Credit Agricole Sa: Proposal to allocate Crédit Agricole S.A.’s 2019 results to reserves’ account
01 Avril 2020 - 8:05PM
Credit Agricole Sa: Proposal to allocate Crédit Agricole S.A.’s
2019 results to reserves’ account
Montrouge, April 1st, 2020
Proposal to allocate Crédit Agricole S.A.’s 2019 results
to reserves’ account
In 2019, Crédit Agricole S.A.’s underlying net
income reached a historical level, at €4,582 million. Underlying
profitability amounted to 11.9%. In this context, the Board of
Directors had set, on 13th February 2020, the dividend proposed at
the General Meeting for the year 2019 at 0.70 euro, up +1.4%
compared to 2018.
Due to Crédit Agricole Group’s structure, 55.9%
of the dividends distributed by Crédit Agricole S.A. are paid to
the Regional Banks, which retain a significant part of their
earnings, in order to support the economies of their territories.
The Group's overall payout ratio thus amounts to 17%.
As a result of a very moderate overall payout
ratio at Crédit Agricole Group level, it has a high level of
solvency (CET1 ratio at 31 December 2019 of 15.9% for Crédit
Agricole Group and at 12.1% for Crédit Agricole S.A., well above
the 2019 CET1 regulatory requirements of 623 and 345 basis points
respectively).
The intention to pay out dividends on 2019
results is no longer compatible with the recommendations of the
European Central Bank expressed on 27th march, which asks banks
under its supervision not to pay dividends as long as the
coronavirus crisis persists and "at least until the beginning of
October 2020". This deadline is however not compatible with
commercial code, which prescribes an annual dividend payment no
later than September 30.
Under these conditions, Crédit Agricole S.A.’s
Board of Directors, consulted in writing on 1 April 2020 pursuant
to the legal provisions on the functioning of the decision-making
bodies during the Covid-19 epidemic, has decided to propose to the
General Assembly of 13 May 2020 the allocation of the entire profit
of 20191 to the reserves’ account. This measure will improve the
CET1 ratios by around 20 basis points for Crédit Agricole Group and
around 60 basis points for Crédit Agricole S.A. During the second
half of 2020, the Board will propose guidelines for distribution to
shareholders. These could consist in the payment of an advance on
dividends pertaining to 2020 results, or in an exceptional
distribution from reserves, which would require the holding of an
Exceptional General Shareholders' Meeting. These decisions have no
impact on the payment of AT1 coupons.
Crédit Agricole Group moreover recalls that it
is fully committed to support and accompany its customers in the
context of the economic crisis resulting from the Covid-19
epidemic, all the while protecting its employees. As early as March
6th, Crédit Agricole announced the implementation of supporting
measures for its customers, in particular to help them find
solutions adapted to their short term cash requirements.
Crédit Agricole continues to work every day in
the interests of its customers and society, by relying on its
universal banking model, which draws its strength from the
diversity of its business lines and its prudent risk
management.
crédit agricole S.A. press
contacts
Charlotte de
Chavagnac + 33 (0)1
57 72 11
17
charlotte.dechavagnac@credit-agricole-sa.frOlivier
Tassain
+ 33 (0)1 43 23 25
41
olivier.tassain@credit-agricole-sa.fr
See all our press releases at: www.credit-agricole.com -
www.creditagricole.info
1 This rule apply also to the other Crédit Agricole S.A.’s
European listed entities.