Business

CREDIT AGRICOLE appoints a DGA in charge of Insurance

(AOF) – Philippe Dumont is appointed Deputy Chief Executive Officer of Crédit Agricole S.A. in charge of Insurance, Chief Executive Officer of Crédit Agricole Assurances and Chief Executive Officer of Predica. He succeeds Frédéric Thomas, who is claiming his pension rights. This appointment takes effect from January 1, 2020. Philippe Dumont joined the Crédit Agricole Group in 1997 and was appointed in July 2009, Chief Executive Officer of Crédit Agricole Consumer Finance.

In September 2015, he became Deputy General Manager of Crédit Agricole S.A. in charge of Specialized Financial Services, which covers consumer credit, leasing and factoring.

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Crédit Agricole – Things to remember

– Universal bank with strong positions in France and Europe – first bancassurer and first asset manager in Europe under the Amundi brand, the largest financier of the economy and the leading property investor in France in France Crédit Agricole, Bforbank and LCL ex brands -Credit Lyonnais ;

– Revenues of € 18.6 billion from 4 divisions: local banking for 31%, major customers for 27%, savings management and insurance for 29%, specialized financial services (leasing, factoring, consumer credit …) for 14%;

– Confirmation for 4 years of the ability to generate strong profitability and to win new customers (an additional 1.8 million in France and Italy);

– Simplification of the capital structure reinforcing financial strength – “Common Equity Tier One” ratio of 11.5% and return on equity of 12.7%;

– Good visibility of the activity;

– Return to the payment of the dividend in cash for two years, with a distribution rate of 50%, ie € 0.69 for 2018.

Crédit Agricole – Things to watch for

– European regulation consuming in equity and low level of interest rates;

– Increased competition from online banks and Internet and telecom giants;

– Low valuation of assets other than those of regional banks -75.5% of Amundi, Predica / Pacifica, Sofinco …;

– Negative impact on revenues of low rates;

– Negative impact of Italian asset integrations and fears on the risk exposure of the Italian public debt;

– Restructuring to come in the bank of financing, with reduction of staff;

– Investor uncertainty after the decline in Q1 earnings;

– The valuation of banks depends on 7 points: liquidity positions, ability to meet the so-called “Basel 3” solvency ratio equal to 9.5% of equity, control of investment banking commitments, centralization of derivatives offsets cost of risk, which is itself related to the economic environment, return on equity or ROE and, finally, decisions of Central Banks – USFD and European ECB;

– After the realization of the plan “Strategic Ambition 2020” with one year in advance, reception of investors to the presentation, on June 6, of the new plan 2022;

– Capital controlled at 56.7% by the 38 regional banks outside Corsica.

Finance – Banks

Instant transfers between individuals are a strategic issue for banks. They should allow them to maintain their connections with their customers as US digital giants push their pawns into financial services. If Gafa managed to intervene between the consumers and their banks at the time of the transactions, the risk would be for them to lose the daily contact with their customers.

Current 2018 French banks have launched an instant transfer service between individuals via their mobile application Paylib, created in 2013 by a consortium of six institutions (BNP Paribas, Societe Generale, La Banque Postale, Credit Mutuel Arkea, Credit Agricole and BPCE). All major French banks should generalize this new service in 2019.

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