CREDIT AGRICOLE SA: Results for the first trimeter 2016 – Zonebourse.com

Montrouge, May 12, 2016

First quarter 2016

A quarter characterized by the stability of the underlying results of the Group, the one-off effects of the implementation of the project
simplification and soundness of the business model of Crédit Agricole SA

Agricole Group * Credit: stability RNPG underlying T1 / T1, 1 241m €

GNP published: 7159 m €; ** Underlying: 7810 m € (- 3.1% T1 / T1)
profit before tax published: 1396 m €; ** Underlying: 2047 m € (- 5.1% T1 / T1)

RNPG published: 818 m €; Underlying ** 1 241 m € (- 0.2 % Q1 / Q1)
– 238m € under the FRU and – 448m impact € simplification of the structure of operation

Ratio THIS 1 not phased : 13.9% (+ 90 pb / 15 March)

* Crédit Agricole SA and the regional Banks 100%

Crédit Agricole SA: moderate decline of underlying Group net income (-9.3% Q1 / Q1)

– Good level of business activity overall
– mastered charges
– Cost of risk still down
– Confirmation of the strength of the structure financial
– Sequence structure simplification project
consistent with results

GNP published: 3799 m €; ** Underlying: 4194 m € (-4.3% Q1 / Q1)
Charges: 3176 m € (-0 1% off FRU T1 / T1)
Cost of risk: € -402 m (-15.6% Q1 / Q1)

RNPG published: € 227 m; Underlying **: € 394 m (-9.3% Q1 / Q1)
– € 201 m under the FRU and – 399 m € net impact of the structural simplification process

Ratio CET1 not phased: 10.8% (+60 bp / March 15)

** variations adjusted for specific items described in slide 44

Note: the perimeter of the ‘simplification of operation of the Group’s structure is described in slide 46

the Crédit Agricole group

net profit of Crédit Agricole group reached EUR 818 million in first quarter 2016, compared to 1 228 million euros in the first quarter 2015; this trend reflects the negative impact of balance sheet optimization operation for EUR -448 000 000 announced in February.

Also, retired from this operation and the usual specific items not related to operations (issuer spreads, DVA running and loan insurance), net income the Group amounted to 1,241 million euros, stable compared to the first quarter of 2015.

in operational terms, the decline in revenues (-3, 1% excluding specific items) attributable to the Bank’s corporate and investment and retail banking, is offset by the relative stability of charges (+ 0.3% excluding the contribution to the Single Resolution Fund), and lower cost of risk (-18.9%), bringing it to 28 basis points of outstandings, 6 points lower than in first quarter 2015.

the regional Banks maintained strong commercial performance despite a still sluggish environment: their record collection was up by 4.4% compared to March 2015 and their outstanding loans increased by 3.1% over the same period.

Their published net banking income was down -2.0% and -5.6% excluding home purchase savings provisions, the increase their commissions did not offset the decline in net interest margin. Their operating expenses are well controlled (+ 0.8% excluding the contribution to the single resolution fund) and their cost of risk improved significantly, with a decline of 26.0% in a year, reducing the cost of risk outstanding at 17 basis points. Overall, net income Group share (100% under IFRS) amounted to 826 million euros in the first quarter 2016, an increase of 4.6%.

the high level of financial strength of the Crédit Agricole Group is confirmed; the Group is one of the best capitalized banks in Europe.

So, in terms of solvency, the ratio Common Equity Tier 1 not phased the Group amounted to 13.9% at March 31, 2016; it was 13.0% at end-March 2015 and 13.7% at end December 2015.

The estimated TLAC ratio was 19.4 % at March 31, 2016, excluding eligible senior debt, which already puts the already very comfortable situation with regard to the minimum requirement of 19.5% including eligible senior debt to achieve in 2019.

the leverage ratio phased was 5.5%.

the liquidity position of Crédit agriculture is strong. The banking cash balance of the Group, at 1063 billion at March 31, 2016, shows a surplus of stable funding on stable employment of 114 billion euros, compared to 104 billion at end March 2015. Reserves liquidity, including capital gains and discounts related to the securities portfolio amounted to € 251 billion and cover more than two and half times the gross short term debt.

major emitters Crédit Agricole group issued 10.4 billion euros equivalent senior debt and subordinated in the market and support during the first quarter of 2016.

Crédit Agricole SA

the Board of Directors of Crédit Agricole SA, meeting under the presidency of Dominique Lefebvre May 11, 2016, examined the accounts for the first quarter of 2016.

net income Group share amounted to 227 million euros; the comparison with the published results of the first quarter 2015 is not relevant because of the unusual nature of the first quarter 2016 includes non-recurring negative elements of the simplification process of the capital structure announced on 17 February.

Indeed, the balance sheet optimization operation aimed by debt restructuring, to reduce the future cost of debt carried by Crédit Agricole SA, has resulted in a negative impact of € 448 million in income over the first quarter alone. In addition, the deconsolidation of Regional Banks achieved from this first quarter under IFRS 5 has resulted in the lack of recognition of the contribution of regional banks in the first quarter 2016 while allowing receive dividends on their 2015. as a result, adjusted for these items and those non-habitual activity (issuer spreads, DVA running and loan insurance), the underlying result for the first quarter 2016 amounted to 394 million euros , down only 9.3% compared to the first quarter of 2015.

This underlying income level is however not representative of the quarters subsequent because not incorporating recurring positive impacts in capital simplifying operation (stop the payment of interest on the
Switch 1, interest on the loan granted to the regional Banks, relief costs debt) even though it supports the entire annual contribution of the Single Resolution Fund.

The evolution of the underlying result demonstrates the strength of the business model of Crédit Agricole SA that can temper the lower performance of certain trades by the good results other businesses: limited decrease of results in retail banking – LCL only now and retail banking worldwide – (€ 15 million), down more marked Large Clientele (EUR -175 000 000) of Because of poor conditions of the market first two months of the year, but growth in savings management and insurance (EUR 36 million) and Specialized Financial Services (EUR 61 million).

the strength of the model is especially significant that the operating environment remains difficult: the rate continued to fall and result in retail banking, in the pursuit of rate renegotiations of loans or prepayments by individuals; Furthermore, the poor market conditions and the strong increase in volatility led to a significant wait and corporate clients, the oil price drop impacting volumes of trade finance .

All businesses have also registered a good level of business activity: retail banking, LCL has seen its balance sheet deposits increase by 8.9% , including 10.2% for demand deposits, and outstanding loans of 5.9%, while Cariparma recorded an increase in outstanding loans to individuals of + 4.0% and balance sheet customer assets + 4.2%; asset management, Amundi has collected, net 13.8 billion euros in the first quarter, thereby advancing its overall assets under management despite the negative impact of the markets; in damage insurance, production was up 11.8% compared to the first quarter of 2015 and the outstanding retirement savings products increased 2.7% year on year; in Specialized Financial Services, production of consumer loans reached a record level of 9 billion euros in the quarter, up nearly 16% compared to the same period of 2015; in the pole Large Clientele, infrastructure financing activities, air and rail transport were dynamic, with an increase in revenues of 4% for all structured finance between the first quarter 2015 and the first quarter 2016.

in addition to the developments mentioned on trades, AHM division recorded a strong improvement (€ 108 million) of its underlying net banking income.

overall, the underlying net banking income is down by just 4.3% compared to the first quarter of 2015.

operating expenses evolve in a controlled manner: excluding the impact of the Single Resolution Fund, they are stable despite the increase of taxes and continued investment in the business management of the savings and insurance, according to the guidelines of the Strategic Plan Ambition 2020. the charges in retail banking were down (-3 million euros out single resolution fund).

the cost of risk continued its downward trend: it establishes the quarter to 39 basis points on loans ^{, annualized, either by improving 12 points basic compared to the first quarter of 2015. This trend is found in most businesses: LCL (11 basis points against 17 in the first quarter 2015) Cariparma (113 basis points against 136), the consumer credit (140 points base against 244) and corporate banking (21 basis points against 25 basis points in the first quarter 2015).}

at the end of March 2016, the situation solvency of Crédit Agricole SA was consolidated with the ratio Common Equity Tier 1 non-phase was 10.8%, against 10.7% at end December 2015 10.2% at end-March 2015.

the LCR ratio of Crédit Agricole SA, as that of the Group, are above 110% at end-March 2016.

on April 30, 2016, Crédit Agricole SA generated 63% of its program of 14 billion medium term euro funding markets (senior debt and subordinate). He raised 7.6 billion euros equivalent senior debt and realized a US dollar issue of Additional Tier 1 for $ 1.15 billion equivalent euros.

Finally, the leverage ratio phased Crédit Agricole SA was 4.4% ^{at the end of March 2016 according to the Delegate act adopted by the European Commission.}

Corporate Social Responsibility (CSR)

for the fourth straight year, Crédit Agricole SA has communicated in February 2016, the 2015 audited annual results of its” FReD index “, which is 2.3. This index measures the yearly progress realized by the Crédit Agricole SA Group’s CSR (corporate social responsibility), with the objective set at 2. The main subsidiaries are engaged in the FReD. Crédit Agricole, which belong to large benchmark CSR was confirmed in 2015, including the integration of the label granted by Oekom Prime extra-financial rating agency (the 550 best performing companies on the 3000 rated by Oekom), consolidating its overall CSR performance. The FReD serves the priority issues for the Group CSR identified through regular consultation with employees and external stakeholders, some key elements are at the heart of strategic Ambition 2020 plan: a demanding governance that places customer at the center; a culture of ethics and compliance conceived as a performance factor and not as a constraint; a strong investment in human resources; and concrete commitments and daily to all our customers in all areas.

financial Calendar

19 May 2016 General Assembly shareholders (Paris)
May 27, 2016 Release of the dividend
21 June 2016 dividend payment
August 3, 2016 Publication of results second quarter 2016
November 8, 2016 Publication of third quarter results 2016

Warning
This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of European Regulation 809/2004 of 29 April 2004 (chapter 1, article 2, § 10). These elements are developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. By nature, they are subject to random factors that could lead to non-fulfillment of the projections and results mentioned. Similarly, the financial statements are based on estimates, particularly in market value calculations and amounts of asset impairment. The reader must consider all these factors of uncertainty and risks before making their own judgment.

Applicable standards and comparability
the figures presented for the period of three months ended on March 31, 2016 have been prepared in accordance with IFRS as adopted by the European Union and applicable at this date and prudential regulation in Viguer to date. This financial information does not constitute financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and have not been audited.

throughout the document, the account data 2015 pro forma results are presented: CACEIS transfer of savings Management and Insurance division the pole Large customers, transfer of Insurance Switch AHM of the Insurance business, passage of the regional Banks’ contribution in IFRS5. At Crédit Agricole SA, the term “retail banking” now covers LCL retail banking abroad.

RESULTS CREDIT AGRICOLE SA CONSOLIDATED

(in millions of euros)	T1-16	underlying T1-16	T1-15	T1-15 underlying	Change Q1 / Q1 underlying
net banking income	3799	4194	4359	4384	(4.3%)
off FRU operating expenses	(2975)	(2975)	(2 978)	(2978)	(0.1%)
Unique Resolution Fund (FRU)	(201)	(201)	(175)	(175)	14.9%
gross operating income	623	1018	1206	1230	(17.2%)
Cost of risk	(402)	(402)	(477)	(477)	(15 6%)
operating income	221	616	729	753	(18.2%)
equity affiliates	123	123	112	112	+ 9.7%
gains / losses on other assets	–	–	(2)	(2)	ns
Change in value of goodwill	–	–	–	–	ns
profit before tax	344	739	839	864	(14.4%)
tax	(12)	(238)	(288)	(297)	(20.0%)
net profit of discontinued and held for sale	–	–	347	(18 )	ns
net profit for the year	332	501	898	549	(8.7%)
Attributable to non-controlling	105	107	114	114	(6.1%)
net profit, Group share	227	394	784	435	(9.3%)

* Restated specific elements of the quarter (see slide 44 )

The net banking income reached 3,799 million euros in the first quarter 2016 it integrates the quarter the negative impact of balance sheet optimization operation (EUR -683 000 000), which are partially offset the dividends received from the Regional Banks for EUR 256 million and the usual accounting adjustments (revaluation debt, DVA running and loan hedges) for 32 million euros. Excluding these specific items, it amounted to 4194 million. Revenues for the first quarter 2015 amounted, in turn, to 4359 million and 4384 million euros restated for revaluation of debt, DVA running and loan hedges. The underlying net banking income and registered a limited decline of 4.3% year on year.

operating expenses , -3 176 million, are impacted by the contribution to the Single Resolution Fund -201 000 000 euros. Adjusted for this item, operating expenses were stable from the first quarter 2015 and the first quarter of 2016.

the cost of risk stood at 402 million euros. It is down 15.6% from the first quarter of 2015 reflecting the continued improvement in retail banking in France and the Italian subsidiary consumer credit, Agos Ducato. It stood at 39 basis points of outstandings in the first quarter 2016 ^{, down 12 basis points compared to the first quarter 2015 1 .}

the impaired loans ^{stood at 15.4 billion euros, representing 3 5% of gross outstanding loans to customers and credit institutions against 3.6% at March 31, 2015. impaired loans are covered by specific provisions amounting to 52.6%. Including collective reserves, the impaired debt coverage ratio amounted to 68.5% compared to 72.8% at 31 March 2015.}

income from equity affiliates is 123 million euros in the quarter, including 62 million in the Pole Large Clientele mainly Banque Saudi Fransi and 46 million in Specialised financial services, mainly joint ventures auto finance. For the record, no contribution is registered under the Regional Banks for their passage IFRS 5 as part of the Group structure simplification process.

In total, the Net income, Group share Crédit Agricole SA 227 million euros in the first quarter of 2016. After adjusting for balance sheet optimization impacts, dividends regional Banks, the revaluation of debt, DVA running and loan hedges, the income was 394 million euros, compared with a profit of EUR 435 million in the first quarter 2015, retired from the regional Banks’ contribution to the revaluation of debt, the DVA running and loan hedges.

SOLVENCY

at the end of March 2016, the financial strength of Crédit Agricole SA is reflected in its non-phase Common Equity Tier 1 ratio, which stood at 10.8% ^{against 10 2% in late March 2015 and 10.7% at end-December 2015. the main factor impacting the ratio this quarter was the increase in unrealized gains on AFS insurance to 13 basis points.}

The global ratio phased ² was 19.3% at March 31, 2016.

Finally