annual reports 2016-03-17 00:00:00 Annual Financial Report 2015 Registration document Mar 17

544 Pages·2016·6.88 MB·English

ANNUAL FINANCIAL
REPORT 2015
REGISTRATION
DOCUMENT
Table of contents
Message from the Chairman
and the Chief Executive Officer 2
Crédit Agricole Group profile 4
42015 OPERATING
1 ABOUT CRÉDIT AGRICOLE S.A. 8 AND FINANCIAL REVIEW 186
Information concerning the share capital Operating and financial information 188
and shareholders 10
Information on Crédit Agricole S.A.’s
Stock market data 16 financial statements (parent company) 216
Significant events in 2015 19
Company history 20
The four business lines of Crédit Agricole 5 RISK FACTORS AND PILLAR 3 218
S.A. at 1 January 2016 22
Risk factors 220
Basel 3 Pillar 3 disclosures 262
2 ECONOMIC, SOCIAL
AND ENVIRONMENTAL
INFORMATION 36 6 CONSOLIDATED FINANCIAL
STATEMENTS 306
Reinforcing the CSR strategy 38
Strengthening trust 41 General framework 308
Developing “climate finance” 49 Consolidated financial statements 316
Helping customers to meet their social, Notes to the consolidated financial statements 324
environmental and solidarity challenges 52 Statutory auditors’ report
Developing people 57 on the consolidated financial statements 452
Promoting the economic, cultural
and social development of the local area 81
Limiting direct environmental impact 84
7 PARENT COMPANY FINANCIAL
Cross-reference table 89
STATEMENTS 454
Report by the independent third party
on the environmental, labour Parent company financial statements 456
and social information 91 Notes to the parent company financial
statements 459
Statutory auditor’s report on the financial
statements 505
3 CORPORATE GOVERNANCE 94
Report of the Chairman of the Board of Directors 96
Statutory Auditors’ report 129 8 GENERAL INFORMATION 506
Additional information on Corporate Officers 130
Memorandum and Articles of Association 508
Information on Executives 144
Information on the Company 523
Management Bodies at 15 March 2016 147
Statutory Auditors’ special report on related
Compensation policy 148
party agreements and commitments 525
Fees paid to Statutory Auditors 535
Person responsible for the registration
document 536
Cross-reference table 538
CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT
2015 REGISTRATION DOCUMENT
ANNUAL FINANCIAL REPORT
This registration document was filed with the
French Financial Markets Authority (Autorité des
Marchés Financiers, AMF) on 16 March 2016 under
number D.16-0148, in accordance with Article
212-13 of the AMF’s General Regulations. It may
be used in support of a financial transaction if
accompanied by a transaction note approved
by the AMF. This document was prepared by the
issuer and its signatories are liable for its content.
CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT 1
MESSAGE FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER

MESSAGE FROM THE CHAIRMAN
AND THE CHIEF EXECUTIVE OFFICER
PHILIPPE BRASSAC, CHIEF EXECUTIVE OFFICER AND DOMINIQUE LEFEBVRE, CHAIRMAN OF CRÉDIT AGRICOLE S.A.
A robust Group delivering
sustainable performance
Leading a bank with a EUR 698 All our business lines delivered sustained Savings management and Insurance
billion loan book(1) and 71,500 business momentum, despite the delivered an excellent performance with
employees worldwide, we have challenges facing each of them. net inflows of more than EUR 90 billion
many responsibilities towards all Retail banking achieved a strong over the year. Amundi’s recent successful
our stakeholders. In addition, Crédit commercial performance that benefited IPO reflects a flawless track record since its
Agricole Group is the leading financial all the Group’s specialised subsidiaries. creation, during which time it has succeeded
partner of the French economy. It delivered 5% growth in home loans in becoming Europe’s leading asset
outstanding and 4.3% in on balance sheet manager.(4) Crédit Agricole Assurances
The first is to prove that we can deliver
deposits.(2) In France, the Regional Banks
captured further market share and is now
the results our shareholders expect. With
and LCL also achieved 6.2% growth in
the leading bancassurer in Europe.(5) Our
net income Group share of EUR 3,516 lending outstandings to corporates and
Specialised financial services – consumer
million, Crédit Agricole S.A.’s results small businesses. In the international
reflect good business momentum in all markets, retail banking revenues grew finance, leasing and factoring – delivered
its business lines in a continually evolving by 1.9%(3) in Italy and by 2.8% in other renewed growth in their contribution.
environment. At Group level, i.e. including countries. Our banks continue to deliver Lastly, Corporate and investment banking
the Regional Banks and Crédit Agricole good results despite the pressure on revenues increased over the year, driven
S.A., net income Group share was also up margins caused by the persistently low by satisfactory business volumes and a
to EUR 6,043 million. interest rate environment. favourable currency effect.
2 CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT
MESSAGE FROM THE CHAIRMANAND THE CHIEF EXECUTIVE OFFICER

It is worth pointing out that these capital requirements to be applied impact of this operation will be offset in due
performances were achieved in a highly following the results of its Supervisory course by growth in business synergies.
challenging economic environment with Review and Evaluation Process (SREP).
This decision means that we can present
persistently sluggish growth in Europe Crédit Agricole S.A. has a Common Equity
an ambitious medium-term plan focusing
and an economic slowdown in China. Our Tier 1 (CET1) ratio of 10.7% compared with
on organic growth and improving
business is also exposed to the ups and a requirement of 9.5%. Crédit Agricole
profitability with a target RoTE(8) of above
downs of the geopolitical landscape. In the
10%.
space of one year, fears have been fuelled
by several crises, not least of all the risk of 8.5% revenue It will also make the specific nature of our
a “Grexit” and the drop in oil prices. France Group easier to understand. It is essentially
growth over one year
has not been spared either, with the crisis
a cooperative group of Regional Banks plus
in the farming sector being of particular
a listed company, one function of which is
concern to us. Crédit Agricole assumed
to coordinate the strategy of the business
its responsibilities by providing 18,000
Group had a CET1 ratio of 13.7% at lines to serve our retail banks. Our medium-
farmers, including 12,800 livestock farmers,
31  December 2015, already well above term plan is built on our belief in the
with adjustment measures, mainly by rolling
the 2019 requirement of 10.5%, making it robustness of our Universal local banking
up all or part of their loan repayments due
one of the most robust banks in Europe. model, which puts the customer at the
in 2015.
So it was in this context that we got heart of our action. It combines the strength
We also have to get to grips with changes
together to think about the Group’s of a local presence represented by our retail
in our business sector. In France, the new
future, guided by prudence and the aim banking networks with the expertise and
landscape includes the government’s drive
of delivering steady results. This led us to commercial efficiency of our business line
to modernise the payments system and
review the Group’s capital structure with subsidiaries. We have made the choice of
facilitate banking mobility. As it is, 2 million a view to simplifying it and putting an end
a fully multi-channel distribution model
customers change banks every year. We to the question marks over Crédit Agricole
leaving customers entirely free to choose
also have to deal with the challenge of the S.A.’s solvency when the Group is among
how they want to interact with their bank.
online-only banks, which are attacking us the best capitalised banks in Europe. Once
on price, but whose business model lacks we have completed this operation – which This relationship model can only work if it is
longer-term proof. The emergence of consists of transferring Crédit Agricole supported by a highly personalised service
fintechs and crowdfunding are also shaking S.A.’s 25% interest in the Regional Banks and if all customers have the ability to make
up the traditional banking landscape, as is to an entity wholly owned by them – an informed decision about what products
cybercrime. Crédit Agricole S.A. will no longer be a and services suit them best.
shareholder of the Regional Banks.
This operation, which is neutral at Crédit
€3,516 Agricole Group level, makes sense in many €0.60
ways.
It will give our shareholders improved dividend for 2015
million
visibility on our dividend policy. Based on
Net income the robustness of our results and on our
Group share strategic reflections, the Board of Directors
Our plan is also supported by the work we
has decided to recommend a dividend
have been doing in the past few years on
of 60 euro cents per share,(7) making a
reducing our risk profile, controlling our
Added to this mix are regulatory pressures, payout of 50% of net income attributable
costs, and on innovation. Our employees
with the emergence of new requirements to the shareholders as of this year. And
have the ability to innovate and to propose
now being driven by the European Central the dividend will be paid entirely in cash
the products that best suit the needs of our
Bank (ECB). We now have to comply with starting with the dividend in respect of
customers, whether individuals, farmers,
2016. For Crédit Agricole S.A., this plan
and report new ratios (MREL and TLAC(6)), companies or local authorities.
will contribute to improving its capital
which are designed to avoid the need for
by reaching the CET1 target of 11% as of We would like to thank our staff and
bailout of failing banks by governments
1 January 2016 (on a pro forma basis), i.e. all our customers, mutual shareholders
and, therefore, taxpayers. At the end of one year ahead of schedule, and for the and shareholders for their continued
2015, the ECB informed us of the new entire duration of the Plan. The dilutive confidence in us.
(1) Total loans and advances to credit institutions and customers at 31/12/2015.
(2) Regional Banks, LCL and Cariparma.
(3) Excluding items accounted by Crédit Agricole S.A. in Q1-14 (+€80m in revenues of which +€92m for revaluation of Bank of Italy securities and -€109m in cost of risk) as
well as income tax linked to these items.
(4) No. 1 on assets under management among asset managers with their main place of business in Europe – Source IPE “Top 400 asset managers” published in June 2015
based on December 2014 data.
(5) Source: L’Argus de l’assurance, 18 December 2015, end-2014 data.
(6) The Minimum Requirement for own funds and Eligible Liabilities (MREL), which has been set at 8% of the bank’s liabilities, came into effect on 01/01/2016. The Total
Loss Absorbing Capacity (TLAC) is applicable only to global systemically important banks of as 2019.
(7) Subject to approval at the annual shareholders’ meeting of 19 May 2016.
(8) Return on Tangible Equity.
CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT 3
CRÉDIT AGRICOLE GROUP PROFILE

CRÉDIT AGRICOLE GROUP PROFILE
Leading financial partner
of the French economy(1) and one
of the largest banks in Europe
>>>
A universal banking Group…
The Crédit Agricole Group is the leading partner of the French Thanks to its universal customer-focused retail banking model
economy and one of the largest banking groups in Europe(2). It is – based on the cooperation between its retail banks and their
the leading retail bank in Europe(3) as well as the first European related business lines –, the Crédit Agricole Group supports its
asset manager, the first bancassurer in Europe(4) and the third customers’ projects in France and around the world: day-to-day
European player in project finance(5). banking, home loans, consumer finance, savings, insurances, asset
management, real estate, leasing and factoring, and corporate and
Built on its strong cooperative and mutual roots, its 140,000
investment banking.
employees and the 31,150 directors of its Local and Regional Banks,
the Crédit Agricole Group is a responsible and responsive bank Crédit Agricole also stands out for its dynamic, innovative corporate
serving 52 million customers(6), 8.8 million mutual shareholders and social responsibility policy, for the benefit of the economy. This
million individual shareholders. policy is based on a pragmatic approach which permeates across
the Group and engages each employee.
A presence in 140,000

52
countries
employees in France and abroad
>>>
… Close customer relationships
for tailored solutions

52 No. 1 Leading
million
customers bancassurer European asset
worldwide in Europe manager
The bank of one out of The bank of almost The bank of nine
three private customers one in two companies out of 10 farmers
in France(7) in France(8) in France(9)
(1) Based on the value of outstanding deposits and loans as of 31/12/2015. Source: Bank, French retail banking.
(2) NBI for European retail banking at end-December 2015. Source: Bank.
(3) In terms of total assets under management, No. 1 of all management companies who have their main office in Europe - Source IPE “Top 400 asset managers” published
in June 2015 based on assets under management at December 2014.
(4) Source: L’Argus de l’assurance - 18 December 2015, data at end-2014.
(5) Source: by amount of projects arranged, Thomson Reuters.
(6) Scope of French and international retail banking, Crédit Agricole Consumer Finance and Crédit Agricole Bank Polska consumer finance customers.
(7) Source: Sofia’s survey, TNS Sofres, March 2015.
(8) Source: TNS Sofres 2015.
(9) Source: Adéquation 2014. Global penetration rate of 85%.
4 CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT
CRÉDIT AGRICOLE GROUP PROFILE

>>>
Group organisation
(at 31 December 2015)
The Crédit Agricole Group includes Crédit Agricole S.A., all the Regional Banks and Local Banks and their subsidiaries.
8,8
million mutual shareholders
Crédit Agricole’s
Fédération Nationale
2,476
Local Banks
39
Regional banks
Float(2)
jointly controlling
Crédit Agricole S.A. via
SAS Rue la Boétie,
25%(1)
56.7% 43.3%
Retail Banks Asset management Specialised Corporate and
and Insurance business lines investment banking
Crédit Agricole
Regional Banks
(= 25% of each
of the regional banks(1))
LCL
International retail banking
Cariparma Group
Crédit Agricole Bank Polska,
Crédit du Maroc
Crédit Agricole Egypt
Crédit Agricole Ukraine
Crédit Agricole Serbia
Specialised businesses and subsidiaries:
(1) Apart from the Caisse Régionale de la Corse. The exact percentage holding in each Regional Bank is listed in Note 12 to the Financial Statements.
(2) Including treasury shares.
CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT 5
CRÉDIT AGRICOLE GROUP PROFILE
Key figures
>>>
Business
at 31 December 2015
(in billions of euros) 31/12/2015
Total assets 1,529.3
Gross loans 434.5
Customer deposits 664.3
>>>
Trends in earnings
Condensed income statement
(in millions of euros) 2013 Restated(1) 2014 2015
Revenues 15,682 15,853 17,194
Gross operating income 4,548 4,756 5,611
Net income 2,885 2,756 3,971
Net income Group share 2,510 2,340 3,516
(1) Restated in 2013 for equity-accounting of entities under proportionate method (IFRS 10 and 11) and entities reclassified under IFRS 5.
Net income Group share Return on equity (ROE)
(in millions of euros)
6.9%
3,516
2,510 6.1%
2,340
5.4%
2013 2014 2015 2013 2014 2015
Business line contribution to net income Business line contribution to net income
Group share(1) Group share(1) by region
10% 21%
Financial services 20% International 70%
Corporate France
and investment
banking
9%
Europe
36% 34%
Retail Banking Asset
Management
and Insurance
(1) Excluding Corporate Centre and the impact of accounting items (CVA/DVA/FVA, loan hedges, own debt and provision for disputes).
6 CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT
CRÉDIT AGRICOLE GROUP PROFILE

>>>
Financial structure
Equity Solvency ratios
(in millions of euros) (in percentage)
59,435
56,116
5,622
6,053 17.9%
47,883
15.8% 16.1%
5,595
12.2%
11.8%
10.9%
10.7%
10.0% 10.4%
42,288 50,063 53,813
31/12/13 31/12/14 31/12/15
31/12/13 31/12/14 31/12/15
Global solvency ratio (fully loaded)
o/w Tier 1 ratio
Group share
o/w Core Equity Tier 1 ratio
Minority Interests
>>>
Agency credit ratings
at 15 March 2016
Crédit Agricole S.A. has been awarded sound ratings by agencies. They reflect its financial strength and its membership of Crédit Agricole
Group.
Ratings Standard & Poor’s Moody’s FitchRatings DBRS
Counterparty long-term/ N/A A1(cr)/P-1(cr) N/A N/A
short-term
Long-term senior debt A A2 A A (high)
Outlook/Watch list Stable outlook Positive outlook Positive outlook Stable outlook
Short-term debt A-1 Prime-1 F1 R-1 (middle)
Date of latest rating 02 Decenber 2015 23 June 2015 23 June 2015 29 September 2015
Rating granted Affirmation of LT/ Granting of a LT/ST notes affirmed; LT note moved
ST notes; counterparty note; LT/ outlook changed to positive down one notch;
outlook changed to stable ST notes affirmed; positive from stable ST note unchanged
outlook unchanged
>>>
Presence in the CSR indexes

CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT 7
1
ABOUT CRÉDIT
AGRICOLE S.A.
Information concerning the share capital Significant events in 2015 19
and shareholders 10
Ownership structure at 31 December 2015 10
Company history 20
Change in share ownership over
the past three years 10
Recent changes in share capital 11 The four business lines of Crédit Agricole
Information concerning major shareholders 11 S.A. at 1 January 2016 22
Dividend policy 12 Retail Banks 24
Table summarising authorisations in force Asset gathering 28
and the use made thereof during 2015 12 Large customers 31
Purchase by the Company of its own shares in 2015 13 Specialised financial services 32
Description of the Crédit Agricole S.A. Corporate centre 34
share buyback programme for 2016
and subsequent years 14

Stock market data 16
Crédit Agricole S.A. share 16
Dividend calendar 18
ISIN codes for the loyalty dividend 18
2016 Financial communications calendar 18
Contacts 18
8 CRÉDIT AGRICOLE S.A. 2015 REGISTRATION DOCUMENT