In an uncertain economic context, Crédit Agricole du Morbihan continues its mobilization to serve the Morbihan region and its commercial development:
During the half year, 9,336 new customers were added, bringing the number of customers to 398,250.
A total collection increased by 2.1% to 14.3 billion euros of assets. Liquid and secure savings (current accounts and passbooks) are still on the rise. At the same time, life loans grew at a rate of 1.1%, taking into account the unfavorable performance of the equity markets.
Outstanding loans that finance the local economy, which grew by 5.3% in one year to over € 9.7 billion.
Numerous property and personal insurance contracts that grew 2.5% in one year.
Solid financial results
Social banking income was 139.8 ME, up 19.9% over the previous year. It was driven in particular by the favorable exceptional items (reversal of the home savings fund, economic recognition of a bonus on the borrower’s death insurance commissions) and by the increase in the dividend paid by SAS rue de La Boétie (which holds the majority of the In Crédit Agricole SA).
The brokerage margin increased by 5.9% to 54 ME. This favorable trend is linked to commercial development and still favorable refinancing conditions (TLTRO). Furthermore, the increase in interest rates observed during the first half of 2022 results in a reversal of the home savings fund of 8.3 ME versus a reversal of 0.2 ME in 2021.
Net business commissions are up sharply (+ 20.2%) compared to 2021. This is linked in particular to the insurance business given a better than expected end of 2021 in terms of provisions for claims and bonuses on the death insurance commissions of the borrower. In addition, the growth of the insurance business and of the services used by customers contributed favorably to NBI.
In accordance with our mutual and social commitments, since January 1st we have set up the “SMS Alert”. In the event of a charge beyond the authorizations, the customer is notified via SMS to allow him to settle his account within the day while remaining free of charges. This made it possible to reduce this type of billing by 1.2 ME for the benefit of customers.
Operating costs, equal to 74.1 ME, increased significantly by 8.3% while remaining well below the increase in the intermediation margin. This increase is due to the increase in profit sharing and profit sharing linked to the economic trend, the increase in other personnel expenses and various operating expenses in a context less disturbed by the effects of the health crisis (recovery of a more normal situation in terms of travel, training, receptions …) and the preparation of the next business project.
EBITDA was 65.7 ME, up 36.3%.
The rate of doubtful loans and disputes continues to drop to 1.53% against 1.68% as at 31 December 2021 (on a consolidated basis). The coverage rate, relating to the write-down of doubtful loans and disputes outstanding from customers, remains satisfactory at 61.35%. It was 61.66% at the end of December 2021.
The cost of risk on a corporate basis is equal to 3 million euros, of which 2.9 million euros of provisions to reserves and collective channels.
The Fund for General Banking Risks (FRBG) was also endowed with 12 ME in 2022 versus 8.4 ME in 2021, in uncertain health, geopolitical and economic contexts. This allows the Caisse Régionale to maintain a prudent level of risk coverage. It should be noted that the Caisse Régionale has no direct exposure to Ukrainian or Russian counterparties.
The bad debt provision existing on a corporate basis amounted to € 91.1 million. In addition, the amount of the FRBG is ME 94.5. Taking into account these two elements and the provisions on solid and sensitive stocks, the overall coverage ratio (sophisticated, healthy, downgraded funds and FRBG / total gross loans) is equal to 2.94%.
After a corporation tax of 9.2 ME, the Company’s net profit stood at 41.6 ME as of June 30, 2022 compared to 30.6 ME as of June 30, 2021.
Consolidated Net Profit (Group share) amounted to € 57.7 million as of June 30, 2022, compared to € 39.5 as of June 30, 2021.
A solid financial structure
The financial structure of the Caisse Régionale confirms its solidity with 1,930 million euros of consolidated shareholders’ equity, the Group’s share as of June 30, 2022. The CET 1 ratio stood at 27.33% as of March 31, 2022. Similarly, the Caisse Régionale du Morbihan complied, as at 30 June 2022, with all the liquidity risk monitoring indicators. These include the internal debt limits in the short and medium term and the LCR ratio which, calculated in 2022, is on average 179.2% (for a regulatory requirement of 100%). It stood at 181.5% as of June 30, 2022.
The total consolidated balance sheet as at 30 June 2022 amounted to 12.9 billion euros, equity and debt respectively represent 14.9% and 85.1% of the consolidated financial statements. In terms of debt structure, the main sources of financing are due to customers, mainly on demand and time deposits (31.9% of all payables) and payables to credit institutions, mainly to – vis-à-vis Crédit Agricole SA as regards the Group’s internal refinancing rules (62.6% of all debts).
The Shareholders’ Meeting of March 17, 2022 approved the payment of a dividend of € 2.72 per share (or 3.65% yield on the average price of 2021). It was paid in June 2022.