainable finance. And just note that on the 24th of April, Amundi announced that they would be the asset manager of the GGBI fund. So that's something we're proud as well.
And so coming to the last slide that I'm going to comment on Slide 17, to conclude by saying that net income increased this quarter pro forma [indiscernible] in the group. Thanks to strong activity in all of the businesses in asset management, in insurance, thanks also to strong improvement in net interest income in France. We conquered customers. We accelerated digitalization. We rolled out -- started to roll out our medium-term plan with the launch of this European digital platform, CA Savings in Germany. We announced the acquisition this quarter with Small Ukrainian Bank. We increased our position in Banco BPM Capital that now reaches 22.9%. And so revenues increased to EUR 7 billion, thanks to this activity, digitalization and strong client capture.
Operational efficiency is strong with favorable jobs and an improvement in cost-to-income ratio. Our risks are well controlled. We have cautious provisioning in the context of the conflict in the Middle East. And all of this leads to strong profitability. We're posting a high ROTE ratio at 13.7%. So these are very strong and solid results in an uncertain environment.
I'm going to stop here. Thank you very much for your attention, and we can now open the floor to questions.
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[Operator Instructions]
The first question is from Giulia Miotto, Morgan Stanley.
2. Question Answer
I have 2. So first of all, on Vamil, you have increased the stake to 22.9%, but you have room to increase more to 29%. So how should we think about this one? Shall we assume that whenever there is a dip, you are interested to increase this? And also, in the past, you have stated that your preferred outcome would be a merger. Is that still how you're thinking about that? So that's the first question.
The second one is instead on the launch in Germany, you said it's a couple of weeks old. Can you perhaps share some stats on how that is going, how you launched, what type of clients you are attracting, that would be super interesting. And then -- sorry, I actually have a final one, a number -- question on SFS. Revenues were down quarter-on-quarter. Costs were up. Any comment on the evolution of this business?
All right. Thank you, Giulio, for your questions. So first, on Banco BPM. So first of all, maybe to explain a little bit, we have an authorization by the ECB to cross the 20% threshold and therefore, exercise significant influence without taking control. So we see the opportunity of a dip in the stock price of Banco BPM to go beyond our 20.1% stake. And we did this for market reasons, we're not changing our long-term strategy. And our long-term strategy is really to be able to contribute to the value creation of Banco BPM. And so that's why we submitted our own list of candidates for the directors of Banco BPM as well as our own list of candidates for the statutory audit rules in order to offer a positive contribution to government, holding more than 20% of capital.
So our objective was to promote the creation of long-term value by presenting candidates with very solid and relevant expertise, and we had 4 directors that were selected at the end of the AGM, which corresponds, in fact, to our stake of 22.9%. So we're not ruling ever going out beyond, but you have to bear in mind that the authorization that we requested from the ECB was to cross the 20.1% threshold and therefore, exercise significant influence without taking control.
On your question regarding the different scenarios, as always, there's a lot of scenarios that are possible. Most of them don't depend on us. They're positive for us because we have a strong position. We want to position ourselves as a long-term partner of Banco BPM. And I just want to remind you of the fact that our strategy has not changed in Italy. We have this partnership with Banco BPM, but we really want to develop our universal banking model in the long term, in particular, with Crédit Agricole Italia for which we want to develop digitalization synergies with the other businesses. And we also want to develop these businesses, which are all present in Italy.
So no change in this strategy, but our strong position allows us to be comfortable and as a long-term partner of Banco BPM. That's on your first question.
On your second question, yes, indeed, it's a couple of weeks old, but we're confident as to the success of this savings platform in Germany. So just to recall, in the medium-term plan, we said that we wanted to target 2 million customers. We're now at 1 million customers. We have EUR 15 billion in on-balance sheet savings, which we want to double in Germany. So the savings platform is going to help us do that. In fact, it's relatively simple because we already have the legal entity, Crédit Agricole, what we're doing is we're building with a very low cost, in fact, it's less than EUR 10 million. This savings platform that will be turned into an app at the end of the year in order to provide also day-to-day banking. And what we consider to be our competitive edge is the fact that compared to a lot of competitors who have a limited number of on-balance sheet solutions. We have 7 offers in terms of on-balance sheet savings.
So this is going to be interesting for the targets that we have, which are mass affluent and affluent customers. And then down the line, what we want to do is we want to expand by plugging onto that the off-balance sheet solutions, i.e., Amundi, Crédit Agricole to really expand on the offer. But even with these 7 products that we have, we consider that we already have a competitive edge.
So that was on Germany. Now on SFS. maybe if we look on SFS, maybe a little bit more widely because we have a certain number of drivers for SFS. We have consumer finance per se for which we have strong positive price effects. And then we have a revenue impact of the second dimension, which is mobility. Now how is this working in terms of mobility? Now remember, in the Q4, we had talked about the reviewal of remarketing values of the vehicles for leases. Leases is equity accounted, but we also have leasing activity in Crédit Agricole Bank, which represents revenues for us. And so what happened in the Q1 was that in the first quarter, we have, as you know, an automobile market that is still slowing down, and this has impacted some of our partners, particularly in electronic electric cars. And so what we did for Crédit Agricole Bank was to adjust the residual value of our vehicles portfolio, in particular, in the U.K. and in Italy. But production is increasing for Crédit Agricole Bank, both compared to Q1 2025 and compared to Q4 2025. So we have a production that is increasing, but we have a. negative impact of this revision of residual values at Gvalia. And we also have an impact at [indiscernible] which is due most here now to a decrease in car retail performance due to the increase in the stock of used vehicles.
So we have to kind of sum it up, we have an automobile market that is depressed and in particular, with a certain number of players with which we have strong commercial activity ties who have had observed an increase in the stock of used cars. This has an impact on the residual value and the marketing value of our vehicles. But down the line, we're developing the drivers of profitability for mobility generally. Value-driven pricing, diversification of distribution channels, the improvement of remarketing processes with IT tools, efficiency. So of course, the evolution of the market is going to be key. And of course, there is a sensitivity. There is sensitivity of the residual values that every quarter have to be adjusted. But we have these drivers going forward, which allow us to be confident on the, in particular, the restoration of profitability for leases.
The next question is from Jacques-Henri Gaulard, Kepler.
If I may come back on SFS for a minute, I think the issue I have with it is the fact that it's sort of supposed to actually improve, and it seems the improvement really takes a lot of time. So it's more about getting a sense of where you think this business is going to turn around both at revenue level, but also on the equity accounted side. And when can you say, okay, we've definitely turned the page of that, and we're going to be able to actually look forward to, I don't know, second half of this year of 2027. That's the first question. The second is on capital. I mean, really, it happens that you had the consolidation of BPM. It's more the fact that everything being equal, do you think that we can proxy the CET1 towards the end of the year as being more or less now the retained earnings times 3, whatever that is? And are you expecting any sort of turbulence that could actually derail from that?
All right. Thank you, Jacques Henry. So in terms of inflection, we have to be very cautious because we do depend on the automobile market. And we do have, as I was saying, a strong sensitivity of the remarketing value of our automobiles to the stock of the vehicles of the used car vehicles. And the stock of the used car vehicles also depends on the capacity, the production capacity of a lot of our partners.
So for example, we're confident, for example, that Tesla is going to pick up. [indiscernible] which is our partner in China, also, there are more difficulties for [ Stellantis ], but this is something that really depends on the market. Now profitability will pick up over the year, but it's true that we will have an effect of, in particular, the revision of remarketing value of the used cars in the Q4. We will going to carry a little bit of that effect from the next quarters because it does have an impact on the price that we're going to resell our cars at.
So there will be an impact that will continue in 2026, but we are in a reversal, of course, compared to the Q4 of 2025. Now in terms of CET1, maybe to just take the opportunity of your question to really come back a little bit to the different elements that can explain the evolution that we have here in terms of the capital for CASA. So you're talking about what we can see by the end of the year. The guidance that I can give you for the end of the year is more that for the medium-term plan.
For the medium-term plan, we're still -- we talked to you about the fact that we would have strategic flexibility of 150 basis points by the end of 2028 that could be used for M&A or for an exceptional dividend if we did not use that type of M&A. This quarter, we have used about 16 basis points, 16, 17 basis points for M&A. And so excluding that, we're still very comfortable with our strategic flexibility at the end of the plan. And we're very comfortable also with the CET1 ratio that should remain comfortable by the end of 2026.
Now why is that is that we're going to have indeed retained earnings. And what's also interesting is that a part of the impact of the RWAs of CACIB this quarter is, in particular, due to market activities, about EUR 3.1 billion in terms of market activities, as you can see on the CET1 slide. And we can say that roughly 2/3 of that are potentially reversible if the markets normalize. We have a volatility effect on the SAR of the trading portfolio. We have a trading book counterparty risk. These 2 effects are effects that could be reversible. So that's maybe -- if we break down the RWAs of CAFI, I guess we can say we have 3 dimensions. One is an FX effect, EUR 1 billion linked to the appreciation of the dollar between the Q4 and the Q1. Two is this effect linked to the market activities of which 2/3 are potentially reversible. And the rest is a front-loading of organic growth. We often have a front-loading of organic growth for the CIB in the first half of the year. And so we expect they're going to have the impact on income on revenue of that also by the end of the year.
But again, all in all, we're comfortable with our CET1 ratio end of the year and 2028 and more importantly, with the strategic flexibility we were talking about in the medium-term plan.
The next question is from Delphine Lee, JPMorgan
So first one is just double checking the guidance on net interest income that for LCL remains high single digit because obviously, that would imply a slowdown compared to Q1. And also what do you factor in for [indiscernible] in your guidance? And also secondly, on [indiscernible] , I think you previously guided to for the year to have a bit of pressure on NII. Is that still the case? And is it something we should expect for the coming quarters? And then my last question is just to come back on Banco BPM. Just wanted to have a little bit of your thoughts around sort of the M&A scenarios. I know you mentioned they're not in your control. It looks like discussions have moved from Cariparma to now Monte Paschi.
So just trying to understand a little bit sort of what you think could be possible for the group in terms of defending partnerships?
All right. Thank you, Delphine, for your questions. So maybe first on net interest income for LCL, there is no change in our high single-digit guidance for 2026. Even though it's true that the rate scenario, in fact, you still have these 3 effects that I was talking to you about before.
On the asset side, you have a repricing. And the marginal increase in the rate scenario is favorable in this respect. Long-term rate increase is favorable for this repricing. It depends on the competitive capacity of LCL to reprice, but the rates are increasing in LCL and the regional banks. First point. Then you have on the liability side, you have the short-term rate where you can have a slight increase that can decrease the positive impact because you know that for the liabilities, the positive effect is when the cost of resources decreases. But we're well hedged against any increase in short-term rates because this time around, we don't have a real shock to the net interest to the rates. And so we should not have any significant shift in the liabilities mix.
And also our macro hedging is quite strong, in particular for inflation. So things are relatively positive. We have no change in this high digit single -- high single-digit guidance for 2026, even though we have to always be careful as to the repricing capacity in a competitive market. Now for Libre for Libre, we usually have a tendency to hedge the Libre. So we do -- we could consider that we have, for example, a EUR 90 billion impact for the regional banks, EUR 90 billion pre-centralization of Libre for the regional banks. You have about EUR 18 billion for SCI pre-centralization.
So you could consider an impact of the decrease in Libre on that, which you can calculate, which is going to be a couple of hundred million, but this would be before hedging, and we have a tendency to hedge. So the impact on Libre for us is relatively neutral. For your question on Crédit Agricole Italia. Now we have a very competitive housing market in Italy. We have, in particular, renegotiations, which have an impact. And in fact, they did have an impact this quarter on the loan outstanding for the home loans, which was -- which decreased in Crédit Agricole this quarter. I talked about a very strong increase in corporate loan production. But in housing, we have a market which is very competitive. But despite this, we were quite happy to have the stabilization of net interest income. We're still prudent in terms of our guidance. So no change in our guidance in this respect, i.e., maybe just below 0, around 0 this year before picking up afterwards in the coming years.
M&A for Banco BPM. All right. So well, in fact, for M&A for Banco BPM, even though there's lots of -- there's been lots of noise, rumors, et cetera, regarding Banco BPM. For us, things have not really changed except the fact that since we are now -- we now have 4 seats at the Board, we will participate in the analysis of any scenarios that could present themselves to Banco BPM. And so we would participate in any decision regarding these different scenarios. That's all I can tell you for now. We're now -- we now have seats on the Board, and so we're going to be a player. We are at the table. We are a player in these different scenarios. But to tell you the truth, as I was saying before, a lot of these scenarios do not depend on us, but I think most of them are positive. Because as I was saying, we are a long-term player in Italy. We have many ways that we can develop in Italy, for example, organically through CAI organically through our businesses. So all of this is positive.
Next question is from Sharath Kumar, Deutsche Bank.
Firstly, on asset quality, your Middle East exposure at $21 billion seems higher than peers. Can you elaborate on the nature and risks in case of a prolonged conflict in the Middle East? And more broadly on asset quality, what risks do you see if oil prices remain well above $100 a barrel for a prolonged period? Then a couple of clarifications.
Firstly, on the capital consumption for Banco BPM, when you increased the stake in 2025, the CET1 consumption was proportionately smaller commensurate with the stake increase versus the minus 14 basis points impact you have now. So if you can clarify on that? And lastly, again, a follow-up on Specialized Financial Services. Can you quantify the used car sales contribution maybe in '25 and first quarter, just to see where -- how much is the delta? And on equity accounted entities, previously, you said double-digit contribution from leases for 2026. Do you stick to this view?
All right. Okay. Thank you. Now if I look at your question on loan loss reserves, if I move to Page 47 in the annex, you have this level of loan loss reserves, which is at EUR 22.6 billion for Group Crédit Agricole and EUR 9.7 billion for Crédit Agricole S.A. And as you can see here, you have -- and you could do that if you have even longer period, you can see that prudent provisioning for us is in our DNA. In fact, we are provisioning, but we have always been doing so in the face of uncertainties, geopolitical uncertainties. And so this is also why we have this very high level of loan loss reserves, even though as you know, the impaired loans ratio, as you can see on Page 47, is stable. And this is also why we have this very high coverage ratio of 82.6% at the level of the group. We have with our Stage 1 and 2 outstanding loan loss reserves, EUR 9.3 billion. We have about 3 years of cost of risk. And for CASA, with EUR 3.4 billion, we have about 1.5 years of cost of risk. But this is, in fact, a structural policy that we have, which is always to provision in a very prudent manner, the risks, and this is what we did this quarter. But of course, this is something that can, therefore, absorb any surge in Stage 3 cost of risk going forward.
In terms of capital consumption, so I don't want to go back to the very technical discussion that we had in the Q4 regarding the first consolidation of Banco BPM. But just to tell you a little bit how things are working when you have these 14 basis points for the CET1 is that, in fact, when we increased our share price from 20% -- 20.1% to 22.9% in fact, we're increasing it based upon an equity accounted value, which we have integrated around EUR 10.
So we have a goodwill now based upon that. Any additional purchase of shares of Banco BPM has to be done with a goodwill. So you have a goodwill impact that is directly deducted, right? And because last year, when we did the first consolidation, we didn't have any goodwill because we consolidated at cost. And so we had badwill, right? So now you have a goodwill impact first, around EUR 120 million. And you also have an RWA impact, which is different from CASA between CASA and Group [indiscernible] , because for CASA, as you know, we have saturated the exemption of French for the more than 10% participation, but we have not done that EUR 5 million.
So that's why the impact for CASA is 14 basis points, whereas the impact for the group is 5 basis points. And then your last question on the used cars. In fact, we have a couple of dozen impacts of the residual value of cars for Gevalia that compensate for a favorable price effect for SFS on revenues. So you have just about, let's say, around EUR 30 million impact on -- positive impact on price effect and around EUR 30 million impact this quarter for Gevalia of the residual value of used cars. And for leasing, we have, of course, a remarketing issue. And what I can tell you about that is that we're having a situation where we're just about breakeven for leases, and we still confirm the guidance that I gave you at the -- in the Q4 call, which was a single-digit contribution for 2026.
The next question is from Stefan Stalmann, Autonomous Research.
I have 2 questions, please. So the first one is on your organic risk-weighted asset growth that you highlighted. It seems that you have actually seen a very major expansion of your exposure to nonbank financial institutions, so NBFI, which obviously receives quite a lot of market scrutiny these days. Can you maybe add a little bit of color on why you have grown this portfolio so rapidly in the first quarter?
And the second point goes back to your ROIC disclosure. That's very helpful. It looks like you spent EUR 12.5 billion on your acquisitions over this time horizon, but your regulatory capital requirements were about EUR 4 billion lower. Can you maybe explain what exactly drove that discount and which transactions, in particular, required so much less regulatory capital than what you spend on these deals?
All right. So first, the question on our exposure. As you can see on Page 50 in the annex, we have our exposure to other nonbinding financial nonbanking sorry, financial activities that have not changed significantly. This figure is something that takes into account a lot of elements that are not only, for example, hedge funds, but you have securitization vehicles, you have monetary funds, you have hedge funds, you have broker-dealers, investments, you have all of the insurance banks outside of the EU.
So this figure, for example, when you have securitization by CAI for its customers, it's our NBFI and it's a figure that, in fact, adds up a lot of bits and pieces and that's difficult to interpret. What I want to tell you regarding the fact that the issue that has worried maybe a lot of observers recently is regarding our debt fund exposure and so on private debt.
Our exposure as of end of March is EUR 2.9 billion, very low, 0.2% of our commercial lending. And as you can see on Page 49, we gave you a certain number of elements regarding the LBO exposure, which is very low, commercial real estate, which is again low with a lot of investment grade. And of course, our Middle East exposure, which is, in fact, mainly on the sovereign and state-owned exposures. Now thank you, Stephan, for highlighting, in fact, the work we did, the team's work to calculate, in fact, the return on capital of these operations these operations, the EUR 12.5 billion that I was talking about, in fact, we look at the operations that it is possible to calculate an ROIC on. So you have on big operations, you're going to have a lot of Amundi operations. You have Pioneer, for example, you have Lixor, you have Sabadell Asset Management. We have also Austria operations with the group. We have [indiscernible] for example, for Santander. So we have a lot of different operations. Of course, the buyback of the Santander Securities Service share in [indiscernible] So all of these operations have different figures in terms of regulated capital. And what I wanted to stress about was the fact that to calculate this return on invested capital, what we take into account is we take the net income group share. And on the denominator, we take the effect of the minority interest, the goodwill, badwill, and we suppose that we have 11% of RWAs. So all in all, the calculations are different for each of these types of operations that I talked about, but they have very different maturities. The ROI is different according to the timing. The ROIC is different according to the timing. And this is a picture of these operations as of 2025.
But really what we wanted to insist upon was the fact that we have the very strict financial criteria that we talked about in the medium-term plan, ROI accretive. This is a figure that shows you that we have this accretive nature of our activity, but also the integration capacity and the alignment with our strategy. So this is what we wanted to insist upon on -- and insisting upon the fact that the 18% figure is quite strong.
Could I just follow up on this, please? I mean the common denominator here on the slide seems to be that from a regulatory capital perspective, you need a lot less capital than what you actually spent on the acquisitions. And I'm just curious about why this gap is there. Is there anything that you -- any color that you could add there?
I
Think what it really depends on the nature of the operation and the nature of the businesses that made these acquisitions, Amundi, Cat, and Suez. And so when we look at the denominator of CET1, the way we look at it is that we take off the impact of goodwill, badwills, minority interest, and we consider that we have 11% of RWAs, which is, in fact, a way that we transpose the targets that we have for CET1 to the different businesses. So it's de facto an internal allocation of RWAs between our businesses. So this is the way we look at the profitability of these operations business by business, comparing them to the target we have, which is 11% of CET1.
The next question is from Benoit Valleaux, ODDO BHF.
Two short questions on my side on insurance. The first one in P&C. You have an increase of common ratio of 2.5 percentage points versus last year. You mentioned a very high level of nat cat losses in Q1. I'd just like to know if you can quantify in absolute terms this level of nat cat Q1 this year versus -- and the change versus Q1 last year just to see how revenues in P&C will have evolved without this nat cat event. And the second question on the Life side. So very strong activity in Q1. Nevertheless, the CSM decreased by 1.9 percentage points due to negative market impact. I'd just like to know what would have been the increase without this market impact into the..
.
Thank you, Benoit, for your questions. They are very -- always very interesting on insurance. So regarding the weather-related claims, in fact, the growth impact is just above EUR 200 million this quarter. It's a growth impact linked to storms on the Atlantic front to floods. And so this impact is quite close to -- if you do a rule of thumb to what we could expect with the market share of P&C Pacifica, which is about 12% market share for this type of insurance. And so this is the growth impact. And thanks to a certain number of absorbing mechanisms, thanks to reversals of provisions, what we can say is that the impact in terms of variation Q1 of this weather-related claims is below EUR 50 million. That's the first point.
The second point is that indeed, we always look now for insurance at the CSM. And what's important for us is always to say, and this is what we say this quarter, that we have a new business contribution that is higher than the CSM allocation. But you're right to point out the fact that we had a decrease in March compared to December due to these market effects. We have market effect on revenues in Credit Restaurant due to the equity I mentioned, but we also have and that's the most -- the majority of it, the market effect in insurance feed into the CSM. Now if we did not have this market impact, we -- I can say we would have about plus 8% impact, 1% growth of the CSM between December and March, which is quite logical if you look at the very strong and record net inflows this quarter of insurance, which was, as you can see, EUR 5.7 billion this quarter. So this is reflected in the growth, excluding market effects of the CSM, which remains at a very high level, EUR 27 billion.
The next question is from Tarik El Mejjad, Bank of America.
Just a very quick 2 questions, please. First one is on the capital treatment of future growth or provisioning. If that goes both ways? And how often you will adjust basically that provisioning? Is it every quarter? Or is it your own judgment? And secondly, on...
Can you repeat the question, sorry, the capital provision on what, sorry?
On growth, the growth you have on your capital trajectory in the quarter that you took upfront.
Okay. The front loading of RWAs and C, that's what you're talking about, right?
Correct. And sorry, a bit long there. And then the -- on CASA -- sorry, on the -- yes, CASA, I mean, Creditrico's EUR 800 million investments in CASA. I mean, I know you say as Creditrico, but I mean, the liquidity now is getting even lower. And what do you think the rationale and the end game there?
All right. Thank you, Tarik, for your questions. It's been a long day. I know for all of you guys. So thank you for listening to all of these elements that are oftentimes technical, but which reflect the diversity of our group. So this front loading, the front-loading that we have of CACI is, in fact, relatively -- of the RWA of CACI, sorry, is in fact, not that special because we do have a tendency to front-load the RWAs in order to front-load the effect that we're going to have in revenues. This time, we front-loaded the organic growth to take advantage of the active markets in March.
So this dimension is not per se reversible. It's the front loading. What's reversible is the 2/3 that I was talking about of the impact on RWAs of the market activities, the volatility impact and the counterparty issuer spreads for the trading book counterparty risk. So here, this -- so if you take that off, if you take off the FX effect, the rest of the growth of CI, you're going to have between EUR 1 billion and EUR 2 billion, that's the front-loaded organic growth. You have a little bit which is related, by the way, to rating downgrades in line with increased provisions, but the rating downgrades when it's not, it's difficult to say. But I would not say that the front loading is reversible. I would say that the front loading, we hope to see the impact on results in the coming quarters of this front loading. Now the SAS, as you know, we are [indiscernible] which is our today, 63.5% shareholder.
So we are, as you know, the daughter, they are the mother. So I cannot comment on what they're saying. But what I can tell you is that they are a very sophisticated investor that knows us very well. And so this program, as you know, they said that they would remain below 65%. They reiterated that, that they had said before. This program is a way for our regional bank, the mother to really take stock of the fact that we have strong profitability and it is a good idea to invest in Crédit Agricole S.A. for the future. They have -- they trust very much our medium-term plan, which is based on customer capture, which is based on transformation, which will provide strong profitability, EUR 8.8 billion in net income at the end of the medium-term plan. And this is very much aligned with their objectives, which is to develop customer capture, to develop performance profitability to develop capital liquidity at the level of the group. So all of this is very consistent. There is no change in any form of end game from what -- as much as I know of. But for us, it's really the fact that they're investing in a very profitable state, which is CA...
The next question is from Alberto Artoni, Intesa Sanpaolo.
I have just 2 quick ones. The first is on capital. And I just noticed that there are 11 basis points of capital consumption this quarter, which relates to methodologies and model changes. And I was wondering if this 11 basis points can -- is on top or can be referred to the slide that you presented when the Act 28 plan was introduced in which you allowed for 40 basis point regulatory and methodology increases during the plan. So is this part of this 40, so it means that there are 29 left? Or is still 40 to go and this is on top?
All right. Thank you for your question. In fact, when we look at the medium-term plan, we look excluding CRR3 impact. And this 11 basis points impact is, in fact, an end of the year impact of CRR 3. So it is excluded from the 40 basis points of methodology because what we do in the medium-term plan is that we consider everything to be besides CRR3 impact because in the medium-term plan, if you recall, we had talked about the CRR3 impact, which was 50 basis points. And then we added on this 40 basis points, which was regulatory methodological impact, including FRTB, which is beyond CRR3. So what I think we can say is that this is kind of the end today of CRR3 impact mostly, mostly.
Okay. Very clear. And my second question, just a quick clarification on the Banco BPM stake. Is there -- do the regional banks have a direct stake in Banco BPM? So at the group level, what is the stake? Is it higher than 22.9% -- or is it 22.9%...
It's 22.9%...
22.9%...
CASA stake.
Okay. Okay. So the group does not -- the regional banks do not hold any stake in Banco BPM.
Indirectly, of...
No. Our stake is 22.9% of CASA.
The next question is from Chris Hallam, Goldman Sachs.
Just 2. The first is a bit of a follow-up to Jacques-Henri's question earlier on capital. Could you just maybe just remind us what you can already see coming on capital through the remaining 9 months of the year? Because if I look over the last 5 years or so, you typically haven't really seen an increase in the CET1 ratio through the second, third, fourth quarter for a variety of reasons, including M&A. But consensus as of today now has a 60 basis point increase from here to year-end. So any steer you could give on that would be super helpful. And then again, it's a bit of a follow-up to an earlier question. So not regarding the 14 basis points on BPM, but just how much capital is the whole BPM stake currently consuming? Or put another way, if you sold it today at the latest price, how much capital would be released?
All right. So it's difficult to tell you, Chris, for the capital. I prefer to give you guidance regarding the medium-term plan. For the medium-term plan, we're comfortable with our 11% target and our 150 basis point flexibility to which we take off the 16 basis points that we have today. That's all I can tell you, but I can tell you that we're not worried about capital going forward also because we always know that we can develop also the optimization, the securitizations that we can do in particular with SRTs because, as you know, our SRTs are lower than that of what our peers are doing today. Now for Banco BPM, for Banco BPM, we have a EUR 3 billion stake that we equity accounted at the end of last year. Now we have an increase in that, which we bought at the share price, of course. So you have to add to that the share price impact -- but in any case, this capital impact of the equity accounted value plus the impact of the increase in the share price, which represents about EUR 120 million in terms of goodwill. This is something that will generate in terms of equity accounted value. It will generate based upon, of course, the income of Banco BPM, something around EUR 100 million every quarter in terms of P&L impact.
The next question is a follow-up from Sharat Kumar, Deutsche Bank.
Apologies for following up. Just 2 quick ones. Firstly, on leases equity contribution, I think you said double-digit contribution during the fourth quarter earnings. Today, I heard you say single-digit contribution, if you can clarify. Secondly, on interim dividend, can you confirm if the policy is to pay 50% of the first half net profit in October?
All right. Thank you. Yes, for leases, what I'm telling you when I'm talking about double-digit contribution is talking about the year contribution for the year 2026. So here, we were just about breakeven in the first quarter. So you can see that that's going to pick up because what I'm confirming it's a double-digit contribution to nearly net income. And so yes, for the interim, what we're going to do is we're going to apply a 50% payout ratio on the 15th of October based upon the first half year net income. And so we're really adopting market practice in this respect.
There are no more questions registered at this time. I turn the conference back to you for any closing remarks.
All right. Thank you. Thank you very much, everybody. I'm really feeling for you in this very long day. I just wanted to tell you that we have our next meeting for you guys, which is the workshop that we're organizing for LCL, which is on the 26th of May, sorry. Thank you, Cecil. On the 26th of May, so we're going to be very happy to see you at that time. That's our next meeting. And of course, we have the general assembly just before that on the 20th of May in in Brittany, where we hope there's going to be a lot of sun. So looking forward to see you guys there and have a very relaxing weekend after this long week of earnings calls. Bye-bye, everyone.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.
Crédit Agricole — Q1 2026 Earnings Call
Crédit Agricole — Q1 2026 Earnings Call
Solid Q1 2026 for Crédit Agricole with solid profitability and strategic progress amid a volatile environment.
📊 Quarter at a Glance
- Net income: +5.5% YoY; pro forma net income +1.8pp vs Q1 2025
- Revenues: +0.9% QoQ; like-for-like +3.2%
- ROTE: 13.7% (well above 11% target)
- CET1: 11.4% (comfortably above target)
- Customers: 600k new customers this quarter (450k in France) with stronger digital onboarding
🎯 What Management Says
- Digitalization & growth: strong client capture, ongoing digital onboarding, and launches like Crédit Agricole Savings in Germany; strategic Ukraine acquisition (Lviv Bank) strengthens SME and agri footprints
- Capital & value creation: Banco BPM stake raised to 22.9% with long-term partnership focus; progression on synergies from RBC Amundi integrations
- Risk & efficiency: prudent provisioning amid geopolitical risk; cost-to-income improving; solid liquidity and capital discipline
🔭 Outlook & Guidance
- NII outlook: LCL to grow high-single digits in 2026; Libre around flat to modestly positive; guidance unchanged
- Capital framework: CET1 near 11.4% for year-end 2026; ~150bp strategic flexibility for M&A; interim dividend of EUR 0.26 per share
- Risks & dynamics: geopolitical tensions, market volatility; front-loaded RWAs with two-thirds potentially reversible; continued Synergy realization
❓ Analyst Q&A
- Banco BPM stake: ECB authorization allows exceeding 20%; stake at 22.9% with board seats; no fixed exit plan; multiple scenarios seen as positive for long-term value
- Germany Savings platform: ~1 million customers shortly after launch; target 2 million by 2028; €15 billion on-balance savings; app version by year-end
- SFS & leases: used-car residual-value revisions offset by other factors; leases expected to deliver a double-digit net income contribution in 2026
⚡ Bottom Line
Crédit Agricole's quarter confirms resilient profitability and strong capital, supported by digitalization and strategic moves (Germany Savings, Lviv Bank, Banco BPM stake). Guidance remains intact, with capital flexibility and a disciplined dividend policy helping shareholder value, even as geopolitics and market volatility linger.
Crédit Agricole — Q4 2025 Earnings Call
1. Management Discussion
Good morning. This is the conference operator. Welcome, and thank you for joining the Credit Agricole Fourth Quarter and Full Year 2025 Results Conference Call. [Operator Instructions] Today's speakers will be Ms. Clotilde L'Angevin, Deputy General Manager of Credit Agricole; and Mr. Olivier Gavalda, Chief Executive Officer of Credit Agricole.
At this time, I would like to turn the conference over to Mr. Gavalda. Please go ahead, sir.
Thank you. Good morning, everyone. It's a pleasure for me to share with you the strong results published this morning by Credit Agricole S.A. that Clotilde will describe extensively in a few minutes. Before that, let me start with a brief introduction and highlight the key commercial and financial figures as well as give you an outlook for 2026.
On this slide, once again, and despite the uncertainties and erratic events in 2025, Credit Agricole S.A. is posting high results for 2025, reaching again a level above EUR 7 billion, and this performance is supported by a very dynamic commercial activity. Net income group share amounts precisely to EUR 7.1 billion. It is a stable level compared to 2024 despite the tax surcharge of EUR 147 million recorded this year. So in fact, excluding this tax surcharge, it is a slight increase.
These very good results are driven by an increase in revenues by 3.3%, thanks to a dynamic commercial activity this year that I will further illustrate in a few minutes. These very good results also translate into strong profitability with a return on tangible equity of 13.5%, stable compared to last year, and the capacity to distribute a dividend of EUR 1.13 per share, increased by 3% this year. CASA CET1 ratio is above the 11% target. Its level is of 11.8% at the end of December. We confirm that very high solvency level of the group with a CET1 ratio of 17.4%, placing us among the most solid of major European banks.
A few words on the fourth quarter that Clotilde will describe in much more details afterwards. Q4 is impacted by Banco BPM first consolidation for EUR 607 million. Thanks to this consolidation, there will no longer be volatility in the P&L linked to the evolution of Banco BPM share price, as this operation sets the foundation of a regular contribution of Banco BPM to our results, around EUR 100 million per quarter regarding the 2025 performance of BPM.
On the next slide, in 2025, we have experienced numerous commercial successes. A few examples deserve to be highlighted. We have acquired 2.1 million new clients, best performance in the history of Credit Agricole. Loan production for our retail banks increased by 15% compared to 2024, reaching EUR 140 billion. Insurance premium income set a new record at EUR 52 billion, up 20% compared to 2024. Amundi's net inflows were multiplied by 1.6 to reach EUR 88 billion. CACIB reaches record results driven by all its business lines across our different geographies.
And despite the difficulties incurred by CAPFM in the automotive market in Europe and China, the level of activity remains high, particularly in Personal Finance. Furthermore, in 2025, Credit Agricole S.A. continued its momentum in partnership and investments, notably with structuring partnerships and targeted acquisitions in Europe, Asia and U.S. We can, in particular, mention launch of partnership with Victory Capital in U.S., increase in our stake in Banco BPM in Italy, long-term partnership with Crelan in Belgium, acquisition of noncontrolling interests in CACEIS and major partnership with ICG in Private assets. These key transactions strengthen the group's position as a leading European player and accelerate its development in high potential markets.
On the next slide, our solid results reinforce the financial ambitions set in our strategic plan. All in all, as illustrated in the chart in pro forma data, the results achieved in 2025 are fully in line with the trajectory on -- of the -- our plan and reinforce our confidence in our ability to meet objectives we have set regarding our revenue growth, net income group share, return on tangible equity and cost/income ratio. For the cost/income ratio, we have reached a peak point, and I'm very confident it should drop in the next quarters.
More specifically, 2026 outlook is based on the set of favorable factors, in particular, the continuation and acceleration of the commercial momentum, amplified by the rollout of new strategic initiatives of our plan, the gradual integration of recent acquisitions and realization of synergies, the Retail Banking and Personal Finance business line in France are expected to continue to benefit from the upturn in margins, whereas mobility activities are set to see a recovery in profitability. Corporate Investment Banking should continue to perform in volatile environment. And finally, Banco BPM will now make a recurring and high contribution to profit of around, as I said, EUR 100 million per quarter. Obviously, uncertainties, and you know that, will remain high.
In the last slide, as it is, many investments undertaken in 2025 have already materialized or will materialize in the coming weeks and coming months. We are truly off to a running start. Here too, a few examples, starting with our efforts for acceleration. First, concerning retail banking in France, we can mention that the regional banks have developed as part of their 2030 ambitions, the 100% digital housing loan journey. LCL has just deployed its digital offering for professionals and is preparing its easy digital offering for individuals. The transformation of LCL is on track.
We have launched Indosuez corporate advisory to serve midsized companies, and we can mention also a few upcoming international developments, particularly the European savings platform will be launched in April in Germany. In Asia, CACEIS will open a branch in Singapore in 2026. And of course, our transformation and simplification efforts will continue, particularly around AI, as well as our innovation efforts with, for example, CACEIS, CACIB and Amundi joining forces to launch initiatives in the world of tokenized finance.
All these projects and the value created by our recent acquisitions make me very confident about the future. Our development in France, in Italy, in Europe and in Asia is on track, and our model demonstrated its strength once again.
Now, it's time to give the floor to Clotilde, who will provide you with a more detailed presentation of our quarterly and annual results. Thank you, and see you soon. Clotilde, over to you.
Thank you, Olivier. Hello, everybody. So moving to the slide regarding the key figures. You see here that we have strong annual results, as Olivier was saying, that are, in particular, stable for CASA this year without any form of adjustments. Now, in the quarter specifically, the results for Group Credit Agricole and for CASA were impacted in particular by Banco BPM effects. One that I'm going to detail a little bit further down on the revenue front, an impact of the fluctuations in the share price of Banco BPM for EUR 320 million. And another on the net income front, an impact of the first-time consolidation of Banco BPM for EUR 607 million. And this explains the decrease in net income by 23.9% for Group Credit Agricole and by 39.3% for Credit Agricole S.A. this quarter.
Now, if we look at the annual results, however, the revenues are record in 2025, both for the group, it increased by 3.9%; and for CASA, it increased by 3.3%, thanks to dynamic activity in all of the business lines, and in particular, for the group, thanks to the rebound in net interest income in France. The gross operating income, as you see, was up this year despite the investments that Olivier was talking about to set the stage for future developments in our medium-term plan. We have operational efficiency that is well managed with the cost-to-income ratio at 55.7% for CASA and 59.6% for the group.
The cost of risk is under control. We have a cost of risk on outstandings of 35 basis points, sorry, for CASA compared to 34 last year and 28 for the group compared to 27 last year. And so all in all, net income group share reached EUR 8.8 billion for the group and EUR 7.1 billion for CASA. This is, in particular, stable for CASA despite the impact of the additional corporate tax charge, which is EUR 280 million for the group and EUR 147 million for CASA. The increase in net income would have been 1.8% for CASA and 4.6% for Group Credit Agricole, excluding this impact.
Now, if I move to the next slide, activity supported this strong growth in revenues over the year. And in particular, we have activity that was sustained across all of the business lines this quarter and over the year. Now, customer capture was strong, 517,000 this quarter, which brings the total for the year to the 2,100,000 new customers that Olivier was talking about in France, Italy and Poland. And our customer base is also expanding this year.
Activity was strong, in particular, in retail banking in France. I talked about it for the group. Loan production was dynamic, driven by the corporate loan production that increased by 14% quarter-on-quarter and 16% year-on-year. And the home loan production was also strong, 9% quarter-on-quarter, 21% year-on-year, in particular, in the regional banks this quarter. And over the year, we have again an increase in market share for the regional banks.
International loan production was also strong, in particular in Italy, with a 5.4% growth rate quarter-on-quarter in corporates and individuals, but also, for example, in Poland, thanks to retail. And so outstanding loans increased in all of our markets. On-balance sheet savings also increased in all of our markets, and the off-balance sheet savings inflows were dynamic in France and in Italy. And so this translates into the performance of insurance. We had record net inflows over the year in life insurance, EUR 15.9 billion. And this quarter, they were strong, driven by France and both by unit-linked and the euro fund.
The premium income in insurance is high. It crossed in 2025, the EUR 50 billion threshold with a 20% increase this quarter, thanks, of course, to savings and retirement. You know that there's a context of increased precautionary savings, but also thanks to the P&C activity to individual death and disability insurance and to group insurance. And so P&C activity is growing both in France and internationally with 17.9 million contracts in our portfolio, and the equipment of our customers continues to increase in all of the retail networks.
In Asset Management, we have a record level of AUMs of EUR 2,380 billion, thanks mainly to strong inflows. Olivier was talking about the EUR 88 billion inflows over the year, EUR 21 billion this quarter, thanks to medium to long-term assets into the JVs, and in particular, passive management and to continued strong momentum in third-party distribution.
In Wealth Management, activity was also strong this quarter with record net inflows and strong customer capture. In Wealth Management, just to parentheses, the integration of the group is well underway. We have 30% of synergies that are already achieved, and this allows us to comfortably confirm our guidance of EUR 150 million to EUR 200 million net income group share contribution by 2028.
In Personal Finance and Mobility, production was also high, EUR 12.1 billion this quarter, thanks in particular to dynamic activity in Personal Finance. As you know, the automobile activity was impacted this quarter and this year by unfavorable market conditions, but we have managed loans that increased across all segments. Production and leasing was dynamic this quarter, thanks in particular to renewable energy in France and benefiting from the integration of Merca Leasing. And finally, in the large customers division, the CIB confirms its performance with a new record level of Q4 and 2025 revenues, thanks both to market activities, where we had a strong performance in rates and repo activities and to financing activities, in particular, in the telco sector in Corporate and Leverage Finance. And of course, we maintain our leading positions on syndicated loans and bond issuances.
And finally, in Asset Servicing, we have assets under custody and assets under management that increased this quarter, thanks to positive effects -- market effects, sorry, but also to the arrival of new customers. And the ISB integration is now finalized. Customer and IT migrations are completed, and the synergies have been achieved at a rate of 66%. And so we're very confident on our guidance of EUR 100 million of net income for 2026 contribution of ISB integration.
By the way, I was talking about the growth in ISB. If you're curious, on Slide 41, we have analyzed the majority of our 2015-2022 transactions in order to look at the return on investments of these past acquisitions, which is, of course, on average, higher than our 10% limits, 13% as of 2025. And it's too early to calculate a 3-year ROI for the 2023-'24 operations, but we already have strong ROIs to date, and the synergies are on track for the 3 main operations of the period. I was talking about ISB for CACEIS and the Group, but also ALD, which is very profitable.
Now, moving to revenues. So this activity, the dynamism of activity translates, as it has been doing, as you can see on the figure on the right for the past 10 years into revenue growth. Now, this quarter, CASA revenues were impacted by a negative Banco BPM share valuation of minus EUR 57 million. And so compared to the Q4 positive effect of EUR 263 million, this valuation impacts the change in revenues by EUR 320 million.
Now, recall that until the first consolidation of Banco BPM in December, we have fluctuations in the share price of Banco BPM that impacted our revenues. And so we do still have this fluctuation. And this is why, in particular, we wanted to limit the exposure of our income statement, sorry, to the volatility in Banco BPM share price. And this is why we asked and we received the authorization by the ECB to cross the 20% threshold in order to equity account our stake within the framework of significant influence, and this is consistent with our position as a long-term shareholder and partner of Banco BPM.
Now, going forward, this stake will be immune to the fluctuation of the share price of Banco BPM, and it's going to generate regular net income of, as Olivier was saying, if we base this on the past income statements of Banco BPM, about EUR 400 million per year. This is strong value creation. Recall that, over the past years, we have had strong value creation also, thanks to, in particular, the dividend earnings from Banco BPM. And so all in all, the contribution was EUR 200 million in 2023, about EUR 600 million in 2024 and about EUR 200 million in 2025, including, and I'm going to come back to it just afterwards, the impact of the first consolidation. So you see we have a strong value creation in our accounts in the past and in the future, thanks to this share in Banco BPM.
Now, if I come back to revenues, excluding this EUR 320 million impact, the revenues increased by 2.7% this quarter, and this is thanks to the sustained activity that I was talking about in our business lines. The revenues increased by EUR 60 million in asset gathering. We have a scope effect linked to the Amundi U.S. deconsolidation, but also a scope effect linked to the integration of our insurance activities that are in JV with Banco BPM. And these 2 scope effects more or less cancel out. Besides this, activity was strong in all of the business lines.
Revenues also increased in CIB despite an unfavorable foreign exchange impact and in asset servicing, thanks to strong fees and commissions income. In SFS, the revenues were impacted by EUR 30 million base effect that we have talked to you about last year in Consumer Finance. But on the other hand, we had revenues in leasing that benefited from the integration of Merca Leasing. And besides this, revenues benefited from favorable price and volume effects in Consumer Finance, which off-setted the decline in mobility revenues. You know that we have mobility revenues in our Credit Agricole Auto Bank entity.
And finally, the revenues increased by EUR 91 million in retail banking in all geographies, thanks to the strength of fees and commissions income in Italy and in France. And in France, finally, thanks to the rebound in net interest income. So as you can see, we're starting to see what we talked about in the medium-term plan on net interest income, a net interest income that's going to continue to slightly decrease in 2026 in Italy, but net interest income that will increase in LCL, by the way, also in regional banks, thanks to the reduction in the cost of resources, we have a normalization of the customer deposit mix and the rate effect and thanks to the gradual repricing of loans. So all in all, we have growing revenues in the businesses, continuing the dynamics that you observed over the past 10 years.
Now, if I move to costs. The cost-to-income ratio has increased this year at 55.7%, but it remains very under control. It's an increase of 1.3 percentage points after 15 percentage points drop between 2015 and 2024. And if we look at the quarter, you see that we have a growth by 4.7%. But if we break down the expenses, you'll see a certain number of elements. First, we have scope effects. We have scope effects linked to the deconsolidation of Amundi U.S., but we also -- negative, but we also have positive scope effects from the integration of insurance entities in partnership with Banco BPM, Banque Thaler and the resumption of depository activities.
So these both scope effects, as you can see on the right, along with the integration and acquisition costs, they more or less cancel out, first point. The second point, we have restructuring costs. You know that we talked about in the last quarter about EUR 80 million restructuring costs for Amundi in the context of an optimization plan in France, Italy, Germany and Australia that will generate EUR 40 million of annual savings from 2026 onwards. We have in addition to that for EUR 8 million this quarter. But more importantly, we have strong restructuring charges in Italy, EUR 65 million. This is really, as Olivier was saying, to prepare for a medium-term plan, i.e., the growth in digital customer capture, productivity efforts on administrative activities, improved sales force expertise.
And then, if we take off these scope effects and restructuring costs, we have a growth that is very limited in recurring expenses, 2.5%. And this growth also allows us -- this growth in recurring expenses also corresponds to investments within our medium-term plan, for example, in LCL to continue to transform our distribution model, for example, in CIB, in cash management and equity solutions. So we're really laying the ground for our medium-term plan with these expenses.
Now, if I move to cost of risk, cost of risk increased by 5.9% this quarter. But if you look at the Stage 3 incurred cost of risk, you'll see that it's very stable compared to the Q3 and Q2 levels. Now, what are the exceptional items that explain the increase in cost of risk this quarter? There's mainly 2 exceptional items. The first one is a EUR 41 million provision on the U.K. car loans litigation.
As you know, we have a 2% market share. So it's limited for us. Of course, all of the CAPFM U.K. entities immediately complied with regulation on -- it's the setting of rates by distribution intermediates. But we are subject, as the other players that have a larger market share, to customer claims related to the past. And so we decided to prudently increase our provisioning in the context of an ongoing consultation by FCA to bring the total stock of our provisions to EUR 88 million. And so the outcome of the consultation is expected soon, hopefully, by the end of the month.
And the second exceptional effect is a EUR 30 million provision. This corresponds in Italy, again, to a market element. It corresponds to our current estimation of our 5% share of bailing out of a small digital bank in Italy, which is Banca Progetto, bailing out by the Italian deposit guarantee scheme. And so, as I was saying, besides these elements, the Stage 3 cost of risk is very close to the Q3 and Q2 levels. 44% of the Stage 3 cost of risk is explained by SFS, where the risk has been relatively stable over the past quarters. Then, we have 32% for LCL with an increase in individual risk on corporates, mainly in retail distribution sector. And then, we have a little bit in Italy in CIB. In CIB, the cost of risk remains very low with investment-grade customers mainly in a diversified and a balanced geopolitical risk.
So if I conclude on this slide, there's no surge in loan loss provisions, even though, of course, we monitor closely the corporate customers in retail banking, and in particular, for example, small real estate developers, construction, distribution, automobile, textiles and more generally SMEs. But our lending policy is cautious. And as always, our provisioning is very prudent. And as you can see, our main asset quality indicators are very solid. The cost of risk as a share of outstandings is low, both at CASA and group. The loan loss reserves are very high, and we have among the best coverage ratios in Europe, both for the group and for CASA.
I'm going to move very quickly on to the next slide, just to tell you that for Credit Agricole Italia, in particular, you see that the cost of risk on outstandings is stable at 39 basis points, excluding the Banca Progetto provision. And you see that we have relatively stable cost of risk after very low quarters, by the way, in beginning of '25 and end of 2024.
Moving on to the slide on quarterly results. So we have strong activity, managed operational efficiency, cost of risks that are under control. But, however, our results in the fourth quarter were impacted by 2 exceptional effects that I'm going to explain in a little bit more detail right now. First of all, a first effect, which is a negative impact, as you can see on equity accounting of the performance of our JV with Stellantis, which is Leasys with a minus EUR 111 million contribution.
Now, what happened? In CAPFM, we have 3 growth drivers in 22 countries. And we have 2 growth drivers that performed well in 2025, the servicing to the bank entities and personal finance, which is restoring its margins. There was one growth driver, mobility that suffered in 2025 due to market conditions, in particular, because the automobile market has been suffering in 2025. And on top of that, the car manufacturers that we have close ties with have had specific difficulties. So I'm thinking of GAC in China. I'm thinking of Tesla in Europe. And of course, I'm thinking of Stellantis with which we have our JV. So the 3 entities that we have on mobility, one is Credit Agricole Auto Bank, for which we have gross operating income, which is good. The second one is our JV with GAC Sofinco, where production has been impacted, but results are positive, and production is picking up in the last month of the year.
And then, finally, Leasys. Now, the difficulties faced by Stellantis reduced the attractivity of the range of vehicles. And so Leasys, which is the JV we have with Stellantis, has to make commercial investments, and the performance of remarketing was impacted. And so, in the Q4, we decided to review all of the remarketing values of our used vehicles portfolios in Leasys, systematically applying a conservative discount compared to market prices. So this impacted the Q4 results, but it's going to strengthen our financial base for Leasys, and it allows Leasys to prepare for a rebound in profitability because we're well positioned to benefit from the growth, which is coming in the long-term leasing market.
We're starting on a solid footing, and we also have a strong position in particular in Italy, number one. And going forward, we're going to roll out new services and insurance solutions focusing on added value. That's the first effect. The second effect is one that you know better, which is the impact of the first consolidation of Banco BPM. So you recall that we acquired Banco BPM shares in tranches, each at a different price. And so when we consolidate for the first time, we decided to take a prudent accounting position, which is to take as reference the equity value and not the share price. And so we assess at each date of the acquisition, our share of the net assets acquired. So we carve out the fair value effect in P&L and OCI for about EUR 1.9 billion. It's negative because the price is higher today than what it was when we bought the shares.
And then, conversely, we recognize a badwill effect, which is the difference between the price of the shares at the moment of the acquisition and the equity value of our participation. And then, there's an adjustment to net book value and net position. And so all in all, since the difference between the price of our participation at the time of consolidation and the equity value of our participation today is positive, we have a P&L impact that's negative. But as I was saying, going forward, based upon Banco BPM's past results, we should have an increase of about EUR 100 million of net income per quarter.
So this quarterly net income has these exceptional effects that made it a little bit complicated to read. But if you look at annual results without any form of restatement, we have stable results at EUR 7.1 billion. So we have a certain number of exceptional elements that more or less cancel out. We have the impact of the first consolidation that I talked about of Banco BPM. We also have in the Q2, the capital gain linked to the deconsolidation of Amundi U.S. in the Q2. And we also have an additional corporate tax charge for EUR 147 million.
And so if you exclude all of these elements on the right of the figure, you see that we have a gross operating income, which increased in 2025 by 1.3%, thanks to buoyant activity in our business lines and thanks to our constant attention to operational efficiency. And cost of risk is under control. And so all in all, you remember that we had told you that we would have a stable net income over the year, excluding additional corporate tax. Now including this, it's stable. And excluding it, net income would have increased by 1.8%. Finally, as indicated by Olivier, the ROTE is high at 13.5%. Pro forma, it's at 13.9%, and this bodes well for 2028 financial trajectory.
Now, if I move to capital, for CASA, recall that the target in our medium-term plan is 11%. So we still have a very high level of CET1 this quarter, 11.8%, about 300 percentage points -- basis points, sorry, above our 8.75% SREP requirement. And this is thanks to, first, retained results, 22 basis points, which are the consequence of the generation of income that I commented before, but also integrating a 50% payout, payout based upon a distributable net income, which we adjusted to exclude the capital gain related to the deconsolidation of Amundi U.S. for EUR 304 million. It's not a cash effect and to exclude this accounting effect of the EUR 607 million P&L impact of the first consolidation of Banco BPM. And so this amounts to a dividend of EUR 1.13 per share, an increase compared to last year of 3%.
Now, if I come back to the waterfall, we also have the effect of the organic growth for the business lines, 6 percentage points. And we have an active management of our balance sheet. In particular, we have optimized, as planned in our medium-term plan, our RWAs through the synthetic risk transfers for about 7 basis points, and this allowed us to release EUR 1.6 billion RWAs in CACIB net and EUR 0.6 billion in Credit Agricole Personal Finance and Mobility in the fourth quarter. So we're going to really have an attitude which is scarce resource monitoring, always making sure that the cost of release is accretive. But you see here that we have this active management of the balance sheet, which allows us to compensate almost the methodological impact in the M&A and others. These M&A impacts include a plus 9 basis points impact of Banco BPM.
Now, we have a negative impact of the EUR 607 million P&L first consolidation effect that I talked to you about, 14 basis points. And then, there's naturally because we have this prudent view regarding our equity accounting, there's a decrease in the prudential value of Banco BPM and our CET1. So we have a positive impact corresponding to the reduction in RWAs corresponding to this decrease. And this is why the impact of the first consolidation is positive for CASA and nonsignificant for the group because for CASA, this positive impact is stronger because our exemption threshold for the significant participations above 10% had already been full. So this is why we have a different impact between CASA and the group on the next page.
This box also includes a share buyback impact, which compensates the Q3 impact of the capital increase for employees in order to neutralize the dilutive impact of that Q3 capital increase. This is 9 basis points. And we have a couple of small M&A impacts of which beginning of the participation in ICG. And finally, we have a few methodological effects. For example, in Italy, we have put in place new retail RWA models. This was included -- this is about 15 basis points, and this was included in the 40 basis points methodological impact we announced on our Capital Markets Day. And so the waterfall brings us to 11.8%, which is very comfortably above 11%.
And then slide CET1 Group Credit Agricole, next slide. I'm going to go very quickly on this because I talked about the effect regarding Banco BPM in particular. But I just wanted to insist upon the fact that our objective is not to accumulate capital at the level of CASA. And so that's why in terms of solidity, the relevant figure is the CET1 of the group, which is very comfortable at 17.4%, a 760 basis points distance to our SREP requirements. And so we have organic growth of businesses, and we also have a slight methodological impact regarding the correction of corporate loss given defaults for the regional banks. Leverage ratio is very comfortable. TLAC and MREL ratios are very strong. So we have a very strong capital position at the level of the group.
On Slide 18, we also have a very comfortable liquidity position, a high level of liquidity reserves at EUR 485 billion. The LCL and NSFR ratios are excellent. NSFR is going to be published end of March, but in the Q3, we were close to 120% for the group, 114% for CASA. And the group has mobilized various levers to diversify the sources of liquidity, thanks to its universal banking model. One, our customer deposits that are abundant, stable, diversified and granular. And so our liquidity coverage ratio is very high, above our targets, which is a range between 110% and 130%.
On the next slide, we have our transition plan that continues to be organized around 3 pillars: accelerating of the development of financing to renewables and low-carbon energy sources that has increased from the first half to EUR 28.6 billion in 2025. We're also helping our customers in their own transition by providing financing consistently with the group's sustainable asset framework. This has increased this quarter to EUR 116.5 billion. And finally, we continue to decrease our financing to carbon-based energy sources.
And so moving on to the next slide, let me conclude by saying that this quarter, net income is impacted by an accounting effect linked to the impact of the first consolidation of Banco BPM and by the difficulties of the automobile market. These 2 elements should, in fact, disappear in 2026 and contribute on the other hand to growth, thanks to the growth in mobility and thanks to the regular high recurring profit contribution of Banco BPM. Activity was sustained in all of the business lines with record inflows, outstandings and premiums income and asset gathering, record performance in CIB, a strong pickup in net interest income in France.
The fourth quarter, as Olivier was saying, marks the beginning of the medium-term plan, and we have already started rolling out the different dimensions of our plan in retail banking in France, in Germany in terms of innovation and efficiency. And so the gross operating income increased in 2025 for CASA and the Group. Income is high at EUR 7.1 billion, and this strong performance allows us to post high profitability with an ROTE of 13.5% and to propose to the general assembly an increasing dividend. So we're very much on track to meet our 2028 financial targets.
I'm going to stop here. Thank you very much for your attention. We can now open the floor to your questions.
[Operator Instructions] The first question is from Jacques-Henri Gaulard, Kepler Cheuvreux.
2. Question Answer
The question is a bit conceptual, but when I look at your results and revenues in particular versus consensus, I mean, very strong activity everywhere, you've beaten, it's very strong. But at the same time, Clotilde, I feel for you because you spent the last 45 minutes literally going through every single one-off and restructuring and everything. And at the end of the day, your stock is down 3%, which I think is a bit harsh. So -- I mean, I totally appreciate the whole non-recurring aspects of Banco BPM and everything. You've explained the legal cases. But, is it fair to say that the reason why you ended up with that accumulation of nonrecurring aspect is probably due to the fact that you have a plan coming and you need a bit of a reset for a perimeter you feel comfortable with over the next 3 years and everything? Or is it actually the problems of having a decentralized structure, which means that you end up at the end of each quarter with an accumulation of things that were not necessarily planned at the beginning? Just to try to figure out when we can actually expect something quite clean, if you see what I mean.
Yes. Thank you, Jacques-Henri. I see what you mean, and thank you for feeling for me for the 45 minutes. It's true that we really want to set the stage for the medium-term plan. And so that's why we were very satisfied when we received the authorization from the ECB to equity account our stake in Banco BPM because that's going to reduce fluctuations and provide high and recurring profit going forward. We intentionally accounted for the restructuring costs in Amundi and Credit Agricole Italia in 2025 because this again sets the stage for our medium-term plan and growth going forward in retail, in asset management. But we're also -- I didn't talk about it too much, but we're also investing also in CIB, in LCL. So the costs that you have this quarter really reflects this investment that we have for the future in our medium-term plan.
Now there are a few one-offs that don't depend on us, in fact, regarding, in particular, the U.K. provision and the Banca Progetto restructuring. And we have this issue in terms of the automobile market, but all of this should pick up. And I think what we really want -- what I really want to insist upon is the fact that we have really an outlook that's going to be strong for 2026 because we also have the integration of the recent acquisitions. That's also something that's going to pick up.
We no longer have these integration costs for CACEIS. We have very limited integration costs that are going to be coming in 2026 for the group, but it's going to be limited. And as you can see, we're on Slide 6, we really have a lot of tailwinds going forward, in particular, with margins that are going to pick up, in particular, for French retail and for consumer finance. And of course, performance continues to be very strong in CIB and Credit Agricole Assurances.
The next question is from Tarik El Mejjad, Bank of America.
A few questions on my side as well. First of all, I mean, given the restatements you've done for the BPM on your accounts, which was very helpful, would you guide for an increasing net income year-on-year from the restated EUR 7.27 billion in '25, given all the moving parts? Consensus has that flattish or slightly down, which I think is a bit too cautious.
And the second question is on capital and distribution. I mean, you've been increasing your EPS, but still accumulating excess capital. So you've just presented your plan, so there's no policy increase, policy in distribution and so on. But just want to hear you in terms of your plans in terms of what areas you could do some bolt-on and where you see good use of capital.
And then, talking about this bolt-on, I mean, you had a very interesting slide, Slide 41, showing the ROI for the previous M&A deals. I mean, I already picked some on this with you, Clotilde, on the CMD, when you said the 10% ROI -- above 10% ROI is satisfactory. I thought it was quite of a low number. But now, I look at what you've done so far, between 11% and 13%. I mean, is that something really you've kind of expected from the origination of those deals or you were hoping for better than that and been disappointed by integration?
Thank you, Tarik, for your question. Now, regarding guidance, I think really what I want to go back to is what Olivier was saying in terms of how we're setting the stage for the plan -- for the Act 2028 plan. So indeed, if you look at pro forma, we had a EUR 7.3 billion net income group share in 2025. And so we're well on track to reach our target, which is to go beyond 8.5% in 2028. But as you know, we really like to remain on multi-annual targets.
In terms of cost-to-income, what I can tell you maybe more precisely, however, is that the 57.4% pro forma cost to income is a peak. It should go down next year. So 2026 cost-to-income should be lower than what it was in 2025. On the other elements, in terms of revenues, net income and ROTE, what I can just tell you is all of this we're on track to increase, and it's true that the 13.9% pro forma ROTE of 2025, really bodes well for the future. And I think we can really say that the 14% target for 2028 is really a minimum.
Now, you were talking on organic bolt-ons. You know that our track record is really based upon a mix of organic and a mix of bolt-ons. In the Capital Markets Day, we talked to you about the fact that we had revenue growth that was 70% organic and 30% external growth. And that's why we had a revenue growth that was more than 5% over the past 6 years, and we're targeting a revenue growth of 3.5% in this medium-term plan. This is supposing that there would only be organic growth. We do hope we will do external growth operations.
And as you were saying, Tarik, we do have very strict financial criteria. And so thank you for spotting out to Slide 41, and so thank you for Cecile and the team, and by the way, who prepared this slide. We take into account ROI, of course, and we're happy to have these figures. The 10% figure is a minimum. But there's also other criteria that we take into account. And we talked about it in the Capital Markets Day. We have to have operations that are accretive in terms of ROTE. We have to have a demonstrated integration capacity by the benefit of this integrating. We have to have revenues and cost synergies. And of course, these operations have to be very well aligned with our strategy.
And so, to answer maybe your question as to what we can see in terms of bolt-ons, it's going to be linked with our strategy. Olivier was talking about the fact that we want to develop -- in terms of -- in France, in Europe, in Germany, we want to develop in Asia. We want to support the savings development in Europe, in particular. We want to support the development of corporates, in particular with mid-caps. In Europe, more generally, we were talking about these different triangles of growth where the mid-caps and the corporates are going to support the competitiveness of Europe.
All of these are areas where we want to continue to develop, and all the business lines that you see, by the way, on Slide 41, all of the business lines have critical size, are profitable and so are very well positioned to continue to seizing opportunities if they appear. But we're really in an opportunistic mode because our medium-term plan, we can reach the targets through -- solely through organic growth.
The next question is from Delphine Lee, JPMorgan.
Yes. So I have 2 questions. On the first one, if I can ask on sort of your comments going back to your comments on 2026 outlook, when you mentioned the headwinds on NII for Italy, CACEIS and wealth management. I'm just wondering, is that just you're trying to be conservative? Because you do have already volume growth, and NII has stabilized in Italy. Shouldn't volume be able to offset the rate headwinds, just if you could give a bit of color on that?
The second thing is, do you mind just like expanding a little bit and elaborating more about sort of Leasys and GAC Sofinco in China? Because -- I mean, how quickly can we see a rebound in your associate income? Production is picking up, it seems, in China, but like how quickly can we see that already in the numbers? And how can we measure the sort of the implications of the write-downs you've done on Leasys this quarter in terms of what that means for '26 and '27?
Thank you. Thank you for your questions, Delphine. Yes, we have tailwinds for net interest income in France, but we do have headwinds for net interest income, as you were saying, in Italy, in CACEIS and wealth managers. We're, of course, hoping that volumes are going to pick up, and we have dynamism in commissions, but it's true that there is a rate effect that we see in Italy. The decrease in net interest income in Italy should not be that significant.
On the other hand, the increase in net interest income in France should be a little bit stronger, in particular for LCL, and of course, in the regional banks, which also are going to support which is also going to support growth in the regional banks, which is always good for the activity of the business lines of CASA. So relatively, reasonable headwinds on net interest income in Italy.
Now, if I come back a little bit to Leasys and to China. So let me just maybe talk about China a little bit because I didn't go too much into detail about that because, in fact, the production had slowed down in the first quarters of the year. In particular, I talked to you about that in the Q2 and in the Q3 in China. And in fact, we have had in the Q2 2025, an event where the Chinese authorities imposed a 5% floor to the commissions, which caused the market to normalize because we had, had the entry onto the market of banks, which caused competitive conditions on the market.
And so production is picking up. December was the highest month of the year for GAC Sofinco in GAC Leasing. But the effect of this normalization, it's going to take a few quarters to come into the income because the average duration of these loans is a little bit more than 30 months. So we have to be cautious. But nevertheless, GAC has also begun to diversify its activities to the used car financing, for example, to the development of new services. So I think reasonably, we could consider that China's income could stabilize in 2026 compared to 2025. And hopefully, it's going to pick up going after that.
Now, for Leasys, there's going to be drivers of profitability going forward for Leasys and for mobility more generally, a diversification of the distribution channel, a revamping of the services catalog, an improvement in the remarketing process with value sharing with car constructors, IT tools. We're developing a cross-European remarketing strategy, building on synergies between the different entities. And of course, the automobile market should pick up, and we are going to have more value-driven pricing. Now, we're confident in the fact that Leasys was going to recover profitability levels in 2026 and pick up even more in 2027. So a regular increase over the years of the medium-term plan.
The next question is from Pierre Chedeville, CIC.
Two questions on my side. First question regarding the launch of the platform in Germany and more generally in Europe on the savings side and online side. Will it cost some -- do we have to anticipate some extra charges regarding this launch and this project in 2026? Because you are not very precise on that side in the P&C. So do we have, I don't know, IT investments, things like that?
I'd like to come back also on the cost of risk in LCL. You mentioned some attention points regarding retail and distribution. Do you think that here we will have to have a forecast in the coming quarters in terms of cost of risk similar to what we see -- what we've seen in this Q4 for the next quarter? Or is this a peak, I would say, in Q4 and the normalization in the coming quarters?
Thank you, Pierre, for your questions. So regarding the development in Germany, of which we have the development of the digital savings platform, but which includes the development, for example, with -- of everyday banking services. This development should be relatively low cost -- I would say, would be below EUR 50 million. Why? Because we already have a setup in Germany with Creditplus, 20 branches, and Creditplus is already doing EUR 15 billion in on-balance sheet savings. What we're going to do is we're going to put up a very agile and efficient platform, in particular, to internalize the margins in terms of on-balance sheet savings. And this is something that we should start in the first half of 2026. And then, we're going to incrementally build upon that, adding day-to-day banking solutions with essential banking products. This should come in the second half of 2026.
And then, in 2027, we should have off-balance sheet savings offers. What am I talking about? I'm talking about all of the synergies that we can do with the entities of the group, such as Amundi, for example, or Credit Agricole Assurances. But these on-balance sheet savings themselves should be relatively competitive because we're going to propose a number of on-balance sheet solutions for our customers in Germany, which should make this digital saving platform very interesting.
But to answer precisely your question, Pierre, all of these developments should be at a very low cost, less than EUR 50 million. And hopefully, we're going to have revenues that are going to contribute to our growth, thanks to these initiatives. That's the first point. The second point, you're talking about cost of risk in LCL. It's true that we have had an increase in incurred Stage 3 cost of risk this quarter in LCL. And so it's true that we're going to be very cautious regarding the different sectors that I talked to you about, retail development, automobile, textiles, distribution, et cetera, et cetera. It's very difficult to say what's coming in fact, a lot of uncertainty. We have a lot of uncertainty in France, in Europe regarding the corporate market. What I can tell you is that we have had low cost of risk in the recent quarters. But we have, more importantly, accumulated over the past year very strong provisions, provisions at the level of the group, provisions also at the level of CASA.
The provisions at the level of CASA include prudent provisions that represent about 1.5 years of cost of risk. At the level of the group, we're close to 3 years of cost of risk. So we have very strong provisioning. And so if the Stage 3 cost of risk continues to increase over the next quarters, we really have these buffers in terms of prudent provisioning that allows us to limit the cost of risk, and I'm still very comfortable regarding the hypothesis that we have in our medium-term plan, which is a cost of risk at 40 basis points for CASA during the medium-term plan.
The next question is from Matthew Clark, Mediobanca.
I have a couple of questions. Firstly, on Leasys, and then, on Slide 41. So with Leasys, can we expect it to break even already next quarter? Or is more a full-year breakeven kind of project? Is that the right way to think about it?
And then, the second question is just on the calculation of your ROI on Slide 41. Is the 13% as simple as your net profit divided by the sum of all the considerations for those entities? Or is it more like a return on invested capital calculation or some other aspects of it? Any guidance there would be appreciated.
All right. Thank you, Matt. Regarding Leasys, I'm not going to give you any quarterly guidance. What I'm going to tell you is that hopefully, we're going to have a positive profitability for Leasys in 2026, picking up in 2027. But uncertainty is relatively high on the automobile market. So it would not be unreasonable for me to give you any quarterly guidance regarding Leasys, but we are comfortable in the fact that we're -- confident on the fact that we're going to resume profitability, double-digit contribution to net income in 2026.
Now, for the M&A operations, it, in fact, depends because some of the M&A operations are difficult to -- the ROI is difficult to calculate because the objective of these operations usually is to really have them really feed into the business, and it's oftentimes very difficult to see what is the contribution of this integrated activity to cost or revenue synergies. So when we look at the ROI, we look at the revenue synergies. We look at the cost synergies. We compare that to the price of acquisition. And then going forward, we try to estimate the contribution of the integrated activity to the net income, but it's going to be an estimation naturally because it's difficult because we don't have separate entities.
One of the cost synergies that -- one of the drivers of the cost synergies is the migration -- IT migration and the merging of legal entities. So this makes things difficult, but what we do look at to simplify is we do look at additional net income in year 3 compared to the capital that we invested.
So just to clarify, is it compared to the consideration that you -- when you say capital that you invested, is that the consideration you pay to the seller? Or is that the CET1 on capital that's--okay?
It's the cash. It's the cash that we paid. It's not a CET1. We do have a return on CET1, but that is more comparable in fact to the ROTE. What I'm telling you that we have an ROI and we want to have something that is accretive in terms of ROTE, perhaps to have something that's accretive in terms of ROTE, we look at a certain number of elements, the RONE, but oftentimes, the ROCET1, which looks at the capital consideration that you're talking about. When we look at ROI, we're comparing it to the cash invested.
The next question is from Alberto Artoni, Intesa Sanpaolo.
I have 2. The first one is just a quick follow-up on the cost of risk in LCL. And I just wanted to better understand if the increase of cost of risk was linked to a limited number of big tickets. Or was it more a broad-based issue with certain sectors that you called out in the slide?
And the second one is on the tax. What do you expect for 2026 taxation at CASA level?
All right. Thank you very much, Alberto, for your questions. Regarding LCL, it's an increase in a certain number of individual risks on corporates, but I would not say that it's 1 or 2 large deals. There are -- it's not completely a large number of small corporates. There are individual risks, but it's a little bit more diversified regarding the SMEs. So it's an increase in the SME risk in the different sectors that I was talking to you about. It's not 1 or 2 specific cases.
Now, regarding the corporate tax, going forward, we do have, as you saw, the publication of the tax decisions by the government, which causes us to forecast a relatively similar corporate tax going forward. It's too early as of today to draw conclusions, but we still have a corporate tax that should be based on an average of the fiscal revenues of past year and current year. So that's why we can't estimate it as of today. The corporate tax for 2025 was based upon the average of the fiscal revenues of 2024 and 2025. So we have to calculate -- we're going to have to calculate the corporate tax going forward based upon the fiscal revenues of 2025 and 2026.
Now, it's more or less the same type of corporate tax, except that the threshold in terms of turnover is a little bit higher. It goes from EUR 1 billion to EUR 1.5 billion, which could have an impact at the level of the group. But all in all, we will have a corporate tax. The amount will be in the same ballpark as what we had this year. And it's true that this is something that is taking into account -- in our medium-term plan, we know that we have to take into account a certain number of uncertainties, and this is one of the uncertainties that we have to take into account. Hopefully, it's not going to continue until 2028, i.e., the end of our medium-term plan.
The next question is from Sharath Kumar, Deutsche Bank.
I had 2. Firstly, on Specialized Financial Services. I know that this is one area where consensus seems to be consistently underestimating your strength. Anything that you can say as to why consensus seems lower? And what do you think it is missing?
And a follow-up on Leasys, can you clarify what drove the higher used car sale losses and whether there's more pain to come?
And lastly, on Corporate Center, if you can give guidance, now that we will not have the Banco BPM accounting impact, do you think the 4Q underlying level of, say, call it, EUR 80 million negative net income, is a reasonable run rate to extrapolate going forward?
Okay. Thank you, Sharath. So for SFS, the thing is that it's difficult to estimate the impact on mobility in the context that we have currently, which is a context of an automobile market that is under difficulty. So this is something, in fact, that has been -- had an impact on most of the car constructors, but it's true that the car constructors with which we have a relationship today with Credit Agricole Bank, specifically with Tesla, GAC Sofinco with GAC and Leasys with Stellantis, we have had difficulties on these 3 car constructors, each for specific reasons that hopefully are going -- are behind us, and hopefully, activity should pick up. That's the first point.
But if I extrapolate a little bit to used car, there is a market where the arrival of electric vehicles is making the residual value of used cars difficult also to estimate. That's also why we adopted a very prudent approach by applying a conservative discount to our used car residual values for Leasys. This is really to put us on a solid base for the future regarding this dimension. And if I -- because we have a certain number of growth drivers in CAPFM, not only mobility, we also have personal finance.
And in terms of personal finance, we're optimistic. As to the pickup, we're going to have tailwinds linked to the margins, and we're going to have also a pickup in the insurance and services. So these are elements that should help us going forward.
For Corporate Center, what we said in the medium-term plan was that we could target around EUR 900 million -- EUR 400 million in contribution, I think. I'm just verifying that with Cecile right now. She's nodding -- she's shaking her head. So maybe that's not that. I'm going to have to come back to you as to the guidance we have in the medium-term plan in terms of the corporate center.
Next question is from Benoit Valleaux, ODDO BHF.
A few questions on insurance, if I may, which was about a very strong figure. The first question is related to CSM, which has enjoyed a very strong growth of 9.1% over 12 months. So it's partly due, of course, to the activity, but also you mentioned some positive market effect. Can you just please tell us what has been the market effect or what has been the new business CSM, just to understand a little bit the quality of this strong increase?
The second question is on P&C. Your combined ratio has been broadly stable at 94.6% for the full year. So what do you expect in terms of price increase this year? And what do you expect in terms of combined ratio this year and over the plan? I have in mind that maybe you expect a broadly stable combined ratio over the plan, but I don't know if you can confirm or elaborate a little bit on that.
And maybe the third question is on solvency. Solvency is down a little bit compared to year-end '24, but it's still very strong. So it's fine. My question is, first, I mean, do you have a view on the dividend to be paid by Credit Agricole Assurance to CASA in Q2 and the impact on CET1 ratio? Or is it maybe too early for this? And the second question is, do you have a view on what could be or what will be the impact of the Solvency II overview on the solvency margin?
All right. Thank you, Benoit. Now, regarding the CSM, so we have a certain number of elements. And in particular, we have the variable fee approach dimension, which is contributing to the allocation of the CSM. So we have a very slight decrease in the allocation factor, but nevertheless, we have a CSM that is -- that we have -- which we have new business contribution that is higher than the CSM allocation. The positive market effects are effects that you can have, in particular, in the GSA in terms of -- for the life insurance.
Now regarding P&C, we have a combined ratio indeed at 94.6% at the end of the year. Going forward, there's going to be pluses and minuses. There's going to be an impact on claims, for example, of climate change, for example. But on the other hand, the premiums in this context should adapt. And the idea for us is to be able to develop P&Cs in France, internationally to develop the equipment rate to diversify also to principalize our customers in the retail banking in order to increase the extent of P&C solutions that they can have. So these are areas for growth in terms of P&C going forward.
But it's true that there will be this mix between claims and premiums going forward because this is linked to the evolution of the market. And in terms of solvency, it's really too early to give you any elements like that. Of course, the solvency ratio is something that we usually give you at an annual level for Credit Agricole Assurances, which is very high. We had a slight decrease this year, 6 percentage points over year in the context of increased rates, but strong growth in activity and -- but it remains extremely high and very comfortable.
Okay. Maybe just regarding the CSM, do you have the figures regarding the contribution from the new business to CSM in '25?
We have the fact that the allocation factor is 7.5% and new business contribution is higher than the CSM allocation.
The next question is from Ned Tidmarsh, Morgan Stanley.
I just wanted to ask how is the current macro situation in France impacting CASA? And can you talk a little bit more about your outlook on French retail going forward given the recent positive developments on the deposit mix and pricing, please?
All right. Thank you. So in fact, the uncertainty linked to the fiscal budget government situation has decreased a little bit. And we have seen that in the asset swaps from the OETs, which has decreased in these past weeks. In fact, the asset swap for OETs has gone below that of Italy. So we have had a market where conditions have been relatively good. Now, there is still uncertainty going forward more generally, but uncertainty linked to European growth to the aging of population, to competitiveness issues. There is an uncertainty linked to the level of public debt, for example, in Europe, and also, of course, to the geopolitical risk, which will have an impact on the supply chains -- global supply chains. This all creates uncertainty more generally.
Now, 2 points. First of all, on our capacity to raise liquidity to meet our funding plans, CASA has a very strong position. There is an impact, a slight impact of the fact that we are -- we have an impact due to the government -- French government debt. But nevertheless, the spreads are very low for us. And in fact, our funding plan for last year, we went beyond our funding plan, which was EUR 20 billion. We went to EUR 23.1 billion because the conditions were very strong. And the funding plan that we have is very favorable, sorry. And the funding plan that we have this year is about EUR 18 billion -- 1-8, and we have already achieved about 31% of this funding plan as of end of January, which is very good and which shows that there's abundant liquidity for the European banks and for Credit Agricole, which has a very strong capital and liquidity position, and our conditions, our funding conditions are very good. So that's the first point. The second point is what could be -- so there's no issue for us, CASA, Group Credit Agricole in terms of capacity to raise funding.
The second point is, will macroeconomic uncertainty have an impact on activity, activity in the countries where we operate and our activity? Now, you saw in our medium-term plan that we want to increase the share of revenues outside of France from about 55% to about 60%. So this is development that will allow us to diversify also our business mix, first point. And then the second point is that we consider that we're very well positioned to support our customers in the developments that will be necessary, i.e., for example, I was talking about aging population. We're very well positioned to support the savings, the development of savings in Europe, thanks to insurance, thanks to asset management, thanks to the deal that we just signed with ICG in private debt, et cetera, et cetera. That's the first point on savings.
And in our medium-term plan, we're also committing to support the mid-caps in Europe in the way that they contribute to competitiveness of Europe in a certain number of sectors, like defense or health or agri or technology. So we're well positioned to navigate in this uncertain environment.
The next question is from Cyril Toutounji, BNP Paribas.
I've got 2. The first one will be on Germany. I know you're launching your platform this year. So I'm just wondering what's your strategy to capture market share in the market that's becoming more and more competitive with new entrants?
And the second one would be on French retail revenues. So it was really strong this quarter. And the drivers of NII especially are pretty structural. So I'm just wondering what's preventing us to maybe extrapolate this growth that's quite above the strategic plan revenue targets.
All right. Thank you for your question. How we want to gain market share? So we're being very reasonable in the targets that we have. We want to go from 1 million customers to 2 million customers in Germany. We have savings outstandings that are EUR 15 billion. We want to reach about EUR 30 billion in Germany. And if we expand that to other countries, it will reach -- we're going to reach the EUR 40 billion that we talked about in our medium-term plan. So it's a relatively reasonable target because we're starting on this basis of 1 million customers and EUR 15 billion in outstandings.
And as I was saying this before, we think that we're going to have a competitive edge linked to the number of solutions we can provide in terms of on-balance sheet savings in this digital platform, time deposits, et cetera. So we have a certain number of solutions that should be more numerous than those of other competitors. But recall that Germany is a market where there's a very strong depth in terms of savings. We want to target affluent customers. And so we're relatively optimistic regarding this, first point.
The second point, indeed, the net interest income revenue increased strongly in France this quarter, and in particular, in the regional banks. And in the medium-term plan, we have increased -- an increase -- we have included, sorry, an increase in net interest income. The 11% net interest income that we have seen in French retail this quarter is probably a little bit strong. But for going forward -- but in 2026, I think we can say that we will have a high single-digit increase in French retail in 2026.
And then, maybe coming back because Cecile and the team were just checking to the Corporate Center, the minus EUR 400 million I was talking about is indeed a good order of magnitude for a guidance for the net income for the Corporate Center by 2028.
[Operator Instructions] Gentlemen, Ms. L'Angevin, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.
Thank you. Thank you very much, everyone, for your attention. So I'm not going to come back to the results that are very strong this year. I just wanted to make one last point. We talked a lot about medium-term plan, which is very good because we're really orienting ourselves into this medium-term plan by 2028. And during the medium-term plan, we have promised that we would do a couple of workshops on a couple of businesses. And in particular, we had talked to you about a workshop for LCL in the first half of this year. And so I'm very pleased to ask you to save the date of May 26, where we will be pleased to host you for an LCL workshop in Paris. And I'm going to stop there.
Thank you, everyone, for your attention, and have a very nice day. Thank you.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.
Crédit Agricole — Q4 2025 Earnings Call
Crédit Agricole — Crédit Agricole S.A., Q3 2025 Fixed Income Call, Nov 24, 2025
1. Management Discussion
Good afternoon, and good morning, everyone. Welcome to Credit Agricole Fixed Income Call focusing on the publication of the Medium-term Plan 2028. I am Romain Beillard, heading the Financial Institution Group DCM in Paris. I have the pleasure to have with us today Cecile Mouton, heading the Investor Relations and Head of the Financial Communication for Credit Agricole S.A. and Olivier Belorgey, Deputy CEO and CFO for Credit Agricole CIB and also heading the Treasury and funding for Credit Agricole Group. As usual, Cecile and Olivier will go through the presentation.
As mentioned, focusing on the recent publication of the medium-term plan. If there are any questions on the Q3 results, we'll be more than happy to answer. And we'll also leave the floor for more questions at the end of the presentation. With no further ado, Cecile, I'll leave the floor.
Thank you. Good afternoon, everyone. I'm very happy to see you again. It's been quite a long time. But as you know, this was for a good reason. We were preparing our new strategic plan that we presented to the market last Tuesday. So it's now launched. It's called Act 2028, A for acceleration, C for cohesion and T for transformation. And I'm very pleased to share with you now the most emblematic strategic initiatives that it includes.
But let me start with what we want to be. In fact, we are facing really 3 challenges as of today. First is Europe competitiveness. Europe is lagging behind the U.S. in terms of productivity, and it needs to invest massively in energy, in defense, in AI, et cetera. The banking sector is facing an intensified competition due to digital and AI. We are seeing this fragmentation of the relationship and this intermediation of banks taking more and more space. And we have a social and environmental transition that are going very fast. We are talking about climate, of course, but we're talking also about demographic transition with the aging of the population and the great wealth transfer that is coming soon. So what do we want to be? We want to be a leader in Europe. We want to leverage on our presence in several countries in Europe, in France and in Italy, of course, but not only we want to further develop in other countries. Two, we want to be a leader in new technologies. We do not want only to use them. We want to master them and it's very important for our security, efficiency and for the value proposal that we are making to our clients.
And three, we want to be a leader in transitions. Transition bring challenges, but also opportunities, and we want to pave the way on those topics. So as a whole, I would say we want to be a concur group, a group that expands, that sizes opportunities and that is creating value for its clients, its shareholders and bondholders and for all the communities. If you were to really take away only 3 major strategic targets of this plan, it would be those ones. First, we want to have 60 million customers in 2028. We have 54 million in -- at the end of 2024. We want to generate nearly 60% of our revenues outside France, starting with 55% in 2024. This is for -- and we want our cost/income ratio to be below 55%, which is to be compared to a cost/income ratio pro forma in 2024 at just above 56%. And of course, those strategic targets go with ambitious financial targets that I will let now Olivier present.
Good afternoon, everyone. So in terms of the main financial targets, in terms of net income group share, we want to reach a level which is above EUR 8.5 billion, starting from EUR 6.9 billion in '24, which means almost plus 25% in terms of net income group share. In terms of revenues, the CAGR for the plan is -- has been targeted at plus 3.5%. It has been considered a little bit cautious by the market. And effectively, Credit Agricole generally delivers more, but we have to precise the fact that this is taking the hypothesis of only organic growth. And we will see further in the presentation that we have some strategic room of maneuver in order to deliver more than that. In terms of Cecile was mentioning that we want to transform. We want to be a leader in new technology, and we plan to improve the cost-income ratio. On a pro forma basis in 2024, the cost-to-income ratio is at 5.4%. So we intend to decrease it below 55%. It means that we clearly aim at delivering productivity gains. In terms of return on tangible equity, we are already delivering 14%. So what we want to do is expanding our footprint in terms of client base, in terms of product -- range of products and services, in terms of net income group share, keeping the very high level of return on tangible equity that we are currently delivering. Last time, we were targeting and committed to deliver more than 12%.
We have effectively delivered 14%. And for this time, we are a little bit more ambitious because we commit to deliver at least 14% -- for Credit Agricole S.A. level, the CET1 ratio will -- the commitment in terms of CET1 ratio will remain to be above 11%. So no change in this regard. This is something which is well accepted by the market and which aims at optimizing both for equity holders that count on a good return and for bondholders, which anyway -- for which anyway the relevant perimeter is a group perimeter, and we will come back on that. So for Credit Agricole S.A., we stick commit to be above 11%. In terms of payout ratio, so this is a slide which is extracted from the equity presentation. For the payout ratio, once again, we will keep our current strategy, which is to pay a dividend, 50% in cash. We just adapted ourselves to some market practice, which become more and more common, and we commit to pay an interim dividend starting next year. So now Cecile, I give you the floor for further details concerning how we target to do that.
Thank you, Olivier. So as I was saying in the beginning, A is for acceleration, cohesion and transformation and really the 2 pillars of this plan are acceleration and transformation. And let me start with acceleration, and I'm going to go straight away to the next one and to explain to you how we're going to first accelerate in France. France is our domestic market. We have 3 brands in France. And really, what is the challenge here is to better articulate our 3 brands. First, with the Credit Agricole brand, so with the regional banks. The regional banks are universal banks serving everyone. This is how they were built at the beginning. And this is really what they are going to continue to do. So serve everyone at any moment everywhere with still maintaining this close link with territories and with a strong objective, in particular on young customer, which is a little bit detailed on the right-hand side of the slide. The idea is really to propose, and this is something that we expect to launch next year, a disruptive approach, digital approach tailored to the new trends, uses what young customers are expecting from a bank, in fact.
SCL is completely reshaping its relationship model and is going to focus on 2 axes. First, is going to propose a fully digital service for clients that are independent and want to stay independent and with the objective to really optimize the cost to serve with this first relationship model. The second focus will be on affluent customers. And for affluent customers, what LCL wants to do is to propose a premium offer with wealth management services with enhanced advice, et cetera, et cetera. But really, the idea is for LCL to focus on those who are entrepreneur, those who move forward as I say. And last, our third brand, before Bank, so our digital bank has recently accelerated on its customer capture, which is now reaching something like 400,000 clients. But the idea for -- before Bank for the coming years, it's really to accelerate the development of its saving and investment platform. So it's a kind of pivot on a digital savings solution BforBank is going to propose to its clients. Altogether, our 3 brands in France have the objective to capture 8 million new customers in the coming 3 years, so until 2028. Acceleration in France, but also acceleration in Europe, and this will be the second.
First, in Italy. So Italy is a country where we have already a long-time presence. We've been building setup in Italy over the past 25 years. It's now our second domestic market. We have 6 million customers as of today. It represents 16% of Credit Agricole S.A.'s results in 2024. But we have the objective to continue to develop, so to amplify this momentum -- growth momentum and to reach the 2 key figures that you can see here, 6.5 million customers and a contribution reaching 20% of Credit Agricole S.A.'s earnings in 2028. How are we going to do that? With the same growth levers already mobilized and really relying on the organic growth. So that means capturing customers across all strategic markets. And when we say capturing customers, it's not only we say Italia, it's through all the business lines that are present in Italy, so Agos, [indiscernible], Amundi, insurance, CIB also. We want to do that by creating a digital bank for professionals. And for that, we are going to capitalize on Blank, which is a platform that we have developed in France as we have space to become really a leader on that market in Italy.
We want to increase the cross-selling and just to give you an example on how we want to do that is it's with a better use of data between the different business lines. And we want to strengthen Credit Agricole brand, which is already very well recognized in Italy. In fact, when you look at different surveys, we are already, for example, ranking #1 in terms of client satisfaction. So we want to strengthen that and to build upon that also. We will be also attentive to external growth opportunities in -- but the development in Europe is not only in Italy, we want to further develop also in other countries and we are going to start by Germany. So in Germany, in fact, it's not completely new. We are not starting from scratch. We already are present in Germany with 1 million customers, EUR 15 billion of savings outstanding and EUR 11 billion of consumer loans outstanding. We are present through essentially 2 business lines, and I'm talking about individual clients. We present with Credit, which is an entity of Personal Finance and mobility with 20 branches in Germany. we are present also a lot through Credit Agricole Auto.
What we want to do in Germany is to create Credit Agricole Dutch. So Credit Agricole Dutch is not a new entity. It's, in fact, an umbrella brand that we're going to use and which is going to aggregate really all the activities that are already present in Germany. We are going to build upon our strong digital and data expertise and notably the one of Credit Agricole Personal Finance and Mobility. And the idea, what do we want to propose to clients is really a full range of products, but we will start with savings solutions and first with deposit solutions, something that we are already doing, as you can see with the EUR 15 billion savings outstanding that I was mentioning. And we are going also to propose everyday banking services. So this is something that we expect to launch quite quickly. It's next year, in fact, in 2026. And afterwards, we want to complement this offer with a full range of savings solution. And there, we will be able to bring all the solutions, products that we -- that our product factories within Crédit Agricole. can propose to all types of clients.
And we want also to propose insurance products and all this is scheduled for 2027. And we will also, maybe last point, build all this upon the technological tool that has been developed by before. This is important that I mentioned this because it shows you that this is not something which is going to cost a lot to Crédit Agricole. We are talking about less than EUR 50 million because we are, as I mentioned previously, really building upon what we already have, which is was maybe separated, but we are going to put all this together to create this Crédit Agricole. And as we expect it to be a success and the objective that we set is to have 2 million customers at the end of 2028. We also have the intention to develop this model elsewhere in other countries, in neighboring countries of France, could be Spain, could be Portugal, Belgium, et cetera. We have also other initiatives in Europe. And I will highlight 2 in particular. The first one is the pan-European digital savings platform that we aim to launch, which is, in fact, completely linked with what I've just described with the adoption and the development in Germany and in other countries.
This pan-European digital saving platform is something that we will be able to launch quite rapidly. It will start also in Germany, but with the objective to be developed in 8 countries in the end with this objective to have more than EUR 40 billion of outstandings at the end of 2028. And we have also a strong initiative with mid-caps in Europe. So of course, we already have a lot of clients within this population in France. But here, the idea is to develop outside France. And for that, we're going to focus on 2 axes. First, we're going to focus on 4 sectors in particular, sectors that are strategic for Europe, for its sovereignty and sectors in which we have really a recognized know-how and expertise. I'm talking about agri-food, defense, tech and energy. So this is the first axis. And the second one is that we are going to focus on 2 geographical areas. Those geographical areas were designed as there are areas where we have strong trade flows. So in fact, there are areas where those mid-caps are active at the moment. And it's also one of them is really linked to the potential as we can see with the future reconstruction of Ukraine. So those 2 areas will be France, Germany, Italy, the first one. And the second one will be Germany, Poland, Ukraine.
Moving on to another initiative and another topic is -- which is about the transition. First topic, climate and environment transition. So this is something on which we have been already very present. We have a strategy in terms of climate that we have presented deeply in -- during 2 workshops in the past years. So what we want to do there, we just want to continue to be a leader in those transitions. What it means? It means that, for example, if you look at this green bond ratio, we wanted to move to 90-10. In other words, for every euro financing fossil fuel, we will finance EUR 9 for ecological transition in 2028. And we also commit to be very present in the financing of those transition and we commit to this figure of EUR 240 billion of financing in 2028 for those transition -- the second point is that we are also launching 2 strong initiatives for nature and which are detailed here. Capital Natural, which is a program to design nature-based solutions and ecosystem restoration. And we will also launch this climate and nature Force, which will be, in fact, an internal network of experts to develop innovative method and computation for climate and biodiversity.
So that's what was climate and environment. And then other types of transition, but a very important one is the demographic transition with several topics, wealth transfer, retirement savings and aging well. In fact, on those topics, for example, the first one, wealth transfer, what we know is that in the 10 coming years, we will have EUR 3 trillion, which are expected to change hands in the next decade. This is what we call the great wealth transfer. And in terms of retirement savings, we know that people over 60 will double by 2050. And it's also something that we read in the survey, 3/4 of French people say they feel a deep concern about their retirements due to the pressure on pension reforms notably. So we think we have a role to play here, and we want to be very present and to become a trusted partner on all those topics. We want to deliver investment solutions for all schemes in France. We want to propose new offers in Italy. We want to strengthen also our leadership in individual retirement saving. And this is what will be the key objective here will be to be #1 in individual and group retirement outstanding in France by 2028.
And Amundi, which is really creating a new business line for this aims at having more than EUR 75 billion of net inflows in retirement savings in Europe through this plan. All this, all what I've just presented, all the acceleration initiatives should lead us to an even more balanced and diversified model as shown in the different pie that you can see here, so be it split by business lines, by geographical areas or by types of customers. I'm now moving to the transformation. So as we already said, transformation is key. We aim to have a cost/income ratio below 55% in 2028. And in fact, we are really facing 3 challenges. We need to be to go faster. We need to be more efficient and we need to be more agile in the coming years to be able to face all the challenges and to deliver all the initiatives I was talking about. To make it simple, in fact, there are really 3 main axis for this transformation. First, we want to invest massively in new technologies, for example, in AI, of course. We want to build shared technological foundations.
For example, we want to have an AI factory for the group, which will be able to provide assets and tools to all the entities of the group. We are going to create a data marketplace also, and this aims really for us being able to share data across all entities within the group. And for example, we want also to create common platforms. We want to create a KYC platform for the group, and this will enable us to gain 50% of efficiency gains on compliance in the coming years. And third point, we want to simplify, simplify our organization. So this is really important. This is not completely new. Of course, we've always been very attentive to simplification of processes, simplification of organization, but we want to intensify really this lever. And because we -- it's also the result of all our history, 140 years of history, we have accumulated layers and layers of maybe complexity due to regulation, due to evolution of product due to all the processes that we have implemented in the past to be able to have such a wide range of services and products to propose to our clients well, we want to simplify all this, and we want it to be really a core management principle for the coming years.
Example, when you create a new product, you have to consult another one. When you create a committee, you have to consult another one, et cetera, et cetera. So this is going to be very key. And now how are we going to succeed in all that? How confident are we in such an uncertain environment? Many reasons, but I will leave the floor to Olivier to detail those...
Thank you. So of course, we will leverage on our strengths, meaning our, our decentralized model, our highly committed employees, but also, of course, on our strong financial KPIs, among which our very prudent risk management and starting from this point, we have made the hypothesis that during the course of the plan, so meaning for the next 3 years, the hypothesis in terms of cost of risk will remain the same one than for the previous plan. in terms of figure, 25 basis points across the cycle, could be a little bit higher, could be a little bit lower at Credit Agricole Group and 40 basis points for Credit Agricole S.A.
I remind you that at the end of September for '25, we are at 27 basis points for Credit Agricole Group and 35 at Credit Agricole S.A. level. So despite the fact that there are some potential, I would say, weak signals that demonstrate or evidence of the fact that there is a slight deterioration of the economic situation, we are confident to keep these kind of figures. That being said, anyway, we have, as I was saying, a very cautious way of managing our exposure. And in terms of amount of provision that we have versus our impaired loan at group level, we have a total amount of provision, which represents 3 years of potential losses, taking into account this hypothesis of 25 basis points in terms of cost of risk year after year. And for Credit Agricole S.A. level, it's 1.6 year, once again, taking into account the 40 basis point potential cost of risk. As you can see, for Credit Agricole, this is the, I would say, safest position versus our European peers. In terms of financial commitment. We have, I would say, adapted, amended our previous commitment in some areas.
First of all, in terms of liquidity, you probably remember that we were committed to be in terms of LCR above 110%, both at Crédit Agricole Group level and Crédit Agricole S.A. level and for NSFR above 100%, both at Credit Agricole S.A. level and Credit Agricole Group level.
First of all, liquidity is perhaps the most fungible asset or liability across the group anyway due to the internal support mechanism due to the way potential liquidation or resolution could work. Liquidity is management of liquidity has to be performed at group level. So in order to simplify our financial communication, we have just kept a commitment at group level anyway for Credit Arico SA. It's our internal way to manage the buffers here and there between the different entities. In terms of commitment, we have more or less adapted to our actual management and/or to our peers, meaning for the LCR, we were effectively managing around 130, to be honest, 140, 130, depending on the way our competitors are managing. Our objective is not at all to goal plate the LCR. It's more or less to be within the bulk of our competitors.
So here, once again, to reaffirm the fact that we don't need to go plate, but that obviously, we manage within the band of we manage it within the band. So we commit here to be within the 110%, 130%. In terms of NSFR, the last one we have published was 119%.
So once again, we take into account our current management and the fact that we are structurally due to our business mix largely above the 110%. So more or less, we indicate here that we will manage between 110% and 120%. This is also possible in terms of management and the way we manage the buffer because we have, and we can come back on that if you have some questions, because we have a very, very ample level of reserves, not only HQLA reserves, which are effectively taken into account in the LCR calculation, but also reserves that are eligible to Central Bank, even already placed to Central Bank and which provide us with ample security on top of the LCR calculation. Concerning the capital I've already mentioned that for Credit Agricole S.A., we do not change and we keep to the commitment to be above 11%. But the real point is not there.
The real point is the fact that at group level, we continue to keep and to take the commitment to remain above 17% despite the still headwind that we will have to face in terms of CRR3 implementation because FRTB, for example, is not yet enforced. The input floor concerning financing of real estate is still to come. So despite all these forward headwinds, we will continue to keep the 17% commitment. And on top of that, it has been indicated during the investor presentation that we also intend to keep 17% or above 17% when the output floor will be -- will enter into force. So this is a very, very strong element to have in mind. In terms of TLAC, once again, we have, I would say, adapted to reality. The former commitment was to remain above 26%. But in real fact, we were managing at 27% roughly. So we acknowledge the fact that we manage more or less at 27%, once again, in line with the bulk of our competitors. So for this plan, we commit to be above -- around 27% -- then next slide, sorry. perhaps one word about the way we appreciate or you can appreciate the evolution of our room of maneuver at Crédit Agricole S.A. level.
So starting from the CET1 level in '24, 11.7%. Anyway, it's also the level at the end of September, 11.7%. What will be the main drivers of the evolution of the CET1 of Credit Agricole S.A. First of all, versus the situation in '24, we have benefited 1st of Jan this year of an improvement of our CET1 ratio due to the implementation of CRR 3. Part of it comes, we have already explained that from the fact that at the CIB level, for example, we have no internal model for credit conversion factor. We were using the standard factor under CR2, 75%. Now we use a standard factor 40% of CR3. It means lower capital requirement. So plus 50 bps, but you have also minus 40 bps for the other elements of the 3 that are not yet implemented, FRTB and the input floor for real estate financing. More or less, it will be balanced across this entire period, '24, '28. Of course, when you talk about the evolution, you have to take into account the net income that is generated minus the distribution, so 50% dividend in cash plus the AT1 coupon. Once again, we will pay an interim dividend. And then you have also the capital requirement, which increased naturally due to the fact that within this plan, we have taken the hypothesis of an organic growth.
So organic growth, nevertheless, means more RWA in order to develop ourselves and to finance the economy and our clients. This is the 250 bps right-hand side. And then as you can see, we have still a room of maneuver, which represent, if you do the math, 150 bps. Our group CFO, Jerome Grivet, has mentioned during the investor presentation that -- it represents more or less EUR 6 billion to EUR 7 billion of capital, which is potentially there in order to finance some M&A operation. M&A operation that we do not have in the radar today, but that anyway are possible, but we will continue to meet the criteria we have for M&A operation, meaning return on investment above 10% and this is important and return on tangible equity above 14% in order not to dilute our target of having an ROTE above 14%. So this is some room of maneuver, which will help us anyway to potentially deliver more than what is today written in our KPI and make us pretty confident to at least deliver what we have disclosed. If it is not used because we do not find any M&A operation that meets our criteria, potentially we can distribute it as an extra dividend.
So that was, I think, worth to mention. So next slide. In terms of funding. So let's come now to the funding plan. Perhaps 1 or 2 words concerning the funding plan of this year, '25. So we have -- the plan was to issue at Crédit Agricole S.A. level EUR 20 billion. As of now, we have issued EUR 21.5 billion roughly. So more or less very close to what was indicated end of last year. As you can see, and we are very proud of it, it is very diversified in terms of currency, for example. And if we have been awarded by IFR, it was clearly -- one of the reasons was clearly this diversification of our funding, a lot of currencies. As of now, and if you put apart the covered bond, which are effectively in euro because the assets are in euro, for the preferred senior, senior nonpreferred and Tier 2, we have only issued 25% of our funding plan in euro. Everything else, 75% has been made in other currencies with a premium for diversification, which is almost this year because we have taken some good opportunities in dollar at the beginning of the year in some other currencies afterwards.
For next year, and we provide, I would say, perhaps very early in the process. For next year, given what we intend to do in terms of growth, what we intend to raise in terms of liquidity from our clients, our funding plan should be slightly lower at EUR 18 billion. The need for subordinated and TLAC debt should be roughly the same than this year, meaning EUR 12 billion. Thus, the adaptation comes from the covered and preferred senior space, where we should issue only EUR 6 billion. We continue -- we will continue to rely on diversification. And for example, this year, because of the market conditions, because of some different factors versus '24, we have not issued in CNY, but we have added a new currency with the Canadian dollar. So be sure that next year, we'll continue to have a lot of diversification in terms of currencies. This is the way we issue our public debt. So the debt issued by Credit Agricole is a debt which is framed within the pier. So EUR 21.5 billion roughly. This doesn't include AT1 issuances because we manage AT1 clearly with a capital requirement intention.
And -- but we have also other entities that are issuing in the market, public debt for, once again, diversification purposes for consumer finance, the Autobank, for example, because we want our consumer finance business to be self-funded above 80%. Credit Agricole Italia, once again for [indiscernible] and to finance our activities in Italy in order to lower the Transform flows.
Our insurance entity for their own needs, and we have decided to issue from this entity in the market, and we replaced progressively all the internal debt by external debt and so on and so forth. Overall, it's a plan of EUR 30 billion that has been issued in '25, 2/3 from Credit Agricole S.A. and 1/3 from the other entities. In terms of AT1, we have issued so twice this year. For next year, as you can see, there is no call date or for a very, very little amount, neither in '27. So we will see what are our potential needs given our growth and the development of the business, but do not really count on the potential call for us to issue new AT1. And as you can see, we have also a large bucket today in terms of AT1, 2% at group level without any shortfall, even with some windfall in terms of AT1.
So we are very safe in this regard. One last word concerning our green issuances. First of all, I want to highlight the fact that we have issued this morning our social framework. So that's something which is new and will allow us at group level to be more comfortable to issue social bonds. But in terms of ESG, so either green, either social issuances, we are among and perhaps the biggest issuer of ESG bonds. Once again, 2/3 in green and 1/3 in social in terms of outstanding, so EUR 20 billion and EUR 10 billion, respectively. What's interesting here is to notice that we issue. It's clearly a group framework and that we issue across several entities, Credit Agricole SA as the legal entity, but also our SFH -- but we have also Autobank, Italia, Credit Agricole CIB through Green ETL. So it's clearly a comprehensive framework that we have established, and we are clearly involved in this market very intensively at every level of the group. For the social, it's more linked to our retail entities because of the way to redirect the proceed. It's clearly easier for us to downstream it to our retail entities. That's it for me. And now we are ready for questions with Cecile.
First question, are there any initiatives to expect in relations with stablecoins?
That's a very interesting question. Thank you for that. I think that in terms of stablecoin or perhaps more broadly in terms of tokenized finance, we are all investing in it, at least, first of all, in terms of trying to understand what kind of ecosystem can be built around it. Concerning stablecoin, it's clearly a question of sovereignty for Europe to also have -- to also develop a stablecoin in euro. Credit Agricole is looking at it, is evaluating the pro and cons. But yes, it's probable that we will be part of one initiative at least. That being said, stablecoin are probably not the alpha and omega of all the tokenized finance. And we are also looking and analyzing some other initiatives, be it tokenized deposit, be it deposit token and so on and so forth.
Next one. So it's about the cost of risk. What factors inputs are you taking into account to come up with a 40 bps cost of risk forecast in your strategic plan? What sectors, countries you believe will underperform increase quality? So it's not really a forecast. It's more an assumption of what -- where could be the cost of risk on average through the cycle. And this is an assumption that is not new because we had the same one in the previous plan and the same one in the one before, et cetera. So why we are maintaining this assumption? Several reasons. First, in fact, it's really linked to the business mix that we have within Crédit Agricole S.A.. And this business mix has not changed dramatically. And when we were seeing the evolution of the revenue split by business line, in fact, it was very, very similar to what we have as of today, so the forecast that we had for 2028. So no change in the business mix. And I would say no new trend. In fact, it's not -- we are not -- we do not think that any sector or country in particular could underperform.
It's more on average, taking into account all the sectors and all countries where we are present, we think it is still a good assumption. And we are even more comfortable when we look at the ratio that Olivier was describing just before, showing this ratio showing the Stage 1 and 2 loan loss reserves compared to the cost of risk assumption, 1.6 years for [indiscernible] it's quite comfortable. It's above the average when compared to our peer. And it shows our capacity to absorb shocks that could happen in the plan. So combining all this, we maintain this 40 basis points. And just maybe, one last point, remind -- just to remind that as of -- in 2024 or even more recently on the first 9 months of the year, we are at 34, 35 basis points, so around this level already. So this is why we are comfortable with this assumption.
I'll just come back and complement my answer concerning stablecoin. Well, in this regard, what we want to be at least is to be fast follower and to provide our clients the tools they need. And obviously, what is developing today is tokenized assets and some asset managers, for example, are developing tokenized funds.
So as you may have noticed, CAS, our custodian unit has obtained the MiCA license and is able to accept and keep and record tokenized funds and stable coin. So clearly, this is an area where we want to be able to be in the market at least fast follower and provide our clients the tools and the product they need in order to develop their activity.
Next question.
Can you comment on any exposures to private credit that Credit Agricole has. So before answering this very precise question, one word. We have recently -- or Amundi has recently signed a partnership with ICG in order to be able to provide our clients investment assets that are originated by one of the leader in terms of private credit. So this is something where clearly, we consider either be it at retail level, be it for institutional investor level, we consider that our clients -- for our clients, we need that kind of offer, and we will try to provide that kind of investment for them.
This is not I would say this is not exposure to private at Credit Agricole level. This is to provide our clients some access to these funds. In terms of exposure to private credit, it's very, very small today, almost negligible. Nevertheless, we also intend to develop our relationship with private debt funds either in order to finance them, either in order to sell them what we originate and potentially finance them also to do so. But of course, once again, we have a very prudent approach in terms of cost of risk. If we do so, we will only work with, I would say, funds that are already our clients that we know very well with whom we have multiple relationship and so on and so forth. So that's something which will continue to develop, but in a very cautious way.
So you have mentioned to target a cost-to-income ratio below 55% for Credit Agricole S.A. Can you explain what are the main measures? So yes, in fact, it's a combination of different types of initiatives. We have localized transformation plans that are led by each business line. We can take the example of Amundi because we already mentioned it in previous earnings publication.
So Amundi at the moment has an optimization plan. It has cost EUR 80 million of restructuring costs during Q3, but this is going to lead to EUR 40 million of cost savings in the coming years. CACIB is also -- and you can comment on this, but has a significant and strong optimization plan for the coming years. LCL and Sa Italia also are reshaping their networks, and it will lead also to some cost savings in the future. localized plans. We have also still a lot -- quite a significant amount to come from the synergies that have to be materialized in the different integration processes that are undergoing. And I'm thinking about the group Petercam and still some cost savings to expect on the integration of the European activities of RBC within CA. And we will have also some cross-functional transformation axis. So the deployment at scale of AI, simplification program that I was talking about, this creation of a group KYC platform, all these initiatives, group initiatives will also bring cost savings in the future.
So I think the next one is for me. What measures do you plan to optimize your capital over RWA? What is your strategy on SRTs? So concerning SRTs more precisely, we already use SRTs, potentially less than some competitors, only some competitors, but we already use SRTs essentially at Credit Agricole CIB level. And we essentially do synthetic SRTs. In order -- within this plan, we have taken theothesis that we will increase our recourse to SRT either at citric CIB level, where we will continue to increase more and more the way we use that instrument, but also essentially at the consumer finance level because so far, the consumer finance unit was essentially issuing securitization for funding purposes. So they were selling the senior tranche and keeping the equity mezzanine and junior tranche. Because -- and why -- and because the cost of release in terms of RWA was not extremely attractive.
Market conditions have changed. There are more and more investors interested in that product and the cost of release, the spread have decreased. So it's more and more interesting at this level to develop SRTs in order to enhance the return on tangible equity. So we will effectively use more and more SRTs. For the SME assets, first of all, at the regional banks level, there is no need absolutely to issue some SRTs in order to release capital. They have more than they need in terms of capital. So the scope could be either LCL or Credit Agricole Italia. But so far, we consider that the cost of release is not so attractive. So -- once again, we will remain open. We will look at the market. So if it's relative, why not? But so far, it's not so obvious. Next question. In your slide, you indicate a 1.8% AT1 bucket. Your previous target was 1.5%. What is your strategy in terms of AT1? Is AT1 included within your funding plan? So for the funding plan, we -- perhaps very bluntly, we never include AT1 in our funding plan. We consider AT1 or we manage AT1, I would say, separately, it's really a question of capital. Then how do we manage it? First of all, we manage the buffer versus MDA.
So given our CET1 ratios at group level, if we were only looking at group level, no need of AT1 at all, to be honest, because we have ample buffers. But as AT1 are issued by the single point of entry by Crédit Agricole S.A., Crédit Agricole S.A. is also concerned by the buffers when talking about AT1. So we have to manage that. So we manage it in order to keep at least at Crédit Agricole S.A. level because at group level, anyway, there is no question to keep sufficient buffers versus MDA. So today, we are above 300%. So clearly, slightly above what could be seen as the optimum. But first of all, we still have -- we already have announced a call and it will be slightly lower at the end of the year. And we have also taken the opportunity of very good market conditions to issue AT1, having also in mind that we are in a development mode. We are growing -- we have growing businesses and that it was -- we were considering -- we have considered it was good to take that kind of good opportunities in terms of market conditions. Once again, it's indefinite maturity in terms of AT1 depending on market conditions. what are the potential impacts of France negative rating action on the CASA rating? So perhaps we can concentrate on the near future, I would say.
So starting from the right-hand side of the slide, Fitch and S&P have very recently downgraded France. Now for these 2 agencies, the outlook is stable. So I consider that in the near future, there is no risk of further downgrade for France, so no risk for Credit Agricole in this regard. Concerning Moody's, France has recently been placed under a negative outlook. So negative outlook can lead perhaps not, but can effectively lead to downgrade. But Moody's has also, I would say, published and reaffirmed that despite the fact that the French sovereign is under negative outlook, the outlook for Credit Agricole is stable. So we have suffered last year or 18 months ago from a downgrade with Moody's because the French sovereign was downgraded, and we were not no more eligible to the implicit support of the sovereign. We are no more, I would say, linked to this element.
We are not yet capped by the selling of the rating of the sovereign. So once again, I cannot speak on behalf of the Credit Committee of Moody's, but negative outlook for France, stable outlook reaffirmed for Crédit Ag S.A. I do not expect any consequence of a potential downgrade of the sovereign by Moody's in the near future.
Thank you, Cecile. Thank you, Olivier. I think we are ending the Q&A session or maybe the last one is coming or is there any further question on the investor call? Okay. So I think there is no more question.
Cecile. Cecile. A new one is...
Okay. You have 8 million gross customer capture target in France. Is it versus 2024? If yes, how much has been already captured? This amount is quite high considering the size of the country and the competition landscape. Still it doesn't translate that much in our revenue forecast. Does it mean that the bulk of the revenues gain will be at the [indiscernible] et cetera? So yes, it's very ambitious. It is really a target which is based on 2024 figures. How much we've already capture.
I have not made the calculation just before, sorry, but it's in all our presentations and the quarterly presentation that we've published already this year. So -- and yes, it's going to be competitive. I mentioned quite quickly but the initiatives that we have with young customers, it's a very significant one. It's concerned in particular the regional banks, but it's -- and in fact, for example, young customers are type of customers for whom we've been not very good in terms of client capture recently because they were more attracted by the new bank and digital banks. So for example, with young customers, we have a very, very high ambition and this will be -- this will really rely on this new initiative, new approach that you will see next year. But when we say it's disruptive, it's become -- it's going to be completely different to a usual banking application with the new cost from the young customers, et cetera.
But there are other different figures that are also presented in the presentation for affluent customers is plus EUR 1 million or so. And there, it's really leaning on regional banks, but also on for a lot with professionals, et cetera. So all in all, yes, it is ambitious. It's true. It's in our revenue forecast, yes.
We haven't looked at it. But for example, for LCL, we are targeting an increase of revenues of plus 3% to 4% on average per year throughout the plan. We don't give any figure for the regional banks, but it's something that you can see also in the forecast revenues. So -- and this is the question [indiscernible].
And you have a last one. From a liquidity point of view, can you please explain what is the rationale of already having posted liquid assets not eligible to LCR at the Central Bank? So for me, it's really -- thank you for the question, and it's really key.
Of course, one of the -- yes, one of the common metric between banks is the LCR ratio. and you have some banks at 130, some bank at 150 and so on and so forth. But well, is it really meaningful? Anyway, if you have a problem, if there is a crisis, if the market think or begin to see that your LCR ratio is decreasing, decreasing, decreasing, they will cut the lines.
If you take another angle, Credit Suisse went bankrupt when its LCR ratio was still above 130%. So the LCR ratio is an interesting metric, and it helps to compare banks. But for me, it's not at all, not at all sufficient. And what we consider being very strong at Credit Agrico level is the fact that on top of the liquid assets, so in blue, starting from the bottom in blue, already taken into account in the LCR ratio, we have on top of that around EUR 150 billion of liquid assets that we can use if necessary, out of which the vast majority essentially self-retained covered bonds or some eligible loans to central banks that are already pledged to Central Bank so that we can have access to this amount, to this liquidity overnight.
And when I talk to some people at ECB level, effectively, when you talk about liquidity, they can discuss about some points here and there, methodological here and there. But at the end of the day, when they see -- and they know the figures because they know what is already posted at ECB. -- when they see these figures, when they have these figures in mind, of course, end of the question, end of the discussion, there is no problem of liquidity atéitricle level. For me, it's something which is very, very important.
Perfect. I think that's probably now the end of the Q&A. So thanks, everyone, for joining. Maybe just reiterating what Olivier mentioned earlier about the fact that Credit Agricole has published this morning an updated framework on the social front. So if you have any question relating to the social framework, please come to the team. We'll be more than happy to answer any questions with the new categories that have been added to the framework. Thanks, everyone, for joining the call, and have a great day.
Thank you.
Thank you.
Crédit Agricole — Analyst/Investor Day - Crédit Agricole S.A.
1. Management Discussion
Good morning, everyone. Welcome to all our guests present today in Monroe as well as all joining us virtually. It is a pleasure to have you with us today for Crédit Agricole S.A. Investor Day hosted by Olivier Gavalda.
Before we begin, let me briefly outline today's agenda. We will start with a 1.5 hour presentation, and this will be followed by 1 hour of our Q&A session. [Operator Instructions]. But without further delay, please join me in welcoming Olivier Gavalda, Chief Executive Officer of Crédit Agricole S.A..
Thank you, Cecile. Good morning, and welcome, everyone. I'm very happy to be with you today along with Jerome with Clotilde and the rest of the team. I stand in front of you today to share our ambitious vision for the future, not just for 2028, but for the years ahead. We are at the turning point and the choices we make now will pave the way to tumor growth. So what are our main ambitions for the years to go? First of all, we want to be a leading bank in Europe. We are already one of the biggest players on the continent. We want to make the most of it, we want to leverage our presence in several countries. We want to act as a consolidator of the European banking market. And I guess you are all aware that we are highly attentive to what happens in the Italian markets.
If we were to be approached by Banco BPM for a combination, we would view this very favorably. But in no case, we would accept to sell [indiscernible] for cash. We are a long-standing player in Italy, and we are committed to continue supporting our 6 million Italian customers. Beyond the Italian market, we want to be not just a bank in Europe, but the bank for Europe. Secondly, we want to lead in new technologies, not just using it but mastering it to enhance security, improve efficiency, personalized services and create entirely new possibilities for our customers. We will innovate while staying true to ourselves by adding you manage to the digital excellence. The third and the last we aim at team the leader in transitions. We have always guided society through big changes, environmental, social, demographic shifts, bring challenges.
They also bring the opportunities. We are determined to lead the way. We will not leave anyone behind. Our universal banking model works for everyone from small households to huge companies, we will democratize solutions for all. As you can see, we are a conquering bank, one that broadly expands its horizon and see these new opportunities. This is not just about growth for growth's sake, but about creating value for our clients, our shareholders and our communities. These long-term ambitions drove us to establish three major targets on my side for 2028: First, expanding our client base to reach 60 million customers allowing our business line to equip them with more solutions; The second generates around 60% of our revenues out of France with a stronger footprint in Europe and beyond; And the third, achieving operational excellence with a cost income ratio below 55%, demonstrating both our efficiency and ability to deliver high profitability.
These highly ambitious targets reflects our commitment to build an agile performing and client-centric Credit Agricole to ensure a sustainable growth. We have every quality needed to succeed. To start we have the solid routes and the meaningful reset that puts clients and society first. This is not just talk. It is our DNA. our mutual and cooperative history as well as our very stable shareholder base allow us to contribute short-term profitability and investment for the long term. In today's volatile world, having such strategic long-term vision is a genuine competitive advantage. It also position us as the natural and best innovation and are the consolidator of our industry in Europe. Secondly, we benefit from a decentralized model it fosters efficiency, thanks to a precise management of both cost and performance at the most granular level. It also allows us to adapt quickly to new context.
Contrary to many competitors, we make decisions at the grassroots level exactly where our clients and their needs are. This proximity enhances our understanding of local markets and fosters innovation. That's also why our entities made more than EUR 19 billion of acquisition during the last 10 years. Identifying business opportunities and making synergies at all levels of our organization is a fundamental strength. Decentralization also creates a sense of ownership and responsibility among our employees, stimulating their engagement and creativity. This is all of the major strengths we have, highly committed employees. We are in the first position among French banks in terms of employee engagement. People are the backbone of everything we do, and we are proud to attract talents from all over the world.
Last but not least, the Credit Agricole Group universal banking model is highly powerful. Thanks to this model, we are solid and diversified with already 54 million clients and 8 business entities among the leaders in the European markets. Our group is highly resilient and realized on solid financial fundamentals as demonstrated by our leading position on CET1 in Europe. This enables us to absorb shocks and keep going. This model steadily delivers results. The growth of our revenues suppressing European banks over the last 10 years demonstrates our high capacity to generate growth over the years to come. For all these reasons, we are in position to consolidate to lead and to shape the future of banking.
As you may have understood, I hope, we will realize our ambitious goals for 2028 and set the foundations for the years to come by capitalizing on these strengths. We will also achieve it by implementing a clear and focused strategic plan built on two fundamental pillars. First pillar acceleration. We will expand on playing field, both geographically and the two new business comments we will tap into new markets. We will diversify our service offerings while leading the way of transitions. Second pillar, transformation we will move faster and better perform, how by optimizing our IT and processes by embracing digital innovation and by becoming more agile across our whole organization. This will make us more efficient, more adaptable, better able to meet changing customer needs and market domains. Together, these complementary pillars will propel us forward. They will help us to reach our ambitious commitments. That said, it's time now for me to give the floor to the team. They will provide you with more details on the implementation of the first pillar acceleration, and we will start with our retail banking activity in France where the objective is to gain market share. Please welcome Gerald Gregoire, Deputy General Manager of Crédit Agricole in charge of Customer Development and Innovation division; and Serge Magdeleine, CEO of LCL. Thank you.
Good morning, everyone. First, I would like to remind you that Credit Agricole has been the largest French retail bank for years. And obviously, we have the intention of expanding. To illustrate our leadership we have influenced 32 million French customers, and our group issued 1 out of 3 mortgages in France. As impressive as this number half, we know that we haven't treated maturity in our market. We know that we can expand. And we can grow because our value proposition continues to increase and renew. For example, as you know, in terms of renewable energy and accompanying our clients as a hedge. As we increase our pot points, particularly with digital, this gives us most opportunities to better serve our clients and attract new consumers.
As an example, we have almost 11 million clients who use the Crédit Agricole daily. And the LCL hub is used by 3.3 clients daily. During our strategic plan, we expect to add 8 million new clients. And in order to grow later, we have decided to better articulate the positioning of our 3 banks. Crédit Agricole S.A., LCL and [indiscernible]. First, the regional banks, which have a close link with the territories where we are present. Present for 1 out of 3 French person present for 1 out of 3 small businesses and corporations and obviously, for 8 of 10 farmers. We are a French universal bank responding to all the needs and serving everyone. And we have a specific ambition making our universal bank for all to the inverse bank for each. We wish also to continue cultivating the distinctive dimension of our value proposition, the broadest and deepest in the market, and we will continue to facilitate and develop digital touch points with our clients while maintaining access to Uman advice for important operation for our clients. In a few words, our customer promise is by your side all the time for what really matters for example, for support for all housing projects and retainment planning. So now I will hand it off to Serge, who is going to speak about all positioning.
Thank you, Gerald. Good morning, everyone. It's a real pleasure to be here today to share a new chapter of LCL story that fits with the brand's complementarity Gerald has just presented here. LCL's new story is built around a clear ambition to be the bank for all those who take initiatives and to move forward. At LCL, we believe banking today is not no longer defined by age, by income or by background. It is defined by attitude. It is defined by the will to act, to build, to create, to move ahead. Our mission is simple. To be the partner of everyone who undertakes something in life, in work, in business. And to deliver on that mission, we are reinventing the way we serve our clients with a new 3-tier relationship model designed around their expectations and the level of autonomy.
First, we are introducing a 100% digital self-care offer for independent tech-savvy clients who want a smooth, simple and fully online experience. They value autonomy, speed and control, and we will give them exactly that. Second, we are strengthening our premium offer directly in line with Crédit Agricole DNA with a dedicated generalist adviser who knows the client personally follow them over time and provides truly tailored advice. It's a human high-tech experience for clients who expect more from their bank. And third, we are creating a hybrid model bringing together the best of both worlds, a local team available in branch for daily banking needs and specialized experts on our remote platforms for more complex issues like lending or investments. This is banking that's flexible, efficient and seamlessly connected. With this triple offer, every client can choose and insist can choose the relationship that fix the life digital when they want autonomy, human when they need support.
This is how we make LCL more agile, more digital and more relational than ever before. It is how we become the bank for all those who move forward from students taking their first steps to entrepreneurs shaping the future. At LCL, we are building a bank that moves at the pace of those who act because when our clients move forward, so do we. And now before Bank, our digital bank, as you know, we recently decided to reunite before Bank. And now our acquisition customer is now in line with our provision with 200,000 new customers this year. And to further strengthen its complementary with our original banks and LCL. [ Beshar ] Bank is accelerating the development of its innovative savings and investment offerings leveraging more than 15 years of expertise. After adding presented the complementary positioning of our brands, now it's time to speak about the way in which we will work to significantly attract our 4 strategic segments.
First, the young clients. Second, affluent customers; third, agriculture segment, professional, small and medium businesses; and fourth mid-cap companies. First of all, in the use market, which is essential for renewing our customer base, we will launch a new and disruptive approach that meets the trends and habits of our youngest clients. Our value proposition will be 100% mobile, mobile community based and driven by proactive AI. We want to be the leading bank for young people. At the same time, LCL recently launched a dedicated app for miners to offer them a different experience while offering protection to their parents.
Let's turn to the second column on the slide. the afferent markets ranging from mass [indiscernible] people is correct to high net worth is growing fast in value and in diversity. The recent development of independent advisers network shows the need for new initiative offers. To support [indiscernible] customers' projects, Crédit Agricole Group will do forces to develop a globally coordinated expertise, providing access to the best solution for our customer needs. We will make exclusive investment solutions available, including fully digital advisory management and private assets. Our ambition on this segment is to reach plus 1 million gross customer capture. Regarding the professional SME market, we also aim to attract an additional 1 million clients. We are confident that this goal will be achieved if we address our clients' entire value chain going beyond financial services.
For example, through our different business lines like Collector for management services, call in Merchant Payment solution or our new offer, the Human Resources bank that coordinates the value proposition of our different [indiscernible], Work Life and Amundi in terms of employees offerings. The last strategic market where Crédit Agricole aim to strengthen its position in the mid-cap segments. In France, mid-cap companies, so-called LTE account for 1/3 of corporate revenues and by aged. The group has a strong foothold with over 30% penetration and nearly 22% market share in credit outstanding. The position needs to be strengthened in becoming the trusted banking partner of this mid cap. We have a clear ambition. We want to have 1 mid-cap out 3 choosing Credit Agricole Group as their trusted bank in France leveraging the following drivers: first, joining forces for a coordinated client approach between LCL, CACIB and Crédit Agricole banks I mean, creation of client teams, alignment of commercial strategies and establishment of a dedicated coordination and engagement unit within Crédit Agricole S.A.. then deploying our cash management expertise and strengthening our equity financing solutions nationwide through the creation of OCS corporate Adversary. Thank you for your attention.
Thank you, Gerald. Thank you, Serge, to present the new growth opportunities that we aim to create in Europe. Please welcome Hugues Brasseur CEO of Crédit Agricole Italy; and Stephane Priami, Deputy General Manager of Credit equalize in charge of International Banking and Sales division. Thank you.
Good morning, everyone. Let's begin with Italy. We still have a huge space for organic growth on our second domestic market. In the meantime, we can accelerate and improve the amount of synergies through all the products, factories in Italy. Our two key targets are focused on two main key figures. The first one is growth, growth of portfolio of clients, reaching a portfolio of EUR 6 million which means to be close to one Italian out of 9. Today, we are already more than 1 talent. The second one is to contribute at least for 20% of the global income of critics. To meet these targets, we want to strengthen as customer capture, focusing individuals through [indiscernible] on individuals with high potential through Clinical Italia, Amundi and clinical insurance. Finally and also on professional and corporate with [indiscernible] we are going to develop a specific digital platform for professionals, signs a steel space to become a market leader on this specific topic in Italy. To achieve this, we're going to capitalize on our digital platform or the in France bank.
Moreover, we are recently starting an ambitious plan of cross-selling on our portfolio of clients across all business lines to increase synergies. To achieve this, we're going to leverage on a few key drivers. The first one is clearly the better use of data that we are going to share across entities. Second one is based on a better efficiency of the distribution channels and the project offering. Today, Crédit Agricole brand is considered as one of the most recognized market. We are a leader in the different surveys, ranking #1 for client satisfaction and among the best for digital app. As a group, we want to reach a strong, attractive and long-term positioning. In the meantime, we remain attentive to external growth opportunities.
Thank you, Hugues. Good morning, everyone. I'm very happy to be here today to discuss about Credit Agricole's growth in Europe. To begin, let me remind you that Credit Agricole has a strong presence in Europe, still and yet generating 40% of its revenue, European revenue outside France and we manage 3 million clients in Europe. This Europoint has 2 origins. The first is our leading product factories like CACIB, Amundi, Cases, CFM, Cedric Personal Finance and mobility, but also all the producers of the group. We operate, for example, for Credit Agricole Personal Finance and mobility in 20 countries with banking license in every country and a large base of clients. We are also present as a universal bank in a major country in Europe, Italy but also Ukraine and Poland.
So our strategy for Europe is to leverage this strong European presence and to save all the opportunity of the market, the European market and the growth of the European market. We want to build this approach on our existing presence and to end with a new initiative. First, we want to continue to push all our business in Europe. And we want to create two new things. The first is to launch a platform, a digital platform for savings and deposits. This platform will be covered 8 countries, and we will want to start in Germany in Q2 '26. Our mission with this platform is to reach EUR 40 billion of savings and deposits. In the same ID, we wanted to expand our digital offer, blank for professional.
It's a platform for professional, working very well in Italy from 1 year now and to make this platform as an offer for all European countries. And after we want we will want to expand this platform, professional platform to agricultural sector for Serge for making a best servicing for farmers. Second initiative, we want to create Crédit Agricole [indiscernible] by aggregating all our existing presence and to enhance with a new project. For remainder, Crédit Agricole in Germany, it's 1 million customers now and notably through credit plus our loan company in Germany, and we manage EUR 11 billion of loans consumer finance and automotive loans, but also EUR 15 billion of savings and deposits. It's so a huge starting point and we want to enhance this position with the new platform I presented to you platform for saving deposit platform for professional platform for all agricultural farmers and also day-to-day operation launching day-to-day operation with our technological platform before Bank.
We want also to unify the customer base because it will be very important want to make a cross-sell and upsell. We plan a launch in Q3 '26, and we want to reach 2 million clients in Germany. Following this launch in Germany, we will pursue expansion with additional countries where the Crédit Agricole as an established presence. Our ambition for Crédit Agricole rice in Europe is very strong, but it's because it's built on solid foundations. First, digital expertise, digital and data, as you know, Credit Agricole Personal Finance and Mobility and before bank know very well all the technology for digital and data management. But we have also all the support we will have all the support of the group as our product factory in saving insurance and reality in all core businesses.
And just but it's very important. We have a presence in Europe, a very strong presence, as I showed to you. We have customers, we have clients. We are team, very committed. And we know very well in the market and the deep foundation of each market, notably in major country like Germany. So as a conclusion, let me say to you that all the credit area teams will be fully committed to accelerating our European expansion. Thank you. And now I leave the floor back to Hugues.
Thank you, Stephane. I'm going to talk once again of growth and [indiscernible] because we want also to develop new series of growth on repo mid caps by exporting [indiscernible] Our goal is to capture at least 200 additional strategic mid-cap clients out of France. We want to support the reindustrialization [indiscernible] regions and sectors. Two pillars. The first one, consist in leveraging the group's areas of excellence in 4 strategic serenity priorities. It means Agri-Food, defense, tech and energy. We already know that at least EUR 1,500 billion are going to be investing in the coming years. The second one is to focus, focus on regions with strong plate flow and to support the future reconstruction with crane. In fact, 2 specific triangles, France, Italy, Germany. And second one, Germany, Poland, Ukraine.
And this represents [indiscernible] mid-caps and 60% of [indiscernible] GDP. How are we going to be successful? We are going to implement a [indiscernible] approach by creating a repaint connection structure by defining strategic ambitions on the mid-cap market in each country where the group's investor bank is present by extending our setup to key countries without universal bank presence, starting with Germany and finally by developing synergy across all business line operating locally. Thank you for your attention.
Thank you, Hugues. Thank you, Stephane. The next presentation will deal with how we want to strengthen our presence in as well as extend our product range and footprint. To develop these points, please welcome Jean-Francois Bala, CEO of Crédit Agricole CIB. Thank you.
Ladies and gentlemen, good morning, everyone. Let me begin this section [indiscernible] the Crédit Agricole Group has been present in the APAC region for almost 150 years. Our ambition is to accelerate original launching. Asia is one of the fastest-growing wealth management markets, and we want to address this growing selling pools. First, with Amundi, leveraging on our new partnerships with asset owners and wealth managers but also expanding the existing joint ventures in India, in China and also in South Korea. Second, with industrials, which benefits from a strong brand recognition in the region by strengthening its capabilities and expanding its investment solution for ultra high net worth individuals, but also investment professionals this, especially in Southeast Asia.
For Casino, we also want to leverage our footprint in the region with all of our clients, be it large corporates, financial institutions or sponsors. We intend to grow on the back of our global leading controls in real asset sectors such as infrastructure, project financing, telecom, power and et cetera. In all those sectors, we intend to support our clients in the energy transition terminal market capabilities. are also at the forefront of our growth ambitions with the ability to raise liquidity for the group and also private market solutions to all our clients. We are also extending our offering to new geographies -- for example, [indiscernible] ambitions in the region are of twofolds. First, continuing the development of the follow-the-sun model with the management platform. Second, opening a commercial brand in Singapore to broaden our services to clients. Then to summarize, the ambition of the group in the APAC region for '28 are very clear.
Amundi targets EUR 150 billion in net inflows [indiscernible] dynamic expansion with a cat growth in excess of 5.5% and sales targets EUR 20 billion of assets under management. The second strategic priority I will present is the expansion of our playing field. We definitely want to continue expanding our product range and footprint. The private credit segment is growing fast. It increased by 50% in the last 5 years, mainly in the U.S., reaching $3 trillion globally, early '25. And it is expected to reach circa $5 trillion by '29. We are naturally sizing the potential of opportunities in this market. There is a strong client demand for private assets. here is how we want to benefit from this situation. First, Credit Agricole Assurance is accelerating its investments in private assets to enhance the yields offered to their policyholders.
Second, Amundi and [indiscernible] Wealth Management are positioning themselves as leading players in developing investment solutions for private and institutional clients, contributing to the democratization of private assets. In that respect, Amundi just announced this morning a strategic partnership with ICs, a European leader in private assets. The partnership includes a 10-year distribution agreement, giving them on these clients privileged access to is expertise and a wide range of strategies. Amundi and CJ will develop joint offerings decide to provide us to clients with access to private assets.
Finally, CACI, thanks to its leading franchise in real assets is originating real assets, matching investor appetite and also providing enhanced support to eFunds, bedfastory. We are also accelerating our development in payments, collection and cash management solution. That means, first, integrating technological shift in our commercial offers to meet market demand; second, developing nonfinancial payment services. I will give two examples. One, we call which is a strategic alliance between [indiscernible], with collector on electronic invoicing. Third, continuing operating our platform on cash management to deliver best-in-class products and services in France and in Europe, leveraging on blockchain technology when relevant. Then to summarize, our ambition for 28 in these areas are: first, doubling car payment or volumes versus market growth; second, increasing by 20% from sales and direct debit volumes. Thank you for your attention.
Thank you, Jean-Francois. Thank you very much. We now come to the final level of the first pillar acceleration, which is about transitions or types of transitions and to present it, please welcome Eric Campos, Chief Sustainability and Impactful Officer; and Nicolas Denis, CEO of Crédit Agricole Insurance. Please welcome.
Ladies and gentlemen, in 2019, Crédit Agricole made a major strategic choice to become a key market maker for supporting the world transitions. Today, I will present how ACT 28 amplifies this ambition by shifting from a sustainable economy to a regenerative economies with ambitious quantified targets. Our 2022-2025 plan is structured our action around three fundamental pillars, transition towards the low-carbon economy, social cohesion and inclusion, agricultural and agri-food transitions. This strategy has demonstrated that the financial institution can be a true driver of social transformation. And these results speak for themselves and position us ideally to accelerate further.
First, we strongly reaffirm our commitment to keep on continuing our commercial activities in line with the 2050 net 0 trajectories issued and publicly disclosed in 2023 and 2024. In 2025, we are taking a decisive step forward. We are willing to move towards an economy that regenerates rather than simply reducing negative impact. Our quantified commitments reflect this ambition around 3 strategic pillars: leadership in the ecological transition economy with a green to-brand ratio of 19 to 10 for every euro financing for fuels will finance 9 in the ecological transition by 2028. 240 billion in outstanding commitments dedicated to financing transition by end 28 and 2 strong initiatives for green businesses, launch of the climate and Meters, which is a network of internal expertise to develop innovative method and competition for climate and biodiversity. Launch of critical natural capitalize initiatives, which is a pioneering program to design nature-based solutions and ecosystem restoration.
Second, intensification of the inclusive economy, 600,000 homes retrofitted for energy efficiency by 2028, ensuring a just transition in all territories and developing financial product accessible to all. Third, support for territorial growth sector, supporting local innovation, strengthen local reindustrialization and support the agri transition, with an objective of EUR 1 billion in revenues for -- from sustainable finance. These figures illustrate our commitment to the real economy, an economy that creates sustainable employment, for example, it's retrofitted home generates direct activity in close geography, an economy that delivers tangible transformation EUR 24 billion financing that transition on the ground, an economy that generates shared value billion revenues proves that transition goes hand-in-hand with performance.
We believe we are not just traditional financial player. We are a low carbon energy strategist with a green tube ratio of 90 to 10 in 2028, a trusted partner for local and economic ecosystem and a catalyst that places people at the heart of every decision. Our conviction is clear. Finance can and must be a tool for economic, social and environmental development with a plan. Critical Conference is pioneering role in Europe. Our quantified targets demonstrate that regenerative finance is not only necessary but also create sustainable value for all our stakeholders. Thank you for your attention.
Thank you, Eric. Good morning, everybody. As Eric Campos explained to you, we aim to prepare the world for the next generation. Indeed, the world is changing. We are entering the demographic winter. Demographic aging is one of the greatest challenges of all times, reshaping economies, societies and the way we live. As a leader in savings and retirement across Europe and France, Credit Agricole carries a major responsibility to protect, empower and support both its clients and society in navigating this deep transformation.
Let me share you a few figures to illustrate this issue. First, globally, the number of people of 60 will double by compared to 2020. And those over 80 will triple. Second, in France, 1/3 of the population will be over 60 by 2030. Demographic aging accelerates wealth transfers, strength, public systems and creates new demands for quality of life. In face of this demographic challenge, Credit Agricole is committed to being a source of support and security for its clients, guided by 3 key pillars. Securing asset transmission first; second, relenting retirement; and third, fostering healthy aging. So first pillar, wealth transfer. In France, over EUR 3 trillion is expected to change hands in the next decade. To ensure this transfer happen securely. We are focusing on the following levers: strengthening family relationships within our bank networks, digitalizing all the client journey, developing tailored transmission solutions and, of course, engaging all our private banking advisers.
[indiscernible] is clearly to become the trusted partner for this intergenerational wealth transfer. So now let's speak about our second pillar, retirement savings. As you know, the demographic transition is putting strong pressure on portion systems, especially in France. This recent study conducted by Credit Agricole Assurance in partnership with highlights screen public concern with 73% of respondents in France, expressing deep concern and skepticism about the current system. In this context, our approach combines different principle by geography. Across Rail Europe, first, we will deliver even [indiscernible] solutions for all public and private pension schemes. This is key for Amundi strategy, and that's why Amundi has created a specific dedicated business line. In Italy, we will accelerate growth with new offers tailored for individuals and corporates with Frederico Italy, [indiscernible] Vita and Amundi.
In France, we will strengthen our leadership in individual retirement saving with the [indiscernible]. It will come with seamless physical approach, offering clients strong age either digital journeys through mobile first or be supported by their banking adviser. We will also accelerate through collective retirement offers. We developed a specific approach called [indiscernible], the human resource bank jointly with Credit Agricole Assurance and Amundi with specialized banking adviser in our bonds. We want to become a leader both in individual and group retirement planning in Europe. This ambition comes with two clear goals becomes the indisputed leader in group and individual retirement outstanding in France.
And specific for Amundi achieved more than EUR 75 billion in net inflows across Europe. We are living longer and the issue is also to be aiding well, which is the third pillar. We are committed to supporting seniors and caregivers at every stage of the life by designing health insurance solutions sell out to seniors and retires ensuring a smooth transition to individual coverage at retirement and expanding Credit Agricole [indiscernible] built on two strong axes, access to health care and Cage in all our territories in France, and create innovating leading solutions such as senior colliding with seamy and dedicated caregiver support through [indiscernible].
As you understand, our success relies on the perfect balance of proximity, expertise and innovation powered by the strength of our group and a strong synergy between the bonds of the group Credit Article Assurance and Amundi. It's a question of trust, of caring and of protecting. Thank you for your attention.
Thank you, Eric. Thank you, Nicolas. It is time now to move on our second pillar of the project, of the plan, transformation. For this, please welcome Gregory Ephelin, Deputy General Manager of Crédit Agricole S.A. in charge of Transformation, Human Resources And Transition division; and Olivier Biton, Director of technological transformation of Crédit Agricole. Please.
Good morning, everyone. We are now going to talk about transformation. Transformation of our industrial, technological and HR approaches in order to reach the ambitions and the targets for 2028, but also to prepare for the future.
I would like to emphasize three critical challenges that we define about transformation strategy. First, speed, speed and speed. In today's fast-evolving financial landscape, speed is not just an advantage, it's a necessity. We are committed to significantly accelerating our time to market, ensuring that our innovations and solutions reach our clients faster than ever before.
Second, efficiency. Efficiency is at the heart of our transformation. We are implementing robust value-driven management practices, focusing on optimizing our processes and resources. By leveraging data, technology and streamlined governance, we aim to maximize value creation and operational performance.
Speed, efficiency and finally, strategic autonomy and core in Europe. Our strong European routes are unique assets. They employ us to pursue strategic autonomy, ensuring that our decisions and innovations are aligned with the interest of our clients and communities across Europe. This autonomy is essential for safeguarding our independence, fostering resilience and supporting the long-term ambitions of the group in a rapidly changing geopolitical and regulatory context.
Good morning. So now to support speed and efficiency, we will launch group-wide industrial capabilities powered by advanced technology. As you might know, Credit Agricole stands as a major technology player. We dedicate more than EUR 5 billion per year to technology. our strength lies in our ability to empower each business line with significant autonomy, including, of course, IT resources. Yet as data and AI become strategic imperatives, we've decided to equip the group with new cross IT capabilities that will serve all our businesses.
We are launching two key initiatives. The first one will be a group-wide data marketplace. This platform will accelerate data sharing between all entities, breaking down silos and enabling every part of the group to leverage the full value of our collective data assets. The second one will be an AI factory. This initiative will provide AI assets and tools to all entities, allowing them to focus mainly on adopting AI in business processes.
However, our ambition goes way beyond transforming processes with AI. We are committed to bringing every member of our staff along in this journey. We will provide training for all our colleagues and equip them with AI systems tailored to their roles, ensuring everyone benefits from these new capabilities. This will reduce administrative tasks by 20%, allowing our teams to focus on delivering greater value to our customers.
But beyond serving the needs of our entities, these new technical capabilities that Olivier just presented are also the bedrock for new high-impact growth initiatives. We have decided to create a dedicated business line of focus on digital trust that covers solutions that guarantee stakeholder's availability, proper secure digital identity solutions and digitalize business processes in a [ trust positive manner ] like electronic signatures, for example. This new business line will serve the group's entities in an industrialized way and while relevant, extends the services to the broader market. Digital trust is a critical issue in Europe and Credit Agricole, as trusted third party has a unique role to play in setting the standard for security, privacy and reliability in digital interactions.
The second initiative concerns the group KYC platform. In response to rapidly evolving regulatory requirements and the growing importance of digital identity, we are developing a group-wide KYC platform. This platform will guarantee that we can deliver on our promise of digital trust to clients while also driving operational efficiency in compliance processes. These new cross-functional capabilities are just enablers for our entities. There are strategic assets that position Credit Agricole as a forefront of digital trust and regulatory excellence, supporting both our clients and our operational ambitions.
So now on this slide, you can see that the subtitle states that we want to be more agile, more efficient and responsive. That's quite a program. In fact, cost efficiency is a key driver of speed by ensuring that every year we invest delivers maximum value, we empower our project teams to make better decisions, simplify both our products and our technological ecosystem. We will also continue to consolidate our infrastructure to make sure that our technological backbone remains robust, scalable and cost efficient.
But to truly accelerate our time to market, we must also focus on the earlier stages of the project cycle when new solutions are being designed. We have already implemented large-scale edge AI transformation within our IT teams. What we will do now is extend these edge AI practices to the business teams that are the most impacted by these transformations. Our ambition here is clear. We want to cut our time to market in half. And to act faster to improve performance and accelerate our time to market, we also need to instill a lasting culture of simplification. In today's environment, all banking groups faced intense regulatory pressure and a growing complexity in their operating landscape. Without a continuous effort to simplify, the necessary mastery of risk can result in added complexity so that [indiscernible] our teams and ultimately reduces our performance. That's why the group general management here is fully committed to simplification embodied in our plus one, minus one principal, every new process, our requirement must be balanced by a corresponding simplification elsewhere.
To give you some examples. That means you create a new committee, you can sell under the committee. You want a new report, you need [indiscernible] another one. You create a new offer, you can sell another one [indiscernible] customer needs and so on. It's simple, but very demanding. The discipline ensures that we do not allow complexity to accumulate and that our teams remain agile and focused on value creation.
We are also questioning the way our support functions operate with a dual aim of improving performance across the entities and above all, enabling the 20,000 staff in this world to be even more effective in supporting those who are directly serving our clients. By making simplification of core management principle, we are guarding the benefits of our transformation efforts and [ hampering ] all our teams to deliver their best for the group and its clients.
We have talked so far about the industrial and efficient approach of transformation. I will now say a few words of our organization to support innovation. As you know, at Credit Agricole, innovation is embedded in every business line in a decentralized approach. However, certain topics require a different or more coordinated approach. That's why we continue to capitalize on two main types of structures. First, we will further develop our startup [indiscernible], La fabric, which has already given rise to breakthrough start-ups and destructive offerings that reinforce the group's development. And second, we'll amplify the development of services offered to third parties outside the group particularly in technology. Admittedly, technology is the most problematic example of this strategy, providing innovative solutions to institutional clients and strengthening our position as a technology provider in the financial sector.
When it comes to tokenized finance, we have decided to strengthen the strategic coordination of this topic, which involves many subsidiaries of Credit Agricole S.A. We have capitalized on the [indiscernible] approval obtained by CACEIS as well as the expertise of CACIB and Amundi to accelerate our development in this field. This coordinated approach will enable us to offer a comprehensive range of tokenized financial solutions, meeting the evolving needs of our clients while respecting our duty to advice.
Okay. So let me turn now to another critical dimension of our transformation, how we will strengthen risk management while driving greater efficiency. On the left of the slide, we mean that by harnessing advanced data analytics and artificial intelligence, we are enhancing our risk controls. And at the same time, we want to reduce the operational burden on our teams. This enables us to achieve a higher level of risk mastery with better efficiency. When it comes to IT risk in the middle of the slide, our commitment to investments remains unwavering. Resilience must be continuously reinforced in an environment where the risks are constantly evolving and accelerating. For example, cyber threats are increasingly leveraging new technologies like Gen AI to attack. And of course, we are equally determined to use these innovations to defend.
Another key priority mentioned here is ensuring that our standard and controls are constantly applied to our key suppliers. This is [indiscernible] to guarantee that and our end-to-end security. On the right of the slide, as Gregory highlighted in his introduction, reinforcing our policy in strategic autonomy will further strengthen our resilience in this uncertain environment. But at the same time, we want to emphasize that it presents a tremendous opportunity for Credit Agricole to contribute to the development of the European technology ecosystem both through our technological choices as a customer and through our investment capacities.
To conclude this part related to our second pillar, transformation. It's essential to reaffirm that people are at the core of our model and our transformations. At a time when everything is accelerating and some predict the humanization of society, we are making the opposite choice. Our global talent pool is exceptional, and we are convinced that our future success depends on our ability to support and empower our people. First will be at the heart of this ambition. We'll carry on our empowerment approach into simplification initiatives and sustainable development. Also, we have decided to focus on developing our [ staff's keeps ] while mapping target skills and corresponding training strategies, for example, to lead our digital transformation and also to support our international business growth ambition.
As you know, clerical future is our strength. Our collective and team spirit, our strong universal values and the way we all focus on servicing our clients while embarking societal priorities either the [indiscernible] of our project. We shall nurture our collective spirit and enhanced sharing on a global basis. We have identified the opportunity to share our flagship location, a specific place where our staff will meet, share, collaborate with trust and enthusiasm demonstrating our position across different expertise and geographies. By putting people first, we are ensuring that our acceleration and transformation are both sustainable and meaningful creating value for our clients, our employees and the group at the world. Thank you all for your attention.
Thank you, Gregory. Thank you, Olivier. Now it's time to assess the figures to translate these ambitions and this action and welcome Clotilde L'Angevin, the CFO, the Deputy General Manager in charge of Finance and Steering. Come on.
Hello, everybody. I'm very happy to be here with you. So to reach the strong development ambitions that have been outlined here, we're going to build upon the strengths of the group. And besides our diversified and our universal development model, we can also rely on a strong capital and liquidity position for the group Credit Agricole. With our CET1 ratio at the level of the group at 17.6%, we are the most capitalized of European J fibs and we have a margin of 770 basis points above the SREP requirements. We are going to commit to stay above 17% throughout the plan. And this is made possible by the group's ability to retain 75% of its earnings. And we're also confident on our ability to maintain our CET1 ratio above 17% beyond 2028 thanks to our capacity to generate capital, including the CRR3 regulatory impact, I'm thinking about the output for. TLAC ratio will be around 27% excluding eligible senior debt. And this strong group capital position is going to allow CASA to operate with a lower level of capital, as always, particularly thanks to the solidarity mechanism between the [indiscernible] network members and also to our demonstrated capital circulation capacity.
The liquidity position of the group is also very solid. We have stable, granular and diversified customer deposits. We have high liquidity reserves. And we have LCR and NSFR ratios that are very comfortably above the requirements. We're going to continue to manage them well in excess of these requirements within a range of 110% to 130% for LCR, which is an optimized manner. Why? Because we can rely on about 130 billion additional non-HQLA reserves that can feed quickly into our LCR ratio. And a range of 110% to 120% for NSFR.
So we've built a strong position, thanks to our demonstrated capacity to generate strong revenue growth. The CAGR for Credit Agricole S.A. revenue over the past 6 years was 5.7%. And it was driven mainly 70% by organic growth thanks to customer acquisition and equipment, but also by external growth operations, which amounted over 6 years to a total of about EUR 10 billion. And where we developed -- we delivered an ROI above 10% within 3 years, and these operations contributed to operational efficiency and to revenue growth.
Now this revenue growth has fed into the growth of net income over the past 6 years with a CAGR of 7.3% to reach the starting point of our plan, which is EUR 6.9 billion in 2024 pro forma. And the profitability targets we display here continue to strongly increase. We have an ambitious net income group share target of at least EUR 8.5 billion at the end of our plan. This represents a cumulative growth of close to 25% compared to the 2024 baseline position. As it has been the case for many years, this growth in net income will come from a virtuous combination of dynamic revenue growth, strict monitoring of expenses and prudent risk management. Now revenues are going to grow by more than 3.5% per year over the plan in an uncertain environment and under the hypothesis of moderate economic growth in Europe. As always, when we define our medium-term targets, I'm talking clear about organic growth costs.
We have a cost-to-income ratio ceiling for 2028 of 55% and we will reach this by monitoring the jobs, which should be positive over the plan in each division. And of course, we remain cautious on cost of risk. And we maintain the previous assumption at 40 basis points for CASA which is, in fact, prudent in the light of the loan loss reserves that we have accumulated in recent years, which represent an absorption capacity of 1.6 years of cost of risk for CASA. And of course, since the equity-accounted entities now include Victory Capital, part of [indiscernible] and mobility activities and starting in the fourth quarter of this year, our 20% share in Banco BPM we guide for a 1.5x increase in their contribution by 2028.
Now all of the business lines are going to contribute to the growth of revenues, which will reach more than EUR 30 billion by the end of the plan. And so I'm going to provide you with the key growth drivers in each business line. So in asset gathering, all of the businesses in this division will contribute to roll out a comprehensive range of savings and retirement solutions for our customers and will support becoming into general transmission of wealth in Europe that [ Nikolai ] was talking about. Amundi is going to accelerate in ETFs in Asia, through JVs and direct distribution, in individual retirement and with third-party distributors. Amundi will also benefit from the continued development of technology revenues and of course, as Jean-Francois was saying, Amundi will develop in private assets with the ICG partnership that was just announced.
Credit Agricole S.A. plans to strengthen multi-equipment in France and to grow outside of France, in P&C and Personal Insurance and through European partnerships, in particular, on mobility and with Banco BPM. And the savings and retirement outstandings, of course, will grow strongly. And those Shares will strengthen its offering in particular in corporate advisory following the integration of the group Petercam and will accelerate in Northern Europe and in Asia, and it's also going to continue to develop of ultra-high net worth individuals.
Moving to the large customers division, CACIB will reinforce its leading positions in real asset financing and projects in energy transition and also in strategic autonomy and we'll further develop cash management and equity derivative solutions. It's going to reinforce its relationship with existing customers and strengthen its presence in Europe outside of France and finally, accelerate in the United States and in Asia. And CACEIS support customers in their transition to ETFs to real assets and to digital assets and will accelerate with pension funds in Europe. And CACEIS will also strengthen its position in Asia, leveraging on the integration of ISV with the follow-the-sun setup.
In specialized financial services, CAPFM will continue to restore its margins in Personal Finance, and we'll develop new offerings linked to home renovation, health and services. And in mobility, it will further develop Credit Agricole Auto bank with diversified partnerships will accelerate the development of leases and ramp up on GAC leasing, but we'll also develop services and insurance. And Credit Agricole leasing and factoring will accelerate on factoring in Europe, and we'll expand on energy and circular economy solutions.
And finally, in Retail Banking, LCL and Credit Agricole Italia will have slightly different growth stories. LCL is going to benefit from the increased its net interest income while Canadian [indiscernible] revenues should increase more moderately over the period with an expected drop in NII in 2026, but followed by a recovery in 2027 and '28. Credit Agricole Italia is going to capture new customers, 650,000 and will accelerate in the high added-value specialized segments that we were talking about, such as corporate and private banking segments all the while adapting its network to develop fees and to equip customers. And NCN, [indiscernible] will transform its relationship model to capture customers 1.5 million, including 360,000 entrepreneurs and will develop solutions for customer segments requiring strong expertise.
So revenues, as you can see, are going to remain balanced among the business lines and customers. However, as a consequence of our intention to develop internationally. The share of Europe, excluding France, in our revenues will increase from 42% to 45%. The share of Asia will increase by 1 percentage point and so all in all, our revenues generated outside of France will be close to 60% in 2028. So I talked about revenues.
Moving to operational efficiency, our cost management policy remains unchanged. It's based upon the strength of our decentralized model. Each business line aims to remain best-in-class in its market with a strict monitoring of its cost-to-income ratio. So some examples of business initiatives, an optimization plan in Amundi productivity gains in the CIB, thanks to the acceleration of AI, thanks to the rationalization of or the optimization of the organization. Operational gains for CACEIS, for example, thanks to the differentiating follow-the-sun model into the enhanced use of AI and data. And both [indiscernible] and Credit Agricole Italia will roll out an ambitious transformation plan that will lead to IT and operational efficiency. So if we combine these levers, the synergies from the ongoing integration of the group in [indiscernible] and the joint initiatives Gregoy was talking about the QAC platform. We should have reduced our cost base by 5% at the end of the plan, which leaves room for additional investments to support our developments. And our targets in 2028 is for the cost-to-income ratio to be below 55%. So we're going to support our growth ambitions by investing, but also by allocating capital to our growing businesses. The allocation of RWA over the plan is going to remain balanced between the businesses with an increase, in particular, in the most accretive businesses of asset gathering and large customers. So this is going to fuel the business lines profitable growth. And so based upon a normalized level of equity at 11% of RWA, all of our businesses will have double-digit in 2028. So we're going to focus on profitability. And this focus also goes for M&A operations because all of the figures that I presented previously, are based upon organic growth. Of course, we can also seize external growth opportunities, as Olivier was referring to in the beginning, if they comply with strict financial criteria, i.e., a return on investment of at least 10% within 3 years. Accretive operations in terms of ROTE and, of course, demonstrated integration capacity. And synergy potential in compliance with our risk and compliance criteria. All of this will create value for our stakeholders and our shareholders, which Jerome, who I do not need to introduce will now describe.
Thank you, Clotilde, and good morning, all. It's a pleasure for me to be, for the fourth time in a row, here to present a medium-term plan, and I will gives you a breaking news, it's probably going to be the last time I'm going to walk you a little bit through this last slide, which is presenting the building blocks of the value creation and presenting all the reasons why we claim that we have a lot of functionality embedded in this medium-term plan considering the results that we are going to accumulate.
So let me start with the starting point, which is indeed the level of CET1 that we have end of 2024, 11.7%. It's been increased beginning of this year, it's for once a positive contribution from the regulation by 50 bps and then lastly, based on what all the team has presented and based on the figures that Clotilde has described a little bit more in detail. We are going to create an additional 720 bps of capital over the course of the medium-term plan. So that's the starting point.
Then second point, distribution, of course, and shareholder value that we intend to create. We are going to stick to our policy, which is in place in the last, at least, 10 years, which is to distribute, in cash, 50% of our earnings. And I remind you that even when banks were precluded from paying dividends, we've managed to remain shareholder friendly and to pay the dividend. So in this 50% over a long period of time is quite attractive actually. So this will represent around 390 bps of capital distributed which is roughly 1/3 of the market cap of Credit Agricole S.A as of today. It includes, of course, the AT1 coupons that we'll have to pay also during this period of time. The innovation that we are going to introduce regarding the dividend is the fact that starting in 2026, we are going to pay an interim dividend. It's becoming a seemingly market practice and so we are going to apply this market practice.
Third point, regulatory impacts are slowing down. So I told you that CRR was creating 50 bps of capital beginning of '25. It was after a lot of capital consumption in the previous years and it's before another 40 bps estimation that we've made of capital consumption for the coming years, including 10 bps for the famous FRTB that is regularly postponed. So we never know.
Then, of course, we want to fuel our growth, and we will fuel the organic growth of our business lines. This is going to represent more or less 250 bps of capital over the coming years. Part of this 250 bps are linked to M&A transactions that have already been concluded and are integrated in our trajectory in 2025, the biggest one being the acquisition of the remaining 30% of the capital of CACEIS that we bought from Santander back 6 months ago. But you have also bits and pieces that you know, which are included in the 250 bps for a total of 70 bps. And for the remaining part of those 250 bps after the 70 bps is representing more or less the EUR 70 billion RWA that were presented previously with an associated profitability that is going to be permanently and for all business lines, double-digit return on normalized equity.
We will, of course, continue to focus on optimizing our RWAs using all the possibilities that the market is offering, including, of course, the [ SRTs ]. It's a tool that we are already using, but probably much less than some of our competitors. And we have embedded in this plan the assumption that we are going to increase our efforts of using especially for CACIB and for CAPFM but we are also going to monitor the evolution of our trajectory, and we are ready to do more than what is embedded in the plan, if needed, if we have a decent price of release, of course, which is going to be a key metric that we are going to follow. And if we have a good use of the capital that we can free by increasing the level of authorities. So this is definitely an area on which we have flexibility and the capacity to do more than what is in the plan nowadays.
Last -- not last, fifth point, of course, and this has been said by Clotilde, I reiterated, we confirm that our target in terms of CET1 ratio for CASA is and will remain 11% and it's perfectly coherent with the fact that we are part of a bigger group, which is a systemic institution. It's not the case for Credit Agricole S.A. stand-alone and this bigger group has a very high solvency above 17%. It's our commitment to keep it above this level.
So this is giving up a significant level of strategic flexibility. If you add up all the numbers, you will end up with the fact that we have probably around 150 bps of capital available. This would represent around EUR 6 billion to EUR 7 billion that we may use over the course of the plan for a value-creating external growth operations. We've talked a little bit before about the track record that we have regarding these operations. And of course, the commitments that we take also today is that we are going to stick to the same criteria in order to continue to create value.
I want to insist on a very important point, these possible operations that we have not identified as of now, of course, are not included in our trajectory, not in the revenue growth, not in the level of profitability. So this is leading to a situation where we have this flexibility. And if we use it, we are going to generate additional revenues and additional profitability. And of course, I hear the question that you have in mind, what if we don't use it, but the answer is quite clear, actually, if we don't use it, we have no vocation to accumulate capital at CASA. The entities of the group in which capital is piling up all the regional banks, and this is part of our global equity story. But at CASA, we do not intend to accumulate capital. I have no doubt that we will find relevant opportunity of growth in the course of the next 3 years. But if not, we have no ambition to accumulate capital at CASA.
Lastly, I will conclude with this figure that I reiterate. We have a very prudent target in terms of return on tangible equity, 14%. And again, this target does not include the potential benefits of M&A transactions does not include this benefit in terms of possible additional results and also does not include the fact that if we do these transactions, we are going to operate with a level of capital that would be closer to 11%. So here are the main elements I wanted to present to you today, and we will be ready with the team for your questions after the conclusion of Olivier, I guess.
Thank you, Clotilde. Thank you, Jerome. It was very clear. The presentation is now coming to its end. To conclude, I would like to remind you three main '28 objectives I initially set: One, expanding our client base to reach 60 million customers; the second, generating around 60% of our revenues out of France; and the third, achieving operational excellence with a cost/income ratio below 55% to reach these targets and deliver a robust financial performance with net income above EUR 8.5 billion and the return on tangible equity prudent, Jerome above 14%. We have built an ambitious strategic plan.
Let's be clear, none of this will be accomplished by Credit Agricole S.A. alone. We will succeed as a group in cohesion with regional banks, especially for our transformation. Please see as one team. Our strength is collective. Credit Agricole S.A. entities [ are possible ] business partners for the regional banks. We help them to offer the best products to clients while Credit Agricole S.A. benefits from the strong distribution network and the highly stable capital and financial fundamentals. Cohesion and collective action will enable us to reach the targets of our new plan.
We have now reached the end of our presentation. Let's begin the Q&A session, and we'll start with questions from the auditorium.
2. Question Answer
Delphine Lee from JPMorgan. Could I maybe start with your ambitions in Europe, more generally speaking, I mean, and your M&A interest. In the past, you -- if you look at all partnerships and acquisitions you've done is to strengthen your product factories. You've been opportunistic in Italy as well. Just wondering now with the increased focus on Europe, is your M&A interest going to be a lot more on opportunities in Germany or Banco BPM? Just -- if you could elaborate a little bit on that.
And my second question is on your revenue growth of more than 3.5%. A large part -- I mean, actually, the highest growth seems to be in large customers, but also SFS. So just wondering, like, is that due mostly because of more capital allocation the volume growth, margin expansion, if you just can maybe elaborate slightly more on that because that's where the difference is, I would say, versus market expectation.
Thank you. Maybe for your first question, the strategic plan is focused on organic growth. And if we have opportunities to do an external growth Obviously, we have the capacity, as mentioned, Jerome to have M&A operation and so on. It's not a question, but we want to focus our plan on organic growth. it's clear for us. And we fear for our opportunities in Italy, obviously, in Germany, obviously, in Poland also we want to increase our footprint in Europe. It's clear because we want to become a leader in Europe. But this project plan is focused on organic growth.
For the second question, can I give the floor to Clotilde or Jerome.
Yes. Thank you. First, a few elements. Indeed, we have strong growth in the large customers division, which is, in particular, due to CACIB, who has strong growth dynamics planned in this medium-term plan above 4%, whereas CACEIS is more on a plateau regarding net interest income. Now if we look at SFS, Specialized Financial Services, we have a little bit of everything that you were talking about. So we have a volume growth we have a recovery in margins because we have our revenue on the outstanding that is increasing. We also have a strong increase, EUR 1 billion of revenues in insurance and services, which is also fees and commissions income is going to increase also. And of course, we also have the development in Kinetic or leasing manufacturing, in particular, for renewable energy and on factoring. So all of these are going to drive into the growth the allocation of RWA to the business remains very close to that we had previously. However, the equity accounted entities are going to increase in this business.
Anke Reingen from RBC. On capital, please, and [indiscernible], just to confirm. So basically, the 14% out at the lower end would correspond with you not having invested the EUR 5 billion to EUR 6 billion. You're more running with the 12% core Tier 1 as that runs down the [indiscernible] pushup?
Exactly. I don't know if the mic -- yes, it works. So exactly, we've simply computed the figures at the end of the plan in a situation where no M&A transaction would have been conducted and so we take the capital as it is, the net profit as it is, and we end up with this 14%. So it means, as I said, if we have additional results and if we have less capital because we've done positive value creative operations, we would improve the return.
Okay. And then on the RWA goal, it seems the EUR 17 billion seems quite high relative to your revenue growth. Does it already post SRTs or is that few SRTs? And maybe on the 40 basis points of regulation, is there any methodology changes? What are you seeing [indiscernible] safety platform?
So the EUR 70 billion does include SRTs as Jerome was saying. An increase in SRTs, we are, as you know, very low compared to the average of other European players in terms of the share of our loans that are securitized, it's 3.5%. So we're going to increase the SRTs in particular, for CIB and for CAPFM. But we also have leeway and optionality to go further adjusting, as Jerome was saying, adjusting to the decisions we can take in particular, in terms of M&A.
Now the EUR 70 billion growth that you're talking about you're saying that it seems important compared to the revenue growth. But I was -- as I was saying, when we have our target of net income, this target is driven by revenue growth, operational efficiency, et cetera, but also the times 1.5 in net in equity-accounted entities. So in fact, the indicator revenue divided by RWA is not a very relevant indicator in the medium term where we have an increase in equity accounted entities.
Sharath from Deutsche Bank. I have two questions. Firstly, on your retail strategy, sorry, digital strategy at BforBank, do you think there is merit in pursuing this aggressively given the already competing peers or the penetration of peers? What makes you confident of being successful in the youth segment?
The second question is on the strategic partnership that Amundi and Intermediate Capital Group have announced. Can you elaborate on the partnership? And why did you see the need to take a minority stake? Can we -- I mean, is there ambition to go beyond 9.9% stake?
Okay. Thank you for a question. I give the floor to Stephane for BforBank and for the young people to share all informally.
So thank you for your questions. So BforBank now -- what is the situation of BforBank, We have 400,000 clients in BforBank and each month, it's 15,000 more. So it's starting off a good result. Now we want to accelerate in 2 or 3 different ways. First way, we want to make savings on loans more attractive for the clients of BforBank because savings and deposit is what customers want now so it's very interesting and the profitability of this part of offer is good. So BforBank will be a digital bank with all banking offers, but we want to acquire customers with [ saving on loan ].
Second element of acceleration. We want to reduce the cost to serve. So we will make a lot of efforts to have the same cost to serve as our competitors and to serve in the international way. We started 3 months ago to launch BforBank in Germany. So we have to see as a result of this and we want to take all the digital and technological asset of BforBank to build our bank in Europe, notably at first Credit Agricole Deutschland for everyday banking for the management of account of the customer will be on the asset of BforBank. So we are always very optimistic on BforBank, and we want to get the balance breakeven in 2029. So we will follow this.
Okay. It's clear. We want really to reach the breakeven in 2029, 2028 maybe in dividing by the cost income and the cost to serve, and it's very, very important, and we are focused on that to improve the profitability of BforBank.
Gerald, for the young people, for the [indiscernible] Innovation?
First, I would like to remember that we are a leader in France on the U.S. market, U.S. segment. So to further strengthen our position, we also know that we have to adapt our organization to the habits and trend of this kind of client. First of all, we are accelerating our digitalization. That's clear that the way to succeed in this segment. We also are working with all the business line to review our offers because we know that we have also to work on the access offer with all the business line to propose a competitive offer to younger clients. And finally, we also knew that we have to adapt our kind of communication to this kind of clients. That's why for now -- for one year, you use -- I don't know if you know, but Credit Agricole is certainly the most present bank in the social networks in France. And we want to intensify our presence in the social networks and you also use now new way of communication. So for this reason, we are confident to aim our objective to remain the French leader in the segment.
Thank you. And Nicolas Calcoen, Deputy CEO of Amundi for your third question.
Thank you for your questions. So this is a very important partnership with ICG is designed to help us to have access to very high-quality products and expertise in private assets to complement our own internal offers. I'm thinking in particular of private debt or secondaries, but there are many, many good quality expertise that they have so that we can very rapidly benefit from the democratization of private assets that was mentioned by Jean-Francois earlier. So the stake we are taking is here to cement this partnership and to ensure a good alignment of interest and we don't have any intention to go beyond the 9% stake that we announced.
Tarik El Mejjad from Bank of America. Just two questions from my side. First one, the universal banking model [ came of aspects ] from the plan, reminds me for many, many years plans to go where Universal Banking was the new thing. So is this -- because of all this [ SIU ] and Capital Markets Union that you feel this is the time to position across Europe and to capture that and position a bit early? As I was surprised, there's no mention of [ SIU ] in the whole plan. I know it's 2028 plan, and this is probably coming after. But I just want to understand your turn here into more Europe. And the approach you took in Germany is more retail kind of very competitive part, I would say, of the German business. So what's your edge there?
And then second question is on Italy. So I think you managed very well given the situation, and you've done what you can do from your side, just not all in your hands. But I mean, I guess, without going to scenarios, but let's say there's another M&A that's happened that doesn't involve you. How do you think you can protect your interest in terms of Agos, the non-life insurance and the different distributions you have in place?
Okay. Thank you for your question. First of all, for Germany and obviously, for the Universal Bank, we are the champion of the model of universal bank in Europe and we want to continue and to improve our footprint in Europe and for Germany, it is the heart of the economy in Europe. That's why we want to invest, not only in retail banking, but generally, we have a strong objectives in Germany.
For example, for the mid corporate, for the large corporate also for CACIB, the mid-corporate, we want to enter in this new and the cap in the new market for us in Germany. And obviously, in the retail bank because we have already 1 million clients in Germany, and we want to make it more profitable in order to offer new products and the capacity of the group and it's our universal banking.
Further savings and capital -- on maybe you can add something Jerome and I answered...
No, of course this savings and investment union is a topic that we follow a lot. Certainly would be an accelerator for different businesses for us, be it Amundi, be it also CACIB. Of course, it doesn't have a lot to do with the initiative that was presented regarding Germany because clearly, what we're talking about in Germany is much more collecting savings from individuals. And so it's not so much related to the savings and investment union.
Okay. For Italy, as I said before in my speech, we are obviously very attentive in what happens in the future. We are waiting for a proposal from BPM because I think a merger between and creditor coal Italy make a lot of sense, make a lot of synergies, but this project is done on track. We are waiting for a proposal. In any case, or branch or a division in Italy is in is going to solve is -- we want to keep. That's why we have defined a project of organic growth because anyway, we are waiting for that. Maybe one day, it will happen. But today, it's not on track, and we want to organize to define our organic growth.
Jeremy Sigee from BNP Paribas. Just continuing that discussion talked about Germany, but I wanted to broaden it a bit to the European savings offering and also the European digital professional proposition. Two questions on those. Could you talk about the rhythm of launches in different markets that you have in mind? And then linked to that, what's your -- what do you lead with as you launch those services? Are you leading on pricing? Do you think you've got better technology, different packages of services? How do you take market share in those quite competitive markets?
Yes. It's a mix of or these items of the elements. We have to be obviously very efficient in terms of price. But also with our digital expertise, we have built with before on -- an IT platform, an European IT platform capable of opening, for example, an account in every countries in Europe and a very scalable IT platform with the capacity to handle even in different countries. That's why we have to launch that in Germany.
And obviously, with our digital expertise, with our price, the capacity of every business line to offer the best of the products in Germany. We are very confident to succeed. Wait and see. And for the pace, we are ready to launch, but I can give the floor to Stefan our platform in 2026 for the savings. And the IT platform of BforBank will be ready at the end of '26. And obviously, we are waiting for that. But maybe we can add some comments.
Perhaps 2 comments on your question. Thank you for your questions. First, our customer target in Germany will be a more affluent customer. because if we see what we have done with I would agree speaking in Germany, we have now 400,000 clients and saving and deposit. It represents EUR 15 billion. And it's affluent customers, [ 30,000 ] each. So our customer vision is to give confidence to the customer because we are Credit Agricole and we want to take these clients and make upsell, cross-sell with other product financial offer with Amundi or with other produce factories, but also other product as mobility services, et cetera, et cetera. We have to make a large base of customers, of clients and unify because we have this customer in a different part in our company in Germany.
But if we made this, it will be -- if you will make this, it will be very rich for us. And we will extend with a platform, digital platform First is saving and deposit, more industrial than the one we have now. We will add BforBank tools because for the everyday banking, it's very good tools. And also, we want to launch a digital platform for professional and next for agricultural clients. We will make this in 8 countries, the platform, the digital platform, saving professional agricultural in 8 countries until the end of the plan.
And we consolidate -- we will consolidate in some countries, first, Germany, -- but certainly, after in 2 or 3 other countries where Credit Agricole has a strong presence. So it's a double approach launch of a platform, a digital platform for saving for deposits for professional, for agricultural. And in some countries, we aggregate our model to Universal Bank. But it's a new way, it's a modern way because as you see acquisition of a large universal bank in Europe, it's not so easy. And the partnership will have limit. So we will take care of all opportunities, but we want to make organic growth with our starting point, and we have, as I have shown to you before we have a large presence in Europe.
Okay. Thank you. Jacques Gaulard of Cheuvreux. I have 1 question really, which is linked to that. Your -- it's the first time in the 4 plants, we have that many developments on the regions and the countries. It's very interesting because you have indeed a very decentralized model. So how do we reconcile that? Because a lot of people are going to have to work together, which do not necessarily work together, the LCL CIB, in particular, is quite interesting. So maybe a little bit of telling us how you're going to effectively make that operate. And then -- how much of that 3.5% combined revenue do you think it can actually attribute to that? Is it like 0.2%, 0.3%, just to have a little bit of an idea.
Yes. It's -- the second pillar of transformation is the of the goal is to work together better than before because we have a strong business line, very efficient, very decentralized, but we have to progress in terms of capacity to work together. I take an example from the mid-cap, for example.
We can add the know-how of CACIB in terms of defense, agri business or technology or energy, obviously. And we want to take this know-how and to develop that with LCL because LCL has a big strong trip, big narrow also for the mid-cap market. And together, we can build something in the European area. But we could take many examples of that. And that's one of the goal of the team, of the executive committee, it's my job, obviously, to work together and to impulse something new in the way to work collectively.
Second question is for...
For the revenue growth. So we have a contribution of all of the businesses of revenue to this revenue growth of 3.5%. More of it will come from outside of France. Within France, we're about around 2% of growth of revenues in France. But we have not -- we don't provide any decomposition of the contribution of the, for example, German or mid-cap initiatives because, in fact, all of these initiatives are going to feed into the growth of the different businesses. for the mid cast, we have LCL, we have CACIB, but we also have mobility solutions, leasing solutions for all of the solutions that Stefan was talking about, it fits into Creditplus, but also to leasing and factoring. So it's really a collective effort. And so that's why the contribution of all of these businesses will be strong to this effort to this international effort.
Matt Clark at Mediobanca. So some more questions on BforBank and these initiatives. Firstly, historically, you've tended to use legal entities for your product factories. So am I right to think that the BforBank initiative will be in the BforBank legal entity as it is and you'll operate branches in each of the markets that you're expanding to, if that makes sense, firstly, as a question or if not, how from a legal entity perspective, are you going to be operating?
And then secondly, you've talked a lot about savings and investments, I guess, deposit gathering but not so much about the lending side of it. So for BforBank and to some extent, for the savings and investment platform, is there an intention to be lending on the other side of the balance sheet here and what products and to keep pace or not? What are you going to do with all these deposits you're gathering?
You can hide some comments. You can start Gerald.
The first point, what Stefan said was that we intended to use the IT platform of BforBank in different countries because this platform is going to be very soon now completely up to date and is going to be able to operate with a multi-band setup. So it's not certain that we need to use the legal entity before bank but we will need definitely to use the IT platform. And we have some legal entities already present in Germany, for example. So it's not a necessity for us to add up another legal entity in Germany. So this decision is not made yet, but definitely what is important for the project is to have access to the IT platform.
Then when it comes to the business model that we see for BforBank, it's much more going to be targeting savings of the customers. So lending is not something that we want to avoid. But definitely, what is important for us is to collect savings, and this is where we think we can make a difference.
Just I can add 1 comment on your question. We want to use Germany, the credit franchise. They have already 20 branches in all the main city in Germany. They have 1 million customers in saving and in consumer loans. And we want to increase our footprint on their clients to propose all the products we are capable of offering. That's a model. And as you say, legal entities, we don't know at this point if it's with credits with the SFS subsidiary or we have to create something. We don't know, but we have banking license and so on, and we are capable of doing that.
Maybe on the growth of outstanding loans, it's going to be a little bit different according to the different businesses. For example, if I take the example of on French retail, we have the outstandings that are going to grow very close to that of the economic in France. A little bit more in Connecticut, Italia, and we're going to have a stronger growth in outstandings, for example, for SFS.
But it's true that for the savings and investment union, we have the branch of the savings, the lag of the savings, and we also have the leg of the outstandings. And that's where CACIB also in the target that we have to increase revenues strongly with a balanced mix between financing activities and market activities. These financing activities with the strength of Cesium in real asset financing infrastructure shipping. All of this is the loan leg of the savings in Investment Union and Casibrily wants to be a strong player in developing this in particular autonomy, strategic autonomy of Europe.
Ian Libya -- Fidelity Funds. My question is on private credit and the decision to expand there. I'm sure you've heard in the U.S., a lot of issues with bankruptcies and frauds. Are you not seeing that in Europe? And will the expansion put pressure on the 40 basis point cost of risk target?
No, we don't think that we are going to take this type of risks. Actually, what we are seeing is some individual topics in the U.S., and we are fully aware of what has been announced in the last several weeks regarding some difficulties with names. But definitely, first, our role is much more going to be at the initiative at the origin of origination of private credit much more than directly investing ourselves. And then when it comes to what we are going to propose to our clients with -- amongst other examples, the agreement with the ICB this is precisely the reason why we wanted to engage with the most important and the most respected player in this space in Europe because we think that like in every business, it's important to play with the most important player.
Flora Benhakoun from Barclays. I'd like to ask you a question on the revenue growth target because in the past, you have been able to grow at 5% or more in the last few years. And here in this plan, you're basically telling us they're going to grow in line with the nominal GDP, if I look at the assumptions you made in the plan. And that despite rates that you think will slightly increase and despite growth in the customer base and in the product range that you offer to these customers. So just curious to understand, first of all, why the caution maybe in the revenue targets that you set here in light of the environment?
And the second question is on the Italian earnings because I think you're saying you're going to go to 20% of group earnings in Italy. And I think that compares to 15% today. So why do you think you're going to grow in Italy faster than elsewhere? Especially as this is an organic only target, if I understood correctly.
Yes. Because for growth of our revenues, it's only an organic growth. And if you appreciate as the last decade of the growth of revenues of credit policy. We have the part 1/3, I think, that in mind due to the external growth. And we don't want to integrate in our plan the operation of M&A. We will see that in the future. It depends on the opportunities. And if it makes sense, if we can create synergies, et cetera, et cetera. That's why 3.5, it's a little bit than we have already done in the past, and we are confident to ensure that.
Maybe just with the 3.5%, we also have, if we look into -- if we break down a little bit by business line, you have a couple of businesses, for example -- Italian cases, where we were at a high point in 2024 and in terms of net interest income. And of course, you heard about Amundi that integrates the uncertainty, of course, linked to the UniCredit partnership in the targets that M&G is taking into account. So if you break this up and if you integrate this dimension of organic growth, you'll see that our 3% minimum is very ambitious.
And maybe regarding what you asked on Italy and the fact that the proportion of our net income coming from Italy is going to grow from 15% to 20%. Part of the increase is linked to the fact that starting in 2026, we are going to recognize the equity contribution of as a component of our Italian results, which is obviously the case.
Steven Stalmann from Autonomous. I wanted to get back to what you said -- the 2% revenue growth target in France. You're also targeting 3.5% to 3% to 4% in LCL. So it does seem as if you are not expecting much growth in the other French businesses. Is that just conservative or planning? Or is it some reason for that? And the second question relates to -- I think John may have mentioned it regarding the output floor. I appreciate that that's not binding for CASA, but I guess when the group starts to mitigate that some of the mitigation may have to be absorbed by CASA. Could you maybe talk about how you look at that?
Maybe just on the revenue growth around 2% in France. Indeed, we have a growth which is between 3% and 4% for LCL. We have other businesses that are also going to contribute to the growth in France and thinking about CASA in particular and Connecticut -- Assurance. The contribution of other -- for example, Amundi and -- industries will be a little bit lower because they're going to expand more internationally. And of course, you also have to take into account the evolution of the corporate center with the participation of Banco BPM that can increase and become international. So that's also one of the reasons why we have revenue in France, which is about 2%.
When it comes to the output floor and the mitigation that we can foresee in order to reduce a little bit the impact of this output floor, you perfectly know that what is going to bite at group level for the output floor full ramp-up in between '29 and 2032 is going to be the proportion of home loans that sit within our balance sheet, especially within the regional banks. So definitely what we have to work on is how we can improve the way we structure those loans and the way we organize things in order to reduce the impact of the output flow. So I don't know, as of now, if some elements are not are going to buy that Credit Agricole S.A. level. But first, it's not going to be before 2028 or 2029. And second, the bulk of the issues with the home loans.
Just maybe a comment on your capital position because we have a lot of questions about that. I confirm that we have we haven't any interest at the level -- at the CASA level of maintaining a CET1 ratio significantly above 11%. And the market, in fact, actually has the best of the buffer world. You have a limited ratio at the level Credit Agricole and for the market, you have a good return on tangible equity for teams and maybe more if we can. And you have a free guarantee from the regional bank for the group level with 70.5% of CET1 ratio at the group level.
I repeat, we haven't interested any interest to keep to have too much capital. And in this case, and if we do less acquisition, we hope in the future, I'm sure that we are confident on the capacity to provide to the market at the end of the plan, an exceptional dividend in case of too much structural capital at the level of Credit Agricole. I want to add that because we have a lot of questions in distance for this question.
It's Chris Hallam from Goldman Sachs at the back. So I just had a couple of questions. First on CACIB, a bit of a follow-up to the earlier question. You have a revenue target of 6% for Europe excellence. I just wondered if you could spend a bit of time talking about CACIB in France in particular, particularly considering the context of the other 40, how that will play out?
And then second, at the beginning, Olivier, you were very clear that you don't intend or wish to sell the stake in Banco BPM for cash. I just wondered whether you would consider selling part of that stake or exchanging part of that stake if that were necessary to facilitate a combination considering where the percentage aggregate ownership may end up if you didn't move on the 20% prior to a combination.
On this one, I think you misunderstood what was saying Olivier was saying that we do not intend to sell Credit Agricole Italy for cash because we've seen in the press some news related new possibility that we were ready to contribute Credit Agricole Italy in exchange for elements which are cash or cash related. We didn't talk about the stake, and we are happy with the fact that we hold this stake we are here and we are organizing ourselves to stay in the long run as a the first actually shareholder of Banco BPM. This is the reason why we want to equity account this stake. And so of course, there's no point in thinking of selling this stake cash.
It's a no-brainer.
Even though this is a stake that has a price that is far below the price that we see in the market as of today.
On CACIB topic, maybe you can Jean-Francois.
In France, I mean, naturally, the French market is quite well developed. But we have a very strong position in France. We've been developing our activity in the various businesses for quite a while, and there is still room to grow.
If you look at where we are mentioning our strengths in real assets, a lot of investments to take place in -- still in energy transition, but also in the tech sector, in the telecom sector, and we are big players there. So we can help. There is also the development on the FI side, which is continuing. So we have a broad range of possibilities. What we've seen on the previous medium-term plan, is that part of our growth also is generating additional revenues with existing clients, which is very important. So we continue that way.
Pierre Chedeville [Foreign Language].
I know you perfectly. I know you prefer to speak in French the same for me...
So in P&C, in the previous plan, you had an objective of plus 2.5 million contracts. And you need them even if you don't communicate a lot on that, but according to my calculation, you did also 1.7 million contracts. So I was a little bit curious to know why do you plan this time, 3 million contracts because you did not we did not exactly say where do you think you are going to make this contract? And why are you going to make twice better than in the previous plan on this.
And also in insurance, I remember that Philip Brasa was very keen on developing SMEs insurance business at that time, you had a target of revenues of EUR 1.5 billion. And you don't say a word on that part of the business in this plan. So I was curious to know if you gave up this ambition. And I remember that at that time, AXA France said to me, you will see we will give up within 3 years, maybe the case.
Regarding consumer credit and mobility, I'm also a little bit surprised by your target of Ron, not surprised because we all know that it's a difficult time for this type of business. But when I look at some of your competitors, regarding these 2 types of businesses, mobility and consumer finance. The plan to recover a little bit stronger venue let's say, around 12% to 13%, which is a round that is covering the cost of equity at the end of the day, in this kind of business. So I was wondering why are you so conservative from your part. And at the end of the day, when do you think that you will cover the cost of equity, which is clearly not 10% in that kind of risky business.
And my last question will be a subsidiary questions regarding cash regional, which is your main distributor, I would say. We have seen a significant deterioration of our cost/income ratio this last 4 years, of course, margin as it's part on lot, but certainly other things maybe you can tell us. And what would be your objective regarding this cost income, I think that currently, today, they are around 62%. They were around 53%, 55%. So what is your view on that? And can you have any impact regarding their capacity to sell your products?
Okay. Thank you for your question. I give the floor, and I can add many comments on that. But to start with Nicolas Denis. We start in English.
If I may, so the first question was about 3 million contract in 2028. So it's, in fact, 1 million in net contracts more, and it's not only in France, it's in France. And abroad, as you probably know, we have now a very successful subsidiary with Abanca, JV in Spain. We have also successful subsidiary in Portugal, Mode. And we launched Motor Insurance in Portugal this year and it's also quite successful. So that's why we aim 26% of growth of the portfolio of P&C contracts in France and in Europe.
So second question was about SME in Italy -- and in Italy, of course. And in Italy, we have the JV with Banco BPM, and it's roughly EUR 500 million in terms of premiums.
The second question is about SME SMEs and EUR 1.5 billion and during these 3 years, when we call of integrated SME business for insurance, we are speaking about what we call in France assurance qualities, so employee benefit retirement, health and production insurance and also of P&C and semi. So both of these 2 business lines, and we are very successful in both business lines.
First, in retirement, health and protection. We are one of the leader in retirement in France. And we are -- we want to enter the tenth ranking in France in this business line because we have a very attractive model of bancassurance integrated with the regional banks and also with LCL, and we have a very good synergy with Amundi. And for P&C, SME in France, we launched it in 2020 with a very smooth launch, a very prudent launch, and we accelerate this year, and we will accelerate in the next 3 years.
Thank you for the return for the SFS division.
Yes. We don't usually comment on what our competitors do, but it's true that it's not necessarily the same method when we calculate the ROE for our competitors and ourselves, if we take into account the geographical mix or the mix in personal finance between revolving or not, or even methodological differences, in particular, for example, some of our competitors take into account minorities shareholders, whereas we don't. So that creates a difference between the ROEs that we calculate and RNs that others calculate.
Now our trajectory is based upon ambitious targets in terms of growth in a context that's still uncertain in particular regarding mobility, but there's also an optimization of the expenses and the resources and the cost-to-income ratio of CAFM which is already very low, continues to decrease in this medium-term plan. So we're quite confident as to the fact that we're going to reach this ROE level of 10%. And of course, as you know, we never reason in terms of some of the parts at -- regard because each of the businesses also contribute to the growth of the others in a logic of generating synergies. So [indiscernible] is very important for our whole setup.
Concerning now we have a last question concerning the cost-to-income ratio for the regional banks. Maybe I give the floor to Gerald to comment that.
It's quite easy because in the context of medium-term plan of Credit Agricole, I don't have any information to communicate about the cost-income ratio of the cash rational. However, however, I could however -- I can confirm the full commitment of the team here present to support the business of the regional banks. That's clear. And this is a notion presented of a business partner. And I also confirm you the full commitment of the regional banks to improve their performance and more specifically, their cost income ratio.
And in our transformation, the second pillar of our plan, we have associated regional banks in order to optimize processes and expenses for all over the group, even the regional banks, and that's a key point for the future and for regional banks.
It's Joe Dickerson from Jefferies. Just a couple of quick questions. Firstly, on your portfolio of businesses that are in Asia. If you were to put those businesses together, what type of one would they be earning?
And then, I guess, secondly, on the Asia business, it's pretty clear who you compete with, if you look at the league tables who you compete with in the CIB side. If you were to look at the wealth side, geographically, it sounds like you're really focused on Southeast Asia. I guess what's the competition this ultra high net worth, high net worth, more the mass affluent? It seems like it's kind of the former. So we had some discussion around the Asian portfolio in health.
And then on the cost walk, where you've got the EUR 1.8 billion of investment, I guess, how much of that -- is that primarily associated with France? And among that, is that -- would that be investing in digital? Or is it more pan-European?
Yes. Thanks on the Verona question, which is a tough one. But nevertheless, if you consider that the businesses that are going to develop quite strongly in Asia, our Amundi CACIB and Endo. And if you look at our ROE targets for the asset gathering division and large customer division, you'll see that these businesses are very, very accretive for our setup.
And it's also logical that this would be the case also in Asia because since we're going into Asia also to capitalize on all of the development of savings, liquidity in that region. All of these elements are drivers of accretive growth. So it's really something that's going to contribute positively.
I want to just add that we have a very strong brand in Asia, a very attractive brand in Asia, maybe the geopolitical landscape at the moment, Americas and so on, you know the environment. We feel that we have a very strong brand and very attractive. That's why we make business, for example, in a with Amundi, but we want to develop that with the other business line. And for us, it's a key area of growth in the future, not only for the 3 next years, but for the years to come.
Giulia Miotto of Morgan Stanley. I have to I'll go back to the BPM comment that you made that you're waiting for a proposal why waiting, not making a proposal. So what would be your ideal solution there? And then secondly, there is a need in Europe for more investments. So I'm surprised that why in Germany, you are leading with the savings product. So is the vision to start with the savings account and then convert the people to more investments or I don't know, unit-linked products? Or you just stopped at this savings product?
On the first topic, we are app shareholder at the moment with 20% of the stake. And if we haven't any proposal, okay, we're watching and we are cautious and we are passionate and we build today with BPM, many, many contracts in the insurance, in consumer loan and maybe we have other ways to build something together. But we are prudent and cautious and patient and we are waiting the moment, but it's BPM. They have at the end. They have tend to build something, and they were waiting for that.
Second question for Germany for savings...
For savings, maybe just a question. we are targeting savings of individuals of households in the different European countries. This is the goal of this platform that has been presented by Stefan during the presentation. Then, of course, what we intend to do is to be able to propose to use this saving under the form of different products, be it products proposed by Amundi, be it products proposed by our insurance subsidiaries or be it other type of products. And of course, this is going to participate to this movement that we think is useful for Europe, which is progressively to channel the savings of the household towards more, I would say, a little bit risky, but more useful investment financing for the development of the European economy.
Yes, we have received a few questions via the chat. The first one will be, in fact, a summary of several questions that we have received on the interim dividend. So -- and the question is, can you give an indication of the potential interim dividend split for 2026 in relation to both H1 net profit and the expected full year 2026 dividend. In fact, the question is more explanations on what are the modalities.
So we're going to pay in the second half of 2026, an interim dividend based upon the income of the first half, i.e., June 2026. We're going to provide you details soon with -- regarding the modalities of this distribution, but it will be consistent with our wider distribution policy, which is a distribution of 50%. And so -- and then we're going to remain prudent within this interim dividend policy, but consistently with our yearly policy.
Okay. Next question is about ESG. I'm looking at that maybe -- do you plan to have your trajectory validated by SBTI?
I'll give the floor to Eric.
Yes. When -- yes, one answer is the fact that we have been working with SBTI for a long time, I guess, since 2016, and we have a status of committed in SBTI. This means that we are working with SBTI in order to be acknowledged in the climate strategy of the group.
Okay. We have another one on the evolution of earnings, the EUR 8.5 billion guidance for 2028, how much comes from the contribution of Banco BPM. Some explanations?
So as you know, we've integrated pro forma the fact that we're going to equity account the contribution of Banco BPM for 20.1% starting normally on the fourth quarter of 2025. And so this creates a contribution of about 400 -- a little bit more than EUR 400 million, which is about 5% of the net income growth share.
But we have to also mention the fact that in the basis of comparison, so the restated 2024 figure, there is already this equity contribution. So don't imagine that out of the 25% increase of the net profit at CASA between 24 and 28. Five points are going to come simply from the fact that we are going to equity account BPM. It's already there in the pro forma of 24, it's going to increase a little bit accordingly to the official plans published by BPM up to 2028. That's it.
Okay. Next question is about CCI, CCE. Why at today's Capital Market Day, did you not propose any concrete solution for the CCI shareholders of the 13 regional banks still listed.
Okay. It's not my role as a deputy as the CEO of Credit Agricole to comment and to comment the situation of CCI of the regional banks. And secondly, as you know, we have legal action ongoing at the moment, and it's obviously impossible for us to comment with the ongoing actions.
One question on French retail and NII, net interest income. Can you elaborate on LCL net interest income growth? What are the main key drivers here?
Can I give the floor to Serge McDulan, CEO of LCL.
Okay. Let me just step back to the NBI growth because we are quite confident the NBI will grow by 3.5%, 3.8% during the period, driven by growth of margin -- intermediation margin. And the drivers are volumes the volumes outstanding, we are expected a very dynamic production of loans. And the renewing of our credit outstanding credits with better margins due to interest returns than the loans that are instigation.
And the last question will be about Worldline. Could you elaborate on your plan about Worldline is your investment mark-to-market in your accounts or depreciated? What is your average purchasing price, but the question is about Worldline globally?
Worldline, we have a specialist Worldline. It's very a...
Actually, we took a stake in the capital of Worldline back in 2023 at a moment where we were just finalizing a contract with Worldline an industrial partnership, which is very important for the development of our services to merchants. And Worldline was at that time, announcing that it was going to get rid of part of its German merchant portfolio in order to comply with BaFin requests. The share price of Worldline declined suddenly, and we found out that it was at the same time a risk the partnership that we have with Worldline and an opportunity to enter into the capital because with the previous share price, we felt it was a little bit too demanding.
Then Worldline has been engaging into a very profound restructuration. We support this restructuration. We support the efforts of the management to refocus its business on 2 main divisions, which is financial services, services that actually are sold to banks, mostly in Europe, not very much in France, but mostly in other European countries and then merged services, which is clearly the division in which we have this very important partnership that was earlier in the presentation call.
So this restructuration of Worldline is quite demanding, as I said, because it's going to imply a certain level of investment, IT investment in order to merge a number of platforms. It also implies the divestiture of certain businesses with -- so the reduction of the EBITDA that was coming from these businesses. And so Worldline communicated back 2 weeks ago on its new medium-term plan with in addition to that, the announcement that it was raising additional capital. We've decided to support the capital raise along with 2 other important French banks, BPI and BP and there's nothing more to say. We support the plan. We support the transformation and we support the capital increase in its 2 legs. That's all. And we are quite confident this is going to work out, and we are also very positive on the partnership that we've built with them.
Thank you, Jorn. Thank you. Thank you, Cecile. Thank you for the team. You have to conclude now.
Yes, I have to conclude. And as we are coming to the end of the session now. So I want to thank you all for being with us today, which we appreciate your time and participation throughout this Investor Day. Before we conclude, let me share what's next.
In the coming months, we will host a series of 4 workshops each dedicated to 1 of our key business lines. So LCL, Insurance, CIB and Personal Finance and mobility. We will host 1 workshop per semester starting in H1 2026. And they will provide an opportunity to explore each area in greater depth and continue the discussion. We'll share all the details with you well in advance.
Thank you once again for joining us today. We look forward to seeing you at the upcoming workshops and have an excellent day.
Crédit Agricole — Analyst/Investor Day - Crédit Agricole S.A.
Financial data from Crédit Agricole
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 83,242 83,242 |
-
100%
|
|
| - Interest Income | 16,040 16,040 |
-
19%
|
|
| - Non-Interest Income | 67,202 67,202 |
82%
82%
81%
|
|
| Interest Expense | 37,332 37,332 |
-
45%
|
|
| Non-Interest Expense | -65,617 -65,617 |
114%
114%
-79%
|
|
| Loan Loss Provisions | 3,719 3,719 |
98%
98%
4%
|
|
| Net Profit | 8,943 8,943 |
27%
27%
11%
|
|
In millions EUR.
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Company Profile
Credit Agricole SA engages in the provision of banking and financial services. It operates through the following segments: French Retail Banking - Regional Banks, French Retail Banking - LCL, International Retail Banking, Savings Management & Insurance, Specialized Financial Services, Corporate & Investment Banking, and Corporate Centre. The French Retail Banking - Regional Banks segment provides banking and financial services for individual customers, farmers, small businesses, corporate and local authorities. The French Retail Banking - LCL segment offers asset management, insurance, and wealth management products. The International Retail Banking segment covers foreign subsidiaries and investments that are involved in retail banking. The Asset gathering segment offers: asset management activities; asset servicing for institutions; life insurance and personal insurance; property and casualty insurance; credit insurance activities; and private banking activities conducted mainly by CA Indosuez Private Banking and by Crédit Agricole subsidiaries. The Specialized Financial Services segment provides consumer financing services and specialized financial services such as factoring and leasing and this segment also handles the group subsidiaries which provides financial products and services to individual customers, small businesses, corporates and local authorities in France and abroad. The Large customers segment operates in capital markets, investment banking, and financing activities. The Corporate Center segment involves central body function, asset and liability management, and results of the private equity business and various companies of the group. The company was founded on November 5, 1894 and is headquartered in Montrouge, France.
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| Head office | France |
| CEO | Mr. Gavalda |
| Employees | 79,848 |
| Founded | 1894 |
| Website | www.credit-agricole.com |


