Credit Agricole SA: Update on Crédit Agricole S.A.’s financial situation in Ukraine and Russia
07 Marzo 2022 - 01:30AM
Credit Agricole SA: Update on Crédit Agricole S.A.’s financial
situation in Ukraine and Russia
Update on Crédit Agricole S.A.’s financial situation in
Ukraine and Russia
In the current situation, of war in Ukraine and
crisis with Russia, Crédit Agricole Group wishes to be transparent
regarding its exposure to these two countries.
The activities of the Group in Ukraine and
Russia are locally operated through two 100% owned subsidiaries:
the international retail bank Crédit Agricole Ukraine and the
subsidiary of Crédit Agricole CIB in Russia, CACIB AO. In 2021, the
activities of CA Ukraine and Crédit Agricole CIB AO represented the
following contributions:
Country |
Net banking income excluding intragroup eliminations(in millions of
euros) |
Average headcount (in FTE) |
Earnings before tax (in millions of euros) |
Ukraine |
125 |
2,286 |
58 |
Russia |
22 |
168 |
5 |
The total exposure (on-shore and off-shore) of
Crédit Agricole S.A. in these two countries represents
approximately 0.6% of the total commercial lending portfolio as of
31 December 2021.
Ukraine:
The commercial lending commitments1 for Ukraine
amount to eq. €1.5 billion as of 31 December 2021, i.e.
approximately 0.15% of Crédit Agricole S.A.’s commercial lending
portfolio. They are almost all booked at the Crédit Agricole
Ukraine level and are locally financed. As of 31 December 2021,
Crédit Agricole Ukraine is a provider of short term liquidity to
Crédit Agricole S.A. The equity of Credit Agricole Ukraine amounts
to €226 million as of 31 December 20212.
Russia:
The commercial lending commitments3 for Russia
as of 31 December 2021 amount to approximately 0.45% of Crédit
Agricole S.A.’s commercial lending portfolio4.
The exposures booked in CACIB AO subsidiary
represent eq. of €540 million as of 31 of December 2021. All of the
credit portfolio is locally refinanced. The equity of the
subsidiary amounts to approximately €150 million, of which €80
million in capital and €70 million in subordinated debt. The bulk
of assets consist in loans to local corporates, mainly in rubles,
1/3 of which benefits from the parent multinational company’s
guarantee5 and of a sovereign exposure corresponding to the excess
liquidity of the subsidiary deposited short term at the Central
Bank of Russia in the context of its regulatory liquidity and ratio
requirements.
The exposures booked outside of CACIB AO,
so-called «off-shore exposures», can be split into on-balance
sheet and off-balance sheet.
- The on-balance
share of off-shore exposures amounts to eq. of €2.9 billion6 as of
31 December 2021. This portfolio mainly pertains to fifteen large
Russia corporates, notably producers and exporters of commodities,
leaders on the market in key economic sectors of their country. The
sectorial break down is the following: 52% heavy industry (mining,
steel, fertilizers), 36% energy (oil and gas), 6% other transports,
4% shipping, and 2% aerospace. Its quality is strong: 96% of the
portfolio is rated investment grade in the internal rating scale as
of end December 2021. It is mainly corporate finance for 62% and
trade finance for 25%, and the rest corresponds to asset financing
(aerospace, project, shipping). The portfolio is 56% in USD, 38% in
EUR, and 6% in CHF.
- The off-balance
sheet share of off-shore exposures amounts to around €1.5 billion
as of 31 December 2021. It mainly corresponding to short-term trade
finance activities (in particular documentary credit and financial
guarantees), and, to a lesser extent, to confirmed un-drawn credit
facilities.
The variation risk linked to derivative
transactions is limited and amounts to €60 million as of 31
December 2021.
Finally, there has been no new financing granted
to Russia counterparties since the beginning of the conflict.
All in, these exposures, which are of a limited
size and of good quality, are under a close monitoring.
The evaluation of the situation has no
consequences upon the distribution of the 2021 Credit Agricole S.A
dividend that will be submitted to the Shareholders Meeting of 24th
of March 2022. As a reminder, Credit Agricole Group’s solvency
ratio amounts to 17.5% and that of Crédit Agricole S.A. amounts to
11.9% as of 31 December 2021 (CET1 capital levels respectively
amount to €102.7 billion and €44.9 billion).
CRÉDIT AGRICOLE PRESS CONTACTS
Charlotte de
Chavagnac + 33 1 57
72 11
17 charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain + 33 1 43 23
25 41
olivier.tassain@credit-agricole-sa.fr
Tous nos communiqués de presse sur : www.credit-agricole.com
1 On and off-balance sheet, excluding sovereign debt exposure on
the balance sheet of Crédit Agricole Ukraine, which amounts to€0.3
billion as of 31 December 2021. 2 Out of which eq. of €201 million
of equity and eq. of €25 million of subordinated debt, proforma of
the dividend distribution amounting to €16 million and paid on 23
February 2022. 3 On and off-balance sheet, no exposure to Russia
sovereign debt as of 31 December 20214 Excluding CA Indosuez Wealth
Management Russian exposures, that currently represent around €250
million.5 Covering political Russian risk6 Drawn share of the
credit facilities, net of Export Credit Agency guarantees,
excluding variation risk
- PressRelease_Ukraine et Russie_UK_VFINAL
Credit Agricole (EU:ACA)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Credit Agricole (EU:ACA)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024