|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||8.80 - 8.80|
|52-week range||6.48 - 14.62|
|Beta (5Y monthly)||1.80|
|PE ratio (TTM)||8.04|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||24 May 2019|
|1y target est||N/A|
(Bloomberg) -- French lender Credit Agricole SA offered to buy Italy’s Credito Valtellinese for about 737 million euros ($875 million) in cash as consolidation accelerates in European banking.The unsolicited bid of 10.50 euros a share, made through its Italian unit, represents a 21.4% premium to the Nov. 20 closing price, according to a statement from Credit Agricole Monday. The French lender, which took a 5% stake in 2018 in the Italian bank commonly known as Creval, said it has already received a commitment letter from Davide Serra’s Algebris Investments for the sale of that firm’s 5.4% stake.A deal would strengthen Credit Agricole’s position in Italy’s wealthy north, including a doubling of its market share in Lombardy, and consolidate its role as the sixth-biggest retail bank in Italy, with 3 million clients. The offer adds to a series of mergers this year as the economic fallout from the pandemic and low interest rates fuel consolidation, particularly in Italy and Spain, two countries hit hard by the virus.Most deals this year have been domestic as regulatory obstacles to cross-border transactions remain, though Credit Agricole’s bid suggests acquisitions by local units may offer an alternative route. Credit Agricole had been examining the potential acquisition of small and medium-sized banks in Italy since earlier this year, according to people with knowledge of the matter. Targets included Banco BPM SpA as well as Creval.“This is a good deal for Credit Agricole to boost its presence in Italy,” said Stefano Girola a portfolio manager at Alicanto Capital SGR in Milan. “The transaction is well aligned with Agricole’s strategy in Italy, which has always been based on integrating into its platform mid- and small-sized banks where it’s easier for them to implement their product distribution capabilities.”Shares of Creval rose 22% to 10.61 euros at 1:06 p.m. in Milan, suggesting some investors are expecting the offer price may need to be raised. Credit Agricole gained 2.3% in Paris.The French bank already has an extensive presence in the country including retail, corporate and investment banking operations. It has expanded with acquisitions in asset management and retail banking starting in 2007.Italian banking consolidation shifted into high gear earlier this year with Intesa Sanpaolo SpA’s takeover of smaller rival Unione di Banche Italiane SpA. In recent weeks, Italy and UniCredit SpA have been intensifying talks about a takeover of state-controlled lender Banca Monte dei Paschi di Siena SpA, according to people familiar with the matter, while Banco BPM SpA signaled it’d be open to a potential combination with Italian rival BPER Banca SpA.Spanish DealsThe merger wave is also spreading in Spain, where transactions include CaixaBank SA’s agreement to buy Bankia SA and Banco Bilbao Vizcaya Argentaria SA talks on a takeover of Banco Sabadell SA.Credit Agricole in 2018 bought 5% of Creval through its insurance unit and said it could eventually double the holding. It increased its stake to almost 10% in recent months, Giampiero Maioli, the head of the French bank’s Italian operations, said on a conference call. French businessman Denis Dumont until now has been the main shareholder in Creval with a 9.9% stake.The offer to buy Creval follows a deep restructuring of the Italian bank, started in 2018 with a 700 million-euro capital raising that attracted investors including Steadfast Capital Management LP and Algebris. Creval CEO Luigi Lovaglio, previously of UniCredit SpA, is focusing on higher-margin products to help counter the effect of low interest as well as curbing risk and cleaning up balance sheet.The offer is conditional to receiving at least 66.7% shares, Credit Agricole said, adding that it will consider whether to proceed with acceptances of 50% plus one share. The lender expects 150 million euros in annual savings from the deal, Maioli told reporters.In order to fund the transaction, Credit Agricole Italy intends to raise capital from its investors, Maioli said. The unit is majority-owned by Credit Agricole. The French bank said the impact on its CET1 ratio, a key measure of capital strength, will remain below 20 basis points.(Updates shares, adds funding in final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Montrouge, 23 November 2020 CRÉDIT AGRICOLE ITALIA LAUNCHES A CASH VOLUNTARY PUBLIC TENDER OFFER FOR ALL SHARES OF CREDITO VALTELLINESE BY ACQUIRING CREDITO VALTELLINESE, CRÉDIT AGRICOLE ITALIA CONTINUES TO BUILD A LEADING BANKING GROUP IN ITALY, SERVING 3 MILLION CLIENTS AND ITS LOCAL COMMUNITIES Crédit Agricole Italia S.p.A. (“Crédit Agricole Italia”), a 75.6%-owned subsidiary of Crédit Agricole S.A. (“CASA”), today launched a voluntary public tender offer entirely in cash (the “Offer”) for all ordinary shares of Credito Valtellinese S.p.A. (“Credito Valtellinese”), as announced by the communication issued today pursuant to Article 102 of Legislative Decree 24 February 1998, no. 58 and Article 37 of CONSOB Regulation no. 11971 of 14 May 1999. This transaction is notably characterized by: The consolidation of a robust and profitable banking group benefitting from a strengthened local footprint: Combining Credit Agricole Italia and Credito Valtellinese will consolidate the group’s position as #6 retail bank in Italy, committed to best serve its 3 million clients, leveraging on a shared culture of continued support to local communities;Combining two well-performing and robust banks; A significant value creation, benefitting all stakeholders: For Credito Valtellinese’s clients: an even stronger banking group, with an attractive and comprehensive range of financial solutions, benefitting from the entire European-leading bancassurance offering of Crédit Agricole Group already present in Italy;For Credito Valtellinese’s people: a leading financial group and an employer of choice;For Crédit Agricole Italia’s shareholders: an expected Return on Investment above 10% by year 3; A proven track-record of successful integrations by Credit Agricole Italia: Two groups already partners in bancassurance, a distribution network well-known by Crédit Agricole and fitting very well with Crédit Agricole Italia business model;A sustainable growth strategy of Credit Agricole Italia having proved its ability to successfully integrate other banks, as demonstrated by its previous acquisitions in Italy; An attractive price for Credito Valtellinese shareholders: all-cash voluntary tender offer by Crédit Agricole Italia on Credito Valtellinese at €10.50 per share, representing a 53.9% premium to Credito Valtellinese’s 6M VWAP1 and a 21.4 % premium to Credito Valtellinese latest official price calculated as of November 20, 20201. Ariberto Fassati,President of Crédit Agricole Italia "Credito Valtellinese shares with us many of the fundamental values that represent the raison d'être of Crédit Agricole Italia: the rootedness to the territory, the attention to local communities and to the social and entrepreneurial networks, the enrichment of people and the sustainability of the business model. With this integration we are confident that we can create added value for all stakeholders.” Giampiero Maioli,Chief Executive Officer of Crédit Agricole Italia and Head of Crédit Agricole S.A. Group for Italy “With this transaction, Credito Valtellinese’s customers and employees will gain access to the same first-class financial products and services as Crédit Agricole Italia, benefitting from Crédit Agricole Group’s scale, strength, innovative and client-centric culture, and the combined group will continue its strong commitment to supporting Italy and the local communities” Italy is Crédit Agricole’s second domestic market Crédit Agricole Group has a longstanding presence in Italy and as of today serves 4.5 million customers in the country, through more than 1,000 branches (mainly Crédit Agricole Italia, Crédit Agricole FriulAdria and Agos branches), with the support of 14,000 employees locally, providing 15% of Crédit Agricole S.A. total net income group share2, which makes Italy the second domestic market for Crédit Agricole Group. Crédit Agricole in Italy is characterized by: An attractive and fully-fledged customer-focused universal banking model successfully developed over the years: A robust and profitable retail bank through Crédit Agricole Italia (since 2007, formerly Gruppo Bancario Cariparma), serving 2.1m clients, managing €503 billion of loans to customers, €72 billion of customer savings4, and generating €1.9 billion revenues5;Specialized Financial Services (Agos, FCA Bank, Crédit Agricole Leasing);Asset Gathering (Amundi, Crédit Agricole Assurances, Indosuez, etc.);Large Customers (CACIB and CACEIS); Strong partnerships with Italian financial institutions, such as UniCredit in asset management, Banco BPM in consumer finance and Credito Valtellinese in life insurance;A solid track-record of sustainable growth across all the business lines of Crédit Agricole Group. In particular, the acquisitions of Cassa di Risparmio della Spezia in 2010 and, more recently, of Cassa di Risparmio di Rimini, Cassa di Risparmio di Cesena and Cassa di Risparmio di San Miniato, demonstrate Crédit Agricole Italia’s ability to complete complex transactions and the strength of its business model based on the proximity to the territory;A consistent support to local employment and economic dynamism with €78 billion of loans as of 30 September 2020, having hired more than 1,250 employees in Italy since the beginning of 2018;Focus on communities and territories thanks to shareholders Foundations, such as Fondazione Cariparma, Fondazione Carispezia, Fondazione di Piacenza e Vigevano, Fondazione CR di San Miniato and Fondazione CR e Banca del Monte di Lugo, and to the other Foundations that collaborate with Crédit Agricole Italia in its social activities in the territories, such as Fondazione CR di Rimini, Fondazione CR di Cesena and Fondazione Banca del Monte e CR di Faenza. Therefore, Crédit Agricole in Italy is consistently one of the most successful and profitable banking groups, being the #76 largest commercial bank network, the #17 player in consumer finance, the #38 largest asset manager, and the #69 largest player in life bancassurance. Continue building a leading banking group in Italy, serving 3 million clients and its local communities As of September 202010, Credito Valtellinese has total assets on balance sheet of €24 billion (#11 retail bank), of which €16 billion loans to customers11, and €10 billion of customer savings12 (#12 retail bank), and it posted €0.6 billion of revenues in the 2019 full-year result. Credito Valtellinese serves ~0.7 million clients13 through a network of 355 branches (#12 commercial bank network, 1.5% market share at national level) and 3,539 employees. Crédit Agricole and Credito Valtellinese already enjoy a strong partnership, Crédit Agricole Vita, the Italian life insurance subsidiary of the Group being Credito Valtellinese’s exclusive partner in life insurance and its holding company, Crédit Agricole Assurances, being one of the main shareholders of Credito Valtellinese with a 9.8% stake. Therefore, the acquisition of Credito Valtellinese is an extension of Crédit Agricole strategic partnership with Credito Valtellinese, supported by a strong business and cultural fit between the two groups. This transaction is line with Crédit Agricole Italia’s sustainable growth strategy, and will leverage Crédit Agricole Italia’s proved ability to successfully integrate other banks, as demonstrated by its previous acquisitions in Italy. The acquisition of Credito Valtellinese by Crédit Agricole Italia will lead to the creation of a more robust Italian Banking Group benefiting from the financial strength and support, the expertise and product suite of one of the largest and most reputable European banking groups, with significant positive impacts on the economic situation of the relevant territories and in the interests of all the stakeholders. Solid industrial project With the acquisition of Credito Valtellinese, Crédit Agricole Italia aims to consolidate its competitive positioning as the #6 retail bank in the Italian market by AuM + AuC, and become #7 by total assets and by number of clients, achieving a c.5% combined market share at national level (based on number of branches): Presence in the most productive areas of Italy, especially in Lombardy;More than 1,200 branches and 2.8 million clients, with a direct access to European-leading offering of Crédit Agricole Group;Enhanced operational efficiency through cost synergies;Strong asset quality, which will further improve post merger (9M 2020 combined non-performing exposure (“NPE”) ratio pro-forma at 6.6%, with NPE coverage at 54%14, with the intention of Crédit Agricole Italia to actively purse de-risking of the combined entity);Financial strength, further increased by the support of the Crédit Agricole Group, and demonstrated by high solvency15 and strong credit ratings16. The acquisition of Credito Valtellinese represents an ideal growth opportunity for Crédit Agricole Italia, in particular in terms of geographic coverage: Adding critical mass in areas which are complementary and close to the geographies it already serves, and improving local client coverage;Significant strengthening of its presence in Northern Italy (representing ~70% of pro-forma branches);Doubling up of market share in Lombardy (from 3% to more than 6%), where more than 40% of Credito Valtellinese branches are located, becoming the 7th retail bank in the region, which represents a significant improvement into the largest and wealthiest Region in Italy and in particular in Milan;Increase in scale in Piedmont, Marche, Lazio and enter new Regions including the most dynamic metropolitan areas of Sicily, as well as Valle d’Aosta and Trentino. Positive for all stakeholders of Credito Valtellinese Credito Valtellinese’s clients will gain access to an attractive and comprehensive range of financial solutions, benefitting from the entire European-leading bancassurance offering of Crédit Agricole Group already present in Italy. At the same time, Credito Valtellinese’s employees join a leading financial group and an employer of choice in Italy. The combined group will continue its strong commitment to supporting the Italian economy and the local communities, through proximity to the territory. Significant value creation for Crédit Agricole Crédit Agricole Italia expects to generate a Return on Investment estimated above 10% by year 3, solely including cost and funding synergies: Immediate value creation through economies of scale and funding synergies: cost synergies and economies of scale are expected, and will allow for further investments in digitalization, while lower funding cost will be achieved through optimized asset & liability management and supported by Crédit Agricole S.A. strong credit ratings;Long term value creation from increased product offering: revenue synergies, mainly deriving from an increased productivity within Credito Valtellinese’s commercial networks, the implementation of Crédit Agricole Italia’s distribution know-how, the enhancement of Credito Valtellinese’s commission-related profitability and the progressive deployment of Crédit Agricole European-leading product suite over the medium-term;Minimum integration risk thanks to Crédit Agricole Italia’s proven track-record of successful integrations and experience in previous comparable transactions. Crédit Agricole will continue deploying the “Raison d’être” of the Group: Excellence in customer relations, by investing in relational and operational excellence, focusing all its businesses on customer satisfaction and enhancing specialization of the Corporate segment on high value products and services;Empowered teams for customers, by attracting and retaining the best talents, developing individual empowerment of our people to ensure the best services to Customers and promoting ethically and socially responsible behaviours;Commitment to society, by fostering the attractiveness and economic development of local communities, keeping being a responsible player in the environment protection and sustaining the Foundations shareholders of Crédit Agricole Italia in their social activities. Drawing on its successful experience of past integrations (in particular with Cassa di Risparmio di Rimini, Cassa di Risparmio di Cesena and Cassa di Risparmio di San Miniato), Crédit Agricole Italia is confident in its ability to smoothly integrate Credito Valtellinese with minimum integration risk. In the specific case of Credito Valtellinese, Crédit Agricole Italia intends to achieve efficiency gains on a voluntary basis only, following a collaborative and inclusive integration process leveraging on recent experience, and a well-defined governance and monitoring structure, with a focus on the inclusion of Credito Valtellinese’s employees. Transaction structure and consideration The Offer consists in a voluntary public cash tender offer by Crédit Agricole Italia on all the ordinary shares of Credito Valtellinese. The Offer price equals to €10.50 for each Credito Valtellinese’s share. This corresponds to a total investment of €737mm by Credit Agricole Italia to acquire 100% of Credito Valtellinese’s shares. The following premiums are implied with reference to the arithmetic means, weighted for the daily volumes, of the official prices of Credito Valtellinese’s Shares in the relevant periods: A 21.4% premium to Credito Valtellinese’s spot price as of November 20, 2020A 42.0% premium to the 3M VWAP of Credito Valtellinese as of November 20, 2020A 53.9% premium to the 6M VWAP of Credito Valtellinese as of November 20, 2020A 50.2% premium to the 6M VWAP of Credito Valtellinese as of February 21, 2020, pre Covid-19 outbreak Crédit Agricole Italia has already received a commitment letter from Algebris, for the sale to Crédit Agricole Italia of a stake in Credito Valtellinese equal to ca. 5.4% of the share capital, subject to regulatory approval. In the context of the Offer, Crédit Agricole Assurances (a subsidiary of Crédit Agricole S.A.) will sell to Crédit Agricole Italia its stake in Credito Valtellinese, equal to ca. 9.8% of the share capital. After the Offer, Crédit Agricole Italia intends to proceed with the merger by incorporation of Credito Valtellinese in Crédit Agricole Italia to allow an effective integration of its activities with those of Credito Valtellinese. The Offer will be subject to Crédit Agricole Italia achieving at least a 66.7% of Credito Valtellinese’s voting share capital, with Crédit Agricole Italia maintaining the discretion to waive the aforementioned condition provided that at least 50% of the voting capital of Credito Valtellinese +1 share is acquired. Other conditions would include – inter alia – antitrust authorities’ unconditional authorizations and Credito Valtellinese not adopting any defensive measures (even if authorized at Credito Valtellinese’s shareholders meeting). Consistently with the objectives and industrial rationale of the Offer: In the event that, as a result of the Offer, Crédit Agricole Italia acquires more than 90% of the shares of Credito Valtellinese, Crédit Agricole Italia will not carry out actions aimed at restoring the minimum required conditions of free-float to ensure the ordinary trading of Credito Valtellinese shares and this will entail the delisting of the Credito Valtellinese’s shares;In any event, following the Offer, Crédit Agricole Italia intends to take all necessary steps and actions to proceed with the merger by incorporation of Credito Valtellinese as a mean to foster the integration between the two banks and maximize value creation consistently with Crédit Agricole Italia’s strategy implemented in recent years (which encompassed the merger into Crédit Agricole Italia of Cassa di Risparmio di Rimini, Cassa di Risparmio di Cesena and Cassa di Risparmio di San Miniato in 2018 and of Cassa di Risparmio della Spezia in 2019). Crédit Agricole Italia will submit the tender offer document to Consob by the first two weeks of December 2020, pursuant to Article 102, paragraph 3, of the Italian Consolidated Financial Act. Within the same term, Crédit Agricole Italia will submit to the competent regulatory Authorities the communications and applications for the regulatory authorizations needed. Following the obtainment of the regulatory authorization, expected for Q1 2021, the Offer Document will be published following the approval of the Offer Document by Consob, expected in the month of March / April 2021. The end of the tender offer period and the settlement of the offer is expected to occur in May 2021. A strategic acquisition in line with Crédit Agricole S.A.’s medium-term ambition The acquisition of Credito Valtellinese will strengthen Crédit Agricole competitive positioning in Italy, its second domestic market, demonstrating our continued and longstanding commitment in supporting our clients and local communities in Italy, and to being an employer of choice in the country. Crédit Agricole S.A. expects the transaction to be accretive to its earnings per share by 2022, and to achieve a Return on Investment above 10% by year 3, based only on costs and funding synergies. It will also allow for long term value creation through progressive cross-selling with Crédit Agricole’s business lines, which is an important pillar of our strategy. Upon completion of the transaction, the preliminary estimated negative impact on Crédit Agricole S.A.’s Common Equity Tier 1 ratio is expected to remain below 20bps. Drawing on Crédit Agricole Italia’s successful experience of past integrations in similar transactions in Italy, Crédit Agricole S.A. is confident in Crédit Agricole Italia’s ability to smoothly integrate Credito Valtellinese, with minimum integration risk. *** In relation to the Offer, Crédit Agricole Italia is advised by J.P. Morgan Securities plc and Crédit Agricole Corporate & Investment Bank as financial advisors, and BonelliErede, as legal advisor. *** Giampiero Maioli, Head of Crédit Agricole S.A. Group for Italy, Executive Director of Crédit Agricole Italia, Jérôme Grivet, Deputy General Manager, Chief Financial Officer, and Philippe Brassac, Chief Executive Officer of Crédit Agricole S.A. will host a conference call in English to present the transaction on Monday 23rd November at 9:00 (London time). Live webcast : https://edge.media-server.com/mmc/p/4bw9ceqe CRÉDIT AGRICOLE ITALIA CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2020 – TOTAL ASSETS Items (€thousands) 30.09.2020 31.12.2019 Delta 10. Cash and cash equivalents 291,458 370,059 (78,601) 20. Financial assets measured at fair value through profit or loss (IFRS 7 par. 8 lett. a)) 151,415 125,010 26,405 a) financial assets held for trading; 90,553 97,400 (6,847) b) financial assets designated at fair value; - - - c) other financial assets mandatorily measured at fair value 60,862 27,610 33,252 30. Financial assets measured at fair value through other comprehensive income (IFRS 7 par. 8 lett. h)) 3,054,914 3,068,244 (13,330) 40. Financial assets measured at amortized cost (IFRS 7 par. 8 lett. f)) 66,023,110 56,343,788 9,679,322 a) loans to banks 7,583,797 4,743,595 2,840,202 b) loans to customers 58,439,313 51,600,193 6,839,120 50. Hedging derivatives 1,059,286 759,816 299,470 60. Fair value change of financial assets in macro-hedge portfolios (+/-) 140,506 119,729 20,777 70. Equity investments 20,483 20,483 - 80. Technical insurance reserves reassured with third parties - - - 90. Property, Plant and Equipment 960,347 1,017,849 (57,502) 100. Intangible assets 1,866,743 1,912,606 (45,863) - of which goodwill 1,575,536 1,575,536 - 110. Tax assets 1,411,206 1,504,346 (93,140) a) current 278,571 304,325 (25,754) b) deferred 1,132,635 1,200,021 (67,386) 120. Non-current assets held for sale and discontinued operations 5,207 - 5,207 130. Other assets 529,754 412,429 117,325 Total assets 75,514,429 65,654,359 9,860,070 CRÉDIT AGRICOLE ITALIA CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2020 – TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY Items (€thousands) 30.09.2020 31.12.2019 Delta 10. Financial liabilities measured at amortized cost (IFRS 7 par. 8 lett. g)) 65,094,410 56,003,022 9,091,388 a) due to banks 11,554,925 6,105,259 5,449,666 b) due to customers 43,125,022 40,795,173 2,329,849 c) debt securities issued 10,414,463 9,102,590 1,311,873 20. Financial liabilities held for trading 102,738 81,980 20,758 30. Financial liabilities designated at fair value (IFRS 7 par. 8 lett. e)) - - - 40. Hedging derivatives 616,752 509,730 107,022 50. Fair value change of financial liabilities in macro-hedge portfolios (+/-) 485,002 421,173 63,829 60. Tax liabilities 211,209 275,107 (63,898) a) current 125,605 184,715 (59,110) b) deferred 85,604 90,392 (4,788) 70. Liabilities associated with non-current assets held for sale and discontinued operations - - - 80. Other liabilities 1,864,220 1,316,885 547,335 90. Employee severance benefits 119,575 123,894 (4,319) 100. Provisions for risks and charges 299,495 335,516 (36,021) a) financial guarantees and other commitments 32,858 33,656 (798) b) post-employment and similar obligations 34,601 37,325 (2,724) c) other provisions for risks and charges 232,036 264,535 (32,499) 110. Technical reserves - - - 120. Valuation reserves (60,404) (62,199) 1,795 130. Redeemable shares - - - 140. Equity instruments 715,000 715,000 - 150. Reserves 1,653,170 1,379,853 273,317 160. Share premium reserve 3,117,848 3,117,840 8 170. Capital 979,235 979,233 2 180. Treasury shares (+/-) - - - 190. Minority interests (+/-) 146,851 143,256 3,595 200. Profit (Loss) for the year 169,328 314,069 (144,741) Total liabilities and equity 75,514,429 65,654,359 9,860,070 CRÉDIT AGRICOLE ITALIA RECLASSIFIED CONSOLIDATED INCOME STATEMENT AS AT 30 SEPTEMBER 2020 Items (€thousands) 30.09.2020 30.09.2019 Delta Net interest income 730,779 761,046 (30,267) Net fee and commission income 628,704 669,540 (40,836) Dividends 10,438 11,331 (893) Profit (loss) on trading activities 9,361 4,791 4,570 Other operating income (expenses) 10,598 5,509 5,089 Net operating income 1,389,880 1,452,217 (62,337) Personnel expenses (529,657) (546,871) 17,214 Administrative expenses (239,627) (240,072) 445 Amortization of intangible assets anddepreciation of property, plant and equipment (129,579) (121,355) (8,224) Operating expenses (898,863) (908,298) 9,435 Operating margin 491,017 543,919 (52,902) Impairments of Godwill - - - Net provisioning for risks and charges (5,114) (7,016) 1,902 Net impairments of loans (304,873) (181,204) (123,669) Net Impairment of financial instruments (5,477) (237) (5,240) Profit (loss) on other investments 66,262 428 65,834 Profit (loss) on continuing operations before taxes 241,815 355,890 (114,075) Taxes on income from continuing operations (66,003) (106,770) 40,767 Profit (Loss) after tax from discontinued operations - - - Net profit (loss) for the year 175,812 249,120 (73,308) Net profit (loss) for the year attributable to minority interests (6,484) (9,382) 2,898 Net profit (loss) attributable to the Parent Company 169,328 239,738 (70,410) CRÉDIT AGRICOLE ITALIA CREDIT QUALITY AS AT 30 SEPTEMBER 2020 Items (€thousands) 30.09.2020 Gross exposure Total adjustments Net exposure Coverage % - Bad loans 1,907,554 1,353,013 554,541 70.9% - Unlikely to Pay 1,515,094 568,911 946,183 37.5% - Past due 61,091 5,345 55,746 8.7% Non-performing loans 3,483,739 1,927,269 1,556,470 55.3% Performing loans - stage 2 2,749,974 193,199 2,556,775 7.03% Performing loans - stage 1 46,183,684 86,537 46,097,147 0.19% Performing loans 48,933,658 279,736 48,653,922 0.57% Loans to Customers 52,417,397 2,207,005 50,210,392 4.21% Securities at amortized Cost 8,238,396 9,475 8,228,921 0.1% Total Loans to Customers 60,655,793 2,216,480 58,439,313 3.7% CRÉDIT AGRICOLE ITALIA CAPITAL AS AT 30 SEPTEMBER 2020 Items (€millions) 30.09.20 30.06.20 31.03.20 31.12.19 Delta 09/20 vs 06/20 OWN FUNDS Common Equity Tier 1 Capital 3,644 3,620 3,525 3,562 24 Tier 1 Capital 4,372 4,349 4,254 4,288 23 Total Capital 5,230 5,209 5,120 5,162 21 PRUDENTIAL SUPERVISORY REQUIREMENTS Total Risk-weighted assets 28,533 28,734 29,452 28,550 -201 - of which credit risk 25,351 25,559 26,207 25,286 -208 CAPITAL ADEQUACY RATIOS Common Equity Tier 1 ratio 12.77% 12.60% 11.97% 12.48% 0.17% Tier 1 ratio 15.32% 15.14% 14.44% 15.02% 0.19% Total Capital ratio 18.33% 18.13% 17.38% 18.08% 0.20% CRÉDIT AGRICOLE ITALIA DIRECT AND INDIRECT FUNDING AS AT 30 SEPTEMBER 2020 Items (€thousands) 30.09.2020 31.12.2019 Delta - Deposits 1,353,455 1,687,289 (333,834) - Current and other accounts 41,279,350 38,635,246 2,644,104 - Other items 257,887 285,139 (27,252) - Repurchase agreements - - - Due to customers 42,890,692 40,607,674 2,283,018 Debt securities issued 10,414,463 9,102,590 1,311,873 Total direct funding 53,305,155 49,710,264 3,594,891 Indirect funding 71,926,138 71,294,531 631,607 Total funding 125,231,293 121,004,795 4,226,498 - Asset management products 16,994,843 17,316,598 (321,755) - Insurance products 21,068,325 20,682,863 385,462 Total assets under management 38,063,168 37,999,461 63,707 Assets under administration 33,862,970 33,295,070 567,900 Indirect funding 71,926,138 71,294,531 631,607 CRÉDIT AGRICOLE ITALIA RETAIL NETWORK AS AT 30 SEPTEMBER 2020 Region Branches Region Branches Campania 49 Marche 8 CE 10 AN 4 NA 38 FM 1 SA 1 MC 1 Emilia Romagna 243 PU 2 BO 13 Piemonte 50 FC 30 AL 10 FE 4 AT 1 MO 13 BI 1 PC 45 CN 1 PR 71 NO 5 RA 22 TO 30 RE 12 VB 1 RN 33 VC 1 FVG 81 Toscana 100 GO 3 AR 5 PN 28 FI 36 TS 5 GR 1 UD 45 LI 7 Lazio 40 LU 7 FR 2 MS 14 LT 1 PI 22 RI 1 PO 2 RM 35 PT 4 VT 1 SI 2 Liguria 59 Umbria 8 GE 12 PG 8 IM 5 Veneto 80 SP 39 BL 1 SV 3 PD 18 Lombardia 154 RO 3 BG 7 TV 20 BS 4 VE 27 CO 11 VI 7 CR 23 VR 4 LC 2 Totale 872 LO 6 MB 6 MI 44 MN 17 PV 24 VA 10 This press release does not constitute or form any part of an offer to purchase, or solicitation of an offer to buy, any securities. Any such offer or solicitation will be made only pursuant to an official offer documentation of the offeror approved by the appropriate regulators. Restrictions may apply to the release, publication or distribution, in whole or in part, directly or indirectly, of any such offer documentation under the law or regulations applicable in certain jurisdictions. Recipients of the offer are solely responsible for complying with such laws and regulations. The offeror will extend the offer in the United States of America in reliance on the Tier I exemption set forth in Rule 14d-1(c) under the U.S. Securities Exchange Act of 1934, as amended, and is not required to comply with Regulation 14E promulgated thereunder. The offeror and its affiliates have reserved the right to purchase shares outside of the offer, to the extent permitted by applicable law. Profile of Crédit Agricole Italia The Crédit Agricole Group, the world's 10th largest bank with 10.5 million members, is present in 47 countries, including Italy, which is its second domestic market. Here it operates with all the business lines: from the commercial bank to consumer credit, from corporate & investment banking to private banking and asset management, up to the insurance sector and services dedicated to wealth management. Collaboration between the retail network and other business lines guarantees extensive and integrated operations to 4.5 million active customers, through 1,300 branches and 14,000 employees, with a growing support for the economy amounting to over 78 billion euros in financing.The Group is composed of, not only of the Crédit Agricole Italia Banking Group, but also of the Corporate and Investment Banking (CACIB), the Specialised Financial Services (Agos, FCA Bank), Leasing and Factoring (Crédit Agricole Leasing and Crédit Agricole Eurofactor), Asset Management and Asset Services (Amundi, CACEIS), Insurances (Crédit Agricole Vita, Crédit Agricole Assicurazioni, Crédit Agricole Creditor Insurance) and Wealth Management (CA Indosuez Wealth Italy and CA Indosuez Fiduciaria). www.credit-agricole.it CRÉDIT AGRICOLE S.A. PRESS CONTACT Charlotte de Chavagnac + 33 1 57 72 11 17 firstname.lastname@example.orgOlivier Tassain + 33 1 43 23 25 41 email@example.com Find our press release on: www.credit-agricole.com - www.creditagricole.info Crédit_Agricole Groupe Crédit Agricole créditagricole_sa External Relations AreaCrédit Agricole ItaliaTel. 0521.21.2826 / 2846 / 2801Elisabetta Usuelli – firstname.lastname@example.orgVincenzo Calabria – email@example.com Investor Relations: Crédit Agricole ItaliaGiuseppe Ammannato - Giuseppe.Ammannato@credit-agricole.it 1 Source: Factset, official prices as of 20 November 2020 2 9 months 2020, Net income Group share 3 As of September 2020, net figures excluding securities, for reference contribution to Crédit Agricole S.A. total loans stands at €46 billion 4 Asset under management and asset under custody 5 Full year 2019 6By # of branches; 7 Internal data, AGOS and FCA source ASSOFIN; 8 Source: Assogestioni; 9 Source: IAMA consulting; 10 Retail bank rankings based on publicly available data and internal estimate for a selected sample of Italian retail banks 11 Loans excluding government bonds and loans and receivables with customers classified under non-current assets held for sale 12 Asset under management and asset under custody 13 Longstanding relationships with Retail and SME clients, as per Credito Valtellinese Business Plan 2019-2023 of June 18, 2019 14 Coverage including provisioning on performing loans at 63%, 55% and 62% in Q3 2020 for Crédit Agricole Italia, Credito Valtellinese, and Crédit Agricole Italia PF, respectively 15 Crédit Agricole Group standing at 16.7% in September 2020, and Crédit Agricole Italia at 12.8%, Credito Valtellinese being at 17.2% 16 LT counterparty risk, Crédit Agricole S.A. being rated AA- for S&P, Aa2 by Moody’s and AA- by Fitch, Crédit Agricole Italia being rated Baa1 by Moody’s, Credito Valtellinese being rated Ba2 by Moody’s. All ratings based on counterparty rating Attachment 2020 11 23 - Project Giulia - Press Release vFINAL- ENG CASA
(Bloomberg Opinion) -- The U.K. government is finally adding green to the shades of gilts available to fixed-income investors. It’s unfashionably late to a party that’s been in full swing for several years. And its tardiness means a missed opportunity for the City of London to dominate an area of finance that will only increase in importance.Sales of green bonds — debt whose proceeds are used to finance environmentally friendly projects — have soared in recent years. Asset management firms are under increasing pressure from customers to demonstrate that their capital isn’t being allocated to activities that damage the planet, so there’s a ready source of demand. Pacific Investment Management Co., for example, launched a bond fund last month that it said was dedicated to finding “the likely winners of the transition to a net zero carbon economy.”Other nations have been quicker than the U.K. to take advantage of that growing appetite. France has led the pack, with a bond it first sold in January 2017 now the biggest in the market at more than 27 billion euros ($32 billion). In September, Germany’s debut green bond attracted 33 billion euros of bids for 6.5 billion euros of 10-year securities. The European Union has announced that green debt will comprise about 225 billion euros of the 750 billion euros it plans to raise for its pandemic recovery fund.JPMorgan Chase & Co. dominates the league table of green bond underwriters, managing about 6.5% of 2020’s worldwide sales. But French banks fill out the next two of the top three slots, with BNP Paribas SA and Credit Agricole SA coming in second and third, respectively, each with about 5.3% of this year’s deals. London-based banks Barclays Plc and HSBC Holdings Plc trail in fourth and fifth place, each with less than 4.5% of the new issues business.The City has been pleading with the U.K. to enter the green market. Some 32 firms with more than $13 trillion of assets, ranging from Schroders Plc to NatWest Group Plc, backed a “Green+ Gilt” proposal submitted to the Treasury last month. As Britain prepares to leave the EU, London needs to hang on to as much capital markets activity as possible. Moreover, with the U.K. chairing the Group of Seven industrialized nations in 2021, it’s an auspicious time to get its green act together.Issuing green debt might even save the government money as it widens the net of eligible investors particularly from ethical and ESG-related bond funds. But just as importantly it will pave the way for other U.K. borrowers to get with the program and tap into green finance too. For example, Daimler AG raised 1 billion euros by selling 10-year green bonds the day after Germany’s inaugural green government bund. It really does pay to set the right example.In order to attract the biggest following, it makes sense if the U.K. creates a green syndicated benchmark in the five- to 10-year part of the curve as this is where the bulk of corporate issuance is sold. That would maximize the benefits of creating a greener bond world in the City of London as part of its gambit to remain the center of European finance after Brexit.Britain, though, is still dragging its feet. The first green gilt sales won’t arrive until next year, Chancellor of the Exchequer Rishi Sunak said Monday. By then, Germany will already have five-, 10- and 30-year issues in circulation. Sunak’s plans to make it mandatory for companies to disclose their exposure to climate-change risks by 2025 will burnish the U.K.’s green credentials as it prepares to host a series of United Nations meetings on the climate emergency next year. But by delaying further, he’s missing the chance to make London the hub of green capital markets in Europe.So two cheers for the green gilts. They’re an idea whose time is long overdue. If only the government had acted sooner. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.