UNIVERSAL
REGISTRATION
DOCUMENT
2021
1.
PRESENTATION OF
......................................
13
1 . Company History
.....................................................................
17
2 .
2021 Highlights
......................................................................
18
3 .
Crédit Agricole CIB’s Business Lines
...................................
19
2.
ECONOMIC, SOCIAL AND ENVIRONMENTAL
INFORMATION
...........................................
23
1.
Our CSR strategy: progressive actions driven by
employees’ involvement
........................................................
26
2.
Promoting an ethical culture
...............................................
28
3.
Incorporating the challenges of climate change
.............
32
4.
Helping our clients to meet their social, environmental
and solidarity related challenges
........................................
37
5.
Ambition in terms of human resources: strengthening
autonomy and empowerment
.............................................
53
6.
Promoting the economic, cultural and social
development of the host country
.......................................
66
7.
Limiting our direct environmental impact
.........................
68
3.
CORPORATE GOVERNANCE
........................
71
1 .
Board of Directors’ report on corporate governance
......
75
2 .
Composition of the Executive Committee and the
Management Committee
.....................................................
127
4.
2021 BUSINESS REVIEW AND FINANCIAL
INFORMATION
.........................................
129
1.
Overview of Crédit Agricole CIB group’s financial
Information
..............................................................................
133
2.
Information on the financial statements of
Crédit Agricole CIB (S.A.)
...................................................
144
5.
RISKS AND PILLAR 3
................................
149
1. Risk factors
..............................................................................
152
2. Risk management
.................................................................
162
3. Basel III Pillar 3 disclosures
................................................
203
6.
CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2021
..............................
247
1. General framework
...............................................................
250
2. Consolidated financial statements
....................................
255
3.
Notes to the consolidated financial statements
............
263
4.
Statutory Auditors’ report on the consolidated financial
statements (For the year ended 31 December 2021)
....
371
7.
PARENT-COMPANY FINANCIAL STATEMENTS
AT 31 DECEMBER 2021
..............................
379
1.
Crédit Agricole CIB (S.A.) financial statements
..............
382
2. Notes to the parent-company financial statements
....
385
3.
Statutory Auditors’ reporton the financial
statementsYear ended 31 December 2021
......................
416
8.
GENERAL INFORMATION
..........................
423
1.
Articles of association effective at
31 December 2021
.................................................................
426
2. Information about the company
.......................................
432
3.
Statutory auditors’ special report on related party
agreements
............................................................................
434
4. Responsibility statement
....................................................
441
5. Statutory auditors
...............................................................
442
6. Cross-reference table
..........................................................
443
9.
GLOSSARY
...............................................
447
CONTENTS
UNIVERSAL
REGISTRATION
DOCUMENT
2021
The Universal Registration Document has been filed on 25
th
March 2022 with AMF, as competent authority under Regulation (UE)
2017/1129, without prior approval pursuant to Article 9 of the said regulation.
The Universal Registration Document may be used for the purposes of an offer of securities to the public or admission of securities to
trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal
Registration Document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129.
This is a translation into English of the Universal Registration Document of the Company issued in French and it is available on the
website of the Issuer.
CREDIT AGRICOLE GROUP
47 Countries
10
th
by balance
sheet size
(5)
53 million
CUSTOMERS
9,500
branches
including 7,400 in France
(Regional Banks and LCL)
(1)
Source: Challenge 2021, Crédit Agricole Group scope.
(2)
Internal source: ECO 31 December 2021.
(3)
Source: L’Argus de l’Assurance 2021.
(4)
Source: IPE “Top 500 Asset Managers” June 2021.
(5)
Source: The Banker 2021.
#
1
Private employer
in France
(1)
Financer of the European
economy
(2)
European Union retail bank
based on number of retail
banking customers
European asset
manager
(4)
Insurer in France based
on revenues
(3)
Rankings and key figures
4
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
CRÉDIT AGRICOLE
GROUP
Crédit Agricole Group includes
Crédit Agricole S.A., as well as all
of the Regional Banks and Local Banks
and their subsidiaries.
FLOAT
29.3%
INSTITUTIONAL INVESTORS
7.3%
INDIVIDUAL SHAREHOLDERS
5.1%
EMPLOYEE
SHARE OWNERSHIP PLANS
(ESOPS)
2.8%
(1)
TREASURY SHARES
REGIONAL
BANKS
11.2
million
MUTUAL SHAREHOLDERS
who hold mutual shares in
2,406
LOCAL BANKS
39
REGIONAL BANKS
jointly holding the majority
of Crédit Agricole S.A.’s share capital
through
SAS Rue la Boétie
(2)
HOLDING
44
.5%
HOLDING
55
.5%
Political link
Fédération Nationale
du Crédit Agricole
(FNCA)
Sacam
Mutualisation
100%
25%
LARGE
CUSTOMERS
SPECIALISED FINANCIAL
SERVICES
RETAIL
BANKING
SPECIALISED
ACTIVITIES AND
SUBSIDIARIES
ASSET
GATHERING
AND INSURANCE
(1) Treasury shares, including buybacks of shares in 2021
that will be cancelled in 2022. Once 87,673,241
shares are cancelled, the treasury shares will be non significant
and SAS Rue de la Boétie’s holding will account for about 57%.
(2) The Regional Bank of Corsica, 99.9% owned
by Crédit Agricole S.A., is a shareholder of Sacam Mutualisation.
5
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€
OUR STRATEGIC CHOICES
Distribution of 2021 commercial revenues by solution type
…with more FINANCING ACTIVITIES than pure Capital
Markets ones…
Financial
institutions:
32%
Corporates:
68%
Distribution of 2021 commercial revenues by client segment
GENERATING MORE REVENUES from corporates
than financial institutions,…
…and which has DEVELOPED a strong & coordinated INTERNATIONAL NETWORK
Wide international presence
with more than...
€135
Bn
assets under
management
in wealth management
... PROPOSING A
TAILOR-MADE APPROACH
that enables each of our
customers to manage,
protect and transfer
their wealth as closely as
possible to their aspirations
A CORPORATE AND INVESTMENT BANK...
A WEALTH
MANAGEMENT
OUR BUSINESS MODEL:
FACILITATING OUR CUSTOMERS' BUSINESS
30
markets covered
Structured finance
and commercial bank
Hedging, investment
and advisory
solutions:
30 %
Financing solutions
70%
Capital markets
financing
Crédit Agricole CIB's
phased-in CET1
11.7%
in Crédit Agricole CIB
equity
€26.4 Bn
AN AFFILIATION WITH A STRONG BANKING GROUP
OUR RESOURCES
w
Historical franchise in value
added financing activities:
shipping, infrastructure, real
estate,…
w
Real-asset financing
w
Euro bond issuances
SATISFACTORY LONG-TERM RATINGS
S&P
A+
Stable,
02/02/2022
Moody’s
Aa3
Stable,
12/15/2021
Fitch
AA-
Stable,
10/27/2021
STRONG VALUES
w
Leader in sustainable finance activities and a desire for increasing
commitment: strong CSR commitments
w
Long-term support for our clients to finance the real economy
w
Our employees: our key asset
A HIGHLY DIVERSE STAFF
12,003
including 3,063
in Wealth management
43.8%
women
57%
international
w
Leader in securitization
w
Green and social bonds
w
Syndicated loans
w
Leader positions in distribution
w
Advisory and discretionary
management
RECOGNISED EXPERTISE
6
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Best Trade Finance Bank in Western Europe
(Global Trade Review)
SRI Dealer of the Year
(MTN-I)
Global Bank of the Year -
(Infrastructure Investor)
Chinese Banks & Agencies Dealer of the Year
(MTN-I)
Best arranger of Green & ESG-Linked Loans 2020
(Global Capital)
Best Bank - CFM Indosuez in Monaco
(Global Finance)
CLIENTS
OUR VALUE CREATION
OUR ACHIEVEMENTS WITH OUR STAKEHOLDERS
CRÉDIT AGRICOLE GROUP
(1)
CIVIL SOCIETY
w
MUTUAL ENRICHMENT WITH
THE VILLAGE BY CA START-UPS
w
4
TH
BOOKRUNNER ON GREEN
SOCIAL AND SUSTAINABLE BONDS
w
100% OF CORPORATE CLIENTS
GIVEN A CSR SCORE
w
AN INNOVATIVE APPROACH
IN SERVICE TO OUR CUSTOMERS:
strengthening the customer's relationship and its relevance
3,721 Clients
(in Corporate and Investment Banking)
2,138
Corporate
clients
1,583
Financial institution
clients
€232 Bn
in real-asset
nancing
EMPLOYEES
COMMITMENT AND RESPONSIBILITY
(in Corporate and Investment Banking)
88%
of employees are
proud to work for
Crédit Agricole CIB
86%
recommend
Crédit Agricole CIB
as a good employer
77%
feel that their work
gives them a sense
of personal
accomplishment
ACTIVE POLICY
FOR YOUNG PEOPLE AND WORK/STUDY PARTICIPANTS
(end of period)
299
work/study contracts
51
VIE
208,577
HOURS OF TRAININGS
in FRANCE in 2021
COMMUNITY-MINDED
PHILANTHROPY
With the “Solidaires” programme, we
financially support our employees who
volunteer for organisations
OUR AMBITIONS
(2022 STRATEGIC AMBITION)
Strong ambitions aligned with the project
Crédit Agricole Group:
w
to be the reference bank for sustainable banking;
w
to have an embedded digital and innovation strategy
through an ambitious data plan;
w
to put employees at the heart of the client strategy in line
with the Group's DNA;
w
to implement a realistic growth strategy with ambitious
financial targets;
w
to strenghten our advisory capacity in wealth structuring,
asset allocation and discretionary management mandates
to help our clients in building and transferring of their
assets.
OUR ROLE
w
Supporting
our clients’ asset-backed financing projects
w
Meeting
their cash management and international
business needs as well as those of Receivable & Supply
chain finance solutions
w
Arranging
syndicated loans
w
Offering
risk hedging, financing and investment solutions
involving the market or private investors
w
Advising
our clients in their balances sheet issues
w
Supporting
our clients in managing,structuring,
protecting, and transferring their wealth
AWARDS
€1,604 M
Contribution to CASA net
income group share (30 %)
€5,913 M
NBI
€1,691 M
Net income group share
w
…AND A MODERATE RISK PROFILE
Average VaR 2021
€8 M
w
STRONG GROUP SYNERGIES
w
SOLID FINANCIAL RESULTS…
(1) Crédit Agricole CIB’s contribution to Crédit Agricole S.A. Group’s results.
7
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
CRÉDIT AGRICOLE S.A.
% OF INTEREST
(1)
(1)
Direct percentage of interest held by CASA and its subsidiaries, excluding treasury shares.
ASSET GATHERING
CRÉDIT AGRICOLE
FRENCH
RETAIL BANKING
INTERNATIONAL
RETAIL BANKING
CRÉDIT
AGRICOLE
ASSURANCES
S.A.
AMUNDI
S.A.
CA INDOSUEZ
S.A.
LCL
S.A.
CRÉDIT AGRICOLE
SRBIJA
S.A.
Serbia
AMUNDI ASSET
MANAGEMENT
S.A.
CA Indosuez
Wealth (Europe)
Luxembourg
CFM Indosuez
Wealth
Monaco
CA Indosuez
Wealth (Italy)
CA Indosuez
Wealth (France)
CA Indosuez
Switzerland S.A.
CRÉDIT AGRICOLE
FRIULADRIA
Azqore
CALIT
CREVAL
PREDICA
S.A.
PACIFICA
S.A.
CRÉDIT
AGRICOLE
CREDITOR
INSURANCE
S.A.
CRÉDIT
AGRICOLE
VITA
S.P.A.
Italy
100%
100%
100%
100%
CRÉDIT
DU MAROC
S.A.
Morocco
78,7%
100%
CRÉDIT AGRICOLE
BANK
P.J.S.C.
Ukraine
100%
99.1 %
85%
69%
CRÉDIT AGRICOLE
POL
S.A.
Poland
100%
100%
100%
100%
CRÉDIT AGRICOLE
EGYPT
S.A.E.
Egypt
47.4%
80%
100%
100%
100%
100%
100%
100%
67.8%
95.6 %
75.6%
15.0%
9.3%
4.4%
FOUNDATIONS
SACAM
INTERNATIONAL
SACAM
DÉVELOPPEMENT
100%
CA-CIB
15%
CA LEASING
13.1%
CA-CIB
3.4%
OTHER
GROUP
ENTITIES
INSURANCE
ASSET MANAGEMENT
WEALTH MANAGEMENT
CRÉDIT AGRICOLE
ITALIA
S.P.A.
Italy
100%
SPIRICA S.A.
LA MÉDICALE
S.A.
Amundi SGR
S.P.A.
Italy
100%
Sabadell AM
S.A.
100%
Amundi US Inc.
USA
100%
Amundi
Deutschland
GMBH
Germany
100%
Lyxor AM
SAS
100%
86.4%
CPR AM
S.A.
13.6%
BFT INVESTMENT
MANAGERS
S.A.
100%
94.1%
CRÉDIT
AGRICOLE LIFE
INSURANCE
EUROPE
S.A.
Luxembourg
5.9%
OTHER GROUP
ENTITIES
8
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
8
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
AT 31 DECEMBER 2021
(2) % of control.
Financial transactions between Crédit Agricole S.A. and its subsidiaries are subject to regulated agreements, as the case may be mentionned in the statutory auditor’s report.
Internal mechanisms of Crédit Agricole Group (in particular between Crédit agricole S.A. and the Regional Banks) are detailed in the paragraph “internal financing machanisms”,
CRÉDIT AGRICOLE
SPECIALISED
FINANCIAL
SERVICES
LARGE CUSTOMERS
CORPORATE CENTRE
CRÉDIT AGRICOLE
CONSUMER
FINANCE
S.A.
CRÉDIT AGRICOLE
LEASING &
FACTORING
S.A.
EFL
S.A.
Poland
CRÉDIT
AGRICOLE CIB
S.A.
100%
100%
CACIF
S.A.
FIRECA
INNOVATIONS &
PARTICIPATIONS
S.A.S.
UNI-MÉDIAS
S.A.S.
51%
100%
CACEIS
Corporate Trust
S.A.
100%
SANTANDER
LATAM HOLDING
CACEIS Bank
(Espagne)
S.A.U.
100%
50%
100%
97.8%
2.2%
SACAM
DEVELOPPEMENT
50%
50%
SACAM AVENIR
CAISSE
RÉGIONALE
DE
ORSE
S.C.C.V.
CRÉDIT AGRICOLE-
GROUP
INFRASTRUCTURE
PLATFORM
S.A.S.
19.4%
99.9%
(2)
80.6%
OTHER GROUP
COMPANIES
50%
SACAM
IMMOBILIER
FONCARIS
S.A.
CRÉDIT AGRICOLE
IMMOBILIER
S.A.
50%
100%
50%
REGIONAL
BANKS
CRÉDIT AGRICOLE
PAYMENT
SERVICES
S.A.S.
50%
100%
49%
SACAM
FIRECA
ASSET SERVICING
69.5%
CACEIS
S.A.
%
0
0
1
%
0
0
1
CACEIS Fund
Administration
S.A.
CACEIS Bank
S.A.
AGOS
S.P.A.
Italy
FCA Bank
S.P.A.
Italy
61%
50%
BFORBANK S.A.
9
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
9
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Crédit Agricole Group’s results for 2021 are good and we have
reached the financial targets of our 2022 Medium Term Plan
one year ahead of schedule. This situation is partly due to the
economic environment, with a very low cost of risk stemming
from massive State aid during the crisis. But this situation is
above all structural, because with our powerful, diversified and
adaptable model our revenues have increased very regularly for
the past five years.
Our universal banking model allows us to provide all our clients
with the expertise of an international group with a worldwide
presence. Crédit Agricole CIB contributes to this goal by
demonstrating once again this year that it is a trusted partner
for the Group’s clients.
Our Group project is clear and simple and aims to address envi-
ronmental and societal challenges, as well as the transitions
we need to face. This is why we have designed a real program
plan around con-
crete commitments.
Crédit Agricole CIB
was one of the pio-
neers
in this field. It
was the first bank to
announce a gradual
withdrawal
from
the coal sector, the
first bank to cease
financing non-con-
ventional fossil fuels
and is clearly com-
mitted to its clients’
energy transition.
Our dynamism and
solidity are assets to face the uncertainties that lie ahead,
characterized by a potential resumption of inflation due to the
liquidity injected by public policies during the crisis. In addition
to this inflationary uncertainty there are questions concerning a
possible increase in the cost of risk that could follow the end of
State aid.
The strongest uncertainty however is linked to the situation in
Ukraine, and more generally in Europe as a whole. It might have
considerable consequences for the security of the continent’s
energy supply and for the global energy market. Without
abandoning our commitment to responsible finance focused
on the indispensable energy transition, it is obvious that Crédit
Agricole will adapt to this new context to serve its clients in
accordance with the prevailing imperatives.
PHILIPPE BRASSAC
Chairman of Crédit Agricole CIB’s Board of Directors
Crédit Agricole S.A. Chief Executive Officer
Our Group project is clear
and simple and aims to
address environmental
and societal challenges,
as well as the transitions
we need to face. This is
why we have designed
a real plan-programme
around concrete
commitments.
In 2021, in the context of the continuing health crisis, Crédit
Agricole CIB delivered a strong performance. Its Net Income Group
Share reached approximately EUR 1.7 billion generated by its global
corporate and investment banking and private banking activities.
This is the best result since the 2008 financial crisis.
The complementary nature of our businesses and locations
demonstrated the relevance of our well-balanced model. The
collective work of the entire value chain of our Bank, in contact
with our clients, supporting the transactions carried out for them,
or in the transverse functions, is the strength of our company
and allowed us to maintain and even develop our franchises.
Crédit Agricole CIB maintains its leading positions, remaining #1
in syndicated loans in France and #3 in EMEA with landmark
transactions in every sector.
2022 begins in a particularly dramatic geopolitical environment. Year
after year, month after month, we have demonstrated our ability
to overcome crises by prioritising the protection of our employees
and the high quality service we provide to our clients.
We will pursue this ambitious dynamic to meet the challenges
that lie ahead. First of all the societal challenge: in response to the
climate emergency, we will support our clients in their transition,
particularly their energy
transition, or help them
start this transition if
they have not yet pre-
pared. Secondly, given
the technological and
digital
challenges,
we will speed up the
transformation of our
processes, tools and
solutions. We will con-
tinue to move forward
with our human project
by changing the way
we work, by extending
the
empowerment
approach and by devel-
oping employability and
training to support the transformation of our organisation while
maintaining our identity and values.
In a world that is changing faster than ever, in which crisis follows
crisis, we can rely on the strength of our expertise and the
robustness of our team spirit to continue to embody our mission.
With a clear focus on a simple but essential idea: to be useful every
day to our clients and to society.
JACQUES RIPOLL
Chief Executive Officer of Crédit Agricole CIB
11
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
MESSAGE
from the Chairman and the Chief
Executive Officer
Year after year, month
after month, we have
demonstrated our ability
to overcome crises by
prioritising the protection
of our employees and the
high quality service we
provide to our clients.
We will pursue this
ambitious dynamic to
meet the challenges that
lie ahead.
12
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
PRESENTATION OF
CRÉDIT AGRICOLE CIB
14
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1 .
COMPANY HISTORY
.............................................................
17
2 .
2021 HIGHLIGHTS
..............................................................
18
3 .
CRÉDIT AGRICOLE CIB’S
BUSINESS LINES
....................................................................
19
3.1. FINANCING ACTIVITIES
..............................................................
20
3.2. CAPITAL MARKETS AND INVESTMENT BANKING
...........
21
3.3. CROSS-FUNCTIONAL
..................................................................
22
3.4. WEALTH MANAGEMENT
..........................................................
22
1
CONTENTS
15
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€ million
31.12.2021
31.12.2020
31.12.2019
Crédit
Agricole
CIB
Underlying
CIB
1
Crédit
Agricole
CIB
Underlying
CIB
1
Crédit
Agricole
CIB
Underlying
CIB
1
Net banking income
5,913
5,109
5,934
5,076
5,459
4,699
Gross operating income
2,219
2,113
2,435
2,265
2,037
2,009
Net income Group
Share
1,691
1,553
1,341
1,224
1,553
1,498
1
Restated in NBI for loan hedges in Financing Activities and DVA impacts, FVA liquidity cost, and in 2021 for Secured lending in Capital Market
Activities.
Income
statement
highlights
Summary
€ billion
31.12.2021
31.12.2020
31.12.2018
Total assets
599.7
593.9
552.7
Gross loans to
customers
168.4
144.7
146.1
Assets under
management (in Wealth
Management)
134.6
128.0
132.2
Balance sheet
€ billion
31.12.2021
31.12.2020
31.12.2019
Shareholder's equity
(including income)
26.5
22.6
22.0
Phased-in Tier one
capital
24.0
20.0
20.2
Basel III risk-weighted
assets
133.5
124.1
120.5
Financial structure
Phased-in CET 1 ratio
Phased-in Tier one solvency ratio
Phased-in Overall solvency ratio
Solvency
ratio
Short-term
Long-term
Last rating action
Moody's
Prime-1
Aa3 [stable outlook]
15 December 2021
Standard & Poor's
A-1
A+ [stable outlook]
02 February 2022
Fitch Ratings
F1+
AA- [stable outlook]
27 October 2021
Ratings
31.12.2019
12.1%
16.8%
20.0%
31.12.2020
11.7%
16.1%
19.2%
31.12.2021
11.7%
18.0%
21.0%
16
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Breakdown of net
banking income
1
31.12.2020
31.12.2019
Financing activities
43%
46%
Capital markets and
investment banking
43%
39%
Wealth management
14%
15%
1
Restated in NBI for loan hedges in Financing Activities and DVA impacts, FVA liquidity cost, and in 2021 for Secured lending in Capital Market Activities.
31.12.2021
Wealth
management
14%
Financing
activities
47%
Capital
markets and
investiment
banking
39%
A global presence
(1) Wealth Management contributes overall to 3,063 in 2021, 3,074 in 2020 and 3,169 in 2019.
Breakdown of net
banking income By
Geographical Area
Headcount at end of period
Full-time equivalent
International
29%
2021
31%
2020
34%
2019
France
41%
2021
42%
2020
39%
2019
Europe
30%
2021
27%
2020
28%
2019
International
(1)
6,828
2021
6,636
2020
6,586
2019
France
(1)
5,176
2021
5,042
2020
4,938
2019
TOTAL
12,003
2021
11,678
2020
11,524
2019
1 .
COMPANY HISTORY
1875
Creation of
Banque de l’Indochine
1894
Law allowing creation of
the first “Sociétés de
Crédit Agricole”
, later entitled Caisses Locales
(“Local Banks”)
1945
Nationalisation
of Crédit Lyonnais
1975
Merger of Banque de Suez and Union des Mines
with Banque d’Indochine
to form the
Banque Indosuez
1996
Acquisition of Banque Indosuez
by Crédit Agricole one of the world’s
top 5 banking groups, to create
international investment banking arm
1999
Privatisation
of Crédit Lyonnais
2003
Successful
mixed takeover bid
on Crédit Lyonnais by Crédit Agricole S.A.
06 FEBRUARY 2010
Calyon changes its name and becomes
Crédit Agricole Corporate and Investment Bank
1863
Creation of
Crédit Lyonnais
1885
Creation of the
first local fund
in Poligny,
Jura
1920
Creation of
Office National de Crédit Agricole,
that became the Caisse Nationale
de Crédit Agricole
(CNCA) in 1926
1959
Creation of
Banque de Suez
1988
CNCA becomes a public limited company
owned by Regional Banks and employees
(“Mutualisation”)
1997
The Caisse nationale de Crédit Agricole consolidates
within
Crédit Agricole Indosuez
its existing international, capital markets and corporate
banking activities
2001
CNCA changes its name to
Crédit Agricole S.A.
and goes public on 14 December 2001
2004
Creation of
Calyon
, the new brand and corporate
name of the Crédit Agricole Group’s financing and
investment banking business, through a partial transfer
from Crédit Lyonnais to Crédit Agricole Indosuez
Chapter 1 – Presentation of Crédit Agricole CIB
2021 HIGHLIGHTS
18
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
2 .
2021 HIGHLIGHTS
(1)
Underlying CIB
(2)
Source: Refinitiv
(3)
Source: Refinitiv R17
(4)
Source: Refinitiv N1
(5)
Source: Bloomberg
(6)
Underlying CIB
The year 2021 was again largely impacted by the spread of the
Covid-19 pandemic, which continued to affect almost all of the
world’s economies (lockdown strategies, slow recovery in hard-
est-hit sectors such as tourism and aviation, deployment of vac-
cination campaigns). As a result, the European Central Bank’s
(ECB) budgetary and monetary support policies continued to
shore up economic performances, on the decline until the first
quarter (eurozone GDP down -0.3%), with net asset purchases
under the Pandemic Emergency Purchase Programme (PEPP)
and Asset Purchase Programme (APP) of €1,850 billion and €20
billion respectively, while also maintaining abundant liquidity through
refinancing operations (TLTRO III). France and the eurozone in
general withstood the constraints caused by the crisis, leading to
faster-than-expected economic momentum with growth of +2%
and, starting in the third quarter, a recovery in the manufacturing
sector and business investment buoyed by strong demand for
manufactured goods and the European funds for stimulus mea-
sures. At the same time, however, inflation accelerated and expec-
tations continued to rise as demand made a comeback, driven by
the ongoing normalisation of health conditions and the business
recovery. By the end of the year, the economy was going full-force:
the French GDP registered a growth rate at +7% for the full-year
2021, a 52-year record. And with a rate of 5% year-on-year in
December, the expectation of longer-than-anticipated inflation
took root in the region.
The financial markets were hurt at the end of the year by a strong
wait-and-see attitude among clients, mainly due to the rapid spread
of the Omicron variant, while normalisation was taking hold.
Against this backdrop, Crédit Agricole CIB’s revenues remained
high, up +1%
(1)
compared to 2020. The excellent commercial per-
formance of all Corporate Banking businesses (+9% compared
to 2020) offset the decline recorded by market activities (-8%
compared to 2020). The Bank held on to its leading positions by
remaining at the first place of syndication activities in France
(2)
and
third place in the EMEA
(3)
. With the market still normalising, Crédit
Agricole CIB consolidated its leading positions in bond issues,
ranking fifth on the All Bonds in Euro worldwide market
(4)
, fourth in
the Global Green and Sustainability Bonds
(5)
ranking, and focusing
on a specific service for each of its clients in their transition to green
and social responsibility.
Once again this year, Crédit Agricole CIB demonstrated the com-
plementarity of its business lines and the relevance of its business
model as a bank serving its clients and the economy as a whole.
At end-December 2021, the Bank maintained its organic growth
and investment strategies. Crédit Agricole CIB’s cost/income
ratio excluding SRF stands at 52.9%
(6)
, below the MTP target
(< 55%). Human and Societal projects are also prioritised for the
Group in today’s new post-Covid environment, through employee
support programmes, continued leadership in green and sustain-
able financing, and major societal commitments. For example,
Crédit Agricole CIB helped the European Commission launch of
the world’s largest green bond issue under the NextGenerationEU
(NGEU) programme and signed an agreement with Enel S.p.A, the
leader in private-sector renewable energy production, to complete
the energy transition. The Group is also developing a network
of Sustainable Finance coordinators in all its business lines and
support functions in order to adapt its organisation to sustainable
finance and the energy transition.
Chapter 1 – Presentation of Crédit Agricole CIB
CRÉDIT AGRICOLE CIB’S BUSINESS LINES
19
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
3 .
CRÉDIT AGRICOLE CIB’S BUSINESS LINES
•
Aircraft and
rail transport
•
Shipping
financing
•
Real estate and
hotels
•
Project finance
& LBO
•
Telecom
•
Cash management
•
Transactional
commodity
finance
Structured
finance
Commercial
Banking
•
Syndicated loans
•
International trade
financing...
•
Credit
•
Interest rate
derivatives
& Secured lending
•
Structuring and product
development
•
Foreign exchange
Global
Markets Division
Treasury
division
Investment
Banking
•
Advisory activities
related to stocks and
securities issuance
•
Equity Solutions activities
(Structuring and
selling
transactions
involving equity
derivatives)
•
Activities dedicated to
mergers and acquisitions
•
Tailored-made financing
transaction
•
Bank short term
refinancing
•
Short term liquidity
management
COVERAGE
(CROSS-
FUNCTIONAL)
WEALTH MANAGEMENT
F
I
N
A
N
C
I
N
G
A
C
T
I
V
I
T
I
E
S
C
A
P
I
T
A
L
M
AR
K
E
T
S
A
N
D
I
N
V
E
S
T
M
E
N
T
B
A
N
K
I
NG
Chapter 1 – Presentation of Crédit Agricole CIB
CRÉDIT AGRICOLE CIB’S BUSINESS LINES
20
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
3.1. FINANCING ACTIVITIES
The Financing activities includes Structured Finance and Commercial Banking. It posted underlying net banking income
(1)
of €2,775 million in 2021,which represents 54.3% of CIB’s underlying Net banking income
(1)
.
(1) Restated for loans hedges for -€18m in Financing activities and DVA impacts, FVA liquidity cost and secured lending for +€6m in Capital Markets and investment banking.
Structured Finance
The Structured Finance business line generated underlying NBI
(1)
of €1.306 million in 2021, i.e. 47.1% of the Corporate Banking
division’s underlying NBI
(1)
.
The Structured Finance business (SFI) consists in initiating, struc-
turing and financing investment transactions in France and abroad,
often backed with assets as collateral (aircraft, boats, corporate real
estate, commodities, etc.) along with complex and structured loans.
The Structured Finance business has historically been a strong
point for Crédit Agricole CIB, with positions in the top 5 worldwide
for certain products.
SFI strives to maintain excellence in the quality of services provided
and to optimise consumption of RWA and liquidity by improving
asset rotation and diversifying distribution channels.
ASSET FINANCE GROUP
Aircraft and rail transport
Operating for more than thirty-five years in the aeronautics sector,
and boasting an excellent reputation in the markets, Crédit Agricole
CIB has always focused on the long-term by striving to establish
longstanding relationships with major airlines, airports and compa-
nies providing air transport-related services (maintenance, ground
services, etc.) in order to understand their priorities in terms of
business activity and financing needs.
Crédit Agricole CIB has been active in the rail industry in New York
and Paris for many years and is continuing to expand its offering
to Europe.
Shipping financing
For thirty years, Crédit Agricole CIB has financed ships for French
and foreign shipowners, building up solid expertise and a world-
wide reputation. The business line supports a modern and diver-
sified fleet of more than 1,100 ships for international shipowners.
Real Estate and hotels
The Real Estate and Hotels Division operates in 10 countries. Crédit
Agricole CIB advises sector professionals upstream of their financial
issues, as well as companies and institutions investors interested
in having their properties appraised.
ENERGY & INFRASTRUCTURE GROUP
Natural Resources, Infrastructure and Electricity
Crédit Agricole CIB provides financial advice and non-recourse
credit arrangements for new projects or privatisations. The banking
and bond financing put in place involve commercial banks, export
credit agencies and/or multilateral organisations.
This activity operates in natural resources (oil, gas, petrochemicals,
mines and metal bashing), electricity generation and distribution,
environment services (water, waste treatment) and infrastructure
(transport, hospitals, prisons, schools and public services).
The business line operates worldwide in a dozen of regional centres
of expertise.
JV LEVERAGE
In 2019, the Acquisition Finance, Telecom and DCM/High Yield
teams were combined to better serve private equity and corporate
clients basing their development on significant leverage.
In collaboration with Investment Banking, the services offer cover
all stages of their development: raising capital and bank or bond
debt, acquisition of target companies, buying and selling consulting,
IPOs, interest rate products.
Crédit Agricole CIB has been advising and financing companies in
the Telecom, Media & Technology sector as well as private equity
companies for more than thirty years.
Commercial Banking
For full year 2021, the Commercial Banking business line recorded
underlying net banking income
(1)
of €1,470 million, which rep-
resents 52.9% of Financing activities’ underlying Net banking
income
(1)
.
INTERNATIONAL TRADE & TRANSACTION
BANKING (ITB)
Crédit Agricole CIB offers its clients, importers or exporters tai-
lor-made solutions for financing and securing their international
trade transactions. The Export & Trade Finance business relies on
a commercial network of specialists spanning nearly 30 countries.
The Commercial Bank in France offers products and services
that draw on the expertise of Crédit Agricole CIB’s specialised
business lines as well as the capabilities offered by the Crédit
Agricole Group’s networks (Regional Banks, LCL) and specialised
subsidiaries.
More specifically, ITB offers domestic and international cash man-
agement, short term trade finance, leasing, factoring, supply chain,
international trade (letters of credit, receipts, pre-financing export,
buyer credits, forfaiting
,
etc.), domestic and international guaran-
tees, market guarantees, foreign exchange and interest rate risk
management products.
The Bank also provides transactional commodity finance solutions
that offer short-term financing and payment security solutions asso-
ciated with commodities and intermediate goods. Our clients are
major international manufacturers and traders operating on the
commodities markets, particularly in the energy (oil, derivatives,
gas and biofuels), metals and certain agricultural commodities
segments.
Chapter 1 – Presentation of Crédit Agricole CIB
CRÉDIT AGRICOLE CIB’S BUSINESS LINES
21
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
DEBT OPTIMISATION & DISTRIBUTION (DOD)
Debt Optimisation & Distribution is responsible for the origination,
structuring and arrangement of medium- and long-term credits for
Corporate clients and Financial Institutions.
Syndicated loans are an integral part of capital raising for large
companies and financial institutions.
(1) Restated for loans hedges for -€18m in Financing activities and DVA impacts, FVA liquidity cost and secured lending for +€6m in Capital Markets and investment banking.
The DOD business line is a driving force in the distribution of syndi-
cated loans with a view to optimising Crédit Agricole CIB’s balance
sheet.
The DOD business line is the starting point of new distribution ini-
tiatives: new asset classes, new distribution channels, including the
partnership with Crédit Agricole Group Regional Banks.
3.2. CAPITAL MARKETS AND INVESTMENT BANKING
Capital Markets and Investment Banking encompasses the capital markets and investment banking business lines.
It generated underlying net banking income
(1)
of €2,334 million in full year 2021, which represents. 45.7% of CIB’s underlying
Net banking income
(1)
.
Global Markets Division
The Global Markets business line posted underlying net banking
income
(1)
of €1,764 million in full year 2021, i.e. 75.6% of Capital
Markets and Investment Banking’s underlying net banking
income
(1)
.
This division covers all market product origination, sales, struc-
turing and trading activities for corporates, financial institutions
and major issuers.
Owing to a network of 18 trading floors, including five liquidity
centres in London, Paris, New York, Hong Kong and Tokyo, Crédit
Agricole CIB offers its clients a strong position in Europe, Asia and
the Middle East, a targeted presence in the USA and additional
entry points into local markets.
Global Markets Division (GMD) is organised around:
y
Financing & Funding Solutions
,
dedicated to client financing
solutions, encompassing Securitisation and Global Credit
(which includes the Debt Capital Market (DCM) origination,
syndication and credit trading teams, as well as credit sales);
y
Hedging & Investment Solutions, which offers hedging and
investment solutions and consists of: sales to Financial
Institutions and Corporates, trading activities focused on
two areas of expertise (Macro and Non-Linear) covering a
variety of underlying assets (foreign exchange, fixed income
and non-linear), structuring activities and a dedicated research
team.
And three cross-functional units supporting the business line:
y
Global Chief Operating Officer (COO) in charge of monitoring
various cross-functional issues (financial indicators, IT projects
and processes, operational risk and implementation of the
business line’s strategy);
y
the cross-functional unit, in charge of managing scarce
resources (including XVA hedging), Onboarding, Transaction
Management, Clearing and regulatory watch;
y
the Transformation unit, in charge of assisting the business line
with technological developments and challenges.
Global Investment Banking (GIB) and GMD pooled their expertise
and created the Equity Solutions team in September 2016. Its main
objective is to expand the range of Equity investment products.
Treasury Division
The Treasury division turned in underlying net banking income
(1)
of €173 million in full year 2021, i.e. 7.4% of Capital Markets and
Investment Banking’s underlying Net banking income
(1)
.
The Treasury business line hierarchically reports to the Finance
and Procurement Chief Officer via Execution Management
(EXM)
and is functionally subordinate, depending on the site, either to
the Senior Country Officer, the Chief Financial Officer or the local
division managers.
Since 2018, Crédit Agricole CIB and Crédit Agricole S.A. have
pooled their Treasury business lines to jointly manage the Group’s
liquidity risk whilst respecting the regulatory constraints in which
the two legal entities operate.
The Treasury team ensures the sound and prudent management of
the Bank’s short-term liquidity on a daily basis, in accordance with
the procedures established by the Asset & Liability Management
Committees and in compliance with its internal and external con-
straints (short-term liquidity ratios, prudential ratios, reserves).
In addition, Treasury manages a portfolio of high-quality liquid
assets (HQLA), and is also in charge of the bank’s short-term issu-
ance programmes (Neu CP / CD / ECP, etc.) and is responsible for
the Euribor, Libor and CNHbor contribution process.
The Treasury business is structured around 3 liquidity hubs (Paris,
New York, Hong Kong), 11 local Treasury departments and a
central hub for private banking, allowing the bank to continuously
optimise its short-term funding requirements and recycle surplus
liquidity, primarily by placing it with central banks. Its geographic
structure provides access to wide-ranging and diversified short-
term financing complementing to the long-term refinancing pro-
vided by ALM.
Chapter 1 – Presentation of Crédit Agricole CIB
CRÉDIT AGRICOLE CIB’S BUSINESS LINES
22
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Investment Banking
In 2021, Investment Banking posted underlying net banking
income
(1)
of €396 million, i.e. 17% of Capital Markets and
Investment Banking’s underlying net banking income
(1)
. Investment
Banking comprises all “equity and long-term” financing activities for
Crédit Agricole CIB’s corporate clients and is structured around
three main divisions:
PRIMARY EQUITY CAPITAL MARKETS
The Primary Equity Capital Markets business line is responsible
for the advisory activities related to stocks and securities issuance
giving access to share capital.
In particular, it is in charge of capital increases, secondary offer-
ings as well as convertible bonds, exchangeable bonds and other
hybrid products issues for the
large and mid-cap primary market
.
GLOBAL CORPORATE FINANCE
The Global Corporate Finance
business line encompasses activi-
ties dedicated to mergers and acquisitions, from strategy advisory
services to transaction execution.
More specifically, it assists clients in their development with advisory
mandates for purchases and disposals, opening up capital to new
investors and restructuring strategic financial advisory services and
advisory services for privatisations.
STRUCTURED AND FINANCIAL SOLUTIONS (SFS)
The Structured and Financial Solutions business line offers Crédit
Agricole CIB’s large clients tailored solutions with high added value
in support of their complex finance transactions. In particular, it
provides alternative financing solutions to traditional banking oper-
ations and capital market solutions
.
SFS also realises receivables’ financing, including the CICE tax
(competitiveness and employment tax credits) set up by the French
government.
3.3. CROSS-FUNCTIONAL
Unique coverage: CIB
Drawing on Crédit Agricole CIB’s client-centric approach, the CIB
division provides coverage for all of the bank’s clients. At the centre
of the bank’s organisational structure, the division is responsible
for client income and profitability, manages client relations for the
entire bank worldwide, promotes all of the bank’s business lines, as
well as Crédit Agricole S.A. Group’s business lines, and manages
the bank’s overall exposure by client.
Within this division, a dedicated Sustainability Banking team
advises clients on bond issues and responsible financing. Crédit
Agricole CIB is a world leader in the green, social & sustainability
bond market.
In addition, in terms of Islamic financing, Crédit Agricole CIB facil-
itates access to Shariah-compliant solutions in many segments
with a dedicated team in the Gulf.
3.4. WEALTH MANAGEMENT
Wealth Management, a business operated under the global brand
name Indosuez Wealth Management since January 2016, offers a
tailored approach that enables each of its clients to preserve and
develop their financial assets and real assets to meet their needs
as closely as possible. With a global vision, its multi-disciplinary
teams offer them tailor-made, sustainable solutions, combining
excellence, experience and expertise.
Since 2012, Wealth Management has been part of a fully global
and cross-business organisation. It not only optimally combines
employee expertise, but also leverages all their synergies in order
to improve the convenience and experience of an increasingly
international client base.
With the constant ambition of consolidating the quality of its ser-
vices and strengthening its efficiency, Indosuez Wealth Management
is actively pursuing the digitisation of its offering and processes.
In response to client expectations, Indosuez Wealth Management
is expanding its value proposition in favour of more sustainable
development and a more responsible economy in cooperation
with other Group entities.
In France, the partnership between Indosuez Wealth Management
France and the Regional Banks (Caisses) is based on complemen-
tary approaches and is a clear asset when it comes to meeting
the ever-changing expectations of Crédit Agricole Group’s high
net worth clients.
ECONOMIC, SOCIAL
AND ENVIRONMENTAL
INFORMATION
2
CONTENTS
24
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1.
OUR CSR STRATEGY: PROGRESSIVE ACTIONS
DRIVEN BY EMPLOYEES’ INVOLVEMENT
.............
26
1.1. OUR APPROACH
...................................................................
26
1.2.
GOVERNANCE STRENGTHENED BY EMPLOYEES’
INVOLVEMENT
....................................................................
26
1.3.
AN APPROACH FOCUSING ON ONGOING PROGRESS
AND LISTENING TO OUR STAKEHOLDERS
.....................
27
2.
PROMOTING
AN ETHICAL CULTURE
.......................................
28
2.1. DEVELOPING AN ETHICAL DIMENSION IN BUSINESS .. 28
2.2. SUPPORTING OUR CLIENTS OVER THE LONG TERM ...30
2.3. TAX POLICY
..........................................................................
31
3.
INCORPORATING THE CHALLENGES OF CLIMATE
CHANGE
............................................................
32
3.1. PURSUING A CLIMATE FRIENDLY STRATEGY
.................
32
3.2. MANAGING OUR CLIMATE RISKS
.....................................
33
3.3.
PROMOTING CLIMATE SMART OBJECTIVES
..................
34
3.4. IMPROVING OUR CLIMATE PERFORMANCE
..................
35
3.5. REPORTING ON OUR CLIMATE ACTION
.........................
36
4.
HELPING OUR CLIENTS TO MEET THEIR SOCIAL,
ENVIRONMENTAL AND SOLIDARITY RELATED
CHALLENGES
....................................................
37
4.1.
OFFERING DEDICATED FUNDS TO FINANCE
ENVIRONMENTAL AND SOCIAL PROJECTS: GREEN AND
SOCIAL NOTES
.....................................................................
37
4.2.
ADVISING OUR CLIENTS ON SOCIAL AND
ENVIRONMENTAL PROJECTS
...........................................
49
4.3.
RAISING OUT CLIENTS’ AWARENESS OF SUSTAINABLE
FINANCE
...............................................................................
49
4.4.
PROMOTING SOCIALLY RESPONSIBLE INVESTMENT
(SRI) IN WEALTH MANAGEMENT
....................................
49
4.5.
ASSESSING AND MANAGING THE RISKS INHERENT IN
THE ENVIRONMENTAL AND SOCIAL IMPACTS OF OUR
FINANCING
..........................................................................
50
5.
AMBITION IN TERMS OF HUMAN RESOURCES:
STRENGTHENING AUTONOMY AND
EMPOWERMENT
...............................................
53
5.1. PROMOTING EMPOWERMENT
...........................................
56
5.2.
ORGANISATIONAL TRANSFORMATION TO REMAIN
CLOSE TO THE CLIENT
......................................................
60
5.3.
STRENGTHENING THE FRAMEWORK OF TRUST
BETWEEN EMPLOYEES AND THE COMPANY
.................
60
6.
PROMOTING THE ECONOMIC, CULTURAL AND
SOCIAL DEVELOPMENT OF THE HOST
COUNTRY
.........................................................
66
6.1. DIRECT AND INDIRECT IMPACTS
......................................
66
6.2.
EMPLOYEES’ INVOLVEMENT IN SOLIDARITY
INITIATIVES
........................................................................
66
6.3. CULTURAL SPONSORSHIP
...............................................
67
6.4.
LINKS WITH SCHOOLS AND SUPPORT FOR UNIVERSITY
RESEARCH
..........................................................................
67
7.
LIMITING OUR DIRECT ENVIRONMENTAL
IMPACT
.............................................................
68
7.1.
BUILDINGS AND CARBON FOOTPRINT MANAGEMENT
PROCESS
..............................................................................
68
7.2. POLLUTION AND WASTE MANAGEMENT
.......................
68
7.3. SUSTAINABLE USE OF RESOURCES
................................
69
7.4. TRAVEL FOOTPRINT
...........................................................
70
25
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
HUMAN RESOURCES
ENERGY TRANSITION
COMPLIANCE
The compliance training System consists of
84%
OF RENEWABLE
ENERGY
in the financing of electricity
generation in terms of number
of projects in 2021
13.2
BILLION
EUROS
of green loans as at 31 December 2021
43.8%
OF
WOMEN
among the worldwide employees
of Crédit Agricole CIB
75%
OF
EMPLOYEES
consider having a good
work/life balance.
30
E-LEARNING
TRAININGS
9 general trainings and 21 dedicated
trainings
6
NEW
TRAININGS
deployed in 2021
Chapter 2 – Economic, social and environmental information
OUR CSR STRATEGY: PROGRESSIVE ACTIONS DRIVEN BY EMPLOYEES’ INVOLVEMENT
26
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1.
OUR CSR STRATEGY: PROGRESSIVE
ACTIONS DRIVEN BY EMPLOYEES’
INVOLVEMENT
Some of the information not included in this document can be found in the Crédit Agricole CIB Corporate Social
Responsibility (CSR) policy, which is published on the Bank’s website. There you will find details about Crédit Agricole
CIB’s approach, its financing and investment policies and their implementation, the protection of client interests and
respect for ethics in business, its undertakings and actions as a responsible and committed employer, the management
of the impacts of the Bank’s operations and its policy on charities, sponsorship and supporting university research.
The following pages focus on the actions taken in 2021.
Although the developments below illustrate, for Crédit Agricole CIB, the implementation of the Crédit Agricole Group S.A.
Vigilance Plan and the group’s non-financial performance, this chapter is neither a report on the implementation of
the Vigilance Plan, nor a declaration on the non-financial performance, both of which are presented in the Crédit
Agricole S.A. Universal Registration Document.
1.1. OUR APPROACH
Crédit Agricole CIB
In 2019 the Crédit Agricole Group put together its new
“2022 Ambitions” project with a view to establishing its social utility
as an essential component of its activities, business lines and
processes. This strategic plan is three-dimensional, comprising
a Client Project, a Human Project and a Societal Project.
The Crédit Agricole CIB’s strategy fully embraces this approach.
The Bank has entered into stringent societal commitments which
cover three priority areas: the fight against climate change,
preservation of biodiversity and respect for human rights.
For several years now, these issues have been tackled by a three
part initiative:
y
to reduce its direct environmental footprint;
y
to measure and reduce environmental and social risks related
to its financing activity (notably based on the Equator Principles,
the CSR sector policies, and the introduction of CSR scoring
of corporate clients);
y
to increase the positive impacts of its business through
Sustainable Banking.
In addition to controlling the Bank’s direct environmental footprint,
Crédit Agricole CIB seeks through this initiative to tackle societal
objectives and help its clients overcome their social, environmental
and solidarity related challenges.
Indosuez Wealth Management
Since 2020, Indosuez Wealth Management’s CSR approach has
been supported by a global business line dedicated to offers and
business development. It is structured around its Human Project,
its Client Project and its Societal Project.
It seeks to strengthen Indosuez Wealth Management’s usefulness
to its clients, and in particular to:
y
increase its presence and impact,
y
better meet their expectations,
y
better coordinate the development and distribution of respon-
sible offers in accordance with prevailing laws,
y
establish a sustainable development culture and dynamic at
Indosuez Wealth Management.
To that end, at each entity, including Azqore, a two-person team
consisting of the local CSR manager and a front office employee
is responsible for promoting the convictions and societal dynamics
of the Group and its geographical regions. Their roles and
responsibilities are clearly defined; the projects are overseen
centrally and are operationally managed by the entities with a
view to complying with the strategy implemented.
1.2. GOVERNANCE STRENGTHENED BY EMPLOYEES’ INVOLVEMENT
Governance
Sustainable development challenges are taken into account by
Crédit Agricole CIB in accordance with the general guidelines
proposed by the CSR Department of Crédit Agricole S.A. and
validated by the CSR Committee of the Crédit Agricole Group.
They are the subject of two internal governance documents that
define the framework.
The Corporate Social and Environmental Responsibility
department, which reports to Risks and Permanent Control,
proposes and coordinates Crédit Agricole CIB’s sustainable
development actions with the bank’s business lines and support
functions.
An ad hoc Committee, the Committee for the Assessment of
Transactions with an Environmental or Social Risk (CERES),
chaired by the head of the Compliance function, acts as a top-
Chapter 2 – Economic, social and environmental information
OUR CSR STRATEGY: PROGRESSIVE ACTIONS DRIVEN BY EMPLOYEES’ INVOLVEMENT
27
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level Committee of the system for evaluating and managing
environmental and social risks related to the activity. This
Committee issues recommendations prior to the Credit Committee
meeting for all transactions whose environmental or social impact
it feels needs close monitoring. The CERES Committee validates
the ratings of the transactions in accordance with the Equator
Principles, issues opinions and recommendations on transactions
classified as sensitive in respect of environmental and social
aspects, and approves significant modifications to processes,
methodologies and governance texts relating to sustainable
development.
The CERES Committee met eight times in 2021 to discuss issues
such as the review of transactions signed-off during the year,
the approval of ratings according to the Equator Principles, the
monitoring of sensitive files, and the review of sector policies and
methodologies linked to environmental and social risks.
In 2021, the CERES Committee specifically reviewed 88
transactions before they were sent to the Credit or Commercial
Decision Committee, given their importance and the sensitivity
of the potential environmental or social impacts identified. In
two cases, its recommendations resulted in not continuing a
commercial opportunity and in thirty-one cases imposing specific
conditions for the management of environmental and social risks.
Employees at the heart of the
implementation
The model developed by Crédit Agricole CIB is based on the
daily involvement of all employees as agents of sustainable
development in their work, in order to assess and manage direct
or indirect environmental risks.
Client managers and senior bankers are responsible for analysing
environmental and social challenges related to their client portfolio.
If necessary, they call on the Corporate Social and Environmental
Responsibility Department, and submit the most complex
transactions from an environmental or social point of view to the
CERES Committee.
The gradual incorporation of sustainable development priorities
into our operations (widening the scope of application of the
Equator Principles, sector wide CSR policies, scoring of corporate
clients, etc.) and the central role entrusted to employees in the
strategy, has led the Bank to step up training for employees to
raise their awareness of CSR matters. The action plan aimed at
reinforcing the CSR culture, implemented in 2017, continues to
be deployed with an objective to incorporate the CSR aspects
into operations. The health situation meant that most of the
awareness-raising and training actions continued to be carried
out by videoconference.
SIGNIFICANT
EVENTS IN
2021
The search for better integration with business activity
Crédit Agricole CIB’s Executive Committee has entrusted
the head of the Sustainable Banking division with the task of
proposing a new structure for developing synergies between
all Crédit Agricole CIB’s departments in order to continue
improving the assistance given to our clients in meeting their
environmental and social challenges. This review, which
includes the creation of a Climate & Sustainable Strategy
team, is expected to conclude in the first half of 2022.
1.3. AN APPROACH FOCUSING ON ONGOING PROGRESS AND LISTENING TO OUR
STAKEHOLDERS
The FReD approach
Crédit Agricole CIB and CA Indosuez Wealth Management are
fully involved in the Crédit Agricole Group’s FReD progress driven
approach. The process, intending to strengthen CSR within the
Group, has, since 2020, been focused on Medium-Term Plan
CSR objectives, and consists of 6 action plans focused on three
key areas involving clients (Fides), employees (Respect) and the
environment (Demeter). Specific and measurable objectives are
defined for each plan. The desire to link FReD actions more closely
with strategic challenges leads to the selection of longer-term
plans. Since this review, the average annual growth target has
been 1.3 on a progress scale comprising 4 levels.
In 2021, the average level of progress recorded by the 6 action
plans of Crédit Agricole CIB was 1.5.
In 2021, the average level of progress recorded by the action
plans of the Indosuez Wealth Management Group was 1.17.
Relationships with stakeholders
For Crédit Agricole CIB, listening to its stakeholders is the way
forward. It held several meetings with NGOs in 2021. Crédit
Agricole CIB plays an active role in sharing best practices with
its peers and has been a member of the Mainstreaming Climate
Action within Financial Institutions initiative for several years.
Chapter 2 – Economic, social and environmental information
PROMOTING AN ETHICAL CULTURE
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2.
PROMOTING AN ETHICAL CULTURE
The Crédit Agricole CIB Group has adopted the Crédit Agricole Group’s approach to positioning ethics as one of its
priorities. It promotes Group initiatives which aim to exceed regulatory standards and establish an ethical culture.
2.1. DEVELOPING AN ETHICAL DIMENSION IN BUSINESS
The mission of the Compliance function is to contribute to the
respect of activities and operations of the Bank as well as its staff
with laws and regulations in force, internal and external rules, and
the professional and ethical standards in banking and finance
applicable to the Crédit Agricole CIB Group’s activities.
The code of conduct
In 2018, Crédit Agricole CIB reviewed its Code of Conduct to
take into account and implement all the themes of the Crédit
Agricole Group Ethics Charter. This Code of Conduct consists of
a common foundation of 7 principles intended to align behaviours
with the Bank’s values and thus guide employees on a daily basis.
Its purpose is to:
y
assert our principles and ethical values;
y
engage with our clients and Group partners.
Crédit Agricole Indosuez circulated its Code of Conduct – which
translates the commitments of the global Crédit Agricole Ethics
Charter into practical action – to its Wealth Management entities.
This Code of Conduct, available on the new intranet site as well
as on the websites of each entity, is both a tool and a guide. It is
the foundation of ethical and professional conduct that reflects
the Group’s values and the guidelines on behaviour to be adopted
with all our clients and all stakeholders: employees, suppliers,
service providers...
Training of directors and company
administrators
In accordance with the guidelines of the European Banking
Authority and the provisions of the French Monetary and
Financial Code, Compliance officers train members of the Board
of Directors on current regulatory issues.
Members of the Crédit Agricole CIB Board of Directors are thus
trained in compliance issues on a yearly basis. In 2021, Board
members were given training on recent regulatory changes,
particularly on the extraterritorial effect of US laws, and on
security-based swap dealer regulations and conduct risk. At the
same time, a number of compliance courses are made available
to them so that they can have access to concise information on
compliance issues. And newly appointed administrators meet with
the Head of Compliance at the beginning of their role.
The Crédit Agricole Indosuez Wealth Management Group has also
rolled out the system proposed by the Crédit Agricole Group. The
members of the Board of Directors of Crédit Agricole Indosuez, as
well as the administrators in the entities, receive an annual update
on all regulatory developments required for fully understanding
compliance issues.
Deploying a responsible compliance policy
FIGHTING AGAINST CORRUPTION
The Crédit Agricole CIB Group claims and applies, at the highest
level, a zero-tolerance policy for any unethical behaviour in general,
and any risk of corruption in particular. This policy illustrates the
group’s long-standing commitment to business ethics, a key
element of its corporate social responsibility policy. It integrates
well with the compliance and financial security programmes
of the Crédit Agricole Group, aiming to ensure transparency
and loyalty to clients, suppliers and all types of counterparties
with relationships with the Bank, to contribute to the integrity of
financial markets and to combat money laundering, fraud and
corruption.
The group’s commitment to fighting corruption is reflected in
the BS 10500 certification obtained in 2016, and subsequently
the award to the Crédit Agricole Group in 2017, renewed in
2019 of the ISO 37001 international standard for its anti-
corruption set-up. The latter recognises its determination and
the quality of its corruption prevention programme. It proves that
corruption risks have been correctly identified and analysed and
that the programme has been designed to limit these various
risks, applying the best international practices. This certification
covers all the business lines and support functions of the Crédit
Agricole CIB Group.
Against the backdrop of increased legal obligations for fighting
corruption, in 2018 Crédit Agricole CIB implemented “Measures
aimed at preventing and detecting corrupt practice”, as referred
to in article 17 of the so-called Sapin 2 law of 9 December 2016
on transparency, fighting corruption and the modernisation of
the economy. Existing systems for fighting corruption have been
strengthened by the implementation of the recommendations of
the French Anti-Corruption Agency (AFA).
The Group has implemented specific governance to develop the
behaviours to be adopted in order to avoid any lapses in probity.
Crédit Agricole CIB wrote and circulated an anti-corruption Code
of Conduct which was accompanied by an e-learning training
programme for all employees and in-person training for people in
positions which could be exposed to corruption risks. Employees
in roles that are the most exposed to the risk of corruption at the
Crédit Agricole Indosuez Wealth Management Group also followed
a dedicated e-learning training course.
.
Chapter 2 – Economic, social and environmental information
PROMOTING AN ETHICAL CULTURE
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PREVENTING FRAUD
Crédit Agricole CIB continues to strengthen its systems for
preventing internal and external fraud, in the context of increased
frequency and growing complexity of fraud.
Correspondents of the fight against fraud within business lines and
support functions are regularly trained to increase their awareness
with regard to elements of risk. Warning and vigilance messages
are sent to all employees, particularly via the Crédit Agricole
CIB Intranet site. Targeted prevention actions are undertaken to
advise and support employees in their choices and to help them
to reconcile issues relating to ethics, professional behaviour,
objectives and obligations. These actions enable a culture of
probity to permeate all levels of the company; the controls and
procedures associated with any lapses provide an appropriate
management of any behaviours which may harm, directly or
indirectly, clients, the Bank and its employees.
FIGHTING MONEY LAUNDERING AND THE
FINANCING OF TERRORISM
The Compliance Division of the Crédit Agricole CIB Group is
responsible for the implementation by the Group as a whole of a
financial security set-up, consisting of a set of measures aimed at
fighting money laundering and the financing of terrorism, as well
as ensuring compliance with international sanctions.
The Crédit Agricole CIB Group has taken into account the
requirements of the transposition into French law of the fifth
European Directive 2018/843, approved by the European
Parliament on 30 May 2018, on preventing the use of the
financial system for money laundering and the financing of
terrorism. Crédit Agricole CIB devised a vigilance system and
aligned it to the specific nature of its clientele, its business and
its network outside France. Therefore, when entering into any
relationship, the required client due diligencies are a first filter to
prevent money laundering and the financing of terrorism. This
preventative measure relies on knowledge of the client and of
the ultimate beneficial owners, completed by research through
specialised databases. It also takes into account the purpose and
intended nature of the business transaction. During the business
relationship, there is an appropriate vigilance proportionate to the
identified level of risks. For that purpose, the Group’s employees
may use computer tools to analyse clients’ risk levels and to
detect unusual transactions.
The fight against the financing of terrorism and the set-up for
ensuring compliance with international sanctions implies, in
particular, a constant screening of client and supplier files, both
when entering into the relationship and during the relationship,
with a list of sanctions as well as the real-time monitoring of
international transactions.
Despite the performance of the computer tools available, human
vigilance remains essential so all employees exposed to these
risks are periodically trained in the fight against money laundering
and the financing of terrorism, and compliance with international
sanctions.
Lastly, Crédit Agricole CIB has put in place a dedicated
governance system and tools allowing to follow at the highest
level and monitor risks of money laundering, terrorist financing,
as well as the respect of international sanctions.
Crédit Agricole Indosuez has also rolled out the AML-CFT and
international sanctions system introduced by the Crédit Agricole
Group and certifies annually to Crédit Agricole CIB that all the
Corpus’s AML-CFT ratings have been implemented within CAI as
well as in the entities within its consolidated supervision scope.
PRESERVING THE INTEGRITY OF THE
MARKETS AND ANTICIPATING MARKET ABUSE
The Bank continuously ensures that the rules on the integrity
of the financial markets and those relating to market abuse are
respected by all Group employees. Thus, strict ethical standards,
procedures and rules have therefore been put in place to prevent:
y
market manipulation and attempted market manipulation (such
as fixing the price of a financial instrument at an abnormal level or
disseminating and transmitting false or misleading information);
y
any insider dealing;
y
any unlawful disclosure of privileged information.
These obligations are reiterated on an ongoing basis by the
various Compliance teams across all of the Bank’s activities
as well as through its training programme covering the various
compliance topics.
In addition, controls have also been put in place and daily
monitoring is carried out by Compliance in order to detect potential
market abuse and to be able to inform senior management and
report this to our regulators.
Finally, any suspicion or detection of market abuse must be
escalated to Compliance, which will then be responsible, if
necessary, for informing the senior management of the Bank
and our regulators.
SIGNALLING BEHAVIOURS AND PRACTICES THAT
GENERATE A RISK OF NON-COMPLIANCE
The entire compliance set-up (organisation, procedures, training
programmes) creates an environment contributing to the
strengthening of ex ante control. Nonetheless, when preventive
measures failed and an incident occurs, Crédit Agricole CIB has
specific procedures in place to ensure that these incidents are:
y
detected and then analysed as quickly as possible;
y
brought to the attention of managers and compliance functions
at the most appropriate level within each business line;
y
monitored and solved, by establishing an action plan to resolve
the issues.
The centralisation of incidents through the reporting process,
described in a specific governance text, makes it possible
to measure, at the highest level of the company, the Crédit
Agricole CIB Group’s exposure to the non-compliance risk.
Therefore, when an employee reasonably establishes the
existence of an incident related to compliance concerns, he
must tell his supervisor who informs the operational heads and the
Compliance, Permanent Control and Legal functions, depending
on the subject. The system is completed by a whistleblowing
mechanism allowing any employee, if they find an abnormality in
the treatment of a malfunction which they consider is due to a
deficiency of, or pressure exercised by, their manager, or if they
think they are being submitted to pressure, active or passive,
that may lead them to cause a dysfunction or to conceal it, to
inform their compliance manager and/or, if they so wish, their
manager’s direct superior of the situation. Crédit Agricole CIB
Group has deployed a secure reporting tool across all its entities,
selected by Crédit Agricole S.A. for the entire Crédit Agricole
Group, accessible to employees and any external third parties
via the Internet. This tool enables the confidentiality of the facts
reported, any people involved and conversations which may
occur between the whistleblower and the officer responsible for
processing the alert.
Chapter 2 – Economic, social and environmental information
PROMOTING AN ETHICAL CULTURE
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Dysfunctions noted are monitored by the Global Compliance
Department and escalated to management for submission to the
Compliance Management Committee.
DISSEMINATING THE COMPLIANCE CULTURE
The Crédit Agricole S.A. Compliance Division has developed a
training programme covering Compliance issues. This programme
has been replicated by Crédit Agricole CIB’s Compliance and
Human Resources Divisions and supplemented with training
courses specific to its business activities.
At the same time, the Crédit Agricole CIB Compliance pole of
expertise provide both e-learning and classroom/remote training
in their area of expertise to targeted groups.
A continuous training action plan improves employee awareness of
all Compliance and Financial Security issues, which are constantly
evolving. Training on general subjects is usually provided in the
form of e-learning, while training targeting at-risk populations is
preferred for face-to-face/remote training.
The Compliance Culture is also consolidated through dedicated
campaigns such as the Compliance Awards which are given to
the best initiative or the best project incorporating the principles of
compliance and ethics. Finally, the compliance criteria, which are
regularly updated and expanded, form part of each employee’s
annual appraisal.
In order to reinforce non-compliance risk management within
the Crédit Agricole Indosuez Wealth Management Group, a
number of initiatives are being carried out in terms of training.
More specifically, an action entitled “Supporting Relationship
Managers on compliance values” is underway. This initiative
involves compliance training for Relationship Managers as soon
as they are hired.
MANAGING ACTIVITIES AND DISTRIBUTED
PRODUCTS
The Crédit Agricole CIB Group designs and distributes new
products, activities and services for its clients in a secure manner
thanks to the implementation of a management system for this
process called “NAP Committee” (New Activities/New Products).
Any new product, activity or service must go through the NAP
process so that all support functions can analyse them. In this
way, any product, activity or service envisaged is approved by
a NAP Committee whose decision is based on an analysis of all
risks and a confirmation of its compliance with regulations as well
as the group’s strategy.
The NAP Committee process also involves a CSR analysis and
the systematic provision of a legal and compliance opinion.
Implementing a transparent lobbying policy
Crédit Agricole CIB acts within the framework of the Crédit
Agricole Group policy.
As a result of the entry into force of the Sapin II Law, Crédit
Agricole CIB Group introduced a new system in 2017 to bring
its Directors and interest representatives in line with the reporting
obligations.
2.2. SUPPORTING OUR CLIENTS OVER THE LONG TERM
Protecting clients and their interests is central to Crédit Agricole
CIB’s concerns.
In terms of protecting the interests of clients, the Bank has a
Conflict of Interest Management Policy and detailed, annually
updated procedures, as well as strict rules to identify, prevent
and manage all conflicts of interest that may arise. Actions to
increase the awareness of the First Line of Defense were again
carried out in 2021 and will continue in 2022.
Moreover, the Group also implements all measures to protect its
clients’ data and takes client opinions into account.
Protecting data
Protecting data and using it in the appropriate manner, in the
interests of clients, the Bank, its employees and partners have
always been at the core of the group’s preoccupations.
Thus, in 2017 the Crédit Agricole CIB Group adopted the Charter
on the “Use of Personal Data”, which has been endowed by the
Crédit Agricole Group. The following year it adapted its system
in France and abroad in accordance with the General Data
Protection Regulations which came into force in May 2018.
Another strong signal of this commitment is Crédit Agricole
CIB’s deployment, in France and its main entities abroad, of
its NSU (New Solutions and Uses) set-up. This system enables
to proactively manage the regulatory, legal, operational and IT
security risks associated with the implementation of new solutions
or new uses concerning data, in an ethical approach focused on
the interests of third parties or persons concerned. It offers to
all of the Bank’s Business Lines and Support Functions a secure
framework for the digital transformation (Cloud computing, New
ways of working,...), innovation and the use of new technologies
(Artificial Intelligence, Quantum Computing, Blockchain,...).
Ensuring quality relationships
One of the principles of the Crédit Agricole CIB Group is to
develop long-term relationships with its clients based on trust
and transparency.
In this regard, Crédit Agricole CIB has implemented a secure
process for initiating these relationships and managing the sale
of market-based products. The protection of clients is based on a
comprehensive client classification system which not only involves
applying the MiFID rules applicable in the European Economic
Area, but also worldwide after an internal process called “Internal
suitability rating”. This set-up forms part of the sales process, in
particular so that the financial instruments offered to clients are
in line with their risk awareness.
Furthermore, Compliance pays particular attention to commercial
margins on market-based products and the documentation
intended for client information, while continuing to file and retain
the underlying data appropriately.
The Bank relies on its NAP process to ensure its new products/
new activities are in line with the client profile. Finally, in order
to meet the new product governance obligations imposed by
Chapter 2 – Economic, social and environmental information
PROMOTING AN ETHICAL CULTURE
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MIFID 2, in early 2018 Crédit Agricole CIB set up a taxonomy for
all products handled by the Bank with its clients, and in parallel
with the NAP system, a new MIFID 2 product file Committee
was set up with a view to systematically defining, prior to any
transaction, the target market for each of the new products
offered by Crédit Agricole CIB to its clients.
Complaints
The Bank constantly strives to improve its client protection
measures by continuing to fine-tune its complaints follow-up
system. These complaints have to be systematically recorded,
communicated to a Complaint Correspondent appointed within
each department of the Bank, then replied to within the following
time frames:
y
ten days from the receipt of the complaint to acknowledge
receipt, unless the response itself has been given to the client
within this period;
y
two months between the receipt of the complaint and the date
the response was sent to the client.
In the specific case where the complaint relates to payment
services subject to the European Payment Services Directive,
known as PSD 2, the response shall be sent no later than fifteen
days after receipt of the complaint. This period may be extended
to thirty-five days in exceptional situations (for reasons outside
the control of the payment service provider).
2.3. TAX POLICY
The Crédit Agricole CIB Group monitors the commitments made
by the Crédit Agricole S.A. Group in the area of prevention of
the risk of tax fraud by its clients, prospects or suppliers, since
tax practices represent an important element of corporate social
responsibility.
In this regard, the Crédit Agricole CIB Group:
on the one hand, ensures compliance with all countries’ fiscal
regulations (FATCA, AEOI, etc.);
on the other hand, provides no help or encouragement to
clients, prospects and suppliers with infringing tax laws and
regulations, nor does it facilitate or support transactions where
tax efficiency is based on the non-disclosure of facts to the tax
authorities.
In addition, pursuant to the OECD standard on the automatic
exchange of information as part of tackling tax evasion, adopted
by around one hundred States and transposed by the European
Union, the Crédit Agricole CIB Group identifies the holders of
accounts who are resident for tax purposes in countries with
which an exchange agreement has been concluded and sends
information about those clients to their local tax authorities, which
forwards them to the tax authorities of the relevant States of
residence.
Administration
FRANCE
Administration
UNITED
KINGDOM
Administration
POLAND
In line with its global strategy, the Crédit Agricole Indosuez
Wealth Management Group has a basic rule of only working
with clients who meet their tax obligations. Wealth Management
therefore intends to base itself primarily on the systems in place
in the different countries (the Automatic Information Exchange
systems in particular) to ensure on the tax compliance of its clients
(limitation of booking centers to EAI/EAIequivalent countries,
selection of clients residing in these countries).
Being responsible along the entire chain
A governance document, updated in 2019, describes the
procurement function’s general operating principles at Crédit
Agricole CIB Group, within the framework of Crédit Agricole
S.A. Group’s Procurement Business Line. These rules apply to
all purchases made by Crédit Agricole CIB units. This document
emphasises the need to include, to the extent possible, a company
from the disability friendly sector in the list of subcontractors and
suppliers. The MUST RSE (MUST CSR) programme applied to
purchases made by Crédit Agricole Group has made it possible
to manage legal, financial and reputational risks by applying best
practices in order to forge balanced relationships with suppliers.
A number of achievements have been made as a result of this
programme, namely:
y
adding a clause to our contracts which provides for the referral
to a mediator from the Crédit Agricole S.A. Group, in the
event of disagreements relating to the execution of a contract
between a supplier and the internal decision-maker, should
both parties fail to find a solution internally. The option of using
a Group mediator is to prevent the disagreement escalating
into a dispute or court action;
y
adding a sustainable development appendix to our contracts
to reiterate the Group’s commitments in this area and the
expectations that we have of our suppliers;
y
obtaining from third-party service providers CSR ratings on our
suppliers and prospects during consultations or calls for tender.
In addition, the centralisation of receipt and processing of supplier
invoices in an electronic workflow brought improvements in our
suppliers’ invoice payment chain and faster invoice processing
times.
All the buyers have had training on the issue of human rights in
the value chain.
The Indosuez Wealth Management group is continuing its policy
launched in 2016 consisting of a “Responsible Purchasing”
governance and policy which is clear, homogeneous and in line
with the Crédit Agricole Group S.A. strategy.
The responsible purchasing policy’s defining issues and priorities
include Human Rights, Industrial Relations and Working
Conditions, the Environment, Fair Business Practices, Diversity
and Communities and Local Development.
Chapter 2 – Economic, social and environmental information
INCORPORATING THE CHALLENGES OF CLIMATE CHANGE
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3.
INCORPORATING THE CHALLENGES OF
CLIMATE CHANGE
Since 2016, the steps taken to integrate climate change challenges are presented each year according to the five
“Mainstreaming Climate Action within Financial Institutions” principles signed at the COP21 climate conference in
Paris by Crédit Agricole and a group of multilateral, development and commercial banks.
These five principles provide encouragement to:
y
pursue a climate friendly strategy;
y
managing climate risks;
y
promote smart climate objectives;
y
improve climate related results;
y
report on climate action.
3.1. PURSUING A CLIMATE FRIENDLY STRATEGY
The Crédit Agricole CIB climate policy reflects the different climate
challenges identified:
y
financing the energy transition;
y
managing climate risks;
y
reducing its direct carbon footprint.
The policy was published in 2017 in the document setting out
our CSR policy “Crédit Agricole CIB, a useful and responsible
Corporate and Investment Bank” and is reinforced by the Crédit
Agricole Group Climate strategy published in June 2019.
In 2021, the Crédit Agricole Group joined the Net Zero Banking
Alliance, thereby committing to aligning the operational
greenhouse gas emissions and those associated with its financing
and investment activities with a carbon neutrality target of 2050.
At COP26, Crédit Agricole CIB once again strengthened its
commitment to climate change and to supporting its clients in
the energy transition and their decarbonisation strategies. As
the first milestones in its strategy to achieve carbon neutrality by
2050, Crédit Agricole CIB has committed to reducing its exposure
to oil extraction by 20% between 2020 and 2025 and increasing
its exposure to carbon-free energy (production and storage) by
60% over the same period.
SIGNIFICANT
EVENTS IN
2021
Strengthening our sector policies and supporting
our clients in their energy transition and their
decarbonisation strategy
At COP 26, Crédit Agricole CIB strengthened its sector pol-
icies in hydrocarbons by committing, alongside five other
French banks, from January 2022, to no longer financing
projects directly linked to shale oil, shale gas and oil sands,
and companies whose exploration and production of such
energies account for more than 30% of their business activ-
ities. Crédit Agricole CIB also extended its exclusion criteria
for oil projects in the Arctic region to all gas projects and
expanded the exclusion perimeter to the AMAP region for
the terrestrial Arctic.
As the first milestones in its trajectory of achieving carbon
neutrality by 2050, Crédit Agricole CIB decided to reduce
its exposure* to oil extraction by 20% between 2020 and
2025 and to increase its exposure to carbon-free energy
(production and storage) by 60% over the same period.
In 2022, Crédit Agricole CIB will publish the trajectories of
other sectors with a significant carbon footprint.
* Calculated by weighting exposures to all clients based on the
share of their activity represented by oil extraction
Chapter 2 – Economic, social and environmental information
INCORPORATING THE CHALLENGES OF CLIMATE CHANGE
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3.2. MANAGING OUR CLIMATE RISKS
For a number of years, Crédit Agricole CIB has undertaken work
designed to better understand and manage climate risks:
y
by evaluating the carbon footprint caused by its financing and
investment portfolio and defining the sector wide policies for
sectors which account for a large proportion of this footprint
(over 80% of this footprint on a cumulative basis);
y
by seeking to identify the materiality of the climate risks and by
gradually introducing additional analyses for clients appearing
to present the highest risk.
This approach was strengthened in 2021 by defining action plans
with a view to meeting the European Central Bank’s expectations.
Measuring and mapping climate challenges
Since 2011, Crédit Agricole CIB has used a procedure to calculate
greenhouse gas emissions said to be financed by a financial
institution. The procedure was developed at its request by the
Chair in Quantitative Finance and Sustainable Development
at Paris Dauphine University and École Polytechnique. This
innovative methodology, originally known as P9XCA but renamed
SAFE (Single Accounting of Financed Emissions), has, since 2014,
been recommended for corporate and investment banks in the
financial sector guide to “Conducting a greenhouse gas emissions
audit” published by the Agency for Environment and Energy
Management, the Observatory on Corporate Social Responsibility
and the Bilan Carbone Association.
It enables Crédit Agricole CIB to calculate, without multiple
counting, the order of magnitude of the emissions financed
and map them according to sector and geographical location.
Greenhouse gas emissions are allocated to economic players
according to their capacity (and their economic interest) to
reduce them according to an allocation described “by issue” as
opposed to the usual allocation “by scope” (see sectoral guide).
This methodology gives us a sectoral and geographical mapping
of the carbon issue which has guided the choice of sectors
of the bank for the development of sectoral CSR policies and
has been used in methodologies for calculations linked to the
transition climate risks presented below. Certain methodological
adjustments were made in 2018 in parallel with the revision of
emission factors.
Furthermore, mapping of the challenges linked to physical climate
risk is under way, combining sector based and geographical
vulnerability indices.
Scenario and materiality of climate risks
In line with the recommendations of the Task force on Climate
related Financial Disclosures (TCFD), sensitivity to climate risks
was assessed in 2017 within the framework of various scenarios.
The four scenarios tested in 2017 stand out due to the scope
of the mitigation measures and the gradual nature of their
implementation. These scenarios identify three timescales: short
term (before 2020); medium term (from 2020 to 2030) and long
term (after 2030). They are outlined briefly below.
Each scenario led to a climate trajectory and to a carbon price
level in line with the scope of the mitigation measures. Research
has therefore been carried out into the potential impact on the
profitability of companies which are the CIB clients both as
regards the physical climate risk and the transitional climate risk.
Regarding the physical risk, the average potential impact on
the added value of companies has been considered to directly
reflect the impact of global warming on world GNP as generally
estimated (without taking into account, at this stage, the different
impacts according to sector and country).
For the transitional risk, the potential vulnerability of companies
was assessed using the emissions allocated to the economic
players in the sectors and countries defined in P9XCA (in the by
challenge version) and correlated with their added value. Valued
at the carbon price selected for each scenario, these emissions
make it possible to provide an initial economic assessment of
the carbon challenge for each macro sector and country. Based
on several studies concluding that a controlled energy transition
would not damage growth (see below), it was considered that the
carbon challenge would impact companies differently depending
on their ability to anticipate and therefore the rate of progress to
implement measures to adapt to this risk.
These calculations are by necessity approximate but provide
insight into the orders of magnitude and make it possible to
compare the potential impacts on sectors and countries depending
on the scenarios and time-scales used. The calculations show
the transitional climate risk in the “sudden progress” scenario as
the main medium-term risk, while underlining the strong increase
in the physical climate risk over time, notably in the scenario
involving no new mitigation measures.
They also provide an initial macroeconomic insight into climate
risks by highlighting the main risk areas (sectors and countries)
according to the various scenarios and time-scales. For the
medium-term transitional risk, identified as the main potential risk,
a complementary microeconomic approach has been developed
which seeks to differentiate it at individual counterparty level.
Transition risk index
For financial players, the transitional climate risk arises mainly from
the uncertain return from their clients’ investments and changes
in the financial models which result from the changes in the
economic environment brought about by initiatives against global
warming (introduction of a carbon price, regulatory changes).
An OECD study published in May 2017, “Investing in Climate,
Investing in Growth”, concluded that a controlled energy transition
is favourable to the economic growth of the G20 countries,
backing up the conclusions of a study by the French Environment
and Energy Management Agency (ADEME) in 2016,“An electricity
mix from 100% renewable sources? Technical summary and
macroeconomic evaluation summary” for France. It would
seem, therefore, that the impact of the energy transition will not
necessarily be negative for economic players. Rather, it will be
important to be able to identify the winners and the losers in this
major change.
The potential impact of the energy transition on the financial
performance of a company would therefore seem to depend on
both the potential sensitivity of the company to the transition (due
to its business sector and geographical location) and its ability to
manage the transition (level of anticipation and strategy).
The economic player’s potential sensitivity to the transition
challenge depends on how much pressure it is under. This, in
turn, depends on the extent to which it operates independently of
the measures it puts in place. It is a measure of the extent of the
potential positive or negative impact of the energy transition for
the economic player, which can be described as a combination
Chapter 2 – Economic, social and environmental information
INCORPORATING THE CHALLENGES OF CLIMATE CHANGE
34
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
of two factors: the sector impact (the sector’s carbon intensity)
and how committed the country is to reducing its greenhouse
gas emissions.
The ability to manage the transition challenge determines whether
or not the economic player has the right strategy and has taken
the right measures to enable it to gain from the energy transition.
It seems to us that this level of “maturity” should be assessed
relative to the business sector, across all geographical locations.
A medium-term transition risk index has therefore been calculated
since 2017 for the Bank’s corporate client groups using a
combination of three factors:
y
the extent to which the issues will impact financing in the
sector, as calculated by the P9XCA methodology adopting
an issue-based approach;
y
the importance the country places on reducing greenhouse
gas emissions such as the Intended Nationally Determined
Contributions (INDC);
y
the maturity of the client when faced with climate challenges
and its ability to adapt, as evaluated by a non financial agency
or estimated on the geographic average.
For each client group, the transition risk index is calculated by
adding together these three factors. The index is positive when
the counterparty demonstrates above average preparedness and
is negative if it does not. The more the client stands out from its
peers, the more the sector is considered to be at stake, and the
more the country has committed to a rapid energy transition, the
higher the absolute value of the index.
Thus, a player in the Energy or Transport sectors in a country
committed to significantly lowering emissions will have more to
gain or lose than a player in a sector which is less affected in
a country with lower greenhouse gas reduction demands. The
extent to which this actor is affected will depend on its ability
to adapt its strategy and economic model to the new situation.
Reducing climate risks
The CSR sector policies are the first line tool for managing
environmental and social risks, particularly the transitional
climate risk. These policies cover the macrosectors of energy
and transport, which account for over 80% of the carbon footprint
caused by our financing. In particular, the policies on fossil fuels
do not usually include transactions relating to activities which
seem the least compatible with the developments expected in
light of the energy transition and thus potentially the most risky
as regards the transitional climate risk.
The transitional risk index completes this approach by making
it possible to identify clients for which additional analyses seem
necessary in view of their exposure to the transition risk and
management of this risk. This approach applies to all sectors
and all countries.
SIGNIFICANT
EVENTS IN
2021
Definition of an action plan reflecting changes in risks
In 2021, Crédit Agricole CIB evaluated its system for
assessing and managing environmental and climate risks
in light of the recommendations published by the European
Central Bank in November 2020. This analysis highlighted
areas for improvement and resulted in the definition of an
action plan.
Crédit Agricole CIB has adopted a pragmatic approach
involving making adjustments to its actions based on the
intensity of environmental risks projected over the time
horizon of the activities of Crédit Agricole CIB that generate
these risks. In particular, Crédit Agricole CIB has selected
pilot sectors and regions for which the metrics previously
developed (see below) have been deployed at the portfolio
level at meetings of the Strategy and Portfolio Committee.
3.3. PROMOTING CLIMATE SMART OBJECTIVES
Crédit Agricole CIB actively contributes to meeting this objective:
y
by developing its financing of climate-friendly projects and
green bond projects, with a view to doubling the size of its
Green Bonds portfolio between 2019 and 2022;
y
and to seek relevant partnerships.
Project finance
Financing renewable energies is an integral part of Crédit Agricole
CIB’s strategy, who is one of the first providers in financing those
projects. The Bank first entered this sector in 1997 by financing
the first wind farms, and in 2008 it financed a solar energy project
in Spain. The project funding business line has financed in total
more than 46.800 MW of installed wind farm capacity and over
18.600 MW of installed solar panel capacity.
Green Bonds, Green Loans, Sustainability-
Linked Bonds, Sustainability-Linked Loans
Green Bonds have been instrumental in steering the bonds
markets towards climate change financing and helped to create a
link between the market products and the infrastructures required
for the energy transition. Investors are given precise information
on the projects financed by these bonds and their social impacts
and environmental benefits. A growing number of investor clients
value this information and the additional commitment by issuers.
Green Loans have developed along the same principles of
transparency and the link between the financial income/financial
products and the assets required for the energy transition.
Sustainability-Linked Bonds and Sustainability-Linked Loans are
financial products whose cost is indexed against the issuer’s
environmental performance. In 2021, Crédit Agricole CIB also
consolidated its presence in other financial products such as
green securitisations and sustainable derivatives.
Chapter 2 – Economic, social and environmental information
INCORPORATING THE CHALLENGES OF CLIMATE CHANGE
35
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Committed to the development of climate finance since 2010,
with its own dedicated Sustainable Banking team, Crédit
Agricole CIB has confirmed its leading position as arranger on
the Green Bonds, Social Bonds and Sustainability Bonds market
worldwide and helps its clients structure ambitious and innovative
environmental transactions.
In 2021 Crédit Agricole CIB was involved in the following
transactions:
y
The European Commission’s Green Bond NextGenerationEU:
Crédit Agricole CIB acted as co-lead manager of this first historic
bond issue. This is the world’s largest green bond issue, which
supports the European Union’s determination to achieve climate
neutrality by 2050 (€12 billion, 15-year maturity).
y
Fleury Michon’s sustainable securitisation programme: Crédit
Agricole supported Fleury Michon in setting up its securitisa-
tion programme, the financing cost of which is indexed to its
non-financial performance (with indicators on workplace safety,
the energy transition and health/nutrition). As a result of this
transaction, it became the first agri-food company in Europe
to make the financing margin of a securitisation agreement
conditional on the achievement of multi-year CSR targets.
y
The sustainability-linked derivative transaction for CEMEX:
in parallel with the arrangement of a $3.35 billion sustaina-
bility-linked loan, Crédit Agricole CIB participated in a euro
cross-currency swap for CEMEX, using the same indicators
and objectives set out in the sustainability-linked framework
that were used for the bond issue (including, a net reduction
in CO
2
emissions, use of green energy to produce cement).
This swap is one of the leading sustainability-linked swaps in
Latin America.
y
Ford’s inaugural sustainability-linked loan: Crédit Agricole CIB
structured the ESG aspects of the transaction (reduction of CO
2
emissions in production and emitted by the type of vehicles
built), use of electricity from eligible production and supported
Ford in this transaction, which is the first of its kind for a US car
manufacturer. This transaction makes Ford one of the largest
sustainability-linked loan borrowers on the market ($15.5 billion
in total on loans with maturity of between three and five years).
2021 also saw major regulatory changes, notably with the
publication of the first EU Taxonomy delegated acts as part of
the European Commission’s Action Plan for Sustainable Finance
aimed at supporting the growth of responsible financing, including
the Green Bonds market. The head of Crédit Agricole CIB’s
Sustainable Banking team was actively involved in the preparatory
work of the Technical Expert Group (TEG) on Taxonomy. Moreover,
the European Commission has published the EU Green Bond
Standards usability guide, and the Sustainable Finance Disclosure
Regulation (SFDR) on sustainability‐related disclosures in the
financial services sector has entered into force.
Finally, Crédit Agricole CIB remains committed to governance of
the Green Bond, Social Bond and Sustainability Bond markets.
The Bank is a founding member of the Green Bond Principles and
an active member of the Executive Committee of this financial
market initiative. The Bank is also behind the Social Bond
Principles, the governance of which has been incorporated into
that of the Green Bond Principles.
Liquidity green supporting factor
To support its business lines in this area, Crédit Agricole CIB
enables climate change projects to benefit from more favourable
internal costs for accessing funds. This makes it possible to offer
attractive conditions to investors, thus increasing the amount
of responsible finance. This favourable internal cost of liquidity,
previously offered only on medium- and long-term financings, is
now also applied to short-term loans.
Successfully applied for many years within Crédit Agricole CIB, it
has now been extended to other Crédit Agricole Group entities.
Indosuez Wealth Management
After the launch in November 2019 of the Indosuez Objectif
Terre international equity fund (classified as an Article 9 fund
under the SFDR regulation), which offers investments in
securities of companies involved in tackling global warming and
protecting natural resources, Indosuez Wealth Management is
continuing to roll out its responsible offering across all asset
classes. ESG criteria are now integrated into its various support
models (Advisory/Discretionary Management), its processes for
developing and selecting financial products (direct securities,
investment funds, structured products, private equity), as well
as its credit approval policy.
As such, Indosuez Wealth Management now offers its clients and
wealthy clients of the Crédit Agricole Regional Banks management
guidance on environmental and societal issues.
Indosuez’s range of structured products has also been expanded
with a number of green products mainly issued by Crédit Agricole
CIB and a green Structured Product mandate. For example,
CFM Indosuez Wealth Management, in collaboration with Crédit
Agricole CIB, launched an innovative solidarity-based finance
offering, CFM Indosuez Océano, acclaimed by 81 clients and
that includes a €171,000 donation to the Oceanographic Institute
of Monaco, a key player in the protection of the oceans and a
partner of the bank.
Finally, ESG criteria are incorporated into the selection of Private
Equity fund managers and are now used in the management
processes.
Since the end of 2021, the periodic portfolio statements sent to
clients have been supplemented by ESG ratings produced by
Amundi for all directly-held equities and bonds in its investment
universe.
It should be noted that, at the 2021 WealthBriefing Asia Greater
China Awards, Indosuez Wealth Management was named best
bank for its ESG offering and best bank for sustainable and
responsible investments.
SIGNIFICANT
EVENTS IN
2021
The Transition Score
The work on creating a climate transition score for clients
resulted in a second version with sector-specific adapta-
tions for counterparties monitored by major providers of
non-financial data.
The Transition Score, which is a tool that promotes dialogue
based on objective quantitative data, has been designed to
help to support our clients in their decarbonisation trajectory.
Chapter 2 – Economic, social and environmental information
INCORPORATING THE CHALLENGES OF CLIMATE CHANGE
36
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
3.4. IMPROVING OUR CLIMATE PERFORMANCE
Since 2011, in addition to the standard greenhouse gas (GHG)
calculations shown in the “Limiting our direct environmental
footprint” section, an estimation of the Bank’s financing and
investment carbon footprint is now in place, using the P9XCA
methodology.
This calculation showed an indirect carbon footprint about
one thousand times higher than the total operating emissions
estimated for Crédit Agricole CIB, reflecting the carbon intensity
of activities financed and corresponding to the Bank’s active role
in the financing of the world economy.
The order of magnitude, on the basis of the amounts outstanding
at 31 December 2021, was 60 to 65 Mt equivalent of CO
2
, i.e.
a carbon intensity of less than 250 t of CO
2
per million euros of
financing, less than in 2020.
The CSR sector policies and the transition risk index help both
reduce the climate risks of Crédit Agricole CIB (see above) and
improve climate related results. The transition risk index makes
it possible to develop a generalised consideration of this matter
across all sectors and countries. Reflecting the positioning of each
client as regards the energy transition, this approach appears to
be both more precise and more relevant than one that is only
based on successive sector-based exclusions.
The good performances achieved in climate finance reflect Crédit
Agricole CIB’s positive action in this area:
y
In terms of number of loans, renewable energy represented
over 84% of electricity generation project finance in 2021.
y
In 2021, Crédit Agricole CIB acted as bookrunner on €28.3
billion of responsible bond issues for its major clients. The
Bank is regularly recognised by the IFR, the Banker and Global
Capital magazine for its role in the sustainable finance market,
as well as the transactions in which it participates.
y
The exposure of the financing portfolio to the coal sector has
been calculated since 2019 by taking into account both direct
financing of carbon assets and indirect exposure calculated
on client turnover related to carbon using the data available to
us. Decreasing since 2019, this exposure stood at less than
€350 million at the end of 2021, or less than 0.1% of Crédit
Agricole CIB’s total exposures.
3.5. REPORTING ON OUR CLIMATE ACTION
Financial institutions, particularly in the private sector, face a
major dilemma regarding the disclosure of their actions. On the
one hand, they are bound by a duty of confidentiality towards
their clients. On the other hand, public interest groups continue
to demand greater transparency and comparability. Other major
hindrances to accurate reporting of actions performed are the
large numbers of clients and transactions, the low relevance of
international economic classifications to climate issues and the
wide range of bank loans.
Crédit Agricole CIB is nevertheless making major efforts in
terms of transparency by publishing its environmental and social
evaluation and exclusion criteria in its sector wide CSR policies
and presenting its climate risk assessment approach and tools.
In a spirit of Corporate Social Responsibility, this transparent
approach meets the recommendations of TCFD and the
requirements of Article 173 of the law on energy transition for
green growth.
Crédit Agricole CIB encourages its clients to also engage in
this transparency approach. This is embodied in the Equator
Principles, which contain an obligation for clients to publish certain
information. This is also true of the Green Bond Principles and
Social Bond Principles, which aim to increase transparency on
these market by encouraging issuers to regularly publish their
reporting on fund allocation and on environmental and social
impact measures for financed projects.
SIGNIFICANT
EVENTS IN
2021
Steering the Bank’s carbon trajectory
In 2021, Crédit Agricole CIB carried out initial work on
defining carbon metrics with a view to steering sectoral
trajectories. Begun in the oil and gas sector, this work will
be extended in 2022 to other sectors with a high carbon
footprint (air and maritime transport, automotive industry,
construction, steel production, etc.).
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
37
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
4.
HELPING OUR CLIENTS TO MEET THEIR
SOCIAL, ENVIRONMENTAL AND SOLIDARITY
RELATED CHALLENGES
Helping our clients to meet their social, environmental and solidarity challenges is an essential component of our CSR
approach. This is primarily achieved by:
y
offering dedicated funds to finance environmental projects : the Green and Social notes;
y
advising our clients on social and environmental projects;
y
promoting Socially Responsible Investment in Wealth Management;
y
assessing and managing the risks inherent in the environmental and social impacts of our financing.
4.1. OFFERING DEDICATED FUNDS TO FINANCE ENVIRONMENTAL AND SOCIAL
PROJECTS: GREEN AND SOCIAL NOTES
Concept - Description
In 2013, Crédit Agricole CIB developed a new product: the “Crédit
Agricole CIB Green Notes”. The Green Notes are bonds or any
other financial instrument issued by Crédit Agricole CIB whose
funds raised is dedicated to funding environmental projects.
In 2018, Crédit Agricole put in place a Green Bond Framework to
serve as a common framework for all the Group’s issuing entities,
including Crédit Agricole CIB, for their respective Green Bond and
Green Note issues. In November 2020, Crédit Agricole published
a Group Social Bond Framework covering all the Group’s issuing
entities, including Crédit Agricole CIB. This Framework allowed
Crédit Agricole S.A. to successfully launch its inaugural €1 billion
Social Bond issue on 2 December 2020.
For its Green and Social Notes, Crédit Agricole CIB has followed
the principles laid down by the Green and Social Bond Principles
which are voluntary principles for the formulation of Green and
Social Bonds and allowed to guide the market development.
The Green and Social Bond Principles are offered by the major
green bond and social bond arranging banks, including Crédit
Agricole CIB.
Crédit Agricole CIB’s Green and Social Notes are presented
based on four structuring lines, defined by the Green and Social
Bond Principles:
y
use of the funds;
y
project assessment and selection;
y
funds monitoring;
y
reporting.
The implementation of the Green Bond
Principles is described on the Bank’s website
(www.ca-cib.com). Second opinion
Crédit Agricole CIB’s “Green and Social Notes” issued under
the Group’s Green and Social Bond Framework benefit from a
second opinion from the extra-financial rating agency V.E (Vigeo
Eiris). V.E’s experts approved the relevance and soundness of the
Group’s Green and Social Bond Frameworks, the methodology
used to select the projects to be included in the green and social
portfolio as well as its alignment with the Green and Social Bond
Principles.
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
38
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Inventory
GREEN NOTES OUTSTANDINGS
At 31 December 2021, the amount outstanding of Green Notes and similar debt products issued by Crédit Agricole CIB enabling the
financing of green loans according to the eligibility criteria of the Group’s Green Bond Framework, was €3.912 billion.
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
14/06/2013
18
EUR
10.0
10.0
27/04/2016
15
EUR
10.0
10.0
29/04/2016
19
EUR
61.0
61.0
09/09/2016
11
EUR
12.0
12.0
18/11/2016
11
EUR
5.0
5.0
29/11/2016
11
EUR
5.0
5.0
16/12/2016
11
EUR
10.0
10.0
29/06/2017
5
IDR
16,850.0
1.0
21/11/2017
5
USD
88.0
77.4
21/06/2018
7
SEK
13.0
1.3
11/07/2018
5
EUR
2.7
2.7
27/09/2018
5
SEK
31.0
3.0
28/09/2018
5
GBP
4.5
5.3
31/10/2018
7
USD
7.1
6.2
01/11/2018
4
IDR
20,000.0
1.2
23/11/2018
5
SEK
10.0
1.0
05/12/2018
7
SEK
2.0
0.2
11/12/2018
12
EUR
3.8
3.8
18/12/2018
5
SEK
24.1
2.3
20/12/2018
5
USD
16.3
14.3
20/12/2018
5
AUD
47.7
30.5
21/12/2018
7
SEK
30.0
2.9
27/12/2018
12
EUR
85.0
85.0
09/01/2019
4
PLN
40.2
8.8
22/01/2019
12
EUR
3.8
3.8
13/02/2019
6
SEK
10.8
1.1
19/02/2019
5
AUD
83.6
53.4
19/02/2019
5
NZD
53.1
31.9
21/02/2019
4
IDR
19,000.0
1.2
26/02/2019
3
INR
285.4
3.4
19/03/2019
15
EUR
75.0
75.0
21/03/2019
6
SEK
8.4
0.8
27/03/2019
4
PLN
27.5
6.0
23/04/2019
12
EUR
5.0
5.0
25/04/2019
12
EUR
209.5
209.5
06/05/2019
7
SEK
10.0
1.0
07/05/2019
6
SEK
10.9
1.1
20/06/2019
6
EUR
1.1
1.1
04/07/2019
12
EUR
30.0
30.0
19/07/2019
3
PLN
25.5
5.5
25/07/2019
5
JPY
100.0
0.8
30/07/2019
5
TRY
11.6
0.8
07/08/2019
5
ZAR
20.0
1.1
08/08/2019
5
MXN
17.0
0.7
13/09/2019
5
EUR
0.3
0.3
13/09/2019
5
EUR
0.8
0.8
03/10/2019
5
EUR
0.0
0.0
08/10/2019
5
EUR
0.0
0.0
10/10/2019
3
USD
3.0
2.6
31/10/2019
7
EUR
0.8
0.8
31/10/2019
10
EUR
0.5
0.5
31/10/2019
10
EUR
0.3
0.3
04/11/2019
4
EUR
26.1
26.1
14/11/2019
6
TRY
7.9
0.5
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
39
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
14/11/2019
6
TRY
8.4
0.6
15/11/2019
10
EUR
2.0
2.0
20/11/2019
5
EUR
0.3
0.3
20/11/2019
8
EUR
2.5
2.5
20/11/2019
10
EUR
0.5
0.5
20/11/2019
10
EUR
0.5
0.5
25/11/2019
10
EUR
0.5
0.5
26/11/2019
5
SEK
10.0
1.0
05/12/2019
3
USD
9.0
7.9
10/12/2019
3
EUR
1.3
1.3
11/12/2019
3
USD
4.5
4.0
12/12/2019
8
TRY
5.4
0.4
12/12/2019
10
TRY
21.2
1.4
12/12/2019
15
ZAR
58.0
3.2
12/12/2019
15
AUD
25.0
16.0
13/12/2019
5
EUR
0.5
0.5
19/12/2019
7
EUR
0.8
0.8
20/12/2019
7
EUR
0.6
0.6
23/12/2019
5
EUR
0.5
0.5
27/12/2019
4
MXN
61.4
2.6
27/12/2019
3
USD
0.9
0.8
27/12/2019
3
USD
0.5
0.4
06/01/2020
8
EUR
1.0
1.0
20/01/2020
5
EUR
1.4
1.4
21/01/2020
3
USD
2.2
1.9
24/01/2020
8
EUR
5.1
5.1
24/01/2020
8
EUR
2.0
2.0
27/01/2020
3
USD
1.5
1.3
28/01/2020
5
EUR
1.0
1.0
07/02/2020
5
EUR
0.5
0.5
07/02/2020
3
USD
1.0
0.9
10/02/2020
8
EUR
2.0
2.0
13/02/2020
5
ZAR
25.0
1.4
13/02/2020
7
TRY
7.4
0.5
13/02/2020
15
ZAR
56.5
3.1
14/02/2020
5
EUR
4.7
4.7
14/02/2020
6
EUR
0.2
0.2
18/02/2020
3
USD
10.3
9.1
19/02/2020
4
ZAR
25.0
1.4
20/02/2020
5
EUR
0.5
0.5
24/02/2020
5
EUR
10.6
10.6
24/02/2020
3
EUR
2.0
2.0
24/02/2020
3
USD
0.6
0.5
24/02/2020
3
USD
1.4
1.3
25/02/2020
3
USD
0.8
0.7
25/02/2020
5
USD
0.3
0.2
26/02/2020
5
USD
1.1
1.0
27/02/2020
5
EUR
0.7
0.7
27/02/2020
3
USD
0.1
0.0
27/02/2020
3
USD
5.2
4.6
27/02/2020
3
USD
1.4
1.3
27/02/2020
2
USD
0.2
0.2
28/02/2020
5
EUR
5.0
5.0
28/02/2020
3
USD
6.5
5.7
02/03/2020
3
EUR
2.3
2.3
02/03/2020
5
EUR
2.1
2.1
02/03/2020
5
EUR
0.5
0.5
02/03/2020
5
EUR
3.5
3.5
02/03/2020
3
INR
288.6
3.4
03/03/2020
3
USD
1.0
0.9
04/03/2020
5
EUR
2.8
2.8
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
40
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
05/03/2020
7
TRY
8.4
0.6
05/03/2020
15
ZAR
37.9
2.1
06/03/2020
10
EUR
3.1
3.1
06/03/2020
10
EUR
3.2
3.2
06/03/2020
3
EUR
0.5
0.5
09/03/2020
5
ZAR
25.0
1.4
11/03/2020
10
EUR
3.0
3.0
11/03/2020
3
EUR
0.3
0.3
13/03/2020
10
EUR
2.0
2.0
13/03/2020
10
EUR
2.0
2.0
16/03/2020
10
EUR
1.0
1.0
18/03/2020
5
IDR
33,150.0
2.0
18/03/2020
3
TRY
10.0
0.7
19/03/2020
5
EUR
0.5
0.5
23/03/2020
6
TRY
9.8
0.6
23/03/2020
15
ZAR
47.4
2.6
27/03/2020
5
EUR
1.0
1.0
03/04/2020
10
EUR
2.0
2.0
07/05/2020
6
EUR
1.3
1.3
14/05/2020
12
EUR
8.0
8.0
04/06/2020
10
USD
10.0
8.8
05/06/2020
10
USD
10.0
8.8
09/06/2020
5
JPY
200.0
1.5
09/06/2020
10
JPY
100.0
0.8
10/06/2020
3
USD
0.5
0.4
11/06/2020
8
EUR
28.2
28.2
15/06/2020
6
EUR
3.3
3.3
17/06/2020
3
USD
0.9
0.8
18/06/2020
10
ZAR
250.0
13.8
25/06/2020
5
USD
3.9
3.4
26/06/2020
5
EUR
7.5
7.5
21/07/2020
6
TRY
10.1
0.7
24/07/2020
8
EUR
1.3
1.3
27/07/2020
5
USD
7.0
6.1
27/07/2020
5
AUD
20.3
13.0
05/08/2020
6
TRY
26.3
1.7
25/08/2020
5
USD
1.0
0.9
31/08/2020
3
EUR
1.6
1.6
31/08/2020
3
USD
1.3
1.1
04/09/2020
8
EUR
31.0
31.0
04/09/2020
8
EUR
20.0
20.0
04/09/2020
5
EUR
14.6
14.6
04/09/2020
5
EUR
1.2
1.2
15/09/2020
10
USD
112.0
98.5
02/10/2020
5
EUR
0.4
0.4
07/10/2020
5
PLN
19.3
4.2
16/10/2020
3
USD
0.5
0.4
21/10/2020
1
USD
1.6
1.4
22/10/2020
10
USD
1.8
1.6
22/10/2020
6
GBP
1.0
1.2
26/10/2020
3
INR
106.0
1.3
26/10/2020
2
USD
0.6
0.5
27/10/2020
5
TRY
9.4
0.6
27/10/2020
2
TRY
19.9
1.3
28/10/2020
5
USD
1.0
0.9
29/10/2020
2
EUR
0.7
0.7
03/11/2020
1
EUR
0.5
0.5
27/11/2020
3
INR
189.1
2.2
03/12/2020
5
USD
2.7
2.4
03/12/2020
10
AUD
3.8
2.4
07/12/2020
5
EUR
14.2
14.2
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
41
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
09/12/2020
10
EUR
0.2
0.2
14/12/2020
10
EUR
7.9
7.9
17/12/2020
5
AUD
3.8
2.4
17/12/2020
10
AUD
3.8
2.4
04/01/2021
5
EUR
17.3
17.3
04/01/2021
1
USD
0.6
0.5
06/01/2021
10
EUR
1.9
1.9
07/01/2021
6
EUR
54.0
54.0
13/01/2021
5
SEK
30.0
2.9
14/01/2021
8
EUR
86.2
86.2
14/01/2021
8
EUR
6.4
6.4
14/01/2021
10
JPY
1,500.0
11.5
14/01/2021
5
TRY
8.0
0.5
14/01/2021
8
TRY
18.5
1.2
21/01/2021
5
EUR
1.0
1.0
22/01/2021
4
USD
2.9
2.5
25/01/2021
4
JPY
425.0
3.2
27/01/2021
5
EUR
1.0
1.0
27/01/2021
1
JPY
3,556.0
27.2
27/01/2021
3
JPY
5,538.0
42.3
29/01/2021
4
JPY
1,329.0
10.2
02/02/2021
7
USD
12.2
10.8
03/02/2021
5
USD
150.0
131.9
05/02/2021
8
EUR
1.0
1.0
08/02/2021
10
EUR
15.6
15.6
09/02/2021
7
USD
7.9
6.9
10/02/2021
5
TRY
16.5
1.1
12/02/2021
5
EUR
0.5
0.5
12/02/2021
6
GBP
2.0
2.4
12/02/2021
6
USD
2.5
2.2
16/02/2021
4
JPY
1,501.0
11.5
17/02/2021
12
EUR
5.0
5.0
17/02/2021
1
USD
0.9
0.8
22/02/2021
10
EUR
7.5
7.5
22/02/2021
10
EUR
7.5
7.5
22/02/2021
2
EUR
1.3
1.3
23/02/2021
5
EUR
1.7
1.7
23/02/2021
6
EUR
1.2
1.2
25/02/2021
2
JPY
5,121.0
39.1
26/02/2021
3
USD
2.4
2.1
01/03/2021
8
EUR
13.1
13.1
01/03/2021
4
JPY
1,033.0
7.9
02/03/2021
4
USD
2.1
1.8
02/03/2021
7
USD
2.4
2.1
02/03/2021
5
JPY
100.0
0.8
02/03/2021
10
TRY
43.0
2.8
04/03/2021
15
USD
40.0
35.2
05/03/2021
10
EUR
2.0
2.0
08/03/2021
5
USD
10.0
8.8
08/03/2021
6
JPY
300.0
2.3
08/03/2021
6
TRY
7.7
0.5
08/03/2021
10
TRY
22.0
1.5
09/03/2021
5
EUR
1.1
1.1
11/03/2021
3
USD
0.3
0.2
12/03/2021
6
USD
0.9
0.8
12/03/2021
6
GBP
1.2
1.4
15/03/2021
5
EUR
14.9
14.9
17/03/2021
5
EUR
49.8
49.8
18/03/2021
6
USD
1.0
0.9
18/03/2021
3
EUR
0.6
0.6
19/03/2021
5
EUR
0.5
0.5
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
42
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
19/03/2021
3
JPY
1,107.0
8.5
19/03/2021
1
JPY
1,596.0
12.2
19/03/2021
3
JPY
4,709.0
36.0
22/03/2021
5
EUR
0.9
0.9
23/03/2021
7
USD
50.0
44.0
23/03/2021
6
TRY
7.5
0.5
24/03/2021
10
EUR
4.0
4.0
24/03/2021
5
EUR
5.2
5.2
26/03/2021
15
AUD
12.0
7.7
30/03/2021
7
USD
0.7
0.6
31/03/2021
10
EUR
2.0
2.0
06/04/2021
8
EUR
46.9
46.9
06/04/2021
12
EUR
3.0
3.0
06/04/2021
6
EUR
0.5
0.5
06/04/2021
1
EUR
0.6
0.6
06/04/2021
5
EUR
0.8
0.8
12/04/2021
7
EUR
54.4
54.4
12/04/2021
10
EUR
57.9
57.9
13/04/2021
6
GBP
0.1
0.1
14/04/2021
8
EUR
97.5
97.5
14/04/2021
6
GBP
2.0
2.4
14/04/2021
6
USD
1.2
1.0
14/04/2021
7
USD
1.0
0.9
15/04/2021
5
JPY
100.0
0.8
20/04/2021
5
EUR
0.5
0.5
21/04/2021
5
USD
1.0
0.9
21/04/2021
5
USD
5.2
4.6
22/04/2021
8
EUR
53.1
53.1
26/04/2021
15
EUR
0.5
0.5
28/04/2021
10
EUR
2.0
2.0
28/04/2021
10
EUR
2.0
2.0
28/04/2021
3
EUR
24.7
24.7
03/05/2021
8
EUR
7.9
7.9
04/05/2021
7
EUR
2.8
2.8
04/05/2021
5
PLN
34.7
7.6
05/05/2021
10
EUR
1.6
1.6
05/05/2021
5
EUR
0.6
0.6
05/05/2021
10,0
EUR
4.0
4.0
06/05/2021
6
EUR
4.3
4.3
07/05/2021
8
EUR
36.0
36.0
07/05/2021
8
EUR
40.0
40.0
07/05/2021
5
EUR
17.4
17.4
07/05/2021
5
SEK
4.2
0.4
07/05/2021
6
GBP
0.1
0.1
10/05/2021
2
EUR
0.8
0.8
10/05/2021
1
USD
1.7
1.5
14/05/2021
6
GBP
1.9
2.3
14/05/2021
6
USD
2.4
2.1
19/05/2021
10
EUR
2.0
2.0
19/05/2021
8
EUR
0.5
0.5
25/05/2021
5
JPY
50.0
0.4
27/05/2021
2
JPY
2,935.0
22.4
27/05/2021
4
JPY
805.0
6.1
28/05/2021
10
EUR
38.3
38.3
28/05/2021
10
EUR
0.9
0.9
02/06/2021
10
EUR
2.0
2.0
03/06/2021
12
EUR
1.0
1.0
04/06/2021
5
EUR
0.3
0.3
04/06/2021
5
EUR
0.4
0.4
09/06/2021
3
USD
2.1
1.8
09/06/2021
3
USD
1.4
1.2
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
43
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
10/06/2021
4
JPY
1,336.0
10.2
10/06/2021
7
USD
0.5
0.4
11/06/2021
6
GBP
4.1
4.8
11/06/2021
6
USD
2.2
2.0
14/06/2021
6
GBP
0.3
0.3
15/06/2021
6
EUR
2.0
2.0
15/06/2021
8
EUR
89.8
89.8
17/06/2021
5
TRY
13.5
0.9
17/06/2021
5
TRY
25.0
1.7
17/06/2021
5
EUR
1.7
1.7
18/06/2021
5
EUR
0.8
0.8
18/06/2021
10
EUR
2.0
2.0
18/06/2021
5
USD
6.0
5.3
18/06/2021
5
USD
8.5
7.5
18/06/2021
5
USD
1.8
1.6
18/06/2021
3
EUR
3.3
3.3
18/06/2021
5
USD
13.8
12.1
21/06/2021
5
EUR
7.0
7.0
23/06/2021
5,0
EUR
1.0
1.0
23/06/2021
5
EUR
0.9
0.9
24/06/2021
3
EUR
2.5
2.5
24/06/2021
1
USD
2.1
1.8
29/06/2021
8
EUR
16.5
16.5
29/06/2021
2
JPY
1,314.0
10.0
29/06/2021
2
JPY
4,410.0
33.7
29/06/2021
2
USD
1.5
1.3
30/06/2021
5
EUR
0.3
0.3
30/06/2021
5
EUR
0.4
0.4
30/06/2021
3
USD
2.4
2.1
01/07/2021
1
EUR
2.1
2.1
02/07/2021
6
EUR
5.0
5.0
02/07/2021
6
SEK
18.0
1.7
05/07/2021
3
EUR
2.3
2.3
05/07/2021
3
EUR
1.5
1.5
06/07/2021
8
EUR
55.8
55.8
06/07/2021
3
USD
4.3
3.8
06/07/2021
2
EUR
2.0
2.0
07/07/2021
10
EUR
2.0
2.0
07/07/2021
3
USD
2.4
2.1
08/07/2021
12
EUR
0.5
0.5
08/07/2021
4
JPY
725.0
5.5
08/07/2021
3
EUR
4.3
4.3
09/07/2021
10
EUR
0.7
0.7
09/07/2021
6,0
GBP
0.2
0.2
09/07/2021
6
USD
0.5
0.4
09/07/2021
6,0
USD
1.2
1.1
09/07/2021
6,0
GBP
2.2
2.7
12/07/2021
1
EUR
1.7
1.7
13/07/2021
5,0
TRY
10.5
0.7
13/07/2021
3
TRY
16.5
1.1
13/07/2021
5
JPY
1,000.0
7.6
13/07/2021
2
USD
1.5
1.3
15/07/2021
6
EUR
0.8
0.8
16/07/2021
3
EUR
4.0
4.0
19/07/2021
2
USD
2.5
2.2
20/07/2021
5
PLN
15.0
3.3
20/07/2021
5
PLN
44.5
9.7
21/07/2021
4
USD
8.0
7.0
21/07/2021
2
EUR
1.7
1.7
22/07/2021
4
EUR
0.6
0.6
22/07/2021
5
USD
10.9
9.6
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
44
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
23/07/2021
2
EUR
1.5
1.5
26/07/2021
3
JPY
200.0
1.5
26/07/2021
5
JPY
500.0
3.8
27/07/2021
4
JPY
582.0
4.4
29/07/2021
4
EUR
1.5
1.5
29/07/2021
2,0
JPY
3,423.0
26.1
29/07/2021
4
JPY
3,760.0
28.7
29/07/2021
3
EUR
2.0
2.0
29/07/2021
3
EUR
2.0
2.0
30/07/2021
6
EUR
0.8
0.8
30/07/2021
5
EUR
0.6
0.6
02/08/2021
5
USD
2.5
2.2
02/08/2021
5
EUR
8.4
8.4
03/08/2021
10
EUR
2.0
2.0
03/08/2021
1,0
JPY
300.0
2.3
05/08/2021
5
EUR
0.6
0.6
05/08/2021
3
USD
1.8
1.6
05/08/2021
3
USD
1.6
1.4
06/08/2021
4,0
EUR
1.0
1.0
06/08/2021
6
EUR
0.6
0.6
06/08/2021
10
EUR
3.0
3.0
10/08/2021
10
EUR
3.0
3.0
13/08/2021
7
EUR
3.0
3.0
13/08/2021
10
EUR
3.0
3.0
13/08/2021
6,0
GBP
3.0
3.5
13/08/2021
6,0
USD
2.0
1.8
19/08/2021
2,0
EUR
2.2
2.2
02/09/2021
10
EUR
3.0
3.0
02/09/2021
10
EUR
2.0
2.0
03/09/2021
5
EUR
3.3
3.3
14/09/2021
5
PLN
12.8
2.8
14/09/2021
5
PLN
38.8
8.4
14/09/2021
6
GBP
4.0
4.8
14/09/2021
6
USD
4.0
3.5
15/09/2021
8
EUR
150.0
150.0
17/09/2021
3
USD
5.5
4.8
20/09/2021
10
EUR
2.0
2.0
21/09/2021
3
EUR
2.3
2.3
24/09/2021
4
EUR
9.6
9.6
29/09/2021
10
EUR
2.0
2.0
04/10/2021
5
EUR
9.5
9.5
04/10/2021
10
JPY
100.0
0.8
06/10/2021
8
EUR
63.3
63.3
08/10/2021
10
EUR
2.0
2.0
13/10/2021
10
EUR
3.0
3.0
13/10/2021
7
EUR
2.0
2.0
14/10/2021
6
GBP
3.0
3.6
14/10/2021
10
JPY
100.0
0.8
19/10/2021
10
EUR
1.5
1.5
19/10/2021
5
EUR
39.6
39.6
21/10/2021
6
USD
3.0
2.6
21/10/2021
6
GBP
4.0
4.8
21/10/2021
6
EUR
3.0
3.0
21/10/2021
3
EUR
1.5
1.5
22/10/2021
6
EUR
1.7
1.7
22/10/2021
5
EUR
0.6
0.6
28/10/2021
4
JPY
2,481.0
19.0
02/11/2021
7
GBP
5.0
5.9
03/11/2021
6
USD
3.0
2.6
03/11/2021
6
GBP
3.0
3.6
04/11/2021
5
TRY
17.5
1.2
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
45
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
04/11/2021
3
TRY
15.5
1.0
05/11/2021
6
EUR
2.8
2.8
05/11/2021
4
BRL
5.0
0.8
08/11/2021
7
EUR
3.0
3.0
09/11/2021
3
USD
1.7
1.5
15/11/2021
6
EUR
5.0
5.0
15/11/2021
5
EUR
4.5
4.5
15/11/2021
5
USD
1.7
1.5
16/11/2021
5
PLN
8.7
1.9
16/11/2021
5
PLN
27.2
5.9
19/11/2021
9
EUR
3.0
3.0
19/11/2021
5
USD
2.2
1.9
26/11/2021
8
EUR
8.4
8.4
26/11/2021
8
EUR
6.4
6.4
26/11/2021
5
EUR
0.8
0.8
26/11/2021
6
USD
3.0
2.6
26/11/2021
6
GBP
3.0
3.6
26/11/2021
6
EUR
3.0
3.0
01/12/2021
5
EUR
30.0
30.0
13/12/2021
7
USD
50.0
44.0
17/12/2021
6
USD
3.0
2.6
17/12/2021
6
GBP
3.0
3.6
17/12/2021
6
EUR
3.0
3.0
20/12/2021
7
JPY
100.0
0.8
27/12/2021
8
EUR
100.0
100.0
27/12/2021
8
EUR
150.0
150.0
14/04/2021
8
EUR
100.00
130.00
14/04/2021
6
GBP
2.00
2.31
14/04/2021
6
USD
2.00
1.66
14/04/2021
7
USD
1.50
1.28
15/04/2021
5
JPY
100.00
0.78
20/04/2021
5
EUR
1.50
1.50
21/04/2021
5
USD
2.00
1.68
21/04/2021
5
USD
5.23
4.40
22/04/2021
8
EUR
100.00
100.00
26/04/2021
15
EUR
0.50
0.50
27/04/2021
3
USD
2.46
2.05
28/04/2021
10
EUR
2.00
2.00
28/04/2021
10
EUR
2.00
2.00
28/04/2021
3
EUR
25.11
25.11
03/05/2021
8
EUR
30.00
30.00
04/05/2021
7
EUR
3.00
3.00
04/05/2021
5
PLN
35.00
7.70
05/05/2021
10
EUR
2.01
2.01
05/05/2021
5
EUR
0.90
0.90
05/05/2021
10
EUR
4.00
4.00
06/05/2021
6
EUR
7.00
7.00
07/05/2021
8
EUR
50.00
50.00
07/05/2021
8
EUR
50.00
70.00
07/05/2021
5
EUR
30.00
30.00
07/05/2021
5
SEK
10.00
0.98
07/05/2021
6
GBP
2.00
2.33
10/05/2021
2
EUR
1.33
1.33
10/05/2021
1
USD
2.15
1.79
14/05/2021
6
EUR
1.00
1.00
14/05/2021
6
GBP
2.00
2.35
14/05/2021
6
USD
2.50
2.13
19/05/2021
10
EUR
2.00
2.00
19/05/2021
8
EUR
0.50
0.50
20/05/2021
5
EUR
3.00
3.00
25/05/2021
5
JPY
50.00
0.38
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
46
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
27/05/2021
2
JPY
1,349.00
10.25
27/05/2021
2
JPY
2,935.00
22.30
27/05/2021
4
JPY
805.00
6.07
28/05/2021
10
EUR
40.00
60.00
28/05/2021
10
EUR
30.00
30.00
28/05/2021
2
USD
2.13
1.75
02/06/2021
10
EUR
2.00
2.00
03/06/2021
12
EUR
1.00
1.00
04/06/2021
5
EUR
0.60
0.60
04/06/2021
5
EUR
0.70
0.70
09/06/2021
3
USD
3.03
2.48
09/06/2021
3
USD
1.63
1.34
10/06/2021
4
JPY
1,336.00
10.03
10/06/2021
7
USD
1.00
0.82
11/06/2021
6
GBP
4.50
5.17
11/06/2021
6
USD
3.00
2.50
14/06/2021
6
GBP
2.00
2.33
15/06/2021
6
EUR
5.00
5.00
15/06/2021
8
EUR
130.00
130.00
17/06/2021
5
TRY
13.50
1.37
17/06/2021
5
TRY
27.00
2.74
17/06/2021
5
EUR
1.69
1.69
18/06/2021
5
EUR
1.09
1.09
18/06/2021
10
EUR
2.00
2.00
18/06/2021
5
USD
6.00
4.93
18/06/2021
5
USD
8.49
6.98
18/06/2021
5
USD
1.81
1.49
18/06/2021
3
EUR
3.28
3.28
18/06/2021
5
USD
13.80
11.33
21/06/2021
5
EUR
50.00
50.00
21/06/2021
3
EUR
4.88
4.88
22/06/2021
2
EUR
1.93
1.93
23/06/2021
5
EUR
1.00
1.00
23/06/2021
5
EUR
0.90
0.90
24/06/2021
3
EUR
2.52
2.52
24/06/2021
1
USD
2.08
1.71
24/06/2021
1
USD
1.72
1.41
25/06/2021
1
EUR
4.45
3.68
28/06/2021
2
EUR
2.40
2.40
29/06/2021
8
EUR
30.00
30.00
29/06/2021
2
JPY
1,314.00
9.83
29/06/2021
2
JPY
4,410.00
32.98
29/06/2021
2
USD
1.50
1.24
30/06/2021
5
EUR
0.64
0.64
30/06/2021
5
EUR
0.60
0.60
30/06/2021
3
USD
2.40
2.00
01/07/2021
3
EUR
3.55
3.55
01/07/2021
1
EUR
2.10
2.10
02/07/2021
5
EUR
5.50
5.50
02/07/2021
6
EUR
5.50
5.50
02/07/2021
6
SEK
30.00
2.96
05/07/2021
3
EUR
3.41
3.41
05/07/2021
3
EUR
2.28
2.28
05/07/2021
3
EUR
1.45
1.45
06/07/2021
8
EUR
100.00
100.00
06/07/2021
3
USD
4.27
3.58
06/07/2021
2
EUR
2.00
2.00
07/07/2021
10
EUR
2.00
2.00
07/07/2021
3
USD
2.38
2.00
07/07/2021
3
EUR
1.50
1.50
08/07/2021
12
EUR
0.50
0.50
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
47
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
08/07/2021
4
JPY
725.00
5.50
08/07/2021
3
EUR
4.30
4.30
09/07/2021
10
EUR
1.15
1.15
09/07/2021
6
GBP
2.00
2.33
09/07/2021
6
USD
2.00
1.64
09/07/2021
6
USD
3.00
2.46
09/07/2021
6
GBP
3.00
3.49
12/07/2021
3
JPY
500.00
3.81
12/07/2021
1
EUR
1.70
1.70
13/07/2021
5
TRY
10.50
1.02
13/07/2021
3
TRY
16.50
1.61
13/07/2021
5
JPY
1,000.00
7.57
13/07/2021
3
USD
1.50
1.26
13/07/2021
3
USD
2.15
1.81
13/07/2021
2
USD
1.50
1.26
15/07/2021
6
EUR
0.75
0.75
16/07/2021
3
EUR
4.01
4.01
19/07/2021
2
USD
2.53
2.14
20/07/2021
6
EUR
0.80
0.80
20/07/2021
5
PLN
27.25
5.97
20/07/2021
5
PLN
57.25
12.54
21/07/2021
4
USD
8.00
6.79
21/07/2021
2
EUR
1.74
1.74
22/07/2021
4
EUR
0.63
0.63
22/07/2021
5
USD
10.90
9.23
23/07/2021
2
EUR
1.53
1.53
26/07/2021
3
JPY
200.00
1.52
26/07/2021
5
JPY
500.00
3.83
27/07/2021
4
JPY
582.00
4.51
29/07/2021
4
EUR
1.45
1.45
29/07/2021
2
JPY
3,423.00
25.90
29/07/2021
4
JPY
3,760.00
29.11
29/07/2021
3
EUR
2.00
2.00
29/07/2021
3
EUR
2.00
2.00
30/07/2021
6
EUR
0.80
0.80
30/07/2021
5
EUR
0.60
0.60
02/08/2021
5
USD
30.00
25.48
02/08/2021
5
EUR
30.00
30.00
03/08/2021
10
EUR
2.00
2.00
03/08/2021
1
JPY
300.00
2.29
05/08/2021
5
EUR
0.60
0.60
05/08/2021
3
USD
1.83
1.55
05/08/2021
3
USD
1.55
1.32
06/08/2021
4
EUR
1.00
1.00
06/08/2021
6
EUR
0.60
0.60
06/08/2021
10
EUR
3.00
3.00
10/08/2021
10
EUR
3.00
3.00
11/08/2021
1
USD
0.75
0.63
13/08/2021
7
EUR
3.00
3.00
13/08/2021
10
EUR
3.00
3.00
13/08/2021
6
GBP
3.00
3.49
13/08/2021
6
USD
3.00
2.52
19/08/2021
2
EUR
2.17
2.17
02/09/2021
10
EUR
3.00
3.00
02/09/2021
10
EUR
2.00
2.00
03/09/2021
5
EUR
3.30
3.30
14/09/2021
5
PLN
12.75
2.82
14/09/2021
5
PLN
38.77
8.57
14/09/2021
6
GBP
4.00
4.68
14/09/2021
6
USD
4.00
3.37
15/09/2021
8
EUR
150.00
150.00
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
48
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Issue date
Maturity (years)
Currency
Amount in currency (million)
Equivalent amount in €million
17/09/2021
3
USD
5.45
4.59
20/09/2021
10
EUR
2.00
2.00
21/09/2021
3
EUR
2.30
2.30
24/09/2021
4
EUR
30.00
30.00
28/09/2021
3
USD
1.67
1.41
29/09/2021
10
EUR
2.00
2.00
04/10/2021
5
EUR
30.00
30.00
04/10/2021
10
JPY
100.00
0.77
06/10/2021
8
EUR
100.00
100.00
08/10/2021
10
EUR
2.00
2.00
13/10/2021
10
EUR
3.00
3.00
13/10/2021
7
EUR
2.00
2.00
14/10/2021
6
GBP
3.00
3.49
14/10/2021
10
JPY
100.00
0.77
19/10/2021
10
EUR
1.50
1.50
19/10/2021
5
EUR
39.58
39.58
21/10/2021
6
USD
3.00
2.53
21/10/2021
6
GBP
4.00
4.66
21/10/2021
6
EUR
3.00
3.00
21/10/2021
3
EUR
1.50
1.50
22/10/2021
6
EUR
1.72
1.72
22/10/2021
5
EUR
0.60
0.60
28/10/2021
4
JPY
2,481.00
18.72
02/11/2021
7
GBP
5.00
5.93
03/11/2021
6
USD
3.00
2.54
03/11/2021
6
GBP
3.00
3.51
04/11/2021
5
TRY
17.50
1.78
04/11/2021
3
TRY
15.50
1.58
05/11/2021
6
EUR
2.80
2.80
05/11/2021
4
BRL
5.00
0.79
08/11/2021
7
EUR
3.00
3.00
09/11/2021
3
USD
1.70
1.47
15/11/2021
6
EUR
5.00
5.00
15/11/2021
5
EUR
4.50
4.50
15/11/2021
5
USD
1.72
1.48
16/11/2021
5
PLN
50.00
11.10
16/11/2021
5
PLN
50.00
11.10
19/11/2021
9
EUR
3.00
3.00
19/11/2021
5
USD
2.16
1.86
26/11/2021
8
EUR
30.00
30.00
26/11/2021
8
EUR
30.00
30.00
26/11/2021
5
EUR
0.77
0.77
26/11/2021
6
USD
3.00
2.60
26/11/2021
6
GBP
3.00
3.54
26/11/2021
6
EUR
3.00
3.00
01/12/2021
5
EUR
30.00
30.00
13/12/2021
7
USD
50.00
44.08
16/12/2021
5
SEK
50.00
4.87
17/12/2021
6
USD
3.00
2.62
17/12/2021
6
GBP
3.00
3.52
17/12/2021
6
EUR
3.00
3.00
20/12/2021
7
JPY
100.00
0.78
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
49
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
COMPOSITION OF THE GREEN NOTE PORTFOLIO
As of 31 December 2021, the breakdown of the Green Notes portfolio is as follows. It is well diversified, both geographically and
sectorially, in line with Crédit Agricole CIB’s conviction that the transition to a greener economy will involve numerous industrial sectors,
around the world.
f
Geographic distribution
Asia/Oceania
Latin America
16%
15%
3%
Europe
62%
North America
Africa-Middle East
4%
f
Breakdown by sector
Public Mass
Tranportation
Waste & Water
Renewable
Energies
Green Real Estate
Energy Efficiency
17%
36%
2%
41%
4%
SOCIAL NOTES OUTSTANDINGS
At 31 December 2021, the amount outstanding of Social Notes and similar debt products issued by Crédit Agricole CIB enabling the
financing of social impact loans according to the eligibility criteria of the Group’s Social Bond Framework, was €4.8 million (an issue of
SEK 50 million with a maturity of five years). Crédit Agricole CIB’s social portfolio consists of telecommunications projects in rural areas
as to 47%, infrastructure projects in developing countries as to 42% and investments in public hospitals as to 12%.
4.2. ADVISING OUR CLIENTS ON SOCIAL AND ENVIRONMENTAL PROJECTS
Since 2010, the Sustainable Banking team has been supporting
clients with their social or environmental projects.
As said above, Crédit Agricole CIB has thus supported, during
the course of 2021, some of its clients in the financing of their
environmental and/or social projects thanks to a new offer of
dedicated loans: Green Loans, Sustainability-Linked Loans,
Green Bonds and Sustainability-Linked Bonds. Crédit Agricole
CIB extended this range of Sustainable Finance products in 2021
in order to support its clients throughout their value chain with for
example the introduction of sustainable market hedging products.
In addition, Crédit Agricole CIB also supported clients on certain
high-impact projects such as the Duval Group, which took
out a €30 million Social Loan in October 2021 dedicated to
microfinance projects (Crédit Agricole CIB acted as ESG advisor
and arranger of the loan, which was fully syndicated with five
Crédit Agricole Regional Banks).
4.3. RAISING OUT CLIENTS’ AWARENESS OF SUSTAINABLE FINANCE
In 2021, the Sustainable Banking team organised the twelfth
edition of its annual Sustainable Finance conference. It brought
together major investors and issuers over three days in a
remote format. This edition was attended by approximately fifty
international experts and key players in ESG and Sustainable
Finance (company managers, economists, regulators, etc.)
and comprised 14 round table discussions and speeches. This
conference was also an opportunity for issuers to hold discussions
with investors at bilateral meetings (with more than 250 meetings
held).
4.4. PROMOTING SOCIALLY RESPONSIBLE INVESTMENT (SRI) IN WEALTH
MANAGEMENT
The Indosuez Wealth Management Group has established an
action plan aimed primarily at promoting CSR and providing a
complete wealth management offering. It aims at achieving the
following objectives:
y
the inclusion of ESG criteria in the client journey;
y
the introduction of a 100% ESG advisory service;
y
the creation of a socially responsible financing and investment
offering;
y
the enrichment of ESG ratings within client portfolios.
The work carried out has already resulted in the enhancement of
the value proposition of the ESG offering, with client events and
the launch of funds, structured products and green management
mandates at the heart of Indosuez Wealth Management’s offering.
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
50
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
4.5. ASSESSING AND MANAGING THE RISKS INHERENT IN THE ENVIRONMENTAL
AND SOCIAL IMPACTS OF OUR FINANCING
Crédit Agricole CIB has developed a system to assess and
manage the risks arising from the environmental and social
impacts relating to both transactions and clients, by factoring in
the main sustainable development issues, i.e. combating climate
change, biodiversity protection and respect for human rights.
Consideration of sustainable development
issues
CLIMATE CHANGE
The consideration of this issue is detailed in Part 3 “Integrating
climate change issues”.
BIODIVERSITY PROTECTION
Since it exercises a services activity and is located in urban
environments, the Bank does not have a significant direct impact
on biodiversity.
However, the activities it finances may in some cases affect
biodiversity. In its CSR sectoral policies, Crédit Agricole CIB
therefore introduced analytical and exclusionary criteria based on
biodiversity protection, with particular attention paid to important
areas based on this criterion. Critical adverse impacts on the
most sensitive protected areas, such as and wetlands covered
by the Ramsar Convention, constitute exclusionary criteria under
these policies.
Since 2016, Crédit Agricole CIB has been mapping the sectors
and geographical regions which are most exposed to water
access and pollution issues. Crédit Agricole CIB has included
this criterion of analysis in its CSR scoring system described
below. An artificial intelligence tool was developed in 2021 to help
account managers read the documents published by clients and
identify their responses to this issue.
In 2021, Crédit Agricole CIB began mapping the sectors and
regions most exposed to issues associated with the loss of
biodiversity: while some sectors are highly dependent on good
levels of biodiversity, other sectors may have negative impacts on
natural environments. Bearing that in mind, risk indices based on
sectoral and geographical criteria can be calculated.
OTHER ACTIONS TO PROMOTE HUMAN RIGHTS
Crédit Agricole CIB fully endorses the values of the United Nations
Global Compact, of which Crédit Agricole is a signatory. This
particularly concerns human rights and labour standards. These
general principles have been supplemented by a number of
specific charters signed by Crédit Agricole S.A.: the Diversity
Charter in 2008, the Human Rights Charter in 2009 and the
Responsible Purchasing Charter in 2010.
Actions concerning employees are covered in “Developing people
and the social ecosystem” and those concerning sub-contractors
and suppliers are discussed in “Promoting an ethical culture”.
As with climate and biodiversity matters, however, the indirect
impacts involving the financed activities appear as most significant.
They are assessed and managed as shown below. The Bank’s
CSR sector policies refer specifically to the International Labour
Organisation (ILO) fundamental conventions, and the International
Finance Corporation (IFC) performance standards.
Since 2016, Crédit Agricole CIB maps the sectors and
geographical regions which are most exposed to risks of human
rights violations in both their own operations and within their
supply chains. Crédit Agricole CIB has included this criterion
of analysis in its CSR scoring system described below. An
artificial intelligence tool was developed in 2021 to help account
managers read the documents published by clients and identify
their responses to this issue.
Assessing and managing the risks arising
from the environmental and social impacts of
financing
The environmental and social impacts resulting from the financing
activity appear to be substantially higher than the Bank’s direct
environmental footprint. Taking these indirect impacts into account
is one of the main sustainable development challenges for Crédit
Agricole CIB. The system which manages these environmental
and social business risks is based on three pillars:
y
applying the Equator Principles to transactions which are directly
related to a project;
y
CSR sector policies;
y
assessment of the environmental and social aspects of the
transactions.
From 2013, Crédit Agricole CIB also introduced a scoring system
for all its corporate clients.
Environmental and social risks are first assessed and managed by
the account manager. For project financing, account managers
are backed by a network of local correspondents, who provide
the necessary support in each regional structuring centre and
remain in constant communication with a coordination unit. It
comprises operating staff from the Project Finance business
line and coordinates the practical aspects of the implementation
of the Equator Principles. It manages the network of local
correspondents and implements specialised training for
participants.
Group Economic Research (ECO) is an integral part of Crédit
Agricole S.A. and provides additional support and clarification for
all types of transactions and clients by contributing its expertise
on environmental and technical issues, thereby making it possible
to fine-tune the analysis and identify the risks for each business
sector.
Even though its
corporate
client base comprises mostly
SMEs, Wealth Management integrates environmental and
social components into its risk analysis based on the sector
policies defined by Crédit Agricole CIB and the Group. The non-
compliance risk grid for credit transactions covers these issues,
supported by a special opinion if necessary.
The Equator Principles
The Equator Principles were developed in response to limitations
and triggers related to project financing, as defined by the Basel
Committee on Banking Supervision. Although they cannot always
be applied in their current state to other types of financing,
they nevertheless represent a useful and globally recognised
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
51
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
methodological framework for recognising and preventing
environmental and social impacts in cases where the financing
appears to be linked to the construction of a specific industrial
asset (plant, transport infrastructure, etc.).
The implementation of the Equator Principles is described in detail
on the Bank’s website.
Statistics
16 finance project loans have been signed
(1)
in 2021 and were
ranked into category A, B and C of the International Finance
Corporation. At 31 December 2021, 448 projects in the portfolio
had been ranked. The classification of projects breaks down as
follows:
y
36 projects classified as A, none of them in 2021;
y
351 were classified as B, 16 of them in 2021;
y
and 61 projects classified as C, none of them in 2021.
The 2021 breakdown by sector and region is as follows:
Category A
Category B
Category C
Total
-
16
-
Sector
Mining
-
-
-
Infrastructure
-
5
-
Oil & Gas
-
1
-
Energy
-
10
-
O/w renewable energy
-
9
-
Other
-
-
-
Region
North America
-
1
-
Latin America
-
3
-
Asia-Pacific
-
4
-
Europe
-
7
-
Middle East/Africa
-
1
-
Designation of countries
Designated
-
9
-
Non-designated
-
7
-
Independent review
Yes
-
16
-
No
-
-
-
NB: Countries classified as “Designated” are high-income OECD countries as per
the World Bank indicators. Independent Review means that the environmental and
social information has been reviewed by a consultant not related to the client.
(1)
In accordance with the agreement entered into by the Equator Principles association (project closed).
At 31 December 2021, there were 28 Project-Related Corporate
Loans (PRCL) in the portfolio. Four PRCLs were signed
(1)
in 2021
and ranked as category A, B or C, as follows:
y
no projects were classified as A;
y
4 were classified as B;
y
no projects were classified as C.
The sector-specific and geographic distributions are as follows:
Category A
Category B
Category C
Total
-
4
-
Sector
Mining
-
1
-
Infrastructure
-
-
-
Oil & Gas
-
-
-
Energy
-
-
-
Other
-
3
-
Region
North America
-
-
-
Latin America
-
1
Asia-Pacific
-
-
-
Europe/Middle East/Africa
-
3
-
Designation of countries
Designated
-
3
-
Non-designated
-
1
-
Independent review
Yes
-
4
-
No
-
-
-
CSR sector policies
The CSR sector policies published by Crédit Agricole CIB and
Crédit Agricole Group explain the social and environmental criteria
included in the Bank’s financing policies. These criteria mainly
reflect the issues of concern to civil society that appear to be the
most relevant for a corporate and investment bank, particularly
those relating to human rights, fighting climate change and
preserving biodiversity. The goal of the CSR sector policies is
therefore to clarify the non-financial principles and rules relating
to financing and investments in the corresponding sectors, in
accordance with the Crédit Agricole S.A. Group policy.
The current sector policies and their implementation are described
on the website.
Sensitivity analysis
Crédit Agricole CIB has been assessing the environmental or
social sensitivity of transactions since 2009. It reflects either
questions on managing environmental or social impacts that are
deemed critical, or controversy related to transactions or clients.
Chapter 2 – Economic, social and environmental information
HELPING OUR CLIENTS TO MEET THEIR SOCIAL, ENVIRONMENTAL AND SOLIDARITY RELATED CHALLENGES
52
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Client CSR scoring
In 2013, Crédit Agricole CIB introduced a CSR scoring system
for all corporate clients designed to complement its system for
assessing and managing the environmental and social risks of
transactions. Clients are rated each year on a scale that includes
three levels (advanced, compliance and sensitive), with these
ratings based on:
y
compliance with existing sector policies;
y
existence of reputational risk for the Bank (sensitive rating);
y
client’s inclusion in leading global CSR indexes (advanced
rating).
This scoring system is evolving following the service contract
signed with a non-financial rating agency. The tests conducted
in 2016 and 2017 on the use of ratings from this agency led to
a CSR scoring system being introduced in 2018 with three due
diligence levels: light, standard and reinforced. The description
of these three levels of due diligence is on the Bank’s website.
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
53
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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5.
AMBITION IN TERMS OF HUMAN RESOURCES:
STRENGTHENING AUTONOMY AND
EMPOWERMENT
Crédit Agricole CIB’s Human Project places its employees at
the heart of its strategy to make them the key players in its
performance and transformation. By developing an empowering
managerial culture and by offering a working environment that
promotes collaboration, trust and taking initiative, the Bank wants
to strengthen each person’s empowerment and commitment to
clients and the society. It is with this objective in mind that Crédit
Agricole CIB has been rolling out its empowerment approach
since 2020 and, since 2021, its “NOW - New ways Of Working”
project.
Once again this year, the pandemic mobilised the Human
Resources and Occupational Health Department teams to provide
specific measures to management and employees during the
health crisis. The specific measures deployed enabled both the
protection of the teams and the business continuity through
enhanced social dialogue and special attention given to keeping
the link with employees.
KEY FIGURES
f
Headcount by area of activity
(FTE: Full-time equivalent)
2021
2020
Corporate
and Investment Banking
Wealth management
12,003
8,940
3,063
3,074
8,604
11,678
f
Headcount by region
At the end of 2021, Crédit Agricole CIB had 12,003 full-time equivalent (FTE) employees and had a presence in more than 30 countries.
Asia-Pacific
Americas
20.0%
0.9%
7.0%
Western
Europe
70.6%
Middle-East
0.0%
Africa
Eastern Europe
1.5%
2,404 ETP
111 ETP
842 ETP
8,470 ETP
0 ETP
176 ETP
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
54
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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f
Headcount by type of contract (FTE: Full-time equivalent)
2021
2020
France
International
TOTAL
France
International
TOTAL
Permanent contract
5,130
6,367
11,497
4,991
6,344
11,335
Fixed-term contract
46
460
506
51
292
343
Total active headcount
5,176
6,828
12,003
5,042
6,636
11,678
Number of permanent employees
on leave of absence
89
28
117
56
17
73
TOTAL
5,265
6,856
12,120
5,098
6,653
11,751
f
Breakdown of workforce by gender
2021
Women
Men
Scope covered: 100%
43.8%
56.2%
2020
2020
Scope covered: 100%
Women
Men
44.1%
55.9%
f
Breakdown of headcount by level/gender (permanent employees in France)
As a %
2021
2020
Executives
Non-executives
Executives
Non-executives
Headcount in France
95.8
4.2
94.8
5.2
O/w women (%)
92.9
7.1
91.3
8.7
O/w men (%)
98.3
1.7
98.0
2.0
Scope covered in France
100%
100%
f
Age pyramid as of 31 December 2021
Women France
Men France
Women international
Men international
- under 25 years
[25 years - 30 years[
[30 years - 35 years[
[35 years - 40 years[
[40 years - 45 years[
[45 years - 50 years[
[50 years - 55 years[
[55 years - 60 years[
[60 years - 65 years[
65 years and +
5%
0%
5%
10%
10%
NC*
*For regulatory reasons, some entities (particularly in Americas) do not disclose "age" data.
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
55
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
f
Average age and average length of service
2021
2020
France
International
TOTAL
France
International
TOTAL
Average Age
43 years 6 months
43 years 5 months
43 years 5 months
43 years 4 months
43 years 5 months
43 years 5 months
Average
length of
service
13 years 2 months
9 years 7 months
11 years 2 months
13 years 10 months
10 years 1 months
11 years 9 months
f
Departures of permanent employees by reason
2021
2020
France
International
TOTAL
%
France
International
TOTAL
%
Resignations
99
530
629
69.8%
82
387
469
58.2
Retirements and early
retirements
67
55
122
13.5%
72
87
159
19.7
Dismissals
9
71
80
8.9%
5
104
109
13.5
Deaths
6
3
9
1.0%
0
3
3
0.4
Other departures
38
23
61
6.8%
33
33
66
8.2
TOTAL DEPARTURES
OF PERMANENT
EMPLOYEES
219
682
901
100.0%
192
614
806
100.0
Scope covered
100%
100%
f
Promotions in France
2021
2020
Women
Men
TOTAL
Women
Men
TOTAL
Promotion within the non-executive
category
1
3
4
5
3
8
Promotion from non-executive to
executive
22
9
31
28
10
38
Promotion within the executive
category
188
190
378
131
174
305
TOTAL
211
202
413
164
187
351
%
51.1
48.9
100.0
46.7
53.3
100.0
France scope covered
99%
99%
f
Recruitment by geographic area
(1)
(permanent contracts)
0
300
600
900
1,200
1,500
France
TOTAL
Western
Europe
Asia -
Pacific
Eastern
Europe
Middle-
East
Americas
2021
Scope covered: 100%
2020
Scope covered: 100 %
1,306
880
425
307
341
194
320
300
10
174
66
31
15
3
(1) Including among trainees, work-study trainees et fixed term contract.
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
f
Proportion of part-time employees
2021
2020
Women
Men
TOTAL
Women
Men
TOTAL
Part-time headcount
675
97
772
676
109
785
% part-time headcount
13.2
1.5
6.6
13.4
1.7
6.8
% women in part-time headcount
-
-
87.4
-
-
86.1
Scope covered
100%
-
5.1. PROMOTING EMPOWERMENT
Committed and empowered employees close to clients is one
of Crédit Agricole CIB’s Human Project ambition and the aim of
the Bank’s empowerment approach since 2020. This approach,
which involves employees, managers and senior management,
promotes the development of authentic leadership and employee
empowerment by relying on a strengths-based management
approach and the involvement of teams through dialogue circles.
In 2021, the process continued to be rolled out in the Finance,
Operations, Compliance and International Trade & Transaction
Banking teams. It will gradually be rolled out to all the Bank’s
teams by 2023.
5.1.1 Listening to our employees and
fostering commitment
In 2021, initiatives that encourage employee participation
were strengthened in order to reflect the numerous
transformational challenges linked to the development
of the company and our organisational methods.
Crédit Agricole CIB and Indosuez Wealth Management
participated, as they do every year, in the Crédit Agricole Group’s
Engagement and Recommendation Index (ERI) survey, sent to
all their employees worldwide, from 4 October to 12 November
2021. At Crédit Agricole CIB, this initiative fits in with commitment
surveys continued since 2015 and allows to assess the positive
development of results. In 2021, Crédit Agricole CIB achieved
its best ERI score with 79% favourable responses, i.e. a score
identical to 2020 and its highest participation rate with a 73%
response rate, i.e. an increase of 3 points compared to 2020. The
results of this survey reveal that strong progress has been made
on topics related to strategy, confidence in the decisions taken by
management and organisational efficiency. They also demonstrate
the strong commitment of employees and the collective spirit that
have driven the teams since the start of the health crisis. As part
of the Human Project, this year the Group rolled out a new ERI
indicator, the Empowerment Index, for which Crédit Agricole CIB
received 75% favourable responses. This new index will allow us
to measure, over time, perceptions of autonomy, empowerment
and the ability to propose new ideas to meet clients’ needs.
Finally, as part of its NOW project on new ways of working and
in order to initiate joint discussions among all its employees
worldwide, the Bank asked employees to answer a specific
questionnaire from 17 to 29 June 2021. The questionnaire covered
topics including remote working, managerial practices and the
corporate culture, tools and applications, and the Smart-Office.
52% of employees answered the questionnaire and the analysis
of responses allowed us to measure very positive perceptions
concerning efficiency, performance, confidence and productivity
thanks to the experience of the past year and the empowerment
of employees. These results also show that the crisis led Crédit
Agricole CIB’s employees and managers to adapt their working
methods and that they now feel ready to work in a hybrid manner.
5.1.2 Accelerating the development of our
employees’ skills in an environment
undergoing rapid transformation
In a highly competitive and constantly changing environment, the
development of employees’ skills is a key element in the Bank’s
strategy and the transformation of its business lines. As part of its
Human Project, the Bank is doing everything possible to ensure
that each position in the organisation is held by a motivated
employee whose skills and performance meet the requirements
and challenges of his or her position, for now and for the future.
Crédit Agricole CIB is committed to enabling all employees to
develop their skills and employability. This approach is applied
and harmonised globally to take into account the international
dimension of the Bank’s business and corporate culture.
By offering an enhanced employee experience with digital
solutions, Crédit Agricole CIB has strengthened its remote
training offer and launched the 365 Talents solution so that
every employee can develop and enhance autonomously their
empowerment skills.
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
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5.1.2.1
DEVELOPING EMPLOYEE SKILLS
AND ADAPTING HR TOOLS TO
TRANSFORMATION CHALLENGES
Crédit Agricole CIB has an active training policy to meet
current and future strategic challenges. The Bank encourages
all employees to continuously adapt their skills to the fast and
complex changes in the economic, regulatory and technological
environment.
The HRE-Learning global training portal, launched in 2016 and
accessible to all employees, currently offers thousands of digital
modules. This portal encourages employees to take ownership
of their training and represents a veritable invitation to curiosity.
In 2021, Crédit Agricole CIB supported the business lines in their
transformation by offering new training courses, in particular on
sustainable finance and data. New learning experiences were also
offered to employees through global virtual classes, challenges
in the area of language learning and innovative modules such as
a web series on hydrogen.
In addition, in order to meet regulatory requirements and following
a successful initial trial of “My Mandatory Learning Camp”, the
new format for mandatory training courses was renewed in 2021.
This empowers employees by giving them autonomy to plan their
mandatory and regulatory training according to their availability,
over a longer period of time.
The overall training approach, in conjunction with the forward
planning of employment and skills and the Human Pillar of the
Medium-Term Plan, pursues the following objectives:
y
meet the needs and challenges of the business lines in order
to develop the skills of their employees;
y
meet the Bank’s regulatory and security requirements;
y
support mobility and career changes through dedicated training
plans;
y
implement the training and awareness raising measures required
under the various collective agreements signed;
y
use available new technologies and educational methods to
promote access to training;
y
incorporate training reform into the Crédit Agricole CIB policy.
In 2021, training hours for France were mainly spent on
compliance, Banking-Finance, personal development and
communication.
f
Number of employees trained
2021
International
5,965
49.0%
France
6,205
51.0%
Scope covered: 97%
2020
International
France
5,793
54.9%
4,754
45.1%
Scope covered: 98%
f
Training themes
In number of hours
2021
2020
Topics
TOTAL
%
O/w France
O/w
international
TOTAL
%
Knowledge of Crédit Agricole S.A.
5,814
2.8
1,939
3,875
1,962
1.5
Management of people and activities
7,340
3.5
2,504
4,836
3,485
2.7
Banking, law, economy
25,124
12.0
6,528
18,596
13,713
10.7
Insurance
1,360
0.7
883
477
1,269
1.0
Financial Management (accounting, tax, etc.)
9,795
4.7
6,395
3,400
1,861
1.5
Risks
3,500
1.7
1,470
2,030
3,438
2.7
Compliance
80,541
38.6
28,895
51,646
62,282
48.6
Method, structure, quality
4,429
2.1
2,320
2,109
1,955
1.5
Purchasing, marketing, distribution
207
0.1
151
56
17
0.01
IT, networks, telecoms
7,183
3.4
3,909
3,274
2,536
2.0
Languages
24,091
11.6
3,905
20,186
18,028
14.1
Office automation, software, NICT
12,265
5.9
5,005
7,260
5,101
4.0
Personal development, communication
16,247
7.8
9,135
7,112
6,522
5.1
Health and safety
5,088
2.4
1,591
3,497
4,242
3.3
Human Rights and Environment
3,502
1.7
707
2,795
761
0.6
Human resources
2,091
1.0
1,144
947
971
0.8
TOTAL
208,577
100.0
76,481
132,096
128,143
100.0
Scope covered
-
97%
-
-
98 %
Chapter 2 – Economic, social and environmental information
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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y
Adapting business lines and IT skills to
technological changes
In order to provide support for employees in managing the
technological changes to their working environment and to raise
their awareness of innovation, Crédit Agricole CIB rolled out new
systems in 2021:
y
The “Machine Learning Fundamentals” training course created
and moderated by in-house experts. This training course offered
to around thirty employees in 2021 also allows to form a first
pool of data scientists within the Bank. New sessions will be
rolled out in 2022. Crédit Agricole CIB has also developed data
training programmes, in partnership with innovation teams,
which will be included in the Bank’s training offer for 2022.
y
As part of the partnership signed with Netexplo in 2019,
employees were able to learn about the digital innovations
of the year by attending the Innovation Forum in April 2021.
In order to support the Bank’s transformation projects, the
partnership with the Pluralsight platform was renewed this year,
thereby allowing more than 400 employees to receive training in
web development, IT security, data and various other IT areas.
Furthermore, “IS MOOC Security” training programmes specific to
each business line have also been put in place to support Crédit
Agricole CIB’s experts in the development of their information
security skills and thus better anticipate and manage risks.
y
Developing cross-functional, behavioural and
managerial skills
The training offer at Crédit Agricole CIB is designed to encourage
curiosity. All employees are involved in determining their own
training and can freely access the HRE-Learning online portal,
which offers thousands modules. In line with the Bank’s digital
transformation over the past few years, Crédit Agricole CIB is
continuing to expand its digital training offer to enable all its
employees to continue developing soft skills, linguistic and
managerial skills.
As key players in developing their employees’ skills and
implementing the Bank’s strategy, managers – regardless of their
level of experience – receive specific support. Since 2012, Crédit
Agricole CIB has been rolling out its Management Academy
training programme in France and abroad, in order to develop
a shared managerial culture. The Management Academy is
structured around 3 levels. The “Novice Learners” level is open
to all employees who then have free access to digital modules
on managerial topics via the Bank’s international training portal.
The “Expert Learners” and “Master Learners” levels are offered
to operational managers and managers of managers.
In 2021, the Management Academy was redesigned and its
format and content were adapted to remote learning in order
to respond to changes in the bank and the health environment.
The empowerment approach, launched in 2020 as part of
the Human Project, complements the Management Academy
system by strengthening the themes of authentic leadership
and strengths-based management. The roll-out of this approach
continued in 2021 and will continue until 2023.
In addition and in order to promote cross-functionality and skills
development using a different approach, the Bank launched
in 2019 the skills sponsorship programme, Startup Mission.
By enhancing the employee experience and promoting social
innovation, this programme reinforces the commitment of our
teams and is fully aligned with Crédit Agricole CIB’s Human
Project. It allows employees to experience a one-month immersive
experience in a startup at the Village by CA to share their expertise
while discovering new ways of working. There is a system in place
to match the skills of the volunteer employees with the needs of
the startups. Since its launch, 22 employees have already tried
the Startup Mission adventure. The results are very positive both
for the participants – who are immersed in an agile, cutting-edge
environment –, the startups, who benefit from the skills-based
sponsorship, and Crédit Agricole CIB – who also gains from the
exchange.
y
Developping and empowering employees by
offering them a professional pathway – which
they prepared with their manager and HR
manager
Each year, the appraisal and objectives setting meetings provide an
opportunity to take stock of individual and collective performance,
each employee’s achievements and their development needs.
Within the framework of this worldwide campaign in 2021, 98.03%
of the annual assessments between employees and managers
have been realised. Once again this year, all employees in France,
with at least 6 years’ service at Crédit Agricole CIB, were given
a Recap Professional Interview to address career development
issues and training needs.
In addition to these campaigns, two other development initiatives
have been introduced at Crédit Agricole CIB:
y
the Cross-Feedback tool, intended for the most cross functional
positions by providing objective feedback from the people
with whom the employee is working on a daily basis. This
tool helps to promote better cooperation between the Bank’s
teams and to develop a culture based on feedback. In 2021,
1,314 employees received individual Cross Feedback reports
shared with their manager;
y
the 360°, an individual development tool, enables members
of the Executive Committee and their direct reports to receive
feedback from their managers, peers and direct reports. In
order to promote empowerment for all employees, participants
can choose to share some or all of the results of their 360°
report with their manager, the Human Resources department
or their teams.
5.1.2.2
PROMOTING EMPLOYEE MOBILITY
Internal mobility is a major aspect in employee skills development,
by enabling them to evolve within the Bank and the Crédit Agricole
Group.
In a world where the business and skills are changing rapidly,
Crédit Agricole CIB gives all employees the opportunity to become
the key player in their development by encouraging them to
take the initiative in increasing their employability, as part of the
Human Project.
The dedicated MyJobs portal, which can be accessed by Crédit
Agricole CIB’s employees in France and abroad, covers all
available positions within the Corporate and Investment Bank
and Crédit Agricole the Group. In addition, Crédit Agricole CIB
uses different systems to support employees in their mobility
approaches: mobility Committees, events and workshops,
individual support and digital pathways (for example, Jobmaker).
These initiatives also create a more cross disciplinary approach
and develop the mobility culture.
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In addition to these initiatives, Crédit Agricole CIB is continuing to
roll out the 365Talents digital solution, which enables employees
to increase their employability by focusing on their experience,
skills and interests. Using Artificial Intelligence, the tool maps
employees’ skills to suggest opportunities within the company
based on their profile and interests. The roll-out of the 365Talents
solution is organised into stages with the various departments
worldwide and will be completed in 2022.
In order to promote mobility and the HR set-ups and support, the
Bank also held its fourth Mobility Week in France, bringing together
330 participants in a digital format. This event allows the business
lines to present their opportunities and enables participants to
speak to the HR teams in order to receive personalised advice.
In 2021, the Déclic Mobilité programme, organised with a firm
specialised in providing professional support, was again held
remotely. This programme combines one-on-one interviews and
group sessions to encourage the sharing of experiences, and has
enabled 165 employees since its creation in 2017 to discuss their
mobility plans and to get them underway.
In addition, 100 employees took part this year in remote mobility
workshops organised each month and received advice to help
them reflect on their career plan, write their CVs and prepare their
recruitment interviews.
5.1.3 Attracting talent, developing our
employees, preparing succession plans
y
Promoting the employer brand and growing our
talent
Crédit Agricole CIB has an active recruitment and talent
identification policy, in France and abroad, to meet businesses’
needs. By strengthening its partnerships with universities and
schools as well as its presence on campuses, the Bank wants
to promote its expertise and its international network in order
to attract future talents. For this reason, in 2021, 60 digital and
face-to-face forums were organised in collaboration with schools
and universities in France and abroad. To reinforce interactions
between both academic and professional worlds, Crédit Agricole
CIB also organises conferences and case studies.
Close to 170 managers and employees joined the HR teams again
in France in 2021 for these events to share their experience with
students and to receive applications for the various positions to
be filled.
The Bank is setting up specific educational partnerships in France
and internationally. In 2021, Crédit Agricole CIB joined forces with
CFA DIFCAM to create a new “Insurance, Banking, Finance -
Back Office - Middle Office in Corporate and Investment Banking”
professional diploma in partnership with the University of Versailles
Saint-Quentin-en-Yvelines. The first class of 16 students was
welcomed in September 2021, and 12 students are working on
work-study programmes in the Operations Department at Crédit
Agricole CIB. Some of the teaching is also provided by experts
from this Department.
Mindful of reaching out to as many people as possible, the
Employer Brand of Crédit Agricole CIB spreads out on the Bank’s
social media, LinkedIn and Twitter. With more than 80 publications
in 2021, the Bank was able to promote its commitments, share
experiences from recently recruited employees and display career
opportunities to potential candidates.
y
Employee induction
In 2016, Crédit Agricole CIB rolled out its Global Induction
Programme, to help new employees integrate into the company.
The programme allows new entrants to learn about all Crédit
Agricole CIB business lines and to receive all useful information
when they arrive. The Bank’s intranet has a dedicated area
wherein a large number of documents helping the integration
process are available. Digital resources are also available on the
Bank’s international training portal, HRE-Learning. An individual
programme of mandatory training courses is in place to develop
and promote the compliance and risks culture, helping new
employees to adopt the appropriate and expected behaviours
in regulatory matters. Depending on the business line, new
employees may also follow additional training courses to help
them ease into their new position.
During their first year within the Bank, new joiners are also
invited to the Induction Day to gain a better understanding of
the interaction between the Bank’s different business lines and
to meet their peers who have recently joined Crédit Agricole CIB
teams. Since its inception in 2016, more than 2,500 participants
have taken part in this integration event.
For the first time in 2021, all 1,400 employees who began working
at Crédit Agricole CIB’s locations around the world over the last
two years were invited to the same event, which was remote and
digital to respect restrictions imposed by the health crisis.These
Induction Days brought together participants from more than 25
countries. The history of an emblematic deal was presented by
experts from the Bank’s various business lines; the experiences
they shared allowed new joiners to better understand how the
Corporate and Investment Banking department operates.
Depending on their location and business line, new hires may
also be invited to participate in specific integration programmes.
This is the case in the United States, where videos presenting the
various departments are offered to new joiners, allowing them to
familiarise themselves with the Bank’s organisation.
As part of its digitalisation transformation, Crédit Agricole CIB
offers a digital onboarding procedure enabling employees
online access to their digital HR documents from both personal
and professional computers. In order to facilitate the search
for information, the HR intranet in France has a chatbot which
answers employees’ questions.
y
Developing and supporting our talents
At Crédit Agricole CIB, the members of the Management
Committee, managers and Human Resources have been working
to identify and manage talents for several years now. Part of the
Crédit Agricole S.A. Group policy, it aims to retain and develop
employees with significant potential and anticipate, prepare and
ensure coherent succession plans for strategic positions at the
Bank.
The Bank talents are offered special development opportunities
which combine Groupwide programmes and specific Crédit
Agricole CIB programmes. Initiatives for high-potential employees
are also offered locally, by region or country.
Despite the health situation, Crédit Agricole CIB wanted to
maintain the momentum initiated in recent years by adapting to
the context of remote working for employees.
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Since 2017, the Corporate Mentoring Programme has enabled
Crédit Agricole CIB’s talent in our various locations worldwide to
benefit from the support of members of the Executive Committees
or Business Line and Country Management Committees. This
experience-sharing programme also aims to promote greater
diversity within the teams.
5.2. ORGANISATIONAL TRANSFORMATION TO REMAIN CLOSE TO THE CLIENT
The Group and Crédit Agricole CIB undertake to offer their clients
direct access to a local relationship manager. Local relationship
managers are discerning and have greater responsibilities in
terms of responding more quickly to customer needs. Internally,
this requires more cross-functionality and collective agility while
adapting to the digital transformation that is impacting ways of
working.
More empowerment and cross-functionality
In 2020, Crédit Agricole CIB continued to simplify its organisation
and process in order to strengthen proximity with clients by
changing the governance of some businesses. This evolution of
the organisation allows to reposition the technical and functional
expertise at the centre of its system, to gain in responsiveness on
the implementation of projects impacting the entire value chain
and to shorten decision making. The simplification of hierarchy
levels also enables a better team coordination to better meet
clients’ needs.
Moreover, in order to strengthen everyone’s empowerment and
commitment to the clients and society, the Bank rolls out since
2020 an empowerment approach. The latter aims to develop
authentic leadership and employee empowerment by relying on
a strengths-based management approach and the involvement
of teams through dialogue circles. This approach will be gradually
rolled out to all the Bank’s teams by 2023.
5.3. STRENGTHENING THE FRAMEWORK OF TRUST BETWEEN EMPLOYEES AND THE
COMPANY
5.3.1 Ensuring constructive social dialogue
within the Group
The Group promotes dynamic and constructive social dialogue
with its employees and their representatives when existing locally.
The international framework agreement signed by Crédit Agricole
S.A. Group with UNI Global Union on 31 July 2019 lays the
foundations of the social pact which recognises at global level
the right to freedom of association and collective bargaining and
the prioritisation of social dialogue which supports the Group’s
growth and performance.
In France, the Crédit Agricole S.A. Group sealed its commitment
to its social pact through an agreement mapping out the employee
representative path to create an environment that is likely to
encourage employee engagement and investment in the role.
Fully subscribing to the Group approach, Crédit Agricole CIB is
keen on maintaining effective and constructive social dialogue
so that each year it can enter collective agreements that contain
genuine commitments which reflect the Bank’s social policy.
Throughout 2021, still marked by the health crisis, the Bank
continued to bring its social bodies to life and continued
discussions with employee representative bodies on all social
issues, particularly issues relating to the management of the
coronavirus crisis.
In parallel with the meetings of the Social and Economic
Committee (CSE) and the work of the three committees
(Social Policy Committee, Economic and Strategic Committee
and Committee on Health, Safety and Working Conditions),
negotiations took place and resulted, in 2021, in nine agreements
relating to compensation, equality and remote working.
f
Number of agreements signed during the year by subject
2021
2020
France
International
TOTAL
France
International
TOTAL
Compensation and benefits
17
4
21
16
6
22
Training
0
0
0
0
0
0
Employee representative institutions
0
0
0
2
0
2
Employment
1
2
3
0
0
0
Working hours
4
3
7
1
2
3
Diversity and equality at work
3
0
3
0
0
0
Health and safety
2
0
2
0
0
0
Other
2
1
3
6
3
9
TOTAL
29
10
39
25
11
36
Scope covered
-
-
97%
99%
-
-
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5.3.2 Leveraging diversity to be collectively
stronger
Equality and diversity are key pillars of Crédit Agricole CIB’s
Human Project, which are reflected in the recruitment and
human resources management processes on a daily basis. In
this respect, measures such as the Behaviour Charter and regular
initiatives to raise awareness of diversity have been in place at
Crédit Agricole CIB for many years.
As a committed and responsible employer, Crédit Agricole CIB
bases its Human Project on a strong conviction: the diversity of
its employees is a major asset for the Bank.
In addition to being essential to reflect the diversity of its clients
and the society, this diversity is a performance and innovation
factor for Crédit Agricole CIB, which operates in more than
34 countries, has 16 business lines, employees of 100 nationalities
and more than 43.9% women among its teams.
Both in France and abroad, Crédit Agricole CIB rolls out a
specific initiative by organising every year, in November, the
Diversity Month. In 2021, conferences, workshops and video
testimonials focussed on 5 topics: inclusive culture, intercultural
issues, disabilities, diversity and intergenerational issues.
As part of its Human Project, the Bank is also working to
strengthen the inclusive dimension of all of its processes:
recruitment, talent selection, succession plans and development
programmes.
To continue the collective efforts to promote equality in recruitment
processes and to ensure that the procedures for hiring employees
comply with this fundamental principle of equal opportunities and
fairness, Crédit Agricole CIB has implemented digital training,
“Recruiting without discriminating”, for all human resources
managers and employee-managers involved in recruitment
processes.
5.3.3 Gender equality at work
Convinced that diversity is a powerful driver of performance and
innovation, Crédit Agricole CIB has for several years now been
following a proactive diversity policy.
To identify the main issues and measure the effectiveness of its
diversity policy, Crédit Agricole CIB regularly analyses its gender
distribution indicators in view of defined goals.
For several years now, the Bank has implemented action plans
to promote professional equality between women and men. The
main focuses of the professional gender equality agreement,
renewed in France in 2021 for a period of 3 years, are to ensure
balanced job recruitment and equal pay, train employees on the
principles of professional equality and non-discrimination and raise
their awareness of the issues involved, help all employees to boost
their employability, and roll out initiatives in favour of parenthood.
The Bank also supports its female talent, both in France
and abroad, through a range of leadership development
programmes. The programmes’ objectives are to provide
women with the keys to strengthening their strategic positioning,
developing their networks and progressing within management
bodies.
Under the “Corporate Mentoring programme”, Crédit Agricole
CIB has set itself gender equality targets when selecting
“mentees”, ensuring that women represent more than 50% of the
participants (to date, 99 women employees have benefited from
the “Corporate Mentoring Programme”, or 54% of “mentees”). In
addition, each year female employees of Crédit Agricole CIB are
selected to participate in the Crédit Agricole Group’s mentoring
programme.
In line with these action plans, and to accelerate the feminisation
and internationalisation of its management bodies (EXCOM
and MANCOM, Circles 1 and 2), in 2020 Crédit Agricole CIB
conducted a global review of its strategic talent pool. To meet the
objectives set by Crédit Agricole S.A., Crédit Agricole CIB aims
to reach 50% women and 40% foreign nationals in this pool by
the end of 2022.
In addition, as the long-standing partners of the Financi’Elles
federation, Crédit Agricole S.A. and Crédit Agricole CIB reaffirmed
their commitment to introducing ambitious Human Resources
policies in the area of gender equality by signing, in November
2021, the Financi’Elles Charter of Commitments on 10-year
anniversary of the federation of the Banking, Finance and
Insurance networks.
Crédit Agricole CIB also pays particular attention to actions in
favour of parenthood in its business locations. In France, paternity
leave was increased from 11 to 25 days in 2021, with employees
continuing to receive 100% of their salary in addition to the
compensation paid by the social security department. The Bank
also offers its employees discussion workshops on the “Career-
motherhood balance”.
Crédit Agricole CIB also offers its employees, 40 nursery places
in partnership with the Babilou network of nurseries in France,
and 30 nursery places in the Petits Chaperons Rouges nursery
near the SQY Park campus. All these nursery places are allocated
according to social criteria. Crédit Agricole CIB also offers its
employees casual childcare arrangements in over 450 creches
for children from four months to three years, also in partnership
with the Babilou network.
The effects of all these initiatives are reflected in Crédit Agricole
CIB’s gender equality index in France, which stood at 85 out of
100 once again in 2021.
Lastly, Crédit Agricole CIB also supports the networks created by
female employees, such as CWEEN launched in 2008 in India,
Potentielles in France, Crédit Agricole CIB Women’s Network
(CWN) in New York in 2010, SPRING in London in 2015, RISE
in Hong Kong in 2016, WING in Tokyo in 2017, CARE in South
Korea, MORE in Taiwan, Gulf Women’s Network in Dubai in
2018 and EQUAL launched in Singapore in 2020. In Italy, the
partnership with PWN Milan (Professional Women Network) allows
employees to access a specific mentoring programme, participate
in remote workshops and training, and discuss their careers with
other women.
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f
Proportion of women (%)
As a %
2021
2020
%
Scope covered
%
Scope covered
Among all employees
43.9
100%
44.2
100%
Among permanent contract staff
40.0
100%
38.6
100%
Among CACIB Executive Committee
9.1
100%
12.5
100%
Among CACIB management circles 1 and 2
1
20.1
100%
19.3
100%
Among the top 10% of highest-earning employees in
each subsidiary (fixed compensation)
18.8
99%
19.7
98%
1 The managerial Circles group the members of the Executive Committees and the members of the Management Committees at each entity into two levels.
y
A compensation policy based on equality
The wage policy is key to Crédit Agricole Group’s strategic human
resources management. Crédit Agricole CIB’s remuneration policy
is based on principles of fairness, performance incentives in
line with risk management and the sharing of the Company’s
values. This policy is deployed taking into account the economic,
social and competitive context of the markets in which the Bank
operates, as well as applicable legal and regulatory obligations.
Crédit Agricole CIB places a great importance on the principle of
equal treatment at work. Provisions can be made locally to reduce
possible gender wage gaps, for example as in France under the
agreement on gender equality at work.
y
Particular attention paid to the
internationalisation of our talent pools
With nearly half of employees working abroad, the
internationalisation of talent pools is a key goal for the Bank. To
step up the internationalisation of its management bodies (EXCOM
and MANCOM, Circles 1 and 2), Crédit Agricole CIB conducted a
global review of its strategic talent pool in 2020 allowing to enrich
its succession plan. As a result of a special focus on diversity
criteria, 37% of identified talents are international.
To meet the objectives set by Crédit Agricole S.A., Crédit Agricole
CIB aims to reach 50% women and 40% foreign nationals in this
pool by the end of 2022.
y
Inclusion of young people and access to
employment (work-study employees and
trainees)
Keen to support young people in finding employment, Crédit
Agricole CIB pursues an active policy in favour of their
occupational integration in France and abroad. In 2021, despite
the complex health situation, the Bank maintained an ambitious
policy on the recruitment of young people to prepare for the future,
integrate new generations and attract talent. This resulted in an
increase in the number of work-study employees hired in France.
In 2021, 397 trainees, 223 work-study employees and 27 VIEs
(International Volunteers in Business) joined the Bank.
Crédit Agricole CIB also participated in the first
Mobilijeunes
event organised by CASA, which aims to support young people
in finding jobs by offering workshops (pitches, CV preparation,
etc.), conferences, and promoting fixed-term and permanent
contracts to this group of people.
Through its internships, work-study placements and VIE positions,
Crédit Agricole CIB identifies the highest-potential employees and
creates a Global Junior Pool. In France, more than 60% of junior
permanent-contract positions were filled in 2021 by individuals
from this pool.
In some of its locations, Crédit Agricole CIB also offers students
the opportunity to join the Bank through dedicated pathways
which may involve internships lasting from 10 weeks to 2
years. This is the case for example in New York, London, Hong
Kong SAR and Frankfurt. In Hong Kong SAR, the Bank is
supporting young graduates as they embark on their careers
as a member of the “Banking Talent” programme of the Hong
Kong Monetary Authority (HKMA). Through this programme,
the young professionals join a Crédit Agricole CIB department
for a six-month period, supplementing the training provided by
the HKMA.In accordance with the Group policy, Crédit Agricole
CIB participates in numerous activities promoting the diversity
of the recruited profiles. In this context, the Bank has renewed
its partnership with Handiformafinance, initiated by the French
Management Association (AFG), which offers disabled people
the chance to train for back-office jobs in capital markets, whilst
also studying for a professional diploma from
Université de
Saint-Quentin-en-Yvelines.
To ensure fairness, job offers are published on the Crédit Agricole
CIB and Crédit Agricole Group job sites. They are also published
on specialist recruitment sites and on JobTeaser, a recruitment
platform in schools and universities. After having applied online,
the candidates for internships, work-study contracts, VIEs or
permanent contracts for young graduates must pass online
aptitude tests before being invited for interview.
As part of the Human Project and their societal commitments, the
Group and Crédit Agricole CIB are committed as a responsible
employer to fostering diversity and integrating young people
and individuals excluded from employment. In 2021, the Bank
strengthened its partnerships with committed players such as
“
Nos Quartiers ont du Talent
” (NQT) and the “A Network for
All” alliance by LinkedIn and LinkedOut led by the Entourage
organisation. At a conference organised as part of the Diversity
Month, these players presented their actions, raised employee
awareness of the importance of the network, and called on them
to commit to greater professional equality.
f
Trainees and work-study employees (average
monthly FTE)
0
100
200
300
400
500
600
336
504
567
329
Scope covered
100%
Scope covered
100%
2020
2021
School trainees
Work-study contracts
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5.3.4 Disability policy
For many years, Crédit Agricole S.A. Group in France has been
actively promoting the employment of people with disabilities
through job retention and awareness initiatives and also through
recruitment from the sheltered and disability friendly sectors. The
sixth agreement, signed in January 2020, is a logical continuation
of the efforts made over the previous fifteen years and covers all
of the Group’s entities.
Health prevention and retention of persons with disabilities are at
the heart of the Bank’s concerns. A dedicated multidisciplinary
team (head of disability integration and occupational health
service) ensures the proper integration and retention of employees
in conjunction with the Group’s central disability team.
To support employees with disabilities, Crédit Agricole CIB plans
to adjust workstations and the working environment: ergonomics
studies, specially adapted computer equipment (screens, special
software for employees with visual impairment), use of the
Tadéo and Roger Voice telephone support for hearing-impaired
employees, introduction of working from home and developing
the use of sign language translation for conferences and training
courses. This individual support can also take the form of tailored
training, psychological monitoring, or coaching.
5.3.5 Health, safety and quality of life in the
workplace
Crédit Agricole CIB pays particular attention to the quality of life
in the workplace, working conditions and the work-life balance
of its employees.
y
Ensuring an environment and working conditions
for employees to pursue activities safely
This year, the Occupational Health Department, Human
Resources, Communications and managers of Crédit Agricole CIB
were again highly involved in managing the challenges related to
the health crisis, the protection of employees and the organisation
of work. The exceptional measures deployed in mid-March 2020
have been extended to:
y
providing local support to management and employees during
the health crisis;
y
defining and communicating health protocols to ensure full
ownership and compliance with barrier measures by employees;
y
strengthening social dialogue by organising regular remote
interaction with all staff representatives, particularly with the
Health, Safety and Working Conditions Committee of the CSE;
y
maintaining social links by communicating at each new phase
of the crisis, and proposing an HR Q&A detailing the work
organisation measures;
y
holding regular discussions on matters relating to the health
crisis with the Bank’s Covid representatives.
In order to protect employees and comply with the health protocols
put in place for private sector companies, work organisation was
adapted and remote working was made widespread until mid-
June 2021 for all functions that were able to do so. A gradual
return to the workplace began in June and transitional work
organisation arrangements were put in place.
Specific arrangements have also been made to protect employees
in the workplace: distribution of sanitary kits including hydro-
alcohol gel and surgical masks, adapting the layout of our
premises to ensure compliance with safety distances and
barrier measures. In addition to these measures, employees at
risk of a serious form of Covid-19 were invited to speak to the
Occupational Health Department in order to define, for each
situation, the best possible work organisation.
y
Supporting employees in these unprecedented
work situations
In order to provide additional support to employees, many support
systems have been rolled out, in addition to prevention and
support actions carried out by the medical teams.
In France, employees have been able to access to a free medical
consultation service since the beginning of the health crisis, as
well as the Stimulus anonymous and confidential psychological
support unit to help them better understand this period and the
complicated situations related to professional or personal life. A
similar mechanism, the Employee Assistance Program (EAP), is
also in place in Germany, the United States, Hong Kong and the
United Kingdom and since 2021 in India and Japan.
Throughout the year, the Occupational Health Department
organised Covid-19 vaccination campaigns, as well as a seasonal
flu vaccination campaign. Employees in India, Italy, Japan, Korea,
Singapore, Taiwan and the United Kingdom have benefited from
similar initiatives or extra days off so that they can be vaccinated.
In addition to these enhanced measures to deal with the health
crisis, the Bank is continuing its commitments to employees
who face difficult family situations. The Bank offers Responsage
services, a confidential and free telephone platform providing
guidance and advice to employees on procedures related to the
status of a family member-carer.
In 2017, Crédit Agricole CIB set up a system for donating rest
days between colleagues to take care of a sick loved one (child,
spouse, civil-union partner or ascendants). In 2021, donations
amounted to 130 available days that could be allocated to
employees where necessary.
In addition, a psychosocial risk monitoring system involving
everyone at the company and serving to relay any difficulties
encountered by employees supplements the Behaviour Charter,
a document setting out a concrete framework for identifying
and managing inappropriate and unacceptable behaviour at the
company.
BUILDING NEW WAYS OF WORKING WITH
EMPLOYEES
As part of its Human Project, in 2021 the Bank launched the global
project “New ways Of Working (NOW)” with a view to establishing
together with its employees a new hybrid and inclusive working
environment. It is based on 4 interdependent pillars and seeks to
address changes in the work organisation, spaces (Smart-Office),
tools and applications and management culture.
In June 2021, more than 4,000 Crédit Agricole CIB employees
took part in the NOW global survey, sharing their experiences
and ideas on the 4 aspects of the project. In France, workshops
were organised to collect the ideas, needs and suggestions of
employees on the management and operational principles of
hybrid work methods, best practices, team rituals, and achieving
a work-life balance and disconnection. More than 240 employees
took part in this initiative.
In October 2021, the signing of the new remote-working
agreement for France marked a first step in the implementation
of new ways of working at the Bank. The agreement is based
on four main principles: double volunteering and reversibility,
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flexibility, with two remote-working formulas to adapt to the needs
of business activities, autonomy, trust and empowerment. It
offers a common base, respecting the DNA of the Group and of
Crédit Agricole CIB, on which the international entities can rely
to establish or adapt their respective agreements, taking into
account local cultural and regulatory specificities. For example,
Germany also signed a new agreement on remote working in
November 2021.
As part of the “Smart-Office” pillar of the NOW project, the
Bank is experimenting with new interior layouts to enhance
the flexibility and diversity of workspaces for employees when
on site. Implemented at the Coverage and Finance teams, this
experiment is regularly reported on to the Social and Economic
Committee, the latter being accompanied by an expert on the
work environment and equipment who will be called upon to issue
an opinion. Workspace transformation projects have also been
launched in Frankfurt, New York and Taipei.
Special communication tools have been put in place to inform
employees throughout the NOW project. To support the cultural
and managerial transformation stemming from these changes, a
change management set-up has been introduced for managers
and employees in addition to Crédit Agricole CIB’s empowerment
process.
EMPLOYEE BENEFITS
As a responsible employer that cares about the well-being of
its employees, Crédit Agricole CIB promotes a large range of
employee benefits worldwide. The Bank takes particular care to
ensure that its employee benefits are:
y
ethical and reflect the Group’s values;
y
attractive and reasonable in terms of local practices in the
banking sector;
y
appropriate for the targeted recipients.
The Bank contributes to the funding of health cover programmes
in many countries in order to offer its employees access to health
care.
2021 was marked by an improvement in health insurance in India
and the United States, as well as health insurance for expatriate
employees.
Ensuring family protection in the event of death or a work
stoppage is also important to Crédit Agricole CIB, which fully
funds the schemes put in place by its entities. In terms of
preparing for retirement, Crédit Agricole CIB has been a pioneer
in many countries by helping its employees build up savings. In
France, Spain, Italy, the United Kingdom and the United States,
this type of scheme has been in place for over 20 years.
Through its employee savings schemes, employees share in the
Bank’s results and performance. Worldwide, Group’s employees
are regularly offered the opportunity to share in capital increase
operations. In 2021, this programme covered 9 countries
(including France) in which Crédit Agricole CIB is located.
In addition, employees on international positions benefit from
specific benefits.
Since 2016, the profit-sharing agreement in France has
incorporated the Bank’s CSR indicator, FReD, to take account
of the joint commitment of the Bank and its employees to the
success of the CSR policy.
As part of its approach to continuous improvement of FReD,
Crédit Agricole CIB is committed to strengthening its CSR
commitments by involving all employees. Since 2020, the Bank
has offered its employees a payroll giving initiative, offering
employees (CDI, fixed-term and work-study employees) the
ability to make a donation of up to €5 per month to an NGO
via a deduction from their salary. Crédit Agricole CIB doubles
each of the donations and covers the operating costs of the
platform so that 100% of these donations are paid to associations
chosen by employees: Pure Ocean, Institut Curie, Hôpital Necker-
Enfants malades (Children’s Hospital) and Les restos du cœur.
In 2021, 341 employees participated in the salary donation
scheme enabling the Bank to pay €31,231.42 to partner
associations.
f
Collective variable compensation paid during the year on the basis of the previous year’s results in France
2021
2020
Total amount
(thousands of
euros)
Number of
beneficiaries
Average amount
(euros)
Total amount
(thousands of
euros)
Number of
beneficiaries
Average amount
(euros)
Profit-sharing
1,540
524
2,939
941
537
1,751
Incentive plans
34,203
5,917
5,780
33,291
5,978
5,569
Employer’s additional
contribution
16,506
5,673
2,910
16,028
5,488
2,921
TOTAL
52,249
-
-
50,260
-
-
France scope covered
99%
99%
Chapter 2 – Economic, social and environmental information
AMBITION IN TERMS OF HUMAN RESOURCES: STRENGTHENING AUTONOMY AND EMPOWERMENT
65
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
f
Annual fixed salary grid in France
Executives women
Number of employees
[€60,000 to €90,000[
[€45,000 to €60,000[
[€35,000 to €45,000[
[€30,000 to €35,000[
[€25,000 to €30,000[
[€20,000 to €25,000[
Under €20,000
Over €90,000
Executives men
No-executives women
No-executives
men
400
1,000
800
600
200
0
200
400
600
800
1,000
Scope covered: 99 %
f
Average monthly salary of permanent staff active in France (gross salary in euros)
2021
2020
Women
Men
OVERALL
Women
Men
OVERALL
Executives
5,195
6,816
6,081
5,147
6,808
6,054
Non-executives
3,055
2,989
3,042
3,011
2,967
3,002
TOTAL
5,042
6,753
5,953
4,961
6,732
5,897
France scope covered
99%
99%
f
Absenteeism in calendar days
2021
2020
TOTAL
Average number of
days of absence per
employee
TOTAL
Average number of
days of absence per
employee
Women
Men
No. of days
%
No. of days
%
Sickness
35,600
18,892
54,492
45.5
4.5
56,382
47.9
4.8
Accident
897
218
1,115
0.9
0.1
1,705
1.4
0.1
Maternity, paternity,
breastfeeding leave
44,270
3,906
48,176
40.2
4.0
42,533
36.2
3.6
Authorised leave
4,977
5,560
10,537
8.8
0.9
11,824
10.1
1.0
Other
2,710
2,717
5,427
4.5
0.5
5,169
4.4
0.4
TOTAL
88,453
31,293
119,746
100.0
10.0
117,613
100.0
10.0
Rate of absenteeism
2.7%
2.8%
Scope covered
97%
-
48 workplace or commuting accidents were recorded in 2021. 72 were recorded in 2020.
Chapter 2 – Economic, social and environmental information
PROMOTING THE ECONOMIC, CULTURAL AND SOCIAL DEVELOPMENT OF THE HOST COUNTRY
66
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
6.
PROMOTING THE ECONOMIC, CULTURAL
AND SOCIAL DEVELOPMENT OF THE HOST
COUNTRY
6.1. DIRECT AND INDIRECT IMPACTS
Crédit Agricole CIB’s main economic and social impacts on
local areas (both positive and negative) are indirect, through
its financing activity, and do not come directly from its sites. Its
business services do not therefore have a significant impact on
neighbouring and local populations.
Crédit Agricole CIB’s indirect impacts reflect its role as a major
financier of the global economy and major player in debt markets.
The principles listed under the “General environmental policy”
heading are therefore intended to maximise the positive effects
and minimise the negative impacts of Crédit Agricole CIB’s
business by:
y
implementing its system to assess and manage environmental
or social client and transaction related risks;
y
promoting so-called “responsible” financing transactions, in
which issuers and investors factor social and environmental
considerations into their investment decisions.
Offering clients a diversified range of socially responsible
investments is also one of the objectives set by Wealth
Management.
6.2. EMPLOYEES’ INVOLVEMENT IN SOLIDARITY INITIATIVES
Crédit Agricole CIB actively encourages the commitment of its
employees to social causes in the fields of social solidarity and
inclusion. To this end, in 2021 the Bank renewed its “Solidaires
by Crédit Agricole CIB” programme.
Solidarity initiatives in France and abroad
During regular events or one-off assignments, employees shared
some very rewarding moments in the service of the cause of
public interest. These experiences, organised in a number of
countries where Crédit Agricole CIB operates, give employees
opportunities to engage with and help charities to present their
projects to other Bank employees.
In France, employees continued to donate their time to holding
sporting events, such as the Financial Community Telethon. Due
to the health context, which remains unstable, this race turned
into a virtual event. Employees of 9 Crédit Agricole S.A. Group
entities participated in this unprecedented edition, and walked
or ran individually to collect donations for the AFM-Téléthon.
The Group’s runners covered 14.000 kilometres thanks to the
United Heroes sport app. Against the backdrop of the health
crisis and in compliance with barrier measures, participation in
the telethon – which was founded on the principles of contribution
and solidarity – was high.
Since April 2020, the salary donation allows French employees to
make a donation to a selected association by donating cents from
their salary via a monthly deduction made when preparing their
pay. Employees can also add between €1 and €5 per month to
their donation, with Crédit Agricole CIB adding to each donation
made. In 2021, €31,231.42 were collected through employee
donations (including contribution from the Bank). 100% of these
donations were donated to one of the 4 selected associations:
Hôpital Necker-Enfants malades
(Children’s Hospital),
Institut
Curie,
Les Restos du Cœur
or
Pure Océan.
These associations
held a forum for associations to demonstrate to employees the
importance of these donations in support of their projects.
Through its “
Coups de Pouce
” programme, the Bank provides
financial support for charitable projects to which employees are
personally committed. The designated fields of activity are social
solidarity, social inclusion, environment, education and health
in France and abroad. In 2021, 12 employees in France and
12 abroad benefited from these “
Coups de Pouce
” to help carry
out their projects.
In total, since 2013, 329 charitable projects supported by
employees have been supported by the Bank,including
108 abroad.
In the United States, in the healthcare and medical research
sector, Crédit Agricole CIB supports The Bowery Mission, CAF
America and the American Cancer Society, as well as New York
Cares working in the field of education and children.
In the United Kingdom, the Bank helps to combat poverty,
instability and exclusion through the Charity programme.
In Hong Kong, Crédit Agricole CIB supports the WeR Family
Foundation.
In Cambodia, the Bank continues its partnership with the
Enfants
du Mékong
(Children of the Mekong) association.
In 2021, Indosuez Wealth Management continued its sustainable
and responsible commitment, driven in particular by the concrete
solidarity initiatives of its employees:
y
since 2012, the Indosuez Foundation in France, under the
auspices of the
Fondation de France
, has been involved in
concrete charitable initiatives to support vulnerable people:
elderly people, disabled people, teenagers or young adults
who are victims of addiction or high-risk behaviour. Almost
80 associations, including around fifteen social impact start-ups,
have thus benefited from skills sponsorship and donations of
professional time by almost 50% of staff in France;
y
since its establishment in 2012, the Indosuez Foundation in
Switzerland has funded 30 environmental projects with a high
economic and social impact for vulnerable communities in
Switzerland and around the world. They aim to support local
communities through projects that promote the dissemination
of knowledge, the emancipation of young people and the pro-
tection of natural heritage. Through its national company volun-
teering programme (Citizen Days) each year, it offers Indosuez
Group employees in Switzerland (Indosuez and Azqore) the
Chapter 2 – Economic, social and environmental information
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67
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
opportunity to enhance their multidisciplinary skills. It also
supported associations that are actively helping people who
are extremely vulnerable during the Covid-19 crisis;
y
in partnership with
Planète Urgence
, Indosuez Wealth
Management offers its employees the opportunity to take
solidarity leave and actively participate in projects created
and managed by local players in different countries around
the world. For 2 weeks (over the period of their leave), the
selected employees provide technical assistance (transfer of
skills) to solidarity projects, and projects involving cooperation,
development or protection of the environment, thereby helping
to strengthen the autonomy of the populations concerned.
In 2020 and 2021, volunteer assignments abroad were sus-
pended and deferred until 2022. However, a proportion of
Indosuez Wealth Management’s donations were allocated to
reforestation initiatives;
y
since 2016, CFM Indosuez, a subsidiary of Indosuez in Monaco,
has worked with AMADE Mondiale (World Association of
Children’s Friends), which was established more than 50 years
ago by Princess Grace of Monaco. It seeks to support access
to education in Burundi;
y
CFM Indosuez also supports projects aimed at children and
young people in Monaco and France (PACA region), led by
associations recognised for their professionalism and the rele-
vance of their actions. They are selected by a decision-making
committee from among the applications received following a
call for projects, with the final candidates selected in advance
by employee volunteers under a standardised selection and
instruction process. The Bank is also committed to pro-
tecting the oceans as part of its partnership with the
Institut
Océanographique de Monaco
. In 2021, it donated €171,000
to the institute, corresponding to the solidarity share of the
responsible investment solution, CFM Indosuez Océano, built
in collaboration with Crédit Agricole CIB.
In 2021, CFM Indosuez sought to consolidate its collective
commitments as well as its societal and environmental initiatives
through a Social Charter that was rolled out to its employees in
January 2022.
6.3. CULTURAL SPONSORSHIP
Crédit Agricole CIB France continues to actively pursue a policy
of cultural sponsorship supporting projects that encourage
artistic creation, the discovery of the world’s cultures and the
transmission of cultural heritage. Despite the health situation,
which remains complex, Crédit Agricole CIB has decided to
maintain its commitments to the
Opéra de Paris
and the
Festival
d’Aix-en-Provence
.
Internationally, Crédit Agricole CIB maintained its support for:
y
the National Gallery in London,
y
the Royal Opera in Madrid,
y
the Museum of Modern Art “MoMA” and the Metropolitan
Museum of Art (MET) in New York.
6.4. LINKS WITH SCHOOLS AND SUPPORT FOR UNIVERSITY RESEARCH
y
Crédit Agricole CIB ensures a strong presence in schools,
particularly through the “
Capitaines d’école
” project led by
Crédit Agricole S.A..
y
Since 2006, Crédit Agricole CIB has been a partner of the
Chair of Quantitative Finance and Sustainable Development
at
Paris Dauphine
University and
École Polytechnique.
This
multidisciplinary project, supported from its inception by Crédit
Agricole CIB, is unique in that it brings together specialists in
quantitative finance, mathematics and sustainable develop-
ment. One research area studied by this Chair since 2010
involves the quantification of indirect impacts of the financing
and investment activities, particularly greenhouse gas emissions
induced by the activities of the Bank’s clients. This partnership
was renewed at the end of 2021 for 5 years.
y
One of the solid achievements of this research is the SAFE
(previously, P9XCA) methodology referred to above. Crédit
Agricole CIB has played an important role in disseminating this
work to other financial institutions. In 2014, the Bank took an
active role in the sector approach recommended by French
organisations promoting corporate social responsibility (ORSE,
ADEME and ABC). This approach seeks to produce a practical
guide listing the methodologies and tools to help the various
financial stakeholders (banks, insurance companies, asset
managers) assess their direct and indirect GHG emissions.
y
A new PhD begun in 2018, overseen by the Chair, was sup-
ported at the end of 2021 on the subject of the climate risks
which could affect banks, particularly in relation to the assess-
ment of scenarios and country risk. This work is focused on
assessing the transition risk by country category based on
quantitative data and qualitative analysis and aims to go beyond
the contributions taken into account at the national level (NDC).
y
Since 2019, Crédit Agricole CIB has also been a partner of
the Fintech/Digital Finance Chair at
Université Paris Dauphine
through a partnership agreement aimed at the emergence of an
ecosystem combining research, teaching and entrepreneurship
on the topic of digital finance. This agreement also enhances
relations between partners, academic institutions and students
from Paris Dauphine.
y
Crédit Agricole CIB is also a partner of the HEC Foundation
as part of financing a “Corporate Initiative” training course
dedicated to mergers and acquisitions. Thanks to the
Corporate lnitiative (M&A certificate), HEC Paris students
will acquire new skills and have access to new professional
opportunities. HEC Paris’s teaching will enrich exchanges
within an innovative and unique academic ecosystem.
The M&A certificate is a one-month course, reserved for stu-
dents at HEC Paris, covering all major aspects of M&A practices.
This multidisciplinary training is taught by a faculty composed
primarily of professionals and covers all major areas of M&A.
Crédit Agricole CIB will be able to submit a subject for reflection
on all general management topics for a student assignment.
y
In 2021, Crédit Agricole CIB became a partner of the “
La
Physique autrement
” Chair at Paris-Saclay University, which
explores new ways of popularising and teaching physics, with
a view to communicating with the general public.
y
In 2021, Crédit Agricole became a partner of the EDHEC
Business School’s “Climate Change & Sustainable Finance”
Master of Science programme. This course, developed jointly
by the EDHEC Business School and Mines ParisTech, aims
to train future finance professionals on sustainable finance
objectives and integrate environmental, social and governance
factors into their future decisions.
Chapter 2 – Economic, social and environmental information
LIMITING OUR DIRECT ENVIRONMENTAL IMPACT
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7.
LIMITING OUR DIRECT ENVIRONMENTAL
IMPACT
7.1. BUILDINGS AND CARBON FOOTPRINT MANAGEMENT PROCESS
Certification of buildings
The Montrouge and Saint-Quentin-en-Yvelines campuses again
received the “HQE Exploitation” label in 2021 with a very good
level of performance. The Saint-Quentin-en-Yvelines campus has
had its EcoJardin label renewed.
Offsetting operational greenhouse gas
emissions
Crédit Agricole CIB offset 43,000 tonnes of CO
2
equivalent by
cancelling VCU (Verified Carbon Units) certificates corresponding
to dividends received in 2021 in connection with its investment
in the
Livelihoods
Fund. The
Livelihoods
Carbon Fund gives
investors carbon credits which have a major social impact and
help to promote biodiversity. The Fund also finances large scale
projects in the areas of reforestation, sustainable agriculture and
clean energy generation. These projects are implemented for and
by deprived rural agricultural communities in developing countries
in Asia, Africa and Latin America.
Certificates were received for four projects in 2021:
y
In Burkina Faso, with the NGO Tiipaalga, providing 30,000
families with improved wood stoves built by women themselves.
Rolled out in 9 municipalities covering 222 villages in the north
of the country, this project started in 2014 will save 40,000
tonnes of wood and avoid the emission of 689,000 tonnes of
CO
2
into the atmosphere over 10 years. In addition to having
a real impact on women’s health by reducing exposure to toxic
smoke and improving their daily lives, this project improves
the status of women in their villages by putting them at the
centre of the project. The 2,000 project participants benefit
from self-managed microcredit that allows them to develop
income-generating activities such as fattening sheep. The
project also strengthens the food security of villagers in a
region where malnutrition affects nearly 20% of the population.
y
In Kenya, the “Hifadhi” project, which means “preserving” in
Swahili, has made it possible to distribute 60,000 cooking
stoves in three districts at the foot of Mount Kenya. These
improved stoves are made from highly energy-efficient local
ceramic, allowing a significant 60% reduction in wood con-
sumption compared with traditional stoves. This will save 13,000
tonnes of wood and avoid emissions of more than one million
tonnes of CO
2
over the 10-year duration of the project.
y
A similar project, launched in 2016 in the Huancavelica and
Ayacucho regions in Peru, involves equipping 30,000 house-
holds with improved stoves, which will also save emissions of
one million tonnes of CO
2
. The local NGO partner, ITYF, also
provides communities with kits and training to raise awareness
among families and children of health and hygiene issues (hand
washing, consumption habits such as drinking clean water).
y
In India, the NEWS (Nature Environment and Wildlife Society)
NGO project involves planting 16,000 mangrove trees to rebuild
mangrove swamps in the Sundarban Islands. Women are at
the heart of the project: they have been trained by NEWS to
manage nurseries used in the plantings that they themselves
have made. The project thus helps to strengthen their status
within the communities. Mangroves increase food security
and villages’ income by allowing populations of fish, shellfish
and crustaceans to grow. They also improve safety for local
populations by strengthening existing dikes. Finally, they will
capture nearly 700,000 tonnes of greenhouse gases over the
course of 20 years.
CFM Indosuez has signed the
Pacte pour la Transition Énergétique
(Energy Transition Pact), which seeks to reduce greenhouse
gas emissions by 55% between 1990 and 2030, and places
the Principality of Monaco on a trajectory of reaching carbon
neutrality by 2050.
7.2. POLLUTION AND WASTE MANAGEMENT
Crédit Agricole CIB does not generate significant pollution
directly. The Bank nevertheless devotes substantial effort to
waste recycling.
Several actions have been implemented to reduce environmental
impacts on the campuses of Montrouge and Saint-Quentin-en-
Yvelines: zero phytosanitary products, eco-products for interior
maintenance, and limitation of food waste (display, self-service
for fruit and vegetables). Service providers were asked to reduce
the amount of waste by prioritising wholesale purchases without
overwrapping (HEQ approach and internal “clean worksite”
charter). Actions to raise awareness amongst employees are
also regularly organised (energy saving, waste management).
The creation of waste sorting centres in Saint-Quentin-en-Yvelines
has improved waste monitoring, sorting and recycling rates. In
2021, 78% of the 268 tonnes of waste collected were reused,
recovered or recycled.
The Indosuez Wealth Management Group is also determined to
reduce its direct impact on the environment and continues to take
action to raise the awareness of its employees of eco-friendly
behaviour and the implementation of resource management
activities and recycling. In 2021, CFM Indosuez received
a certificate from the Principality of Monaco’s Environment
Department for participating in the European Week for Waste
Reduction.
Indosuez Wealth Management in Luxembourg signed the “Zero
Single Use Plastic”
manifesto and has committed to implementing
all the necessary actions to achieve this objective and the removal
of products targeted by this manifesto, namely various single-use
plastic objects. This initiative is now shared by the other Group
entities.
Chapter 2 – Economic, social and environmental information
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2021
7.3. SUSTAINABLE USE OF RESOURCES
Energy
The indicators relate to consumption of electricity and gas:
f
Electricity in kWh
2021 consumption of 75,274,954 kWh.
Evolution Y-1
Evolution Y-1
Covered
area (m
2
)
Ratio
(kWh/m
2
/year)
75,274,954 kWh
-8%
281,957
-4%
267
ELECTRICITY
The data published by Crédit Agricole CIB covers the electricity
consumption of all Crédit Agricole CIB Group entities, including
Indosuez Wealth Management entities, data centres and remote
sites in the Paris region, over a total area of 281,500m
2
.
For Crédit Agricole CIB in the Paris region, the buildings in
Montrouge and Saint-Quentin-en-Yvelines consume 100% “green”
electricity, meaning that it is generated by renewable sources of
energy. Internationally, almost 56% of electricity consumption is
“green” (e.g. in London, Madrid and Brazil).
The review of the premises occupied by the Crédit Agricole CIB
Group as well as the effects of the Covid-19 pandemic, with the
implementation of teleworking and the temporary shutdown of
certain campus buildings during the first lockdown, resulted in a
drop in energy consumption of nearly 8%.
f
Gas in kWh
2021 consumption of 10,278,333 kWh.
Evolution Y-1
Evolution Y-1
Covered
area (m
2
)
Ratio
(kWh/m
2
/Year)
10,278,333 kWh
24%
166,096
9%
62
GAS
The data published by Crédit Agricole CIB covers the gas
consumption of all Crédit Agricole CIB Group entities, including
those of Indosuez Wealth Management.
The 24% increase in consumption in 2021 compared to 2020 is
due to a more stringent climate in 2021 and the consequences of
the measures put in place as a result of Covid-19 (100% fresh air
handling units without heat recovery, and with extended operating
hours). However, consumption was 10% lower than in 2019, due
to the lower number of on-site employees in 2021 as a result of
the Covid-19 epidemic.
Chapter 2 – Economic, social and environmental information
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HEAT OR STEAM NETWORKS AND URBAN
NETWORK
This source of heating is mainly used in North America, Russia and
Luxembourg. On a like-for-like basis, a 14% drop in consumption
was recorded in 2021.
Water consumption
With regard to Crédit Agricole CIB in Montrouge, the Eole and
Terra buildings are equipped with a rainwater recovery system
and use water saving machines for cleaning the floors.
Due to the low occupancy of premises during the Covid-19
pandemic, a 21% decrease in water consumption was recorded
on campuses in Ile-de-France. A 38% decrease was recorded
in international locations.
7.4. TRAVEL FOOTPRINT
In 2021, transport continued to be particularly impacted by the
Covid-19 pandemic worldwide, with a fall of more than 37% in
air transport and 36% in rail travel.
Company travel plan and mobility plan
On the Montrouge and Saint-Quentin-en-Yvelines campuses,
there are many initiatives in place to raise employee awareness.
A car-sharing solution has been introduced, the bicycle park
has been expanded and electric charging terminals have been
installed.
In compliance with its obligations, on the one hand, under the
Energy Transition Act and the filing of a Mobility Plan and, on the
other hand, under the objectives set by the Crédit Agricole Group
to reduce its greenhouse gas emissions, Crédit Agricole CIB
actively participated in the launching, monitoring and completion
of work covered in the Mobility Plan.
In 2021, the Covid-19 pandemic meant that remote working and
communication methods continued to be used. The widespread
use of remote meetings and remote working by the business lines
at which such practices are possible helped to reduce the Crédit
Agricole CIB Group’s carbon footprint.
SIGNIFICANT
EVENTS IN
2021
Defining a carbon contribution mechanism in order
to reduce direct carbon footprint
Crédit Agricole CIB has been analysing a system in which
the Bank’s business lines make contributions based on
the greenhouse gas emissions resulting from their oper-
ations (business travel, energy use associated with build-
ings and IT). This carbon contribution, approved in 2021
by the Executive Committee for implementation in 2022,
will finance actions aimed at reducing direct carbon foot-
prints and offsetting the residual emissions from operations.
CORPORATE
GOVERNANCE
72
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1 .
BOARD OF DIRECTORS’ REPORT ON CORPORATE
GOVERNANCE
..................................................
75
1.1. ORGANISATION OF THE CORPORATE GOVERNANCE
BODIES
..................................................................................
76
1.1.1. Separation of the functions of Chairman of the Board
of Directors and Chief Executive Officer
........................
76
1.1.2. Composition of the Board of Directors
.........................
77
1.1.3. Diversity within the Board of Directors and the
governing bodies
of Crédit Agricole CIB
......................................................
82
1.1.4. Composition of the Executive Management
and limitations on the Chief Executive Officer’s
powers
...................................................................................
84
1.2. FUNCTIONING, PREPARATION CONDITIONS AND
ORGANISATION OF THE WORK OF THE BOARD OF
DIRECTORS
..........................................................................
84
1.2.1. Meetings of the Board of Directors
................................
84
1.2.2. Powers of the Board of Directors
...................................
84
1.2.3. Referral procedure, information procedure and terms
of the Board’s intervention – Conflicts of Interest ..85
1.2.4.
Activities of the Board of Directors in 2021
...............
85
1.2.5.
Assessment of the expertise and functioning of the
Board of Directors
..............................................................
87
1.2.6. Training of directors
............................................................
87
1.2.7. Specialised Committees of the Board of Directors...88
1.3. OTHER INFORMATION ABOUT THE CORPORATE
OFFICERS
.............................................................................
95
1.3.1. List of the functions and mandates held by the
Executive Corporate Officers at 31 December 2021 ..95
1.3.2. Shares held by the Directors
..........................................
117
1.3.3. Ethics, conflicts of interest, and privileged
information
...........................................................................
117
1.3.4. Transactions carried out on the securities of Crédit
Agricole CIB (Art. L. 621-18-2 of the French Monetary
and Financial Code)
...........................................................
118
1.3.5. Agreements referred to in Article L. 225-37-4-2° of
the French Commercial Code
.........................................
118
1.4. COMPENSATION POLICY
..................................................
118
1.4.1.
General principle of the compensation policy
..........
118
1.4.2. Total compensation
............................................................
119
1.4.3. Governance of compensation policy
............................
121
1.4.4.
Remuneration of identified staff
................................
121
1.4.5. Remuneration of Senior management
.......................
122
1.4.6.
Compensation paid to members of the Board of
Directors of Crédit Agricole CIB, in accordance with
Article L. 225-45 of the French Commercial Code 124
1.5.
SUMMARY TABLE OF THE RECOMMENDATIONS OF THE
AFEP-MEDEF CODE WHICH WERE NOT FOLLOWED
AND THUS EXCLUDED RELATING TO GOVERNANCE
AND THE BOARD OF DIRECTORS FUNCTIONING
At 31 December 2021
................................................................
125
1.6.
PROCEDURES FOR SHAREHOLDER ATTENDANCE AT
THE GENERAL MEETING
..................................................
126
1.7.
STRUCTURE OF CRÉDIT AGRICOLE CIB’S SHARE
CAPITAL AND OTHER INFORMATION PROVIDED FOR
IN ARTICLE L.22-10-11 OF THE FRENCH COMMERCIAL
CODE
....................................................................................
126
1.8.
INFORMATION ON DELEGATIONS FOR CAPITAL
INCREASES
.........................................................................
126
2 .
COMPOSITION OF THE EXECUTIVE COMMITTEE
AND THE MANAGEMENT COMMITTEE
............
127
3
CONTENTS
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EXECUTIVE COMMITTEE OF CRÉDIT AGRICOLE CIB
ON 31 DECEMBER 2021
1
Chief Executive
Officer
3
Senior Regional
Officers
Jacques RIPOLL
4
Deputy General
Managers
Jean-François
BALAŸ
Pierre
GAY
3
Deputy chief executive
officers
Didier
GAFFINEL
Stéphane
DUCROIZET
Pierre
DULON
Georg
ORSSICH
Olivier
BELORGEY
Anne-Catherine
ROPERS
Marc-André
POIRIER
Michel
ROY
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THE BOARD OF DIRECTORS
6
BOARD
MEETINGS
in 2021
4
SPECIALISED
COMMITTEES
Audit Committee
Risks Committee
Compensation Committee
Appointments and Governance
Committee
96.92%
ATTENDANCE
RATEE
at the meetings in 2021
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1 .
BOARD OF DIRECTORS’ REPORT ON
CORPORATE GOVERNANCE
To the shareholders,
Pursuant to the last paragraph of Article L. 225-37 of the French Commercial Code, the report on corporate governance was prepared
by the Board of Directors as a supplement to the management report. It notably presents the information which is required under Articles
L.22-10-10, L.22-10-11 and L. 225-37-4 of the French Commercial Code, particularly the information concerning the composition of the
management bodies (Executive Management and Board of Directors), the conditions for preparing and organising the work of the Board
of Directors and its Committees, and compensation.
It was prepared on the basis of the work of the Board of Directors and its Committees, the Secretariate of the Board of Directors, the Human
Resources Department and the procedures and documentation on internal governance existing at Crédit Agricole CIB.
This report was previously presented to the Appointments and Governance Committee and to the Compensation Committee with respect
to the sections which are covered by their respective areas of expertise. It was approved by the Board of Directors at its meeting on 8
February 2022.
Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) applies the AFEP-MEDEF Corporate Governance Code, updated in
January 2020, available at: http://www.afep.com/ or http://www.medef.com/fr/
Note - Abbreviations used in the Board of Directors’ report on corporate governance:
GM: General Meeting
Board: Board of Directors
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1.1. ORGANISATION OF THE CORPORATE GOVERNANCE BODIES
1.1.1. Separation of the functions of Chairman of the Board of Directors and Chief Executive
Officer
On 15 May 2002, the Board of Directors decided to separate the position of Chairman of the Board of Directors from the position of Chief
Executive Officer, in accordance with Article 13 paragraph 5 of the Company’s articles of association (see Chapter 8 of the present Universal
Registration Document), the provisions of Law no. 2001-420 of 15 May 2001 on new economic regulations, and Article L.511-58 of the
French Monetary and Financial Code
(1)
.
This choice followed the resolution passed at the 15 May 2002 General Meeting to change the Crédit Agricole CIB's structure from a
French
société anonyme
(public limited company) governed by a Supervisory Board and Management Board to a French
société anonyme
governed by a Board of Directors.
(1)
Article L.511-58 of the French Commercial Code provides that the role of Chairman of the Board of Directors of a credit institution cannot be carried out by the Chief Executive
Officer.
Function
Name
Appointment
Term of office
Powers
Chairman
Philippe BRASSAC
Appointed Chairman of
the Board of Directors
from 20 May 2015.
- Reappointed for the duration of his
director mandate by the Board of
Directors meeting on 7 May 2019,
i.e. until the conclusion of the
Ordinary General Meeting which
will rule on the financial statements
for 2021 financial year.
- He organises and directs the work of the Board of Directors*.
- He ensures that Crédit Agricole CIB’s corporate bodies function
correctly*.
- In particular, he ensures that the directors are able to carry out their
duties*.
- In general, the Chairman possesses all the powers attributed to him
by the legislation in force*.
*(Art. 15 of the articles of association)
Chief
Executive
Officer
Jacques RIPOLL
Appointed Chief
Executive Officer from
1 November 2018
- Appointed Chief Executive Officer
by the Board of Directors on
31 October 2018 with effect from
1 November 2018 for an indefinite
period.
- He is vested with the broadest powers to act in all circumstances on
behalf of Crédit Agricole CIB, within the limits of the company’s objects
and subject to the powers expressly granted by law to shareholders
at general meetings and to the Board of Directors.
- He represents Crédit Agricole CIB in its dealings with third parties.
*(Art. 16.1 of the articles of association)
Information on the composition of the Executive Management is available in Section 1.1.4 of this report.
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1.1.2. Composition of the Board of Directors
Composition of the Board of Directors as at 31 December 2021
Philippe
BRASSAC
(Chairman)
Émile
LAFORTUNE
(Advisory member of the board)
Odet
TRIQUET
Catherine POURRE
(Independent)
Anne-Laure NOAT
(Independent)
Abdel-Liacem
LOUAHCHI
(Elected by
employees)
Claude
VIVENOT
Michel
GANZIN
Olivier
GAVALDA
Françoise GRI
(Independent)
Guy
GUILAUMÉ
Luc
JEANNEAU
Paul
CARITE
Laure
BELLUZZO
Christian
ROUCHON
(Advisory member
of the board)
Jean-Guy
LARRIVIÈRE
(Elected by
employees)
Claire
DORLAND
CLAUZEL
(Independent)
Meritxell MAESTRE
CORTADELLA
(Independent)
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REMINDER OF PROVISIONS OF THE ARTICLES OF ASSOCIATION
Number of directors on the
Board of Directors
The Board of Directors is made up of between six and twenty directors:
- at least six of whom are appointed by the shareholders the General Meeting, and
- two of whom elected by employees in accordance with the provisions of Articles L. 225-27 to L. 225-34 of the French
Commercial Code.
(Art. 9 of the articles of association)
Period of office as directors
appointed by shareholders
The period of office as Director appointed by the General Meeting is three years.
(Article 9.1 of the Articles of Association)
Directors representing
employees
The directors representing the employees, of whom there are two, are elected for a period expiring on the same day:
- either following the Annual General Meeting of Shareholders held in the third calendar year following the year in which
they are elected,
- or on the conclusion of the electoral process organised during that third calendar year if this process is carried out after
the General Meeting.
(Art. 9.2 of the articles of association)
Age of the directors
Any Director reaching the age of sixty-five is considered to have automatically resigned at the end of the Annual General Meeting
that follows the date of the anniversary in question.
However, the term of office of a Director appointed by the General Meeting who has reached the age limit may be renewed for a
maximum of five subsequent one-year periods, provided the total number of Directors aged sixty-five or over does not exceed one
third of the total number of Directors in office.
(Art. 10 of the Articles of Association)
Advisory members of the
Board and members of
the Economic and Social
Committee
The following individuals may also attend meetings of the Board of Directors in an advisory capacity:
- the advisory member(s) of the Board appointed by the Board of Directors;
- one member of the Economic and Social Committee, appointed by that Committee.
(Art. 9 of the articles of association)
DIRECTORS AND ADVISORY MEMBERS OF THE BOARD AT 31 DECEMBER 2021
Directors/Advisory members of
the board
at 31 December 2021
Date of first
appointment
Date of last
reappointment
End
of current
term of office
Chairman or Member
of a Committee
Philippe BRASSAC
(Chairman of the Board of
Directors)
23 February 2010
1
7 May 2019
2022 GM
Laure BELLUZZO
1
2 November 2021
2022 GM
Paul CARITE
7 May 2019
4 May 2020
2023 GM
Member of the Risk Committee
Claire DORLAND CLAUZEL
3
9 May 2016
3 May 2021
2022 GM
Chairwoman of the Appointments and Governance
Committee
Member of the Audit Committee and the Compensation
Committee
Michel GANZIN
10 December 2020
3 May 2021
2024 GM
Olivier GAVALDA
4 May 2018
7 May 2019
2022 GM
Member of the Audit Committee
Françoise GRI
4 May 2017
4 May 2020
2023 GM
Member of the Risk Committee
Guy GUILAUME
3 May 2021
2024 GM
Member of the Audit Committee
Luc JEANNEAU
4 May 2017
4 May 2020
2023 GM
Member of the Compensation Committee
Member of the Appointments and Governance Committee
Jean-Guy LARRIVIERE
4
25 November 2020
2023
Member of the Compensation Committee
Abdel-Liacem LOUAHCHI
4
25 November 2020
2023
Meritxell MAESTRE CORTADELLA
4 May 2020
2023 GM
Member of the Audit Committee and the Risk Committee
Member of the Appointments and Governance Committee
Anne-Laure NOAT
30 April 2014
4 May 2020
2023 GM
Chairwoman of the Risk Committee and the
Compensation Committee
Member of the Audit Committee
Catherine POURRE
3
4 May 2017
3 May 2021
2024 GM
Chairwoman of the Audit Committee
Member of the Risk Committee
Odet TRIQUET
4 May 2018
3 May 2021
2024 GM
Member of the Risk Committee
Claude VIVENOT
3 May 2021
2022 GM
Émile LAFORTUNE (Advisory
member of the board)
4 May 2020
2
2023
Christian ROUCHON (Advisory
member of the board)
7 May 2019
2
2022
1
Co-opted by the Board of Directors.
2
Appointed by the Board of Directors in accordance with Article 17 of the Articles of Association.
3
Given that Claire Dorland Clauzel and Catherine Pourre have reached the age limit for Directors (Article 10, paragraph 1 of the Articles of Association), their term of office as
Directors will expire at the General Meeting to be held on 3 May 2022.
4
Director elected by employees.
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CHANGES TO THE COMPOSITION OF THE BOARD OF DIRECTORS IN 2021
Directors
Appointment
Reappointment
End of term of office
Laure BELLUZZO
2
Cooptation Board Meeting of
2 November 2021
Jacques BOYER
1
GM of 3 May 2021
Claire DORLAND CLAUZEL
GM of 3 May 2021
Michel GANZIN
GM of 3 May 2021
Guy GUILAUME
1
GM of 3 May 2021
Catherine POURRE
GM of 3 May 2021
Laurence RENOULT
2
31 October 2021
François THIBAULT
1
GM of 3 May 2021
Odet TRIQUET
GM of 3 May 2021
Claude VIVENOT
1
GM of 3 May 2021
1
Jacques Boyer and François Thibault have retired. They were respectively replaced by Guy Guilaumé and Claude Vivenot from the General Meeting held on 3 May 2021.
2
Laurence Renoult took up a new role within the Crédit Agricole Group, which was incompatible with her role as a director of Crédit Agricole CIB. She was replaced by Laure
Belluzzo from 2 November 2021.
AVERAGE AGE OF DIRECTORS
AT 31 DECEMBER 2021
At 31 December 2021, the average age of the Directors on the
Crédit Agricole CIB Board of Directors was 58.
From 41 to 50 years
From 51 to 60 years
37.5%
37.5%
25%
From 61 to 70 years
SENIORITY IN OFFICE
AT 31 DECEMBER 2021
83.33 %
16.66 %
4 years and under
From 5 to 11 years
0%
12 years and over
ATTENDANCE RATE OF DIRECTORS AT BOARD OF
DIRECTORS’ MEETINGS
Attendance rate
on the board
96.92%
The average rate of attendance of members at Board of Directors’
meetings, including members whose term of office expired during
the year, was 96.92 % for all Board meetings in 2021.
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Number of Board meetings that the
Director should have attended in
2021
Number of Board meetings attended
by the Director in 2021
Attendance
rate
Philippe BRASSAC
6
6
100.00%
Laure BELLUZZO
4
1
1
100.00%
Jacques BOYER
2
2
2
100.00%
Paul CARITE
6
6
100.00%
Claire DORLAND CLAUZEL
6
6
100.00%
Michel GANZIN
6
5
83.33%
Olivier GAVALDA
6
6
100.00%
Françoise GRI
6
6
100.00%
Guy GUILAUME
3
4
4
100.00%
Jean-Guy LARRIVIERE
6
6
100.00%
Abdel-Liacem LOUAHCHI
6
6
100.00%
Luc JEANNEAU
6
6
100.00%
Meritxell MAESTRE CORTADELLA
6
6
100.00%
Anne-Laure NOAT
6
6
100.00%
Catherine POURRE
6
6
100.00%
Laurence RENOULT
1
4
4
100.00%
François THIBAULT
2
2
2
100.00%
Odet TRIQUET
6
5
83.33%
Claude VIVENOT
3
4
3
75.00%
1
Laurence Renoult’s directorship ended on 31 October 2021 as a result of her new role within the Crédit Agricole Group, which was incompatible with her term of office as a director
of Crédit Agricole CIB.
2
The terms of office of Jacques Boyer and François Thibault ended on 3 May 2021.
3
Guy Guilaumé and Claude Vivenot were appointed directors at the Ordinary General Meeting of 3 May 2021.
4
Laure Belluzzo was co-opted by the Board of Directors on 2 November 2021.
INDEPENDENT DIRECTORS ON THE BOARD OF DIRECTORS (IN ACCORDANCE WITH THE
RECOMMENDATIONS OF THE AFEP-MEDEF CODE)
Non-
independent
64.28%
Independent
35.72%*
* Percentage computed according to Recommendation 9.3 of the AFEP-MEDEF Code
Upon recommendations of the Appointments and Governance
Committee, the Board of Directors reviewed the list of Independent
Directors at its meeting of 8 February 2022. Based on the
information available, there were five Independent Directors at
31 December 2021: Mrs Dorland Clauzel, Mrs Gri, Mrs Maestre
Cortadella, Mrs Noat and Mrs Pourre.
At 31 December 2021, the proportion of Independent Directors on
the Board of Directors was more than one third of the total number
of Directors appointed by the General Meeting of Shareholders. This
complies with Recommendation 9.3 of the AFEP-MEDEF Code,
which states that at least one third of the Directors appointed by
the General Meeting of Shareholders, in companies whose capital
is held by a majority shareholder, must be Independent Directors.
The composition of the Board of Directors reflects the Crédit
Agricole Group’s wish for Chairmen or Chief Executive Officers
of regional branches of Crédit Agricole to be represented on the
Boards of Directors of some of Crédit Agricole S.A.’s subsidiaries.
These Directors who come directly from the Crédit Agricole Group
are not considered to be independent because of their functions
inside the Group.
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TABLE OF INDEPENDENT DIRECTORS (AFEP-MEDEF CRITERIA)
Note:
indicates that the criterion was met
/
x indicates that the criterion was not met
31 December
2021
(revised on 8
February 2022)
Criterion
1
Criterion
2
Criterion
3
Criterion
4
Criterion
5
Criterion
6
Criterion
7
Criterion
8
Criterion
9
Claire
DORLAND
CLAUZEL
N/A
Françoise
GRI
x*
N/A
(*) Criterion 1:
Mrs Gri is also:
An Independent Director of Crédit Agricole S.A.
Her position was examined by the Appointments
and Governance Committee and the Board of
Directors which, pursuant to criterion 9 below,
decided that Mrs Gri could be considered as
independent.
Meritxell
MAESTRE
CORTADELLA
N/A
Anne-Laure
NOAT
N/A
Catherine
POURRE
x*
N/A
(*) Criterion 1:
Mrs Pourre is also:
An Independent Director of Crédit Agricole S.A.
Her position was examined by the Appointments
and Governance Committee and the Board of
Directors which, pursuant to 9 below, decided
that Mrs Pourre could be considered as
independent.
For each director, this assessment was based on the independence criteria in points 9.5 to 9.7 of the AFEP-MEDEF Code, as set out below:
Criterion 1
Employee corporate officer within the past five years
(see
§ 9.5.1 of the AFEP-MEDEF Code)
Not to be and not to have been within the previous five years:
y
an employee or Executive Officer of the Company;
y
an employee, Executive Officer or Director of a company
consolidated within the corporation;
y
an employee, Executive Officer or Director of the compa-
ny's parent company or a company consolidated within
this parent company.
Criterion 2
Cross-directorships
(see § 9.5.2 of the AFEP-MEDEF Code)
Not to be an executive officer of a company in which the
corporation holds a directorship, directly or indirectly, or in wich
an employee appointed as such or an executive officer of the
corporation (currently in office or having held such office within
the last five years) holds a directorship.
Criterion 3
Significant business relationships
(see § 9.5.3 of the AFEP-
MEDEF Code)
No to be a costumer, supplier, commercial banker, investment
banker or consultant:
y
that is significant to the corporation or its group;
y
or for which the corporation or its group represents a sig-
nificant portion of its activity.
Criterion 4
Family ties
(see § 9.5.4 of the AFEP-MEDEF Code)
Not to be related by close family ties to a corporate officer.
Criterion 5
Statutory auditor
(see § 9.5.5 of the AFEP-MEDEF Code)
Has not been a Statutory Auditor of the Company in the last
five years.
Criterion 6
Period of office exceeding 12 years
(see § 9.5.6 of the AFEP-
MEDEF Code)
Not to have been a director of the corporation for more than
12 years. Loss of the status of independent director occurs on
the date of the 12
th
anniversary.
Criterion 7
Status of non-executive officer
(see § 9.6 of the AFEP-MEDEF
Code)
A non-executive officer cannot be considered independent if he
or she receives variable compensation in cash or in the form
of securities or any compensation linked to the performance of
the corporation group.
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Criterion 8
Status of major shareholder
Directors representing major shareholders in the Company or
its parent company may be deemed independents providing
that the shareholders do not participate in the control of the
Company. However, should the shareholder own more than 10%
of the capital or voting rights, the Board, based on a report by
the Appointments Committee, must systematically query the
Director’s independence, taking into account the Company’s
ownership structure and the existence of a potential conflict of
interest (see §9.7 of the AFEP-MEDEF Code).
Criterion 9
Discretion of the Board of Directors in determining
independence
The Board of Directors may take the view that a Director
who fulfils the aforementioned criteria should not be deemed
independent because of his or her particular situation or that
of the Company, given the Company’s ownership structure or
for any other reason. Conversely the Board may consider that
a Director although not satisfying the above criteria is however
independent (see §9.4, last paragraph of the AFEP-MEDEF
Code).
The situation of the two Independent Directors (Françoise
Gri et Catherine Pourre) was examined with respect to the
first criterion.
Françoise Gri et Catherine Pourre are Directors of Crédit Agricole
S.A.. The Appointments and Governance Committee and the Board
of Directors of Crédit Agricole CIB considered that this situation
reflected Crédit Agricole S.A.’s desire for the Chairwomen of its
Audit Committee and Risk Committee to play a special role vis-
à-vis its subsidiaries to ensure continuity in their mission and that
this situation was unlikely to jeopardise their independence.
The situation of the five female Independent Directors was
examined with regards to the third criterion.
The Appointments and Governance Committee and the Board
of Directors noted that the companies in which the five Directors
hold functions or corporate mandates, or with which they have a
business relationship, do not have any commercial dealings with
Crédit Agricole CIB, are not considered to be suppliers or significant
advisors of Crédit Agricole CIB, or that the commercial NBI realised
by Crédit Agricole CIB with these entities is insignificant and unlikely
to jeopardise their independence. This review was carried out for:
y
CVC Capital Partners, APRIL Group and ENCLAR Conseil
(Meritxell Maestre Cortadella),
y
Eurogroup Consulting (Anne-Laure Noat),
y
Edenred, WNS Services, Omnes Education and Française des
Jeux (Françoise Gri),
y
SEB, Bénéteau and Unibail Rodamco Westfield NV (Catherine
Pourre).
1.1.3. Diversity within the Board of Directors and the governing bodies
of Crédit Agricole CIB
DIVERSITY WITHIN THE BOARD OF DIRECTORS
Balanced representation of men and women on
the Board of Directors
Women
42.85%
Men
57.15%
At 31 December 2021, the Board of Directors had six female
members, i.e. 42.85% of the Directors appointed by the General
Meeting of Shareholders.
In accordance with Article 435[2 c] of EU Regulation No. 575/2013
and Article L. 511-99 of the French Monetary and Financial
Code, the Appointments and Governance Committee reviewed
the objective of a balance between the genders on the Board of
Directors, and the policy required to achieve it.
It is recalled that pursuant to Article L. 225-17 of the French
Commercial Code, there must be a balanced representation of
women and men on the Board of Directors. In accordance with
Article L. 225-18-1 of the French Commercial Code, this balanced
representation on the Board of Directors of Crédit Agricole CIB must
result in at least a 40% proportion for each sex.
The Appointments and Governance Committee also noted that the
proportion of women among the Directors appointed by the General
Meeting of Shareholders of Crédit Agricole CIB was 42.85%. Crédit
Agricole CIB has an objective of maintaining this ratio at 40%
minimum for each sex. The policy developed involves actively
seeking suitable high-quality candidates – both men and women
– in order to ensure that this ratio is respected if the members of
the Board of Directors changes, whilst ensuring complementarity
between the Directors’ careers, experiences and skills.
Diversity policy within the Board of Directors
In keeping with its Social Responsibility policy, Crédit Agricole CIB
aims to promote diversity at all levels, particularly among members
of its Board of Directors.
SELECTION OF CANDIDATES FOR
DIRECTORSHIPS
To this end, when considering new appointments, the Board of
Directors takes diversity into account to ensure a sufficient range
of qualities and skills allowing a variety of points of view relevant
to the decision-making process.
Priority is given to the candidate’s ability to maintain a
complementarity in career paths, experiences and skills within
the Board of Directors, in particular by taking into account their
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knowledge of the banking sector as defined by the guidelines of
the European Banking Authority on internal governance (EBA/
GL/2021/12 of 02/07/2021), and the European Central Bank Guide
dated May 2018 relative to the fit and proper evaluation, or any
other text which would replace or supplement them.
The Appointments and Governance Committee and the Board of
Directors have no policy concerning the age limit of the members
of the Board of Directors since priority is given to examining
their experience and competence. For this reason, the legal and
regulatory requirements naturally lead to the selection of candidates
with recognised skills and experience in accordance with the
applicable texts.
The search for Director candidates is carried out by gathering
suggestions from the members of the Board of Directors and the
Crédit Agricole Group.
This approach aims to ensure that the composition of the Board of
Directors reflects the shareholding structure of Crédit Agricole CIB,
which is 100% owned by Crédit Agricole Group companies, as
well as to attract Directors with diversified and complementary
profiles in terms of training, skills and professional experience
while respecting the legal minimum proportions in terms of gender
equality (40% representation for each sex) and the number of
Independent Directors (one third of board members) pursuant to
the AFEP-MEDEF Code.
DIRECTORS ELECTED BY EMPLOYEES AND
ADVISORY MEMBERS OF THE BOARD
The Board of Directors of Crédit Agricole CIB, in accordance
with the provisions of Articles L. 225-27 et seq. of the French
Commercial Code, must also include at least two directors elected
by employees and may appoint one or more non-voting advisory
members of the Board of Directors in accordance with Article 17 of
the articles of association (see Chapter 8 of the present Universal
Registration Document). These provisions help to enhance diversity
within the Board of Directors.
Jean-Guy Larrivière (management salaried employee body) and
Abdel-Liacem Louahchi (non-management salaried employee body)
were elected as Directors on 25 November 2020 to represent
employees in accordance with Articles L. 225-27 et seq. of the
French Commercial Code and Article 9 of the Company’s Articles
of Association (see Chapter 8 of the present Universal Registration
Document).
Émile Lafortune and Christian Rouchon were appointed as Advisory
members of the board by the Board of Directors, on 4 May 2020
and on 7 May 2019 respectively, for a period of three years each,
in accordance with the provisions of Article 17 of the Company’s
Articles of Association (see Chapter 8 of the Universal Registration
Document) to assist the development of Crédit Agricole CIB’s
relations with the Regional Banks, particularly with regard to the
monitoring of Mid-caps clients.
NATIONALITY OF DIRECTORS
Fifteen of Crédit Agricole CIB’s Directors are French nationals, and
one Director is an Andorran national, opening up internationally the
Board of Directors more international.
DIVERSITY WITHIN THE GOVERNING BODIES
Convinced that diversity is a powerful driver of performance and
innovation, Crédit Agricole CIB has for several years now been
following a proactive diversity policy so its corporate culture
becomes more inclusive.
To identify the main issues and measure the effectiveness of its
diversity policy, Crédit Agricole CIB regularly analyses its gender
distribution indicators within its management.
At 31 December 2021, women accounted for 43.6% of the
global workforce and 32.6% of Crédit Agricole CIB managers.
The Executive Committee and the Management Committee were
made up of 9.1% and 18.8% women respectively.
Moreover, in terms of gender diversity within the top 10% of
high-level positions of responsibility, the results show that the
feminisation of Circle 1, comprising 27 people, is 18.5%, and Circle
2, comprising 132 people, is 20.5%.
For several years, Crédit Agricole CIB has been rolling out an
action plan aimed at increasing the number of women sitting on
its management bodies:
y
The main areas of the professional gender equality agreement
renewed in France in 2021 for a period of 3 years are: to ensure
balanced job recruitment and equal pay, train employees in, and
raise their awareness of, the principles of professional equality
and non-discrimination, support all employees in the promotion
of their careers with particular attention paid to women, to con-
tinue to offer support for women on their return to work after
maternity leave and to promote paternity and childcare leave.
y
Crédit Agricole CIB supports its female talent, both in France
and abroad, through a range of leadership development pro-
grammes. The programmes’ objectives are to provide women
with the keys to strengthening their strategic positioning,
developing their networks and progressing within manage-
ment bodies.
y
In 2017, Crédit Agricole CIB also launched its "Corporate
Mentoring Programme" on a global scope, enabling Crédit
Agricole CIB’s talents to be supported by members of
the Executive Committees or Business Line and Country
Management Committees. This experience-sharing pro-
gramme’s aim is to promote greater diversity within the teams.
As such, since its launch, Crédit Agricole CIB has set itself
gender equality targets when selecting mentees, ensuring that
women represent more than 50% of the participants (to date,
99 employees have benefited from the Corporate Mentoring
Programme, or 54% of mentees). In addition, each year female
employees of Crédit Agricole CIB are selected to participate in
the Crédit Agricole Group’s mentoring programme.
y
Awareness-raising initiatives for all employees are also organised
as part of Diversity Month, and throughout the year with the
Diversity Academy. Crédit Agricole CIB’s teams work closely
with the “Potenti’elles” network and the diversity promotion
networks created at its various sites.
To supplement this action plan and build up a pool of women that
may then increase the number of women on the Management
Committee and the Executive Committee, Crédit Agricole CIB
has set itself the objective of increasing the proportion of women
within Circle 1 to 30% by 2024. To achieve this, Crédit Agricole
CIB is committed to:
y
Systematically including a woman in the candidates for man-
agement and Circle 1 or Circle 2 roles, it being specified that,
above, all, Crédit Agricole CIB looks for candidates with the
requisite experience and skills for the position to be filled.
y
Put in place succession plans for management and execu-
tive positions that incorporate diversity and equal opportunity
objectives.
y
Align all HR processes (recruitment, mobility, etc.) with these
objectives.
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In order to accelerate the feminisation and internationalisation of its
management bodies (EXCOM and MANCOM, Circles 1 and 2), in
2020, Crédit Agricole CIB conducted a global review of its strategic
talent pool allowing to enrich its succession plans. As a result of
a special focus on diversity criteria, particularly gender diversity,
40% of identified talents are women. In line with the objectives set
by Crédit Agricole S.A., Crédit Agricole CIB aims to achieve 50%
women and 40% foreign nationals in this pool by the end of 2022.
In addition, as the long-standing partners of the Financi’Elles
federation, Crédit Agricole S.A. and Crédit Agricole CIB reaffirmed
their commitment to introducing ambitious Human Resources
policies in the area of gender equality by signing, in November
2021, the Financi’Elles Charter of Commitments on 10-year
anniversary of the federation of the banking, finance and insurance
networks.
Finally, under the terms of Article L. 225-37-1 of the French
Commercial Code, the Board of Directors deliberates annually
on Crédit Agricole CIB’s policy in the area of equal pay and
opportunity and the implementation of the gender equality plan.
On this occasion, it reviews the results achieved, and particularly
the gender equality index. In France, Crédit Agricole CIB’s gender
equality index was 85 out of 100 in 2021.
1.1.4. Composition of the Executive Management and limitations on the Chief Executive
Officer’s powers
COMPOSITION OF THE EXECUTIVE MANAGEMENT
AT 31 DECEMBER 2021
Position
Appointment
End of
term
of office
Jacques
RIPOLL
Chief Executive
Officer
1 November 2018
Indefinite
Jean-François
BALAŸ
Deputy Chief
Executive Officer
1 January 2021
Indefinite
Olivier
BELORGEY
Deputy Chief
Executive Officer
1 January 2021
Indefinite
Pierre
GAY
Deputy Chief
Executive Officer
1 January 2021
Indefinite
The Chief Executive Officer and Deputy Chief Executive Officers are
also the effective senior corporate executives within the meaning of
the French Monetary and Financial code and the regulation which
apply to credit institutions.
LIMITATIONS ON THE POWERS OF THE CHIEF
EXECUTIVE OFFICER
The limitations on the Chief Executive Officer’s powers are specified
below, as well as in the presentation of the powers of the Board
of Directors in Section 1.2.2 "Powers of the Board of Directors".
The rules of procedure of the Board of Directors stipulate that, in
the performance of his duties, the Chief Executive Officer is required
to comply with the internal control rules that apply within the Crédit
Agricole Group and the strategies defined and decisions, which
under the law or according to the aforementioned rules are the
responsibility of the Board of Directors or the General Meeting.
These rules of procedure also stipulate that the Chief Executive
Officer is required to refer all significant projects concerning Crédit
Agricole CIB’s strategic decisions, or that may affect or alter its
financial structure or scope of activity, to the Board of Directors,
requesting instructions. In addition, as mentioned in Section 1.2.2
"Powers of the Board of Directors", as a purely internal limitation
that is not binding on third parties, the Chief Executive Officer is
required to obtain prior authorisation from the Board of Directors
or its Chairman before entering into certain types of transactions.
1.2. FUNCTIONING, PREPARATION CONDITIONS AND ORGANISATION OF THE WORK
OF THE BOARD OF DIRECTORS
The functioning, preparation conditions and organisation of the work of the Board of Directors comply with the laws and
regulations currently in force, Crédit Agricole CIB’s Articles of Association (see Chapter 8 of the present Universal Registration
Document), the rules of procedure applicable to the Board of Directors and internal governance directives.
1.2.1. Meetings of the Board of Directors
MEETINGS FREQUENCY
The Articles of Association (see Chapter 8 of the present Universal
Registration Document) state that the Board of Directors shall
meet as often as the interests of Crédit Agricole CIB require, at
the request of the Chairman or at least one third of the Directors.
TELECOMMUNICATION METHODS
The Board’s rules of procedure state that, unless otherwise decided
by the Chairman, the Board of Directors may hold its meeting using
telecommunication methods that allow for the identification of
Directors and ensure their full participation (Article 11 of the Articles
of Association – see Chapter 8 of the present Universal Registration
Document) provided that, as required by law, the proceedings do
not concern the preparation and approval of the annual separate
and consolidated financial statements or the management reports.
1.2.2. Powers of the Board of Directors
The powers of the Board of Directors are listed in Article L. 225-35
of the French Commercial Code and are detailed in the Board of
Directors’ rules of procedure.
Within the framework of the mission entrusted to it by law and
by banking regulations, and in view of the powers vested in the
Executive Management, the Board of Directors:
y
defines Crédit Agricole CIB’s strategy and general policies.
y
approves, as necessary and as proposed by the Chief
Executive Officer and/or the Deputy Chief Executive Officers,
the resources, structures and plans allocated for the imple-
mentation of the general strategies and policies it has defined.
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y
rules on all the questions connected with Crédit Agricole CIB’s
administration submitted to it by the Chairman and the Chief
Executive and by its Specialised Committees or on any other
question which is submitted to it.
In addition to the aforementioned powers and those conferred
upon it by law and the rules of procedure, the Board of Directors
decides on the following on the proposal of the Chief Executive
Officer and/or the Deputy Chief Executive Officers:
y
all external growth and downsizing operations for Crédit Agricole
CIB by way of:
-
the creation, acquisition or disposal of any subsidiaries or equity
investments (excluding entities created for one or more specific
transactions);
-
the opening or closure of any branch abroad;
-
the acquisition, disposal, exchange or integration of new busi-
nesses or parts of businesses ;
likely to lead to an investment or disposal that may amount to
more than €50 million;
y
the provision of collateral to guarantee Crédit Agricole CIB’s
commitments (except for financial market transactions), when
such collateral relates to Crédit Agricole CIB’s assets with a
value of more than €50 million.
y
the purchase or sale of real estate made in the name or on
behalf of Crédit Agricole CIB, when the amounts of these
transactions exceed €30 million;
y
also has specific powers regarding other legal and regulatory
provisions applicable to credit institutions and companies whose
securities are traded in a regulated market in terms of corporate
governance, compliance, risk management and internal control.
1.2.3. Referral procedure, information
procedure and terms of the Board’s
intervention – Conflicts of Interest
CONDITIONS OF INTERVENTION OF, AND
THE MEANS OF REFERRAL TO THE BOARD OF
DIRECTORS
In order to enable the Secretary of the Board of Directors to prepare
for Board meetings, an internal Crédit Agricole CIB governance
document sets out the conditions of intervention of, and the
means of referral to the Board of Directors. This document notably
stipulates the conditions under which the head office or branch
departments must inform the Secretary, within the scope of the
schedule for the Board of Directors’ meetings, of the points which
are liable to be added to the draft agenda for each meeting as well
as the information documents. The draft agenda is then sent for
approval to the Chairman of the Board of Directors.
CORPORATE GOVERNANCE PRINCIPLES AND
BEST PRACTICES
The Board of Directors’ rules of procedure specify the roles of the
Board of Directors’ Committees. They also contain a reminder of
the principles and best practices for corporate governance that
help to raise the quality of the work undertaken by the Board of
Directors, including the provision of the information necessary for
the Directors to usefully contribute to the issues entered into the
agenda, the obligations of confidentiality, and the obligations and
recommendations regarding privileged information and conflicts of
interest, the details of which are restated in Section 1.3.3 “Ethics,
conflicts of interest and privileged information”.
PROCEDURE ON RELATED-PARTY AGREEMENTS
The Board of Directors, in accordance with Articles L. 225-38 et
seq. of the French Commercial Code, authorises related-party
agreements prior to their signature. The Directors and Managers
directly or indirectly involved in the agreement do not take part in
the deliberations and the voting.
Information relating to the agreements for the 2021 financial year
(new agreements, concluded and authorised, as well as those
entered into previously which continued in 2021) is sent to the
Statutory Auditors, who will present their special report to the
General Meeting of Shareholders (see section 3 of Chapter 7
"Parent company financial statements at 31 December 2021").
At its meeting held on 8 February 2022, the Board reviewed the
related-party agreements previously entered into and approved and
still in force in 2021, in accordance with the provisions of Article
L. 225-40-1 of the French Commercial Code.
1.2.4. Activities of the Board of Directors in
2021
NUMBER OF MEETINGS OF THE BOARD OF
DIRECTORS
The Board of Directors met six times during the 2021 financial year.
PROCEDURES FOR MEETINGS OF THE BOARD OF
DIRECTORS
In accordance with Crédit Agricole CIB’s Articles of Association,
the Board of Directors’ rules of procedure and Order No. 2020-
321 of 25 March 2020 as amended and extended, the Board
of Directors met face-to-face or remotely several times in 2021
using telecommunication methods, allowing Directors to continue
performing their duties despite the public health restrictions related
to the Covid-19 pandemic.
PRIOR TRANSMISSION OF DOCUMENTS TO THE
BOARD OF DIRECTORS
For almost all the items on the agenda of Board meetings,
supporting documentation is broadcasted several days before
the meeting.
PRINCIPAL MATTERS EXAMINED DURING BOARD
MEETINGS, FOLLOWING ANY NECESSARY INITIAL
ANALYSIS BY THE SPECIALISED COMMITTEES,
WERE AS FOLLOWS:
Concerning business and strategy
The Board of Directors was given a quarterly presentation on
Crédit Agricole CIB’s commercial activity, and a presentation on
the 2022 budget.
Besides, a Seminar on the Bank’s activity and strategy was also
held on September 2021.
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Concerning the financial statements, the financial
position and the dealings with the statutory
auditors
In accordance with regulatory requirements, the Board of Directors
approved the corporate and consolidated financial statements for
the 2020 financial year and examined the half-yearly and quarterly
results during 2021. The Chairwoman of the Audit Committee
presented a report on the work of the Audit Committee each time
the Board of Directors examined these financial statements, and
the Statutory Auditors informed the Board of their observations.
Concerning risks and internal control
After hearing the Risk Committee, the Board of Directors examined
the following on a quarterly basis:
y
the position of Crédit Agricole CIB with regard to the different
risks to which it is exposed (market risks, counterparty risks,
operational risks, cost of risk and provisions, broken down by
country and by segment) and with regard to the previously
approved risk appetite;
y
the position of Crédit Agricole CIB in terms of compliance with
regular updates on the implementation of the OFAC remedia-
tion plan following the commitments given to US authorities;
y
the position regarding liquidity.
Half-yearly updates were also presented to the Board of Directors:
y
on periodic control missions (Control and Audit);
y
on the report on internal control (annual report and half-year
information, RACI).
The following were also presented to the Board of Directors:
y
the annual report by the Chief Compliance Officer on Investment
Services (RCSI);
y
the 2022 audit plan;
y
the communications from the supervisory authorities, the
answers provided and the actions implemented to address
the observations made.
The Board of Directors also approved:
y
updates to the risk appetite and the related statement;
y
the liquidity risk management and control system and the pro-
cedures, systems and tools for measuring this risk as well as
the emergency liquidity plan;
y
the list of major risks and the stress tests programme;
y
on a quarterly basis, Crédit Agricole CIB’s risk strategies
approved by the Strategy and Portfolio Committee (CSP) and
the Group Risk Committee (CRG);
y
a review of the criteria and thresholds used to define significant
incidents detected by the internal control procedures which
remain unchanged compared to last year;
y
the statement on the adequacy of the risk control mechanism
and the quality of the information given to the Board;
y
the ICAAP and ILAAP statements;
y
the declaration of the fight against modern slavery as part of
the Modern Slavery Act 2015;
y
internal control reports (corporate and consolidated) dedicated
to the fight against money laundering and the financing of
terrorism.
Concerning governance, compensation and
human resources
After hearing the Appointments and Governance Committee, the
Board of Directors then:
y
reviewed its composition as well as that of the Specialised
Committees;
y
put forward the appointments of new members of the Board
of Directors and the renewal of various others at the General
Meeting;
y
reviewed the qualification of Independent Directors within the
scope of the criteria in the AFEP-MEDEF Code;
y
carried out a collective and individual self-assessment of the
Board of Directors;
y
reviewed the independence, potential conflicts of interest, rep-
utation and good integrity of the directors;
y
acknowledged the policy adopted by the Appointments and
Governance Committee in terms of the balanced representation
of men and women within its membership;
y
approved a diversity policy for the Board of Directors;
y
reviewed the Board's Rules of Procedure to consider the reg-
ulatory change relating to the role granted at the Board about
climate and environmental risks, and IT risk.
After hearing the Compensation Committee, the Board of Directors
then:
y
approved the budget for the variable compensation of the
employees;
y
approved Crédit Agricole CIB’s compensation policy;
y
examined the report required by the French Prudential
Supervision Authority presenting information regarding Crédit
Agricole CIB’s compensation policy and practices;
y
acknowledged the social audit and the international workforce
statistics;
y
reviewed the methodology for determining identified staff;
y
discussed Crédit Agricole CIB’s policies on gender equality
and equal pay.
The Board of Directors approved the terms of the Corporate
Governance report, the terms of the management report, approved
the agenda and the resolutions of the Annual Ordinary General
Meeting and the terms of its report to this General Meeting.
It regularly reviewed the list of people authorised for bond issues
and approved the arrangements for the training of the Directors
elected by employees.
Concerning related-party agreements
In accordance with the provisions of Article L. 225-38 of the French
Commercial Code, the Board of Directors authorised the following
related-party agreements:
y
Letters of guarantee for three new directors;
y
Agreement on the payment by Crédit Agricole CIB of CA
Indosuez’s corporate income tax liability on the foreign exchange
differences relating to equity investments in CHF received as
part of the merger by absorption of CA Indosuez Wealth (Group)
carried out by CA Indosuez on 1 July 2021.
Detailed information about regulated agreements is presented by
the Statutory Auditors in their special report in Chapter 8 of the
present Universal Registration Document.
In accordance with the provisions of Article L. 225-40-1 of the
French Commercial Code, the Board of Directors re-examined the
agreements entered into and authorised during previous financial
years that continued to be executed in the course of the financial
year 2021.
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1.2.5. Assessment of the expertise and
functioning of the Board of Directors
ASSESSMENT OF THE COLLECTIVE AND
INDIVIDUAL EXPERTISE OF THE DIRECTORS -
ARTICLE L.511-98 OF THE FRENCH MONETARY
AND FINANCIAL CODE
The Appointments and Governance Committee carried out an
assessment of the collective and individual expertise of Directors
based on a self-assessment undertaken in the fourth quarter
of
2021. In this regard, the directors were asked to assess
themselves in fifteen areas of expertise: financial markets, legal and
regulatory requirements, banking activities, strategic planning, risk
management, internal audit, financial accounting, bank governance,
the interpretation of financial information, information technology
and security, corporate management, experience abroad, corporate
social responsibility, climate and environmental risks, human
resources/compensations.
The conclusions of this assessment, which were presented to the
Board of Directors, reveal that all areas of expertise, both banking
and non-banking, are covered.
The Board of Directors has significant expertise in the following
areas: Human resources/Compensation, Corporate social
responsibility, Corporate Management, Interpretation of financial
information, Bank Governance, Internal Audit, Risk Management,
Strategic Planning, Banking Activity, Legal and Regulatory
Framework, Financial Markets. By way of example:
y
13 Directors consider that they have significant expertise in the
areas of “Legal and Regulatory Framework” and “Knowledge
of Crédit Agricole CIB”;
y
11 Directors consider that they have significant expertise in
the areas of “Financial Markets” and “Human Resources/
Compensation”;
y
10 Directors consider that they have significant expertise in the
areas of “Risk Management”, “Governance” and “Interpretation
of Financial Information”.
Directors were also invited to provide their opinion on various
issues, such as their understanding of Crédit Agricole CIB’s
business lines and challenges, potential conflicts of interest, training
requirements, their preparation for Board meetings, or the existence
of any ongoing proceedings or judicial, administrative or disciplinary
decisions that could call their integrity into question.
The directors did not declare any actual conflicts of interest and no
proceedings or decisions that might result in reputational risk. They
all considered that they arrived well prepared for Board meetings.
ASSESSMENT OF THE FUNCTIONING OF THE
BOARD OF DIRECTORS - §10 OF THE AFEP-
MEDEF CODE
A self-assessment of the performance of the Board of Directors
was conducted during 2021, based on a collective questionnaire
consisting of 74 questions accessible for the first time electronically
by Board members. The questions concerned the organisation of
the Board of Directors, its operation, its composition and the quality
of relationships within it, the work of the various Committees of
the Board of Directors, and the training and information provided
for the Directors. The self-assessment was administered by the
Appointments and Governance Committee and presented to the
Board.
The results obtained in 2021 were satisfactory and stable overall
compared to those obtained in 2020.
Transparency of information is recognised together with the
completeness and density of the information transmitted.
As a result of the new questions that were asked, this self-
assessment represented an opportunity for directors to share
their expectations and proposals on improving the functioning
of the Board of Directors and the quality of the discussions.
Their feedback revealed some areas that required improvement.
Accordingly, the Appointments and Governance Committee and
the Board of Directors noted:
y
a shared desire to open up the agenda of Board meetings to
strategic issues, information on current projects or the com-
petitive environment,
y
converging expectations on the conduct of Board meetings
to encourage discussions,
y
a broadly shared view that remote meetings held as a result
of the health crisis (Covid-19) were not always conducive to
fruitful discussions.
1.2.6. Training of directors
TRAINING OF NEW DIRECTORS
A procedure established in 2013 to welcome new Directors
consists of a welcome booklet, which includes the main documents
covering the governance and social bodies of Crédit Agricole CIB,
its strategy and its budget, the Universal Registration Document
and the activity report of the previous year.
When a new Director first joins the Board, meetings can also be
organised between the new Director and Executive Management
members, the Head of Risks and Permanent Control, the Chief
Financial Officer, the Chief Compliance Officer and the Head of
Internal Audit.
In addition, newly appointed Directors benefit from training
organised by the Crédit Agricole S.A. Group on governance and
compliance issues.
TRAINING PROVIDED TO ALL DIRECTORS
In addition to the programme established for new Directors, training
measures for all Directors continued during the 2021 financial year.
A seminar for Directors, held in September 2021, provided an
opportunity to gain a better understanding of the expectations
of Crédit Agricole CIB’s clients by meeting a client and improving
their knowledge of Crédit Agricole CIB’s activities and strategy.
A technical training session on CSR/Sustainable Finance and
Compliance was held on 2 November 2021.
Directors also benefit from permanent access to an e-learning
programme offering various courses on the theme of compliance.
If judged opportune, a Director can receive individual training
especially on taking up new functions on the Board of Directors
or its Committees.
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TRAINING FOR DIRECTORS ELECTED BY
EMPLOYEES
In accordance with the provisions of Articles L. 225-30-2 and R.
225-34-3 of the French Commercial Code, the Board of Directors,
determined the training to be followed by the employee directors
in 2021 and additional training courses were offered.
1.2.7. Specialised Committees of the Board
of Directors
Audit Committee
Catherine POURRE
Chairwoman
Claire DORLAND CLAUZEL
Olivier GAVALDA
Guy GUILAUMÉ
Meritxell MAESTRE CORTADELLA
Anne-Laure NOAT
Appointments
and Governance
Committee
Claire DORLAND CLAUZEL
Chairwoman
Luc JEANNEAU
Meritxell MAESTRE CORTADELLA
Compensation
Committee
Anne-Laure NOAT
Chairwoman
Claire DORLAND CLAUZEL
Luc JEANNEAU
Jean-Guy LARRIVIÈRE
Risks
Committee
Anne-Laure NOAT
Chairwoman
Paul CARITE
Françoise GRI
Meritxell MAESTRE CORTADELLA
Catherine POURRE
Odet TRIQUET
Board
of Directors
There are four Specialised Committees of the Board of Directors:
Audit Committee, Risk Committee, Appointments and Governance
Committee and Compensation Committee.
The members of these Committees are appointed by the Board of
Directors in accordance with its rules of procedure.
The Specialised Committees:
y
assist the Board of Directors in its duties and in preparing for
discussions. They may, for example, conduct studies or submit
opinions or recommendations to the Board;
y
interact where appropriate to ensure consistency in their work.
Each Committee reports on its work to the Board of Directors
so that members can be fully informed when participating in
discussions;
y
carry out the missions that are assigned by the law and the
regulations in force, as well as by the rules of procedure of
the Board of Directors;
y
meet periodically and as necessary, in order to review any
subject within their remit;
y
in carrying out their mission, may request access to all the
information they deem relevant;
y
base their work mainly on the summary information provided
by the departments and on the interviews or meetings that they
hold with Company people deemed useful for the performance
of their missions; if they so wish, these interviews or meetings
can be held without the presence of the Executive Management;
y
after informing the Chairman of the Board of Directors, and in
order to report to the Board of Directors, they can have any
studies required to assist the Board’s deliberations drawn up
at Crédit Agricole CIB’s costs, after verifying the objectivity of
the expert selected.
AUDIT COMMITTEE
6
Number
of directors
66.66
%
Independent Board
members’ rate
67
%
of women
7
Number of meetings
in 2021
97.22
%
Average attendance rate
in 2021
RISKS COMMITTEE
6
Number
of directors
66.66
%
Independent Board
members’ rate
67
%
of women
7
Number of meetings
in 2021
95.23
%
Average attendance rate
in 2021
APPOINTMENTS AND GOVERNANCE
COMMITTEE
3
Number
of directors
66.66
%
Independent Board
members’ rate
67
%
of women
6
Number of meetings
in 2021
83.33
%
Average attendance rate
in 2021
COMPENSATION COMMITTEE
4
Number
of directors
66.66
%
Independent Board
members’ rate
1
50
%
of women
3
Number of meetings
in 2021
100
%
Average attendance rate
in 2021
1
Computation excluding employee directors in accordance wit AFEP-MEDEF Code
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AUDIT COMMITTEE
Composition of the Audit Committee at
31 December 2021
The rules of procedure of the Board of Directors stipulate that the
Audit Committee is composed of at least four Directors.
In accordance with the AFEP-MEDEF Code (§16.1), Independent
Directors account for two-thirds of members.
Short biographies of members of this Committee are available in
Section 1.3 "Other information about the corporate officers" of
this report.
MEMBERS OF THE AUDIT COMMITTEE AT
31 DECEMBER 2021
Catherine POURRE
Independent
Director
Chairwoman of
the Committee
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 4 May 2017
Appointed Chairwoman of the
Audit Committee by the Board
of Directors at its meeting held
on 4 May 2020
Claire DORLAND
CLAUZEL
Independent
Director
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 9 May 2016
Olivier GAVALDA
Director
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 7 May 2019
Guy GUILAUMÉ
Director
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 3 May 2021
Meritxell MAESTRE
CORTADELLA
Independent
Director
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 4 May 2020
Anne-Laure NOAT
Independent
Director
Appointed a member of the
Audit Committee by the Board
of Directors at its meeting held
on 30 April 2015
Missions of the Audit Committee
The Committee meets as and when necessary and at least
quarterly.
It liaises with the Statutory Auditors as often as required, and for
the preparation of the interim and annual financial statements.
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 1.2.2.4
“The Committee’s primary purpose is to monitor management
issues related to the development and review of the corporate
and consolidated financial statements, the effectiveness of the
internal control and risk management systems with respect to
the procedures in the preparation and treatment of accounting
and financial information, monitoring the work of the Statutory
Auditors on these issues and their independence.
Without prejudice to the powers of the Board of Directors, its
powers are in particular:
To monitor the process of compiling financial information:
It monitors the process for preparing the financial informa-
tion and if necessary, makes recommendations to guarantee
the integrity of this information. It checks the relevance and
performance of the accounting principles adopted by the
Company to prepare the parent company’s financial state-
ments and the consolidated financial statements.
To review the corporate and consolidated financial statements
It examines the draft corporate and consolidated annual, half-
yearly, and quarterly financial statements, before submisision
to the Board of Directors.
To review and monitor the effectiveness of the internal control
and risk management systems relating to financial and
accounting information
It examines and monitors, without its independence being
impaired, the effectiveness of the internal control and risk
management systems, regarding the procedures related to
the preparation and treatment of accounting and financial
information. In this, it makes an assessment of the quality
of the internal control, proposes complementary actions if
and as necessary, monitors the work of the teams who are
responsible for internal control, including internal audit.
To monitor the independence and objectivity of the Statutory
Auditors - Approves the provision by the Statutory Auditors of
the services mentioned in Article L. 822-11-2 of the French
Commercial Code
In accordance with the legal provisions and regulations
applicable:
•
It conducts the selection procedure when appointing the
Statutory Auditors and makes a recommendation for the
attention of the Board of Directors on their renewal or
appointment.
•
It ensures compliance by the Statutory Auditors on the
conditions of independence defined by the French
Commercial Code and tracks all related issues. Where
applicable, in consultation with the former, it determines
measures to preserve their independence.
•
It approves the provision by the Statutory Auditors of the
services mentioned in Article L. 822-11-2 of the French
Commercial Code.
To monitor the fulfilment of the Statutory Auditors’ mission:
•
It monitors how the Statutory Auditors perform their mission,
and in particular examines their work programme, findings
and recommendations. It receives their additional annual
report on the results of the statutory audit of the financial
statements.
•
It takes account of the findings and conclusions of
the Statutory Auditors Audit Council (Haut conseil du
Commissariat aux Comptes) if controls are carried out in
accordance with the provisions of the French Commercial
Code.
The Committee can make any recommendation concerning its
missions and powers.
It may review all questions particularly of an accounting or
financial nature that are submitted to it by the Chairman of the
Board of Directors or Chief Executive Officer.
It regularly reports to the Board of Directors on the performance
of its missions and the results of the audit of the financial state-
ments, the way in which such mission contributed to the integrity
of the financial information and the role it played in such process.
It immediately informs the Board of Directors of any difficulties
encountered.”
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Activities of the Audit Committee during 2021
The Audit Committee met seven times during 2021, including three
joint sessions with the Risk Committee.
Each Committee meeting was systematically preceded by
conference calls with the Finance Department and the Risk
Department, as well as a conference call with the Statutory
Auditors. Certain situations relating to the financial statements
or the missions of the Statutory Auditors were able to be clarified
during telephone discussions with the Statutory Auditors or the
Finance Department.
During these meetings, the Committee examined:
y
the quarterly, half-yearly and yearly corporate and consolidated
financial statements;
y
the work of the Statutory Auditors as well as the missions
“outside financial audit” they performed;
y
the 2021 and 2022 budgets;
y
the information published in the Universal Registration
Document;
y
the documents and information expected by the Committee in
accordance with Article 241 of the Decree of 3 November 2014
on internal control.
The minutes of each of these meetings were submitted to the
Board of Directors.
The attendance rate of Audit Committee members was 97.22%
in 2021.
Attendance rate of Audit Committee members
Number of Audit Committee meetings
that each member should have
attended in 2021
Number of Audit Committee
meetings attended by each
member in 2021
Attendance
rate
Jacques BOYER
2
3
3
100.00%
Claire DORLAND CLAUZEL
7
6
83.33%
Olivier GAVALDA
7
7
100.00%
Guy GUILAUME
1
4
4
100.00%
Meritxell MAESTRE CORTADELLA
7
7
100.00%
Anne-Laure NOAT
7
7
100.00%
Catherine POURRE
7
7
100.00%
1
Guy Guilaumé was appointed a member of the Audit Committee by the Board of Directors on 3 May 2021.
2
Jacques Boyer was not reappointed as a Director at the Ordinary General Meeting held on 3 May 2021.
RISK COMMITTEE
Composition of the Risk Committee
at 31 December 2021
The rules of procedure of the Board of Directors stipulate that the
Risk Committee must be composed of at least four Directors.
Short biographies of members of this Committee are available in
Section 1.3 "Other information about the corporate officers" of
this report.
MEMBERS OF THE RISK COMMITTEE
AT 31DECEMBER 2021
Anne-Laure NOAT
Independent
Director
Chairwoman of
the Committee
Appointed a member of the
Risk Committee by the Board
of Directors on 13 October
2015
Appointed Chairwoman of the
Risk Committee by the Board
of Directors on 4 May 2020
Paul CARITE
Director
Appointed a member of the
Risk Committee by the Board
of Directors on 7 May 2019
Françoise GRI
Independent
Director
Appointed a member of the
Risk Committee by the Board
of Directors on 4 May 2017
Meritxell MAESTRE
CORTADELLA
Independent
Director
Appointed a member of the
Risk Committee by the Board
of Directors on 4 May 2020
Catherine POURRE
Independent
Director
Appointed a member of the
Risk Committee by the Board
of Directors on 4 May 2017
Odet TRIQUET
Director
Appointed a member of the
Risk Committee by the Board
of Directors on 3 May 2021
Missions of the Risk Committee
The Risk Committee meets whenever necessary, and at least
once a quarter. It is fully informed about Crédit Agricole CIB’s
risks. If necessary, it may call on the services of the Head of Risk
Management or external experts.
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 1.2.2.3
“The main missions of the Risk Committee are the following:
To advise the Board of Directors on the overall strategy of the
Bank and on risk appetite and to assist it with the implementation
of the strategy by the Executive Managers and the Head of
Risk Management:
•
to examine and review regularly the strategies and policies
governing decision-making, management, monitoring, and
reduction of the risks to which the Company is or could
be exposed,
•
to review the way in which climate and environmental risks
are integrated into the overall operational strategy, into
risk strategies and policies, into the risk management and
monitoring system and into the Company’s risk appetite, and
to make any recommendations to the Board of Directors,
•
to review and monitor the risk management policy,
procedures and systems in force within the Bank and its
consolidated group,
•
to assess the consistency of measurement, monitoring and
risk management systems, and propose related actions,
as necessary,
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•
to monitor any incident, whether fraudulent or not, revealed
by the internal control procedures, according to the criteria
and significance thresholds set by the Board of Directors
or which presents a major risk to the Bank’s reputation.
The Chairman of the Committee must be informed of any
incident, whether fraudulent or not, revealed by the internal
control procedures, which exceeds an amount set by the
Board of Directors or which presents a major risk to the
Bank’s reputation;
To assist the Board of Directors with the IT strategy and
information systems security policy in order to comply with the
business strategy, and to ensure that the resources allocated to
the management of IT operations, information system security
and business continuity are sufficient for the Company to carry
out its duties;
To consider whether the prices of the products and services
offered to clients are in line with the risk strategy and, if this is
not the case, to submit an action plan to the Board of Directors
to remedy the situation;
Without prejudice to the responsibilities of the Compensation
Committee, to examine whether the incentives offered by the
Company’s compensation policy and practices are compatible
with its situation with regard to the risks it is exposed to,
its capital, its liquidity and the probability and timing of the
implementation of the benefits expected;
To review the effectiveness of internal control systems, excluding
the financial reporting and accounting information process
covered by the Audit Committee:
•
it examines the internal control system implemented within
the Company and its consolidated group;
•
it assesses the quality of internal control and proposes, as
necessary, complementary actions;
•
it monitors the work of the Statutory Auditors on the
Company’s financial statements and of the internal audit
teams.
To examine issues relating to liquidity risk and solvency;
To examine issues relating to disputes and provisions.”
Activities of the Risk Committee in 2021
The Risk Committee met seven times during 2021, including three
joint sessions with the Audit Committee.
During these meetings, the Committee examined:
y
the risk position (quarterly review);
y
liquidity (quarterly review);
y
the emergency plan and the liquidity monitoring mechanism;
y
Crédit Agricole CIB’s risk appetite;
y
risk strategies (quarterly review);
y
compliance reviews, including implementation of the OFAC
remediation plan (quarterly review);
y
the periodic control missions, including the 2022 audit plan;
y
internal control review (half-yearly review);
y
a summary of the work on the harmonised ICAAP and ILAAP
and related declarations;
y
the summary risk appetite statement;
y
the declaration on the suitability of the risk management mech-
anisms implemented.
In the course of preparing the work of the Risk Committees, several
meetings were held:
y
a preparatory meeting before each Risk Committee meeting
with the Head of Risk & Permanent Control and the introduction
of a mid-quarter review;
y
an ad hoc operational risk meeting with the Head of Risk
& Permanent Control and the Head of Operational Risk
Management;
y
a meeting with the Internal Audit Department on the preparation
of the 2022 audit plan;
y
a meeting with Crédit Agricole CIB’s Executive Management
team.
The minutes of each of these meetings were submitted to the
Board of Directors.
The attendance rate of the Risk Committee members in 2021
was 95.23%.
Attendance rate of the members comprising the Risk Committee
Number of Risk Committee meetings
attended by each member in 2021
Number of Risk Committee
meetings that each member
should have attended in 2021
Attendance
rate
Paul CARITE
7
7
100.00%
Françoise GRI
7
7
100.00%
Meritxell MAESTRE CORTADELLA
7
7
100.00%
Anne-Laure NOAT
7
7
100.00%
Catherine POURRE
7
7
100.00%
François THIBAULT
2
3
2
66.66%
Odet TRIQUET
1
4
4
100.00%
1
Odet Triquet was appointed a member of the Risk Committee by the Board of Directors on 3 May 2021.
2
François Thibault was not reappointed as a Director at the Ordinary General Meeting held on 3 May 2021.
During their joint sessions, the Audit Committee and the Risk
Committee also examined:
y
the 2020 annual report on internal control (RACI) and the 2021
half-year information on internal control (ISCI);
y
the 2021 stress-tests programme and the list of major risks;
y
the criteria and thresholds applicable to significant incidents;
y
the regulatory provisions relative to ILAAP and ICAAP and
risk appetite;
y
the 2022 budget;
y
the risk appetite statement;
y
internal control reports (corporate and consolidated) dedicated
to the fight against money laundering and the financing of
terrorism;
y
a Gap Analysis in term of the expectations of the ECB's guide
on climate and environmental risks and consecutive measures.
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APPOINTMENTS AND GOVERNANCE COMMITTEE
Composition of the Appointments and
Governance Committee at 31 December 2021
The Appointments and Governance Committee is composed of
at least two Directors.
Short biographies of members of this Committee are available in
Section 1.3 "Other information about the corporate officers" of
this report.
The Chief Executive Officer is invited to meetings of this Committee.
Several preparatory meetings were held with the Chairwoman
of the Committee and the Secretariat of the Board of Directors.
The Appointments and Governance Committee has a majority of
Independent Directors in accordance with the provisions of the
AFEP-MEDEF Code (§17.1).
MEMBERS OF THE APPOINTMENTS AND
GOVERNANCE COMMITTEE AT 31 DECEMBER
2021
Claire DORLAND
CLAUZEL
Independent
Director
Chairwoman of
the Committee
Appointed a member of
the Appointments and
Governance Committee by
the Board of Directors on
9 May 2016
Appointed a member of
the Appointments and
Governance Committee by
the Board of Directors on
4 May 2017
Luc JEANNEAU
Director
Appointed a member of
the Appointments and
Governance Committee by
the Board of Directors on
4 May 2018
Meritxell MAESTRE
CORTADELLA
Independent
Director
Appointed a member of
the Appointments and
Governance Committee by
the Board of Directors on
4 May 2020
Duties of the Appointments and Governance
Committee
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 1.2.2.1
“The main missions of the Appointments Committee are:
•
to assist the Board on matters relating to corporate
governance in order to maintain a high level of requirements
in this area,
•
to identify and recommend suitable candidates, as Directors
or Advisory members of the board, to the Board of Directors,
•
to recommend to the Board of Directors candidates for the
position of Chairman of the Board,
•
to assess once a year the balance, diversity of knowledge,
skills and experiences that the Directors possess individually
and collectively and when recommendations are made to the
Board for the appointment or reappointment of Directors,
•
to define the qualifications needed to serve on the Board
and estimate how much time should be set aside for the
associated duties,
•
to assist the Board with regard the strategies and objectives
applicable to Directors,
•
to set a diversity target for the Board and develop a diversity
policy. This objective, the policy and the means implemented
are made public,
•
to evaluate the structure, size, composition and effectiveness
of the Board of Directors at least once a year,
•
to review periodically and make recommendations regarding
the policies of the Board of Directors for selection and
appointment of Executive Directors of the Company and
other members of the Executive Management, as well as
the Head of the Risk Management function,
•
to ensure that the Board of Directors is not dominated by
one person or by a small group of people in conditions that
could be detrimental to the Bank’s interests,
•
to first review the proposed appointment made by General
Executive, the Head of Compliance, the Head of the Risk
Management function and the Head of the Internal Audit
function, which is then forwarded to the Board of Directors
for its opinion,
•
to be notified in advance, together with the Board of
Directors, when the Head of the Compliance Function, the
Head of the Risk Management Function or the Head of
the Internal Audit function is removed from office, it being
specified that the Head of the Risk Management Function
may not be removed from office without the prior consent
of the Board.”
Actions of the Appointments and Governance
Committee during 2021
The Appointments and Governance Committee met six times
during 2021.
At its meetings, the Committee:
y
reviewed applications and reappointments of directors in antic-
ipation of the General Meeting being called;
y
determined the objective and policy in terms of balanced rep-
resentation of men and women on the Board of Directors as
well as diversity;
y
reviewed the qualifications of Independent Directors and
changes in the composition of the Board of Directors and
its Committees;
y
examined the updates to the Articles of Association and to the
rules of procedure of the Board of Directors;
y
examined the Directors’ training programme for 2021, the pro-
posed training courses for employed Directors and the annual
seminar programme;
y
organised the self-assessment of the functioning of the Board
of Directors for 2021, and the self-assessment of the indi-
vidual and collective expertise of Directors, conflicts of interest
and reputation. It analysed and summarised the results of the
self-assessments in order to determine the actions to be taken;
y
conducted an annual assessment of the time spent by each
Director on the performance of their duties;
y
checked, in accordance with Article L. 511-101 of the French
Monetary and Financial Code, that the Board of Directors was
not dominated by one person or by a group of people in condi-
tions that could be detrimental to Crédit Agricole CIB’s interests.
The minutes of each of these meetings were submitted to the
Board of Directors.
The attendance rate of the members of the Appointments and
Governance Committee in 2021 was 83.33%.
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Attendance rate of the members of the Appointments and Governance Committee
(1) An overall monitoring of the compensation policy applicable across all Crédit Agricole Group S.A. entities is carried out within Crédit Agricole S.A. This monitoring is presented to
the Board of Directors of Crédit Agricole S.A. and includes proposals for the principles used to determine the amounts of variable compensation, the examination of the impact of the
risks and the capital requirements inherent to the activities concerned, as well as an annual review, by the Compensation Committee of the Crédit Agricole S.A. Board of Directors, of
compliance with regulatory provisions and professional standards on compensation.
Number of meetings of the
Appointments and Governance
Committee that each member should
have attended in 2021
Number of Appointments and
Governance Committee meetings
attended by each member in 2021
Attendance
rate
Claire DORLAND CLAUZEL
6
5
83.33%
Luc JEANNEAU
6
4
66.66%
Meritxell MAESTRE CORTADELLA
6
6
100.00%
COMPENSATION COMMITTEE
Composition of the Compensation Committee at
31 December 2021
The rules of procedure of the Board of Directors stipulate that the
Compensation Committee is composed of at least four Directors
and includes a Director representing the employees, and one
Director in common with the Risk Committee.
Short biographies of members of this Committee are available in
Section 1.3 "Other information about the corporate officers" of
this report.
The Compensation Committee, chaired by an Independent Director,
has a total of four Directors, including two Independent Directors,
a Director representing employees and a Director of the Crédit
Agricole Group. The Committee has a majority of Independent
Directors in accordance with the provisions of the AFEP-MEDEF
Code (§15.1 and 18.1).
The Compensation Committee’s duties fall within the framework
of the Group’s compensation policy. With a view to harmonising
Crédit Agricole S.A.’s compensation policies, the Group Human
Resources Director
(1)
or his or her representative, as well as the
Chairman of the Board of Directors of Crédit Agricole CIB and the
Chief Executive Officer of Crédit Agricole S.A., are invited to the
meetings of the Compensation Committee.
MEMBERS OF THE COMPENSATION COMMITTEE
AT 31 DECEMBER 2021
Anne-Laure NOAT
Independent
Director
Chairwoman of
the Committee
Appointed a member of the
Compensation Committee
by the Board of Directors on
11 December 2015
Appointed Chairwoman of the
Compensation Committee
by the Board of Directors on
11 December 2015
Claire DORLAND
CLAUZEL
Independent
Director
Appointed a member of the
Compensation Committee
by the Board of Directors on
4 May 2017
Luc JEANNEAU
Director
Appointed a member of the
Compensation Committee
by the Board of Directors on
4 May 2018
Jean-Guy
LARRIVIÈRE
Director elected
by employees.
Appointed a member of the
Compensation Committee
by the Board of Directors on
10 December 2020
Missions of the Compensation Committee
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 1.2.2.2
“The Compensation Committee prepares the decisions of the
Board of Directors regarding compensation, in particular those
having an impact on risk and risk management in the Company.
It assists with the development of compensation policies and
the supervision of their implementation.
It makes recommendations to the Board including:
•
the total amount of compensation allocated to the members
of the Board of Directors, to be submitted to the General
Meeting of Shareholders for approval,
•
the distribution of such compensation among the members
of the Board of Directors,
•
ordinary and exceptional compensation, defined in Article 14
of the Articles of Association as “Directors’ Compensation”
paid to the members of the Board of Directors, its Chairman
and its Vice-Chairmen.
At least annually, it reviews:
•
the principles of the Company’s compensation policy,
•
the compensation, allowances, benefits in kind, pension
commitments and financial entitlements granted to the Chief
Executive Officer, and to the Deputy General Managers on
the proposal of the CEO,
•
the principles of variable compensation of all employees
of the Company including those identified personnel
defined in compliance with European regulations, as well
as the members of Executive Management (composition,
base, ceiling, conditions, form and payment date) and the
total amount allocated as part of this compensation. The
Compensation Committee is informed of the breakdown of
this total at individual level, beyond a threshold proposed
by Executive Management and subject to approval by the
Board of Directors.
It also carries out the following:
•
it ensures that the compensation system takes account of all
types of risks and that the levels of liquidity and equity and the
overall compensation policy is consistent, that it promotes
healthy and effective risk management and that it conforms
to the financial strategy, to the goals, to Company values
and to the long-term interests of the Company,
•
it prepares the work and decisions of the Board of Directors
to identify staff defined in compliance with the European
identification rules,
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•
it reports to the Board of Directors on its annual review
of the compensation policy and principles, as well as the
verification of their compliance with applicable regulations
and proposes changes as necessary,
•
it monitors the compensation of the Head of Risk
Management, the Chief Compliance Officer and the Head
of Periodic Control,
•
regarding deferred variable compensation, it evaluates the
achievement of performance targets and the need for an
adjustment to the ex-post risk, including the application
of penalties and recovery plans, in compliance with the
regulations in force,
•
it ensures that the Company’s policy and compensation
practices are subject to an assessment by periodic control
at least once per year, it reviews the results of this evaluation
and the corrective measures implemented and it makes any
recommendation,
•
it examines draft reports on compensation including the
compensation of Corporate Officers and Executive Corporate
Officers, prior to their approval by the Board of Directors.”
Activities of the Compensation Committee
during 2021
The Compensation Committee met three times during 2021.
These meetings focused primarily on the following matters:
y
review of te methodology for determining identified staff;
y
determination of the overall variable compensation budget;
y
examination of the compensation of managers of Executive
Corporate Officers;
y
examination of the compensation of managers of control
functions;
y
review of the reports required by law presenting the infor-
mation on the compensation policy and practices at Crédit
Agricole CIB;
y
review of the part of the management report and draft resolu-
tions concerning compensation to be presented to the General
Meeting of Shareholders;
The minutes of each of these meetings were submitted to the
Board of Directors.
The attendance rate of the Compensation Committee members
was 100% in 2021.
Attendance rate of members of the Compensation Committee
Number of meetings of the
Compensation Committee that each
member should have attended in
2021
Number of Compensation Committee
meetings attended by each member
in 2021
Attendance
rate
Claire DORLAND CLAUZEL
3
3
100.00%
Luc JEANNEAU
3
3
100.00%
Jean-Guy LARRIVIÈRE
3
3
100.00%
Anne-Laure NOAT
3
3
100.00%
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1.3. OTHER INFORMATION ABOUT THE CORPORATE OFFICERS
1.3.1. List of the functions and mandates held by the Executive Corporate Officers at 31
December 2021
MEMBERS OF THE EXECUTIVE MANAGEMENT
Jacques RIPOLL
Office held at Crédit Agricole CIB :
Chief Executive Officer
Business adress : 12, place des États-Unis – CS 70052 - 92547 Montrouge Cedex - France
› BRIEF BIOGRAPHY
A graduate of Ecole Polytechnique, Jacques Ripoll joined Société Générale in 1991 in the General
Inspectorate, and moved to the Equity Derivatives department in 1998. He became Head of sales and
Trading for European equities in 2003, and Director of Strategy for the bank between 2006 and 2009.
He then joined the Executive Committee of Société Générale in charge of four business lines: Asset
Management, Private Banking, Investor Services and Newedge.
In 2013, Jacques Ripoll moved to Banco Santander as Head of Investment Banking for the United
Kingdom. In 2015, he was appointed as Senior Executive Vice President of the Santander Group in charge
of investment banking worldwide.
On 1 November 2018 he was appointed as Chief Executive Officer of Crédit Agricole CIB, and also became
Deputy General Manager of Crédit Agricole S.A. responsible for the Large Clients division, for Corporate
and Investment banking (CACIB), Wealth Management (CA Indosuez) and services for institutional investors
and businesses (CACEIS).
›
BORN IN 1966
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2018
END OF TERM OF
OFFICE
Indefinite term
of office
Does not own
any shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Deputy Chief Executive Officer respon-
sible for the Large Clients division: Crédit
Agricole S.A. – Member of the Executive
Committee and the Management
Committee
Chairman: CACEIS (Chairman of the
Appointments Committee); CACEIS
Bank (Chairman of the Appointments
Committee)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Director: AROP; ASPEN Institute Italia
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
Santander Group: Senior Executive Vice President
in charge of Global Investment Banking (2017)
Director: Beyond Ratings (2019)
96
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Jean-François BALAŸ
Office held at Crédit Agricole CIB:
Deputy Chief Executive Officer
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
› BRIEF BIOGRAPHY
Jean-François Balaÿ began his career at Crédit Lyonnais (now LCL) in 1989, where he held various
managerial positions in the Corporate market in London, Paris and Asia. From 2001 to 2006, he was Head
of Origination and Structuring for Europe at Credit Syndication at LCL, then at Calyon (now Crédit Agricole
CIB). In 2006, he became Deputy Head of the EMEA team before taking over responsibility in 2009 of
Global Loan Syndication Group. In 2012, he was appointed Head of Debt Optimisation & Distribution. In
2016, Jean-François Balaÿ was appointed Head of Risk and Permanent Control. He was appointed Deputy
Chief Executive Officer in July 2018, overseeing structured finance, the distribution and debt optimisation
division, the impaired assets division and international trade and commercial banking. Jean-François Balaÿ
was appointed Deputy Chief Executive Officer on 1 January 2021.
Jean-François Balaÿ holds a postgraduate degree in Banking and Finance from Université Lumière Lyon
II and a Master’s degree in Economic Sciences from Université Lumière Lyon II.
›
BORN IN 1965
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
Indefinite term
of office
Does not own
any shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole Group companies
Director: Crédit Agricole CIB China;
CAPS
Member of the Management Committee:
Crédit Agricole S.A.
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole Group companies
Director: UBAF (2020)
In structures outside the Crédit Agricole
Group
—
97
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Olivier BÉLORGEY
Office held at Crédit Agricole CIB:
Deputy Chief Executive Officer and Chief Financial Officer
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
Olivier Bélorgey began his career at Crédit Lyonnais in 1991 in the Capital Markets Department. In 1995, he
joined the Asset/Liability Management unit of the Finance Department as Head of Interest Rate Risk. In 1999,
he joined the retail banking network as Head of Individual and Professional Customers before joining the
Human Resources Department as Head of HR Policies in 2001. He became Head of Management Control
at Crédit Agricole CIB (formerly Calyon) in 2004 and in 2007 became Head of Asset/Liability Management
at Crédit Agricole CIB, which was extended to Credit Portfolio Management in 2009. In 2011, Olivier
Bélorgey took over responsibility of the Financial Management Department of Crédit Agricole S.A., before
becoming Chief Financial Officer of Crédit Agricole CIB in 2017. He also became responsible for purchasing
in September 2020. Olivier Bélorgey was appointed Deputy Chief Executive Officer on 1 January 2021.
Olivier Bélorgey graduated from Ecole Polytechnique and holds a Master’s degree in Condensed Material
Physics and a doctorate in Science.
›
BORN IN 1964
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
Indefinite term
of office
Does not own
any shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole Group companies
Head of Crédit Agricole Group Finance
and Treasury
Member of the Management Committee:
Crédit Agricole S.A.
Supervisor: Crédit Agricole CIB China;
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Chairman:
Crédit logement
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole Group companies
—
In structures outside the Crédit Agricole
Group
—
98
Chapter 3 – Corporate Governance
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Pierre GAY
Office held at Crédit Agricole CIB:
Deputy Chief Executive Officer and Global Head of Capital Markets
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
Pierre Gay joined the Group in 1990, where he held various positions at Crédit Lyonnais, Calyon and Crédit
Agricole Indosuez. He became Chief Executive Officer Asia for Calyon Financial Hong Kong in August
2005. In 2008, he became Chief Executive Officer Asia Pacific based in Hong Kong at Newedge. In 2011,
he was named as Treasurer of the Newedge Group before becoming Treasurer of Crédit Agricole CIB in
2014. In 2016, he was appointed Head of Global Markets France and became Head of Global Markets
Europe excluding UK in the same year. He became Global Head of Capital Markets in February 2019.
Pierre Gay was appointed Deputy Chief Executive Officer on 1 January 2021.
Pierre Gay holds a Master’s degree in Applied Mathematics from Université Lyon I and an ESC LYON DEA
from Université de Lyon III.
›
BORN IN 1963
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
Indefinite term
of office
Does not hold
any sares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole Group companies
Member of the Management Committee:
Crédit Agricole S.A.
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole Group companies
—
In structures outside the Crédit Agricole
Group
—
99
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
BOARD OF DIRECTORS
Philippe BRASSAC
Office held at Crédit Agricole CIB:
Chairman of the Board of Directors
Business address: 12, place des États-Unis - 92127 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
A graduate of the Paris Graduate School of Economics, Statistics
and Finance (ENSAE), Philippe Brassac joined Crédit Agricole du
Gard in 1982. He held several executive offices there before being
appointed, in 1994, as Deputy General Manager of Crédit Agricole
des Alpes-Maritimes, now Crédit Agricole Provence Côte d’Azur. In
1999, he joined Caisse Nationale de Crédit Agricole as Director of
relations with Regional Banks. In 2001, he was appointed as Chief
Executive Officer of Crédit Agricole Provence Côte d’Azur. In 2010, he
also became Secretary General of the Fédération Nationale du Crédit
Agricole (FNCA) and Vice-Chairman of the Board of Directors of Crédit
Agricole S.A. In May 2015, he was appointed as Chief Executive Officer
of Crédit Agricole S.A.
›
MAIN AREAS OF
EXPERTISE
Banking
regulation
Strategic
planning
Corporate
Management
›
BORN IN 1959
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2010
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
> 11 years
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chief Executive Officer of Crédit Agricole
S.A.
Chairman: LCL
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Member of the Executive Committee of
the
Fédération bancaire française
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director:
Fondation du Crédit Agricole Pays de
France
(2021)
In structures outside the Crédit Agricole
Group
—
100
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Laure BELLUZZO
Office held at Crédit Agricole CIB:
Director
Business address: 12 Rue Villiot, 75012 Paris – France
›
BRIEF BIOGRAPHY
Laure Belluzzo began her career in 1996 in the Internal Audit
Department of the Banque Populaire Group, as an internal auditor.
In 2000, she joined Banque CPR as lead auditor. In 2001, she was
appointed supervisor in the Internal Audit department of Crédit Agricole
Indosuez (which became Calyon and then Crédit Agricole CIB). In
2006, Laure Belluzzo was appointed Head of Audit France and Eastern
Europe. In 2008, she became responsible for budget monitoring,
communication and management of cross-functional projects of the
Capital Market Operations Department of Crédit Agricole CIB. In 2009,
she became Head of Fixed Income Middle and Back Offices. In 2010,
she was appointed Global Head of Capital Markets Middle and Back
Offices at Crédit Agricole CIB.
In 2013, she joined Crédit Agricole S.A. as Head of Strategy and
Development. In 2016, she became a member of LCL’s Executive
Committee with responsibility for IT, back offices, the branch renovation
programme, real estate, artificial intelligence and Payments. Since
May 2020, she has been Chief Executive Officer of Crédit Agricole
Technologies et Services.
Laure Belluzzo is a graduate of EDHEC (1996), Grande Ecole
programme.
›
MAIN AREAS OF
EXPERTISE
Corporate
Management
Strategic
planning
Banking
regulation
›
BORN IN 1973
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
< 1 year
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chief Executive Officer: Crédit Agricole
Technologies et Services
Chairwoman: PROGICA
Director: CA Consumer Finance; CA
Payment Service; Crédit Agricole Groupe
Infrastructure Platform (member of the
Audit Committee); FIRECA
Member of the Crédit Agricole Group IT
Executive Committee
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director: AVEM (2020); CA Chèques (2020),
Association Visa France (2020) CA Titres (2020)
In structures outside the Crédit Agricole
Group
—
101
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Paul CARITE
Office held at Crédit Agricole CIB:
Director
Member of the Risk Committee
Business address: CRCAM Pyrénées Gascogne - 121 chemin de Devèzes – 64121 SERRES CASTET
- France
›
BRIEF BIOGRAPHY
Paul Carite graduated from Toulouse Business School and began
his career in 1986 at Société Générale. He joined the Crédit Agricole
du Lot et Garonne in 1991 where he was appointed as Head of
Corporate Market Services, IAA and Public Corporations. He then
moved to the Caisse Régionale de Crédit Agricole de Gironde
as Director of the Business, Public Authorities, Agriculture and
Professionals Market. Between 2001 and 2005, Paul Carite was
Director of Business and Private Management and then Director of
Distribution for the Caisse Régionale de Crédit Agricole d’Aquitaine.
In 2006, he became Director of the Corporate Bank for LCL, then
became a member of the Executive Committee responsible for the
Corporate Bank and its cash management businesses. In 2011, he
was appointed as Chief Executive Officer of the Caisse Régionale
de Guadeloupe. In 2016, he became Chief Executive Officer of
the Caisse Régionale de Crédit Agricole Mutuel Sud Méditerranée
and has been Chief Executive Officer of the Caisse Régionale de
Crédit Agricole Mutuel Pyrénées Gascogne since December 2020.
›
MAIN AREAS OF
EXPERTISE
Strategic
planning
Governance
Banking
regulation
›
BORN IN 1961
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chief Executive Officer: CRCAM Pyrénées
Gascogne
Director: FONCARIS (Member of the
Commitments Committee), Crédit
Agricole Égypte (Member of the Audit
Committee and Chairman of the Risk
Committee), NEXECUR SAS, CACIF,
GSO
Member: federal bureau (FNCA)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Director: INDARRA Fund
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director: CAAGIS (Chairman of the Audit
Committee) (2017), IFCAM (2019))
Chief Executive Officer: CRCAM Sud Méditerranée
(2020)
Member of the Supervisory Committee:
SOFILARO (2020)
In structures outside the Crédit Agricole
Group
Director: S.A. Independent du Midi (2020)
DATE OF FIRST
APPOINTMENT
2019
END OF TERM OF
OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 2 years
Does not own any
shares
in Crédit Agricole
CIB
102
Chapter 3 – Corporate Governance
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Claire DORLAND CLAUZEL
Office held at Crédit Agricole CIB:
Director
Chairwoman of the Appointments and Governance Committee – Member of the Audit Committee – Member
of the Compensation Committee
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
A holder of a Master’s degree in history from Université Paris
Sorbonne and a Doctorate from the Institut de Géographie, and a
graduate of the École Nationale d’Administration (1988 “Montaigne”
cohort), Claire Dorland Clauzel joined the Ministry of Economy
and Finance, Treasury Department, in 1988. She was appointed
as Deputy Head of Finance for the Usinor Group from 1993 to
1995 and became Cabinet Director of the Director of the Treasury
in 1995. In 1998, she joined AXA as Head of Audit and Control
of AXA France, where she was also a member of the Executive
Committee. She was appointed as Chief Executive Officer of AXA
France support in 2000 before becoming Head of Communication,
Branding and Sustainability of the AXA Group and a member of
the Executive Committee in 2003. In 2008, she joined the Michelin
Group as Head of Brand Communications and Public Affairs and
a member of the Executive Committee. In 2010, she also took
on responsibility for sustainable development and the Michelin
Group's maps and guides business unit. Since 2018, she has been
a company director and has jointly run her own vineyard.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
International
Corporate
Management
›
BORN IN 1954
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
—
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Manager: SCI La Tuilière
Chairwoman: CEI (Centre Echanges
Internationaux)
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In other structures outside the Crédit
Agricole Group
Member of the Executive Committee: (Director of
Branding and External Relations): Michelin group
(2018)
Director: Union des annonceurs
Union des fabricants (2018)
DATE OF FIRST
APPOINTMENT
2016
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
> 5 years
Does not own any
shares
in Crédit Agricole
CIB
103
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Michel GANZIN
Office held at Crédit Agricole CIB:
Director
Business address: Crédit Agricole S.A. - 12, place des États-Unis - 92120 Montrouge - France
›
BRIEF BIOGRAPHY
Michel Ganzin is Deputy Chief Executive Officer of Crédit Agricole
S.A., in charge of the Group Project division. He is a member of
the Executive Committee of Crédit Agricole S.A.
After joining Crédit Lyonnais in 1989, Michel Ganzin became Branch
Manager in 1997 and then Director of Individual and Professional
Customers of the Hérault branch network in 2001. From 2004 to
2008, he held positions as Head of Markets and Sales Coordinator
at LCL’s head office. In 2008, he became Director of Networks
outside LCL’s branches. In 2010, Michel Ganzin was appointed sole
Deputy Chief Executive Officer of Crédit Agricole de Val de France,
before becoming Chief Executive Officer of the Regional Bank of
Centre Ouest in 2015. In 2018, he was appointed Deputy Chief
Executive Officer of Crédit Agricole S.A., in charge of Operations
and Transformation, then the Client and Human Development
division in December 2020 before taking over the Group Project
division in July 2021.
Michel Ganzin holds a Bachelor’s degree in Economics, a graduate
degree in Banking (DES) and a CESA Management HEC. He is also
a graduate of the Centre d’études supérieure de banque (CESB).
›
MAIN AREAS OF
EXPERTISE
Strategic
planning
Social and
environmental
responsibility
Corporate
Management
›
BORN IN 1967
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies:
Deputy General Manager (in charge of
the Group Project division) at Crédit
Agricole S.A.
Chairman: Interim management commis-
sion of the Corsica Regional Bank
Director: IFCAM; Predica; BforBank
Advisory member of the board: Pacifica
Standing invitee of the Supervisory
Board: Crédit Agricole Technologies
Services
Chairman and Member of the
Management Board of Uni-Medias
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market:
—
In other structures outside
the Crédit Agricole Group:
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies:
Chief Executive Officer: Crédit Agricole Centre
Ouest (2018)
Chairman: LESICA (2020); CALXIT (2020);
Grouping (GIE) Cartes bancaires (2021)
Director: CAGIP (2020); FIRECA Portage &
Participation (2021); FIRECA Expérimentations
(2021), Crédit Agricole Payment Services (2021);
Euopean Payments Initiative (2021)
Permanent representative of Crédit Agricole S.A.:
SCI Quentyvel; SAS Evergreen Montrouge (2021)
In structures outside
the Crédit Agricole Group:
—
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
2024
SENIORITY ON
THE BOARD OF
DIRECTORS
1 year
Does not own any
shares
in Crédit Agricole
CIB
104
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Olivier GAVALDA
Office held at Crédit Agricole CIB:
Director
Member of the Audit Committee
Business adress: CRCAM Paris Ile de France - 26, quai de la Rapée – 75596 Paris Cedex – France
›
BRIEF BIOGRAPHY
Olivier Gavalda holds a Master’s degree in Econometrics and a
DESS Arts and Métiers in organisation/computer science. He has
spent his entire career at Crédit Agricole. In 1988 he joined Crédit
Agricole du Midi where he was Organisation Project Manager,
then Branch Manager, then Training Manager and finally Head of
Marketing. In 1998, he joined Crédit Agricole d’Ile-de-France as
Regional Director. In 2002, he was appointed as Deputy General
Manager of Crédit Agricole Sud Rhône-Alpes responsible for
Development and Human Resources. On 1 January 2007, he
was appointed as Chief Executive Officer of Crédit Agricole de
Champagne Bourgogne. In March 2010, Olivier Gavalda became
Director of the Regional Banks Division at Crédit Agricole S.A. In
2015, he was appointed as Deputy General Manager of Crédit
Agricole S.A. responsible for the Development, Client and Innovation
Division. Since 4 April 2016, he has been Chief Executive Officer of
the Caisse Régionale de Crédit Agricole de Paris et d’Ile-de-France.
›
MAIN AREAS OF
EXPERTISE
Strategic planning
Banking
regulation
Corporate
Management
›
BORN IN 1963
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chief Executive Officer: CRCAM Paris
Ile-de-France.
Chairman: Crédit Agricole SRBIJA,
CAGIP
Manager of the SNC Crédit Agricole
Technologies et Service (Chairman)
Member: federal bureau (FNCA)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director: GIE Coopernic, CAMCA (2020), Crédit
Agricole Capital Investissement et Finances
(2020), Crédit Agricole Technologies et Services
(GIE) (2020), CA Payment Services (2021);
In other structures outside the Crédit
Agricole Group
—
DATE OF FIRST
APPOINTMENT
2018
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
> 3 years
Does not own any
shares
in Crédit Agricole
CIB
105
Chapter 3 – Corporate Governance
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Françoise GRI
Office held at Crédit Agricole CIB:
Director
Member of the Risk Committee
Business address: 12, place des États-Unis - 92127 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
A graduate of the National School of Computer Science and Applied
Mathematics of Grenoble, Françoise Gri began her career with the
IBM Group in 1981 and became Chair and Chief Executive Officer
of IBM France in 2001. In 2007, she joined Manpower and held
the position of Chairwoman and Chief Executive Officer of the
French subsidiary, before becoming Executive Vice President of the
Southern Europe area of ManpowerGroup (2011). An accomplished
leader with extensive international experience, she then joined the
Pierre & Vacances-Center Parcs Group as Chief Executive Officer
(2012-2014). She is an Independent Director with expertise in the
fields of IT and corporate social responsibility. Françoise Gri has
published 2 books: “Women Power: Femme et patron” (2012) and
“Plaidoyer pour un emploi responsable” (2010).
›
MAIN AREAS OF
EXPERTISE
Strategic
planning
Governance
Corporate
Management
›
BORN IN 1957
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Independent Director: Crédit Agricole
S.A. (Chairwoman: Risk Committee, Risk
Committee in the United States; Member:
Audit Committee, Strategic and CSR
Committee, Compensation Committee)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
Independent Director: Edenred S.A.
(Chairwoman: Compensation Committee,
Appointments Committee),
Director: WNS Services (Chairwoman:
Governance and Appointments
Committee), Française des Jeux
In other structures outside the Crédit
Agricole Group
Manager: F. Gri Conseil
Director: OMNES Education (formerly:
INSEEC U)
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
Independent Director: 21 Centrale Partners (2019)
Director: Audencia Business School (2019)
DATE OF FIRST
APPOINTMENT
2017
END OF TERM OF
OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 4 years
Does not own any
shares
in Crédit Agricole
CIB
106
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Guy GUILAUMÉ
Office held at Crédit Agricole CIB:
Director
Member of the Audit Committee
Business address: CRCAM Anjou Maine - 77 avenue Olivier Messiaen - 72083 LE MANS - France
›
BRIEF BIOGRAPHY
After studying Economics and Management at the Ecole Supérieure
de Formation Agricole d’Angers, Guy Guilaumé established himself
in 1981 as a farmer operating in dairy and pig production until
September 2020.
At the same time, he invested heavily in the development and
influence of Crédit Agricole.
In 1988, he became a Director of the Crédit Agricole Pays de
Château-Gontier local bank (new name in 2014), then Chairman
of this local bank from 1995 to 2020.
He was Chairman of the Crédit Agricole Regional Bank of Anjou
Maine since March 2017 (Vice-Chairman from 1997 to 2017).
In addition, he held various positions within the Fédération Nationale
de Crédit Agricole (FNCA), Crédit Agricole S.A. and other Crédit
Agricole Group subsidiaries.
Until 2020, he held several mandates at the local and regional
levels, including the Regional Chamber of Agriculture, the Mayenne
Expansion Departmental Economic Development Agency and
various agricultural organisations.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
Governance
Corporate
Managements
›
BORN IN 1958
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Vice-Chairman: Federal bureau (FNCA)
Chairman: CRCAM Anjou Maine, Human
Project Group Committee (Crédit Agricole
S.A.)
Member: European Works Council (Crédit
Agricole S.A.)
Director: CA Consumer Finance; SAS
Rue la Boétie; Pays de Château-Gontier
local bank
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside
the Crédit Agricole Group
Chairman: HECA Association; Solidarity
Development Association
Member: SOLAAL Association (represent-
ative member of CRCAM Anjou Maine)
Co-manager: SCI du Guesclin
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Chairman: Crédit Agricole Mutual Equities
Endowment Fund (2017), (representing the
Regional Bank)
Member: Appointments Committee of CRCAM
Anjou Maine (2017); Management Board of SAS
Uni-Invest Anjou Maine (representing CRCAM)
(2017); Committee on Transformation and
Performance (FNCA) (2018)
In structures outside the Crédit Agricole
Group
Co-manager of GAEC de la Morandière (2020).
Chairman: AGECIF CAMA (2019); Pays de La
Loire “Food-Loire” Promotion Department (2018)
Vice-Chairman: AGECIF CAMA (2021)
(Representative of Crédit Agricole Group)
Member of the Bureau of the Regional Chamber
of Agriculture of the Pays de La Loire (2018) (rep-
resenting CRCAM)
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
2024
SENIORITY ON
THE BOARD OF
DIRECTORS
< 1 year
Does not own any
shares
in Crédit Agricole
CIB
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Luc JEANNEAU
Office held at Crédit Agricole CIB:
Director
Member of the Compensation Committee - Member of the Appointments and Governance Committee
Business address: CRCAM Atlantique Vendée - Route de Paris la Garde - 44949 Nantes Cedex 9 - France
›
BRIEF BIOGRAPHY
Luc Jeanneau has been at the head of a farming business on the
island of Noirmoutier since 1985. In 1990, he became Director of
the Caisse Locale du Crédit Agricole de Noirmoutier, then Director
of the Caisse Régionale de la Vendée in 1993, and Director of the
Caisse Régionale Atlantique Vendée in 2002, where he was Vice-
Chairman in 2010. He has been its Chairman since 1 April 2011.
At the same time he holds various positions and responsibilities
within the Crédit Agricole Group, in particular as a member of the
Group’s Commissions or Committees, and holds several offices
within the Group’s subsidiaries.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
Governance
›
BORN IN 1961
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2017
END OF TERM OF
OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 4 years
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chairman of CRCAM Atlantique-Vendée;
CAMCA Mutuelle; CAMCA Assurance
Réassurance;
Chairman of the Supervisory Committee:
CAMCA Courtage
Director: Caisse locale de Noirmoutier;
SAS Rue la Boétie; SACAM
Participations; ADICAM, SCI CAM
Member of the Executive Committee: GIE
GECAM
Member of the Management Board:
SACAM Mutualisation
Member: federal bureau (FNCA)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside
the Crédit Agricole Group
Manager: EARL Les Lions
Director: Coopérative des producteurs de
Noirmoutier; Comité interprofessionnel de
la pomme de terre; Felcoop Coopérative
Chairman: Association des Saveurs de
l’Ile de Noirmoutier
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director: SACAM Assurances Caution
In structures outside
the Crédit Agricole Group
—
108
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Jean-Guy LARRIVIÈRE
Office held at Crédit Agricole CIB:
Director (elected by employees)
Member of the Compensation Committee
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
Jean-Guy Larrivière is a graduate of the Institut d’Administration
d’Entreprises. He started working for Crédit Lyonnais in 2001 after
gaining his first experience in banking at Rabobank, Canada. He
worked in the Large Corporates Department before moving to
Crédit Agricole CIB’s International Department in 2005 and then
covering the Africa region as of 2009. In 2016, he joined Crédit du
Maroc, a Crédit Agricole S.A. subsidiary, to develop business with
multinationals. In 2019, he returned to Crédit Agricole CIB, working
within the International Support Division, and became a Director
elected by employees on 25 November 2020.
›
MAIN AREAS OF
EXPERTISE
Financial markets
Banking
regulation
International
›
BORN IN 1975
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2020
END OF TERM
OF OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 1 year
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Director: CA Sports (association)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
—
109
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Abdel-Liacem LOUAHCHI
Office held at Crédit Agricole CIB:
Director (elected by employees)
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
Abdel-Liacem Louahchi began working within the Crédit Agricole
Group nineteen years ago, more specifically at Crédit Agricole
Indosuez, which became Calyon, and is now Crédit Agricole
Corporate & Investment Bank.
He began his career as a banking business line technician
in the General Resources Department and currently holds the
position of back office manager in the OPC/FTO Process and
Change Management, Documentary and Guarantee Operations
Department. He became a Director elected by employees on 25
November 2020.
›
MAIN AREAS OF
EXPERTISE
Financial markets
Banking
regulation
Accounting and
financial information
›
BORN IN 1975
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2020
END OF TERM
OF OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 1 year
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
—
In companies outside
the Crédit Agricole Group
whose shares are admitted
for trading on a regulated market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
—
110
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Meritxell MAESTRE CORTADELLA
Office held at Crédit Agricole CIB:
Director
Member of the Risk Committee - Member of the Audit Committee - Member of the Appointments and
Governance Committee
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
Meritxell Maestre graduated in mathematical engineering from the
Institut National des Sciences Appliquées in Rouen (1994) and has
a Master of Business Administration from the ESADE in Barcelona
and the University of Chicago (1996). She began her career as an
investment banking analyst at Bank of America Merrill Lynch in
London where she advised clients in the European financial services
sector on their M&A and fund-raising operations. In 1998, she
joined the Paris team of Bank of America Merrill Lynch. In 2009,
she was promoted to Managing Director and became Head of
Financial Institutions for France, Spain, Belgium and Portugal until
November 2015.
She is currently Chairwoman of Enclar Conseil and a Senior Advisor
to the investment fund CVC Capital Partners.
›
MAIN AREAS OF
EXPERTISE
Financial markets
Banking
regulation
International
›
BORN IN 1971
NATIONALITY
Andorran
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
—
In companies outside
the Crédit Agricole Group
whose shares are admitted
for trading on a regulated market
—
In other structures outside the Crédit
Agricole Group
Chairwoman: Enclar Conseil; 2MJF
Director: April Group, Andromeda
Holdings
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
—
DATE OF FIRST
APPOINTMENT
2020
END OF TERM
OF OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 1 year
Does not own any
shares
in Crédit Agricole
CIB
111
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2021
Anne-Laure NOAT
Office held at Crédit Agricole CIB:
Director
Chairwoman of the Risk Committee, Chairwoman of the Compensation Committee and member of the
Audit Committee
Business address: 12, place des États-Unis - CS 70052 - 92547 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
An agronomic engineer and graduate of the Institut National
Agronomique Paris Grignon (1983) and the ESSEC business school
(1988), Anne-Laure Noat began her career at Crédit Lyonnais in
Japan in 1988. She joined Eurogroup Consulting in 1990 where
she has been a partner since 2000, Head of Development of
the Transportation Sector since 2007 and associate HRD since
September 2012. She develops Eurogroup Consulting’s business
in the transport and logistics sectors, notably as regards industry
policy, strategic projects and industrial and managerial performance.
She also specialises in corporate governance consulting (corporate-
function performance (legal, communication, HR), business strategy,
change management and corporate project deployment) and is a
member of the Transitions practice. She has been on the Executive
Committee since July 2021 and is responsible for the firm’s ESG
activities.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
Governance
Corporate
Management
›
BORN IN 1964
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2014
END OF TERM OF
OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 7 years
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
—
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Partner and member of EXCOM:
Eurogroup Consulting France
Chairwoman: NEW DDS SAS (Eurogroup
Consulting subsidiary)
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside
the Crédit Agricole Group
Chairwoman: DDS SAS (Eurogroup Consulting
subsidiary) (2019); Chairwoman of the HR and
Business Committee of Union Internationale des
Transports Publics and a member of the Policy
Board (2021)
Director: La Maison des ingénieurs agronomes
(2018)
112
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Catherine POURRE
Office held at Crédit Agricole CIB:
Director
Chairwoman of the Audit Committee and Member of the Risk Committee
Business address: 12, place des États-Unis - 92127 Montrouge Cedex - France
›
BRIEF BIOGRAPHY
A graduate of the ESSEC business school and a Certified
Accountant, with a degree in business law from the Catholic
University of Paris, Catherine Pourre has extensive experience
in audit and organisation consulting, particularly as a partner at
PricewaterhouseCoopers (1989-1999), then at Cap Gemini Ernst &
Young France, where she became Executive Director in 2000. She
joined Unibail-Rodamco from 2002 as Deputy General Manager. She
carried out various executive management functions as member
of the Executive Committee then member of the Management
Board. Since June 2013, she has been Chief Executive Officer and
a Director of CPO Services (Luxembourg). Catherine Pourre is also
an experienced navigator. She is a Chevalier de la Légion d’Honneur
and Chevalier de l’Ordre National du Mérite.
›
MAIN AREAS OF
EXPERTISE
Accounting and
financial information
Governance
Corporate
Management
›
BORN IN 1957
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2017
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
> 4 years
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Director: Crédit Agricole S.A.
(Chairwoman of the Audit Committee;
Member of the Risk Committee, Member
of the Strategic and CSR Committee)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
Director: Permanent representative of
Fonds Stratégique de Participation:
SEB (Chairwoman of the Audit and
Compliance Committee)
Director: Bénéteau (Chairwoman of the
Audit Committee and member of the
Compensation Committee)
Member of the Supervisory Board: Unibail
Rodamco Westfield NV (Chairwoman
of the Governance, Nomination and
Remuneration Committee and Member of
the Audit Committee)
In other structures outside the Crédit
Agricole Group
Manager: CPO Services
Director and Treasurer: Class 40
Association
Member: Royal Ocean Racing Club
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside
the Crédit Agricole Group
Director: Neopost (member of the Audit
Committee and Chairwoman of the Compensation
Committee) (2018)
Member/Board Women Partners (2019)
Advisory member of the board: Crédit Agricole
S.A, Crédit Agricole CIB (2017)
113
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Odet TRIQUET
Office held at Crédit Agricole CIB:
Director
Member of the Risk Committee
Business address: CRCAM Touraine Poitou - 18 rue Salvador Allende – BP 307 - 86008 Poitiers Cedex
- France
›
BRIEF BIOGRAPHY
Odet Triquet has been running a farm specialising in cereals and
goat farming since 1989. He joined the Crédit Agricole Group in
1992 as Director of the Caisse Locale de Civray. He became its
Chairman in 1997. In the same year he became Director of the
Caisse Régionale de Touraine et du Poitou. He was appointed as
Vice-Chairman of the Caisse Régionale in 2000 and then Chairman
in March 2012. He also holds several positions of responsibility
within the Group’s national bodies, particularly as a member of
Federal Committees, and within Group subsidiaries.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
Governance
Banking
regulation
›
BORN IN 1962
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chairman: CRCAM Touraine Poitou
Director: GIE CARCENTRE, FIRECA.
Member of the Supervisory Board: CA
Titres
Member: FNCA federal bureau
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
Director: CCPMA Prévoyance, Réunion
d’information commune (AGRICA Group
and AGRICA Gestion)
Co-Manager: GAEC des Panelières
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Director: BforBank (Member of the Audit
Committee) (2021)
In structures outside the Crédit Agricole
Group
—
DATE OF FIRST
APPOINTMENT
2018
END OF TERM OF
OFFICE
2024
SENIORITY ON
THE BOARD OF
DIRECTORS
> 3 years
Does not own any
shares
in Crédit Agricole
CIB
114
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2021
Claude VIVENOT
Office held at Crédit Agricole CIB:
Director
Business address: CRCAM Lorraine - 56-58 avenue André Malraux - 57000 METZ - France
›
BRIEF BIOGRAPHY
Claude Vivenot was president of one of the leading grain collection
and supply cooperatives in Lorraine from 2001 to 2012 and has
run a farm for a number of years. In parallel with these positions,
he became a Director of the Metz local bank in 2005 and then
Chairman in 2011. He joined the Regional Bank of Crédit Agricole
de Lorraine in March 2006 as a Director. He has been appointed
Chairman on 29 March 2012. At the same time, he has held
numerous responsibilities and positions within the Crédit Agricole
Group and holds several offices within Group subsidiaries.
›
MAIN AREAS OF
EXPERTISE
Human resources and
compensation
Accounting and
financial information
Governance
›
BORN IN 1958
NATIONALITY
French
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chairman: CRCAM Lorraine; Agriculture
Commission (FNCA); Finance and Risks
Committee (FNCA); IFCAM;
Director: LCL; SAS Rue la Boétie;
Member and Treasurer of the federal
bureau (FNCA)
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside
the Crédit Agricole Group
Chief Agricultural Officer: EARL Redigny
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole Group companies
—
In structures outside
the Crédit Agricole Group
—
DATE OF FIRST
APPOINTMENT
2021
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
< 1 year
Does not own any
shares
in Crédit Agricole
CIB
115
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Émile LAFORTUNE
Office held at Crédit Agricole CIB:
Advisory member of the board
Business address: CRCAM de Guadeloupe – Petit-Pérou – 97176 Les Abymes Cedex - France
›
BRIEF BIOGRAPHY
Emile Lafortune, who is a farmer, holds a PhD in physiology and a
master's degree in biology.
In 2012, he became Director of the Caisse Locale de Port Louis
and Director of the Regional Bank of which he then became first
Vice-Chairman and then Chairman in 2017.
At the same time, he holds several representative offices within the
Crédit Agricole Group.
›
MAIN AREAS OF
EXPERTISE
Social and
environmental
responsibility
Governance
Corporate
Management
›
BORN IN 1953
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2020
END OF TERM
OF OFFICE
2023
SENIORITY ON
THE BOARD OF
DIRECTORS
> 1 year
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chairman: CRCAM of Guadeloupe
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
—
In structures outside the Crédit Agricole
Group
Member: SAFER Guadeloupe (2017), CESER
(2017)
Chairman: IODE (Job Development Initiatives and
Approaches) training centre (2020)
Manager: ACWA HOLDING (2017)
116
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2021
Christian ROUCHON
Office held at Crédit Agricole CIB:
Advisory member of the board
Business address: CRCAM du Languedoc - Avenue de Montpelliéret – Maurin – 34977 LATTES – France
›
BRIEF BIOGRAPHY
Christian Rouchon joined the Crédit Agricole Group in 1988 as
Head of Accounting and Finance at the Caisse Régionale de la
Loire, then at the Caisse Régionale Loire Haute-Loire in 1991,
where he became the Finance Director in 1994. He was appointed
as the Information Systems Director of the Caisse Régionale Loire
Haute-Loire in 1997. In 2003, he was appointed as Deputy General
Manager responsible for operations at the Caisse Régionale des
Savoie, before joining the Caisse Régionale Sud Rhône-Alpes in
September 2006 as the Deputy General Manager responsible for
development. In April 2007, he became Chief Executive Officer.
Since September 2020, Christian Rouchon has been Chief
Executive Officer of the Caisse Régionale du Languedoc. He also
holds several positions of responsibility within the Group’s national
bodies, particularly as a member of Federal Committees, and within
Group subsidiaries.
›
MAIN AREAS OF
EXPERTISE
Accounting and
financial information
Banking
regulation
Strategic
planning
›
BORN IN 1960
NATIONALITY
French
DATE OF FIRST
APPOINTMENT
2019
END OF TERM OF
OFFICE
2022
SENIORITY ON
THE BOARD OF
DIRECTORS
> 2 years
Does not own any
shares
in Crédit Agricole
CIB
›
OFFICES HELD
AT 31 DECEMBER 2021
In Crédit Agricole
Group companies
Chief Executive Officer: CRCAM
Languedoc
Director: Amundi (Chairman of the Risk
Committee and the Audit Committee)
Member of the Supervisory Committee:
CA Transitions Fund
In companies outside the Crédit
Agricole Group whose shares are
admitted for trading on a regulated
market
—
In other structures outside the Crédit
Agricole Group
—
›
POSITIONS HELD IN THE LAST FIVE YEARS
(the end year of the term of office is stated in
brackets)
In Crédit Agricole
Group companies
Chairman of the Board of Directors: BforBank
(2017); Crédit Agricole Home Loan SFH (2017)
Director: CA-Chèques (2018); Square Habitat
Sud Rhône Alpes (2020); BforBank (2020); Crédit
Agricole Home Loan SFH (2020)
Chief Executive Officer: CRCAM Sud Rhône Alpes
(2020)
Non-shareholder Manager: Sep Sud Rhône Alpes
(2020)
Chairman: COPIL OFI (2017)
Chairman of the Financial Organisation
Committee, Protractor of the Finance and Risk
Committee, Member of the Projet Entreprise
et Patrimonial Committee and of the Rates
Committee (2018): FNCA
In structures outside the Crédit Agricole
Group
Vice-Chairman: ANCD (2016)
117
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2021
1.3.2. Shares held by the Directors
The directors of Crédit Agricole CIB do not hold any shares in the
Company.
1.3.3. Ethics, conflicts of interest, and
privileged information
In accordance with the Rules of Procedure of the Board of
Directors, in the performance of their duties, Directors, Advisory
members of the board and members of the Executive Management
are committed to respecting a number of rules, including the Rules
of Procedure of the Board (see Article 3 partially reproduced below).
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 3
“Directors ensure that the principles and best corporate gov-
ernance practices set out in this article are complied with, in
particular to promote the quality of the Board of Directors’ work.
The director, however appointed, must in all circumstances act
in the Company's interests.
When they take office, and throughout their term of office, the
director must fully understand their rights and obligations. In
particular, the director must be aware of and comply with the
legal and regulatory provisions applicable to the Company and
those relating to their position. The director must familiarise
themselves with applicable governance codes and best prac-
tices, including the Crédit Agricole Group's Ethics Charter and
the Code of Conduct, as well as the Company's own rules set
out in its articles of association and the Board of Directors'
rules of procedure. The Chairman of the Board shall ensure
that the Directors are properly informed, and they must ensure
that they have all the information they need to effectively partic-
ipate in discussions on items included on the Board meeting’s
agenda or on any items included on the agenda of meetings
of the Specialised Committees of the Board of which they are
members. The Chairman of each Committee shall also ensure
that all members of the Committee are sent the information they
need to carry out their duties.
The director shall devote the necessary attention and time to
their duties. They must attend all meetings of the Board and of
Committees of which they are members, unless they are gen-
uinely unable to do so.
The director endeavour to preserve, in all circumstances, their
independence and freedom of judgement, decision and action.
They must remain impartial and not let themselves be influenced
by any element outside the corporate interest, which it is their
duty to defend.
They undertake to inform the Board of any change in their per-
sonal or professional situation that could call into question the
conditions of their appointment relating in particular to their
reputation, availability or independence of mind.
The director makes all recommendations they believe could
improve the operating procedures of the Board. They endeavour,
collectively with the other members of the Board, to ensure that
the tasks of the Board of Directors are carried out efficiently
and smoothly.
They act in good faith and do not take any initiative that could
harm the interests of the Company or other group entities. They
alert the Board to any information in their possession that would
not be in the interests of the Company. They are bound by a
duty to express their questions and opinions. In the event of
disagreement, they ensure that these are explicitly recorded in
the minutes of the deliberations.
In addition, they inform the Board of any potential conflict of
interest situation, including potential ones, in which they could
be exposed directly or indirectly. They shall not take part in the
discussions or vote on the items in question.
In general, the director is bound by the obligations applicable
to them in accordance with the French Monetary and Financial
Code and the General Regulation of the French Financial
Markets Authority (Autorité des Marchés Financiers, AMF),
notably regarding the use and disclosure of confidential and/
or privileged information and conflicts of interest.
The director respects the total confidentiality of the information
they receive, or which is exchanged during the discussions in
which they participate within the framework of the Board of
Directors or its Committees, as well as the confidentiality of
the decisions taken.
For the record, members of the Board of Directors must abstain
from using privileged information, on their own behalf or on
behalf of others, either directly or indirectly, to acquire or sell,
or attempt to acquire or sell financial instruments to which this
information relates as long as the information has not been
made public.
In particular, if in the exercise of their office as Director they
obtain privileged information about the Company, they are
prohibited from using such information to carry out, or have
a third party carry out, any transactions on the Company’s
financial instruments.
Since the director holds information on the financial results of
the Company and, consequently, indirectly on Crédit Agricole
S.A., in accordance with the rules of the Crédit Agricole S.A.
Group, they must limit any transactions in Crédit Agricole S.A.
securities to each six-week period following the publication of
the annual, half-yearly and quarterly results, as long as they
are not privy to any inside information during these periods.
In addition, the Company can prohibit trading in any Crédit
Agricole S.A. financial instruments, including during authorised
periods, as well as in any financial instruments that would be
the subject of privileged information within the framework of the
meetings of the Board of Directors or one of its Committees
(strategic operations, acquisition operations, creation of joint
ventures, etc.).
The director is required to declare to the Conflicts Management
Group within the Compliance Department of the Company, on
behalf of themselves and all persons closely related to them,
all transactions carried out on any financial instruments, except
those issued by or linked to the Company or to Crédit Agricole
S.A., that they believe may create a potential conflict of interest
or contain confidential information that may be qualified as priv-
ileged and acquired in the course of their duties as a Director
of the Company.
Moreover, when the director is no longer in a position to perform
their duties in accordance with the provisions of this article due
to their own action or for any other reason including the rules
of the Company in which they carry out their duties, they must
inform the Chairman of the Board of Directors, seek solutions
to remedy the situation and, failing that, take the personal con-
sequences from carrying out their duties.”
EXTRACT FROM THE RULES OF PROCEDURE OF
THE BOARD OF DIRECTORS, ARTICLE 4
“[...] Members of the Executive management and Advisory
members of the board commit to complying the provisions
of CACIB rules and regulations that are applicable to them,
including the provisions related to conflicts of interest or privi-
leged/confidential information of which they would be aware.”
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Conflicts of interest
To Crédit Agricole CIB’s knowledge, there is no conflict of interest
between the duties of members of the Board of Directors and the
Executive Management with respect to Crédit Agricole CIB and
their private interests.
Crédit Agricole CIB’s Board of Directors and Executive Management
are made up of Corporate Officers of companies (including Crédit
Agricole Group companies - the Crédit Agricole or Crédit Agricole
S.A. Regional Banks) with which Crédit Agricole CIB has or could
have commercial relationships. This may be a source of potential
conflicts of interest. The composition of the Board of Directors is
based on the desire to reflect the capital structure of Crédit Agricole
CIB, which is 100% controlled by the Crédit Agricole Group, as
well as the diversity objectives defined by the Board of Directors.
For your information Crédit Agricole CIB is affiliated with the Crédit
Agricole network and that Crédit Agricole S.A. acts as a central
entity in accordance with the provisions of article L. 511-31 of the
Monetary and Financial Code.
In addition, they inform the Board of Directors of any potential
conflict of interest situation, including potential ones, in which
they could be exposed directly or indirectly. They abstain from
participating in discussions and decision-making on such matters.
Reputation - Integrity
To the best of Crédit Agricole CIB’s knowledge, to date, no
convictions for fraud, bankruptcy, receivership or liquidation have
been filed in the last five years against any member of the Board
of Directors or Executive Management of Crédit Agricole CIB.
To the best of Crédit Agricole CIB’s knowledge, no member of
Crédit Agricole CIB’s administrative or management bodies has
been prevented by a court from acting in that capacity or from
intervening in a management or executive capacity in the activities
of a listed company during the last five years.
Service contracts
There is no service contract directly binding the members of the
Board of Directors or Executive Management to Crédit Agricole CIB
or to any of its subsidiaries which provides for the granting of
benefits under this agreement.
.
1.3.4. Transactions carried out on the
securities of Crédit Agricole CIB (Art.
L. 621-18-2 of the French Monetary and
Financial Code)
Given that Crédit Agricole CIB’s shares are not listed on a regulated
market, the provisions of Article L. 621-18-2 of the French Monetary
and Financial Code regarding this category of securities are not
applicable to Crédit Agricole CIB.
For 2021, Crédit Agricole CIB has no knowledge of the existence
of transactions conducted on their own account by the persons
referred to in Article L. 621-18-2 of the French Monetary and
Financial Code and relating to debt securities of Crédit Agricole
CIB or related derivatives or other financial instruments.
Information on the ownership structure at 31 December 2021 is
provided in Note 6.17 to the consolidated financial statements
(see section 3 of Chapter 6 "Consolidated financial statements at
31 december 2021")
1.3.5. Agreements referred to in Article L.
225-37-4-2° of the French Commercial
Code
In accordance with the provisions of Article L. 225-37-4 2° of the
French Commercial Code, to the best of Crédit Agricole CIB’s
knowledge, no agreement has been reached, directly or by any
intermediary during 2021 financial year, between:
y
on one hand, the Chief Executive Officer, the Deputy Chief
Executive Officer, one of the Directors or one of the share-
holders holding a fraction of the voting rights greater than 10%
of Crédit Agricole CIB and;
y
on the other hand, another company in which Crédit Agricole
CIB holds, directly or indirectly, more than half of the capital,
unless they are agreements on current transactions executed
under normal conditions;
except the tripartite (Crédit Agricole S.A., Crédit Agricole CIB, and
Crédit Agricole Indosuez) agreement for the corporate tax of CA
Indosuez supported by Crédit Agricole CIB on foreign exchange
gaps relating to holdings in CHF received as part of CA Indosuez
Wealth (Group) merger absorption carried out on the July 1, 2021
in favor of CA Indosuez.
1.4. COMPENSATION POLICY
1.4.1. General principle of the compensation
policy
Crédit Agricole CIB has established a responsible compensation
policy that aims to reflect its values while respecting the interests of
all the stakeholders, including employees, clients and shareholders.
In light of the specific characteristics of its business lines, its legal
entities, and national and international legislation, Crédit Agricole
CIB has developed a compensation policy which is internally
consistent, gender neutral, and externally competitive on its
reference markets, to ensure the bank can attract and retain the
talents it needs. Benchmarking with other financial institutions is
regularly carried out for this purpose.
Compensation awards, particularly variable ones, aim to reward
individual and group performance over time while promoting sound
and effective risk management.
This Compensation Policy aims to reward employees fairly and
appropriately for their contribution towards the success of the
business and the level of service and performance delivered to
the clients of Crédit Agricole CIB. Therefore, the Compensation
Policy is designed to avoid conflicts of interest in accordance and,
in particular, to ensure that employees do not favour their own or
Crédit Agricole CIB’s interests to the detriment of the best interests
of the clients. The compensation policy of Crédit Agricole CIB
promotes sound risk management in compliance with the bank’s
risk appetite statement and framework.
The compensation policy of Crédit Agricole CIB is elaborated within
a highly regulated framework specific to the banking sector. As a
fundamental principle, Crédit Agricole CIB ensures compliance
of its compensation policy with the current legal and regulatory
environment at national, European and international levels, notably
incorporating provisions of the following regulations:
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y
Directive 2019/878 of the European Parliament and of the
Council of 20 May 2019, transposed into the French Monetary
and Financial Code by Ordinance no. 2020-1635 of 21
December 2020 (hereinafter “CRD V”);
y
Law no. 2013-672 of 26 July 2013 on separation and regulation
of banking activities (hereinafter the “French Banking Law”);
y
The rule enacted by Section 13 of the Bank Holding Company
Act, implementing Section 619 of the Dodd–Frank Wall Street
Reform and Consumer Protection Act (hereinafter the “Volcker
Rule”);
y
Directive 2014/65/UE of the European Parliament and of the
Council of 15 May 2014 on markets in financial instruments
and Regulation 600-2014 of the European Parliament and of
the Council of 15 May 2014 on markets in financial instruments,
transposed into the Monetary and Financial Code by Ordinance
no. 2016-827 of 23 June 2016 and Regulation 2017/565 of 25
April 2016 of the European Commission (hereinafter “MiFID II”).
The Crédit Agricole CIB compensation policy may be adapted
locally to comply with requirements of regulations in countries
where entities of Crédit Agricole CIB are established, if the local
requirements are more stringent than those of the policy of Crédit
Agricole CIB. Where applicable, adjustments need to be discussed
between Head of the entity (subsidiary, branch or representative
office), control functions, entity Head of HR and the HR team of
Crédit Agricole CIB.
This compensation policy was approved by the Crédit Agricole CIB
Board of Directors’ meeting of February 8
th
2022.
1.4.2. Total compensation
The total compensation of Crédit Agricole CIB Group’s employees
is made up of the following components:
y
Fixed compensation;
y
Annual variable individual compensation;
y
Collective variable compensation;
y
Long-term variable compensation;
y
Supplementary pension and health insurance plans; and
y
Benefits in kind.
An employee may be eligible to all or some of these elements,
depending their responsibilities, skills, performance and location.
Attribution of compensation elements is based on internal equity
and on external market references, and also takes into account
collective and individual qualitative and quantitative performance.
The qualitative aspect of performance includes notably the
evaluation done by the control functions; in case of an incident
related to compliance with rules and procedures and risk limits,
the attribution of remuneration elements takes it into account. The
impact on remuneration in case of conduct risk is reviewed and
validated on annual basis by the General Direction.
A - FIXED COMPENSATION
Fixed compensation rewards employees for the responsibilities
entrusted to them, as well as for the competencies used to exercise
these responsibilities, in a manner that is consistent with the
specificities of each business line in their local market.
These responsibilities are defined by a remit and contributions, a
level within the organization and expected skills and experience.
Fixed compensation is set at a sufficient level to allow for variable
compensation not to be paid in the case of underperformance.
Fixed compensation is reviewed in line with the evolution of the
employees’ responsibilities and with the development of skills
required for the role, appreciated within the framework of annual
performance appraisal based on objectives achievement and
fulfilment of permanent responsibilities of a position.
When an employee takes a new position, fixed compensation
is determined taking into account the change of responsibilities.
Fixed compensation includes base salary, as well as of any other
recurrent compensation components not linked to performance.
B - ANNUAL INDIVIDUAL VARIABLE
COMPENSATION
Variable compensation is directly linked to individual and collective
annual performance. Individual performance is assessed based
on the achievement of qualitative and quantitative objectives
defined at the beginning of each performance year, and includes
an assessment of whether the employee acted in the clients’
best interests. More generally, compliance with internal rules and
procedures and with the applicable legislation is a key factor of
assessment of the employee’s performance.
Collective performance is based on the determination of a firmwide
envelope which is then broken down by business line. This
envelope is defined in a way which does not limit the capacity of
Crédit Agricole CIB to strengthen its equity capital as required. It
takes into account all risks, including liquidity risk, cost of capital,
in line with regulatory principles.
Variable compensation includes bonus, as well as of any other
individual compensation component linked to performance,
including guaranteed variable compensation.
1 - Definition of variable envelopes
In order to define its global variable compensation envelope, Crédit
Agricole CIB uses a multi-criteria approach which is based on the
analysis of performance and of risks, control objectives and financial
situation, including maintaining a sound capital base and liquidity.
The variable remuneration envelope is defined taking into account
all the performance and risks indicators, including:
y
Revenue,
y
Direct and indirect expenses,
y
Cost of risk,
y
Cost of capital,
via an analysis of the evolution of several aggregate indicators, such
as Gross Operating Income, Net Result (Group share), Contribution
and Payout ratio.
The Contribution is defined by the following formula, based on
standard accounting definitions:
Net Banking Income (NBI) – direct and indirect expenses excluding
bonuses – cost of risk – cost of capital before taxes
y
NBI is calculated net of liquidity cost.
y
The cost of risk is understood to be the provisions for default.
y
The cost of capital, allowing to take into account the return
on equity specific to a business line, is calculated by applying
the following formula:
y
Risk-Weighted Assets (RWA) X Supply rate of capital (Tier 1
ratio target) X ß (the coefficient that measures the market risk
of a business line and that allows for an adjustment of the
Tier 1 ratio according to the capital requirement that is linked
to the business line).
The Payout ratio corresponds to the ratio between the variable
compensation envelope and the amount of Contribution.
The global envelope defined as above is then split between
business lines, control and support functions of Crédit Agricole CIB,
depending on criteria relevant for each function or team, defined
and documented in a detailed manner, and linked to:
y
Quantitative performance, including creation and development
of long-term competitive advantage for the Group,
y
Management of underlying risks,
y
Qualitative performance of a business line or function,
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y
Situation on the external market.
For each performance year. Crédit Agricole CIB verifies that
attribution of variable compensation is compatible with maintaining
a sound capital base, and that the bank meets the combined buffer
requirement (Art.141 p.2 of the European Directive 2013/36/UE of
26 June 2013).
2 - Individual bonus award
Individual bonuses are awarded within envelopes attributed by
business line or support function; individual attribution by employee
is discretionary and decided by the management, taking into
account a global evaluation of individual and collective performance,
both quantitative and qualitative.
To avoid a situation of a conflict of interest, or failure of an employee
to take into account the interests of a client, there exists no direct
and automatic link between the commercial and financial results
of an employee and their variable compensation.
Individual attribution of variable compensation takes into account
eventual cases of non-compliance with rules and procedures
and risk limits, as identified within the framework of Conduct risk
evaluation process in place in Crédit Agricole CIB.
In certain cases, other elements of variable compensation may
be awarded in addition to the individual bonus, as is the case for
Senior executives.
3 - Guaranteed variable compensation
Guaranteed variable remuneration is exceptional, and can only
be attributed if the bank has a sound and strong capital base.
The amount of variable compensation may be guaranteed in the
context of external recruitment or a retention. Guaranteed variable
compensation can take the form of “guaranteed bonus”, “sign-on
bonus”, or “retention bonus”.
In the context of external recruitment, variable remuneration
guarantee cannot be extended for longer than the first year of
employment.
Retention bonuses may be awarded for a pre-determined period
and under specific circumstances (such as restructuring, closure
or transfer of activity).
Attribution of guaranteed variable remuneration is subject to the
payment conditions applicable for the performance year, and may
entail deferral of a part of the remuneration.
4 - Buy-out of deferred variable compensation
In case of an external recruitment, Crédit Agricole CIB may
compensate the loss of unvested deferred variable attributed by
the previous employer and forfeited following a termination of the
labour contract.
5 - Ratio between fixed and variable
remuneration
For the staff identified as regulated in the sense of Directive
2019/878/UE of the European Parliament and the Council of 20
May 2019, the maximum attributable variable remuneration for the
performance year is equal to the employee’s fixed compensation.
The maximum ratio may be increased to 200% of the fixed
compensation by the decision of the General Shareholders Meeting.
In alignment with the regulated staff, the variable of all other
employees of Crédit Agricole CIB is limited at twice the amount of
their fixed compensation.
6 - Payment of the variable remuneration
In order to align the interests of all employees of Crédit Agricole
CIB with the bank’s long-term objectives, and to ensure sound and
prudent risk management, a part of the variable compensation of
all employees of Crédit Agricole CIB is deferred over time, if above
a threshold.
(i)
The rules and conditions for payment of the variable
compensation of the regulated staff are described in Chapter
III of the Policy.
(ii)
For non-regulated staff, the variable remuneration is split into
vested part and part deferred over three years.
The deferred part vests by equal instalments each year: 1/3 in year
Y+1, 1/3 in year Y+2 and 1/3 in year Y +3 where the performance
year is Y, provided the vesting conditions are met:
y
Performance condition;
y
Presence condition;
y
Compliance with internal rules and risk limits.
The deferred variable compensation is attributed in the form of
cash, 50% of which is indexed at the share price of Crédit Agricole
S.A..
(i)
If, within five years after payment of the variable compensation,
it is discovered that an employee: (i) participated in, or was
responsible for, or contributed to a significant loss for Credit
Agricole or its clients; or (ii) was responsible of a significant
breach of internal or external rules or procedures, Crédit Agricole
CIB reserves the right to demand repayment or ‘clawback’ of
all or part of the amounts paid, subject to enforceability under
applicable local law.
(ii)
The employees of Crédit Agricole CIB are not authorised to
transfer the downside risks of variable remuneration to another
party through hedging or any type of insurance to undermine
the risk alignment effects embedded in their remuneration
arrangements.
7 - Variable compensation of employees whose
activities are subject to a mandate (French
Banking Law, Volcker rule, etc.)
Variable compensation is awarded so as not to reward or encourage
prohibited trading activities, but may reward the generation of
revenue or the supply of services to clients. Any award must comply
with internal policies and procedures, including but not limited to
the Volcker rule compliance manual.
Individual performance bonuses are based on a number of factors
including, but not limited to an assessment of the attainment of
pre-defined individual and collective targets, which are set for
employees in strict compliance with the terms of the mandate
they manage.
Quarterly controls performed by the Risk and Permanent Control
Division and the Global Market Division are used to verify the correct
application of the mandates.
During the annual appraisal, managers assess employees’
performance based on objectives set in the beginning of the
performance year, including compliance with trading mandates.
The appraisal takes into account cases of breach of internal rules
and procedures, and in particular non-compliance with mandates.
8 - Remuneration of employees participating in
providing services to clients
The remuneration policy of employees involved in the provision of
services to clients aims to encourage responsible business conduct,
fair treatment of clients as well as to avoid conflict of interest in the
relationships with clients. Notably, the annual performance appraisal
and/or the remuneration awarded to employees take into account
the inion of the control functions, in case of an incident related to
provision of services to clients.
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9 - Variable compensation of the control
functions
In order to prevent potential conflict of interests, the compensation of
the control functions is defined independently of the compensation of
the employees of the business lines for which they validate or review
the operations. The objectives set for the control functions and the
budgets used to determine their variable compensation must not
take into account the criteria related to the results and economic
performance of the business area that they control. Their variable
compensation envelope is defined according to market practices.
The Crédit Agricole CIB Compensation Committee, as part of its
remits, ensures compliance with the principles of determining the
compensation of the Heads of risk and compliance.
C - COLLECTIVE VARIABLE COMPENSATION
Crédit Agricole CIB has been implementing for many years a policy
aiming to involve the employees collectively in the results and the
performance of the bank. For this purpose, a collective variable
compensation system (discretionary and mandatory profit sharing)
was set up in France. Similar arrangements aiming to share the
bank results with all members of staff may be also set up in the
international entities.
D - LONG-TERM VARIABLE COMPENSATION
This variable compensation component federates, motivates and
increases loyalty. It complements the annual variable compensation
mechanism by rewarding the long-term collective performance of
the group.
It consists of several systems that are differentiated according to
the level of responsibility in the organization:
y
“Employee” shareholding, which is open to all employees
subject to conditions defined by the Board of Directors of
Crédit Agricole S.A.;
y
Long-term compensation in share-linked cash and/or cash
subject to performance conditions based on economic, financial
and social criteria defined in line with the long-term strategy of
the Crédit Agricole S.A. Group. It is reserved for Group senior
and key executives.
E - PENSION AND HEALTH INSURANCE PLANS
Depending on the country and the relevant market practices,
Crédit Agricole CIB undertakes to provide its employees with social
security coverage that is designed to:
y
Assist with setting up retirement income or savings;
y
Provide a reasonable level of social security coverage for
employees and their family.
These benefits are a routine part of the remuneration packages,
put in place for all employees of Crédit Agricole CIB including
its international entities. Benefits are subject to collective
arrangements, complementing the mandatory regimes, specific
to each country where a Crédit Agricole CIB entity is located.
F - BENEFITS IN KIND
In certain cases, the total compensation also includes benefits in
kind. This includes notably:
y
Providing a company car depending on the employee’s level
of responsibility;
y
Benefits designed to cover the difference in the cost of living
for expatriate populations.
Depending on country, these benefits may be complemented by
other arrangements designed to provide a simulating working
environment and ensure a healthy work-life balance.
1.4.3. Governance of compensation policy
Crédit Agricole CIB compensation policy is reviewed annually by
the Executive Management, following a proposal by the Human
Resources Division and in accordance with the main guidelines of
the Crédit Agricole S.A. Group compensation policy. This policy
is also reviewed by the Control Functions. The compensation
policy is approved by the Board of Directors, on the basis of a
recommendation by the Remuneration Committee.
In compliance with the principles of the Group policy, the Human
Resources Division associates the control functions with the
consideration of the risks in the compensation management,
notably in identifying the regulated population, compliance with the
regulatory norms and the control of the conduct risk.
In addition, as
for all the support functions, the variable compensation envelopes
of the control functions are defined on the basis of objectives
specific for the control functions, and independent of the results
of the business areas they control.
The implementation of the compensation policy is subject to annual
control of the Group Internal audit.
1.4.4. Remuneration of identified staff
In line with the regulations applicable to the credit institutions and
investment firms, and in consistency with the general principles
of the Group, Crédit Agricole CIB identifies its risk takers, i.e.
employees whose professional activities have a significant impact
on the risk profile of Crédit Agricole CIB.
The identification of risk takers at the level of Crédit Agricole
CIB is compliant with Article 92 of Directive 2013/36/EU of the
European Parliament and the Council of 26 June 2013, amended
by Directive (EU) 2019/878 of 20 May 2019 (hereafter referred to
as “CRD V”). In the countries where national regulators enforce
similar requirements, based on the Guidelines of the Financial
Stability Board, the entities of Crédit Agricole CIB also apply the
local remuneration requirements.
The remuneration policy applicable to risk takers aims to promote
sound and efficient risk management, and does not encourage risk-
taking above the limit which is considered acceptable for the bank.
A - SCOPE OF APPLICATION
The identification of employees considered as risk takers in the
sense of CRD V Directive is a joint process between Crédit Agricole
CIB and Crédit Agricole S.A., and between the Human Resources
department and the control functions of Crédit Agricole CIB. This
process is subject to annual review.
In Crédit Agricole CIB, in application of Delegated Regulation of
the European Commission (EU) 2021/923 of 25 March 2021, the
following categories of personnel are considered identified:
y
Members of the Management body and senior management,
y
Employees with managerial responsibility over the control func-
tions or material business units,
y
Heads of key business lines,
y
Heads of key support functions,
y
Employees with authority to take decisions on significant credit
risk exposures or trading book transactions,
y
Employees entitled to significant remuneration for the preceding
performance year,
y
Any other employee considered as having a significant impact
on the risk profile of Crédit Agricole CIB, as identified by Risk
and Permanent Control, Compliance and Human Resources
divisions, and validated by the senior management.
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In addition, employees may be identified as risk takers at the level
of a local entity, as defined by the relevant local legislation.
B - COMPENSATION POLICY FOR RISK-TAKERS
The compensation policy for the risk takers aims to promote sound
risk management and to involve the employees in the mid- and
long-term performance of Crédit Agricole CIB.
In compliance with the regulatory requirements, the compensation
policy has the following characteristics:
(i)
The total amount of variable compensation is defined taking into
account the performance of the employee and of the operation
unit as well as the performance of the bank as a whole, based
on both financial and non-financial performance criteria;
(ii)
In the same way as for all staff, the amounts of variable
compensation and their distribution do not limit the bank’s
ability to strengthen its equity capital as required;
(iii)
The variable compensation cannot be above 100% of the
fixed compensation. The Shareholders Meeting can approve
a higher maximum ratio, provided that the total variable
component does not exceed 200% of each employee’s fixed
compensation. The Shareholders Meeting of Crédit Agricole
CIB of May 4th 2020 voted a resolution establishing the
maximum ratio between the variable and fixed compensation
at 200% for the remuneration attributed for 2020 onwards,
until a new decision is voted by the Shareholders Meeting.
(iv)
When variable compensation is above 50 000 EUR or above
1/3 of total compensation, a part of it representing 40% to
60% is deferred over 4 to 5 years, and is vested on pro-
rata basis in equal instalments, the vesting being subject to
performance, presence and risk management conditions. If a
national competent authority imposes stricter proportionality
criteria, the stricter rules apply to the risk takers within the
scope of the national regulation.
(v)
50% of the variable compensation is attributed in the form of
financial instruments (indexed on the share of Crédit Agricole
S.A.). The attribution of 50% in the form of instruments applies
both to the vested part and to each instalment of the deferred
part of variable compensation.
Vesting of variable compensation attributed in the form of financial
instruments is followed by a retention period of six months. It is
prohibited for the employees to hedge or use any form of insurance
which could undermine the risk alignment effects embedded in the
compensation arrangements.
If during the five years following the payment of a deferral
instalment, the bank discovers that the employee: (i) is responsible
for or contributed to actions that led to significant losses for Crédit
Agricole CIB or its clients, or (ii) committed a breach of internal
or external rules and procedures, Crédit Agricole CIB reserves
the right, subject to feasibility under the applicable local labour
legislation, to claw back all or part of the amount already paid to
the employee.
1.4.5. Remuneration of Senior management
The compensation policy applicable to Crédit Agricole CIB’s
executive directors is part of the compensation policy for Crédit
Agricole S.A. senior management.
A - GENERAL PRINCIPLES
The compensation policy for the members of Crédit Agricole CIB
Executive Management is approved by the Board of Directors on
the basis of a proposal by the Remuneration Committee. This policy
is reviewed annually by the Board of Directors in order to take
into account changes in the regulatory environment and external
market context.
It is consistent with the compensation policy for the senior
executives of Crédit Agricole S.A. Group. This principle allows to
bring the Group’s senior management together around common
and shared criteria.
In addition, the compensation of members of Crédit Agricole CIB
Executive Management is compliant with:
y
The regulatory framework defined by the Monetary and Financial
Code and the Ordinance of 3 November 2014 on internal control
in credit institutions and investment firms, which transposes
into French law the European provisions on the compensation
of identified staff, which includes executive directors;
y
The recommendations and principles of the Corporate
Governance Code for listed companies (the “AFEP/MEDEF
Code”).
The Board of Directors reviews annually the compensation
components for members of the Executive Management, following
a proposal of the Remuneration Committee, with the principal
objective of recognizing long-term performance.
B - FIXED COMPENSATION
Based on a proposal of the Crédit Agricole CIB Remuneration
Committee, the Board of Directors establishes the fixed
compensation of the members of Crédit Agricole CIB Executive
Management, taking into account:
y
The scope of activities supervised;
y
Market practice and compensation level for similar roles. At the
Group level, surveys are conducted annually with the assistance
of specialised firms regarding the positioning of the compen-
sation of the bank’s executive directors compared to other
firms in the financial sector in order to ensure the consistency
of the compensation principles and levels.
In accordance with the recommendations of the AFEP/MEDEF
Code (Section 23.2.2), the fixed compensation of executive
directors is reviewed only at fairly lengthy intervals, unless a change
in a person’s scope of supervision justifies a review of their fixed
compensation.
When a new Executive Corporate Officer is appointed, his or her
compensation will be determined by the Board of Directors, either in
accordance with the principles and criteria approved by the General
Meeting or in accordance with the existing practices for officers
exercising similar functions, adapted where applicable when the
person takes up new functions or a new office with no equivalent
in respect of the preceding period.
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C - VARIABLE COMPENSATION
1 - Annual variable compensation
Based on a proposal of the Crédit Agricole CIB Remuneration
Committee, the Board of Directors establishes the variable
compensation of the members of Crédit Agricole CIB Executive
Management.
The variable compensation policy for the members of the Executive
Management is specifically aimed at:
y
linking compensation levels with actual long-term performance;
y
linking the interests of the management with those of the Group
by including financial and non-financial performance.
For each member of Executive Management, 50% of the
performance bonus is based on financial criteria and 50% on
non-financial criteria, thereby combining recognition of overall
performance with a balance between financial and managerial
performance. The Board of Directors reviews and, if appropriate,
approves the financial and non-financial criteria proposed by the
Remuneration Committee.
Performance bonus may reach the target level if all the financial
and non-financial objectives are achieved, and may reach the
maximum level in case of exceptional performance. The target
and maximum levels are expressed as a percentage of the fixed
salary and are defined by the Board of Directors for each member
of Crédit Agricole CIB Executive Management.
A Long Term Incentive for Group Crédit Agricole S.A. senior
executives may complement the performance bonus, to support
a sustainable performance beyond financial results and strengthen
the link between performance and compensation, notably
including societal impact. The LTI is granted based on managerial
assessment and is included in the global variable compensation
subject to the approval by the Board of Directors.
In accordance with the AFEP/MEDEF Code (paragraph 23.2.3),
variable compensation is capped and may not exceed the maximum
levels established by this Compensation Policy (cf.above).
2 - Vesting conditions of the annual variable
compensation
The deferred part of variable compensation, representing 40%
to 60% of total variable, is awarded in the form of instruments
indexed the Crédit Agricole S.A. share price and is conditional
upon achievement of three performance targets: one linked to
performance, a second to the presence within the Group and a
third to the absence of risky behaviour.
The performance condition in the Crédit Agricole CIB deferred
plan is linked to the attainment of a Net Income target by Crédit
Agricole CIB.
The performance condition in the long-term incentive plan for
Senior Executives of the Crédit Agricole S.A. group itselfis based
on three targets:
1.
the intrinsic financial performance of Crédit Agricole S.A., defined
as the growth of Crédit Agricole S.A.’s operating income,
2.
the relative performance of the Crédit Agricole S.A. share
compared to a composite index of European banks,
3.
the societal performance of Crédit Agricole S.A. measured by
the FReD index
(1)
.
For each criterion, vesting may vary from 0% to 120%. Each
criterion accounts for one-third of the vesting. For each year, the
(1)
FReD is an internal index to follow up and measure progress of Crédit Agricole S.A. related to social and environmental responsibility.
percentage vested is the average percentage vested for each
criterion, the average being capped at 100%.
The non-deferred part of the annual variable compensation,
representing 60% to 40% of total variable, is paid in part at the
time of award (in March) and in part after a six months’ retention
period. The latter portion is indexed to the performance of the
Crédit Agricole S.A. share price.
D - STOCK OPTIONS -
FREE SHARES GRANTED
No Crédit Agricole S.A. stock options were granted to Executive
Corporate Officers by Crédit Agricole CIB.
E - OTHER COMMITMENTS
1 - Retirement
Some of the corporate officers benefit from one of the
supplementary pension plans below. For those who benefit from
it, the advantage was subject to the procedure governing related-
parties agreements.
y
a closed supplementary pension plan (before 2014). Entitlements
under this differential defined benefit plan are only vested when
beneficiaries end their career with Crédit Agricole CIB and are
expressed as a percentage of the reference salary (i.e. the
calculation base), which is equal to the annual average of the
basic fixed annual remuneration paid over the last five years,
recalculated using Social Security revaluation coefficients. The
differential paid under the plan is capped at 1% of the reference
pay per year of seniority, with a maximum of 25%. Management
of this defined-benefit pension plan is outsourced to an organi-
sation governed by the French Insurance Code. The outsourced
assets are funded as necessary by premiums fully funded by
the employer and subject to the 24% contribution provided
for in Article L. 137-11 of the French Social Security Code.
y
a supplementary pension scheme for senior employees of
the Crédit Agricole Group, which Crédit Agricole CIB has not
joined. Crédit Agricole S.A. joined this plan in January 2010
with the introduction of its pension rules adopted by collective
bargaining agreement in accordance with Article L. 911-1 of
the French Social Security Code.
In accordance with the Order of 3 July 2019, the entitlements
under this defined-benefit pension plan were crystallised as of
31 December 2019. No additional entitlements will be granted
for employment periods after 1 January 2020 and the benefit of
these entitlements will remain uncertain and subject to continued
employment.
From 2010 to 2019, the supplementary pension plan consisted
of a combination of defined-contribution pension plans and a
supplementary defined-benefit plan:
y
contributions to the defined-contribution plan equal 8% of the
gross monthly salary capped at eight times the social security
cap (of which 3% paid by the Executive Corporate Officer);
y
the entitlements under the supplementary defined-benefit plan,
which are determined minus the annuity built up under the
defined-contribution plans.
The reference salary is defined as the average of the three highest
gross annual compensation amounts received during the last
10 years of activity within Crédit Agricole entities, including both
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fixed compensation and variable compensation, the latter being
taken into account up to a cap on fixed compensation.
In any case, on liquidation, the total pension income is capped,
for all company pension plans and basic and additional obligatory
plans, at 70% of the reference compensation, by application of
the supplementary pension rules for Senior Executives of Crédit
Agricole S.A.
This supplementary defined-benefit pension plan meets the
recommendations of the AFEP-MEDEF Code and the former
provisions of Article L. 225-42-1 of the French Commercial Code,
which, for the periods in question, limited the rate of vesting of
defined-benefit plan entitlements to 3% per year (text repealed by
Order No. 2019-1234 of 27 November 2019):
y
the group of potential beneficiaries was substantially broader
than Executive Corporate Officers alone;
y
minimum length of service: five years (the AFEP-MEDEF Code
requires only two years of service);
y
entitlement vesting rate of 3% of the reference pay per year
of service;
y
estimated supplementary pension below the AFEP-MEDEF cap
of 45% of the fixed and variable compensation due in respect
of the reference period;
y
obligation for the beneficiary to be a Corporate Officer or an
employee when exercising their pension entitlements.
This defined-benefit pension plan is subject to management
outsourced to a body governed by the French Insurance Code.
The outsourced assets are funded by annual premiums fully funded
by the employer and subject to the 24% contribution provided for
in Article L. 137-11 of the French Social Security Code.
2 – Severance pay
No severance pay due or likely to be due in the event of termination
or change of function is expected for the corporate officers by
Crédit Agricole CIB. Otherwise, that will be the subject of the
regulated conventions procedure.
3 – Non-compete clause
There are no plans for non-compete clauses for Executive
Corporate Officers by Crédit Agricole CIB.
Otherwise, these would be subject to a regulated agreements
procedure.
F - OTHER BENEFITS OF THE EXECUTIVE
CORPORATE OFFICERS
Executive Corporate Officers benefit from health cover, life and
disability cover and a car benefit. Unemployment cover is also in
place for two of the Chief Executive Officers.
No other benefits are awarded to Executive Corporate Officers.
1.4.6. Compensation paid to members of the
Board of Directors of Crédit Agricole
CIB, in accordance with Article L. 225-
45 of the French Commercial Code
TOTAL COMPENSATION BUDGET FOR MEMBERS
OF THE BOARD OF DIRECTORS FOR 2021
The Ordinary General Meeting of Shareholders of Crédit Agricole
Corporate and Investment Bank set a maximum total annual
compensation budget of €700,000.
The Board of Directors does not grant any exceptional
compensation for assignments or offices entrusted to directors
(Article L. 225-46 of the French Commercial Code).
RULES GOVERNING THE DISTRIBUTION OF
COMPENSATION TO THE BOARD OF DIRECTORS
IN 2021
The compensation distribution criteria are mainly based on
compensation for effective participation in meetings and availability
for certain assignments.
Meetings of the Board of Directors
A gross amount of €3,000 per meeting is allocated to each Board
member for attending meetings. An additional annual flat gross
amount of €20,000 is allocated to the Chairman of the Board.
Advisory members of the board receive the same compensation
as Directors, which is paid out of the overall budget.
Meetings of the Board of Directors’ Specialised
Committees
The rules on the distribution of compensation that were in force in
2021 are described in the table below.
Chairman
Member
Compensation
Committee
Annual flat rate:
€6,000
Annual flat rate: €4,500
Appointments
and Governance
Committee
Annual flat rate:
€4,500
Annual flat rate: €4,500
Audit Committee
Annual flat rate:
€25,000
€3,000 per meeting with an
annual cap of €23,500
Risk Committee
Annual flat rate:
€30,000
€3,000 per meeting with an
annual cap of €23,500
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1.5. SUMMARY TABLE OF THE RECOMMENDATIONS OF THE AFEP-MEDEF
CODE WHICH WERE NOT FOLLOWED AND THUS EXCLUDED RELATING TO
GOVERNANCE AND THE BOARD OF DIRECTORS FUNCTIONING
At 31 December 2021
Background information:
Crédit Agricole CIB is 100%-owned by the Crédit Agricole Group (Crédit Agricole S.A. owns more than 97% of Crédit Agricole CIB’s
shares);
Crédit Agricole CIB’s governance is therefore in line with that of the Crédit Agricole Group.
The composition of the Board of Directors and its Committees reflects the corporate governance system, under which Board positions
in certain Group subsidiaries are assigned to the Chairmen or Chief Executive Officers of the Crédit Agricole Group’s Regional Banks.
AFEP-MEDEF Code Recommendations
Comments
11.
Board meetings and Committee meetings
11.3
It is recommended that a meeting be held each year without the
Executive Corporate Officers.
In 2021, Crédit Agricole CIB’s Board of Directors did not arrange any
formal meetings without the executive corporate officers in attendance.
The annual assessment of the operations of the Board of Directors
provided the members of the Board with an opportunity to state their
expectations and areas for improvement in the Board’s operations and
organisation. The results of this assessment, including key concerns
raised by Board members, were shared with the Appointments and
Governance Committee and the Board of Directors. These results
highlighted the quality of the relationship between the Board of
Directors and Executive Management, as well as the transparency of
their discussions, both of which were considered to be satisfactory or
very satisfactory by all members of the Board.
It should also be noted that the presentation of the compensation of
the Deputy Chief Executive Officers and the discussions of the Board
of Directors on this matter are made in their absence, which allows the
Board to discuss their management, where necessary.
Similarly, the audit plan for the following year is presented at a joint
meeting of the Audit Committee and the Risk Committee, from which
corporate officers are excluded.
From 2022, on a proposal from the Appointments and Governance
Committee, the Board of Directors has decided to hold an annual
session without the executive corporate officers and, more broadly,
the Company’s managers in attendance at a joint meeting of the Audit
Committee and the Risk Committee. The following persons will be able
to attend these meetings:
- the members of the two aforementioned Committees,
- the Chairmen of the four Specialised Committees of the Board,
- as well as any interested advisory members and director.
20.
Directors must hold shares on their own behalf and own a
minimum number of shares, which is significant with respect to the
compensation awarded.
Crédit Agricole CIB’s shares are not offered to the public and are not
listed for trading on a regulated market. The Crédit Agricole Group
holds 100% of the capital.
22.
Termination of the employment contract if an employee becomes a
Corporate Officer.
22.1
It is recommended that when an employee becomes an Executive
Corporate Officer of the company that the employment contract
binding them to the Company or to a Company of the Group be
ended, either by contract termination or resignation.
22.2
This recommendation is applicable to the Chairman, the Chairman and
Chief Executive Officer and the Chief Executive Officer of companies
with a Board of Directors.
Jacques Ripoll is a member of the Executive Committee and the
Deputy General Manager of Crédit Agricole S.A., in charge of the
Large Client segment.
As such, he manages the Bank’s corporate and investment activities
and oversees the wealth management activities and services for
institutional investors and businesses. It is within this context that he
has an employment contract with Crédit Agricole S.A.
23.
Obligation of the Executive Corporate Officers to hold shares
The Board of Directors sets a minimum number of shares that
Executive Corporate Officers must keep in registered form until the end
of their appointments.
This decision will be reviewed at least with each renewal of their
mandate.
Crédit Agricole CIB’s shares are not offered to the public and are not
listed for trading on a regulated market. The Crédit Agricole Group
holds 100% of the capital.
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1.6. PROCEDURES FOR SHAREHOLDER ATTENDANCE AT THE GENERAL MEETING
The procedures for participating in General Meetings of Shareholders are set out in section V of Crédit Agricole CIB’s Articles
of Association (see section 8 of the Universal Registration Document). The composition, functioning and main powers of the
General Meeting, and a description of the rights of shareholders and the procedures for exercising these rights, are detailed
in the following articles of Crédit Agricole CIB’s Articles of Association: “Art.19 - Composition - Nature of Meetings”, “Art. 20
- Meetings”, “Art. 21 - Ordinary General Meetings” and “Art. 22 - Extraordinary General Meetings”.
1.7.
STRUCTURE OF CRÉDIT AGRICOLE CIB’S SHARE CAPITAL AND
OTHER INFORMATION PROVIDED FOR IN ARTICLE L.22-10-11 OF
THE FRENCH COMMERCIAL CODE
Capital structure
At 31 December 2021, Crédit Agricole’s share capital consisted of
290,801,346 ordinary shares with a par value of €27 each, giving a
share capital of €7,851,636,342. The shares are more than 97%-
owned by Crédit Agricole S.A. and 100%-owned by the Crédit
Agricole Group. Crédit Agricole CIB’s shares have not been offered
to the public and are not listed for trading on a regulated market.
There are no employee shareholding schemes at Crédit Agricole
CIB and no securities holders with special control or voting rights.
To Crédit Agricole CIB’s knowledge, there are no shareholder
agreements that may result in restrictions on the transfer of shares
or the exercise of voting rights.
There are no agreements regarding allowances for Board of
Directors’ members or employees in case of resignation or dismissal
without real and serious cause or in case of job termination in a
context of a public offering to buy or a public offering to exchange.
The Board of Directors’ powers are described in Section 1.2.2.
The terms and conditions for selling Crédit Agricole CIB’s shares
and the rules applicable to the appointment and replacement of
members of the Board of Directors are governed by the provisions
of the Articles of Association (Articles 7 and 9 of the Articles of
Association). All changes to the Articles of Association fall within
the remit of the shareholders at an Extraordinary General Meeting
(Article 22 of the Articles of Association reproduced in Chapter 8
of the present Universal Registration Document).
1.8.
INFORMATION ON DELEGATIONS FOR CAPITAL INCREASES
At 31 December 2021, no delegations had been granted by the General Meeting to the Board of Directors for capital increases.
The Board of Directors
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2 .
COMPOSITION OF THE EXECUTIVE
COMMITTEE AND THE MANAGEMENT
COMMITTEE
THE COMPOSITION OF THE CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK’S EXECUTIVE
COMMITTEE AT 31 DECEMBER 2021 WAS AS FOLLOWS:
Jacques RIPOLL
Chief Executive Officer
Jean-François BALAŸ
Deputy Chief Executive Officer
Olivier Bélorgey
Deputy Chief Executive Officer
Pierre GAY
Deputy Chief Executive Officer
Stéphane DUCROIZET
Deputy Chief Executive Officer - Risk & Permanent Control
Pierre DULON
Deputy Chief Executive Officer - Global IT and OPC - Operations, Premises & Countries COOs
Didier GAFFINEL
Deputy Chief Executive Officer - Global Coverage and Investment Banking
Anne-Catherine ROPERS
Deputy Chief Executive Officer - Human Resources
Georg ORSSICH
SRO Europe (excluding France)
Marc-André POIRIER
SRO Americas
Michel ROY
SRO Asia-Pacific
AS AT 31 DECEMBER 2021, THE MANAGEMENT COMMITTEE CONSISTED OF THE EXECUTIVE COMMITTEE
AND:
Régis MONFRONT
Chairman Investment Banking
Thierry SIMON
SRO Middle-East – Africa
Frank SCHÖNHERR
SCO Germany
Ivana BONNET
SCO Italy
Hubert REYNIER
SCO UK
Jamie MABILAT
Debt Optimisation & Distribution
Julian HARRIS
Debt restructuring & Advisory Services
Anne GIRARD
Global Compliance
Séverine MOULLET
Coverage France
Laurent CAPES
Global Coverage Organisation
Hélène COMBE-GUILLEMET
Global Investment Banking
Tanguy CLAQUIN
Sustainability
Frank DROUET
Global Markets Division
Arnaud D’INTIGNANO
Global Markets Division
Thomas SPITZ
Global Markets Division
Arnaud CHUPIN
Control and Audit
Laurent CHENAIN
International Trade & Transaction Banking
Bruno FONTAINE
Legal
Éric LECHAUDEL
OPC – Operations, Premises & Countries COOs
Didier REBOUL
Crédit Agricole Group’s ISE Division
Danielle BARON
Structured Finance
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2021
2021 BUSINESS
REVIEW AND
FINANCIAL INFORMATION
1.
CRÉDIT AGRICOLE CIB GROUP'S BUSINESS
REVIEW AND FINANCIAL INFORMATION
...........
133
1.1.
OVERVIEW OF CRÉDIT AGRICOLE CIB GROUP'S
FINANCIAL STATEMENTS
..................................................
133
1.2. ECONOMIC AND FINANCIAL ENVIRONMENT
................
133
1.3. CONSOLIDATED ACTIVITY AND RESULTS
......................
135
1.4. RESULTS BY BUSINESS LINE
............................................
137
1.5.
CRÉDIT AGRICOLE CIB’S CONSOLIDATED
BALANCE SHEET
............................................................
139
1.6. RECENT TRENDS AND OUTLOOK
...................................
140
1.7.
ALTERNATIVE PERFORMANCE MEASURES (APM) -
ARTICLE 223-1 OF THE AMF’S GENERAL
REGULATION
.......................................................................
143
2.
INFORMATION ON THE FINANCIAL STATEMENTS
OF CRÉDIT AGRICOLE CIB (S.A.)
.....................
144
2.1.
CONDENSED BALANCE SHEET
OF CRÉDIT AGRICOLE CIB (S.A.)
....................................
144
2.2.
CONDENSED INCOME STATEMENT
OF CRÉDIT AGRICOLE CIB (S.A.)
...................................
146
2.3.
FIVE-YEAR FINANCIAL SUMMARY
.................................
146
2.4.
RECENT CHANGES IN SHARE CAPITAL
.........................
147
2.5. INFORMATION ON CORPORATE OFFICERS
.................
147
2.6.
INFORMATION RELATING TO ARTICLE L. 225-102-1
OF THE FRENCH COMMERCIAL CODE REGARDING
THE GROUP’S SOCIAL AND ENVIRONMENTAL
IMPACT
..............................................................................
147
4
CONTENTS
130
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2021
€ 5,9 B
NET BANKING
INCOME
N°3
IN EMEA
IN SYNDICATED
FINANCE
ACTIVITIES
(1)
N°5
WORLDWIDE IN ALL
BONDS EUR
(1)
€ 135 B
ASSETS UNDER
MANAGEMENT
(WEALTH
MANAGEMENT)
(1)
(1)
Bookrunner – Source Refinitiv R17.
(1)
Source: Refinitiv N1.
131
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2021
UNDERLYING
(1)
NBI BY BUSINESS LINE IN 2021
IN € MILLION
(1) Restated for the impact of loan hedges, the DVA, FVA liquidity cost and secured lending.
€ 840 M
WEALTH
MANAGEMENT
€ 2,775 M
FINANCING
ACTIVITIES
€ 2,334 M
CAPITAL MARKETS
AND INVESTMENT
BANKING
132
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2021
Chapter 4 – 2021 Business review and financial information
CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
1.
CRÉDIT AGRICOLE CIB GROUP'S BUSINESS
REVIEW AND FINANCIAL INFORMATION
1.1. OVERVIEW OF CRÉDIT AGRICOLE CIB GROUP'S FINANCIAL STATEMENTS
(1)
As prices can be very volatile, it is preferable to use average annual prices. Between 2020 and 2021, the price of oil (Brent) rose by almost 70%, while the price of gas in Europe
quadrupled. The CRB index has risen by 43%. Iron and copper prices rose by 46% and 51% respectively. Food prices were not spared, as evidenced by the 23% rise in wheat
prices. Finally, the Baltic Dry Index almost tripled, reflecting the extremely high level of tension in maritime traffic.
Changes to accounting policies
Pursuant to EC Regulation No. 1606/2002, the consolidated
financial statements have been prepared in accordance with
IAS/ IFRS and IFRIC applicable at 31 December 2021 and as
adopted by the European Union (carve-out version), by using
certain exceptions in the application of IAS 39 on macro-hedge
accounting.
The standards and interpretations are the same as those applied
and described in the Group’s financial statements at 31 December
2020.
They have been supplemented by the provisions of those IFRS
as endorsed by the European Union at 31 December 2021 and
that must be applied in 2021 for the first time.
Changes in consolidation scope
Changes in scope between 1 January 2021 and 31 December
2021 were as follows:
COMPANIES FIRST TIME CONSOLIDATED IN
2021
The following companies entered the scope of consolidation:
y
Credit Agricole CIB Arabia Financial Company
y
CA Indosuez Wealth (Europe) Italy Branch
COMPANIES DECONSOLIDATED IN 2021
The following companies went out of the scope of consolidation:
y
Shark FCC
y
Tsubaki ON
y
Tsubaki OFF
y
Crédit Agricole CIB Algérie
y
Merisma (Universal transmission of Assets)
y
CA Indosuez Wealth Group (Merger by CA Indosuez)
y
CA Indosuez Wealth Italy S.P.A
1.2. ECONOMIC AND FINANCIAL ENVIRONMENT
2021 RETROSPECTIVE
Global economic performance continued to be largely conditioned
by the spread of the virus and the health response (roll-out of
vaccination, containment strategy), the structure of the economies
(relative weight of industry and services, including tourism), and
the fiscal and monetary counter-offensive (extent of support for
activity).
As with the recessions experienced in 2020, recovery
paths have remained uneven. China, boosted by its foreign
trade and growing at a rate of 8.1%, the United States and
then the Eurozone, which posted very good performances,
continued to be contrasted with the half-hearted recoveries
or fragile rebounds of many emerging countries, in which the
trend towards fragmentation was clearly confirmed.
Moreover,
inflation
, long forgotten, has returned to the forefront.
The very sharp acceleration was the result of a combination of
several factors: upstream pressures with strong increases in
commodity prices and bottlenecks
(1)
, downstream pressures
from the strong rebound in household consumption supported
by substantial financial aid and high savings inherited from the
2020 crisis, and base effects after very low inflation in 2020. While
supply remained limited at the end of the crisis (lack of labour
or goods), the normalisation of demand led to price increases in
specific sectors, particularly those previously heavily penalised by
the pandemic (hotels, restaurants or cars, for example).
In the
United States,
after Donald Trump’s US$2.2 trillion
Coronavirus Aid, Relief and Economic Security Act (CARES
Act), the largest support plan in US history, and the US$900
billion December plan (a total of about 14% of GDP), Joe Biden’s
stimulus package (the American Rescue Plan) totalling $1.9 trillion,
or about 9% of GDP, was rolled out in March. Households, mainly
those with low incomes, were the main beneficiaries. Thanks
to the strong recovery in consumption, further boosted by the
rapid fall in unemployment, growth has stood at 5.7% in 2021.
In December, overall year-on-year inflation reached 7% (the first
time this has happened since the early 1980s), with core inflation
at 5.5%, its highest level since the early 1990s. In addition to the
impact of energy and industrial input prices, some specific items
(e.g. new cars, but especially used cars) driven by strong demand
contributed to the acceleration of inflation.
The
Eurozone
has withstood the latest lockdown phases by
limiting the negative effects to the sectors subject to targeted
restrictive measures and by benefiting from the reactivation of
its manufacturing sector. A pleasant surprise came from strong
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production investment supported by the strength of demand
for manufactured goods, but also by the European funds of
the recovery plan. After contracting by 6.5% in 2020, GDP is
expected to grow by 5.2% in 2021. While excess demand and
wage acceleration are much less evident than in the United States,
headline inflation nevertheless picked up significantly to 5% year-
on-year in December, while core inflation rose less vigorously
(2.6%).
After suffering an 8% recession in 2020,
France
started a strong
recovery in the second half of 2020 and continued into 2021.
The new wave of infections and the spread of the Omicron
variant raised new fears about the strength of the recovery in the
short term, but the absence of very restrictive measures made it
possible to limit the impact. After a marked mechanical rebound
in the third quarter, growth slowed in the fourth quarter, while
remaining sustained, allowing GDP to rise by 7% in 2021. Driven
by the rise in commodity prices (especially energy, which accounts
for more than half of the price increase), inflation accelerated to
2.8% over 12 months in December (1.6% on average).
Despite a shift in the Federal Reserve’s rhetoric suggesting a more
rapid normalisation of its monetary policy, an accommodative
monetary stance was maintained in both the United States and
the Eurozone.
In the
United States
, at the start of the year, Jerome Powell
emphasised the still extremely weakened nature of the labour
market and the low employment rate compared to its pre-crisis
level. However, concerns gradually shifted from growth to inflation
which, after being considered temporary, became more worrying.
At the same time, the Fed announced its strategy of gradual
normalisation: gradual reduction of its monthly asset purchases
(US$120 billion in force at the time) or tapering and then, without
any pre-established timetable, raising its key rate (target range
for the Fed Funds rate [0%, 0.25%]).
During its Federal Open Market Committee (FOMC) monetary
policy meeting in June, the Fed made its first change, which
consisted of a rise in its forecasts for the Fed Funds rate,
combined with an upward revision of growth and inflation. The Fed
prepared the markets by saying it would spell out in November
just how it would carry on its tapering program. In early November
the Fed announced it would cut back its monthly purchases by
$15 billion, suggesting these would come to an end in June
2022, though the pace of tapering might be adjusted. Finally, the
mid December meeting of the FOMC confirmed that monetary
normalisation would go faster still, with tapering occurring at
double speed and thus ending in March 2022. The reasons given
for the speed-up were the breadth of the inflation and the quick
progress made towards full employment, despite a few persistent
disappointments in the participation rate. Jerome Powell also
stated that a rate rise was possible before full employment is
reached, should inflationary pressures remain concerning.
Moreover, the Dot Plot
(1)
signalled a more aggressive upward
path for the key rate.
In the
eurozone
, while the ECB in June also acknowledged the
firming taking place and revised upward its growth and inflation
forecasts, it reiterated the very accommodative and flexible
orientation of its monetary policy. In December the ECB restated
its growth and inflation scenario and presented its monetary
strategy.
(1)
Clusters of dots showing the opinions of the members of the FOMC as to appropriate future federal funds rates. [the interest rate on fed funds deemed appropriate by the
Governors] The median now indicates rate hikes of 25 basis points each, happening three times in 2022, three times in 2023 and twice in 2024. This is a faster and stronger tightening
than projected in September, when the first hike was to happen in late 2022 or early 2023. These rises would put the target fed funds rate between 2% and 2.25% at end-2024.
(2)
Purchases made under the PEPP emergency programme will therefore cease 31 March 2022, and the reinvestment period will be extended until year-end 2024, maintaining
complete flexibility of purchases as between jurisdictions and asset classes. Assets purchases under the traditional APP programme will increase in 2022, from €20 billion per month
to €40 billion in Q2, then decrease to €30 billion in Q3 and €20 billion in Q4, then kept up as long as necessary to augment the accommodative effects of key rates. Purchases will
stop shortly before the increase in key rates.
(3)
All interest rates mentioned refer to State borrowings.
The ECB revised its inflation forecast for 2022 upward (from
1.7% to 3.2%), though much more moderately for 2023 (from
1.5% to 1.8%), and its 2024 projection of 1.8% remains lower
than the 2% target. The ECB seems to be saying that inflation
will be transitory, largely caused by supply issues having limited
effect on core inflation (at 1.9% in 2022 and 1.7% in 2023.) The
negative impact on growth (revised downward from 4.6% to 4.2%
in 2022) is presumed to be moderate and brief. Inflation should
temporarily erode purchasing power without derailing growth,
which is revised upward to 2.9% in 2023.
In terms of strategy, the ECB stated that the removal of emergency
support would be accompanied by significant yet flexible attention
to the sovereigns market. The point there is to prevent, on one
hand, an over-steepening of the yield curve and on the other, any
risk of eurozone fragmentation
(2)
The ECB reaffirmed that before
its key rate is raised, three conditions must be met: (1) Inflation has
to reach the 2% target well before the ECB’s forecasting horizon;
(2) this target must be reached lastingly, out to the forecasting
horizon; and (3) the progress achieved on core inflation must be
sufficiently great that it is compatible with stabilising inflation to its
medium-term target level. Respecting the most current forecasts,
these conditions have not been met.
Bond markets have kept step with a few major themes:
an enthusiastic first quarter buoyed by reflation trading,
a gloomier second quarter gripped by the reality of the
pandemic, and a second half displaying lively growth yet also
distinctly more troubling inflation, fuelling a faster monetary
normalisation scenario in the U.S.
In the
United States
, the two-year interest rates
(3)
kept pace
with the monetary scenario.
They stayed pegged to a low level
(0.17% on average) and only started up, slowly, once monetary
tightening was spoken of (September) and then more firmly with
the acceleration of tapering late in the year, which they finished
at 0.70%, for a rise on the year of 60 basis points. With reflation
trading, prompted by more sustained expectations for growth and
inflation, increasing vaccination rates and better-than-expected
economic data, long rates rose sharply in the United States, and
this rise spread into the eurozone. The U.S. 10-year rate, near
0.90% at the start of the year, started to climb and peaked at
end-March near 1.75%. Bad news on the public health front then
tempered the enthusiasm, and the bond markets took a more
conservative position. After that, starting in September, the idea
that accelerating inflation would cause monetary tightening in
the U.S. to be more energetic than expected once again pushed
interest rates higher. The U.S.10-Year rate ended the year at
1.50%, or a rise on the year of 60 basis points, was not impacted
by the attention focused by the markets on inflation and monetary
normalisation.
In the
eurozone
, in sympathy with the first phase of recovery by
the U.S. rates, the German 10-year rate (the Bund) rose from
nearly -0.60% at 1 January to -0.10% in May. While the Fed
proved to be tolerant with respect to the tightening of financing
conditions, a synonym of improvement in economic prospects,
the ECB was quick to signal that this tightening was premature
and unjustified. The Bund then headed downward. Whilst the
German 2-year rate remained virtually level at -0.60% at end-2021
vs. -0.70% at end-2020, the Bund closed the year at -0.30%,
or a rise on the year of 40 basis points. As a result of the ECB’s
statements about its process of purchasing sovereign securities,
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the risk premiums offered by France and Italy versus the Bund
widened somewhat, with those spreads widening 13 and 24
basis points, respectively, but remained narrow, at 35 and 135
basis points, respectively. Though the prospect of elections in
France does not seem to have affected the spread at this point,
the Italian spread has been negatively impacted since November
by their coming presidential elections.
The
equity markets
, still buoyed by the accommodative financing
conditions, despite the normalisations to come, and by favourable
growth prospects, at least in developed countries, have risen
nicely, with the average annual rise in the S&P 500, Eurostoxx 50
and CAC 40 indices up +32%, +23%, +27%, respectively. Lastly,
after resisting stoutly, the euro fell against the dollar given that
monetary normalisation was further along in the U.S. than in
Europe. The euro gained 3.6% against the dollar on average but
fell late in the year (at 1.14 in December 2021, it losts nearly 7%
on the year).
1.3. CONSOLIDATED ACTIVITY AND RESULTS
Condensed consolidated income statement
f
Year 2021
€ million
Underlying
CIB
1
Non-
recurring
1
Stated CIB
Private
Banking
Corporate
Center
CACIB
Underlying
CIB Change
2021/2020
Underlying
CIB Change
2021/2020 at
constant rate
Net banking income
5,109
(12)
5,098
840
(25)
5,913
+0.7%
+1.5%
Operating expenses excluding
SRF
(2,701)
-
(2,701)
(691)
(4)
(3,397)
+4.7%
+5.0%
SRF
(295)
-
(295)
(3)
-
(298)
+27.3%
+27.3%
Gross Operating Income
2,113
(12)
2,101
146
(29)
2,219
(6.7%)
(5.4%)
Cost of risk
(49)
(49)
(5)
(54)
(94.0%)
(94.2%)
Share of net income of equity-
accounted entities
-
-
-
-
-
-
-
-
Gain/losses on other assets
(40)
-
(40)
1
-
(39)
nm
nm
Pre-tax income
2,024
(12)
2,012
142
(29)
2,125
+40.3%
+43.4%
Corporate income tax
(474)
4
(470)
(18)
56
(432)
-
Net income from discontinued
or held-for-sale operations
-
-
-
7
-
7
-
-
Net income
1,551
(8)
1,542
130
27
1,700
+26.8%
+29.2%
Non-controlling interests
(2)
-
(2)
11
-
9
+56.3%
-
Net income, Group Share
1,553
(8)
1,544
119
27
1,691
+26.8%
+29.2%
Operating coefficient
(excluding
SRF)
52.9%
1
Restated as NBI for loan hedges for -€18 million in corporate banking and the impact of DVA, FVA liquidity cost and secured lending for +€6 million in capital markets and
investment banking.
f
Year 2020
€ million
Underlying
CIB
1
Non-
recurring
1
Stated CIB
Private
Banking
Corporate
Center
CACIB
Net banking income
5,076
22
5,097
820
17
5,934
Operating expenses excluding SRF
(2,579)
-
(2,579)
(683)
(3)
(3,265)
SRF
(232)
-
(232)
(3)
-
(234)
Gross Operating Income
2,265
22
2,287
134
13
2,435
Cost of risk
(824)
-
(824)
(32)
-
(856)
Share of net income of equity-accounted entities
-
-
-
-
-
-
Gain/losses on other assets
1
-
1
3
-
4
Pre-tax income
1,443
22
1,464
105
13
1,583
Corporate income tax
(220)
(6)
(226)
(11)
29
(209)
Net income from discontinued or held-for-sale operations
-
-
-
(25)
-
(25)
Net income
1,223
15
1,238
69
42
1,349
Non-controlling interests
(1)
-
(1)
10
-
8
Net income, Group Share
1,224
15
1,240
59
42
1,341
Operating coefficient (excluding
SRF)
50.8%
-
-
-
-
1
Restated for the impact of loan hedges, the DVA, and the FVA liquidity cost in net banking income, for +€11 million and +€11 million respectively in 2020.
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After a first-half still marked by the health crisis, the third quarter
saw strong recovery with demand almost liberalised but still
subject to pressure on costs, extended delivery times and
accelerating inflation.
The fourth quarter seems to be a turning point in market sentiment
compared to the third quarter, with the global presence of the
Omicron variant, which has not, however, affected an economy
that is running at full capacity. French GDP grew by 7% in 2021,
a 52-year high. In December 2021, inflation was at its highest
level in many years, with 5% in Europe, for example, a 25-year
high, amid the sentiment that inflation would be more sustainable
than expected. The economy is growing, with a level of interest
rates and liquidity in the system considered too low and too high
for liquidity.
Against this backdrop, CIB’s underlying revenues stood at €5,109
million in 2021, up +1% at current exchange rates and +2%
at current exchange rates compared to 2020. The increase in
revenues came from the solid performance of Corporate Banking
(+9% at current exchange rates). Capital market banking revenues
were down -8% at current exchange rates, mainly due to lower
overall customer demand than in 2020. The maintenance of
Crédit Agricole CIB’s leading positions in a number of sectors
(#1 Syndication France
(1)
, #3 EMEA Syndication
(2)
, #4 global
in Green, Social and Sustainability Bonds
(3)
, #5 worldwide on
All Bonds in EUR
(4)
and #8 worldwide on All Corporate Bonds
(1) Source: Refinitiv
(2) Source: Refinitiv R17
(3) Source: Bloomberg, all currencies
(4) Source: Refinitiv N1
(5) Source: Refinitiv N8
in EUR
(5)
illustrates the intensification of its focus on customer
relationships initiated during the crisis.
Operating expenses amounted to -€2,996 million in 2021, up
+7% at current exchange rates (+7% at constant exchange rates).
This increase is mainly linked to the larger contribution to the
Single Resolution Fund (SRF), which reached €295 million in 2021
compared with €232 million in 2020. Excluding the SRF, operating
expenses increased +4% in line with the organic growth strategy.
IT investments and staff growth are linked to the development of
business line initiatives and the strengthening of support functions.
Excluding the SRF, the underlying CIB cost/income ratio came out
at 52.9% in 2021, compared to 50.8% in 2020. Gross operating
income thus stood at €2,113 million, compared with €2,265
million in 2020, down -7%.
CIB’s cost of risk was down significantly, compared to 2020 in
a crisis situation. Its net allowance stood at -€49 million in 2021
compared to -€824 million in 2020.
Net gains or losses on other assets recorded a negative impact of
-€39 million in 2021 linked to the deconsolidation of the Algerian
subsidiary.
CIB’s underlying net income Group share amounted to €1,553
million in 2021, compared with €1,224 million in 2020, an increase
of +27%.
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CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
1.4. RESULTS BY BUSINESS LINE
Financing activities
€ million
Under-
lying
2021
1
Under-
lying
2020
1
Change
2021/2020
Change
2021/2020
constant
rate
Net banking income
2,775
2,546
+9.0%
+10.1%
Operating expenses
excluding SRF
(1,094)
(1,050)
+4.1%
+4.6%
SRF
(102)
(82)
+25.3%
+25.3%
Gross Operating
Income
1,579
1,413
+11.7%
+13.4%
Cost of risk
(76)
(796)
nm
-
Share of net income
of equity-accounted
entities
-
-
nm
-
Gain/losses on other
assets
(40)
1
nm
-
Pre-tax income
1,463
618
+136.8%
-
Corporate income tax
(317)
17
nm
-
Net income
1,146
635
+80.5%
-
Non-controlling
interests
(1)
(2)
(35.5%)
-
Net income, Group
Share
1,147
637
+80.1%
-
1
Restated for the impact of loan hedges in net banking income for -€18 million in
2021 and +€11 million in 2020.
The underlying revenues of Corporate Banking amounted to
€2,775 million in 2021, up +9% at current exchange rates. This
strong performance was recorded across all activities.
y
Structured Finance activities were up sharply (+12% to €1,306
million) across all the business line’s product lines, particularly
in the Acquisition Finance, Real Estate and Aerospace sectors.
y
Commercial Banking activities reached a very high level (€1,470
million, +7%). Debt Optimisation and Distribution activities were
up despite the negative impact of early repayments observed on
Covid-19 transactions in 2020. Revenues from the International
Trade and Transaction Banking activity rose sharply, with strong
momentum in the Supply Chain business and the continued
development of the Private Equity Funds Solutions business in
partnership with CACEIS. The recognised structuring expertise
in the Trade Finance activity generated a significant increase
in revenues compared to 2020.
The contribution of Corporate Banking to net income Group
share amounted to €1,147 million in 2021, up 80% compared
to 2020, mainly due to the exceptional allocation to the cost of
risk recorded in 2020 due to the health crisis.
Capital markets and investment banking
€ million
Under-
lying
2021
1
Under-
lying
2020
1
Change
2021/2020
Change
2021/2020
constant
rate
Net banking income
2,334
2,530
(7.7 %)
(7.1 %)
Operating expenses
excluding SRF
(1,607)
(1,528)
+5.2%
+5.5%
SRF
(193)
(150)
+28.4%
+28.4%
Gross Operating
Income
534
852
(37.3%)
(36.3%)
Cost of risk
27
(27)
nm
-
Gain/losses on other
assets
-
-
nm
-
Pre-tax income
561
825
(32.0%)
-
Corporate income tax
(156)
(237)
(34.0%)
-
Net income
404
588
(31.2%)
-
Non-controlling
interests
(1)
1
nm
-
Net income, Group
Share
405
587
(31.0%)
-
1
Restated for the impact of DVA, the FVA’s liquidity cost and, in 2021, Secured Lending
in NBI for +€6 million in 2021 and +€11 million in 2020.
Capital markets and investment banking underlying revenues
amounted to €2,334 million in 2021, down -8% compared to
2020 at current exchange rates (-7% at constant exchange rates).
2020 was an exceptional year in terms of client needs, notably in
terms of hedging and issuance, due to the financial crisis caused
by the start of the pandemic. Market conditions normalised in
2021 compared to 2020.
y
The Fixed Income business (at €1,938 million, or -13% com-
pared to 2020) suffered from the compression of margins in an
environment marked by the return to a normal level of volatility,
overabundance of liquidity and a wait-and-see attitude with
regard to long-term rates. On the other hand, securitisation
activities performed well compared to 2020 with a recovery
in economic activity and sales volumes.
y
Investment banking posted good revenue growth (€396 million,
+29% compared to 2020) thanks to M&A activities, which
carried out several major transactions at the end of 2021.
The Primary Equity Capital Markets and Structured Financial
Solutions activities also increased compared to 2020. Likewise,
the Equity Solutions activities were also up sharply thanks to
continued business development.
Capital markets and investment banking contributed €405 million
to net income Group share, down -31% compared to 2020.
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CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
Wealth Management
€ million
2021
2020
Change
2021/2020
Net banking income
840
820
+2.5%
Operating expenses
excluding SRF
(691)
(683)
+1.3%
SRF
(3)
(3)
+3.4%
Gross Operating
Income
146
134
+8.8%
Cost of risk
(5)
(32)
nm
Gain/losses on other
assets
1
3
nm
Variation in the value of
goodwill
-
-
nm
Pre-tax income
142
105
+34.6%
Corporate income tax
(18)
(11)
+58.1%
Net income from
discontinued or held-for-
sale operations
7
(25)
nm
Net income
130
69
+89.8%
Non-controlling interests
11
10
-
Net income, Group
Share
119
59
+101.0%
In 2021, the Wealth Management business line’s revenues stood
at €840 million, up at current exchange rates (+3%), driven by a
strong level of income on assets under management (high market
levels), by the income generated by the entry of a new client of
Azqore’s (Societe Generale Private Banking), and finally by the
increase in credit revenues to offset the decline in revenues related
to asset/liability management.
Operating expenses were virtually stable in 2021 compared to
2020 (+1%), as IT investments were offset by cost-saving plans.
Gross operating income rose (+9%).
The cost of risk recorded an allocation of -€5 million; it was down
compared to 2020, which had been penalised by a specific case.
At the end of December 2021, outstandings amounted to
€135 billion, up +5% compared to 31 December 2020 primarily
due to a favourable market effect, mainly linked to the CAC 40
trend (up +29% at end-December 2021 year-on-year).
Corporate Centre
€ million
2021
2020
Change
2021/2020
Net banking income
(25)
17
nm
Operating expenses
excluding SRF
(4)
(3)
nm
SRF
-
-
nm
Gross Operating
Income
(29)
13
nm
Cost of risk
-
-
-
Gain/losses on other
assets
-
-
-
Pre-tax income
(29)
13
nm
Corporate income tax
56
29
+92.1%
Net income
27
42
nm
Non-controlling interests
-
-
-
Net income, Group
Share
27
42
(35.8%)
The “Corporate Centre” division integrates the various impacts
not attributable to the other divisions.
In 2021, revenues amounted to -25 million, and included the
impact of the NSFR management operations. In 2020, net
banking income included the positive impact of the elimination of
the discount on Visa securities. Operating expenses amounted to
-€4 million, mainly comprised of expenses related to the transfer
of Crédit Agricole S.A.’s Banking Services Department’s activities
to those of OPCs (Operations, Premises & Country COOs)
within Crédit Agricole CIB; in 2020, they mainly consisted of the
donation to the Covid-19 solidarity fund. Tax income amounted
to +€56 million. It is linked to the tax rate applied to the tax base
and to the tax income on issues of AT1 securities.
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CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
1.5. CRÉDIT AGRICOLE CIB’S CONSOLIDATED BALANCE SHEET
Assets
€ billion
31.12.2021
31.12.2020
Cash, central banks
65.1
54.4
Financial assets at fair value through
profit or loss (excluding repurchase
agreements)
135.7
161
Hedging derivate instruments
1.3
1.5
Financial asset at fair value through
other comprehensive income
13.4
11.3
Financial assets at amortised cost
(excluding repurchase agreements)
236.5
201.2
Current and deferred tax assets
1.1
1
Repurchase agreements
117.5
125.9
Accruals, prepayments and sundry
assets
26.7
34.8
Non-current assets held for sale and
discontinued operations
-
0.5
Property, plant, equipment and
intangible assets
1.3
1.3
Goodwill
1.1
1
Total assets
599.7
593.9
At 31 December 2021, Crédit Agricole CIB had total assets of
€599.7 billion, up by €5.8 billion compared to 31 December 2020.
CASH AND BALANCES AT CENTRAL BANKS
The increase in central bank deposits is due to the very abundant
liquidity of the bank’s customers.
FINANCIAL ASSETS AND LIABILITIES AT
FAIR VALUE THROUGH PROFIT AND LOSS
EXCLUDING REPURCHASE AGREEMENTS
Financial assets and liabilities at fair value through profit or loss
mainly include the fair value of derivatives
.
These items decreased
by -€25.3 and -€22.7 billion over the period. This decrease reflects
the sensitivity of derivatives to long-term euro and USD rates,
which rose in 2021.
FINANCIAL ASSETS AT AMORTISED COST
EXCLUDING REPURCHASE AGREEMENTS
The increase in financial assets at amortised cost stems from
corporate banking and securitisation activities.
REPOS (ASSETS AND LIABILITIES)
Repo transactions were affected by the reduction in net activity of
Secured Funding following the overabundance of liquidity injected
by the Central Banks on the markets.
ACCRUAL AND DEFERRED INCOME AND
SUNDRY ASSETS AND LIABILITIES
Accruals, deferred income and sundry assets and liabilities consist
mainly of security deposits on market transactions. Their changes
are correlated with financial assets and liabilities at fair value
through profit or loss.
Liabilities
€ billion
31.12.2021
31.12.2020
Central banks
1.2
0.8
Financial liabilities at fair value through
profit or loss (excluding repurchase
agreements)
168.1
190.8
Hedging derivate instruments
1.2
1.7
Financial liabilities at amortised cost
(excluding repurchase agreements)
288.9
251.0
Repurchase agreements
80.4
85.4
Current and deferred tax liabilities
2.1
2.1
Accruals, deferred income and sundry
liabilities
25.9
33.3
Liabilities associated with non-current
assets held for sale and discontinued
operations
-
0.5
Provisions and insurance company
technical reserves
1.3
1.4
Subordinated debt
4.1
4.3
Equity – group share
24.8
21.2
Non-controlling interests
-
0.1
Net income (loss) for the year
1.7
1.3
Total liabilities and equity
599.7
593.9
LIABILITIES AT AMORTISED COST
EXCLUDING REPURCHASE AGREEMENTS
The increase in financial liabilities at amortised cost stems from
abundant liquidity inflows and the subscription to TLTRO loans.
EQUITY - GROUP SHARE
Net equity Group share (excluding profit (loss) for the period) came
to €24.8 billion, up by €3.6 billion compared with 31 December
2020. This change is mainly due to the issuance of AT1 debt.
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CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
1.6. RECENT TRENDS AND OUTLOOK
2022 Outlook
Our scenario calls for a slowdown in growth, which ought to
remain strong, as well as a slow moderation in inflation. Such
a picture assumes that demand normalises and that supply
chain bottlenecks break open. This twofold normalisation
will allow inflation (particularly core inflation) to slow and
the extraordinary measures of monetary support to be
removed unhurriedly and without excessive impact on the
bond markets.
Obviously, there is room for error in estimating inflation, which
could be both higher and longer-lasting than expected. While
the risk of significant growth in wages and of inflation settling
in for a while at a higher level is more manifest in the United
States, the fear in the eurozone arises rather from an erosion of
purchasing power that might undermine growth. This, however,
is not at present our primary scenario. Furthermore, at least
in the advanced economies (thanks to high vaccination rates),
the potential variants of the virus seem to hold back economic
activity only temporarily and without causing disruption or even
great interruption in people’s behaviour. The uncertainly produced
by the omicron variant was negative in the first quarter of 2022
but positive in the second quarter of 2022, without upsetting the
major thrust of our scenario.
In the
United States
, growth should remain vigorous (3.8% in
2022) before gradually converging with its long-term trend (2.3%
in 2023). It should benefit from strong consumption driven by an
improved labour market, from an upward trend in wages (though
limited to the sectors most affected by workforce shortages and
so not triggering a wage-price spiral) and from the still untapped
reservoir of savings, which is a safety net to help absorb a quick
pick-up in inflation. This is a scenario favourable consumption but
also to investment, since businesses remain optimistic despite
disturbances in the supply-chain and the persistent, though
diminishing, lack of labour.
The engines that most powerfully contributed to accelerating
inflation in 2021 will continue to turn, both in the United
States and elsewhere, at least during the first-half of 2022:
Brisk, high inflation, particularly with the ongoing crisis in
natural gas (whose price is extremely volatile but has more or
less “stabilised” since October); repercussions on retail prices
of higher-cost inputs (second-order effects with a maximum
impact occurring about three quarters after the jolt to upstream
prices); supply-chain problems (including semiconductors and
containers); and bottlenecks that though less “choking” could
continue for the greater part of 2022. In the second half-year
2022, assuming a stabilisation in energy prices, the base effects
can be expected to be very favourable (i.e., a sharp year-on-year
decline in energy prices and subsequently in the prices of goods)
and the disturbances in the value chain should gradually subside.
Inflation in the
United States
, boosted by sharp trends in some
specific components (such as the component of shelter known
as Owner’s Equivalent Rent, which does not exist in the eurozone,
and more sharply rising wages leading to expectations of “third
order” effects), is thought to remain very high in the first quarter,
peaking near 7.5% year-on-year and yielding core inflation
approaching 6.5%. Total inflation should then turn down, towards
3% for the 12 months ending 31 December 2022, bringing the
yearly average to 5.4% as against 4.7% in 2021.
In the
Eurozone
, the strength of the recovery has not yet filled the
negative production gap and the exogenous inflationary shock
does not appear able to alter the scenario of decelerating, if
robust, growth, which should be 4.3% in 2022 and 2.5% in
2023. Aggregate demand, while running up against weak supply
(logistical blockages, strained supply chains, and shortages of
inputs and labour), also remains weak its rebound. It is just this
weakness that leads one to expect restricted wage increases
and temporary, if more persistent, higher inflation Just as in the
U.S., a higher than expected rise in inflation is plainly the primary
risk. This would impair growth through the erosion of purchasing
power, rather than through any wage-price spiral. The possibility
of a wage-price spiral that is of great concern to investors at the
moment seems exaggerated.
Apart from the upward pressures already noted, inflation in the
eurozone will be volatile but greatly influenced by technical factors,
such as the weighting of components in the price index, the end
of the VAT effect in Germany, and country-by-country pricing
changes in energy contracts. Total and core inflation rates should
settle on average, respectively, at 4.1% (2.4% in December for
the year) and 2.4% (1.9% in December).
In
France
, consumer spending should benefit from higher
purchasing power despite inflationary pressures. A surge in new
jobs and lower unemployment rates should create confidence
among households, which also enjoy surplus savings from the
pandemic estimated at €150 billion. Investment will benefit from
the recovery plan announced in the autumn of 2020 and the
additional support in the France 2030 plan. Growth is expected
to be 3.9% in 2022. As for inflation, high as it was at the start of
the year, it should fall below 2% by year-end and average 2.6%
in 2022.
Our scenario assumes high varied efforts at monetary
normalisation, which is still preferred to monetary tightening.
Depending on the strength of the inflation experienced
or feared, and on the anticipated resistance of growth in
their respective territories, the central banks are adopting
very diverse patterns as they withdraw their various
accommodations, which were as extraordinary as they were
generous.
In the
United States
, the officials of the Federal Reserve consider
inflation a major risk but in mid-January emphasized recovery
in business and employment, judging the risk of setting up a
wage-price spiral to be low. According to the Fed, inflation can
be expected to start slowing down in the second half. The Fed
began its tapering process, and the markets are now counting
on four rises in the fed funds rate in 2022, including 50 basis
points at the March meeting. We are counting on a target rate
of 1% at end-2022.
In the
Eurozone
, in contrast with the forward-moving Fed, the
ECB is in no hurry and promises to remain accommodating and
flexible for some time to come, as shown by the thrust of its
monetary policy announced in December.
Monetary normalisation would not be accompanied by heavy
strain on bonds. 2022 is expected to be divided into two
sequences. After a first-half still stamped with both high
growth and high inflation, providing the right moment for
an upward move in interest rates, would come the motif of
deceleration to bring them down.
In the
United States
, inflation figures have not as yet brought
any over-reaction about interest rates. The 10-year Treasury note
rate should thus rise before starting to pull back and settling at
1.35% at end-2022.
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In the
Eurozone
, the way the ECB and the markets assess the
risk of inflation and, just as much, the credibility of the ECB’s
diagnosis in the eyes of the markets will be critical. The rise in
inflation and in its volatility should increase time premiums during
the first half of 2022. In sympathy with the ebbing of growth
and price pressures, rates should follow a downward slope in
the second half. The German 10-year rate should return to zero
(or even slightly positive) before falling back to -0.25% at end-
2022. As the outlook fades for new recovery measures from the
ECB, the messaging of the ECB will need to be as subtle as it
is convincing to prevent a widening of spreads on peripherals.
These could, however, widen slightly for a time. The risk premiums
offered by France and Italy should be, respectively, 25 and 130
basis points above the Bund at end-2022.
The sections on the outlook have been updated subsequent to
the closing of the accounts on 8 February 2022 to reflect recent
developments related to the situation in Russia and Ukraine.
At the end of February 2022, tensions between Russia and Ukraine
led to an armed conflict. The scale and duration of this war, as
well as its economic and financial impacts, are obviously difficult
to predict. In addition to its immediate financial consequences
(risk aversion, falling equity markets, falling rates on the safest
bonds including the United States and Germany, rising volatility),
the Russian-Ukrainian conflict has resulted in a significant rise in
commodity prices for the production of which the belligerents are
major players
(1)
. In a context of very high uncertainty and faltering
of confidence, the downturn effect on activity and the increase in
already significant inflationary pressures will complicate the task
of central banks, especially that of the ECB.
Crédit Agricole CIB outlook for 2022
Crédit Agricole CIB will continue to strive to be its clients’ preferred
partner, committed over the long term and facilitating their
business with a global approach across Crédit Agricole Group.
In
Capital Markets and Investment Banking
, Crédit Agricole
CIB will continue to consolidate its client relationships formed
during the crisis as well as the trend towards market share gains
by serving new Corporate clients in Europe, particularly in the
healthcare, technology and renewable energy sectors.
A gradual recovery in volatility, the rise in interest rates and a
gradual reduction in liquidity supply are expected in 2022, all of
which, in theory, carry on client hedging needs that should benefit
Fixed Income activities. Primary bond and securitisation activities
should continue to perform given clients’ refinancing needs.
Crédit Agricole CIB also intends to continue to develop its Equity
Solutions business for the Group in Europe and Asia.
In
Corporate Banking
activities, Crédit Agricole CIB aims to
continue to grow its revenues across all the various structured
finance segments, in line with 2021. Crédit Agricole CIB also
anticipates steady growth in its International Trade activities,
which should remain strong, with Trade and Commodity
activities expected to benefit from dynamic global trade and
higher commodity prices. The Debt Optimisation and Distribution
activities will continue their development, particularly in the
Corporate Acquisitions business line.
At the same time, Crédit Agricole CIB wants to strengthen its
ability to advise its clients on compliance with ESG regulations
(European Union taxonomy, ESG disclosures and ratings), to
support its Midcap clients on ESG products and, finally, to develop
in the hydrogen sector.
(1) Oil, gas, cereals in the first place but also coal, platinum, aluminum, copper, nickel, silver, gold, palladium.
Medium-Term Plan: 2021 results meet the
targets published for the 2022 MTP
In line with the Group’s project and the Crédit Agricole Group’s
2022 Medium-Term Plan published on 6 June 2019, Crédit
Agricole CIB presented on 11 december 2019 the details of its
targets for 2022.
Its resilient, profitable and conservative business model is based
on:
y
A client-focused organisation, with an automated and system-
atic measure of the profitability,
y
High value-added financing activities generating a strong RONE
(corresponding to an RWA allocation of 9.5%),
y
Market activities which complement the financing activities
for its clients,
y
A low risk profile, supported by an expert and conservative
approach on its exposures.
Crédit Agricole CIB’s performance indicators are solid and
demonstrate the relevance of its model: an income target
exceeded, the maintenance of a low COEX and a low cost of risk
level in 2021 made it possible to stay above the profitability target.
Indicators published
during Crédit Agricole CIB
Investors workshop on
11 december 2019
2021
1
2022 MTP
targets
Com-
ments
Underlying CIB Net Banking
Income
€5.1 billion
€~5 billion
CIB Expenses (excluding
SRF)
€2.8 billion
€~2.8 billion
CIB Cost to Income ratio
(excluding SRF)
53.90%
< 55%
Cost of Risk in amount
€1.013 billion
over 3 years
€1.1 billion
over 4 years
(2019-2022)
Financing cost of risk/
outstanding ratio
6 bp
[ 20; 25bp]
RWA
€122.9 billion
€123 billion
CIB RoNE (@9,5%)
12.4%
> 10%
1
For the CIB external communication scope, namely CIB (excluding Private Banking)
TOTAL (Crédit Agricole CIB & CASA).
In 2021, Crédit Agricole CIB achived its commitments by rolling
out the various pillars of its strategy.
A human-centric project aiming at building the
future by onboarding the new generation of
experts, at empowering the employees and at
significantly communicating the values of the
Group
Crédit Agricole CIB’s Human Project places its employees at
the heart of its strategy to make them the key players in its
performance and transformation. By developing an empowering
managerial culture and by offering a working environment that
promotes collaboration, trust and taking initiative, the Bank wants
to strengthen each person’s empowerment and commitment to
clients and the company. It is with this objective in mind that Crédit
Agricole CIB has been rolling out its empowerment approach
since 2020 and, since 2021, its “NOW - New ways Of Working”
project.
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Once again this year, the pandemic mobilised the Human
Resources and Occupational Health Department teams to provide
specific measures to management and employees during the
health crisis. The specific measures deployed enabled both the
protection of the teams and the business continuity through
enhanced social dialogue and special attention given to keeping
the link with employees.
In 2021, initiatives that encourage employee participation were
strengthened in order to reflect the numerous transformational
challenges linked to the development of the company and
organisational methods.
Crédit Agricole CIB and Indosuez Wealth Management
participated, as they do every year, in the Crédit Agricole Group’s
Engagement and Recommendation Index (ERI) survey, sent to
all their employees worldwide, from 4 October to 12 November
2021.
At Crédit Agricole CIB, this initiative fits in with commitment
surveys continued since 2015 and allows to assess the positive
development of results. In 2021, Crédit Agricole CIB achieved
its best ERI score with 79% favourable responses, i.e. a score
identical to 2020 and its highest participation rate with a 73%
response rate, i.e. an increase of 3 points compared to 2020. The
results of this survey reveal that strong progress has been made
on topics related to strategy, confidence in the decisions taken by
management and organisational efficiency. They also demonstrate
the strong commitment of employees and the collective spirit that
have driven the teams since the start of the health crisis. As part
of the Human Project, this year the Group rolled out a new ERI
indicator, the Accountability Index, for which Crédit Agricole CIB
received 75% favourable responses. This new index will allow us
to measure, over time, perceptions of autonomy, empowerment
and the ability to propose new ideas to meet clients’ needs.
Continuously strengthening the expertise of the
business lines - the core of the resilience of the
model
Once again this year, Crédit Agricole CIB demonstrated the
relevance of its business model, drawing on the complementarity
and cooperation of its Corporate Banking and Markets activities,
as a bank serving its clients and the economy as a whole. The
excellent commercial performance of all the Corporate Banking
businesses helped offset the decline recorded in market activities
and stemming from wait-and-see behaviour on certain fixed
income transactions, particularly at the end of the year.
A data project, the foundation of the digital
strategy
The Data project allowed to meet several goals. First of all, the
systematic incorporation of Data challenges in the different
projects to benefit clients and daily efficiency. The practical
implementation of projects to be more efficient in the manner
to measure risks, to advise clients. As an example, we can
mention the RADaR project which allows to have a global and
multidimensional vision of risks. Finally, skills improvement of the
actors on this subject now allows to enter in a new steering phase
of the strategy and to launch a strategy of digital transformation.
Consolidating its role as a leader in green and
sustainable finance, extending its offering of
sustainable solutions to all business lines
Crédit Agricole CIB offers its customers a range of specific
services to support them in their energy transition.
With its own dedicated Sustainable Banking team, Crédit
Agricole CIB is in line with its objective of remaining in the world
Top 5 in green and sustainable finance. Il occupe une position de
leader en se plaçant #4 global in Green, Social and Sustainability
Bonds
(source : Monde, all currencies in 2021 – Bloomberg)
and
remains #2 in Green, Social and Sustainability Bonds - EUR in
2021
(source : Bloomberg).
In 2021 Crédit Agricole CIB was involved in several transactions
in green and sustainable finance. The two following transactions
are good examples:
y
The European Commission’s Green Bond NextGenerationEU:
Crédit Agricole CIB acted as co-lead manager of this first historic
bond issue. This is the world’s largest green bond issue, which
supports the European Union’s determination to achieve climate
neutrality by 2050 (€12 billion, 15-year maturity).
y
Fleury Michon’s sustainable securitisation programme: Crédit
Agricole supported Fleury Michon in setting up its securitisa-
tion programme, the financing cost of which is indexed to its
non-financial performance (with indicators on workplace safety,
the energy transition and health/nutrition). As a result of this
transaction, it became the first agri-food company in Europe
to make the financing margin of a securitisation agreement
conditional on the achievement of multi-year CSR targets.
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CRÉDIT AGRICOLE CIB GROUP'S BUSINESS REVIEW AND FINANCIAL INFORMATION
1.7. ALTERNATIVE PERFORMANCE MEASURES (APM) - ARTICLE 223-1 OF THE AMF’S
GENERAL REGULATION
Alternative Performance Measures
Definition
Reason for use
Cost/Income ratio
Ratio indicating the share of NBI (Net Bank-
ing Income) used to cover operating ex-
penses (business operating expenses). It is
calculated by dividing operating expenses
by NBI.
Measure of operational efficiency in the banking
sector.
Underlying Net Banking Income
(Underlying CIB)
Net Banking Income excluding exceptional
items.
Details of exceptional items are provided in
the table hereafter.
Measure of Crédit Agricole CIB’s NBI excluding
items that do not reflect the underlying
operating performance or non-recurring items
of a significant amount.
Underlying Net income, Group Share
Underlying Net income, Group Share
excluding exceptional items.
Details of exceptional items are provided in
the table hereafter.
Measure of Crédit Agrcicole CIB’s net icome
excluding items that do not reflect the underlying
operating performance or non-recurring items of
a significant amount.
Assets under management
All assets under management by Indosuez
Wealth Management.
Measures
operating
activity
not
reflected
in
consolidated
financial
statements
and
corresponding to portfolio assets marketed
by Indosuez Wealth Management, whether
managed, advised or delegated to an external
manager.
f
Key Exceptional Elements
€ million
2021
2020
Net Banking Income
-
-
Loan hedges
(18)
11
DVA, FVA component of issuer spread and secured lending
6
11
Total pre-tax exceptional items
(12)
22
Total exceptional items after tax
(8)
15
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INFORMATION ON THE FINANCIAL STATEMENTS OF CRÉDIT AGRICOLE CIB (S.A.)
2.
INFORMATION ON THE FINANCIAL
STATEMENTS OF CRÉDIT AGRICOLE CIB (S.A.)
2.1. CONDENSED BALANCE SHEET OF CRÉDIT AGRICOLE CIB (S.A.)
Assets
€ billion
31.12.2021
31.12.2020
Interbank and similar transactions
188.3
154.8
Customer transactions
191.5
189.5
Securities transactions
40.2
34.4
Accruals, prepayments and sundry
assets
136.4
180.9
Non-current assets
5.9
6.8
Total assets
562.3
566.4
Liabilities
€ billion
31.12.2021
31.12.2020
Interbank and similar transactions
116.8
85.6
Customer accounts
198.0
207.3
Debt securities in issue
37.4
31.3
Accruals, deferred income and
sundry liabilities
178.9
214.3
Impairment and subordinated debt
15.4
12.5
Fund for General Banking Risks
-
-
Shareholders’ equity (excl. FGBR)
15.8
15.4
Total liabilities and
shareholders’ equity
562.3
566.4
At 31 December 2021, Crédit Agricole CIB (S.A.) had total assets
of €562.3 billion, down €4.1 billion compared to 31 December
2020.
Money market and interbank items
Interbank assets climbed +€33.5 billion (+21.7%), with an increase
of +€8.9 billion in central bank deposits, +€1.7 billion in treasury
bills and +€22.9 billion in amounts due from credit institutions
(o/w +€21.2 billion in term and demand accounts and loans and
+€1.7 billion in reverse repurchase agreements).
Interbank liabilities rose by €31.2 billion (+36.5%), with an increase
of +€0.2 billion in amounts due to central banks and +€31 billion
in amounts due to credit institutions (i.e. +€17.1 billion in term and
demand accounts and deposits and +€13.9 billion in repurchase
agreements).
Client transactions
Assets and liabilities on transactions with clients increased +€2.1
billion (+1.1%) and fell -€9.4 billion (-4.5%), respectively.
In terms of assets, this increase can be attributed to the following
changes: +€2.5 billion in trade receivables, +€1.2 billion in current
accounts with overdrafts and other customer loans, which rose
+€6.8 billion. This increase was offset by the significant drop in
repurchase agreements (-€8.5 billion).
In terms of liabilities, repos fell -€12.6 billion (-16.7%). Conversely,
other amounts due to clients rose +€5.2 billion (+6.7%).
Securities and debt securities
Securities transactions under assets were up +€5.8 billion
(+16.7%). This increase was attributable to bonds and other
fixed-income securities +€4.6 billion, and was confirmed in trading
and investment portfolios.
Debt securities were up +€6.2 billion (+19.7%), primarily due to
negotiable debt securities.
Accrual and deferred income and
miscellaneous assets and liabilities
This item principally records the fair value of derivative instruments.
As a reminder, these are covered in “Financial assets and liabilities
at fair value” in the consolidated financial statements.
The decrease in “Accruals, prepayments and sundry assets and
liabilities” was -€44.5 billion on the assets side (-24.6%) and
-€35.3 billion on the liabilities side (-16.5%).
Other assets fell -€13.9 billion and other liabilities -€7.8 billion.
These aggregates mainly consist of premiums on options and
miscellaneous accounts payable and receivable.
Accruals and prepayments, mainly representing the fair value of
derivatives, also declined by -€30.6 billion on the assets side and
-€27.6 billion on the liabilities side.
Provisions and subordinated debt
Provisions were down slightly by -€0.2 billion and subordinated
debt rose +€3.1 billion (+34.8%). This increase is mainly due
to the back of EUR-denominated perpetual subordinated debt
(+€3 billion).
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INFORMATION ON THE FINANCIAL STATEMENTS OF CRÉDIT AGRICOLE CIB (S.A.)
Fixed assets
Fixed assets can be broken down into €5.6 billion in equity investments and other long-term investment securities and €0.3 billion in
property, plant and equipment and intangible assets.
Fixed assets were down -€0.9 billion to €5.9 billion in 2021 compared with €6.8 billion in 2020.
This decrease is attributable to investments in subsidiaries and affiliates.
Accounts payable by due date
Under Article L. 441-6-1 of the French Commercial Code, companies whose parent company financial statements are certified by a
Statutory Auditor are required to disclose in their management report details of their client and supplier payment terms by due date,
in accordance with the terms and conditions set out in Article D.441-6-I of the French Commercial Code, as amended by Decree No.
2021-211 of 24 February 2021. This information does not include banking and related transactions as we consider that they do not fall
within the scope of the information to be provided.
€ thousands
31.12.2021
31.12.2020
≤ 30 days
> 30 days
≤ 60 days
> 60 days
Total
≤ 30 days
> 30 days
≤ 60 days
> 60 days
Total
Accounts payable
4,137
-
-
4,137
3,014
-
-
3,014
The median payment period for accounts payable at Crédit Agricole CIB is 12 days. Crédit Agricole CIB had outstanding amounts
payable of €4.1 million at 31 December 2021 versus €3 million at 31 December 2020.
Information on payment delays by Crédit Agricole CIB suppliers
f
Invoices received subject to payment delays by Crédit Agricole CIB Paris suppliers
€ thousands
31.12.2021
0 day
≥ 1 day
≤30 days
> 30 days
≤60 days
> 60 days
≤90 days
>90 days
Total (1 day and
more)
Number of invoices concerned
29,507
956
482
217
607
2,262
Aggregate amount of the invoices concerned
excl. VAT
884,718
21,073
9,241
3,284
2,913
36,511
Percentage of the total amount of invoices
received during the year, excl. VAT
96.04%
2.29%
1.00%
0.36%
0.32%
-
f
Invoices received and not paid at the closing date whose payment term has expired
€ thousands
31.12.2021
0 day
≥ 1 day
≤30 days
> 30 days
≤60 days
> 60 days
≤90 days
>90 days
Total (1 day and
more)
Number of invoices concerned
-
-
-
-
-
-
Aggregate amount of the invoices concerned
excl. VAT
-
-
-
-
-
-
Percentage of the total amount of invoices
received during the year, excl. VAT
-
-
-
-
-
-
Information on inactive bank accounts
Under Articles L. 312-19 and L. 312.20 of the French Monetary and Financial Code, issued by the Law No 2014-617 of 13 June 2014
relative to unclaimed assets on inactive bank accounts, named the Eckert Act which came into force on 1 January 2016, every credit
institution is required to publish annual information on inactive bank accounts. At 31 December 2021, Crédit Agricole CIB S.A. recorded
130 inactive bank accounts, for an estimated total amount of €16,926,288.70.
At the end of the 2021 financial year, a total of €8,222.91 related to a single inactive bank account held with Crédit Agricole CIB was
transferred to
Caisse des Dépôts et Consignations.
Client settlement terms
Compliance with the contractual terms of client payments is monitored as part of the bank’s risk management processes. The outstanding
maturities of client receivables are provided in Note 3.1 to the parent company financial statements.
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INFORMATION ON THE FINANCIAL STATEMENTS OF CRÉDIT AGRICOLE CIB (S.A.)
2.2. CONDENSED INCOME STATEMENT OF CRÉDIT AGRICOLE CIB (S.A.)
€ million
31.12.2021
31.12.2020
Net Banking Income
4,328
4,815
Operating expenses¹
(2,806)
(2,680)
Gross operating income
1,522
2,135
Cost of risk
(82)
(892)
Net operating income
1,440
1,243
Net gain/(loss) on fixed assets
51
(10)
Pre-tax income
1,491
1,233
Corporate income tax
(132)
(78)
Net allocation to FGBR and regulated
provisions
-
-
Net income
1,359
1,155
¹
Including depreciation and impairment of property, plant and equipment and intangible
assets.
Net banking income for the 2021 financial year stood at
+€4.3 billion, down -€487 million from 31 December 2020.
General operating expenses, excluding amortisation and
provisions, increased €146 million (+5.3%).
In view of these factors, gross operating income fell -€613 million
to €1.5 billion at 31 December 2021.
Cost of risk was -€82 million in 2021, compared to -€892 million
in 2020.
Net income on fixed assets came to +€51 million in 2021. The
main items were the capital gain of €142 million generated from
the universal transfer of
Mérisma
assets, the impairment of
Doumer Finance shares in the amount of -€141.4 million and
Crédit Agricole CIB Algérie SPA shares in the amount of -€33.8
million. The disposal of Crédit Agricole CIB Miami generated an
impact of +€25 million.
Directly 99.9%
owned by Crédit Agricole S.A. (CASA), Crédit
Agricole CIB (CACIB) is part of the tax consolidation group
constituted by CASA and is head of the Crédit Agricole CIB tax
sub-group constituted with the subsidiaries that are members of
the tax consolidation group.
The income tax expense for 2021 came to -€132 million.
Crédit Agricole CIB (S.A.) recorded net income of +€1.36 billion
in 2021 versus +€1.16 billion in 2020.
2.3. FIVE-YEAR FINANCIAL SUMMARY
Items
2017
2018
2019
2020
2021
Share capital at year-end (€)
EUR
7,851,636,342
EUR
7,851,636,342
EUR
7,851,636,342
EUR
7,851,636,342
EUR
7,851,636,342
Number of shares issued
-
290,801,346
-
290,801,346
-
290,801,346
-
290,801,346
-
290,801,346
Number of shares held by CACIB
-
-
-
-
-
-
-
-
-
-
Number of shares outstanding excluding
treasury shares
-
-
-
-
-
-
-
-
-
-
Total results of realized transactions (in € million)
Gross revenue (excl. Tax)
EUR
9,470
EUR
11,138
EUR
12,554
EUR
9,435
EUR
8,878
Profit before tax, amortisation and
reserves
EUR
3,017
EUR
1,004
EUR
1,895
EUR
1,339
EUR
1,594
Corporate income tax
EUR
(514)
EUR
(415)
EUR
(433)
EUR
(78)
EUR
(132)
Profit after tax, amortisation and reserves
EUR
2,613
EUR
1,272
EUR
1,329
EUR
1,155
EUR
1,359
Amount of dividends paid
EUR
1,236
EUR
489
EUR
445
EUR
1,023
EUR
553
Earnings per share (€)
Profit before tax, amortisation and
reserves
-
1
10,38
-
2
2.72
-
3
5.66
-
4
4.03
-
5
4.49
Profit after tax, amortisation and reserves
-
1
8.98
-
2
4.37
-
3
4.57
-
4
3.97
-
5
4.67
Dividend per share
EUR
4.25
EUR
1.68
EUR
1.53
EUR
3.52
EUR
1.90
Staff
Number of employees
-
6
6,678
-
6
7,371
-
6
7,410
-
6
7,555
-
6
7,786
Wages and salaries paid during the
financial year (€ million)
EUR
1,014
EUR
1,037
EUR
1,081
EUR
1,105
EUR
1,146
Employee benefits and social contribution
(in € million)
EUR
323
EUR
347
EUR
338
EUR
355
EUR
367
Payroll taxes (in € million)
EUR
39
EUR
42
EUR
41
EUR
39
EUR
43
1
Calculation made in relation to the number of shares outstanding excluding treasury shares at the end of 2017, or 290,801,346 shares.
2
Calculation made in relation to the number of shares outstanding excluding treasury shares at the end of 2018, or 290,801,346 shares.
3
Calculation made in relation to the number of shares outstanding excluding treasury shares at the end of 2019, or 290,801,346 shares.
4
Calculation made in relation to the number of shares outstanding excluding treasury shares at the end of 2020, or 290,801,346 shares.
5
Calculation made in relation to the number of shares outstanding excluding treasury shares at the end of 2021, or 290,801,346 shares.
6
Average headcount.
146
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Chapter 4 – 2021 Business review and financial information
INFORMATION ON THE FINANCIAL STATEMENTS OF CRÉDIT AGRICOLE CIB (S.A.)
2.4. RECENT CHANGES IN SHARE CAPITAL
The table below shows changes in Crédit Agricole CIB's share capital over the last five years.
Date and type of transaction
Amount of share capital (€)
Number of shares
Share capital at 31.12.2017
7,851,636,342
290,801,346
Share capital at 31.12.2018
7,851,636,342
290,801,346
Share capital at 31.12.2019
7,851,636,342
290,801,346
Share capital at 31.12.2020
7,851,636,342
290,801,346
Share capital at 31.12.2021
7,851,636,342
290,801,346
2.5. INFORMATION ON CORPORATE OFFICERS
Disclosures relating to the compensation, terms of office and functions of corporate officers pursuant to Articles L.225-37-4, L.22-
10-10 and L.22-10-11 of the French Commercial Code are provided in the chapter 3 “Corporate Governance” of the present Universal
Registration Document. Concerning the trading in the Company’s shares by Corporate Officers, a paragraph about the information that
may be required under the terms of Article L. 621-18-2 of the French Monetary and Financial Code and Article 223-26 of the General
Regulation of the French Financial Markets Authority (AMF) appears in the chapter 3 “Corporate Governance”, sections 1.3.3 and 1.3.4,
of the present Universal Registration Document.
2.6. INFORMATION RELATING TO ARTICLE L. 225-102-1 OF THE FRENCH
COMMERCIAL CODE REGARDING THE GROUP’S SOCIAL AND ENVIRONMENTAL
IMPACT
Economic, social and environmental information of Crédit Agricole CIB group are presented in Chapter 2 of the present Universal
Registration Document.
147
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148
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RISKS
AND PILLAR 3
150
1.
RISK FACTORS
..................................................
152
1. CREDIT RISK
..........................................................................
152
2. FINANCIAL RISKS
.................................................................
154
3. OPERATIONAL RISKS
..........................................................
155
4. BUSINESS RISK
.....................................................................
157
5. CLIMATE RISK
........................................................................
159
6. RISKS RELATING TO THE STRUCTURE OF THE CRÉDIT
AGRICOLE GROUP
...............................................................
160
2.
RISK MANAGEMENT
.........................................
162
2.1. CONCISE STATEMENT ON RISKS
......................................
162
2.2. STRUCTURE OF THE RISK FUNCTION
............................
165
2.3.
INTERNAL CONTROL AND RISK MANAGEMENT
PROCEDURES
.....................................................................
167
2.4. CREDIT RISKS
.....................................................................
176
2.5. FINANCIAL RISKS
..............................................................
187
2.6. OPERATIONAL RISKS
........................................................
197
3.
BASEL III PILLAR 3 DISCLOSURES
....................
203
3.1
COMPOSITION AND MANAGEMENT OF CAPITAL
.......
203
3.2
COMPOSITION AND CHANGES IN RISK-WEIGHTED
ASSETS
................................................................................
217
3.3
LIQUIDITY RISK
................................................................
238
3.4
COMPENSATION POLICY
.................................................
242
3.5
CROSS-REFERENCE TABLE
.............................................
243
3.6
STATEMENT BY THE PERSON RESPONSIBLE
..............
245
5
CONTENTS
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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151
CHANGES IN RISK-WEIGHTED
ASSETS
Fully loaded Basel III
2020-2021
REGULATORY VAR
OF CRÉDIT AGRICOLE CIB
REGULATORY
RATIO
IN 2021
€ MILLION
-
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug. 2020
Sep. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug. 2021
Sep. 2021
Oct. 2021
Nov. 2021
Dec. 2021
Jan. 2021
5.0
10.0
15.0
20.0
25.0
€ MILLION
2020
2019
2021
124,143
120,474
133,515
18.0%
PHASED-IN
TIER 1 RATIO
4.0%
LEVERAGE
RATIO
11.7%
PHASED-IN
CET1 RATIO
The main risks are defined in the Glossary in Chapter 9 of the present Universal Registration Document.
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152
1.
RISK FACTORS
This section sets out the main types of risks to which Crédit Agricole CIB is exposed, as well as certain risks related to holding
Crédit Agricole CIB securities. Other parts of this chapter discuss Crédit Agricole CIB ’s risk appetite and the set-ups put
in place to manage and control these risks. The information on the management of risks is presented in accordance with
IFRS 7, relating to disclosures on financial instruments.
Identification of risks
Crédit Agricole CIB identifies its risks using a comprehensive,
ex-ante and ongoing approach, then a selective ex-post
approach, via a list of “major risks” that is updated annually.
First, all risks are identified and their materiality assessed on
an ex ante basis, and on an ongoing basis, whenever Crédit
Agricole CIB develops a new business activity, develops a risk
strategy or plans a new transaction. Second, Crédit Agricole CIB
categorises the risks identified using a uniform classification for
the entire Crédit Agricole Group, then selects those considered
to be “major” risks. The assessment is realised based on two joint
criteria: on the one hand the assessment of the negative impact
magnitude, and on the other hand, the assessment of the risk
occurrence probability. Crédit Agricole CIB Risk Department,
which is independent from the business lines, makes a proposal
to the Board of Directors based on expert judgement, and taking
into account both the impacts and occurrence probability. The
Board of Directors approves the list of major risks for the year, at
the same time as the risk appetite. The risk factors listed below
are taken from this list of “major risks”.
The main risks specific to Crédit Agricole CIB’s activity are
presented below and are expressed through risk-weighted assets
or other indicators when risk-weighted assets are not appropriate.
1. CREDIT RISK
Crédit Agricole CIB’s Corporate and Investment Bank largely
focuses on debt-related business: credit risk is therefore central
to its activities and represents the greatest risk.
A – Crédit Agricole CIB is exposed to credit risk on
its Corporate & financial institutions counterparties
Crédit Agricole CIB is exposed to credit risk in relation to its
counterparties such as corporates and financial institutions.
Credit risk impacts Crédit Agricole CIB’s consolidated financial
statements when counterparties are unable to honour their
obligations and when the carrying amount of these obligations
in the bank’s records is positive. Counterparties may be banks,
financial institutions, industrial or commercial enterprises,
governments and their various entities, or investment funds.
The rate of counterparty defaults may increase compared to
recent historically low levels; Crédit Agricole CIB may be required
to record significant charges and provisions for possible bad
and doubtful loans, affecting its profitability. These provisions
are accounted for in its profit and loss account in the “cost of
risk” accounting item. Crédit Agricole CIB provisions’ level is
established depending on loss historic data, volumes, types and
maturities of loans granted, economic trend and other factors
related to the loan recovery perspectives. The cost of risk includes
both charges on defaulted loans (ECL stage 3 under IFRS9), but
also charges in case of significant deterioration in a counterparty’s
risk profile (ECL stage 1 and stage 2 under IFRS9).
In relation to corporates, the credit quality of borrowers could
experience a deterioration, primarily from increased economic
uncertainty and, in certain sectors, the risks associated with
trade policies of major economic powers. The risks could be
exacerbated by the recent practice by which lending institutions
have reduced the level of covenant protection in their loan
documentation, making it more difficult for lenders to intervene
at an early stage to protect assets and limit the risk of non-
payment. On the sectors which appear to be particularly
vulnerable to the sanitary crisis, the counterparties risk profile
continued to deteriorate in 2021. This is the case for shipping
(notably ports, bulkers, cruise, tankers), aviation (in particular
airline companies), real estate (hotels), oil & gas (Oil services,
offshore), and automotive (rental companies).
Crédit Agricole CIB has exposure to many counterparties in the
financial industry, including brokers and dealers, commercial
banks, investment banks, mutual and hedge funds, and other
institutional clients with which it regularly executes transactions.
Many of these transactions expose Crédit Agricole CIB to credit
risk in the event of default or financial distress. In addition, Crédit
Agricole CIB’s credit risk may be exacerbated when the collateral
held by Crédit Agricole CIB cannot be disposed of or is liquidated
at prices not sufficient to recover the full amount of Crédit
Agricole CIB’s exposure under the loans or derivatives in default.
The exit or termination of public support schemes, increased
market volatility, expectations of inflation, rising interest rates and
government debt levels, could generate further deterioration in the
risk profile of client banks and insurance companies.
Crédit Agricole CIB seeks to reduce its exposure to credit risk by
using risk mitigation techniques such as collateralisation, obtaining
guarantees, entering into credit derivatives and entering into
netting contracts. Only a portion of Crédit Agricole CIB’s overall
credit risk is covered by these techniques.
The average portfolio quality remains good with a proportion of
investment grade ratings of 86% at 31 December 2021.
As at 31 December 2021, the amounts of risk-weighted assets
(RWA) related to credit risks, except those related to securitisation
(covered in §D) and except sovereign assets (covered in §E), was
€71.9 billion, equal to 54% of total risk-weighted assets.
B – Any significant sector or individual concentration
could impact Crédit Agricole CIB financial situation
Like Crédit Agricole CIB’s competitors, the Corporate and
Investment Bank’s clients are often large multinationals or major
financial institutions which by their very nature, in addition to
individual creditworthiness issues, generate a concentration
risk, which is normal for a corporate and investment bank. The
refocusing strategy applied since the financial crisis has slightly
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reduced the number of counterparties and geographical sites,
and has therefore resulted in a relative increase in the portfolio
concentration. Any downgrade of the rating, or any default or
insolvency of such a large counterparty could have a negative
impact on Crédit Agricole CIB’s business activities, results and
financial position.
However, the Bank is still active in a large number of countries
and economic sectors, thus benefiting from the positive effect of
sectoral and geographical diversification. Nevertheless, Crédit
Agricole CIB is subject to the risk that certain events may have
a significant impact on a particular industrial sector to which it is
significantly exposed. For example, energy sector borrowers are
subject to risks relating to volatility in energy prices.
As at 31 December 2021, the four major economic sectors of
Crédit Agricole CIB were those of Banks accounting for €85 billion
or 20.3% of total commitments net of export credit guarantees, Oil
& Gas for €37 billion (8.8%), Other non banking financial activities
for €27 billion (6.3%) and Real estate for €19 billion (4.5%).
C – Crédit Agricole CIB is subject to counterparty
risk on market transactions
Counterparty risk on market transactions is the manifestation of
credit risk in connection with market transactions, investments
and/or settlements. While Crédit Agricole CIB often obtains
collateral or uses setoff rights to address these risks, these
may not be sufficient to protect it fully, and Crédit Agricole CIB
may suffer significant losses as a result of defaults by major
counterparties.
The amount of this risk varies over time with changes in market
parameters affecting the potential future value of the transactions
concerned.
Risk-weighted assets specific to this risk amounted to €18.2
billion as at 31 December 2021.
D – Crédit Agricole CIB is exposed to credit risk
related to securitisation transactions
Crédit Agricole CIB is exposed to credit risk in connection with its
securitisation transactions on behalf of clients. Crédit Agricole CIB
(through the Global Markets Division) acts as originator and
sponsor for its Corporate or Financial institutions clients.
The vast majority of the product line’s exposures come from the
securitization conduit business, in which Crédit Agricole CIB is one
of the leading global players. The conduits are designed to finance
Crédit Agricole CIB’s large clients, primarily in Europe, by issuing
Asset-Backed Commercial Paper (ABCP) to external investors,
primarily in the United States. Crédit Agricole CIB fully supports
these multi-seller issuance programs through liquidity lines, thus
fully guaranteeing liquidity and credit risks. Crédit Agricole CIB
notably sponsors the LMA conduit in Europe and the Atlantic and
Lafayette conduits in the US. Crédit Agricole CIB favors traditional
asset classes, notably trade receivables and auto loans/leases,
over complex and atypical ones.
The credit risk arising from securitization transactions is
composed of two major risk families. On the one hand, portfolio
risk corresponds to credit risk exposure related to assets (default
risk of debtors, concentration risk). Secondly, seller/servicer risk
relates to the customers financed, and comprises commingling
risk (risk that collections cannot be transferred to the securitization
structure in the event of the seller/servicer’s bankruptcy), dilution
risk (risk that the seller grants the assigned debtor a reduction in
the value of the securitized receivables) and set-off risk (risk that
the securitized receivables are offset by claims from the obligors).
Crédit Agricole CIB has put in place mechanisms to protect
against these risks (e.g., insurance of the assets); however, the
materialization of these risks could result in credit losses for
Crédit Agricole CIB.
Risk-weighted assets related to this risk amounted to €9.9 billion
as at 31 December 2021.
E – Crédit Agricole CIB is exposed to country and
sovereign risks
As a result of its exposure on numerous countries on all
continents, Crédit Agricole CIB is exposed to country risk when
the deterioration in the environment or the economic, financial,
political or social situation of a country affects the Bank’s
activities and the quality of the counterparties in that country.
Crédit Agricole CIB monitors country risk and takes it into account
in the fair value adjustments and cost of risk recorded in its
financial statements. However, a significant change in political or
macroeconomic environments may require it to record additional
charges or to incur losses beyond the amounts previously written
down in its financial statements. In addition, Crédit Agricole CIB
has significant exposures in countries outside the OECD, which
are subject to risks that include political instability, unpredictable
regulation and taxation, expropriation and other risks that are less
present in more developed economies.
Crédit Agricole CIB’s exposures are distributed between the
following geographic regions: France, other Western European
countries, and North America. On all sectors, Crédit Agricole CIB
exposures’ amount is respectively as at 31 December 2021 of
€120 billion, €120 billion and €70 billion representing respectively
28%, 29% and 17% of the total exposures. Besides, commercial
commitments in the countries which are rated as non investment
grade on the internal rating scale amounted to 14% of total
exposures.
Crédit Agricole CIB is also exposed to sovereign risk under its
various commitments to sovereign counterparties (in the event that
they default or are unable to meet their contractual obligations).
The rise in sovereign debt due to the sanitary crisis increases this
risk. Risk-weighted assets specific to this risk amounted to €2.3
billion as at 31 December 2021.
At the end of February 2022, the tensions between Russia and
Ukraine led to a military conflict. The magnitude and duration of
this war, as much as the financial and economic impacts, both
local and global are hard to predict. Crédit Agricole CIB may
be subject to losses due to its direct and indirect exposure to
Russia. In Russia, the exposures booked in Crédit Agricole CIB
AO subsidiary represent €540 million at 31 December 2021.
All of the credit portfolio is locally refinanced. The capital of the
subsidiary amount to approximately €150 million, of which €80
million in equity and €70 million in subordinated debt. The bulk of
assets consists in loans to local corporates, mainly in rubles, one-
third of which benefits from the parent company’s guarantee and
of a sovereign exposure corresponding to the excess liquidity of
the subsidiary deposited short term at the Central Bank of Russia
in the context of its regulatory liquidity and ratio requirements. The
exposures booked outside of Crédit Agricole CIB AO, so-called
off-shore exposures, can be split into on-balance sheet and off-
balance sheet. The on-balance share of off-shore exposures
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154
amounts to €2.9 billion as of 31 December 2021. This portfolio
mainly pertains to fifteen large Russian corporates, notably
producers and exporters of commodities, leaders on the market
in key economic sectors of their country. Its quality is strong: 96%
of the portfolio is rated investment grade in the internal rating
scale as of end December 2021. It is mainly corporate finance
for 62%, trade finance for 25% and the rest corresponds to asset
financing (aerospace, project, shipping). The off-balance sheet
share of off-shore exposures amounts to around €1.5 billion
as of 31 December 2021. It is mainly corresponding to short-
term trade finance activities (in particular documentary credit
and financial guarantees), and, to a lesser extent, to confirmed
un-drawn credit facilities. Forward foreign exchange transactions
were also contracted with Russian counterparties. The market
value of this transactions, sensitive to ruble/dollar parity reached
€60 million as of 31 December 2021. This figure represented
the counterparty risk associated with this date. Moreover, Crédit
Agricole Indosuez Wealth Management Russian exposures
amounted around €250m as of 31 December 2021. All in, these
exposures, which are of a limited size and of good quality, are
under a close monitoring.
2. FINANCIAL RISKS
Financial risks cover the risks associated with the environment in
which Crédit Agricole CIB operates, in particular market risk, risk
of change in the value of equity investments, foreign exchange
risk, liquidity risk, risk of change in the value of the securities
portfolios (or issuer risk) and global interest rate risk.
A – The evolution of financial market conditions
could impact Crédit Agricole CIB results
Crédit Agricole CIB’s businesses are materially affected by
conditions in the financial markets, which in turn are impacted
by current and anticipated future economic conditions in France,
Europe and in the other regions around the world where Crédit
Agricole CIB operates. In particular, the risks to which Crédit
Agricole CIB is therefore highly exposed include fluctuations in
interest rates, security prices, foreign exchange rates, its own
issuer spread and the prices of oil, precious metals and other
commodities.
Protracted market movements, particularly asset price declines,
may reduce the level of activity in the market or reduce market
liquidity. Such developments can lead to material losses if Crédit
Agricole CIB cannot close out deteriorating positions in a timely
manner. This may especially be the case for assets held by Crédit
Agricole CIB that are not very liquid at the outset. Assets that are
not traded on stock exchanges or other public trading markets,
such as derivatives contracts between banks, may have values
that Crédit Agricole CIB calculates using models other than
publicly-quoted prices. Monitoring the deterioration of prices of
assets like these is difficult and could lead to losses that Crédit
Agricole CIB has not anticipated.
In the course of 2021, Crédit Agricole CIB was strongly mobilized
to prepare for the new benchmark indices which replaced BOR
indices. This reform generates new types of market risks. Indeed,
the abundance of replacement indices generates not only risks
related to the valuation of these new indices and their correlation,
but also uncertainty about their quality and sustainability.
Risk-weighted assets specific to market risk amounted to
€9.1 billion as at 31 December 2021.
B – Crédit Agricole CIB is exposed to the risk of
change in the value of its securities portfolio
Securities held in the banking book and recognised at fair value
are purchased by Crédit Agricole CIB primarily for the purpose
of managing liquidity reserves. Their value may fall as a result
of changes in interest rates or in the credit quality of the issuer,
in respect of debt securities (Credit Spread Risk in the Banking
Book (CSRBB)) or as a result of a fall in the stock market price,
in respect of listed shares.
The carrying amount of Crédit Agricole CIB’s securities and
derivatives portfolios and certain other assets, as well as that of
its own debt, in its balance sheet are adjusted at each financial
statement date. Most of the adjustments are made based on
changes in the fair value of Crédit Agricole CIB’s assets or liabilities
during an accounting period, with the changes recorded either
in the income statement or directly in shareholders’ equity. The
fact that fair value adjustments are recognised in one accounting
period does not mean that further adjustments will not be
necessary in subsequent periods.
As at 31 December 2021, the gross outstanding debt securities
held by Crédit Agricole CIB were close to €34 billion. Accumulated
impairments and reserves and negative fair value adjustments due
to credit risk were €37 million.
C – Crédit Agricole CIB is exposed to Foreign
exchange risk
Crédit Agricole CIB is not exposed to operational foreign exchange
risk, resulting from results in non-euro currencies, as results in
non-euro currencies are systematically hedged.
Structural foreign exchange risk results from Crédit Agricole CIB’s
long-term investments in assets denominated in foreign
currencies, mainly the equity of its foreign operating entities,
whether they result from acquisitions, transfers of funds from
head office or the capitalisation of local earnings. These positions
are not fully hedged. The Group’s policy for managing structural
foreign exchange positions aims at achieving two main goals: i/
regulatory, to protect the Group’s solvency ratio against currency
fluctuations; ii/ proprietary interests, to reduce the risk of loss of
value for the assets under consideration. The unhedged part is
subject to structural foreign exchange risk.
Any unfavourable change in exchange rates will affect the value
of unhedged long-term investments.
Crédit Agricole CIB main structural foreign exchange gross
positions are in US dollars, in currencies linked to the US dollar
– mainly Middle East currencies and some Asian currencies – in
UK pound and in Swiss francs.
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D – Crédit Agricole CIB is exposed to liquidity
availability and liquidity price risks
Liquidity risk has two aspects: liquidity availability risk and
liquidity price risk. With regard to liquidity availability risk,
Crédit Agricole CIB is exposed to the risk that its equity and
liabilities, including clients’ deposits, short-term market funds and
long-term market funds, are insufficient to cover its assets. If this
were the case, Crédit Agricole CIB would be at risk of not having
the necessary funds to meet its commitments. This situation
may result from a systemic crisis (a financial crisis impacting all
operators), an idiosyncratic crisis (specific to the Crédit Agricole
Group or Crédit Agricole CIB) or a combination of both. The
Group’s primary objective in managing liquidity is to ensure that
it has sufficient resources to meet its requirements in the event
of any type of severe, prolonged liquidity crisis, at a reasonable
price. As at 31 December 2021, Crédit Agricole CIB’s liquidity
coverage ratio (LCR), the prudential ratio to ensure the short-term
resilience of the liquidity risk profile, was 164%, greater than the
regulatory minimum of 100%, and greater than the target of 110%
under the medium-term Plan.
Liquidity price risk is the risk of additional financial costs caused
by a change in refinancing spreads. Crédit Agricole CIB’s cost of
obtaining long-term unsecured funding from market investors, is
directly related to its credit spread (the amount paid to investors
in debt instruments issued by Crédit Agricole CIB, in excess of
the interest rate of government securities of the same maturity).
Changes in credit spreads are continuous, market-driven, and
subject at times to unpredictable and highly volatile movements.
Credit spreads are also influenced by market perceptions of the
issuer’s creditworthiness, reflected in its credit rating.
Credit ratings have a significant impact on Crédit Agricole CIB’s
liquidity, both in terms of availability and price. A significant
rating downgrade could have a significant adverse impact
on Crédit Agricole CIB’s liquidity and competitiveness. In
relation to availability, ratings influence the amount of liquidity
Crédit Agricole CIB can borrow on the markets; they may also,
in the event of a significant deterioration, generate an additional
liquidity requirement impacting obligations under certain trading,
derivatives and hedging contracts. In relation to price, a better
rated issuer will benefit, everything else being equal, from a lower
price.
The Group’s ratings from Moody’s, S&P Global Ratings and Fitch
Ratings are Aa3 [stable perspective], A+ [stable perspective] and
AA- [stable perspective], respectively, at 31 December 2021.
E – Any significant variation in the the value of equity
investments could impact Crédit Agricole CIB
results
Crédit Agricole CIB holds equity securities in various Crédit
Agricole Group entities (for instance, Crédit Agricole Egypt), but
also in external entities as part of its activities (for instance in
stock exchanges). Equity securities held by Crédit Agricole CIB in
strategic investments could fall in value, requiring it to recognise
impairment charges in its consolidated financial statements,
which could negatively impact its results of operations and
financial position. Crédit Agricole CIB’s degree of control may
be limited, and any disagreement with other shareholders or
with management may adversely impact the ability of Crédit
Agricole CIB to influence the policies of the relevant entity.
As at 31 December 2021, the carrying amount of securities owned
by Crédit Agricole CIB was around €0.2 billion, principally in
relation to Crédit Agricole Egypt.
F – Crédit Agricole CIB is exposed to variations in
interest rates
Overall interest rate risk or interest rate risk in the banking book of
a financial institution (IRRBB) is the risk incurred when a change
in interest rates occurs, as a result of all balance sheet and off-
balance sheet transactions, other than transactions subject to
market risk. Any significant change in interest rate could adversely
affect Crédit Agricole CIB’s consolidated revenues, equity or
profitability.
Crédit Agricole CIB’s exposure to overall interest rate risk on client
transactions is limited given that the majority of loans and deposits
are at variable rates, and given the interest rate matching rule for
each customer financing with the Treasury. Interest rate risk is
primarily derived from equity capital and equity investments, the
modelling of non-interest-bearing liabilities and from maturities of
less than one year from the Treasury activities of the banking book.
Crédit Agricole CIB is mainly exposed to changes in interest rates
in the eurozone and, to a lesser extent the US Dollar.
Thus, in terms of net banking income sensitivity for the first
year, Crédit Agricole CIB could lose €163 million of revenues in
case of a 200-basis-point decrease in interest rates, excluding
TLTRO, i.e. a 2.75% sensitivity for a reference net banking
income of €5,913 million in 2021. Based on these same
sensitivity calculations, the net present value of the loss incurred
in the next ten years in the event of an adverse 200 basis point
movement in the yield curve equals 0.74%, i.e.€206 million of
Crédit Agricole CIB equity.
3. OPERATIONAL RISKS
Crédit Agricole CIB’s operational risk is the risk of loss resulting
from faulty or inadequate internal processes (particularly those
involving staff and IT systems) or from external events, whether
deliberate, accidental or natural (floods, fires, earthquakes,
terrorist attacks, etc.).
Within operational risk, non-compliance risks and legal risks can
be distinguished (A) from the other risks of losses arising from
inadequate or deficient internal processes, staff and systems or
from external events which are grouped into “Other operational
risks” (B).
Risk-weighted assets specific to these risks amounted to
€22.2 billion as at 31 December 2021.
A – Crédit Agricole CIB is exposed to non-
compliance risks and legal risks
a)
Crédit Agricole CIB is exposed to the risk of fraud
The mission of the Compliance function is to act as second line of
defence, in partnership with the businesses, to protect the bank,
its employees and its clients, in particular by combating financial
crime and more particularly by preventing money laundering,
terrorist financing and fraud.
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In a context of increasing attempts at external fraud and of more
complex operating methods (notably via cybercrime), actions have
been taken constantly and regularly to prevent, raise awareness,
detect, and, when necessary, following attempts or proven fraud
cases, to start legal proceedings or sanctions. Businesses invest
in research and development to reinforce the tools deployed
to combat external fraud, through innovative solutions and the
development of client service on means of payment.
Over the period 2019-2021, the breakdown of Crédit
Agricole CIB’s operational losses due to internal and external
fraud amounted to around 53% of its total operating losses.
The “internal fraud” category represented 52% of operational
losses. External Fraud represented 1% of operational losses,
excluding cross-border credit risk, consisting of external fraud
incidents committed by or at clients that generated or aggravated
credit losses. According to Basel principles, those losses were
recognised in cost of credit risk.
b)
Crédit Agricole CIB is exposed to the risk of
paying high damages or fines: risk arising from legal,
arbitration or administrative proceedings which could
be initiated against it
Crédit Agricole CIB has in the past been, and may in the future
be, subject to significant legal proceedings (including class
action lawsuits), arbitrations and regulatory proceedings. When
determined adversely to Crédit Agricole CIB, these proceedings
can result in awards of high damages, fines and penalties. Legal
and regulatory proceedings to which Crédit Agricole CIB has
been subject involve issues such as collusion with respect to
the manipulation of market benchmarks, violation of international
sanctions, inadequate controls and other matters. While Crédit
Agricole CIB in many cases has substantial defences, even where
the outcome of a legal or regulatory proceeding is ultimately
favourable, Crédit Agricole CIB may incur substantial costs and
have to devote substantial resources to defending its interests.
Organised as a business line, the Legal Affairs Department has
two main objectives: to control legal risk, which can give rise to
disputes and civil, disciplinary or criminal liabilities, and to provide
the legal support needed by entities to enable them to carry out
their activities.
At the end of December 2021, provisions on operational risks
amounted to €414 million for Crédit Agricole CIB. This amount
includes legal risks costs.
The international scope of Crédit Agricole CIB’s operations
exposes it to risks inherent in foreign operations, including
the need to comply with multiple and often complex laws and
regulations applicable to activities in each of the countries in
which Crédit Agricole CIB is active, such as local banking laws
and regulations, internal control and disclosure obligations,
data privacy restrictions, European, US and local anti-money
laundering and anti-corruption laws and regulations and
international sanctions. Breaches of these laws and regulations
could damage Crédit Agricole CIB’s reputation, result in litigation,
civil or criminal penalties, or otherwise have a material adverse
effect on its business activities. At end-2021, Crédit Agricole CIB
had operations in 37 countries. This scope includes the parent
entity, its subsidiaries and their branches. It does not include
held-for-sale and discontinued operations, nor any entities
consolidated using the equity method. At the end of 2021, 71%
of Crédit Agricole CIB net banking income (excluding intragroup
eliminations) came from France and Europe.
To illustrate, in October 2015, Crédit Agricole CIB and its parent
company, Crédit Agricole S.A., reached agreements with the US
federal and New York State authorities that had been conducting
investigations regarding US dollar transactions with countries
subject to US economic sanctions. The events covered by
this agreement took place between 2003 and 2008. Crédit
Agricole CIB and Crédit Agricole S.A., which cooperated with
the US federal and New York State authorities in connection
with their investigations, have agreed to pay a total penalty in the
amount of $787.3 million (i.e., €692.7 million).
B – Crédit Agricole CIB is exposed to other
operational risks including Information System
Security risks
Other operational risks include risks of losses resulting from
inadequate or defective processes, staff and internal systems
or external events, excluding fraud which is covered in A. Over
the period 2019 to 2021, Crédit Agricole CIB’s operational risk
incidents covered the following: the “Execution, delivery and
process management” category represented 34% of operational
losses, the “employment practices” category represented 10%
of operational losses and the “clients and commercial practices”
category represented 3%. Finally, “business disruptions and
system failures” incidents accounted for 1% of operational losses.
The remaining part of operational losses comes from events
related to fraud which is covered in A.
Risks related to the security of information systems have become
a priority, not because of the historical losses (in the “business
disruptions and system failures” category referred to above), but
due to the emergence of new forms of risk. Crédit Agricole CIB is
subject to cyber risk, i.e., the risk of a virtually committed malicious
and/or fraudulent act aimed at manipulating information (personal,
banking/insurance, technical or strategic data), processes and
users with a view to causing significant losses to companies, their
employees, partners and clients.
Like most other banks, Crédit Agricole CIB relies heavily on
communications and information systems throughout the Group
to carry out its business. Any failure or interruption or breach of
security of these systems could result in failures or interruptions
in its client relationship management, general ledger, deposit,
servicing and/or loan organisation systems and give rise to
significant costs.
Crédit Agricole CIB is also exposed to the risk of an operational
failure or interruption of one of its clearing agents, foreign
exchange markets, clearing houses, custodians or other financial
intermediaries or external service providers that it uses to execute
or facilitate its securities transactions. As its interconnectivity
with its clients grows, Crédit Agricole CIB may also become
increasingly exposed to the risk of operational failure of its clients’
information systems.
The risk of non-continuity of operations did not materialize during
the Covid crisis: the business continuity plan and the use of
teleworking allowed production capacities to be maintained.
However, the persistence of teleworking raises the question of
respect for confidentiality in remote work, without any incident
identified at this stage, and the question of reviewing the specific
authorizations granted in this context. Psycho-social risks are
monitored with vigilance.
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4. BUSINESS RISK
Business risks covers on the one hand the systemic risk: global
risk related to the macroeconomic, political and regulatory
environment (in particular, the prudential and tax environment),
and on the other hand the strategic risk: the risk linked to losses or
falls in revenue or profits due to decisions over Crédit Agricole CIB
strategic choices and/or competitive positioning.
A - Potential negative impact of adverse economic
and financial conditions could expose Crédit
Agricole CIB to systemic risk which would impact
its activities and financial situation
The businesses of Crédit Agricole CIB are specifically and
significantly exposed to changes in financial markets and to the
development of the economic conditions in France, Europe and
the rest of the world. In the financial year ended 31 December
2021, 41% of Crédit Agricole CIB’s net banking income were
generated in France, 30% in Europe, 29% in the rest of the
world. A deterioration in economic conditions in the markets
where Crédit Agricole CIB operates could have one or more of
the following impacts:
y
adverse economic conditions would affect the business and
operations of clients of Crédit Agricole CIB, which could
decrease its revenues and increase the rate of default on
loans and other receivables, generating additional cost of
risk for Crédit Agricole CIB;
y
a fall in bond, equity and commodity prices could impact a sig-
nificant proportion of Crédit Agricole CIB’s business activities;
y
macro-economic policies adopted in response to actual or
anticipated economic conditions could have unintended
effects, and may impact market parameters such as interest
rates and foreign exchange rates, which in turn could affect
the businesses of Crédit Agricole CIB that are most exposed
to market risk;
y
perceived favourable economic conditions generally or in
specific business sectors could result in asset price bubbles
which could in turn exacerbate the impact of corrections if
conditions became less favourable;
y
a significant economic disruption (such as the global financial
crisis of 2008 or the European sovereign debt crisis of 2011)
could have a severe impact on all of the activities of Crédit
Agricole CIB, particularly if the disruption is characterised by an
absence of market liquidity that makes it difficult to sell certain
categories of assets at their estimated market value or at all;
Over 2021, uncertainties related to the health situation were
perpetuated in Europe, with improvements coming from
vaccination and booster vaccination campaigns being offset by
the emergence of new and more contagious variants of the virus.
New restrictive measures were put in place in some European
countries (limitations, curfews, lockdown measures and border
closures, etc.) which have caused economic slowdown and have
weighted on economic agents’ confidence. It cannot be excluded
that other measures have to be rolled out in the future, even in
countries where the vaccination rate is high. Moreover, there is
still strong uncertainty over the effective damages caused by the
crisis to the system of production (business failures, bottlenecks
on the worldwide supply chains) and to the labour market
(unemployment), which are currently limited by the impact of
budgetary and monetary measures to support the economy. The
pace at which governments and central banks (and notably the
European Central Bank) will phase out these measures generates
uncertainties. In this context, the European commission revised
its growth forecasts for the year 2022 last October, to 4.3% for
the Euro zone and to 3.8% for France. Moreover, the pandemic
spreads unequally over the globe, in particular in some emerging
countries which are struggling to control the virus. Restrictive
governmental measures were thus maintained, which disrupt
world trade, supply chain and international mobility.
Despite economic support measures put in place in numerous
countries, the pandemic impact on economy and financial markets
at international level have had and may still have a negative impact
on Crédit Agricole CIB’s results and financial situation. In this
respect, the government controls and travel bans implemented
around the world as a response to the health crisis have caused:
y
Travel bans or restrictions to freedom of assembly, which
impacted a large range of sectors: air transport, cruise, res-
taurants, international tourism, events;
y
Slowdown or complete disruption to global supply chains
and a slowdown in investment (in the automotive sector for
instance), causing shocks in supply and demand that have
given rise to a marked slowdown in economic activity;
y
Structural changes in consumer habits, for instance in the
sectors of non-food retailing. Besides, commercial real estate
is also subject to increased vigilance, as the crisis accelerated
pre-existing threats in some segments, as malls which face
the competition from on-line purchases, and offices which
have to cope with increased remote working;
y
Finally, Significant impacts on financial markets, with increased
volatility, stock market indices declining precipitously, falls
in commodity prices and credit spreads widening for many
borrowers and issuers.
The diversification in Crédit Agricole CIB business lines and
investments already initiated have limited these risks: the year
2021 shows that certain businesses or sectors are taking over
when others are lagging behind. This was the case both in capital
markets activities, where the growth of equity activities is already
producing very promising results, and in commercial banking.
However, the economic sectors in which Crédit Agricole CIB
operates have been affected in different ways by the health and
economic context. Those in which the deterioration of risk profile is
most marked include: the maritime sector (notably ports, bulkers,
cruises, tankers), which represents 2.6% of Crédit Agricole CIB‘s
exposures, aeronautics (in particular airlines), which represents
3.6% of exposures, real estate (and notably hotels), representing
4.5% of Crédit Agricole CIB ‘s exposures, the Oil & Gas sector
(Oil services, offshore), representing 8.8% of exposures, and the
automotive sector (rental companies), representing 3.2% of Crédit
Agricole CIB ‘s exposures at 31 December 2021.
The deterioration of the risk profile in the various sectors
mentioned above is reflected in the cost of risk for Crédit Agricole
CIB, and in additional risk-weighted assets reflecting a decline in
the internal credit ratings of clients. These two factors combined
reduce Crédit Agricole CIB ‘s profitability. The year 2020 was
characterized by a very high cost of risk (824 million euros for
corporate and investment banking), including the negative outlook
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for these sectors: most of the cost of risk came from stages 1 &
2 on non-defaulted loans (IFRS9 forward-looking provisioning).
The cost of risk for 2021 is lower (49 million euros for corporate
and investment banking. In terms of risk-weighted assets, an
increase was registered in the year 2020 of +5.4 billion euro
generated by the deterioration of clients’ internal ratings and by
+2.2 billion euros for the year 2021. At end December 2021, the
CET1 ratio of Crédit Agricole CIB was 11.7%, stable compared
to end December 2020. The cost of risk and internal ratings of
Crédit Agricole CIB clients could continue to be impacted by
the evolution of the sanitary and worldwide economic situation
in 2022.
Moreover, the conflict between Russia and Ukraine, as well
as economic sanctions measures against Russia adopted
in response by a number of countries (including France, the
European Union, the United Kingdom and the United States)
may have widespread economic and financial repercussions.
The conflict has exacerbated the global markets instability with
a negative impact on stock market indices, rising commodity
prices (particularly oil, natural gas and agricultural products such
as wheat), the worsening of supply chains disruption, the rising
production costs and additional inflationary pressures beyond
those already observed in recent months. These difficulties for the
global economy and the financial markets could have significant
negative impact for Crédit Agricole CIB and its clients, notably
on the cost of risk. These conditions may continue or worsen
progressively as the conflict evolves.
Beyond the Covid-19 crisis and the Russia-Ukraine, Crédit
Agricole CIB’s operations could be disrupted and its activities,
results and financial position could therefore be materially
adversely impacted by other sources:
y
A deterioration in the global landscape would lead to further
easing of monetary policies, combined with higher risk aversion
leading to prolonged maintenance of very low interest rates in
the countries judged riskless (including Germany and France);
y
The political and geopolitical context – more divisive and
tense – is a source of greater uncertainty and increases
the overall level of risk. This can lead, in the event of rising
tensions or the materialisation of latent risks, to some major
market movements and can weigh on economies: trade wars,
tensions in the Middle East, in Eastern Europe, social and
political crises around the world, etc.;
y
In Italy, a political crisis, against the backdrop of already low
growth and high public debt, would have a negative impact
on confidence and the economy, and could also cause a
rise in interest rates and in the cost of refinancing for the
government and the banks. It could also lead to losses on
the sovereign portfolios of banks and insurers.
y
In France, there could also be a significant fall in confidence in
the event of a more marked deterioration of the social context
which could lead households to consume less and save more
as a precaution, and companies to delay investments, which
could be harmful to growth and to the quality of credit.
y
The very low level of interest rates leads investors, seeking
yield, to move towards riskier assets; it leads to the formation
of bubbles in financial assets and in certain real estate markets.
It also leads private clients and governments to take on debt
at sometimes very high levels. This increases the risks in the
event of a market downturn.
B - Potential unfavourable impact of changes in laws
and regulations could expose Crédit Agricole CIB
to systemic risk which could affect its activities
and results
A variety of regulatory and supervisory regimes apply to
Crédit Agricole CIB in each of the jurisdictions in which Crédit
Agricole CIB operates.
By way of illustration, such regulations pertain to, in particular:
y
regulatory and supervisory requirements applicable to credit
institutions, including prudential rules on capital adequacy and
minimum capital and liquidity requirements, risk diversification,
governance, restrictions on the acquisition of holdings and
compensation (CRR and CRD4);
y
rules applicable to bank recovery and resolution (BRRD);
y
regulations governing financial instruments (including bonds
and other securities issued by Crédit Agricole CIB), as well as
rules relating to financial information, disclosure and market
abuse (MAR);
y
monetary, liquidity, interest rate and other policies of central
banks and regulatory authorities;
y
regulations governing certain types of transactions and invest-
ments, such as derivatives, securities financing and money
market funds (EMIR);
y
regulations on market infrastructure, such as trading platforms,
central counterparties, central securities depositories and
securities settlement systems;
y
tax and accounting laws, as well as rules and procedures
relating to internal control, risk management and compliance;
In addition, Crédit Agricole CIB is supervised by the ECB, and
contributes to the Crédit Agricole Group’s recovery plan submitted
each year, in accordance with applicable regulations.
Failure to comply with these regulations could have significant
consequences for Crédit Agricole CIB: significant interventions
by regulatory authorities and fines, international sanctions, public
reprimands, reputational damage, enforced suspension of its
operations or, in extreme cases, withdrawal of its authorisations
to operate. In addition, regulatory constraints could significantly
limit the ability of Crédit Agricole CIB to expand its business or
to carry on certain existing business activities.
Furthermore, some legal and regulatory measures have come
into force in recent years or could be adopted or amended with
a view to introducing or reinforcing a number of changes, some
permanent, in the global financial environment. While the objective
of these measures is to avoid a recurrence of the global financial
crisis, the new measures have changed substantially, and may
continue to change, the environment in which Crédit Agricole CIB
and other financial institutions operate. The measures that have
been or may be adopted include more stringent capital and
liquidity requirements (particularly for large global institutions
and groups such as Crédit Agricole S.A.), taxes on financial
transactions, caps or taxes on employee compensation over
specified levels, limits on the types of activities that commercial
banks can undertake (particularly proprietary trading and
investment and holdings in private equity funds and hedge
funds), ring fencing requirements relating to certain activities,
restrictions on the types of entities permitted to enter into swaps,
restrictions on certain types of activities or financial products
such as derivatives, mandatory write-downs or conversions
into equity of certain debt instruments in the event of resolution
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proceedings, enhanced recovery and resolution regimes, revised
risk-weighting methodologies, periodic stress testing and the
creation of new and strengthened regulatory bodies. Some of the
new measures adopted after the financial crisis are expected to
soon be modified, impacting the predictability of the regulatory
regimes to which Crédit Agricole CIB is subject.
As a result of some of these measures, Crédit Agricole CIB has
been compelled to reduce the size of certain of its business
activities in order to comply with the new requirements created
by the measures. These measures also lead to increased
compliance costs and are likely to continue to do so. In addition,
some of these measures may also significantly increase Crédit
Agricole CIB’s funding costs, particularly by requiring Crédit
Agricole CIB to increase the portion of its funding consisting of
capital and subordinated debt, which carry higher costs than
senior debt instruments.
Nevertheless, a number of adjustments and regulatory changes
(as well as delays regarding the date of application of certain
rules, particularly those relating to prudential requirements) were
made by the national and European authorities in the first half of
2020 linked to the current Covid-19 health crisis. Some of these
measures will be reversed at a short-term horizon, but it is still
unclear if the other adjustments, developments and changes in
regulations as a result of the health crisis will be long-term or
temporary, and it is therefore impossible at this stage to determine
or measure their impact on Crédit Agricole CIB.
C - Strategic risk: Crédit Agricole CIB could
potentially fail to achieve the objectives set out in
its medium-term plan
On 6 June 2019, Crédit Agricole S.A. announced its medium-term
plan up to 2022 (the “2022 medium-term Plan”). 2022 is the last
year of this medium term plan.
On 11 December 2019, Crédit Agricole CIB published details of
this plan for its corporate and investment banking activities. The
2022 Medium-term Plan sets out a number of initiatives, including
a distinctive and profitable business model based on (i) targeted
geographical development in order to capture growth notably in
Asia , and (ii) selective growth in a limited number of businesses,
as well as being in line with the Crédit Agricole Group’s project
trajectory.
The 2022 Medium-term Plan includes a number of financial
targets relating to revenues, expenses, net income and capital
adequacy ratios. These financial targets were established primarily
for purposes of internal planning and allocation of resources,
and are based on a number of assumptions with regard to
business and economic conditions. The financial targets do not
constitute projections or forecasts of anticipated results. The
actual results of Crédit Agricole CIB are likely to vary (and could
vary significantly) from these targets for a number of reasons,
including the materialisation of one or more of the risk factors
described elsewhere in this section.
For example, at the end of 2022, Crédit Agricole CIB targets to
generate revenue of around €5 billion, with profitability of more
than 10%.
The plan’s success depends on a very large number of initiatives
(some significant and other modest in scope) within Crédit
Agricole CIB. The 2022 medium-term Plan also provides for
significant investments, but if the objectives of the plan are not
met, the return on these investments will be less than expected.
If Crédit Agricole CIB fails to reach the objectives that were defined
in its 2022 Medium Term Plan, its financial situation and its results
could be impacted significantly.
5. CLIMATE RISK
Crédit Agricole CIB is exposed to the risks incurred
by climate change.
Crédit Agricole CIB is mainly subject to climate risk through
counterparties to which it is exposed. Accordingly, when Crédit
Agricole CIB lends to businesses that carry out activities that
produce significant quantities of greenhouse gases, Crédit
Agricole CIB is subject to the risk that more stringent regulations
or limitations on the borrower’s activities could have a material
adverse impact on its credit quality, causing Crédit Agricole CIB
to suffer losses on its loan portfolio (energy transition risk). As
the transition to a more stringent climate change environment
accelerates, Crédit Agricole CIB will have to adapt its activities
appropriately in order to achieve its strategic objectives and to
avoid suffering losses.
By way of example, the Crédit Agricole Group’s Corporate
Social Responsibility Project, published on December 1, 2021,
provides for a program plan with 10 commitments, at the heart
of all its activities. For Crédit Agricole CIB, the most significant
commitments include the total cessation of all project financing
directly related to the extraction of unconventional hydrocarbons
as of January 2022; the protection of the Arctic zone where
Crédit Agricole CIB excludes all direct financing of oil and
gas projects; and the significant reduction of exposure to oil
extraction by 20% by 2025. As part of the promotion of renewable
energy financing, Crédit Agricole CIB also commits to increase
its exposure to non-carbon energy by 60% by 2025 and to
accelerate the development of its platform dedicated to consulting
and financing of hydrogen projects. Finally, Crédit Agricole CIB
will integrate extra-financial performance criteria in the analysis
of 100% of its corporate financing.
Crédit Agricole CIB is also subject to physical risks, i.e., the risk
that acute weather episodes or a long-term change in climate
models (leading to a rise in water levels, for example) damage its
own facilities or those of its clients. However, Crédit Agricole CIB
is mainly present in countries which would have financial capacity
to deal with the costs triggered by such phenomena, both in terms
of prevention and of damage repair.
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6. RISKS RELATING TO THE STRUCTURE OF THE CRÉDIT AGRICOLE GROUP
1
Articles L. 613-48 and L. 613-48-3 of the CMF
2
Articles L. 613-55 and L. 613-55-1 of the CMF
A - If any member of the Crédit Agricole Network
encounters future financial difficulties, Crédit
Agricole S.A. would be required to mobilise the
resources of the Crédit Agricole Network (including
Crédit Agricole CIB’s resources) to support that
member
Crédit Agricole S.A. is the central body of the Crédit Agricole
Network, consisting of Crédit Agricole S.A., the Regional Banks
and the Local Banks, pursuant to Article R. 512-18 of the French
Monetary and Financial Code (“CMF”), as well Crédit Agricole CIB
and BforBank as affiliate members (the “Network”).
Under the legal internal financial solidarity mechanism enshrined in
Article L. 511-31 of the CMF, Crédit Agricole S.A., as the central
body, must take all measures necessary to ensure the liquidity
and solvency of each affiliated credit institution, as well as the
Network as a whole. As a result, each member of the Network
benefits from and contributes to this internal financial solidarity.
The general provisions of the CMF are reflected in the internal
provisions setting out the operational measures required for this
legal internal financial solidarity mechanism. More specifically, they
have established a Fund for Bank Liquidity and Solvency Risks
(FRBLS) designed to enable Crédit Agricole S.A. to fulfil its role
as central body by providing assistance to any members of the
Network that may experience difficulties.
Although Crédit Agricole S.A. is not currently aware of any
circumstances that may require it to use the FRBLS to support
a member of the Network, there can be no assurance that there
will no need to use the Fund in the future. In such circumstances,
if the resources of the FRBLS were to be insufficient, Crédit
Agricole S.A., as part of its role as the central body, would be
required to make up the shortfall from its own resources and,
where appropriate, those of the other members of the Network,
including Crédit Agricole CIB.
As a result of this obligation, if a member of the Network were to
face major financial difficulties, the event underlying these financial
difficulties could impact the financial position of Crédit Agricole
S.A. and the other members of the Network (including Crédit
Agricole CIB) that are relied upon for support under the financial
solidarity mechanism.
The European banking crisis management framework was
adopted in 2014 by EU Directive 2014/59 (known as the “Bank
Recovery and Resolution Directive - BRRD”), incorporated into
French law by Order 2015-1024 of 20 August 2015, which also
adapted French law to the provisions of European Regulation
806/2014 of 15 July 2014 establishing uniform rules and a
uniform procedure for the resolution of credit institutions and
certain investment firms in the framework of a Single Resolution
Mechanism and a Single Resolution Fund. Directive (EU) 201/879
of 20 May 2019, known as “BRRD2”, amended the BRRD and
was incorporated into French law by Order 2020-1636 of 21
December 2020.
This framework, which includes measures to prevent and to
resolve banking crises, is intended to preserve financial stability,
to ensure the continuity of activities, services and operations of
institutions whose failure could significantly impact the economy,
to protect depositors, and to avoid or limit the use of public
financial support as much as possible. In this context, the
European Resolution Authorities, including the Single Resolution
Board, have been granted extensive powers to take all necessary
measures in connection with the resolution of all or part of a credit
institution or the group to which it belongs.
For cooperative banking groups, the “extended single point of
entry” (“extended SPE”) resolution strategy is favoured by the
resolution authorities, whereby resolution tools would be applied
simultaneously at the level of Crédit Agricole S.A. and the affiliated
entities (including Crédit Agricole CIB). In this respect, and in the
event of a resolution of the Crédit Agricole Group, the scope
comprising Crédit Agricole S.A. (in its capacity as the corporate
centre) and its affiliated entities (including Crédit Agricole CIB)
would be considered as a whole as the expanded single-entry
point. Given the foregoing and the solidarity mechanisms that
exist within the network, a member of the Crédit Agricole network
cannot be put individually in resolution.
The resolution authorities may initiate resolution proceedings
against a credit institution where it considers that: the institution
has failed or is likely to fail, there is no reasonable prospect that
another private measure will prevent the failure within a reasonable
time, a resolution measure is necessary, and a liquidation
procedure would be inadequate to achieve the resolution
objectives mentioned above.
The resolution authorities may use one or more resolution tools,
as described below, with the objective of recapitalising or restoring
the viability of the institution. The resolution tools should be
implemented in such a way that equity holders (shares, mutual
shares, CCIs, CCAs) bear losses first, with creditors following
up immediately, provided that they are not excluded from bail-in
legally speaking or by a decision of the resolution authorities.
French law also provides for a protective measure when certain
resolution tools or decisions are implemented, such as the
principle that equity holders and creditors of an institution in
resolution may not incur greater losses than those they would
have incurred if the institution had been liquidated in the context
of a judicial liquidation procedure under the French Commercial
Code (NCWOL principle referred to in Article L. 613-57.I of the
CMF). Thus, investors are entitled to claim compensation if the
treatment they receive in a resolution is less favourable than the
treatment they would have received if the institution had been
subject to normal insolvency proceedings.
In the event that the resolution authorities decide to put the Crédit
Agricole Group in resolution, they will first write down the CET1
instruments (shares, mutual shares, CCI and CCA), additional
Tier 1 and Tier 2 instruments, in order to absorb losses, and then
possibly convert the additional Tier 1 and Tier 2 instruments into
equity securities
(1)
. Then, if the resolution authorities decide to use
the bail-in tool, the latter would be applied to debt instruments
(2)
,
resulting in the partial or total write-down of these instruments or
their conversion into equity in order to absorb losses.
With respect to the corporate centre and all affiliated entities,
the resolution authorities may decide to implement, in a
coordinated manner, impairment or conversion measures and,
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where applicable, bail-ins. In such an event, the impairment or
conversion measures and, where applicable, Bail-ins measures
would apply to all entities within the Crédit Agricole network,
regardless of the entity in question and regardless of the origin
of the losses.
The creditor hierarchy in resolution is defined by the provisions
of Article L 613-55-5 of the CMF, effective as at the date of
implementation of the resolution.
Equity holders and creditors of the same rank or with identical
rights in liquidation will then be treated equally, regardless of the
group entity of which they are creditors.
The scope of this bail-in, which also aims to recapitalise the
Crédit Agricole group, is based on capital requirements at the
consolidated level.
Investors must then be aware that there is therefore a significant
risk that holders of shares, mutual shares, CCIs and CCAs and
holders of debt instruments of a member of the network will
lose all or part of their investment if a resolution procedure is
implemented on the Group, regardless of the entity of which
they are a creditor.
The other resolution tools available to the resolution authorities
are essentially the total or partial transfer of the activities of
the institution to a third party or to a bridge institution and the
separation of the assets of the institution.
This resolution framework does not affect the legal internal
financial solidarity mechanism enshrined in Article L. 511-31
of the CMF, which applies to the Crédit Agricole network, as
defined in Article R. 512-18 of the same Code. Crédit Agricole
S.A. considers that, in practice, this mechanism should be
implemented prior to any resolution procedure.
The implementation of a resolution procedure to the Crédit
Agricole group would thus mean that the legal internal solidarity
mechanism had failed to remedy the failure of one or more
network entities, and hence of the network as a whole.
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2.
RISK MANAGEMENT
This section of the management report presents the risk appetite of the Crédit Agricole CIB Group, the nature of the main risks the Group
is exposed, the magnitude and the arrangement put in place to manage these risks.
The information presented in accordance with IFRS 7, relating to disclosures on financial instruments covers the main following risk types
(1)
:
y
Credit risks;
y
Market risks;
y
Structural risk of balance sheet management: global interest risk, foreign exchange risk and liquidity risk, including risks of the
issuance sector.
To cover all the inherent risk to the banking activity, additional information is provided concerning:
y
Operational risks;
y
Legal risks;
y
Non-compliance risks.
In accordance with regulatory provisions and the profession’s good practices, the risk management within Crédit Agricole CIB Group
results in governance in which each role and responsibility is clearly identified, as much as in methodologies and effective and reliable risk
management procedures in order to measure, monitor and manage all the risks incurred at the Group level.
2.1. CONCISE STATEMENT ON RISKS
Statement prepared in compliance with Article 435(1)(f) of Regulation (EU) No. 575/2013.
Crédit Agricole CIB has learned from the 2007/2008 crisis and has considerably reduced its risk appetite, primarily by suspending
or cutting back on some of its market activities. Its strategic guidelines and management and control systems have therefore
been scaled in such a way as to maintain a controlled risk profile which is adapted to well thought out commercial ambitions,
an uncertain economic climate and greater regulation.
This model has proven its resilience since 2011 by generating sustainable profitability, with recurring revenue, while retaining
little exposure to market volatility. The risk profile is low, as it is based on a conservative approach.
The Board of Directors approved Crédit Agricole CIB’s risk appetite for the first time on 30 July 2015. It is updated regularly
and at least annually by the Board to ensure that it remains consistent with the financial objectives of Crédit Agricole CIB
and that it reflects the regulatory constraints, in particular Pillar II. The 2021 risk appetite was approved by the Board on
10 December 2020.
(1) This information is an integral part of the consolidated financial statements as of 31 December 2021 and, as such, it is covered by the Statutory Auditors’ report on the
consolidated financial statements.
2.1.1 RISK APPETITE FRAMEWORK
CRÉDIT AGRICOLE GROUP APPROACH AND RISK
LEVELS
In accordance with the Group’s approach, Crédit Agricole CIB
expresses its risk appetite qualitatively as well as quantitatively
based on key indicators, the most significant of which are broken
down into several risk levels:
y
appetite is used for managing normal everyday risk. It is
expressed in budget targets for solvency and liquidity, and
in operational limits for market and counterparty risks, any
breach of which is immediately flagged up and then reported
to Executive Management for a decision, within the designated
committees or bodies, depending on the indicator;
y
tolerance is used for exceptional management of an increased
level of risk. Any breach of tolerance thresholds triggers
an immediate report both to the Group Risk Management
Department (DRG) and to the Chairman of the Crédit
Agricole CIB Board of Directors Risk Committee, which is
then, if necessary, referred up to the Board of Directors;
y
capacity is the maximum risk that Crédit Agricole CIB could
theoretically take on without infringing its operational or reg-
ulatory constraints
ROLE OF THE BOARD OF DIRECTORS
Crédit Agricole CIB’s risk appetite must be approved by its Board
of Directors, following a proposal by Executive Management
and after it has been examined by the Board of Directors Risk
Committee. Crédit Agricole CIB’s risk profile is examined on a
regular basis (at least quarterly) by the Risk Committee and by
the Board of Directors to ensure that it is still compliant with the
risk appetite which has been defined and, where necessary, the
risk appetite should be adjusted to be in keeping with changes
to the economic climate, regulatory constraints and with Crédit
Agricole CIB’s commercial and financial goals.
RISK APPETITE, SPECIFIC RISK STRATEGIES
AND SECTOR POLICIES
Every business line, country or significant sector of the Bank defines
periodically a risk strategy that is specific to it and consistent with
its financial objectives and its competitive positioning. These
risk strategies are approved by the Strategies and Portfolios
Committee (CSP) chaired by the Executive Management and, if
necessary, by the Group Risk Committee (CRG) chaired by the
Executive Management of Crédit Agricole S.A. for risk strategies
which the shareholder wishes to authorize at its level, and then
lastly, in compliance with the Ministerial Order of 3 November
2014, by the Board of Directors.
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Crédit Agricole CIB has also introduced Corporate Social
Responsibility (CSR) sector policies in cooperation with the Group
as a whole to manage the reputational risks stemming from the
social and environmental impacts of its activities. These policies
set out analysis criteria for these specific risks, which may cause
Crédit Agricole CIB not to complete a transaction which displays
(or in some cases does not display) certain (required or excluded)
characteristics in certain sectors such as armaments, nuclear
or coal (see Chapter 2). Much like the specific risk strategies,
these sector policies are approved by the Strategy and Portfolio
Committee (CSP) and then by the Board of Directors.
Ultimately, Crédit Agricole CIB’s risk appetite therefore comprises
the following five components which form a coherent whole and
incorporate the Bank’s commercial strategy:
i. the overall risk strategy;
ii. the dashboard of key indicators broken down into three risk
levels, monitored quarterly;
iii. this concise statement;
iv. the specific risk strategies (updated periodically);
v. the sector policies.
TYPES OF RISK: RISKS CHOSEN AND ASSUMED
VERSUS RISKS INCURRED
In order to achieve its commercial and financial goals, Crédit
Agricole CIB choses and assumes most of its risks: counterparty
risks, market risks and liquidity risks are taken on intentionally
to generate income and profit. Therefore, Crédit Agricole CIB
defines its appetite by ensuring that risks are in proportion with its
commercial strategy and financial objectives, taking into account
its previous performance, competitive position and the current
economic cycle, while ensuring that all regulatory requirements
(particularly those related to solvency and liquidity) are met.
Other risks such as operational and certain non-compliance
risks are essentially incurred, although the implementation of
protective measures and control systems limits their occurrence
and possible consequences. The Bank has no appetite for these
risks. The Bank’s appetite is then expressed by indicators that
best reflect certain control and monitoring processes designed
to reduce the impact of those risks to an incompressible and
tolerated minimum.
2.1.2 Overall risk profile at 31 December 2021
Crédit Agricole CIB’s strategic choices, expressed within the MTP
2020-2022, have been confirmed by the sanitary crisis,which
persists since the beginning of 2020. Crédit Agricole CIB’s
strategy remains therefore globally unchanged, without major
adjustments. Thus, Crédit Agricole CIB does not plan to close
entities or exit some businesses. Development choices of the
MTP are not questioned, including development plans in Asia
and on the repos activities.
However, limited strategy adjustments were decided. In the
course of 2020, the Global Commodity Finance product line has
gone through a severe crisis which exposed a significant number
of frauds, and required a tightening of the credit granting policy
and of the clients’ classification, as well as an in-depth review of
operational and documentary processes. Crédit Agricole CIB also
put in place heightened vigilance on geopolitical situations and
on the sectors which appear to be particularly vulnerable to the
sanitary crisis: shipping (notably ports, bulkers, cruise, tankers),
aviation (in particular airline companies), real estate (hotels), oil &
gas (Oil services, offshore), and automotive (rental companies).
At 31 December 2021, the overall risk profile of Crédit Agricole CIB
for the risks listed below, was below the tolerance level approved
by its Board of Directors, except for the operational risk indicators
on the Wealth Management perimeter.
GLOBALLY MANAGED RISKS: SOLVENCY AND
LIQUIDITY
SOLVENCY
Key solvency risk indicators include:
y
the Risk-Weighted Assets (RWA) calculated using regulatory
methods;
y
the economic capital originating from the “Internal Capital
Adequacy Assessment Process” (ICAAP – see section 3.1 of
Basel III Pillar 3 disclosures “Internal view of capital adequacy”;
y
the Common Equity Tier 1 (CET1) ratio; and
y
the leverage ratio.
The regulatory RWAs are used to quantify nearly all of Crédit
Agricole CIB’s risks: credit risks, market risks and operational
risks. This key indicator fully expresses the overall quantity of risk
that the Bank is willing to take on (appetite), does not wish to
exceed under any circumstances (tolerance), and the maximum
risk in accordance with the regulatory constraints (capacity).
At 31 December 2021, Crédit Agricole CIB’s regulatory RWAs
stood at €131.1 billion (see section 3.2.1.1 of “Basel III Pillar 3
disclosures”) and were below the Bank’s tolerance threshold.
The internal economic capital needs are calculated using
methodologies more adapted to Crédit Agricole CIB than
the regulatory approaches. This calculation considers risks
not included in Pillar 1, and quantifies them using in-house
methodologies. The internal economic capital needs of Crédit
Agricole CIB are below its tolerance level.
CET1 ratio corresponds to the ratio of Common Equity Tier 1
capital, divided by Crédit Agricole CIB’s risk-weighted assets. At
31 December 2021, the CET1 ratio stood at 11.7% (see section
3.1.6 of “Basel III Pillar 3 disclosures”) and is above the Bank’s
tolerance threshold.
The leverage ratio is defined as Tier 1 capital divided by the
leverage exposure. Leverage exposure is composed of balance
sheet assets and restated off balance sheet assets (restatements
notably relate to conversion factors and derivatives). This
regulatory constraint has to be respected at all time since the
28
th
of June 2021. At 31 December 2021, the leverage ratio stood
at 4.0% (see “Impact of the application of IFRS 9 transitional
provisions” of section 3.1.6 of “Basel III Pillar 3 disclosures”) and
was above the Bank’s tolerance level.
LIQUIDITY
Key liquidity risk indicators include:
y
resistance periods for short-term liquidity stress;
y
the Stable Funding Position (PRS);
y
the Liquidity Coverage Ratio (LCR) ; and
y
The Net Stable Funding Ratio (NSFR).
Short-term liquidity stress is applied based on crisis scenarios
that Crédit Agricole CIB believes that it could face should an event
affect the Group (idiosyncratic crisis), the whole of the inter-bank
market (systemic crisis), or a combination of the two (global crisis).
The stable funding position, defined as a long-term surplus of
resources over stable assets, aims to protect business lines from
the consequences of market stress.
The LCR requires the Bank to retain sufficient unencumbered
High-Quality Liquid Assets (HQLA) that can be converted into
cash easily and immediately, on private markets, assuming a
liquidity crisis lasting 30 calendar days.
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The NSFR is a one-year liquidity ratio, putting a limit on the
transformation the bank can do, by requiring stable assets to be
financed by a minimum amount of stable liabilities.
At 31 December 2021, all of these indicators were compliant with
the Bank’s tolerance in this area. Note that the LCR of 164% and
the NSFR of 113% far exceed the regulatory requirement of 100%.
RISKS SPECIFICALLY MANAGED WITHIN
THE CORPORATE AND INVESTMENT BANKING
(CIB) AND WEALTH MANAGEMENT
BUSINESS LINES
CREDIT RISKS
Crédit Agricole CIB’s focuses on debt-related business: credit risk
is therefore central to its activities and is by far the greatest risk.
Like Crédit Agricole CIB’s competitors, CIB clients are often large
multinationals or major financial institutions which by their very
nature, in addition to individual creditworthiness issues, generate
a concentration risk in this area. This risk should however be
put into perspective by viewing the Crédit Agricole Group as a
whole. The refocusing strategy applied since the financial crisis
slightly reduced the number of counterparties and geographical
sites, and therefore resulted in a relative increase in the portfolio
concentration.
However, the Bank is still active in a large number of countries
and economic sectors, thus benefiting from the positive effect of
sectoral and geographical diversification. This effect is measured
and monitored under ICAAP.
On the other hand, Crédit Agricole CIB’s Wealth Management
(WM) generates few credit risks, as the majority of its credits are
Lombard loans which are secured against collateral such as:
cash, securities, life insurance contracts, etc.
Therefore, Crédit Agricole CIB’s risk appetite is defined in
accordance with six key indicators:
y
expected losses (EL) within one mid-cycle year for all of its
exposures using the internal ratings-based approach (IRBA),
excluding defaulted exposures (separate thresholds for CIB
and Wealth Management);
y
the share of defaulted outstandings in total outstandings
(separate thresholds for CIB and Wealth Management) and
their coverage rate (CIB only);
y
unexpected losses due to the sudden and simultaneous
default of several investment grade counterparties (CIB only);
y
the “underwriting risk for corporate clients”, whose thresholds
are defined according to the credit quality of the borrower,
which limits the temporary credit risk incurred by Crédit
Agricole CIB for any corporate group during an underwriting
transaction on debt instruments (CIB only);
y
the proportion of unsecured credit (Wealth Management only).
At 31 December 2021, all six indicators were below the Bank’s
tolerance thresholds.
MARKET RISKS
A series of refocusing and adaptation plans have reduced
Crédit Agricole CIB’s market activity and the resulting risk. This
redimensioning plan followed the response to the financial crises
of 2007/2008, and then 2011, and the choice to discontinue
activities which were deemed to be non-strategic or below their
critical size. Crédit Agricole CIB has put in place a resilient model
based on a balanced business model in which capital markets
activities are part of the continuity of financing activities with a
diversified client portfolio. The Bank also suspended its own-
account activities and, under the French Banking Law (LBF),
was not required to set up an ad-hoc subsidiary. Finally, the
Bank’s Treasury activity is responsible for the sound and prudent
management of cash within the Finance department, as required
under the LBF.
Crédit Agricole CIB has retained appetite for market risks in its CIB
activities, when such risks are generated by supplying corporate
clients and financial institutions with the investment products and
services that they require (including some structured products),
and by assuming its role as a market maker for certain market
segments and instruments. Wealth Management on the other
hand is only exposed to a very low level of market risks.
Therefore, Crédit Agricole CIB’s market risk appetite is defined in
accordance with two key indicators:
y
maximum one-day loss within a confidence interval of 99%, or
Value-at-Risk (“VaR” see section 2.5.1.2 “Market risk meas-
urement and management methodology”; and
y
adverse and extreme stress (see section 2.5.1.2), to quantify
maximum loss in theoretical extreme market conditions which
systematically contradict the Bank’s positions.
At 31 December 2021, these indicators were below the Bank’s
tolerance threshold, in particular with a VaR of €9.0 million (see
section 2.51.2).
INCURRED OPERATIONAL RISKS
Crédit Agricole CIB’s incurred operational risks are defined
in accordance with two key indicators, while setting specific
thresholds for the CIB and Wealth Management business lines:
y
the share of the cost of operational risk in net banking income;
and
y
significant operational risk incidents.
At 31 December 2021, these indicators were below the Bank’s
tolerance thresholds for CIB. Wealth Management incurrent a
significant operational risk incident in 2020, which generated
breaches of its tolerance thresholds in 2020, and in 2021 due to
additional provisions.
LEGAL AND NON-COMPLIANCE RISKS
Crédit Agricole CIB has no appetite for legal and non-compliance
risks. However, any banking activity which generates income may
lead to administrative or disciplinary sanctions in the event of a
failure to comply with the rules relating to this activity, whether
they be laws, regulations, professional or ethical standards, or
even instructions from the Bank’s managers. Crédit Agricole CIB
manages the non-compliance risk situations inherent to income
generation by measuring:
y
the proportion of activities performed with the riskiest clients
from a financial security viewpoint;
y
the proportion of activities performed for the most complex
products on the market;
y
KYC Compliance rate on new relationships;
y
Screening Alert Processing Rate aiming at identifying possible
breaches of the international sanctions measures;
y
Conduct risk, which is the risk of inappropriate behavior, with
regard to regulation and ethics, of one or more employees, in
their relations with customers, financial markets, third parties
(suppliers, partners, etc.) or other employees, the financial or
non-financial consequences of which would be detrimental
to the image or the sustainability of the entity.
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Specific thresholds are set out for CIB and Wealth Management
according to the methods they respectively use to classify financial
security or suitability risks, and to references appropriate to their
business activities (commercial income or managed assets).
At 31 December 2021, these indicators were below the tolerance
thresholds.
REPUTATIONAL RISKS
At 31 December 2021, Crédit Agricole CIB was not exposed
to any reputational risk and was compliant with its CSR sector
policies.
STATEMENT ON THE ADEQUACY OF RISK
MANAGEMENT FRAMEWORKS
In accordance with Article 435-1-e of CRR (Regulation (EU)
No 575/2013) and based on all the information that they received
during 2021, the Board of Directors have considered at their
meeting of 8 February 2022 that the risk management frameworks
put in place by Crédit Agricole CIB were adequate considering
the Bank’s profile and strategy.
2.2. STRUCTURE OF THE RISK FUNCTION
The Risk and Permanent Control (RPC) Department is in charge of
the supervision and permanent control of risks across the whole
Crédit Agricole CIB Group’s scope of consolidated supervision.
It carries out second-level supervision and permanent control
of counterparty risks, market risks, country and portfolios risks,
physical, operational and technical risks, and societal and
environmental risks.
The structure of Crédit Agricole CIB’s Risk and Permanent Control
function is integrated into the Crédit Agricole S.A. Group’s Risk
and Permanent Control business line.
Risk management is delegated to Crédit Agricole CIB under
formally adopted subsidiarity and delegation principles.
Within this framework, RPC regularly reports its major risks to
Crédit Agricole S.A.’s Group Risk Department, and has Crédit
Agricole S.A.’s Group Risk Committee (CRG) approve those
cases which exceed its authorised limits as well as substantial
risk strategies at the Crédit Agricole S.A. Group level.
2.2.1 Global structure
RPC is based on a global structure with the following attributes:
y
all risk management tasks and business lines, whatever their
nature or location, are grouped together within one division;
y
all Crédit Agricole CIB’s local and regional RPC managers
within the international network report directly to the managers
at the RPC head office;
y
the operational risk managers at the Head Office report to
the Operational Risk Management Department;
y
the Head of Risk and Permanent Control
of Crédit Agricole CIB
(i) reports to the Group Chief Risk Officer of Crédit Agricole
S.A. and (ii) is functionally subordinate to the Chief Executive
Officer of Crédit Agricole CIB;
y
the Head of Risk and Permanent Control of Crédit Agricole CIB
is a member of the Executive Committee of Crédit Agricole CIB.
It comprises:
1. The four specialist decision-making and management
departments for each business activity:
y
Markets: Market and Counterparty Risks (MCR);
y
Credit: Sectors, Corporates and Structured (SCS), Financial
Institutions, Sovereigns and Countries (FSP), Sensitive Cases
and Impairment (ASD);
2. The six cross-functional departments dedicated to
supervision and control:
y
Supervision: Portfolio Models and Risk and MASAI programme
(MRP), Risks, Governance & Regulatory Topics (RGR) and
Architecture and Project Management (APM);
y
Control: Credit Monitoring & Reporting (CMR), Operational
Risk Management (MRO), and Validation of Regulatory Models
on Market Activities (VRM);
3. The Corporate Social Responsibility (CSR) team;
4. RPC’s General Secretariat (SGL).
2.2.2 Governance and overall management
of activities
INFORMATION PROVIDED TO CRÉDIT
AGRICOLE CIB’S GOVERNANCE BODIES
The Board of Directors of Crédit Agricole CIB and its Risk
Committee receive:
y
on an annual basis, the Internal Control Report (the RCI)
for the previous year and the Half-Yearly Report on Internal
Control (ISCI) as at 30 June of the current year;
y
a report on risk management and the main exposure areas
each quarter, and specific reports as and when needed.
y
On the advice of the Risk Committee, the Board of Directors
approves the Bank’s risk appetite and any updates thereto,
the stress test programme and the list of major risks, and,
on a quarterly basis, the risk strategies and policies approved
by the CSP (Strategy and Portfolio Committee) or the CRG
(Group Risk Committee), where applicable.
OVERALL MANAGEMENT OF ACTIVITIES
DETERMINING THE RISK PROFILE AND RISK
STRATEGIES
A member of Executive Management chairs the Strategy and
Portfolio Committee (CSP). Its main roles are:
y
to ensure that the Bank’s global strategy is consistent with its
capacity to take risks, to set guidelines that will become spe-
cific operational rules, including in the form of risk strategies,
and to work on alert and Business Watch topics;
y
the CSP also oversees each location/country, each business
line/major sector within a specific risk strategy, providing the
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main development guidelines for each business; it also decides
on the main risk budgets for the global portfolio.
DECISION-MAKING PROCESS
The decision-making process within Crédit Agricole CIB is carried
out by dedicated committees:
y
business and geographical committees are in charge of retail
financing within the limits granted to each manager;
y
the most significant exposures are reviewed by the
Counterparties Risk Committee (CRC) which is chaired by
a member of Executive Management. Crédit Agricole S.A.’s
Group Risk Department (DRG) is systematically a member
of this committee and receives all applications. Exposures
involving amounts in excess of the limits granted to Crédit
Agricole CIB are submitted for a decision to Crédit Agricole
S.A.’s Executive Management, after obtaining an opinion
from the DRG;
y
the Market Risk Committee (CRM), which is also chaired
by a member of Executive Management, monitors market
exposures twice a month. The CRM sets the limits and carries
out controls on compliance accordingly.
ANTICIPATION OF COUNTERPARTY
DETERIORATION
Anticipation of the potential deterioration of counterparties is
addressed under:
y
monthly Early Warning meetings, scheduled by the Early
Detection team of the SCS department, which aim to identify
early signs of potential deterioration of counterparties previ-
ously considered to be sound. After reviewing the information
gathered, the purpose of these meetings is to draw the most
appropriate operational consequences, depending on whether
its conclusions are positive (ultimately deemed harmless or
benign, not calling for mistrust of the client at this stage)
or negative (confirmation of an actual concern calling for a
reduction in our risk exposure);
y
early detection by means of ongoing monitoring of portfolios
and sub-portfolios to detect counterparties demonstrating
various alert signals identified from information passed on
by the risk teams and front office staff, data obtained from
internal databases and market information;
y
stress scenarios performed to enable measurement of the
impact of a shock on a portfolio or sub portfolio (for application
of Pillar 2 of Basel II) and to identify the sectors/segments
requiring provisions.
The objective is to identify any potential deterioration in client risk
profiles as early as possible, in order to implement preventive
actions on our exposures where possible.
CONTROL OF SENSITIVE CASES
The control of sensitive cases is carried out by a dedicated
department. Debts that are under special supervision or classified
as in default are revised quarterly.
OPERATIONAL MANAGEMENT COMMITTEE
In addition to the Committees in charge of risks (CRC and CRM),
risk management reports are also regularly presented to the
following Executive Management committees:
y
Crédit Agricole CIB’s Executive Committee, with debates and
discussions dedicated to risk management;
y
the Internal Control Committee which is responsible for mon-
itoring market and counterparty limits, controlling operational
risks and following-up recommendations from internal and
external audit committees;
y
the Topmost Permanent Control Committee, which supervises
the operation of the Permanent Control system and operational
risk management of the Crédit Agricole CIB Group.
CRÉDIT AGRICOLE S.A.’S RISK MANAGEMENT
PROCESS
Crédit Agricole CIB is included within Crédit Agricole S.A.’s risk
process which is structured around the following committees:
y
the Group Risk Committee, which is chaired by Crédit Agricole
S.A.’s Chief Executive Officer. Crédit Agricole CIB mainly
submits to the committee its one-off approval requests,
its main risk strategies, its budgets and commitments on
emerging countries, corporate authorisations of high amounts,
large individual exposures, sensitive cases, limits as well as
the market risk situation;
y
the Risk Monitoring Committee which sits within the CRG.
Chaired by Crédit Agricole S.A.’s Chief Executive Officer, it
examines counterparties that show signs of deterioration or
a need to arbitrate between several Group entities, as well
as, more broadly, points of attention of any kind that may
impact the Group’s risk profile, net income or solvency (risk
factors linked to a sector of the economy, country, product
category, business activity, regulatory change, etc.);
y
the Standards and Methods Committee (CNM) chaired
by Crédit Agricole S.A.’s Head of Risk Management and
Permanent Control, to which Crédit Agricole CIB submits
for approval any proposal for a new method or an existing
method for measuring or classifying Basel II risks before their
application within Crédit Agricole CIB;
y
finally, Crédit Agricole S.A.’s Group Risk Department is a
permanent member of Crédit Agricole CIB’s Internal Control
Committee (CCI).
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2.3. INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES
2.3.1 Definition of the internal control system
The internal control system is defined within the Crédit Agricole
Group as the set of systems used to control activities and all
forms of risk and to ensure the legality, security and efficiency of
operations, in accordance with the reference texts set out in the
paragraph below. Crédit Agricole CIB, a wholly-owned subsidiary
of the Crédit Agricole Group, complies with the requirements of
French and international regulations and the rules enacted by its
parent company.
The internal control system and procedures can therefore be
classified by the objectives assigned to them:
y
application of instructions and guidelines determined by
Executive Management;
y
financial performance through effective and adequate use of
the Group’s assets and resources, and protection against
the risks of loss;
y
comprehensive, accurate and ongoing awareness of the data
required to make decisions and manage risks;
y
compliance with internal and external rules;
y
prevention and detection of fraud and errors;
y
accuracy and completeness of accounting records and timely
production of reliable accounting and financial information.
However, this system and these procedures have limits, relating
in particular to technical problems and staff shortcomings.
Under the systems implemented within this standardised
framework, certain resources, tools and reporting documents
are made available to the Board, to Executive Management and
to other managers so that they can assess the quality of the
internal control systems and their adequacy.
2.3.2 Reference texts relating to internal
control
LAWS AND REGULATIONS
The internal control procedures implemented by Crédit
Agricole CIB comply with the laws and regulations governing
French credit institutions and investment companies, and namely
with:
y
the French Monetary and Financial Code;
y
the Decree of 3 November 2014, relating to the internal
control of banks, payment services companies and invest-
ment companies, under the control of the French Prudential
Supervisory and Resolution Authority (ACPR), as amended
on 25 February 2021;
y
all texts relating to the exercise of banking and financial activ-
ities (a set of documents produced by the Banque de France
and the C.C.L.R.F.);
y
the General Regulation of the French Financial Markets
Authority (Autorité des Marchés Financiers).
The Company’s internal control system also takes account of the
following international reference documents:
y
the Basel Committee’s recommendations on banking control;
y
local applicable laws and regulations in the countries in which
the Group operates;
y
European and international regulations (EMIR, DFA, etc.)
applicable to Crédit Agricole CIB’s business activities.
MAIN INTERNAL REFERENCE DOCUMENTS
The main internal reference documents are:
y
Procedural memo 2022-04 on the organisation of internal
control within the Crédit Agricole S.A. Group;
y
Procedural memos dealing with the Crédit Agricole S.A.
Group’s risk management and permanent controls;
y
documents circulated by Crédit Agricole S.A., relating to
subjects including accounting (Crédit Agricole’s accounting
plan), financial management, risk management and perma-
nent controls;
y
the Crédit Agricole Group’s Code of Conduct;
y
Crédit Agricole CIB’s Code of Conduct entitled “Our principles
to build the future”;
y
a body of governance texts, published on Crédit Agricole CIB’s
“Corporate Secretary” Intranet database, concerning com-
pliance, risks and permanent control and, more specifically,
the texts linked to permanent control applied within the con-
solidated scope of the Crédit Agricole CIB Group’s surveil-
lance (text 4.0 on the structure of internal control, text 4.4
on the structure and governance of permanent controls, and
text 1.5.1 on the supervision of essential outsourced ser-
vices) and Crédit Agricole CIB’s compliance manuals, Crédit
Agricole CIB’s Code of Conduct entitled “Our principles to
build the future”, and the procedures in the different depart-
ments of Crédit Agricole CIB, its subsidiaries and branches.
STRUCTURE OF THE INTERNAL CONTROL
SYSTEM
Basic principles
The structural principles and components of Crédit Agricole CIB’s
internal control systems, which are common to all Crédit Agricole
Group entities, are as follows:
y
information and involvement of the supervisory body (approval
of risk appetite and risk strategies, update on the risk situation,
activities and results of internal control);
y
the direct involvement of the Executive Directors in the organ-
isation and operation of the internal control system;
y
complete coverage of activities and risks;
y
responsibility of all persons involved;
y
clear definition of tasks;
y
effective separation of commitment and control functions;
y
formalised and up-to-date delegations;
y
formalised and up-to-date standards and procedures, espe-
cially for accounting and information processing.
These principles are supplemented by:
y
systems to measure, monitor and control credit, market,
liquidity, financial and operational risks (transaction processing,
information systems processes), accounting risks (including
quality of financial and accounting information), non-compli-
ance risks and legal risks;
y
a control system, forming part of a dynamic and corrective
process, encompassing permanent controls, which are carried
out by the operating units themselves or by dedicated staff,
and periodic controls (Internal Audit Department).
The internal control system is also designed to ensure that the
compensation policy is consistent with risk management and
control objectives, particularly with regard to market operators.
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As such, the Risk Committee, a specialised Committee of the
Board of Directors, whose task is specifically to examine, without
prejudice to the Compensation Committee, whether the incentives
provided by the Company’s compensation policy and practice
are consistent with its situation in light of the risks to which it is
exposed.
The internal control system is also designed to ensure that the
corrective measures adopted are applied within a reasonable time.
Monitoring of the process
In order to ensure that the internal control system is consistent
and efficient and that the above-mentioned principles are
applied by all entities within the scope of Crédit Agricole CIB’s
consolidated control system, three separate persons responsible
for Periodic Control (Audit-Inspection), Permanent Risk Control
and Compliance Control have been appointed.
The Internal Control Committee, chaired by the Deputy Chief
Executive Officer, is responsible for:
y
reviewing internal control procedures and the control system
implemented;
y
examining the main risks to which Crédit Agricole CIB is
exposed and any changes in risk measurement systems;
y
deciding on remedial measures to be taken to address the
weaknesses identified during audits, either in internal control
reports or as a result of problems that have occurred;
y
monitoring the fulfilment of the commitments made following
internal and external audits;
y
taking any decisions necessary to make up for the weaknesses
in the internal control system.
Its members are the Head of Group Internal Audit (Crédit Agricole
S.A.), the Head of Internal Audit (Crédit Agricole CIB), the
Corporate Secretary, the CFO, the Head of Risk Management and
Permanent Controls, the Head of Operational Risk Management,
the Head of Compliance, the Head of Fraud Prevention, the
General Counsel and, depending on the matters under discussion,
the heads of other Bank units.
The committee met four times in 2021.
Internal Control Committees have also been set up in several
subsidiaries and branches, both in France and abroad. These
Committees ensure the decentralised implementation of the Order
of 3 November 2014. They enable the Internal Control functions
at the Head Office (RPC, CPL, LGL, IGE) to be involved in the
operation of Internal Control within a given scope and alert its
manager as a matter of priority in the event of any anomalies and
then alert the highest level of corporate governance in the event
of non-resolution.
In addition, a Topmost Permanent Control Committee, chaired
by the Head of RPC, is responsible for:
y
supervising the operation of the Permanent Control system
and operational risk management of the Crédit Agricole CIB
Group;
y
investigating all matters related to this assignment, either for
information or decision-making purposes;
y
resolving any discrepancies or interpretations relating to the
Permanent Control system.
This committee comprises in particular the head of Risk
Management and Permanent Control (RPC), the head of
Operational Risk Management, the head of Global Compliance,
the head of Legal Functions and the head of Group Internal Audit.
The Head of Group Risk Management (
Direction des risques
Groupe
or DRG) Operational & IT Risks at Crédit Agricole S.A. is
a permanent guest. For this committee: two committees meetings
were held face-to-face and one was an E-committee in 2021.
In addition to the permanent control committees established in the
head office departments, local committees have been established
in the subsidiaries and branches in France and abroad. Meetings
are held monthly (other than in months when a ICC is being held),
either face to face or online.
Role of the supervisory body: the Board of Directors
The Board of Directors decides on strategy and controls the
implementation of oversight by the Executive Directors. It
approves and regularly reviews the Bank’s risk appetite and risk
strategies. It is notified of the structure, work and results of internal
control, and of the main risks facing the Bank.
The Board of Directors has four specialised committees to
assist in carrying out its duties: the Audit Committee, the Risk
Committee, the Appointments and Governance Committee and
the Compensation Committee. The main responsibilities of the
Board of Directors and its Committees are listed below and
described in further detail in chapter 3, paragraph 1.2.4 of the
present Universal Registration Document:
y
the Board of Directors reviews and approves the Bank’s
risk appetite at least once a year, after review by the Risk
Committee;
y
every quarter, the Board of Directors reviews and approves,
after review by the Risk Committee, the specific risk strate-
gies by country, business or sector, which have been defined
during the previous quarter by the Strategy and Portfolios
Committee or by the Group Risk Committee;
y
in addition to the information regularly sent to the Board of
Directors, particularly on the overall risk limits and exposures,
compliance, legal risks and liquidity, a report on internal control
is presented to it twice a year, as well as a quarterly status
report on risk management and exposure. This quarterly
report specifically includes a presentation on market risks,
counterparty risks, operational risks and a review on Crédit
Agricole CIB’s situation with regard to risk appetite. This
information and these reports are reviewed beforehand by
the Risk Committee;
y
the Board of Directors is informed of any significant fraud event
or any other event detected by internal control procedures in
accordance with the criteria and thresholds that it has set.
A reminder of the feedback procedure for this information
to the corporate bodies is provided in Crédit Agricole CIB’s
internal documentation;
y
a presentation of periodic control reports is made twice a
year to the Board of Directors, after being reviewed by the
Risk Committee;
y
an annual report (corporate and consolidated basis) on the
organisation of internal control systems for combating money
laundering and terrorist financing, and asset freezing, is sub-
mitted to the Board of Directors for approval each year;
y
the report to the AMF by the head of Compliance for
Investment Services (RCSI) is presented to the Board of
Directors each year.
Role of the Executive Directors: Executive
Management
The Executive Directors are directly involved in the organisation
and operation of the internal control system.
They ensure that risk strategies and limits are compatible with
the financial situation (capital levels, results) and the strategies
adopted by the Board of Directors. The Executive Directors define
the general organisation of Crédit Agricole CIB and oversee its
effective implementation by the competent staff.
They assign clear roles and responsibilities in terms of internal
control and allocate the appropriate resources. They oversee the
implementation of risk identification and measurement systems
that are appropriate for Crédit Agricole CIB’s activities and
structure.
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They also ensure that they regularly receive the key information
produced by these systems and that the internal control system
is continuously monitored to verify its suitability and effectiveness.
They are informed of the main issues identified by internal control
procedures and the remedial measures proposed, notably by the
Internal Control Committee.
Scope and consolidated structure of Crédit
Agricole CIB’s internal control systems
In accordance with the principles applied within the Group, Crédit
Agricole CIB’s internal control system applies to a scope which
includes its branches and subsidiaries, both French and foreign,
wholly or jointly controlled. The system is intended to supervision
and control of activities, measurement and monitoring of risks on
a consolidated basis.
Each entity within the Crédit Agricole CIB Group applies this
principle to its own subsidiaries, thus creating a logical internal
control structure pyramid and strengthening the consistency
between the Group’s various entities.
In this way, Crédit Agricole CIB ensures that it has an adequate
system within each of its risk-bearing subsidiaries, and those
activities, risks and controls are identified and monitored on
a consolidated basis within these subsidiaries, particularly as
regards accounting and financial information.
In 2018, the Crédit Agricole CIB governance document was
updated to take account of the new Group Procedural Memo
on the structure of internal control (see above, “Main Internal
Reference Documents”). This document introduces the notion
of a “Consolidated Supervision Scope”, by defining its rules for
determining supervision and governance information procedures.
BRIEF DESCRIPTION OF THE INTERNAL CONTROL
SYSTEMS AND RISK MANAGEMENT PROCEDURES
IMPLEMENTED WITHIN THE COMPANY
General description
Detailed information on credit, market, operational and liquidity
risk management is provided in the “Risk factors and Pillar 3”
section and in the notes to the financial statements.
The internal control system is based on three levels of controls,
which distinguish permanent control from periodic control.
Permanent control is carried out as follows:
y
first degree: permanent controls are carried out when a
transaction is initiated and while the transaction is being
validated. They are carried out by the operators themselves,
by the hierarchy within the unit or by automated transaction
processing systems;
y
second degree, first level: permanent controls are carried
out by employees who are separate from those who initiated
the transactions and who may perform operational activities;
y
second degree, second level: permanent controls are carried
out by staff working exclusively at the final level of specialist
permanent control with no authorisation to make risk-taking
commitments (Operational Risk Managers of Departments,
which report to RPC, credit or market risk control, accounting
control, compliance control).
The periodic (third-degree) controls cover occasional on-site audits
of accounting records relating to all of the Company’s activities
and functions by the Group Control and Audit Department.
The system of permanent controls is based on a platform
of operational controls and specialised controls. Within the
departments at the head office, the branches and the subsidiaries,
procedural manuals describe the controls to be performed and
the related operational permanent controls.
The controls, which can be integrated into automated
transaction processing systems, are identified and updated
based on operational risk mapping (now called Risk and Control
Self-Assessment).
The results of the controls are formalised through control sheets
and centralised in the RPC Operational Risk Management
OLIMPIA tool. They are summarised in periodic reports at the
appropriate hierarchical level (in the network and at the head
office) and, on a consolidated basis, to the Head of Permanent
Control and to the Topmost Permanent Control Committee.
This system is continuously updated. It must specifically cover
the entities of the consolidated supervision scope along with
changes related to the activity, the organisation and the IT system.
In that regard, careful attention is paid to maintaining the quality
of operations and a suitable internal control system.
The OLIMPIA tool now covers all operational risk issues: collection
of incidents and losses, provision of essential outsourced services,
Risk and Control Self-Assessment, Supervisory Controls.
Since 2016, the Qualitative aspect of the ICAAP (Internal Capital
Adequacy and Assessment Process) has been fully included
within the annual Internal control report (ICR).
Detailed description
FIRST-DEGREE CONTROLS
They are performed in a hierarchical environment where the
technical actions which are the subject of the control are carried
out. The definition of these controls and the analysis of their
results is first and foremost the responsibility of management of
the scope where they are applied, under the “4 eyes” principle.
First degree permanent controls are applied to the tasks carried
out by all Departments of the Bank. It is the Departments
themselves that define them and implement them whilst delegating
responsibility to the operational staff within their scopes.
Operational staff are therefore expected to remain vigilant at
all times to the transactions they handle. This vigilance cover
all procedures introduced to ensure the compliance, security,
validity and completeness of transactions. Each line manager
must check, for the activities for which he/she has responsibility
that his/her staff are aware of and comply with the rules and
internal procedures for processing transactions.
SECOND-DEGREE, FIRST-LEVEL CONTROLS
They are performed in a hierarchical environment which is
independent from the environment in which the action being
audited was carried out. This is what they are described as
“second degree” controls. They are applied to situations
considered to be sufficiently sensitive to require, under regulations
or as a result of a management decision, a segregation of tasks
in the implementation phase, or an independent perspective.
In certain configurations, permanent level 2.1 controls may be
activated in the absence of permanent level 1 controls.
SECOND-DEGREE, SECOND-LEVEL CONTROLS
They are performed in a hierarchical environment which is
independent from the environment in which the action being
audited was carried out, hence the “second degree” description.
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They are carried by specialist auditors who do not have any
operational mandate within the scope under audit or any other
scope, other than the scope for which they specifically work. This
operational independence is reflected in the “second level” suffix
added to their second degree status.
The second level, second degree (more frequently referred to as
“2.2”) controls apply in different situations:
y
performing final controls and analysis based on the results
of level 2.1 controls. This is part of a chain of permanent
controls comprising the three pillars;
y
Checking the quality of a specialised second degree, first level
control relating to aggregated elements or a set of processes,
if the risk represented by these elements or these processes
is considered sufficiently sensitive;
y
In the case of an unexpected audit or when there is an inci-
dent, checking the quality of a first degree control when there
is no second degree, first level control.
The systematic “triplication” of permanent control (levels 1, 2.1
and 2.2) is not standard and must be justified by the level of risk
of the action. Neither should a level 2.2 control compensate for
the absence of a level 1 or 2.1 control in situations in which one
or the other should normally exist, except for in very exceptional
cases (closure of a unit, unexpected absence of a particular
person, user back-up plan, etc.).
RISK AND PERMANENT CONTROL DEPARTMENT
The roles and responsibilities in respect of risk management
are outlined in the section above, entitled “Structure of the Risk
function”.
Risk projects
The Credit & Counterparty Operations Domain Committee is
managed by the APM (Architecture & Project Management)
team, a project team which reports to the “Risk and Permanent
Control” Department of Crédit Agricole CIB. This programme
meets the objective of significantly and continuously improving
the counterparty risk control mechanism, while meeting new
regulatory requirements.
The Credit & Counterparty Operations Domain Committee, chaired
by the Head of Risk, who is a member of Crédit Agricole CIB’s
Executive Committee, brings together risk department managers,
representatives of the business lines concerned and from IT, and
monitors the projects selected:
y
The purpose of Project RADaR (Risk Analytics Data Reporting)/
PRISM is to provide users with a single platform covering
all data, easy access to consistent data (and data sources),
creation of calculation libraries developed by quantitative risk
research teams. Interface via the SAP BI systems for the
production of internal and regulatory reporting and PRISM for
exploratory analysis, simulations and real-time adjustments.
y
Processing of technical obsolescence/upgrades: a project that
aims to technically improve and upgrade systems requiring
development to facilitate functional maintenance and opera-
bility and reduce operational risk, such as: Decommissioning
of Mainframe Infocentres (SDP and RADaR)
y
Project DAFNE: Overhaul of the CA Group counterparty rating
system, aimed at replacing Anadefi, a tool that no longer
meets the needs of the risk business lines.
y
Regulatory & CA Group projects: various functional or tech-
nical developments related to changes in the CA Group and
regulatory requirements such as: Group changes in CRR V4.3,
regulatory changes (CRD5/CRR2, COREP 2021, SACCR
(June 2021), Default, leveraged financing, TRIM, Basel 4
reforms, etc.).
y
Ongoing projects: all major changes to existing systems with
a minimum system to be maintained (rating, credit approval,
authorisation tools, certifications, calculation engines, control
and monitoring tools for outstandings/authorisations, oper-
ational risk tools) aimed at meeting new business needs,
regulatory requests, recommendations arising from various
inspections and various requests for contributions.
y
Project MASAI FRTB: led by RPC and sponsored by GMD
and RPC, aiming to introduce:
-
A new market risks ecosystem based on Big Data technology
to address a strong increase in data volumes and significant
complexity of market risk indicators;
-
Compliance with the regulations of BCBS 239 principles with
the introduction of a new Market Risks Operating Model;
-
the Fundamental Review of the Trading Book (FRTB), which
applies to the trading portfolio, with an initial deliverable
covering the FRTB-Standardised Approach (first report in
September 2021);
-
Daily Stress: new project aimed at significantly improving stress
capacities in market activities.
Credit risks
Any counterparty or group of counterparties is subject to
limitations within the framework of specific procedures.
The decision process is based on two authorised signatures
from the front office (one as responsible for the application, the
other being the relevant Delegatee) as well as an independent
RPC opinion issued by an Authorised Signatory. If the RPC’s
opinion is negative, the decision-making power is passed on to
the Chairman of the Committee immediately above.
Credit decisions are governed by risk strategies defined for each
significant scope (country, business line, sector) specifying the
main guidelines (target clients, types of authorised products,
overall envelopes and projected unit amounts, etc.) within which
each geographical entity or business line must record its activity.
When a case is considered to be outside the framework of the
risk strategy in force, the normal authorisations do not apply
and a decision can only be made by the Executive Management
level Committee (CRC). The RPC also identifies, as soon as
possible, assets that may deteriorate and initiates the most
suitable measures to protect the Bank’s interests.
The process for monitoring receivables is enhanced by a system
of portfolio and sub-portfolio analyses on group-wide business
line, geographical or sector basis. Analysing concentrations
and, if applicable, recommendations for the reorganisation of
the portfolio are an integral part of this exercise.
In parallel, the new activities and new products management
mechanism (NAP Committee) ensures that all requests made by
the business lines are in line with the strategies and risks involved.
In addition, sensitive cases and major risks are monitored
quarterly; other risks are reviewed annually. The adequacy of the
level of reserves in relation to risk is assessed every quarter by
the Executive Management, on RPC’s recommendation.
This approach is supplemented by stress tests aimed at test
the impact of unfavorable macroeconomic assumptions and
to quantify the risks to which the bank could be exposed in a
degraded environment.
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Country risks
Country risk is analysed and supervised based on a specific
rating methodology. The country rating, which is reviewed at least
once every six months, has a direct impact on the limits set for
countries for the purpose of validating their risk-strategy and on
the rating of counterparties.
Market risks
The ex-ante management of market risks is organised around
the operation of several committees, which assess the risks
associated with activities, products and strategies before they
are implemented or used:
y
the New Activity or New Product Committees, organised by
Business Line, allow the Market Risk teams, among others,
to validate business developments before they are launched;
y
the Market Risk Committee (CRM) meets once a month
and oversees the entire market risk framework; it approves
market risk limits;
y
the purpose of the Liquidity Risk Committee (CRL) is to super-
vise and manage Crédit Agricole CIB’s liquidity risks and to
ensure the operational implementation of Group standards
relating to liquidity risk monitoring;
y
the Pricer Validation Committee is responsible for presenting
and formally validating the pricers that were validated during
the year.
Risk management is carried out using diversified risk
measurements:
y
global measurements with market risk supervision centred on
Value at Risk (VaR), Stressed VaR (SVaR) and stress measure-
ments; VaR and SVaR measurements are established with a
daily probability of occurrence of 1%; stress scenarios include
global stress tests (historical, hypothetical or adverse) as well
as specific stress tests for each activity;
y
specific measurements with sensitivities indicators and notional
measurements.
Finally, the Valuation and Pricing Committees define and monitor
the application of portfolio valuation rules for each product line.
In 2021, the project to overhaul market risks carried forward
with several components including the filing of the first FRTB SA
reports with the regulator, the switch to new risk-free rates, the
continued decommissioning of risk tools and transition to the
MASAI central data platform.
Operational risks
Operational risk management relies mainly on a network of
Permanent Control correspondents coordinated by RPC.
Operational risks are monitored for each business line, subsidiary
and each region, which ensure the reporting of losses and
incidents, as well as their analysis, by Internal Control Committees.
In addition to actual losses, the operational risk scorecard
methodology takes into account provisions, specifically for legal
disputes since the end of 2013 and tax disputes since the end
of 2015.
Each quarter, RPC produces an operational risk scorecard
showing movements in operational risk-related costs and
associated key events.
Remedial action following significant incidents is monitored
closely, in conjunction with the relevant departments.
Operational risk mapping is now called Risk and Control Self-
Assessment. It covers all Departments at the head office, in the
international network and at subsidiaries and is reviewed annually.
Together with the Compliance and Legal functions, it covers non-
compliance risks and legal risks.
RPC Operational Risk Management also monitors French and
international regulations concerning capital market activities
(Volcker Rule, French Banking Act) and information system
security (Information Systems Risk Pilot).
Provision of essential outsourced services
Any service or operational task classed as essential must meet
certain monitoring requirements defined as part of a procedure
that sets forth the way in which outsourcing decisions are taken,
the elements to be included in the contract and the supervision
procedures required to ensure that all associated risks are
managed and that the service runs smoothly.
A dedicated governance body (the Outsourcing Committee)
keeps track of the services at Executive Management level,
complemented by specialist monitoring in the areas that use
outsourcing the most (computing and back office).
In addition, a review of all essential services, including a report
on service quality (i.e. analysis of the main incidents and
dysfunctions), and contract compliance is presented to the
Topmost Permanent Control Committee.
PERMANENT CONTROL OF ACCOUNTING AND
FINANCIAL INFORMATION
Permanent accounting controls are intended to provide adequate
protection against the major accounting risks that may damage
the quality of accounting and financial information in terms of:
y
compliance of the data with laws, regulations and Crédit
Agricole Group standards;
y
reliability and accuracy of the data, allowing a true and fair view
of the results and financial condition of Crédit Agricole CIB
and entities within its scope of consolidation;
y
security of data preparation and processing methods, limiting
operational risks in view of Crédit Agricole CIB’s commitments
regarding published information;
y
prevention of fraud, corruption and accounting irregularities.
In response to these objectives, Crédit Agricole CIB applied the
Crédit Agricole Group’s recommendations in this area.
The Risk Department is responsible for permanent second-degree,
second-level (2.2) and consolidated second-degree, second-level
(2.2.C) controls of accounting and financial information, while
the Finance and Procurement Department is responsible for
second-degree, first-level controls (see Finance and Procurement
Department). For second-degree, second-level controls (2.2), the
Risk Department:
y
ensures that the key accounting indicators defined by Crédit
Agricole S.A. are adapted to the environment of a Corporate
and Investment Bank, deployed in a consistent manner and
listed in Crédit Agricole CIB’s operational risk management
tool for Crédit Agricole CIB’s head office, branches and
subsidiaries;
y
consults the Group’s branches and main subsidiaries quarterly
through an accounting certification questionnaire in which
the Chief Financial Officers (CFO) commit to compliance with
accounting standards;
y
performs documentary checks in accordance with a control
plan validated annually by the Finance Department’s Internal
Control Committee;
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y
reports and monitors operational incidents related to
accounting and finance;
y
annually produces the operational risk maps updated on an
ongoing basis with the Finance and Procurement Department
teams.
The conclusions of their work as well as the proactive monitoring
of recommendations issued by the regulator and Internal Audit
enable the Permanent Control team to define any remedial
measures needed to strengthen, as necessary, the system for
preparing and processing accounting and financial information.
All these items are presented monthly to the Group’s Permanent
Financial Control Committee, quarterly to the Finance and
Procurement Department’s Internal Control Committee and
annually to the Topmost Permanent Control Committee in the
presence of Executive Management.
The permanent control mechanism for accounting and financial
information is also applied to the information produced by Crédit
Agricole CIB on behalf of the Group entities (Crédit Agricole S.A.
and LCL).
Regulatory capital requirements
Within the Basel II framework, Crédit Agricole CIB uses an
approach based on internal models approved by the regulator
for calculating capital requirements with respect to credit and
market risks as well as operational risk.
These models are part of Crédit Agricole CIB’s risk management
system, and are monitored and reviewed on a regular basis to
ensure their effective performance and use.
With regard to credit risk, considerable efforts have been made
to bring internal models into compliance with the most recent
texts published by the European Banking Authority (EBA) under
the IRB Repair programme. In addition, all PD and LGD models
were backtested in 2021, and the results of this work will be
presented to Crédit Agricole CIB’s Executive Committee and
validated by Crédit Agricole S.A.’s Standards and Methodology
Committee. In addition, benchmarking of our internal ratings was
performed on the Low Default Portfolio scopes (Large Corporates,
Banks and Sovereigns) with respect to external agency ratings
and ratings of other European banks participating in the annual
RWA benchmarking exercise organised by the EBA. It should be
noted that the purpose of the changes to our existing models
and the development of new models is to measure our risks
as accurately as possible and to keep pace with the regulatory
changes required of banks.
Correct application of the Basel system is regularly monitored by
a Basel Requirements Review Committee.
The Finance and Procurement Department: control
system for accounting and financial information,
global interest rate and liquidity risks
ROLES AND RESPONSIBILITIES FOR THE
PREPARATION AND PROCESSING OF
ACCOUNTING AND FINANCIAL INFORMATION
In accordance with the Group’s current rules, the roles and
organisational principles of the Finance and Procurement
Department’s functions are described in an organisational memo
updated in 2021.
Within the Finance and Procurement Department of Crédit
Agricole CIB, Group Financial Control is in charge of drawing
up the financial statements (the individual accounts of Crédit
Agricole CIB, the consolidated financial statements for the
Crédit Agricole CIB Group, and regulatory statements for the
Company and for the Group). The Department is also responsible
for providing Crédit Agricole S.A. with all of the data it needs
to prepare the Crédit Agricole Group’s consolidated financial
statements.
The Finance and Procurement Departments of the entities that
fall within the scope of consolidation are responsible for drawing
up their own financial statements under local and international
standards. They operate within the framework of the instructions
and controls of the Head Office’s Finance and Procurement
Department.
PROCEDURES FOR THE PREPARATION AND
PROCESSING OF ACCOUNTING AND FINANCIAL
INFORMATION
The organisation of IT procedures and systems used for the
preparation and processing of accounting and financial information
is provided in procedure manuals and in an accounting risk map
updated progressively over time. The Finance and Procurement
Department also oversees the consistency of the architecture of
the financial and accounting information systems and ensures
the monitoring of the major projects in which they are involved
(accounting, regulatory, prudential, liquidity).
ACCOUNTING DATA
Crédit Agricole CIB closes its results monthly. Parent company
and consolidated financial statements are established using
the Crédit Agricole Group’s accounting standards, which are
circulated by Crédit Agricole S.A.’s Accounting and Consolidation
Department. The accounting treatment of complex instruments
and transactions undergoes prior analysis by the Accounting
Standards unit of Crédit Agricole CIB’s Finance and Procurement
Department.
Each Crédit Agricole CIB Group entity produces a consolidation
package which is used to populate the general Crédit Agricole
Group system managed by Crédit Agricole S.A. Group Financial
Control issues quarterly closing instructions to the Finance and
Procurement Departments of Crédit Agricole CIB entities to
define the reporting schedules and to specify certain accounting
treatments and the type of information to be collected over the
period, particularly with a view to preparing the notes to the
consolidated financial statements.
MANAGEMENT DATA
Most financial information published by Crédit Agricole CIB is
based on accounting data and on management data.
All management data is checked to ensure that it has been
properly reconciled with the accounting data and that it complies
with the management standards set by the governance bodies.
Each entity reconciles the main items of its management results
with the intermediate income statement balances produced from
accounting data. Group Financial Control ensures the same
balance at the Crédit Agricole CIB level of consolidation.
Management data are prepared using calculation methods that
ensure they are comparable over time. When published data are
not extracted directly from accounting information, the sources
and definition of calculation methods are generally mentioned to
facilitate understanding.
DESCRIPTION OF THE FINANCE AND
PROCUREMENT DEPARTMENT’S ACCOUNTING
AND FINANCIAL INFORMATION CONTROL
SYSTEM
The Finance and Procurement Department provides second-
degree, first-level supervision of the permanent control system
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for accounting and financial information on a worldwide basis to
ensure adequate coverage of major accounting risks that may
affect the quality of accounting and financial information.
At the Head Office, the work involved in the preparation and
control of accounting and financial information is formalised and
reviewed with the Permanent Control Department through the
quarterly rating of 2.2 indicators and through the thematic control
plan based on documents defined annually.
In the entities, the accounting teams rate the key accounting
indicators defined by the Risk Department in the Crédit
Agricole CIB operational risk management tool every quarter.
Their ratings are subject to spot checks by the Risk Management
Department locally and/or at the Head Office.
RELATIONS WITH THE STATUTORY AUDITORS
In accordance with French professional standards, the Statutory
Auditors examine significant accounting choices and implement
procedures they deem appropriate on published financial and
accounting information:
y
audit of the parent company and consolidated financial
statements;
y
limited review of the interim consolidated financial statements;
y
review of all published financial information.
As part of their statutory assignment, the Statutory Auditors
submit the conclusions of their work to Crédit Agricole CIB’s
Audit Committee and Board of Directors. Where necessary,
they also point out the significant weaknesses of the internal
control concerning the procedures relating to the production and
treatment of the accounting and financial information.
Finally, the Finance and Procurement Department, under a
delegation granted by the Audit Committee, approves non-audit
services. The fees paid to the Statutory Auditors and the auditors’
independence are discussed quarterly during Audit Committee
meetings.
FINANCIAL COMMUNICATIONS
Crédit Agricole CIB contributes to Crédit Agricole S.A. financial
communications published for shareholders, investors, analysts
and rating agencies. The financial and accounting information
for the Crédit Agricole CIB activities of Crédit Agricole CIB in
those reports is prepared by the financial communication team
of the Finance and Procurement Department. It is consistent with
that used internally and validated by the Statutory Auditors and
presented to the supervisory body of Crédit Agricole CIB.
GLOBAL INTEREST RATE RISK
To measure the global interest-rate risk, Crédit Agricole CIB uses
the statistical-gap method, by calculating an interest-rate gap,
and draws up stress scenarios. The interest-rate gaps and the
results of the stress tests are presented to the ALM Committee
which decides on the management and/or hedging measures
to be taken.
As part of the annual review of the Group’s risk strategy, the
RTIG limits were reviewed by the Group Risk Committee both
in relation to the fixed-rate risk and the NPV (Net Present Value)
limit for basis risk. Internal gap limits for interest rate positions
in the main currencies other than the euro and the dollar were
implemented. For basis risk, given the Index Reform, only basis
risk in euros is subject to the index NPV limit.
As regards the control system, the RTIG management unit is
split into a unit in charge of measuring risk and definition of risk
hedges and a unit in charge of executing the hedges defined by
the Capital Markets Department.
LIQUIDITY RISK
The management of liquidity risk within the Crédit Agricole CIB
Group has been placed under the responsibility of the Supervision
Department, which reports to the Assets and Liabilities Committee.
The existing system for management and control of the risks of
illiquidity, availability and prices mainly concerns:
y
the resilience to financial crises in systemic, idiosyncratic
and global risk scenarios over 12 months, 3 months and
1 month. Stress tests are carried out on the position in all
currencies and the equivalent in euros and for the Group’s
main currencies;
y
the exposure to short-term market refinancing (short-term
limit);
y
balance sheet stability indicators (Stable Resource Position
and Credit Collection Deficit);
y
the concentration of long-term refinancing maturities;
y
the medium-/long-term liquidity transformation gap for all
currencies and for the main currencies.
Crédit Agricole CIB has a liquidity risk management platform
linked to the Bank’s accounting data, which measures regulatory
liquidity ratios and Internal Liquidity Model indicators.
For the
bank’s management needs, the LCR and liquidity stress tests (all
currencies and dollars) are measured on a daily basis using the
management tool, Liquid.
The main advances made over the course of 2021 in liquidity risk
management were the following:
y
Strengthening the stress system, with a review of the liquidity
stress standard aimed at incorporating the effects of the
Covid crisis.
y
Continuing to secure the production of liquidity stress tests via
an agile platform and enhancement of process automation.
y
The creation of a dedicated task force to increase the reliability
of the daily LCR signal.
Regarding liquidity, Crédit Agricole CIB’s Permanent Control
procedure is similar to that of the Group. The minimum control
indicators are the same and apply to all major processes in the
same way.
“Global Compliance” department
The roles and organisation of compliance are outlined below in
section 2.6.3. Non-compliance risks.
“Legal” department
The Legal Department’s main duties include managing legal risk
within Crédit Agricole CIB in accordance with the Decree of 3
November 2014, as amended by the Decree of 25 February
2021, and providing the necessary support to the Bank’s
Cross-Business Departments and Functions to enable them
to operate with minimal legal risk, the mandate and monitoring
of the relations with the Bank’s external legal consultants and
the implementation of an alert system in case of a negative or
qualified opinion (opinion in which the Legal function discourages
completion of a market transaction/deal and indicates the legal
risks taken by the Bank if this opinion is not taken into account).
The Head of Crédit Agricole CIB’s Legal Department reports back
on the work of the Legal Function to the Group’s Legal Head and
functionally to the Chief Executive Officer of Crédit Agricole CIB
and the Deputy Chief Executive Officer responsible for Finance.
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The Head of the Legal Department has hierarchical or functional
authority, as the case may be, over head office legal heads, legal
heads of the entities of Credit Agricole CIB Group, as well as
regional legal heads.
The Legal Function’s (LGL) permanent control and legal risk
management system fall within the framework defined by Crédit
Agricole CIB and Crédit Agricole S.A..
The Legal Function contributes to ensure that the Bank’s
business activities and operations comply with the applicable
laws and regulations. It reviews the legal risks arising from Crédit
Agricole CIB’s activities, products, services and transactions, and
ensure the permanent control of the operational risks generated
on its own perimeter.
It also provides legal consultations to the functional Functions
and Divisions, involvement in legal negotiations of operations/
transactions, legal watch, staff training, standard contract
modelling, legal policies and procedures issuing, the collaboration
to decision-making bodies and procedures as required by the
Bank’s governance rules. The Legal Function systematically takes
part in the process of approving new products, activities and uses
in major commitment decisions.
In 2021, the Legal function continued to improve its permanent
control and legal risk monitoring system, in particular through
the following actions:
y
updating its operational risk map;
y
updating its control plan;
y
following up and implementing the recommendations of the
Group Control and Audit Department and more specifically
those resulting from the “Management of legal risks” inspection
carried out in early 2021;
y
expanding it documentation base, particularly internationally;
y
continuing the Innovation project, which is one of the five
pillars of its 2022 MTP;
continuing deployment - within the entire Legal Function and
for all its activities - of electronic signatures, both internally with
the Bank’s Business Lines and externally with counterparties,
implementing an electronic document management solution
covering the Paris-London scope securing the production
of legal documentation with the deployment of a contract
automation tool, deploying a new legal watch tool at head
office and in New York.
Information System Security and Business
Continuity Plan
Information System Security and Business Continuity Plan
The protection of the IT system and ability to overcome a large
scale accident are essential to defending the interests of Crédit
Agricole CIB. Within this framework, two units dedicated to
dealing with information security and business continuity issues
exist:
y
ISS (Information System Security);
y
BCP (Business Continuity Plan).
In order to fulfil their permanent control missions, they rely on a
network of correspondents in France and abroad.
ISS DIVISION
As regards information security, ISS determines the governance,
rules (Information Systems Security Policies), coordinates
maintenance of a suitable security level, ensures correct
implementation of DRP (Disaster Recovery Plan) systems,
management of environments enabling identity control and
authorisation management standards, definition of security
standards, security scans and audits. ISS also acts as an
IT security manager on behalf of Crédit Agricole S.A. on
environments that serve Crédit Agricole S.A., in relation with the
CISO (Chief Information Security Officer) of that entity. Moreover,
systems and applications connected to the internet and internal
servers vulnerable to fraud are covered by special, large-scale
verifications. ISS also coordinates periodic reviews of employees’
access rights to applications.
2021 saw the finalisation of the second component necessary
to comply with French regulations and the follow-up of action
plans resulting from the various projects in the cyber security
programme. The enhancement of Crédit Agricole CIB’s main
administrative networks, as well as those already operated for
the Crédit Agricole Group, has been considered and entrusted
to CA-GIP as part of a multi-year programme.
The main achievements and work carried out can be summarised
as follows:
y
continued improvement of the new tool for monitoring level
1 and 2.1 controls, with international coverage;
y
audit and penetration testing of all application resources
of the Crédit Agricole CIB Group and Crédit Agricole S.A.,
whether visible from the Internet or belonging to a regulated
scop (regulatory monitoring);
y
continued deployment of internet access containerisation tool
for back office payment populations;
y
deployment of a proactive and behavioural protection tool
for workstation environments;
y
regular awareness-raising sessions for existing employees
and systematic sessions for new employees, with for example
awareness-raising sessions in all Business Line Management
Committees. Moreover, the 24 additional awareness-raising
sessions was set up for persons having failed phishing exer-
cises (12 in French and 12 in English), and an e-learning
module was made available on how to detect phishing
attempts, etc.;
y
campaigns by managers to re-certify the access credentials
of all employees (more than 130,000 access credentials)
(all access credentials to sensitive applications recertified,
around 900 applications, with security exemptions also taken
into account);
y
deployment of the tool used to industrialise access credentials
recertification campaigns;
y
continued deployment of strong authentication (token and
certificate holding access cards) on the payment applica-
tions scope;
y
initiation of a pilot phase on the application of strong authen-
tication to workstations;
y
continued roll-out of NAC (Network Access Control) with
the Asia region;
y
deployment of technical account management Workflow tools
to manage requests and life cycle of the accounts;
y
deployment of a new identity and authentication manage-
ment platform to replace the old architecture (new Usignon
platform, deployment in conjunction with the implementation
of applications for customers);
y
effective resumption by the CA-GIP/COC teams of Crédit
Agricole CIB SOC SIEM with the finalised migration to the
Group solution;
y
integration of new code analysis tools in CI/CD chains, mul-
ti-year “Security by Design” approach. Doubling of the scope
of applications covered;
y
reinforcement of the Crédit Agricole CIB IS compliance man-
agement system with French and international regulatory
requirements;
y
roll-out of a portal and mainframe authentication chains;
y
creation of a technical test environment to assess the capacity
to rebuild application chains in the event of a disaster.
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Multiple projects are scheduled for finalisation in 2022 (EDR,
Network Access Control for EMEA, DLP with deployment in
the Americas, continuing deployment of Internet access
containerisation tools, deployment of strong authentication on
workstations, authorisation enhancement programme, deployment
of a new identity management platform for customers).
BUSINESS CONTINUITY PLAN (BCP)
In business continuity matters, the BCP Division defines the
governance and business continuity policies for the entire Group.
For the head office, the BCP Division puts redundancy measures
in place to ensure that business is able to recover within the
time required by the business lines in the event of an incident. It
supports its correspondents in the international network to ensure
that business continuity systems meet the standards defined by
the head office and by local regulators. Annual tests are carried
out to verify Crédit Agricole CIB’s recovery capacity both in France
and internationally and to validate the mechanism.
The aim of these systems is to ensure the safety of employees, by
adopting special protective measures, and to ensure the continuity
of the Bank’s essential business activities. An annual assessment
verifies the effectiveness of the business continuity system. The
BCP Division reports on Crédit Agricole CIB’s level of security
at a quarterly committee meeting chaired by the Deputy Chief
Executive Officer in charge of IOS (IT & Operations Services).
As in 2020, 2021 was dominated by the health crisis, which was
managed without any major incidents thanks to our BCP systems:
y
regular monitoring of employee location (home/production
site/back-up site);
y
activation, when necessary, of back-up sites, thus enabling
critical teams to be divided;
y
massive use of teleworking.
The health crisis did not prevent operational maintenance being
carried out on the BCP in 2021 either at the Head Office or in the
international network. Such work covered:
y
a review of the sizing of the fall-back systems through the
BIA (Business Analysis Impact) campaign;
y
user back-up and IT recovery tests with the stoppage of
one Datacentre, recovery on the emergency DC, and end-
to-end processes, to ensure the correct functioning of all the
applications associated with these processes. The results of
the tests carried out confirmed the operational nature of our
continuity systems.
In terms of outsourcing projects (outsourcing, cloud, etc.), BCP is
involved in defining and validating the service providers’ backup
solutions.
The main objectives for 2022 will be:
y
to establish a new head office back-up strategy in the event
of the unavailability of local working environments, staff or
the mass unavailability of workstations;
y
to continue awareness-raising and communication initiatives
involving all of the Bank’s employees;
y
to improve the resilience of the IT Disaster Recovery Plan in
collaboration with GIT and in particular to review our backup
solutions in the event of the unavailability of the information
system.
THIRD-DEGREE CONTROLS
Periodic controls
The Group Control and Audit Department carries out periodic
controls on Crédit Agricole CIB at all entities falling under its
consolidated scope of supervision. The Group had 146 audit
employees, 58 of whom were based at head office at the end
of 2021.
As a third line of defence, the Group Control and Audit Department:
y
analyses the control mechanisms referred to in Article 12
of the Decree of 3 November 2014 and Article 13 of the
Decree of 6 January 2021, and those ensuring the reliability
and accuracy of the financial, management and operational
information of the areas audited;
y
ensures that the actual risk level is controlled (identification,
recording, control, hedging), particularly credit, market and
exchange rate risks, liquidity, global interest rate-risk, inter-
mediation risk, payment-delivery risk, and the various com-
ponents of operational risk, including the risk of internal or
external fraud, the risk of discontinuation of operations, legal
and non-compliance risk and those mentioned for the first
time in the aforementioned decree (basis risk, dilution risk,
securitisation risk, systemic risk, model risk and excessive
leverage risk);
y
ensure that transactions are compliant;
y
ensures that procedures are followed;
y
ensures that the corrective measures decided upon are correct
implemented;
y
assesses the quality and effectiveness of operations.
The Group Control and Audit Department may also conduct
investigations when significant internal or external fraud is
suspected or confirmed.
Crédit Agricole CIB’s Group Control and Audit Department is
part of the Crédit Agricole S.A. Group’s Internal Audit Business
Line (LMAI). Therefore, the Head of Crédit Agricole CIB’s Group
Control and Audit Department reports directly to the Head of
Crédit Agricole S.A.’s Group Control and Audit Department and
functionally to Crédit Agricole CIB’s Deputy Chief Executive Officer.
The Head of the Group Control and Audit Department benefits
from unrestricted access to Crédit Agricole CIB’s Executive
Management and the Risk and Audit Committees of the Board
of Directors. Moreover, the Group Control and Audit Department
has no responsibility or authority over the activities it controls,
which guarantees its independence.
In carrying out its work, the Group Control and Audit Department
is structured into global business lines. The Group Control and
Audit Department’s teams are based at head office and some
international entities and/or subsidiaries. All Crédit Agricole CIB
internal audit teams report hierarchically to the Head of the Group
Control and Audit Department, unless prohibited by local laws or
regulations, in which case the local internal audit is functionally
supervised by the Group Control and Audit Department.
During the 2021 financial year, the Group Control and Audit
Department’s audits covered various entities and units in France
and abroad on a single-entity or single-subsidiary basis, reviews
of business lines and thematic or cross-functional audits,
including IT and regulatory audits. The Group Control and Audit
Department also carries out specific missions at the request of
Crédit Agricole CIB’s Executive Management, its Risk Committee
or the Group Control and Audit Department.
Auditing work essentially stems from the annual audit plan
determined using an updated risk mapping approach as well
as information provided by Executive Management, the other
control functions, Crédit Agricole CIB’s statutory auditors, the risk
and audit committees of the Board of Directors, as well as the
objectives of Executive Management in terms of internal control
and the instructions of the Board of Directors. The Head of the
Group Control and Audit Department submits the annual audit
plan for the pre-validation of Crédit Agricole’s Head of General
Inspection. It is then presented to the Internal Control Committee
before being examined by the Board of Directors’ Risk Committee
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at a joint meeting with the Board of Directors’ Audit Committee.
The audit plan is then approved by the Board of Directors.
For work with a global scope or work the conclusions of which
are deemed globally relevant, a summary is sent to the Chairman
of Crédit Agricole CIB’s Board of Directors, Crédit Agricole CIB’s
Executive Management and the head of Crédit Agricole’s Control
and Audit Department. A summary of the main conclusions of
the audit reports is presented to the Risk Committee and Crédit
Agricole CIB’s Board of Directors by the Head of the Group
Control and Audit Department or their representative, and to the
Board of Directors and/or the internal control committees of the
controlled departments, as relevant.
The work carried out by the Group Control and Audit Department
and by any external auditing team is subject to a formalised
system in which recommendations are monitored. The progress
made in implementing the recommendations is monitored by the
Group Control and Audit Department:
y
at least twice a year during monitoring assignments;
y
during thematic monitoring of audit assignments, or as part
of investigations conducted as part of a planned audit;
y
at the request of a department via an “open-ended” process,
in close partnership with its permanent Controller. This process
allows the progress of action plans to be recorded between
two semi-annual follow-ups.
Ad hoc committee meetings to escalate recommendations
by business line were also held in 2021 in the presence of
Executive Management, the head of the Group Control and Audit
Department, the head of the department, business line or support
function, along with its permanent controller. They aim to review
the state of progress of implementation of the most sensitive
recommendations.
The results of the follow-up of the recommendations are
presented to Crédit Agricole CIB’s Internal Control Committee.
Where necessary, this process results in the Head of the Group
Control and Audit Department exercising his duty to alert the
Board of Directors and the Board of Directors’ Risk Committee
pursuant to Article 26 b) of the Decree of 3 November 2014.
In accordance with the organisational arrangements shared with
the entities of the Crédit Agricole Group, described above, and
with the arrangements and procedures within Crédit Agricole CIB,
the Board of Directors, Executive Management and Crédit
Agricole CIB’s relevant units are given detailed information about
the internal control and risk exposure, the progress made in
these areas, and the state of implementation of the adopted
remedial measures, as part of an ongoing improvement approach.
This information is contained in the Annual report on internal
control, risk measurement and risk supervision, but also in regular
reporting documents covering business activities, risk and control.
2.4. CREDIT RISKS
A credit risk occurs when a counterparty is unable to fulfil its
obligations and when the book value of these obligations in Crédit
Agricole CIB Group’s records is positive. The counterparty may
be a bank, an industrial or commercial corporate, a government
or government entity, an investment fund or an individual.
The exposure may be a loan, debt security, title deeds,
performance swaps, guarantees given, unused confirmed
commitments or market transactions. The risk also includes the
settlement risk inherent in any transaction entailing an exchange
of cash or physical goods outside a secure settlement system.
Credit risks were the subject of a taxonomy established at Crédit
Agricole Group level and adapted for Crédit Agricole CIB, which
is presented in the preamble to the “Risk Factors” section. This
taxonomy is used below.
2.4.1 Objectives and policy
Risk-taking in Crédit Agricole CIB is done through the definition of
risk strategies approved by the Strategy and Portfolio Committee
(CSP), chaired by Executive Management. The risk strategies are
set for each country, business/product line or sector carrying a
significant risk for the Bank within the scope of control of Crédit
Agricole CIB. They aim to define the principal risk guidelines and
to establish the risk budgets within which each business line
or geographical entity must conduct its activities, and cover:
industrial sectors included (or excluded), type of counterparty,
nature and duration of transactions and activities or authorised
product types, category or intensity of risks incurred, existence
and value of guarantees, overall portfolio volume, definition of
individual and overall risk level, diversification criteria.
By establishing a risk strategy for each scope deemed significant
by Crédit Agricole CIB, the Bank is able to define its risk appetite
and quality criteria for the commitments that it subsequently
makes. It also prevents undesirable excessive concentrations
and allows the risks associated with the portfolio to be diversified.
Concentration risks are managed by using specific indicators for
certain portfolios that are taken into account when granting loans
(individual concentration grid). Concentrations are then monitored
a posteriori for the affected portfolios, by analysing the quantitative
measure assigned to this use, based on the Bank’s internal model.
Finally, portfolios are actively managed within Crédit Agricole CIB
to reduce the main concentration risks and also to optimise its
uses of shareholders’ equity. FIN/EXM uses market instruments
such as credit derivatives or securitisation mechanisms to reduce
and diversify counterparty risks. The management of credit risk
using derivatives is based on the purchase of credit derivatives on
single exposures (see “Information under Pillar 3 Basel III” Credit
risk - Use of credit derivatives section). Use of the securitisation
mechanism is described in “Information under Pillar 3 Basel III”.
Similarly, credit syndication with external banks and the attempt
to hedge risks (credit insurance, derivatives, MRPAs, etc.) are
other solutions used to mitigate concentrations.
More specifically, with regard to counterparty risk in market
transactions, the policy on the establishment of credit reserves
for this type of risk is similar to credit risk with, for “performing”
exposures, a CVA (Credit Valuation Adjustment) risk assessment
mechanism economically comparable to a collective provision,
and for customers in default an impairment appropriate to the
derivative’s situation and taking into account the existence of the
CVA established before default.
In the event of default, the depreciation is assessed in accordance
with the same principles as those governing the credit risk
provisioning policy: expected loss amount depending on the
derivative instrument rank in the waterfall, taking into account the
CVA process, with two possible outcomes: either derivatives are
left in place (CVA or individual provision), or they are terminated
(individual write-off).
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2.4.2 Management of credit risk
GENERAL PRINCIPLES OF RISK-TAKING
Credit decisions are based on the upstream risk strategies that
are described above.
Limits are set for all counterparties and groups of counterparties,
in order to control the amount of commitments, irrespective of
the type of counterparty (corporate, sovereign, banks, financial
institutions, local authorities, SPVs, etc.). Authorisations vary
according to the quality of the risk, assessed by an internal rating
of the counterparty. The credit decision must form part of the
formally approved risk strategies.
Second-degree controls on compliance with limits are carried out
by the “Risk and Permanent Control” Department, supplemented
by a process for monitoring individual and portfolio risks, notably
to detect any deterioration in the quality of counterparties and
Crédit Agricole CIB’s commitments as early as possible.
If the risk has deteriorated significantly since the date that a
commitment was established, the impairment policy under IFRS
9 provides for an increase in the hedging of the commitment in
the form of a provision.
New transactions are approved in accordance with a decision-
making process based on two front office signatures, one from a
manager authorised to make such a request and the other from
a manager with the authority to make a credit decision.
The decision is supported by an independent opinion by the
RPC approved by an authorised RPC signatory and must take
Basel II parameters into account, including the internal rating of
the counterparty and the predictive Loss Given Default (LGD)
attributed to the proposed transactions. An ex ante calculation
of profitability must also be included in the credit file. In the event
that the risk management team’s opinion is negative, the decision-
making power is passed up to Front Office delegatee who chairs
the immediate higher committee.
f
Comparison between internal ratings and those of rating agencies
Groupe Crédit Agricole
A+
A
B+
B
C+
C
C-
D+
D
D-
E+
E
E-
Moody’s equivalent
Aaa
Aa1/Aa2
Aa3/A1
A2/A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1/B2
B3
Caa/Ca/C
Standard & Poor’s equivalent
AAA
AA+/AA
AA-/A+
A/A-
BBB+
BBB
BBB-
BB+
BB
BB-
B+/B
B-
CCC/CC/C
METHODOLOGIES AND SYSTEMS USED TO
MEASURE AND EVALUATE RISK
Internal rating system
The internal rating system covers all methods, procedures and
controls used to calculate credit risk, borrower ratings and loss
given default figures for all of our exposures.
In late 2007, Crédit Agricole CIB received authorisation from the
French Regulatory and Resolution Supervisory Authority (ACPR)
to use its internal credit risk rating system to calculate regulatory
capital requirements.
The methods used cover all types of counterparty and combine
quantitative and qualitative criteria. They are developed by calling
on the expertise of the various financing business lines of Crédit
Agricole CIB or the Crédit Agricole Group if they cover clients
shared by the entire Group. The rating scale has 15 positions. It
has been established on the basis of a segmentation of risk so
as to provide a uniform view of default risk over a full business
cycle. The scale comprises 13 ratings (A+ to E-) for counterparties
that are not in default (including 3 ratings for counterparties
that have been placed under watch) and 2 ratings (F and Z) for
counterparties that are in default.
The relevance of ratings and reliability of data used are assured
through a process of initial validation and maintenance of internal
models, based on a structured and documented organisation
applied to the Group and involving the entities, the Risk and
Permanent Control Department and the Audit-Inspection business
line.
All internal models used by Crédit Agricole CIB were presented to
the Standards and Methodology Committee (CNM) for validation
prior to an internal audit and rating by the Group Control and Audit
Department. They were also validated by the ACPR on 1 January
2008. In addition, a new internal model review system has been in
place since 2014. Each change in internal model is now subject
to a second review by the Group Risk Department’s validation
team before even being presented for validation to the CNM.
Internal ratings of companies are monitored under a system
common to the entire Crédit Agricole Group, serving to guarantee
a uniform rating within the Group and to organise backtesting on
shared customers.
Crédit Agricole CIB has ensured that the risk parameters required
by Basel II, allowing the calculation of capital requirements, are
used as part of the Bank’s internal management. They are used by
all people involved in the process of granting loans and measuring
and monitoring credit risks.
The data used for granting loans and determining ratings is
monitored every two months by a Basel Requirements Review
Committee. This committee, coordinated by the Risk Management
Department and attended by representatives of all business lines,
monitors a set of indicators concerning the quality of the data
used for rating purposes, as well as the calculation of other
Basel II parameters when granting loans, such as loss given
default (LGD), credit conversion factor (CCF), risk reduction factor
(RRF), etc. This committee strengthens the implementation by
the business lines of the Basel II system and, where necessary,
decides on corrective actions when anomalies are detected. It
provides important help in checking that the Basel II system is
used properly by the business lines.
Backtesting system
Backtesting aims to ensure the robustness, performance and
predictive power of the Bank’s internal models over time. It
also serves to detect significant changes in the structure and
behaviour of portfolios and clients. It then leads to decisions to
adjust or even recast models in order to take account of these
new structural elements.
On the backtesting of the PD (Probability of default) scope, the
following analysis is carried out:
y
consistency between observed long run average (LRA) default
rates and the master scale PDs (based on the calculation of
a confidence interval around the LRA default rate);
y
analysis of defaults (including discriminating power and more
qualitative analysis in the case of low default portfolios (LDPs);
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y
stability of ratings over time (both in terms of distribution
of the portfolio’s ratings and of one-year changes in the
portfolio’s ratings);
y
analysis of the model parameters (analysis of variables involved
in determining ratings, correlations, changes to various inter-
mediate ratings, etc.).
The main objective of the LGD backtesting that is carried out is
to regularly compare for all LGD models in IRBA:
y
predictive LGDs: LGDs assigned by the internal model to trans-
actions within Crédit Agricole CIB’s portfolio on a given date;
y
and historic LGDs:
-
LGDs derived from recovery histories following default, for
closed and open files with a maturity in excess of the maximum
recovery period;
-
LGDs calculated using recovery histories following default and
estimated future recoveries, for open files with a maturity of
less than the maximum recovery period.
The risk horizon set by the regulator is one year; the predicted
LGDs associated with the transactions should therefore be
compared, one year prior to default, with historic LGDs.
The nature of LGD models and the volume of defaults being
different for each LGD scope, LGD backtesting studies are
adapted to each scope. At the very least, the LGD backtesting
of a scope will compare the predictive and historical LGD
quantitatively and or qualitatively based on volumes.
There are three main types of LGD scopes detailed as follows:
y
the specialised financing scope: in relation to the financing of
assets (Aeronautics, Real Estate/Hotels, Rail and Shipping),
predictive LGD is obtained using a theoretical model based
on the diffusion of asset values, unlike project financings,
transactional trading and structured commodities, for which
predictive LGD is obtained from a grid specific to each model
and based on the quality of the sponsor, the asset’s liquidity,
the recourse phases in relation to the goods or the final buyer;
y
the unsecured corporate, bank and sovereign financing scope:
the predictive LGD is obtained using an LGD grid specific
to each scope (corporate, bank, insurance, etc.) involving
third-party variables such as business sector, level of turnover,
risk country, etc.;
y
the secured corporate, bank and sovereign financing scope:
the predictive LGD is obtained by applying Risk Reduction
Factors to the elements secured by a personal guarantee
or by collateral and using the unsecured LGD grids for the
non-secured elements.
The backtesting of default rates carried out on Crédit
Agricole CIB’s Large Clients portfolio in 2021 thus ensures the
relevance of PD models. The one-year estimated PD is confirmed
by the default rates actually observed over the period in question,
and an even greater period.
For models within its area of responsibility, Crédit Agricole CIB
reports back to the Group annually on the backtesting results,
through both the Validation Technique Committee and the CNM,
thereby confirming the proper application of the selected statistical
methods and the validity of the results. The summary document
recommends, where necessary, appropriate corrective measures
(methodology review, recalibration, training effort, control
recommendations, etc.).
Credit risk measurement
The measurement of credit risk exposures covers both
drawn facilities and confirmed unutilised facilities. To measure
counterparty risk on capital markets transactions, Crédit
Agricole CIB uses an internal method for estimating the underlying
risk of derivative financial instruments such as swaps and
structured products.
Counterparty risks in capital market activities are assessed for
potential risk linked to fluctuations in the market value of derivative
instruments for the remainder of their life. This is determined
according to the nature and remaining maturity of agreements,
based on a statistical observation of changes to underlyings.
When the netting and collateralisation agreements with the
counterparty allow, counterparty risk is measured for the portfolio
net of eligible collateral. This method is used for the internal
management of counterparty risks.
To reduce exposure to counterparty risks, Crédit Agricole CIB
implements netting and collateralisation agreements with
its counterparties (see section 2.4.4 “Credit risk mitigation
mechanism”).
The figures on credit risks are presented in section 2.4.5 et seq. of
this chapter and in Note 3 to the consolidated financial statements
(cf. Chapter 6 “Consolidated financial statements at 31 December
2021” of the present Universal Registration Document).
Concentration risks
Decision-making and individual risk monitoring within Crédit
Agricole CIB are backed up by a portfolio risk monitoring system
that enables the Group to assess counterparty risks for its overall
portfolio and for each of the constituent sub-portfolios, according
to a breakdown by business line, sector, geographic region, or
any delineation that brings out specific risk characteristics in the
overall portfolio.
In principle, portfolio reviews are carried out yearly on each
significant scope in order to check that the portfolio is consistent
with the risk strategy in force, to assess the various segments
of the portfolio against one another and against any aspects
of the operating environment or external factors that may be
influencing them.
Different tools have been implemented to detect any concentration
deemed to be excessive for the entire portfolio, sub-portfolios or
at a unit level:
y
unit concentration scales were implemented to give reference
points according to the nature, the size, the rating and the
geographic region of the counterparty. They are used in the
granting process, and subsequently applied periodically to
certain portfolios to detect concentrations which may later
appear excessive;
y
regular monitoring and ad hoc analysis are regularly carried
out on sectoral and geographical concentrations with recom-
mendations for action then made. Concentration risks may
be taken into account to analyse the risk strategies of the
business lines or geographic entities;
y
information is fed back to Executive Management where
necessary on the concentration status of the portfolio.
Crédit Agricole CIB uses credit risk modelling tools and in particular
an internal portfolio model that calculates risk indicators such as:
average loss, volatility of potential losses and economic capital.
Average loss and volatility figures enable Crédit Agricole CIB
to anticipate the average risk-related cost in its portfolio, and
changes therein. Economic capital is an additional measurement
of Basel II regulatory capital, to the extent that it allows a more
detailed view of the portfolio through a correlation model and
parameters calibrated using internal data bases.
The internal portfolio model also takes into account the impact of
protection (Credit Default Swaps, securitisations) purchased by
Crédit Agricole CIB’s Credit Portfolio Management unit. Finally, it
measures the effects of concentration and diversification within
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our portfolio. These effects are studied based on individual and
geo-sectoral criteria.
Stress scenarios are the final type of counterparty risk assessment
tool. They are regularly produced to estimate the impact of
economic scenarios (central, adverse) on some or all parts of
the portfolio.
Sector concentration risk
Crédit Agricole CIB’s portfolio is analysed by major industrial
sector at regular intervals. Risks within each sector in terms of
commitments, level of risk (expected loss, economic capital) and
concentration are examined.
Concentration is assessed on two levels: idiosyncratic and
geosectoral. The detail of these analyses can be increased
depending on the analyst’s needs.
Meanwhile, the economic and financial risks of each significant
sector are analysed and leading indicators of deterioration are
monitored.
Specific stress scenarios are also prepared where necessary,
for instance during the strategic review of an entity of the Bank.
In the light of these various analyses, measures to diversify or
protect sectors at risk of deterioration are recommended.
Country risk
Country risk is the risk that the economic, financial, political, legal
or social conditions of a foreign country will affect the Bank’s
financial interests. It does not constitute a different type of risk
from “basic” risks (credit, market, operational), but rather an
aggregation of the risks resulting from vulnerability to a specific
political, social, macroeconomic and financial environment.
The system for assessing and monitoring country risk within Crédit
Agricole CIB is based on a proprietary rating methodology. The
internal rating assigned to each country is based on criteria of
financial strength of the country’s government, banking system
and economy, capacity and willingness to pay, governance and
political stability.
Any regions in which we plan to do business are subject to the
implementation of a risk strategy ad initio. Therefore, any region
in which authorisations are used must have a previously validated
country limit. Risk strategies, validated by the appropriate
committee, define country limits. These are defined as often as
necessary and generally once a year.
This approach is supplemented by scenario analyses aimed
at testing the impact of adverse macroeconomic and financial
assumptions and provide an integrated view of the risks to which
the Bank could be exposed in situations of extreme stress.
The scenarios defined by the ECB are analysed.
The Group’s country risk management and control audits are
based on the following principles:
y
acceptable exposure limits in terms of country risk are deter-
mined when country strategy reviews are performed, based
on the assessment of the portfolio’s degree of vulnerability to
the materialisation of country risk. This degree of vulnerability
is determined by the nature and structure of the transac-
tions, the quality of the counterparties and the duration of the
commitments. These exposure limits may be reviewed more
frequently if made necessary due to developments in a given
country. These strategies and limits are validated according
to risk issues by the “Strategies and Portfolios” Committees
(CSP) of Crédit Agricole CIB and the Group Risk Committee
(CRG) of Crédit Agricole S.A. in addition to being validated
by the Board of Directors of Crédit Agricole CIB;
y
A country risk system is maintained by the institution and the
rating of each country/region in which the Group holds com-
mitments or interests is updated every six months. Specific
types of events may call for a review of the rating outside
this schedule.
Within the Risk and Permanent Control Department, the entity
in charge of country risk must issue an opinion on transactions
whose size, maturity or degree of intensity in respect of country
risk are liable to affect the quality of the portfolio using a grid:
supervision and management of exposure to country risk, both
from a quantitative (amount and duration of exposure) and
qualitative (vulnerability of the portfolio) standpoint, thanks to
specific and regular reporting on all country exposures.
Exposures to sovereign risk are detailed in Note 6.7 to the
consolidated financial statements.
Counterparty risk in market transactions
Derivatives and repo transactions carried out by Crédit
Agricole CIB as part of its capital market activities generate a
risk of credit in relation to the counterparties to the transaction.
Crédit Agricole CIB uses an internal methodology to estimate the
inherent risk in these instruments, taking a net portfolio approach
at the level of each client:
y
current risk corresponds to the sum owing by the counterparty
in the event of instantaneous default;
y
potential future risk is the estimated maximum value of Crédit
Agricole CIB’s exposure within a given confidence interval.
The methodology used is based on “Monte Carlo” type
simulations, enabling the risk of change over the derivatives’
remaining maturity to be assessed based on statistical modelling
of the change in underlying market parameters.
The model also takes account of various risk mitigation factors
such as the netting and collateralisation arrangements provided
for in the documentation negotiated with counterparties prior
to transactions being carried out. It also includes exchanges
of collateral on the initial margin for non-cleared derivatives, in
accordance with the thresholds in force.
Situations with a specific risk of unfavourable correlation (risk
that an exposure to a derivative is positively correlated with the
counterparty’s probability of default as a result of a legal link
between this counterparty and the underlying of the derivative)
are monitored regularly to identify and integrate such risks in
the exposure measurement as recommended by regulations.
Situations with a general risk of unfavourable correlation (risk that
market conditions have a correlated effect on a counterparty’s
credit quality and derivative exposures with this counterparty)
are monitored through ad hoc exercises in 2021. The internal
model is used to manage internal limits on transactions with each
counterparty and to calculate Basel II Pillar 2 economic capital
via the average risk profile (Expected Positive Exposure) using a
global portfolio approach.
As allowed by the regulatory framework, the French Regulatory
and Resolution Supervisory Authority (ACPR) authorised Crédit
Agricole CIB, on 31 March 2014, to use the internal model method
to calculate its capital requirements in respect of counterparty
risk. This method uses the model described above to determine
Effective Expected Positive Exposure (EEPE) and is applied to
all derivatives. The same method is used to calculate the value
exposed to credit risk for capital requirement purposes to address
the risk of credit value adjustment.
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Crédit Agricole CIB uses the standard approach for the calculation
of regulatory capital requirements in respect of counterparty
risk on repo transactions and derivative transactions by its
subsidiaries.
Credit risk associated with these market transactions is managed
in accordance with rules set by the Group. The policy on setting
counterparty risk limits is identical to the policy described in
“Credit risk management General principles of risk taking” (see
“Risk Management” section 2.4.2 Credit risk management). The
techniques used by Crédit Agricole CIB to reduce counterparty
risk on market transactions are described in “Credit risk mitigation
mechanisms” (see “Information under Pillar 3 Basel
III” section 3.2.4.2).
In determining the fair value of derivatives, Crédit Agricole CIB
incorporates the measurement of counterparty risk on derivative
assets (Credit Value Adjustment or CVA); this value adjustment
is described in consolidated note 1.2 on accounting principles
and methods and 11.2 on information on financial instruments
measured at fair value.
The charts below show the changes in CVA VaR and CVA
stressed VaR over 2021.
f
1-day CVA VaR for a 99% confidence interval (€ million)
Jan.
2021
Feb.
2021
March
2021
April
2021
May
2021
June
2021
July
2021
Aug.
2021
Sept.
2021
Oct.
2021
Nov.
2021
Dec.
2021
0.0
1.0
2.0
3.0
4.0
5.0
6.0
f
1-day CVA stressed VaR for a 99% confidence interval (€ million)
Jan.
2021
Feb.
2021
March
2021
April
2021
May
2021
June
2021
July
2021
Aug.
2021
Sept.
2021
Oct.
2021
Nov.
2021
Dec.
2021
0
5
10
15
20
25
The gross positive fair value of the contracts, the benefits of netting and collateral held and the net exposure to derivatives after netting
and collateral are detailed in consolidated note 6.9 on the netting of financial assets.
Chapter 5 – Risks and Pillar 3
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2.4.3 Commitment monitoring system
MONITORING SYSTEM
The first-degree controls on compliance with the conditions that
accompany a credit decision are carried out by the Front Office.
The Risk and Permanent Control Department is in charge of
second level controls.
Commitments are monitored for this purpose, and portfolio
business is constantly monitored in order to identify at an early
stage any assets that might deteriorate. The aim is to adopt
practical initiatives as early as possible so as to protect the Bank’s
interests.
Commitment monitoring methods
The main methods used in this monitoring are:
y
day-to-day controls on credit decision compliance, in terms of
amount and maturity date, for commercial transactions as well
as capital market transactions, for all types of counterparty
and all categories of counterparty risk encountered (in the
market activities scope: risk of change, delivery, issuer, cash,
intermediation, initial margin and default funds with clearing
houses for the capital market scope, loan syndication risk
and late payment for the financing scope, etc.);
y
the presentation of detected anomalies at the committee
meetings to which the relevant Business Lines and Risk &
Permanent Control (RPC) departments contribute;
y
breaches are monitored and may give rise to corrective meas-
ures and/or special monitoring with the Business Lines. The
frequency of these committee meetings varies depending on
the scope: bimonthly for the market transactions scope and
quarterly for the financing transactions scope;
y
communication to Executive Management of a monthly
summary and a quarterly presentation to the Internal Control
Committee on anomalies for the market scope.
Permanent monitoring of portfolio businesses
Several bodies permanently monitor portfolio businesses, to
detect any possible deterioration or any risk concentration
problem as early as possible:
y
monthly “Early warning” meetings are held, which endeavour,
by various means, to identify early signs of potential deteri-
oration in loans which are healthy but deemed sensitive, in
order to reduce or cover the risk exposure;
y
quarterly reviews of major risks are carried out, regardless of
the nature of the borrowers in question;
y
regular research on excessive unit, sector and geographic
concentrations is carried out;
y
a risk situation is established for counterparty risks on
market transactions (variation risk calculated under normal
and stressed market conditions), issuer risks, risks on bond
repos, and guarantee risks on credit derivatives. Reports on
risk management relating to the unfavourable correlation risk
on credit derivatives, equity derivatives, mandatory repos
and equity loans and borrowing are also produced. These
documents are presented to and analysed in the committees
dedicated to such matters.
These steps result in:
y
changes to the internal ratings of counterparties, which are,
where necessary, classified as “sensitive cases”;
y
practical decisions to reduce or cover at-risk commitments;
y
loans and receivables possibly being transferred to the spe-
cialised collections unit.
Identification of forbearance measures
Since 2014, Crédit Agricole CIB has identified in its information
systems the outstanding amounts that have been the subject of a
“forbearance” measure, as defined in Article 47b of Implementing
Regulation 2019/630 of the European Parliament and of the
Council. A pre-identification procedure is first carried out, during
the loan approval process, in which Crédit Agricole CIB studies
its clients’ credit restructuring requests. Once the forbearance
measure has actually been implemented, the outstanding
amounts subject to the forbearance measure are declared as
such, regardless of their internal rating or their status (performing
or non-performing). If the forbearance measure results in a
reduction of 1% or more in the present value of the restructured
outstandings calculated at the original effective interest rate, it is
classified as an “emergency restructuring”, a reason for a Basel
default. Outstanding amounts are no longer reported as having
been the subject of a forbearance measure after verification at an
annual review or an ad hoc credit committee meeting that they
meet the exit conditions defined in the aforementioned regulation.
Outstanding amounts subject to a forbearance measure are
reported in Note 3.1 to the consolidated financial statements.
A forbearance measure indicates a significant deterioration in
credit risk under IFRS 9. The accounting principles that apply
to these outstanding amounts are described in Note 1.3 to the
consolidated financial statements.
SENSITIVE CASE MONITORING AND IMPAIRMENT
Sensitive cases, whether “under Special Supervision” or bad
debts, are closely monitored by the entities, and enhanced
surveillance is carried out on a regular basis.
This review takes the form of quarterly sensitive case committee
meetings chaired by the Risk and Permanent Control Manager -
Sensitive Cases and Impairment, which review the classification
of these cases as sensitive cases and determine whether they
should be transferred to a specialised team (DAS, UGAM for ship
financing or SGADS for aircraft financing) and the appropriate
level of specific impairment which is reported to Executive
Management, which must validate it and then transfer it to Crédit
Agricole S.A..
The definition of default that is used complies with the provisions
of European Regulation No. 575/2013 of 26 June 2013. Stringent
default identification processes and procedures have been put in
place on these bases. These are updated as and when regulations
change, and were updated at the end of 2019 to incorporate
European Banking Authority Guidelines No. 2016-07.
STRESS SCENARIOS
Credit stress tests are carried out to assess the potential impact
the Bank may face (in terms of loss, provisioning and capital) in
the event of a serious deterioration in the economic and financial
environment.
There are three categories of stress test:
y
the first aims to reflect the impact of a macroeconomic dete-
rioration affecting the entire portfolio in terms of cost of risk,
regulatory capital requirements and impact on the solvency
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ratio. Such a scenario is mandatory as part of the strength-
ened prudential supervision required under Pillar 2 of Basel
II. Since 2014, this has been led by the ECB and the EBA,
with the aim of testing the financial solidity of the banks and/
or the banking system as a whole. Since 2016, the results
of the regulatory stress tests are taken into account in the
calibration of capital requirements under Pillar 2;
y
the second takes the form of budget simulations and aims
to stress-test the central budget of the bank on the basis
of an economic scenario communicated by Crédit Agricole
S.A. in the budget process;
y
the third involves targeted stress tests on a particular sector
or geographical zone that constitutes a homogeneous group
in terms of risks. This type of stress test is carried out on
a case-by-case basis as part of the management of risk
strategies. It provides an insight into losses and/or capital
requirements in the event that an adverse scenario defined
for the specific purposes of the year should materialise; thus,
the selected strategy and notably the amount of the requested
budgets may be challenged in light of the creditworthiness of
the portfolio to date, and the impact of economic situations
potentially adverse to the portfolio in question may also be
taken into account. Sensitivity tests may be carried out in
addition to these stress tests.
The economic scenarios used for the projection of risk parameters
have been adapted to factor in the beginning of the end of the
pandemic. The central scenario included the lifting of mobility
restrictions from mid-2021 and a return to pre-crisis levels of
activity by mid to late 2022 depending on the business sector.
The adverse scenario addressed economic overheating, which
generated significant inflation in the United States as well as
economic deterioration in France amid the presidential elections.
2.4.4 Credit risk mitigation mechanism
COLLATERAL AND GUARANTEES RECEIVED
Crédit Agricole CIB requires guarantees and collateral from a
significant number of its counterparties to reduce its risks on both
financing and market transactions.
The Basel II eligibility principles on accepting and managing
guarantees and collateral are defined by the Crédit Agricole
Group’s Standards and Methodology Committee.
This common framework ensures a consistent approach across
the Group’s various entities. The committee documents aspects
including the regulatory treatment, valuation and revaluation
methods and all credit risk mitigation techniques used within the
Crédit Agricole CIB Group. Crédit Agricole CIB then devises its
own operational procedures and arrangements for the detailed
management of these guarantees and collateral.
Commitments given and received are described in Note 8 to the
consolidated financial statements.
USE OF NETTING AGREEMENTS
In accordance with the recommendations of the Basel Committee
and the CRD IV European Directive on regulatory capital, the
French Regulatory and Prudential Supervisory Authority (ACPR)
requires strict compliance with several conditions in order to
trigger close-out netting and for it to be included in the calculation
of a financial institution’s capital requirements.
These conditions include: Crédit Agricole CIB obtaining recent
written and reasoned legal opinions as well as proceedings “in
order to ensure at any time the validity of the novation agreement
or the netting agreement in the event that applicable regulations
are revised”.
Close-out netting is defined as the possibility, in the event of
default by the counterparty (including in the event of bankruptcy
procedures), to terminate ongoing transactions in advance and
to be able to calculate a net balance of the reciprocal obligations,
using a calculation method stipulated in the contract.
Thus, close-out netting is an early netting mechanism with three
stages:
1.
early termination of transactions under a “master” agreement in
the event of a default or a change in circumstances;
2.
calculation of the market value (positive or negative) of each
transaction at the date of termination (and the valuation of any
collateral);
3. calculation and payment of the net single termination balance
including the valuation of the terminated transactions, all
collateral and outstanding amounts due (by the party liable for
the net amount).
Collateral (or collateralisation) represents a financial guarantee
mechanism used in OTC markets, which allows securities or cash
to be transferred by way of security or with full title transferred,
during the period of the hedged transactions. In the event of
default by either party, the collateral will be included in the
calculation of the net balance of the reciprocal obligations under
the master agreement that has been signed with the counterparty.
The implementation of the close-out netting and collateralisation
mechanism is analysed in each country by reference to the type
of contract, counterparty and product. Countries are classified
as either A or B.
Countries classified as A are those where the laws and regulations
are deemed to provide sufficient certainty for the recognition
and effective implementation of the close-out netting and
collateralisation mechanisms, including in the event of bankruptcy
of the counterparty. Conversely, countries classified as B are those
where there is a risk that these mechanisms are not recognised
or in respect of which no legal opinion has been provided.
The conclusions of these analyses and the proposals of
classification by countries are presented for approval at
meetings of the Netting and Collateral Policy Committee (or PNC
Committee).
USE OF CREDIT DERIVATIVES
Crédit Agricole CIB uses credit derivatives and a range of risk
transfer instruments, including securitisation, in managing its
banking book (see Basel III Pillar 3 disclosures).
At 31 December 2021, outstanding protection purchased in the
form of credit derivatives amounted to €7.2 billion (€6.8 billion at
31 December 2020), the notional amount of the short positions
was null (identical to 31 December 2020).
Crédit Agricole CIB trades credit derivatives with around ten
top-tier
investment grade
, competent and regulated banks as
counterparties. Moreover, 64% of these derivatives are processed
through a clearing house (60% at 31 December 2020), which
acts as a guarantor of these credit risk hedging transactions.
Bilateral transactions (i.e. processed outside the clearing house)
are conducted with investment grade counterparties, which are
competent and regulated, located in France, the United Kingdom
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or the United States and which act as guarantors of these credit
risk hedging operations. The bank monitors any concentration
of risks on these hedging providers outside the clearing house,
applying notional limits per banking counterparty, set and reviewed
annually by the Crédit Agricole CIB Risk Control Department.
These credit derivative transactions, carried out as part of credit
risk mitigation measures, are the subject of a prudent valuation
adjustment to cover market risk concentration.
The notional amounts of credit derivative outstandings are included
in Note 3.2.2 to the consolidated financial statements “Derivative
instruments: total commitments” of chapter 6 “Consolidated
financial statements at 31 December 2021”.
2.4.5 Exposures
MAXIMUM EXPOSURE TO CREDIT RISK
The maximum exposure to an institution’s credit risk is the net
carrying amount of loans and receivables and debt and derivative
instruments before netting and collateral agreements. This is
shown in Note 3.1 to the financial statements.
As at 31 December 2021, Crédit Agricole CIB’s maximum
exposure to credit and counterparty risk was €694 billion,
compared with €667 billion as at 31 December 2020.
CONCENTRATIONS
Breakdown of counterparty risk by geographic
region (including bank counterparties)
Loans granted by Crédit Agricole CIB net of Export Credit
Guarantees and excluding UBAF (i.e. €418 billion at 31 December
2021 compared with €373 billion at 31 December 2020) are
broken down by geographic region as follows:
Breakdown in %
31.12.2021
31.12.2020
31.12.2019
Other Western European
countries
28.74%
30.69%
29.0%
France
28.49%
24.44%
21.2%
North America
16.72%
17.47%
182%
Asia (excluding Japon)
11.81%
11.06%
10.9%
Japan
5.80%
7.46%
11.0%
Africa and Middle East
4.57%
4.46%
4.9%
Latin America
2.09%
2.46%
2.8%
Other European countries
1.76%
1.97%
2.1%
Other and supranational
0.00%
0.00%
0.0%
Source: risks (excluding UBAF, commercial commitments on the balance sheet and off-
balance sheet commitments of customers and banks, net of export credit guarantee).
Note 3.1 to the consolidated financial statements also presents
the breakdown of loans and receivables and commitments given
to customers and credit institutions by geographic region based
on accounting data.
The overall balance of our portfolio in terms of distribution between
the various geographic areas was stable overall compared to
2020. It should be noted, however, that he shares of commitments
in Japan decreased due to the reduction in our deposits with the
Japanese central bank. The share of commitments in France
increased from 24.4% to 28.5% between end-2020 and end-
2021. This can mainly be attributed to the increase in our deposits
with the Banque de France, and the implementation of exceptional
transactions to support our top French clients during the health
crisis, particularly in the automotive and aeronautics sectors.
Breakdown of risks by business sector (including
bank counterparties)
At 31 December 2021, loans granted by the Crédit Agricole CIB
Group, net of export credit guarantees (excluding UBAF), totalled
€418 billion (€530 billion gross), compared with €373 billion in
2020 (€480 billion gross).
The distribution can be broken down by economic sector as
follows:
Breakdown in %
31.12.2021 31.12.2020 31.12.2019
Bank
20.27%
18.82%
21.12%
Miscellaneous
16.52%
16.86%
17.13%
O/w Securitisations
9.05%
9.49%
9.97%
Oil & Gas
8.81%
8.80%
9.46%
Other financial activities (non-
banking)
6.34%
5.81%
5.53%
Real estate
4.46%
4.57%
4.73%
Electricity
4.71%
4.59%
4.18%
Aerospace/Aeronautics
3.56%
4.25%
3.84%
Heavy industry
3.33%
3.44%
3.46%
Automotive
3.23%
4.04%
2.81%
Maritime
2.59%
2.82%
2.90%
Telecom
2.65%
3.02%
3.32%
Construction
1.95%
2.42%
2.49%
Insurance
2.15%
2.37%
2.08%
Other industries
2.78%
3.08%
2.54%
Other transport
2.21%
2.64%
2.36%
Production & Distribution of
Consumer Goods
2.65%
2.66%
2.60%
IT/Technologies
2.14%
1.99%
2.37%
Health/Pharmaceuticals
1.67%
1.75%
1.91%
Agri-food
1.43%
1.61%
1.48%
Tourism/Hotels/Restaurants
1.40%
1.38%
1.18%
Non-commercial services/
1.47%
1.78%
1.23%
Public sector/Local
authorities
Media/Publishing
0.50%
0.47%
0.56%
Utilities
2.89%
0.46%
0.42%
Wood/Paper/Packaging
0.29%
0.38%
0.28%
TOTAL
100.00%
100.00%
100.00%
Source: risks (excluding UBAF, commercial commitments on the balance sheet and off-
balance sheet commitments of customers and banks, net of export credit guarantee).
The overall balance of the portfolio, in terms of the breakdown
between the different sectors, has remained globally stable year-
on-year. The following should be noted:
y
the rise in our commitments to banks (+21% compared with
31 December 2020) was largely due to the significant increase
in our deposits with the Banque de France. At 31 December
2021, our exposures represented €38 billion compared with
€23 billion at the end of December 2020 for the Banque
de France;
y
the majority of the Miscellaneous segment comprises secu-
ritisation transactions, mainly liquidity facilities granted to
securitisation programmes financed through our conduits;
these outstandings were relatively stable in 2021. Other com-
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mitments concern clients with a highly diversified activity
(particularly wealth management/financial holding companies);
y
the “Oil & Gas” sector is the main component of the “Energy”
exposure. This segment brings together a diverse range of
underlying assets, companies and financing types, certain
of which, such as RBL (Reserved-based Lending, being run
down in the US) are usually secured by assets. Most of
the exposure in the oil sector relates to operators that are
structurally less sensitive to the fall in oil prices (public sector
companies, large international companies, transportation/
storage/refinery companies). Conversely, clients focused on
exploration/production and those dependent on industry
investment levels (oil services) are the most sensitive to market
conditions. After a severe crisis affecting the oil sector in 2016
and amid oil price volatility observed since the first half of
2020, Crédit Agricole CIB did not record any major problems
in its portfolio, which showed good resilience... The “Oil &
Gas” sector, already closely watched for several years, is
still extensively monitored and is subject to a very selective
exposure approach, and any new significant transactions
are subject to an in-depth analysis of credit risk and CSR
when necessary;
y
the “Electricity” sector is another component of “Energy”
exposure but has its own characteristics, which are not directly
associated with the oil and gas segments. Half of our exposure
relates to major integrated or diversified groups;
y
the “Property and Tourism” portfolio mainly consists of spe-
cialised financings of quality assets granted to real estate
investment professionals. Other corporate-based financing is
mainly granted to major real estate companies and is often
accompanied by interest rate hedges. The balance of Crédit
Agricole CIB’s commitments includes guarantees issued on
behalf of leading French property developers and interest rate
hedges for social housing market participants (mainly public
sector agencies) in France. The health crisis has weighed
heavily on investments and leases. Retails stores have been
hit hard by the consequences of lockdowns and the tourism
industry has been heavily impacted internationally. Crédit
Agricole CIB’s portfolio, which was of excellent quality before
the crisis, has shown its resilience but remains under close
monitoring;
y
“Aeronautics” sector financing involves either asset financing
of very high-quality assets, or the financing of major, world-
leading manufacturers;
y
the “Automotive” portfolio has been the focus of special
attention since the end of 2018 and is focused mainly on
large manufacturers, with limited development in the auto-
motive supplier sector. After a significant increase in our
sector commitments in 2020 (+€5 billion vs. 2019), mainly
stemming from the establishment of an exceptional budget
for a 24-month period intended to help our top clients meet
their liquidity needs in the current health crisis, commitments
decreased slightly in 2021 and totalled €13.5 billion;
y
the current position of the “Shipping” segment is the result of
Crédit Agricole CIB’s expertise and background in mortgage
financing for ships, which it provides to its international ship-
owning clientele. After 10 challenging years, shipping has been
showing signs of recovery since 2018 and, aided by a major
improvement in tonnage supply, saw a sharp rebound in 2021,
although it remained uneven and fragile depending on the sector.
However, our portfolio remained relatively well protected thanks
to its diversification (financing of oil tankers, gas carriers and
off-shore facilities, cargo ships, container ships, cruise ships,
etc.), and by the quality of its financing structure for ships,
secured by mortgage loans and cover from credit insurers;
y
the “Heavy Industry” sector mainly includes large global
companies in the steel, metals and chemicals sectors. In
this sector, commitments to the Coal segment continued to
be reduced, in line with Crédit Agricole Group’s CSR policy;
y
exposure to the “Telecoms” sector fell compared with 2020.
The sector has commitments to operators and suppliers. It
is mainly made up of corporate financing. The telecommu-
nications sector has shown very good resilience during the
Covid-19 health crisis;
y
the “Production and distribution of consumer goods” sector
mainly comprises large French retailers with a global footprint.
Their ratings remain strong despite the competitive environ-
ment in which they operate.
Breakdown of outstanding loans and receivables
by economic agent
Concentrations by economic agent of loans and receivables and
commitments to credit institutions and customers are presented
in Note 3.1.4 to the consolidated financial statements.
Outstanding loans and receivables amounted to €252.2 billion
at 31 December 2021.
Concentration of the top ten counterparties
(clients)
In terms of commitments, excluding export credit guarantees,
these accounted for 6.1% of Crédit Agricole CIB’s total exposure
at 31 December 2021, stable compared to 31 December 2020.
Quality of portfolios exposed to credit risk
At December 31, 2021, performing exposures amounted to
€418 billion in net outstanding loans. Their ratings broke down
as follows:
Breakdown in %
31.12.2021
31.12.2020
31.12.2019
AAA (A+)
21.72%
21.24%
22.1%
AA (A)
4.18%
4.96%
4.4%
A (B+ et B)
27.14%
27.34%
28.7%
BBB (C+ à C-)
33.02%
32.08%
33.2%
BB (D+ à D-)
10.16%
10.57%
8.9%
B (E+)
1.31%
1.10%
0.5%
Commitments under
surveillance (E and E-)
1.02%
1.09%
1.0%
Source: risks (excluding UBAF, commercial commitments on the balance sheet and off-
balance sheet commitments of customers and banks, net of export credit guarantee).
In 2021, the quality of the portfolio remained broadly stable
compared to 2020. The proportion of
investment grade
ratings
held steady at 86% of the portfolio, still reflecting the high quality
of the portfolio.
Application of IFRS 9
The principles used to calculate expected credit loss (ECL)
are described in the accounting policies and principles (Credit
Risk section) which include, in particular, the market inputs,
assumptions and estimation techniques used.
In order to calculate expected credit loss in the next 12 months
and for the entire remaining life, and in order to determine whether
the credit risk of financial instruments has increased significantly
since their initial recognition, the Group draws mainly on data
used as part of the regulatory calculation system (the internal
rating system, evaluation of risk reduction factors and loss given
defaults).
Two distinct types of forward-looking macroeconomic information
are used when estimating expected loss: central forward-
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looking information, used to ensure the homogeneity of the
macroeconomic vision for all group entities, and local forward-
looking information, which can be used to adjust the parameters
of the central scenario to take into account Crédit Agricole CIB’s
specific local characteristics.
In putting together the central forward-looking information, the
Group relies on four prospective macroeconomic scenarios drawn
up by Crédit Agricole S.A.’s Economic Research Department
(ECO), which are weighted based on their expected probability
of occurrence. The baseline scenario, which is based on budget
assumptions, is supplemented by three other scenarios (adverse,
moderate and favourable). Quantitative models for assessing the
impact of macroeconomic data on the evolution of ECL are also
used in internal and regulatory stress tests.
The economic variables are updated quarterly and contain the
factors that affect the Group’s main portfolios (for example:
change in French and Euro zone countries’ GDP, unemployment
rate in France and Italy, household investment, oil prices, etc.).
The economic outlook is reviewed each quarter by the IFRS 9
Coordination Committee which brings together the main Group
entities as well as any departments of Crédit Agricole S.A. that
are involved in the IFRS 9 process.
The central scenario used in the Group’s and its entities’ central
forward-looking forecasting models can be summarised as
follows:
The lifting of travel restrictions, particularly in France from Q2
2021, and the rapid ramp-up of vaccination campaigns, led to
a sharp rebound in consumer spending and growth from Q2
2021. This trend carried over into 2022, on the back of resilience
to the new waves of the epidemic and despite the supply chain
disruptions affecting certain sectors.
In line with 2021, inflation will continue to affect the United States
and, to a lesser extent, the eurozone.
Impairment and risk hedging policy
Accounting standard IFRS 9 came into effect on 1 January 2018,
replacing IAS 39. It specifies the new accounting classification
rules for financial assets, redefines the model and principles of
credit risk impairment of financial assets, specifies the methods
for recognising the effects of credit risk on liabilities, and finally
details the new hedge accounting methods.
INDIVIDUALLY IMPAIRED ASSETS
The breakdown by economic agent and geographic area of
impaired loans and receivables due from credit institutions and
customers is presented in Note 3.1 to the consolidated financial
statements. These financial statements describe in detail the
impairment on doubtful and irrecoverable loans and receivables.
ECL BUCKET 1 & 2
Impairment for credit risk under IFRS 9 has the following
characteristics:
y
the impairment applies to all asset transactions recognised
at amortised cost or at fair value through equity;
y
impairment under IFRS 9 is estimated based on losses
expected from the date of origination;
y
the ECL estimate is forward-looking, with credit risk param-
eters that incorporate the bank’s outlook on the evolution of
the economy and its impact on the portfolio;
y
a mechanism for allocating performing exposures to two dis-
tinct risk categories known as Buckets 1 and 2: a healthy expo-
sure whose risk deterioration from the beginning is deemed
significant will be placed in Bucket 2 resulting in impairment
calculated over a horizon equal to the remaining contractual
term of the transaction. Conversely, when the deterioration is
considered insignificant, the exposure is placed in Bucket 1
and impairment is calculated over a risk horizon of 1 year.
The amount of ECL Buckets 1 and 2 was €1,119 million at 31
December 2021.
Country risk policy
2021 was dominated by the persistence of the global coronavirus
pandemic. Emerging and less developed countries continued to
present a mixed bag, with all entering a challenging period (though
in no particular order) marked by increased uncertainties: ever-
present epidemics, inflation, rise in US interest rates, slowdown
in China, the end of an export cycle for some, the end of the
commodities “super cycle” and supply chain problems.
While emerging countries posted an average contraction of 1%
in 2020 (-4.7% excluding China), in 2021 economies were on
the verge of returning to pre-crisis activity levels, as is already
the case for many.
These countries grew 6% in 2021 and China, which successfully
managed the health crisis according to the authorities, was one
of the few countries to experience strong growth, reaching 8.2%.
With regard to developed countries, the United States saw a
recovery (5.6%) stronger than that of multiple partners, due to
very substantial support measures. US growth rebounded in the
wake of the slowdown due to the Delta variant in the third quarter.
The eurozone was less affected by the fifth wave of Covid thanks
to its high immunization coverage rate. Nevertheless, it continued
to struggle with supply chain issues (weak supply, shortages) that
made its economies more vulnerable to any shocks. Even so, full-
year growth reached 5.2% in 2021.
However, the end of the health crisis is proving to be an
uneven process, due to significant disparities in the progress of
vaccination. Immunization coverage is and will remain one of the
main sources of divergence between countries, as it determines
the reopening of their economies. This is a key factor that will
impact the tourism, aviation and hospitality sectors, which
were hit hardest by the pandemic. It has also widened the gap
between developed and emerging countries, while also increasing
fragmentation in the “emerging world”.
The crisis had more devastating and lasting impacts in 2021,
particularly in the least developed countries (75 million people
estimated to be in poverty), making it difficult to define a global
“emerging” scenario. The pandemic has exacerbated existing
political tensions. Rising unemployment, deteriorating social
indicators and rising income inequality laid fertile ground for
political shocks and the spread of social movements, particularly
in emerging countries.
Inflation has already picked up significantly, its expected peak
has climbed ever higher and its return to central bank targets
is now more distant. Global food prices pushed indices higher,
along with transport, housing and energy prices (average oil price
in 2021: USD 70.7 per barrel, INSEE). Indirect effects multiplied,
including impacts on growth, fiscal balances (and thus debt);
and with a particular impact on the social and political climate of
different countries.
Finally, the vast majority of governments appear to have grown
aware of the climate emergency. However, in this area, what works
for advanced countries will not always be the best solution for the
least developed countries, and each country will have to make its
own assessment and define local solutions to build change. The
energy transition thus accentuated this fragmentation between
advanced and emerging countries and within the emerging world.
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Against this overall backdrop, the bank downgraded its ratings.
In 2021, 11 countries saw their ratings downgraded and 3 saw
them upgraded.
2022 Outlook
(1)
2022 should be seing the economic recovery move forward,
with persistently robust growth for the
United States
(3.8%)
and slowly decelerating yet still robust for the
eurozone
: 4.4%
in 2022 to 2.5% in 2023.
The main risk for 2022 is the rise in inflation, above expectations,
which could exacerbate growth by eroding purchasing power. Oil,
natural gas and electricity prices will remain at high levels, at least
in 2022. The year will be divided into two distinct periods. The
first half, in which inflation and growth are likely to remain strong,
favouring an upward trend in interest rates. A second period could
begin insofar as central banks, aware of current trends, would
step in to keep interest rate hikes under control. Thus, inflation for
the
eurozone
inflation could return to 1.5% by end-2022. In the
United States
, the situation follows the same pattern: a peak of
7% at the beginning of the year, then decelerating to under 3%
by the end of the year.
China
is expected to grow 5% in 2022. In 2021, China’s growth
model was mainly boosted by foreign trade. A slowdown
is expected in 2022 with a view to normalising consumption
practices sparked by the end of the crisis. The country’s growth
should therefore be supported by its domestic market, which has
to deal with the challenges of the current real estate crisis and
reviving domestic consumption.
For other emerging countries (excluding China), 2022 will also
divided, with an initial period marked by high inflation and
additional rate hikes, restricting growth in Latin American and
Eastern European countries already experiencing high rates. The
first half of the year is thus likely to be tense, while the second
should see constraints relax with less inflation and fewer supply/
demand imbalances.
Global growth could be hampered by the massive resurgence of
Covid-19 cases (particularly with the presence of new variants)
and additional health measures in several countries. However,
the massive deployment of the Covid-19 vaccine in 2021 (which
remains slower in emerging markets than in developed markets)
reduces the risk of deadly new waves, thus improving business
and consumer confidence and supporting domestic demand.
In 2021, the level of debt worldwide exceeded that of 2020.
Median debt/GDP rose further from 62% to 64% between
2020 and 2021. Finally, 2022 should be a year of monetary
normalisation, with central banks committed - at varying rates -
to withdrawing the exceptional accommodations established to
help countries cope with the health crisis.
In 2022, the gap will continue to widen between advanced and
emerging countries, due to highly divergent vaccination rates. The
fragmentation of the emerging world will continue, or perhaps
even deepen. In addition, inflation remains high, particularly in
terms of energy prices, jeopardising consumer purchasing power
and increasing the risk of social tensions (Kazakhstan). Regional
conflicts, potential sanctions and multiple elections are also risk
factors. In many countries, 2022 will bring politics back into
economic scenarios.
(1) This outlook has been written prior to the Russia-Ukraine conflict. The global economic outlook was updated in the management report presented in Chapter 4 of the present
Universal Registration Document.
(2) The exposures are expressed in country-risk which takes into account credit export insurance guarantees, or eligible assimilated organizations as well as eligible cash collateral
and guarantees received.
Finally, Joe Biden’s election as President of the
United States
does not seem to have generated radical changes for emerging
countries. Tensions between China and the US are likely to persist.
In this uncertain environment, Crédit Agricole CIB will continue
actively working to support its local and international customers
in their business developments, including internationally, while
ensuring that the rules of compliance in force are observed
and adopting a prudent and selective approach, strengthening
exposure to business lines/sectors more invested in CSR and
paying very close attention to climate risks.
Change in the level of exposure to emerging
countries
As of December 2021, the share of “Investment grade” countries
(i.e. countries with a rating between A and C) both emerging
and non-emerging, was relatively stable at 86.1% of the Crédit
Agricole CIB’s portfolio (85.6% at end-year 2020).
The amount of Crédit Agricole CIB’s exposures
(2)
to countries
qualified as emerging countries, excluding those rated A and B
amounted to 49.7 billion euros at 31 December 2021, versus
41.3 billion euros at 31 December 2020 (+17.5% over the period
including a EUR/USD exchange rate effect and +9.4% excluding
this change effect), with predominantly the Asian area and the
Middle-East to a lesser extent, recording the largest increases.
Within this scope, these exposures are broken down as follow:
y
Asia represents 39.8% (vs. 37.6% at end-year 2020). The
portfolio grew by +15.9% over the year (in USD), it is primarily
concentrated in China and India.
y
The Middle-East and North Africa account for 34.4% of the
risks of this group (35.2% in 2020). The main exposures are
concentrated in Saudi Arabia, United Arab Emirates and Qatar.
y
Latin America: this region accounts for 13.5% of this scope,
down comparing to 2020 (14.5%). This decrease is mostly
due to a fall in commitments in Brazil and Mexico which
represented the highest concentration of exposures in this
area, exposures being marginal on Argentina.
y
Other Central and Eastern European countries, represent
12.3% of this scope (vs. 12.7% in 2020), mainly in Russia.
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2.5. FINANCIAL RISKS
Financial risks were the subject of a taxonomy established at
Crédit Agricole Group level and adapted for Crédit Agricole CIB,
which is presented in the preamble to the “Risk Factors” section.
This taxonomy is used below.
2.5.1 Market risks
Market Risks are managed by the Market and Counterparty Risks
(MCR) Department. MCR is in charge of identifying, measuring
and monitoring market, liquidity and counterparty risks in market
transactions as well as the independent valuation of results.
For example, several relevant market risks for Crédit Agricole CIB
can be identified, potential losses associated with:
y
Changes in interest rates
These risks are assessed in detail: maturity, underlying interest
rate indices, currencies;
y
Changes in share prices
Crédit Agricole CIB’s Equity Risk is mainly concentrated in
European Large Corporates (financing, equity investment
guarantee, management of Company Savings Plans,
convertible issues, loans/borrowings) and EMTNs on equity
indices;
y
Deterioration in credit quality
Due to its market-making activity on the main debts of OECD
countries as well as on client issues, Crédit Agricole CIB is
exposed to changes in the risk premiums on the securities
in which it trades;
y
Changes in exchange rates
Crédit Agricole CIB’s business with our Investor or Corporate
clients exposes it to foreign exchange market fluctuations.
Its operations in multiple countries also results in structural
foreign exchange positions managed by the Asset and Liability
Management Committees;
y
Interest rate and currency volatility
Some derivatives see their market value change due to the
volatility of the underlying, rather than market volatility. These
risks are governed by specific limits.
2.5.1.1
MARKET RISK CONTROL SYSTEM
Scope of authority
MCR’s scope of authority covers all trading portfolios of
consolidated entities in Crédit Agricole CIB’s accounts -
subsidiaries or branches - in France and abroad; the main
business lines are: Macro Trading, Non-Linear, Credit and Equities.
MCR also monitors the market risks of Treasury and Credit
Portfolio Management (CPM), whose dual role is to manage
Crédit Agricole CIB’s macro counterparty risk and to minimise
the cost of capital of the banking books.
Market risks - structure and responsibilities
MCR’s structure complies with the regulatory environment and
the development of market activities.
The basic principles that prevail in the organisation and operation
of MCR are:
y
independence of the Risk function from the operational divi-
sions (Front Offices) and other functional departments (Back
Offices, Middle Offices, Finance);
y
organisation that guarantees both the appropriate and spe-
cialised processing of each type of market activity and the
consistent deployment of methodologies and practices,
regardless of where the activity is conducted or where it is
recorded for accounting purposes.
Its various responsibilities are broken down as follows:
y
Market Activity Monitoring is responsible for:
-
daily validation of operating results and market and liquidity
risk indicators for all activities governed by market risk limits;
-
control and validation of market parameters in an independant
environment from the Front Office.
-
Finally, as part of its joint responsibility with the Finance
Department, it participates in the monthly reconciliation
between the operational and the accounting results;
y
Risk Management monitors and controls market risks for all
product lines, i.e.:
-
setting limits, monitoring limit breaches and their resolution, as
well as significant changes in results, which are notified to the
Market Risk Committee;
-
analysis of risks incurred by product line;
-
second-level validation of risks and monthly reserves;
y
the cross-functional teams round out this system by ensuring
the harmonisation of methods and accounting treatments
between lines/products. They include the following functions:
-
the IPV (Independent Price Valuation) team notably in charge
of validating valuation parameters and mapping observability;
-
the MRA (Market Risks Analytics) team responsible for vali
-
dating pricers;
-
the teams in charge of the Quantitative Internal Model:
-
the Econometrics team in charge of historical series used
in risk measurements;
-
the Methodologies team in charge of methodologies for
market risk measurements;
-
the Stress Models and CCR (Credit & Counterparty Risks)
team in charge of methodology and regulatory subjects
related to market activities;
-
the COO team coordinates cross-business topics (projects,
new activities, budgets, reports and committees) and produces
the department’s consolidated information.
Market risk decision-making and monitoring
committee
The entire system is placed under the authority of a set of
committees:
y
The Group Risk Committee (Crédit Agricole S.A.) sets overall
limits within the framework of the Group’s risk appetite.
y
The Strategies & Portfolios Committee (Crédit Agricole CIB)
validates the strategic guidelines and acceptable risk manage-
ment criteria, in line with the Group’s and the Bank’s risk appe-
tite policy. This Committee, chaired by Crédit Agricole CIB’s
Executive Management, includes, among others, a member
representing the Crédit Agricole S.A. Group Risk Department,
the Market Activities Risk Managers and Market Activities
Front Office representatives.
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y
The Market Risk Committee (Crédit Agricole CIB) grants
limits to the operational divisions within the limits set by
the Strategies & Portfolios Committee and ensures compli-
ance with the monitoring indicators, specific management
rules and defined limits. This Committee, chaired by Crédit
Agricole CIB’s Executive Management, includes a member
representing the Crédit Agricole S.A. Group Risk Department,
the Market Activities Risk Managers and Market Activities
Front Office representatives.
y
The Liquidity Risk Committee (Crédit Agricole CIB) moni-
tors and analyses liquidity risks and their trends. It ensures
compliance with monitoring indicators, specific management
rules, established limits and the proper application of Group
standards. It also serves as the Liquidity Emergency Plan
Committee in the event of a crisis. Chaired by the Executive
Management, the CRL also includes the Head of Group
Financial Risk, the Head of Group Treasury, the heads of
GMD, Treasury and Foreign Exchange, the heads of the
Finance Department and ALM and the heads of Market Risk
Management.
2021 highlights affecting the market risk scope
Upon various regulators requests, the shift to the new risk-free
rates (Benchmarks project) aims to strengthen the benchmark
indices in order to control the risks of conflict of interest,
guarantee the reliability of the methods and data used to calculate
benchmarks, avoid manipulation risk and protect consumers.
Crédit Agricole CIB spent considerable effort on this project
throughout the year, calling for a number of internal and external
adjustments, resulting in the discontinued publication of LIBOR
GBP, CHF, JPY and EUR after 31/12/2021.
Crédit Agricole CIB also continued to roll out its new Market
Risk ecosystem (MASAI). Crédit Agricole CIB decommissioned
several activities (structured interest rate product scope + local
scopes in Asia) and implemented a number of cross-business
functionalities (FRTB SA, observability mapping and initial batches
of automated reserve calculations). The implementation of this
new system includes the following elements: implementation of
data management principles, centralisation of valuation methods,
industrialisation, audit trail and measures for analysing and
monitoring market risk indicators.
In line with the Decree of June 2021, Crédit Agricole CIB
implemented the new SA-CCR standard methodology for
calculating counterparty credit risk exposure provided for by
European Regulation CRR2. This methodology is used for scopes
not eligible for the internal counterparty credit risk model (IMM),
as well as for the assessment of the leverage ratio and large
exposures.
Crédit Agricole CIB is continuing its remediation work following
the ECB Targeted Review of Internal Models (TRIM):
y
2017 on Value-at-Risk (VaR), Stressed Value at Risk (SVaR)
models, models for incremental default and migration risks
(IRC). This remediation work is almost complete.
y
2018 (TRIMX) regarding counterparty credit risk (CCR) models.
The remediation of certain recommendations is in progress.
2.5.1.2
MARKET RISK MEASUREMENT AND
MANAGEMENT METHODOLOGY
Value at Risk (VaR)
VaR is calculated on daily basis across all positions. It represents
the potential on-day horizon loss with a confidence interval of
99%. As extreme market conditions are not captured by VaR,
it should not be confused with the concept of maximum loss.
Stressed VaR and stress scenarios round out the system for
measuring extreme risks.
Change in regulatory VaR over 2021
Chart 1 Regulatory Var over the period 2020-2021 shows the
change in Crédit Agricole CIB’s VaR in the regulatory scope over
the course of 2020-2021.
Over 2021, the regulatory VaR averaged €8 million (a sharp
decrease compared to the average of €14 million in 2020),
fluctuating within a range of €5 million and €19 million.
As from end-March 2021, Crédit Agricole CIB’s regulatory VaR
fluctuated at much lower levels vs. 2020, as the strong market
variations observed at the peak of the Covid-19 crisis (March
2020) were removed from the VaR history.
At end-December, six VaR backtesting exceptions were recorded
over a rolling 12-month period, with theoretical losses - theoretical
P&L equivalent to daily P&L excluding reserves and new
transactions - exceeding VaR (excluding transactions recorded
at D). These exceptions must be considered in determining the
amount of Own Funds.
Chart No. 2 (Evolution of quarterly averages over the period 2020-
2021) shows the change in the quarterly averages of regulatory
VaR and the VaR for each of Crédit Agricole CIB’s business lines
since 1 January 2020.
All of Crédit Agricole CIB’s activities are based on the internal
model, with the exception of a few isolated products, which still
use the standardised approach.
f
Change in regulatory VaR
€ million
31.12.2021
31.12.2020
Minimum
Average
Maximum
End of year
Minimum
Average
Maximum
End of year
Total VaR
5
8
19
9
7
14
24
9
Netting Effect
(4)
(8)
(16)
(7)
(2)
(9)
(20)
(10)
Rates VaR
3
6
16
6
5
11
16
8
Equity VaR
1
2
4
2
1
2
3
2
Fx VaR
2
3
7
4
1
3
13
5
Commodities VaR
0
0
0
0
0
0
2
0
Credit VaR
2
4
8
3
3
7
12
4
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f
Chart No. 1: Crédit Agricole CIB’s regulatory VaR in 2020-2021 (€ million)
-
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug. 2020
Sep. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug. 2021
Sep. 2021
Oct. 2021
Nov. 2021
Dec. 2021
Jan. 2021
5.0
10.0
15.0
20.0
25.0
f
Chart No. 2: Quarterly average change in regulatory VaR and VaR by product line over the 2020-2021
period (€ million)
2020 T1
2020 T2
2020 T3
2020 T4
2021 T1
2021 T2
2021 T3
2021 T4
Nettings effects
Fx Var
Credit VaR
Equity VaR
Rates VaR
CACIB Regulatory VaR
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Precious metals
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f
Chart 3: Backtesting of Crédit Agricole CIB’s regulatory VaR in 2021 (€ million)
Jan-2021
Feb-2021
March-2021
April-2021
May-2021
June-2021
July-2021
August-2021
Sep-2021
Oct-2021
Nov-2021
Dec-2021
Theorical P&L
VaR 99%
VaR 1%
Clean P&L
-30
-20
-10
0
10
20
30
40
50
60
70
VAR BACKTESTING (CHART NO. 3)
The VaR backtesting method for Crédit Agricole CIB’s regulatory scope compares the daily VaR amounts with the daily P&L excluding
reserves (clean P&L or actual P&L) on the one hand and the daily P&L restated for reserves and new transactions (or “theoretical” P&L)
on the other hand.
At end-December 2021, there were six backtesting exceptions over a rolling 12-month period, with theoretical losses exceeding VaR
(excluding transactions recorded at D).
VaR capital requirement
At 31 December 2021, the VaR capital requirement amounted to €91 million.
€ million
31.12.2021
Minimum
Maximum
Average
31.12.2020
VaR
91
74
157
102
136
Stressed regulatory VaR statistics
If the historical data used to calculate VaR shocks are derived from sluggish market conditions, i.e. low volatility, then the resulting VaR will
be low. To counter this procyclical bias, the regulator introduced stressed VaR.
Stressed VaR is calculated using the “initial” VaR model over a confidence interval of 99%, and a one-day horizon and a stress period
corresponding to the worst known period for the most significant risk factors.
The period used is November 2007 - November 2008.
Change in stressed regulatory VaR in 2021
Chart No. 4 (see below) shows the change in Crédit Agricole CIB’s stressed regulatory VaR over the 2020-2021 period.
Stressed VaR averaged €18 million in 2021, i.e. stable compared to 2020, but with a wider range of variations as shown in the table of
statistics below. However, it continued to demonstrate the continuation of Crédit Agricole CIB’s prudent management policy.
The SVaR/VaR ratio was 1.9 at end-December.
The table below compares the statistics on stressed regulatory VaR and regulatory VaR.
€ million
31.12.2021
31.12.2020
Minimum
Average
Maximum
End of year
Minimum
Average
Maximum
End of year
Stressed regulatory VaR
10
18
31
17
11
18
26
12
Regulatory VaR
5
8
19
9
7
14
24
9
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Stressed VaR capital requirement
At 31 December 2021, the stressed VaR capital requirement amounted to €314 million.
€ million
31.12.2021
Minimum
Maximum
Average
31.12.2020
Stressed VaR
314
153
314
229
175
f
Chart No. 4: One-day regulatory stressed VaR for a 99% confidence interval (€ million)
-
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug. 2020
Sep. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug. 2021
Sep. 2021
Oct. 2021
Nov. 2021
Dec. 2021
Jan. 2021
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Stress tests
Stress tests were established to assess the resilience of financial
institutions due to a shock in their activities. This shock can be
economic (economic slowdown, for example) or geopolitical
(conflict between countries).
In order to meet the regulator’s requirements and to supplement
VaR measurements, Crédit Agricole CIB applies stress scenarios
to its market activities in order to assess the impact of particularly
severe disruptions (which cannot be anticipated or modelled in
VaR) on the value of its books. These scenarios are based on
three complementary approaches:
1. Historical approaches, which consist in replicating the effect of
major crises from the past on the current portfolio. The following
historical scenarios are used:
-
1994 crisis: bond crisis scenario;
-
1998 crisis: credit market crisis scenario, the assumptions of
which are the decline in the equity markets, the sharp rise in
interest rates and the decline in emerging currencies;
-
1987 crisis: stock market crash scenario;
-
October and November 2008 crises (replicating market con-
ditions following the failure of Lehman Brothers).
2.
Hypothetical scenarios, which anticipate likely shocks, developed
in collaboration with economists. Hypothetical scenarios are:
-
economic recovery (rally on the equity and commodity markets,
sharp rise in short-term rates and depreciation of the USD,
tightening of credit spreads);
-
tightening of liquidity conditions (sharp rise in short rates, wid-
ening of credit spreads, decline in equity markets);
-
a scenario representing economic conditions amid international
tensions between China and the United States (increase in
volatility and falling prices on the equity markets, rise in the
commodity market, steepening of yield curves, depreciation
in the US dollar against other currencies, widening of credit
spreads).
3.
Two “adverse” approaches (a ten-year scenario and an extreme
scenario), which consist in adapting assumptions to simulate
the most unfavorable situations according to the structure of
the portfolio at the time the scenario is calculated:
-
a “10-year adverse stress” approach, which assesses the
impact of large-scale and unfavourable market movements for
each activity taken individually. The calibration of shocks is such
that the scenario has a probability of occurring approximately
every 10 years and the period in which the bank incurs events
without reacting is around 10 days. Losses measured by this
scenario are subject to limits;
-
an “extreme adverse” approach that measures the impact of
market shocks with a intensity and duration greater than the
ten-year adverse stress scenario, in order to simulate events
that are rarer but still have a probability of occurring. The shocks
simulated in extreme adverse stress scenarios are approxi-
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mately twice as harsh as those in the ten-year adverse stress
test, their impact on the result of stress can be much more
severe for non-linear products with an option component.
These indicators are subject to a limit set in agreement with
Crédit Agricole S.A.
Global stress tests are calculated on a weekly basis and are
presented to the Crédit Agricole CIB Market Risk Committee on
a monthly basis.
At the same time, specific stress scenarios are developed for
each business line. They are produced on a weekly basis. These
specific scenarios are used to clarify the analysis of risks specific
to the various business lines.
Stress tests are regularly defined in anticipation of ad hoc market
events: Brexit, US elections, etc.
MCR conducted research aimed at strengthening the stress
testing system, presented to the Executive Committee at the end
of 2020. It will be rolled out over 2022-2023.
Chart No. 5 below shows the comparison of changes in stress
scenarios in 2020 and 2021.
f
Chart No. 5: 2020 and 2021 average values of stress scenarios (€ million)
1994 Stress
October 2008 Stress
1998 Stress
International Tensions
November 2008 Stress
Liquidity Thightening
Economic recovery
Adverse extreme
Decennial Adverse
2020
2020
2020
2021
2021
2021
Historical Stress Test
Hypothetical Stress Tests
Adverse Stresses
€ Millions
1987 Stress
- 500
- 400
- 300
- 200
- 100
0
100
200
300
Between 2020 and 2021, the ten-year and extreme adverse stresses decreased. They fell on average from €145 million and €395 million,
respectively in 2020 to €125 million and €298 million in 2021. The decrease in extreme adverse stresses was mainly due to the decrease
in the contribution of foreign exchange activities. The stress levels (excluding CVA) observed in 2021 wee generally very far from the
established limits.
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2.5.1.3 OTHER INDICATORS
VaR measurement is associated with a set of complementary or
explanatory indicators, most of which are subject to limits:
y
sets of limits defined for precise risk management purposes.
Adapted by activity and mandate, they specify the authorised
products, maximum maturities, positions and maximum sen-
sitivities; they also include a loss alert system;
y
other analytical indicators are used by Risk Management. In
particular, including notional indicators in order to highlight
atypical transactions;
y
under CRD III (effective 31 December 2011), Crédit Agricole CIB
implemented specific default risk measures on credit portfolios,
including the Incremental Risk Charge.
IRC capital requirements
The Incremental Risk Charge (IRC) is an additional capital
requirement for “linear” credit positions (i.e. excluding credit
correlation positions), required by the regulator under CRD III in
response to the subprime crisis.
The IRC aims to quantify unexpected losses caused by credit
events on issuers, i.e. default or rating migration (both in the case
of a downgrade or upgrade in the credit rating). In other words,
the IRC captures 2 risk measurements:
y
Default risk (or potential losses or gains, following the default
of the issuer);
y
Migration risk, which represents potential losses or gains
resulting from a migration of the issuer’s credit rating and
the associated spread shock.
IRC is calculated with a confidence interval of 99.9% over a one-
year risk horizon using Monte Carlo simulations.
Simulated default and credit migration scenarios are then
measured using Crédit Agricole CIB pricers. These values give
a distribution, based on which a 99.9% quantile calculation is
used to obtain the IRC.
At the end of December 2021, the IRC capital requirement
amounted to €188 million.
€ million
31.12.2021
Minimum
Maximum
Average
31.12.2020
IRC
188
119
239
153
116
Requirements under the CRD 3 standardised method
The CRD 3 standardised method is an additional capital requirement for issuer risk not covered by the IRC and CRM (Comprehensive Risk
Measure). The final measure required by the supervisory authorities is the standardised method for securitisation positions in the trading book.
The standardised method capital requirement was €5 million at December 31, 2021.
€ million
31.12.2021
Minimum
Maximum
Average
31.12.2020
Standard CRD 3 method
5
4
5
5
4
Prudent Valuation capital requirements
Under CRD IV, the Basel III Committee requires the implementation
of an additional prudent measure (Prudent Valuation) to the
accounting market valuation. It applies to all trading book and
banking book positions recognised at fair market value with a
confidence interval of 90%.
Prudent Valuation is broken down into 9 accounting adjustments:
price uncertainty, liquidation costs, model risk, concentrated
positions, prepaid credit margins, financing costs, early
termination, future administrative costs and operational risk. All
the different categories are then aggregated and deducted from
Common Equity Tier 1.
The calculation of adjustments based on regulatory requirements
gave an impact on own funds at end-December 2021 of €772
million for Crédit Agricole CIB (o/w €538 million for market risks).
2.5.2 OTHER FINANCIAL RISKS
2.5.2.1
OVERALL INTEREST RATE RISK
Global interest rate risk or interest rate risk on the banking book
of a financial institution is the risk of a change in interest rates in
any on-balance sheet or off-balance sheet transaction, except
transactions subject to market risk.
Objectives and policy
Global interest rate risk management aims to protect commercial
margins against fluctuations in rates and to ensure better stability
over time in the intrinsic value of equity and long-term financing
components.
The intrinsic value and the interest margin are linked to the
sensitivity to changes in interest rates of the net present value
and cash flows of on- and off-balance sheet financial instruments.
This sensitivity arises where the dates on which the interest rates
of assets and liabilities are recalculated are different.
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Risk management
Each operating entity has its own Asset and Liability Management
Committee responsible for ensuring compliance with the Group
limits and standards that manages its exposure.
The central Financial and Strategic Steering Department – as part
of its coordination and oversight role – and the Counterparty and
Market Risks Department, which attend meetings of the Local
Committees, ensure the consistency of methods and practices
within the Group as well as the monitoring of the limits allocated
to each of its entities.
The Group’s overall interest rate risk exposure is presented to
Crédit Agricole CIB’s Assets-Liabilities Management Committee.
This committee:
y
examines the consolidated positions determined at the end
of each quarter;
y
ensures that Crédit Agricole CIB complies with its limits;
y
decides on management measures based on propositions
made by the Financial and Strategic Steering Department.
Method
Crédit Agricole CIB uses the interest rate gap method, in
accordance with the Crédit Agricole Group Standard, to measure
its overall interest rate risk.
This consists in determining maturity schedules and interest
rates for all assets, liabilities and hedging derivatives at fixed or
adjustable interest rates:
y
until the contractual date for fixed-rate transactions; and until
up to the rate revision date for adjustable-rate transactions;
y
according to the economic maturities of transactions indexed
to different tenors;
y
according to implicit or behavioural options sold to cus-
tomers; and
y
using model-based conventions for items without a con-
tractual maturity.
The gap measurement includes the rate hedging effect on fair
value and cash flow hedges.
This measurement system is adapted for the relevant major
currencies.
Exposure
Crédit Agricole CIB’s exposure to overall interest rate risk on
client transactions is limited given the interest rate matching rule
for each client financing with Treasury.
The interest rate risk mainly derives from capital, investments,
modelling of non-interest-bearing liabilities and from maturities of
less than one year from the Treasury activities of the banking book.
The Group is mainly exposed to eurozone and, to a lesser extent
US Dollar, interest rate variations.
Crédit Agricole CIB manages its exposure to interest rate risk
using gap exposure limits and based on the net present value of
all currencies defined by Crédit Agricole S.A.
Interest rate gaps express the surplus or deficit on fixed-rate
loans. Conventionally, a positive gap represents an exposure
subject to the risk that interest rates will fall over the period in
question.
The results of these measures at 31 December 2021 therefore
show that the Bank is exposed to a fall in interest rates beyond
the first year.
€ billions
0-1 year
1-5 years
5-10 years
Average US dollar gap
(2.53)
(0.1)
(0.01)
Average Euro gap
+3.59
+ 0.121
+ 0.250
In terms of net banking income sensitivity for the first year, Crédit
Agricole CIB could lose €163 million inrevenue in the event of
a 200-basis-point fall in interest rates over the year, i.e. 2.75%
sensitivity for reference net banking income of €5,913 million in
2021, below the limit of 3.5% of reference net banking income
set by the Group.
Based on these same sensitivity calculations, the net present
value of the loss incurred in the next ten years in the event of an
adverse 200 basis point movement in the yield curve is equal
to 0.74% i.e. €206 million of the Group’s capital at book value,
below the €500 million limit set by the Group.
In addition, the income impacts of eight stress scenarios (five
historical and three hypothetical) regarding the interest rate gap
are measured on a quarterly basis and reported to the Asset and
Liability Management Committee.
The scenarios are those used by Crédit Agricole CIB’s Treasury
Department:
y
the historical scenarios include: a major equity market crash
(Black Monday in 1987); a surge in interest rates (bond crash
in 1994); a sharp increase in issuer spreads (rise in credit
spreads in 1998); the 2008 financial crisis linked to the US
mortgage market (two scenarios);
y
the hypothetical scenarios are based on: the assumption
of an economic recovery (rise of the equity market, rates in
general, the USD spot rate and oil and a decrease in issuer
spreads); a liquidity crisis following the Central Bank’s decision
to increase its key rates; frictions in international relations as a
result of stalled business relationships between China and the
United States (increase in US rates, collapse of the US equity
market, widening of credit spreads and depreciation of the
US Dollar compared to other currencies, especially the euro).
Simulations are calculated based on the sensitivity of Crédit
Agricole CIB’s interest rate gap. This sensitivity is calculated in
EUR and USD. The calculation is based on average outstandings.
The shocks contained in these scenarios are calculated on a
10-day basis, according to Crédit Agricole CIB’s stress scenario
methodology. Sensitivity is “shocked” in various ways. The result
of a stress test corresponds to the net present value in the event
of changes in the most adverse scenario’s characteristics.
The application of stress scenarios highlighted relatively limited
impacts since the net present value of the maximum potential loss
incurred represented €36 million, i.e. 0.13% of capital at book
value, and 0.62% of net banking income at 31 December 2021.
Internal capital requirement assessment
A measurement of the Pillar 2 capital requirement assessment is
carried out to assess currency risks taking into account:
y
a change in the economic value resulting from the application
of a set of internal scenarios;
y
one-year net interest margin driven by interest rate shocks.
At 31 December 2021, the estimated internal capital requirement
for interest rate risk was €62 million.
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2.5.2.2 FOREIGN EXCHANGE RISK
Foreign exchange risk is the financial risk associated with an
unfavourable change in exchange rates on the foreign exchange
market. It is primarily assessed by measuring net residual
exposure, taking into account gross foreign exchange positions
and hedging and differentially between structural and operational
foreign exchange risk.
Structural foreign exchange risks
The Group’s structural foreign exchange risk results from its long-
term investments in assets denominated in foreign currencies,
mainly the equity of its foreign operating entities, whether they
result from acquisitions, transfers of funds from head office or the
capitalisation of local earnings.
The Group’s policy is to borrow the currency in which the
investment is made in order to protect the investment against
foreign exchange risk. These borrowings are documented as
investment hedging instruments. In certain cases, and particularly
for less liquid currencies, the investment leads to the relevant
currency being purchased with the foreign exchange risk being
hedged depending on the portfolio management policy adopted.
The Group’s main gross structural foreign exchange positions
are denominated in US dollars, in US dollar linked-currencies
(mainly Middle Eastern and some Asian currencies), in sterling
and in Swiss franc.
In overall terms, the Group’s policy for managing structural foreign
exchange positions aims at achieving two main goals:
y
regulatory (by way of exception) to protect the Group’s sol-
vency ratio against currency fluctuations; for this purpose,
unhedged structural currency positions will be scaled so as
to equal the proportion of risk weighted assets denominated
in the currencies concerned and unhedged by other types
of equity in the same currency; at 31 December 2021, the
immunisation ratio of the CET 1 solvency ratio for the US
dollar and related currencies block was 77%.
y
proprietary interests, to reduce the risk of loss of value for
the assets under consideration.
Structural foreign exchange risk hedging is centrally managed and
implemented on the recommendations of the Structural Exchange
Rate Committee and decisions of the Bank’s Asset and Liability
Management Committee.
Crédit Agricole CIB’s structural currency positions are also
included with those of Crédit Agricole S.A., which are presented
four times a year to its Assets and Liabilities Committee, chaired
by Crédit Agricole S.A.’s Chief Executive Officer. They are also
presented once a year to the Group Risk Committee.
Operational foreign exchange risks
The Bank is further exposed to operational exchange rate
positions on its foreign currency income and expenses, both at
head office and in its foreign operations.
The Group’s general policy is to limit net operational exchange
rate positions as far as possible by periodically hedging them,
without prior hedging of earnings not yet generated except if they
have a high probability and a high risk of impairment.
The Group Risk Committee sets a limit aimed at authorising
frictional foreign exchange positions that may arise between
the date on which the profit to be hedged is recorded for
accounting purposes and the date on which it is hedged against
a foreign currency, once known. At 31 December 2021, Crédit
Agricole CIB’s operational foreign exchange position was €26m
within a limit of €110m.
The rules and delegations applicable to the management of
operational positions fall within the scope of the annual meeting
of the Group Risks Committee (limits) or the quarterly meetings
of Crédit Agricole CIB’s Asset and Liability Committees.
The contributions of the various currencies to the consolidated
balance sheet can be found in Note 3.2 “Market risks.”.
2.5.2.3 LIQUIDITY RISK
The Crédit Agricole CIB Group is, like all credit institutions,
exposed to the risk that it will not have sufficient funds to honour
its commitments. This risk is realised in the event, for example,
of a massive withdrawal of deposits from customers or investors
or during a crisis of confidence or general market liquidity (access
to interbank, money market and bond markets).
Objectives and policy
Crédit Agricole CIB’s primary objective in managing liquidity is
to always be able to cope with any prolonged, high-intensity
liquidity crises.
The Crédit Agricole CIB Group is an integral part of the Crédit
Agricole Group’s scope when it comes to liquidity risk management
and uses a system for managing, measuring and containing its
liquidity risk that involves maintaining liquidity reserves, organising
its refinancing activities (limits on short-term funding, staggered
scheduling of long-term funding, diversification of funding sources)
and balanced growth in the assets and liabilities sides of its
balance sheet. A set of limits, indicators and procedures aims to
ensure that this system works correctly.
This internal approach incorporates compliance with all local
regulations on liquidity.
Risk management
At Crédit Agricole CIB, responsibility for liquidity risk management
is shared by a number of departments:
y
the Steering Department manages liquidity risk (framing
liquidity needs, anticipating regulatory changes, formalising
the financing plan, etc.);
y
the Execution Management department carries out market
transactions in accordance with the instructions of the Steering
Department and the Financing Plan approved by the Scarce
Resources Committee;
y
the Risk Division is responsible for validating the system and
monitoring compliance with rules and limits.
GOVERNANCE
The Crédit Agricole CIB Group’s Scarce Resources Committee
defines and monitors the asset and liability management
policy. Together with the Executive Management Committee,
it constitutes the executive governance body and defines all
operational limits applicable to Crédit Agricole CIB. It is a decision-
making body, particularly in relation to the monitoring of MLT
fundraising and short-term and long-term limits.
The Liquidity Risk Committee oversees the implementation
of Group standards for monitoring liquidity risk at operational
level. It defines limits for liquidity risk indicators specific to Crédit
Agricole CIB, monitors breaches of limits and alert thresholds and,
where applicable, approves proposals for managing overruns. It
also serves as the Liquidity Emergency Plan Committee in the
event of a crisis. The internal methods are validated by COTEC.
OPERATIONAL STEERING
The Steering Department manages scarce liquidity resources
within a framework subject to regulations, the Group’s standards
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and the defined budget trajectory. Liquidity risk management is
part of the risk appetite level approved by Crédit Agricole CIB’s
Board of Directors. This department is responsible for managing
and monitoring liquidity risk, anticipating regulatory changes and,
where applicable, related hedging needs, planning issuance
programmes and invoicing liquidity to the consuming business
lines.
The Execution Management department is responsible for the
operational management of liquidity refinancing.
The Treasury department is responsible for overall day-to-day
management of the Crédit Agricole CIB Group’s short-term
refinancing activities, and for coordinating issue spreads and
managing the Treasury department’s liquid asset portfolio. Within
each cost centre, the local Treasurer is responsible for managing
funding activities within the allocated limits. He/she reports to
Crédit Agricole CIB’s Treasurer and the local Assets and Liabilities
Committee. He/she is also responsible for complying with local
regulatory constraints applicable to short-term liquidity.
The operational management of medium- and long-term funding is
delegated to ALM Execution, which is responsible for monitoring
the long-term liquidity raised by the Bank’s market desks and
issuance programmes, and for checking the consistency of issue
prices.
Refinancing conditions
In addition to conventional sources of short-term liquidity (sight
and term deposits for Corporate and Private Banking clients),
Crédit Agricole CIB implements an active policy of diversifying its
sources of financing, by maintaining diversified access to these
markets via multiple-format issuance programmes (Commercial
Paper/Certificate of Deposit) and aimed at various geographic
areas (New York, London, Tokyo, Australia, Hong Kong, etc.).
Crédit Agricole CIB’s long-term liquidity resources are mainly
derived from interbank borrowing and debt issues that take
various forms.
Crédit Agricole CIB makes use of its Euro Medium Term Notes
(EMTN) programmes: at 31 December 2020, the amounts
issued under long-term EMTN programmes amounted to around
€23.8 billion.
Barring exceptions, issues under these programmes for the
purposes of Crédit Agricole CIB’s international and domestic
clients are referred to as “structured”, meaning that the coupon
paid and/or the amount redeemed at maturity includes a
component indexed to one or more market indices (equity, interest
rates, foreign exchange or commodities). Similarly, certain issues
are referred to as credit-linked notes, meaning that repayment
is reduced in the event of default by a third party contractually
defined at the time of issue.
Crédit Agricole CIB also still holds covered bonds issued by
Crédit Agricole S.A. and backed by Crédit Agricole CIB’s export
credit loans.
MAINTAINING A WELL-BALANCED BALANCE
SHEET
In 2021, Crédit Agricole CIB continued to strengthen its balance
sheet structure, with balance sheet strength resulting in surplus
stable funding over long-term assets of +€50.4bn at 31 December
2021.
System
Crédit Agricole CIB’s liquidity management and control system is
structured around several risk indicators, the definition and control
of which are the subject of standards approved by the governance
bodies of Crédit Agricole CIB and Crédit Agricole Group:
y
short-term indicators comprising mainly stress scenario sim-
ulations (all currencies and the dollar) the aim of which is
to regulate the liquidity risk based on the tolerance levels
defined by the Group. Short-term debt allows the maximum
net amount of short-term market financing to be controlled.
The measurement of static gaps and the monitoring of diver-
sification indicators supplement this system;
y
medium to long-term indicators used to manage the move
towards one year for all currencies as well as the major cur-
rencies; the concentration of MLT refinancing maturities, the
purpose of which is to allow for renewal at maturity without
undue market solicitation;
y
balance sheet structure indicators, including the stable funding
position defined as the surplus of stable sources over long-
term assets, which is used to protect business lines against
reliance on money market refinancing.
The system incorporates the following regulatory indicators:
y
the purpose of the Liquidity Coverage Ratio (LCR) is to ensure
that banks have sufficient reserves of high-quality liquid assets
(HQLAs) to cover net cash outflows in the event of a 30-day
liquidity crisis. A minimum of 100% compliance with this ratio is
required as from 1 January 2018. It averaged 125.4% in 2021;
y
additional liquidity analysis reports called Additional Liquidity
Monitoring Metrics (ALMMs) attached to the LCR;
y
the Net Stable Funding Ratio (NSFR) is a balance sheet struc-
ture ratio, that measures the balance between the stability
of funding sources and stable financing requirements. The
definition of the NSFR assigns a weighting to each balance
sheet item that reflects its potential to have a maturity of more
than one year. The final text of the NSFR, which was included
in the CRR2 banking package, was adopted by the European
Parliament on 14 May 2019. The NSFR came into force on
28 June 2021. Crédit Agricole CIB complies with the regula-
tory constraint, with a ratio of 113% at 31 December 2021.
The liquidity risk associated with securitisation activities is
monitored by the responsible business lines and also centrally
by the Market Risks Department and the Asset and Liability
Management (ALM) Departments. The impact of these activities is
incorporated into the Internal Liquidity Model indicators, including
the stress scenarios, liquidity ratios and liquidity gaps.
2.5.2.4 GLOBAL INTEREST RATE AND FOREIGN
EXCHANGE RISK HEDGING
In managing its financial risks, Crédit Agricole CIB uses
instruments (interest rate swaps and forex transactions) for which
a hedging relationship is established based on the management
intention pursued.
Note 3.4 to the Group’s consolidated financial statements
presents the market values and notional amounts of hedging
derivatives.
Fair value hedges
The aim is to protect the intrinsic value of fixed-rate financial
assets and liabilities that are sensitive to changes in interest rates,
by hedging them with instruments that are also at fixed rates.
Where the hedging uses derivatives (swaps), the derivatives are
described as fair value hedge derivatives.
Hedges carried out by Asset and Liability Management cover
outstanding unremunerated Wealth Management customer
deposits, which are analysed as fixed-rate financial liabilities.
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Cash flow hedges
The second objective is to protect the interest margin so that
interest flows generated by variable-rate assets financed by fixed-
rate liabilities (in particular, working capital) are not affected by
the future fixing of interest rates over these items.
When the required neutralisation is carried out using derivatives
(swaps), they are classified as cash flow hedges.
Under IFRS 7, the amounts of future interest payments attached
to balance sheet items subject to cash flow hedges are presented
below, by maturity.
€ million
31.12.2021
<1 year
> 1 year
to ≤ 5 years
> 5 years
Total
Cash flow hedged (to be
received)
23
196
161
380
Cash flow hedged (to be
paid)
53
1
0
54
IFRS DOCUMENTATION OF FAIR VALUE AND
CASH FLOW HEDGES
The hedging relationships in relation to macro-hedges managed by
the Asset and Liability Management Department are documented
from the outset and verified quarterly by carrying out forward-
looking and back-looking tests.
For this purpose, hedged items are classified by maturity, using
the characteristics of contracts or, for items without contractual
maturities (such as demand deposits), runoff models based on
each product’s behaviour. The comparison between this maturity
schedule and that of the derivative instrument allows the efficiency
of the hedging to be assessed.
Net investment hedges
The instruments used to manage structural foreign exchange
risk are classified as net investment hedges. The effectiveness
of these hedges is documented quarterly.
2.6. OPERATIONAL RISKS
Operational risk is the risk of loss resulting from shortcomings
in internal procedures or information systems, human error or
external events that are not linked to a credit, market or liquidity
risk.
Operational risks were the subject of a taxonomy established at
Crédit Agricole Group level and adapted for Crédit Agricole CIB,
which is presented in the preamble to the “Risk Factors” section.
This taxonomy is used below.
2.6.1 Management of operational risks
The Risk and Permanent Control/Operational Risk Management
Department is responsible for supervising the system, and it is
overseen by Executive Management through the operational
risk section of Crédit Agricole CIB’s Internal Control Committee.
GOVERNANCE
Operational risk management specifically relies on a network of
Operational Risk Managers (ORMs) that cover all the Group’s
subsidiaries and business lines.
The system is monitored by Internal control committees under
the authority of each entity’s management. Head office Control
functions are invited to the meetings of these Committees.
IDENTIFICATION AND ASSESSMENT OF
QUALITATIVE RISKS
In accordance with principles in force within the Crédit Agricole
S.A. Group, Crédit Agricole CIB’s Risk and Permanent Control
Department has implemented a qualitative and quantitative system
designed to identify, assess, prevent and monitor operational risk,
as required by the Basel II reforms.
The Risk and Control Self-Assessment process applies to all
Group entities. These risk maps allow Crédit Agricole CIB to
supervise the most sensitive processes and to draw up control
plans. They are updated annually.
DETECTION OF OPERATIONAL LOSSES AND
REPORTING OF SIGNIFICANT INCIDENTS
A unified procedure for loss detection and for reporting significant
incidents has been introduced for the entire scope. The data
required by the internal model that calculates the allocation of
economic capital (in accordance with the advanced Basel II
method) are consolidated into a single database that provides
historical data for a rolling six-year period.
CALCULATION AND ALLOCATION OF ECONOMIC
CAPITAL
Capital requirements are calculated annually at Crédit Agricole CIB
level based on historical losses and supplemented by risk
scenarios.
The capital requirement is calculated by applying the Crédit
Agricole Group’s Advanced Measurement Approach (AMA) model
for the Crédit Agricole CIB scope, a model that was validated
at the end of 2007 by the French Regulatory and Resolution
Supervisory Authority (ACPR).
PRODUCTION OF DASHBOARDS
RPC/MRO produces a quarterly operational risk dashboard that
highlights significant events and changes in the cost of these risks.
These dashboards contain the main sources of risk (litigation with
clients, management of processes relating to market transactions)
used to determine preventive or corrective action plans.
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EXPOSURES
The chart below provides a breakdown of operational losses by
type at their date of detection for the period 2019-2021.
Clients, products
and commerial
policies
9.53%
Internal fraud
33.76%
Execution, delivery and
process management
External
fraud
51.85%
Practice
in terms
of jobs
0.87%
3.01%
Incidents
due to the activity
or systems
0.98%
INSURANCE AND RISK COVERAGE
Crédit Agricole CIB has broad insurance coverage for its insurable
operating risks in accordance with guidelines set by its parent
company, Crédit Agricole S.A., with the aim of protecting its
balance sheet and its income statement.
Crédit Agricole CIB is covered by all the Group policies taken out
by Crédit Agricole S.A. with major insurers against high-level risks:
cyber risk, fraud, all risks to securities (or theft), operating losses,
professional indemnity, operating liability, third-party liabilities of
directors and corporate officers and property damage (buildings,
IT, third-party claims for buildings most exposed to this risk).
Crédit Agricole CIB, like all the Crédit Agricole S.A. Group’s
business line subsidiaries, manages smaller risks itself. High-
frequency and low intensity risks that cannot be insured on
satisfactory financial terms are retained in the form of excesses
or are insured on a pooled basis within the Crédit Agricole S.A.
Group by one of the Crédit Agricole Group’s insurance companies.
This general framework may vary according to local regulations
and the specific requirements of countries in which the
Crédit Agricole CIB Group operates. This system is generally
supplemented by local insurance.
2.6.2 Main ongoing legal and tax
proceedings
The main legal and tax proceedings outstanding at Crédit Agricole
Corporate and Investment Bank (Crédit Agricole CIB) and its fully
consolidated subsidiaries are described in the 2020 management
report.
With respect to the exceptional events and the litigations set out
in this report and updated in the first quarter of 2021 in the A02
the new developments are mentioned:
y
In the penultimate paragraph of the part relating to “Euribor/
Libor and other indexes”,
y
In the third paragraph of the part relating to “Bonds SSA”,
y
In the pre-penultimate and last paragraphs of the part relating
to “Intercontinental Exchange, Inc. (“ICE”)”,
The main ongoing legal and tax proceedings in which Crédit
Agricole Corporate and Investment Bank (Crédit Agricole CIB)
and its fully consolidated subsidiaries are described in the
management report for the 2020 financial year.
The cases presented below are those that are born or have
evolved since 24 March 2021, the date on which the 2020
Universal Registration Document was filed with the
Autorité des
marchés financiers
(AMF). Are also mentioned the pending cases
which have not evolved since that date.
The main ongoing legal and tax proceedings at 31 December 2021
that may have negative impact on the Group’s asset have been
covered by provisions equal to the best estimate by the Executive
Management based on the information available to it. They are
referred to in Note 6.15 to the consolidated financial statements.
To date, to the best of Crédit Agricole CIB’s knowledge, there
are no other governmental, judicial or arbitration proceedings
(including any proceedings of which the Company is aware
that are pending or threatened), that may have or have had a
significant effect on the financial position or profitability of the
Company and/or the Group in the previous 12 months.
EXCEPTIONAL EVENTS AND DISPUTES
Office of Foreign Assets Control (OFAC)
In October 2015, Crédit Agricole S.A. and its subsidiary Crédit
Agricole Corporate and Investment Bank (Crédit Agricole CIB)
reached agreements with the US and New York authorities
that had been conducting investigations regarding US dollar
transactions with countries subject to US economic sanctions.
The events covered by this agreement took place between 2003
and 2008.
Crédit Agricole CIB and Crédit Agricole S.A., which cooperated
with the US and New York authorities in connection with their
investigations, have agreed to pay a total penalty amount of
$787.3 million (i.e., €692.7 million). The payment of this penalty
has been allocated to the pre-existing reserve that had already
been taken and, therefore, has not affected the accounts for the
second half of 2015.
The agreements with the Board of Governors of the Federal
Reserve System (Fed) and the New-York State Department
of Financial Services (NYDFS) are with CASA and Crédit
Agricole CIB. The agreement with the Office of Foreign Assets
Control (OFAC) of the US Department of the Treasury is with
Crédit Agricole CIB. Crédit Agricole CIB also entered into separate
deferred prosecution agreements (DPAs) with the United States
Attorney’s Office for the District of Columbia (USAO) and the
District Attorney of the County of New York (DANY), the terms
of which are three years. On October 19, 2018 the two deferred
prosecution agreements with USAO and DANY ended at the end
of the three-year period, Crédit Agricole CIB having complied with
all its obligations under the DPAs.
Crédit Agricole continues to strengthen its internal procedures and
its compliance programs regarding laws on international sanctions
and will continue to cooperate fully with the US and New York
authorities with its home regulators, the European Central Bank
and the French Regulatory and Resolution Supervisory Authority
(ACPR), and with the other regulators across its worldwide network.
Pursuant to the agreements with NYDFS and the US Federal
Reserve, Crédit Agricole’s compliance program is subject to
regular reviews to evaluate its effectiveness, including a review
by an independent consultant appointed by NYDFS for a term
of one year and annual reviews by an independent consultant
approved by the Federal Reserve.
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Euribor/Libor and other indexes
Crédit Agricole S.A. and its subsidiary Crédit Agricole CIB, in their
capacity as contributors to a number of interbank rates, have
received requests for information from a number of authorities as
part of investigations into: (i) the calculation of the Libor (London
Interbank Offered Rates) in a number of currencies, the Euribor
(Euro Interbank Offered Rate) and certain other market indices;
and (ii) transactions connected with these rates and indices. These
demands covered several periods from 2005 to 2012.
As part of its cooperation with the authorities, Crédit Agricole S.A.
and its subsidiary Crédit Agricole CIB carried out investigations
in order to gather the information requested by the various
authorities and in particular the American authorities – the DOJ
(Department of Justice) and CFTC (Commodity Future Trading
Commission) – with which they are in discussions. It is currently
not possible to know the outcome of these discussions, nor the
date when they will be concluded.
Furthermore, Crédit Agricole CIB is currently under investigation
opened by the Attorney General of the State of Florida on both
the Libor and the Euribor.
Following its investigation and an unsuccessful settlement
procedure, on 21 May 2014, the European Commission sent
a statement of objection to Crédit Agricole S.A. and to Crédit
Agricole CIB pertaining to agreements or concerted practices for
the purpose and/or effect of preventing, restricting or distorting
competition in derivatives related to the Euribor.
In a decision dated 7 December 2016, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB
€114,654,000 for participating in a cartel in euro interest rate
derivatives. Crédit Agricole S.A. and Crédit Agricole CIB are
challenging this decision and have asked the General Court of
the European Union to overturn it.
The Swiss competition authority, COMCO, has conducted an
investigation into the market for interest rate derivatives, including
the Euribor, with regard to Crédit Agricole S.A. and several Swiss
and international banks. This investigation was closed following
a settlement procedure under which Crédit Agricole S.A agreed
to pay a penalty of CHF 4.465.701 and proceedings costs
amounting to CHF 187.012 without any admission of guilt.
Moreover, in June 2016 the South Korean competition authority
(KFTC) decided to close the investigation launched in September
2015 into Crédit Agricole CIB and the Libor index on various
currencies, Euribor and Tibor indices. The investigation into certain
foreign exchange derivatives (ABS-NDF) has been closed by the
KFTC according to a decision notified to Crédit Agricole CIB on
20 December 2018.
Concerning the two class actions in the United States of America
in which Crédit Agricole S.A. and Crédit Agricole CIB have been
named since 2012 and 2013 along with other financial institutions,
both as defendants in one (“Sullivan” for the Euribor) and only
Crédit Agricole S.A. as defendant for the other (“Lieberman” for
Libor), the “Lieberman” class action is at the preliminary stage that
consists in the examination of its admissibility; proceedings are
still suspended before the US District Court of New York State.
Concerning the“Sullivan” class action, Crédit Agricole S.A. and
Crédit Agricole CIB introduced a motion to dismiss the applicants’
claim. The US District Court of New York State upheld the motion
to dismiss regarding Crédit Agricole S.A. and Crédit Agricole CIB
in first instance. On 14 June 2019, the plaintiffs appealed this
decision.
Since 1 July 2016, Crédit Agricole S.A. and Crédit Agricole CIB,
together with other banks, are also party to a new class action suit
in the United States (“Frontpoint”) relating to the SIBOR (Singapore
Interbank Offered Rate) and SOR (Singapore Swap Offer Rate)
indices. After having granted a first motion to dismiss filed by
Crédit Agricole S.A. and Crédit Agricole CIB, the New York Federal
District Court, ruling on a new request by the plaintiffs, excluded
Crédit Agricole S.A. from the Frontpoint case on the grounds
that it had not contributed to the relevant indexes. The Court
considered, however, taking into account recent developments
in case law, that its jurisdiction could apply to Crédit Agricole CIB,
as well as to all the banks that are members of the SIBOR index
panel. The allegations contained in the complaint regarding the
SIBOR/USD index and the SOR index were also rejected by the
court, therefore the index SIBOR/Singapore dollar alone is still
taken into account. On 26 December, the plaintiffs filed a new
complaint aimed at reintroducing into the scope of the Frontpoint
case the alleged manipulations of the SIBOR and SOR indexes
that affected the transactions in US dollars. Crédit Agricole CIB,
alongside the other defendants, objected to this new complaint
at the hearing held on 2 May 2019 before the New York Federal
District Court. On July 26, 2019, the Federal Court granted the
defendants’ motion to dismiss. The plaintiffs filed a notice of
appeal on August 26, 2019.
On March 17, 2021, a three-judge panel of the Court of Appeal
of the 2
nd
Circuit reversed the dismissal and returned the case to
the District Court. The defendants, including Crédit Agricole CIB,
requested the Second Circuit Court to rehear the case “en banc”
(all the active judges of the Court). This motion was denied by
the Second Circuit Court on May 6, 2021. Another motion was
filed on May 12, 2021 by the defendants seeking a stay of this
decision remanding the case to the District Court, which was
rejected on May 24, 2021. On October 1, 2021, the defendants
filed a petition for writ of certiorari with the US Supreme Court,
which decided on January 10, 2022 not to hear the case. A new
petition, currently under review, has been filed by the defendants
before the District Court in an attempt to stop this action.
These class actions are civil actions in which the plaintiffs claim
that they are victims of the methods used to set the Euribor,
Libor, SIBOR and SOR rates, and seek repayment of the sums
they allege were unlawfully received, as well as damages and
reimbursement of costs and fees paid.
Bonds SSA
Several regulators requested information to Crédit Agricole S.A.
and to Crédit Agricole CIB for investigations relating to activities
of different banks involved in the secondary trading of Bonds SSA
(Supranational, Sub-Sovereign and Agencies) denominated in
American dollars. Through the cooperation with these regulators,
Crédit Agricole CIB proceeded to internal inquiries to gather
the required information available. On 20 December 2018, the
European Commission issued a Statement of Objections to
a number of banks including Crédit Agricole S.A. and Crédit
Agricole CIB within its inquiry on a possible infringement of rules
of European Competition law in the secondary trading of Bonds
SSA denominated in American dollars. Crédit Agricole S.A. and
Crédit Agricole CIB became aware of these objections and issued
a response on 29 March 2019, followed by an oral hearing on
10-11 July 2019.
In a decision dated 28 April 2021, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB €
3,993,000 for participating in a cartel in the secondary trading
market of Bonds SSA denominated in American dollars. On 7 July
2021, Crédit Agricole S.A. and Crédit Agricole CIB appealed this
decision to the General Court of the European Union.
Crédit Agricole CIB was included with other banks in a putative
consolidated class action before the United States District
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Court for the Southern District of New York. That action was
dismissed on 29 August 2018 on the basis that the plaintiffs failed
to allege an injury sufficient to give them standing. However, the
plaintiffs were given an opportunity to attempt to remedy that
defect. The plaintiffs filed an amended complaint on 7 November
2018. Crédit Agricole CIB as well as the other defendants filed
motions to dismiss the amended complaint. An order issued on
30 September 2019 dismissed the class action against Crédit
Agricole CIB for lack of personal jurisdiction and, in a subsequent
ruling, the Court held that the plaintiffs had in any event failed
to state a claim for violation of US antitrust law. In June 2020,
the plaintiffs took an appeal from both of the Court’s orders. On
19 July 2021, the Second Circuit Court of Appeals affirmed the
district court’s holding that plaintiffs had failed to state a claim
for violation of US antitrust law. Plaintiffs’ deadline to seek further
review of the district court’s decision from the US Supreme Court
passed on 2 December 2021 without plaintiffs taking any further
action, and the action therefore is concluded.
On 7 February 2019, a second class action was filed against
Crédit Agricole CIB and the other defendants named in the class
action already pending before the United States District Court
for the Southern District of New York. In July 2020, the plaintiffs
voluntarily discontinued the action but the claim could be revived.
On 11 July 2018, Crédit Agricole S.A. and Crédit Agricole CIB
were notified with other banks of a class action filed in Canada,
before the Ontario Superior Court of Justice. Another class action
has been filed before the Federal Court of Canada. The action
before the Ontario Superior Court of Justice was dismissed on
19 February 2020.
O’Sullivan and Tavera
On November 9, 2017, a group of individuals, (or their families
or estates), who claimed to have been injured or killed in attacks
in Iraq filed a complaint (“O’Sullivan I”) against several banks
including Crédit Agricole S.A., and its subsidiary Crédit Agricole
Corporate and Investment Bank (Crédit Agricole CIB), in US
Federal District Court in New York.
On December 29, 2018, the same group of individuals, together
with 57 new plaintiffs, filed a separate action (“O’Sullivan II”)
against the same defendants.
On December 21, 2018, a different group of individuals filed a
complaint (“Tavera”) against the same defendants.
All three complaints allege that Crédit Agricole S.A., Crédit
Agricole CIB, and other defendants conspired with Iran and
its agents to violate US sanctions and engage in transactions
with Iranian entities in violation of the US Anti-Terrorism Act and
the Justice Against Sponsors of Terrorism Act. Specifically, the
complaints allege that Crédit Agricole S.A., Crédit Agricole CIB,
and other defendants processed US dollar transactions on behalf
of Iran and Iranian entities in violation of sanctions administered
by the US Treasury Department’s Office of Foreign Assets Control,
which allegedly enabled Iran to fund terrorist organizations that,
as is alleged, attacked plaintiffs. The plaintiffs are seeking an
unspecified amount of compensatory damages.
On 2 March 2018, Crédit Agricole CIB and other defendants filed
a motion to dismiss the O’ Sullivan I Complaint. On 28 March
2019, the Court granted defendants’ motion to dismiss.
On 22
April 2019, the plaintiffs filed a motion to amend their complaint.
Defendants submitted an opposition to that motion on 20 May
2019 and plaintiffs filed a reply on 10 June 2019. On 25 February
2020 the plaintiffs’ motion to amend their complaint was denied
and their original complaint dismissed with prejudice.
On 28 May 2020, plaintiffs filed a motion requesting that the court
enter a final judgment against defendants to allow an appeal.
On
11 June 2020, the defendants filed an opposition to plaintiffs’
motion, and plaintiffs filed a reply brief on 18 June 2020. At 29
June 2021, the court dismissed the plaintiffs’ motion.
At 28 July 2021, the court stayed the “O’Sullivan I” action while
awaiting for a decision to be established in the ongoing appeal
process in a Freeman v. HSBC Holdings PLC case, no 19-3970
(2d. Cir.). (The “O’Sullivan II” and “Tavera” cases have been
suspended previously while awaiting for the appeal process
outcome)
Intercontinental Exchange, Inc. (“ICE”)
On January 15, 2019 a class action (“Putnam Bank”) was filed
before a federal court in New-York (US District Court Southern
District of New-York) against the Intercontinental Exchange,
Inc. (“ICE”) and a number of banks including Crédit Agricole
S.A., Crédit Agricole CIB and Crédit Agricole Securities-USA.
This action has been filed by plaintiffs who allege that they have
invested in financial instruments indexed to the USD ICE LIBOR.
They accuse the banks of having collusively set the index USD
ICE LIBOR at artificially low levels since February 2014 and made
thus illegal profits.
On January 31, 2019 a similar action (“Livonia”) has been filed
before the US District Court Southern District of New-York,
against a number of banks including Crédit Agricole S.A., Crédit
Agricole CIB and Crédit Agricole Securities-USA. On February 1,
2019, these two class actions were consolidated for pre-trial
purposes.
On March 4, 2019, a third class action (“Hawaï Sheet Metal
Workers retirement funds”) was filed against the same banks in the
same courtand consolidated with the two previous actions on April
26, 2019. On July 1
st
, 2019, the plaintiffs filed a “Consolidated
Class Action Complaint”.
On August 30, 2019, the Defendants filed a motion to dismiss
against this consolidated complaint.
On March 26, 2020, a judgment granted the Defendants Motion
to Dismiss. On April 24, 2020, the plaintiffs filed a notice of appeal.
On November 30, 2020, during briefing of the appeal, Plaintiffs’
lawyers informed Defendants that all of the named Plaintiffs wished
to withdraw from the case and, on December 1, 2020, Plaintiffs’
counsel filed the motion to stay the appeal, which Defendants
opposed. The court denied the motion on December 7, 2020 and
Plaintiffs filed their reply brief on December 15, 2020.
On December 28, 2020, DYJ Holdings Inc. filed a motion for
leave to intervene to replace the currents named plaintiffs. On
January 7, 2021, Defendants filed a brief in opposition to DYJ
Holdings’ motion and also filed a motion to dismiss the appeal.
On April 6, 2021, the court granted DYJ Holdings Inc.’s motion
for leave to intervene and denied Defendants’ motion to dismiss
the appeal.
On June 10, 2021, Defendants submitted a supplemental brief
addressing merits issues unique to DJY Holdings.
Oral argument was held on November 29, 2021.
BINDING AGREEMENTS
Crédit Agricole Corporate and Investment Bank (Crédit
Agricole CIB) does not depend on any industrial, commercial or
financial patent, license or contract.
2.6.3 Non-compliance risks
Non-compliance risk is defined as the risk of legal, administrative or
disciplinary penalties, or of a material financial loss or reputational
damage, arising from a failure to comply with banking or financial
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laws or regulations, with professional or ethical standards, or with
instructions issued by the executive body in accordance with the
supervisory body’s guidelines.
A compliance control system, which is part of Crédit Agricole CIB
Group’s permanent control system, controls these risks.
PREVENTION AND CONTROL OF NON-
COMPLIANCE RISKS
The Compliance Department acts as the 2
nd
line of defence,
in partnership with the business lines, to protect the Bank, its
employees and its clients from non-compliance risk. The role of
the Compliance function is to:
y
protect Crédit Agricole CIB against any potentially harmful
or unlawful external actions: fight against fraud and cor
-
ruption, prevention of money laundering, fight against ter-
rorism financing, obligations in the fields of assets freeze
and embargoes, etc.;
y
protect the Bank’s reputation on the markets as well as its
clients’ interests against breaches of internal ethical rules and
breaches of the professional obligations applicable to the
Crédit Agricole CIB Group and its employees (insider trading,
price manipulation, dissemination of false information, conflicts
of interest, advisory failure, etc.) but also against internal or
mixed fraud and internal corruption.
To that end, the Compliance Department:
y
provides relevant advice and assists its employees and exec-
utive managers by providing them with advice and training
on compliance matters;
y
defines and organises the compliance control system (gov-
ernance system, compliance risk mapping, governance texts,
monitoring and controlling systems both for the Head Office
and for entities within Crédit Agricole CIB’s consolidated
scope of supervision);
y
performs or assigns the necessary ex-ante or ex-post controls,
depending on the activities, and in particular monitors the
transactions carried out by the Bank on its own accountor
on behalf of its clients;
y
organizes, in conjunction with the Risk and Permanent Control
Division, the reporting of any compliance incidents and ensures
the rapid implementation of necessary corrective action, in
coordination with the Risk and Permanent Control Division
and the Audit Division;
y
manages the relationships with regulatory and market supervi-
sion authorities, in conjunction with the Risks and Permanent
Control Division and the Audit Division;
y
produces the necessary reports on the quality of the system
and the level of the compliance risks for Crédit Agricole S.A.’s
Executive Management, Board of Directors, and Compliance
Department, as well as to the French and foreign authorities
and regulators.
Crédit Agricole CIB has established a non-compliance risk
control system aimed at protecting itself against these risks.
Specific operational management and monitoring resources are
implemented: staff training, adoption of written internal rules,
dedicated tools, permanent compliance controls, fulfilment of
reporting obligations to regulatory authorities, etc.
The Compliance Management Committee oversees the system for
controlling non-compliance risks and ensures that it is appropriate
and effective in guaranteeing an adequate level of security. At
the same time, the Head of Compliance regularly informs Crédit
Agricole CIB’s governance bodies and Crédit Agricole S.A.’s
Compliance Department of the non-compliance risks to which
the Bank is exposed.
Crédit Agricole CIB Group’s Compliance function is part of the
Crédit Agricole S.A. Group’s compliance business line. The
Crédit Agricole CIB Group’s Compliance business line includes
all compliance teams at the head office and local managers of
the network and their teams. In order to improve the integration
and guarantee the independence of this function, the hierarchical
and functional links are as follows:
y
the Head of Compliance reports to the Head of Compliance
of Crédit Agricole S.A. and is functionally subordinate to the
Executive Management of Crédit Agricole CIB;
y
Crédit Agricole CIB’s Regional Compliance Officers report to
the Head of Compliance of Crédit Agricole CIB;
y
Crédit Agricole CIB’s Local Compliance Officers report to the
Regional Compliance Officer (RCO);
y
the Compliance Manager of the Wealth Management business
line reports hierarchically to Crédit Agricole CIB’s Head of
Compliance and functionally to the Chief Executive Officer
of Private Banking.
In 2021, the Compliance business line continued and intensified
its actions to strengthen its resources in terms of profiles and
expertise and by adapting its processes.
Crédit Agricole CIB’s Compliance organisation is structured
around two complementary axes:
y
at the head office, the Compliance Division is made up of
four integrated pole of expertise, with a global responsibility
and organised according to a Customer, Product and/or
Employee focus and a cross-functional function:
-
Global Markets Regulatory Compliance (GMRC), in charge of
compliance issues related to regulations, laws and financial
market codes. As such, GMRC defines effective policies and
procedures, defines and deploys training, assesses and iden-
tifies non-compliance risks, advises business lines on compli-
ance risks related to their activities and performs second-level
controls on compliance risks;
-
Investment & Corporate Banking Regulatory Compliance
(ICBRC) is in charge of supervising - for the financing and
investment business lines - the overall system of compliance
with internal and external standards and is responsible for
the compliance of these business lines/coverage within the
meaning of the AMF General Regulation. ICBRC is also in
charge of establishing the CIB of Crédit Agricole CIB’s Conflict
of Interest Management Policy and setting up a global system
for identifying, preventing and managing conflicts of interest;
-
Financial Security, responsible for the Bank’s overall system on
the identification, mapping, prevention, control and reporting
of risks relating to financial crime: prevention of money laun-
dering, combating the financing of terrorism, obligations under
embargoes and asset freezes, as well as external corruption.
The Financial Security division processes and controls alerts
in relation to financial security at the head office and also inter-
venes as a last resort in high-risk situations (embargoes);
-
Ethics Advisory Group (EAG), in charge of issues primarily
related to ethics, including:
-
Data Protection, in charge of managing non-compliance risks
related to data processing;
-
Fight Against Fraud & Corruption, which is responsible for
the prevention and detection of corruption and fraud risks at
the Bank;
-
Coordination of Compliance Training and Culture, in charge of
coordinating Compliance training topics, in conjunction with
Human Resources, and promoting the compliance culture
within the Bank;
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-
FATCA governance, in charge of governance and coordination
of subjects related to FATCA regulations;
-
a General Secretary, supporting the poles of expertise, in charge
of coordinating cross-functional issues involving Compliance,
with an organisation centred on 3 functions:
-
Governance, in charge of cross-functional issues;
-
Innovation & Projects, in charge of digital transformation and
steering of Compliance cross-business projects;
-
The Compliance Control Unit, which handles supervision,
coordination and reporting related to the compliance control
and KYC quality control system, and performs second-level
controls;
y
a geographical system guaranteeing compliance by each
entity with the Bank’s global compliance rules, as well as
laws, regulations and local professional standards, under the
responsibility of the RCOs (Regional Compliance Officers) and
LCOs (Local Compliance Officers);
The Compliance function’s main governance body is the
Compliance Management Committee, which includes Crédit
Agricole CIB’s Legal (LGL), Finance and Procurement (FIN),
Permanent Control and Risks (RPC) and Periodic Control (IGE)
functions and, since 2020, the heads of the Business Line/
Coverage Division. It is chaired by the Deputy Chief Executive
Officer of Crédit Agricole CIB in charge of compliance. The
Compliance Division of Crédit Agricole S.A. is also a permanent
member of this committee. The Compliance Division is also
responsible for governance of the New Products (NAP) system
and chairs Crédit Agricole CIB’s topmost NAP Committee (a
mechanism for controlling the risks association with new
businesses and products).
In 2021, the Crédit Agricole CIB Compliance Division continued to
provide support and advice to the Bank’s Executive Management
and business lines.
The Compliance Division has also launched various projects and
initiatives to continue improving its structure, tools and processes
and to increase its resources.
Against this backdrop, the following work was carried out in 2021:
y
taking account of regulatory developments with the continua-
tion of ongoing projects, in particular Benchmark, and Brexit;
y
the implementation of global projects to strengthen the
non-compliance risk management system (in addition to
purely local initiatives) with:
-
initiatives aimed at improving customer knowledge, imple-
menting controls on KYC quality, transaction monitoring and
the AML alert management system;
-
strengthening the market abuse monitoring framework,
including the implementation of new tools and models;
y
rallying teams on the international sanctions remediation plan;
y
the development of new artificial intelligence tools and solu-
tions to respond in an innovative way to comply with chal-
lenges and needs with regard to business line and support
function;
y
supporting the Bank’s Executive Management in its efforts to
strengthen the Compliance culture with the continuation of the
Embedded Compliance project aimed at strengthening the
Compliance system in the first lines of defence. Structured
around a number of key areas, this project has:
-
led to the introduction of new governance measures, with a
view to giving the business lines increased responsibility;
-
continued to strengthen the compliance culture through training
and communication initiatives, particularly targeting the first
line of defence;
The Compliance Department of Crédit Agricole Indosuez
(CAI), which is responsible for overseeing and coordinating the
Private Bank entities, is structured into four separate divisions
(Regulatory Compliance, Financial Security, Fight Against Fraud
& Corruption, Steering and Governance), thus reinforcing the
key role Compliance plays in the governance of the Business
Line. These four divisions report to the Head of Compliance for
Private Banking.
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3.
BASEL III PILLAR 3 DISCLOSURES
3.1
COMPOSITION AND MANAGEMENT OF CAPITAL
Under the Basel 3 agreements, (EU) Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013
(Capital Requirements Regulation), as amended by CRR No. 2019/876 (referred to as “CRR2”), requires supervised financial
institutions (mainly credit institutions and investment firms) to disclose quantitative and qualitative information on their risk
management activities. Crédit Agricole CIB Group’s risk management system and exposure levels are described in this section
and in the “Risk Management” section of the present 2021 Universal Registration Document.
The Basel 3 agreements are structured around three pillars:
y
Pillar 1
determines the minimum capital adequacy require-
ments and ratio levels in accordance with current regulatory
framework;
y
Pillar 2
supplements the regulatory approach with the quan-
tification of a capital requirement covering the major risks to
which the Bank is exposed, based on the methodologies
specific to it (see “Internal view of capital adequacy” section);
y
Pillar 3
introduces new standards for financial disclosures to
the market. These must detail the components of regulatory
capital the assessment of risks, both with regard to the reg-
ulations applied and the activity during the period.
Crédit Agricole CIB has opted to disclose its Pillar 3 information in
a separate section from the Risk Factors and Risk Management
section in order to isolate the information that is required to be
disclosed under the regulations.
In accordance with the provisions set out by the CRR 2 Regulation,
Crédit Agricole CIB publishes the qualitative and quantitative
information required for a large listed institution, included in the
consolidation scope of the Crédit Agricole S.A. Group and the
Crédit Agricole Group.
Solvency management is primarily aimed at assessing capital and
ensuring it is sufficient to cover the risks to which Crédit Agricole
CIB is or may be exposed in light of its activities. The objective is
to secure customer deposits and give the Group access to the
financial markets under the sought-after conditions.
To that end, the Crédit Agricole CIB group measures regulatory
capital requirements (Pillar 1) and manages regulatory capital by
relying on short- and medium-term forward-looking measures,
consistent with budget projections, based on a central economic
scenario.
In addition, the Group employs an internal process called ICAAP
(Internal Capital Adequacy and Assessment Process), developed
in accordance with the interpretation of the regulatory texts
specified below. The ICAAP includes in particular:
y
governance of capital management, tailored to the specific
features of Group subsidiaries and enabling centralised and
coordinated oversight at Group level;
y
measurement of economic capital requirements, based on
the risk identification process and a quantification of capital
requirements using an internal approach (Pillar 2);
y
performance of ICAAP stress tests, aimed at simulating capital
destruction after three years of an adverse economic scenario;
y
economic capital management (see “Internal view of capital
adequacy” section);
y
a qualitative ICAAP that formalises the major areas for risk
management improvement.
The ICAAP is highly integrated with the Group’s other strategic
processes such as the ILAAP (Internal Liquidity Adequacy and
Assessment Process), risk appetite, the budget process, the
recovery plan and risk identification.
Lastly, solvency and leverage ratios are an integral part of the
risk appetite system applied within the Group (described in the
chapter entitled “Risk factors and risk management”) within the
present 2021 Universal Registration Document.
3.1.1 Applicable regulatory framework
The Basel 3 agreements have tightened up the regulatory
framework by enhancing the quality and level of regulatory capital
required and by adding new risk categories to the regulatory
framework. In addition, a specific regulatory framework, which
provide for an alternative to bank default, was introduced following
the 2008 financial crisis.
The texts on prudential requirements for credit institutions
and investment firms were published in the Official Journal of
the European Union on 26 June 2013. They include Directive
2013/36/EU (Capital Requirements Directive, aka CRD 4) and
Regulation 575/2013 (Capital Requirements Regulation, aka CRR)
and came into force on 1 January 2014, in accordance with the
transitional provisions provided for in the texts.
Directive 2014/59/EU (Bank Recovery and Resolution Directive)
was published on 12 June 2014 in the Official Journal of the
European Union and has been applicable in France since
1 January 2016. The European Single Resolution Mechanism
Regulation (SRMR, Regulation 806/2014) was published on
15 July 2014 and entered into force on 19 August 2016, in
accordance with the transitional provisions provided for in the
texts.
On 7 June 2019, four legislative texts constituting the banking
package were published in the Official Journal of the European
Union:
y
CRR2: Regulation (EU) 2019/876 of the European Parliament
and of the Council of 20 May 2019 amending Regulation
(EU) No 575/2013;
y
SRMR 2: Regulation (EU) 2019/877 of the European Parliament
and of the Council of 20 May 2019 amending Regulation (EU)
No 806/2014;
y
CRD 5: Directive (EU) 2019/878 of the European Parliament
and of the Council of 20 May 2019 amending Directive
2013/36/EU;
y
BRRD 2: Directive (EU) 2019/879 of the European Parliament
and of the Council of 20 May 2019 amending Directive
2014/58/EU.
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SRMR 2 and CRR2 entered into force 20 days after they were
published, i.e. on 27 June 2019 (although not all provisions were
immediately applicable). The CRD 5 and BRRD 2 directives were
transposed into French law on 21 December 2020 by Orders
2020-1635 and 2020-1636, respectively, and came into force
seven days after they were published, on 28 December 2020.
Regulation 2020/873 (known as the “CRR Quick Fix”) was
published on 26 June 2020 and came into force on 27 June 2020,
amending Regulations 575/2013 (CRR) and 2019/876 (CRR2).
Under CRR2/CRD 5, four levels of capital requirements are
calculated:
y
the Common Equity Tier 1 (CET1) capital ratio;
y
the Tier 1 (T1) capital ratio;
y
the total capital ratio;
y
the leverage ratio, subject to a Pillar 1 regulatory requirement
since 28 June 2021.
These ratios are subject to a phased-in calculation aimed at
gradually managing:
y
the transition between Basel 2 and Basel 3 calculation rules
(the transitional provisions were applied to all capital until 1
January 2018 and apply to hybrid debt instruments until 1
January 2022);
y
the eligibility criteria defined by CRR2 (until 28 June 2025 for
capital instruments);
y
the impacts of the application of IFRS 9.
3.1.2 Supervision and prudential scope
Credit institutions and certain approved investment activities
referred to in Annex 1 to Directive 2004/39/EC are subject to
solvency and large exposure ratios on an individual and, where
applicable, “sub-group” basis.
The French Regulatory Control and Resolution Authority (ACPR)
has accepted that certain subsidiaries of the Group may benefit
from an individual exemption under the conditions set out in Article
7 of the CRR Regulation. In that regard, the ACPR has provided
Crédit Agricole CIB with an exemption on an individual basis.
The transition to single supervision on 4 November 2014 by the
European Central Bank did not call into question the individual
exemptions previously granted by the ACPR.
The detailed list of entities showing a difference in treatment
between accounting scope and prudential scope is presented
in the “Notes to the regulatory capital requirements” section.
3.1.3 Capital policy
At the Investor Day held on 6 June 2019, the Crédit Agricole CIB
group unveiled its financial guidance for the Group Project and the
2022 Medium-Term Plan. Targets in terms of income and scarce
resources were specified at that time.
Crédit Agricole S.A.’s subsidiaries under exclusive control and
subject to compliance with capital requirements, including the
Crédit Agricole CIB Group, are allocated capital at a consistent
level, taking into account local regulatory requirements, the
capital requirements needed to finance their development and
a management buffer tailored to the volatility of their CET1 ratio.
3.1.4 Governance
The Scarce Resources Committee meets each quarter. Meetings
are chaired by the Deputy Chief Executive Officer in charge of
finance and are also attended by the Chief Risk Officer, the Head
of Oversight the Head of Cash Management and representatives
of the business lines and Crédit Agricole S.A. representatives.
The main tasks of this committee are to:
y
review Crédit Agricole CIB Group’s solvency, leverage ratio
and resolution projections for the short and medium term;
y
validate the main assumptions affecting solvency in line with
the Medium-Term Plan;
y
set the rules for capital management and allocation between
the bank’s various business lines within the Group;
y
decide on liability management transactions (subordinated
debt management);
y
keep up to date with supervisory and regulatory developments;
y
examine relevant issues relating to subsidiaries;
y
prepare any decisions to be submitted to the Board of
Directors’ Asset-Liability Committee;
y
examine any other matters impacting the solvency and res-
olution ratios at Group level.
Regulatory capital is managed using a process known as capital
planning.
The purpose of capital planning is to provide projections of capital
and consumption of scarce resources (risk-weighted assets and
balance sheet size) over the horizon of the current Medium-Term
Plan, with a view to establishing guidance for the solvency ratios
(CET1, Tier 1, total capital ratio), and the leverage and resolution
ratios (if applicable).
It covers the budget components of the financial trajectory,
including structural transaction plans, accounting and prudential
regulatory changes, and the reviews of models applied to risk
bases. It also reflects the issue policy (subordinated debt and
TLAC/MREL-eligible debt) and distribution policy with regard to
the capital structure objectives defined in line with the Group’s
strategy.
It determines the leeway available to the Group for the
development of the business lines.
The capital planning is submitted to various governance bodies
and is communicated to the competent authorities, either as part
of regular information exchanges or in connection with one-off
operations (such as authorisation requests)
3.1.5 Prudential capital
3.1.5.1
PRUDENTIAL CAPITAL
Basel 3 defines three levels of capital:
y
Common Equity Tier 1 (CET1) capital;
y
Tier 1 (T1) capital, which consists of Common Equity Tier 1
and Additional Tier 1 (AT1) capital;
y
total capital, consisting of Tier 1 capital and Tier 2 (T2) capital.
All tables and comments below include retained earnings for
the period.
Common Equity Tier 1 (CET1) capital
This comprises:
y
capital;
y
reserves, including share premiums, retained earnings, income
net of tax after dividend payments and accumulated other
comprehensive income, including unrealised capital gains
or losses on financial assets held to collect and sell and
translation adjustments;
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y
minority interests, which are partially derecognised, or even
excluded, depending on whether or not the subsidiary is
an eligible credit institution; this partial derecognition corre-
sponds to the surplus capital relative to the level needed to
cover the subsidiary’s capital requirements and applies to
each capital tier;
y
deductions, which mainly include the following items:
-
CET1 instruments held under liquidity contracts and buyback
programmes,
-
intangible assets, including start-up costs and goodwill,
-
prudent valuation, which consists in adjusting the amount of
the institution’s assets and liabilities if, in accounting terms, it
does not reflect a valuation deemed prudent by regulations,
-
deferred tax assets that rely on future profits and arise from
tax loss carry forwards,
-
insufficient provisions relative to expected losses for exposures
managed under the internal ratings-based approach, as well
as expected losses on equity exposures,
-
equity instruments held in financial sector investments of 10%
or less (referred to as non-material investments), for the amount
exceeding a cap of 10% of the subscriber’s CET1 capital, in
the proportion of CET1 instruments held out of total equity
instruments held; non-deducted items are included in risk-
weighted assets (variable weighting according to instrument
type and Basel method),
-
deferred tax assets (DTAs) that depend on future profits related
to temporary differences in the amount exceeding an individual
cap of 10% of the institution’s CET1 capital; non-deducted
items are included in risk-weighted assets (250% risk weight),
-
CET1 instruments held in financial sector investments of more
than 10% (large investments) for the amount exceeding an
individual cap of 10% of the institution’s CET1 capital; items
not deducted are included in risk-weighted assets (250% risk
weight),
-
the sum of deferred tax assets (DTAs) depending on future
profits related to temporary differences and CET1 instruments
held in financial sector investments of more than 10% (referred
to as large investments) for the amount exceeding a set cap of
17.65% of the institution’s CET1 capital, after calculating the
individual caps listed above; non-deducted items are included
in risk-weighted assets (250% risk weight).
Additional Tier 1 (AT1) capital
This comprises:
y
eligible additional Tier 1 (AT1) capital, which consists of
undated debt instruments without any redemption incen-
tives or obligations (particularly including step-up clauses);
y
direct deductions of AT1 instruments (including market-making
instruments);
y
deductions of equity instruments held in financial sector invest-
ments of 10% or less (referred to as non-material investments),
for the amount exceeding a cap of 10% of the subscriber’s
CET1 capital, in the proportion of CET1 instruments held
out of total equity instruments held; non-deducted items are
included in risk-weighted assets (variable weighting according
to instrument type and Basel method),
y
deductions of AT1 instruments held in financial sector invest-
ments of more than 10% (large investments);
y
other AT1 capital components or other deductions (including
AT1-eligible minority interests).
AT1 instruments eligible for CRR 575/2013 as amended by
CRR2019/876 (CRR2) are subject to a loss absorption mechanism
that is triggered when the CET1 ratio is below a threshold that
must be set at a minimum of 5.125%. Instruments may be
converted into equity or suffer a reduction in their nominal value.
Payments must be totally flexible (no automatic remuneration
mechanisms and/or suspension of coupon payments at the
Issuer’s discretion are permitted).
AT1 instruments issued by Crédit Agricole CIB include a loss
absorption mechanism that triggers when Crédit Agricole CIB’s
CET1 ratio is below a threshold of 5.125%.
At 31 December 2021, Crédit Agricole CIB’s phased-in CET1
ratio was 11.68%. It thus serves as a capital buffer of €8.7
billion for Crédit Agricole CIB relative to the loss absorption
threshold of 5.125%.
At 31 December 2021, there was no applicable restriction on the
payment of coupons.
CRR2 introduces eligibility criteria. For example, instruments
issued by an institution established in the European Union subject
to third-country law must include a bail-in clause in order to be
eligible. These provisions apply to each category of AT1 and T2
capital instruments.
These instruments are published and detailed on the website:
(
https://www.ca-cib.com/about-us/financial-information/
regulated-information
) in Appendix II “Main features of capital
instruments”
Tier 2 (T2) capital
This comprises:
y
subordinated debt instruments with a minimum maturity of
five years and for which:
-
early redemption incentives are prohibited,
-
a discount is applied during the five-year period prior to maturity;
y
deductions of direct holdings of Tier 2 instruments (including
market-making instruments);
y
the provisions in excess of the eligible expected losses deter-
mined using the internal ratings-based approach, limited to
0.6% of IRB (internal ratings-based) risk-weighted assets;
y
deductions of equity instruments held in financial sector invest-
ments of 10% or less (referred to as non-material investments),
for the amount exceeding a cap of 10% of the subscriber’s
CET1 capital, in the proportion of T2 instruments held out
of total equity instruments held; non-deducted items are
included in risk-weighted assets (variable weighting according
to instrument type and Basel method);
y
deductions of Tier 2 instruments held in financial sector invest-
ments of more than 10% (large investments), mainly from the
insurance sector;
y
Tier 2 capital components or other deductions (including Tier
2-eligible minority interests).
The amount of Tier 2 instruments used in the fully-loaded ratios
is equal to the Tier 2 capital instruments eligible under CRR No.
575/2013 as amended by CRR No. 2019/876 (CRR2).
These instruments are published and detailed on the website:
(
https://www.ca-cib.com/about-us/financial-information/
regulated-information
) in Appendix II “Main features of capital
instruments”
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Transitional provisions
Less stringent transitional provisions were provided for to make it
easier for credit institutions to comply with CRR2/CRD 5, thanks
to the gradual introduction of the new prudential treatments of
capital components.
All these transitional provisions ended on 1 January 2018, with
the exception of the provisions relating to hybrid debt instruments,
which will cease to apply on 1 January 2022.
Hybrid debt instruments eligible as capital under CRD 3 and are
no longer eligible due to the entry into force of CRD 4, may be
eligible for a grandfather clause under certain conditions:
y
any instruments issued after 31 December 2011 that do not
comply with the CRR have been excluded since 1 January
2014;
y
instruments with an earlier date of issue may be eligible under
the grandfather clause and are gradually excluded over an
eight-year period, with a reduction of 10% per year. In 2014,
80% of the total reported at 31 December 2012 was recog-
nised, then 70% in 2015, etc.
y
The derecognised share may be included in the next-lower
capital tier (from AT1 to Tier 2, for example) if it meets the
corresponding criteria.
CRR2 rounded out these provisions by introducing a new
grandfather clause: ineligible instruments issued before 27 June
2019 remain eligible under transitional provisions until 28 June
2025.
During the transition phase, the Tier 1 capital used in the ratios
is equal to the sum of:
y
Additional Tier 1 capital eligible under CRR2 (AT1);
y
Additional Tier 1 capital instruments eligible under CRR issued
before 27 June 2019;
y
a fraction of the CRR-ineligible Tier 1 capital issued before
1 January 2014, equal to at least:
-
the prudential amount of the ineligible Tier 1 instruments at the
end of the reporting period (after any calls, redemptions, etc.)
-
10% (regulatory threshold for fiscal year 2021) of the total Tier
1 capital at 31 December 2012, which stood at €4,691 million,
i.e. a maximum recognisable amount of €469 million.
-
The amount of the Tier 1 capital exceeding this prudential
threshold is included in the phased-in Tier 2 capital, up to the
prudential threshold applicable to Tier 2 capital.
During the transition phase, the Tier 2 capital amount used in the
ratios is equal to the sum of:
y
CRR2-eligible Tier 2 capital;
y
Tier 2 capital instruments eligible under CRR issued before
27 June 2019;
y
a fraction of the CRR-ineligible Tier 2 capital issued before
1 January 2014, equal to at least:
-
the prudential amount of the ineligible Tier 2 securities on the
reporting date and, where applicable, the remainder of the Tier
1 securities exceeding the 10% threshold (threshold for fiscal
year 2021) for ineligible Tier 1 securities,
-
10% (threshold for fiscal year 2021) of CRR-ineligible Tier 2
capital at 31 December 2012, which stood at €680 million, i.e.
a maximum recognisable amount of €68 million.
Lastly, the “Quick Fix” regulation of 26 June 2020 has extended, to
2024, the application of the transitional provisions provided for by
the CRR relating to the inclusion in solvency ratios of the impact of
applying accounting standard IFRS 9. Crédit Agricole CIB did not
opt to apply this provision on the first-time application of IFRS 9
in 2018. Following the publication of the Quick Fix regulation, the
decision was made to opt for this provision as from the recording
date of 30 June 2020.
During the transition phase (until 2024), the impacts associated
with the application of IFRS 9 may be included in CET1 capital,
based on a calculation consisting of several components:
y
a static component serving to neutralise some of the impact
of the first-time application of IFRS 9. In 2021, neutralisation
was carried out based on a rate of 50%;
y
a dynamic component, serving to neutralise some of the net
increase in provisions recorded between 1 January 2018 and
1 January 2020 on performing loans (compartments 1 and
2 of IFRS 9). In 2021, neutralisation was carried out based
on a rate of 50%;
y
A second dynamic component, serving to neutralise some of
the net increase in provisions recorded between 1 January
2020 and the reporting date on performing loans (compart-
ments 1 and 2 of IFRS 9). In 2021, neutralisation was carried
out based on a rate of 100%.
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3.1.5.2
POSITION AS OF 31 DECEMBER 2021
f
Simplified regulatory capital
€ million
31.12.2021
31.12.2020
phased-in
fully-loaded
phased-in
fully-loaded
EQUITY - GROUP SHARE
1
26,400
26,400
22,484
22,484
(-) Expected dividend
-
-
-
-
(-) AT1 instruments accounted as equity
-
-
-
-
Eligible minority interests
-
-
-
-
(-) Prudential filters
(915)
(915)
(1,040)
(1,040)
o/w: Prudent valuation
(772)
(772)
(508)
(508)
(-) Deduction of goodwill and intangible assets
(1,367)
(1,367)
(1,286)
(1,286)
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences
(12)
(12)
(21)
(21)
Shortfall in adjustments for credit risk relative to expected losses under
the internal ratings-based approach
(7)
(7)
(7)
(7)
Amount exceeding thresholds
-
-
-
-
Insufficient coverage for non-performing exposures
(1)
(1)
-
-
Other CET1 components
(8,508)
(8,723)
(5,595)
(5,595)
COMMON EQUITY TIER 1 (CET1)
15,590
15,375
14,534
14,534
Additional Tier 1 (AT1) instruments
8,378
7,909
5,587
4,649
Other AT1 components
40
40
(82)
(82)
TOTAL TIER 1
24,008
23,324
20,040
19,102
Tier 2 instruments
3,511
3,458
3,362
3,225
Other Tier 2 components
473
473
412
412
TOTAL CAPITAL
27,991
27,255
23,814
22,739
1
Information covered by the Stautory auditors’ opinion.
For the sake of clarity, the complete table on the composition of capital (EU CC1) is presented in Pillar 3 available on the website: Regulated
information | Crédit Agricole CIB (ca-cib.fr).
Change over the period
Fully-loaded Common Equity Tier 1 (CET1) capital
amounted
to €15.4 billion at 31 December 2021, representing an increase
compared to end-2020 (+€0.8 billion).
The changes are detailed below by ratio category:
y
capital instruments and reserves amounted to €17.7 billion,
up +€0.8 billion compared to end-2020, mainly due to the
share of retailed earnings in 2021.
y
prudential filters were down slightly (positive impact of +€0.1
billion) compared to end-2020;
y
deductions for goodwill and other intangible assets amounted
to -€1.4 billion, an increase of (negative impact of -€0.1 billion
in 2021).
Phased-in Common Equity Tier 1 (CET1)
amounted to
€15.6 billion at 31 December 2021, i.e. a difference of +€0.2 billion
compared to fully-loaded Common Equity Tier 1 (CET1) capital.
This difference is entirely due to a measure under the Quick
Fix Regulation of 26 June 2020, referred to in the paragraph
on transitional provisions, which extended the possibility of
incorporating the impacts of the application of IFRS 9 in solvency
ratios to 2024. During this transitional phase, the impacts related
to the application of IFRS 9 may thus be included in CET1 capital,
which the CACIB Group has opted to do as of this reporting date.
Fully-loaded Tier 1 (T1) capital totalled
€23.3 billion, an increase
of +€4.2 billion versus 31 December 2020, corresponding to
the increase in Additional Tier 1 capital (+€3.4 billion) due to
several issues of additional capital instruments carried out in
February 2021 ($0.7 billion), March 2021 (€0.6 billion replacing
the redemption of an issue for the same amount) and June 2021
(€2.6 billion);
Phased-in Tier 1 (T1) capital stood at
€24.0 billion, up
+€4.0 billion compared to 31 December 2020, with an increase
in Additional Tier 1 capital of +€2.9 billion;
Ineligible
AT1 capital instruments
with a grandfather clause were
down -€0.5 billion as a result of a partial buy-back. Furthermore,
the total amount of securities subject to a grandfather clause under
CRR remained lower, making it possible to include, in addition
to CRR-eligible instruments, a debt amount corresponding to a
maximum of 10% of the total at 31 December 2012.
At €3.9 billion,
fully-loaded Tier 2 capital
was up by +€0.3 billion
compared with 31 December 2020. This change is mainly due to
an issue carried out in January 2021.
Phased-in Tier 2 (T2) capital amounted
to €4.0 billion, up
+€0.2 billion compared to 31 December 2020.
Furthermore, the total amount of securities subject to a
grandfather clause under CRR remained lower, making it possible
to include, in addition to CRR-eligible instruments, a debt amount
corresponding to a maximum of 10% of the total at 31 December
2012.
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Fully-loaded total capital amounted
to €27.3 billion, up +€4.5
billion compared with 31 December 2020.
Overall, phased-in total capital amounted
to €28.0 billion at
31 December 2020, up +€4.2 billion versus 31 December 2020.
3.1.6 Capital adequacy
Capital adequacy from a regulatory perspective concerns solvency
ratios, the leverage ratio and resolution ratios. Each of these
ratios reports an amount of prudential capital and/or instruments
eligible for exposure to risk, leverage or balance sheet size. The
definitions and calculations of these exposures are described
in the section 3.2 “Composition and changes in risk-weighted
assets” section. The regulatory view is supplemented by the
internal view of capital adequacy, which concerns the coverage
of economic capital requirements by internal capital.
3.1.6.1
SOLVENCY RATIOS
The purpose of solvency ratios is to verify the adequacy of the
various capital compartments (CET1, Tier 1 and total capital) to
risk-weighted assets arising from credit, market and operational
risks. These risks are calculated either using the standardized
approach or the internal approach (see section 3.2 “Composition
and changes in risk-weighted assets” section).
Prudential requirements
Pillar 1 requirements are governed by Regulation (the CRR). The
regulator also sets minimum requirements within the framework
of Pillar 2 on a discretionary basis.
f
The overall capital requirement is as follows:
SREP capital requirement
31.12.2021
31.12.2020
Pillar 1 minimum CET1
requirement
4.50%
4.50%
CET1 additional Pillar 2
requirement (P2R)
0.84%
0.84%
Combined buffer requirement
2.54%
2.54%
CET1 requirement
7.88%
7.88%
Pillar 1 minimum AT1
requirement
1.50%
1.50%
AT1 component of P2R
0.28%
0.28%
Pillar 1 minimum Tier 2
requirement
2.00%
2.00%
Tier 2 component of P2R
0.38%
0.38%
Overall capital requirement
12.04%
12.04%
Crédit Agricole CIB must comply with a minimum CET1 ratio
of 7.88%. This level includes Pillar 1, Pillar 2 (P2R) capital
requirements, supplemented by total capital buffer requirements
(based on the decisions known to date).
Minimum Pillar 1 requirements
Pillar 1 capital requirements include a minimum CET1 capital ratio
of 4.5%, a minimum Tier 1 capital ratio of 6% and a minimum
total capital ratio of 8%
Minimum Pillar 2 requirements
The Crédit Agricole CIB Group is notified annually by the European
Central Bank (ECB) of the minimum capital requirements following
the publication of the results of the Supervisory Review and
Evaluation Process (SREP).
y
a Pillar 2 Requirement (P2R) of 1.5%. This requirement applies
to all the capital tiers and automatically leads to capital dis-
tribution restrictions (coupons of additional Tier 1 capital
instruments, dividends, variable remuneration) in the event of
non-compliance; this requirement is therefore public. 75% of
P2R can be covered by Tier 1 capital, at least 75% of which
must be CET1 capital;
y
Pillar 2 Guidance (P2G) that is not public and must be fully
comprised of Common Equity Tier 1 (CET1) capital.
Combined buffer requirements and distribution
restriction threshold
Regulations have provided for the establishment of capital buffers,
to be fully covered by Common Equity Tier 1 capital and subject
to the following overall requirements:
Combined buffer requirement
31.12.2021
31.12.2020
Phased-in capital conservation
buffer
2.50%
2.50%
Phased-in systemic buffer
0.00%
0.00%
Countercyclical buffer
0.04%
0.04%
Combined buffer
requirement
2.54%
2.54%
MORE SPECIFICALLY:
y
the conservation buffer (2.5% of risk-weighted assets in
2021); which aims to absorb losses in a situation of intense
economic stress;
y
the countercyclical buffer (rate in principle set in a range of
0% to 2.5%), which aims to combat excessive credit growth.
The rate is set by the competent authorities of each State
(the HCSF in France) and the buffer at institution level being
an average weighted by the exposures at default (EAD) of
the buffers defined for each country where the institution
has operations; where the rate of a countercyclical buffer is
calculated for a country of operation, the effective date is no
more than 12 months after the date of publication, except in
exceptional circumstances;
y
the systemic risk buffer (generally between 0% and 3%, and
up to 5% with the approval of the European Commission,
and higher in exceptional cases) aims to prevent or mitigate
the non-cyclical aspect of the risk. It is set by the competent
authorities of each State (the HCSF in France) and depends
on the structural characteristics of the banking sector, in
particular its size, degree of concentration and contribution
to the funding of the economy.
y
systemically important bank buffers (0% to 3% generally, up
to 5% with the approval of the European Commission, and
higher in exceptional cases); for Global Systemically Important
Institutions (G-SIIs, between 0% and 3.5%) or for other sys-
temically important institutions (O-SIIs, between 0% and 2%).
These buffers are not cumulative and, generally speaking,
with some exceptions, the highest buffer applies. Only the
Crédit Agricole Group is a G-SII and has had a buffer of 1%
since 1 January 2019. The Crédit Agricole CIB Group is not
subject to such requirements. When an institution is subject
to a systemically important institution buffer (G-SII or O-SII)
and a systemic risk buffer, both buffers are cumulative.
To date, countercyclical buffers have been activated in six
countries by the competent national authorities.
Given Crédit Agricole CIB’s exposures in these countries, Crédit
Agricole CIB’s countercyclical buffer was 0.04% at 31 December
2021.
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f
Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (EU
CCYB1)
€ million
31.12.2021
General credit
exposures
Relevant credit
exposures – Market
risk
Securitisation exposures
Exposure value for
non-trading book
Total exposure value
Own fund requirements
Risk-weighted exposure amounts
Own fund requirements weights (%)
Countercyclical buffer rate (%)
Breakdown by
country:
Exposure value under the
standardised approach
Exposure value under the IRB
approach
Sum of long and short positions of
trading book exposures for SA
Value of trading book exposures
for internal models
Relevant credit risk exposures -
Credit risk
Relevant credit exposures –
Market risk
Relevant credit exposures –
Securitisation positions in the
non-trading book
Total
Germany
10
10,833
-
-
2,751
13,594
271
-
29
300
3,748
-
-
Belgium
3
2,827
-
-
-
2,831
60
-
-
60
747
0.83 %
0.00 %
Bulgaria
-
10
-
-
-
10
-
-
-
-
3
0.00 %
0.50 %
Denmark
-
1,030
-
-
74
1,104
15
-
1
16
201
0.22 %
0.00 %
France
2,542
41,508
186
2,350
19,564
66,150
1,179
203
318
1,700
21,249
23.49 %
0.00 %
Hong Kong
33
5,757
-
-
-
5,790
100
-
-
100
1,246
1.38 %
1.00 %
Ireland
7
3,581
-
-
65
3,653
91
-
1
92
1,153
1.28 %
0.00 %
Lithuania
-
-
-
-
-
-
-
-
-
-
-
0.00 %
0.00 %
Luxembourg
114
12,742
-
-
3,162
16,018
270
-
0
270
3,378
3.73 %
0.50 %
Norway
-
1,694
-
-
101
1,794
47
-
1
48
600
0.66 %
1.00 %
Czech
Republic
-
75
-
-
-
75
2
-
-
2
24
0.03 %
0.50 %
United-
kingdom
94
15,739
-
-
2,693
18,527
436
-
45
481
6,015
6.65 %
0.00 %
Slovakia
-
3
-
-
-
3
-
-
-
-
1
0.00 %
1.00 %
Sweden
30
1,481
-
-
32
1,543
52
-
-
52
654
0.72 %
0.00 %
Other
countries *
3,395
124,889
-
-
30,190
158,473
3,717
-
398
4,115
51,437
56.86 %
0.00 %
Total
6,230
222,168
186
2,350
58,632
289,566
6,240
203
794
7,236
90,456
100.00 %
0.04 %
*For which no countercyclical buffer has been defined by the competent authority
f
Amount of institution-specific countercyclical capital buffer (EU CCYB2)
€ million
31.12.2021
31.12.2020
1
Total risk exposure amount
133,515
124,143
2
Institution specific countercyclical capital buffer rate
0.04%
0.04%
3
Institution specific countercyclical capital buffer requirement
52
47
The transposition of Basel regulations into European law (via CRD 4 and their transposition into French law) introduced a distribution
restriction mechanism that applies to dividends, AT1 instruments and variable remuneration. The principle behind the Maximum Distributable
Amount (MDA), i.e. the maximum amount that a bank is authorised to allocate to distributions, is intended to restrict distributions if they
would result in a breach of the combined buffer requirement.
The distance to the MDA triggering threshold is the lowest of the respective distances to the SREP requirements in CET1, Tier 1 equity
capital and total capital requirements.
CET1 SREP requirement
Tier 1 SREP requirement
Overall capital SREP
requirement
Pillar 1 minimum requirement
4.50%
6.00%
8.00%
Pillar 2 requirement (P2R)
0.84%
1.13%
1.50%
Conservation buffer
2.50%
2.50%
2.50%
Systemic risk buffer
0.00%
0.00%
0.00%
Countercyclical buffer
0.04%
0.04%
0.04%
SREP requirement (a)
7.88%
9.66%
12.04%
31/12/2021 Phased-in solvency ratios (b)
11.68%
17.98%
20.96%
Distance to SREP requirement (b-a)
379bp
832bp
893bp
Distance to MDA trigger threshold
379 bp (€5bn)
-
-
At 31 December 2021, the Crédit Agricole CIB Group had a buffer of 379 basis points above the MDA trigger point, i.e. approximately
€5.1 billion in CET1 capital.
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Position as of 31 December 2021
€ million
31.12.2021
31.12.2020
Phased-in
Requirements
Phased-in
Requirements
CET1 RATIO
11.68%
7.88%
11.71%
7.88%
TIER 1 RATIO
17.98%
9.66%
16.14%
9.66%
TOTAL CAPITAL RATIO
20.96%
12.04%
19.18%
12.04%
The applicable minimum requirements are fully observed; Crédit Agricole CIB’s phased-in CET1 ratio was 11.68% at 31 December 2021.
Change in CET1 over 2021
The CET1 ratio fell by 0.03 percentage points in 2021, mainly due to the increase in risk-weighted assets (-0.82 percentage point), offset
by the increase in capital resulting from the share of income for the year retained in reserves (+0.85 percentage point).
Impact of the application of IFRS 9 transitional provisions
The transitional provisions of IFRS 9 were applied for the first time in accordance with the Decree of 30 June 2021.
f
Quantitative model (EBA/GL/2020/12)
Comparison of capital and leverage/capital ratios of institutions with and without the application of transitional provisions relating to IFRS
9 or analogous ECLs (IFRS 9-FL).
€ million
31.12.2021
31.12.2020
Available capital (amounts)
1
Common Equity Tier 1 (CET1) capital
15,590
14,534
2
Common Equity Tier 1 (CET1) capital as if IFRS 9 or analogous ECLs transitional arrangements had not
been applied
15,375
14,534
3
Tier 1 capital
24,008
20,040
4
Tier 1 capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
23,793
20,040
5
Total capital
27,991
23,814
6
Total capital as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
27,776
23,814
Risk-weighted assets (amounts)
7
Total risk-weighted assets
133,515
124,143
8
Total risk-weighted assets as if IFRS 9 or analogous ECLs transitional arrangements had not been
applied
133,508
124,143
Capital ratios
9
Common Equity Tier 1 (as a percentage of risk exposure amount)
11.68%
11.71%
10
Common Equity Tier 1 (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs
transitional arrangements had not been applied
11.52%
11.71%
11
Tier 1 (as a percentage of risk exposure amount)
17.98%
16.14%
12
Tier 1 (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs transitional
arrangements had not been applied
17.82%
16.14%
13
Total capital (as a percentage of risk exposure amount)
20.96%
19.18%
14
Total capital (as a percentage of risk exposure amount) as if IFRS 9 or analogous ECLs transitional
arrangements had not been applied
20.80%
19.18%
Leverage ratio
15
Leverage ratio total exposure measure
593,757
566,283
16
Leverage ratio
4.04%
3.54%
17
Leverage ratio as if IFRS 9 or analogous ECLs transitional arrangements had not been applied
4.01%
3.54%
Crédit Agricole CIB does not apply the temporary treatment described in Article 468 of CRR No. 2019/876 and was not impacted by
any change in this provision during the period. Crédit Agricole CIB’s capital and leverage/capital ratios already reflect the total impact of
unrealised gains and losses measured at fair value through other comprehensive income.
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3.1.6.2 LEVERAGE RATIO
Regulatory framework
The leverage ratio is calculated to help preserve financial stability
by providing a safety net in addition to the risk-based capital
requirements and by limiting the accumulation of excessive
leverage during economic upturns. It was defined by the Basel
Committee in connection with the Basel III agreements and
transposed into European law through Article 429 of the CRR,
amended by Delegated Regulation 62/2015 of 10 October 2014,
and published in the Official Journal of the European Union on
18 January 2015.
The leverage ratio is defined as the Tier 1 capital divided by
the leverage ratio exposure, i.e. the on-balance sheet and off-
balance sheet assets after certain restatements for derivatives,
transactions between Group affiliates, securities financing
transactions, items deducted from the numerator and off-balance
sheet items
Since the publication of the European CRR2 regulation in the
Official Journal of the European Union on 7 June 2019, the
leverage ratio has been subject to a minimum Pillar 1 requirement,
applicable as from 28 June 2021.
Under CRR2, certain Central Bank exposures may be excluded
from total leverage ratio exposure when justified by exceptional
macroeconomic circumstances. Where this exemption is applied,
institutions must meet an adjusted leverage ratio requirement of
more than 3%. On 18 June 2021, the European Central Bank
announced that credit institutions under its supervision may apply
this exclusion given the existence of exceptional circumstances
since 31 December 2019; this measure is applicable until 31
March 2022. Crédit Agricole CIB applies this provision and must
therefore comply with a leverage ratio requirement of 3.06%
during this period.
Since 1 January 2015, it has been mandatory to disclose the
leverage ratio at least once a year: institutions can choose to
disclose a fully-loaded ratio or a phased-in ratio. If an institution
decides to change its choice of disclosure option, when it
discloses the new ratio for the first time, it must reconcile the
data for all of the ratios previously disclosed with the data for the
new ratio chosen.
Crédit Agricole CIB has chosen to publish the leverage ratio in
a phased-in format.
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Position as of 31 December 2021
f
Publication of qualitative information on the leverage ratio (EU LRA)
Crédit Agricole CIB’s leverage ratio stands at 4.04% on a
phased-in Tier 1 basis after neutralising Central Bank exposures.
Applying this measure neutralised Central Bank exposures in the
amount of €41.3 billion at 31 December 2021.
The leverage ratio rose +0.50 percentage points in 2021, mainly
due to the neutralisation of Central Bank exposures and the
increase in T1 capital.
The leverage ratio is not sensitive to risk factors and, as such,
it is viewed as a measurement that supplements the system of
solvency management and liquidity management already limiting
the size of the balance sheet. For the purposes of managing
excessive leverage, constraints are set on leverage in certain
activities considered volatility yet limited consumers of risk-
weighted assets.
f
Leverage ratio – common disclosure (EU LR2)
€ million
31.12.2021
30.06.2021
On-balance sheet exposures (excluding derivatives and SFTs)
1
On-balance sheet items (excluding derivatives, SFTs, but including collateral)
368,398
341,991
2
Gross-up for derivatives collateral provided, where deducted from the balance sheet assets
pursuant to the applicable accounting framework
5,120
8,550
3
(Deductions of receivables assets for cash variation margin provided in derivatives transactions)
(17,852)
(18,579)
4
(Adjustment for securities received under securities financing transactions that are recognised as
an asset)
-
-
5
(General credit risk adjustments to on-balance sheet items)
-
-
6
(Asset amounts deducted in determining Tier 1 capital)
(2,093)
(2,171)
7
Total on-balance sheet exposures (excluding derivatives and SFTs)
353,572
329,791
Derivative exposures
8
Replacement cost associated with SA-CCR derivatives transactions (ie net of eligible cash
variation margin)
20,460
20,095
EU-8a
Derogation for derivatives: replacement costs contribution under the simplified standardised
approach
-
-
9
Add-on amounts for potential future exposure associated with SA-CCR derivatives transactions
48,847
44,023
EU-9a
Derogation for derivatives: Potential future exposure contribution under the simplified
standardised approach
-
-
EU-9b
Exposure determined under Original Exposure Method
-
-
10
(Exempted CCP leg of client-cleared trade exposures) (SA-CCR)
-
-
EU-10a
(Exempted CCP leg of client-cleared trade exposures) (simplified standardised approach)
-
-
EU-10b
(Exempted CCP leg of client-cleared trade exposures) (Original Exposure Method)
-
-
11
Adjusted effective notional amount of written credit derivatives
15,249
13,731
12
(Adjusted effective notional offsets and add-on deductions for written credit derivatives)
(4,711)
(3,933)
13
Total derivatives exposures
79,846
73,917
Securities financing transaction (SFT) exposures
14
Gross SFT assets (with no recognition of netting), after adjustment for sales accounting
transactions
315,678
364,010
15
(Netted amounts of cash payables and cash receivables of gross SFT assets)
(198,193)
(227,956)
16
Counterparty credit risk exposure for SFT assets
7,369
12,399
EU-16a
Derogation for SFTs: Counterparty credit risk exposure in accordance with Articles 429e(5) and
222 CRR
-
-
17
Agent transaction exposures
-
-
EU-17a
(Exempted CCP leg of client-cleared SFT exposure)
-
-
18
Total securities financing transaction exposures
124,854
148,453
Other off-balance sheet exposures
19
Off-balance sheet exposures at gross notional amount
237,530
251,639
20
(Adjustments for conversion to credit equivalent amounts)
(102,888)
(109,710)
21
(General provisions deducted in determining Tier 1 capital and specific provisions associated
with off-balance sheet exposures)
-
-
22
Off-balance sheet exposures
134,642
141,929
Excluded exposures
EU-22a
(Exposures exempted in accordance with point (j) of Article 429a(1) CRR (on and off balance
sheet))
(44,432)
(30,621)
EU-22b
(Excluded exposures of public development banks (or units) - Public sector investments)
-
-
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€ million
31.12.2021
30.06.2021
EU-22c
(Excluded exposures of public development banks (or units) - Promotional loans)
-
-
EU-22d
(Excluded passing-through promotional loan exposures by non-public development banks (or
units))
-
-
EU-22e
(Excluded guaranteed parts of exposures arising from export credits)
-
-
EU-22f
(Excluded excess collateral deposited at triparty agents)
(13,343)
(12,676)
EU-22g
(Excluded CSD related services of CSD/institutions in accordance with point (o) of Article 429a(1)
CRR)
-
-
EU-22h
(Excluded CSD related services of designated institutions in accordance with point (p) of Article
429a(1) CRR)
-
-
EU-22i
(Reduction of the exposure value of pre-financing or intermediate loans)
-
-
EU-22j
(Total exempted exposures)
-
-
EU-22k
(Exposures exempted in accordance with Article 429 (14) of Regulation (EU) No
575/2013 (on and off balance sheet))*
(57,774)
(43,297)
Capital and total exposure measure
23
Tier 1 capital
24,008
23,053
24
Total exposure measure
593,757
620,473
Leverage ratio
25
Leverage ratio (%)
4.04%
3.72%
EU-25
Leverage ratio (excluding the impact of the exemption of public sector investments and
promotional loans) (%)
4.04%
3.72%
25a
Leverage ratio (excluding the impact of any applicable temporary exemption of central bank
reserves) (%)
3.78%
3.54%
26
Regulatory minimum leverage ratio requirement (%)
3.06%
3.06%
EU-26a
Additional own funds requirements to address the risk of excessive leverage (%)
0.00%
0.00%
EU-26b
of which: to be made up of CET1 capital
0.00%
0.00%
27
Leverage ratio buffer requirement (%)
0.00%
0.00%
EU-27a
Overall leverage ratio requirement (%)
3.06%
3.06%
Choice on transitional arrangements and relevant exposures
EU-27b
Choice on transitional arrangements for the definition of the capital measure
Transitional
Transitional
Disclosure of mean values
28
Mean of daily values of gross SFT assets, after adjustment for sale accounting transactions and
netted of amounts of associated cash payables and cash receivable
154,304
161,243
29
Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and
netted of amounts of associated cash payables and cash receivables
117,485
136,054
30
Total exposure measure (including the impact of any applicable temporary exemption of central
bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment
for sale accounting transactions and netted of amounts of associated cash payables and cash
receivables)
630,576
645,662
30a
Total exposure measure (excluding the impact of any applicable temporary exemption of central
bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment
for sale accounting transactions and netted of amounts of associated cash payables and cash
receivables)
671,959
676,012
31
Leverage ratio (including the impact of any applicable temporary exemption of central bank
reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for
sale accounting transactions and netted of amounts of associated cash payables and cash
receivables)
3.81%
3.57%
31a
Leverage ratio (excluding the impact of any applicable temporary exemption of central bank
reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for
sale accounting transactions and netted of amounts of associated cash payables and cash
receivables)
3.57%
3.41%
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f
Summary reconciliation of accounting assets and leverage ratio exposures (EU LR1)
€ million
31.12.2021
1
Total assets as per published financial statements
599,721
2
Adjustment for entities which are consolidated for accounting purposes but are outside the scope of prudential
consolidation
(8,114)
3
(Adjustment for securitised exposures that meet the operational requirements for the recognition of risk
transference)
-
4
(Adjustment for temporary exemption of exposures to central banks (if applicable))
(41,383)
5
(Adjustment for fiduciary assets recognised on the balance sheet pursuant to the applicable accounting framework
but excluded from the total exposure measure in accordance with point (i) of Article 429a(1) CRR)
-
6
Adjustment for regular-way purchases and sales of financial assets subject to trade date accounting
-
7
Adjustment for eligible cash pooling transactions
-
8
Adjustment for derivative financial instruments
(150,287)
9
Adjustment for securities financing transactions (SFTs)
(190,824)
10
Adjustment for off-balance sheet items (ie conversion to credit equivalent amounts of off-balance sheet exposures)
134,844
11
(Adjustment for prudent valuation adjustments and specific and general provisions which have reduced Tier 1
capital)
-
EU-11a
(Adjustment for exposures excluded from the total exposure measure in accordance with point (c) of Article 429a(1)
CRR)
(44,432)
EU-11b
(Adjustment for exposures excluded from the total exposure measure in accordance with point (j) of Article 429a(1)
CRR)
-
12
Other adjustments
294,231
13
Total exposure measure
593,757
f
Split-up of on balance sheet exposures (excluding derivatives, SFTs and exempted exposures) (EU LR3)
€ million
31.12.2021
EU-1
Total on-balance sheet exposures (excluding derivatives, SFTs, and exempted exposures), of which:
279,682
EU-2
Trading book exposures
36,322
EU-3
Banking book exposures, of which:
243,359
EU-4
Covered bonds
-
EU-5
Exposures treated as sovereigns
53,088
EU-6
Exposures to regional governments, MDB, international organisations and PSE, not treated as sovereigns
3,671
EU-7
Institutions
26,110
EU-8
Secured by mortgages of immovable properties
432
EU-9
Retail exposures
15,338
EU-10
Corporates
128,141
EU-11
Exposures in default
3,613
EU-12
Other exposures (e.g. equity, securitisations, and other non-credit obligation assets)
12,967
3.1.6.3
INTERNAL VIEW OF CAPITAL ADEQUACY
In the interest of assessing and maintaining capital adequacy
at all times in order to cover the risks to which it is (or may)
be exposed, Crédit Agricole CIB supplements the regulatory
view of its capital adequacy system with an internal view of
capital adequacy. Accordingly, the measurement of regulatory
capital requirements (Pillar 1) is expanded with a measurement
of economic capital requirement (Pillar 2), which is based on the
risk identification process and an assessment using an internal
approach. The economic capital requirement must be covered by
internal capital, i.e. the internal view of available capital defined
by Crédit Agricole Group.
The assessment of economic capital requirement is one of the
components of the ICAAP (Internal Capital Adequacy Assessment
Process), which also covers the stress test programme in order to
introduce a forward-looking view of the impact of more adverse
scenarios on Crédit Agricole CIB’s risk level and solvency.
The oversight and management of capital adequacy from an
internal perspective are developed in accordance with the
interpretation of the main regulatory texts:
y
the Basel agreements;
y
CRD 5 via its transposition into French regulations by the
Order of 21 December 2020;
y
the European Banking Authority guidelines;
y
the regulatory requirements for the ICAAP and ILAAP and the
harmonised collection of associated information.
ICAAP information (EU OVC)
The following items meet the disclosure requirements of Article
438 (points a and c) of CRR2.
Crédit Agricole Group has implemented a system for measuring
economic capital requirement at the level of the Crédit Agricole
Group, Crédit Agricole S.A. and the Group’s main French and
foreign entities.
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The process for the identification of major risks aims, initially, to
record, as comprehensively as is possible, all the risks that may
impact the balance sheet, income statement, regulatory ratios or
the reputation of a particular entity or of the Group and to classify
them into categories and sub-categories, using the same terms as
those used for the whole of Crédit Agricole Group. Secondly, the
objective is to assess the importance of these risks systematically
and comprehensively in order to identify the major risks.
The risk identification process makes use of multiple sources:
an internal analysis based on information collected from the Risk
function and other control functions, supplemented by an analysis
based on external data. It is formalised for each entity and for
Crédit Agricole Group, coordinated by the Risk function and
approved by the Board of Directors.
For each of the major risks identified, the economic capital
requirement is quantified as follows:
y
the risk measures already addressed by Pillar 1 are reviewed
and, where applicable, supplemented by economic capital
adjustments based on internal approaches;
y
the economic capital requirements in relation to risks that are
not addressed by Pillar 1 are specifically calculated, based
on internal approaches.
The consistency of all methodologies used to measure economic
capital requirement is ensured by specific governance within
Crédit Agricole Group.
The measurement of economic capital requirement is
supplemented by a projection for the current year, in line with
capital planning
forecasts at that date, in order to incorporate
the impact of changes in activity on the risk profile.
The list of major risks is updated and approved annually. The
main risk groups are:
y
credit risks;
y
financial risks, including in particular market risks and interest
rate and foreign exchange risks in the banking book;
y
operational risks; and
y
other risks, including activity risk and climate risk.
At 31 December 2021, the economic capital requirements relating
to risks subject to quantification at Crédit Agricole CIB level are
covered by internal capital.
Crédit Agricole S.A. entities subject to the measurement of
economic capital requirement within their scope are responsible
for its deployment in accordance with the standards and
methodologies defined by the Group. In particular, they
must ensure that the system for measuring economic capital
requirement is subject to appropriate organisation and
governance. The economic capital requirement determined by
the entities is reported in detail to Crédit Agricole S.A.
In addition to the quantitative aspect, the Group’s approach also
has a qualitative component that supplements the measurement
of economic capital requirement with indicators on the exposure
to risk and the permanent controls carried out by business lines.
The qualitative component has three objectives:
y
to evaluate the risk management and control system of the
entities in the scope of deployment in various areas;
y
if necessary, to identify and formalise areas in which the risk
management and permanent control system may be improved;
y
to identify any items that have not been correctly analysed
by the quantitative ICAAP measurements.
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3.1.7 Note on regulatory capital
f
Differences in the treatment of equity investments between the accounting and prudential scopes
Type of investment
Accounting treatment
Fully loaded Basel III regulatory capital treatment
Subsidiaries with a financial
activity
Fully consolidated
Fully consolidated, generating capital requirements for the subsidiary’s operations.
Jointly held subsidiaries
with a financial activity
Equity method
Proportionate consolidation.
Subsidiaries with an
insurance activity
Fully consolidated
CET1 instruments held in more than 10%-owned entities are deducted from CET1
capital, above the exemption limit of 17.65% of CET1 capital. This exemption, which
is applied after determining the 10% threshold, is combined with the non-deducted
share of deferred tax assets that rely on future profitability arising from temporary
differences.
AT1 and T2 instruments are deducted from AT1 capital and T2 capital, respectively.
Investments > 10% with a
financial activity by type
Equity method Investments
in credit institutions
The equity-accounted amount of investments in more than 10%-owned entities is
deducted from CET1 capital, above the exemption limit of 17.65% of CET1 capital.
This exemption, which is applied after determining the 10% threshold, is combined
with the non-deducted share of deferred tax assets that rely on future profitability
arising from temporary differences.
AT1 and T2 instruments are deducted from AT1 capital and T2 capital, respectively.
Investments < 10% or
less with a financial or
insurance activity
Available-for-sale equity
investments and securities
CET1, AT1 and T2 instruments held in less than 10%-owned entities are deducted
from CET1 capital, above the exemption limit of 10% of CET1 capital.
ABCP (asset-backed
commercial paper)
securitisation vehicles
Full consolidation
The equity-accounted amount and commitments on these entities are risk-weighted
(liquidity facilities and letters of credit).
f
Outline of the differences in the scopes of consolidation (LI3: entity by entity)
(1)
Name of the entity
Method of
accounting
consolidation
Method of regulatory consolidation
Description of the entity
Full consol-
idation
Proportional
consolidation
Equity
method
UBAF
Equity-
method
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
CAIRS Assurance S.A.
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Insurance
Atlantic Asset Securitization
LLC
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
LMA SA
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Héphaïstos Multidevises FCT
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Eucalyptus FCT
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Pacific USD FCT
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Pacific EUR FCC
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Pacific IT FCT
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
Triple P FCC
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
ESNI (Crédit Agricole CIB
sub-fund)
Overall
X
FINANCIAL & INSURANCE ACTIVITIES - Financial and
insurance auxiliary activities
La Fayette Asset
Securitization LLC
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
La Route Avance
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
FCT CFN DIH
Overall
X
FINANCIAL AND INSURANCE ACTIVITIES - Financial
services activities, excluding insurance and pension funds
(1) The scope of consolidation is fully described in Note 12 to the consolidated financial statements.
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3.2
COMPOSITION AND CHANGES IN RISK-WEIGHTED ASSETS
3.2.1 Overview of risk-weighted assets
The overall solvency ratio, as presented in the prudential ratio table, is equal to the ratio of the total capital to the sum of the credit, market
and operational risk-weighted exposures.
The capital requirements set out below by type of risk, method and exposure class (for credit risk) are equal to 8% (regulatory minimum)
of the weighted exposures (average risk weight) presented in the prudential ratio table.
3.2.1.1
OVERVIEW OF RISK WEIGHTED EXPOSURE AMOUNTS (OV1)
Credit, market and operational risk-weighted assets amounted to €133.5 billion at 31 December 2021, compared with €124.1 billion at
31 December 2020.
€ million
Risk weighted exposure amounts (RWEAs)
Total own funds
requirements
31.12.2021
30.09.2021
31.12.2020
31.12.2021
1
Credit risk (excluding CCR)
74,134
75,580
68,026
5,931
2
Of which the standardised approach
7,161
10,376
11,085
573
3
Of which the Foundation IRB (F-IRB) approach
1,761
-
-
141
4
Of which slotting approach
-
-
-
-
EU 4a
Of which equities under the simple risk weighted
approach
1,155
1,086
1,151
92
5
Of which the Advanced IRB (A-IRB) approach
63,467
63,513
55,337
5,077
6
Counterparty credit risk - CCR
18,242
18,686
18,723
1,459
7
Of which the standardised approach
1
954
1,232
-
76
8
Of which internal model method (IMM)
10,175
10,297
10,379
814
EU 8a
Of which exposures to a CCP
341
447
294
27
EU 8b
Of which credit valuation adjustment - CVA
3,951
3,938
3,975
316
9
Of which other CCR
2,822
2,773
4,075
226
15
Settlement risk
15
26
1
1
16
Securitisation exposures in the non-trading book
(after the cap)
9,862
9,355
8,473
789
17
Of which SEC-IRBA approach
3,180
3,178
2,370
254
18
Of which SEC-ERBA (including IAA)
5,508
5,084
5,177
441
19
Of which SEC-SA approach
1,174
1,093
926
94
EU 19a
Of which 1250% / deduction
-
-
-
-
20
Position, foreign exchange and commodities risks
(Market risk)
9,104
8,232
6,614
728
21
Of which the standardised approach
1,694
1,463
1,280
136
22
Of which IMA
7,409
6,769
5,333
593
EU 22a
Large exposures
-
-
-
-
23
Operational risk
22,159
22,426
22,307
1,773
EU 23a
Of which basic indicator approach
-
-
-
-
EU 23b
Of which standardised approach
530
480
496
42
EU 23c
Of which advanced measurement approach
21,629
21,946
21,812
1,730
24
Amounts below the thresholds for deduction (subject to
250% risk weight)
1,434
1,357
1,352
115
29
TOTAL
133,515
134,305
124,143
10,681
1
Following the implementation of the of regulation (UE) n°2019/876 (CRR2) since June 30, 2021, exposure to derivatives previously modelled using the CEM method are now
assessed using the SA-CCR standard approach.
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3.2.1.2
CHANGES IN RISK-WEIGHTED ASSETS
The table below shows the changes in Crédit Agricole CIB Group’s risk-weighted assets in 2021.
€ million
31.12.2020
Foreign
exchange
Organic change
Rating impacts
Impacts of models and
regulation changes
Total variation
2021
31.12.2021
Credit and
counterparty risk
95,222
3,415
(1,601)
2,199
3,002
7,015
102,238
Of which CVA
3,975
-
(23)
-
-
(23)
3,951
Market risk
6,614
-
2,191
-
313
(2,504)
9,118
Operational risk
22,307
-
(148)
-
-
(148)
22,159
TOTAL
124,143
3,415
442
2,199
3,314
9,371
133,515
Risk-weighted assets stood at €133.5 billion, up +€9.4 billion in 2021.
This change can mainly be attributed to:
y
The appreciation of the USD against the EUR in the amount of +€3.4 billion;
y
the +€6 billion change at constant rates attributable principally to:
-
an organic decrease in credit and counterparty risk excluding CVA (-€1.6 billion);
-
regulatory and model effects in the amount of +€3.3 billion;
-
portfolio effects on credit risk (+€2.2 billion);
-
an increase in market risks (+€2.2 billion);
-
a decrease in operational risk (-€0.1 billion).
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3.2.2 Credit and counterparty risks
Definitions:
y
probability of default (PD): the probability that a counterparty
will default within a period of one year;
y
loss given default (LGD): the ratio between the loss incurred
upon counterparty default and the amount of the exposure
at the time of default;
y
gross exposures: the amount of exposure (on and off-balance
sheet) before the use of credit risk mitigation techniques and
before the use of the credit conversion factor (CCF);
y
exposures given default (EGD): the amount of exposure (on
and off-balance sheet) after the use of credit risk mitigation
techniques and after the use of the credit conversion factor
(CCF);
y
credit conversion factor (CCF): ratio reflecting, at the time of
default, the percentage of the outstanding not drawn down
one year before the default;
y
risk-weighted assets (RWA): exposure at default (EAD) after
application of a weighting coefficient;
y
valuation adjustments: impairment losses on a specific asset
due to credit risk, recognised either through a partial write-
down or a deduction from the carrying amount of the asset;
y
external credit ratings: credit ratings established by an external
credit rating agency recognised by the ECB.
In Section I, a general view of the change in credit and
counterparty risk is presented followed by a more detailed point
on the credit risk in Section II, by type of prudential method: in
standard type of method and in IRB method. The counterparty
risk is treated in Section III followed by Section IV devoted to credit
and counterparty risk mitigation mechanisms.
3.2.2.1
GENERAL PRESENTATION OF CREDIT AND COUNTERPARTY RISK
Exposure by type of risk
The table below shows the Crédit Agricole CIB Group’s exposure to overall risk (credit, counterparty, dilution and settlement/delivery) by
exposure class, under the standardised approach and the IRB approach at 31 December 2021 and 31 December 2020.
The 16 exposure classes under the standardised approach are combined to ensure a consistent presentation with IRB exposures.
f
Gross exposure and exposure at default (EAD) to overall risk (credit, counterparty, dilution and settlement/
delivery) at 31 December 2021
€ million
31.12.2021
Standardised
IRB
Total
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Capital
requirement
Central governments or
central banks
1,254
1,274
1,224
1,009
108,608
120,404
118,045
1,268
109,862
121,678
119,268
2,277
182
Institutions
11,062
30,152
29,897
818
86,907
101,125
91,447
7,164
97,969
131,277
121,344
7,982
639
Corporates
22,363
3,209
2,431
2,298
296,126
254,504
206,765
69,874
318,489
257,712
209,196
72,172
5,774
Retail customers
303
246
246
185
15,091
15,091
15,091
558
15,394
15,337
15,337
743
59
Loans to individuals
303
246
246
185
14,930
14,930
14,930
547
15,233
15,177
15,177
731
59
o/w secured by real
estate assets
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w revolving
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w other
303
246
246
185
14,930
14,930
14,930
547
15,233
15,177
15,177
731
59
Loans to small and
medium businesses
-
-
-
-
161
161
161
11
161
161
161
11
1
o/w secured by real
estate assets
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w other
-
-
-
-
161
161
161
11
161
161
161
11
1
Shares
255
-
255
256
641
-
541
1,728
896
-
796
1,984
159
Securitisations
6,153
4,859
4,859
1,174
49,149
49,126
49,126
8,687
55,302
53,985
53,985
9,862
789
Assets other than credit
obligation
3,296
-
3,296
3,100
17
-
17
17
3,313
-
3,313
3,117
249
TOTAL
44,686
39,739
42,207
8,840
556,540
540,250
481,032
89,296
601,225
579,989
523,239
98,136
7,970
1
Initial gross exposure.
2
Gross exposure after credit risk mitigation (CRM).
Chapter 5 – Risks and Pillar 3
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220
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€ million
31.12.2020
Standardised
IRB
Total
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Gross exposure
1
Gross exposure
after CRM
2
EAD
RWA
Capital
requirement
Central governments or
central banks
1,217
1,244
1,190
991
97,473
108,046
105,812
1,202
98,689
109,290
107,002
2,193
175
Institutions
11,886
27,018
26,581
717
94,278
100,625
97,934
7,054
106,164
127,642
124,515
7,770
622
Corporates
25,959
10,692
6,709
6,161
276,833
251,353
196,187
60,133
302,792
262,045
202,896
66,294
5,304
Retail customers
837
837
789
592
13,140
13,140
13,140
584
13,976
13,976
13,929
1,176
94
Loans to individuals
837
837
789
592
13,023
13,023
13,023
578
13,859
13,859
13,812
1,170
94
o/w secured by real
estate assets
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w revolving
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w other
837
837
789
592
13,023
13,023
13,023
578
13,859
13,859
13,812
1,170
94
Loans to small and
medium businesses
-
-
-
-
117
117
117
5
117
117
117
5
-
o/w secured by real
estate assets
-
-
-
-
-
-
-
-
-
-
-
-
-
o/w other
-
-
-
-
117
117
117
5
117
117
117
5
-
Shares
310
-
310
311
486
-
486
1,587
796
-
796
1,898
152
Securitisations
5,392
4,199
4,199
926
40,586
40,561
40,561
7,547
45,978
44,760
44,760
8,473
678
Assets other than credit
obligation
3,335
-
3,335
3,132
17
-
17
17
3,352
-
3,352
3,149
252
TOTAL
48,935
43,989
43,114
12,830
522,812
513,725
454,136
78,123
571,748
557,713
497,250
90,953
7,276
1
Initial gross exposure.
2
Gross exposure after credit risk mitigation (CRM).
Chapter 5 – Risks and Pillar 3
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2021
f
Credit quality of forborne exposures (CQ1)
€ million
31.12.2021
Gross carrying amount/nominal amount of
exposures with forbearance measures
Accumulated impairment,
accumulated negative changes
in fair value due to credit risk and
provisions
Collateral received and financial
guarantees received on forborne
exposures
Per-
forming
Forborne
Non-performing Forborne
On performing
Forborne
exposures
On non-
performing
Forborne
exposures
Of which collat-
eral and financial
guarantees received
on non-performing
exposures with for-
bearance measures
Of which
defaulted
of which
impaired
005
Cash balances at central
banks and other demand
deposits
-
-
-
-
-
-
-
-
010
Loans and advances
1,919
2,340
2,340
2,340
(142)
(789)
2,173
1,207
020
Central banks
-
-
-
-
-
-
-
-
030
General governments
15
3
3
3
(1)
(3)
-
-
040
Credit institutions
-
46
45
45
-
(26)
-
-
050
Other financial corporations
-
18
18
18
-
(16)
-
-
060
Non-financial corporations
1,894
2,271
2,271
2,271
(141)
(744)
2,163
1,205
070
Households
10
3
3
3
-
-
10
2
080
Debt securities
-
4
4
-
-
-
-
090
Loan commitments given
150
54
54
54
(3)
(20)
100
26
100
TOTAL
2,070
2,399
2,398
2,394
(144)
(810)
2,273
1,233
€ million
31.12.2020
Gross carrying amount/nominal amount of
exposures with forbearance measures
Accumulated impairment,
accumulated negative changes
in fair value due to credit risk and
provisions
Collateral received and financial
guarantees received on forborne
exposures
Per-
forming
Forborne
Non-performing Forborne
On performing
Forborne
exposures
On non-
performing
Forborne
exposures
Of which collat-
eral and financial
guarantees received
on non-performing
exposures with for-
bearance measures
Of which
defaulted
of which
impaired
005
Cash balances at central
banks and other demand
deposits
-
-
-
-
-
-
-
-
010
Loans and advances
1,723
1,892
1,887
1,887
(115)
(776)
1,641
534
020
Central banks
-
-
-
-
-
-
-
-
030
General governments
16
4
3
3
(1)
(3)
-
-
040
Credit institutions
-
45
45
45
-
(26)
-
-
050
Other financial corporations
-
17
17
17
-
(16)
-
-
060
Non-financial corporations
1,696
1,820
1,816
1,816
(114)
(732)
1,629
529
070
Households
11
6
6
6
-
-
11
5
080
Debt securities
-
-
-
-
-
-
-
-
090
Loan commitments given
56
48
48
48
(2)
(31)
14
14
100
TOTAL
1,779
1,940
1,935
1,935
(117)
(807)
1,655
548
Chapter 5 – Risks and Pillar 3
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2021
f
Credit quality of performing and non-performing exposures by past due days (CQ3)
€ million
31.12.2021
Gross carrying amount/nominal amount
Performing exposures
Non-performing exposures
Total
Not past
due or
past due
≤ 30 days
Past due
>30 days
≤ 90 days
Total
Unlikely to
pay that
are not
past-due
or past-
due
≤ 90 days
Past due
> 90 days
≤ 180 days
Past due >
180 days
≤ 1 year
Past due
> 1 year
≤ 2 years
Past due
> 2 year
≤ 5 years
Past due
> 5 years
≤ 7 years
Past due
> 7 years
Of
which
de-
faulted
Cash balances
at central banks
and other demand
deposits
69,102
69,102
-
16
-
-
-
-
16
-
-
16
Loans and
advances
204,979
204,395
583
4,271
1,786
189
4
736
352
419
785
4,271
Central banks
333
333
-
-
-
-
-
-
-
-
-
General
governments
8,409
8,409
-
47
-
-
-
-
24
-
23
47
Credit institutions
39,746
39,746
415
1
-
-
-
-
296
118
415
Other financial
corporations
10,581
10,246
335
348
22
-
-
-
-
18
308
348
Non-financial
corporations
133,232
132,983
249
3,394
1,746
188
3
727
300
99
330
3,394
Of which SMEs
767
767
-
7
6
-
-
-
-
-
1
7
Households
12,679
12,679
-
67
17
-
2
8
28
7
5
67
Debt Securities
33,772
33,759
13
31
4
-
-
-
-
-
27
31
Central banks
3,095
3,095
-
-
-
-
-
-
-
-
-
-
General
governments
19,668
19,668
-
-
-
-
-
-
-
-
-
-
Credit institutions
4,962
4,962
-
1
-
-
-
-
-
1
1
Other financial
corporations
2,182
2,170
13
-
-
-
-
-
-
-
-
-
Non-financial
corporations
3,864
3,864
-
30
4
-
-
-
-
-
26
30
Off-balance sheet
exposures
297,844
-
-
697
-
-
-
-
-
-
-
697
Central banks
5,947
-
-
-
-
-
-
-
-
-
-
-
General
governments
15,668
-
-
-
-
-
-
-
-
-
-
-
Credit institutions
42,926
-
-
-
-
-
-
-
-
-
-
-
Other financial
corporations
58,320
-
-
-
-
-
-
-
-
-
-
-
Non-financial
corporations
172,606
-
-
697
-
-
-
-
-
-
-
697
Households
2,376
-
-
-
-
-
-
-
-
-
TOTAL
605,696
307,256
596
5,015
1,790
189
4
736
368
419
812
5,015
Chapter 5 – Risks and Pillar 3
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2021
€ million
31.12.2020
Gross carrying amount/nominal amount
Performing exposures
Non-performing exposures
Total
Not past
due or
past due
≤ 30 days
Past due
>30 days
≤ 90 days
Unlikely to
pay that
are not
past-due
or past-
due
≤ 90 days
Past due
> 90 days
≤ 180 days
Past due >
180 days
≤ 1 year
Past due
> 1 year
≤ 2 years
Past due
> 2 year
≤ 5 years
Past due
> 5 years
≤ 7 years
Past due
> 7 years
Of
which
de-
faulted
Cash balances
at central banks
and other demand
deposits
57,745
57,745
-
15
-
-
-
15
-
-
-
15
Loans and
advances
164,690
164,426
265
4,603
2,380
463
483
186
393
481
217
4,603
Central banks
306
306
-
-
-
-
-
-
-
-
-
-
General
governments
7,733
7,733
-
58
23
-
-
-
35
‐
‐
58
Credit institutions
23,643
23,643
-
389
98
-
-
-
2
272
18
389
Other financial
corporations
5,692
5,692
-
355
156
-
20
-
2
17
161
355
Non-financial
corporations
115,851
115,587
264
3,739
2,101
463
455
164
333
191
32
3,739
Of which SMEs
498
498
-
57
37
-
1
-
18
‐
1
57
Households
11,465
11,465
-
63
3
-
8
23
20
2
7
63
Debt Securities
37,352
37,038
314
29
7
-
-
-
-
-
22
29
Central banks
2,477
2,477
-
-
-
-
-
-
-
-
-
-
General
governments
17,395
17,395
-
-
-
-
-
-
-
-
-
-
Credit institutions
8,220
8,220
-
1
1
-
-
-
-
-
‐
1
Other financial
corporations
6,208
5,894
314
-
-
-
-
-
-
-
-
-
Non-financial
corporations
3,052
3,052
-
28
6
-
-
-
-
-
22
28
Off-balance sheet
exposures
260,449
-
-
832
-
-
-
-
-
-
-
832
Central banks
8,809
-
-
-
-
-
-
-
-
-
-
-
General
governments
11,015
-
-
-
-
-
-
-
-
-
-
-
Credit institutions
40,117
-
-
2
-
-
-
-
-
-
-
2
Other financial
corporations
45,853
-
-
-
-
-
-
-
-
-
-
‐
Non-financial
corporations
152,109
-
-
826
-
-
-
-
-
-
-
826
Households
2,546
-
-
4
-
-
-
-
-
-
-
4
TOTAL
520,235
259,208
578
5,480
2,387
463
483
201
393
481
239
5,480
Chapter 5 – Risks and Pillar 3
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2021
f
Performing and non-performing exposures and related provisions (CR1)
€ million
31.12.2021
Gross carrying amount/nominal amount
Accumulated impairment, accumulated negative
changes in fair value due to credit risk and provisions
Accumulated partial write-off
Collateral
and financial
guarantees
received
Performing exposures
Non-performing
exposures
Performing exposures –
accumulated impairment
and provisions
Non-performing
exposures – accumulated
impairment, accumulated
negative changes in fair
value due to credit risk
and provisions
On performing exposures
On non-performing exposures
Of which
Bucket
1
Of
which
Bucket
2
Of
which
Bucket
2
Of
which
Bucket
3
Of
which
Bucket
1
Of
which
Bucket
2
Of
which
Bucket
2
Of
which
Bucket
3
Cash balances
at central banks
and other
demand deposits
69,102
69,102
-
16
-
16
-
-
-
(16)
-
(16)
-
20
-
Loans and
advances
204,979
185,267
19,712
4,271
-
4,271
(735)
(210)
(525)
(2,225)
- (2,225)
- 84,273
1,455
Central banks
333
333
-
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
8,409
7,559
851
47
-
47
(7)
(6)
(2)
(29)
-
(29)
-
3,362
16
Credit institutions
39,746
39,711
34
415
-
415
(11)
(11)
(364)
-
(364)
-
212
-
Other financial
corporations
10,581
10,166
415
348
-
348
(3)
(3)
(1)
(306)
-
(306)
-
6,992
-
Non-financial
corporations
133,232
114,852
18,380
3,394
-
3,394
(710)
(188)
(522)
(1,496)
-
(1,496)
- 65,533
1,430
Of which SMEs
767
732
35
7
-
7
(4)
(2)
(1)
(3)
-
(3)
-
331
-
Households
12,679
12,646
33
67
-
67
(3)
(2)
-
(31)
-
(31)
-
8,174
8
Debt Securities
33,772
33,635
49
31
-
27
(10)
(9)
(1)
(27)
-
(27)
-
-
-
Central banks
3,095
3,095
-
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
19,668
19,668
-
-
-
-
(7)
(7)
-
-
-
-
-
-
-
Credit institutions
4,962
4,945
-
1
-
1
(2)
(2)
(1)
-
(1)
-
-
-
Other financial
corporations
2,182
2,109
13
-
-
-
-
-
-
-
-
-
-
-
-
Non-financial
corporations
3,864
3,818
36
30
-
26
(1)
-
(1)
(26)
-
(26)
-
-
-
Off-balance
sheet exposures
297,844
287,379
10,465
697
-
697
(401)
(146)
(255)
(118)
-
(118)
-
20,344
115
Central banks
5,947
5,947
-
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
15,668
14,797
871
-
-
-
(5)
(2)
(3)
-
-
-
-
2,417
-
Credit institutions
42,926
42,906
20
-
-
-
(10)
(10)
-
-
-
-
-
116
-
Other financial
corporations
58,320
58,319
2
-
-
-
(5)
(5)
-
-
-
-
-
379
-
Non-financial
corporations
172,606
163,043
9,563
697
-
697
(381)
(130)
(252)
(118)
-
(118)
17,432
115
Households
2,376
2,368
8
-
-
-
(1)
(1)
-
-
-
-
-
-
-
TOTAL
605,696
575,382
30,226
5,015
-
5,011
(1,146)
(366)
(781)
(2,387)
- (2,387)
- 104,637
1,569
Chapter 5 – Risks and Pillar 3
BASEL III PILLAR 3 DISCLOSURES
225
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€ million
31.12.2020
Gross carrying amount/nominal amount
Accumulated impairment, accumulated negative
changes in fair value due to credit risk and provisions
Accumulated partial write-off
Collateral
and financial
guarantees
received
Performing exposures
Non-performing
exposures
Performing exposures –
accumulated impairment
and provisions
Non-performing
exposures – accumulated
impairment, accumulated
negative changes in fair
value due to credit risk
and provisions
On performing exposures
On non-performing exposures
Of which
Bucket
1
Of
which
Bucket
2
Of
which
Bucket
2
Of
which
Bucket
3
Of
which
Bucket
1
Of
which
Bucket
2
Of
which
Bucket
2
Of
which
Bucket
3
Cash balances
at central banks
and other
demand deposits
57,745
57,745
-
15
-
15
-
-
-
(15)
-
(15)
-
3,228
-
Loans and
advances
164,690
147,232
17,458
4,603
-
4,599
(762)
(189)
(573)
(2,312)
-
(2,312)
-
57,421
1,346
Central banks
306
306
-
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
7,733
7,035
698
58
-
58
(6)
(5)
(1)
(28)
-
(28)
-
-
-
Credit institutions
23,643
23,588
55
389
-
389
(10)
(10)
-
(342)
-
(342)
-
-
-
Other financial
corporations
5,692
5,603
89
355
-
355
(20)
(15)
(4)
(302)
-
(302)
-
2,714
-
Non-financial
corporations
115,851
99,301
16,550
3,739
-
3,734
(723)
(156)
(566)
(1,626)
-
(1,626)
-
54,707
1,346
Of which SMEs
498
464
34
57
-
57
(1)
(1)
-
(20)
-
(20)
-
269
-
Households
11,465
11,399
67
63
-
63
(4)
(2)
(1)
(14)
-
(14)
-
-
-
Debt Securities
37,352
36,976
314
29
-
25
(11)
(10)
(1)
(25)
-
(25)
-
-
-
Central banks
2,477
2,477
-
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
17,395
17,395
-
-
-
-
(6)
(6)
-
-
-
-
-
-
-
Credit institutions
8,220
8,218
-
1
-
1
(3)
(3)
-
(1)
-
(1)
-
-
-
Other financial
corporations
6,208
5,847
314
-
-
-
(1)
-
(1)
-
-
-
-
-
-
Non-financial
corporations
3,052
3,040
-
28
-
24
-
-
-
(24)
-
(24)
-
-
-
Off-balance
sheet exposures
260,449
250,908
9,541
832
-
832
(281)
(106)
(174)
(141)
-
(141)
14,597
170
Central banks
8,809
8,809
-
-
-
-
-
-
-
-
-
-
-
-
General
governments
11,015
10,271
744
-
-
-
(3)
(1)
(2)
-
-
-
1,450
-
Credit institutions
40,117
40,083
34
2
-
2
(2)
(2)
-
-
-
-
44
-
Other financial
corporations
45,853
45,838
15
-
-
-
(3)
(3)
-
-
-
-
340
-
Non-financial
corporations
152,109
143,365
8,744
826
-
826
(271)
(99)
(172)
(141)
-
(141)
12,762
170
Households
2,546
2,542
4
4
-
4
(1)
(1)
-
-
-
-
-
-
TOTAL
520,235
492,860
27,312
5,480
-
5,471
(1,054)
(306)
(748)
(2,494)
-
(2,494)
-
75,246
1,516
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f
Changes in the stock of non-performing loans and advances (CR2)
€ million
31.12.2021
Gross carrying account
1
Initial stock of non-performing loans and advances (31/12/2020)
4,599
2
Inflows to non-performing portfolios
714
3
Outflows from non-performing portfolios
(1,042)
4
Outflows due to write-offs
-
5
Outflow due to other situations
-
6
Final stock of non-performing loans and advances (31/12/2021)
4,271
f
Collateral obtained by taking possession and execution processes (CQ7)
€ million
31.12.2021
31.12.2020
Collateral obtained by taking possession
Collateral obtained by taking possession
Value at initial
recognition
Accumulated
negative changes
Value at initial
recognition
Accumulated negative
changes
010
Property, plant and equipment (PP&E)
1
-
3
-
020
Other than PP&E
-
-
-
-
030
Residential immovable property
-
-
-
-
040
Commercial Immovable property
-
-
-
-
050
Movable property (auto, shipping, etc.)
-
-
-
-
060
Equity and debt instruments
-
-
-
-
070
Other
-
-
-
-
080
TOTAL
1
-
3
-
Chapter 5 – Risks and Pillar 3
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f
Quality of non-performing exposures by geography (CQ4)
€ million
31.12.2021
Gross carrying/nominal amount
Accumulated
impairment
Provisions on
off-balance
sheet
commitments
and financial
guarantee
given
Accumulated negative
charges in fair value due
to credit risk on non-
performing exposures
of which non performing
of which :
subject to
impairment
of which :
defaulted
10
On balance sheet
exposures
243,052
4,302
4,302
242,961
(2,998)
-
-
-
20
Europe
143,072
1,698
1,698
142,985
(1,206)
-
-
-
France
69,448
807
807
69,370
(473)
-
-
-
United Kingdom
10,989
43
43
10,989
(87)
-
-
-
Italy
10,518
128
128
10,513
(110)
-
-
-
Luxembourg
9,910
31
31
9,910
(73)
-
-
-
Other (Europe)
42,208
689
689
42,203
(463)
-
-
-
30
Asia et Oceania
44,642
396
396
44,642
(276)
-
-
-
Singapore
7,152
162
162
7,152
(113)
-
-
-
Japan
6,719
130
130
6,719
(64)
-
-
-
Hong Kong
6,695
-
-
6,695
(6)
-
-
-
Other (Asia et Oceania)
24,075
103
103
24,075
(93)
-
-
-
40
North America
28,010
231
231
28,005
(280)
-
-
-
United States
23,581
180
180
23,576
(203)
-
-
-
Other (North America)
4,429
51
51
4,429
(77)
-
-
-
50
South and central
America
11,556
1,376
1,376
11,556
(766)
-
-
-
60
Africa and Middle East
15,590
601
601
15,590
(469)
-
-
-
70
Other countries
182
-
-
182
(0)
-
-
-
80
Off balance sheet
exposures
298,541
697
697
-
-
519
-
-
90
Europe
201,014
606
606
-
-
258
-
-
France
112,998
42
42
-
-
54
-
-
United Kingdom
21,012
-
-
-
-
37
-
-
Germany
12,005
21
21
-
-
36
-
-
Luxembourg
11,302
-
-
-
-
4
-
-
Switzerland
8,940
-
-
-
-
2
-
-
Other (Europe)
34,757
543
543
-
-
125
-
-
100
Asia et Oceania
23,884
6
6
-
-
13
-
-
Singapore
5,357
6
6
-
-
4
-
-
Japan
4,019
-
-
-
-
0
-
-
Other (Asia et Oceania)
14,507
-
-
-
-
9
-
-
110
North America
60,774
14
14
-
-
196
-
-
United States
55,944
4
4
-
-
184
-
-
Other (North America)
4,830
10
10
-
-
11
-
-
120
South and central
America
5,398
42
42
-
-
32
-
-
130
Africa and Middle East
7,430
29
29
-
-
20
-
-
140
Other countries
42
-
-
-
-
-
-
-
150
TOTAL
541,593
4,999
4,999
242,961
(2,998)
519
-
-
The CQ4 statement (quality of non-performing exposures by geographic location) replaces the RC1-C statement (credit quality of exposures
by geographic region) within the framework of the application of Regulation (EU) n ° 2019/876 (CRR2 ) since 30 June 2021.
The CQ4 report distinguishes the balance sheet from the off balance sheet, unlike CR1-C.
On the CQ4 report, “Cash balances at central banks and other demand deposits” were removed from the scope of the balance sheet
exposure line to follow the FINREP 2021 presentation which changed from 30 June 2021.
Chapter 5 – Risks and Pillar 3
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2021
€ million
31.12.2020
Gross carrying/nominal amount
Accumulated
impairment
Provisions on
off-balance
sheet
commitments
and financial
guarantee
given
Accumulated negative
charges in fair value due
to credit risk on non-
performing exposures
of which non performing
of which :
subject to
impairment
of which :
defaulted
10
On balance sheet
exposures
264,434
4,648
4,648
264,363
(3,126)
-
-
-
20
Europe
148,618
1,906
1,906
148,551
(1,335)
-
-
-
France
75,487
808
808
75,433
(453)
-
-
-
Luxembourg
10,739
43
43
10,738
(102)
-
-
-
United Kingdom
10,219
122
122
10,219
(159)
-
-
-
Italy
9,356
214
214
9,352
(119)
-
-
-
Other (Europe)
42,817
718
718
42,808
(501)
-
-
-
30
Asia and Oceania
59,356
538
538
59,356
(294)
-
-
-
Japan
26,186
231
231
26,186
(81)
-
-
-
Other countries not
detailed
33,17
308
308
33,17
(213)
-
-
-
40
North America
31,685
293
293
31,681
(258)
-
-
-
United States
20,532
170
170
20,527
(189)
-
-
-
Other (North America)
11,153
123
123
11,154
(69)
-
-
-
50
South and central
America
10,17
1,204
1,204
10,17
(685)
-
-
-
60
Africa and Middle East
14,486
706
706
14,486
(554)
-
-
-
70
Other countries
120
-
-
120
-
-
-
-
80
Off balance sheet
exposures
261,281
832
832
-
-
422
-
-
90
Europe
180,655
691
691
-
-
233
-
-
France
98,259
54
54
-
-
59
-
-
United Kingdom
22,065
-
-
-
-
19
-
-
Germany
10,365
21
21
-
-
29
-
-
Other (Europe)
49,966
616
616
-
-
125
-
-
100
Asia and Oceania
19,791
37
37
-
-
6
-
-
Singapore
3,832
18
18
-
-
1
-
-
South Korea
3,504
-
-
-
-
-
-
-
Japan
3,2
-
-
-
-
-
-
-
Other (Asia and Oceania)
9,255
20
20
-
-
4
-
-
110
North America
50,264
56
56
-
-
140
-
-
United States
45,631
46
46
-
-
123
-
-
Other (North America)
4,633
9
9
-
-
17
-
-
120
South and central
America
4,538
19
19
-
-
36
-
-
130
Africa and Middle east
5,994
29
29
-
-
7
-
-
140
Other countries
38
-
-
-
-
-
-
-
150
TOTAL
525,715
5,480
5,480
264,363
(3,126)
422
-
-
Chapter 5 – Risks and Pillar 3
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2021
f
Credit quality of loans and advances to non-financial corporations by industry (CQ5)
€ million
31.12.2021
Gross carrying amount
Accumulated
impairment
Accumulated negative
changes in fair value
due to credit risk
on non-performing
exposures
Of which: non-performing
of which: loans
and advances
subject to
impairment
of which:
defaulted
010
Agriculture, forestry and fishing
684
68
68
684
(68)
-
020
Mining and quarrying
10,372
87
87
10,372
(85)
-
030
Manufacturing
32,874
443
443
32,874
(371)
-
040
Electricity, gas, steam and air conditioning
supply
14,108
104
104
14,108
(97)
-
050
Water supply
707
-
-
707
(3)
-
060
Construction
2,839
43
43
2,839
(72)
-
070
Wholesale and retail trade
13,454
363
363
13,454
(305)
-
080
Transport and storage
21,017
1,556
1,556
21,017
(614)
-
090
Accommodation and food service activities
3,333
223
223
3,333
(223)
-
100
Information and communication
7,844
74
74
7,844
(31)
-
110
Financial and insurance activities
11,978
236
236
11,978
(158)
-
120
Real estate activities
7,973
43
43
7,973
(58)
-
130
Professional, scientific and technical
activities
1,676
-
-
1,676
(10)
-
140
Administrative and support service
activities
4,133
84
84
4,133
(57)
-
150
Public administration and defence,
compulsory social security
86
-
-
86
-
-
160
Education
59
-
-
59
(1)
-
170
Human health services and social work
activities
2,432
69
69
2,432
(37)
-
180
Arts, entertainment and recreation
268
-
-
268
(4)
-
190
Other services
789
2
2
789
(13)
-
200
TOTAL
136,625
3,394
3,394
136,625
(2,206)
-
€ million
31.12.2020
Gross carrying amount
Accumulated
impairment
Accumulated negative
changes in fair value
due to credit risk
on non-performing
exposures
Of which: non-performing
of which: loans
and advances
subject to
impairment
of which:
defaulted
010
Agriculture, forestry and fishing
436
76
76
436
(68)
-
020
Mining and quarrying
10,435
244
244
10,435
(146)
-
030
Manufacturing
27,300
448
448
27,300
(386)
-
040
Electricity, gas, steam and air conditioning
supply
10,813
112
112
10,813
(76)
-
050
Water supply
706
-
-
706
(1)
-
060
Construction
2,508
108
108
2,508
(111)
-
070
Wholesale and retail trade
11,665
502
502
11,665
(304)
-
080
Transport and storage
20,370
1,373
1,373
20,370
(627)
-
090
Accommodation and food service activities
3,233
149
149
3,233
(186)
-
100
Information and communication
7,593
83
83
7,593
(51)
-
110
Financial and insurance activities
9,742
299
299
9,742
(183)
-
120
Real estate activities
7,318
68
68
7,313
(62)
-
130
Professional, scientific and technical
activities
1,549
6
6
1,549
(8)
-
140
Administrative and support service
activities
3,217
192
192
3,217
(94)
-
150
Public administration and defence,
compulsory social security
133
-
-
133
-
-
160
Education
35
-
-
35
-
-
170
Human health services and social work
activities
1,565
75
75
1,565
(39)
-
180
Arts, entertainment and recreation
316
-
-
316
(4)
-
190
Other services
655
3
3
655
(3)
-
200
TOTAL
119,590
3,739
3,739
119,584
(2,348)
-
Chapter 5 – Risks and Pillar 3
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Statement CQ5 (credit quality of loans and advances granted to non-financial corporations by industry) has replaced statement RC1-B (quality
of credit exposures by sector or type of counterparty) for the purpose of applying Regulation (EU) No. 2019/876 (CRR2) since 30 June 2021.
Statement CQ5 presents balance sheet elements by business sector. It does not include debt securities or loans and receivables from
central governments and central banks, credit institutions and households.
f
Maturity of exposures (CR1-A)
€ million
31.12.2021
Demand
1
≤ 1 year
> 1 year
≤ 5 years
> 5 years
No stated maturity
Total
1
Loans and advances
1,279
232,707
69,768
18,243
-
321,997
2
Debt securities
-
20,296
18,588
17,895
-
56,779
3
Total
1,279
253,004
88,356
36,138
-
378,776
1
The configuration of the “On demand” column changed between first production and 31 December 2021. This column is now completed for the scope of loans and advances.
€ million
31.12.2020
On demand
≤ 1 year
> 1 year
≤ 5 years
> 5 years
No stated maturity
Total
1
Loans and advances
-
210,240
63,087
17,159
2
290,489
2
Debt securities
-
21,838
17,909
16,283
-
56,030
3
TOTAL
-
232,078
80,996
33,442
2
346,518
3.2.3 Credit risk
Since the end of 2007, the ACPR has authorised Crédit
Agricole CIB Group to use internal rating systems to calculate
regulatory capital requirements as regards credit risk for most
of its scope. In addition, the ACPR has since 1 January 2008
authorised Crédit Agricole CIB Group’s main entities to use
the Advanced Measurement Approach (AMA) to calculate their
regulatory capital requirements for operational risk. The Group’s
other entities use the standardised approach, in accordance
with regulations.
The main Crédit Agricole CIB Group subsidiaries or portfolios
still using the standardised method for measuring credit risk at
31 December 2021 were as follows:
y
Union des Banques Arabes et Françaises
(UBAF);
y
Crédit Agricole CIB Miami;
y
Crédit Agricole CIB Brazil;
y
Crédit Agricole CIB Canada;
y
CA Indosuez Wealth Italy S.P.A
y
the real estate professionals portfolio.
In accordance with the commitment made by the Group to
gradually move toward the advanced method defined with the
ACPR in May 2007 (roll-out plan), work is ongoing in the main
entities and portfolios still under the standard method. An update
of the roll-out plan is sent annually to the competent authority.
The use of internal models to calculate the solvency ratios
has enabled Crédit Agricole CIB Group to strengthen its risk
management. Specifically, the development of “internal ratings
based” approaches has led to the systematic and reliable
collection of default and loss histories for most Group entities.
The establishment of this data history makes it possible to quantify
credit risk today by assigning an average Probability of Default
(PD) to each rating level, and for the “advanced internal rating”
approaches to assign a loss given default (LGD).
In addition, the parameters of the “Internal Ratings-Based” models
are used in the definition, implementation and monitoring of the
entities’ risk and credit policies.
The internal risk assessment models thus promote the
development of sound risk management practices by the
Group’s entities and improve the efficiency of the capital allocation
process by enabling a more fine-tuned measurement of capital
consumption by each business line and entity.
EXPOSURE TO CREDIT RISK USING THE
STANDARD APPROACH
Credit assessment using the standardised approach
The Group now uses external credit rating agency assessments
to calculate its risk-weighted exposures under the standardised
approach. The remaining exposures are subject to fixed
weightings (like under Basel I).
Exposure categories treated by standard method are classified
according to the counterparty type and financial product type in
one of the 16 categories set out in Article 112 of Regulation (EU)
575/2013 of 26 June 2013. The weightings applied to these same
outstandings are calculated in accordance with Articles 114 to
134 of that regulation.
For the “Central governments and central banks” and “Institutions”
exposure categories, the Crédit Agricole S.A. Group has decided,
in the standardised approach, to use Moody’s assessments to
evaluate the risk.
As such, where the rating agency’s credit assessment of the
counterparty is known, it is used to calculate the applicable
weighting. With regard to the counterparties of the “Institutions”
or “Corporate” exposure categories where the credit assessment
is not known, the weighting applied takes account of the credit
assessment of the central authority in whose jurisdiction this
counterparty is established, pursuant to the provisions of Articles
121 and 122 of the aforementioned regulation.
With regard to exposures on banking portfolio debt instruments,
the rule used involves applying the issuer’s weighting rate. This
rate is calculated in accordance with the rules described in the
preceding paragraph.
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f
Standardised approach - Credit risk exposure and credit risk mitigation (CRM) effects (CR4)
€ million
31.12.2021
Exposures before CCF and CRM
Exposures post-CCF and CRM
RWA and RWA density
Exposure classes
On-balance
sheet amount
Off-balance
sheet amount
On-balance
sheet amount
Off-balance
sheet amount
RWA
RWA density
1
Central governments or central banks
1,189
18
1,189
8
1,009
84.32%
2
Regional government or local authorities
-
44
-
22
-
-
3
Public sector entities
2
1
2
4
0
5.41%
4
Multilateral development banks
-
-
-
-
-
-
5
International organisations
-
-
-
-
-
-
6
Institutions
3,840
550
22,925
303
641
2.76%
7
Corporates
20,493
1,291
1,563
490
1,938
94.44%
8
Retail
299
3
243
2
184
75.00%
9
Secured by mortgages on immovable
property
-
-
-
-
-
-
10
Exposures in default
195
5
20
2
32
143.58%
11
Exposures associated with particularly high
risk
-
-
-
-
-
-
12
Covered bonds
-
-
-
-
-
-
13
Institutions and corporates with a short-term
credit assessment
-
-
-
-
-
-
14
Collective investment undertakings
28
-
28
-
1
3.80%
15
Equity
255
-
255
-
256
100.41%
16
Other items
3,296
-
3,296
-
3,100
94.05%
17
TOTAL
29,598
1,913
29,521
831
7,161
23.59%
€ million
31.12.2020
Exposures before CCF and CRM
Exposures post-CCF and CRM
RWA and RWA density
Exposure classes
On-balance
sheet amount
Off-balance
sheet amount
On-balance
sheet amount
Off-balance
sheet amount
RWA
RWA density
1
Central governments or central banks
1,141
34
1,148
17
991
85.03%
2
Regional government or local authorities
-
41
-
20
-
-
3
Public sector entities
-
1
-
4
-
-
4
Multilateral development banks
19
2
19
-
19
98.97%
5
International organisations
-
-
-
-
-
-
6
Institutions
5,743
420
20,431
429
548
2.63%
7
Corporates
17,654
6,785
3,183
2,385
5,012
90.02%
8
Retail
738
98
738
51
592
75.00%
9
Secured by mortgages on immovable
property
164
-
164
-
82
49.86%
10
Exposures in default
325
4
101
1
150
147.25%
11
Exposures associated with particularly high
risk
94
147
93
71
247
150.00%
12
Covered bonds
-
-
-
-
-
-
13
Institutions and corporates with a short-term
credit assessment
-
-
-
-
-
-
14
Collective investment undertakings
16
-
16
-
1
6.66%
15
Equity
310
-
310
-
311
1.00349
16
Other items
3,335
-
3,335
-
3,132
93.91%
17
TOTAL
29,540
7,532
29,539
2,979
11,085
34.09%
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EXPOSURE TO CREDIT RISK USING THE
INTERNAL RATINGS-BASED APPROACH
Credit exposures are classified by counterparty type and financial
product type, based on the seven exposure classes shown in the
table below and set out in the amended Article 147 of Regulation
(EU) 575/2013 of 26 June 2013 on capital requirements for credit
institutions and investment firms:
y
the “Central government and central banks” exposure class,
other than exposures on central governments and central
bank, combines exposures to certain regional and local author-
ities or to public sector entities which are treated like central
governments, as well as certain multilateral development
banks and international organisations;
y
the “Institutions” class comprises exposure to credit insti-
tutions and investment firms, including those recognised in
other countries. This category also includes certain exposures
to regional and local governments, public-sector entities and
multilateral development banks that are not considered as
central governments;
y
the “Corporates” class is divided into large companies and
small and medium-sized businesses, which are subject to
different regulatory treatments;
y
the “Retail” class distinguishes between mortgage loans,
revolving facilities, other loans to individuals and other loans
to small and medium-sized businesses;
y
the “Equity” class comprises exposures that convey a residual,
subordinated claim on the assets or income of the issuer or
have a similar economic substance;
y
the “Securitisation” exposure class includes exposures
to securitisation operations or structures, including those
resulting from interest rate or exchange rate derivatives, inde-
pendently of the institution’s role (whether it is the originator,
sponsor or investor);
y
the “Other non-credit obligation assets” class mainly includes
non-current assets and accruals.
Credit derivatives used for hedging
Credit derivatives effect used as credit risk mitigation (CRM) techniques on risk weighted assets (RWA) in internal ratings.
f
IRB approach - effect on the RWAs of credit derivatives used as CRM techniques (CR7)
€ million
31.12.2021
Pre-credit derivatives RWA
Actual RWA
1
Exposures under F-IRB
1,761
1,761
2
Central governments and central banks
-
-
3
Institutions
-
-
4
Corporates
1,761
1,761
4.1
of which Corporates - SMEs
64
64
4.2
of which Corporates - Specialised lending
28
28
5
Exposures under A-IRB
65,938
63,467
6
Central governments and central banks
1,029
1,029
7
Institutions
2,802
2,975
8
Corporates
61,549
58,905
8.1
of Corporates - which SMEs
394
394
8.2
of which Corporates - Specialised lending
12,179
12,179
9
Retail
558
558
9.1
of which Retail – SMEs - Secured by immovable property collateral
-
-
9.2
of which Retail – non-SMEs - Secured by immovable property
collateral
-
-
9.3
of which Retail – Qualifying revolving
-
-
9.4
of which Retail – SMEs - Other
11
11
9.5
of which Retail – Non-SMEs- Other
547
547
10
TOTAL (including F-IRB exposures and A-IRB exposures)
67,698
65,228
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f
IRB approach - Disclosure of the extent of use of CRM techniques (CR7-A)
€ million
31.12.2021
A-IRB
Total exposures
Credit risk Mitigation techniques
Credit risk
Mitigation
methods
in the
calculation of
RWAs
Funded credit
Protection (FCP)
Unfunded
credit
Protection
(UFCP)
RWA with substitution effects
(both reduction and substitution effects)
Part of exposures covered by Financial
Collaterals (%)
Part of exposures covered by Other eligible
collaterals (%)
Part of exposures covered by Other funded
credit protection (%)
Part of exposures covered by Guarantees
(%)
Part of exposures covered by Credit
Derivatives (%)
Part of exposures covered by
Immovable property Collaterals (%)
Part of exposures covered by
Receivables (%)
Part of exposures covered by Other
physical collateral (%)
Part of exposures covered by Cash on
deposit (%)
Part of exposures covered by Life
insurance policies (%)
Part of exposures covered by
Instruments held by a third party (%)
Central governments and central
banks
109,441
-
-
-
-
-
-
-
-
-
-
-
1,029
Institutions
62,350
-
-
-
-
-
-
-
-
-
-
-
2,975
Corporates
173,688
2.20%
11.62%
5.58%
-
6.05%
-
-
-
-
-
-
58,905
Of which Corporates – SMEs
657
16.73%
1.22%
1.22%
-
-
-
-
-
-
-
-
394
Of which Corporates – Specialised
lending
54,012
0.89%
36.81%
17.36%
-
19.45%
-
-
-
-
-
-
12,179
Of which Corporates – Other
119,020
2.72%
0.25%
0.25%
-
-
-
-
-
-
-
-
46,333
Retail
15,091
-
-
-
-
-
-
-
-
-
-
-
558
Of which Retail – Immovable
property SMEs
-
-
-
-
-
-
-
-
-
-
-
-
-
Of which Retail – Immovable
property non-SMEs
-
-
-
-
-
-
-
-
-
-
-
-
-
Of which Retail – Qualifying
revolving
-
-
-
-
-
-
-
-
-
-
-
-
-
Of which Retail – Other SMEs
161
-
-
-
-
-
-
-
-
-
-
-
11
Of which Retail – Other non-SMEs
14,930
-
-
-
-
-
-
-
-
-
-
-
547
TOTAL
360,570
1.06%
5.60%
2.69%
-
2.91%
-
-
-
-
-
63,467
Chapter 5 – Risks and Pillar 3
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CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€ million
31.12.2021
F-IRB
Total exposures
Techniques d’atténuation du risque de crédit
Credit risk Mitigation
methods in the
calculation of RWAs
Funded credit
Protection (FCP)
Unfunded
credit
Protection
(UFCP)
RWA with substitution effects
(both reduction and substitution effects
Part of exposures covered by Financial
Collaterals (%)
Part of exposures covered by Other eligible
collaterals (%)
Part of exposures covered by Other funded
credit protection (%)
Part of exposures covered by Guarantees (%)
Part of exposures covered by Credit
Derivatives (%)
Part of exposures covered by
Immovable property Collaterals (%)
Part of exposures covered by
Receivables (%)
Part of exposures covered by Other
physical collateral (%)
Part of exposures covered by Cash on
deposit (%)
Part of exposures covered by Life
insurance policies (%)
Part of exposures covered by
Instruments held by a third party (%)
Central governments
and central banks
5
-
-
-
-
-
-
-
-
-
-
-
-
Institutions
403
-
-
-
-
-
-
-
-
-
-
-
-
Corporates
4,695
0.25%
5.94%
5.94%
-
-
-
-
-
-
-
-
1,761
Of which Corporates
– SMEs
122
0.07%
8.81%
8.81%
-
-
-
-
-
-
-
-
64
Of which Corporates –
Specialised lending
74
-
-
-
-
-
-
-
-
-
-
-
28
Of which Corporates
– Other
4,498
0.25%
5.96%
5.96%
-
-
-
-
-
-
-
-
1,668
TOTAL
5,102
0.23%
5.46%
5.46%
-
-
-
-
-
-
-
-
1,761
Change in RWAs
f
RWA flow statements of credit risk exposures under the irb approach (CR8)
€ million
31.12.2021
RWA amounts
1
RWAs as at the end of the previous reporting period (30/09/2021)
63,513
2
Asset size (+/-)
(375)
3
Asset quality (+/-)
189
4
Model updates (+/-)
1,556
5
Methodology and policy (+/-)
-
6
Acquisitions and disposals (+/-)
-
7
Foreign exchange movements (+/-)
1,022
8
Other (+/-)
1
(678)
9
RWAs as at the end of the reporting period (31/12/2021)
65,228
1
The change shown in line 8 “Other (+/-)” of the CR8 table can primarily be explained by the implementation of proprietary synthetic securitization operation made by Crédit Agricole
CIB in the fourth quarter 2021 which allow Crédit Agricole CIB to transfer its credit risk to investors.
Chapter 5 – Risks and Pillar 3
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3.2.4 Counterparty risk
Crédit Agricole CIB, like its parent company, addresses
counterparty risks for all of its exposures, whether these depend
on the banking portfolio or the trading book (portfolio). For items
in the trading book, counterparty risk is calculated in accordance
with the provisions relating to the regulatory supervision of market
risk.
The regulatory treatment of counterparty risk on transactions on
forward financial instruments in the banking book is defined on
a regulatory basis in the amended Regulation (EU) 575/2013 of
26 June 2013. Crédit Agricole CIB uses the market price method
to measure its exposure to counterparty risk on transactions on
forward financial instruments in the banking book (Article 274)
or the internal model method (Article 283) within the scope of
Crédit Agricole CIB.
Analysis of the exposure to counterparty risks (CCR)
f
Exposure to counterparty risks by type of approach
€ million
31.12.2021
Standardised
IRB
Total
Gross
exposure
EAD
RWA
Capital
require-
ment
Gross
exposure
EAD
RWA
Capital
require-
ment
Gross
exposure
EAD
RWA
Capital
require-
ment
Central governments and central
banks
-
-
-
-
8,647
8,598
239
19
8,647
8,598
239
19
Institutions
6,666
6,666
174
14
28,025
28,694
4,189
335
34,691
35,360
4,364
349
Corporates
330
330
330
26
28,998
28,382
9,208
737
29,328
28,712
9,537
763
Retail
-
-
-
-
-
-
-
-
-
-
-
-
Equities
-
-
-
-
-
-
-
-
-
-
-
-
Securitisations
-
-
-
-
-
-
-
-
-
-
-
-
Other non-credit obligation
assets
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
6,996
6,996
504
40
65,670
65,675
13,636
1,091
72,666
72,670
14,140
1,131
€ million
31.12.2020
Standardised
IRB
Total
Gross
exposure
EAD
RWA
Capital
require-
ment
Gross
exposure
EAD
RWA
Capital
require-
ment
Gross
exposure
EAD
RWA
Capital
require-
ment
Central governments and central
banks
‐
‐
‐
‐
8,844
8,796
214
17
8,844
8,796
214
17
Institutions
5,702
5,702
149
12
36,691
37,200
4,600
368
42,392
42,901
4,749
380
Corporates
695
695
669
54
29,850
29,393
8,821
706
30,545
30,088
9,491
759
Retail
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Equities
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Securitisations
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Other non-credit obligation
assets
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
TOTAL
6,397
6,397
819
66
75,384
75,389
13,635
1,091
81,781
81,786
14,454
1,156
Change in RWAs using the internal models method (IMM)
f
RWA flow statements of CCR exposures under the IMM (CCR7)
€ million
31.12.2021
RWA amounts
0010
RWAs as at the end of the previous reporting period (30/09/2021)
10,297
0020
Asset size
814
0030
Credit quality of counterparties
83
0040
Model updates (IMM only)
-
0050
Methodology and policy (IMM only)
-
0060
Acquisitions and disposals
-
0070
Foreign exchange movements
(313)
0080
Other
(706)
0090
RWAs as at the end of the reporting period (31/12/2021)
10,175
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3.2.4.1
RISK MITIGATION TECHNIQUES APPLIED TO CREDIT AND COUNTERPARTY RISK
Definitions:
y
collateral: a security interest giving the Bank the right to liquidate, keep or obtain title to certain amounts or assets in the event of
default or other specific credit events affecting the counterparty, thereby reducing the credit risk on an exposure;
y
personal guarantee: undertaking by a third party to pay the sum due in the event of the counterparty’s default or other specific
credit events, therefore reducing the credit risks on an exposure.
f
CRM techniques overview: Disclosure of the use of credit risk mitigation techniques (CR3)
€ million
31.12.2021
Unsecured carrying
amount
Secured carrying
amount
Of which secured by
collateral
Of which secured by
financial guarantees
Of which secured by
credit derivatives
1
Loans and advances
192,640
85,728
74,832
10,896
8,184
2
Debt securities
33,803
-
-
-
-
3
TOTAL
226,443
85,728
74,832
10,896
8,184
4
Of which non-performing exposures
2,847
1,455
1,417
38
-
€ million
31.12.2020
Unsecured carrying
amount
Secured carrying
amount
Of which secured
by collateral
Of which secured
by financial
guarantees
Of which secured by
credit derivatives
1
Loans and advances
147,116
79,938
58,950
3,197
17,791
2
Debt securities
37,381
-
-
-
-
3
TOTAL
184,497
79,938
58,950
3,197
17,791
4
Of which non-performing exposures
3,030
1,602
868
478
256
3.2.4.2 EXPOSURES TO EQUITIES INCLUDED IN THE BANKING BOOK
Equity investments owned by Crédit Agricole CIB Group outside
the trading book are made up of securities “that give residual and
subordinated rights to the assets or income of the issuer or that
are of a similar economic nature”.
They mainly comprise:
y
listed and non-listed shares and units in investment funds;
y
implicit options in bonds that are convertible, redeemable or
exchangeable for shares;
y
options on shares;
y
deeply subordinated securities.
The objective pursued in the context of non-consolidated equity
investments is the management intention (financial assets at fair
value through profit/loss or on option, financial assets available
for sale, investments held until maturity, loans and receivables)
as described in note 1.3 to the financial statements “Accounting
policies and principles”.
The accounting techniques and valuation methods used are
described in note 1.3 to the financial statements “Accounting
policies and principles”.
f
Equity exposures under the simple risk-weighted approach (CR10.5)
€ million
31.12.2021
Categories
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
Exposure amount
RWAs
Expected loss
amount
Exchange-traded equity exposures
-
-
190%
-
-
-
Private equity exposures
1
-
290%
1
3
-
Other equity exposures
411
-
370%
311
1,152
7
TOTAL
412
-
312
1,155
7
€ million
31.12.2020
Categories
On-balance sheet
amount
Off-balance sheet
amount
Risk weight
Exposure amount
RWAs
Expected loss
amount
Exchange-traded equity exposures
‐
‐
190%
‐
‐
‐
Private equity exposures
1
‐
290%
1
3
‐
Other equity exposures
310
‐
370%
310
1,148
7
TOTAL
311
‐
311
1,151
7
The amounts of gains and losses on equity instruments, generated over the period under review, are presented in note 4 to the financial
statements “Notes on net income and other comprehensive income”.
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3.2.5 Market risks
3.2.5.1
EXPOSURE TO MARKET RISKS IN THE TRADING BOOK
Exposures using the internal model approach
f
RWEA flow statements of market risk exposures under the IMA) (MR2-B)
€ million
31.12.2021
VaR
SVaR
IRC
Compre-
hensive risk
measure
Other
Total RWAs
Total own
funds re-
quirements
1
RWEAs at previous period end (30/09/2021)
970
3,840
1,959
-
-
6,769
541
1a
Regulatory adjustment
730
2,952
164
-
-
3,846
308
1b
RWEAs at the previous quarter-end (end of the day)
240
887
1,795
-
-
2,923
234
2
Movement in risk levels
180
131
357
-
-
668
53
3
Model updates/changes
-
-
45
-
-
45
4
4
Methodology and policy
-
-
-
-
-
-
-
5
Acquisitions and disposals
-
-
-
-
-
-
-
6
Foreign exchange movements
(14)
(48)
(11)
-
-
(73)
(6)
7
Other
-
-
-
-
-
-
-
8 a
RWEAs at the end of the reporting period (end of the
day)
357
653
1,214
-
-
2,224
178
8b
Regulatory adjustment
779
3,271
1,135
-
-
5,185
415
8
RWEAs at the end of the reporting period
(31/12/2021)
1,137
3,923
2,350
-
-
7,409
593
Chapter 5 – Risks and Pillar 3
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2021
3.3
LIQUIDITY RISK
The system for monitoring and measuring liquidity risks is described in Chapter 5 Risks / Risk Management of the present Universal
Registration Document.
f
Quantitative information of LCR (EU-LIQ1)
€ million
Scope of consolidation:
consolidated
Total unweighted value (average)
Total weighted value (average)
EU 1a
Quarter ending on
31.12.2021
30.09.2021 30.06.2021
31.03.2021
31.12.2021
30.09.2021 30.06.2021
31.03.2021
EU 1b
Number of data points
used in the calculation of
averages
12
12
12
12
12
12
12
12
HIGH-QUALITY LIQUID ASSETS
1
Total high-quality liquid
assets (HQLA)
101,778
115,136
102,545
103,645
CASH-OUTFLOWS
2
Retail deposits and
deposits from small
business customers,
of which:
13,409
13,590
13,403
13,282
1,982
2,013
1,984
1,970
3
Stable deposits
-
-
-
-
-
-
-
-
4
Less stable deposits
13,409
13,590
13,403
13,282
1,982
2,013
1,984
1,970
5
Unsecured wholesale
funding
111,959
130,706
128,518
125,960
50,015
63,276
60,747
62,994
6
Operational deposits
(all counterparties) and
deposits in networks of
cooperative banks
25,279
24,068
23,271
25,388
6,320
6,017
5,818
6,347
7
Non-operational
deposits (all
counterparties)
85,160
99,830
100,097
97,336
42,175
50,451
49,779
53,411
8
Unsecured debt
1,520
6,808
5,150
3,235
1,520
6,808
5,150
3,235
9
Secured wholesale
funding
18,140
16,314
16,862
15,910
10
Additional
requirements
144,856
143,958
134,758
139,307
37,242
35,776
33,559
34,454
11
Outflows related to
derivative exposures
and other collateral
requirements
22,008
21,519
17,021
17,985
8,913
8,554
7,960
8,180
12
Outflows related to
loss of funding on debt
products
-
-
-
-
-
-
-
-
13
Credit and liquidity
facilities
122,848
122,439
117,737
121,322
28,329
27,222
25,599
26,273
14
Other contractual
funding obligations
39,399
43,917
42,538
38,344
1,479
6,517
5,587
7,309
15
Other contingent
funding obligations
62,491
72,154
68,440
59,975
3,315
3,798
3,612
3,189
16
TOTAL CASH
OUTFLOWS
-
112,172
127,694
122,351
125,825
CASH-INFLOWS
17
Secured lending (e.g.
reverse repos)
176,453
174,051
192,445
171,120
12,997
11,254
15,439
13,259
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€ million
Scope of consolidation:
consolidated
Total unweighted value (average)
Total weighted value (average)
EU 1a
Quarter ending on
31.12.2021
30.09.2021 30.06.2021
31.03.2021
31.12.2021
30.09.2021 30.06.2021
31.03.2021
EU 1b
Number of data points
used in the calculation of
averages
12
12
12
12
12
12
12
12
18
Inflows from fully
performing exposures
44,216
25,864
29,366
27,656
35,366
16,616
18,936
20,739
19
Other cash inflows
1,890
6,737
4,937
7,969
1,890
6,737
4,937
7,969
EU-19a
(Difference between total
weighted inflows and
total weighted outflows
arising from transactions
in third countries where
there are transfer
restrictions or which are
denominated in non-
convertible currencies)
-
-
-
-
EU-19b
(Excess inflows from a
related specialised credit
institution)
-
-
-
-
20
TOTAL CASH
INFLOWS
222,559
206,652
226,748
206,745
50,252
34,606
39,311
41,966
EU-20a
Fully exempt inflows
-
-
-
-
-
-
-
-
EU-20b
Inflows subject to
90% cap
-
-
-
-
-
-
-
-
EU-20c
Inflows subject to
75% cap
201,940
184,505
205,130
188,013
50,252
34,606
39,311
41,966
TOTAL ADJUSTED VALUE
21
LIQUIDITY BUFFER
101,778
115,136
102,545
103,645
22
TOTAL NET CASH
OUTFLOWS*
61,919
93,088
83,040
83,859
23
LIQUIDITY
COVERAGE RATIO
164.37%
123.69%
123.49%
123.59%
* The net cash outflows are calculated on average on the amounts observed (over the 12 regulatory declarations concerned) including the application of a cap on cash inflows
(maximum of 75% of gross outflows), if applicable.
Chapter 5 – Risks and Pillar 3
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240
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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f
Qualitative information
Concentration of funding and liquidity
sources
Crédit Agricole CIB actively diversifies its sources of financing by maintaining diversified
access to the markets through multi-format issuance programmes in a variety of locations.
Derivative exposures and potential
collateral calls
The cash outflows relating to this item primarily reflect the contingent risk of increasing
margin calls:
- on derivative transactions in an adverse market scenario;
- following a downgrade in the Crédit Agricole CIB Group’s external rating.
Currency mismatch in the LCR
Residual asymmetries, which may be observed in some currencies, are limited in size. In
addition, the surplus of high-quality liquid assets available in the major currencies can be
easily converted to cover these needs, including in a crisis situation.
A description of the degree of
centralisation of liquidity management
and interaction between the group’s units
The Treasury Department is responsible for overall day-to-day management of the
Crédit Agricole CIB Group’s short-term funding. Within each cost centre, the Treasurer is
responsible for managing funding activities within the allocated limits, and reports to Crédit
Agricole CIB’s Treasurer and the local Assets and Liabilities Committee.
The Steering department is responsible for managing the requirements of the business
lines and for the overall supervision of liquidity risk within the risk framework validated by
the Board of Directors. The operational management of long-term refinancing is delegated
to the ALM/Execution department.
Other items in the LCR calculation that
are not captured in the LCR disclosure
template but that the institution considers
relevant for its liquidity profile
In addition to the LCR surplus, Crédit Agricole CIB has non-HQLA reserves that can be
liquidated on the market and reserves that can be mobilised in Central Banks (eligible loans
of €2.9 billion before haircut at 31 December 2021).
Chapter 5 – Risks and Pillar 3
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QUANTITATIVE INFORMATION ON THE NET STABLE FUNDING RATIO (NSFR) AT 31 DECEMBER 2021
(EU-LIQ2)
f
Net Stable Funding Ratio
€ million
31.12.2021
a
b
c
d
e
Unweighted value by residual maturity
Weighted value
No maturity
< 6 months
6 months
to < 1 year
≥ 1 year
Available stable funding (ASF) Items
1
Capital items and instruments
25,971
-
600
3,983
30,255
2
Own funds
25,971
-
600
3,983
30,255
3
Other capital instruments
-
-
-
-
-
4
Retail deposits
-
14,146
150
2
12,868
5
Stable deposits
-
-
-
-
-
6
Less stable deposits
-
14,146
150
2
12,868
7
Wholesale funding
-
404,810
18,415
81,317
160,698
8
Operational deposits
-
25,279
-
-
12,639
9
Other wholesale funding
-
379,531
18,415
81,317
148,059
10
Interdependent liabilities
-
-
-
-
-
11
Other liabilities
-
53,948
866
3,679
4,112
12
NSFR derivative liabilities
-
-
-
-
-
13
All other liabilities and capital instruments not
included in the above categories
-
53,948
866
3,679
4,112
14
Total available stable funding (ASF)
-
-
-
-
207,933
Required stable funding (RSF) Items
15
Total high-quality liquid assets (HQLA)
-
-
-
-
3,343
EU-15a
Assets encumbered for a residual maturity of
one year or more in a cover pool
-
443
460
4,938
4,964
16
Deposits held at other financial institutions for
operational purposes
-
2,442
-
-
1,221
17
Performing loans and securities:
-
299,064
28,047
107,703
143,694
18
Performing securities financing transactions with
financial customers collateralised by Level 1 HQLA
subject to 0% haircut
-
165,322
6,369
3,083
7,533
19
Performing securities financing transactions with
financial customer collateralised by other assets and
loans and advances to financial institutions
-
71,825
3,368
17,128
25,473
20
Performing loans to non- financial corporate clients,
loans to retail and small business customers, and
loans to sovereigns, and PSEs, of which:
-
44,325
12,240
76,448
93,826
21
With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk
-
375
596
7,091
5,094
22
Performing residential mortgages, of which:
-
-
-
-
-
23
With a risk weight of less than or equal to 35% under
the Basel II Standardised Approach for credit risk
-
-
-
-
-
24
Other loans and securities that are not in default and
do not qualify as HQLA, including exchange-traded
equities and trade finance on-balance sheet products
-
17,592
6,071
11,045
16,861
25
Interdependent assets
-
-
-
-
-
26
Other assets:
-
58,171
685
5,913
20,585
27
Physical traded commodities
-
-
-
-
-
28
Assets posted as initial margin for derivative
contracts and contributions to default funds of CCPs
-
5,159
-
-
4,385
29
NSFR derivative assets
-
2,356
-
-
2,356
30
NSFR derivative liabilities before deduction of
variation margin posted
-
39,307
-
-
1,965
31
All other assets not included in the above categories
-
11,348
685
5,913
11,878
32
Off-balance sheet items
-
23,325
9,972
131,935
10,424
33
Total required stable funding (RSF)
-
-
-
-
184,230
34
Net Stable Funding Ratio (%)
-
-
-
-
112.87%
The NSFR ratio of Crédit Agricole CIB Group is at a convenient level since it entered into force. The net stable funding includes mainly client
resources, funding provided by the Crédit Agricole S.A. Group and central bank resources (TLTRO). The available stable funding covers
the stable funding requirements since the regulatory requirement came into force in June 2021.
Chapter 5 – Risks and Pillar 3
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3.4
COMPENSATION POLICY
The information on the compensation policy required pursuant to EU Regulation 575-2013 (CRR) can be found in Chapter 3 of this Universal
Registration Document.
Chapter 5 – Risks and Pillar 3
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3.5
CROSS-REFERENCE TABLE
f
EDTF Cross-reference table
Recommendation
2021 Universal Registration Document
Management
report and
other
Risk factors
and Risk
management
Pillar 3
Consolidated
financial
statements
Introduction
1
Cross-reference table
P. 244
2
Terminology and risk measurements, key
parameters used
P. 152 to 202
P. 219 and
P. 230 to 234
P. 263 to 280,
285 to 312
3
Presentation of main risks and/or emerging risks
P. 152 to 202
P. 269 to 274
4
New regulatory framework for solvency and Group
targets
P. 203 to 210
Governance and
risk management
strategy
5
Organisation of control and risk management
P. 89 to 91
P. 162 to 176
6
Risk management strategy and implementation
P. 89 to 91
P. 152 to 202,
P. 167 to 176
P. 204 to 215
7
Risk mapping by business line
8
Governance and management of internal credit and
market stress tests
P. 165 to 176,
P. 181
P. 203 to 204
Capital
Requirements
and risk-weighted
assets
9
Minimum capital requirements
P. 208 to 209
10a
Breakdown of composition of capital
P. 207
10b
Reconciliation of the balance sheet and prudential
balance sheet and accounting equity and regulatory
capital
P. 203 to 208
11
Changes in regulatory capital
P. 207 to 208
12
Capital trajectory and target CRD 5 ratios
P. 204 to 215
13
Risk-weighted assets by business line and risk
type
P. 217 to 230
14
Risk-weighted assets and capital requirements by
method and type of exposure
P. 217 to 230
15
Exposure to credit risk by category of exposure and
internal rating
P. 176 to 180,
183
P. 219 to 236
16
Changes in risk-weighted assets by risk type
P. 217 to 218
17
Description of back-testing models and efforts to improve
their reliability
P. 177 to 178,
188 to 189
N/A
Liquidity
18
Management of liquidity and cash balance sheet
P. 195 to 196
P. 238 to 241
19
Asset encumbrance
N/A
20
Breakdown of financial assets and liabilities by contractual
maturity
P. 305 to 307,
346
21
Liquidity and financing risk management
P. 195 to 196
P. 238 to 241
Market risks
22
to
24
Market risk measurement
P. 187 to 195
P. 237
P. 263 to 281,
P. 301 to 305,
P. 353 to 362
25
Market risk management techniques
P. 187 to 195
Credit risk
26
Maximum exposure, breakdown and diversification of
credit risks
P. 176 to 186
P. 236
P. 285 to 312,
27
and
28
Provisioning policy and risk hedging
P. 185 to 186
P. 263 to 280,
316
29
Derivative instruments: notional, counterparty risk,
offsetting
P. 176 to 186,
P.196
P. 235 to 236
P. 271 to 274,
P. 301 to 305,
P. 334 to 335,
P. 356
30
Credit risk mitigation mechanisms
P. 182
P. 236
P. 352
Operational and
legal risks
31
Other risks: insurance sector risks, operational
risks and legal risks, information systems security
and business continuity plans
P. 89 to 91
P. 152 to 161,
P.193 to 200
32
Declared risks and ongoing actions regarding
operational and legal risks
P. 197 to 200
P. 340 to 343
Chapter 5 – Risks and Pillar 3
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f
Pillar 3 cross-reference table (CRR 2 AND CRD V)
Article CRR2
Theme
2021 Universal Registration Document
Pages
90 (CRD V)
Return on assets
Management report
P. 139
435 (CRR2)
1. Risk management objectives and policies
Presentation of Committees – Corporate
governance
Organization of the Risk function Risk
Committee – Risk Management
P. 90 to 93
P. 162 to 165
436
2. Financial statements and regulatory
information
Pillar 3
Financial statements Note 12.2
P. 216
P. 364 to 367
436 (CRR2)
2. Scope of application
Undisclosed information
437 (CRR2)
3. Own funds
Reconciliation of accounting and regulatory
capital
Details of subordinated debt
https://www.ca-cib.
com/about-us/financial-
information/regulated-
information in Appendix II
“Main features of capital
instruments.”
437 bis
(CRR2)
3. Own funds and liabilities
438 (CRR2)
4. Own funds requirements and
risk-weighted exposure amounts
Risk-weighted assets by business line and
trends
P. 217 to 218
439 (CRR2)
5. Exposure to counterparty credit risk
General presentation of counterparty credit
risk
– exposures by type of risk
Credit risk (all)
Counterparty risk (all)
P. 219 to 236
440 (CRR2)
6. Capital buffers
Minimum requirements and exposures by
geographic area
P. 208
441 (CRR2)
7. Indicators of global systemic importance
Communication on the indicators required
for
globally systemically important banks
(G-SIBs) + website
N/A
442 (CRR2)
8. Exposures to credit risk and dilution risk
Default exposures and value adjustments
P. 229 to 230
443 (CRR2)
9. Asset encumbrance
Asset encumbrance
N/A
444 (CRR2)
10. Use of ECAIs
Protection providers
N/A
445 (CRR2)
11. Exposure to market risk
Exposure to the market risk of the trading
book
P. 237
446 (CRR2)
12. Operational risk
Operational risk
P. 197 to 202
447 (CRR2)
13. Key metrics
Key metrics
N/A
448 (CRR2)
14. Exposures to interest rate risk on positions not
included in the trading book
Global interest rate risk – Risk Management
P. 173, 193 to 194
449 (CRR2)
15. Exposure to securitisation positions
Securitisation - Pillar 3
N/A
450 (CRR2)
16. Remuneration policy
Compensation policy - Corporate
governance (chapter. 3)
Compensation policy – Pillar 3
P. 118 to 124,
P. 242
451 (CRR2)
17. Leverage
Leverage ratio
P. 211 to 214
451 bis
(CRR2)
17. Liquidity
NSFR, LCR
P. 238 to 241
452 (CRR2)
18. Use of the IRB approach for credit risk
Credit risk – internal ratings-based approach
P. 232 to 233
453 (CRR2)
19. Use of credit risk mitigation techniques
Credit risk mitigation mechanism
Pillar 3
P. 182 to 183,
P. 236
454 (CRR2)
20. Use of the Advanced Measurement
Approaches for operational risk
Operational risks
P. 197 to 202
455 (CRR2)
21. Use of internal market risk models
Internal Models Approach to market risk
capital requirements – Pillar 3
P. 237
Chapter 5 – Risks and Pillar 3
BASEL III PILLAR 3 DISCLOSURES
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3.6
STATEMENT BY THE PERSON RESPONSIBLE
Statement under EBA Guidelines 2016/11 on disclosure requirements in Part Eight of Regulation (EU)
No 575/2013 and subsequent amendments
Olivier BÉLORGEY, Deputy Chief Executive Officer and Chief Financial Officer of Crédit Agricole CIB
Statement by the person responsible
I certify that, to the best of my knowledge, in accordance with EBA Directives 2016/11 on disclosure requirements in Part Eight of
Regulation (EU) No. 575/2013 (and subsequent amendments) 4.2 paragraph - Section C, the information provided in accordance with Part
Eight has been prepared in accordance with the internal control processes set forth by the management body.
Montrouge, 25 March 2022
Deputy Chief Executive Officer and Chief Financial Officer of Crédit Agricole CIB
Olivier Bélorgey
Chapter 5 – Risks and Pillar 3
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CONSOLIDATED FINANCIAL
STATEMENTS
AT 31 DECEMBER 2021
Approved by the Board of Directors on February 8
th
2022 and submitted
for approval by the Ordinary General Meeting of 3
rd
May 2022
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1.
GENERAL FRAMEWORK
...................................
250
1.1.
LEGAL PRESENTATION OF CRÉDIT AGRICOLE
CORPORATE AND INVESTMENT BANK
..........................
250
1.2. SYNTHETIC GROUP ORGANISATION
...............................
251
1.3. AN ESSENTIALLY MUTUALIST BANKING GROUP
........
252
1.4. INTERNAL RELATIONS AT CRÉDIT AGRICOLE
...........
252
1.5. INFORMATION ABOUT RELATED PARTIES
...................
254
2.
CONSOLIDATED FINANCIAL STATEMENTS
.......
255
2.1. INCOME STATEMENT
.........................................................
255
2.2.
NET INCOME AND OTHER COMPREHENSIVE
INCOME
...............................................................................
256
2.3. BALANCE SHEET - ASSETS
.............................................
257
2.4. BALANCE SHEET - LIABILITIES
......................................
258
2.5. STATEMENT OF CHANGES IN EQUITY
..........................
259
2.6. CASH FLOW STATEMENT
.................................................
261
3.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
...................................................
263
NOTE 1:
GROUP ACCOUNTING POLICIES AND PRINCIPLES,
ASSESSMENTS AND ESTIMATES APPLIED
............
263
NOTE 2: MAJOR STRUCTURAL TRANSACTIONS AND
MATERIAL EVENTS DURING THE PERIOD
............
281
NOTE 3:
FINANCIAL MANAGEMENT, RISK EXPOSURE
AND HEDGING POLICY
............................................
285
NOTE 4:
NOTES ON NET INCOME AND OTHER
COMPREHENSIVE INCOME
......................................
313
NOTE 5: SEGMENT REPORTING
.............................................
322
NOTE 6: NOTES TO THE BALANCE SHEET
.........................
324
NOTE 7:
EMPLOYEE BENEFITS AND
OTHER REMUNERATION
..........................................
347
NOTE 8: LEASES
.......................................................................
350
NOTE 9:
COMMITMENTS GIVEN AND RECEIVED AND
OTHER GUARANTEES
.............................................
352
NOTE 10:
RECLASSIFICATION OF FINANCIAL
INSTRUMENTS
.........................................................
353
NOTE 11: FAIR VALUE OF FINANCIAL INSTRUMENTS
........
353
NOTE 12:
SCOPE OF CONSOLIDATION
AT 31 DECEMBER 2021
...........................................
363
NOTE 13:
NON-CONSOLIDATED INVESTMENTS AND
STRUCTURED ENTITIES
.........................................
367
NOTE 14:
EVENTS SUBSEQUENT
TO 31 DECEMBER 2021
.........................................
370
4.
STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS
(FOR THE YEAR ENDED 31 DECEMBER 2021) ... 371
6
CONTENTS
248
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
€1
,691
M
NET
INCOME
GROUP
SHARE
€5,913
M
NET
BANKING
INCOME
€599,721
M
TOTAL
ASSETS
102
NUMBER OF
CONSOLIDATED
ENTITIES
€
26,400 M
TOTAL
EQUITY
€
€
€
249
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
GENERAL FRAMEWORK
The consolidated financial statements consist of the general framework, the consolidated financial statements and the notes
to the consolidated financial statements.
1.
GENERAL FRAMEWORK
1.1. LEGAL PRESENTATION OF CRÉDIT AGRICOLE CORPORATE AND
INVESTMENT BANK
CORPORATE NAME:
TRADING NAMES:
Crédit Agricole Corporate and Investment Bank - Crédit Agricole CIB – CACIB
ADDRESS OF THE REGISTERED OFFICE:
REGISTRATION:
Registered with the Nanterre Trade and Company Registry under number 304 187 701
NAF CODE:
6419 Z (APE)
LEI CODE:
1VUV7VQFKUOQSJ21A208
LEGAL FORM:
Crédit Agricole Corporate and Investment Bank is a public limited company (société anonyme) under French law (with a Board of
Directors) governed by the laws and regulations applicable to credit institutions and French public limited companies, and by its
Articles of Association.
As of December 2011, Crédit Agricole Corporate and Investment Bank is affiliated with Crédit Agricole, within the meaning of the
French Monetary and Financial Code (CMF).
SHARE CAPITAL:
EUR 7,851,636,342
CORPORATE PURPOSE (ART. 3 OF THE COMPANY’S ARTICLES OF ASSOCIATION):
The Company’s purpose, in France and abroad, is:
y
to carry out all banking and financial operations, including in particular:
-
receiving funds, granting loans, advances, credit, financing, guarantees, and implementing deposits, payments, collections;
-
providing financial advice and particularly regarding financing, debt, subscription, issue, investment, acquisition, disposal, merger,
restructuring;
-
custody, management, purchase, sale, exchange, brokerage and arbitrage of all securities, company rights, financial products, deriv-
atives, currencies, commodities, precious metals and other securities of any kind;
y
providing any investment services and related services, within the meaning of the French Monetary and Financial Code and any
subsequent text;
y
creating and participating in any businesses, groups and companies via contributions, subscriptions, purchases of shares or company
rights, mergers, or by any other means;
y
carrying out any commercial, industrial, securities or real estate transactions connected directly or indirectly to any or all of the above
purposes or all similar or related purposes;
y
all on its own behalf, for third parties or as a participating member, and in any form whatsoever.
250
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
GENERAL FRAMEWORK
1.2. SYNTHETIC GROUP ORGANISATION
CORPORATE
AND INVESTMENT BANKING
WEALTH
MANAGEMENT
BRANCHES
SUBSIDIARIES/INVESTMENTS
Europe
Germany
Belgium
Spain
Finland
Italy
United Kingdom
Sweden
Africa/Middle
East
Abu Dhabi
Dubaï
Qatar
Asia
South Korea
Hong Kong
India
Japan
Singapore
Taiwan
America
United States
Canada
Miami
Europe
Ester Finance
Technologies
[100%]
Crédit Agricole
CIB AO Russia
[100%]
Kepler Cheuvreux
[15%]
Crédit Agricole
CIB Airfinance
S.A. [100%]
Africa/Middle
East
Crédit Agricole
CIB Arabia
Financial [100%]
Asia/ Pacific
Crédit Agricole
CIB Australia Ltd
[100%]
Crédit Agricole
CIB China Ltd
[100%]
CA Securities
Asia BV (Tokyo
Branch) [100%]
CA Securities
(Asia) Ltd (Seoul
Branch) [100%]
Crédit Agricole
Asia
Shipfinance Ltd
[100%]
America
Banco Crédit
Agricole
Brasil [100%]
Crédit Agricole
Securities (USA)
Inc. [100%]
CA Indosuez
[100%]
CA Indosuez
(Switzerland)
[100 %]
CA Indosuez
Wealth
(Europe)
[100 %]
CFM Indosuez
Wealth
[70%]
AZQORE
[80%]
251
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GENERAL FRAMEWORK
1.3. AN ESSENTIALLY MUTUALIST BANKING GROUP
In accordance with the provisions of the French Monetary
and Financial Code (Articles L. 511-31 and L. 511-32), as
the corporate centre of the Crédit Agricole network, Crédit
Agricole S.A. is responsible for exercising administrative, technical
and financial control over the institutions affiliated to it in order to
maintain a cohesive network (as defined in Article R. 512-18 of the
French Monetary and Financial Code) and to ensure their proper
functioning and compliance with all regulations and legislation
governing them. In that regard, Crédit Agricole S.A. may take all
necessary measures notably to ensure the liquidity and solvency
of the network as a whole and of each of its affiliated institutions.
1.4. INTERNAL RELATIONS AT CRÉDIT AGRICOLE
Internal financial mechanisms
The financial mechanisms that govern reciprocal relations within
Crédit Agricole are specific to the Group.
TLTRO III MECHANISM
The ECB set out a third series of long-term refinancing operations
in March 2019, the terms and conditions of which were reviewed
in September 2019 and again in March, April and December
2020, in connection with the COVID-19 situation.
The TLTRO III mechanism aims to provide long-term refinancing
with a subsidy in the event of reaching a lending performance
target based on growth of lending to firms and households, which
is applied over the three-year maturity of the TLTRO operation. An
additional subsidy, awarding a further and temporary incentive, is
applied over the one-year period between June 2020 and June
2021, and a second additional and temporary subsidy over the
one-year period between June 2021 and June 2022.
The accounting treatment used by the Group, with no change
compared to that applied in 2020, consists in recognising
subsidies as soon as the Group believes that the level of eligible
outstandings will render it possible to meet the conditions
necessary to obtain these subsidies when they are due to the
ECB, i.e. at the end of the TLTRO III operation, and to assign this
subsidy to the period to which it relates on a pro rata temporis
basis.
The Group assessed their accrued interest at the rate of the
Deposit Facility -50bp floored at -100bp over the special interest
rate period (1 January 2021 - 23 June 2021 for the period relating
to the 2021 financial year), given that thresholds were reached
at the first incentive during the special reference period. Over
the special additional interest rate period (24 June 2021 - 31
December 2021 for the period relating to the 2021 financial year),
the interest rate used is also the rate of the Deposit Facility -50bp
floored at -100bp, given the achievement of the criteria for the
level of eligible loans specific to the second incentive during the
additional special reference period. As such, the Group believes
that it will obtain all the subsidies at the end of this loan due to the
fulfilment of the conditions to benefit from it at 31 December 2021.
As a reminder, at 30 June 2021, the interest rate used was the
minimum between the Deposit Facility rate and the MRO -50bp
given the Group’s uncertainty at that date, as to the achievement
of the criteria for changes in eligible loans during the additional
special reference period.
At 31 December 2021, Crédit Agricole Group subscibed to
the ECB for €162 billion in TLTRO III loans. Given the internal
refinancing mechanisms, Crédit Agricole CIB can benefit from
Crédit Agricole S.A. drawings or refinance itself directly to the
ECB.
Hedging of liquidity and solvency risks and
bank resolution
Under the legal internal financial solidarity mechanism enshrined
in Article L. 511-31 of the French Monetary and Financial Code
(CMF), Crédit Agricole S.A., as the central body, must take all
measures necessary to ensure the liquidity and solvency of each
affiliated credit institution, as well as the network as a whole. As
a result, each member of the network benefits from this internal
financial solidarity.
The general provisions of the CMF are reflected in the internal
provisions setting out the operational measures required for this
legal solidarity mechanism.
As part of the initial public offering of Crédit Agricole S.A., CNCA
(now Crédit Agricole S.A.) signed a protocol with the Regional
Banks in 2001 to govern internal relations within the Crédit
Agricole network. This protocol provides in particular for the
establishment of a Fund for Bank Liquidity and Solvency Risks
(FRBLS) designed to enable Crédit Agricole S.A. to fulfil its role
as central body by providing assistance to any affiliates that may
experience difficulties. The main provisions of the protocol are
detailed in Chapter III of Crédit Agricole S.A.’s reference document
registered with the Commission des Opérations de Bourse on 22
October 2001 under number R. 01-453.
The European banking crisis management framework was
adopted in 2014 by EU Directive 2014/59 (known as the “Bank
Recovery and Resolution Directive - BRRD”), incorporated into
French law by Order 2015-1024 of 20 August 2015, which also
adapted French law to the provisions of European Regulation
806/2014 of 15 July 2014 establishing uniform rules and a
uniform procedure for the resolution of credit institutions and
certain investment firms in the framework of a Single Resolution
Mechanism and a Single Resolution Fund. Directive (EU) 201/879
of 20 May 2019, known as “BRRD2”, amended the BRRD
and was incorporated into French law by Order 2020-1636 of
21 December 2020.
This framework, which includes measures to prevent and to
resolve banking crises, is intended to preserve financial stability,
to ensure the continuity of activities, services and operations of
institutions whose failure could significantly impact the economy,
to protect depositors, and to avoid or limit the use of public
financial support as much as possible. In this context, the
European Resolution Authorities, including the Single Resolution
Board, have been granted extensive powers to take all necessary
measures in connection with the resolution of all or part of a credit
institution or the group to which it belongs.
For cooperative banking groups, the “extended single point of
entry” (“extended SPE”) resolution strategy is favoured by the
resolution authorities, whereby resolution tools would be applied
simultaneously at the level of Crédit Agricole S.A. and the affiliated
entities. In this respect, and in the event of a resolution of the
Crédit Agricole Group, the scope comprising Crédit Agricole S.A.
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Chapter 6 – Consolidated financial statements at 31 December 2021
GENERAL FRAMEWORK
(in its capacity as the corporate centre) and its affiliated entities
would be considered as a whole as the expanded single entry
point. Given the foregoing and the solidarity mechanisms that
exist within the network, a member of the Crédit Agricole network
cannot be put individually in resolution.
The resolution authorities may initiate resolution proceedings
against a credit institution where it considers that: the institution
has failed or is likely to fail, there is no reasonable prospect that
another private measure will prevent the failure within a reasonable
time, a resolution measure is necessary, and a liquidation
procedure would be inadequate to achieve the resolution
objectives mentioned above.
The resolution authorities may use one or more resolution tools,
as described below, with the objective of recapitalising or restoring
the viability of the institution. The resolution tools should be
implemented in such a way that equity holders (shares, mutual
shares, CCIs, CCAs) bear losses first, with creditors following
up immediately, provided that they are not excluded from bail-in
legally speaking or by a decision of the resolution authorities.
French law also provides for a protective measure when certain
resolution tools or decisions are implemented, such as the
principle that equity holders and creditors of an institution in
resolution may not incur greater losses than those they would
have incurred if the institution had been liquidated in the context
of a judicial liquidation procedure under the French Commercial
Code (NCWOL principle referred to in Article L. 613-57.I of the
CMF). Thus investors are entitled to claim compensation if the
treatment they receive in a resolution is less favourable than the
treatment they would have received if the institution had been
subject to normal insolvency proceedings.
In the event that the resolution authorities decide to put the Crédit
Agricole Group into resolution, they will first write down the CET1
instruments (shares, mutual shares, CCI and CCA), additional
Tier 1 and Tier 2 instruments, in order to absorb losses, and then
possibly convert the additional Tier 1 and Tier 2 instruments into
equity securities
(1)
. Then, if the resolution authorities decide to use
the bail-in tool, the latter would be applied to debt instruments
(2)
,
resulting in the partial or total write-down of these instruments or
their conversion into equity in order to absorb losses.
With respect to the corporate centre and all affiliated entities, the
resolution authorities may decide to implement, in a coordinated
manner, impairment or conversion measures and, where
applicable, internal bailouts. In such an event, the impairment
or conversion measures and, where applicable, internal bailout
measures would apply to all entities within the Crédit Agricole
network, regardless of the entity in question and regardless of
the origin of the losses.
The creditor hierarchy in resolution is defined by the provisions
of Article L 613-55-5 of the CMF, effective as at the date of
implementation of the resolution.
Equity holders and creditors of the same rank or with identical
rights in liquidation will then be treated equally, regardless of the
Group entity of which they are creditors.
The scope of this internal bailout, which also aims to recapitalise
the Crédit Agricole Group, is based on capital requirements at
the consolidated level.
Investors must then be aware that there is therefore a significant
risk that holders of shares, mutual shares, CCIs and CCAs and
holders of debt instruments of a member of the network will
lose all or part of their investment if a resolution procedure is
implemented on the Group, regardless of the entity of which
they are a creditor.
The other resolution tools available to the resolution authorities
are essentially the total or partial transfer of the activities of
(1) Articles L. 613-48 and L. 613-48-3 of the CMF, projected date: end Q1 2022.
(2) Articles L. 613-55 and L. 613-55-1 of the CMF.
the institution to a third party or to a bridge institution and the
separation of the assets of the institution.
This resolution framework does not affect the legal internal
financial solidarity mechanism enshrined in Article L. 511-31 of
the French Monetary and Financial Code, which applies to the
Crédit Agricole network, as defined in Article R. 512-18 of the
same Code. Crédit Agricole S.A. considers that, in practice,
this mechanism should be implemented prior to any resolution
procedure.
The implementation of a resolution procedure to the Crédit
Agricole Group would thus mean that the legal internal solidarity
mechanism had failed to remedy the failure of one or more
network entities, and hence of the network as a whole. It would
also limit the likelihood that the conditions for triggering the
guarantee covering the liabilities of Crédit Agricole S.A., granted
in 1988 to its third party creditors by the Regional Banks on a
joint and several basis and up to the amount of their aggregate
capital, are met. It should be recalled that this guarantee may be
implemented in the event of an asset shortfall following Crédit
Agricole S.A.’s court-ordered liquidation or dissolution.
253
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Chapter 6 – Consolidated financial statements at 31 December 2021
GENERAL FRAMEWORK
1.5. INFORMATION ABOUT RELATED PARTIES
The Crédit Agricole CIB Group’s related parties are the Crédit
Agricole Group companies and the Crédit Agricole CIB Group
companies that are fully consolidated or consolidated using the
equity method, and the Group’s senior executives.
Relations with the Crédit Agricole Group
The on-and off-balance sheet amounts representing transactions
between the Crédit Agricole CIB Group and the rest of the Crédit
Agricole Group are summarised in the following table:
Outstandings (€ million)
31.12.2021
Assets
Loans and advances
34,169
Derivatives financial instruments held
for trading
18,104
Liabilities
Accounts and deposits
58,738
Derivatives financial instruments held
for trading
17,686
Subordinated debts
4,079
Preferred shares
-
Financing and guarantee commitments
Other guarantees given
1,147
Counter-guarantees received
4,430
Other guarantees received
-
Refinancing agreements received
-
The account and loan outstandings reflect the cash flows between
Crédit Agricole CIB and Crédit Agricole Group.
The held-for-trading derivative outstandings mainly represent
Crédit Agricole Group interest rate hedging transactions arranged
in the market by Crédit Agricole CIB.
Crédit Agricole CIB, which has been 99.9% owned by Crédit
Agricole Group since 27 December 1996, and a number of its
subsidiaries, belong to Crédit Agricole S.A.’s tax consolidation
group.
As such, Crédit Agricole S.A. compensates the Crédit Agricole
CIB sub-group for its tax losses, which are charged against the
Crédit Agricole Group’s taxable income.
Relations between the Crédit Agricole CIB
Group’s consolidated companies
The list of the Crédit Agricole CIB Group’s consolidated companies
can be found in Note 12.
Any transactions between two fully consolidated entities have
been completely eliminated.
Any outstandings at year-end between fully consolidated
companies and those consolidated using the equity method
have not been eliminated from the Group’s consolidated financial
statements.
At 31 December 2021, the non-netted outstandings on and off
the balance sheet reported by Crédit Agricole CIB with its affiliate
UBAF are:
Outstandings (€ million)
31.12.2021
Assets
Loans and advances
-
Derivatives financial instruments held
for trading
4
Liabilities
Accounts and deposits
1
Derivatives financial instruments held
for trading
8
Financing and guarantee commitments
Other guarantees given
54
Counter-guarantees received
2
Relations with senior executives
Information on the remuneration of senior executives is detailed
in Note 7.7 “Executive compensation”.
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS
2.
CONSOLIDATED FINANCIAL STATEMENTS
2.1. INCOME STATEMENT
€ million
Notes
31.12.2021
31.12.2020
Interest and similar income
4.1
Interest and similar expenses
4.1
(1,556 )
(2,127 )
Fee and commission income
4.2
Fee and commission expenses
4.2
(721 )
(664 )
Net gains (losses) on financial instruments at fair value through profit or loss
4.3
Net gains (losses) on held for trading assets/liabilities
-
Net gains (losses) on other financial assets/liabilities at fair value through profit or loss
-
(143 )
Net gains (losses) on financial instruments at fair value through other comprehensive income
4.4
Net gains (losses) on debt instruments at fair value through other comprehensive
income that may be reclassified subsequently to profit or loss
-
Remuneration of equity instruments measured at fair value through other comprehensive
income that will not be reclassified subsequently to profit or loss (dividends)
-
Net gains (losses) arising from the derecognition of financial assets at amortised cost
4.5
Net gains (losses) arising from the reclassification of financial assets at amortised cost to
financial assets at fair value through profit or loss
-
Net gains (losses) arising from the reclassification of financial assets at fair value through
other comprehensive income to financial assets at fair value through profit or loss
-
Income on other activities
4.6
Expenses on other activities
4.6
(63 )
(67 )
Revenues
-
Operating expenses
4.7
(3,474 )
(3,284 )
Depreciation, amortisation and impairment of property, plant & equipment and intangible
assets
4.8
(221 )
(215 )
Gross operating income
-
Cost of risk
4.9
(54 )
(856 )
Operating income
-
Share of net income of equity-accounted entities
-
Net gains (losses) on other assets
4.10
(39 )
Change in value of goodwill
6.14
Pre-tax income
-
Income tax charge
4.11
(432 )
(209 )
Net income from discontinued operations
-
(25 )
Net income
-
Non-controlling interests
6.18
NET INCOME GROUP SHARE
-
Earnings per share (in euros) ¹
6.17
Diluted earnings per share (in euros) ¹
6.17
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS
2.2. NET INCOME AND OTHER COMPREHENSIVE INCOME
€ million
Notes
31.12.2021
31.12.2020
Net income
-
Actuarial gains and losses on post-employment benefits
4.12
(39 )
Other comprehensive income on financial liabilities attributable to changes in own credit risk
¹
4.12
(18 )
(148 )
Other comprehensive income on equity instruments that will not be reclassified to profit or
loss
¹
4.12
(142 )
Pre-tax other comprehensive income on items that will not be reclassified to profit
or loss excluding equity-accounted entities
4.12
(329 )
Pre-tax other comprehensive income on items that will not be reclassified to profit
or loss on equity-accounted entities
4.12
Income tax related to items that will not be reclassified to profit or loss excluding
equity-accounted entities
4.12
(23 )
Income tax related to items accounted that will not be reclassified to profit or loss
on equity-accounted entities
4.12
Other comprehensive income on items that will not be reclassified to profit or loss
on entities from discontinued operations
4.12
Other comprehensive income on items that will not be reclassified subsequently to
profit or loss net of income tax
4.12
(244 )
Gains and losses on translation adjustments
4.12
(486 )
Other comprehensive income on debt instruments that may be reclassified to profit or loss
4.12
(7 )
Gains and losses on hedging derivative instruments
4.12
(549 )
Pre-tax other comprehensive income on items that may be reclassified to profit or
loss excluding equity-accounted entities
4.12
(241 )
Pre-tax other comprehensive income on items that may be reclassified to profit or
loss on equity-accounted entities, Group Share
4.12
Income tax related to items that may be reclassified to profit or loss excluding
equity-accounted entities
4.12
(23 )
Income tax related to items that may be reclassified to profit or loss on equity-
accounted entities
4.12
Other comprehensive income on items that may be reclassified to profit or loss on
entities from discontinued operations
4.12
(4 )
Other comprehensive income on items that may be reclassified subsequently to
profit or loss net of income tax
4.12
(268 )
OTHER COMPREHENSIVE INCOME NET OF INCOME TAX
4.12
(512 )
NET INCOME AND OTHER COMPREHENSIVE INCOME
-
Of which Group share
-
Of which non-controlling interests
-
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS
2.3. BALANCE SHEET - ASSETS
€ million
Notes
31.12.2021
31.12.2020
Cash, central banks
6.1
Financial assets at fair value through profit or loss
3.1 - 6.2 - 6.6 - 6.7
Financial assets held for trading
-
Other financial instruments
at fair value through profit or loss
-
Hedging derivative Instruments
3.1 - 3.2 - 3.4
Financial assets at fair value through other comprehensive income
3.1 - 6.4 - 6.6 - 6.7
Debt instruments at fair value through other comprehensive income that may
be reclassified to profit or loss
-
Equity instruments at fair value
through other comprehensive income that
will not be reclassified to profit or loss
-
Financial assets at amortised cost
3.1 - 3.3 - 6.5 - 6.6 - 6.7
Loans and receivables due from credit institutions
-
Loans and receivables due from customers
-
Debt securities
-
Revaluation adjustment on interest rate hedged portfolios
-
Current and deferred tax assets
6.10
Accruals, prepayments and sundry assets
6.11
Non-current assets held for sale and discontinued operations
-
Investments in equity-accounted entities
6.12
Investment property
-
Property, plant and equipment
6.13
Intangible assets
6.13
Goodwill
6.14
TOTAL ASSETS
-
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS
2.4. BALANCE SHEET - LIABILITIES
€ million
Notes
31.12.2021
31.12.2020
Central banks
6.1
Financial liabilities at fair value through profit or loss
6.2
Held for trading financial liabilities
-
Financial liabilities designated at fair value through profit or loss
-
Hedging derivative Instruments
3.2 - 3.4
Financial liabilities at amortised cost
6.8
Due to credit institutions
3.3 - 6.8
Due to customers
3.1 - 3.3 - 6.8
Debt securities
3.2 - 3.3 - 6.8
Revaluation adjustment on interest rate hedged portfolios
-
Current and deferred tax liabilities
6.10
Accruals, prepayments and sundry liabilities
6.11
Liabilities associated with non-current assets held for sale and discontinued
operations
-
Insurance compagny technical reserves
-
Provisions
6.15
Subordinated debt
6.16
Total Liabilities
-
Equity
-
Equity - Group share
-
Share capital and reserves
-
Consolidated reserves
-
Other comprehensive income
4.12
(133 )
Other comprehensive income on discontinued operations
-
Net income (loss) for the year
-
Non-controlling interests
-
TOTAL LIABILITIES AND EQUITY
-
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS
2.5. STATEMENT OF CHANGES IN EQUITY
€ million
Group share
Share and capital reserves
Other comprehensive income
Net in-
come
Total
equity
Share
capital
Share
premium
and con-
solidated
reserves
Elimina-
tion of
treasury
shares
Other
equity
instru-
ments
Total
capital
and
consol-
idated
reserves
Other com-
prehensive
income on
items that
may be
reclassified
to profit and
loss
Other com-
prehensive
income on
items that
will not be
reclassified
to profit and
loss
Total other
comprehen-
sive income
Equity at 1
st
January 2020
(437 )
Capital increase
Changes in treasury shares held
Issuance / repayment of equity instruments
Remuneration of undated deeply subordinated
notes
(264 )
(264 )
(264 )
Dividends paid in 2020
(512 )
(512 )
(512 )
Impact of acquisitions/disposals on non-controlling
interests
Changes due to share-based payments
Changes due to transactions with shareholders
(509 )
(273 )
(273 )
Changes in other comprehensive income
(16 )
(16 )
(268 )
(243 )
(511 )
(527 )
Of which other comprehensive income on
equity instruments that will not be reclassified
to profit or loss reclassified to consolidated
reserves
(13 )
(13 )
Of which other comprehensive income
attributable to changes in own credit risk
reclassified to consolidated reserves
(3 )
(3 )
Share of changes in equity-accounted entities
Net income for 2020
Other variations
(89 )
(89 )
(89 )
Equity at 31 December 2020
(680 )
(133 )
Appropriation of 2020 net income
(1,341 )
Equity at 1
st
January 2021
(680 )
(133 )
Impacts of new accounting standards, IFRIC
decisions/ interpretations ¹
Equity at 1
st
January 2021 Restated
(680 )
(133 )
Capital increase
Changes in treasury shares held
Issuance / repayment of equity instruments
Remuneration of undated deeply subordinated
notes
(308 )
(308 )
(308 )
Dividends paid in 2021
(1,024 )
(1,024 )
(1,024 )
Dividends received from Regional Banks and
subsidiaries
Impact of acquisitions/disposals on non-controlling
interests
Changes due to share-based payments
Changes due to transactions with shareholders
(1,022 )
Changes in other comprehensive income
Of which other comprehensive income on equity
instruments that will not be reclassified to profit or
loss reclassified to consolidated reserves
Of which other comprehensive income attributable
to changes in own credit risk reclassified to
consolidated reserves
Share of changes in equity-accounted entities
Net income for 2021
Other variations
(6 )
(6 )
(6 )
EQUITY AT 31 DECEMBER 2021
(567 )
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS -
€ million
Non-controlling interests
Total consoli-
dated equity
Capital,
associated
reserves
and
income
Other comprehensive income
Total equity
Other com-
prehensive
income on
items that may
be reclassified
to profit and
loss
Other com-
prehensive
income on
items that will
not be reclas-
sified to profit
and loss
Total other
comprehen-
sive income
Equity at 1
st
January 2020
(4 )
(3 )
Capital increase
Changes in treasury shares held
Issuance / repayment of equity instruments
Remuneration of undated deeply subordinated notes
(264 )
Dividends paid in 2020
(512 )
Impact of acquisitions/disposals on non-controlling
interests
Changes due to share-based payments
Changes due to transactions with shareholders
(273 )
Changes in other comprehensive income
(1 )
(1 )
(1 )
(528 )
Of which other comprehensive income on equity
instruments that will not be reclassified to profit or loss
reclassified to consolidated reserves
Of which other comprehensive income attributable to
changes in own credit risk reclassified to consolidated
reserves
Share of changes in equity-accounted entities
Net income for 2020
Other variations
(89 )
Equity at 31 December 2020
(5 )
(4 )
Appropriation of 2020 net income
Equity at 1
st
January 2021
(5 )
(4 )
Impacts of new accounting standards, IFRIC decisions/
interpretations ¹
Equity at 1
st
January 2021 Restated
(5 )
(4 )
Capital increase
Changes in treasury shares held
Issuance / repayment of equity instruments
Remuneration of undated deeply subordinated notes
(308 )
Dividends paid in 2021
(9 )
(9 )
(1,033 )
Dividends received from Regional Banks and subsidiaries
Impact of acquisitions/disposals on non-controlling
interests
Changes due to share-based payments
Changes due to transactions with shareholders
(9 )
(9 )
Changes in other comprehensive income
Of which other comprehensive income on equity
instruments that will not be reclassified to profit or loss
reclassified to consolidated reserves
Of which other comprehensive income attributable to
changes in own credit risk reclassified to consolidated
reserves
Share of changes in equity-accounted entities
Net income for 2021
Other variations
(4 )
(4 )
(10 )
EQUITY AT 31 DECEMBER 2021
(3 )
(2 )
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Chapter 6 – Consolidated financial statements at 31 December 2021
CONSOLIDATED FINANCIAL STATEMENTS -
2.6. CASH FLOW STATEMENT
The cash flow statement is presented using the indirect method.
Operating activities
are the Crédit Agricole CIB Group’s revenue
generating activities.
Tax inflows and outflows are presented in full within operating
activities.
Investment activities
represent the cash flows involved in
purchases and sales of investments in consolidated and non-
consolidated companies, property, plant and equipment and
intangible assets. This heading includes the strategic equity
investments recognised in “fair value through profit or loss” or
“fair value through other comprehensive income that cannot be
reclassified to profit or loss”.
Financing activities
show the changes linked to financial
structure-related transactions involving shareholders’ equity and
long-term financing.
Net cash flows
attributable to the operating, investment and
financing activities
of discontinued operations
are presented
under separate headings in the cash flow statement.
Net cash and cash equivalents
include cash, amounts due
to and from central banks, and demand accounts (assets and
liabilities) and loans held with credit institutions.
€ million
Notes
31.12.2021
31.12.2020
Pre-tax income
-
Net depreciation and impairment of property, plant & equipment and intangible assets
-
Impairment of goodwill and other fixed assets
-
Net addition to provisions
-
Share of net income of equity-accounted entities
-
Net income (loss) from investment activities
-
(1 )
Net income (loss) from financing activities
-
Other movements
-
(1,396 )
Total non-cash and other adjustment items included in pre-tax income
-
(897 )
Change in interbank items
-
(2,103 )
Change in customer items
-
(5,809 )
Change in financial assets and liabilities
-
(29,998 )
Change in non-financial assets and liabilities
-
(247 )
Dividends received from equity-accounted entities
-
Tax paid
-
(454 )
(290 )
Net change in assets and liabilities used in operating activities
-
(5,144 )
Cash provided (used) by discontinued operations
-
Total net cash flows from (used by) operating activities (A)
-
Change in equity investments ¹
-
(88 )
Change in property, plant & equipment and intangible assets
-
(129 )
(136 )
Cash provided (used) by discontinued operations
-
Total net cash flows from (used by) investment activities (B)
-
(217 )
(102 )
Cash received from (paid to) shareholders ²
-
(256 )
Other cash provided (used) by financing activities ³
-
(390 )
(627 )
Cash provided (used) by discontinued operations
-
Total net cash flows from (used by) financing activities (C)
-
(879 )
Impact of exchange rate changes on cash and cash equivalent (D)
-
(1,169 )
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT (A + B + C + D)
-
Cash and cash equivalents at beginning of period
-
Net cash accounts and accounts with central banks *
-
Net demand loans and deposits with credit institutions **
-
(2,874 )
Cash and cash equivalents at end of period
-
Net cash accounts and accounts with central banks *
-
Net demand loans and deposits with credit institutions **
-
(1,827 )
NET CHANGE IN CASH AND CASH EQUIVALENTS
-
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CONSOLIDATED FINANCIAL STATEMENTS -
Detailed notes contents
NOTE 1: GROUP ACCOUNTING POLICIES AND PRINCIPLES,
ASSESSMENTS AND ESTIMATES APPLIED
......
263
1.1 Applicable standards and comparability
..............
263
1.2 Accounting policies and methods
...................
265
1.3
Consolidation principles and methods
(IFRS 10, IFRS 11 and IAS 28)
.....................
278
NOTE 2: MAJOR STRUCTURAL TRANSACTIONS AND
MATERIAL EVENTS DURING THE PERIOD
.......
281
NOTE 3: FINANCIAL MANAGEMENT, RISK EXPOSURE AND
HEDGING POLICY
...........................
285
3.1 Credit risk
.....................................
285
3.2
Market risk
....................................
301
3.3
Liquidity and financing risk
........................
305
3.4
Hedge accounting
..............................
307
3.5 Operational risks
................................
312
3.6
Capital management and regulatory ratios
...........
312
NOTE 4: NOTES ON NET INCOME AND OTHER
COMPREHENSIVE INCOME
...................
313
4.1
Interest income and expenses
.....................
313
4.2
Net fees and commissions
.......................
313
4.3
Net gains (losses) on financial instruments at fair value
through profit or loss
............................
314
4.4
Net gains (losses) on financial instruments at fair value
through other comprehensive income
...............
315
4.5
Net gains (losses) from the derecognition of financial
assets at amortised cost
.........................
315
4.6
Net income (expenses) on other activities
.............
315
4.7
Operating expenses
.............................
315
4.8 Depreciation, amortisation and impairment of property,
plant & equipment and intangible assets
..............
316
4.9
Cost of risk
....................................
317
4.10
Net gains (losses) on other assets
.................
317
4.11
Income tax charge
.............................
318
4.12
Changes in other comprehensive income
............
319
NOTE 5: SEGMENT REPORTING
......................
322
5.1
Segment reporting by operating segment
.............
322
5.2
Segment reporting by geographic area
...............
323
NOTE 6:
NOTES TO THE BALANCE SHEET
.............
324
6.1
Cash and balances at central banks
.................
324
6.2
Financial assets and liabilities at fair value
through profit or loss
............................
324
6.3
Hedging derivatives
.............................
327
6.4
Financial assets at fair value through other
comprehensive income
..........................
327
6.5
Financial assets at amortised cost
..................
329
6.6
Transferred assets not derecognised or derecognised
with continuing involvement
. . . . . . . . . . . . . . . . . . . . . . .
330
6.7
Exposure to sovereign risk
........................
331
6.8
Financial liabilities at amortised cost
.................
333
6.9
Information on offsetting financial assets and liabilities . . .334
6.10
Current and deferred tax assets and liabilities
.........
335
6.11
Accruals - assets, liabilities and other
...............
336
6.12
Joint ventures and associates
....................
337
6.13
Property, plant & equipment and intangible assets
(excluding goodwill)
............................
338
6.14
Goodwill
.....................................
339
6.15 Provisions
....................................
340
6.16
Subordinated debt
.............................
343
6.17
Equity
.......................................
343
6.18
Non-controlling interests
.........................
345
6.19
Breakdown of financial assets and liabilities
by contractual maturity
..........................
346
NOTE 7:
EMPLOYEE BENEFITS AND OTHER
REMUNERATION
...........................
347
7.1
Breakdown of payroll expenses
....................
347
7.2
Average headcount for the period
..................
347
7.3
Post-employment benefits, defined-contribution plans . . . 347
7.4
Post-employment benefits, defined-benefit plans
.......
347
7.5
Other employee benefits
.........................
349
7.6
Share-based payments
..........................
349
7.7
Remuneration of senior managers
..................
349
NOTE 8:
LEASES
...................................
350
8.1
Leases for which the Group is the lessee
.............
350
8.2
Leases for which the Group is the lessor
.............
351
NOTE 9:
COMMITMENTS GIVEN AND RECEIVED AND
OTHER GUARANTEES
.......................
352
NOTE 10: RECLASSIFICATION OF FINANCIAL
INSTRUMENTS
............................
353
NOTE 11:
FAIR VALUE OF FINANCIAL INSTRUMENTS
....
353
11.1
Fair value of financial assets and liabilities recognised at
amortised cost
................................
354
11.2
Information about financial instruments measured at fair
value
.......................................
356
11.3
Estimated impact of the inclusion of
the margin at inception
..........................
362
NOTE 12: SCOPE OF CONSOLIDATION
AT 31 DECEMBER 2021
.....................
363
12.1
Information on subsidiaries
.......................
363
12.2
Composition of the consolidation scope
.............
364
NOTE 13: NON-CONSOLIDATED INVESTMENTS
AND STRUCTURED ENTITIES
................
367
13.1
Non-consolidated investments
....................
367
13.2
Information on non-consolidated structured entities . . .367
NOTE 14:
EVENTS SUBSEQUENT
TO 31 DECEMBER 2021
.....................
370
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 1: GROUP ACCOUNTING POLICIES AND PRINCIPLES, JUDGEMENTS AND ESTIMATES APPLIED
3.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
NOTE 1: GROUP ACCOUNTING POLICIES AND PRINCIPLES,
ASSESSMENTS AND ESTIMATES APPLIED
1.1 Applicable standards and comparability
Pursuant to EC Regulation No. 1606/2002, the consolidated financial statements have been prepared in accordance with IAS/IFRS and
IFRIC applicable at 31 December 2021 and as adopted by the European Union (carve-out version), by using certain exceptions in the
application of IAS 39 on macro-hedge accounting.
These standards are available on the website of the European Commission at the following address: https://ec.europa.eu/info/
business-economy-euro/company-reporting-and-auditing/company-reporting/financial-reporting_en
The standards and interpretations are the same as those applied and described in the Group’s financial statements at 31 December 2020.
They have been supplemented by the provisions of those IFRS as endorsed by the European Union at 31 December 2021 and that
must be applied in 2021 for the first time.
They cover the following:
Standards, amendments or interpretations
Date of mandatory first-time application:
financial years beginning on or after
Applicable in the Group
Amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
Interest Rate Benchmark Reform – Phase 2
1
st
January 2021
1
Yes
Amendment to IFRS 16
2
nd
Amendment on Covid-19-Related Rent Concessions
1
st
April 2021
Yes
2
1
The Group opted for the early adoption of the amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 regarding interest rate benchmark reform - Phase 2 as from 1 January 2020.
2
Retrospective application on 1
st
January 2021. This amendment had no impact on the financial statements of the Crédit Agricole CIB Group.
1.1.1 BENCHMARK REFORMS
In early 2019, the Crédit Agricole Group implemented a
programme to prepare and manage the transition of benchmarks
for all its activities, with a breakdown into dedicated projects in
each affected entity. This programme is part of the timetables
and standards defined by market work - some of which Crédit
Agricole actively participated in - and the European regulatory
framework (BMR).
In accordance with the recommendations of the national working
groups and the authorities, the Group has focused as much as
possible on switching to alternative indices in anticipation of the
disappearance of benchmarks while aiming to meet the deadlines
set by the marketplace or imposed by the authorities and, as far
as possible, incentive milestones. Significant investments and
a strong mobilisation of the operational teams and business
lines were implemented to adapt the tools and absorb the
workload caused by these transitions, including the modification
of contracts. It should be noted that IT developments have been
highly dependent on the timing of determining the target LIBOR
alternative indices and the emergence of market standards.
The orderly and controlled completion of these transitions has
been ensured by all the actions taken since 2019. In the second
half of 2021, the entities focused their efforts on finalising all
IT developments and intensifying information campaigns and
interactions with customers in order to explain to them more in
detail the transition procedures and continue efforts to prevent
conduct risks.
The work carried out has also enabled the Group’s entities
to manage new RFR product offerings while maintaining its
standards of customer experience and satisfaction.
Transition review at 31/12/2021
For most of the entities and activities concerned, the proactive
transition plans were activated as soon as possible in 2021 with
an intensification in the second half of the year: cash loans/
borrowing between Group entities, customer deposit accounts,
interest rate derivatives offset in bulk via the conversion cycles
of clearing houses in October (EONIA) and in December (LIBOR
excl. USD).
The activation of fallback clauses - considered as a “safety net”
- concerned, on the whole, a smaller proportion of the stock of
contracts impacted by the changes in the benchmark index. For
non-cleared derivatives covered by ISDA, there was increased
use of the ISDA fallback.
For certain scopes of financing contracts and especially for
financing activities in CHF, specific transition procedures have
been adopted. They consist of the use of a final LIBOR fixing in
2021 and the use of the replacement rate from 2022.
At the Crédit Agricole CIB Group level, few contracts could not
be renegotiated before the disappearance of the indices or the
switch to an alternative index by activation of the fallback clause.
This residual stock of contracts concerns either negotiations that
have not been finalised at 31 December 2021 and which are
expected to end in 2022, or contracts that will benefit from the
legislative measures in force if negotiations fail.
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Risk management
In addition to preparing and implementing the replacement of
benchmarks that will disappear or become non-representative
at 31 December 2021 and ensuring compliance with BMR
regulations, the project initiatives also aim to manage and control
the risks inherent in the benchmark transitions, particularly with
regard to financial, operational, legal and compliance aspects and
in particular as regards client protection (prevention of conduct
risk).
For example, on the financial side, the risk of market fragmentation
caused by the use of different types of interest rates (calculation of
a predetermined rate at the beginning of the interest period known
as “forward looking” or post-determined interest rate calculation
known as “backward looking”) and different conventions
according to asset/currency classes may lead to financial risks
for players in the sector. It is nevertheless expected that these
risks, clearly identified within the Group, should tend to reduce
as market standards emerge and that the private sector - with
the support of banks - will be able to manage this fragmentation.
LIBOR USD
In 2022, the transition programme continued, notably to prepare
for the cessation of the publication of the LIBOR USD or its non-
representative effect in June 2023. For the transition of USD
LIBOR, the implementation of a legislative framework will be
confirmed at a later stage by the UK authorities, with the US
authorities having already approved the designation of statutory
replacement rates for contracts governed by New York law.
So that the hedging relationships affected by this interest rate
benchmark reform can be maintained despite the uncertainties
about the timetable and the arrangements for the transition
between the current and future benchmarks, the IASB has
published amendments to IAS 39, IFRS 9 and IFRS 7 in
September 2019 that were adopted by the European Union on
15 January 2020. The Group will apply these amendments as
long as uncertainties about the future of the benchmarks have
an impact on the amounts and payment dates of interest flows
and, as such, considers that all of its hedging contracts, and
mainly those linked to EONIA and LIBOR rates (USD, GBP, CHF
and JPY), are eligible for the relief afforded by the amendments
at 31 December 2021.
At 31 December 2021, the hedging instruments identified as being
affected by the reform, and for which there are still uncertainties,
amount to a nominal value of €75.3 billion.
Other amendments, published by the IASB in August 2020,
complement those published in 2019 and focus on the accounting
consequences of replacing old benchmark interest rates with
other benchmark rates following reforms.
These “Phase 2” modifications mainly concern changes in
contractual cash flows. They allow entities not to derecognise
or adjust the carrying value of financial instruments in order to
take account of the changes required by the reform, but rather
to update the effective interest rate to reflect the change in the
alternative reference rate.
For hedge accounting, entities will not have to dequalify their
hedging relationships when making the changes required by the
reform and subject to economic equivalence.
At 31 December 2021, the breakdown by significant benchmark
index of instruments based on the old benchmark rates, and
which must transition to the new rates before their maturity, is
as follows:
€ million
EONIA
LIBOR USD
LIBOR GBP
LIBOR JPY
LIBOR CHF
LIBOR EUR
Total financial assets (excluding derivatives)
‐
34,053
1,278
148
200
-
Total financial liabilities (excluding derivatives)
‐
6,210
‐
‐
‐
-
Total notional amount of derivatives
‐
2,344,084
1,269
116
‐
-
In the absence of announcements regarding the forthcoming replacement of the EURIBOR, WIBOR and STIBOR indices, these indices
were excluded from the quantitative data provided.
Outstandings in USD LIBOR are those with a maturity date subsequent to 30/06/2023, the date of disappearance or non-representativeness
of tenors DD, 1 month, 3 months, 6 months and 12 months.
For the other indices, contracts switched to the alternative rate by activating the fallback clause were excluded from the scope. As a result,
assets under management in EONIA and CHF LIBOR correspond to contracts whose renegotiation was not finalised at 31 December
2021 and for which there is no provision for recourse to the existing legislation. Outstandings in GBP and JPY LIBOR correspond to
the residual stock of contracts for which renegotiations with customers are in progress and which are expected to end in 2022. These
outstandings could be covered by the European Commission’s system currently in place, should negotiations fail.
For non-derivative financial instruments, exposures correspond to the nominal value of the securities and the outstanding principal of
depreciable instruments.
1.1.2 ACCOUNTING CONSEQUENCES OF THE APRIL 2021 IFRS IC DECISION ON THE ALLOCATION OF POST-
EMPLOYMENT BENEFITS TO SERVICE PERIODS FOR DEFINED-BENEFIT PLANS
In December 2020, the IFRS IC was asked about the methodology
for calculating the actuarial liabilities of defined-benefit plans and
the vesting period for the rights to be used for which the number
of years of seniority giving rise to the award of entitlements is
capped. Following analysis of several approaches, IFRS IC
adopted the approach of matching the maximum period prior to
retirement age and enabling entitlements to be obtained.
The plans concerned by the IFRS IC decision on IAS 19 are
those for which:
y
The allocation of entitlements is subject to the presence in the
company at the time of retirement (with the loss of any right
in the event of early retirement);
y
Entitlements depend on seniority, but are capped from a certain
number of years of service, with the ceiling, at least for certain
employees, being reached largely before retirement.
This decision constitutes a change in method in the approaches
adopted by the Group.
The impact of this decision, which was recorded at 1 January
2021, was €40 million in terms of actuarial liabilities (see Note 7
- Employee benefits and other compensation).
The impact on the financial statements was €40 million in terms
of provisions for employee benefits (see Note 6.15 - Provisions)
and without surplus assets (recorded in Note 6.11 - Accruals)
against shareholders’ equity (impact of €30 million after taking into
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NOTE 1: GROUP ACCOUNTING POLICIES AND PRINCIPLES, JUDGEMENTS AND ESTIMATES APPLIED
account tax effects - See Statement of changes in shareholders’
equity)
At 1 January 2020, the impact on actuarial liabilities would have
been €35 million and the impact on equity €26 million.
Furthermore, when the early application of standards and
interpretations adopted by the European Union is optional over
a period, the option is not used by the Group, unless specifically
stated.
This concerns in particular:
Standards, amendments or interpretations
Date of first-time application:
financial years beginning on or after
Applicable in the Group
Improvements to IFRS cycle 2018-2020
- IFRS 1
First adoption of International Financial Reporting Standards,
- IFRS 9
Financial instruments, and
- IAS 41
Agriculture
1 January 2022
Yes
Amendment to IFRS 3
References to the conceptual framework
1 January 2022
Yes
Amendment to IFRS 16
Sale proceeds before intended use
1 January 2022
Yes
Amendment to IAS 37
Costs to consider when determining if a contract is onerous
1 January 2022
Yes
1.1.3 STANDARDS AND INTERPRETATIONS NOT YET ADOPTED BY THE EUROPEAN UNION AT
31 DECEMBER 2021
The standards and interpretations published by the IASB at 31 December 2021 but not yet adopted by the European Union are not
applicable by the Group. Their application will become mandatory from the date specified by the European Union and they were therefore
not applied by the Group at 31 December 2021.
1.2 Accounting policies and methods
1.2.1 USE OF ASSESSMENTS AND ESTIMATES
IN THE PREPARATION OF THE FINANCIAL
STATEMENTS
By their nature, the assessments necessary for the production
of the consolidated financial statements are based on certain
assumptions and are subject to risks and uncertainties relating
to their future occurrence.
Future achievements can be influenced by a number of factors,
including:
y
domestic and international market activities;
y
fluctuations in interest and exchange rates;
y
economic and political conditions in certain business sectors
or countries;
y
changes in regulations or legislation.
This is not an exhaustive list.
Accounting estimates that require assumptions are mainly used
for the following valuations:
y
financial instruments measured at fair value;
y
non-consolidated investments;
y
pension plans and other future employee benefits;
y
stock options plans;
y
impairment of debt instruments at amortised cost or at fair value
through other comprehensive income that may be reclassified
to profit or loss;
y
provisions;
y
goodwill impairment;
y
deferred tax assets;
y
the valuation of companies accounted for by the equity method;
y
deferred profit-sharing.
The procedures for using judgements or estimates are set out in
the relevant paragraphs below.
1.2.2 FINANCIAL INSTRUMENTS
(IFRS 9, IAS 32 AND 39)
Definitions
IAS 32 defines a financial instrument as any contract that gives
rise to a financial asset of one entity and a financial liability or
equity instrument of another entity, i.e. any contract representing
a contractual right or obligation to receive or deliver cash or
another financial asset.
Derivative instruments are financial assets or liabilities whose value
changes in line with that of an underlying, which require a low
or zero initial investment, and which are settled at a future date.
Financial assets and liabilities are treated in the financial statements
in accordance with the provisions of IFRS 9 as adopted by the
European Union, including financial assets held by the Group’s
insurance entities.
IFRS 9 sets out the principles for the classification and
measurement of financial instruments, impairment/provisioning
of credit risk and hedge accounting, excluding macro-hedges.
However, it is specified that Crédit Agricole CIB uses the option
not to apply the general hedging model of IFRS 9. As a result, all
hedging relationships remain within the scope of IAS 39 pending
future macro-hedging provisions.
“Green financial assets” and “green bonds” comprise a variety of
instruments, including loans to finance environmental projects.
It should be noted that not all financial instruments subject to
this qualification necessarily have a variable remuneration based
on ESG criteria. This terminology may change depending on
future European regulations. These instruments are recognised
in accordance with IFRS 9 in accordance with the principles set
out below.
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NOTE 1: GROUP ACCOUNTING POLICIES AND PRINCIPLES, JUDGEMENTS AND ESTIMATES APPLIED
Conventions for measuring financial assets and
liabilities
INITIAL MEASUREMENT
On initial recognition, financial assets and liabilities are measured
at fair value as defined by IFRS 13.
Fair value as defined by IFRS 13 is the price that would be
received for the sale of an asset or paid for the transfer of a liability
in an ordinary transaction between market participants, in the
principal or most advantageous market, at the measurement date.
SUBSEQUENT MEASUREMENT
After initial recognition, financial assets and liabilities are measured
according to their classification either at amortised cost using
the effective interest rate (EIR) method for debt instruments, or
at their fair value as defined by IFRS 13. Derivatives are always
measured at fair value.
Amortised cost corresponds to the amount at which the financial
asset or financial liability is measured on initial recognition,
including transaction costs directly attributable to its acquisition
or issue, less principal repayments, plus or minus the accumulated
amortisation - calculated using the effective interest method - of
any difference (discount or premium) between the initial amount
and the amount at maturity. In the case of a financial asset at
amortised cost or at fair value through other comprehensive
income that may be reclassified to profit or loss, the amount may
be adjusted if necessary for impairment losses (see paragraph
“Provision for credit risk”).
The effective interest rate (EIR) is the rate that exactly discounts
the future cash outflows or receipts planned over the expected
life of the financial instrument or, as the case may be, over a
shorter period in order to obtain the net book value of the financial
asset or liability.
Financial assets
CLASSIFICATION AND MEASUREMENT OF
FINANCIAL ASSETS
Non-derivative financial assets (debt or equity instruments) are
classified in the balance sheet in accounting categories that
determine their accounting treatment and their subsequent
valuation mode.
The criteria for the classification and measurement of financial
assets depend on the nature of the financial assets, according
to whether they are qualified as:
y
debt instruments (for example fixed or determinable-income
securities and loans); or
y
equity instruments (for example, shares).
These financial assets are classified in one of the following three
categories:
y
financial assets at fair value through profit or loss;
y
financial assets at amortised cost (debt instruments only);
y
financial assets at fair value through other comprehensive
income (for debt instruments, that may be reclassified to profit
or loss; for equity instruments, that cannot be reclassified to
profit or loss).
DEBT INSTRUMENTS
The classification and measurement of a debt instrument depends
on two criteria: the business model defined at the portfolio level
and the analysis of contractual characteristics determined by debt
instrument, unless the fair value option is used.
The three business models:
The business model is representative of Crédit Agricole CIB’s
management strategy for managing its financial assets, in order
to achieve its objectives. The business model is specified for a
portfolio of assets and does not constitute an intention on a case-
by-case basis for an isolated financial asset.
There are three business models:
y
The “hold to collect” model, the objective of which is to collect
contractual cash flows over the life of the assets; this model
does not systematically involve holding all of the assets until
their contractual maturity; however, the sale of assets is strictly
controlled;
y
The “hold to collect and sell” model, the objective of which is
to collect cash flows over the life of the asset and to dispose
of the assets; under this model, the sale of financial assets and
the collection of cash flows are both essential; and
y
The “other/sell” model, the main objective of which is to sell
the assets.
In particular, it concerns portfolios whose objective is to collect
cash flows through disposals, portfolios whose performance
is assessed on the basis of its fair value, and portfolios of
financial assets held for trading.
When the strategy followed by management for the manage-
ment of financial assets does not correspond to the “hold to
collect” or “collect and sell” model, these financial assets are
classified in a portfolio with an “other/sell” business model.
Contractual characteristics (“Solely Payments of
Principal & Interest” or “SPPI” test):
The SPPI test combines a set of criteria, examined cumulatively,
to determine whether the contractual cash flows meet the
characteristics of a simple financing (principal repayments and
interest payments on the principal amount outstanding).
The conditions for the test are met when the financing is eligible
only for the repayment of the principal and when the payment
of interest received reflects the time value of money, the credit
risk associated with the instrument, the other costs and risks of
a traditional loan agreement and a reasonable margin, whether
the interest rate is fixed or variable.
In simple financing, interest represents the cost of time, the price
of credit and liquidity risk over the period, and other components
related to the cost of carrying the asset (e.g. administrative costs,
etc.).
In some cases, this qualitative analysis does not make it possible
to conclude, a quantitative analysis (or Benchmark text) is carried
out. This additional analysis consists of comparing the contractual
cash flows of the asset under consideration and the cash flows
of a reference asset.
If the difference between the cash flows of the financial asset
and that of the reference is considered immaterial, the asset is
considered as a simple financing.
In addition, a specific analysis will be carried out in the event that
the financial asset is issued by special purpose entities setting an
order of priority for payment among the holders of the financial
assets by contractually linking multiple instruments and creating
concentrations of credit risk (“tranches”).
Each tranche is assigned a subordination ranking which specifies
the order of distribution of the cash flows generated by the
structured entity.
In this case, the SPPI test requires an analysis of the contractual
cash flow characteristics of the asset in question and the
underlying assets according to the look-through approach and
the credit risk borne by the subscribed tranches compared to the
credit risk of the underlying assets.
The accounting method for debt instruments resulting from the
qualification of the business model coupled with the SPPI test
can be presented in the form of the diagram below:
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DEBT
INSTRUMENTS
BUSINESS MODELS
COLLECT
COLLECT
AND SELL
OTHER/
SELL
SPPI
TEST
SATISFIED
Amortised
cost
Fair value
through other
comprehen-
sive income
that can be
reclassified to
profit or loss
Fair value
through
profit or
loss
(SPPI test
N/A)
NON
SATISFIED
Fair value
through
profit or
loss
Fair value
through
profit or loss
Debt instruments at amortised cost
Debt instruments are measured at amortised cost if they are
eligible for the “hold to collect” model and if they meet the
conditions of the SPPI test.
They are recorded at the settlement date and their initial valuation
also includes accrued coupons and transaction costs.
The amortisation of any premiums/discounts and transaction
costs of loans and receivables and fixed-income securities is
recognised in profit or loss using the effective interest rate method.
This category of financial instruments is subject to ECL (Expected
Credit Loss) adjustments under the conditions described in the
specific paragraph “Impairment/provision for credit risk”.
Debt instruments at fair value through other
comprehensive income that can be reclassified
Debt instruments are measured at fair value through other
comprehensive income on items that can be reclassified to profit
or loss if they are eligible for the collect and sell model and if they
meet the conditions of the SPPI test.
They are recorded at the trade date and their initial valuation also
includes accrued coupons and transaction costs. Amortisation
of any premiums or discounts and transaction costs on fixed-
income securities is recognised in profit or loss using the effective
interest rate method.
These financial assets are subsequently measured at fair value
and changes in fair value are recognised in other comprehensive
income that may be reclassified to profit or loss with an offsetting
entry in outstandings (excluding accrued interest recognised in
profit or loss using the effective interest rate method).
In the event of a disposal, these changes are transferred to profit
or loss.
This category of financial instruments is subject to ECL
adjustments under the conditions described in the specific
paragraph “Impairment/provision for credit risk” (without this
affecting the fair value on the balance sheet).
Debt instruments at fair value through profit or loss
Debt instruments are measured at fair value through profit or loss
in the following cases:
y
The instruments are classified in portfolios consisting of financial
assets held for trading or whose main objective is disposal;
Financial assets held for trading are assets acquired or gener-
ated by the company primarily for the purpose of selling them
in the short term or that are part of a portfolio of instruments
jointly managed for the purpose of making a profit related to
short-term price fluctuations or an arbitrage margin. Although
contractual cash flows are received during the time that Crédit
Agricole CIB holds the assets, the collection of these contractual
cash flows is not essential but ancillary.
y
Debt instruments that do not meet the SPPI test criteria. This
is particularly the case for UCIs (Undertakings for Collective
Investment);
y
Financial instruments classified in portfolios for which Crédit
Agricole CIB chooses fair value measurement in order to reduce
a difference in accounting treatment in the income statement. In
this case, they are designated at fair value through profit or loss.
Financial assets measured at fair value through profit or loss
are initially recognised at fair value, excluding transaction costs
(directly recorded in profit or loss) and including accrued interest.
They are subsequently measured at fair value and changes in fair
value are recognised in profit or loss under Net Banking Income
(NBI), with an offsetting entry in outstandings. Interest on these
instruments is recognised under “Net gains or losses on financial
instruments at fair value through profit or loss”.
This category of financial assets is not subject to impairment in
respect of credit risk.
Debt instruments measured at fair value through profit or loss by
type (if the SPPI test fails) or whose business model is “Other/sell”
are recorded on the balance sheet at the settlement-delivery date
and are subject to an off-balance sheet entry at the trade date.
Debt instruments measured at fair value through profit or loss are
recorded at the trade date.
EQUITY INSTRUMENTS
Equity instruments are recognised at fair value through profit or
loss by default, unless they are irrevocable for classification and
measurement at fair value through other comprehensive income
that cannot be reclassified to profit or loss, provided that these
instruments are not held for trading.
Equity instruments at fair value through profit or loss
Financial assets measured at fair value through profit or loss
are initially recognised at fair value, excluding transaction costs
(directly recognised in profit or loss). Equity instruments held
for trading are recorded at the trade date. Equity instruments
measured at fair value through profit or loss and not held for
trading are recorded at the settlement-delivery date.
They are subsequently measured at fair value and changes in fair
value are recognised in profit or loss under Net Banking Income
(NBI), with an offsetting entry in outstandings.
This category of financial assets is not subject to impairment.
Equity instrument recognised at fair value through
other comprehensive income that cannot be
reclassified to profit or loss (by irrevocable option)
The irrevocable option to recognise equity instruments at fair value
through other comprehensive income that cannot be reclassified
to profit or loss is used at the transactional level (line by line)
and applies at the initial recognition date. These securities are
recorded at the trade date.
The initial fair value includes transaction costs.
In subsequent measurements, changes in fair value are recognised
in other comprehensive income that cannot be reclassified to profit
or loss. In the event of disposal, these changes are not reclassified
to profit or loss; the gain or loss on disposal is recognised in other
comprehensive income.
Only dividends are recognised in profit or loss if:
y
the entity’s right to receive payment is established;
y
it is likely that the economic benefits associated with dividends
will flow to the entity;
y
the amount of dividends can be reliably measured.
This category of financial assets is not subject to impairment.
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RECLASSIFICATION OF FINANCIAL ASSETS
In the event of a significant change in the business model in
the management of financial assets (new activity, acquisition of
entities, disposal or abandonment of a significant activity), these
financial assets must be reclassified. The reclassification applies
to all financial assets in the portfolio from the reclassification date.
In other cases, the business model remains unchanged for
existing financial assets. If a new business model is identified, it
applies prospectively to new financial assets, grouped into a new
management portfolio.
TEMPORARY PURCHASES AND SALES OF
SECURITIES
Temporary sales of securities (securities lending, securities
sold under repurchase agreements) do not generally meet the
conditions for derecognition.
Securities lent or repurchased are maintained on the balance
sheet. In the case of repurchased securities, the amount received,
representing the debt to the transferee, is recorded on the
liabilities side of the balance sheet by the transferor.
Securities borrowed or received under reverse repurchase
agreements are not recorded on the transferee’s balance sheet.
In the case of repurchased securities, a receivable in respect
of the transferor is recorded on the transferee’s balance sheet
against the amount paid. In the event of subsequent resale of
the security, the transferee recognises a liability measured at fair
value in respect of its obligation to return the security under the
repurchase agreement.
Repurchase and reverse repurchase agreements are recognised
at fair value through profit or loss when they are part of the trading
activity (managed activity whose performance is measured on the
basis of fair value), or at amortised cost.
DERECOGNITION OF FINANCIAL ASSETS
A financial asset (or group of financial assets) is derecognised in
whole or in part:
y
when the contractual rights to the cash flows linked to it expire;
y
or are transferred or treated as such because they belong de
facto to one or more beneficiaries; and when substantially all
the risks and rewards of the financial asset are transferred.
In this case, all rights and obligations created or retained at the
time of the transfer are recognised separately as assets and
liabilities.
When the contractual rights to the cash flows are transferred but
only a portion of the risks and rewards, as well as control, are
retained, Crédit Agricole CIB continues to recognise the financial
asset to the extent of its continuing involvement in that asset.
Financial assets renegotiated for commercial reasons in the
absence of financial difficulties of the counterparty and for the
purpose of developing or maintaining a business relationship
are derecognised at the renegotiation date. New loans granted
to customers are recorded at fair value at the renegotiation date.
Subsequent recognition depends on the business model and
the SPPI test.
Financial liabilities
CLASSIFICATION AND MEASUREMENT OF
FINANCIAL LIABILITIES
Financial liabilities are classified in the balance sheet in the
following two accounting categories:
y
financial liabilities at fair value through profit or loss, by type
or by option;
y
financial liabilities at amortised cost.
FINANCIAL LIABILITIES AT FAIR VALUE
THROUGH PROFIT OR LOSS BY TYPE
Financial instruments issued primarily for the purpose of being
redeemed in the short term, instruments that are part of a portfolio
of identified financial instruments that are managed together and
which show evidence of a recent short-term profit-taking profile,
and derivatives (with the exception of certain hedging derivatives)
are measured at fair value by type.
Changes in the fair value of this portfolio are recognised through
profit or loss.
FINANCIAL LIABILITIES AT FAIR VALUE
THROUGH PROFIT OR LOSS BY OPTION
Financial liabilities corresponding to one of the three cases defined
by the standard below may be designated for measurement at
fair value through profit or loss: hybrid issues including one or
more separable embedded derivatives, reduction or elimination of
accounting mismatches or groups of managed financial liabilities
for which performance is measured at fair value.
This option is irrevocable and must be applied at the date of initial
recognition of the instrument.
On subsequent measurements, these financial liabilities are
measured at fair value through profit or loss for changes in
fair value not related to own credit risk and against other
comprehensive income that cannot be reclassified to profit or
loss for changes in value related to own credit risk unless this
aggravates the accounting mismatch (in which case changes in
value related to own credit risk are recognised in profit or loss,
as required by the standard).
Issues structured by Crédit Agricole CIB are classified as financial
liabilities designated at fair value through profit or loss. These
liabilities are part of portfolios of assets and liabilities managed
at fair value and whose performance is measured on a fair value
basis. In accordance with IFRS 13, their fair value measurement
includes the change in the Group’s own credit risk.
FINANCIAL LIABILITIES EVALUATED AT
AMORTISED COST
All other liabilities that meet the definition of a financial liability
(excluding derivatives) are measured at amortised cost.
These liabilities are recognised at fair value at initial recognition
(including transaction income and costs) and are subsequently
recognised at amortised cost using the effective interest rate
method.
RECLASSIFICATION OF FINANCIAL LIABILITIES
The initial classification of financial liabilities is irrevocable. No
subsequent reclassification is permitted.
DISTINCTION BETWEEN DEBT AND
SHAREHOLDERS’ EQUITY
The distinction between debt and equity instruments is based
on an analysis of the economic substance of the contractual
arrangements.
A financial liability is a debt instrument if it includes a contractual
obligation to:
y
deliver cash, another financial asset or a variable number of
equity instruments to another entity; or
y
exchange financial assets and liabilities with another entity
under potentially unfavourable conditions.
An equity instrument is a non-refundable financial instrument
which offers discretionary return representing a residual interest
in an undertaking after deduction of all its financial liabilities (net
assets) and which is not qualified as a debt instrument.
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DERECOGNITION AND MODIFICATION OF
FINANCIAL LIABILITIES
A financial liability is derecognised in whole or in part:
y
when it is extinguished; or
y
where the quantitative or qualitative analyses conclude that it
has been substantially modified in the event of a restructuring.
A substantial change in an existing financial liability shall be
recorded as an extinguishment of the original financial liability
and the recognition of a new financial liability (the novation). Any
difference between the carrying amount of the extinguished liability
and the new liability will be recognised immediately in the income
statement.
If the financial liability is not derecognised, the original effective
interest rate is maintained. A discount/premium is recognised
immediately in the income statement at the date of modification
and then spread out at the initial effective interest rate over the
residual life of the instrument.
Negative interest on financial assets and
liabilities
In accordance with the January 2015 IFRS IC decision, negative
interest income (expenses) on financial assets that do not meet
the definition of income within the meaning of IFRS 15 are
recognised as interest expenses in the income statement and not
as a reduction in interest income. The same applies to negative
interest expenses (income) on financial liabilities.
Impairment/provisions for credit risk
SCOPE
In accordance with IFRS 9, Crédit Agricole CIB recognises a value
adjustment for expected credit losses (ECLs) on the following
outstandings:
y
financial assets of debt instruments at amortised cost or at fair
value through other comprehensive income that may be reclas-
sified to profit or loss (loans and receivables, debt securities);
y
financing commitments that are not measured at fair value
through profit or loss;
y
guarantee commitments falling under IFRS 9 and not measured
at fair value through profit or loss;
y
lease receivables subject to IFRS 16; and
y
trade receivables generated by transactions under IFRS 15.
Equity instruments (at fair value through profit or loss or at fair
value through other comprehensive income that will not be
reclassified to profit or loss) are not affected by the impairment
provisions.
Derivative instruments and other financial instruments measured
at fair value through profit or loss are the subject of a counterparty
risk calculation that is not covered by the ECL model. This
calculation is described in Chapter 5 “Risks and Pillar 3”.
CREDIT RISK AND IMPAIRMENT/PROVISION
STAGES
Credit risk is defined as the risk of losses linked to the default of
a counterparty resulting in its inability to meet its commitments
vis-à-vis the Group.
The credit risk provisioning process distinguishes between three
stages:
y
Stage 1: from the initial recognition of the financial instrument
(loan, debt security, guarantee, etc.), Crédit Agricole CIB rec-
ognises 12-month expected credit losses;
y
Stage 2: if credit quality deteriorates significantly for a given
transaction or portfolio, Crédit Agricole CIB recognises losses
expected at maturity;
y
Stage 3: once one or more default events have occurred on the
transaction or on the counterparty, having an adverse effect on
estimated future cash flows, Crédit Agricole CIB recognises an
incurred credit loss at maturity. Subsequently, if the conditions
for classifying financial instruments in Stage 3 are no longer
met, the financial instruments are reclassified to Stage 2, then
Stage 1 depending on the subsequent improvement in the
quality of credit risk.
As of the closing date of 31 December 2021, the term “Bucket”
used since the transition to IFRS 9 is replaced by the term “Stage”
in all financial statements.
N.B.: this is only a change in terminology, with no impact on the
recognition of credit losses adjustments (ECL).
Definition of default
The definition of default for ECL provisioning purposes is identical
to that used in management and for regulatory ratio calculations.
Thus, a debtor is considered to be in default when at least one
of the following two conditions is met:
y
significant arrears, generally when a payment is more than ninety
days past due, unless specific circumstances point to the fact
that the delay is due to reasons beyond the debtor’s control;
y
Crédit Agricole CIB considers that the debtor is unlikely to
settle its credit obligations in full unless it avails itself of certain
measures such as the enforcement of collateral.
A loan is deemed to be non-performing (Stage 3) when one or
more events have occurred which have a negative effect on the
future estimated cash flows of this financial asset. Evidence of
impairment of a financial asset includes observable data about
the following events:
y
significant financial difficulties for the issuer or borrower;
y
a breach of an agreement, such as a default or late payment;
y
the granting by the lender(s) to the borrower, for economic or
contractual reasons related to the borrower’s financial difficul-
ties, of one or more favours that the lender(s) would not have
considered in other circumstances;
y
an increasing probability of bankruptcy or financial restructuring
of the borrower;
y
the disappearance of an active market for the financial asset
due to financial difficulties;
y
the purchase or the creation of a financial asset with a large
discount, which reflects the credit losses incurred.
It is not necessarily possible to isolate a particular event as the
impairment of the financial asset could result from the combined
effect of several events.
The counterparty in default returns to a performing situation only
after an observation period that confirms that the borrower is no
longer in default (assessment by the Risk Division).
The concept of ECL (Expected Credit Loss)
The ECL is defined as the present value of probability-weighted
estimated credit losses (principal and interest). It is the present
value of the difference between contractual cash flows and
expected cash flows (including principal and interest).
The ECL approach aims to recognise expected credit losses as
soon as possible.
GOVERNANCE AND MEASUREMENT OF ECL
The governance of the IFRS 9 measurement system is based
on the organisation set up under the Basel framework. The
Group Risk Management Department is responsible for defining
the methodological framework and for the supervision of the
mechanism for provisioning exposures.
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The Group relies primarily on the internal rating system and the
current Basel processes to generate the IFRS 9 parameters needed
to calculate expected credit losses. The assessment of changes
in credit risk is based on a model that anticipates losses, and
extrapolation on the basis of reasonable scenarios. All available,
relevant, reasonable and justifiable information, including forward
looking information, must be used.
The calculation formula incorporates probability of default, loss
given default and exposure at default parameters.
These calculations are largely based on internal models used
for prudential monitoring, where they exist, with adjustments to
determine an economic ECL. IFRS 9 recommends an analysis at
the reporting date (Point in Time) while taking into account historical
loss data and forward-looking macroeconomic data, while the
prudential view is analysed through the cycle for the probability of
default and in a downturn for loss in the event of default.
The accounting approach also involves recalculating certain Basel
parameters, in particular to neutralise internal collection costs or
floors imposed by the regulatory authorities for regulatory loss given
default (LGD) calculations.
The methods for calculating expected credit losses are to be
assessed according to the types of products: financial instruments
and off-balance sheet instruments.
The 12-month expected credit loss is a portion of lifetime expected
credit losses, representing the lifetime cash flow shortfall occurring
from a default within 12 months of the reporting date (or a shorter
period if the financial instrument’s expected life is shorter than
12 months), weighted by the probability of default within 12 months.
The expected credit loss is discounted using the effective interest
rate determined on initial recognition of the financial instrument.
The ECL measurement methods take into account assets pledged
as collateral and other credit enhancements that form part of the
contractual terms and conditions and which Crédit Agricole CIB
does not recognise separately. The estimation of the expected cash
flow shortfalls from a guaranteed financial instrument reflects the
amount and timing of the recovery of the guarantees. In accordance
with IFRS 9, the recognition of guarantees and collateral does not
affect the assessment of a significant increase in credit risk: this
is based on changes in the debtor’s credit risk without taking into
account guarantees.
Backtesting of models and parameters used is carried out at least
on a yearly basis.
Forward-looking macro-economic data are taken into account in
a methodological framework applicable at two levels:
y
at the Group level, in determining a shared framework for taking
into account forward looking data in the projection of PD and
LGD parameters over the transaction amortisation period;
y
at the level of each entity with regard to its own portfolios.
SIGNIFICANT DETERIORATION OF THE CREDIT
RISK
All Group entities must assess, for each financial instrument, the
increase in credit risk since initial recognition at each reporting
date. This assessment of changes in credit risk leads the entities
to classify their transactions by risk category (Stages).
To determine a significant deterioration, the Group applies a
process with two levels of analysis:
y
a first level using relative and absolute rules and criteria, applied
to Group entities;
y
a second level linked to the expert assessment, based on local
forward-looking information, of the risk held by each entity in its
portfolios that may lead to an adjustment in the Group Stage
2 reclassification criteria (switching a portfolio or sub-portfolio
to ECL at maturity).
Significant deterioration is monitored, with few exceptions, for
every financial instrument. No contagion is required for a financial
instrument from the same counterparty to be transferred from
Stage 1 to Stage 2. Monitoring of the significant deterioration
in credit risk must cover the primary debtor, without taking into
account guarantees, even for transactions guaranteed by the
shareholder.
For exposures comprised of small loans with similar characteristics,
the review by counterparty may be replaced by a statistical estimate
of expected losses.
To measure the significant deterioration in credit risk since initial
recognition, it is necessary to retrieve the internal rating and the
PD (probability of default) applied on initial recognition.
The date of initial recognition refers to the trading date, when Crédit
Agricole CIB becomes a party to the contractual provisions of the
financial instrument. For financing and guarantee commitments,
the date of initial recognition is the date on which the irrevocable
commitment is made.
For the scope not covered by an internal rating model, Crédit
Agricole Group uses amounts past due for more than 30 days as
the ultimate threshold representing a significant deterioration in
credit risk leading to classification in Stage 2.
For exposures (with the exception of securities) for which internal
rating systems have been built (particularly those monitored using
authorised methods), Crédit Agricole Group considers that all of the
information included in the rating systems enables a more relevant
assessment than the sole criteria of arrears of over 30 days.
If the significant deterioration in credit risk since initial recognition is
no longer observed, the impairment can be reclassified to 12-month
expected credit losses (Stage 1).
In order to compensate for the fact that certain factors or indicators
of a significant deterioration are not identifiable at the level of a
financial instrument considered separately, the standard authorises
an assessment of significant deterioration for portfolios, groups of
portfolios or portions of portfolios of financial instruments.
The establishment of portfolios for an assessment of collective
impairment can be based on common characteristics such as:
y
the type of instrument;
y
the credit risk rating (including the Basel II internal rating for
entities with an internal rating system);
y
the type of guarantee;
y
the date of initial recognition;
y
the term to maturity;
y
the sector of activity;
y
the geographic location of the borrower;
y
The value of the asset allocated as a guarantee in relation to
the financial assets, if this has an effect on the probability of
default (for example, in the case of loans guaranteed only by
real security in certain countries, or the loan-to-value ratio);
y
the distribution channel, the purpose of the loan, etc.
The grouping of financial instruments for the purpose of assessing
changes in credit risk on a collective basis may change over time
as new information becomes available.
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For securities, Crédit Agricole CIB uses the approach of applying
an absolute level of credit risk, in accordance with IFRS 9, below
which the exposures will be classified in Stage 1 and impaired on
the basis of a 12-month ECL.
Thus, the following rules will apply to the monitoring of the
significant deterioration in securities:
y
securities rated “Investment Grade” at the reporting date will
be classified in Stage 1 and provisioned on the basis of a
12-month ECL;
y
securities rated “Non-Investment Grade” (NIG), at the reporting
date, must be monitored for significant deterioration since initial
recognition and be classified in Stage 2 (ECL at maturity) in
the event of a significant increase in credit risk.
The relative deterioration must be assessed prior to the occurrence
of a proven default (Stage 3).
RESTRUCTURING DUE TO FINANCIAL
DIFFICULTIES
Debt instruments restructured due to financial difficulties are those
for which Crédit Agricole CIB has changed the initial financial
terms (interest rate, maturity, etc.) for economic or legal reasons
related to the borrower’s financial difficulties, in a manner that
would not have been considered under other circumstances.
As such, they concern all debt instruments, regardless of the
classification category of the debt instrument based on the
increase in credit risk observed since initial recognition.
In accordance with the definition of the EBA (European Banking
Authority) specified in the “Risk Factors” chapter, the restructuring
of debts due to financial difficulties of the debtor corresponds to all
changes made to one or more credit agreements in this respect,
as well as to refinancing granted due to the financial difficulties
encountered by the client.
This notion of restructuring must be assessed at the level of the
contract and not at the client level (no contagion).
The definition of receivables restructured due to financial difficulties
therefore involves two cumulative criteria:
y
Contractual modifications or refinancing of receivables (where
concessions are granted);
y
A client in financial difficulty (a debtor experiencing, or about to
experience, difficulties in meeting their financial commitments).
For example, “contract modification” refers to situations in which:
y
There is a difference between the contractual modifications and
the former terms of the contract, to the benefit of the borrower;
y
The amendments to the contract lead to more favourable terms
for the borrower in question than could have been obtained
from other borrowers of the bank with a similar risk profile at
the same time.
“Refinancing” refers to situations in which a new debt is granted
to the client in order to enable it to repay all or part of any other
debt for which it cannot assume the contractual terms due to its
financial situation.
The restructuring of a loan (performing or in default) indicates
presumption of a proven risk of loss (Stage 3).
The need to establish impairment on the restructured exposure
must therefore be analysed accordingly (a restructuring does not
systematically result in the recognition of impairment for incurred
loss and classification in default).
The classification as “restructured debt” is temporary.
As soon as the restructuring operation within the meaning of the
EBA has been carried out, the exposure maintains this status of
“restructured” for a period of at least two years if the exposure
was performing at the time of the restructuring, or three years if
the exposure was in default at the time of the restructuring. These
periods are extended if certain events occur (new incidents, for
example).
In the absence of a derecognition linked to this type of event, the
reduction of future cash flows granted to a counterparty, or the
postponing of these flows as part of a restructuring, results in the
recognition of a discount in the cost of risk.
It is equal to the difference between:
y
The carrying amount of the receivable;
y
And the sum of theoretical future cash flows from the “restruc-
tured” loan, discounted at the original effective interest rate
(defined at the date of the financing commitment).
In the event of the abandonment of part of the capital, this amount
constitutes a loss to be recorded immediately in cost of risk.
The discount recognised when a loan is restructured is recorded
under cost of risk.
When the discount is reversed, the portion due to the effect of the
passage of time is recorded in “Net Banking Income”.
IRRECOVERABILITY
When a loan is deemed irrecoverable, meaning that there is no
longer any hope to recover it in whole or in part, the balance sheet
should be derecognised and the amount deemed irrecoverable
should be written off as a loss.
Decisions as to when to write off a loan are taken on the basis
of expert judgement. Each entity determines this with the Risk
Department, based on its knowledge of the borrower’s activity.
Before any write-off, a Stage 3 impairment must have been
recorded (with the exception of assets at fair value through profit
or loss).
Derivative instruments
CLASSIFICATION AND MEASUREMENT
Derivative instruments are financial assets or liabilities classified
by default as derivative instruments held for trading unless they
can be qualified as hedging derivatives.
They are recorded on the balance sheet at their initial fair value
at the trade date.
They are subsequently measured at fair value.
At each reporting date, the contra entry for changes in the fair
value of derivatives on the balance sheet is recorded:
y
In profit or loss for derivatives held for trading or fair value
hedges;
y
In other comprehensive income that may be reclassified to
profit or loss, if they are cash flow hedging derivatives or a
net investment in a foreign operation, for the effective portion
of the hedge.
HEDGE ACCOUNTING
General framework
In accordance with the Group’s decision, Crédit Agricole CIB
does not apply the “hedging accounting” component of IFRS 9
according to the option provided by the standard. All hedging
relationships remain documented in accordance with the rules
of IAS 39, at the latest until the date of application of the macro-
hedging text when it is adopted by the European Union. However,
the eligibility of financial instruments for hedge accounting under
IAS 39 takes into account the classification and measurement
principles of IFRS 9.
Under IFRS 9, and taking into account the hedging principles
of IAS 39, debt instruments at amortised cost and at fair value
through other comprehensive income that may be reclassified
to profit or loss are eligible for fair value hedges and cash flow
hedges.
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Documentation
Hedging relationships must comply with the following principles:
y
Fair value hedges aim to protect against exposure to changes in
the fair value of a recognised asset or liability or an unrecognised
firm commitment attributable to the hedged risk(s) that may
affect profit or loss (for example, hedge of all or part of changes
in fair value due to interest rate risk on a fixed-rate debt);
y
Cash flow hedges aim to provide protection against exposure
to changes in the future cash flows of a recognised asset or
liability or a highly probable planned transaction, attributable
to the hedged risk(s) and that may or could (in the case of
a planned but unrealised transaction) affect profit or loss (for
example, hedging of changes in all or part of future interest
payments on variable-rate debt);
y
The purpose of hedging a net investment in a foreign operation
is to protect against the risk of adverse changes in the fair
value associated with the foreign exchange risk of an invest-
ment made abroad in a currency other than the euro, the
presentation currency of Crédit Agricole CIB.
For hedging purposes, the following conditions must also be met
in order to benefit from hedge accounting:
y
The hedging instrument and the hedged item must be eligible;
y
There must be formal documentation from the outset, including
in particular the individual identification and characteristics of
the hedged item, the hedging instrument, the nature of the
hedging relationship and the nature of the hedged risk;
y
The effectiveness of the hedge must be demonstrated, from the
outset and retrospectively, by testing at each reporting date.
For interest rate risk hedges on a portfolio of financial assets or
financial liabilities, the Crédit Agricole Group favours fair value
hedging documentation as permitted by IAS 39, adopted by the
European Union (the so-called “carve out” version). In particular:
y
The Group documents these hedging relationships on the basis
of a gross position in derivatives and hedged items;
y
The effectiveness of the hedging relationships is measured by
maturity schedules.
Details on the Group’s risk management strategy and its
application are provided in Chapter 5 “Risks and Pillar 3”.
Assessment
The revaluation of the derivative at fair value is recognised as
follows:
y
fair value hedges: the revaluation of the derivative and the
revaluation of the hedged item in the amount of the hedged
risk are recorded symmetrically in profit or loss. Only the inef-
fective portion of the hedge is recognised in net profit or loss;
y
cash flow hedges: the revaluation of the derivative is recognised
on the balance sheet with a contra entry in a specific account
for gains and losses recognised directly in other comprehen-
sive income that may be reclassified to profit or loss for the
effective portion, and the ineffective portion of the hedge is
recognised in profit or loss where applicable. Gains or losses
on the derivative accumulated in other comprehensive income
are subsequently reclassified to profit or loss at the time the
hedged cash flows are realised;
y
hedge of a net investment in a foreign operation: the revalu-
ation of the derivative is recorded on the balance sheet with
an offsetting entry in other comprehensive income that will be
reclassified to profit or loss and the ineffective portion of the
hedge is recognised in profit or loss.
When the conditions for hedge accounting are no longer met,
the following accounting treatment must be applied prospectively,
except in the event of the disappearance of the hedged item:
y
fair value hedges: only the derivative continues to be remeas-
ured through profit or loss. The hedged item is fully recognised
in accordance with its classification. For debt instruments at
fair value through other comprehensive income that may be
reclassified to profit or loss, changes in fair value after the end
of the hedging relationship are recorded in other comprehensive
income in full. For hedged items measured at amortised cost,
which were hedged against interest rate risk, the revaluation
difference is amortised over the remaining life of these hedged
items;
y
cash flow hedges: the hedging instrument is measured at fair
value through profit or loss. The amounts accumulated in other
comprehensive income under the effective portion of the hedge
remain in other comprehensive income until the hedged flows
of the hedged item affect profit or loss. For items that were
hedged against interest rates, income is allocated as interest
is paid. The revaluation difference is amortised in practice over
the remaining life of these hedged items;
y
net investment hedge of a foreign operation: The amounts
accumulated in other comprehensive income under the effective
portion of the hedging remain in other comprehensive income
while the net investment is held. The income is recognised
when the net investment in a foreign operation exits the scope
of consolidation.
EMBEDDED DERIVATIVES
An embedded derivative is a component of a hybrid contract
that meets the definition of a derivative product. This designation
applies only to financial liabilities and non-financial contracts. The
embedded derivative must be accounted for separately from the
host contract if the following three conditions are met:
y
the hybrid contract is not measured at fair value through profit
or loss;
y
separate from the host contract, the embedded item has the
characteristics of a derivative;
y
the characteristics of the derivative are not closely related to
those of the host contract.
Determination of the fair value of financial
instruments
The fair value of financial instruments is determined by maximising
the use of observable inputs. It is presented according to the
hierarchy defined in IFRS 13.
IFRS 13 defines fair value as the price that would be received
for the sale of an asset or paid for the transfer of a liability in an
ordinary transaction between market participants on the principal
or the most advantageous market, at the valuation date.
Fair value applies to each individual financial asset or financial
liability. As an exception, it may be estimated by portfolio if the risk
management and monitoring strategy so allow and are subject
to appropriate documentation. Thus, certain fair value inputs are
calculated on a net basis when a group of financial assets and
financial liabilities is managed on the basis of its net exposure to
market or credit risks.
Crédit Agricole CIB considers that the best indication of fair value
is the reference to quoted prices in an active market.
In the absence of such quotations, fair value is determined using
valuation techniques that maximise the use of relevant observable
data and minimise the use of unobservable inputs.
When a debt is measured at fair value through profit or loss (by
type or using the option), the fair value takes into account the
issuer’s own credit risk.
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FAIR VALUE OF STRUCTURED ISSUES
In accordance with IFRS 13, Crédit Agricole CIB values its
structured issues measured at fair value by taking as a reference
the issuer spread that specialised parties agree to receive in order
to acquire new issues from the Group.
COUNTERPARTY RISK ON DERIVATIVE
INSTRUMENTS
Crédit Agricole CIB incorporates into fair value the assessment of
counterparty risk for derivative assets (Credit Valuation Adjustment
or CVA) and, using a symmetrical treatment, the non-performance
risk for derivative liabilities (Debit Valuation Adjustment or DVA or
own credit risk).
The CVA is used to determine the expected losses on the
counterparty from the perspective of the Crédit Agricole Group,
and the DVA, the expected losses on the Crédit Agricole Group
from the perspective of the counterparty.
The CVA/DVA is calculated on the basis of an estimate of expected
losses based on the probability of default and loss given default.
The methodology used maximises the use of observable market
inputs. It is primarily based on market data such as registered and
listed Credit Default Swaps (CDS), Single Name CDS, or index
CDS in the absence of registered CDS on the counterparty. In
certain circumstances, historical default data may also be used.
COSTS AND BENEFITS RELATED TO
DERIVATIVES FINANCING
The value of non-collateralised or partially collateralised derivative
instruments incorporates a Funding Value Adjustment (FVA) that
represents costs and benefits related to the financing of these
instruments. This adjustment is measured based on positive
or negative future exposure of transactions for which a cost of
financing is applied.
FAIR VALUE HIERARCHY
IFRS 13 classifies fair values into three levels based on the
observability of inputs used in the valuation.
Level 1: fair values corresponding to prices (non-
adjusted) in active markets
Level 1 presents financial instruments directly quoted on active
markets for identical assets and liabilities to which Crédit Agricole
CIB may have access at the valuation date. These include equities
and bonds listed on an active market (such as the Paris Stock
Exchange, the London Stock Exchange, the New York Stock
Exchange, etc.), units of investment funds listed on an active
market and derivatives contracted on an organised market,
including futures.
A market is regarded as being active if quoted prices are readily
and regularly available from an exchange, broker, dealer, pricing
service or regulatory agency, and these prices represent actual
transactions regularly occurring in the market on an arm’s length
basis.
For financial assets and liabilities with offsetting market risks,
Crédit Agricole CIB uses mid-prices as a basis for establishing
fair values for the offsetting risk positions. For net short positions,
the market values used are those at current asking price and for
net long positions, current bid prices.
Level 2: fair values measured using directly or
indirectly observable data, other than Level 1 inputs
These data are directly observable (prices) or indirectly observable
(price derivative data) and generally meet the following criteria:
these data are not specific to Crédit Agricole CIB, are available/
accessible to the public and are based on a market consensus.
The following are presented in level 2:
y
equities and bonds listed on an inactive market, or not quoted
on an active market, but for which fair value is determined using
a valuation method commonly used by market participants
(such as discounted cash flow methods, the Black & Scholes
model) and based on observable market data;
y
over-the-counter instruments for which valuation is carried
out using models based on observable market data, i.e., that
can be obtained from several sources independent of internal
sources and on a regular basis. For example, the fair value of
interest rate swaps is generally determined using yield curves
based on market interest rates observed at the reporting date.
When the models used are based in particular on standard models
and on observable market inputs (such as yield curves or implicit
volatility tables), the initial margin generated on the instruments
thus valued is recognised in profit or less at inception.
Level 3: fair value that is measured using a significant
portion of unobservable inputs
For some complex instruments that are not traded in an active
market, fair value measurement is based on valuation techniques
using assumptions that cannot be observed on the market for an
identical instrument. These products are presented in Level 3.
This mainly concerns complex fixed income products, equity
derivatives and structured credit products whose valuation
requires, for example, correlation or volatility inputs not directly
comparable to market data.
The initial transaction price is deemed to reflect the market value
and recognition of the initial margin is deferred.
The margin generated on these structured financial instruments is
generally recognised in profit or loss over the period during which
the inputs are deemed unobservable. When market data become
“observable,” the remaining margin to be deferred is immediately
recognised in profit or loss.
The methodologies and models for valuing financial instruments
presented in Level 2 and Level 3 incorporate all the factors that
market participants use to calculate a price. They must first be
validated by an independent control. The calculation of the fair
values of these instruments takes into account liquidity risk and
counterparty risk.
Offsetting of financial assets and liabilities
In accordance with IAS 32, Crédit Agricole CIB nets a financial
asset and liability and presents a net balance if and only if it has
a legally enforceable right to offset the recognised amounts and
intends to settle the net amount or to realise the asset and the
liability simultaneously.
Derivatives and repurchase agreements with clearing houses
whose operating principles meet the two criteria required by
IAS 32 are offset on the balance sheet.
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This offsetting effect is presented in the table in Note 6.9 relating
to the amendment to IFRS 7 on disclosures in respect of offsetting
financial assets and financial liabilities.
Net gains (losses) on other assets
NET GAINS (LOSSES) ON FINANCIAL
INSTRUMENTS AT FAIR VALUE THROUGH
PROFIT OR LOSS
For financial instruments measured at fair value through profit or
loss, this item includes the following items of income:
y
dividends and other income from shares and other variable-in-
come securities classified as financial assets at fair value through
profit or loss;
y
changes in the fair value of financial assets or liabilities at fair
value through profit or loss;
y
realised gains and losses on disposals of financial assets at
fair value through profit or loss;
y
changes in fair value and gains or losses on the disposal or
termination of derivative instruments that are not part of a fair
value or cash flow hedge.
This item also includes ineffectiveness resulting from hedging
transactions.
NET GAINS (LOSSES) ON FINANCIAL
INSTRUMENTS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
For financial assets measured at fair value through other
comprehensive income, this item includes the following items
of income:
y
Dividends from equity instruments classified as financial assets
at fair value through other comprehensive income that cannot
be reclassified to profit or loss;
y
Gains and losses on disposal as well as income from the
termination of the hedging relationship on debt instruments
classified as financial assets at fair value through other com-
prehensive income that may be reclassified to profit or loss;
y
Gains or losses on the disposal or termination of fair value
hedging instruments of financial assets at fair value through
other comprehensive income when the hedged item is sold.
Financing commitments and financial guarantees
given
Financing commitments that are not designated as assets at fair
value through profit or loss or that are not treated as derivative
instruments within the meaning of IFRS 9 are not included in
the balance sheet. However, they are subject to provisions in
accordance with IFRS 9.
A financial guarantee arrangement is a contract that requires the
issuer to make specific payments to reimburse its holder for a loss
suffered by the issuer due to the default of a specified debtor who
fails to make a payment on maturity under the initial or amended
terms of a debt instrument.
Financial guarantee contracts are initially measured at fair value
and subsequently at the higher of:
y
the amount of the value adjustment for losses determined in
accordance with the provisions of IFRS 9, the “Impairment”
chapter; or
y
the amount initially recognised less, where applicable, the
accumulated income recognised in accordance with IFRS 15
“Revenue from contracts with customers”.
1.2.3 PROVISIONS (IAS 37 AND 19)
Crédit Agricole CIB identifies the obligations (legal or implied)
resulting from a past event for which it is probable that an outflow
of resources will be required to settle them, and for which the due
date or amount of the settlement is uncertain but can be reliably
estimated. Where applicable, these estimates are updated when
the impact is significant.
In respect of obligations other than those related to credit risk,
Crédit Agricole CIB has set aside provisions covering in particular:
y
operational risks;
y
employee benefits;
y
execution risks of off-balance sheet commitments;
y
disputes and liability guarantees;
y
provisions for tax risks (excluding uncertainties on income tax);
The valuation of the following provisions may also be estimated:
y
the provision for operational risks whose assessment, although
subject to an examination of identified risks, incorporates
Management’s judgement with regard to incident frequency
and the amount of the potential financial impact
y
provisions for legal risks resulting from Management’s best
assessment, taking into account the information in its pos-
session at the balance sheet date.
Detailed information is provided in Note 6.15 “Provisions”.
1.2.4
EMPLOYEE BENEFITS (IAS 19)
In accordance with IAS 19, employee benefits are grouped into
four categories:
y
short-term benefits, such as salaries, social security contribu-
tions, annual leave, profit-sharing and bonuses, are those that
are expected to be paid within twelve months of the year in
which the services were rendered;
y
post-employment benefits, which themselves fall into two cate-
gories described below: defined-benefit plans and defined-con-
tribution plans;
y
other long-term benefits (work awards, bonuses and com-
pensation payable twelve months or more at the end of the
fiscal year);
y
termination benefits.
POST-EMPLOYMENT BENEFITS
Defined benefit plans
At each closing date, Crédit Agricole CIB determines its pension
obligations and similar benefits as well as all employee benefits
under the defined-benefit plan category.
In accordance with IAS 19, these obligations are measured on
the basis of actuarial, financial and demographic assumptions,
and in accordance with the projected unit credit method. This
method consists in booking a charge for each period of service,
for an amount corresponding to employee’s vested benefits for
the period. This charge is calculated based on the discounted
future benefit.
The calculations relating to pension and future employee benefits
are based on assumptions made by Management with regard to
discount rates, employee turnover rates or changes in salaries
and social security charges. (see Note 7.4 “Post-employment
benefits, defined-benefit plans”).
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The discount rates are determined according to the average
duration of the commitment, that is, the arithmetic average of the
durations calculated between the valuation date and the payment
date weighted by the turnover assumptions. The underlying used
is the discount rate by reference to the iBoxx AA index.
In accordance with IAS 19, Crédit Agricole CIB charges all
actuarial gains and losses recognised in other comprehensive
income that cannot be reclassified to profit or loss. Actuarial
gains and losses consist of experience adjustments (difference
between what was estimated and what happened) and the effect
of changes in actuarial assumptions.
The expected return on plan assets is determined on the basis of
the discount rates used to measure the defined benefit obligation.
The difference between the expected return and the actual return
on plan assets is recognised in gains and losses recognised
directly in other comprehensive income that cannot be reclassified
to profit or loss.
The amount of the provision is equal to:
y
the present value of the defined benefit obligation at the
reporting date, calculated using the actuarial method recom-
mended by IAS 19;
y
less, where applicable, the fair value of the assets allocated to
cover these commitments. These may be represented by an
eligible insurance policy. In the event that the obligation is fully
covered by a policy corresponding exactly, by its amount and
period, to all or part of the benefits payable under the plan,
the fair value of the obligation is considered to be that of the
corresponding obligation (the amount of the corresponding
actuarial liability).
Defined-contribution plans
There are various mandatory pension plans to which employers
contribute. The funds are managed by independent organisations
and the contributing companies have no legal or implied obligation
to pay additional contributions if the funds do not have sufficient
assets to provide all the benefits corresponding to the services
rendered by staff during the current and previous years. As a
result, Crédit Agricole CIB has no liability in this respect other than
the contributions payable for the past financial year.
OTHER LONG-TERM EMPLOYEE BENEFITS
Other long-term employee benefits are benefits payable to
employees, other than post-employment benefits and termination
benefits, but not fully due within twelve months of the end of the
fiscal year in which the related services were rendered.
This includes bonuses and other deferred compensation paid
twelve months or more after the end of the financial year in which
they were earned, but which are not share-based.
The measurement method is similar to that used by the Group
for post-employment benefits falling within the defined benefit
category.
1.2.5 SHARE-BASED PAYMENTS (IFRS 2)
IFRS 2 on share-based and similar payments requires the
measurement of transactions remunerated through share-
based payments and similar payments in the company’s results
and balance sheet. This standard applies to transactions with
employees and more specifically:
y
share-based payment transactions that are settled in equity
instruments;
y
share-based payment transactions that are settled in cash.
In Crédit Agricole CIB’s accounts, Crédit Agricole S.A. share-
based payment plans recognised in accordance with IFRS 2 are
only cash settled transactions.
Options granted are measured at fair value on grant using the
Black & Scholes model. These are recognised as an expense
under Personnel expenses, with an offsetting entry in an equity
account over the vesting period.
Subscriptions for shares offered to employees under the Company
Savings Scheme are also subject to the provisions of IFRS 2. The
shares are offered at a maximum discount of 30%. These plans
do not include a vesting period but are subject to a five-year
lock-up period. The benefit granted to employees is measured as
the difference between the fair value of the share acquired, taking
into account the non-transferability condition and the acquisition
price paid by the employee at the subscription date multiplied by
the number of shares subscribed.
A description of the method of the plans allocated and the
valuation methods is detailed in Note 7.6 “Share-based
payments”.
1.2.6 CURRENT AND DEFERRED TAXES (IAS 12)
Crédit Agricole CIB is 99.9% owned by Crédit Agricole Group
since 27 December 1996, and some of its subsidiaries belong
to Crédit Agricole S.A.’s tax consolidation group.
In accordance with IAS 12, income tax includes all income tax,
whether due or deferred.
This defines current tax as “the amount of income tax payable
(recoverable) in respect of taxable profit (tax loss) for a financial
year”. Taxable profit is the profit (or loss) of a financial year
determined in accordance with the rules established by the tax
authorities.
The rates and rules applicable to determining the current tax
expense are those in force in each country in which the Group’s
companies are located.
The tax payable relates to any income tax due or receivable and
the payment of which is not contingent on the completion of
future transactions, even if the payment is spread over several
financial years.
Tax due, as long as it is not paid, must be recognised as a liability.
If the amount already paid in respect of the financial year and
previous years exceeds the amount due for those years, the
excess shall be recognised as an asset.
In addition, certain transactions carried out by Crédit Agricole CIB
may have tax consequences not taken into account in determining
the tax payable. Differences between the carrying amount of an
asset or liability and its tax base are classified under IAS 12 as
temporary differences.
The standard requires the recognition of deferred tax in the
following cases:
y
a deferred tax liability must be recognised for all taxable tem-
porary differences between the carrying amount of an asset
or liability in the balance sheet and its tax base, unless the
deferred tax liability arises from:
-
the initial recognition of goodwill;
- the initial recognition of an asset or liability in a transaction
that is not a business combination and does not affect either
the accounting profit or taxable profit (tax loss) at the date of
the transaction.
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y
a deferred tax asset must be recognised for all deductible
temporary differences between the carrying amount of an asset
or liability on the balance sheet and its tax base, insofar as
it is considered probable that a taxable profit, against which
these deductible temporary differences can be allocated, will
be available.
y
a deferred tax asset must also be recognised for the car-
ry-forward of unused tax losses and tax credits insofar as it
is probable that future taxable profits will be available against
which these unused tax losses and tax credits may be allocated.
The tax rates applicable in each country are used as appropriate.
The calculation of deferred taxes is not discounted.
Unrealised taxable capital gains on securities do not generate any
taxable temporary differences between the book value of the asset
and the tax base. They therefore do not give rise to the recognition
of deferred taxes. When the securities in question are classified
as financial assets at fair value through other comprehensive
income, unrealised gains and losses are recognised in other
comprehensive income. Therefore, the tax expense or real
tax savings borne by Crédit Agricole CIB in respect of these
unrealised capital gains or losses is reclassified as a deduction
from these gains.
In France, capital gains on equity investments, as defined by
the French General Tax Code, and subject to the long-term tax
regime, are exempt from corporate tax (with the exception of a
12% share of the capital gain, taxed at the normally applicable
rate). Therefore, unrealised capital gains recognised at the end of
the financial year generate a temporary difference resulting in the
recognition of deferred tax in the amount of this share.
Under IFRS 16 leases, a deferred tax liability is recognised on
the right-of-use and a deferred tax asset on the lease liability for
leases for which the Group is the lessee.
Current and deferred tax is recognised in net income for the year,
except to the extent that the tax is generated:
y
by a transaction or event that is recognised directly in equity, in
the same financial year or in a different financial year, in which
case it is directly debited or credited to equity;
y
or by a business combination.
Deferred tax assets and liabilities are offset if, and only if:
y
Crédit Agricole CIB has a legally enforceable right to offset
current tax assets and liabilities; and
y
deferred tax assets and liabilities relate to income tax levied
by the same tax authority:
(a) on the same taxable entity, or
(b) on different taxable entities that intend to settle the tax
liabilities and assets due on a net basis, or to realise the
assets and settle the liabilities simultaneously, in each future
year in which significant amounts of deferred tax assets or
liabilities are expected to be settled or recovered.
Tax uncertainties relating to the measurement of the amount of
income tax give rise to the recognition of a current tax receivable
or liability when the probability of receiving the asset or paying
the liability is considered more likely than unlikely.
Uncertainty risks in the assessment of taxes are also taken into
account in the valuation of current and deferred tax assets and
liabilities.
IFRIC 23 on the measurement of uncertain tax positions applies
when an entity has identified one or more uncertainties about
the tax positions they have adopted. It also provides details on
their estimates:
y
the analysis must be based on 100% detection of the tax
authorities;
y
the tax risk must be recognised as a liability as soon as it is
more likely than unlikely that the tax authorities will call into
question the treatment adopted, for an amount reflecting the
Management’s best estimate;
y
in the event of a probability of more than 50% reimbursement
by the tax authorities, a receivable must be recognised.
When tax credits on income from securities portfolios and
amounts receivable are effectively used to pay income tax due
for the year, they are recognised under the same heading as the
income with which they are associated. The corresponding tax
charge is kept under the heading “Income tax charge” in the
income statement.
1.2.7 TREATMENT OF FIXED ASSETS
(IAS 16, 36, 38 AND 40)
The Crédit Agricole CIB Group applies component accounting
for all of its property, plant and equipment. In accordance with
the provisions of IAS 16, the depreciable base takes into account
the potential remaining value of property, plant and equipment.
Land is recorded at acquisition cost less any impairment.
Property used in operations, investment property and equipment
are measured at their acquisition cost less depreciation and
impairment losses recorded since the time they were placed in
service.
Purchased software is measured at purchase price less
accumulated depreciation, amortisation and any impairment
losses noted since their purchase date.
Proprietary software is measured at cost less accumulated
depreciation, amortisation and impairment losses noted since
their completion date.
In addition to software, intangible assets mainly include assets
acquired in business combinations resulting from contractual
rights (distributing agreements, for example). These were
assessed on the basis of the corresponding future economic
benefits or the potential of the services expected.
Fixed assets are impaired over their estimated useful lives.
The following components and depreciation periods have been
adopted by the Crédit Agricole Group following the application
of component accounting for fixed assets. These depreciation
periods are adjusted according to the type of asset and its
location:
Component
Depreciation period
Land
Not depreciable
Structural works
30 to 80 years
Non-structural works
8 to 40 years
Plant and equipment
5 to 25 years
Fixtures and fittings
5 to 15 years
Computer equipment
4 to 7 years
Special equipment
4 to 5 years
1.2.8 FOREIGN CURRENCY TRANSACTIONS
(IAS 21)
At the reporting date, foreign-currency denominated monetary
assets and liabilities are translated into euros, Crédit Agricole
Group’s functional currency.
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Pursuant to IAS 21, a distinction is made between monetary
items (such as debt instruments) and non-monetary items (such
as equity instruments).
Monetary assets and liabilities denominated in foreign currencies
are translated at the closing exchange rate. The exchange
differences resulting from this translation are recognised in profit
or loss. There are three exceptions to this rule:
y
on debt instruments at fair value through other comprehensive
income that can be reclassified, the portion of the exchange
difference calculated on amortised cost is recognised in profit
or loss; the additional portion is recognised in other compre-
hensive income that can be reclassified;
y
for items designated as cash flow hedges or as part of a net
investment in a foreign entity, exchange differences are recog-
nised in other comprehensive income that may be reclassified
to profit or loss for the effective portion;
y
for financial liabilities designated at fair value through profit or
loss, exchange differences related to changes in the fair value
of own credit risk are recorded in other comprehensive income
that cannot be reclassified.
The treatment of non-monetary items differs according to the
accounting treatment of these items before translation:
y
historical cost items remain valued at the exchange rate on
the day of the transaction (historical price);
y
fair value items are translated at the exchange rate at the
closing date.
Exchange differences on non-monetary items are recognised:
y
in profit or loss if the gain or loss on the non-monetary item
is recognised in profit or loss;
y
in other comprehensive income that cannot be reclassified
to profit or loss if the gain or loss on the non-monetary item
is recorded in other comprehensive income that cannot be
reclassified.
1.2.9 REVENUES FROM CONTRACT WITH
CUSTOMERS (IFRS 15)
Fee and commission income and expenses are recognised in
profit or loss according to the nature of the services to which
they relate.
Fees and commissions that form an integral part of the return
on a financial instrument are recognised as an adjustment to
the remuneration of this instrument and included in its effective
interest rate (in accordance with IFRS 9).
For other types of fees and commissions, their recognition in the
income statement must reflect the rate of transfer of control of
the goods or services sold to the customer:
y
the profit or loss on a transaction associated with the provision
of services is recognised under Fees, when control of the pro-
vision of services is transferred to the client if it can be reliably
estimated. This transfer may take place as the service is ren-
dered (continuous service) or on a given date (one-off service).
a) Fees and commissions for ongoing services (for example,
on payment instruments) are recognised in profit or loss
according to the level of progress of the service rendered.
b) Fees and commissions received or paid as remuneration
for one-off services are recognised in full in profit or loss
when the service is rendered.
Fees and commissions payable or receivable subject to the
achievement of a performance objective are recognised in the
amount for which it is highly probable that the income thus
recognised will not later be subject to a significant downward
adjustment upon resolution of the contingency. This estimate is
updated at each closing date. In practice, this condition results
in the deferred recognition of certain performance-related fees
and commissions until the expiry of the performance evaluation
period and until such fees and commissions have been definitively
acquired.
1.2.10 LEASES (IFRS 16)
The Group may be the lessor or lessee of a lease.
Leases for which the Group is the lessor
Lease transactions are analysed according to their substance
and financial reality. They are recognised, depending on the case,
either under finance leases or operating leases.
y
In the case of finance leases, they are considered equivalent to
a sale of fixed assets to the lessee financed by a loan granted
by the lessor. The analysis of the economic substance of finance
leases leads the lessor to:
a) Remove the leased asset from the balance sheet;
b) Recognise a financial receivable from the customer as
“financial assets at amortised cost” for a value equal to the
present value of lease payments receivable by the lessor
under the lease, plus any non-guaranteed residual value
accruing to the lessor;
c) Recognise deferred taxes on temporary differences on the
financial receivable and the net book value of the leased
asset;
d) Break down the income corresponding to the rents between
interest and capital depreciation.
y
In the case of operating leases, the lessor recognises leased
assets as “tangible assets” on the asset side of its balance
sheet and records lease income on a straight-line basis under
“income from other activities” in the income statement.
Leases for which the Group is the lessee
Lease transactions are recognised in the balance sheet at the
date the leased asset is made available. The lessee recognises an
asset representing the right-of-use of the leased asset to property,
plant and equipment for the estimated term of the contract and a
liability for the obligation to pay rents as one of the other liabilities
over the same term.
The lease term of a contract corresponds to the non-cancellable
term of the rental contract, adjusted for the option to extend the
lease, which the lessee is reasonably certain to exercise and the
option of termination that the lessee is reasonably certain not
to exercise.
In France, the term used for “3/6/9” commercial leases is generally
nine years with an initial non-cancellable period of three years.
When the lessee believes that it is reasonably certain not to
exercise the exit option after three years, the Group principle
applicable to contracts with an indefinite term or renewed by
tacit renewal (i.e. first exit option after five years) will be applied to
French commercial leases in most cases, at the start date of the
lease. Thus, the term will be estimated at six years. The Group
principle (first exit option after five years) may not be applied in
certain specific cases, for example for a lease in which the interim
exit options have been abandoned (for example, in exchange
for a reduction in rent); in this case, an initial lease term of nine
years should be used (unless a tacit extension is expected for a
maximum of three years in the general case).
The lease liability is recognised at an amount equal to the present
value of the lease payments over the term of the contract. Lease
payments include fixed rents, variable rents based on a rate or
index, and payments that the lessee expects to pay in respect of
guarantees of residual value, purchase option or early termination
penalty. Variable rents that do not depend on an index or a
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rate and VAT not deductible from rents are excluded from the
calculation of the debt and are recognised as operating expenses.
The discount rate applicable to the calculation of right-of-use
and lease liabilities is by default the lessee’s marginal debt ratio
over the term of the lease at the date of signature of the contract,
where the implicit rate cannot be easily determined. The marginal
debt ratio takes into account the rent payment structure. It
reflects the conditions of the lease (term, guarantee, economic
environment, etc.) - the Group has applied the IFRS IC decision
of 17 September 2019 since the implementation of IFRS 16.
The expense in respect of leases is broken down into interest on
the one hand and the capital depreciation on the other.
The right-of-use asset is valued at the initial value of the lease
liability plus initial direct costs, advance payments, restoration
costs and less lease incentives. It is amortised over the estimated
term of the contract.
The lease liability and the right-of-use liability may be adjusted
in the event of a change in the lease contract, re-estimation of
the lease term or revision of rents linked to the application of
indices or rates.
Deferred taxes are recognised in respect of temporary differences
in the lessee’s right-of-use and lease liabilities.
In accordance with the exception provided for in the standard,
short-term leases (initial term of less than twelve months) and
leases whose replacement value of the leased asset is low are
not recognised on the balance sheet. The corresponding lease
expenses are recorded on a straight-line basis in the income
statement under operating expenses.
In accordance with the provisions of the standard, the Group does
not apply IFRS 16 to leases for intangible assets.
1.2.11 NON-CURRENT ASSETS HELD FOR SALE
AND DISCONTINUED OPERATIONS (IFRS 5)
A non-current asset (or a disposal group) is considered to be
held for sale if its carrying amount is recovered primarily through
a sale rather than through continuous use.
For this to be the case, the asset (or disposal group) must be
available for immediate sale in its current condition and its sale
must be highly probable.
The assets and liabilities concerned are isolated on the balance
sheet under “Non-current assets held for sale and discontinued
operations” and “Liabilities related to non-current assets held for
sale and discontinued operations”.
These non-current assets (or disposal group) classified as held for
sale are measured at the lower of their carrying amount and their
fair value less costs to sell. In the event of an unrealised capital
loss, an impairment loss is recorded in profit or loss. Moreover,
they cease to be amortised as of their downgrading.
If the fair value of the group of assets held for sale less costs to
sell is less than its carrying amount after impairment of non-current
assets, the difference is allocated to other assets in the group of
assets held for sale, including financial assets, and is recognised
in profit or loss net of tax on assets held for sale.
A discontinued operation is any component that the Group has
disposed of, or that is classified as held for sale, and which is in
one of the following situations:
y
it represents a separate main business line or geographic area;
y
it is part of a single and coordinated plan to dispose of a
separate main business line or geographic area; or
y
it is a subsidiary acquired exclusively for resale.
The following items are presented on a separate line of the income
statement:
y
the net income after tax of discontinued operations up to the
date of disposal;
y
the post-tax gain or loss arising from the disposal or measure-
ment at fair value less costs of selling the assets and liabilities
comprising the discontinued operations.
1.3 Consolidation principles and methods
(IFRS 10, IFRS 11 and IAS 28)
1.3.1 SCOPE OF CONSOLIDATION
The consolidated financial statements include the financial
statements of Crédit Agricole CIB and those of all companies
over which, in accordance with the provisions of IFRS 10, IFRS
11 and IAS 28, Crédit Agricole CIB has control, joint control or
significant influence, except for those that are not material in
relation to all companies included in the consolidation scope.
DEFINITIONS OF CONTROL
In accordance with international accounting standards, all entities
controlled, under joint control or under significant influence are
consolidated, provided that they do not fall within the scope of
the exclusions mentioned below.
Exclusive control over an entity is presumed to exist when
Crédit Agricole CIB is exposed or entitled to variable returns
resulting from its involvement in the entity and if its power over
the entity allows it to influence those returns. Power in this context
means only substantive (voting or contractual) rights. Rights are
considered substantive if the holder of the rights can in practice
exercise them when decisions about the entity’s relevant activities
are made.
Control of a subsidiary governed by voting rights is established
when the voting rights held give Crédit Agricole CIB the practicable
ability to direct the relevant activities of the subsidiary. Crédit
Agricole CIB generally controls the subsidiary when it holds,
directly or indirectly through subsidiaries, more than half of the
existing or potential voting rights of an entity, unless it can be
clearly demonstrated that such holding does not allow it to direct
relevant activities. Control also exists where Crédit Agricole CIB
owns half or less than half of an entity’s voting rights, including
potential voting rights, but is able in practice to direct its relevant
activities at its sole discretion, notably because of the existence
of contractual arrangements, the size of its stake in the voting
rights compared to those of other investor, or due to other facts
and circumstances.
Control of a structured entity is not assessed on the basis of
the percentage of voting rights as these have, by nature, no
effect on the entity’s returns. The control analysis takes into
account contractual agreements, but also the involvement and
decisions of Crédit Agricole CIB when establishing the entity,
the agreements entered into at that time and the risks incurred
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by Crédit Agricole CIB, the rights resulting from agreements that
give the investor the power to direct relevant activities only when
particular circumstances occur, and other facts or circumstances
which indicate that the investor can direct the entity’s relevant
activities. Where there is a management mandate, the extent of
the decision-making power relating to the delegation of power to
the manager and the remuneration accorded by such contractual
agreements shall be analysed in order to determine whether the
manager acts as agent (delegated power) or principal (on its
own behalf).
Thus, at the time when decisions on the entity’s relevant activities
are to be made, the indicators to be analysed in order to determine
whether an entity acts as an agent or as principal are the extent
of the decision-making power relating to the delegation of power
to the manager over the entity and the remuneration accorded by
such contractual agreements, as well as the substantive rights
that may affect the capacity of the decision-maker held by the
other parties involved in the entity and exposure to variability in
returns from other interests held in the entity.
Joint control is exercised when there is contractual sharing of
control over an economic activity. Decisions affecting the entity’s
relevant activities require the unanimous approval of the parties
sharing control.
In traditional entities, significant influence arises from the power
to participate in a company’s financial and operational policies
without having control of it. Crédit Agricole CIB is presumed
to have significant influence when it holds, directly or indirectly
through subsidiaries, 20% or more of the voting rights in an entity.
1.3.2 CONSOLIDATION METHODS
The consolidation methods are set by IFRS 10 and IAS 28
respectively. They depend on the type of control exercised by
Crédit Agricole CIB over the entities that can be consolidated,
regardless of activity or whether or not they have legal entity
status:
y
full consolidation, for controlled entities, including entities with
different account structures, even if their activity is not in line
with that of Crédit Agricole CIB;
y
the equity method, for entities under significant influence and
under joint control.
Full consolidation consists in replacing each of the assets
and liabilities of each subsidiary with the value of the shares.
The share of non-controlling interests in equity and income is
shown separately in the consolidated balance sheet and income
statement.
Non-controlling interests are as defined by IFRS 10 and include
instruments that are current interests and entitle them to a share of
net assets in the event of liquidation and other equity instruments
issued by the subsidiary and not held by the Group.
The equity method consists in replacing the Group’s share in the
shareholders’ equity and income of the companies concerned
with the value of the shares.
The change in the carrying amount of these shares takes into
account changes in goodwill.
During additional acquisitions or partial disposals with the
maintenance of joint control or significant influence, Crédit Agricole
CIB notes:
y
in the event of an increase in the percentage of interest, addi-
tional goodwill;
y
in the event of a decrease in the percentage of interest, a capital
gain or loss on disposal/dilution in profit or loss.
1.3.3 ADJUSTMENTS AND ELIMINATIONS
Crédit Agricole CIB makes the necessary adjustments to
harmonise the valuation methods of consolidated companies.
The effect on the consolidated balance sheet and income
statement of internal Group operations is eliminated for fully
consolidated entities.
Capital gains or losses on disposals of assets between
consolidated companies are eliminated; any impairment measured
on an internal disposal is recognised.
1.3.4 TRANSLATION OF THE FINANCIAL
STATEMENTS OF FOREIGN OPERATIONS (IAS 21)
The financial statements of entities representing a “foreign
business” (subsidiary, branch, associate or joint venture) are
translated into euros into two steps:
y
if applicable, the local currency in which the financial statements
are prepared is converted into the functional currency (that of
the main economic environment of the entity). The conversion
is carried out as if the information had been recognised initially
in the functional currency (same conversion principles as for
foreign currency transactions above);
y
translation of the functional currency into euros, the presenta-
tion currency of the Group’s consolidated financial statements.
Assets and liabilities, including goodwill, are translated at the
closing rate. Equity items, such as share capital or reserves,
are translated at their historical exchange rate. Income and
expenses on the income statement are translated at the average
exchange rate for the period. Foreign exchange differences
arising from this conversion are recognised as a separate com-
ponent of shareholders’ equity. These translation differences are
recognised in profit or loss in the event of the disposal of the
foreign operation (disposal, repayment of capital, liquidation,
abandonment of operations) or in the event of deconsolidation
due to a loss of control (even without disposal) when the result
of the disposal or loss of control is recognised.
1.3.5 BUSINESS COMBINATIONS - GOODWILL
MEASUREMENT AND RECOGNITION OF
GOODWILL
Business combinations are accounted for using the acquisition
method, in accordance with IFRS 3, with the exception of
business combinations under joint control, which are excluded
from the scope of IFRS 3. In the absence of an IFRS standard
or an interpretation specifically applicable to a transaction, IAS 8
on Accounting Policies, Changes in Accounting Estimates and
Errors leaves the possibility of referring to the official positions of
other standardisation bodies. Accordingly, the Group has chosen
to apply US standard ASU 805-50, which appears to comply
with the general IFRS principles, for the treatment of business
combinations under joint control at carrying values using the
method of pooling interest.
At the acquisition date, the identifiable assets, liabilities and
contingent liabilities of the acquired entity that meet the accounting
criteria of IFRS 3 are recognised at fair value.
In particular, a restructuring liability is only recognised as a liability
of the acquired entity if, at the acquisition date, it is obliged to
carry out the restructuring.
Price adjustment clauses are recognised at fair value even if they
are unlikely to be realised. Subsequent changes in the fair value
of clauses that are financial liabilities are recognised in profit or
loss. Only the price adjustment clauses relating to transactions
for which the acquisition of control took place no later than 31
December 2009 may still be recorded against goodwill, because
these transactions were recognised in accordance with IFRS 3
pre-revision (2004).
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The non-controlling interests that are shares of current interests
and entitle holders to a share of the net assets in the event of
liquidation may, at the acquirer’s option, be valued in two ways:
y
at fair value at the acquisition date;
y
at the share in identifiable assets and liabilities of the acquired
entity remeasured at fair value.
This option may be exercised by acquisition.
The balance of non-controlling interests (equity instruments issued
by the subsidiary and not held by the Group) must be recognised
at its fair value at the acquisition date.
The initial valuation of assets, liabilities and contingent liabilities
may be modified within a maximum of twelve months from the
date of acquisition.
Certain transactions relating to the acquired entity are recognised
separately from the business combination. This applies primarily
to:
y
transactions that put an end to a pre-existing relationship
between the acquired and the acquiring companies;
y
transactions that compensate employees or selling shareholders
of the acquired company for future services;
y
transactions aimed at reimbursing the acquiree or its former
shareholders for costs related to the acquisition they have
assumed on behalf of the acquirer.
These separate transactions are generally recognised in profit or
loss at the acquisition date.
The consideration transferred in connection with a business
combination (the acquisition cost) is measured as the total of
the fair values transferred by the acquirer at the date of acquisition
in exchange for control of the acquired entity (for example, cash,
equity instruments, etc.).
Costs directly attributable to the relevant business combination
are recognised as expenses, separately from the combination.
Where the acquisition is highly probable, they are recorded under
“Net gains or losses on other assets,” otherwise they are recorded
under “Operating expenses”.
The difference between the sum of acquisition costs and non-
controlling interests and the net balance, at the date of acquisition,
of the identifiable assets and the liabilities assumed, measured
at fair value, is recorded, when it is positive, on the assets side
of the consolidated balance sheet, under “Goodwill” when the
acquired entity is fully consolidated, and under “Investments
in associates” when the acquired company is accounted for
using the equity method. When this difference is negative, it is
immediately recognised in profit or loss.
Goodwill is recorded in the balance sheet at its initial cost
denominated in the currency of the acquired entity and translated
at the exchange rate at the balance sheet date.
In the event of a step-by-step acquisition of control, the
participation held before the acquisition of control is remeasured
at fair value through profit or loss at the date of acquisition and
goodwill is calculated at once, based on the fair value at the
acquisition date of the assets acquired and the liabilities assumed.
In the event of a loss of control, the gain or loss on disposal is
calculated for the entire entity sold and any investment share
retained is recognised on the balance sheet at its fair value at
the date of loss of control.
IMPAIRMENT OF GOODWILL
Goodwill is tested for impairment as soon as objective indicators
of a loss of value are noted and at least once a year.
The choices and assumptions used to measure non-controlling
interests at the date of acquisition may influence the amount of the
initial goodwill and any impairment resulting from a loss of value.
For the purposes of these impairment tests, each goodwill is
divided between the Group’s various cash-generating units (CGUs)
that will benefit from the expected advantages of the business
combination. The CGUs were defined within the Group’s major
business lines as the smallest identifiable group of assets and
liabilities operating according to its own business model. During
impairment tests, the carrying amount of each CGU, including
the carrying amount of goodwill allocated to it, is compared to
its recoverable value.
The recoverable amount of the CGU is the higher amount
between the fair value of the asset less costs to sell and its value
in use. Value in use is calculated as the present value of the
estimated future cash flows generated by the CGU, resulting from
medium-term plans drawn up for the purposes of the Group’s
management.
When the recoverable amount is less than the carrying amount,
the goodwill associated with the CGU is impaired accordingly.
This impairment is irreversible.
CHANGES IN POST-ACQUISITION INTEREST AND
GOODWILL
In the event of an increase or decrease in Crédit Agricole CIB’s
ownership interest in an entity already exclusively controlled
without loss of control, there is no impact on the amount of
goodwill recognised at the origin of the business combination.
In the event of an increase in the percentage interest of Crédit
Agricole CIB in an entity already exclusively controlled, the
difference between the acquisition cost and the share of net
assets acquired is recognised in “Consolidated reserves” Group
share.
In the event of a decrease in the percentage interest of Crédit
Agricole CIB in an entity that remains exclusively controlled, the
difference between the sale price and the carrying amount of
the share of the net position sold is also recognised directly
in “Consolidated reserves” Group share. The costs associated
with these transactions are recognised in other comprehensive
income.
SALE OPTIONS GRANTED TO MINORITY
SHAREHOLDERS
The accounting treatment of sale options granted to minority
shareholders is as follows:
y
when a sale option is granted to minority shareholders of a
fully-consolidated subsidiary, a liability is recognised on the
liabilities side of the balance sheet; its initial recognition takes
place at the estimated present value of the options granted
to minority shareholders. In exchange for this debt, the share
of net assets attributable to the minority interests concerned
is reduced to zero and the balance is recorded as a reduction
in equity;
y
subsequent changes in the estimated value of the exercise
price alter the amount of the debt recorded as liabilities, with
a corresponding equity adjustment. Symmetrically, subsequent
changes in the share of net assets due to minority shareholders
are cancelled and offset in equity.
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NOTE 2: MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL
EVENTS DURING THE PERIOD
The scope of consolidation and the changes to it are presented in detail at the end of the notes in Note 12 “Scope of consolidation at
31 December 2021”.
Deconsolidation of Crédit Agricole CIB
Algeria Bank Spa
Crédit Agricole CIB Algérie Bank Spa is the 100% subsidiary of
Crédit Agricole CIB (CACIB).
As of mid-2020, CACIB’s Executive Management has undertaken
a process to stop the subsidiary’s banking activities, in full
transparency with the local authorities. The request for withdrawal
of the banking institution’s authorisation, officially filed last
December, was endorsed by the Governor of the Bank of Algeria
on 28 March 2021 and was followed by the appointment of a
liquidator on 13 April 2021 to which all powers of administration,
management and representation were transferred in accordance
with Article 115 of the Algerian Banking Act. The liquidator’s
task is to liquidate the entity; it acts under the supervision of the
Banking Commission and has sole control over the liquidation
process.
Given this new context, following the appointment of the liquidator,
it appears that the criteria for exclusive control under IFRS 10 are
no longer fully met for the purposes of the consolidated financial
statements of 31 December 2021. As a result, the subsidiary
CACIB Algeria, which is no longer controlled by CACIB, was
excluded from the consolidation scope from 30 June 2021.
The recognition of the loss of control results in the discontinuation
of the full consolidation with all the following accounting impacts:
y
Derecognition of all consolidated assets and liabilities at the
date of loss of control at their net book value;
y
In the absence of non-controlling interests, goodwill or disposal
prices, the impact on income is limited to the reclassification of
consolidated gains and losses previously recognised in other
comprehensive income at their book value at the date of loss
of control, or a negative impact on income of -€40m;
y
The investment retained in the subsidiary will continue to be
recognised in accordance with IFRS 9 until final liquidation,
namely equity securities measured at fair value through other
comprehensive income that cannot be reclassified to profit or
loss. Any subsequent revaluations of the security as well as the
impact of the final repayment of the capital invested will remain
in other comprehensive income and will not impact the result.
Disposal of Crédit Agricole CIB (Miami)
business to Santander
Crédit Agricole CIB (Miami) is a branch of Crédit Agricole CIB,
which is in turn 97.8% controlled by Crédit Agricole S.A.
In 2020, the executive management of Crédit Agricole S.A. and
Crédit Agricole CIB began the process of putting the goodwill
associated with outstanding loans to customers of the Crédit
Agricole CIB (Miami) branch of Crédit Agricole CIB (CACIB) up
for sale.
The assets and liabilities of Crédit Agricole CIB (Miami) were thus
reclassified under IFRS 5 in the consolidated financial statements
of Crédit Agricole CIB as of 31 December 2020.
The negotiations conducted since January 2021 with Santander
bank led to the execution of a sale contract on 17 May 2021 for
part of the commercial activity of the Crédit Agricole CIB (Miami)
branch of Crédit Agricole CIB and an additional agreement on
14 June 2021 for a total amount of €27 million, generating a
positive impact on Crédit Agricole CIB’s income of €12.6 million,
recognised under “Net income from discontinued or held-for-
sale operations”.
Outstanding amounts not sold on 17 May and 14 June 2021,
corresponding to loans to customers in the balance sheet
amounting to €3.53 million and amounts due to customers for
€4.12 million, are no longer recognised in accordance with IFRS
5 from 30 June 2021.
CA Indosuez Wealth (Brazil) S.A. DTVM
CA Indosuez Wealth (Brazil) S.A. DTVM is a subsidiary 97.8%
controlled by Crédit Agricole S.A. The shares of this company
are wholly owned by Crédit Agricole CIB, which in turn is 97.8%
controlled by Crédit Agricole S.A..
In 2020, the General Management of Crédit Agricole S.A. and
Crédit Agricole CIB engaged in the sale process of CA Indosuez
Wealth (Brazil) S.A. DTVM.
The assets and liabilities of CA Indosuez Wealth (Brazil) were
reclassified under IFRS5 in the consolidated financial statements
of Crédit Agricole CIB at 31 December 2020.
On 23 April 2021, negotiations with SAFRA led to the signing of a
sale agreement with CA Indosuez Wealth (Brazil). The completion
of this transaction is subject to regulatory agreements and
standard checks.
CA Indosuez Wealth (Brazil) is therefore maintained under IFRS
5 in Crédit Agricole CIB’s consolidated financial statements at 31
December 2021 for €10 million in “Non-current assets held for
sale” and €9 million in “Liabilities related to non-current assets
held for sale”. Net income is classified as “Net income from
discontinued operations or those being divested” in the amount
of -€5.7 million.
COVID-19 health crisis
The Crédit Agricole Group has taken action in response to
the unprecedented situation caused by the COVID-19 health
crisis. The Group has actively participated in economic support
measures to assist its customers whose activity is affected by
the crisis linked to the Coronavirus.
GOVERNMENT-GUARANTEED LOANS
Given the COVID-19 health crisis, the Crédit Agricole Group
started offering all its business-owner customers access to the
government-guaranteed loan scheme from 25 March 2020,
regardless of their size or status (whether they are farmers,
professionals, shopkeepers, tradespeople or companies), in
addition to the measures already announced, including repayment
deferrals and accelerated processing for loan applications.
These loans are in keeping with a “hold-to-collect” business
model and have the necessary contractual characteristics. They
are therefore recorded at amortised cost.
At 31 December 2021, Crédit Agricole CIB’s outstanding
government-backed loans granted to customers amounted to
€1,807 million, including €188 million not drawn.
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NOTE 2: MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL EVENTS DURING THE PERIOD
CREDIT RISK
The IASB’s statement on 27 March 2020 regarding accounting
for expected credit losses in line with IFRS 9 requirements for
financial instruments under the current exceptional circumstances
recalls the importance of companies exercising their judgement in
the application of the IFRS 9 principles regarding credit risk and
in the resulting classification of financial instruments.
The specific circumstances and the support measures introduced
by the public authorities must be taken into account when
calculating expected losses.
In view of the COVID-19 health crisis, the Group has also revised
its forward-looking macroeconomic forecasts used to estimate
credit risk.
CREDIT RISK MEASUREMENT
In the context of the health and economic crisis related to
COVID-19, the Group continues to revise its forward-looking
macroeconomic forecasts on a regular basis in order to estimate
credit risk. As a reminder, the initial recognition of the effects of
the health crisis and its macro-economic effects was included in
reporting as from Q2 2020.
Information on the macroeconomic scenarios
used for the reporting period ended 31
December 2021
The Group used four scenarios for calculating IFRS 9 provisioning
parameters in production at 31 December 2021 with projections
for 2024. These four scenarios were developed in October 2021
based on the information and data available at that time.
The first scenario, which is the central one, weighted at
50%, includes a growth profile that continues to depend
heavily on changes in public health assumptions in
2021, but incorporates a consumption-driven rebound
in growth. Significant but presumably temporary
inflation in the US, with a transitory acceleration in the
eurozone that is kept in check.
y
The growth profile continues to depend heavily on public health
assumptions in 2021, with the following assumptions for the
eurozone and France:
Even in the event of new waves of infections, the lifting of the
restrictive health measures last spring would not be questioned
because of the ramp-up of the vaccination rollouts. Consolidation
of a strong rebound in growth driven by consumption in the
second half of 2021 and recovery continuing in 2022:
-
GDP growth in the eurozone forecast at 5.4% in 2021 and
4.4% in 2022 and 2.5% in 2023 after a -6.5% decline in 2020.
-
GDP growth in France: Annual average growth would reach
6.4% in 2021 and GDP would return to its pre-crisis level
by year end. It would increase by 3.9% in 2022. However,
some sectors could remain weakened (e.g. the aeronautics,
automotive and tourism sectors) with lukewarm demand and
supply affected by shortages of certain intermediate goods.
There would also be a slight increase in business failures and
the unemployment rate (very low in 2020), but the wave of
failures feared at the onset of the pandemic would not mate-
rialise. In 2023, growth would remain dynamic and would
reach 2% and then slow to around 1.5% in 2024 before
returning to its long term trend rate (estimated at 1.35% by
the French Ministry of the Economy).
Assumptions for the eurozone:
Less sustained pressure but same sources of pressure upstream
and specific factors (new weightings, German VAT, base effects,
etc.) that could lead to a transitory acceleration with inflation
exceeding the 2% target in the second half of 2021 and first
quarter of 2022. Inflation of 3% in August 2021 with a provisional
peak expected around November 2021 when headline inflation
could get close to 4% with core inflation around 2.4% and
1.6% in 2023. Then most likely a sharp decline with a return to
comfortably below the target at end-2022 (around 1.5%). No risk
of runaway inflation based on data available in October 2021. The
unemployment assumptions are 8.6% in 2022 and 8.5% in 2023,
slightly higher than in 2021.
y
In the central scenario, the financial forecasts are as follows:
In the United States: Cautious and very slow monetary tightening
by the Fed (US central bank) alongside a gradual recovery in
the labour market. Willingness of the FED to carry out a gradual
tapering with a moderation of long-term rates in a context of
ample liquidity and high demand for sovereign securities. 10-year
UST yields would hover around 1.50% at end-2021 then around
1.25% at end-2022 and 1.4% at end-2023.
In the eurozone: still very accommodative ECB (European Central
Bank) policy:
- Key rates would remain unchanged over the 2021-2024
period, eliciting a need to support the fiscal stimulus plans,
absorb the net issuance of securities, maintain favourable
financial terms and keep risk premia in check. Consequently,
ECB purchases would be extended beyond March 2022:
high until end-2022 and extended (but reduced) in 2023.
- The ECB’s €1,850 billion Pandemic Emergency Purchase
Programme (PEPP), currently to run until March 2022, would
be extended until December 2022 with a new envelope of
around €180 billion. The Asset Purchase Programme (APP)
would be maintained in 2022-2023 (at least) at a monthly
pace of €30 billion.
- Long-term rates: these remain very low given the ECB’s
activism, relatively moderate inflationary pressure, ques-
tions about the output gap and its rapid closure, and the
absence of major tensions on the bond markets in the US.
Consequently, the Bund yield would be kept at a low level.
-
Temporary pressure on the OAT/Bund spread (Q4 2021/Q1
2022 ahead of the presidential elections); in 2022 the French
spread would narrow following the (supposedly reassuring)
outcome of the elections, thanks to the enthusiasm of inves-
tors having neglected French securities; thereafter, return to a
“normal” spread (30 bp).
Assumptions for the United States
Inflation in the October-21 scenarios estimated at +4.4% for 2021,
+3.5% in 2022 and +2.3% in 2023.
Inflation was stimulated by strong demand in the post-pandemic
recovery phase, with specific pressures on shipping, disruptions
to production chains caused by supply difficulties (longer delivery
times, shortages of wood, steel and computer chips) and a surge
in the price of commodities and intermediate goods;
However, this impact is expected to be temporary due to:
y
Legitimate but exaggerated fears of persisting higher inflation
and further upward impulses in the second half of the year, but
a disappearance of base effects. 5.5% year-on-year increase
by end-2021 then easing from mid-2022. Core and headline
inflation of 2.7% at end-2022.
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y
Unemployment in the United States falling but still significantly
higher (5.9% in Q2 2021) than pre-pandemic levels (3.5%);
considerable drop in the participation rate; the situation is still
far from full employment which ultimately limits the risks of a
sharp rise in wages;
y
Persistent disinflationary forces: globalisation; technological
progress; strong global competition and the need to remain
competitive;
y
The effects of the stimulus package in the United States call
for nuance: some of the aid granted to households is saved,
and some used to reduce debt. Consumption surplus is tem-
porary, partly due to the effect of exiting the crisis/restrictions
being lifted.
The second scenario, which is “moderately adverse”,
differs from the central scenario in that it features a
more lasting and more marked rise in inflation (2.7%
in 2022, 2% in 2023 against respectively 2.4% and
1.6% in scenario 1). It includes a significant slowdown
in consumption and investment in the eurozone
and France from mid-2022 onwards and a rise in
unemployment stemming from a more marked trend of
bankruptcies. The projection for long-term rates could
lead to declines on the equity markets and a correction
of residential and commercial real estate.
The second scenario differs from scenario 1 in the following ways:
y
Inflation shock: The rise in inflation is more lasting and sharper
than in the central scenario.
Demand is very high, particularly from the United States and
China (demand in the United States boosted by a massive fiscal
stimulus package), while supply is disrupted by the pandemic.
Disruptions to production chains, supply difficulties and shortages
of certain intermediate goods are more marked than in the central
scenario. The rise in the price of oil, other commodities and certain
intermediate goods is therefore greater and more sustainable.
Furthermore, there is a type of wage-price spiral, with wage
growth primarily due to the sharp increase in prices and to
recruitment difficulties. There is a pronounced impact in the United
States and a lesser impact in the eurozone.
y
Rates and markets:
- Fed: tightening of monetary policy in the face of strong
growth (at least at the start of the period) and higher and
more sustainable inflation. Tapering is more significant and
faster than expected in 2022 and there is a hike in the Fed
funds rate in 2022.
-
10-year UST yield: tightening of monetary policy and inves-
tors’ concerns about the risk of inflation taking hold. As a
result, substantial rise in long-term rates in the US, despite
ample liquidity in the financial system.
-
ECB: in the face of rising inflation, the ECB’s asset purchase
programme is revised slightly downwards.
- Increase in the Bund and 10-year swaps in 2022 due to
the rise in US long-term rates and reduction in ECB asset
purchases.
-
Widening of spreads of France and Italy.
y
Macro indicators in the eurozone/France:
-
Growth at end-2021, early 2022 but a significant slowdown in
consumption and investment from mid-2022. The strong rise
in inflation is only partially reflected in wages and leads to a
decline in purchasing power. Corporate profits are impacted
by the sharp increase in intermediate and payroll costs.
- The rise in unemployment and bankruptcies is more pro-
nounced than in the central scenario.
-
The increase in long-term rates leads to a decline in equity
markets and a correction in residential and commercial real
estate.
The third scenario is slightly more favourable than
the first scenario and assumes that the pressure on
commodities and intermediate goods prices in 2021 will
ease quite significantly from 2022 onwards.
Global demand remains high, but as the public health situation in
emerging markets improves, disruption to supply chains is limited.
The assumption is that production line management becomes
more effective and that supply difficulties are reduced. It is also
assumed that wage increases remain fairly moderate.
From 2022 onwards, households start spending a significant
portion of the savings surplus built up during the pandemic.
Growth in the eurozone is more sustained than in the central
scenario (4.8% in 2022, 2.8% in 2023 against respectively 4.4%
and 2.5% in scenario 1). Long-term rates in the eurozone are very
low, close to their level in the central scenario.
The fourth scenario, which is the least likely and most
negative, is that used in fiscal stress testing (July 2021).
It is characterised by overheating, high inflation and a
rise in long-term rates in the United States, on top of
multiple crises in various countries. In France, a sharp
economic slowdown is projected for 2022 and 2023,
combined with a major correction in residential real
estate.
US growth is particularly robust in 2021 and the start of 2022:
post-pandemic restart and very strong fiscal stimulus (massive
stimulus packages passed in full, rapid fall in unemployment and
recovery in consumption).
There is an inflation shock in the United States, soaring
commodities and intermediate goods prices (a new rise in oil
prices in 2022 – high demand and geopolitical tensions in the
Middle East); strong demand in the post-pandemic recovery
phase, particularly from the United States and China; production
chain disruptions leading to supply difficulties. Recruitment
difficulties and wage pressure are observed in some sectors in
the United States.
Bond markets become concerned about the high inflation figures,
which are more pronounced than in the central scenario (fear of
an inflation spiral caused by rising intermediate costs and wages)
and the size of the US public deficit. The Fed is slow to react and
“too late” in raising Fed funds rates in early 2022.
Tightening of
US monetary policy + fiscal drift + fears of inflation taking
hold leading to major concerns among investors and a sharp
rise in US long-term rates.
Several crises are piled onto this initial shock:
y
Stock market crash:
the equity markets, which recorded strong
gains in 2021 and are almost certainly overvalued, undergo
a major correction in the face of the Fed’s tightening and the
sharp rise in long-term rates in the United States.
y
Emerging markets: in some emerging markets, major delays
in the vaccination process; ongoing public health crisis; some
sectors heavily impacted (tourism in Asia); weak growth, par-
ticularly in Asia (apart from China) where there is no signifi-
cant post-pandemic rebound, unlike in the United States and
European Union.
y
Crisis specific to France: pressures on the financial markets due
to uncertainty about the upcoming presidential election which
could lead to social and economic tension (rise in unemployment
and bankruptcies in 2022 related to the end of “whatever it
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NOTE 2: MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL EVENTS DURING THE PERIOD
takes”, major social unrest similar to what was seen during
the yellow vest protests bringing the country to a standstill).
No new emergency plan to deal with this social unrest. OAT/
Bund spread becomes very wide. Downgrading of the sovereign
rating is envisaged.
y
Crisis specific to Italy: assumption of an end to the legislature
in mid-2022 and a victory for a Lega Nord/Brothers of Italy
coalition with a majority in both chambers; tug-of-war with
the European Commission, blocking of payments under the
Stimulus Plan leading to market concerns about economic
policy; major widening of the BTP/Bund spread; downgrading
of the sovereign rating.
Government support measures have been taken into account
in the IFRS 9 projections: the risk parameter forecast process
was revised in 2020 to better reflect the impact of government
programmes in IFRS 9 forecasts. The effect of this revision was to
mitigate the sudden intensity of the crisis and the strength of the
recovery, and to spread these over a longer period (three years).
The variables relating to the interest rates level, and more generally
all the variables linked to the capital markets, have not been
modified, because their forecasts already structurally include the
effects of the support policies.
In order to take into account local specificities (geographical
and/or associated with certain activities/businesses),
sectoral
supplements are prepared at the local level (local forward-
looking scenarios) by some Group entities, supplementing the
macroeconomic scenarios defined centrally.
For the fourth quarter of 2021, the Crédit Agricole CIB Group
has made an exceptional additional ECL on healthy and impaired
loans of €44 million in cost of risk.
This exceptional adjustment reduces the effect of provision
reversals that occur when the macroeconomic scenarios used in
the central parameters for calculating Central ECLs are updated.
The adjustment is intended to cover various kinds of broad
uncertainties that increased in intensity towards the end of the
year. Those uncertainties – the public health situation, inflation
expectations, pace of interest rate adjustments, particularly in
the eurozone, geopolitical uncertainties – were estimated by
experts and cannot be modelled. This level of uncertainty was not
included in the October 2021 macro scenarios used to calculate
IFRS 9 provisions for fourth quarter 2021. Therefore, the result of
the Q4 provisioning models only reflects the improvement in the
October macro scenarios compared to the previous scenarios
used in Q3 and does not incorporate this level of uncertainty.
By way of example, the January 2022 inflation forecasts anticipate
a 3.9% rise in inflation in the eurozone, versus 2.4% in the IFRS 9
scenarios in production.
At the end of December 2021, including local forward-looking
scenarios, the share of Stage 1/Stage 2 provisions on the one
hand (provisions for performing customer loans) and Stage 3
provisions on the other hand (provisions for proven risks)
represented
32%
and
68%
of hedging inventories respectively
for
Crédit Agricole CIB.
At the end of December 2021, net additions to Stage 1/Stage 2
provisions represented
24%
of
Crédit Agricole CIB
’s annual cost
of risk compared to
76%
for the Stage 3 share of proven risks
and other provisions.
Sensitivity analysis of IFRS 9 provisions (Stage 1 and 2
ECL amounts)
The first scenario, called the central scenario, was weighted at
50%
for the calculation of IFRS 9 ECL amounts for Q4-2021. By
way of example, based on the 31 August 2021 data, a 10-point
reduction in the weighting of the central scenario in the Q4-2021
calculations in favour of the more unfavourable second scenario
would lead to a rise in expected credit losses (ECL) under the
forward looking central scenario of around
0.1% for Crédit
Agricole CIB.
This anticipated sensitivity under the central scenario is not
significant and could be reduced based on adjustments under
the local forward looking scenario.
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NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
NOTE 3: FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING
POLICY
The Department of Group Permanent Control and Risks (DRG) is responsible for the management of banking risks in Crédit Agricole CIB.
This department reports to the Chief Executive Officer and its brief is to ensure the management and permanent control of credit,
financial and operational risks.
A description of these processes and commentary are provided in the “Risk factors” chapter of the management report, as allowed
under IFRS 7. The accounting breakdowns are presented in the financial statements.
3.1 Credit risk
(see “Risk factors - Credit Risk”)
3.1.1 VALUE ADJUSTMENTS FOR LOSSES DURING THE PERIOD
Value adjustments for losses correspond to the impairment of assets and to provisions for off-balance sheet commitments recognised
in net income (“Cost of risk”) relating to credit risk.
The following tables present the closing balances of value adjustments for losses recognised under “Cost of risk and related carrying
values”, by accounting category and type of instrument.
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NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Financial assets at amortised cost: debt securities
€ million
Performing assets
Credit-impaired
assets (Stage 3)
Total
Assets subject to
12-month ECL (Stage 1)
Assets subject to lifetime
ECL
(Stage 2)
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount (a)
Loss
allowance
(b)
Net
carrying
amount
(a) + (b)
Balance at 31 december 2020
34,583
(6)
314
-
22
(23)
34,919
(29)
34,890
Transfer between stages during the
period
(19)
-
19
-
-
-
-
-
-
Transfer from Stage 1 to Stage 2
(19)
-
19
-
-
-
-
-
-
Return from Stage 2 to Stage 1
-
-
-
-
-
-
-
-
-
Transfer to Stage 3 ¹
-
-
-
-
-
-
-
-
-
Return from Stage 3 to Stage 2 / Stage 1
-
-
-
-
-
-
-
-
-
Total after transfer
34,564
(6)
333
-
22
(23)
34,919
(29)
34,890
Changes in gross carrying amounts
and loss allowances
(4,657)
3
(285)
(1)
2
(1)
(4,940)
1
-
New production : purchase, granting,
origination,… ²
23,639
(4)
35
(1)
-
-
23,674
(5)
-
Derecognition : disposal, repayment,
maturity...
(29,688)
6
(321)
-
-
-
(30,009)
6
-
Write-off
-
-
-
-
-
-
-
-
-
Changes of cash flows resulting in
restructuring due to financial difficulties
-
-
-
-
-
-
-
-
-
Changes in models' credit risk
parameters during the period
-
-
-
-
-
-
-
-
-
Changes in model / methodology
-
-
-
-
-
-
-
-
-
Changes in scope
-
-
-
-
-
-
-
-
-
Other
1,392
1
1
-
2
(1)
1,395
-
Total
29,907
(3)
48
(1)
24
(24)
29,979
(28)
29,951
Changes in carrying amount due to
specific accounting assessment methods
(with no significant impact on loss
allowance) ³
(310)
-
-
-
-
-
(310)
-
-
Balance at 31 december 2021
29,597
(3)
48
(1)
24
(24)
29,669
(28)
29,641
Contractual amount outstanding of
financial assets written off during
the period, that are still subject to
enforcement measures
-
-
-
-
-
-
-
-
-
¹ Transfers to Stage 3 correspond to stocks initially classified in Stage 1, which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year. The
Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² Originations in Stage 2 could include some originated loans in Stage 1 reclassified in Stage 2 during the period.
³ Includes the variations of fair value adjustments of micro-hedged instruments, the variations relating to the use of the EIR method (notably the amortisation of premiums/ discounts),
the variations of the accretion of discounts on restructured loans (recovered as revenue over the remaining term of the asset).
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f
Financial assets at amortised cost: loans and receivables due from credit institutions
€ million
Performing assets
Credit-impaired
assets (Stage 3)
Total
Assets subject to
12-month ECL (Stage 1)
Assets subject to lifetime
ECL
(Stage 2)
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount (a)
Loss
allowance
(b)
Net
carrying
amount
(a) + (b)
Balance at 31 december 2020
26,645
(4)
55
-
401
(355)
27,101
(359)
26,742
Transfer between stages during the
period
14
-
(14)
-
-
-
-
-
-
Transfer from Stage 1 to Stage 2
-
-
-
-
-
-
-
-
-
Return from Stage 2 to Stage 1
14
-
(14)
-
-
-
-
-
Transfer to Stage 3 ¹
-
-
-
-
-
-
-
-
-
Return from Stage 3 to Stage 2 / Stage 1
-
-
-
-
-
-
-
-
-
Total after transfer
26,659
(4)
41
-
401
(355)
27,101
(359)
26,742
Changes in gross carrying amounts
and loss allowances
16,865
(2)
(7)
-
29
(25)
16,887
(27)
-
New production : purchase, granting,
origination,… ²
57,412
(3)
-
-
-
-
57,412
(3)
-
Derecognition : disposal, repayment,
maturity...
(41,011)
5
(10)
-
-
1
(41,021)
6
-
Write-off
-
-
-
-
-
-
-
-
-
Changes of cash flows resulting in
restructuring due to financial difficulties
-
-
-
-
-
-
-
-
-
Changes in models' credit risk
parameters during the period
-
(4)
-
-
-
(1)
-
(5)
-
Changes in model / methodology
-
-
-
-
-
-
-
-
-
Changes in scope
(1)
-
-
-
-
-
(1)
-
-
Other
465
-
3
-
29
(25)
497
(25)
-
Total
43,524
(6)
34
-
430
(380)
43,988
(386)
43,602
Changes in carrying amount due to
specific accounting assessment methods
(with no significant impact on loss
allowance) ³
(3)
-
-
-
1
-
(2)
-
-
Balance at 31 december 2021
43,521
(6)
34
-
431
(380)
43,986
(386)
43,600
Contractual amount outstanding of
financial assets written off during
the period, that are still subject to
enforcement measures
-
-
-
-
-
-
-
-
¹ Transfers to Stage 3 correspond to stocks initially classified in Stage 1, which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year. The
Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² Originations in Stage 2 could include some originated loans in Stage 1 reclassified in Stage 2 during the period.
³ Includes the variations of fair value adjustments of micro-hedged instruments, the variations relating to the use of the EIR method (notably the amortisation of premiums/ discounts),
the variations of the accretion of discounts on restructured loans (recovered as revenue over the remaining term of the asset), and the variations of changes in related receivables.
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f
Financial assets at amortised cost: loans and receivables due from customers
€ million
Performing assets
Credit-impaired
assets (Stage 3)
Total
Assets subject to
12-month ECL (Stage 1)
Assets subject to lifetime
ECL (Stage 2)
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount
Loss
allowance
Gross
carrying
amount (a)
Loss
allowance
(b)
Net
carrying
amount
(a) + (b)
Balance at 31 december 2020
123,109
(174)
17,403
(573)
4,168
(1,933)
144,680
(2,680)
142,000
Transfer between stages during the
period
(6,432)
(1)
5,844
(14)
589
(82)
1
(97)
-
Transfer from Stage 1 to Stage 2
(8,671)
12
8,671
(86)
-
-
-
(74)
-
Return from Stage 2 to Stage 1
2,244
(13)
(2,244)
23
-
-
-
10
-
Transfer to Stage 3 ¹
(10)
-
(627)
51
638
(92)
1
(41)
-
Return from Stage 3 to Stage 2 / Stage 1
5
-
44
(2)
(49)
10
-
8
-
Total after transfer
116,677
(175)
23,247
(587)
4,757
(2,015)
144,681
(2,777)
141,904
Changes in gross carrying amounts
and loss allowances
28,427
(18)
(3,513)
62
(1,220)
179
23,694
223
-
New production : purchase, granting,
origination, renegociation… ²
139,481
(295)
3,811
(868)
-
-
143,292
(1,163)
-
Derecognition : disposal, repayment,
maturity...
(116,251)
259
(8,247)
895
(1,071)
208
(125,569)
1,362
-
Write-off
-
-
-
-
(312)
302
(312)
302
-
Changes of cash flows resulting in
restructuring due to financial difficulties
-
1
-
(1)
-
-
-
-
-
Changes in models' credit risk
parameters during the period
-
18
-
62
-
(239)
-
(159)
-
Changes in model / methodology
-
-
-
-
-
-
-
-
-
Changes in scope
11
-
-
-
-
-
11
-
-
Other
5,186
(1)
923
(26)
163
(92)
6,272
(119)
-
Total
145,104
(193)
19,734
(525)
3,537
(1,836)
168,375
(2,554)
165,821
Changes in carrying amount due to
specific accounting assessment methods
(with no significant impact on loss
allowance) ³
(224)
-
(56)
-
289
-
9
-
-
Balance at 31 december 2021
4
144,880
(193)
19,678
(525)
3,826
(1,836)
168,384
(2,554)
165,830
Contractual amount outstanding of
financial assets written off during
the period, that are still subject to
enforcement measures
-
-
-
-
-
-
¹ Transfers to Stage 3 correspond to stocks initially classified in Stage 1, which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year. The
Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² Originations in Stage 2 could include some originated loans in Stage 1 reclassified in Stage 2 during the period.
³ Includes the variations of fair value adjustments of micro-hedged instruments, the variations relating to the use of the EIR method (notably the amortisation of premiums/ discounts),
the variations of the accretion of discounts on restructured loans (recovered as revenue over the remaining term of the asset), and the variations of changes in related receivables.
4
As of 31 december 2021, the government-backed loans granted to the customers of Crédit Agricole CIB as part of the measures to support the economy in the health crisis linked
to Covid-19 amounted to €1.807 billion.
288
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Financial assets at fair value through other comprehensive income: debt securities
€ million
Performing assets
Credit-impaired
assets (Stage 3)
Total
Assets subject to
12-month ECL (Stage 1)
Assets subject to lifetime
ECL (Stage 2)
Carrying
amount
Loss
allowance
Carrying
amount
Loss
allowance
Carrying
amount
Loss
allowance
Carrying
amount
Loss
allowance
Balance at 31 december 2020
11,042
(6)
-
-
-
(3)
11,042
(9)
Transfer between stages during the period
-
-
-
-
-
-
-
-
Transfer from Stage 1 to Stage 2
-
-
-
-
-
-
-
-
Return from Stage 2 to Stage 1
-
-
-
-
-
-
-
-
Transfer to Stage 3 ¹
-
-
-
-
-
-
-
-
Return from Stage 3 to Stage 2 / Stage 1
-
-
-
-
-
-
-
-
Total after transfer
11,042
(6)
-
-
-
(3)
11,042
(9)
Changes in gross carrying amounts and loss
allowances
2,039
-
-
-
-
-
2,039
-
Fair value revaluation during the period
(172)
-
-
-
(172)
-
New production : purchase, granting, origination,… ²
6,191
(3)
-
-
-
-
6,191
(3)
Derecognition : disposal, repayment, maturity...
(4,640)
3
-
-
-
-
(4,640)
3
Write-off
-
-
-
-
-
-
-
-
Changes of cash flows resulting in restructuring due
to financial difficulties
-
-
-
-
-
-
-
-
Changes in models' credit risk parameters during
the period
-
-
-
-
-
-
-
-
Changes in model / methodology
-
-
-
-
-
-
-
Changes in scope
-
-
-
-
-
-
-
-
Other
660
-
-
-
-
-
660
-
Total
13,081
(6)
-
-
-
(3)
13,081
(9)
Changes in carrying amount due to specific
accounting assessment methods (with no significant
impact on loss allowance) ³
-
-
-
-
-
-
-
-
Balance at 31 december 2021
13,081
(6)
-
-
-
(3)
13,081
(9)
Contractual amount outstanding of financial assets
written off during the period, that are still subject to
enforcement measures
-
-
-
-
-
-
-
-
¹ Transfers to Stage 3 correspond to commitments initially classified in Stage 1,which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year.
The Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² Originations in Stage 2 could include some originated loans in Stage 1 reclassified in Stage 2 during the period.
³ Includes impacts related to the use of the EIR method (notably the amortisation of premiums/ discounts).
289
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Loan commitments
€ million
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Commitments subject to
12-month ECL (Stage 1)
Commitments subject to
lifetime ECL (Stage 2)
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment (a)
Loss
allowance
(b)
Net amount
of com-
mitment
(a) + (b)
Balance at 31 december 2020
113,817
(93)
5,899
(153)
215
(43)
119,931
(289)
119,642
Transfer between stages during the
period
(2,778)
(20)
2,782
(23)
(4)
-
-
(43)
-
Transfer from Stage 1 to Stage 2
(4,190)
10
4,190
(62)
-
-
-
(52)
-
Return from Stage 2 to Stage 1
1,412
(30)
(1,412)
39
-
-
-
9
-
Transfer to Stage 3 ¹
-
-
-
-
-
-
-
-
-
Return from Stage 3 to Stage 2 / Stage 1
-
-
4
-
(4)
-
-
-
-
Total after transfer
111,039
(113)
8,681
(176)
211
(43)
119,931
(332)
119,599
Changes in commitments and loss
allowances
1,564
(11)
(607)
(55)
(30)
12
927
(54)
-
New commitments given ²
97,960
(478)
2,488
(811)
-
-
100,448
(1,289)
-
End of commitments
(100,547)
476
(3,398)
812
(161)
22
(104,106)
1,310
-
Write-off
-
-
-
-
(6)
6
(6)
6
-
Changes of cash flows resulting in
restructuring due to financial difficulties
-
-
-
-
-
-
-
-
-
Changes in models' credit risk
parameters during the period
-
(2)
-
(43)
-
(17)
-
(62)
-
Changes in model / methodology
-
-
-
-
-
-
-
-
-
Changes in scope
-
-
-
-
-
-
-
-
-
Other
4,151
(7)
303
(13)
137
1
4,591
(19)
-
Balance at 31 december 2021
112,603
(124)
8,074
(231)
181
(31)
120,858
(386)
120,472
¹ Transfers to Stage 3 correspond to commitments initially classified in Stage 1,which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year.
The Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² New commitments in Stage 2 could include some originated commitments in Stage 1 reclassified in Stage 2 during the period.
290
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Guarantee commitments
€ million
Performing commitments
Engagements
provisionnés
(Stage 3)
Total
Commitments subject to
12-month ECL (Stage 1)
Commitments subject to
lifetime ECL (Stage 2)
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment
Loss
allowance
Amount of
commit-
ment (a)
Loss
allowance
(b)
Net amount
of commit-
ment
(a) + (b)
Balance at 31 december 2020
48,669
(14)
3,623
(21)
615
(100)
52,907
(135)
52,772
Transfer between stages during the
period
(325)
(1)
256
(2)
69
(8)
-
(11)
-
Transfer from Stage 1 to Stage 2
(1,351)
1
1,351
(6)
-
-
-
(5)
-
Return from Stage 2 to Stage 1
1,027
(2)
(1,027)
3
-
-
-
1
-
Transfer to Stage 3 ¹
(1)
-
(101)
1
102
(8)
-
(7)
-
Return from Stage 3 to Stage 2 / Stage 1
-
-
33
-
(33)
-
-
-
-
Total after transfer
48,344
(15)
3,879
(23)
684
(108)
52,907
(146)
52,761
Changes in commitments and loss
allowances
25,432
1
(1,488)
(1)
(170)
21
23,774
21
-
New commitments given ²
70,617
(69)
1,377
(123)
71,994
(192)
-
End of commitments
(47,634)
71
(3,015)
127
(240)
48
(50,889)
246
-
Write-off
-
-
-
-
(40)
40
(40)
40
-
Changes of cash flows resulting in
restructuring due to financial difficulties
-
-
-
-
-
-
-
-
-
Changes in models' credit risk
parameters during the period
-
1
-
(4)
-
(61)
-
(64)
-
Changes in model / methodology
-
-
-
-
-
-
-
-
-
Changes in scope
(47)
-
-
-
(7)
-
(54)
-
-
Other
2,496
(2)
150
(1)
117
(6)
2,763
(9)
-
Balance at 31 december 2021
73,776
(14)
2,391
(24)
514
(87)
76,681
(125)
76,556
¹ Transfers to Stage 3 correspond to commitments initially classified in Stage 1,which were directly declassified to Stage 3, or to Stage 2 then Stage 3, over the course of the year.
The Stages provisioning principles are pesented in “Accounting policies and principles” of Crédit Agricole CIB in the chapter “Risk factor - credit risk”.
² New commitments in Stage 2 could include some originated commitments in Stage 1 reclassified in Stage 2 during the period.
291
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.1.2 MAXIMUM EXPOSURE TO CREDIT RISK
An entity’s maximum credit risk exposure corresponds to the carrying amount, net of any recognised impairment loss and excluding
assets held as collateral or other credit enhancements (e.g. netting agreements not qualifying for offsetting conditions under IAS 32).
The tables below show the maximum exposures as well as the amount of collateral held and other credit enhancement techniques
used to reduce this exposure.
Impaired assets at the reporting date correspond to credit-impaired assets (Stage 3).
f
Financial assets not subject to impairment requirements (recognised at fair value through profit or loss)
€ million
31.12.2021
Maximum
exposure to
credit risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees
Credit
derivatives
Financial assets at fair value through profit
or loss (excluding equity securities and
assets backing unit-linked contracts)
243,608
-
-
1,279
39
-
Financial assets held for trading
243,544
-
-
1,279
-
-
Debt instruments that do not meet the conditions
of the “SPPI” test
64
-
-
-
39
-
Financial assets designated at fair value through
profit or loss
-
-
-
-
-
-
Hedging derivative Instruments
1,323
-
-
-
-
-
TOTAL
244,931
-
-
1,279
39
-
€ million
31.12.2020
Maximum
exposure to
credit risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees
Credit
derivatives
Financial assets at fair value through profit
or loss (excluding equity securities and
assets backing unit-linked contracts)
277,935
-
3,864
702
112
-
Financial assets held for trading
277,880
-
-
691
-
-
Debt instruments that do not meet the conditions
of the “SPPI” test
55
-
3,864
11
112
-
Financial assets designated at fair value through
profit or loss
-
-
-
-
-
-
Hedging derivative Instruments
1,503
-
-
1,329
-
-
TOTAL
279,438
-
3,864
2,031
112
-
292
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Financial assets subject to impairment requirements
€ million
31.12.2021
Maximum
exposure to
credit risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees
Credit
derivatives
Financial assets at fair value through other
comprehensive income that may be reclassified to
profit or loss
13,081
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Loans and receivables due from credit institutions
-
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Loans and receivables due from customers
-
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Debt securities
13,081
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Financial assets at amortised cost
239,071
-
39,297
2,690
41,738
907
of which impaired assets at the reporting date
2,041
-
-
-
156
-
Loans and receivables due from credit institutions
43,600
-
-
2
3,610
-
of which impaired assets at the reporting date
51
-
-
-
-
-
Loans and receivables due from customers
165,830
-
39,297
2,688
38,128
907
of which impaired assets at the reporting date
1,990
-
-
-
156
-
Debt securities
29,641
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Total
252,152
-
39,297
2,690
41,738
907
of which impaired assets at the reporting date
2,041
-
-
-
156
-
€ million
31.12.2020
Maximum
exposure to
credit risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees
Credit
derivatives
Financial assets at fair value through other
comprehensive income that may be reclassified to
profit or loss
11,042
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Loans and receivables due from credit institutions
-
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Loans and receivables due from customers
-
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Debt securities
11,042
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Financial assets at amortised cost
203,633
-
35,729
3,140
34,641
700
of which impaired assets at the reporting date
2,282
-
-
45
612
-
Loans and receivables due from credit institutions
26,742
-
-
77
3,156
700
of which impaired assets at the reporting date
47
-
-
-
28
-
Loans and receivables due from customers
142,001
-
35,729
3,063
31,485
-
of which impaired assets at the reporting date
2,235
-
-
45
584
-
Debt securities
34,890
-
-
-
-
-
of which impaired assets at the reporting date
-
-
-
-
-
-
Total
214,675
-
35,729
3,140
34,641
700
of which impaired assets at the reporting date
2,282
-
-
45
612
-
293
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Off-balance sheet commitments subject to provisioning requirements
€ million
31.12.2021
Maximum
exposure to credit
risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees Credit derivatives
Guarantee commitments (Except
internal transactions to the group
Credit Agricole)
76,556
-
8
224
4,581
1,527
of which provisioned commitments at the
reporting date
427
-
-
-
-
-
Financing commitments (Except
internal transactions to the group
Credit Agricole)
120,472
-
105
495
19,448
7,593
of which provisioned commitments at the
reporting date
150
-
-
-
-
-
Total
197,028
-
113
719
24,029
9,120
of which provisioned commitments at the
reporting date
577
-
-
-
-
-
€ million
31.12.2020
Maximum
exposure to credit
risk
Credit risk mitigation
Collateral held as security
Other credit enhancement
Financial
instruments
provided as
collateral
Mortgages
Pledged
securities
Guarantees Credit derivatives
Guarantee commitments (Except
internal transactions to the group
Credit Agricole)
52,774
-
-
216
1,801
553
of which provisioned commitments at the
reporting date
518
-
-
91
8
-
Financing commitments (Except
internal transactions to the group
Credit Agricole)
119,643
-
75
438
11,535
7,827
of which provisioned commitments at the
reporting date
172
-
-
-
9
-
Total
172,417
-
75
654
13,336
8,380
of which provisioned commitments at the
reporting date
690
-
-
91
17
-
A description of assets held as collateral is presented in Note 9 “Loan and guarantee commitments and other guarantees”.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.1.3 MODIFIED FINANCIAL ASSETS
Modified financial assets comprise assets restructured due to financial hardships. These are receivables for which Crédit Agricole CIB
has modified the initial financial terms (interest rate, maturity, etc.) for economic or legal reasons associated with the borrower’s financial
hardships, under conditions that would not have been considered in other circumstances. They can thus comprise receivables classified
as defaulted or as performing at the restructuring date. (A more detailed definition of restructured outstandings and their accounting
treatment is detailed in Note 1.2 “Accounting policies and principles”, Chapter “Financial instruments - Credit risk”).
For assets restructured over the period, the carrying amount established post-restructuring is:
€ million
Performing assets
Credit-impaired assets
(Stage 3)
Assets subject to 12-month
ECL (Stage 1)
Assets subject to lifetime ECL
(Stage 2)
Loans and receivables due from credit institutions
-
-
-
Gross carrying amount before modification
-
-
-
Net gain (loss) resulting from the modification
-
-
-
Loans and receivables due from customers
-
1,033
835
Gross carrying amount before modification
-
1,033
835
Net gain (loss) resulting from the modification
-
-
-
Debt securities
-
-
-
Gross carrying amount before modification
-
-
-
Net gain (loss) resulting from the modification
‐
‐
‐
In accordance with the principles set out in Note 1.2 “Accounting principles and methods,” Chapter “Financial instruments - Credit risk,”
restructured assets classified in Stage 2 (performing assets) or Stage 3 (credit-impaired assets) may be returned to Stage 1 (performing
assets). The carrying amount of modified assets subject to reclassification over the period is:
€ million
Gross carrying amount
Assets subject to 12-month ECL (Stage 1)
Restructured assets previously classified in Stage 2 or Stage 3 and reclassified
in Stage 1 during the period
-
Loans and receivables due from credit institutions
‐
Loans and receivables due from customers
3
Debt securities
‐
TOTAL
3
295
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.1.4 CONCENTRATIONS OF CREDIT RISK
Carrying amounts and amounts of commitments are presented net of impairments and provisions.
EXPOSURE TO CREDIT RISK BY CREDIT RISK CLASS
Credit risk classes are shown in PD intervals. The correspondence between internal ratings and PD intervals is detailed in the “Risks
and Pillar 3 – Credit risk management” chapter of the Crédit Agricole CIB Registration Document.
f
Financial assets at amortised cost
€ million
Credit risk rating
grades
At 31 december 2021
At 31 december 2020
Carrying amount
Carrying amount
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Assets
subject to
12-month
ECL
(Stage 1)
Assets
subject to
lifetime ECL
(Stage 2)
Assets
subject to
12-month
ECL
(Stage 1)
Assets
subject to
lifetime ECL
(Stage 2)
Non-retail customers
PD ≤ 0,6%
185,128
5,128
-
190,256
155,653
3,621
-
159,274
0,6% < PD ≤ 12%
20,106
13,416
-
33,522
17,191
11,104
-
28,295
12% < PD < 100%
-
1,183
-
1,183
-
2,979
-
2,979
PD = 100%
-
-
4,211
4,211
-
-
4,527
4 527
Total Non-retail customers
205,234
19,727
4,211
229,172
172,844
17,704
4,527
195,075
Retail customers
PD ≤ 0,5%
12,192
4
-
12,196
11,027
19
-
11,046
0,5% < PD ≤ 2%
554
1
-
555
463
1
-
464
2% < PD ≤ 20%
18
28
-
46
1
47
-
48
20% < PD < 100%
-
-
-
-
-
-
-
-
PD = 100%
-
-
70
70
-
-
67
67
Total Retail customers
12,764
33
70
12,867
11,491
67
67
11,625
Impairment
(203)
(525)
(2,240)
(2,968)
(184)
(574)
(2,310)
(3,068)
TOTAL
217,795
19,235
2,041
239,071
184,151
17,197
2,284
203,632
f
Financial assets at fair value through other comprehensive income that can be reclassified to profit or loss
€ million
Credit risk rating
grades
At 31 december 2021
At 31 december 2020
Carrying amount
Carrying amount
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Assets
subject to
12-month
ECL
(Stage 1)
Assets
subject to
lifetime ECL
(Stage 2)
Assets
subject to
12-month
ECL
(Stage 1)
Assets
subject to
lifetime ECL
(Stage 2)
Non-retail customers
PD ≤ 0,6%
12,751
-
-
12,751
10,945
-
-
10,945
0,6% < PD ≤ 12%
330
-
-
330
97
-
-
97
12% < PD < 100%
-
-
-
-
-
-
-
-
PD = 100%
-
-
-
-
-
-
-
Total Non-retail customers
13,081
-
-
13,081
11,042
-
-
11,042
Retail customers
PD ≤ 0,5%
-
-
-
-
-
-
-
0,5% < PD ≤ 2%
-
-
-
-
-
-
-
2% < PD ≤ 20%
-
-
-
-
-
-
-
20% < PD < 100%
-
-
-
-
-
-
-
-
PD = 100%
-
-
-
-
-
-
-
-
Total Retail customers
-
-
-
-
-
-
-
TOTAL
13,081
-
-
13,081
11,042
-
-
11,042
296
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Loan commitments
€ million
Credit risk rating
grades
At 31 december 2021
At 31 december 2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitment
(Stage 3)
Total
Performing commitments
Provisioned
commitment
(Stage 3)
Total
Commit-
ments
subject to
12-month
ECL
(Stage 1)
Commit-
ments
subject to
lifetime ECL
(Stage 2)
Commit-
ments
subject to
12-month
ECL
(Stage 1)
Commit-
ments
subject to
lifetime ECL
(Stage 2)
Non-retail customers
PD ≤ 0,6%
100,884
1,559
-
102,443
103,136
897
-
104,033
0,6% < PD ≤ 12%
9,976
5,746
-
15,722
8,766
4,302
-
13,068
12% < PD < 100%
-
761
-
761
-
694
-
694
PD = 100 %
-
-
181
181
-
-
212
212
Total Non-retail customers
110,860
8,066
181
119,107
111,902
5,893
212
118,007
Retail customers
PD ≤ 0,5%
1,610
-
-
1,610
1,780
-
-
1,780
0,5% < PD ≤ 2%
130
-
-
130
136
1
-
137
2% < PD ≤ 20%
3
8
-
11
-
3
-
3
20% < PD < 100%
-
-
-
-
-
-
-
-
PD = 100%
-
-
-
-
-
-
3
3
Total Retail customers
1,743
8
-
1,751
1,916
4
3
1,923
Provisions ¹
(124)
(231)
(31)
(386)
(93)
(153)
(42)
(288)
TOTAL
112,479
7,843
150
120,472
113,725
5,744
173
119,642
¹ Expected or recorded losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
f
Guarantee commitments
€ million
Credit risk rating
grades
At 31 december 2021
At 31 december 2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitment
(Stage 3)
Total
Performing commitments
Provisioned
commitment
(Stage 3)
Total
Commit-
ments
subject to
12-month
ECL
(Stage 1)
Commit-
ments
subject to
lifetime ECL
(Stage 2)
Commit-
ments
subject to
12-month
ECL
(Stage 1)
Commit-
ments
subject to
lifetime ECL
(Stage 2)
Non-retail customers
PD ≤ 0,6%
68,987
951
-
69,938
44,296
1,088
-
45,384
0,6% < PD ≤ 12%
4,120
1,158
-
5,278
3,720
1,125
-
4,845
12% < PD < 100%
-
280
-
280
-
1,407
-
1,407
PD = 100 %
-
-
514
514
-
-
616
616
Total Non-retail customers
73,107
2,389
514
76,010
48,016
3,620
616
52,252
Retail customers
PD ≤ 0,5%
622
1
-
623
620
-
-
620
0,5% < PD ≤ 2%
45
-
-
45
31
-
-
31
2% < PD ≤ 20%
2
1
-
3
1
2
-
3
20% < PD < 100%
-
-
-
-
-
-
-
-
PD = 100%
-
-
-
-
-
-
-
-
Total Retail customers
669
2
-
671
652
2
-
654
Provisions ¹
(14)
(24)
(87)
(125)
(14)
(21)
(99)
(134)
TOTAL
73,762
2,367
427
76,556
48,654
3,601
517
52,772
¹ Expected or recorded losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
297
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.1.5 CONCENTRATIONS OF CREDIT RISK BY ECONOMIC AGENT
f
Financial assets at amortised cost by economic agent
€ million
At 31 december 2021
At 31 december 2020
Carrying amount
Carrying amount
Performing assets
Credit-impaired
assets
(Stage 3)
Total
Performing assets
Credit-impaired
assets
(Stage 3)
Total
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
General administration
17,239
850
48
18,137
17,091
698
58
17,847
Central banks
3,416
-
-
3,416
2,706
-
-
2,706
Credit institutions
46,429
34
431
46,894
32,049
55
402
32,506
Large corporates
138,150
18,843
3,732
160,725
120,997
16,950
4,068
142,015
Retail customers
12,764
33
70
12,867
11,492
68
66
11,626
Impairment
(203)
(525)
(2,240)
(2,968)
(184)
(574)
(2,310)
(3,068)
TOTAL
217,795
19,235
2,041
239,071
184,151
17,197
2,284
203,632
f
Financial assets at fair value through other comprehensive income recyclable to income by economic
agent
€ million
At 31 december 2021
At 31 december 2020
Carrying amount
Carrying amount
Performing assets
Credit-impaired
assets
(Stage 3)
Total
Performing assets
Credit-impaired
assets
(Stage3)
Total
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
General administration
9,954
-
-
9,954
7,311
-
-
7,311
Central banks
-
-
-
-
66
-
-
66
Credit institutions
2,456
-
-
2,456
2,923
-
-
2,923
Large corporates
671
-
-
671
742
-
-
742
Retail customers
-
-
-
-
-
-
-
-
TOTAL
13,081
-
-
13,081
11,042
-
-
11,042
f
Amounts due to customers by economic agent
€ million
31.12.2021
31.12.2020
General administration
12,737
7,377
Large corporates
123,592
120,391
Retail customers
23,249
21,316
TOTAL AMOUNT DUE TO CUSTOMERS
159,578
149,084
f
Loan commitments by economic agent
€ million
At 31 december 2021
At 31 december 2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
General administration
4,008
871
-
4,879
2,921
743
-
3,664
Central banks
-
-
-
-
-
-
-
-
Credit institutions
6,225
-
-
6,225
8,396
-
-
8,396
Large corporates
100,627
7,195
181
108,003
100,583
5,154
212
105,949
Retail customers
1,743
8
-
1,751
1,916
3
3
1,922
Provisions ¹
(124)
(231)
(31)
(386)
(93)
(154)
(42)
(289)
TOTAL
112,479
7,843
150
120,472
113,723
5,746
173
119,642
¹ Expected or recorded losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
298
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Guarantee commitments by economic agent
€ million
31.12.2021
31.12.2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
General administration
36
-
-
36
1
-
-
1
Central banks
433
-
-
433
464
-
-
464
Credit institutions
8,589
20
-
8,609
5,876
34
2
5,912
Large corporates
64,049
2,369
514
66,932
41,674
3,586
613
45,873
Retail customers
669
2
-
671
653
2
1
656
Provisions ¹
(14)
(24)
(87)
(125)
(14)
(21)
(99)
(134)
TOTAL
73,762
2,367
427
76,556
48,654
3,601
517
52,772
¹ Expected or recorded losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
3.1.6 CONCENTRATION OF CREDIT RISK BY GEOGRAPHIC AREA
f
Financial assets at amortised cost by geographic area
€ million
31.12.2021
31.12.2020
Carrying amount
Carrying amount
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
France (including overseas
departments and territories)
67,936
3,638
806
72,380
49,283
3,580
808
53,671
Other European Union
countries
38,680
2,932
558
42,170
44,168
3,494
869
48,531
Other European countries
25,106
1,652
327
27,085
13,577
501
213
14,291
North America
27,365
3,876
231
31,472
25,783
3,324
293
29,400
Central and South America
8,100
2,082
1,376
11,558
6,794
2,059
1,204
10,057
Africa and Middle East
12,626
1,870
587
15,083
11,333
1,841
677
13,851
Asia-Pacific (ex. Japan)
33,858
2,550
266
36,674
29,586
1,778
299
31,663
Japan
4,186
1,160
130
5,476
3,811
1,194
231
5,236
Supranational organisations
141
-
-
141
-
-
-
-
Impairment
(203)
(525)
(2,240)
(2,968)
(184)
(574)
(2,310)
(3,068)
TOTAL
217,795
19,235
2,041
239,071
184,151
17,197
2,284
203,632
f
Financial assets at fair value through other comprehensive income recyclable to income by geographic
area
€ million
31.12.2021
31.12.2020
Carrying amount
Carrying amount
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Performing assets
Credit-
impaired
assets
(Stage 3)
Total
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
Assets subject
to 12-month
ECL (Stage 1)
Assets subject
to lifetime ECL
(Stage 2)
France (including overseas
departments and territories)
2,454
-
-
2,454
2,017
-
-
2,017
Other European Union
countries
4,375
-
-
4,375
4,212
-
-
4,212
Other European countries
675
-
-
675
506
-
-
506
North America
2,457
-
-
2,457
2,203
-
-
2,203
Central and South America
214
-
-
214
112
-
-
112
Africa and Middle East
389
-
-
389
331
-
-
331
Asia-Pacific (ex. Japan)
1,170
-
-
1,170
842
-
-
842
Japan
1,306
-
-
1,306
699
-
-
699
Supranational organisations
41
-
-
41
120
-
-
120
TOTAL
13,081
-
-
13,081
11,042
-
-
11,042
299
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.1.7 AMOUNTS DUE TO CUSTOMERS BY GEOGRAPHIC AREA
€ million
31.12.2021
31.12.2020
France (including overseas departments and territories)
35,847
34,536
Other European Union countries
42,130
41,677
Other European countries
22,859
12,487
North America
16,739
22,448
Central and South America
5,556
5,204
Africa and Middle East
8,267
6,595
Asia-Pacific (ex. Japan)
17,555
13,630
Japan
10,625
12,507
Supranational organisations
-
-
TOTAL AMOUNT DUE TO CUSTOMERS
159,578
149,084
f
Loan commitments by geographic area
€ million
31.12.2021
31.12.2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
France (including overseas
departments and territories)
33,571
977
41
34,589
38,074
662
41
38,777
Other European Union
countries
24,670
1,311
95
26,076
35,384
1,102
148
36,634
Other European countries
12,433
869
4
13,306
5,749
164
2
5,915
North America
26,243
2,698
1
28,942
22,324
2,446
3
24,773
Central and South America
2,487
1,360
39
3,886
1,939
1,231
1
3,171
Africa and Middle East
4,338
468
-
4,806
3,331
281
-
3,612
Asia-Pacific (ex. Japan)
7,739
391
1
8,131
6,146
14
20
6,180
Japan
1,122
-
-
1,122
869
-
-
869
Supranational organisations
-
-
-
-
-
-
-
-
Provisions ¹
(124)
(231)
(31)
(386)
(93)
(154)
(42)
(289)
TOTAL
112,479
7,843
150
120,472
113,723
5,746
173
119,642
¹ Expected or recorded losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
3.1.8 GUARANTEE COMMITMENTS BY GEOGRAPHIC AREA
€ million
31.12.2021
31.12.2020
Amount of commitment
Amount of commitment
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Performing commitments
Provisioned
commitments
(Stage 3)
Total
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
Commitments
subject to
12-month ECL
(Stage 1)
Commitments
subject to
lifetime ECL
(Stage 2)
France (including overseas
departments and territories)
21,612
255
1
21,868
11,469
327
11
11,807
Other European Union
countries
11,032
967
386
12,385
11,830
1,395
487
13,712
Other European countries
8,777
287
77
9,141
3,061
140
-
3,201
North America
19,678
559
13
20,250
11,447
1,267
53
12,767
Central and South America
1,063
99
3
1,165
1,340
3
18
1,361
Africa and Middle East
1,687
17
29
1,733
1,554
48
29
1,631
Asia-Pacific (ex. Japan)
8,692
116
5
8,813
6,681
334
18
7,033
Japan
1,235
91
-
1,326
1,286
108
-
1,394
Supranational organisations
-
-
-
-
-
-
-
-
Provisions ¹
(14)
(24)
(87)
(125)
(14)
(21)
(99)
(134)
TOTAL
73,762
2,367
427
76,556
48,654
3,601
517
52,772
¹ Expected or incurred losses in respect of off-balance sheet commitments are covered by provisions recognised as liabilities.
300
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.2 Market risk
(See Management Report)
3.2.1 DERIVATIVE TRANSACTIONS: ANALYSIS BY RESIDUAL MATURITY
The breakdown of the MtMs of derivative instruments is shown by remaining contractual maturity.
f
Hedging derivatives - fair value of assets
€ million
31.12.2021
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
638
44
11
693
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
638
44
11
693
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
-
-
-
Other options
-
-
-
-
-
-
-
Currency
-
-
-
65
3
-
68
Currency futures
-
-
-
65
3
-
68
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
26
-
-
26
Other
-
-
-
26
-
-
26
Subtotal
-
-
-
729
47
11
787
Forward currency transactions
-
-
-
536
-
-
536
TOTAL FAIR VALUE OF HEDGING
DERIVATIVES - ASSETS
-
-
-
1,265
47
11
1,323
€ million
31.12.2020
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
1,123
18
9
1,150
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
1,123
18
9
1,150
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
-
-
-
Other options
-
-
-
-
-
-
-
Currency
-
-
-
107
30
-
137
Currency futures
-
-
-
107
30
-
137
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
15
-
-
15
Other
-
-
-
15
-
-
15
Subtotal
-
-
-
1,245
48
9
1,302
Forward currency transactions
-
-
-
201
-
-
201
TOTAL FAIR VALUE OF HEDGING
DERIVATIVES - ASSETS
-
-
-
1,446
48
9
1,503
301
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Hedging derivatives - fair value of liabilities
€ million
31.12.2021
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
775
19
20
814
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
775
19
20
814
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
-
-
-
Other options
-
-
-
-
-
-
-
Currency
-
-
-
34
-
-
34
Currency futures
-
-
-
34
-
-
34
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
16
-
-
16
Other
-
-
-
16
-
-
16
Subtotal
-
-
-
825
19
20
864
Forward currency transactions
-
-
-
338
-
-
338
TOTAL FAIR VALUE OF HEDGING
DERIVATIVES - LIABILITIES
-
-
-
1,163
19
20
1,202
€ million
31.12.2020
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
1,018
101
42
1,161
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
1,018
101
42
1,161
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
-
-
-
Other options
-
-
-
-
-
-
-
Currency
-
-
-
96
4
-
100
Currency futures
-
-
-
96
4
-
100
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
35
-
-
35
Other
-
-
-
35
-
-
35
Subtotal
-
-
-
1,149
105
42
1,296
Forward currency transactions
-
-
-
413
-
-
413
TOTAL FAIR VALUE OF HEDGING
DERIVATIVES - LIABILITIES
-
-
-
1,562
105
42
1,709
302
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Trading derivatives - fair value of assets
€ million
31.12.2021
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
4
2
-
3,666
15,616
49,594
68,882
Futures
-
2
-
-
-
-
2
FRAs
-
-
-
2
-
-
2
Interest rate swaps
-
-
-
3,205
13,383
39,896
56,484
Interest rate options
-
-
-
1
984
8,817
9,802
Caps - floors - collars
-
-
-
458
1,249
881
2,588
Other options
4
-
-
-
-
-
4
Currency and gold
88
15
-
5,098
4,219
4,297
13,717
Currency futures
87
15
-
3,459
3,248
3,894
10,703
Currency options
1
-
-
1,639
971
403
3,014
Other instruments
302
854
98
1,368
4,932
888
8,442
Equity and index derivatives
302
854
98
1,143
4,810
517
7,724
Precious metal derivatives
-
-
-
35
-
-
35
Commodities derivatives
-
-
-
-
-
-
-
Credit derivatives
-
-
-
30
71
62
163
Other
-
-
-
160
51
309
520
Subtotal
394
871
98
10,132
24,767
54,779
91,041
Forward currency transactions
-
-
-
12,585
1,049
138
13,772
TOTAL FAIR VALUE OF TRANSACTION
DERIVATIVES - ASSETS
394
871
98
22,717
25,816
54,917
104,813
€ million
31.12.2020
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
5
-
-
5,499
23,062
67,562
96,128
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
3
-
-
3
Interest rate swaps
-
-
4,882
19,738
52,847
77,467
Interest rate options
-
-
-
52
2,220
13,431
15,703
Caps - floors - collars
-
-
-
562
1,104
1,284
2,950
Other options
5
-
-
-
-
5
Currency and gold
-
-
-
6,615
3,700
3,907
14,222
Currency futures
-
-
-
4,342
3,047
3,569
10,958
Currency options
-
-
-
2,273
653
338
3,264
Other instruments
655
651
127
1,580
4,157
1,197
8,367
Equity and index derivatives
655
651
127
1,283
4,012
306
7,034
Precious metal derivatives
-
-
96
2
-
98
Commodities derivatives
-
-
-
-
-
-
-
Credit derivatives
-
-
18
80
52
150
Other
-
-
-
183
63
839
1,085
Subtotal
660
651
127
13,694
30,919
72,666
118,717
Forward currency transactions
-
-
-
14,872
1,153
175
16,200
TOTAL FAIR VALUE OF TRANSACTION
DERIVATIVES - ASSETS
660
651
127
28,566
32,072
72,841
134,917
303
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Trading derivatives - fair value of liabilities
€ million
31.12.2021
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
2
-
3,170
15,846
51,190
70,208
Futures
-
2
-
-
-
-
2
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
2,503
13,294
39,341
55,138
Interest rate options
-
-
-
461
1,350
10,512
12,323
Caps - floors - collars
-
-
-
206
1,202
1,337
2,745
Other options
-
-
-
-
-
-
-
Currency and gold
98
20
-
3,392
3,660
3,458
10,628
Currency futures
98
20
-
2,134
2,739
3,112
8,103
Currency options
-
-
-
1,258
921
346
2,525
Other instruments
553
764
109
1,314
1,952
604
5,296
Equity and index derivatives
553
764
109
492
1,564
202
3,684
Precious metal derivatives
-
-
-
45
-
-
45
Commodities derivatives
-
-
-
-
-
-
-
Credit derivatives
-
-
-
207
320
37
564
Other
-
-
-
570
68
365
1,003
Subtotal
651
786
109
7,876
21,458
55,252
86,132
Forward currency transactions
-
-
-
12,518
1,348
474
14,340
TOTAL FAIR VALUE OF TRANSACTION
DERIVATIVES - LIABILITIES
651
786
109
20,394
22,806
55,726
100,472
€ million
31.12.2020
Exchange-traded transactions
Over-the-counter transactions
Total market
value
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
4,133
22,379
69,352
95,864
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
3,634
18,969
52,231
74,834
Interest rate options
-
-
-
180
2,370
15,247
17,797
Caps - floors - collars
-
-
-
317
1,040
1,874
3,231
Other options
-
-
2
-
-
2
Currency and gold
1
-
-
4,796
3,381
3,477
11,655
Currency futures
-
-
-
2,871
2,842
3,288
9,001
Currency options
1
-
-
1,925
539
189
2,654
Other instruments
380
729
184
1,193
2,373
474
5,333
Equity and index derivatives
380
729
184
658
2,026
241
4,218
Precious metal derivatives
-
-
85
2
-
87
Commodities derivatives
-
-
-
-
-
-
-
Credit derivatives
-
-
195
318
30
543
Other
-
-
-
255
27
203
485
Subtotal
381
729
184
10,122
28,133
73,303
112,852
Forward currency transactions
-
-
-
15,319
1,070
207
16,596
TOTAL FAIR VALUE OF TRANSACTION
DERIVATIVES - LIABILITIES
381
729
184
25,441
29,203
73,510
129,448
304
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.2.2 DERIVATIVE TRANSACTIONS: AMOUNT OF COMMITMENTS
€ million
31.12.2021
31.12.2020
Interest rate instruments
14,110,254
12,883,633
Futures
172,085
115,284
FRAs
1,346,793
2,561,479
Interest rate swaps
11,190,511
8,869,452
Interest rate options
745,739
723,370
Caps - floors - collars
484,506
513,641
Other options
170,620
100,407
Currency and gold
550,387
459,826
Currency futures
311,015
243,212
Currency options
239,372
216,614
Other instruments
141,015
125,269
Equity and index derivatives
74,002
65,669
Precious metal derivatives
2,866
3,863
Commodities derivatives
7
4
Credit derivatives
20,958
20,620
Other
43,182
35,113
Subtotal
14,801,656
13,468,728
Forward currency transactions
2,454,959
1,868,873
TOTAL NOTIONAL AMOUNTS
17,256,615
15,337,601
3.3 Liquidity and financing risk
(See Chapter on “Risk Management - Balance Sheet Management”)
3.3.1 LOANS AND RECEIVABLES DUE FROM CREDIT INSTITUTIONS AND CLIENTS BY RESIDUAL MATURITY
€ million
31.12.2021
≤ 3 months
> 3 months
to
≤ 1 year
> 1 year
to ≤ 5 years
> 5 years
Indefinite
Total
Loans and receivables due from credit institutions
(including Crédit Agricole internal transactions)
27,373
11,939
2,660
2,012
2
43,986
Loans and receivables due from customers (of
which finance leases)
69,964
20,794
61,325
16,301
-
168,384
Total
97,337
32,733
63,985
18,313
2
212,370
Impairment
-
-
-
-
-
(2,940)
TOTAL LOANS AND RECEIVABLES DUE
FROM CREDIT INSTITUTIONS AND FROM
CUSTOMERS
97,337
32,733
63,985
18,313
2
209,430
€ million
31.12.2020
≤ 3 months
> 3 months
to
≤ 1 year
> 1 year
to ≤ 5 years
> 5 years
Indefinite
Total
Loans and receivables due from credit institutions
(including Crédit Agricole internal transactions)
21,449
2,829
1,459
1,362
2
27,101
Loans and receivables due from customers (of
which finance leases)
49,227
22,143
57,361
15,950
-
144,681
Total
70,676
24,972
58,820
17,312
2
171,782
Impairment
-
-
-
-
-
(3,041)
TOTAL LOANS AND RECEIVABLES DUE
FROM CREDIT INSTITUTIONS AND FROM
CUSTOMERS
70,676
24,972
58,820
17,312
2
168,741
305
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.3.2 DUE TO BANKS AND CLIENTS BY RESIDUAL MATURITY
€ million
31.12.2021
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Due to credit institutions (including Crédit
Agricole internal transactions)
33,716
7,521
32,780
4,425
-
78,442
Due to customers
152,477
6,568
158
375
-
159,578
TOTAL AMOUNT DUE TO CREDIT
INSTITUTIONS AND TO CUSTOMERS
186,193
14,089
32,938
4,800
-
238,020
€ million
31.12.2020
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Due to credit institutions (including Crédit
Agricole internal transactions)
29,450
3,135
23,561
5,304
-
61,450
Due to customers
141,791
6,481
378
434
-
149,084
TOTAL AMOUNT DUE TO CREDIT
INSTITUTIONS AND TO CUSTOMERS
171,241
9,616
23,939
5,738
-
210,534
3.3.3 DEBT SECURITIES AND SUBORDINATED DEBT
€ million
31.12.2021
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Debt securities
-
-
-
-
-
-
Interest bearing notes
-
-
-
-
-
-
Money-market securities
-
-
-
-
-
-
Negotiable debt securities
36,768
10,789
-
-
-
47,557
Bonds
-
650
2,813
748
-
4,211
Other debt securities
-
-
-
-
-
-
TOTAL DEBT SECURITIES
36,768
11,439
2,813
748
-
51,768
Subordinated debt
Dated subordinated debt
7
-
750
2,789
-
3,546
Undated subordinated debt
12
-
-
-
521
533
Mutual security deposits
-
-
-
-
-
-
Participating securities and loans
-
-
-
-
-
-
TOTAL SUBORDINATED DEBT
19
-
750
2,789
521
4,079
€ million
31.12.2020
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Debt securities
-
-
-
-
-
-
Interest bearing notes
-
-
-
-
-
-
Money-market securities
-
-
-
-
-
-
Negotiable debt securities
28,984
9,105
47
-
-
38,136
Bonds
4,015
-
78
-
-
4,093
Other debt securities
-
-
-
-
-
-
TOTAL DEBT SECURITIES
32,999
9,105
125
-
-
42,229
Subordinated debt
Dated subordinated debt
-
-
-
3,230
-
3,230
Undated subordinated debt
46
-
-
-
1,075
1,121
Mutual security deposits
-
-
-
-
-
-
Participating securities and loans
-
-
-
-
-
-
TOTAL SUBORDINATED DEBT
46
-
-
3,230
1,075
4,351
306
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.3.4 AT-RISK FINANCIAL GUARANTEES GIVEN BY EXPECTED MATURITY
The amounts presented are the amount of at-risk financial guarantees expected to be called up, i.e. guarantees that have been impaired
or are on a watch-list.
€ million
31.12.2021
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Financial guarantees given
2
68
32
4
-
106
€ million
31.12.2020
≤ 3 months
> 3 months to
≤ 1 year
> 1 year to
≤ 5 years
> 5 years
Indefinite
Total
Financial guarantees given
2
67
30
5
-
104
The contractual maturities of derivative instruments are presented in Note 3.2 “Market risk”.
3.4 Hedge accounting
(See Note 3.2 “Market risk” and “Risk management - Balance sheet management” chapter of the Crédit Agricole S.A. Universal
Registration Document)
3.4.1 FAIR VALUE HEDGES
Fair value hedges modify the risk caused by changes in the fair value of a fixed-rate financial instrument as a result of changes in interest
rates. These hedges transform fixed-rate assets or liabilities into floating-rate items.
Fair value-hedged items mainly include fixed-rate loans, securities, deposits and subordinated debt.
3.4.2 CASH FLOW HEDGES
Cash flow hedges modify the risk inherent in the cash flow variability associated with floating-rate instruments.
Cash flow hedged items mainly consist of floating-rate loans and deposits.
3.4.3 NET INVESTMENT HEDGES IN A FOREIGN OPERATION
Net investment hedges in a foreign operation modify the risk inherent in exchange rate fluctuations associated with foreign-currency
equity investments in subsidiaries.
3.4.4 HEDGING DERIVATIVES
€ million
31.12.2021
31.12.2020
Market value
Notional
amount
Market value
Notional
amount
Positive
Negative
Positive
Negative
Fair value hedges
608
664
90,299
523
1,504
77,104
Interest rate
322
644
74,097
392
1,156
63,309
Foreign exchange
286
20
16,202
131
348
13,795
Other
-
-
-
-
-
-
Cash flow hedges
711
494
52,464
952
201
45,829
Interest rate
371
169
20,139
758
5
17,175
Foreign exchange
314
310
32,191
179
161
28,526
Other
26
15
134
15
35
128
Hedges of net investments in foreign
operations
4
44
1,823
28
4
2,206
TOTAL HEDGING DERIVATIVE
INSTRUMENTS
1,323
1,202
144,586
1,503
1,709
125,139
307
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.4.5 HEDGING DERIVATIVES: ANALYSIS BY RESIDUAL MATURITY (NOTIONALS)
The breakdown of notional values of derivative instruments is shown by remaining contractual maturity.
€ million
31.12.2021
Exchange-traded
Over-the-counter
Total notional
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
50
-
-
84,248
8,589
1,349
94,236
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
50
-
-
84,248
8,589
1,349
94,236
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
-
-
-
Other options
-
-
-
-
-
-
-
Currency
-
-
-
9,797
662
-
10,459
Currency futures
-
-
-
9,797
662
-
10,459
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
134
-
-
134
Other
-
-
-
134
-
-
134
Subtotal
50
-
-
94,179
9,251
1,349
104,829
Forward currency transactions
-
-
-
39,757
-
-
39,757
TOTAL NOTIONAL OF HEDGING
DERIVATIVES
50
-
-
133,936
9,251
1,349
144,586
€ million
31.12.2020
Exchange-traded
Over-the-counter
Total notional
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Interest rate instruments
-
-
-
71,264
8,217
1,004
80,484
Futures
-
-
-
-
-
-
-
FRAs
-
-
-
-
-
-
-
Interest rate swaps
-
-
-
71,264
8,216
1,004
80,483
Interest rate options
-
-
-
-
-
-
-
Caps - floors - collars
-
-
-
-
1
-
1
Other options
-
-
-
-
-
-
-
Currency
-
-
-
7,370
879
-
8,250
Currency futures
-
-
-
7,370
879
-
8,250
Currency options
-
-
-
-
-
-
-
Other instruments
-
-
-
128
-
-
128
Other
-
-
-
128
-
-
128
Subtotal
-
-
-
78,762
9,096
1,004
88,862
Forward currency transactions
-
-
-
36,089
187
-
36,276
TOTAL NOTIONAL OF HEDGING
DERIVATIVES
-
-
-
114,851
9,283
1,004
125,138
Note 3.2 “Market risk - Derivative instruments: Analysis by remaining maturity” presents the breakdown of market values of hedging
derivatives by remaining contractual maturity.
308
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
3.4.6 FAIR VALUE HEDGES
f
Hedging derivatives
€ million
31.12.2021
31.12.2020
Carrying amount
Changes in fair
value during the
period (of which
end of hedges
during the
period)
Notional
Amount
Carrying amount
Changes in fair
value during the
period (of which
end of hedges
during the
period)
Notional
Amount
Assets
Liabilities
Assets
Liabilities
Fair value hedges
-
-
-
-
-
-
-
-
Regulated markets
-
-
-
-
-
-
-
-
Interest rate
-
-
-
-
-
-
-
-
Futures
-
-
-
-
-
-
-
-
Options
-
-
-
-
-
-
-
-
Foreign exchange
-
-
-
-
-
-
-
-
Futures
-
-
-
-
-
-
-
-
Options
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Over-the-counter markets
547
599
816
84,376
401
1,500
(694)
71,422
Interest rate
261
579
342
68,174
270
1,152
(260)
57,627
Futures
261
579
342
68,174
270
1,152
(260)
57,627
Options
-
-
-
-
-
-
-
-
Foreign exchange
286
20
474
16,202
131
348
(434)
13,795
Futures
286
20
474
16,202
131
348
(434)
13,795
Options
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Total Fair value microhedging
547
599
816
84,376
401
1,500
(694)
71,422
Fair value hedges of the interest
rate exposure of a portfolio of
financial instruments
61
65
(93)
5,923
122
3
40
5,683
TOTAL FAIR VALUE HEDGES
608
664
723
90,299
523
1,503
(654)
77,105
Changes in the fair value of hedging derivatives are recorded under “Net gains (losses) on financial instruments at fair value through
profit or loss” in the income statement.
309
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
Hedged items
f
Micro-hedging
€ million
31.12.2021
31.12.2020
Present hedges
Ended hedges
Fair value
hedge
adjustments
during
the period
(including
termination of
hedges during
the period)
Present hedges
Ended hedges
Fair value
hedge
adjustments
during
the period
(including
termination of
hedges during
the period)
Carrying
amount
of which
accumulated
fair value
hedge
adjustments
Accumulated
fair value
hedge
adjustments
to be adjusted
for hedging
remaining to
be amortised
Carrying
amount
of which
accumulated
fair value
hedge
adjustments
Accumulated
fair value
hedge
adjustments
to be adjusted
for hedging
remaining to
be amortised
Debt instruments at fair value
through other comprehensive
income that may be
reclassified to profit or loss
11,793
44
-
(180)
10,047
189
-
68
Interest rate
11,793
44
-
(180)
10,047
189
-
68
Foreign exchange
-
-
-
-
-
-
-
(1)
Other
-
-
-
-
-
-
-
-
Debt instruments at amortised
cost
51,973
372
(12)
(551)
42,257
914
-
562
Interest rate
47,312
385
(12)
(294)
38,682
673
-
268
Foreign exchange
4,661
(13)
-
(257)
3,575
240
-
295
Other
-
-
-
-
-
-
-
-
Total fair value hedges on
assets items
63,766
416
(12)
(732)
52,304
1,103
-
630
Debt instruments at amortised
cost
18,824
278
-
84
18,479
198
-
(67)
Interest rate
7,750
62
-
(133)
8,085
199
-
75
Foreign exchange
11,074
216
-
217
10,395
-
-
(142)
Other
-
-
-
-
-
-
-
-
TOTAL FAIR VALUE HEDGES
ON LIABILITIES ITEMS
18,824
278
-
84
18,479
198
-
(67)
The fair value of hedged portions of micro-fair value-hedged financial instruments is recognised under the balance sheet item to which
it belongs. Changes in the fair value of the hedged portions of micro-fair value-hedged financial instruments are recognised under “Net
gains (losses) on financial instruments at fair value through profit or loss” in the income statement.
f
Macro-hedging
€ million
31.12.2021
31.12.2020
Carrying amount
Accumulated
fair value hedge
adjustments to be
adjusted for hedging
remaining to be
adjusted, on ended
hedges
Carrying amount
Accumulated
fair value hedge
adjustments to be
adjusted for hedging
remaining to be
adjusted, on ended
hedges
Debt instruments at fair value through other comprehensive
income that may be reclassified to profit or loss
-
-
-
-
Debt instruments at amortised cost
-
7
-
-
Total - Assets
-
7
-
-
Debt instruments at amortised cost
5,920
10
5,683
55
Total - Liabilities
5,920
10
5,683
55
The fair value hedged portions of macro-fair value-hedged financial instruments is recognised under “Revaluation adjustment on interest
rate-hedged portfolios” in the balance sheet. Changes in the fair value of the hedged portions of macro-fair value-hedged financial
instruments are recognised under “Net gains (losses) on financial instruments at fair value through profit or loss” in the income statement.
310
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Results of hedge accounting
€ million
31.12.2021
31.12.2020
Net Income (Total Gains (losses) from hedge accounting)
Net Income (Total Gains (losses) from hedge accounting)
Change in fair
value of hedging
derivatives
(including
termination of
hedges)
Change in fair
value of hedged
items
(including
termination of
hedges)
Hedge
ineffectiveness
portion
Change in fair
value of hedging
derivatives
(including
termination of
hedges)
Change in fair
value of hedged
items
(including
termination of
hedges)
Hedge
ineffectiveness
portion
Interest rate
249
(249)
1
(220)
221
1
Foreign exchange
475
(474)
-
(434)
436
2
Other
-
-
-
-
-
-
TOTAL
724
(723)
1
(654)
657
3
3.4.7 CASH FLOW HEDGES AND NET INVESTMENT HEDGES OF A FOREIGN OPERATION
f
Hedging derivatives
€ million
31.12.2021
31.12.2020
Carrying amount
Changes in fair
value during the
period (including
termination of
hedges during the
period)
Notional
amount
Carrying amount
Changes in fair
value during the
period (including
termination of
hedges during the
period)
Notional
amount
Assets
Liabilities
Assets
Liabilities
Regulated markets
-
-
-
50
-
-
-
-
Interest rate
-
-
-
50
-
-
-
-
Futures
-
-
-
50
-
-
-
-
Options
-
-
-
-
-
-
-
-
Foreign exchange
-
-
-
-
-
-
-
-
Futures
-
-
-
-
-
-
-
-
Options
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Over-the-counter markets
342
323
(1)
28,658
204
182
(11)
25,288
Interest rate
4
8
-
620
16
2
(10)
1,707
Futures
4
8
-
620
16
2
(10)
1,706
Options
-
-
-
-
-
-
-
1
Foreign exchange
313
300
(1)
27,904
173
145
(1)
23,454
Futures
313
300
(1)
27,904
173
145
(1)
23,454
Options
-
-
-
-
-
-
-
-
Other
25
15
-
134
15
35
-
128
Total Cash flow micro-hedging
342
323
(1)
28,708
204
182
(11)
25,288
Cash flow hedges of the interest
rate exposure of a portfolio of
financial instruments
367
161
(547)
19,469
742
3
232
15,468
Cash flow hedges of the foreign
exchange exposure of a portfolio of
financial instruments
2
10
-
4,287
6
16
-
5,072
Total Cash flow macro-hedging
369
171
(547)
23,756
748
19
232
20,540
TOTAL CASH FLOW HEDGES
711
494
(548)
52,464
952
201
221
45,828
Hedges of net investments in
foreign operations
4
44
(1)
1,823
28
4
2
2,206
Changes in the fair value of hedging derivatives are taken to “Gains or losses recognised directly in other comprehensive income” with
the exception of the ineffective portion of the hedge, which is recognised under “Net gains or losses on financial instruments at fair value
through profit or loss” in the income statement.
311
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 3 : FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY
f
Results of hedge accounting
€ million
31.12.2021
31.12.2020
Other comprehensive income on items
that may be reclassified to profit and
loss
Net income (Hedge
accounting income
or loss)
Other comprehensive income on items
that may be reclassified to profit and
loss
Net income (Hedge
accounting income
or loss)
Effective portion
of the hedge
recognised during
the period
Amount
reclassified
from other
comprehensive
income into profit
or loss during the
period
Hedge
ineffectiveness
portion
Effective portion
of the hedge
recognised during
the period
Amount
reclassified
from other
comprehensive
income into profit
or loss during the
period
Hedge
ineffectiveness
portion
Interest rate
(547)
‐
‐
222
‐
‐
Foreign exchange
(1)
‐
‐
(1)
‐
‐
Other
‐
‐
‐
‐
‐
‐
Total Cash flow hedges
(548)
‐
‐
221
‐
‐
Hedges of net investments in
foreign operations
(1)
‐
‐
2
‐
‐
Total Cash flow hedges and
hedges of net investments in
foreign operations
(549)
‐
‐
223
‐
‐
3.5 Operational risks
(See Chapter on “Risk Factors - Operational Risks”).
3.6 Capital management and regulatory ratios
The Finance Department of Crédit Agricole S.A. is tasked with matching capital requirements generated by the Group’s overall business
with its financial resources in terms of liquidity and capital. It is responsible for overseeing prudential and regulatory ratios (solvency,
liquidity, leverage, resolution) for the Crédit Agricole Group and Crédit Agricole S.A. To that end, it sets guidelines and oversees the
consistency of the Group’s financial management.
Information on capital management and compliance with IAS 1 regulatory ratio requirements is provided in the “Risks and
Pillar 3” chapter.
The Group Permanent Control and Risks Department (DRG) is responsible for the management of banking risks in Crédit Agricole
CIB. This department reports to the Chief Executive Officer and its brief is to ensure the management and permanent control of credit,
financial and operational risks.
A description of these processes and commentary are provided in the “Risk management” chapter of the management report, as
permitted under IFRS 7. The accounting breakdowns are presented in the financial statements.
312
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE
INCOME
4.1 Interest income and expenses
€ million
31.12.2021
31.12.2020
On financial assets at amortised cost
4,569
4,997
Interbank transactions
696
659
Customer transactions
3,702
3,979
Debt securities
171
359
On financial assets recognised at fair value through other
comprehensive income
126
143
Interbank transactions
-
-
Customer transactions
-
-
Debt securities
126
143
Accrued interest receivable on hedging instruments
224
154
Other interest income
14
16
INTEREST AND SIMILAR INCOME ¹
4,933
5,310
On financial liabilities at amortised cost
(1,283)
(1,848)
Interbank transactions
(816)
(852)
Customer transactions
(348)
(591)
Debt securities
(49)
(279)
Subordinated debt
(70)
(126)
Accrued interest receivable on hedging instruments
(246)
(258)
Other interest expenses
(27)
(21)
INTEREST AND SIMILAR EXPENSES
(1,556)
(2,127)
¹ Of which €40.4 million in credit-impaired exposures (Stage 3) at 31 December 2021 versus €47 million at 31 December 2020.
Negative interest amounts recognised as interest income for financial liabilities and as interest expenses for financial assets amounted
to €379 million and €250 million, respectively.
4.2 Net fees and commissions
€ million
31.12.2021
31.12.2020
Produits
Charges
Net
Produits
Charges
Net
Interbank transactions
31
(40)
(9)
29
(31)
(2)
Customer transactions
604
(119)
485
563
(106)
457
Securities transactions
28
(124)
(96)
52
(125)
(73)
Foreign exchange transactions
11
(37)
(26)
10
(38)
(28)
Derivative instruments and other off-balance sheet items
355
(214)
141
359
(201)
158
Payment instruments and other banking and financial services
308
(144)
164
295
(136)
159
Mutual funds management, fiduciary and similar operations
325
(43)
282
295
(27)
268
TOTAL INCOME AND EXPENSES OF COMMISSIONS
1,662
(721)
941
1,603
(664)
939
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.3 Net gains (losses) on financial instruments at fair value through profit or loss
€ million
31.12.2021
31.12.2020
Dividends received
274
199
Unrealised or realised gains (losses) on assets/liabilities held for trading
350
2,265
Unrealised or realised gains (losses) on equity instruments at fair value
through profit or loss
28
7
Unrealised or realised gains (losses) on debt instruments that do not meet
the conditions of the “SPPI” test
12
(14)
Net gains (losses) on assets backing unit-linked contracts
-
-
Unrealised or realised gains (losses) on assets/liabilities designated at fair
value through profit or loss ¹
102
(602)
Net gains (losses) on Foreign exchange transactions and similar financial
instruments (excluding gains or losses on hedges of net investments in
foreign operations)
734
(120)
Gains (losses) from hedge accounting
1
3
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR
VALUE THROUGH PROFIT OR LOSS
1,501
1,738
¹ Excluding spread of issuer credit for liabilities recognised at fair value through profit and loss on option concerned (except as otherwise permitted by the standard to eliminate or
reduce a mismatch in the income statement).
Analysis of net gains (losses) from hedge accounting:
€ million
31.12.2021
31.12.2020
Gains
Losses
Net
Gains
Losses
Net
Fair value hedges
1,264
(1,263)
1
1,088
(1,085)
3
Changes in fair value of hedged items attributable to hedged risks
224
(1,039)
(815)
893
(196)
697
Changes in fair value of hedging derivatives (including termination of
hedges)
1,040
(224)
816
195
(889)
(694)
Cash flow hedges
-
-
-
-
-
-
Changes in fair value of hedging derivatives - ineffective portion
-
-
-
-
-
-
Hedges of net investments in foreign operations
-
-
-
-
-
-
Changes in fair value of hedging derivatives - ineffective portion
-
-
-
-
-
-
Fair value hedges of the interest rate exposure of a portfolio of
financial instruments
120
(120)
-
62
(62)
-
Changes in fair value of hedged items
106
(13)
93
11
(51)
(40)
Changes in fair value of hedging derivatives
14
(107)
(93)
51
(11)
40
Cash flow hedges of the interest rate exposure of a portfolio of
financial instruments
-
-
-
-
-
-
Changes in fair value of hedging instrument - ineffective portion
-
-
-
-
-
-
TOTAL GAINS (LOSSES) FROM HEDGE ACCOUNTING
1,384
(1,383)
1
1,150
(1,147)
3
The breakdown of gains (losses) from hedge accounting by type of relationship (fair value hedges, cash flow hedges,...) is presented
in Note 3.4 “Hedge accounting”.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.4 Net gains (losses) on financial instruments at fair value through other comprehensive
income
€ million
31.12.2021
31.12.2020
Net gains (losses) on debt instruments at fair value through other
comprehensive income that may be reclassified subsequently to profit or
loss ¹
17
-
Remuneration of equity instruments measured at fair value through other
comprehensive income that will not be reclassified subsequently to profit
or loss (dividends)
15
35
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR
VALUE THROUGH OTHER COMPREHENSIVE INCOME ²
32
35
¹ Excluding the gains or losses on the disposal on impaired debt instruments (Stage 3) mentioned in note
4.9 “Cost of risk”.
² Of which dividends on equity intruments of the fair value through non recyclable equity derecognised issue of €17.5 million on 2020 and any on 2021.
4.5 Net gains (losses) from the derecognition of financial assets at amortised cost
€ million
31.12.2021
31.12.2020
Debt securities
15
11
Loans and receivables due from credit institutions
-
-
Loans and receivables due from customers
-
-
Gains arising from the derecognition of financial assets at amortised cost
15
11
Debt securities
(3)
-
Loans and receivables due from credit institutions
-
-
Loans and receivables due from customers
(4)
(4)
Losses arising from the derecognition of financial assets at amortised cost
(7)
(4)
NET GAINS (LOSSES) ARISING FROM THE DERECOGNITION OF
FINANCIAL ASSETS AT AMORTISED COST ¹
8
7
¹ Excl. net gains (losses) from derecognition of credit-impaired instruments (Stage 3) referred to in Note 4.9 “Cost of risk”.
4.6 Net income (expenses) on other activities
€ million
31.12.2021
31.12.2020
Gains (losses) on fixed assets not used in operations
-
-
Other net income from insurance activities
-
-
Change in insurance technical reserves
-
-
Other net income (expense)
54
32
INCOME (EXPENSE) RELATED TO OTHER ACTIVITIES
54
32
4.7 Operating expenses
€ million
31.12.2021
31.12.2020
Employee expenses
(2,247)
(2,166)
Taxes other than on income or payroll-related and regulatory contributions ¹
(370)
(299)
External services and other operating expenses
(857)
(819)
OPERATING EXPENSES
(3,474)
(3,284)
¹ Including €298 million entered under the Single Resolution Fund (SRF) at 31 December 2021 against €235.7 million at 31 December 2020.
315
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
STATUTORY AUDITORS’ FEES
Distribution of fees by audit firm and by type of assignment in the financial statements of Crédit Agricole CIB in respect of 2021:
College of auditors of Crédit Agricole CIB:
In million of euros excluding taxes
Ernst & Young
PricewaterhouseCoopers
Total 2021
2021
2020
2021
2020
Independant audit, certification, review of parent
company and consolidated financial statements
5.6
5.7
5.1
5.0
10.7
Issuer
3.4
3.3
2.5
2.5
5.9
Fully consolidated subsidiaries
2.2
2.4
2.6
2.5
4.8
Non audit services
1.1
1.1
2.1
3.3
3.2
Issuer
0.7
1.0
0.8
2.3
1.5
Fully consolidated subsidiaries
0.4
0.2
1.3
1.0
1.7
TOTAL
6.7
6.9
7.2
8.4
13.9
Total fees paid to EY & Autres, Statutory Auditor of Crédit Agricole CIB, in the consolidated income statement for the financial year
amounted to €2.1 million, o/w €1.8 million for certification of the financial statements of Crédit Agricole CIB and its subsidiaries, and
€0.3 million for non-audit services (letters of comfort, certificates and findings of agreed-upon procedures).
Total fees paid to PricewaterhouseCoopers Audit, Statutory Auditor of Crédit Agricole CIB, in the consolidated income statement for
the financial year amounted to €2.1 million, o/w €1.9 million for certification of the financial statements of Crédit Agricole CIB and its
subsidiaries, and €0.2 million for non-audit services (letters of comfort, findings of agreed-upon procedures).
Other statutory auditors working for other fully-consolidated Crédit Agricole CIB companies.
In thousands of euros excluding taxes
Mazars
KPMG
Deloitte
Others
Total
2021
2021
2020
2021
2020
2021
2020
2021
2
2020
Independant audit, certification, review of parent
company and consolidated financial statements
2
2
‐
‐
‐
‐
357
363
359
Non audit services ¹
‐
‐
‐
‐
‐
‐
14
5
14
TOTAL
2
2
‐
‐
‐
‐
371
368
373
¹ Non audit services include jobs conducted by thes audit firms at companies for which they serve as statutory auditors.
² Of which €136 thousand are related to the firm Auditeurs & Conseils Associés
4.8 Depreciation, amortisation and impairment of property, plant & equipment and intangible
assets
€ million
31.12.2021
31.12.2020
Depreciation and amortisation
(221)
(213)
Property, plant and equipment ¹
(155)
(158)
Intangible assets
(66)
(55)
Impairment losses (reversals)
-
(2)
Property, plant and equipment
-
-
Intangible assets
-
(2)
DEPRECIATION, AMORTISATION AND IMPAIRMENT OF PROPERTY,
PLANT & EQUIPMENT AND INTANGIBLE ASSETS
(221)
(215)
¹ Of which €113 million recognised for depreciation on the right-of-use asset (IFRS 16) at 31 december 2021 compared with €115 million at 31 december 2020.
316
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2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.9 Cost of risk
€ million
31.12.2021
31.12.2020
Charges net of reversals to impairments on performing assets (Stage
1 or Stage 2)
(A)
(33)
(412)
Stage 1 : Loss allowance measured at an amount equal to 12-month
expected credit loss
(40)
(40)
Debt instruments at fair value through other comprehensive income that
may be reclassified to profit or loss
-
(2)
Debt instruments at amortised cost
(18)
(29)
Commitments by signature
(22)
(9)
Stage 2 : Loss allowance measured at an amount equal to lifetime
expected credit loss
7
(372)
Debt instruments at fair value through other comprehensive income that
may be reclassified to profit or loss
-
-
Debt instruments at amortised cost
74
(313)
Commitments by signature
(67)
(59)
Charges net of reversals to impairments on credit-impaired assets
(Stage 3) (B)
(105)
(486)
Stage 3 : Credit-impaired assets
(105)
(486)
Debt instruments at fair value through other comprehensive income that
may be reclassified to profit or loss
-
-
Debt instruments at amortised cost
(89)
(535)
Commitments by signature
(16)
49
Other assets (C)
3
(8)
Risks and expenses (D)
3
(27)
Charges net of reversals to impairment losses and provisions
(E) = (A)
+ (B) + (C) + (D)
(133)
(933)
Realised gains (losses) on disposal of impaired debt instruments at fair value
through other comprehensive income that may be reclassified to profit or loss
-
-
Losses on non-impaired loans and bad debt
(17)
(28)
Recoveries on loans and receivables written off
102
107
recognised at amortised cost
102
107
recognised in other comprehensive income that may be reclassified to
profit or loss
-
-
Discounts on restructured loans
(1)
(17)
Losses on commitments by signature
-
-
Other losses
(12)
(16)
Other gains
7
31
COST OF RISK
(54)
(856)
4.10 Net gains (losses) on other assets
€ million
31.12.2021
31.12.2020
Property, plant & equipment and intangible assets used in operations
1
3
Gains on disposals
1
3
Losses on disposals
-
-
Consolidated equity investments ¹
(40)
1
Gains on disposals
-
10
Losses on disposals
(40)
(9)
Net income (expense) on combinations
-
-
NET GAINS (LOSSES) ON OTHER ASSETS
(39)
4
¹ Impact of the deconsolidation of Crédit Agricole CIB Algeria Bank Spa.
317
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.11 Income tax charge
4.11.1 TAX EXPENSE
€ million
31.12.2021
31.12.2020
Current tax charge
(441)
(247)
Deferred tax charge
9
38
TOTAL TAX CHARGE
(432)
(209)
4.11.2 RECONCILIATION OF THE THEORETICAL TAX RATE WITH THE RECORDED TAX RATE
f
At 31 December 2021
€ million
Base
Taux d’impôt
Impôt
Pre-tax income, goodwill impairment, discontinued operations and share of
net income of equity-accounted entities
2,125
28.41%
(604)
Impact of permanent differences
-
(1.65)%
35
Impact of different tax rates on foreign subsidiaries
-
(2.07)%
44
Impact of losses for the year, utilisation of tax loss carryforwards and
temporary differences
-
0.29%
(6)
Impact of tax rate change
-
(0.94)%
20
Impact of reduced tax rate
-
(0.18)%
4
Impact of other items
-
(3.53)%
75
EFFECTIVE TAX RATE AND TAX CHARGE
-
20.33%
(432)
The theoretical tax rate is the tax rate under ordinary law (including the additional social contribution) of taxable profits in France at
31 December 2021.
f
At 31 December 2020
€ million
Base
Taux d’impôt
Impôt
Pre-tax income, goodwill impairment, discontinued operations and share of net
income of equity-accounted entities
1,583
32.02%
(507)
Impact of permanent differences
-
(3.17)%
50
Impact of different tax rates on foreign subsidiaries
-
(4.26)%
67
Impact of losses for the year, utilisation of tax loss carryforwards and
temporary differences
-
(0.15)%
2
Impact of tax rate change
-
(0.11)%
2
Impact of reduced tax rate
-
(0.23)%
4
Impact of other items
-
(10.92)%
173
EFFECTIVE TAX RATE AND TAX CHARGE
-
13.19%
(209)
The theoretical tax rate is the tax rate under ordinary law (including the additional social contribution) of taxable profits in France at
31 December 2020.
318
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.12 Changes in other comprehensive income
The income and expenses recorded during the period are presented in detail below.
4.12.1 BREAKDOWN OF OTHER COMPREHENSIVE INCOME NET OF INCOME TAX
€ million
31.12.2021
31.12.2020
Other comprehensive income on items that may be reclassified
subsequently to profit or loss net of income tax
-
-
Gains and losses on translation adjustments
570
(486)
Revaluation adjustment of the period
-
-
Reclassified to profit or loss
-
-
Other variations
570
(486)
Other comprehensive income on debt instruments that may be
reclassified to profit or loss
(7)
22
Revaluation adjustment of the period
9
24
Reclassified to profit or loss
(17)
-
Other variations
1
(2)
Gains and losses on hedging derivative instruments
(549)
223
Revaluation adjustment of the period
(548)
223
Reclassified to profit or loss
-
-
Other variations
(1)
-
Pre-tax other comprehensive income on items that may be
reclassified to profit or loss on equity-accounted entities
-
-
Income tax related to items that may be reclassified to profit or loss
excluding equity-accounted entities
144
(23)
Income tax related to items that may be reclassified to profit or loss
on equity-accounted entities
-
-
Other comprehensive income on items that may be reclassified to
profit or loss on entities from discontinued operations
-
(4)
Other comprehensive income on items that may be reclassified
subsequently to profit or loss net of income tax
158
(268)
Other comprehensive income on items that will not be reclassified
subsequently to profit or loss net of income tax
-
-
Actuarial gains and losses on post-employment benefits
126
(39)
Other comprehensive income on financial liabilities attributable to
changes in own credit risk
(18)
(148)
Revaluation adjustment of the period
(18)
(151)
Reclassified to reserves
-
3
Other variations
-
-
Other comprehensive income on equity instruments that will not be
reclassified to profit or loss
30
(142)
Revaluation adjustment of the period
24
(148)
Reclassified to reserves
-
13
Other variations
6
(7)
Other comprehensive income on items that will not be reclassified to
profit or loss on equity-accounted entities
-
-
Income tax related to items that will not be reclassified excluding
equity-accounted entities
(23)
85
Income tax related to items that will not be reclassified on equity-
accounted entities
-
-
Other comprehensive income on items that will not be reclassified
subsequently to profit or loss net of income tax
115
(244)
OTHER COMPREHENSIVE INCOME NET OF INCOME TAX
273
(512)
Of which Group share
271
(512)
Of which non-controlling interests
2
(1)
319
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
4.12.2 CHANGES IN OTHER COMPREHENSIVE INCOME AND RELATED TAX IMPACTS
€ million
31.12.2020
Variation
31.12.2021
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Other comprehensive income on
items that may be reclassified
subsequently to profit or loss
-
-
-
-
-
-
-
-
-
-
-
-
Gains and losses on translation
adjustments
(5)
-
(5)
(5)
570
-
570
569
565
-
565
564
Gains and losses on debt
instruments at fair value through
other comprehensive income that
may be reclassified to profit or loss
55
(13)
42
42
(7)
1
(6)
(6)
48
(12)
36
36
Gains and losses on hedging
derivative instruments
701
(182)
519
518
(549)
143
(406)
(405)
152
(39)
113
113
Reclassification of net gains (losses)
of designated financial assets
applying the overlay approach
-
-
-
-
-
-
-
-
-
-
-
-
Other comprehensive income on
items that may be reclassified to
profit or loss excluding equity-
accounted entities
751
(195)
556
555
14
144
158
158
765
(51)
714
713
Other comprehensive income on
items that may be reclassified to
profit or loss on equity-accounted
entities
(4)
-
(4)
(4)
-
-
-
-
(4)
-
(4)
(4)
Other comprehensive income on
items that may be reclassified to
profit or loss on equity-accounted
entities on discontinued operations
(4)
-
(4)
(4)
-
-
-
-
(4)
-
(4)
(4)
Other comprehensive income on
items that may be reclassified
subsequently to profit or loss
743
(195)
548
547
14
144
158
158
757
(51)
706
705
Other comprehensive income on
items that will not be reclassified
subsequently to profit or loss
-
-
-
-
-
-
-
-
-
-
-
-
Actuarial gains and losses on post-
employment benefits
(462)
79
(383)
(378)
126
(23)
103
101
(336)
56
(280)
(277)
Other comprehensive income on
financial liabilities attributable to
changes in own credit risk
(352)
94
(258)
(258)
(18)
2
(16)
(16)
(370)
96
(274)
(274)
Other comprehensive income on
equity instruments that will not be
reclassified to profit or loss
(49)
5
(44)
(44)
30
(2)
28
28
(19)
3
(16)
(16)
Other comprehensive income on
items that will not be reclassified
to profit or loss excluding equity-
accounted entities
(863)
178
(685)
(680)
138
(23)
115
113
(725)
155
(570)
(567)
Other comprehensive income on
items that will not be reclassified to
profit or loss on equity-accounted
entities
-
-
-
-
-
-
-
-
-
-
-
-
Other comprehensive income on
items that will not be reclassified
subsequently to profit or loss
(863)
178
(685)
(680)
138
(23)
115
113
(725)
155
(570)
(567)
OTHER COMPREHENSIVE
INCOME
(120)
(17)
(137)
(133)
152
121
273
271
32
104
136
138
320
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 4: NOTES ON NET INCOME AND OTHER COMPREHENSIVE INCOME
€ million
31.12.2019
Variation
31.12.2020
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Gross
Income
tax
charges
Net of
income
tax
Net of
income
tax of
which
Group
Share
Other comprehensive income on
items that may be reclassified
subsequently to profit or loss
-
-
-
-
-
-
-
-
-
-
-
-
Gains and losses on translation
adjustments
481
-
481
481
(486)
-
(486)
(486)
(5)
-
(5)
(5)
Gains and losses on available for sale
financial assets
-
-
-
-
-
-
-
-
-
-
-
-
Gains and losses on debt
instruments at fair value through
other comprehensive income that
may be reclassified to profit or loss
33
(8)
25
25
22
(5)
17
17
55
(13)
42
42
Gains and losses on hedging
derivative instruments
478
(164)
314
313
223
(18)
205
205
701
(182)
519
518
Reclassification of net gains (losses)
of designated financial assets
applying the overlay approach
-
-
-
-
-
-
-
-
-
-
-
-
Other comprehensive income on
items that may be reclassified to
profit or loss excluding equity-
accounted entities
992
(172)
820
819
(241)
(23)
(264)
(264)
751
(195)
556
555
Other comprehensive income on
items that may be reclassified to
profit or loss on equity-accounted
entities
(4)
-
(4)
(4)
-
-
-
-
(4)
-
(4)
(4)
Other comprehensive income on
items that may be reclassified to
profit or loss on equity-accounted
entities on discontinued operations
-
-
-
-
(4)
-
(4)
(4)
(4)
-
(4)
(4)
Other comprehensive income on
items that may be reclassified
subsequently to profit or loss
988
(172)
816
815
(245)
(23)
(268)
(268)
743
(195)
548
547
Other comprehensive income on
items that will not be reclassified
subsequently to profit or loss
-
-
-
-
-
-
-
-
-
-
-
-
Actuarial gains and losses on post-
employment benefits
(423)
72
(351)
(346)
(39)
7
(32)
(32)
(462)
79
(383)
(378)
Other comprehensive income on
financial liabilities attributable to
changes in own credit risk
(204)
60
(144)
(145)
(148)
34
(114)
(113)
(352)
94
(258)
(258)
Other comprehensive income on
equity instruments that will not be
reclassified to profit or loss
93
(39)
54
54
(142)
44
(98)
(98)
(49)
5
(44)
(44)
Other comprehensive income on
items that will not be reclassified
to profit or loss excluding equity-
accounted entities
(534)
93
(441)
(437)
(329)
85
(244)
(243)
(863)
178
(685)
(680)
Other comprehensive income on
items that will not be reclassified to
profit or loss on equity-accounted
entities
-
-
-
-
-
-
-
-
-
-
-
-
Other comprehensive income on
items that will not be reclassified to
profit or loss on equity-accounted
entities on discontinued operations
-
-
-
-
-
-
-
-
-
-
-
-
Other comprehensive income on
items that will not be reclassified
subsequently to profit or loss
(534)
93
(441)
(437)
(329)
85
(244)
(243)
(863)
178
(685)
(680)
OTHER COMPREHENSIVE
INCOME
454
(79)
375
378
(574)
62
(512)
(511)
(120)
(17)
(137)
(133)
321
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 5: SEGMENT REPORTING
NOTE 5: SEGMENT REPORTING
DEFINITION OF OPERATING SEGMENTS
Crédit Agricole CIB’s business lines are defined in accordance
with the definitions applied within the Crédit Agricole S.A. Group.
PRESENTATION OF THE DIVISIONS
The portfolio of activities breaks down into four divisions.
y
Corporate banking includes the commercial banking business
lines in France and abroad, and the structured finance activi-
ties, namely project finance, aircraft finance, shipping finance,
acquisition finance and real estate finance;
y
Capital Markets and Investment Banking combines capi-
tal-market activities (treasury management, foreign exchange,
interest-rate derivatives and debt markets) with investment
banking (mergers and acquisitions and primary equity advisory);
These two business lines make up almost the whole of Crédit
Agricole S.A.’s Corporate and Investment Banking division.
It should be noted that discontinued activities are now included
in the Capital Markets and Investment Banking and Corporate
Banking businesses.
y
Crédit Agricole CIB operates in the Wealth Management
segment through its offices in France, Belgium, Switzerland,
Luxembourg, Monaco, Spain and the Asia-Pacific region.
y
The Corporate Centre activities consist of the various impacts
not attributable to the other divisions.
5.1 Segment reporting by operating segment
Transactions between operating segments are carried out at arm’s length.
Segment assets are determined based on the items on each operating segment’s balance sheet.
€ million
31.12.2021
Financing
activities
Capital markets
and Investment
banking
Total Corporate
and Investment
Banking
Wealth
Management
Corporate Center
CACIB
Revenues
2,758
2,340
5,098
840
(25)
5,913
Operating expenses
(1,197)
(1,800)
(2,997)
(694)
(4)
(3,695)
Gross operating income
1,561
540
2,101
146
(29)
2,218
Cost of risk
(76)
27
(49)
(5)
-
(54)
Share of net income of equity-accounted
entities
-
-
-
-
-
-
Net gains (losses) on other assets
(40)
-
(40)
1
-
(39)
Change in value of goodwill
-
-
-
-
-
-
Pre-tax income
1,445
567
2,012
142
(29)
2,125
Income tax charge
(312)
(158)
(470)
(18)
56
(432)
Net income from discontinued operations
-
-
-
7
-
7
Net income
1,133
409
1,542
131
27
1,700
Non-controlling interests
(2)
(1)
(3)
12
-
9
NET INCOME GROUP SHARE
1,135
410
1,545
119
27
1,691
€ million
31.12.2021
Financing
activities
Capital markets
and Investment
banking
Total Corporate
and Investment
Banking
Wealth
Management
Corporate Center
CACIB
Segment assets
-
-
-
-
-
-
of which investments in equity-accounted
entities
-
-
-
-
-
-
of which goodwill
-
-
484
579
-
1,063
TOTAL ASSETS
-
-
584,363
15,358
-
599,721
322
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 5: SEGMENT REPORTING
€ million
31.12.2020
Financing
activities
Capital markets
and Investment
banking
Total Corporate
and Investment
Banking
Wealth
Management
Corporate Center
CACIB
Revenues
2,556
2,541
5,097
820
17
5,934
Operating expenses
(1,133)
(1,678)
(2,811)
(685)
(3)
(3,499)
Gross operating income
1,423
863
2,286
135
14
2,435
Cost of risk
(797)
(27)
(824)
(32)
-
(856)
Share of net income of equity-
accounted entities
-
-
-
-
-
-
Net gains (losses) on other assets
1
-
1
3
-
4
Change in value of goodwill
-
-
-
-
-
-
Pre-tax income
627
836
1,463
106
14
1,583
Income tax charge ¹
14
(240)
(226)
(12)
29
(209)
Net income from discontinued
operations
-
-
-
(25)
-
(25)
Net income
641
596
1,237
69
43
1,349
Non-controlling interests
(2)
-
(2)
10
-
8
NET INCOME GROUP SHARE
643
596
1,239
59
43
1,341
¹ Incorporates non-recurring tax items over the period.
€ million
31.12.2020
Financing
activities
Capital markets
and Investment
banking
Total Corporate
and Investment
Banking
Wealth
Management
Corporate Center
CACIB
Segment assets
-
-
-
-
-
-
of which investments in equity-
accounted entities
-
-
-
-
-
-
of which goodwill
-
-
484
559
-
1,043
TOTAL ASSETS
-
-
570,514
23,376
-
593,890
5.2 Segment reporting by geographic area
The geographic breakdown of segment assets and results is based on the place of accounting recognition of the activities in question.
€ million
31.12.2021
31.12.2020
Net income
Group Share
Of which
Revenues
Segment
assets
Of which
goodwill
Net income
Group Share
Of which
Revenues
Segment
assets
Of which
goodwill
France (including overseas departments
and territories)
552
2,409
411,997
474
605
2,515
401,649
474
Other European Union countries
194
674
20,153
142
265
1,157
34,855
142
Other European countries
296
1,089
29,177
436
(5)
437
14,734
417
North America
321
816
56,769
-
216
829
65,250
-
Central and South America
(9)
23
1,128
-
71
104
1,442
-
Africa and Middle East
16
45
2,736
-
22
58
2,896
-
Asia-Pacific (ex. Japan)
229
659
38,238
11
132
628
30,532
10
Japan
92
198
39,523
-
34
205
42,532
-
TOTAL
1,691
5,913
599,721
1,063
1,341
5,934
593,890
1,043
323
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
NOTE 6:
NOTES TO THE BALANCE SHEET
6.1 Cash and balances at central banks
€ million
31.12.2021
31.12.2020
Assets
Liabilities
Assets
Liabilities
Cash
6
-
7
-
Central banks
65,061
1,224
54,428
837
CARRYING AMOUNT
65,067
1,224
54,435
837
6.2 Financial assets and liabilities at fair value through profit or loss
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
€ million
31.12.2021
31.12.2020
Financial assets held for trading
250,376
284,101
Other financial instruments
at fair value through profit or loss
364
314
Equity instruments
300
259
Debt instruments that do not meet the conditions of the “SPPI” test
64
55
Assets backing unit-linked contracts
-
-
Financial assets designated at fair value through profit or loss
-
-
CARRYING AMOUNT
250,740
284,415
Of which lent securities
1
666
FINANCIAL ASSETS HELD FOR TRADING
€ million
31.12.2021
31.12.2020
Equity instruments
6,832
6,221
Equities and other variable income securities
6,832
6,221
Debt securities
23,020
18,691
Treasury bills and similar securities
14,907
13,069
Bonds and other fixed income securities
8,089
5,605
Mutual funds
24
17
Loans and receivables
115,711
124,272
Loans and receivables due from credit institutions
-
-
Loans and receivables due from customers
820
872
Securities bought under repurchase agreements
114,891
123,400
Pledged securities
-
-
Derivative instruments
104,813
134,917
CARRYING AMOUNT
250,376
284,101
The securities bought under repurchase agreements consist of the securities that Crédit Agricole CIB is authorised to use as collateral.
EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
€ million
31.12.2021
31.12.2020
Equities and other variable income securities
141
124
Non-consolidated equity investments
159
135
TOTAL EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
300
259
324
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2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
DEBT INSTRUMENTS THAT DO NOT MEET THE SPPI CRITERIA
€ million
31.12.2021
31.12.2020
Debt securities
64
50
Treasury bills and similar securities
-
-
Bonds and other fixed income securities
15
16
Mutual funds
49
34
Loans and receivables
-
5
Loans and receivables due from credit institutions
-
-
Loans and receivables due from customers
-
5
Securities bought under repurchase agreements
-
-
Pledged securities
-
-
TOTAL DEBT INSTRUMENTS THAT DO NOT MEET THE CONDITIONS OF THE
“SPPI” TEST
64
55
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
€ million
31.12.2021
31.12.2020
Held for trading financial liabilities
221,904
250,169
Financial liabilities designated at fair value through profit or loss
25,683
24,059
CARRYING AMOUNT
247,587
274,228
FINANCIAL LIABILITIES HELD FOR TRADING
€ million
31.12.2021
31.12.2020
Securities sold short
41,934
37,179
Securities sold under repurchase agreements
79,498
83,540
Debt securities
-
-
Due to customers
-
-
Due to credit institutions
-
-
Derivative instruments
100,472
129,450
CARRYING AMOUNT
221,904
250,169
Detailed information about held-for-trading derivatives can be found in Note 3.2 on market risk, and particularly information about
interest rates.
325
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.2.1 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS BY OPTION
f
Financial liabilities for which changes in the issuer spread are recognised through other comprehensive
income that cannot be reclassified
€ million
31.12.2021
Carrying amount
Difference between
carrying amount and
amount contractually
required to pay at
maturity
Accumulated amount
of change in fair
value attributable
to changes in own
credit risk
Amount of change in
fair value during the
period attributable
to changes in own
credit risk
Amount realised at
derecognition¹
Deposits and subordinated
liabilities
3,564
176
370
18
-
Debt securities
22,119
Other financial liabilities
-
-
-
-
-
TOTAL
25,683
176
370
18
-
¹ Gains and losses on derecognition are transferred to consolidated reserves at the date of derecognition of the instrument in question.
€ million
31.12.2020
Carrying amount
Difference between
carrying amount and
amount contractually
required to pay at
maturity
Accumulated amount
of change in fair
value attributable
to changes in own
credit risk
Amount of change in
fair value during the
period attributable
to changes in own
credit risk
Amount realised at
derecognition¹
Deposits and subordinated
liabilities
3,629
1,207
352
152
(5)
Debt securities
20,191
Other financial liabilities
-
-
-
-
-
TOTAL
23,820
1,207
352
152
(5)
¹ Gains and losses on derecognition are transferred to consolidated reserves at the date of derecognition of the instrument in question.
In line with IFRS 9, Crédit Agricole CIB calculates changes
in fair value attributable to changes in own credit risk using a
methodology that allows these changes to be separated from
changes in value attributable to changes in market conditions.
BASIS FOR CALCULATING OWN CREDIT RISK
The source taken into account when calculating own credit risk
may vary from one issuer to another. At Crédit Agricole CIB,
it takes the form of the change in its market refinancing cost
according to the type of issue.
CALCULATION OF UNREALISED GAINS/LOSSES
DUE TO OWN CREDIT RISK (RECOGNISED IN
OTHER COMPREHENSIVE INCOME)
Crédit Agricole CIB’s preferred approach is based on the liquidity
component of issues. It involves replicating all of the issues
through a basket of vanilla loans/borrowings. The changes in fair
value attributable to changes in own credit risk for all the issues
are the same as for the loans/borrowings. They are equal to the
changes in the fair value of the loan/borrowing portfolio caused
by changes in the cost of refinancing.
CALCULATION OF REALISED GAINS/LOSSES
DUE TO OWN CREDIT RISK (RECOGNISED IN
CONSOLIDATED RESERVES)
Crédit Agricole CIB has opted to transfer the change in fair
value attributable to changes in own credit risk on settlement to
consolidated reserves. A sensitivity-based calculation is carried
out in the event of a complete or partial early redemption. This
consists of measuring the change in fair value attributable to
changes in own credit risk for a given issue as the sum of the
credit spread sensitivities multiplied by the change in this spread
between the issue date and the redemption date.
326
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.2.2 FINANCIAL LIABILITIES FOR WHICH CHANGES ARE RECOGNISED IN PROFIT OR LOSS
€ million
31.12.2021
Carrying amount
Difference between
carrying amount and due
on maturity
Accumulated amount
of change in fair value
attributable to changes in
own credit risk
Amount of change in fair
value during the period
attributable to changes in
own credit risk
Deposits and subordinated liabilities
‐
‐
‐
‐
Debt securities
‐
‐
‐
‐
Other financial liabilities
‐
‐
‐
‐
TOTAL
‐
‐
‐
‐
€ million
31.12.2020
Carrying amount
Difference between
carrying amount and due
on maturity
Accumulated amount
of change in fair value
attributable to changes in
own credit risk
Amount of change in fair
value during the period
attributable to changes in
own credit risk
Deposits and subordinated liabilities
239
‐
‐
‐
Debt securities
‐
‐
‐
‐
Other financial liabilities
‐
‐
‐
‐
TOTAL
239
‐
‐
‐
6.3 Hedging derivatives
Detailed information is provided in Note 3.4 “Hedging accounting”.
6.4 Financial assets at fair value through other comprehensive income
€ million
31.12.2021
31.12.2020
Carrying amount
Unrealised gains
Unrealised
losses
Carrying amount
Unrealised gains
Unrealised
losses
Debt instruments at fair value through
other comprehensive income that may be
reclassified to profit or loss
13,081
74
(26)
11,042
192
(137)
Equity instruments at fair value
through
other comprehensive income that will not be
reclassified to profit or loss
347
74
(92)
269
47
(95)
TOTAL
13,428
148
(118)
11,311
239
(232)
DEBT INSTRUMENTS RECOGNISED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
THAT CAN BE RECLASSIFIED
€ million
31.12.2021
31.12.2020
Carrying amount
Unrealised gains
Unrealised
losses
Carrying amount
Unrealised gains
Unrealised
losses
Treasury bills and similar securities
1,862
11
-
2,595
19
-
Bonds and other fixed income securities
11,219
63
(26)
8,447
174
(137)
Total Debt securities
13,081
74
(26)
11,042
193
(137)
Total Loans and receivables
-
-
-
-
-
-
Total Debt instruments at fair value
through other comprehensive income
that may be reclassified to profit or loss
13,081
74
(26)
11,042
193
(137)
Income tax charge
-
(12)
-
-
(14)
-
OTHER COMPREHENSIVE INCOME ON
EQUITY INSTRUMENTS THAT WILL BE
RECLASSIFIED TO PROFIT OR LOSS
(NET OF INCOME TAX)
-
62
(26)
-
179
(137)
327
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2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
EQUITY INSTRUMENTS RECOGNISED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE
INCOME THAT CANNOT BE RECLASSIFIED
f
Other comprehensive income on equity instruments that cannot be reclassified
€ million
31.12.2021
31.12.2020
Carrying amount
Unrealised
gains
Unrealised
losses
Carrying amount
Unrealised
gains
Unrealised
losses
Equities and other variable income securities
39
14
(22)
37
12
(20)
Non-consolidated equity investments
308
60
(70)
232
34
(74)
Total Investments in equity instruments at
fair value through other comprehensive
income that will not be reclassified to
profit or loss
347
74
(92)
269
46
(94)
Income tax charge
-
(6)
8
-
(4)
8
OTHER COMPREHENSIVE INCOME ON
EQUITY INSTRUMENTS THAT WILL NOT
BE RECLASSIFIED TO PROFIT OR LOSS
(NET OF INCOME TAX)
-
68
(84)
-
42
(86)
f
Equity instruments derecognised during the period
€ million
31.12.2021
31.12.2020
Fair value at
the date of
derecognition
Cumulative
gains
realised¹
Cumulative
losses realised¹
Fair value at
the date of
derecognition
Cumulative
gains
realised¹
Cumulative
losses realised¹
Equities and other variable income securities
1
-
-
332
-
(10)
Non-consolidated equity investments
-
-
-
8
-
-
Total Investments in equity instruments
1
-
-
340
-
(10)
Income tax charge
-
-
-
-
-
6
OTHER COMPREHENSIVE INCOME ON
EQUITY INSTRUMENTS THAT WILL NOT
BE RECLASSIFIED TO PROFIT OR LOSS
(NET OF INCOME TAX)
-
-
-
-
-
(4)
¹ Realised gains and losses are transferned to consolidated reserves at the moment of the derecognition of the instrument concerned.
328
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.5 Financial assets at amortised cost
€ million
31.12.2021
31.12.2020
Loans and receivables due from credit institutions
43,600
26,742
Loans and receivables due from customers ¹
165,830
142,000
Debt securities
29,641
34,890
CARRYING AMOUNT
239,071
203,632
¹ At 31 December 2021, in line with the economic stimulus measures implemented in response to the Covid-19 crisis, outstanding government-backed loans granted by Crédit
Agricole CIB amounted to €1.807 billion.
LOANS AND RECEIVABLES DUE FROM CREDIT INSTITUTIONS
€ million
31.12.2021
31.12.2020
Credit institutions
-
-
Loans and receivables
42,144
26,068
of which non doubtful current accounts in debit ¹
3,764
3,048
of which non doubtful overnight accounts and advances ¹
1,266
414
Pledged securities
-
-
Securities bought under repurchase agreements
1,842
1,034
Subordinated loans
-
-
Other loans and receivables
-
-
Gross amount
43,986
27,102
Impairment
(386)
(360)
Net value of loans and receivables due from credit institutions
43,600
26,742
Total Crédit Agricole internal transactions
-
-
CARRYING AMOUNT
43,600
26,742
¹
These transactions are partly comprised of “Net demand loans and deposits with banks” in the Cash Flow Statement.
LOANS AND RECEIVABLES DUE FROM CUSTOMERS
€ million
31.12.2021
31.12.2020
Loans and receivables due from customers
-
-
Trade receivables
26,392
14,956
Other customer loans
136,664
124,192
Pledged securities
-
-
Securities bought under repurchase agreements
751
1,320
Subordinated loans
46
41
Insurance receivables
-
-
Reinsurance receivables
-
-
Advances in associates current accounts
70
130
Current accounts in debit
4,461
4,041
Gross amount
168,384
144,680
Impairment
(2,554)
(2,680)
Net value of loans and receivables due from customers
165,830
142,000
Finance leases
-
-
Property leasing
-
-
Equipment leases, operating leases and similar transactions
-
-
Gross amount
-
-
Impairment
-
-
Net value of lease financing operations
-
-
CARRYING AMOUNT
165,830
142,000
DEBT SECURITIES
€ million
31.12.2021
31.12.2020
Treasury bills and similar securities
7,524
6,821
Bonds and other fixed income securities
22,145
28,097
Total
29,669
34,918
Impairment
(28)
(28)
CARRYING AMOUNT
29,641
34,890
329
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.6 Transferred assets not derecognised or derecognised with continuing involvement
TRANSFERRED ASSETS NOT FULLY DERECOGNISED AT 31 DECEMBER 2021
€ million
Transferred assets but still fully recognised
Transferred assets
Associated liabilities
Assets and
associated
liabilities
Carrying
amount
of which
securi-
tisation
(non- de-
consoli-
dating)
of which
securities
sold/bought
under
repurchase
agree-
ments
of
which
other
Fair
value
Carrying
amount
of which
securi-
tisation
(non- de-
consoli-
dating)
of which
securities
sold/bought
under
repurchase
agree-
ments
of
which
other
Fair
value¹
Net fair
value
Financial assets held for trading
17,526
-
17,526
-
17,526
17,277
-
17,277
-
17,277
249
Equity instruments
326
-
326
-
326
303
-
303
-
303
23
Debt securities
17,200
-
17,200
-
17,200
16,974
-
16,974
-
16,974
226
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Other financial instruments
at fair
value through profit or loss
-
-
-
-
-
-
-
-
-
-
-
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
Debt securities
-
-
-
-
-
-
-
-
-
-
-
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Financial assets at fair value through
other comprehensive income
1,098
-
1,098
-
1,098
1,090
-
1,090
-
1,090
8
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
Debt securities
1,098
-
1,098
-
1,098
1,090
-
1,090
-
1,090
8
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Financial assets at amortised cost
1,945
-
1,945
-
1,945
1,932
-
1,932
-
1,932
13
Debt securities
1,945
-
1,945
-
1,945
1,932
-
1,932
-
1,932
13
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Total Financial assets
20,569
-
20,569
-
20,569
20,299
-
20,299
-
20,299
270
Finance leases
-
-
-
-
-
-
-
-
-
-
-
TOTAL TRANSFERRED ASSETS
20,569
-
20,569
-
20,569
20,299
-
20,299
-
20,299
270
¹
“When the counterparty (counterparties) to the associated liabilities has (have) recourse only to the transferred assets” (IFRS 7.42D.(d)).
TRANSFERRED ASSETS NOT FULLY DERECOGNISED AT 31 DECEMBER 2020
€ million
Transferred assets but still fully recognised
Transferred assets
Associated liabilities
Assets and
associated
liabilities
Carrying
amount
of which
securi-
tisation
(non- de-
consoli-
dating)
of which
securities
sold/bought
under
repurchase
agreements
of
which
other
Fair
value
Carrying
amount
of which
securi-
tisation
(non- de-
consoli-
dating)
of which
securities
sold/bought
under
repurchase
agreements
of
which
other
Fair
value¹
Net fair
value
Financial assets held for trading
14,130
-
14,130
-
14,130
13,908
-
13,908
-
13,908
222
Equity instruments
3,173
-
3,173
-
3,173
3,123
-
3,123
-
3,123
50
Debt securities
10,957
-
10,957
-
10,957
10,785
-
10,785
-
10,785
172
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Other financial instruments
at fair
value through profit or loss
-
-
-
-
-
-
-
-
-
-
-
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
Debt securities
-
-
-
-
-
-
-
-
-
-
-
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Financial assets at fair value through
other comprehensive income
627
-
627
-
627
596
-
596
-
596
31
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
Debt securities
627
-
627
-
627
596
-
596
-
596
31
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Financial assets at amortised cost
1,178
-
1,178
-
1,178
1,130
-
1,130
-
1,130
48
Debt securities
1,178
-
1,178
-
1,178
1,130
-
1,130
-
1,130
48
Loans and receivables
-
-
-
-
-
-
-
-
-
-
-
Total Financial assets
15,935
-
15,935
-
15,935
15,634
-
15,634
-
15,634
301
Finance leases
-
-
-
-
-
-
-
-
-
-
-
TOTAL TRANSFERRED ASSETS
15,935
-
15,935
-
15,935
15,634
-
15,634
-
15,634
301
¹
“When the counterparty (counterparties) to the associated liabilities has (have) recourse only to the transferred assets” (IFRS 7.42D.(d)).
330
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2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.7 Exposure to sovereign risk
The scope of the sovereign exposures recorded includes exposures to government debt, but not local authority debt. Tax debt is
excluded from the scope.
The sovereign debt exposure is equal to the exposure net of impairment (carrying amount) presented both gross and net of hedging.
Crédit Agricole CIB’s sovereign risk exposure is as follows:
BANKING ACTIVITY
€ million
31.12.2021
Exposures Banking activity net of impairment
Other financial instruments at fair
value through profit or loss
Financial assets
at fair value
through other
comprehensive
income that may
be reclassified to
profit or loss
Financial assets
at amortised cost
Total banking
activity before
hedging
Hedging
Total banking
activity after
hedging
Held-for-trading
financial assets
Other financial
instruments
at
fair value through
profit or loss
Germany
-
-
-
-
-
-
-
Saudi Arabia
5
-
-
1,300
1,305
-
1,305
Argentina
-
-
-
42
42
-
42
Austria
9
-
-
15
24
-
24
Belgium
-
-
-
293
293
-
293
Brazil
12
-
214
122
348
-
348
China
212
-
66
262
540
(1)
539
Egypt
-
-
-
328
328
-
328
Spain
-
-
101
-
101
-
101
United States
2,780
-
45
365
3,190
(1)
3,189
France
-
-
320
1,628
1,948
(14)
1,934
Hong Kong
91
-
-
1,274
1,365
-
1,365
Italy
-
-
-
-
-
-
-
Japan
182
-
440
1,430
2,052
-
2,052
Lebanon
-
-
-
-
-
-
-
Morocco
28
-
-
-
28
-
28
Poland
-
-
-
-
-
-
-
United Kingdom
-
-
-
-
-
-
-
Russia
-
-
-
-
-
-
-
Turkey
-
-
-
-
-
-
-
Ukraine
-
-
-
95
95
-
95
Venezuela
-
-
-
18
18
-
18
Other sovereign
countries
917
-
677
4,860
6,454
-
6,454
Total
4,236
-
1,863
12,032
18,131
(16)
18,115
331
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
€ million
31.12.2020
Exposures Banking activity net of impairment
Other financial instruments at fair
value through profit or loss
Financial assets
at fair value
through other
comprehensive
income that may
be reclassified to
profit or loss
Financial assets
at amortised cost
Total banking
activity before
hedging
Hedging
Total banking
activity after
hedging
Held-for-trading
financial assets
Other financial
instruments
at
fair value through
profit or loss
Saudi Arabia
-
-
-
890
890
-
890
Argentina
-
-
-
44
44
-
44
Austria
119
-
-
16
135
-
135
Belgium
-
-
72
350
422
(4)
418
Brazil
8
-
112
158
278
-
278
China
189
-
34
136
360
(2)
358
Egypt
-
-
-
347
347
-
347
Spain
-
-
1,056
-
1,056
-
1,056
United States
1,721
-
43
655
2,419
(2)
2,417
France
-
-
497
2,486
2,984
(31)
2,953
Hong Kong
58
-
-
880
938
-
938
Italy
-
-
-
-
-
-
-
Japan
-
-
246
1,435
1,681
-
1,681
Lebanon
-
-
-
-
-
-
-
Morocco
-
-
-
-
-
-
-
Poland
-
-
-
-
-
-
-
United Kingdom
-
-
-
-
-
-
-
Russia
-
-
-
-
-
-
-
Turkey
-
-
-
-
-
-
-
Ukraine
-
-
-
78
78
-
78
Venezuela
-
-
-
30
30
-
30
Other sovereign
countries
1,087
-
470
3,507
5,062
-
5,062
TOTAL
3,182
-
2,530
11,012
16,724
(39)
16,685
332
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.8 Financial liabilities at amortised cost
€ million
31.12.2021
31.12.2020
Due to credit institutions
78,442
61,450
Due to customers
159,578
149,084
Debt securities
51,768
42,229
CARRYING AMOUNT
289,788
252,763
DUE TO CREDIT INSTITUTIONS
€ million
31.12.2021
31.12.2020
Credit institutions
-
-
Accounts and borrowings
78,318
60,187
of which current accounts in credit ¹
4,848
2,943
of which overnight accounts and deposits ¹
2,021
458
Securities sold under repurchase agreements
124
1,263
CARRYING AMOUNT
78,442
61,450
¹ These transactions are partly comprised of the item “Net demand loans and deposits with credit institutions” on the Cash Flow Statement.
DUE TO CUSTOMERS
€ million
31.12.2021
31.12.2020
Current accounts in credit
74,803
72,997
Special savings accounts
151
135
Other amounts due to customers
83,793
75,447
Securities sold under repurchase agreements
831
505
Insurance liabilities
-
-
Reinsurance liabilities
-
-
Cash deposits received from cedants and retrocessionaires against technical
insurance commitments
-
-
CARRYING AMOUNT
159,578
149,084
DEBTS REPRESENTED BY A SECURITY
€ million
31.12.2021
31.12.2020
Interest bearing notes
-
-
Money-market securities
-
-
Negotiable debt securities
47,557
38,136
Bonds
4,211
4,093
Other debt securities
-
-
CARRYING AMOUNT
51,768
42,229
333
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.9 Information on offsetting financial assets and liabilities
OFFSETTING – FINANCIAL ASSETS
€ million
31.12.2021
Offsetting effects on financial assets covered by master netting agreements and similar agreements
Gross amounts of
recognised financial
assets before
offsetting
Gross amounts of
recognised financial
liabilities set off
in the financial
statements
Net amounts of
financial assets
presented in
the financial
statements
Other amounts that can be offset under
given conditions
Net amount after all
offsetting effects
Gross amounts of
financial liabilities
covered by master
netting agreements
Amounts of
other financial
instruments
received as
collateral, including
security deposits
Derivatives
106,138
-
106,138
74,881
14,443
16,814
Reverse repurchase
agreements
247,601
130,117
117,484
9,545
107,939
-
TOTAL FINANCIAL
ASSETS SUBJECT TO
OFFSETTING
353,739
130,117
223,622
84,426
122,382
16,814
At 31 December 2021 and 31 December 2020, derivative instruments were not offset, within the meaning of IAS 32R, but were settled
on a daily basis (application of the “settlement to market” mechanism).
€ million
31.12.2020
Offsetting effects on financial assets covered by master netting agreements and similar agreements
Gross amounts of
recognised financial
assets before
offsetting
Gross amounts of
recognised financial
liabilities set off
in the financial
statements
Net amounts of
financial assets
presented in
the financial
statements
Other amounts that can be offset under
given conditions
Net amount after all
offsetting effects
Gross amounts of
financial liabilities
covered by master
netting agreements
Amounts of
other financial
instruments
received as
collateral, including
security deposits
Derivatives
136,795
-
136,795
94,604
22,784
19,407
Reverse repurchase
agreements
192,955
67,200
125,755
7,105
118,650
-
TOTAL FINANCIAL
ASSETS SUBJECT TO
OFFSETTING
329,750
67,200
262,550
101,709
141,434
19,407
The methodology for listing / identifying financial assets and liabilities covered by master netting agreements and other financial instruments received as collateral was reviewed
during 2021. Note 2020 has been amended accordingly.
OFFSETTING – FINANCIAL LIABILITIES
€ million
31.12.2021
Offsetting effects on financial assets covered by master netting agreements and similar agreements
Gross amounts of
recognised financial
assets before
offsetting
Gross amounts of
recognised financial
liabilities set off
in the financial
statements
Net amounts of
financial assets
presented in
the financial
statements
Other amounts that can be offset under
given conditions
Net amount after all
offsetting effects
Gross amounts of
financial liabilities
covered by master
netting agreements
Amounts of
other financial
instruments
received as
collateral, including
security deposits
Derivatives
101,674
-
101,674
74,881
18,272
8,521
Repurchase agreements
210,570
130,117
80,453
9,545
70,908
-
TOTAL FINANCIAL
LIABILITIES SUBJECT TO
OFFSETTING
312,244
130,117
182,127
84,426
89,180
8,521
At 31 December 2021 and 31 December 2020, derivative instruments were not offset, within the meaning of IAS 32R, but were settled
on a daily basis (application of the “settlement to market” mechanism).
334
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
€ million
31.12.2020
Offsetting effects on financial assets covered by master netting agreements and similar agreements
Gross amounts of
recognised financial
assets before
offsetting
Gross amounts of
recognised financial
liabilities set off
in the financial
statements
Net amounts of
financial assets
presented in
the financial
statements
Other amounts that can be offset under
given conditions
Net amount after all
offsetting effects
Gross amounts of
financial liabilities
covered by master
netting agreements
Amounts of
other financial
instruments
received as
collateral, including
security deposits
Derivatives
131,157
-
131,157
94,604
24,990
11,563
Repurchase agreements
152,530
67,200
85,330
7,105
78,225
-
TOTAL FINANCIAL
LIABILITIES SUBJECT TO
OFFSETTING
283,687
67,200
216,487
101,709
103,215
11,563
The methodology for listing / identifying financial assets and liabilities covered by master netting agreements and other financial instruments received as collateral was reviewed
during 2021. Note 2020 has been amended accordingly.
6.10 Current and deferred tax assets and liabilities
€ million
31.12.2021
31.12.2020
Current tax
445
353
Deferred tax
657
611
TOTAL CURRENT AND DEFERRED TAX ASSETS
1,102
964
Current tax
763
687
Deferred tax
1,343
1,436
TOTAL CURRENT AND DEFERRED TAX LIABILITIES
2,106
2,123
Crédit Agricole CIB took into account all of the information available at closing date, including recent positive developments and the
residual risks in arbitration proceedings abroad.
Net deferred tax assets and liabilities can be broken down as follows:
€ million
31.12.2021
31.12.2020
Deferred Tax Assets
Deferred Tax Liabilities
Deferred Tax Assets
Deferred Tax Liabilities
Temporary timing differences - tax
441
1,177
368
1,080
Non-deductible accrued expenses
159
-
152
-
Non-deductible
for liabilities and charges
280
-
267
-
Other temporary differences
2
1,177
(51)
1,080
Deferred tax on reserves for unrealised gains
or losses
132
29
146
221
Financial assets at fair value through other
comprehensive income
8
17
5
67
Cash flow hedges
1
40
-
186
Gains and losses/Actuarial differences
28
(28)
47
(32)
Other comprehensive income attributable to
changes in own credit risk
95
-
94
-
Deferred tax on income and reserves
84
137
97
135
TOTAL DEFERRED TAX
657
1,343
611
1,436
Deferred tax is netted in the balance sheet by tax consolidation level.
In order to determine the level of deferred tax to be recognised, Crédit Agricole CIB takes into account, for each relevant entity or tax
group, the applicable tax regime and the income projections established during the budget procedure.
TAX AUDITS
Crédit Agricole CIB Paris tax audit
After an audit of the financial statements for financial years 2017
and 2018, adjustments were carried out on Crédit Agricole CIB
as part of proposed adjustments received in 2021. Crédit Agricole
CIB disputes the reasons for the corrected items. A provision was
recognised to cover the estimated risk.
CLSA liability guarantee
In 2013, the Crédit Agricole Group sold the CLSA entities to
Chinese group CITICS.
Following tax adjustments made to some CLSA entities in India
and the Philippines, CITICS invoked the liability guarantee against
the Crédit Agricole Group. The corrected items were disputed in
a reasoned argument. A provision was recognised to cover the
estimated risk.
335
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.11 Accruals - assets, liabilities and other
ACCRUALS, PREPAYMENTS AND SUNDRY ASSETS
€ million
31.12.2021
31.12.2020
Other assets
23,388
31,235
Inventory accounts and miscellaneous
179
172
Sundry debtors ¹
22,553
30,770
Settlements accounts
656
293
Other insurance assets
-
-
Reinsurer's share of technical reserves
-
-
Accruals and deferred income
3,272
3,554
Items in course of transmission
2,324
2,759
Adjustment and suspense accounts
11
74
Accrued income
736
590
Prepaid expenses
144
85
Other accruals prepayments and sundry assets
57
46
CARRYING AMOUNT
26,660
34,789
¹ including €51 million at 31 December 2021 versus €40 million at 31 December 2020 in respect of the contribution to the Single Resolution Fund in the form of a security
deposit. The Single Resolution Fund may use the security deposit to provide funding unconditionally and at any time.
ACCRUALS, DEFERRED INCOME AND SUNDRY LIABILITIES
€ million
31.12.2021
31.12.2020
Other liabilities ¹
19,995
27,600
Settlements accounts
867
574
Sundry creditors
18,730
26,564
Liabilities related to trading securities
-
-
Other insurance liabilities
-
-
Lease liabilities
398
462
Other Commitments
-
-
Accruals and deferred income
5,856
5,693
Items in course of transmission ²
2,323
2,985
Adjustment and suspense accounts
931
583
Unearned income
287
272
Accrued expenses
2,037
1,771
Other accruals prepayments and sundry assets
278
82
Carrying amount
25,851
33,293
¹ The amounts indicated include the related debts.
² Net amounts.
336
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.12 Joint ventures and associates
Investments in equity-accounted entities for which objective
evidence of impairment was identified were subject to impairment
tests using the same methodology as for goodwill, i.e. by
using expected future cash flow estimates of the companies
in question and by using the valuation inputs described in Note
6.14 “Goodwill”.
FINANCIAL INFORMATION OF JOINT
VENTURES AND ASSOCIATES
At 31 December 2021,
y
the equity-accounted value of joint ventures was nil as it was
fully impaired (same situation at 31 December 2020),
y
Crédit Agricole CIB holds interests in a single joint venture.
Significant associates and joint ventures are presented in the table
of Note 6.12.1. These are the main joint ventures and associates
that make up the “equity-accounted value” in the balance sheet.
6.12.1 JOINT VENTURES AND ASSOCIATES: INFORMATION
€ million
31.12.2021
% of interest
Equity-
accounted
value
Share of
market value
Dividends
paid to
group’s
entities
Share of net
income
Share of
shareholders’
equity
1
Goodwill
Joint ventures
-
-
-
-
-
-
-
UBAF
47.01%
-
-
-
-
148
-
Net carrying amount of investments in
equity-accounted entities (Joint ventures)
-
-
-
-
-
148
-
Associates
-
-
-
-
-
-
-
Net carrying amount of investments in
equity-accounted entities (Associates)
-
-
-
-
-
-
-
Net carrying amount of investments in
equity-accounted entities
-
-
-
-
-
148
-
¹ Equity Group share in the financial statements of the joint venture or associate when the joint venture or associate is a sub-group.
€ million
31.12.2020
% of interest
Equity-
accounted
value
Share of
market value
Dividends
paid to
group’s
entities
Share of net
income
Share of
shareholders’
equity
1
Goodwill
Joint ventures
-
-
-
-
-
-
-
UBAF
47.01%
-
-
-
-
147
-
Elipso
0.00%
-
-
-
(1)
-
-
Net carrying amount of investments in
equity-accounted entities (Joint ventures)
-
-
-
-
(1)
147
-
Associates
-
-
-
-
-
-
-
Net carrying amount of investments in
equity-accounted entities (Associates)
-
-
-
-
-
-
-
Net carrying amount of investments in
equity-accounted entities
-
-
-
-
(1)
147
-
¹ Equity Group share in the financial statements of the joint venture or associate when the joint venture or associate is a sub-group.
337
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.12.2 JOINT VENTURES AND ASSOCIATES: DETAILED INFORMATION
The condensed financial information of the joint ventures and significant associates of Crédit Agricole CIB is presented below:
€ million
31.12.2021
Revenues
Net income
Total assets
Total equity
Joint ventures
-
-
-
-
UBAF
55
11
2,071
315
TOTAL
55
11
2,071
315
€ million
31.12.2020
Revenues
Net income
Total assets
Total equity
Joint ventures
-
-
-
-
UBAF
54
(29)
1,792
314
Elipso
(2)
(2)
-
-
TOTAL
52
(31)
1,792
314
6.12.3 SIGNIFICANT RESTRICTIONS ON JOINT VENTURES AND ASSOCIATES
Crédit Agricole CIB is subject to the following restrictions:
Regulatory constraints
The joint ventures and associates of Crédit Agricole CIB are
subject to prudential regulation and regulatory capital requirements
in their host countries. The minimum solvency ratio, leverage ratio
and liquidity ratio requirements limit the ability of these entities to
pay dividends or transfer assets to Crédit Agricole CIB.
Legal constraints
Crédit Agricole CIB Group subsidiaries are subject to the legal
provisions governing the distribution of capital and distributable
profits. These requirements limit their ability to distribute dividends.
In the majority of cases, these are less restrictive than the
regulatory limitations mentioned above.
6.13 Property, plant & equipment and intangible assets (excluding goodwill)
Operating property, plant and equipment include the right to use fixed assets leased as lessee.
The depreciation and impairments of the property, plant & equipment used in operations are presented including the depreciation of
fixed assets leased under operating leases.
€ million
31.12.2020
Changes in
scope
Increases
(acquisitions)
Decreases
(disposals and
redemptions)
Translation
adjustments
Other
movements
31.12.2021
Property, plant & equipment
used in operations
-
-
-
-
-
-
-
Gross amount
1,737
-
75
(19)
58
-
1,851
Depreciation and impairment
(845)
-
(157)
18
(37)
(1)
(1,022)
CARRYING AMOUNT
892
-
(82)
(1)
21
(1)
829
Intangible assets
-
-
-
-
-
-
-
Gross amount
717
-
102
(11)
10
-
818
Depreciation and impairment
(336)
-
(66)
9
(5)
-
(398)
CARRYING AMOUNT
381
-
36
(2)
5
-
420
€ million
31.12.2019
Changes in
scope
Increases
(acquisitions)
Decreases
(disposals and
redemptions)
Translation
adjustments
Other
movements
31.12.2020
Property, plant & equipment
used in operations
-
-
-
-
-
-
-
Gross amount
1,735
-
71
(30)
(48)
8
1,737
Depreciation and impairment
(736)
-
(158)
20
31
(2)
(845)
CARRYING AMOUNT
999
-
(87)
(10)
(17)
7
892
Intangible assets
-
-
-
-
-
-
-
Gross amount ¹
649
-
103
(3)
(8)
(24)
717
Depreciation and impairment
(287)
-
(56)
3
4
-
(336)
CARRYING AMOUNT
362
-
47
-
(4)
(24)
381
1
Transfer of the goodwill on CACIB Miami to discontinued operations.
338
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.14 Goodwill
€ million
31.12.2020
GROSS
31.12.2020
NET
Increases
(acquisitions)
Decreases
(Divestments)
Impairment
losses during
the period
Translation
adjustments
Other
movements
31.12.2021
GROSS
31.12.2021
NET
Corporate and
Investment banking
654
484
-
-
-
-
-
654
484
Wealth Management
559
559
-
-
-
20
-
579
579
TOTAL
1,213
1,043
-
-
-
20
-
1,233
1,063
Impairment tests were carried out on goodwill, based on an
assessment of the value in use of the CGUs to which it is
attached. The determination of value in use was based on the
discounting of the CGU’s estimated future cash flows resulting
from business forecasts projected over three years (2022-2025)
for the Group’s management purposes.
The following assumptions were used:
y
Estimated future cash flows: data forecasts compiled from
projected four-year budgets for financial oversight purposes.
The economic scenario on which the financial projections are
based is one in which the epidemic is gradually brought under
control and the successive waves of infection have a gradually
diminishing impact on activity. However, the degrees of eco-
nomic recovery vary widely from country to country, depending
on the fiscal and monetary leeway available to support the
economy.
Growth proved very strong in 2021, after declining
in 2020, and the outlook is still solid for 2022. US growth has
been resilient, despite the blows caused by the health crisis;
US GDP growth is sitting above its 2022 potential and should
gradually ease back to this level going forward. Meanwhile,
although eurozone activity is unlikely to return to normal until
mid-2022, the inflation shock should not alter the scenario in
which GDP growth gradually slows while remaining robust.
These forecasts are based on (i) inflation pressures, expected
to remain limited over time, then gradually easing in 2022 as
supply and demand are progressively rebalanced, (ii) a drop
in the savings rate accompanying robust growth in consumer
spending and offsetting weaker growth in disposable income, and
(iii) investment rooted in robust corporate earnings and demand
aided by stimulus plans.
Monetary policies should gradually normalise. The ECB is
expected to remain accommodative, keeping up its asset
purchases at least until end-2022, then gradually tapering them
off, resulting in a limited rise in long rates. The Fed, which is
gradually abandoning its monetary easing policy by stopping its
asset purchases in 2022 before hiking its rates, is nevertheless
expected to maintain the size of its balance sheet.
y
Allocated capital: 9.39% of risk-weighted assets for both CGUs
(up 51 basis points compared with 31 December 2020), in line
with Pillar 2 requirements;
y
Growth rate to perpetuity: 2%. Growth rates to perpetuity at 31
December 2021 were identical to those used at 31 December
2020 and reflect the growth forecasts of Crédit Agricole CIB
for both CGUs;
y
Discount rates: 9.50% (up 10 basis points compared to 31
December 2020) for the Corporate and Investment Banking
CGU and 8.50% (identical to 31 December 2020) for the Wealth
Management CGU. The calculation of discount rates is based
on a rolling monthly average over 12 years.
Impairment tests at 31 December 2021 did not give rise to
recognition of goodwill impairment.
Sensitivity tests on goodwill - Group share did not detect any
impairment requirements, either for the Corporate and Investment
Banking CGU or the Wealth Management CGU:
y
a +50 bp increase in the rate of CGU capital allocation would
not lead to recognition of impairment;
y
a +50 bp increase in the discount rate would not lead to
recognition of impairment;
y
a +100 bp increase in the cost/income ratio in the terminal
year would not lead to recognition of impairment;
y
a +10 bp increase in cost of risk in the terminal year would
not lead to recognition of impairment.
339
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.15 Provisions
€ million
31.12.2020 01.01.2021
2
Changes in
scope
Depreciation
charges
Reversals,
amounts
used
Reversals,
amounts not
used
Translation
adjustments
Other
movements
31.12.2021
Home purchase
schemes risks
-
-
-
-
-
-
-
-
-
Execution risks of
commitments by
signature
422
-
-
573
(46)
(468)
30
-
511
Operational risks
28
-
-
28
(7)
-
3
-
52
Employee retirement
and similar benefits ¹
561
(40)
-
40
(17)
(6)
10
(137)
411
Litigation
364
-
-
15
(16)
(40)
2
-
325
Equity investments
-
-
-
-
-
-
-
-
-
Restructuring
2
-
-
-
-
(2)
-
-
-
Other risks
49
-
-
9
(4)
(16)
-
-
38
TOTAL
1,426
(40)
-
665
(90)
(532)
45
(137)
1,337
¹ Of which €328 million in respect of post-employment benefits under defined-benefit plans, as detailed in note 7.4, of which €17 million in respect of the long-service award.
² Estimated impact of the first-time application of the IFRS IC decision of 21 April 2021 on calculating commitments relating to certain defined-benefit schemes (see Note 1.1
“Applicable standards and comparability”).
At 1 January 2020, the impact on employee benefit obligations (pensions) is estimated at €35 million.
€ million
31.12.2019
Changes in
scope
Depreciation
charges
Reversals,
amounts used
Reversals,
amounts not
used
Translation
adjustments
Other
movements
31.12.2020
Home purchase
schemes risks
-
-
-
-
-
-
-
-
Execution risks of
commitments by
signature
442
-
490
(14)
(471)
(25)
-
422
Operational risks
1
-
28
-
-
(1)
-
28
Employee retirement
and similar benefits ¹
517
-
30
(17)
(17)
(5)
53
561
Litigation
389
-
9
(21)
(11)
(2)
-
364
Equity investments
-
-
-
-
-
-
-
-
Restructuring
3
-
-
-
(1)
-
-
2
Other risks
70
-
20
(3)
(38)
-
-
49
TOTAL
1,422
-
577
(55)
(538)
(33)
53
1,426
¹ Of which €487 million in respect of post-employment benefits under defined-benefit plans, as detailed in note 7.4, of which €17 million in respect of the long-service award.
INQUIRIES AND REQUESTS FOR INFORMATION FROM REGULATORS
Main inquiries and requests for information from regulators:
Office of Foreign Assets Control (OFAC)
In October 2015, Crédit Agricole S.A. and its subsidiary Crédit
Agricole Corporate and Investment Bank (Crédit Agricole CIB)
reached agreements with the US and New York authorities
that had been conducting investigations regarding US dollar
transactions with countries subject to US economic sanctions.
The events covered by this agreement took place between 2003
and 2008.
Crédit Agricole CIB and Crédit Agricole S.A., which cooperated
with the US and New York authorities in connection with their
investigations, have agreed to pay a total penalty amount of
$787.3 million (i.e. €692.7 million). The payment of this penalty
has been allocated to the pre-existing reserve that had already
been taken and, therefore, has not affected the accounts for the
second half of 2015.
The agreements with the Board of Governors of the Federal
Reserve System (Fed) and the New-York State Department of
Financial Services (NYDFS) are with CASA and Crédit Agricole
CIB. The agreement with the Office of Foreign Assets Control
(OFAC) of the US Department of the Treasury is with Crédit
Agricole CIB. Crédit Agricole CIB also entered into separate
deferred prosecution agreements (DPAs) with the United States
Attorney’s Office for the District of Columbia (USAO) and the
District Attorney of the County of New York (DANY), the terms
of which are three years. On October 19, 2018 the two deferred
prosecution agreements with USAO and DANY ended at the end
of the three year period, Crédit Agricole CIB having complied with
all its obligations under the DPAs.
Crédit Agricole continues to strengthen its internal procedures and
its compliance programs regarding laws on international sanctions
and will continue to cooperate fully with the US and New York
authorities with its home regulators, the European Central Bank
and the French Regulatory and Resolution Supervisory Authority
(ACPR), and with the other regulators across its worldwide
network.
Pursuant to the agreements with NYDFS and the US Federal
Reserve, Crédit Agricole’s compliance program is subject to
regular reviews to evaluate its effectiveness, including a review
by an independent consultant appointed by NYDFS for a term
of one year and annual reviews by an independent consultant
approved by the Federal Reserve.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
Euribor/Libor and other indexes
Crédit Agricole S.A. and its subsidiary Crédit Agricole CIB, in their
capacity as contributors to a number of interbank rates, have
received requests for information from a number of authorities as
part of investigations into: (i) the calculation of the Libor (London
Interbank Offered Rates) in a number of currencies, the Euribor
(Euro Interbank Offered Rate) and certain other market indices;
and (ii) transactions connected with these rates and indices. These
demands covered several periods from 2005 to 2012.
As part of its cooperation with the authorities, Crédit Agricole S.A.
and its subsidiary Crédit Agricole CIB carried out investigations
in order to gather the information requested by the various
authorities and in particular the American authorities – the DOJ
(Department of Justice) and CFTC (Commodity Future Trading
Commission) – with which they are in discussions. It is currently
not possible to know the outcome of these discussions, nor the
date when they will be concluded.
Furthermore, Crédit Agricole CIB is currently under investigation
opened by the Attorney General of the State of Florida on both
the Libor and the Euribor.
Following its investigation and an unsuccessful settlement
procedure, on 21 May 2014, the European Commission sent
a statement of objection
to Crédit Agricole S.A. and to Crédit
Agricole CIB pertaining to agreements or concerted practices for
the purpose and/or effect of preventing, restricting or distorting
competition in derivatives related to the Euribor.
In a decision dated 7 December 2016, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB
€114,654,000 for participating in a cartel in euro interest rate
derivatives. Crédit Agricole S.A. and Crédit Agricole CIB are
challenging this decision and have asked the General Court of
the European Union to overturn it.
The Swiss competition authority, COMCO, has conducted an
investigation into the market for interest rate derivatives, including
the Euribor, with regard to Crédit Agricole S.A. and several
Swiss and international banks. This investigation was closed
following a settlement procedure under which Crédit Agricole
S.A agreed to pay a penalty
of CHF 4.465.701 and proceedings
costs amounting to CHF 187.012 without any admission of guilt.
Moreover, in June 2016 the South Korean competition authority
(KFTC) decided to close the investigation launched in September
2015 into Crédit Agricole CIB and the Libor index on various
currencies, Euribor and Tibor indices. The investigation into
certain foreign exchange derivatives (ABS-NDF)
has been closed
by the KFTC according
to a decision notified to Crédit Agricole
CIB on 20 December 2018.
Concerning the two class actions in the United States of America
in which Crédit Agricole S.A. and Crédit Agricole CIB have been
named since 2012 and 2013 along with other financial institutions,
both as defendants in one (“Sullivan” for the Euribor) and only
Crédit Agricole S.A. as defendant for the other (“Lieberman” for
Libor), the “Lieberman” class action is at the preliminary stage
that consists in the examination of its admissibility; proceedings
are still suspended before the US District Court of New York
State. Concerning the “Sullivan” class action, Crédit Agricole
S.A. and Crédit Agricole CIB introduced a motion to dismiss the
applicants’ claim. The US District Court of New York State upheld
the motion to dismiss regarding Crédit Agricole S.A. and Crédit
Agricole CIB in first instance.
On 14 June 2019, the plaintiffs
appealed this decision.
Since 1 July 2016, Crédit Agricole S.A. and Crédit Agricole CIB,
together with other banks, are also party to a new class action suit
in the United States (“Frontpoint”) relating to the SIBOR (Singapore
Interbank Offered Rate) and SOR (Singapore Swap Offer Rate)
indices. After having granted a first motion to dismiss filed by
Crédit Agricole S.A. and Crédit Agricole CIB, the New York Federal
District Court, ruling on a new request by the plaintiffs, excluded
Crédit Agricole S.A. from the Frontpoint case on the grounds
that it had not contributed to the relevant indexes. The Court
considered, however, taking into account recent developments
in case law, that its jurisdiction could apply to Crédit Agricole CIB,
as well as to all the banks that are members of the SIBOR index
panel. The allegations contained in the complaint regarding the
SIBOR/USD index and the SOR index were also rejected by the
court, therefore the index SIBOR/Singapore dollar alone is still
taken into account. On 26 December, the plaintiffs filed a new
complaint aimed at reintroducing into the scope of the Frontpoint
case the alleged manipulations of the SIBOR and SOR indexes
that affected the transactions in US dollars. Crédit Agricole CIB,
alongside the other defendants, objected to this new complaint
at the hearing held on 2 May 2019 before the New York Federal
District Court. On July 26, 2019, the Federal Court granted the
defendants’ motion to dismiss. The plaintiffs filed a notice of
appeal on August 26, 2019.
On March 17, 2021, a three-judge panel of the Court of Appeal
of the 2
nd
Circuit reversed the dismissal and returned the case to
the District Court. The defendants, including Crédit Agricole CIB,
requested the Second Circuit Court to rehear the case “en banc”
(all the active judges of the Court). This motion was denied by
the Second Circuit Court on May 6, 2021. Another motion was
filed on May 12, 2021 by the defendants seeking a stay of this
decision remanding the case to the District Court, which was
rejected on May 24, 2021. On October 1, 2021, the defendants
filed a petition for writ of certiorari with the US Supreme Court,
which decided on January 10, 2022 not to hear the case. A new
petition, currently under review, has been filed by the defendants
before the District Court in an attempt to stop this action.
These class actions are civil actions in which the plaintiffs claim
that they are victims of the methods used to set the Euribor,
Libor, SIBOR and SOR rates, and seek repayment of the sums
they allege were unlawfully received, as well as damages and
reimbursement of costs and fees paid.
Bonds SSA
Several regulators
requested information to Crédit Agricole S.A.
and to Crédit Agricole CIB for
investigations relating to activities
of different banks involved in the secondary trading of Bonds SSA
(Supranational, Sub-Sovereign and Agencies) denominated in
American dollars. Through the cooperation with these regulators,
Crédit Agricole CIB proceeded to internal inquiries to gather
the required information available. On 20 December
2018, the
European Commission issued a Statement of Objections to
a number of banks including Crédit Agricole S.A. and Crédit
Agricole CIB within its inquiry on a possible infringement of rules
of European Competition
law in the secondary trading of Bonds
SSA denominated in American dollars. Crédit Agricole S.A. and
Crédit Agricole CIB
became aware of these objections and issued
a response on 29 March 2019, followed by an oral hearing on
10-11 July 2019.
In a decision dated 28 April 2021, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB
€3,993,000 for participating in a cartel in the secondary trading
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
market of Bonds SSA denominated in American dollars. On 7 July
2021, Crédit Agricole S.A. and Crédit Agricole CIB appealed this
decision to the General Court of the European Union.
Crédit Agricole CIB was included with other banks in a putative
consolidated class action before the United States District
Court for the Southern District of New York. That action was
dismissed on 29 August 2018 on the basis that the plaintiffs failed
to allege an injury sufficient to give them standing. However the
plaintiffs
were given an opportunity to attempt to remedy that
defect. The plaintiffs filed an amended complaint on 7 November
2018. Crédit Agricole CIB as well as the other defendants filed
motions to dismiss the amended complaint. An order issued on
30 September 2019 dismissed the class action against CACIB
for lack of personal jurisdiction and, in a subsequent ruling, the
Court held that the plaintiffs had in any event failed to state a
claim for violation of US antitrust law.
In June 2020, the plaintiffs
took an appeal from both of the Court’s orders. On 19 July 2021,
the Second Circuit Court of Appeals affirmed the district court’s
holding that plaintiffs had failed to state a claim for violation of
US antitrust law. Plaintiffs’ deadline to seek further review of the
district court’s decision from the US Supreme Court passed on
2 December 2021 without plaintiffs taking any further action, and
the action therefore is concluded.
On 7 February 2019, a second class action was filed against
CACIB and the other defendants named in the class action
already pending before the United States District Court for
the Southern District of New York.
In July 2020, the plaintiffs
voluntarily discontinued the action but the claim could be revived.
On 11 July 2018, Crédit Agricole S.A. and Crédit Agricole CIB
were notified with other banks of a class action filed in Canada,
before the Ontario Superior Court of Justice. Another class action
has been filed before the Federal Court of Canada. The action
before the Ontario Superior Court of Justice was dismissed on
19 February 2020.
O’Sullivan and Tavera
On November 9, 2017, a group of individuals, (or their families
or estates), who claimed to have been injured or killed in attacks
in Iraq filed a complaint (“O’Sullivan I”) against several banks
including Crédit Agricole S.A., and its subsidiary Crédit Agricole
Corporate Investment Bank (Crédit Agricole CIB), in US Federal
District Court in New York.
On December 29, 2018, the same group of individuals, together
with 57 new plaintiffs, filed a separate action (“O’Sullivan II”)
against the same defendants.
On December 21, 2018, a different group of individuals filed a
complaint (“Tavera”) against the same defendants.
All three complaints allege that Crédit Agricole S.A., Crédit
Agricole CIB, and other defendants conspired with Iran and
its agents to violate US sanctions and engage in transactions
with Iranian entities in violation of the US Anti-Terrorism Act and
the Justice Against Sponsors of Terrorism Act.
Specifically, the
complaints allege that Crédit Agricole S.A., Crédit Agricole CIB,
and other defendants processed US dollar transactions on behalf
of Iran and Iranian entities in violation of sanctions administered
by the US Treasury Department’s Office of Foreign Assets Control,
which allegedly enabled Iran to fund terrorist organizations that,
as is alleged, attacked plaintiffs.
The plaintiffs are seeking an
unspecified amount of compensatory damages.
On 2 March 2018, Crédit Agricole CIB and other defendants filed
a motion to dismiss the
“O’Sullivan I” Complaint. On 28 March
2019, the Court granted defendants’ motion to dismiss.
On 22
April 2019, the plaintiffs filed a motion to amend their complaint.
Defendants submitted an opposition to that motion on 20 May
2019 and plaintiffs filed a reply on 10 June 2019. On 25 February
2020 the plaintiffs’ motion to amend their complaint was denied
and their original complaint dismissed with prejudice.
On 28 May 2020, plaintiffs filed a motion requesting that the court
enter a final judgment against defendants to allow an appeal.
On
11 June 2020, the defendants filed an opposition to plaintiffs’
motion, and plaintiffs filed a reply brief on 18 June 2020. On
29 June 2021, the court denied plaintiffs’ motion.
On 28 July 2021, the court stayed the O’Sullivan I action pending
a decision in the appeal in a related case, Freeman vs. HSBC
Holdings, PLC, No. 19-3970 (2d. Cir.). (The O’Sullivan II and
Tavera cases have been previously stayed pending that appeal.)
Intercontinental Exchange, Inc. (“ICE”)
On January 15, 2019 a class action (“Putnam Bank”) was filed
before a federal court in New-York (US District Court Southern
District of New-York) against the Intercontinental Exchange,
Inc. (“ICE”) and a number of banks including Crédit Agricole
S.A., Crédit Agricole CIB and Crédit Agricole Securities-USA.
This action has been filed by plaintiffs who allege that they have
invested in financial instruments indexed to the USD ICE LIBOR.
They accuse the banks of having collusively set the index USD
ICE LIBOR at artificially low levels since February 2014 and made
thus illegal profits.
On January 31, 2019 a similar action (“Livonia”) has been filed
before the US District Court Southern District of New-York, against
a number of banks including Crédit Agricole S.A., Crédit Agricole
CIB and Crédit Agricole Securities-USA. On February 1, 2019,
these two class actions were consolidated for pre-trial purposes.
On March 4, 2019, a third class action (“Hawaï Sheet Metal
Workers retirement funds”) was filed against the same banks in
the same courtand consolidated with the two previous actions
on April 26, 2019.
On July 1
st
, 2019, the plaintiffs filed a “Consolidated Class Action
Complaint”. On August 30, 2019, the Defendants filed a motion
to dismiss against this consolidated complaint. On March 26,
2020, a judgment granted the Defendants Motion to Dismiss. On
April 24, 2020, the plaintiffs filed a notice of appeal.
On November 30, 2020, during briefing of the appeal, Plaintiffs’
lawyers informed Defendants that all of the named Plaintiffs wished
to withdraw from the case and, on December 1, 2020, Plaintiffs’
counsel filed the motion to stay the appeal, which Defendants
opposed. The court denied the motion on December 7, 2020 and
Plaintiffs filed their reply brief on December 15, 2020.
On December 28, 2020, DYJ Holdings Inc. filed a motion for
leave to intervene to replace the currents named plaintiffs. On
January 7, 2021, Defendants filed a brief in opposition to DYJ
Holdings’ motion and also filed a motion to dismiss the appeal.
On April 6, 2021, the court granted DYJ Holdings Inc.’s motion
for leave to intervene and denied Defendants’ motion to dismiss
the appeal.
On June 10, 2021, Defendants submitted a supplemental brief
addressing merits issues unique to DJY Holdings.
Oral argument was held on November 29, 2021.
Binding agreements
Crédit Agricole Corporate and Investment Bank (Crédit Agricole
CIB) does not depend on any industrial, commercial or financial
patent, license or contract.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.16 Subordinated debt
(1) Directive 2013/36/EU of 26 June 2013, as modified, and amended since Directive (EU) 2019/878 of 20 May 2019, including through the Directive (and its transpositions into
French law) and Regulation (EU) No. 575/2013 of 26 June 2013 as supplemented and since amended, including through Regulation (EU) 2019/876 of 20 May 2019.
(2) Directive 2014/59/EU of 15 May 2014 as supplemented and since amended, including through Directive (EU) 2019/879 of 20 May 2019 as regards the loss-absorbing and
recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC.
€ million
31.12.2021
31.12.2020
Dated subordinated debt
3,546
3,230
Undated subordinated debt
533
1,121
CARRYING AMOUNT
4,079
4,351
SUBORDINATED DEBT ISSUES
The issue of subordinated debt plays a part in regulatory capital
management while helping to fund all Crédit Agricole CIB
operations.
The Capital Requirements Regulation and Directive (CRD IV/
CRR)
(1)
define the conditions under which subordinated
instruments qualify as regulatory capital and set out the terms
and conditions of progressive disqualification of older instruments
that do not meet these requirements .
All subordinated debt issues, whether new or old, are likely to
be subject to bail-in in certain circumstances, particularly in
the event of resolution of the issuing bank, in accordance with
applicable French law transposing the European Bank Recovery
and Resolution Directive (BRRD
(2)
).
Subordinated debt issues differ from senior bonds (preferred or
non-preferred) due to their ranking in terms of liquidation (principal
and interest) as contractually defined by their subordination clause
explicitly referring to applicable French law, depending on the date
on which they were issued (subordinated debt issues are junior
to senior non-preferred and preferred debt).
6.17 Equity
OWNERSHIP STRUCTURE AT 31 DECEMBER 2021
At 31 December 2021, share and voting right ownership broke down as follows:
Crédit Agricole CIB’s shareholders
Number of shares at
31.12.2021
% of the share capital
% of voting rights
Crédit Agricole S.A.
283,037,792
97.33%
97.33%
SACAM développement ¹
6,485,666
2.23%
2.23%
Delfinances ²
1,277,888
0.44%
0.44%
TOTAL
290,801,346
100%
100%
¹ Owned by Crédit Agricole Group.
² Owned by Crédit Agricole S.A. Group.
At 31 December 2021, Crédit Agricole CIB’s share capital stood at €7,851,636,342, composed of 290,801,346 fully paid up ordinary
shares each with a par value of €27.
EARNINGS PER SHARE
31.12.2021
31.12.2020
Net income Group share during the period
(In million of euros)
1,691
1,341
Net income attributable to undated deeply subordinated
securities
(In million of euros)
(308)
(264)
Net income attributable to holders of ordinary shares
(In million of euros)
1,383
1,077
Weighted average number of ordinary shares in circulation
during the period
290,801,346
290,801,346
Weighted average number of ordinary shares for calculation of
diluted earnings per share
290,801,346
290,801,346
BASIC EARNINGS PER SHARE
(in euros)
4.75
3.70
Basic earnings per share from ongoing activities
(in euros)
4.73
3.79
Basic earnings per share from discontinued operations
(in euros)
0.02
(0.09)
DILUTED EARNINGS PER SHARE (IN EUROS)
(in euros)
4.75
3.70
Diluted earnings per share from ongoing activities
(in euros)
4.73
3.79
Diluted earnings per share from discontinued operations
(in euros)
0.02
(0.09)
Net income attributable to subordinated and deeply subordinated securities is equal to the issue costs and the interest accrued on
subordinated and deeply subordinated Additional Tier 1 bond issues. It totalled -€308 million in respect of financial year 2021.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
DIVIDENDS
The dividend distribution policy, defined by the Board of Directors,
is based on an analysis which takes past dividends, the financial
position, and the results of the company into account.
The Board of Directors may advise the General Meeting that part
of distributable earnings should be retained or appropriated to
one or more reserve accounts. These reserves may receive any
appropriations decided by the General Meeting, on a motion by
the Board of Directors, in particular with a view to the amortisation
or reduction of the capital through the share redemption or
buybacks.
The balance of distributable profit is allocated to the shareholders,
in proportion to their interest in the Crédit Agricole’s share capital
for the purpose of dividend distribution.
In addition, the General Meeting may decide to distribute sums
deducted from distributable reserves.
However, except in the case of a capital reduction, no distribution
may be made to the shareholders when the shareholders’ equity
is or would become less than the amount of the share capital
plus reserves that the laws and regulations in force do not permit
to be distributed.
The conditions for dividend payment approved by the General
Meeting are set by the latter or failing that, by the Board of
Directors, and the payment must occur within the time period
prescribed by the laws and regulations in force.
The General Meeting called to approve the financial statements
for the year may grant to each shareholder, for all or part of the
dividend being distributed, or for the interim dividends, a choice
between payment of the final or interim dividends in cash or in
shares.
Dividend paid in
respect of year
Net amount
in € million
Number of share
receiving dividend
Dividend per
share
2017
1,236
290,801,346
Total:
4.25
2018
489
290,801,346
Total:
1.68
2019
512
290,801,346
Total:
1.76
2020
1,023
290,801,346
Total:
3.52
2021
553
290,801,346
Total:
1.90
For the 2021 financial year, the Board of Directors made a motion
to submit for approval to the General Meeting the distribution of
€552,522,557.40.
APPROPRIATION OF INCOME AND DETERMINATION OF 2021 DIVIDEND
The proposed appropriation of net income is set out in the draft resolutions to be presented by the Board of Directors at Crédit Agricole
CIB’s General Meeting on 3 May 2022. The components of said appropriation are listed below. Net income for the financial year ended
31 December 2021 amounted to €1,359,358,639.19. The Board of Directors has decided to advise the General Meeting to allocate
this net income as follows:
Amount of profit at 31/12/2021 (euros)
1,359,358,639.19
Attribution of profit at 31/12/2021:
è
to the legal reserve for (threshold of 10% of share capital reached)
-
è
to a special reserve (art. 238 bis AB par. 5 of the French General Tax Code) for
77,988
Balance of profit at 31/12/2021 after attribution to the special reserve
1,359,280,651.19
Amount of profit allocated to retained earnings at 31/12/2021
4,161,940,097.56
Amount of distributable profit
5,521,220,748.75
Dividend payout deducted from the balance of profit at 31/12/2021 after attribution to reserves
552,522,557.40
Attribution of the balance of profit to retained earnings after dividend payout for
806,758,093.79
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
UNDATED FINANCIAL INSTRUMENTS
Main issues of undated deeply subordinated notes classified in other comprehensive income:
Issue date
Currency
Amount in
currency at
31 December
2020
Partial repurchases
and redemptions
Amount in
currency at
31 December
2021
31.12.2021
Amount in
euros at
inception rate
Interests paid
Group share
Issuance costs
net of taxes
Shareholders’
equity Group
share
In millions of
units
In millions of units
In millions of
units
In millions of
euros
In millions of
euros
In millions of
euros
In millions of
euros
11/16/2015
EUR
1,800
(600)
1,200
1,200
679
-
521
6/9/2016
USD
720
-
720
635
290
-
345
6/27/2018
EUR
500
-
500
500
88
-
412
9/19/2018
EUR
500
-
500
500
73
-
427
2/26/2019
USD
470
-
470
414
69
-
345
6/18/2019
EUR
300
-
300
300
34
-
266
1/27/2020
EUR
500
-
500
500
31
-
469
2/4/2021
USD
-
-
730
609
22
-
587
3/23/2021
EUR
-
-
200
200
5
-
195
3/23/2021
EUR
-
-
400
400
10
-
390
6/23/2021
EUR
-
-
220
220
4
-
216
6/23/2021
EUR
-
-
930
930
16
-
914
6/25/2021
EUR
-
-
1,500
1,500
26
-
1,474
TOTAL
-
-
-
7,908
1,347
-
6,561
At 31 December 2020, issues amounted to €4,649 million in progress and -€1,039 million in aggregate remuneration Group share.
The undated subordinated and deeply subordinated debt issues classified in Group share of shareholders’ equity break down as follows:
€ million
31.12.2021
31.12.2020
Undated deeply subordinated notes
-
-
Interests paid accounted as reserves
(308)
(264)
Income tax savings related to interest paid to security holders recognised in net
income
88
84
6.18 Non-controlling interests
Non-controlling interests held by Crédit Agricole CIB are insignificant, except the stakes held in Crédit Foncier de Monaco Indosuez
Wealth Group and Azqore.
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 6: NOTES TO THE BALANCE SHEET
6.19 Breakdown of financial assets and liabilities by contractual maturity
The breakdown of on-balance sheet financial assets and liabilities is shown by contractual maturity date.
The maturities of derivative instruments held for trading and for hedging are their date of contractual maturity.
Equities and other variable-income securities by nature have no contractual maturity and are classified as “Undetermined”.
Revaluation adjustments on interest rate-hedged portfolios are considered to have an indefinite maturity, given the absence of defined
maturity.
€ million
31.12.2021
≤ 3 months
> 3 months up
to
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Indefinite
Total
Cash, central banks
65,067
-
-
-
-
65,067
Financial assets at fair value through profit or loss
105,345
31,093
38,421
68,750
7,131
250,740
Hedging derivative Instruments
1,206
59
47
11
-
1,323
Financial assets at fair value through other
comprehensive income
1,523
2,439
7,906
1,213
347
13,428
Financial assets at amortised cost
106,924
38,029
72,911
21,205
2
239,071
Revaluation adjustment on interest rate hedged
portfolios
7
-
-
-
-
7
TOTAL FINANCIAL ASSETS BY MATURITY
280,072
71,620
119,285
91,179
7,480
569,636
Central banks
1,224
-
-
-
-
1,224
Financial liabilities at fair value through profit or loss
90,160
19,316
42,863
95,248
-
247,587
Hedging derivative Instruments
1,116
47
19
20
-
1,202
Financial liabilities at amortised cost
222,961
25,528
35,751
5,548
-
289,788
Subordinated debt
19
-
750
2,789
521
4,079
Revaluation adjustment on interest rate hedged
portfolios
9
-
-
-
-
9
TOTAL FINANCIAL LIABILITIES BY MATURITY
315,489
44,891
79,383
103,605
521
543,889
€ million
31.12.2020
≤ 3 months
> 3 months up
to
≤ 1 year
> 1 year up to
≤ 5 years
> 5 years
Indefinite
Total
Cash, central banks
54,434
-
-
-
-
54,434
Financial assets at fair value through profit or loss
121,062
29,046
43,014
84,804
6,489
284,415
Hedging derivative Instruments
1,347
99
48
9
-
1,503
Financial assets at fair value through other
comprehensive income
761
2,060
6,845
1,376
269
11,311
Financial assets at amortised cost
84,422
32,312
66,603
20,295
-
203,632
Revaluation adjustment on interest rate hedged
portfolios
-
-
-
-
-
-
TOTAL FINANCIAL ASSETS BY MATURITY
262,026
63,517
116,510
106,484
6,758
555,295
Central banks
837
-
-
-
-
837
Financial liabilities at fair value through profit or loss
99,007
20,745
47,287
107,188
-
274,227
Hedging derivative Instruments
1,455
107
105
42
-
1,709
Financial liabilities at amortised cost
204,238
18,721
24,065
5,739
-
252,763
Subordinated debt
46
-
-
3,230
1,075
4,351
Revaluation adjustment on interest rate hedged
portfolios
95
-
-
-
-
95
TOTAL FINANCIAL LIABILITIES BY MATURITY
305,678
39,573
71,457
116,199
1,075
533,982
346
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 7: EMPLOYEE BENEFITS AND OTHER REMUNERATION
NOTE 7: EMPLOYEE BENEFITS AND OTHER REMUNERATION
7.1 Breakdown of payroll expenses
€ million
31.12.2021
31.12.2020
Salaries ¹
(1,676)
(1,621)
Contributions to defined-contribution plans
(90)
(85)
Contributions to defined-benefit plans
(23)
(25)
Other social security expenses
(369)
(354)
Profit-sharing and incentive plans
(37)
(34)
Payroll-related tax
(52)
(48)
TOTAL EMPLOYEE EXPENSES
(2,247)
(2,167)
¹ Of which expenses related to share-based payments for €60 million at 31 December 2021 versus €70 million at 31 December 2020.
7.2 Average headcount for the period
Average number of employees
31.12.2021
31.12.2020
France
5,109
4,969
International
6,737
6,589
TOTAL
11,846
11,558
7.3 Post-employment benefits, defined-contribution plans
There are various mandatory pension plans to which employers
contribute. The funds are managed by independent organisations
and the contributing companies have no legal or implied obligation
to pay additional contributions if the funds do not have sufficient
assets to provide all the benefits corresponding to the services
rendered by staff during the current and previous years.
Consequently, Crédit Agricole CIB has no liability in this respect
other than contributions payable.
Within Crédit Agricole CIB, there are several compulsory defined-
contribution plans, the main ones being Agirc/Arrco, which are
French supplementary pension plans, notably supplemented by
an “Article 83” type supplementary plan.
7.4 Post-employment benefits, defined-benefit plans
CHANGE IN ACTUARIAL LIABILITIES
€ million
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
All Zones
All Zones
Actuarial liability at 31.12.2020
240
1,733
1,973
1,910
Impact of IFRIC IAS 19 at opening ²
(40)
-
(40)
-
Translation adjustments
-
107
107
(53)
Cost of service rended during the period
11
31
42
42
Financial cost
1
16
17
21
Employee contributions
-
15
15
14
Benefit plan changes, withdrawals and
settlement
(2)
-
(2)
(14)
Changes in scope
-
-
-
-
Benefits paid (mandatory)
(8)
(67)
(75)
(84)
Tax, administratives costs and bonuses
-
-
-
-
Actuarial (gains)/losses arising from changes in
demographic assumptions ¹
2
(12)
(10)
31
Actuarial (gains)/losses arising from changes in
financial assumptions ¹
(8)
(54)
(62)
106
ACTUARIAL LIABILITY AT CLOSING
196
1,769
1,965
1,973
¹ Of which actuarial gains/losses related to experience adjustment.
² Concern the impact of the 1st application of the IFRS IC decision of April 21, 2021 relating to the calculation of commitments relating to certain defined benefit plans for an
amount of €40 million on January 1, 2021 (see note 1.1 Applicable standards and comparability).
As of January 1, 2020, the impact of actuarial liabilities would have been €35 million.
347
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 7: EMPLOYEE BENEFITS AND OTHER REMUNERATION
BREAKDOWN OF EXPENSE RECOGNISED IN PROFIT OR LOSS
€ million
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
All Zones
All Zones
Service cost
10
32
42
30
Income/expenses on net interests
1
1
2
3
IMPACT IN PROFIT AND LOSS AT CLOSING
11
33
44
33
BREAKDOWN OF NET INCOME AND OTHER COMPREHENSIVE INCOME THAT CANNOT BE
RECLASSIFIED TO PROFIT OR LOSS
€ million
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
All Zones
All Zones
Revaluation from net liabilities (from net assets)
-
-
-
-
Total amount of actuarial gains or losses recognised
in OCI that will not be reclassified to profit and loss at
opening 31.12.2020
144
318
462
423
Translation adjustments
-
16
16
(13)
Actuarial (gains)/losses on assets
-
(71)
(71)
(84)
Actuarial (gains)/losses arising from changes in demographic
assumptions ¹
2
(12)
(10)
31
Actuarial (gains)/losses arising from changes in financial
assumptions ¹
(8)
(53)
(61)
105
Adjustment of assets restriction's impact
-
-
-
-
IMPACT IN OCI AT CLOSING
(6)
(120)
(126)
40
¹ Of which actuarial gains/losses related to experience adjustment.
CHANGE IN FAIR VALUE OF ASSETS
€ million
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
All Zones
All Zones
Fair value of assets at opening 31.12.2020
15
1,470
1,485
1,438
Translation adjustments
-
98
98
(49)
Interests on asset (income)
-
14
14
18
Actuarial gains/(losses)
-
71
71
83
Employer contributions
1
25
26
29
Employee contributions
-
16
16
14
Benefit plan changes, withdrawals and settlement
-
-
-
-
Changes in scope
-
-
-
28
Tax, administratives costs and bonuses
-
(1)
(1)
(1)
Benefits paid out under the benefit plan
-
(66)
(66)
(75)
FAIR VALUE OF ASSETS AT CLOSING
16
1,627
1,643
1,485
NET POSITION
€ million
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
All Zones
All Zones
Closing actuarial liability
197
1,768
1,965
1,973
Impact of asset restriction
-
-
-
-
Fair value of assets at end of period
(16)
(1,627)
(1,643)
(1,485)
NET POSITION OF ASSETS/(LIABILITIES) AT END OF
PERIOD
181
141
322
488
DEFINED-BENEFIT PLANS: MAIN ACTUARIAL ASSUMPTIONS
In percentage
31.12.2021
31.12.2020
Eurozone
Outside Eurozone
Eurozone
Outide Eurozone
Discount rate ¹
0.81%
1.10%
0.46%
0.89%
Actual return on plan assets and on reimbursement rights
5.54%
5.67%
3.43%
7.12%
Expected salary increase rates ²
0.69%
1.90%
0.59%
1.73%
Rate of change in medical costs
0.00%
0.00%
NA
NA
¹ Discount rates are determined depending on the average period of the commitment, i.e. the arithmetic average of the periods calculated between the date of valuation and the
date of payment weighted by staff turnover assumptions. The underlying item is the discount rate based on the iBoxx index.
² Depending on the populations in question (managers or non-managers).
348
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 7: EMPLOYEE BENEFITS AND OTHER REMUNERATION
INFORMATION ON PLAN ASSETS - ALLOCATION OF ASSETS
(1)
€ million
Eurozone
Outside Eurozone
All Zones
%
Amount
Of which
listed
%
Amount
Of which
listed
%
Amount
Of which
listed
Equities
3.08%
485
485
25.32%
412,065
412,065
25.11%
412,550
412,550
Bonds
32.61%
5,137
5,137
47.32%
769,982
769,982
47.18%
775,119
775,119
Property/Real estate
2.28%
359
12.02%
195,590
11.93%
195,949
Other assets
62.04%
9,774
15.34%
249,633
15.79%
259,407
(1) Of which fair value of reimbursement rights.
Crédit Agricole CIB’s employee benefit coverage policy complies
with local financing rules in countries where minimum funding is
required.
Overall, Crédit Agricole CIB covered
83.61%
of its employee
benefit obligations at 31 December 2021.
At 31 December 2021, the sensitivity analysis showed that:
y
a 50-basis point increase in discount rates would reduce the
commitment by
-7.24%
;
y
a 50-basis point decrease in discount rates would increase
the commitment by
8.20%.
7.5 Other employee benefits
Crédit Agricole CIB pays long-service awards.
7.6 Share-based payments
STOCK OPTION PLAN
No new plans were implemented in 2021 by Crédit Agricole CIB.
FREE SHARE ALLOCATION PLAN
No new plans were implemented in 2021 by Crédit Agricole CIB.
CAPITAL INCREASE RESERVED FOR
CURRENT AND RETIRED EMPLOYEES OF THE
CRÉDIT AGRICOLE GROUP
In 2021, Crédit Agricole S.A. offered current and retired Group
employees the option to subscribe for a new capital increase
reserved for them. This transaction was launched in 9 of the
countries where Crédit Agricole CIB operates.
DEFERRED VARIABLE COMPENSATION
PAID IN SHARES OR CASH INDEXED TO THE
SHARE PRICE
The deferred variable compensation plans implemented by the
Crédit Agricole CIB Group in respect of 2021 are settled partially
in cash indexed to the Crédit Agricole S.A. share price.
These plans are subject to permanent vesting conditions
(continued employment, performance and specific provisions
for identified staff, relating to the professional behavior of
beneficiaries) and their payment is deferred in equal amounts
over three, four or five years.
The expense related to these plans is recognised in employee
expenses. It is staggered on a straight-line basis over the
vesting period to reflect continued employment, and a liability is
recorded in employee expenses, the amount of which is subject
to periodic revaluation through profit or loss until the settlement
date, depending on the change in the Crédit Agricole S.A. share
price and the vesting conditions (continued employment and
performance conditions).
7.7 Remuneration of senior managers
Senior managers of Crédit Agricole CIB include all members of
the Executive Committee of Crédit Agricole CIB.
The composition of the Executive Committee is detailed in the
Corporate Governance chapter of this Universal Registration
Document.
The compensation paid and benefits granted to the members of
the Executive Committee in 2021 were as follows:
y
short-term benefits: €16.6 million for fixed and variable com-
pensation (o/w €1.6 million paid in share-indexed instruments),
including social security expenses and benefits in kind;
y
post-employment benefits at 31 December 2021: €7.6 million
for end-of-career benefit commitments and the supplementary
pension plan set up for the Group’s Senior Executive Officers;
y
other long-term benefits: the amount granted for long-service
awards was not material;
y
other share-based payment: not applicable.
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 8: LEASES
NOTE 8: LEASES
8.1 Leases for which the Group is the lessee
“Operating property, plant & equipment” in the balance sheet is made up of owned assets and leased assets, which do not meet the
definition of investment property.
€ million
31.12.2021
31.12.2020
Owned property, plant & equipment
453
456
Right-of-use on lease contracts
376
436
Total Property, plant & equipment used in operations
829
892
Crédit Agricole CIB is also a lessee in 1 to 3 year leases of computer equipment (photocopiers, computers, etc.). These contracts are
of low value and/or short-term. Crédit Agricole CIB has chosen to apply the exemptions stipulated by IFRS 16 and to not recognise the
right-of-use assets and lease liabilities on these leases in the balance sheet.
CHANGE IN RIGHT-OF-USE ASSETS
Crédit Agricole CIB leases multiple assets, including offices and computer equipment.
Information relating to leases in which Crédit Agricole CIB is a lessee is provided below:
€ million
31.12.2020
Change in
scope
Increases
(acquisitions)
Decreases
(disposals)
Translation
adjustments
Other
movements
31.12.2021
Property/Real estate
-
-
-
-
-
-
-
Gross amount
619
-
42
(10)
17
-
668
Depreciation and impairment
(193)
-
(109)
8
(8)
-
(302)
Total Property/Real estate
426
-
(67)
(2)
9
-
366
Equipment
-
-
-
-
-
-
-
Gross amount
19
-
6
(2)
-
-
23
Depreciation and impairment
(9)
-
(6)
2
-
-
(13)
Total Equipment
10
-
-
-
-
-
10
Total Right-of-use
436
-
(67)
(2)
9
-
376
€ million
31.12.2019
Change in
scope
Increases
(acquisitions)
Decreases
(disposals)
Translation
adjustments
Other
movements
31.12.2020
Property/Real estate
-
-
-
-
-
-
-
Gross amount
613
‐
38
(23)
(18)
9
619
Depreciation and impairment
(105)
‐
(109)
15
6
‐
(193)
Total Property/Real estate
508
‐
(71)
(8)
(12)
9
426
Equipment
-
-
-
-
-
-
-
Gross amount
19
‐
3
(2)
(1)
‐
19
Depreciation and impairment
(5)
‐
(6)
2
‐
‐
(9)
Total Equipment
14
‐
(3)
‐
(1)
‐
10
Total Right-of-use
522
‐
(74)
(8)
(13)
9
436
SCHEDULE OF LEASE LIABILITIES
€ million
31.12.2021
≤ 1 year
> 1 year up to ≤ 5 years
> 5 years
Total Lease liabilities
Lease liabilities
132
209
58
399
€ million
31.12.2020
≤ 1 year
> 1 year up to ≤ 5 years
> 5 years
Total Lease liabilities
Lease liabilities
106
280
77
463
350
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2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 8: LEASES
BREAKDOWN OF LEASE EXPENSES AND
INCOME
€ million
31.12.2021
31.12.2020
Interest expense on lease liabilities
(6)
(7)
Total Interest and similar expenses
(Revenues)
(6)
(7)
Expense relating to short-term leases
(3)
‐
Expense relating to leases of low-value
assets
(9)
(3)
Expense relating to variable lease
payments not included in the
measurement of lease liabilities
‐
‐
Income from subleasing right-of-use
assets
‐
‐
Gains or losses arising from leaseback
transactions
‐
‐
Gains or losses arising from lease
modifications
‐
‐
Total Operating expenses
(12)
(3)
Depreciation for right-of-use
(113)
(115)
Total Depreciation and amortisation
of property, plant & equipment
(113)
(115)
Total Expense and income on lease
contracts
(131)
(125)
AMOUNTS OF CASH FLOWS FOR THE PERIOD
€ million
31.12.2021
31.12.2020
Total Cash outflow for leases
(144)
(134)
8.2 Leases for which the Group is the lessor
Crédit Agricole CIB offers its clients leasing activities in the form
of leases, leases with purchase option, finance leases and long-
term leases. Leases are classified as finance leases when the
terms of the lease transfer substantially all the risks and rewards
of ownership to the lessee.
Other leases are classified as operating leases.
Leases are classified as finance leases when the terms of the
lease transfer substantially all the risks and rewards of ownership
to the lessee.
LEASE INCOME
€ million
31.12.2021
31.12.2020
Finance leases
‐
‐
Selling profit or loss
‐
‐
Finance income on the net investment
in the lease
‐
‐
Income relating to variable lease
payments
‐
‐
Operating leases
11
8
Lease income
11
8
351
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 9: COMMITMENTS GIVEN AND RECEIVED AND OTHER GUARANTEES
NOTE 9: COMMITMENTS GIVEN AND RECEIVED AND OTHER
GUARANTEES
Commitments given and received and other guarantees include discontinued operations.
COMMITMENTS GIVEN AND RECEIVED
€ million
31.12.2021
31.12.2020
Commitments given
202,911
177,623
Financing commitments
120,858
119,931
Commitments given to credit
institutions
6,224
8,396
Commitments given to customers
114,634
111,535
Confirmed credit lines
100,479
101,372
Documentary credits
4,887
3,902
Other confirmed credit lines
95,592
97,470
Other commitments given to
customers
14,155
10,163
Guarantee commitments
77,051
53,205
Credit institutions
9,420
6,674
Confirmed documentary credit lines
4,119
2,795
Other
5,301
3,879
Customers
67,631
46,531
Property guarantees
2,154
1,954
Other customer guarantees
65,477
44,577
Securities commitments
5,002
4,487
Securities to be delivered
5,002
4,487
Commitments received
188,505
169,051
Financing commitments
763
1,212
Commitments received from credit
institutions
644
544
Commitments received from
customers
119
668
Guarantee commitments
184,042
163,744
Commitments received from credit
institutions
16,531
5,879
Commitments received from
customers
167,511
157,865
Guarantees received from
government bodies or similar
institutions ¹
29,236
25,644
Other guarantees received
138,275
132,221
Securities commitments
3,700
4,095
Securities to be received
3,700
4,095
¹ At 31 December 2021, under the economic stimulus plan implemented in response
to the Covid-19 health crisis, Crédit Agricole CIB granted government-backed loans
for which it received guarantee commitments from the French State in the amount
of €1.792 billion.
FINANCIAL INSTRUMENTS GIVEN AND
RECEIVED AS COLLATERAL
€ million
31.12.2021
31.12.2020
Carrying amount of financial assets
provided as collateral (including
transferred assets)
-
-
Securities and receivables provided
as collateral for the refinancing
structures (Banque de France, CRH,
etc.)
59,881
55,491
Securities lent
1
666
Security deposits on market
transactions
19,678
25,574
Other security deposits
-
-
Securities sold under repurchase
agreements
80,453
85,329
Total carrying amount of financial
assets provided as collateral
160,013
167,060
Carrying amount of financial assets
received in garantee
-
-
Other security deposits
-
-
Fair value of instruments received
as reusable and reused collateral
-
-
Securities borrowed
11
7
Secutities bought under repurchase
agreements
136,665
141,172
Securities sold short
41,922
37,172
Total fair value of instruments
received as reusable and reused
collateral
178,598
178,352
RECEIVABLES PLEDGED AS COLLATERAL
In 2021, Crédit Agricole CIB deposited €5.93 billion in receivables
as collateral either directly or as part of the Crédit Agricole Group’s
contribution to various refinancing mechanisms, compared with
€4.88 billion in 2020. Crédit Agricole CIB retains all the risks and
rewards associated with these receivables.
In addition, Crédit Agricole CIB deposited:
y
€2.49 billion in receivables with the United States Federal
Reserve (FED) versus €3.75 billion in 2020;
y
€0.74 billion in notes issued by ESNI (European Secured Notes
Issuer), a French-law securitisation company created by five
banks including the Crédit Agricole Group.
GUARANTEES HELD
Guarantees and enhancements held mainly consist of mortgages,
pledges and guarantees received, regardless of the quality of the
assets guaranteed.
The guarantees held by the Crédit Agricole CIB Group that it is
authorised to sell or use as collateral amounted to €178 billion
at 31 December 2021 versus €178 billion at 31 December 2020.
They are primarily made up of repos.
Crédit Agricole CIB policy is to sell seized collateral as soon
as possible. Crédit Agricole CIB had no such assets either at
31 December 2021 or at 31 December 2020.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
Principles applied by Crédit Agricole CIB
Instruments are only reclassified under exceptional circumstances following a decision by Crédit Agricole CIB’s Executive Management
as a result of internal or external changes that are material to Crédit Agricole CIB’s activity.
Reclassifications by Crédit Agricole CIB
In 2021, the Crédit Agricole CIB Group did not carry out any reclassifications within the meaning of paragraph 4.4.1 of IFRS 9.
NOTE 11: FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the price that would be received for the sale of
an asset or paid for the transfer of a liability in an arm’s length
transaction between market participants on the valuation date.
Fair value is defined based on the exit price.
The fair values given below are estimates made on the reporting
date using observable market data wherever possible. They are
liable to change in the future due to changes in market conditions
or other factors.
The calculations are best estimates. They are based on a number
of assumptions. Market participants are assumed to act in their
best economic interests.
As these models contain uncertainties, the fair values used may
not be realised when the financial instruments in question are
actually sold or if they are immediately settled.
The fair value hierarchy for financial assets and liabilities is broken
down according to the observability of the inputs used for their
valuation in line with the principles defined by IFRS 13.
Fair value hierarchy Level 1 applies to the fair value of financial
assets and liabilities listed on active markets.
Fair value hierarchy Level 2 applies to the fair value of financial
assets and liabilities with observable inputs. This includes market
data relating to interest rate risk or credit risk where they can be
measured from observable Credit Default Swap (CDS) spread
quotes. Repurchase agreements listed on an active market, based
on the underlying and the maturity of the transaction, may also
be included in level 2 of the hierarchy, as are financial assets and
liabilities with a demand component whose fair value is equal to
the unadjusted amortised cost.
Level 3 of the hierarchy indicates the fair value of financial assets
and liabilities for which there is no observable data or for which
some inputs can be remeasured with internal models using
historical data. These are mainly parameters related to credit
risk or prepayment risk.
In some cases, market values may be close to the carrying
amounts. This applies primarily to:
y
floating-rate assets or liabilities whose fair value is not signifi-
cantly affected by changes in interest rates, as their rates are
frequently adjusted to market rates;
y
short-term assets or liabilities whose redemption value is con-
sidered to be close to market value;
y
instruments traded on a regulated market (e.g. regulated
savings) whose prices are set by the public authorities;
y
demand assets or liabilities;
y
transactions for which there are no reliable observable data.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
11.1 Fair value of financial assets and liabilities recognised at amortised cost
The amounts presented below include accruals and prepayments and are net of impairment.
FINANCIAL ASSETS RECOGNISED AT AMORTISED COST AND MEASURED AT FAIR VALUE ON
THE BALANCE SHEET
€ million
Value at
31.12.2021
Estimated
fair value at
31.12.2021
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial assets not measured at fair
value on balance sheet
-
-
-
-
-
Loans and receivables
209,430
209,278
-
48,564
160,714
Loans and receivables due from credit
institutions
43,600
43,607
-
43,486
121
Current accounts and overnight loans
5,030
5,030
-
5,030
-
Accounts and long-term loans
36,728
36,735
-
36,614
121
Pledged securities
-
-
-
-
-
Securities bought under repurchase
agreements
1,842
1,842
-
1,842
-
Subordinated loans
-
-
-
-
-
Other loans and receivables
-
-
-
-
-
Loans and receivables due from
customers
165,830
165,671
-
5,078
160,593
Trade receivables
26,372
26,374
-
-
26,374
Other customer loans
134,209
134,055
-
-
134,055
Pledged securities
-
-
-
-
-
Securities bought under repurchase
agreements
751
751
-
714
37
Subordinated loans
40
40
-
-
40
Advances in associates' current accounts
71
71
-
-
71
Current accounts in debit
4,387
4,380
-
4,364
16
Debt securities
29,641
29,655
15,677
1,484
12,494
Treasury bills and similar securities
7,523
7,523
7,296
227
-
Bonds and other fixed income securities
22,118
22,132
8,381
1,257
12,494
TOTAL FINANCIAL ASSETS OF WHICH
FAIR VALUE IS DISCLOSED
239,071
238,933
15,677
50,048
173,208
€ million
Value at
31.12.2020
Estimated
fair value at
31.12.2020
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial assets not measured at fair
value on balance sheet
-
-
-
-
-
Loans and receivables
168,742
168,902
-
31,605
137,297
Loans and receivables due from credit
institutions
26,742
26,745
-
26,615
130
Current accounts and overnight loans
3,462
3,462
-
3,447
15
Accounts and long-term loans
22,246
22,250
-
22,135
115
Pledged securities
-
-
-
-
-
Securities bought under repurchase
agreements
1,034
1,033
-
1,033
-
Subordinated loans
-
-
-
-
-
Other loans and receivables
-
-
-
-
-
Loans and receivables due from
customers
142,000
142,157
-
4,990
137,167
Trade receivables
14,931
14,939
-
-
14,939
Other customer loans
121,621
121,770
-
1
121,769
Pledged securities
-
-
-
-
-
Securities bought under repurchase
agreements
1,320
1,320
-
1,067
253
Subordinated loans
40
40
-
-
40
Advances in associates' current accounts
130
130
-
-
130
Current accounts in debit
3,958
3,958
-
3,922
36
Debt securities
34,890
34,932
15,587
3,086
16,259
Treasury bills and similar securities
6,819
6,838
6,726
112
-
Bonds and other fixed income securities
28,071
28,094
8,861
2,974
16,259
TOTAL FINANCIAL ASSETS OF WHICH
FAIR VALUE IS DISCLOSED
203,632
203,834
15,587
34,691
153,556
354
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
FINANCIAL LIABILITIES RECOGNISED AT AMORTISED COST AND MEASURED AT FAIR VALUE
ON THE BALANCE SHEET
€ million
Value at
31.12.2021
Estimated
fair value at
31.12.2021
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial liabilities not measured at fair
value on balance sheet
-
-
-
-
-
Due to credit institutions
78,442
78,442
-
78,442
-
Current accounts and overnight loans
6,869
6,869
-
6,869
-
Accounts and term deposits
71,449
71,449
-
71,449
-
Pledged securities
-
-
-
-
-
Securities sold under repurchase
agreements
124
124
-
124
-
Due to customers
159,578
159,578
-
159,575
3
Current accounts in credit
74,803
74,803
-
74,803
-
Special savings accounts
151
151
-
151
-
Other amounts due to customers
83,793
83,793
-
83,790
3
Securities sold under repurchase
agreements
831
831
-
831
-
Debt securities
51,768
51,769
-
51,769
-
Subordinated debt
4,079
4,079
-
4,079
-
TOTAL FINANCIAL LIABILITIES OF
WHICH FAIR VALUE IS DISCLOSED
293,867
293,868
-
293,865
3
€ million
Value at
31.12.2020
Estimated
fair value at
31.12.2020
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial liabilities not measured at fair
value on balance sheet
-
-
-
-
-
Due to credit institutions
61,450
61,450
-
61,336
114
Current accounts and overnight loans
3,402
3,402
-
3,402
-
Accounts and term deposits
56,785
56,785
-
56,785
-
Pledged securities
-
-
-
-
-
Securities sold under repurchase
agreements
1,263
1,263
-
1,149
114
Due to customers
149,084
149,084
-
149,080
4
Current accounts in credit
72,997
72,997
-
72,997
-
Special savings accounts
135
135
-
135
-
Other amounts due to customers
75,447
75,447
-
75,443
4
Securities sold under repurchase
agreements
505
505
-
505
-
Debt securities
42,229
42,221
-
42,221
-
Subordinated debt
4,351
4,351
-
4,351
-
TOTAL FINANCIAL LIABILITIES OF
WHICH FAIR VALUE IS DISCLOSED
257,114
257,106
-
256,988
118
355
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
11.2
Information about financial instruments
measured at fair value
Market transactions are measured by management information
systems and checked by a team that reports to the Risk Division
and is independent from market operators.
Valuations are made using:
y
prices or inputs obtained from independent sources and/or
validated by the Market Risk Department using all the sources
available, such as pricing service vendors, market consensus
data and brokers;
y
models validated by the Market Risk Department’s quantitative
teams.
The valuation produced for each instrument is a mid-market
valuation, which does not take into account the direction of
the trade, the bank’s aggregate exposure, market liquidity or
counterparty quality. Adjustments are then made to the market
valuations to incorporate these factors, and the potential
uncertainties inherent in the models or inputs used.
The main types of valuation adjustments are as follows:
Mark-to-market adjustments:
these adjustments aim to adjust
for the potential variance between the mid-market valuation of
an instrument arrived at using internal valuation models and the
associated inputs and the valuation determined from external
sources or market consensus data. These adjustments may be
positive or negative;
Bid/ask adjustments:
these adjustments aim to incorporate the
bid/ask spread in the valuation of a given instrument to reflect the
price at which the position could be reversed. These adjustments
are always negative;
Adjustments for uncertainty:
these adjustments account for
a risk premium as considered by any market participant. These
adjustments are always negative:
y
adjustments for input uncertainty aim to incorporate any uncer-
tainties that may exist in relation to one or more of the inputs
used in the valuation of an instrument;
y
adjustments for model uncertainty aim to incorporate any
uncertainties that may exist in relation to one or more of the
inputs used in the valuation of an instrument.
Furthermore, and in accordance with IFRS 13 “Fair value
measurement”, Crédit Agricole CIB (CACIB) includes, in the
calculation of the fair value of its OTC derivatives, various
adjustments relating to:
y
default or credit quality risk (Credit Valuation Adjustment/Debit
Valuation Adjustment)
y
future financing costs and gains (Funding Valuation Adjustment)
y
liquidity risk associated with collateral (Liquidity Valuation
Adjustment).
CVA ADJUSTMENT
The Credit Valuation Adjustment (CVA) is a mark-to-market
adjustment that aims to price the market value of our
counterparties’ default risk (risk that amounts due to us will
not be repaid if counterparties default or their creditworthiness
deteriorates) into the value of OTC derivatives. This adjustment is
calculated for each counterparty based on the trading portfolio’s
positive future exposure profiles (taking into account any netting
or collateral agreements, where applicable) weighted by the
probability of default and the losses incurred in the event of
default.
The methodology used maximises the use of inputs/market price
(the probability of default is preferably directly deduced from
listed CDS, listed CDS proxies, or other credit instruments if they
are deemed to be sufficiently liquid). This adjustment is always
negative and reduces the fair value of the OTC derivative assets
held in the portfolio.
DVA ADJUSTMENT
The Debit Valuation Adjustment (DVA) is a mark-to-market
adjustment that aims to price the market value of our own
default risk (potential losses to which CACIB may expose its
counterparties if it defaults or its creditworthiness deteriorates) into
the value of fully collateralised OTC derivatives. This adjustment
is calculated for each type of collateral contract based on the
trading portfolio’s negative future exposure profiles weighted by
the probability of default (of CASA) and the losses incurred in the
event of default.
The methodology used maximises the use of inputs/market price
(use of CASA CDS to determine the probability of default). This
adjustment is always positive and reduces the fair value of the
OTC derivative liabilities held in the portfolio.
FVA ADJUSTMENT
The Funding Valuation Adjustment (FVA) is a mark-to-market
adjustment that aims to price the additional future funding costs
and benefits based on the cost of Asset & Liability Management
(ALM) funding into the fair value of OTC derivatives that are
not collateralised, or not fully collateralised. This adjustment is
calculated for each counterparty based on the trading portfolio’s
positive future exposure profiles (taking into account any netting
or collateral agreements, where applicable) weighted by ALM
funding spreads.
For “cleared” derivatives, an FVA adjustment known as an IMVA
(Initial Margin Value Adjustment) is calculated to take into account
the future funding costs and benefits for the initial margins to be
posted with the main derivative clearing houses until the portfolio
matures.
LVA ADJUSTMENT
The LVA (Liquidity Valuation Adjustment) is a positive or negative
valuation adjustment aimed at pricing in both the potential
absence of collateral payment for counterparties with a CSA
(Credit Support Annex), and the non-standard remuneration from
CSAs.
The LVA therefore factors in the gain or loss resulting from the
additional liquidity costs. It is calculated for OTC derivatives with
a CSA.
356
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
BREAKDOWN OF FINANCIAL INSTRUMENTS AT FAIR VALUE BY VALUATION MODEL
f
Financial assets measured at fair value
€ million
31.12.2021
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial assets held for trading
250,376
27,412
215,732
7,232
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
820
-
1
819
Securities bought under repurchase agreements
114,891
-
112,364
2,527
Pledged securities
-
-
-
-
Held for trading securities
29,852
27,307
2,159
386
Treasury bills and similar securities
14,907
13,829
1,078
-
Bonds and other fixed income securities
8,089
6,796
1,080
213
Mutual funds
24
24
-
-
Equities and other variable income securities
6,832
6,658
1
173
Derivative instruments
104,813
105
101,208
3,500
Other financial instruments
at fair value through profit or
loss
364
140
35
189
Equity instruments at fair value through profit or loss
300
110
16
174
Equities and other variable income securities
141
110
16
15
Non-consolidated equity investments
159
-
-
159
Debt instruments that do not meet the conditions of the
“SPPI” test
64
30
19
15
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
-
-
-
-
Debt securities
64
30
19
15
Treasury bills and similar securities
-
-
-
-
Bonds and other fixed income securities
15
-
-
15
Mutual funds
49
30
19
-
Financial assets recognized at fair value through equity
-
-
-
-
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
-
-
-
-
Debt securities
-
-
-
-
Treasury bills and similar securities
-
-
-
-
Bonds and other fixed income securities
-
-
-
-
Financial assets at fair value through other
comprehensive income
13,428
11,522
1,660
246
Equity instruments at fair value
through other
comprehensive income that will not be reclassified to
profit or loss
347
101
-
246
Equities and other variable income securities
39
-
-
39
Non-consolidated equity investments
308
101
-
207
Debt instruments at fair value through other
comprehensive income that may be reclassified to profit
and loss
13,081
11,421
1,660
-
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
-
-
-
-
Debt securities
13,081
11,421
1,660
-
Treasury bills and similar securities
1,862
1,810
52
-
Bonds and other fixed income securities
11,219
9,611
1,608
-
Hedging derivative Instruments
1,323
-
1,323
-
TOTAL FINANCIAL ASSETS MEASURED AT FAIR VALUE
265,491
39,074
218,750
7,667
Transfers from Level 1: Quoted prices in active markets for
identical instruments
988
-
988
-
Transfers from Level 2: Valuation based on observable data
1,130
1,094
-
36
Transfers from Level 3: Valuation based on unobservable data
718
-
718
-
TOTAL TRANSFERS TO EACH LEVEL
2,836
1,094
1,706
36
Transfers between Level 1 and Level 2 mainly concern treasury bills and bonds and other fixed-income securities for €1,094m and €988m.
Transfers from Level 3 to Level 2 are mainly the securities of credit institutions and clients received under repurchase agreements, debt
securities and trading derivatives for €718m.
Transfers from Level 2 to Level 3 mainly concern trading derivatives for €36m.
357
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
€ million
31.12.2020
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Financial assets held for trading
284,101
22,628
255,713
5,760
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
872
-
141
731
Securities bought under repurchase agreements
123,400
-
121,397
2,003
Pledged securities
-
-
-
-
Held for trading securities
24,912
22,626
1,859
427
Treasury bills and similar securities
13,069
11,773
1,296
-
Bonds and other fixed income securities
5,606
4,887
563
156
Mutual funds
17
17
-
-
Equities and other variable income securities
6,221
5,948
2
271
Derivative instruments
134,917
2
132,316
2,599
Other financial instruments
at fair value through profit or
loss
314
124
16
174
Equity instruments at fair value through profit or loss
259
95
11
153
Equities and other variable income securities
124
95
11
18
Non-consolidated equity investments
135
-
-
135
Debt instruments that do not meet the conditions of the
“SPPI” test
55
29
5
21
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
5
-
-
5
Debt securities
50
29
5
16
Treasury bills and similar securities
-
-
-
-
Bonds and other fixed income securities
16
-
-
16
Mutual funds
34
29
5
-
Financial assets recognized at fair value through equity
-
-
-
-
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
-
-
-
-
Debt securities
-
-
-
-
Treasury bills and similar securities
-
-
-
-
Bonds and other fixed income securities
-
-
-
-
Financial assets at fair value through other
comprehensive income
11,311
9,807
1,310
194
Equity instruments at fair value
through other
comprehensive income that will not be reclassified to
profit or loss
269
75
-
194
Equities and other variable income securities
37
1
-
36
Non-consolidated equity investments
232
74
-
158
Debt instruments at fair value through other
comprehensive income that may be reclassified to profit
and loss
11,042
9,733
1,309
-
Loans and receivables due from credit institutions
-
-
-
-
Loans and receivables due from customers
-
-
-
-
Debt securities
11,042
9,733
1,309
-
Treasury bills and similar securities
2,596
2,546
49
-
Bonds and other fixed income securities
8,447
7,187
1,260
-
Hedging derivative Instruments
1,503
-
1,503
-
TOTAL FINANCIAL ASSETS MEASURED AT FAIR VALUE
297,230
32,560
258,542
6,128
Transfers from Level 1: Quoted prices in active markets for
identical instruments
1,545
-
1,533
12
Transfers from Level 2: Valuation based on observable data
340
154
-
186
Transfers from Level 3: Valuation based on unobservable data
1,320
1
1,319
-
TOTAL TRANSFERS TO EACH LEVEL
3,205
155
2,852
198
Transfers from Level 1 to Level 2 mainly concern options listed on underlying equity.
The assets transferred from Level 1 to Level 3 are bonds and other fixed-income securities.
The assets transferred from Level 2 to Level 1 are mainly treasury bills and bonds and other fixed-income securities.
Transfers from Level 3 to Level 2 are mainly the securities of credit institutions or clients received under repurchase agreements and
trading derivatives.
The assets transferred from Level 3 to Level 1 are bonds and other fixed-income securities.
The assets transferred from Level 2 to Level 3 are mainly the securities of customers received under repurchase agreements and
trading derivatives. These transfers are mainly the result of better identification of fair value levels on transactions already present at
31 December 2019 for €186m.
358
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
f
Financial liabilities measured at fair value
€ million
31.12.2021
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Held for trading financial liabilities
221,904
41,744
178,117
2,043
Securities sold short
41,934
41,621
292
20
Securities sold under repurchase agreements
79,498
-
78,799
699
Debt securities
-
-
-
-
Due to credit institutions
-
-
-
-
Due to customers
-
-
-
-
Derivative instruments
100,472
123
99,026
1,324
Financial liabilities designated at fair value through profit
or loss
25,683
-
18,039
7,644
Hedging derivative Instruments
1,202
-
1,202
-
TOTAL FINANCIAL LIABILITIES MEASURED AT FAIR
VALUE
248,789
41,744
197,358
9,687
Transfers from Level 1: Quoted prices in active markets for
identical instruments
12
-
1
11
Transfers from Level 2: Valuation based on observable data
378
5
-
373
Transfers from Level 3: Valuation based on unobservable data
1,065
-
1,065
-
TOTAL TRANSFERS TO EACH LEVEL
1,455
5
1,066
384
Transfers to and outside of Level 3 mainly concern securities sold under repurchase agreements with credit institutions, trading derivatives
and financial liabilities designated at fair value through profit or loss.
€ million
31.12.2020
Quoted prices in
active markets
for identical
instruments: Level 1
Valuation
based on
observable data:
Level 2
Valuation based on
unobservable data:
Level 3
Held for trading financial liabilities
250,169
36,932
211,341
1,895
Securities sold short
37,179
36,931
248
-
Securities sold under repurchase agreements
83,540
-
82,803
737
Debt securities
-
-
-
-
Due to credit institutions
-
-
-
-
Due to customers
-
-
-
-
Derivative instruments
129,449
1
128,290
1,158
Financial liabilities designated at fair value through profit
or loss
24,059
-
18,307
5,752
Hedging derivative Instruments
1,709
-
1,709
-
TOTAL FINANCIAL LIABILITIES MEASURED AT FAIR
VALUE
275,936
36,932
231,357
7,647
Transfers from Level 1: Quoted prices in active markets for
identical instruments
1,057
-
1,057
-
Transfers from Level 2: Valuation based on observable data
1,204
64
-
1,140
Transfers from Level 3: Valuation based on unobservable data
681
-
681
-
TOTAL TRANSFERS TO EACH LEVEL
2,942
64
1,738
1,140
Transfers from Level 1 to Level 2 mainly concern options listed on underlying equity.
Level 2 transfers to Level 1 mainly concern negotiable debt securities.
Transfers from Level 3 to Level 1 had no impact on 2020.
Transfers from Level 3 to Level 2 mainly involved securities bought under resale and interest rate swaps. The review of the observability
mapping of derivative instruments and liabilities designated at fair value is €500m and concerns repurchase agreements.
Transfers from Level 2 to Level 3 resulted mainly from better identification of the fair value of transactions outstanding at 31/12/2019
(€425m) and an observability mapping review (€624m).
359
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS CLASSIFIED AS
LEVEL 1
Level 1 is the classification applied to derivatives traded on an
active organised market (options, futures, etc.), regardless of the
underlying (interest rate, exchange rate, precious metals or main
equity indices), and equities and bonds listed on an active market.
A market is regarded as being active if quoted prices are readily
and regularly available from exchanges, brokers, dealers, pricing
services or regulatory agencies, and these prices represent actual
transactions regularly occurring in the market at arm’s length.
Corporate, government and agency bonds that are measured
based on prices obtained from independent sources that are
considered to be executable and are regularly updated are
classified as Level 1. This applies to the bulk of the sovereign,
agency and corporate bonds held. Issuers whose bonds are not
listed are classified as Level 3.
FINANCIAL INSTRUMENTS CLASSIFIED AS
LEVEL 2
The main financial instruments classified as Level 2 are:
Liabilities designated at fair value
Debts issued and designated at fair value are classified as Level 2
if their embedded derivative is considered to fall under Level 2;
Over-the-counter derivatives
The main OTC derivatives classified as Level 2 are those
measured using inputs considered to be observable and a
valuation technique that does not generate significant exposure
to model risk.
The following are therefore classified as Level 2:
y
Linear derivative products such as interest-rate swaps, currency
swaps and forward FX. These are measured using simple
models widely used by the market, based on inputs that are
directly observable (foreign exchange rates and interest rates)
or can be deduced from the market prices of observable
products (foreign exchange swaps);
y
non-linear vanilla instruments such as caps, floors, swaptions,
currency options, equity options and credit default swaps,
including digital options. These are measured using simple
models widely used by the market, based on inputs that are
directly observable (foreign exchange rates, interest rates and
share prices) or can be deduced from observable market
prices (volatilities);
y
simple exotic single-underlying instruments such as cancellable
swaps or baskets of major currencies;
These are measured using models that are sometimes slightly
more complex but are still widely used by the market. The
significant inputs are observable. Prices are observable on the
market, particularly through quotes from brokers and/or market
consensus data, which can be used to corroborate internal
valuations;
y
Securities, equity options, and future equity options listed on
a market deemed to be inactive and for which independent
valuation data is available.
FINANCIAL INSTRUMENTS CLASSIFIED AS
LEVEL 3
Financial instruments classified as Level 3 are those that do not
meet the conditions for classification as Level 1 or 2. They are
therefore mainly financial instruments with a high model risk or
products whose valuation requires the use of significant non-
observable inputs.
A reserve is recognised on the initial recognition date for the initial
margin for all new transactions classified as Level 3. The margin
is added back to profit or loss, either spread out over the period
during which the inputs are considered to be non-observable or
in its entirety on the date when the inputs become observable.
The following are therefore classified as Level 3:
Securities
Level-3 securities mainly consist of:
y
Unlisted shares or bonds for which no independent valuation
is available;
y
ABSs and CLOs for which there are indicative independent
valuations but these are not necessarily executable;
y
ABSs, CLOs and super senior and mezzanine CDO tranches,
for which the active nature of the market has not been
demonstrated.
Liabilities designated at fair value
Debts issued and designated at fair value are classified as Level
3 if their embedded derivative is considered to fall under Level 3.
Over-the-counter derivatives
Unobservable products are financial instruments that are complex,
significantly exposed to model risk or require the use of inputs
considered to be non-observable.
Based on these principles, observability mapping is carried out
for the three Levels, indicating the classification for each product,
currency and maturity.
The following are most commonly classified as Level 3:
y
Linear interest rate or currency products with very long matur-
ities for major currencies, or shorter maturities for emerging
currencies; this may include repos depending on the maturity
of the transactions involved and their underlying assets;
y
non-linear interest rate or currency products with very long
maturities for major currencies, or shorter maturities for
emerging currencies;
y
the following complex derivatives:
-
some equity derivatives: options on shallow markets or very
long-dated options or products whose valuation depends
on non-observable correlations between various underlying
shares;
- some exotic interest rate products whose underlying is the
difference two interest rates (structured products based on
interest-rate differences or products whose correlations are
not observable);
-
some products whose underlying is the forward volatility of
an index. These products are deemed to be non-observable
because of their significant model risk and thin liquidity, which
prevent regular and accurate estimates of inputs;
-
securitisation swaps generating exposure to the prepayment
rate. The prepayment rate is determined based on historical
data for similar portfolios;
-
long-term interest rate/foreign exchange hybrid products of
the power reverse dual currency type, or products whose
underlying is a basket of foreign currencies. The inputs for
the correlation between the interest rates and currencies
and between the two interest rates are determined using an
internal methodology based on historical data. Results are
cross-checked against market consensus data to ensure that
the overall method is consistent;
- multiple-underlying products generating exposure to corre-
lations between several risk classes (interest-rate, credit, FX,
inflation and equity);
-
the parts of CDOs exposed to baskets of corporate credit.
These are now immaterial.
360
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
NET CHANGES IN FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ACCORDING TO
LEVEL 3
f
Financial assets measured at fair value according to Level 3
€ million
Total
Financial assets held for trading
Other financial instruments
at fair value
through profit or loss
Financial assets at fair value
through other comprehensive
income
Loans and receivables due from customers
Securities bought under repurchase agreements
Held-for-trading securities
Derivative instruments
Equity
instruments
at fair value
through profit
or loss
Debt instruments that do
not meet the conditions of
the "SPPI" test
Equity
instruments
at fair value
through other
comprehen-
sive income
that will not
be reclassi-
fied to profit
and loss
Financial assets
designated at fair
value through profit
or loss
Equity and other variable income
securities
Non-consolidated equity investments
Loans and receivables due from
customers
Debt securities
Debt securities
Treasury bills and similar
securities
Bonds and other fixed
income securities
Equities and other
variable income securities
Held-for-trading securities
Treasury bills and similar
securities
Bonds and other fixed
income securities
Debt securities
Equities and other
variable income securities
Non-consolidated equity
investments
Treasury bills and similar
securities
Bonds and other fixed
income securities
Debt securities
OPENING
BALANCE
(01.01.2021)
6,128
731
2,003
-
156
271
427
2,599
18
135
5
-
16
16
36
158
-
-
-
Gains or losses
during the period ¹
(8)
7
(272)
-
9
5
14
222
(5)
24
-
-
(2)
(2)
-
4
-
-
-
Recognised in
profit or loss
(43)
(9)
(272)
-
9
5
14
214
(6)
18
-
-
(2)
(2)
-
-
-
-
-
Recognised
in other
comprehensive
income
35
16
-
-
-
-
-
8
1
6
-
-
-
-
-
4
-
-
-
Purchases
3,683
380
2,335
-
66
168
235
715
9
-
-
-
-
-
1
8
-
-
-
Sales
(562)
(271)
-
-
(8)
(271)
(279)
-
(7)
-
(5)
-
-
-
-
-
-
-
-
Issues
22
-
-
-
-
-
-
22
-
-
-
-
-
-
-
-
-
-
-
Settlements
(963)
(38)
(838)
-
(1)
-
(1)
(86)
-
-
-
-
-
-
-
-
-
-
-
Reclassifications
(15)
10
-
-
-
-
-
-
-
-
-
-
-
-
-
(25)
-
-
-
Changes
associated with
scope during
the
period
64
-
-
-
-
-
-
-
-
-
-
-
-
-
1
63
-
-
-
Transfers
(682)
-
(701)
-
(9)
-
(9)
28
-
-
-
-
-
-
-
-
-
-
-
Transfers to
Level 3
36
-
-
-
-
-
-
36
-
-
-
-
-
-
-
-
-
-
-
Transfers from
Level 3
(718)
-
(701)
-
(9)
-
(9)
(8)
-
-
-
-
-
-
-
-
-
-
-
CLOSING
BALANCE
(31.12.2021)
7,667
819
2,527
-
213
173
387
3,500
15
159
-
-
14
14
38
208
-
-
-
¹ This balance includes the gains and losses of the period made on assets reported on the balance sheet at the reporting date, for the following amounts:
Gains/ losses for the period from level 3 assets held at the end of the period
(8)
Recognised in profit or loss
(43)
Recognised in other comprehensive income
35
361
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 10: RECLASSIFICATION OF FINANCIAL INSTRUMENTS
f
Financial liabilities measured at fair value according to Level 3
€ million
Total
Financial liabilities held for trading
Financial
liabilities
designated
at fair value
through
profit or
loss
Hedging
derivative
instruments
Securities
sold short
Securities
sold under
repurchase
agreements
Debt
securities
Due to credit
institutions
Due to
custom-
ers
Derivative
Instruments
Opening balance (01.01.2021)
7,647
-
737
-
-
-
1,158
5,752
-
Gains or losses during the period ¹
(320)
-
(286)
-
-
-
(90)
56
-
Recognised in profit or loss
(331)
-
(286)
-
-
-
(101)
56
-
Recognised in other
comprehensive income
11
-
-
-
-
-
11
-
-
Purchases
999
8
699
-
-
-
292
-
-
Sales
(184)
-
-
-
-
-
(5)
(179)
-
Issues
3,832
-
-
-
-
-
-
3,832
-
Settlements
(1,607)
-
(22)
-
-
-
(107)
(1,478)
-
Reclassifications
-
-
-
-
-
-
-
-
-
Changes associated with scope
during
the period
-
-
-
-
-
-
-
-
-
Transfers
(680)
12
(429)
-
-
-
76
(339)
-
Transfers to Level 3
385
12
-
-
-
-
102
271
-
Transfers from Level 3
(1,065)
-
(429)
-
-
-
(26)
(610)
-
CLOSING BALANCE
(31.12.2021)
9,687
20
699
-
-
-
1,324
7,644
-
¹ This balance includes the gains and losses of the period made on liabilities reported on the balance sheet at the closing date, for the following amounts:
Gains/ losses for the period from level 3 assets held at the end of the period
(320)
Recognised in profit or loss
(331)
Recognised in other comprehensive income
11
The gains and losses recognised in profit or loss linked to financial instruments held for trading and designated at fair value through
profit or loss and derivatives are recorded in “Net gains (losses) on financial instruments at fair value through profit or loss”; the gains
and losses recognised in profit or loss linked to financial assets at fair value through other comprehensive income are recorded in “Net
gains (losses) on financial instruments at fair value through other comprehensive income”.
11.3 Estimated impact of the inclusion of the margin at inception
€ million
31.12.2021
31.12.2020
Deferred margin at 1
st
January
138
66
Margin generated by new transactions during the period
124
61
Amortisation and cancelled / reimbursed / matured transactions
(83)
(63)
Effects of inputs or products reclassified as observable during the period
(5)
(6)
Other movements ¹
11
80
DEFERRED MARGIN AT THE END OF THE PERIOD
185
138
¹ The amount under Other changes resulted from the revision of the historical Day 1 calculation method covering the non-linear scope in financial year 2020.
A reserve is recognised on the balance sheet for the first-day margin for market transactions classified as fair value Level 3 and the
margin is recognised in profit or loss over time or when the non-observable inputs become observable again.
362
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 12: SCOPE OF CONSOLIDATION AT 31 DECEMBER 2021
NOTE 12: SCOPE OF CONSOLIDATION AT 31 DECEMBER 2021
12.1 Information on subsidiaries
12.1.1 RESTRICTIONS ON CONTROLLED ENTITIES
Regulatory, legal or contractual provisions may limit Crédit Agricole
CIB’s ability to freely access the assets of its subsidiaries and to
settle Crédit Agricole CIB’s liabilities.
Crédit Agricole CIB is subject to the following restrictions:
Regulatory constraints
Crédit Agricole CIB subsidiaries are subject to prudential
regulation and regulatory capital requirements in their host
countries. The minimum solvency ratio, leverage ratio and liquidity
ratio requirements limit the ability of these entities to pay dividends
or transfer assets to Crédit Agricole CIB.
Legal constraints
Crédit Agricole CIB subsidiaries are subject to the legal provisions
governing the distribution of capital and distributable profits.
These requirements limit their ability to distribute dividends. In
most cases, they are less restrictive than the regulatory limitations
mentioned above.
Other constraints
Certain Crédit Agricole CIB subsidiaries must submit proposed
dividend payouts to their regulatory authorities for prior approval.
12.1.2 SUPPORT FOR CONTROLLED STRUCTURED
ENTITIES
Crédit Agricole CIB has contractual agreements with certain
consolidated structured entities deemed equivalent to
commitments to provide financial support.
For its own funding needs and those of its customers, Crédit
Agricole CIB uses structured debt issuance vehicles to raise funds
on the financial markets. The securities issued by these entities
are fully underwritten by Crédit Agricole CIB. At 31 December
2021, the outstanding volume of these issues was €7.9 billion.
As part of its third-party securitisation business, Crédit Agricole
CIB provides short-term credit facilities to its ABCP conduits.
At 31 December 2021, these short-term credit facilities totalled
€39 billion.
363
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 12: SCOPE OF CONSOLIDATION AT 31 DECEMBER 2021
12.2 Composition of the consolidation scope
Consolidation scope -
Crédit Agricole CIB Group
(a)
Location
Registered
office if
different
from
location
Type of entity and nature
of control (b)
Consolidation
method at
31 December
2021
% control
% interest
31.12.2021 31.12.2020 31.12.2021 31.12.2020
Parent company and branches
Crédit Agricole CIB S.A.
-
France
-
Parent
company
100
100
100
100
Crédit Agricole CIB (Dubai)
-
United Arab
Emirates
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Dubai DIFC)
-
United Arab
Emirates
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Abu Dhabi)
-
United Arab
Emirates
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (South Korea)
-
South Korea
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Spain)
-
Spain
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (India)
-
India
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Japan)
-
Japan
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Singapore)
-
Singapore
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (United Kingdom)
-
United Kingdom
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Hong Kong)
-
Hong Kong
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (United States)
-
United States
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Taipei)
-
Taiwan
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Finland)
-
Finland
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Germany)
-
Germany
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Sweden)
-
Sweden
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Italy)
-
Italy
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Belgium)
-
Belgium
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Miami)
-
United States
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB (Canada)
Canada
France
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB QFC Branch
-
Qatar
France
Branch
full consolidation
100
100
100
100
Banking and financial institutions
Banco Crédit Agricole Brasil S.A.
-
Brazil
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB Algérie Bank Spa
S2
Algeria
-
Subsidiary
full consolidation
-
100
-
100
Crédit Agricole CIB Australia Ltd.
-
Australia
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB China Ltd.
-
China
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB China Ltd.
Chinese Branch
-
China
-
Branch
full consolidation
100
100
100
100
Crédit Agricole CIB Services Private Ltd.
-
India
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB AO
-
Russia
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Wealth (Europe)
-
Luxembourg
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Wealth (Europe - Spain)
-
Spain
Luxembourg
Branch
full consolidation
100
100
100
100
CA Indosuez Wealth (Europe -
Belgium)
-
Belgium
Luxembourg
Branch
full consolidation
100
100
100
100
CA Indosuez (Suisse) S.A.
-
Switzerland
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez (Suisse) S.A. (Hong
Kong)
-
Hong Kong
Switzerland
Branch
full consolidation
100
100
100
100
CA Indosuez (Suisse) S.A. (Singapore)
-
Singapore
Switzerland
Branch
full consolidation
100
100
100
100
CA Indosuez (Suisse) S.A. Switzerland
Branch
-
Switzerland
-
Branch
full consolidation
100
100
100
100
CFM Indosuez Wealth
-
Monaco
-
Subsidiary
full consolidation
70
70
69
69
CA Indosuez Finanziaria S.A.
-
Switzerland
-
Subsidiary
full consolidation
100
100
100
100
UBAF
-
France
-
Joint venture
equity method
47
47
47
47
UBAF (Japan)
-
Japan
France
Joint venture
equity method
47
47
47
47
UBAF (South Korea)
-
South Korea
France
Joint venture
equity method
47
47
47
47
UBAF (Singapore)
-
Singapore
France
Joint venture
equity method
47
47
47
47
CA Indosuez
D1
France
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Gestion
-
France
-
Subsidiary
full consolidation
100
100
100
100
Ester Finance Technologies
-
France
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Wealth Italy S.P.A.
S1
Italy
-
Subsidiary
full consolidation
-
100
-
100
CA Indosuez Wealth (Europe) Italy
Branch
E2
Italy
Luxembourg
Branch
full consolidation
100
-
100
-
CACIB Arabia Financial Company
E2
Saudi Arabia
-
Subsidiary
full consolidation
100
-
100
-
364
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 12: SCOPE OF CONSOLIDATION AT 31 DECEMBER 2021
Consolidation scope -
Crédit Agricole CIB Group
(a)
Location
Registered
office if
different
from
location
Type of entity and nature
of control (b)
Consolidation
method at
31 December
2021
% control
% interest
31.12.2021 31.12.2020 31.12.2021 31.12.2020
Brokerage firms
Crédit Agricole Securities (USA) Inc
-
United States
-
Subsidiary
full consolidation
100
100
100
100
Credit Agricole Securities (Asia) Ltd
-
Hong Kong
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole Securities Asia Limited
Seoul Branch (CASAL Seoul Branch)
-
South Korea
-
Branch
full consolidation
100
100
100
100
Crédit Agricole Securities Asia BV
(Tokyo)
-
Japan
Netherlands
Branch
full consolidation
100
100
100
100
Investment companies
CA Indosuez Wealth (Brazil) S.A.
DTVM
D4
Brazil
-
Subsidiary
full consolidation
100
100
100
100
Compagnie Française de l'Asia (CFA)
-
France
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB Air Finance S.A.
-
France
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole Securities Asia BV
-
Netherlands
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole Global Partners Inc.
-
United States
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB Holdings Ltd.
-
United Kingdom
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Wealth (Group)
S4
France
-
Subsidiary
full consolidation
-
100
-
100
Doumer Finance S.A.S.
-
France
-
Subsidiary
full consolidation
100
100
100
100
Fininvest
-
France
-
Subsidiary
full consolidation
98
98
98
98
Fletirec
-
France
-
Subsidiary
full consolidation
100
100
100
100
CFM Indosuez Conseil en
Investissement
-
France
-
Subsidiary
full consolidation
70
70
69
69
CFM Indosuez Gestion
-
Monaco
-
Subsidiary
full consolidation
70
70
68
68
CFM Indosuez Conseil en
Investissement, Noumea Branch
-
New Caledonia
France
Branch
full consolidation
70
70
69
69
Insurance
CAIRS Assurance S.A.
-
France
-
Subsidiary
full consolidation
100
100
100
100
Miscellaneous
CLIFAP
-
France
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole Asia Shipfinance Ltd.
-
Hong Kong
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB Finance
(Guernsey) Ltd.
-
Guernsey
-
Controlled structured entity
full consolidation
100
100
100
100
Crédit Agricole CIB Financial Solutions
-
France
-
Controlled structured entity
full consolidation
100
100
100
100
Crédit Agricole CIB Global Banking
-
France
-
Subsidiary
full consolidation
100
100
100
100
MERISMA
S5
France
-
Controlled structured entity
full consolidation
-
100
-
100
Benelpart
-
Belgium
-
Subsidiary
full consolidation
100
100
97
97
Financière des Scarabées
-
Belgium
-
Subsidiary
full consolidation
100
100
99
99
Lafina
-
Belgium
-
Subsidiary
full consolidation
100
100
98
98
SNGI Belgium
-
Belgium
-
Subsidiary
full consolidation
100
100
100
100
TCB
-
France
-
Subsidiary
full consolidation
99
99
97
97
Molinier Finances
-
France
-
Subsidiary
full consolidation
100
100
97
97
SNGI
-
France
-
Subsidiary
full consolidation
100
100
100
100
Sofipac
-
Belgium
-
Subsidiary
full consolidation
99
99
96
96
Crédit Agricole Leasing (USA) Corp.
-
United States
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole America Services Inc.
-
United States
-
Subsidiary
full consolidation
100
100
100
100
CA Indosuez Wealth (Asset
Management)
-
Luxembourg
-
Subsidiary
full consolidation
100
100
100
100
Atlantic Asset Securitization LLC
-
United States
-
Controlled structured entity
full consolidation
100
100
-
-
LMA SA
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
FIC-FIDC
-
Brazil
-
Controlled structured entity
full consolidation
100
100
100
100
Héphaïstos Multidevises FCT
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Eucalyptus FCT
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Pacific USD FCT
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Shark FCC
S1
France
-
Controlled structured entity
full consolidation
-
100
-
-
Pacific EUR FCC
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Pacific IT FCT
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Triple P FCC
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
ESNI (Crédit Agricole CIB sub-fund)
-
France
-
Controlled structured entity
full consolidation
100
100
100
100
CACIB Pension Limited Partnership
-
United Kingdom
-
Controlled structured entity
full consolidation
100
100
100
100
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -
NOTE 12: SCOPE OF CONSOLIDATION AT 31 DECEMBER 2021
Consolidation scope -
Crédit Agricole CIB Group
(a)
Location
Registered
office if
different
from
location
Type of entity and nature
of control (b)
Consolidation
method at
31 December
2021
% control
% interest
31.12.2021 31.12.2020 31.12.2021 31.12.2020
ItalAsset Finance SRL
-
Italy
-
Controlled structured entity
full consolidation
100
100
100
100
Financière Lumis
-
France
-
Subsidiary
full consolidation
100
100
100
100
Lafayette Asset Securitization LLC
-
United States
-
Controlled structured entity
full consolidation
100
100
-
-
Fundo A De Investimento
Multimercado
-
Brazil
-
Controlled structured entity
full consolidation
100
100
100
100
Tsubaki ON
S1
France
-
Controlled structured entity
full consolidation
-
100
-
-
Tsubaki OFF
S1
France
-
Controlled structured entity
full consolidation
-
100
-
-
Azqore
-
Switzerland
-
Subsidiary
full consolidation
80
80
80
80
Azqore Singapore Branch SA
-
Singapore
Switzerland
Branch
full consolidation
80
80
80
80
Crédit Agricole CIB Transactions
-
France
-
Subsidiary
full consolidation
100
100
100
100
FCT La Route Avance
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
Sufinair B.V.
-
Netherlands
-
Subsidiary
full consolidation
100
100
100
100
Sinefinair B.V.
-
Netherlands
-
Subsidiary
full consolidation
100
100
100
100
Crédit Agricole CIB Finance
Luxembourg S.A.
-
Luxembourg
-
Subsidiary
full consolidation
100
100
100
100
FCT CFN DIH
-
France
-
Controlled structured entity
full consolidation
100
100
-
-
FIXED INCOME DERIVATIVES -
STRUCTURED FUND PLC
-
Ireland
-
Controlled structured entity
full consolidation
100
100
100
100
(a) Change in scope
Inclusion (E) in the scope
E1: Threshold exceeded
E2: Creation
E3: Acquisition (including controlling interests)
Removal (S) from the scope:
S1: Discontinuation of operations (including dissolution or liquidation)
S2: Company sold to a non-Group company or deconsolidation following a loss
of control
S3: Entity deconsolidated due to non-materiality
S4: Merger or takeover
S5: Transfer of all assets and liabilities
Other (D):
D1: Change of company name
D2: Change of consolidation method
D3: Entity newly included in the Note on the scope of consolidation
D4: Entity classified under Non-current assets held for sale and discontinued
operations
D5: Inclusion in scope of consolidation in accordance with IFRS 10
D6: Change in consolidation method in accordance with IFRS 11
(b) Type of entity and nature of control
F: Subsidiary
S: Branch
ESC: Controlled structured entity
Co-E: Joint venture
Co-ES: Structured joint venture
OC: Joint operation
EA: Affiliate
EAS: Structured affiliate
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13: NON-CONSOLIDATED INVESTMENTS AND STRUCTURED
ENTITIES
13.1 Non-consolidated investments
These securities, measured at fair value through profit or loss or
at fair value through other comprehensive income that will not
subsequently be reclassified to profit or loss, are variable-income
securities representing a significant portion of the capital of the
issuing companies and which the company has the intention of
holding over the long term.
This item amounted to €307 million at 31 December 2021 versus
€232 million at 31 December 2020.
In
accordance
with
the
option
offered
by
ANC
Recommendation 2016-01, the complete list of non-consolidated
controlled entities and significant non-consolidated equity
investments can be consulted on the Crédit Agricole CIB website
at: https://www.ca-cib.com/about-us/financial-information/
regulated-information
13.2 Information on non-consolidated
structured entities
In accordance with IFRS 12, a controlled structured entity is an
entity designed in such a way that the voting rights or similar
rights are not the factor determining who controls the entity;
this is notably the case when the voting rights only relate to
administrative tasks and the relevant activities are managed
through contractual agreements.
INFORMATION ON THE NATURE AND EXTENT
OF INTERESTS HELD
At 31 December 2021, Crédit Agricole CIB and its subsidiaries
held interests in certain non-consolidated structured entities,
the main characteristics of which are presented below by type
of activity.
Securitisation
Crédit Agricole CIB’s role is to structure securitisation vehicles
by purchasing trade or financial receivables. The vehicles
finance these purchases by issuing multiple tranches of debt
and equity securities, the repayment of which is associated with
the performance of the assets comprising the vehicles.
Crédit Agricole CIB invests in and provides short-term credit
facilities to the securitisation vehicles it has sponsored on behalf
of clients.
Structured Finance
Crédit Agricole CIB operates through entities dedicated to the
acquisition of assets. These entities may take the form of asset
finance companies or leasing companies. In structured entities,
financing is secured by the asset. The Group’s involvement is
often limited to financing or loan commitments.
Sponsored entities
Crédit Agricole CIB sponsors a structured entity in the following
cases:
y
Crédit Agricole CIB is involved in the creation of the entity
and this involvement, against remuneration, is deemed to be
substantial to ensuring the successful completion of operations;
y
A structuring arrangement took place at the request of Crédit
Agricole CIB and it is the main user;
y
Crédit Agricole CIB sold its own assets to the structured entity;
y
Crédit Agricole CIB is the portfolio manager;
y
The name of a subsidiary or parent company of Crédit Agricole
CIB is associated with the name of the structured entity or the
financial instruments issued by the entity.
Crédit Agricole CIB sponsored its non-consolidated structured
entities in which it held no interests at 31 December 2021.
INFORMATION ON RISKS ASSOCIATED WITH
INTERESTS HELD
Financial support for structured entities
In 2021, Crédit Agricole CIB did not provide financial support to
non-consolidated structured entities.
As of 31 December 2021, Crédit Agricole CIB does not intend to
provide financial support to a non-consolidated structured entity.
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interests held in non-consolidated structured entities by type of business
The involvement of Crédit Agricole CIB in non-consolidated structured entities at 31 December 2021 and at 31 December 2020 is
presented in the tables below for all categories of sponsored structured entities:
€ million
31.12.2021
Securitisation vehicules
Investments funds
1
Structured finance
1
Maximum loss
Maximum loss
Maximum loss
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Financial assets at fair
value through profit
or loss
5
5
-
5
-
-
-
-
5
5
-
5
Financial assets at
fair value through
other comprehensive
income
-
-
-
-
-
-
-
-
-
-
-
-
Financial assets at
amortised cost
494
494
-
494
254
254
-
254
1,949
1,949
-
1,949
Total Assets
recognised relating
to non-consolidated
structured entities
499
499
-
499
254
254
-
254
1,954
1,954
-
1,954
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
Financial liabilities
at fair value through
profit or loss
3
3
-
3
-
-
-
-
-
-
-
-
Liabilities
63
-
-
-
-
-
-
-
374
-
-
-
Total Liabilities
recognised relating
to non-consolidated
structured entities
66
3
-
3
-
-
-
-
374
-
-
-
Commitments given
-
6
-
6
-
-
-
-
-
856
-
856
Financing
commitments
-
6
-
6
-
-
-
-
-
812
-
812
Guarantee
commitments
-
-
-
-
-
-
-
-
-
44
-
44
Other
-
-
-
-
-
-
-
-
-
-
-
-
Provisions for
execution risks -
commitments given
-
-
-
-
-
-
-
-
-
-
-
-
Total Commitments
(net of provision) to
non-consolidated
structured entities
-
6
-
6
-
-
-
-
-
856
-
856
Total Balance
sheet relating to
non-consolidated
structured entities
433
-
-
-
254
-
-
-
1,580
-
-
-
¹ Non-sponsored structured entities generate no specific risk related to the nature of the entity. Information on these exposures is provided in Note 3.1 “Credit risk” and in Note 3.2
“Market risk”. These are investment funds in which the Group is not a manager, and structured financing entities in which the Group has only granted a loan.
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
€ million
31.12.2020
Securitisation vehicules
Investments funds
1
Structured finance
1
Maximum loss
Maximum loss
Maximum loss
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Carrying
amount
Maximum
exposure
to losses
Guar-
antees
received
and other
credit
enhance-
ments
Net
exposure
Financial assets at fair
value through profit
or loss
6
6
-
6
44
44
-
44
17
17
-
17
Financial assets at
fair value through
other comprehensive
income
-
-
-
-
-
-
-
-
-
-
-
-
Financial assets at
amortised cost
-
-
-
-
-
-
-
-
2,007
2,007
-
2,007
Total Assets
recognised relating
to non-consolidated
structured entities
6
6
-
6
44
44
-
44
2,024
2,024
-
2,024
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
Financial liabilities
at fair value through
profit or loss
20
1
-
1
33
2
-
2
-
-
-
-
Liabilities
11
-
-
-
-
-
-
-
416
-
-
-
Total Liabilities
recognised relating
to non-consolidated
structured entities
31
1
-
1
33
2
-
2
416
-
-
-
Commitments given
-
75
-
75
-
277
-
277
-
1,044
-
1,044
Financing
commitments
-
18
-
18
-
-
-
-
-
974
-
974
Guarantee
commitments
-
-
-
-
-
-
-
-
-
70
-
70
Other
-
57
-
57
-
277
-
277
-
-
-
-
Provisions for
execution risks -
commitments given
-
-
-
-
-
-
-
-
-
-
-
-
Total Commitments
(net of provision) to
non-consolidated
structured entities
-
75
-
75
-
277
-
277
-
1,044
-
1,044
Total Balance
sheet relating to
non-consolidated
structured entities
25
-
-
-
11
-
-
-
1,461
-
-
-
¹ Non-sponsored structured entities generate no specific risk related to the nature of the entity. Information on these exposures is provided in Note 3.1 “Credit risk” and in Note 3.2
“Market risk”. These are investment funds in which the Group is not a manager, and structured financing entities in which the Group has only granted a loan.
MAXIMUM EXPOSURE TO CREDIT RISK
The maximum exposure to loss risk on financial instruments corresponds to the value recognised on the balance sheet, with the exception
of put options and CDS (credit default swaps) for which the exposure corresponds to assets for the notional amount and to liabilities
for the notional amount less the mark-to-market. The maximum exposure to the risk of loss of commitments given corresponds to the
notional amount and the provision for commitments given at the amount recognised in the balance sheet.
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Chapter 6 – Consolidated financial statements at 31 December 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14: EVENTS SUBSEQUENT TO 31 DECEMBER 2021
No significant events have occurred since the end of the reporting period.
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
4.
STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS
(FOR THE YEAR ENDED 31 DECEMBER 2021)
PricewaterhouseCoopers Audit
63, rue de Villiers - 92208 Neuilly-sur-Seine Cedex
S.A.S. au capital de € 2 510 460
348 058 165 R.C.S. Nanterre
Statutory Auditors
Member of the
compagnie régionale de Versailles
ERNST & YOUNG ET AUTRES
Tour First - TSA 14444 - 92037 Paris-La Défense cedex
S.A.S. à capital variable
438 476 913 R.C.S. Nanterre
Statutory Auditors
Member of the
compagnie régionale de Versailles
This is a translation into English of the statutory auditors’ report on the consolidated financial statements of the Company issued in
French and it is provided solely for the convenience of English-speaking users.
This statutory auditors’ report includes information required by European regulations and French law, such as information about the
appointment of the statutory auditors or verification of the information concerning the Group presented in the management report and
other documents provided to shareholders.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards
applicable in France.
Statutory auditors’ report on the consolidated financial statements
To the General Meeting of Shareholders of Crédit Agricole Corporate and Investment Bank,
4.1 OPINION
In compliance with the engagement entrusted to us by your General Meeting of Shareholders, we have audited the accompanying
consolidated financial statements of Crédit Agricole Corporate and Investment Bank for the year ended 31 December 2021.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of
the Group as at 31 December 2021 and of the results of its operations for the year then ended in accordance with International Financial
Reporting Standards as adopted by the European Union.
The audit opinion expressed above is consistent with our report to the Audit Committee.
4.2 BASIS FOR OPINION
AUDIT FRAMEWORK
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the Audit of the Consolidated
Financial Statements section of our report.
INDEPENDENCE
We conducted our audit engagement in compliance with the independence requirements of the French Commercial Code (Code de
commerce) and the French Code of Ethics for Statutory Auditors
(Code de déontologie de la profession de commissaire aux comptes)
for the period from 1 January 2021 to the date of our report and specifically we did not provide any prohibited non-audit services referred
to in Article 5(1) of Regulation (EU) No. 537/2014.
4.3 JUSTIFICATION OF ASSESSMENTS – KEY AUDIT MATTERS
Due to the global crisis related to the COVID-19 pandemic, the financial statements for this period have been prepared and audited
under special circumstances. Indeed, this crisis and the exceptional measures taken in the context of the health emergency have had
numerous consequences for companies, particularly on their operations and their financing, and have led to greater uncertainties
regarding their future prospects. Some of these measures, such as travel restrictions and remote working, have also had an impact on
companies’ internal organization and on the performance of audits.
It is in this complex, evolving context that, in accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial
Code
(Code de commerce)
relating to the justification of our assessments, we inform you of the key audit matters relating to risks of
material misstatement that, in our professional judgment, were of most significance in our audit of the consolidated financial statements
of the current period, as well as how we addressed those risks.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion
thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements.
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
RISK IN RELATION TO THE MEASUREMENT OF PROVISIONS FOR REGULATORY
AND TAX DISPUTES
Risk identified
Crédit Agricole Corporate and Investment Bank is undergoing
legal proceedings and a number of investigations and requests for
regulatory information from different regulators. These concern in
particular the cases relating to Euribor/Libor and SSA Bonds with
the authorities of various countries (USA, UK) and the European
Union.
A number of tax investigations are also ongoing in France and in
certain other countries where the Group operates.
Deciding whether to recognize a provision and the amount of that
provision requires the use of judgement, given that it is difficult
to assess the outcome of disputes or the uncertainties related
to certain tax treatments.
Given the degree of judgement required, the measurement of
provisions for regulatory and tax disputes constitutes a significant
risk of material misstatement in the consolidated financial
statements, and we therefore deemed such measurement to be
a key audit matter.
The various ongoing legal or arbitration proceedings,
investigations and requests for information (Euribor/
Libor, SSA Bonds and other indices), as well as tax
proceedings, are presented in Notes 6.15 and 6.10,
respectively, to the consolidated financial statements.
Our response
We gained an understanding of the procedure implemented
by management for measuring the risks resulting from these
disputes and tax uncertainties and, where applicable, the
associated provisions, notably through quarterly exchanges with
management and, in particular, the Legal, Compliance and Tax
departments of your Group and its main subsidiaries.
Our work consisted primarily in:
y
examining the assumptions used to determine provisions based
on available information (documentation prepared by the Legal
Department or legal counsel of your Group and its entities,
correspondence from regulators and minutes of Legal Risks
Committee meetings);
y
gaining an understanding of the analyses or findings of your
Group’s legal counsels and their responses to our requests
for confirmation;
y
as regards tax risks in particular, examining, with guidance
from our specialists, your Group’s responses submitted to
the relevant authorities, as well as the risk estimates carried
out by the Group;
y
assessing, accordingly, the level of provisioning at 31 December
2021.
Lastly, we examined the related disclosures provided in the notes
to the consolidated financial statements.
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STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
CREDIT RISK AND ESTIMATE OF EXPECTED CREDIT LOSSES ON PERFORMING,
UNDERPERFORMING AND NON-PERFORMING LOANS
Risk identified
As part of its corporate and investment banking operations, your
Group originates and structures financing for large corporate
clients in France and abroad.
In accordance with IFRS 9, these loans are subject to value
adjustments in respect of expected credit losses (ECL) on loans
that are performing (Bucket 1), underperforming (Bucket 2) or
non-performing (Bucket 3).
Given the significant judgement required in determining such value
adjustments, we deemed the estimation of provisions for and
impairment of performing and underperforming loans in the energy
and transport sectors (Buckets 1 and 2) and nonperforming loans
(Bucket 3) to be a key audit matter due to:
y
an uncertain economic environment resulting in particular from
the crisis related to the COVID-19 pandemic;
y
the complexity of identifying exposures where there is a risk
of non recovery; and
y
the degree of judgement needed to estimate recovery flows.
At 31 December 2021, ECL value adjustments on all
eligible loans amounted to €3.5 billion (€3.0 billion
recognized under assets) including:
€1,127m of value adjustments pertaining to
performing and underperforming assets (€346m
in Bucket 1 and €781m in Bucket 2);
€2,361m of value adjustments pertaining to non-
performing loans (Bucket 3).
See Notes 3.1, 4.9 and 6.5 to the consolidated financial
statements.
Our response
We examined the procedures implemented by the Risk
Management department to categorize outstanding loans (Bucket
1, 2 or 3) and measure the amount of recorded value adjustments,
in order to assess whether the estimates used were based on
IFRS 9-compliant methods appropriately documented and
described in the notes to the consolidated financial statements.
We assessed, in particular, how the crisis linked to the COVID-19
pandemic, the macro-economic projections used to calculate
value adjustments and the related financial information were
taken into account.
We tested the key controls implemented by your Group for
the annual portfolio reviews, the updating of credit ratings, the
identification of sectors weakened by the crisis related to the
COVID-19 pandemic, underperforming or non-performing loans
and the measurement of value adjustments. We also familiarized
ourselves with the main findings of your Group’s specialized
committees in charge of monitoring underperforming and non-
performing loans.
Regarding value adjustments for expected losses in Buckets 1
and 2, we:
y
asked specialists to assess the methods and measurements
for the various ECL inputs and calculation models;
y
assessed the analyses carried out by management on sectors
with a deteriorated outlook and having been seriously impacted
by the crisis related to the COVID-19 pandemic;
y
examined the methodology used by Risk Management to
identify significant increases in credit risk (SICR);
y
tested the controls that we deemed to be of key importance
in relation to the transfer of the data used to calculate ECL or
the reconciliations between the bases used to calculate ECL
and the accounting data;
y
carried out independent value adjustment calculations for
expected losses, compared the calculated amount with the
recognized amount and examined the adjustments made by
management where applicable.
Regarding individually calculated value adjustments in Bucket 3,
we:
y
examined the estimates used for impaired significant
counterparties;
y
based on a sample of impaired or non-impaired credit files,
examined the factors underlying the main assumptions used to
assess the expected recovery flows, in particular with regard
to valuing collateral.
Lastly, we examined the disclosures in relation to credit risk
hedging provided in the notes to the consolidated financial
statements.
373
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
RISK IN RELATION TO THE MEASUREMENT OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
MEASURED AT FAIR VALUE
Risk identified
As part of its capital markets activities, your Group originates,
structures, sells and trades derivative financial instruments,
for corporate clients, financial institutions and major issuers.
Moreover, the issue of debt instruments, some of which are
hybrid, to your Group’s international and domestic customers
contributes to the management of your Group’s medium- and
long-term refinancing.
y
Derivative financial instruments held for trading purposes are
measured at fair value through profit or loss on the balance
sheet.
y
Hybrid issues are recognized in financial liabilities according
to the “fair value through profit or loss” option.
Financial instruments whose measurement requires the use of
significant unobservable market inputs are classified in level 3.
We deemed the measurement of certain of these instruments to
be a key audit matter when they require significant judgement on
the part of management, in particular as regards:
y
the mapping of the observability of valuation inputs;
y
the use of internal and non-standard valuation models;
y
the valuation of inputs unsubstantiated by observable market
data;
y
the estimate of valuation adjustments designed to reflect uncer-
tainties related to the models, the inputs used and counterparty
and liquidity risks.
Derivative instruments are recorded in the balance
sheet under financial assets and liabilities at fair
value through profit or loss. As at 31 December 2021,
derivative instruments categorized as level 3 amounted
to €3.5 billion in assets and €1.3 billion in liabilities.
Hybrid issues are recognized in financial liabilities
according to the “fair value through profit or loss”
option. As at 31 December 2021, they represented
€7.6 billion in liabilities.
See Notes 3.2, 6.2 and 11.2 to the consolidated
financial statements.
Our response
We gained an understanding of the processes and controls put in
place by your Group to identify, measure and recognize derivative
financial instruments and hybrid issues classified in level 3.
We examined the key controls, particularly those performed
by the Risk Management department, such as the review of
the observability mapping, the independent verification of
measurement inputs and the internal approval of valuation
models. We also examined the system governing the recognition
of valuation adjustments and the accounting categorisation of
financial products.
With the support of our specialists in the valuation of financial
instruments, we carried out independent valuations, analysed
those performed by your Group and examined the assumptions,
inputs, methodologies and models used. In particular, we
examined the documentation concerning changes over the year
in the observability mapping.
We also assessed the main valuation adjustments recognized,
as well as the justification provided by management for the main
differences in measurement vis à vis counterparties observed in
the margin calls process and gains or losses in the event of the
unwinding of financial instruments.
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
RISK IN RELATION TO MEASUREMENT OF GOODWILL
Risk identified
Goodwill is tested for impairment whenever there are objective
indications of impairment and otherwise at least once a year.
These tests are based on a comparison between the carrying
amount of each Cash Generating Unit (CGU) and its recoverable
amount, defined as the higher of fair value less costs to sell
and value in use. Value in use is determined by discounting the
estimated future cash flows of the CGU, as set out in the financial
forecasts validated by the governance bodies and extended
until 2025.
The rate of capital allocation is determined by taking into account
any specific requirements set by the regulator (in particular for
Pillar 2).
By their very nature, these impairment tests require the exercise of
judgement to make decisions concerning the key assumptions to
use, in particular for determining economic scenarios in a context
marked by the end of the crisis linked to the COVID-19 pandemic,
financial forecasts and discount rates.
Given the trend in the difference between the value in use and
the carrying amount, and the sensitivity of impairment tests to the
assumptions used by management, we paid particular attention
to the tests performed on the Corporate and Investment Banking
CGU and the Wealth Management CGU.
The impairment tests performed at 31 December 2021
did not lead to the recognition of any impairment losses
on goodwill. Sensitivity tests are set out in Note 6.14
to the consolidated financial statements.
Our response
We gained an understanding of the procedures implemented by
your Group to identify objective indications of impairment and to
assess the need to recognize impairment losses against goodwill.
We included valuation specialists in the audit team to examine
the assumptions used to determine the discount rates and the
perpetual growth rates used, as well as the models used for
calculating discounted cash flows.
We tested the calculations and the main assumptions (rate of
capital allocation, discount rate, perpetual growth rate, etc.)
compared with external sources.
We examined the financial forecasts prepared by management
and used in the model to:
y
verify their consistency with those presented to your Board of
Directors and ensure that any restatements made were justified;
y
assess the main underlying assumptions, including in relation
to the extension of forecasts beyond the period presented to
your Group’s Board of Directors, in view of financial forecasts
made versus actual performance in prior periods;
y
conduct sensitivity tests on some of the assumptions (level of
capital allocated, discount rate, cost of risk, cost/income ratio).
We also examined the disclosures provided in the notes to
the consolidated financial statements on the results of these
impairment tests and the level of sensitivity to the various
measurement inputs.
375
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
4.4 SPECIFIC VERIFICATIONS
We have also performed, in accordance with professional
standards applicable in France, the specific verifications required
by laws and regulations of the information given in the Board of
Directors’ Group management report.
We have no matters to report as to its fair presentation and its
consistency with the consolidated financial statements.
4.5 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
FORMAT OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS INTENDED TO BE
INCLUDED IN THE ANNUAL FINANCIAL REPORT
We have also verified, in accordance with the professional standard
applicable in France relating to the procedures performed by
statutory auditors regarding the annual and consolidated financial
statements prepared in the European single electronic format, that
the preparation of the consolidated financial statements intended
to be included in the annual financial report mentioned in Article
L. 451-1-2, I of the French Monetary and Financial Code (Code
monétaire et financier), prepared under the CEO’s responsibility,
complies with the single electronic format defined in Commission
Delegated Regulation (EU) No. 2019/815 of 17 December 2018.
Regarding consolidated financial statements, our work includes
verifying that the tagging thereof complies with the format defined
in the above-mentioned regulation.
On the basis of our work, we conclude that the preparation of
the consolidated financial statements intended to be included in
the annual financial report complies, in all material respects, with
the European single electronic format.
We have no responsibility to verify that the consolidated financial
statements that will ultimately be included by your Company in the
annual financial report filed with the AMF (Autorité des marchés
financiers) agree with those on which we have performed our
work.
APPOINTMENT OF THE STATUTORY AUDITORS
We were appointed as statutory auditors of Crédit Agricole
Corporate and Investment Bank by the general meeting of
shareholders held on 30 April 2004 for PricewaterhouseCoopers
and on 20 May 1997 for ERNST & YOUNG et Autres.
As at 31 December 2021, PricewaterhouseCoopers Audit was in
its eighteenth year and ERNST & YOUNG et Autres in its twenty-
fifth year of total uninterrupted engagement.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the preparation and fair
presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards as
adopted by the European Union and for such internal control as
management determines is necessary to enable the preparation
of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management
is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
it is expected to liquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial
reporting process and the effectiveness of internal control and
risk management systems and where applicable, its internal audit,
regarding the accounting and financial reporting procedures.
The consolidated financial statements were approved by the
Board of Directors.
STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL
STATEMENTS
Objectives and Audit Approach
Our role is to issue a report on the consolidated financial
statements. Our objective is to obtain reasonable assurance about
whether the consolidated financial statements as a whole are free
from material misstatement. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted
in accordance with professional standards will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users made on the basis of these
consolidated financial statements.
As specified in Article L. 823-10-1 of the French Commercial
Code (Code de commerce), our statutory audit does not include
assurance on the viability of the Company or the quality of
management of the affairs of the Company.
As part of an audit conducted in accordance with professional
standards applicable in France, the statutory auditor exercises
professional judgment throughout the audit and furthermore:
y
Identifies and assesses the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error,
designs and performs audit procedures responsive to those
risks, and obtains audit evidence considered to be sufficient
and appropriate to provide a basis for his opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
y
Obtains an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the internal control.
376
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
y
Evaluates the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management in the consolidated financial
statements.
y
Assesses the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. This
assessment is based on the audit evidence obtained up to the
date of his audit report. However, future events or conditions
may cause the Company to cease to continue as a going
concern. If the statutory auditor concludes that a material
uncertainty exists, there is a requirement to draw attention in
the audit report to the related disclosures in the consolidated
financial statements or, if such disclosures are not provided or
inadequate, to modify the opinion expressed therein.
y
Evaluates the overall presentation of the consolidated financial
statements and assesses whether these statements repre-
sent the underlying transactions and events in a manner that
achieves fair presentation.
y
Obtains sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial
statements. The statutory auditor is responsible for the direction,
supervision and performance of the audit of the consolidated
financial statements and for the opinion expressed on these
consolidated financial statements.
Report to the Audit Committee
We submit to the Audit Committee a report which includes in
particular a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also
report significant deficiencies, if any, in internal control regarding
the accounting and financial reporting procedures that we have
identified.
Our report to the Audit Committee includes the risks of material
misstatement that, in our professional judgment, were of most
significance in the audit of the consolidated financial statements
of the current period and which are therefore the key audit matters
that we are required to describe in this report.
We also provide the Audit Committee with the declaration
provided for in Article 6 of Regulation (EU) No. 537/2014,
confirming our independence within the meaning of the rules
applicable in France as set out in particular in Articles L. 822-10 to
L. 822-14 of the French Commercial Code (Code de commerce)
and in the French Code of Ethics for Statutory Auditors (Code
de déontologie de la profession de commissaire aux comptes).
Where appropriate, we discuss with the Audit Committee the risks
that may reasonably be thought to bear on our independence,
and the related safeguards.
Neuilly-sur-Seine and Paris-La Défense, 22 March 2022
The Statutory Auditors French original signed by:
PricewaterhouseCoopers Audit
ERNST & YOUNG et Autres
Agnès Hussherr-Harel
Laurent Tavernier
Matthieu Préchoux
Olivier Durand
377
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Chapter 6 – Consolidated financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2021)
378
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
PARENT-COMPANY FINANCIAL
STATEMENTS
AT 31 DECEMBER 2021
Approved by the Board of Directors on February 8
th
2022 and submitted
for approval by the Ordinary General Meeting of 3
rd
May 2022.
1.
CRÉDIT AGRICOLE CIB (S.A.)
FINANCIAL STATEMENTS
.................................
382
1.1. ASSETS
.................................................................................
382
1.2. LIABILITIES
.........................................................................
382
1.3. OFF-BALANCE SHEET
......................................................
383
1.4. INCOME STATEMENT
.........................................................
383
1.5. MAJOR EVENTS DURING THE PERIOD 2021
................
384
2.
NOTES TO THE PARENT-COMPANY FINANCIAL
STATEMENTS
..................................................
385
NOTE 1: ACCOUNTING POLICIES AND PRINCIPLES
...........
385
NOTE 2: LOANS AND RECEIVABLES DUE FROM CREDIT
INSTITUTIONS - ANALYSIS BY RESIDUAL
MATURITY
.................................................................
394
NOTE 3:
LOANS AND RECEIVABLES DUE
FROM CUSTOMERS
...................................................
394
NOTE 4:
TRADING, SHORT-TERM INVESTMENT, LONG-TERM
INVESTMENT AND MEDIUM-TERM PORTFOLIO
SECURITIES
................................................................
396
NOTE 5: EQUITY INVESTMENTS AND SUBSIDIARIES
........
398
NOTE 6: MOVEMENTS IN FIXED ASSETS
............................
400
NOTE 7:
ACCRUALS, PREPAYMENTS AND SUNDRY
ASSETS
.......................................................................
401
NOTE 8:
IMPAIRMENT LOSSES DEDUCTED FROM
ASSETS
.......................................................................
401
NOTE 9:
DUE TO CREDIT INSTITUTIONS - ANALYSIS BY
RESIDUAL MATURITY
...............................................
401
NOTE 10: DUE TO CUSTOMERS
..............................................
402
NOTE 11: DEBT SECURITIES
...................................................
403
NOTE 12:
ACCRUALS, DEFERRED INCOME AND
SUNDRY LIABILITIE
.................................................
403
NOTE 13: PROVISIONS
...........................................................
404
NOTE 14:
SUBORDINATED DEBT - ANALYSIS BY RESIDUAL
MATURITY (IN CURRENCY OF ISSUE)
.................
407
NOTE 15:
CHANGES IN EQUITY (BEFORE
APPROPRIATION)
....................................................
407
NOTE 16:
ANALYSIS OF THE BALANCE SHEET BY
CURRENCY
.............................................................
408
NOTE 17:
TRANSACTIONS WITH SUBSIDIARIES, AFFILIATES
AND EQUITY INVESTMENTS
...............................
408
NOTE 18:
NON-SETTLED FOREIGN EXCHANGE
TRANSACTIONS AND AMOUNTS PAYABLE IN
FOREIGN CURRENCIES
.........................................
408
NOTE 19:
TRANSACTIONS ON FORWARD FINANCIAL
INSTRUMENTS
.........................................................
409
NOTE 20: DEBT SECURITIES CLEARING
...............................
411
NOTE 21: NET INTEREST AND SIMILAR INCOME
.................
411
NOTE 22: INCOME FROM SECURITIES
...................................
412
NOTE 23: NET COMMISSION AND FEE INCOME
..................
412
NOTE 24:
GAINS (LOSSES) ON TRADING BOOKS
...............
412
NOTE 25:
GAINS (LOSSES) ON SHORT-TERM INVESTMENT
PORTFOLIOS AND SIMILAR
...................................
413
NOTE 26: OPERATING EXPENSES
..........................................
413
NOTE 27: COST OF RISK
.........................................................
414
NOTE 28: NET GAIN (LOSSES) ON FIXED ASSETS
.............
414
NOTE 29: INCOME TAX CHARGE
............................................
415
NOTE 30:
OPERATIONS IN NON-COOPERATIVE STATES
OR TERRITORIES
.....................................................
415
3.
STATUTORY AUDITORS’ REPORT
ON THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
.....................
416
3.1. OPINION
...............................................................................
416
3.2. BASIS FOR OPINION
.........................................................
416
3.3. OBSERVATION
....................................................................
416
3.4.
JUSTIFICATION OF ASSESSMENTS
KEY AUDIT
MATTERS
.............................................................................
416
3.5. SPECIFIC VERIFICATIONS
...............................................
420
3.6.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
...............................................................
420
3.7.
RESPONSIBILITIES OF MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE FINANCIAL
STATEMENTS
.....................................................................
420
3.8.
STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE
AUDIT OF THE FINANCIAL STATEMENTS
......................
421
7
CONTENTS
380
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
€4,328 M
NET BANKING
INCOME
€1,359 M
NET
INCOME
€562,318 M
TOTAL
BALANCE
SHEET
381
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Chapter 7 – Parent-company financial statements at 31 December 2021
CRéDIT AGRICOLE CIB (S.A.) FINANCIAL STATEMENTS
1.
CRÉDIT AGRICOLE CIB (S.A.)
FINANCIAL STATEMENTS
1.1. ASSETS
€ million
Notes
31.12.2021
31.12.2020
Cash money market and interbank items
-
188,347
154,810
Cash due from central banks
-
58,279
49,315
Treasury bills ans similar securities
4 - 4.2 - 4.3 - 4.4
23,193
21,489
Loans and receivables to credit institutions
2
106,875
84,006
Loans and receivables to customers
3 - 3.1 - 3.2 - 3.3 - 3.4
191,547
189,459
Portfolio securities
-
40,156
34,399
Bonds and other fixed income securities
4 - 4.2 - 4.3 - 4.4
33,159
28,601
Equities and other equity variables income securities
4 - 4.2
6,997
5,798
Fixed assets
-
5,876
6,784
Equity investments and other long-term equity investments
5 - 5.1 - 6
223
242
Investments in subsidiaries and affiliates
5 - 5.1 - 6
5,332
6,241
Intangible assets
6
241
221
Property, plant and equipment
6
80
80
Financial lease and similar operations
6
‐
‐
Treasury shares
-
‐
‐
Accruals, prepayments and sundry assets
-
136,392
180,919
Other assets
7
40,030
53,956
Accruals and prepayments
7
96,362
126,963
Total assets
-
562,318
566,371
1.2. LIABILITIES
€ million
Notes
31.12.2021
31.12.2020
Cash money markets and interbank items
-
116,816
85,571
Due to central banks
-
1,062
815
Due to credit institutions
9
115,754
84,756
Due to customers
10.1 -10.2 - 10.3
197,950
207,321
Debts securities
11.1 - 11.2
37,424
31,258
Accruals, deferred income and sundry liabilities
-
178,967
214,307
Other liabilities
12
80,293
88,046
Accruals and deferred income
12
98,674
126,261
Provisions and subordinated debt
-
15,372
12,498
Provisions
13
3,333
3,570
Subordinated debt
14
12,039
8,928
Fund for general banking risks (FGBR)
-
‐
‐
Equity (excluding FGBR)
15
15,789
15,416
Share capital
-
7,852
7,852
Share premium
-
1,573
1,573
Reserves
-
806
805
Revaluation adjustments
-
‐
‐
Regulated provisions and investment subsidies
-
‐
‐
Retained earnings
-
4,199
4,031
Net income for the financial year
-
1,359
1,155
Total equity and liabilities
-
562,318
566,371
382
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
CRéDIT AGRICOLE CIB (S.A.) FINANCIAL STATEMENTS
1.3. OFF-BALANCE SHEET
€ million
31.12.2021
31.12.2020
Commitments given
352,428
333,101
Financing commitments
186,788
178,212
Commitments to credit institutions
31,394
41,061
Commitments to customers
155,394
137,151
Guarantee commitments
1
92,968
68,566
Commitments to credit institutions
23,030
20,801
Commitments to customers
69,938
47,765
Commitments on securities
1
13,070
30,957
Other commitments given
1
59,602
55,366
Commitments received
227,559
205,584
Financing commitments
2
25,462
11,658
Commitments to credit institutions
14,900
6,088
Commitments to customers
10,562
5,570
Guarantee commitments
2
166,386
149,059
Commitments to credit institutions
15,976
5,368
Commitments to customers
150,410
143,691
Commitments on securities
2
18,513
31,232
Other commitments received
17,197
13,635
1 Including €
11,503 million in commitments given to Crédit Agricole S.A. at 31.12.2021.
2
Including €18 million in financing commitments received from Crédit Agricole S.A. at 31.12.2021.
Off-balance sheet items: Other information
Non-settled foreign exchange transactions and amounts payable in foreign currencies: Note 18
Transactions in forward financial instruments: Notes 19, 19.1, 19.2 and 19.3.
1.4. INCOME STATEMENT
€ million
Notes
31.12.2021
31.12.2020
Interest and similar income
20 - 21
5,699
6,152
Interest and similar expenses
20
(3,852)
(3,887)
Income from variable-income securities
21
121
246
Fee and commission income
22 - 22.1
989
1,008
Fee and commission expenses
22 - 22.1
(546)
(557)
Net gain/(loss) on trading book
23
1,775
1,565
Net gain/(loss) on investment portfolios
24
27
248
Other banking income
-
267
215
Other banking expenses
-
(152)
(175)
Revenues
-
4,328
4,815
Operating expenses
-
(2,734)
(2,588)
Personnal costs
25.1 - 25.3
(1,546)
(1,509)
Other operating expenses
25.3
(1,188)
(1,079)
Depreciation, amortization and impairement of property,
plant and equipment and intangible assets
-
(72)
(92)
Gross operating income
-
1,522
2,135
Cost of risk
26
(82)
(892)
Net operating income
-
1,440
1,243
Net gain/(loss) on fixed assets
27
51
(10)
Pre-tax income on ordinary activities
-
1,491
1,233
Net extraordinary items
-
‐
‐
Income tax charge
28
(132)
(78)
Net allocation to FGBR and regulated provisions
-
‐
‐
Net income for the financial year
-
1,359
1,155
383
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
CRéDIT AGRICOLE CIB (S.A.) FINANCIAL STATEMENTS
1.5. MAJOR EVENTS DURING THE PERIOD 2021
1.5.1 – Covid-19 health crisis
In response to the Covid-19 crisis, the Crédit Agricole Group took proactive measures to face this unprecedented situation. In a bid to
support its clients whose businesses had been impacted by the health crisis, the Group actively contributed to the economic stimulus
measures.
A – GOVERNMENT-BACKED LOANS
In response to the health crisis triggered by Covid-19, as from 25 March 2020 the Crédit Agricole Group offered to its entire base
of entrepreneurial clients, regardless of the size of their business or professional status (farmers, professionals, retailers, craftsmen,
corporates, etc.), the opportunity to take part in the government-backed loan programme, in addition to the measures already announced
(deferred loan payments, streamlined credit application process, etc.).
At 31 December 2021, outstanding government-backed loans granted by Crédit Agricole CIB amounted to €1,995 million.
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NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
2.
NOTES TO THE PARENT-COMPANY
FINANCIAL STATEMENTS
NOTE 1: ACCOUNTING POLICIES AND PRINCIPLES
Crédit Agricole CIB prepares its financial statements in accordance with the accounting principles applicable to banks in
France and in compliance with the rules defined by Crédit Agricole S.A.
The presentation of the financial statements of Crédit Agricole CIB complies with the provisions of ANC Regulation 2014-07,
which combines in a single regulation all accounting standards applicable to credit institutions.
Changes in the accounting method and presentation of the financial statements compared to the previous year relate to the following point:
Regulations
Date of first-time application: transactions
completed or financial years beginning on or after
Update to ANC Recommendation No. 2013-02 of 7 November 2013 on rules for the valuation
and recognition of pension obligations and similar benefits for the annual financial statements and
consolidated financial statements prepared in accordance with French accounting standards
Immediately
1.1 Loans and financing commitments
Amounts due from credit institutions, the Crédit Agricole Group
entities and clients are covered by ANC Regulation 2014-07.
They are presented in the financial statements according to their
initial term or their nature:
y
Demand and term loans to credit institutions;
y
Current accounts, term accounts and advances for Crédit
Agricole internal transactions;
y
Trade receivables and other loans and receivables granted
to clients.
In accordance with regulations, the clients’ category also includes
transactions with financial clients.
Subordinated loans and repurchase agreements (represented
by certificates or securities) are included under the various
categories of loans and receivables according to counterparty
type (interbank, Crédit Agricole, clients).
Receivables are recognised on the balance sheet at their face
value.
Pursuant to ANC Regulation 2014-07, fees received and marginal
transaction costs incurred on the granting or acquisition of a
loan are spread over the effective term of the loan and are thus
included in the relevant loan outstanding.
Accrued interest is recognised under the related accounts
receivable and taken to profit or loss.
Financing commitments recognised off-balance sheet represent
irrevocable commitments to provide cash advances and guarantee
commitments that have not resulted in fund movements.
Under ANC regulation 2014-07, Crédit Agricole CIB recognises
loans and receivables at risk of non-payment pursuant to the
rules set out in the paragraphs below.
External and/or internal rating systems are used to help assess
the level of credit risk.
Loans and financing commitments are broken down between
performing and non-performing loans and receivables.
PERFORMING LOANS AND RECEIVABLES
Unless receivables are classified as irrecoverable, they are
considered performing or non-performing and continue to be
carried under their original classification.
Credit risk provisions for performing and non-
performing loans
Crédit Agricole CIB records provisions on the liabilities side of
its balance sheet to cover 12-month expected credit losses
(performing exposures) and/or lifetime expected credit losses
when the credit quality has deteriorated significantly (non-
performing exposures).
These provisions are determined in a specific monitoring process
and are based on estimates of the expected credit loss.
The concept of ECL (Expected Credit Loss)
The ECL is the present value of probability-weighted estimated
credit losses (principal and interest). It is the present value of the
difference between contractual cash flows and expected cash
flows (including principal and interest).
The ECL approach aims to recognise expected credit losses as
soon as possible.
Governance and measurement of ECL
The governance of the provisioning measurement system is
based on the organisation set up under the Basel framework.
The Crédit Agricole Group Risks Department is responsible for
defining the methodological framework and for the supervision
of the mechanism for provisioning exposures.
The Crédit Agricole Group relies primarily on the internal rating
system and the current Basel processes to generate the risk
parameters needed to calculate expected credit losses. The
assessment of changes in credit risk is based on a model that
anticipates losses, and extrapolation on the basis of reasonable
scenarios. All available, relevant, reasonable and justifiable
information, including forward looking information, is used.
The calculation formula incorporates probability of default, loss
given default and exposure at default parameters.
These calculations are largely based on internal models used
for prudential monitoring, where they exist, with adjustments to
calculate the ECL.
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The measurement of ECL under French accounting standards is
similar to the IFRS approach.
The accounting approach also involves recalculating certain Basel
parameters, in particular to neutralise internal collection costs or
floors imposed by the regulatory authorities for regulatory loss
given default (LGD) calculations.
The methods for calculating expected credit losses are to
be assessed according to the types of products: loans and
receivables due from clients and off-balance sheet instruments.
The 12-month expected credit loss is a portion of lifetime expected
credit losses, representing the lifetime cash flow shortfall occurring
from a default within 12 months of the reporting date (or a shorter
period if the exposure’s expected life is shorter than 12 months),
weighted by the probability of default within 12 months.
The expected credit loss is discounted using the effective interest
rate determined on initial recognition of the financial instrument.
The provisioning parameters are measured and updated
according to methodologies defined by the Crédit Agricole Group
and are used to establish an initial level of reference, or shared
base, for provisioning.
Backtesting of models and parameters used is carried out at
least on a yearly basis.
Forward-looking macro-economic data are taken into account in
a methodological framework applicable at two levels:
y
At the level of the Crédit Agricole Group, in determining a shared
framework for taking into account forward looking data in the
projection of PD and LGD parameters over the transaction
amortisation period;
y
At the level of each entity with regard to its own portfolios. Crédit
Agricole CIB applies additional forward looking parameters
on portfolios of loans and receivables due from clients and
performing and non-performing financing commitments when
local economic and/or structural factors expose it to additional
losses not covered by the scenarios defined at the Group level.
Significant deterioration of the credit risk
Crédit Agricole CIB assesses the deterioration of the credit risk
of each exposure since inception at each closing date. This
assessment of changes in credit risk enables entities to classify
their transactions into risk buckets (performing exposures / non-
performing exposures / impaired exposures).
To determine a significant deterioration in credit risk, the Crédit
Agricole Group applies a process with two levels of analysis:
y
a first level using relative and absolute rules and criteria, applied
to Group entities;
y
a second level specific to each entity related to the assess-
ment, based on an expert opinion of additional forward looking
parameters when local economic and/or structural factors
expose it to additional losses not covered by the scenarios
defined at the Group level, of the risk borne by each entity on
its portfolios which could lead to an adjustment of the Group’s
criteria for downgrading performing exposures to non-per-
forming exposures (by transferring the portfolio or sub-portfolio
to lifetime ECL).
Significant deterioration is monitored for every financial instrument
without exception. No contagion is required for a financial
instrument from the same counterparty to be transferred from
performing to non-performing. Monitoring of the significant
deterioration in credit risk must cover the primary debtor, without
taking into account guarantees, even for transactions guaranteed
by the shareholder.
For exposures comprised of small loans with similar
characteristics, the review by counterparty may be replaced by
a statistical estimate of expected losses.
To measure the significant deterioration in credit risk since initial
recognition, it is necessary to retrieve the internal rating and the
PD (probability of default) applied on initial recognition.
The date of initial recognition refers to the trading date, when
the entity becomes a party to the contractual provisions of the
loan. For financing and guarantee commitments, the date of initial
recognition is the date on which the irrevocable commitment is
made.
For exposures not covered by an internal rating model, the Crédit
Agricole Group uses amounts past due for more than 30 days as
the ultimate threshold representing a significant deterioration in
credit risk leading to classification as a non-performing exposure.
For exposures measured using an internal rating system
(particularly those monitored using advanced methods), the Crédit
Agricole Group considers that all of the information included in
the rating system enables a more relevant assessment than just
the criteria of arrears of over 30 days.
If the significant deterioration in credit risk since initial recognition is
no longer observed, the provision can be reclassified to 12-month
expected credit losses (reclassified as a performing loan).
When certain factors or indicators of a significant deterioration
are not identifiable at the level of an exposure considered
separately, an assessment is made of significant deterioration
for portfolios, groups of portfolios or portions of portfolios of
financial instruments.
The establishment of portfolios for an assessment of collective
impairment can be based on common characteristics such as:
y
The type of exposure;
y
The credit risk rating;
y
The type of guarantee;
y
The date of initial recognition;
y
The term to maturity;
y
The sector of activity;
y
The geographic location of the borrower;
y
The value of the asset allocated as a guarantee in relation to
the financial assets, if this has an effect on the probability of
default (for example, in the case of loans guaranteed only by
real security in certain countries, or the loan-to-value ratio);
y
The distribution channel, the purpose of the loan, etc.
The grouping of assets for the purpose of assessing changes
in credit risk on collective basis may change over time as new
information becomes available.
Allocations to and reversals of provisions for credit risk on
performing and non-performing exposures are booked as cost
of risk.
NON-PERFORMING LOANS AND
RECEIVABLES
Loans and receivables of all kinds, even those which are
guaranteed, are classified as non-performing if they carry an
identified credit risk arising from one of the following events:
y
significant arrears, generally when a payment is more than ninety
days past due, unless specific circumstances point to the fact
that the delay is due to reasons beyond the debtor’s control;
y
the entity believes that the debtor is unlikely to settle its credit
obligations in full unless it avails itself of certain measures such
as the enforcement of collateral.
A loan is deemed to be non-performing when one or more events
have occurred which have a negative effect on future estimated
cash flows. The following events constitute observable data
indicative of a non-performing loan:
y
significant financial difficulties for the issuer or borrower;
y
a breach of an agreement, such as a default or late payment;
y
the granting by the lender(s) to the borrower, for economic or
contractual reasons related to the borrower’s financial difficul-
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ties, of one or more favours that the lender(s) would not have
considered in other circumstances;
y
an increasing probability of bankruptcy or financial restructuring
of the borrower;
y
the disappearance of an active market for the financial asset
due to financial difficulties;
y
the purchase or the creation of a financial asset with a large
discount, which reflects the credit losses incurred.
It is not necessarily possible to isolate a particular event as the
impairment of the financial asset could result from the combined
effect of several events.
A counterparty in default only returns to a performing situation
after an observation period that confirms that the borrower is no
longer at risk (assessment by the Risk Division).
Crédit Agricole CIB distinguishes between irrecoverable exposures
and non-performing exposures.
Non-performing exposures
These are all non-performing loans which do not fall into the
irrecoverable loans category.
Irrecoverable exposures
Non-performing loans are considered to be irrecoverable when
collection is deemed to be highly unlikely and a write-off is
considered.
For non-performing loans, interest continues to accrue as long
as the loan is considered non-impaired and will no longer accrue
when the loan becomes irrecoverable.
The classification as a non-performing exposure may be
discontinued, in which case the outstanding amount is reclassified
as a performing loan.
Impairment resulting from credit risk on non-
performing exposures
Once a loan is classified as non-performing, Crédit Agricole CIB
recognises the probable loss by recording an impairment charged
against assets on the balance sheet. These impairment losses
represent the difference between the carrying amount of the
receivable and estimated future cash flows discounted at the
initial effective interest rate, taking into account the borrower’s
financial condition, its business prospects and any guarantees,
after deduction of the cost of enforcing such guarantees.
Probable losses in respect of off-balance sheet commitments are
covered by provisions recognised in liabilities.
Accounting treatment of impairment losses
Allocations to and reversals of impairment for the risk of non-
collection of non-performing loans is recognised in cost of risk.
In accordance with ANC Regulation 2014-07, the Group has
chosen to recognise the increase in the book value arising from
the reversal of the impairment related to the passage of time as
net interest income.
WRITE-OFFS
The assessment of the write-off period is based on expert
judgement, and Crédit Agricole CIB determines it with its Risk
Division, based on its knowledge of its activity.
Loans and receivables which have become irrecoverable are
recorded as losses, and the corresponding impairments are
reversed.
COUNTRY RISKS
Country risks (or risks on international commitments) represent
the total amount of non-impaired on and off-balance sheet
commitments carried by an institution, either directly or via
hive-off vehicles, involving private or public debtors residing in
the countries identified by the French Prudential Supervision
and Resolution Authority (ACPR), or where settlement thereof
depends on the position of public or private debtors residing in
those countries.
When these receivables are not classified as non-performing, they
continue to be carried under their original classification.
RESTRUCTURED LOANS
Loans restructured due to financial difficulties are those for
which the entity has changed the initial financial terms (interest
rate, maturity, etc.) for economic or legal reasons related to the
borrower’s financial difficulties, in a manner that would not have
been considered under other circumstances.
The definition of receivables restructured due to financial difficulties
therefore involves two cumulative criteria:
y
contractual modifications or refinancing of receivables (where
concessions are granted);
y
a client in financial difficulty (a debtor experiencing, or about to
experience, difficulties in meeting their financial commitments).
This notion of restructuring must be assessed at the level of the
contract and not at the client level (no contagion).
They can be non-performing or performing at the restructuring
date.
Restructured loans do not include loans whose characteristics
have been renegotiated on a commercial basis with counterparties
not showing any insolvency problems.
The reduction of future cash flows granted to a counterparty, or
the postponing of these flows as part of a restructuring, results in
the recognition of a discount. It is equal to the difference between:
y
The nominal value of the loan; and
y
The sum of theoretical future cash flows from the restructured
loan, discounted at the original effective interest rate (defined
at the date of the financing commitment).
The discount recognised when a loan is restructured is recorded
under cost of risk.
Loans restructured due to the debtor’s financial position are
rated in line with the Basel rules and are impaired according to
the estimated credit risk.
As soon as the restructuring operation has been carried out, the
exposure maintains this status of “restructured” for a period of at
least two years if the exposure was performing at the time of the
restructuring, or three years if the exposure was in default at the
time of the restructuring. These periods are extended if certain
events occur (new incidents, for example).
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1.2 Securities portfolio
The rules governing the recognition of credit risk and the
impairment of fixed-income securities are defined by Articles
2311-1 to 2391-1 and Articles 2211-1 to 2251-13 of ANC
Regulation 2014-07.
These securities are presented in the financial statements
according to their nature: treasury bills (treasury bonds and similar
securities), bonds and other fixed income securities (negotiable
debt securities and interbank market instruments) and equities
and other variable income securities.
They are classified in the portfolios specified by the regulations
(trading, long term investment securities, short term investment
securities, medium term investment securities, fixed assets, other
long term securities, equity investments, shares in subsidiaries
and affiliates) according to the entity’s management strategy and
the characteristics of the instrument at the time of its purchase.
TRADING SECURITIES
These are securities that were originally:
y
Either purchased with the intention of selling them in the near
future, or sold with the intention of repurchasing them in the
near future;
y
Or held by the bank as a result of its market-making activity. The
classification of these securities as trading securities depends
on the effective turnover of the securities and on a significant
trading volume taking into account market opportunities.
These securities must be tradable on an active market and
resulting market prices must represent real transactions regularly
undertaken in the market on an arm’s length basis.
Trading securities also include:
y
Securities bought or sold as part of specialised management
of the trading portfolio, including forward financial instruments,
securities or other financial instruments that are managed
together and which show indications of a recent short term
profit-taking profile;
y
Securities on which there is a commitment to sell as part of
an arbitrage transaction on an organised or similar market.
y
Borrowed securities (including, where applicable, borrowed
securities subsequently loaned and reclassified as “trading
securities lent”) in connection with lending/borrowing trans-
actions classified as trading securities and offset against the
liabilities representing the borrowed securities recorded on the
liabilities side of the balance sheet.
Except as provided in ANC Regulation 2014-07, trading securities
may not be reclassified into another accounting category. They
continue to be presented and measured as trading securities until
they are removed from the balance sheet after being sold, fully
redeemed or written off.
Trading securities are recognised on the date they are purchased
for the amount of their purchase price, excluding transaction
expenses and including accrued interest.
Liabilities relating to securities sold short are recognised on the
liabilities side of the seller’s balance sheet for the amount of the
selling price excluding incidental purchase costs.
At each closing date, securities are measured at the most recent
market price. The overall amount of differences resulting from
price changes is taken to profit and loss and recorded in “Net
gain/(loss) on trading book”.
SHORT TERM INVESTMENT SECURITIES
This category consists of securities that do not fall into any other
category.
The securities are recorded at their purchase price, excluding fees.
Bonds and other fixed income securities
These securities are recognised at acquisition cost including
accrued interests at acquisition date. The difference between
the purchase price and the redemption value is spread over the
remaining life of the security on an actuarial basis.
Income is recorded in the income statement under: “Interest
and similar income on bonds and other fixed income securities”.
Equities and other equity variable income
securities
Equities are recognised in the balance sheet at their purchase
price excluding acquisition fees. The associated dividends
are recorded as income under “Income from variable-income
securities”.
Revenues from Undertakings for Collective Investment in
Transferable Securities (UCITS) are recorded in the same item
at the time of collection.
At each closing date, short term investment securities are
measured at the lowest between acquisition cost and market
value. If the current value of an item or a group of similar securities
(calculated from market prices at the reporting date, for example)
is lower than its carrying amount, an impairment loss is recorded
for the unrealised loss with no offsetting against any gains
recognised on other categories of securities. Gains from hedging
within the meaning of ANC Regulation 2014-07, in the form of
purchases or sales of forward financial instruments, are factored
in for the purposes of calculating impairment losses. Potential
gains are not recorded.
Impairment intended to take into account counterparty risk and
recognised under cost of risk is recognised on fixed income
securities as follows:
y
In the case of listed securities, impairment is based on market
value, which intrinsically reflects credit risk. However, if Crédit
Agricole CIB has specific information on the issuer’s financial
position that is not reflected in the market value, a specific
impairment loss is recorded;
y
In the case of unlisted securities, impairment is recorded in the
same way as on loans and receivables due from clients based
on identified probable losses (see Note 1.1 Loans and financing
commitments – Impairment resulting from identified credit risk).
Sales of securities are deemed to take place on a first-in, first-out
basis.
Impairment charges and disposal gains or losses on short term
investment securities are recorded under “Net gain/(loss) from
investment portfolios and similar”. Income from equities and other
variable income securities is recorded on the income statement
under “Income from variable income securities”.
LONG TERM INVESTMENT SECURITIES
Long term investment securities are fixed income securities with a
fixed maturity date that have been acquired or transferred to this
category with the clear intention of holding them until maturity.
This category only includes securities for which Crédit Agricole CIB
has the necessary financial ability to continue holding them until
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maturity and that are not subject to any legal or other restriction
that could interfere with its intention to hold them until maturity.
Long term investment securities are recognised at their purchase
price, excluding acquisition costs and including accrued interest.
The difference between the purchase price and the redemption
price is spread over the remaining life of the security.
Impairment is not recognised for long term investment securities
if their market value falls below cost. However, if the impairment
is associated with a risk specific to the issuer of the security, an
impairment is recorded under «Cost of risk.»
In the case of the sale or reclassification to another category of
long term investment securities representing a material amount,
the reporting entity is no longer authorised to classify securities
previously bought or to be bought as long term investment
securities during the current financial year and the two subsequent
financial years, in accordance with ANC Regulation 2014-07.
MEDIUM TERM PORTFOLIO SECURITIES
In accordance with ANC Regulation 2014-07, these securities
are “investments made on a regular basis, with the sole aim of
securing a capital gain in the medium term, with no intention of
investing in the issuer’s business on a long term basis or taking
an active part in its management”.
Securities can only be included in this category if the activity is
carried out to a significant extent and on an ongoing basis within
a structured framework and gives the reporting entity a recurring
return mainly in the form of capital gains on disposals.
Crédit Agricole CIB meets these conditions and some of its
securities can be classified in this category.
Medium term portfolio securities are recorded at purchase price,
excluding transaction expenses.
They are recognised at the end of the reporting period at the lower
of historical cost or value in use, which is determined on the basis
of the issuer’s general outlook and the estimated remaining time
horizon for holding the securities.
For listed companies, value in use is generally the average quoted
price over a sufficiently long period of time, depending on the
estimated time horizon for holding the securities, to mitigate the
impact of substantial fluctuations in stock prices.
Impairment losses are booked for any unrealised losses calculated
for each line of securities, and are not offset against any unrealised
gains. Unrealised losses are recorded under “Net gains or losses
on short term investment portfolios” along with impairment losses
and reversals on these securities.
Unrealised gains are not recognised.
INVESTMENTS IN SUBSIDIARIES AND
AFFILIATES, EQUITY INVESTMENTS AND
OTHER LONG TERM EQUITY INVESTMENTS
y
Investments in subsidiaries and affiliates are investments in
companies that are under exclusive control and that are or are
liable to be fully consolidated into a given group.
y
Equity investments are investments (other than investments in
subsidiaries and affiliates), of which the long term ownership is
judged beneficial to the reporting entity, in particular because
it allows it to exercise influence or control over the issuer.
y
Other long term equity investments are composed of securi-
ties held with the intention of promoting long term business
relations by creating a special relationship with the issuer, but
with no influence on the issuer’s management due to the small
percentage of voting rights held.
The securities are recorded at their purchase price, excluding fees.
At the reporting date, the value of these securities is measured
individually, based on value in use, and they are recorded in the
balance sheet at the lowest of their historical cost or value in use.
Value in use represents the price the reporting entity would be
prepared to pay to acquire these securities if it had to buy them
having regard to its reasons for holding them.
Value in use may be estimated on the basis of various factors
such as the issuer’s profitability and prospective profitability, its
equity, the economic environment, the average share price in
the preceding months or the mathematical value of the security.
When value in use is lower than historical cost, impairment losses
are booked for these unrealised losses and are not offset against
any unrealised gains.
Impairment losses and reversals and disposal gains or losses
on these securities are recorded under “Net gains (losses) on
fixed assets”.
MARKET PRICE
The market price at which the various categories of securities are
measured is determined as follows:
y
Securities traded on an active market are measured at the
latest price;
y
If the market on which the security is traded is not or no longer
considered active or if the security is unlisted, Crédit Agricole
CIB determines the likely value at which the security concerned
would be traded using valuation techniques. Firstly, these
techniques take into account recent transactions carried out
on an arm’s length basis. If required, Crédit Agricole CIB uses
valuation techniques commonly used by market participants
to price these securities, when it has been demonstrated that
these techniques provide reliable estimates of prices obtained
in actual market transactions.
RECORDING DATES
Crédit Agricole CIB records securities classified as long term
investment securities on the settlement/delivery date. Other
securities, regardless of type or classification, are recognised
on the trading date.
SECURITIES SOLD/BOUGHT UNDER
REPURCHASE AGREEMENTS
Securities sold under repurchase agreements are kept on the
balance sheet. The amount received, representing the liability
to the buyer, is recorded as a liability. Securities bought under
repurchase agreements are not recorded on the balance sheet,
but the amount paid, representing the amount receivable from the
seller, is recorded as an asset on the balance sheet.
The corresponding income and expenses are taken to profit and
loss on a pro rata basis.
Securities sold under repurchase agreements are subject to the
accounting principles corresponding to the category of portfolio
from which they originate.
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SECURITIES LOANED AND BORROWED
In the accounts of the lender, a receivable is recorded in the balance
sheet representing the market price of the loaned securities on
the date of the loan, in place of the loaned securities. At each
closing date, the receivable is measured using the rules applicable
to loaned securities, including the recognition of accrued interest
on short term and long term investment securities. In the accounts
of the borrower, the security is recorded as an asset under trading
securities at the market price prevailing on the date the security
was borrowed. A liability to the lender is recorded on the balance
sheet under “Liabilities relating to securities lending transactions”.
At each closing date, the liability and the securities are measured
at the most recent market price and recorded for their net amount
on the balance sheet, in accordance with ANC Regulation No.
2020-10, amending ANC Regulation No. 2014-07 on the netting
of securities borrowing transactions.
RECLASSIFICATION OF SECURITIES
In accordance with ANC Regulation 2014-07, the following
securities may be reclassified:
y
From the trading portfolio to the long term investment portfolio
or the short term investment portfolio in the case of exceptional
market conditions or, for fixed income securities that are no
longer tradable in an active market and if the entity has the
intention and ability to hold the securities for the foreseeable
future or until maturity
y
From the short term investment portfolio to the long term
investment portfolio in exceptional market conditions or for fixed
income securities that are no longer tradable in an active market.
In 2021, Crédit Agricole CIB did not make this type of reclassifi-
cation pursuant to regulation ANC 2014-07.
1.3 Fixed assets
Crédit Agricole CIB applies ANC Regulation 2014-03 relating to
the amortisation and impairment of assets.
Crédit Agricole CIB applies component accounting for all of its
property, plant and equipment. In accordance with this method,
the depreciable base takes into account the potential remaining
value of property, plant and equipment.
The acquisition cost of fixed assets includes the purchase
price plus any incidental expenses, namely expenses directly
or indirectly incurred in connection with bringing the asset into
service or “into inventory”.
Land is recorded at acquisition cost.
Buildings and equipment are recorded at acquisition cost, less
depreciation, amortisation and impairment losses accumulated
over the period of use.
Purchased software is measured at purchase price less
accumulated depreciation, amortisation and any impairment
losses since acquisition.
Proprietary software is measured at cost less accumulated
depreciation, amortisation and impairment losses booked since
completion.
Intangible assets other than software, patents and licences are
not amortised. They may be subject to impairment.
The technical merger losses are recognised in the balance sheet
according to the asset classes to which they are allocated, under
“Other property, plant and equipment, intangible assets and
financial assets, etc.” The loss is amortised, impaired and written
off in the same way as the underlying asset.
Fixed assets are impaired over their estimated useful lives.
The following components and depreciation periods have
been adopted by Crédit Agricole CIB following the application
of component accounting for fixed assets. These depreciation
periods are adjusted according to the type of asset and its
location:
Component
Depreciation period
Land
Not depreciable
Structural works
30 to 80 years
Non-structural works
8 to 40 years
Plant and equipment
5 to 25 years
Fixtures and fittings
5 to 15 years
Computer equipment
4 to 7 years (accelerated or straight-line)
Special equipment
4 to 5 years (accelerated or straight-line)
Based on available information on the value of its fixed assets,
Crédit Agricole CIB has concluded that impairment testing would
not lead to any change in the existing depreciable amount.
1.4 Amounts due to clients and credit
institutions
Amounts due to credit institutions, to Crédit Agricole entities and
to clients are presented in the financial statements according to
their remaining maturity or their nature:
y
demand and term deposits for credit institutions,
y
current accounts, term accounts and advances for Crédit
Agricole internal transactions,
y
special savings accounts and other amounts due to clients
(notably including financial clients).
Repurchase agreements (represented by certificates or securities)
are included under these various headings, according to
counterparty type.
Accrued interest on these deposits is taken to profit or loss.
1.5 Debt securities
Debt securities are presented according to their form: interest-
bearing notes, interbank market instruments, negotiable
debt securities, bonds and other debt securities, excluding
subordinated securities, which are classified in liabilities under
“Subordinated debt”.
Accrued interest not yet due is taken to profit or loss.
Issuance or redemption premiums on bonds are amortised over
the lifetime of each bond. The corresponding expense is recorded
under “Interest and similar expenses on bonds and other fixed
income securities”.
Redemption premiums and issuance premiums for debt securities
are amortised according to the actuarial amortisation method.
Crédit Agricole CIB also amortises borrowing expenses in its
parent company’s financial statements.
1.6 Provisions
Crédit Agricole CIB applies ANC Regulation 2014-03 for the
recognition and measurement of provisions.
Provisions include provisions relating to financing commitments,
retirement and early retirement liabilities, litigation and various
risks.
The provisions also include country risks. All these risks are
reviewed quarterly.
Provisions are set aside for country risks following an analysis of
the types of transactions, the term of commitments, their form
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
(receivables, securities, market products) as well as the country
risk rating.
Crédit Agricole CIB partially hedges provisions on these foreign
currency-denominated receivables by buying foreign currency, to
limit the impact of changes in foreign exchange rates on provision
levels.
1.7 Transactions on forward financial
instruments and options
Hedging and market transactions on forward interest rate, foreign
exchange or equity instruments are recorded in accordance with
the provisions of ANC Regulation 2014-07.
Commitments relating to these transactions are recorded off-
balance sheet at the par value of the contracts: this amount
represents the volume of pending transactions.
Gains or losses relating to these transactions are recorded on
the basis of the nature of the instrument and the strategy used:
HEDGING TRANSACTIONS
Gains or losses realised on hedging transactions (category “b”
Article 2522-1 of ANC Regulation 2014-07) are recorded in the
income statement in the same manner as income and expenses
on the hedged item and under the same accounting heading.
Income and expenses relating to forward financial instruments
used for hedging and managing Crédit Agricole CIB’s overall
interest rate risk (category “c” Article 2522-1 of ANC Regulation
2014-07) are recorded pro rata under “Interest and similar income
(expenses) – Net gain/(loss) on macro-hedging transactions”.
Unrealised gains and losses are not recorded.
MARKET TRANSACTIONS
Market transactions include:
y
Isolated open positions (category “a” of Article 2522-1 of ANC
Regulation 2014-07);
y
The specialised management of a trading portfolio (category
“d” Article 2522 of ANC Regulation 2014-07);
y
Instruments traded on an organised or similar market, over the
counter or included in a trading portfolio – within the meaning
of regulation ANC 2014-07.
They are marked to market on the closing date.
If there is an active market, the instrument is stated at the quoted
price on that market. In the absence of an active market, fair value
is determined using internal valuation techniques and models.
For instruments:
y
In isolated open positions traded on organised or similar
markets, all gains and losses (realised or unrealised) are
recognised;
y
In isolated open positions traded on over-the-counter markets,
the expenses and incomes are recognised in profit and loss
on a pro rata basis. Furthermore, only potential unrealised
losses are recognised through a provision. Realised gains and
losses are recognised in profit (loss) at the time of settlement;
y
Forming part of a transaction portfolio, all gains and losses
(realised or unrealised) are recognised.
INTEREST RATE AND FOREIGN EXCHANGE
TRANSACTIONS (SWAPS, FRAS, CAPS,
FLOORS, COLLARS, SWAPTIONS)
Crédit Agricole CIB uses interest rate and currency swaps mainly
for the following purposes:
1. To hedge interest rate risk affecting one item or a set of
similar items;
2. To hedge and manage the Group’s overall interest rate risk,
except for transactions described in [1] and [3];
3. To carry out specialist management of a trading portfolio
consisting of interest rate or currency swaps, other forward
interest rate instruments, debt instruments or similar financial
transactions.
Income and expenses related to transactions mentioned in the
above section are recognised in the income statement as follows:
1. In the same manner as income and expenses on the hedged
item or set of items
2. On a pro rata basis, with unrealised gains and losses not
recognised
3. At market value, adjusted through an MTM adjustment to
take into account counterparty risks and future administrative
expenses related to these contracts.
Market value is determined by discounting future cash flows using
the zero coupon method.
Instruments cannot be reclassified between categories, except
for transfers from category [2] to category [1] or [3] in the event
of an interrupted hedging relationship. Transfers are recognised
at the net book value of the instrument, which is then subject to
the rules of the portfolio to which it is transferred.
Up-front and termination fees regarding interest rate or foreign
exchange contracts are spread over the remaining maturity of
the transaction or hedged item, except in the case of marked-
to-market contracts, for which they are taken directly to the
income statement.
COUNTERPARTY RISK ON DERIVATIVE
INSTRUMENTS
In accordance with ANC Regulation 2014-07, Crédit Agricole
CIB includes the assessment of counterparty risk on derivative
assets in the market value of derivatives. For this reason, only
derivatives recognised as isolated open positions and in trading
portfolios (respectively, derivatives classified in categories a and
d of Article 2522-1 of the aforementioned regulation) are subject
to a calculation of counterparty risk on derivative assets (CVA -
Credit Valuation Adjustment).
The CVA makes it possible to calculate counterparty losses
expected by Crédit Agricole CIB.
The CVA is calculated on the basis of an estimate of expected
losses based on the probability of default and loss given default.
The methodology used maximises the use of observable market
inputs.
It is based on:
y
Primarily market data such as registered and listed CDS (or
Single Name CDS) or index-based CDS;
y
in the absence of registered CDS on the counterparty, an
approximation based on a basket of Single Name CDS of
counterparties with the same rating operating in the same
sector and located in the same area.
In certain circumstances, historical default data may also be used.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
FUNDING VALUATION ADJUSTMENT
The value of non-collateralised or partially collateralised derivative
instruments incorporates a Funding Valuation Adjustment (FVA)
that represents costs and benefits related to the financing of
these instruments. This adjustment is measured based on positive
or negative future exposure of transactions for which a cost of
financing is applied.
OTHER INTEREST RATE OR EQUITY
TRANSACTIONS
Crédit Agricole CIB uses various instruments such as interest
rate futures and equity derivatives for trading or specific hedging
purposes.
Contracts concluded for trading purposes are measured at market
value, and the corresponding gains or losses are taken to the
income statement.
Gains or losses, realised or unrealised, resulting from the mark-
to-market measurement of specific hedging contracts are spread
over the maturity life of the hedged instrument.
CREDIT DERIVATIVES
Crédit Agricole CIB uses credit derivatives mainly for trading, in the
form of Credit Default Swaps (CDS). CDS concluded for trading
purposes are measured at market value, and the corresponding
gains or losses are taken to the income statement.
1.8 Foreign currency transactions
At each closing date, receivables and liabilities, as well as forward
foreign exchange contracts recorded as off-balance-sheet
commitments denominated in foreign currencies, are translated
at the exchange rate in force on the reporting date.
Income received and expenses paid are recognised at exchange
rates on the day of the transaction. Accrued income and expenses
not yet due are translated at the closing rates.
Assets in foreign currencies held long term, comprising allocations
to branches, fixed assets, investment securities, subsidiaries’
securities and equity investments in foreign currency financed
in euros are translated at the exchange rates on the date of
acquisition (historical). A provision may be recognised if there is
a permanent deterioration in the exchange rate affecting Crédit
Agricole CIB’s foreign equity interests.
At each reporting date, forward foreign exchange transactions
are measured at the relevant forward exchange rate. Recognised
gains or losses are taken to the income statement under “Gains
or losses on trading book - Gains (losses) on foreign currency
transactions and similar financial instruments”.
Pursuant to the implementation of ANC Regulation 2014-07,
Crédit Agricole CIB has instituted multi-currency accounting to
enable it to monitor its currency position and to measure its
exposure to foreign exchange risk.
The overall amount of the operational foreign exchange position of
Crédit Agricole CIB Paris stood at €836 million on 31 December
2021 compared with €538 million on 31 December 2020.
SPOT AND FORWARD FOREIGN EXCHANGE
CONTRACTS
At each closing date, spot foreign exchange contracts are
measured at the spot exchange rate of the currency concerned.
Forward foreign exchange transactions categorised as trading
transactions are recognised at market value using the forward
rate applicable to the remaining period of the contract. Recorded
net gains or losses are recognised in the income statement under
“Net gain/(loss) from trading portfolios – foreign exchange and
similar financial instruments”. Net gains and losses on forward
foreign exchange transactions that are categorised as spot
exchange transactions in connection with loans and borrowings
are recognised on a pro rata basis over the term of the contracts.
CURRENCY FUTURES AND OPTIONS
Currency futures and options are used for trading purposes as
well as to hedge specific transactions. Contracts concluded
for trading purposes are measured at market value, and the
corresponding gains or losses are taken to the income statement.
Realised or unrealised gains or losses resulting from the mark-
to-market valuation of specific hedging contracts are recognised
in the same manner as the hedged transaction.
1.9 Consolidation of foreign branches
Branches keep separate accounts that comply with the
accounting rules in force in the countries in which they are based.
At each reporting date, foreign branches’ balance sheets and
income statements are adjusted according to French accounting
rules, converted into euros and integrated with the accounts of
their head office after eliminating intra-group transactions.
The rules for conversion into euros are as follows:
- Balance sheet items are translated at the closing rate,
- Income and expenses paid and received are recorded at the
exchange rate on the transaction date, whereas accrued income
and expenses are translated at the average rate of the period.
Gains or losses resulting from this translation are recorded in the
balance sheet under “Accruals, prepayments and sundry assets”
or “Accruals, deferred income and sundry liabilities”.
1.10 Off-balance sheet commitments
Off-balance sheet items mainly reflect the unused portion of
given and received financing commitments and guarantee
commitments.
An expense is recognised as provisions for given commitments
if there is a probability that calling in the commitment will result
in a loss for Crédit Agricole CIB.
Reported off-balance sheet items do not mention commitments
on forward financial instruments or foreign exchange transactions.
Similarly, they do not include received commitments concerning
treasury bonds, similar securities and other securities pledged
as collateral.
1.11 Employee profit-sharing and incentive
plans
Employee profit-sharing is recognised in the income statement
in the financial year in which the employees’ rights are earned.
Profit-sharing and incentive plans are covered by a company-
wide agreement.
Profit-sharing and incentives are included in “Employee expenses”.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
1.12 Post-employment benefits
COMMITMENTS CONCERNING RETIREMENT,
EARLY RETIREMENT AND RETIREMENT
BENEFITS – DEFINED BENEFIT PLANS
Crédit Agricole CIB applies ANC Recommendation 2013-02
relating to the measurement and recognition of retirement and
similar benefit obligations, such recommendation having then
been repealed and incorporated in ANC Regulation 2014-03.
This recommendation was amended by the ANC on 5 November
2021. For defined benefit plans that subject benefits to conditions
of seniority, for a maximum capped amount, and the employee’s
continued employment by the entity upon reaching retirement
age, the recommendation allows the distribution of benefits to
be determined on a straight-line basis based on:
y
either the date on which the employee began employment
y
or the date from which each year of employment is included
in the calculation for the vesting of benefits
In accordance with this regulation, Crédit Agricole CIB sets aside
provisions to cover its retirement and similar benefit obligations
falling within the category of defined-benefit plans.
These obligations are measured on the basis of actuarial, financial
and demographic assumptions, and in accordance with the
projected unit credit method. This charge is calculated based
on the discounted future benefit.
As of fiscal year 2021, Crédit Agricole CIB applies the
determination of the distribution of benefits on a straight-line
basis from the date on which each year of employment is included
in the calculation for the vesting of benefits (i.e. convergence with
the IFRS IC decision of April 2021 on IAS 19). The impact on the
level of actuarial liabilities was €37,335k.
The impact of the first-time application is recognised as an
offsetting entry in Retained Earnings (see Note 15 on Changes
in equity): it amounted to €37,335k, with an offsetting entry of
€184,566k in terms of provisions for pension obligations (see
Note 13 Provisions). There is no impact on surplus plan assets.
Crédit Agricole CIB elected to immediately recognise the actuarial
gains and losses in profit or loss, and accordingly the amount of
the provision is equal to:
y
the present value of the defined benefit obligation at the
reporting date, calculated using the actuarial method recom-
mended by the regulation,
y
minus the fair value of plan assets, as applicable. These may
be represented by an eligible insurance policy. In the event that
the obligation is fully covered by such a policy, the fair value
of the policy is deemed to be the value of the corresponding
obligation, i.e. the amount of the corresponding actuarial liability.
RETIREMENT PLANS – DEFINED
CONTRIBUTION PLANS
There are various mandatory pension plans to which employers
contribute. The funds are managed by independent organisations
and the contributing companies have no legal or implied obligation
to pay additional contributions if the funds do not have sufficient
assets to provide all the benefits corresponding to the services
rendered by staff during the current and previous years.
As a result, Crédit Agricole CIB has no liability in this respect
other than the contributions payable for the past financial year.
The amount of contributions under the terms of these pension
schemes is shown under “Employee expenses”.
1.13 Stock options and subscription to
shares offered to employees as part of
the Company Savings Scheme
SUBSCRIPTIONS TO SHARES AS PART OF
THE COMPANY SAVINGS SCHEME
Subscriptions to Crédit Agricole S.A. shares offered to employees
under the Company Savings Scheme, with a maximum discount
of 30%, do not include a vesting period but may not be sold
or transferred for five years. These subscriptions to shares are
recognised in accordance with provisions relative to capital
increases.
1.14 Extraordinary income and expenses
These comprise income and expenses that are extraordinary in
nature and relate to transactions that do not form part of Crédit
Agricole CIB’s ordinary activities.
1.15 Income tax charge
Generally, only tax that is payable is recognised in the parent
company financial statements.
The tax expense shown in the income statement corresponds
to income tax payable for the financial year. It includes social
security contributions on profits of 3.3%, as well as provisions
for taxes for the year.
Wholly owned, directly or indirectly, by the Crédit Agricole
Group, Crédit Agricole CIB is part of the tax consolidation group
constituted by Crédit Agricole Group and is the head of the Crédit
Agricole CIB sub-group constituted with the subsidiaries that are
members of the tax consolidation group.
Crédit Agricole CIB has signed a tax consolidation agreement
with Crédit Agricole S.A. Under the terms of the agreement, the
deficits generated by all subsidiaries of the Crédit Agricole CIB
sub-Group will be compensated by Crédit Agricole.
When tax credits on income from securities portfolios and
amounts receivable are effectively used to pay income tax due
for the year, they are recognised under the same heading as the
income with which they are associated. The corresponding tax
charge is kept under the heading “Income tax charge” in the
income statement.
Given that the legislative intent when introducing the tax credit
for competitiveness and employment (
Crédit d’Impôt pour
la Compétitivité et l’Emploi
– CICE) was to reduce employee
expenses, Crédit Agricole CIB has chosen to recognise the
CICE (Article 244 quater C of the French General Tax Code) as
a reduction in employee expenses rather than a tax reduction.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 2: LOANS AND RECEIVABLES DUE FROM CREDIT INSTITUTIONS
- ANALYSIS BY RESIDUAL MATURITY
€ million
31.12.2021
31.12.2020
≤ 3 months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total principal
Accrued
interest
Total
Total
Loans and receivables:
-
-
-
-
-
-
-
-
- Demand
4,683
‐
‐
‐
4,683
14
4,697
3,034
- Time
22,829
11,511
8,024
4,422
46,786
350
47,136
27,638
Pledged securities
-
-
-
-
-
-
-
-
Securities bought under
repurchases agreements
44,826
7,538
2,667
‐
55,031
67
55,098
53,382
Subordinated debt
‐
‐
‐
323
323
‐
323
306
Total
72,338
19,049
10,691
4,745
106,823
431
107,254
84,360
Impairment
-
-
-
-
(313)
(66)
(379)
(354)
Net carrying amount
1
-
-
-
-
106,510
365
106,875
84,006
1
Among related parties, the main counterparty is Crédit Agricole S.A. (€31,049 million at 31.12.2021 and €15,369 million at 31.12.2020).
NOTE 3: LOANS AND RECEIVABLES DUE FROM CUSTOMERS
At 31 December 2021, in line with the economic stimulus measures implemented in response to the Covid-19 crisis, outstanding
government-backed loans granted by Crédit Agricole CIB amounted to €1,995 million.
3.1 Analysis by residual maturity
€ million
31.12.2021
31.12.2020
≤ 3 months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total principal
Accrued
interest
Total
Total
Trade receivables
9,931
5,054
8,762
2,183
25,930
60
25,990
23,476
Other customer loans
1
22,612
12,567
49,050
13,848
98,077
385
98,462
91,695
Pledged securities
‐
‐
‐
‐
‐
‐
‐
‐
Securities bought under
repurchases agreements
52,235
11,656
3,232
‐
67,123
22
67,145
75,635
Current accounts in debit
1,645
‐
‐
‐
1,645
4
1,649
400
Impairment
-
-
-
-
(1,489)
(210)
(1,699)
(1,747)
Net carrying amount
1
-
-
-
-
191,286
261
191,547
189,459
1
Subordinated loans granted to customers amounted to €310 million at 31.12.2021 compared to €350 million at 31.12.2020.
3.2 Analysis by geographic area of beneficiaries
€ million
31.12.2021
31.12.2020
France (including overseas departements and territories)
35,623
36,693
Other EU countries
29,005
42,121
Rest of Europe
19,095
5,945
North America
35,218
33,881
Central and South America
13,763
16,624
Africa and Middle-East
11,878
10,610
Asia and Pacific (excl. Japan)
20,168
18,484
Japan
28,025
26,359
Supranational organisations
‐
‐
Total principal
192,775
190,717
Accrued interest
471
489
Impairment
(1,699)
(1,747)
Net carrying amount
191,547
189,459
394
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
3.3 Doubtful loans, bad debts and impairment by geographic are
€ million
31.12.2021
Gross
outstandings
O/W doubtful
loans and
receivables
O/W bad debts
Impairment of
doubtful loans and
receivables
Impairments of
bad debts
Coverage %
France (including overseas
departements and territories)
35,623
464
170
(143)
(168)
49.05%
Other EU countries
29,005
250
188
(124)
(174)
68.04%
Rest of Europe
19,095
255
23
(41)
(23)
23.02%
North America
35,218
126
53
(25)
(53)
43.58%
Central and South America
13,763
696
335
(160)
(305)
45.10%
Africa and Middle-East
11,878
119
103
(42)
(95)
61.71%
Asia and Pacific (excl. Japan)
20,168
153
76
(49)
(69)
51.53%
Japan
28,025
179
‐
(17)
‐
9.50%
Supranational organisations
‐
‐
‐
‐
‐
-
Accrued interest
471
90
120
(90)
(120)
100.00%
Net carrying amount
193,246
2,332
1,068
(691)
(1,007)
49.94%
€ million
31.12.2020
Gross
outstandings
O/W doubtful
loans and
receivables
O/W bad debts
Impairment of
doubtful loans and
receivables
Impairments of
bad debts
Coverage %
France (including overseas
departements and territories)
36,693
423
185
(112)
(184)
48.68%
Other EU countries
42,121
460
222
(197)
(215)
60.41%
Rest of Europe
5,945
154
7
(46)
(7)
32.92%
North America
33,881
234
‐
(69)
‐
29.49%
Central and South America
16,624
642
283
(162)
(223)
41.62%
Africa and Middle-East
10,610
144
163
(22)
(151)
56.35%
Asia and Pacific (excl. Japan)
18,484
173
89
(45)
(82)
48.47%
Japan
26,359
278
‐
(12)
‐
4.32%
Supranational organisations
‐
‐
‐
‐
‐
-
Accrued interest
489
92
128
(92)
(128)
100.00%
Net carrying amount
191,206
2,600
1,077
(757)
(990)
47.51%
3.4 Analysis by customer type
€ million
31.12.2021
Gross outstandings
O/W doubtful loans and
receivables
O/W bad debts
Impairment of doubtful
loans and receivables
Impairments of bad
debts
Individual customers
‐
‐
‐
‐
‐
Farmers
‐
‐
‐
‐
‐
Other small businesses
‐
‐
‐
‐
‐
Financial institutions
78,615
201
205
(97)
(188)
Corporates
105,449
2,041
710
(504)
(685)
Local authorities
8,711
‐
33
‐
(14)
Other customers
‐
‐
‐
‐
‐
Accrued interest
471
90
120
(90)
(120)
Carrying amount
193,246
2,332
1,068
(691)
(1,007)
€ million
31.12.2020
Gross outstandings
O/W doubtful loans and
receivables
O/W bad debts
Impairment of doubtful
loans and receivables
Impairments of bad
debts
Individual customers
427
‐
‐
‐
‐
Farmers
‐
‐
‐
‐
‐
Other small businesses
‐
‐
‐
‐
‐
Financial institutions
83,519
203
199
(69)
(173)
Corporates
96,380
2,305
706
(596)
(675)
Local authorities
10,391
‐
44
‐
(14)
Other customers
‐
‐
‐
‐
‐
Accrued interest
489
92
128
(92)
(128)
Carrying amount
191,206
2,600
1,077
(757)
(990)
395
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 4: TRADING, SHORT-TERM INVESTMENT, LONG-TERM
INVESTMENT AND MEDIUM-TERM PORTFOLIO SECURITIES
€ million
31.12.2021
31.12.2020
Trading
securities
2
Short-term
investment
securities
Medium-term
portfolio securities
Long-term
investment
securities
Total
Total
Treasury Bills and similar securities
14,748
1,573
‐
6,856
23,177
21,463
O/W residual net premium
‐
(7)
‐
(5)
(12)
(12)
O/W residual net discount
‐
11
‐
47
58
99
Accrued interest
1
9
‐
6
16
26
Impairment
‐
‐
‐
‐
‐
‐
Net carrying amount
14,749
1,582
‐
6,862
23,193
21,489
Bonds and other fixed income securities
1
10,214
11,167
‐
11,691
33,072
28,512
Issued by public bodies
2,704
4,167
‐
3,199
10,070
8,185
Other issuers
7,510
7,000
‐
8,492
23,002
20,327
O/W residual net premium
‐
(41)
‐
(16)
(57)
(54)
O/W residual net discount
‐
28
‐
60
88
99
Accrued interest
‐
49
‐
42
91
93
Impairment
‐
(4)
‐
‐
(4)
(4)
Net carrying amount
10,214
11,212
‐
11,733
33,159
28,601
Equities and other equity variable-income
securities
6,850
175
10
‐
7,035
5,839
Accrued interest
‐
‐
‐
‐
‐
‐
Impairment
‐
(38)
‐
‐
(38)
(41)
Net carrying amount
6,850
137
10
‐
6,997
5,798
Total
31,813
12,931
10
18,595
63,349
55,888
Estimated value
31,813
12,940
17
17,936
62,706
56,087
1
Subordinated loans in the portfolio amount to €33 million at 31.12.2021 compared to €40 million at 31.12.2020.
2
Apart from borrowed trading securities (including, if need be, borrowed securities that have been lent and classified as “trading securities on loan”) presented in deduction of
payables representative of borrowed securities value shown on the liability side of the balance sheet (Cf. Note 20 Debt securities clearing).
Disposal of investment securities prior to the maturity, in accordance with the exemption clauses laid down by the ANC Regulation 2014-07, amounted to €445 million for
Crédit Agricole CIB. The added value gained from it amounted to €6 million.
4.1 Reclassification
At 01.10.2008, Crédit Agricole CIB carried out reclassifications of securities as permitted by CRC Regulation 2008-17. There were no
additional reclassifications of securities between 2009 and 2021. At 31.12.2021, the balance sheet value was nil. Changes over the year
are detailed below.
CONTRIBUTION TO INCOME OF TRANSFERRED ASSETS SINCE RECLASSIFICATION
The contribution from assets transferred to net income for the financial year since the date of reclassification comprises all profits, losses,
income and expenses recognised in the income statement and other comprehensive income or expenses.
€ million
Pre-tax impact on 2009 earnings since reclassification (Assets reclassified before 2009)
Cumulative impact at 31.12.2020
2021 Impact
Cumulative impact at 31.12.2021
Recognized income
and expenses
If the asset had been
kept in its original
category (change in fair
value)
Recognized income
and expenses
If the asset had been
kept in its original
category (change in fair
value)
Recognized income
and expenses
If the asset had been
kept in its original
category (change in fair
value)
From trading to
investment securities
(99)
(100)
-
-
(99)
(100)
396
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
4.2 Breakdown of listed and unlisted securities between fixed income and variable-income
securities
€ million
31.12.2021
31.12.2020
Bonds and
other fixed
income
securities
Treasury bills
and similar
items
Equities and
other variable
income
securities
Total
Bonds and
other fixed
income
securities
Treasury bills
and similar
items
Equities and
other variable
income
securities
Total
Listed securities
32,796
23,177
6,946
62,919
28,326
21,463
5,824
55,613
Unlisted securities
276
‐
89
365
186
‐
15
201
Accrued interest
91
16
‐
107
93
26
‐
119
Impairment
(4)
‐
(38)
(42)
(4)
‐
(41)
(45)
Net carrying amount
33,159
23,193
6,997
63,349
28,601
21,489
5,798
55,888
4.3 Treasury bills, bonds and other fixed-income securities - Analysis by residual maturity
€ million
31.12.2021
31.12.2020
≤ 3 months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total principal
Accrued interest
Total
Total
Bonds and other fixed income securities
Gross amount
4,311
4,870
14,766
9,125
33,072
91
33,163
28,605
Impairment
‐
‐
‐
‐
‐
‐
(4)
(4)
Net carrying amount
4,311
4,870
14,766
9,125
33,072
91
33,159
28,601
Treasury bills and similar items
Gross amount
3,642
4,034
4,975
10,526
23,177
16
23,193
21,489
Impairment
‐
‐
‐
‐
‐
‐
‐
‐
Net carrying amount
3,642
4,034
4,975
10,526
23,177
16
23,193
21,489
4.4 Treasury bills, bonds and other fixed-income securities - Analysis by geographic area
€ million
31.12.2021
31.12.2020
France (including overseas departements and territories)
12,642
12,393
Other EU countries
17,860
20,119
Other european countries
4,328
754
North America
8,930
7,427
Central and South America
290
112
Africa and Middle-East
640
546
Asia and Pacific (excl. Japan)
7,865
5,936
Japan
3,500
2,650
Supranational organisations
194
38
Total principal
56,249
49,975
Accrued interest
107
119
Impairment
(4)
(4)
Net carrying amount
56,352
50,090
397
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 5: EQUITY INVESTMENTS AND SUBSIDIARIES
Company
Share capital
Share
capital
Premiums
reserves
and retained
earnings
before ap-
propriation
of earnings
Percent-
age of
share
capital
owned
Carrying
amounts of
securities
owned
Loans and
receivables
outstanding
granted
by the
Company
and not yet
paid back
Guarantees
and other
commitments
given by the
Company
NBI or reve-
nue (ex VAT)
for the year
ended (from
audited
financial
statements
of 2019)
Net income
for the year
ended
Dividends
received by
the Company
during the
financial year
In million
of original
currency
units
In million
of original
currency
units
In %
€ million
In million
of original
currency
units
In million
of original
currency
units
In million
of original
currency
units
In million
of original
currency
units
€ million
I - Detailed information on investments whose gross carrying amount exceeds 1% of Crédit Agricole CIB’s share capital
A - Subsidiaries (more than 50% owned by Crédit Agricole CIB)
BANCO CA BRASIL SA
BRL
2,107
237
82
434
-
USD 3
2,534
64
2
CA GLOBAL PARTNERS Inc
USD
723
269
100
535
-
-
-
46
-
CA PRIVATE BANKING
EUR
2,650
124
100
2,650
EUR 340
-
108
27
-
CA-CIB (China) Limited
CNY
4,799
593
100
765
CNY 6 600
CNY 16 453
EUR 3 USD
30 PKR 389
SEK 3 CHF 2
DZD 121
663
134
-
CA-CIB Global Banking
EUR
145
126
100
243
-
-
2
(32)
-
CASA BV
JPY
12,691
18,276
100
247
-
-
10,395
4,269
-
Subtotal (1)
-
-
-
-
4,874
-
-
-
-
-
B - Banking affiliates (10 and 50% owned by Crédit Agricole CIB)
-
-
-
-
-
-
-
-
-
-
-
Subtotal (2)
-
-
-
-
-
-
-
-
-
-
II - General information relating to other subsidiaries and affiliates
A - Subsidiaries not covered in I. above (3)
443
-
-
-
-
-
a) French subsidiaries (aggregate)
164
-
-
-
-
-
b) Foreign subsidiaries (aggregate)
279
-
-
-
-
-
B - Affiliates not covered in I. above (4)
238
-
-
-
-
-
a) French affiliates (aggregate)
58
-
-
-
-
-
b) Foreign affiliates (aggregate)
180
-
-
-
-
-
Total associates (1) + (2) + (3) + (4)
5,555
-
-
-
-
-
398
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
5.1 Estimated value of equity investments
€ million
31.12.2021
31.12.2020
Net carrying
amount
Estimated value
Net carrying
amount
Estimated value
Investments in subsidiaries and affiliates
Unlisted securities
6,366
7,377
7,145
8,694
Listed securities
‐
‐
‐
‐
Advances available for consolidation
‐
‐
‐
‐
Accrued interest
1
‐
3
‐
Impairment
(1,035)
‐
(907)
‐
Net carrying amount
5,332
7,377
6,241
8,694
Equity investments and other long-term investment securities
Equity investments
-
-
-
-
Unlisted securities
280
198
304
179
Listed securities
75
100
101
240
Advances available for consolidation
‐
‐
‐
‐
Accrued interest
‐
‐
‐
‐
Impairment
(139)
‐
(171)
‐
Sub-total of equity investments
216
298
234
419
Other long term equity investments
-
-
-
-
Unlisted securities
9
10
9
10
Listed securities
‐
‐
‐
‐
Advances available for consolidation
‐
‐
‐
‐
Accrued interest
‐
‐
‐
‐
Impairment
(2)
‐
(1)
‐
Sub-total of long term equity investments
7
10
8
10
Overseas branch allocations
‐
‐
‐
‐
Net carrying amount
223
308
242
429
Total of equity investments
5,555
7,685
6,483
9,123
As regards listed securities, the market value shown in the above table is the quoted price of the shares on their trading market at
31 December. It may not be representative of the realisable value of the securities.
€ million
31.12.2021
31.12.2020
Net carrying
amount
Net carrying
amount
Total gross value
Unlisted securities
6,655
7,458
Listed securities
75
101
Total
6,730
7,559
399
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 6: MOVEMENTS IN FIXED ASSETS
€ million
31.12.2020
Change in
scope
Merger
Increase
(acquisitions)
Decrease
(disposals,
maturity)
Translation
difference
Other
movements
31.12.2021
Equity investments
Gross amount
405
‐
(11)
2
(47)
6
‐
355
Impairment
(171)
‐
9
(2)
25
‐
‐
(139)
Other long-term equity investment
Gross amount
9
‐
‐
‐
‐
‐
‐
9
Impairment
(1)
‐
‐
(1)
‐
‐
‐
(2)
Overseas branch allocations
‐
‐
‐
‐
‐
‐
‐
‐
Subtotal
242
‐
(2)
(1)
(22)
6
‐
223
Investments in subsidiaries and affiliates
Gross amount
7,145
‐
(1,150)
368
‐
3
‐
6,366
Impairment
(907)
‐
‐
(177)
47
2
‐
(1,035)
Advances available for
consolidation
‐
‐
‐
‐
‐
‐
‐
‐
Gross amount
‐
‐
‐
‐
‐
‐
‐
‐
Impairment
‐
‐
‐
‐
‐
‐
‐
‐
Accrued interest
3
‐
‐
2
(4)
‐
‐
1
Net carrying amount
6,483
‐
(1,152)
192
21
11
‐
5,555
Intangible assets
221
‐
‐
91
(71)
‐
‐
241
Gross amount
544
‐
‐
145
(81)
6
‐
614
Depreciation
(323)
‐
‐
(54)
10
(6)
‐
(373)
Property, plant and
equipment
80
‐
‐
1
(1)
‐
‐
80
Gross amount
446
‐
‐
19
(7)
23
‐
481
Depreciation
(366)
‐
‐
(18)
6
(23)
‐
(401)
Financial lease and similar
operations
‐
‐
‐
‐
‐
‐
‐
‐
Gross amount
‐
‐
‐
‐
‐
‐
‐
‐
Depreciation
‐
‐
‐
‐
‐
‐
‐
‐
Net carrying amount
301
‐
‐
92
(72)
‐
‐
321
400
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 7: ACCRUALS, PREPAYMENTS AND SUNDRY ASSETS
€ million
31.12.2021
31.12.2020
Other asset
1
40,030
53,956
Financial options bought
16,439
23,127
Collective management of Livret de Développement Durable (LDD) saving account securities
‐
‐
Miscellaneous debtors
2
22,553
30,711
Settlement accounts
1,038
118
Due from shareholders - Unpaid capital
‐
‐
Accruals and prepayments
96,362
126,963
Items in course of transmission
‐
‐
Adjustement accounts
94,814
126,451
Accrued income
1,347
383
Prepaid expenses
166
86
Unrealised losses and deferred losses on financial instruments
‐
‐
Bond issue and redemption premiums
‐
‐
Other accrual prepayments and sundry assets
35
43
Net carrying amount
136,392
180,919
1
The amounts shown are net of impairment and include accrued interest.
2
Including €219 million for the contribution to the Guarantee and Resolution Fund paid in the form of a security deposit.
This deposit is usable by the Resolution and Guarantee Fund, at any time and without conditions, to finance an intervention
NOTE 8: IMPAIRMENT LOSSES DEDUCTED FROM ASSETS
€ million
31.12.2020
Change in
scope
Merger
Depre-
ciation
charges
Reversals
and
utilisations
Translation
differences
Other
movements
31.12.2021
Cash, money-market and
interbank items
354
‐
‐
2
(1)
24
‐
379
Loans and receivables due
from customers
1,747
‐
‐
431
(577)
86
12
1,699
Securities transactions
45
‐
‐
19
(23)
1
‐
42
Participating interests and other long-
term investments
1,079
‐
(9)
180
(72)
(2)
‐
1,176
Other
189
‐
‐
5
(9)
15
‐
200
Total
3,414
‐
(9)
637
(682)
124
12
3,496
NOTE 9: DUE TO CREDIT INSTITUTIONS - ANALYSIS BY RESIDUAL
MATURITY
€ million
31.12.2021
31.12.2020
≤ 3months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total principal
Accrued interest
Total
Total
Accounts and overdrafts
‐
‐
‐
‐
‐
‐
‐
‐
Demand
8,486
‐
‐
‐
8,486
‐
8,486
4,902
Time
29,882
6,605
33,988
8,424
78,899
151
79,050
65,510
Pledged securities
‐
‐
‐
‐
‐
‐
‐
‐
Securities sold under repurchase
agreements
19,097
2,768
6,280
50
28,195
23
28,218
14,344
Carrying amount
1
-
-
-
-
‐
‐
115,754
84,756
1
Of which transactions carried out with Crédit Agricole S.A : €54,984 million at 31.12.2021 compared to €43,795 million at 31.12.2020.
401
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 10: DUE TO CUSTOMERS
10.1 Analysis by residual maturity
€ million
31.12.2021
31.12.2020
≤ 3 months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total principal
Accrued interest
Total
Total
Current accounts in credit
52,022
‐
‐
‐
52,022
5
52,027
53,968
Other accounts due to
customers
71,502
5,782
2,846
2,516
82,646
40
82,686
77,470
Securities sold under repurchase
agreements
60,942
2,000
250
3
63,195
42
63,237
75,883
Carrying amount
-
-
-
-
-
-
197,950
207,321
10.2 Analysis by geographic area
€ million
31.12.2021
31.12.2020
France (including overseas departements and territories)
39,681
41,577
Other EU countries
38,566
46,580
Rest of Europe
26,391
4,676
North America
46,521
66,026
Central and South America
12,527
18,492
Africa and Middle-East
5,009
2,877
Asia and Pacific (excl. Japan)
12,810
9,418
Japan
16,358
17,599
Supranational organisations
‐
‐
Total principal
197,863
207,245
Accrued interest
87
76
Carrying amount
197,950
207,321
10.3 Analysis by customer type
€ million
31.12.2021
31.12.2020
Individuals customers
15
432
Farmers
‐
‐
Other small businesses
‐
‐
Financial institutions
72,332
100,492
Corporates
109,576
99,654
Local authorities
15,940
6,667
Other customers
‐
‐
Total principal
197,863
207,245
Accrued interest
87
76
Carrying amount
197,950
207,321
402
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 11: DEBT SECURITIES
11.1 Analysis by residual maturity
€ million
31.12.2021
31.12.2020
≤ 3months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total
principal
Accrued
interest
Total
Total
Interest-bearing notes
31
‐
‐
‐
31
‐
31
232
Money-market instruments
‐
‐
‐
‐
‐
‐
‐
‐
Negotiable debt securities:
12,057
7,796
4,058
9,197
33,108
66
33,174
26,923
Issued in France
709
1,110
4,058
9,197
15,074
64
15,138
12,664
Issued abroad
11,348
6,686
‐
‐
18,034
2
18,036
14,259
Bonds
‐
650
2,813
754
4,217
2
4,219
4,103
Other debt instruments
‐
‐
‐
‐
‐
‐
‐
‐
Carrying amount
-
-
-
-
37,356
68
37,424
31,258
11.2 Bonds
€ million
Outstanding schedule at 31.12.2021
Outstanding at
31.12.2021
Outstanding at
31.12.2020
≤ 1 year
> 1 year ≤ 5 years
> 5 years
Euro
650
2,070
700
3,420
3,420
Fixed rate
‐
‐
‐
‐
‐
Variable rate
650
2,070
700
3,420
3,420
Other currencies
‐
743
54
797
681
Fixed rate
‐
96
54
150
87
Variable rate
‐
647
‐
647
594
Total principal
650
2,813
754
4,217
4,101
Fixed rate
‐
96
54
150
87
Variable rate
650
2,717
700
4,067
4,014
Related payables
‐
1
1
2
2
Carrying amount
-
-
-
4,219
4,103
NOTE 12: ACCRUALS, DEFERRED INCOME AND SUNDRY
LIABILITIE
€ million
31.12.2021
31.12.2020
Other liabilities
1
80,293
88,046
Counterparty transactions (trading securities)
41,791
36,568
Liabilities relating to stock lending transactions
2
11
2
Optional instruments sold
18,321
24,330
Miscellaneous creditors
18,935
26,730
Settlement accounts
1,235
416
Payments in process
‐
‐
Other
‐
‐
Accruals and deferred income
98,674
126,261
Items in course of transmission
518
152
Adjustment accounts
95,217
123,635
Unearned income
393
349
Accrued expenses
2,157
1,951
Unrealised gains and deferred gains on financial instrument
‐
‐
Other accruals prepayments and sundry assets
389
174
Carrying amount
178,967
214,307
1
Amounts include accrued interests.
2
Liabilities relating to stock lending transactions are shown after deduction of borrowed trading securities (including, if need be, borrowed securities that have been lent and
classified as “trading securities on loan”) (Cf. Note 20 Debt securities clearing).
403
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 13: PROVISIONS
€ million
31.12.2020
Change in
scope
3
Merger
Deprecia-
tion charges
Reversals
and
utilisations
Translation
differences
Other
movements
31.12.2021
Country risks
452
‐
‐
38
(59)
14
‐
445
Financing commitment execution risks
325
‐
‐
407
(323)
(19)
‐
390
Employee retirement and similar benefits
235
(37)
‐
14
(30)
3
‐
185
Financial instruments
‐
‐
‐
‐
‐
‐
‐
‐
Litigations and others
1
706
‐
‐
34
(184)
5
‐
561
Other provisions
2
1,852
‐
‐
763
(864)
1
‐
1,752
Carrying amount
3,570
(37)
‐
1,256
(1,460)
4
‐
3,333
1
Of which: - tax disputes: €265 million, - customer litigation: €279 million, - social litigation: €17 million.
2
Including, for Crédit Agricole CIB Paris : - other risks and expenses: €1,304 million.
3
Impact due to the modification done on 5 November 2021 of recommendation 2013-02 about the calculation of pension commitments and similar benefits.
13.1 Tax audits
CRÉDIT AGRICOLE CIB PARIS TAX AUDIT
After an audit of the financial statements for financial years 2017
and 2018, adjustments were carried out on Crédit Agricole
CIB as part of a proposed adjustment received at the end of
December 2021. Crédit Agricole CIB is challenging the proposed
adjustments. A provision was recognised to cover the estimated
risk.
13.2 Inquiries and requests for information
from regulators
OFFICE OF FOREIGN ASSETS CONTROL
(OFAC)
In October 2015, Crédit Agricole S.A. and its subsidiary Crédit
Agricole Corporate and Investment Bank (Crédit Agricole CIB)
reached agreements with the US and New York authorities
that had been conducting investigations regarding US dollar
transactions with countries subject to US economic sanctions.
The events covered by this agreement took place between 2003
and 2008.
Crédit Agricole CIB and Crédit Agricole S.A., which cooperated
with the US and New York authorities in connection with their
investigations, have agreed to pay a total penalty amount of
$787.3 million (i.e. €692.7 million). The payment of this penalty
has been allocated to the pre-existing reserve that had already
been taken and, therefore, has not affected the accounts for the
second half of 2015.
The agreements with the Board of Governors of the Federal
Reserve System (Fed) and the New-York State Department of
Financial Services (NYDFS) are with CASA and Crédit Agricole
CIB. The agreement with the Office of Foreign Assets Control
(OFAC) of the US Department of the Treasury is with Crédit
Agricole CIB. Crédit Agricole CIB also entered into separate
deferred prosecution agreements (DPAs) with the United States
Attorney’s Office for the District of Columbia (USAO) and the
District Attorney of the County of New York (DANY), the terms
of which are three years. On October 19, 2018 the two deferred
prosecution agreements with USAO and DANY ended at the end
of the three year period, Crédit Agricole CIB having complied with
all its obligations under the DPAs.
Crédit Agricole continues to strengthen its internal procedures and
its compliance programs regarding laws on international sanctions
and will continue to cooperate fully with the US and New York
authorities with its home regulators, the European Central Bank
and the French Regulatory and Resolution Supervisory Authority
(ACPR), and with the other regulators across its worldwide
network.
Pursuant to the agreements with NYDFS and the US Federal
Reserve, Crédit Agricole’s compliance program is subject to
regular reviews to evaluate its effectiveness, including a review
by an independent consultant appointed by NYDFS for a term
of one year and annual reviews by an independent consultant
approved by the Federal Reserve.
EURIBOR/LIBOR AND OTHER INDEXES
Crédit Agricole S.A. and its subsidiary Crédit Agricole CIB, in their
capacity as contributors to a number of interbank rates, have
received requests for information from a number of authorities as
part of investigations into: (i) the calculation of the Libor (London
Interbank Offered Rates) in a number of currencies, the Euribor
(Euro Interbank Offered Rate) and certain other market indices;
and (ii) transactions connected with these rates and indices. These
demands covered several periods from 2005 to 2012.
As part of its cooperation with the authorities, Crédit Agricole S.A.
and its subsidiary Crédit Agricole CIB carried out investigations
in order to gather the information requested by the various
authorities and in particular the American authorities – the DOJ
(Department of Justice) and CFTC (Commodity Future Trading
Commission) – with which they are in discussions. It is currently
not possible to know the outcome of these discussions, nor the
date when they will be concluded.
Furthermore, Crédit Agricole CIB is currently under investigation
opened by the Attorney General of the State of Florida on both
the Libor and the Euribor.
Following its investigation and an unsuccessful settlement
procedure, on 21 May 2014, the European Commission sent
a statement of objection to Crédit Agricole S.A. and to Crédit
Agricole CIB pertaining to agreements or concerted practices for
the purpose and/or effect of preventing, restricting or distorting
competition in derivatives related to the Euribor.
In a decision dated 7 December 2016, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB
€114,654,000 for participating in a cartel in euro interest rate
derivatives. Crédit Agricole S.A. and Crédit Agricole CIB are
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
challenging this decision and have asked the General Court of
the European Union to overturn it.
The Swiss competition authority, COMCO, has conducted an
investigation into the market for interest rate derivatives, including
the Euribor, with regard to Crédit Agricole S.A. and several Swiss
and international banks. This investigation was closed following a
settlement procedure under which Crédit Agricole S.A agreed to
pay a penalty of CHF 4.465.701 and proceedings costs amounting
to CHF 187.012 without any admission of guilt. Moreover, in June
2016 the South Korean competition authority (KFTC) decided to
close the investigation launched in September 2015 into Crédit
Agricole CIB and the Libor index on various currencies, Euribor
and Tibor indices. The investigation into certain foreign exchange
derivatives (ABS-NDF) has been closed by the KFTC according to
a decision notified to Crédit Agricole CIB on 20 December 2018.
Concerning the two class actions in the United States of America
in which Crédit Agricole S.A. and Crédit Agricole CIB have been
named since 2012 and 2013 along with other financial institutions,
both as defendants in one (“Sullivan” for the Euribor) and only
Crédit Agricole S.A. as defendant for the other (“Lieberman” for
Libor), the “Lieberman” class action is at the preliminary stage that
consists in the examination of its admissibility; proceedings are
still suspended before the US District Court of New York State.
Concerning the“Sullivan” class action, Crédit Agricole S.A. and
Crédit Agricole CIB introduced a motion to dismiss the applicants’
claim. The US District Court of New York State upheld the motion
to dismiss regarding Crédit Agricole S.A. and Crédit Agricole
CIB in first instance. On 14 June 2019, the plaintiffs appealed
this decision.
Since 1 July 2016, Crédit Agricole S.A. and Crédit Agricole CIB,
together with other banks, are also party to a new class action suit
in the United States (“Frontpoint”) relating to the SIBOR (Singapore
Interbank Offered Rate) and SOR (Singapore Swap Offer Rate)
indices. After having granted a first motion to dismiss filed by
Crédit Agricole S.A. and Crédit Agricole CIB, the New York Federal
District Court, ruling on a new request by the plaintiffs, excluded
Crédit Agricole S.A. from the Frontpoint case on the grounds
that it had not contributed to the relevant indexes. The Court
considered, however, taking into account recent developments
in case law, that its jurisdiction could apply to Crédit Agricole CIB,
as well as to all the banks that are members of the SIBOR index
panel. The allegations contained in the complaint regarding the
SIBOR/USD index and the SOR index were also rejected by the
court, therefore the index SIBOR/Singapore dollar alone is still
taken into account. On 26 December, the plaintiffs filed a new
complaint aimed at reintroducing into the scope of the Frontpoint
case the alleged manipulations of the SIBOR and SOR indexes
that affected the transactions in US dollars. Crédit Agricole CIB,
alongside the other defendants, objected to this new complaint
at the hearing held on 2 May 2019 before the New York Federal
District Court. On July 26, 2019, the Federal Court granted the
defendants’ motion to dismiss. The plaintiffs filed a notice of
appeal on August 26, 2019.
On March 17, 2021, a three-judge panel of the Court of Appeal
of the 2
nd
Circuit reversed the dismissal and returned the case to
the District Court. The defendants, including Crédit Agricole CIB,
requested the Second Circuit Court to rehear the case “en banc”
(all the active judges of the Court). This motion was denied by
the Second Circuit Court on May 6, 2021. Another motion was
filed on May 12, 2021 by the defendants seeking a stay of this
decision remanding the case to the District Court, which was
rejected on May 24, 2021. On October 1, 2021, the defendants
filed a petition for writ of certiorari with the US Supreme Court,
which decided on January 10, 2022 not to hear the case. A new
petition, currently under review, has been filed by the defendants
before the District Court in an attempt to stop this action. These
class actions are civil actions in which the plaintiffs claim that they
are victims of the methods used to set the Euribor, Libor, SIBOR
and SOR rates, and seek repayment of the sums they allege were
unlawfully received, as well as damages and reimbursement of
costs and fees paid.
BONDS SSA
Several regulators requested information to Crédit Agricole S.A.
and to Crédit Agricole CIB for investigations relating to activities
of different banks involved in the secondary trading of Bonds SSA
(Supranational, Sub-Sovereign and Agencies) denominated in
American dollars. Through the cooperation with these regulators,
Crédit Agricole CIB proceeded to internal inquiries to gather
the required information available. On 20 December 2018, the
European Commission issued a Statement of Objections to
a number of banks including Crédit Agricole S.A. and Crédit
Agricole CIB within its inquiry on a possible infringement of rules
of European Competition law in the secondary trading of Bonds
SSA denominated in American dollars. Crédit Agricole S.A. and
Crédit Agricole CIB became aware of these objections and issued
a response on 29 March 2019, followed by an oral hearing on
10-11 July 2019.
In a decision dated 28 April 2021, the European Commission
jointly fined Crédit Agricole S.A. and Crédit Agricole CIB
€3,993,000 for participating in a cartel in the secondary trading
market of Bonds SSA denominated in American dollars. On 7 July
2021, Crédit Agricole S.A. and Crédit Agricole CIB appealed this
decision to the General Court of the European Union.
Crédit Agricole CIB was included with other banks in a putative
consolidated class action before the United States District
Court for the Southern District of New York. That action was
dismissed on 29 August 2018 on the basis that the plaintiffs failed
to allege an injury sufficient to give them standing. However the
plaintiffs were given an opportunity to attempt to remedy that
defect. The plaintiffs filed an amended complaint on 7 November
2018. Crédit Agricole CIB as well as the other defendants filed
motions to dismiss the amended complaint. An order issued on
30 September 2019 dismissed the class action against CACIB
for lack of personal jurisdiction and, in a subsequent ruling, the
Court held that the plaintiffs had in any event failed to state a
claim for violation of US antitrust law. In June 2020, the plaintiffs
took an appeal from both of the Court’s orders. On 19 July 2021,
the Second Circuit Court of Appeals affirmed the district court’s
holding that plaintiffs had failed to state a claim for violation of
US antitrust law. Plaintiffs’ deadline to seek further review of the
district court’s decision from the US Supreme Court passed on
2 December 2021 without plaintiffs taking any further action, and
the action therefore is concluded.
On 7 February 2019, a second class action was filed against
CACIB and the other defendants named in the class action
already pending before the United States District Court for
the Southern District of New York. In July 2020, the plaintiffs
voluntarily discontinued the action but the claim could be revived.
On 11 July 2018, Crédit Agricole S.A. and Crédit Agricole CIB
were notified with other banks of a class action filed in Canada,
before the Ontario Superior Court of Justice. Another class action
has been filed before the Federal Court of Canada. The action
before the Ontario Superior Court of Justice was dismissed on
19 February 2020.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
O’SULLIVAN AND TAVERA
On November 9, 2017, a group of individuals, (or their families
or estates), who claimed to have been injured or killed in attacks
in Iraq filed a complaint (“O’Sullivan I”) against several banks
including Crédit Agricole S.A., and its subsidiary Crédit Agricole
Corporate Investment Bank (Crédit Agricole CIB), in US Federal
District Court in New York.
On December 29, 2018, the same group of individuals, together
with 57 new plaintiffs, filed a separate action (“O’Sullivan II”)
against the same defendants.
On December 21, 2018, a different group of individuals filed a
complaint (“Tavera”) against the same defendants.
All three complaints allege that Crédit Agricole S.A., Crédit
Agricole CIB, and other defendants conspired with Iran and
its agents to violate US sanctions and engage in transactions
with Iranian entities in violation of the US Anti-Terrorism Act and
the Justice Against Sponsors of Terrorism Act. Specifically, the
complaints allege that Crédit Agricole S.A., Crédit Agricole CIB,
and other defendants processed US dollar transactions on behalf
of Iran and Iranian entities in violation of sanctions administered
by the US Treasury Department’s Office of Foreign Assets Control,
which allegedly enabled Iran to fund terrorist organizations that,
as is alleged, attacked plaintiffs. The plaintiffs are seeking an
unspecified amount of compensatory damages.
On 2 March 2018, Crédit Agricole CIB and other defendants filed a
motion to dismiss the O’ Sullivan I Complaint. On 28 March 2019,
the Court granted defendants’ motion to dismiss. On 22 April
2019, the plaintiffs filed a motion to amend their complaint.
Defendants submitted an opposition to that motion on 20 May
2019 and plaintiffs filed a reply on 10 June 2019. On 25 February
2020 the plaintiffs’ motion to amend their complaint was denied
and their original complaint dismissed with prejudice.
On 28 May 2020, plaintiffs filed a motion requesting that the court
enter a final judgment against defendants to allow an appeal. On
11 June 2020, the defendants filed an opposition to plaintiffs’
motion, and plaintiffs filed a reply brief on 18 June 2020. On
29 June 2021, the court denied plaintiffs’ motion.
On 28 July 2021, the court stayed the O’Sullivan I action pending
a decision in the appeal in a related case, Freeman vs. HSBC
Holdings, PLC, No. 19-3970 (2d. Cir.). (The O’Sullivan II and
Tavera cases have been previously stayed pending that appeal.)
INTERCONTINENTAL EXCHANGE, INC.
(“ICE”)
On January 15, 2019 a class action (“Putnam Bank”) was filed
before a federal court in New-York (US District Court Southern
District of New-York) against the Intercontinental Exchange, Inc.
(“ICE”) and a number of banks including Crédit Agricole S.A.,
Crédit Agricole CIB and Crédit Agricole Securities-USA. This
action has been filed by plaintiffs who allege that they have
invested in financial instruments indexed to the USD ICE LIBOR.
They accuse the banks of having collusively set the index USD
ICE LIBOR at artificially low levels since February 2014 and made
thus illegal profits.
On January 31, 2019 a similar action (“Livonia”) has been filed
before the US District Court Southern District of New-York,
against a number of banks including Crédit Agricole S.A., Crédit
Agricole CIB and Crédit Agricole Securities-USA. On February 1,
2019, these two class actions were consolidated for pre-trial
purposes.
On March 4, 2019, a third class action (“Hawaï Sheet Metal
Workers retirement funds”) was filed against the same banks in
the same courtand consolidated with the two previous actions
on April 26, 2019.
On July 1
st
, 2019, the plaintiffs filed a “Consolidated Class Action
Complaint”. On August 30, 2019, the Defendants filed a motion
to dismiss against this consolidated complaint. On March 26,
2020, a judgment granted the Defendants Motion to Dismiss. On
April 24, 2020, the plaintiffs filed a notice of appeal.
On November 30, 2020, during briefing of the appeal, Plaintiffs’
lawyers informed Defendants that all of the named Plaintiffs wished
to withdraw from the case and, on December 1, 2020, Plaintiffs’
counsel filed the motion to stay the appeal, which Defendants
opposed. The court denied the motion on December 7, 2020 and
Plaintiffs filed their reply brief on December 15, 2020.
On December 28, 2020, DYJ Holdings Inc. filed a motion for
leave to intervene to replace the currents named plaintiffs. On
January 7, 2021, Defendants filed a brief in opposition to DYJ
Holdings’ motion and also filed a motion to dismiss the appeal.
On April 6, 2021, the court granted DYJ Holdings Inc.’s motion
for leave to intervene and denied Defendants’ motion to dismiss
the appeal.
On June 10, 2021, Defendants submitted a supplemental brief
addressing merits issues unique to DJY Holdings.
Oral argument was held on November 29, 2021.
406
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 14: SUBORDINATED DEBT - ANALYSIS BY RESIDUAL MATURITY
(IN CURRENCY OF ISSUE)
€ million
31.12.2021
31.12.2020
≤ 3months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total
Total
Fixed-term subordinated debt
‐
‐
750
2,789
3,539
3,225
Euro
‐
‐
750
1,462
2,212
2,412
Other EU currencies
-
-
-
-
-
-
US Dollar
‐
‐
‐
1,327
1,327
813
Yen
‐
‐
‐
‐
‐
‐
Other currencies
‐
‐
‐
‐
‐
‐
Undated subordinated debt
‐
‐
‐
8,470
8,470
5,643
Euro
‐
‐
‐
6,280
6,280
3,631
Other EU currencies
-
-
-
-
-
-
US Dollar
‐
‐
‐
2,190
2,190
2,012
Yen
‐
‐
‐
‐
‐
‐
Other currencies
‐
‐
‐
‐
‐
‐
Participating securities and loans
‐
‐
‐
‐
‐
‐
Total principal
‐
‐
750
11,259
12,009
8,868
Accrued interest
‐
‐
‐
‐
30
60
Carrying amount
‐
‐
‐
‐
12,039
8,928
Expenses relating to subordinated debt amounted to -€381 million at 31.12.2021, compared to -€426 million at 31.12.2020.
NOTE 15: CHANGES IN EQUITY (BEFORE APPROPRIATION)
€ million
Equity
Share capital
Legal
reserves
Statutory
reserves
Share
premiums,
reserves and
revaluation
adjustments
Retained
earnings
Regulated
provisions
Net income
Total equity
Balance at 31 December 2019
7,852
785
‐
1,593
3,213
‐
1,329
14,772
Dividends paid in respect of 2020
‐
‐
‐
‐
(511)
‐
‐
(511)
Increase/decrease
‐
‐
‐
‐
‐
‐
‐
‐
2020 net income
‐
‐
‐
‐
‐
‐
1,155
1,155
Appropriation of 2019 parent
company net income
‐
‐
‐
‐
1,329
‐
(1,329)
‐
Net charges/write-backs
‐
‐
‐
‐
‐
‐
‐
‐
Other changes
Balance at 31 December 2020
7,852
785
‐
1,593
4,031
‐
1,155
15,416
Dividends paid in respect of 2021
‐
‐
‐
‐
(1,024)
‐
‐
(1,024)
Increase/decrease
‐
‐
‐
‐
‐
‐
‐
‐
2021 net income
‐
‐
‐
‐
‐
‐
1,359
1,359
Appropriation of 2020 parent
company net income
‐
‐
‐
‐
1,155
‐
(1,155)
‐
Net charges/write-backs
‐
‐
‐
0
‐
‐
‐
‐
Other changes
‐
‐
‐
‐
37
‐
‐
37
Balance at 31 Decembre 2021
7,852
785
‐
1,594
4,199
‐
1,359
15,789
At 31 December 2021, the share capital comprised 290,801,346 shares with a par value of €27 each.
“Retained earnings” includes reserves for a global amount to €267,850 under a reversal of tax commitments by Crédit Agricole CIB
during the liquidation of its Luxembourg branch in 2019.
“Retained earnings” also includes €37 million in “Other changes” related to the modification done on 5 November 2021 of recommendation
2013-02 about the calculation of pension commitments and similar benefits.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 16: ANALYSIS OF THE BALANCE SHEET BY CURRENCY
€ million
31.12.2021
31.12.2020
Assets
Liabilities
Assets
Liabilities
Euro
263,271
268,004
270,229
279,929
Other EU currencies
2,826
1,436
27,854
37,080
US Dollar
196,764
182,379
183,015
173,280
Yen
42,128
27,512
49,234
34,384
Other currencies
57,329
82,987
36,039
41,698
Total
562,318
562,318
566,371
566,371
NOTE 17: TRANSACTIONS WITH SUBSIDIARIES, AFFILIATES AND
EQUITY INVESTMENTS
€ million
31.12.2021
31.12.2020
Loans and receivables
81,969
59,717
Credit and other financial institions
48,757
26,767
Customers
27,602
28,272
Bonds and other fixed income securities
5,610
4,678
Debt
106,794
83,241
Credit and financial institutions
75,938
54,217
Customers
14,557
15,862
Debt securities and subordinated debts
16,299
13,162
Commitments given
80,612
67,100
Financing commitments given to credit institutions
590
591
Financing commitments given to customers
52,518
41,890
Guarantee given to credit and other financial institutions
9,098
7,528
Guarantees given to customers
3,825
3,051
Securities acquired with repurchase options
2,220
3,221
Other commitments given
12,361
10,819
NOTE 18: NON-SETTLED FOREIGN EXCHANGE TRANSACTIONS AND
AMOUNTS PAYABLE IN FOREIGN CURRENCIES
€ million
31.12.2021
31.12.2020
To be received
To be delivered
To be received
To be delivered
Spot foreign-exchange transactions
225,414
225,180
114,268
114,470
Foreign currencies
197,121
202,466
100,342
100,339
Euro
28,293
22,714
13,926
14,131
Forward currency transactions
2,501,451
2,504,270
1,922,518
1,923,064
Foreign currencies
2,016,564
2,054,340
1,511,747
1,549,721
Euro
484,887
449,930
410,771
373,343
Foreign currency denominated loans
and borrowings
280
142
1,307
1,466
Total
2,727,145
2,729,592
2,038,093
2,039,000
408
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 19: TRANSACTIONS ON FORWARD FINANCIAL INSTRUMENTS
€ million
31.12.2021
31.12.2020
Hedging
transactions
Other
transactions
Total
2
Hedging
transactions
Other
transactions
Total
Futures and forwards
137,710
18,054,246
18,191,956
1,518
15,518,441
15,519,959
Exchange-traded
1
‐
207,700
207,700
‐
136,618
136,618
Interest-rate futures
‐
198,707
198,707
‐
130,940
130,940
Currency forwards
‐
334
334
‐
322
322
Equity and stock index instruments
‐
8,639
8,639
‐
5,335
5,335
Other futures
‐
20
20
‐
21
21
Over-the-counter
1
137,710
17,846,546
17,984,256
1,518
15,381,823
15,383,341
Interest rate swaps
84,505
11,128,786
11,213,291
64
8,708,275
8,708,339
Fx swaps
53,069
5,320,722
5,373,791
1,454
4,060,743
4,062,197
FRA
‐
1,310,449
1,310,449
‐
2,541,767
2,541,767
Equity and stock index instruments
136
83,964
84,100
‐
67,778
67,778
Other futures
‐
2,625
2,625
‐
3,260
3,260
Options
‐
1,886,950
1,886,950
‐
1,786,547
1,786,547
Exchange-traded
‐
194,487
194,487
‐
123,766
123,766
Exchange traded interest rate futures
‐
‐
‐
‐
‐
‐
Bought
‐
150,620
150,620
‐
82,404
82,404
Sold
‐
20,000
20,000
‐
18,000
18,000
Equity and stock index instruments
‐
‐
‐
‐
‐
‐
Bought
‐
8,658
8,658
‐
9,005
9,005
Sold
‐
15,209
15,209
‐
14,357
14,357
Currency futures
‐
‐
‐
‐
‐
‐
Bought
‐
‐
‐
‐
‐
‐
Sold
‐
‐
‐
‐
‐
‐
Other futures
‐
‐
‐
‐
‐
‐
Bought
‐
‐
‐
‐
‐
‐
Sold
‐
‐
‐
‐
‐
‐
Over-the counter
‐
1,692,463
1,692,463
‐
1,662,781
1,662,781
Interest rate swap options
‐
‐
‐
‐
‐
‐
Bought
‐
360,750
360,750
‐
340,285
340,285
Sold
‐
386,503
386,503
‐
382,691
382,691
Other interest rate forwards
‐
‐
‐
‐
‐
‐
Bought
‐
253,493
253,493
‐
254,639
254,639
Sold
‐
231,083
231,083
‐
259,049
259,049
Equity and stock index instruments
‐
‐
‐
‐
‐
‐
Bought
‐
1,510
1,510
‐
1,383
1,383
Sold
‐
1,058
1,058
‐
1,055
1,055
Currency futures
‐
‐
‐
‐
‐
‐
Bought
‐
181,057
181,057
‐
190,373
190,373
Sold
‐
216,501
216,501
‐
212,173
212,173
Other futures
‐
‐
‐
‐
‐
‐
Bought
‐
89
89
‐
256
256
Sold
‐
67
67
‐
310
310
Credit derivative
‐
‐
‐
‐
‐
‐
Bought
‐
54,597
54,597
‐
15,059
15,059
Sold
‐
5,755
5,755
‐
5,508
5,508
Total
137,710
19,941,196
20,078,906
1,518
17,304,988
17,306,506
1
The amounts stated under futures and forwards correspond to aggregate long and short positions (interest rate swaps and interest rate swaptions) or to aggregate purchases
and sales of contracts (other contracts).
2
Including €832,350 million with Crédit Agricole S.A. at December 31, 2021.
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
19.1 Forward financial instruments - Fair value
€ million
31.12.2021
31.12.2020
Total fair value
Notional total
Total fair value
Notional total
Assets
Liabilities
Assets
Liabilities
Interest rate instruments
69,968
71,337
14,124,896
100,506
100,328
12,718,114
Futures
‐
‐
198,707
‐
‐
130,940
FRA
3
‐
1,310,449
188
185
2,541,767
Interest rate swaps
57,570
56,268
11,213,291
81,654
79,111
8,708,339
Interest rate options
9,807
12,324
917,873
15,714
17,801
823,380
Caps, floors and collars
2,588
2,745
484,576
2,950
3,231
513,688
Foreign currency and Instruments
13,734
10,462
993,204
14,461
11,816
875,762
Currency futures
10,889
8,058
595,312
11,680
9,633
472,894
Currency options
2,823
2,371
397,558
2,628
2,030
402,546
Futures
22
33
334
153
153
322
Other instruments
8,502
5,326
182,327
9,749
6,807
123,328
Equity and index derivatives
8,304
4,717
119,174
8,116
4,793
98,913
Precious metal derivatives
35
45
2,781
93
80
3,843
Commodity derivatives
‐
‐
20
‐
‐
5
Credit derivatives
163
564
60,352
1,540
1,934
20,567
Sub-total
92,204
87,125
15,300,427
124,715
118,951
13,717,204
Currency futures trading book
14,369
15,199
4,778,479
16,800
17,139
3,589,302
Currency futures banking book
‐
‐
‐
‐
‐
‐
Sub-total
14,369
15,199
4,778,479
16,800
17,139
3,589,302
Total
106,573
102,324
20,078,906
141,516
136,090
17,306,506
19.2 Forward financial instruments - Notional outstanding’s analysis by residual maturity
€ million
Over-the-counter
Exchange-traded
31.12.2021
31.12.2020
Notional amount outstanding
≤ 1 year
> 1 year
≤ 5 years
> 5 years
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total
Total
Interest rate instruments
4,475,613
5,083,940
4,196,016
227,531
141,745
51
14,124,896
12,718,114
Futures
‐
‐
‐
132,065
66,591
51
198,707
130,940
FRA
848,343
462,106
‐
‐
‐
‐
1,310,449
2,541,767
Interest rate swaps
3,509,191
4,103,776
3,600,324
‐
‐
‐
11,213,291
8,708,339
Interest rate options
75
247,393
499,785
95,466
75,154
‐
917,873
823,380
Caps, floors and collars
118,004
270,665
95,907
‐
‐
‐
484,576
513,688
Foreign currency and gold
736,688
217,088
39,094
334
‐
‐
993,204
875,761
Currency futures
425,729
149,888
19,695
‐
‐
‐
595,312
472,894
Currency options
310,959
67,200
19,399
‐
‐
‐
397,558
402,546
Futures
‐
‐
‐
334
‐
‐
334
322
Other instruments
33,591
78,280
37,930
16,797
14,129
1,600
182,327
123,328
Equity and index derivatives
28,337
28,424
29,907
16,777
14,129
1,600
119,174
98,913
Precious metal derivatives
2,781
‐
‐
‐
‐
‐
2,781
3,843
Commodity derivatives
‐
‐
‐
20
‐
‐
20
5
Credit derivatives
2,473
49,856
8,023
‐
‐
‐
60,352
20,567
Sub-total
5,245,892
5,379,308
4,273,040
244,662
155,874
1,651
15,300,427
13,717,203
Currency futures trading book
3,024,701
1,104,902
648,876
‐
‐
‐
4,778,479
3,589,302
Currency futures banking book
‐
‐
‐
‐
‐
‐
‐
‐
Sub-total
3,024,701
1,104,902
648,876
‐
‐
‐
4,778,479
3,589,302
Total
8,270,593
6,484,210
4,921,916
244,662
155,874
1,651
20,078,906
17,306,506
410
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
19.3 Forward financial instruments - Counterparty risk
€ million
31.12.2021
31.12.2020
Market value
Potential credit
risk
Market value
Potential credit
risk
Risks regarding OECD governments, central banks and similar
institutions
9,147
5,709
60,230
10,101
Risks regarding OECD financial institutions and similar
49,157
34,483
65,614
12,806
Risks on other counterparties
49,558
60,556
12,991
1,189
Total by counterparty type before netting agreements
107,862
100,748
138,835
24,096
Risks on:
‐
‐
‐
‐
- Interest rates, exchange rates and comodities contracts
101,731
94,407
132,150
23,406
- Equity and index derivatives
239
2,358
4,997
690
Impact of netting agreements
77,587
75,849
98,886
2,521
Total after impact of netting agreements
30,275
24,899
39,949
21,575
NOTE 20: DEBT SECURITIES CLEARING
€ million
31.12.2021
31.12.2020
Gross payables
representative
of borrowed
securities
Borrowed trading
securities
Net payables
representative
of borrowed
securities
Gross payables
representative
of borrowed
securities
Borrowed trading
securities
Net payables
representative
of borrowed
securities
(a)
(b)
(c) = (a) - (b)
(a)
(b)
(c) = (a) - (b)
Treasury Bills and similar securities
24,648
24,648
-
16,978
16,978
-
- O/W lent securities
-
4,657
-
-
3,583
-
Bonds and other fixed assets
11,777
11,777
-
4,805
4,805
-
- O/W lent securities
-
9,877
-
-
230
-
Equities and other variable-income securities
5,614
5,614
-
5,072
5,072
-
- O/W lent securities
-
70
-
-
662
-
NOTE 21: NET INTEREST AND SIMILAR INCOME
€ million
31.12.2021
31.12.2020
Interbank transactions
1,128
1,271
Customer transactions
4,051
3,990
Bonds and other fixed-income securities (see Note 22)
489
446
Debt securities
22
406
Other interest and similar income
9
39
Interest and similar income
1
5,699
6,152
Interbank transactions
(2,547)
(1,792)
Customer transactions
(544)
(1,041)
Bonds and other fixed-income securities
(222)
(86)
Debt securities
(500)
(927)
Other interest and similar income
(39)
(41)
Interest and similar expense
2
(3,852)
(3,887)
Net interest and similar income
1,847
2,265
1
Including income with Crédit Agricole S.A at 31.12.2021: €221 million.
2
Including expenses with Crédit Agricole S.A at 31.12.2021 : €-725 million.
411
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 22: INCOME FROM SECURITIES
€ million
Fixed Income securities
Variable-income securities
31.12.2021
31.12.2020
31.12.2021
31.12.2020
Investment in subsidiaries and affliliates, equity investments and other
long-term equity investments
‐
‐
120
228
Short term investment securities and medium term portfolio securities
255
191
1
18
Long-term investment securities
234
255
‐
‐
Other securities transactions
‐
‐
‐
‐
Income from securities
489
446
121
246
NOTE 23: NET COMMISSION AND FEE INCOME
€ million
31.12.2021
31.12.2020
Income
Expense
Net
Income
Expense
Net
Interbank transactions
52
(102)
(50)
72
(123)
(51)
Customer transactions
562
(43)
519
534
(41)
493
Securities transactions
13
(130)
(117)
34
(139)
(105)
Foreign exchange transactions
1
(32)
(31)
‐
(28)
(28)
Forward financial instruments and other off-balance
sheet transactions
247
(218)
29
250
(204)
46
Financial services (see Note 23.1)
115
(22)
93
118
(22)
96
Total net fee and commission income
1
990
(547)
443
1,008
(557)
451
1
Including net commissions with Crédit Agricole S.A. at 31.12.2021 : €16 million.
23.1 Banking and financial services
€ million
31.12.2021
31.12.2020
Net income from managing mutual funds and securities on behalf of customers
43
54
Net income from payment instruments
20
8
Other net financial services income (expense)
30
34
Financial services
93
96
NOTE 24: GAINS (LOSSES) ON TRADING BOOKS
€ million
31.12.2021
31.12.2020
Gains (losses) on trading securities
139
(438)
Gains (losses) on forward financial instruments
744
1,955
Gains (losses) on foreign exchange and similar financial instruments
892
48
Net gains (losses) on trading book
1,775
1,565
412
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2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 25: GAINS (LOSSES) ON SHORT-TERM INVESTMENT
PORTFOLIOS AND SIMILAR
€ million
31.12.2021
31.12.2020
Short term investment securities
Impairment losses
(17)
(38)
Reversals of impairment losses
15
38
Net losses/reversals
(2)
‐
Gains on disposals
27
278
Losses on disposals
(8)
‐
Net gains (losses) on disposals
19
278
Net gain (losses) on short term investment securities
17
278
Medium term portfolio securities
Impairment losses
‐
‐
Reversals of impairment losses
‐
‐
Net losses/reversals
‐
‐
Gains on disposals
11
‐
Losses on disposals
(1)
(30)
Net gains (losses) on disposals
10
(30)
Net gain (losses) on medium term investment portfolio securities
10
(30)
Net gain (losses) on short term investment portfolios and similar
27
248
NOTE 26: OPERATING EXPENSES
26.1 Employee expenses
€ million
31.12.2021
31.12.2020
Salaries
(1,114)
(1,075)
Social security expenses
(364)
(378)
Incentive plans
(32)
(30)
Employee profit-sharing
‐
‐
Payroll-related tax
(43)
(39)
Total employee expenses
(1,553)
(1,522)
Charge-backs and reclassification of employee expenses
7
13
Net expenses
1
(1,546)
(1,509)
1
Including pension expenses at 31.12.2021: €-71 million.
Including pension expenses at 31.12.2020: €-77 million.
26.2 Average number of headcount
In number
31.12.2021
31.12.2020
Managers
4,563
4,384
Non-managers
137
185
Managers and non-managers of foreign branches
3,086
2,986
Total
7,786
7,555
Of which
-
-
France
4,700
4,569
Foreign
3,086
2,986
26.3 Other administrative expenses
€ million
31.12.2021
31.12.2020
Taxes other than on income or payroll-related
(106)
(57)
External services
(1,237)
(1,145)
Other administrative expenses
(112)
(103)
Total administrative expenses
(1,455)
(1,305)
Charge-backs and reclassification of employee expenses
267
226
Total
(1,188)
(1,079)
413
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Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 27: COST OF RISK
€ million
31.12.2021
31.12.2020
Depreciation charges to provisions and impairment
(1,354)
(1,869)
Impairment on doubtful loans and receivables
(359)
(664)
Other depreciation and impairment losses
(995)
(1,205)
Reversal of provisions and impairment losses
1,391
1,406
Reverval of impairment losses on doubtful loans and receivables
1
397
549
Other reversals of provisions and impairment losses
2
994
857
Change in provisions and impairment
37
(463)
Losses on non-impaired bad debts
(7)
(41)
Losses on impaired bad debts
(250)
(587)
Recoveries on loans written off
138
199
Cost of risk
(82)
(892)
1
Including €243 million on bad debts and doubtful loans at 31.12.2021.
2
Including €7 million used to provision risk on the liabilities at 31.12.2021.
NOTE 28: NET GAIN (LOSSES) ON FIXED ASSETS
€ million
31.12.2021
31.12.2020
Financial investments
Impairment losses
‐
‐
Long-term investment securities
‐
‐
Investments in subsidiaries and affiliates, equity investments and other long term
equity investments
(184)
(40)
Reversals of impairments losses
‐
‐
Long-term investment securities
‐
‐
Investments in subsidiaries and affiliates, equity investments and other long term
equity investments (1)
86
620
Net losses/reversals
(98)
580
Long-term investment securities
‐
‐
Investments in subsidiaries and affiliates, equity investments and other long term
equity investments
(98)
580
Gains on disposals
‐
‐
Long-term investment securities
15
11
Investments in subsidiaries and affiliates, equity investments and other long term
equity investments (2)
142
‐
Losses on disposals
‐
‐
Long-term investment securities
(3)
‐
Investments in subsidiaries and affiliates, equity investments and other long term
equity investments
(31)
(601)
Losses on receivables from equity investments
‐
‐
Net gain (losses) on disposals
123
(590)
Long-term investment securities
‐
‐
Investments in subsidiaries and affiliates, equity investments
and other long term
equity investments
123
(590)
Net gain (losses)
25
(10)
Property, plant and equipment and intangible assets
Disposal gains
28
‐
Disposal losses
(2)
‐
Net gain (losses)
26
‐
Net gain (losses) on fixed assets
51
(10)
414
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Chapter 7 – Parent-company financial statements at 31 December 2021
NOTES TO THE PARENT-COMPANY FINANCIAL STATEMENTS
NOTE 29: INCOME TAX CHARGE
€ million
31.12.2021
31.12.2020
Net gain (losses) on fixed assets
1
(132)
(78)
Other tax
‐
‐
Total
(132)
(78)
1
Crédit Agricole CIB is a member of the Crédit Agricole S.A. tax consolidation group. The tax agreement between Crédit Agricole CIB and its parent company enables it to
transfer its tax deficits.
As a part of the tax consolidation agreement, a tax income of €18 million to Crédit Agricole S.A. was recognised at December 31, 2021.
A net depreciation of tax provision of €47 million, corresponding to Crédit Agricole S.A. compensated tax loss, but still due, as individuals, by the subsidiaries of the sub-group
towards Crédit Agricole CIB, was also recognised at December 31, 2021.
NOTE 30: OPERATIONS IN NON-COOPERATIVE STATES OR TERRITORIES
At 31 December 2021, Crédit Agricole CIB had no direct or indirect presence in non-cooperative states or territories within the meaning
of Article 238-0 A of the French General Tax Code.
415
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
3.
STATUTORY AUDITORS’ REPORT
ON THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
The Statutory Auditors
PricewaterhouseCoopers Audit
63 rue de Villiers - 92208 Neuilly-sur-Seine Cedex
S.A.S. au capital de € 2 510 460 - 348 058 165 R.C.S. Nanterre
ERNST & YOUNG et Autres
Tour First - TSA 14444 - 92037 Paris-La Défense cedex
S.A.S. à capital variable - 438 476 913 R.C.S. Nanterre
The Statutory Auditors, Member of the
compagnie régionale de Versailles
To Crédit Agricole Corporate and Investment Bank Ordinary General Meeting
12 Place, des États-Unis - CS 70052 - 92547 Montrouge Cedex
This is a translation into English of the statutory auditors’ report on the financial statements of the Company issued in French and it is
provided solely for the convenience of English-speaking users.
This statutory auditors’ report includes information required by European regulations and French law, such as information about the
appointment of the statutory auditors or verification of the management report and other documents provided to the shareholders.
This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards
applicable in France.
Statutory auditors’ report on the financial statements.
To the General Meeting of Shareholders of Crédit Agricole Corporate and Investment Bank,
3.1. OPINION
In compliance with the engagement entrusted to us by your
General Meeting of Shareholders, we have audited the
accompanying financial statements of Crédit Agricole Corporate
and Investment Bank for the year ended 31 December 2021.
In our opinion, the financial statements give a true and fair view
of the assets and liabilities and of the financial position of the
Company as at 31 December 2021 and of the results of its
operations for the year then ended in accordance with French
accounting principles.
The audit opinion expressed above is consistent with our report
to the Audit Committee.
3.2. BASIS FOR OPINION
Audit Framework
We conducted our audit in accordance with professional
standards applicable in France. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Our responsibilities under those standards are further described
in the Statutory Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report.
Independence
We conducted our audit engagement in compliance with the
independence requirements of the French Commercial Code
(Code de commerce
) and the French Code of Ethics for Statutory
Auditors (
Code de déontologie de la profession de commissaire
aux comptes
) for the period from 1 January 2021 to the date of
our report, and specifically we did not provide any prohibited
nonaudit services referred to in Article 5(1) of Regulation (EU)
No. 537/2014.
3.3. OBSERVATION
We draw your attention to section 2.13 of Note 1 “Accounting
principles and methods and Note 13 “Provisions” to the financial
statements relating to the impacts of the change in accounting
method concerning the modified calculation of pension
commitments and similar benefits, resulting from the updating
of ANC recommendation no. 2013-02. Our opinion is not modified
in respect of these matters.
3.4. JUSTIFICATION OF ASSESSMENTS
KEY AUDIT MATTERS
Due to the global crisis related to the COVID19 pandemic, the
financial statements for this period have been prepared and
audited under special circumstances. Indeed, this crisis and
the exceptional measures taken in the context of the health
emergency have had numerous consequences for companies,
particularly on their operations and their financing, and have led
to greater uncertainties regarding their future prospects. Some of
these measures, such as travel restrictions and remote working,
have also had an impact on companies’ internal organization and
on the performance of audits.
It is in this complex, evolving context that, in accordance with
the requirements of Articles L. 8239 and R. 8237 of the French
Commercial Code (Code de commerce) relating to the justification
of our assessments, we inform you of the key audit matters
relating to risks of material misstatement that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period, as well as how we addressed
those risks.
These matters were addressed in the context of our audit of
the financial statements as a whole and in forming our opinion
thereon, and we do not provide a separate opinion on specific
items of the financial statements.
416
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
RISK IN RELATION TO THE ESTIMATION OF PROVISIONS FOR REGULATORY AND TAX DISPUTES
Risk identified
Crédit Agricole Corporate and Investment Bank is undergoing
judicial and a number of investigations and requests for regulatory
information from different regulators. These concern in particular
the cases relating to Euribor/Libor and SSA Bonds with the
authorities of various countries (USA, UK) and the European
Union.
A number of tax investigations are also ongoing in France and
certain countries where Crédit Agricole Corporate and Investment
Bank operates.
Deciding whether to recognize a provision and the amount of that
provision requires the use of judgement, given that it is difficult
to assess the outcome of disputes or the uncertainties related
to certain tax treatments.
Given the degree of judgement required, the measurement of
provisions for regulatory and tax disputes constitutes a significant
risk of material misstatement in the financial statements, and we
therefore deemed such measurement to be a key audit matter.
The various ongoing legal proceedings, investigations
and requests for information (Euribor/Libor, SSA Bonds
and other indices), as well as tax proceedings, are
presented in Note 13 to the financial statements.
Our response
We gained an understanding of the procedure implemented by
management for measuring the risks resulting from these disputes
and tax uncertainties and, where applicable, the associated
provisions, notably through quarterly exchanges with management
and, in particular, the Legal, Compliance and Tax departments of
the Crédit Agricole Corporate and Investment Bank.
Our work consisted primarily in:
y
examining the assumptions used to determine provisions based
on available information (documentation prepared by the Legal
department or legal counsel of Crédit Agricole Corporate and
Investment Bank, correspondence from regulators and minutes
of Legal Risks Committee meetings);
y
gaining an understanding of the analyses or findings of Crédit
Agricole Corporate and Investment Bank’s legal counsels and
their responses to our requests for confirmation;
y
as regards tax risks in particular, examining, with guidance
from our specialists, Crédit Agricole Corporate and Investment
Bank’s responses submitted to the relevant authorities, as well
as the risk estimates carried out by the Bank;
y
assessing, accordingly, the level of provisioning at 31 December
2021.
Lastly, we examined the related disclosures provided in the notes
to the financial statements.
417
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
CREDIT RISK AND ESTIMATE OF EXPECTED CREDIT LOSSES ON PERFORMING,
UNDERPERFORMING AND NON-PERFORMING LOANS IN THE CONTEXT OF THE COVID-19
CRISIS
Risk identified
As part of its corporate and investment banking operations, Crédit
Agricole Corporate and Investment Bank originates and structures
financing for large corporate clients in France and abroad.
When a loan is non-performing, the probable loss is recognized
through impairment, shown as a deduction from assets. Crédit
Agricole Corporate and Investment Bank also recognizes
provisions in liabilities to cover credit risks that are not individually
allocated, such as country risk provisions or sectoral provisions
generally calculated based on IFRS 9 models for estimating
expected credit losses (ECL).
Given the significant judgement required in determining such
value adjustments, we deemed the estimate of provisions for and
impairment of performing and underperforming loans in the energy
and transport sectors (collectively impaired) and non-performing
loans (individually impaired) to be a key audit matter due to:
y
an uncertain economic environment resulting in particular from
the COVID-19 crisis;
-
the complexity of identifying exposures where there is a risk
of non-recovery; and
y
the degree of judgement needed to estimate recovery flows.
The financing granted is recorded under loans due
from credit institutions and customer transactions.
Impairment is recognised as a deduction from assets
(€2,078 million) or as a liability (€445 million) and
additions/reversals are recorded under cost of risk.
Probable losses in respect of off-balance sheet
commitments are covered by provisions recognised
in liabilities (€390 million).
See Notes 3, 8, 13 and 26 to the financial statements.
Our response
We examined the procedures implemented by the Risk
Management department to categorize outstanding loans and
measure the amount of recorded value adjustments in order to
assess whether the estimates used were based on methods
correctly documented and described in the notes to the financial
statements.
We assessed, in particular, how the crisis linked to COVID-19
and the macro-economic projections used to calculate value
adjustments were taken into account.
We tested the key controls implemented by Crédit Agricole
Corporate and Investment Bank for the annual portfolio
reviews, the updating of credit ratings, the identification of
sectors weakened by the COVID-19 crisis, underperforming or
nonperforming loans and the measurement of value adjustments.
We also familiarized ourselves with the main findings of Crédit
Agricole Corporate and Investment Bank specialized committees
in charge of monitoring underperforming and non-performing
loans.
Regarding collectively measured value adjustments, we:
y
asked experts to assess the methods and measurements for
the various ECL inputs and calculation models;
y
assessed the analyses carried out by management on sectors
with a deteriorated outlook and having been seriously econom-
ically impacted by the COVID-19 crisis;
y
examined the methodology used to identify significant increases
in credit risk;
y
tested the controls that we deemed to be of key importance
in relation to the transfer of the data used to calculate ECL or
the reconciliations between the bases used to calculate ECL
and the accounting data;
y
carried out independent ECL calculations, compared the cal-
culated amount with the recognized amount and examined the
adjustments made by management where applicable.
Regarding individually calculated value adjustments, we:
y
examined the estimates used for impaired significant
counterparties;
y
based on a sample of impaired or nonimpaired credit files,
examined the factors underlying the main assumptions used
to assess the expected recovery flows, in particular with regard
to valuing collateral.
Lastly, we examined the disclosures in relation to credit risk
hedging provided in the notes to the financial statements.
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
RISK IN RELATION TO THE MEASUREMENT OF COMPLEX DERIVATIVE INSTRUMENTS
Risk identified
As part of its capital markets activities, Crédit Agricole Corporate
and Investment Bank originates, sells, structures and trades
market products, including derivative financial instruments, for
corporate clients, financial institutions and major issuers.
These derivative financial instruments are recognized in
accordance with the provisions of Title 5 “Forward financial
instruments” of Book II “Specific transactions” of ANC Regulation
201407 of 26 November 2014. In particular, transactions entered
into for trading purposes are measured at market value and the
corresponding gains and losses are taken to income.
These financial instruments are considered to be complex when
their measurement requires the use of significant unobservable
market inputs.
We deemed the measurement of these complex derivative
financial instruments to be a key audit matter, as it requires
judgement from management, particularly as regards:
y
the use of internal and non-standard valuation models;
y
the valuation of inputs unsubstantiated by observable market
data;
y
the estimate of valuation adjustments designed to reflect uncer-
tainties related to the models, the inputs used and counterparty
and liquidity risks.
Gains or losses on financial instrument transactions
accounted for in trading portfolios amounted to €1,775
million at 31 December 2021.
See Notes 19 and 23 to the financial statements.
Our response
We gained an understanding of the processes and controls put
in place by Crédit Agricole Corporate and Investment Bank to
identify, measure and recognize complex derivative financial
instruments.
We examined the controls that we deemed of key importance,
particularly those performed by the Risk Management department,
such as the independent verification of measurement inputs and
the internal approval of measurement models. We also examined
the system governing the recognition of valuation adjustments
and the accounting categorization of financial products.
With the support of our experts in the valuation of financial
instruments, we carried out independent valuations, analyzed
those performed by Crédit Agricole Corporate and Investment
Bank and examined the assumptions, inputs, methodologies
and models used.
We also assessed the main valuation adjustments recognized,
as well as the justification provided by management for the main
differences observed in the margin calls and losses or gains in
the event of the unwinding of financial instruments.
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
3.5. SPECIFIC VERIFICATIONS
We have also performed, in accordance with professional
standards applicable in France, the specific verifications required
by laws and regulations.
Information given in the management report
and in the other documents with respect
to the financial position and the financial
statements provided to the shareholders
We have no matters to report as to the fair presentation and the
consistency with the financial statements of the information given
in the Board of Directors’ management report and in the other
documents with respect to the financial position and the financial
statements provided to the shareholders.
The fair presentation and the consistency with the financial
statements of the information relating to payment deadlines
mentioned in article D. 441-6 of the French Commercial Code
(
Code de commerce
) calls for the following observation: as stated
in the management report, this information does not include
banking and related operations, as your Company considers that
they do not fall within the scope of the information to be produced.
Report on Corporate Governance
We attest that the Board of Directors’ Report on Corporate
Governance sets out the information required by Articles
L. 225374 and L. 221010 of the French Commercial Code (
Code
de commerce
).
3.6. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Format of preparation of the financial
statements intended to be included in the
annual financial report
We have also verified, in accordance with the professional standard
applicable in France relating to the procedures performed by
statutory auditors regarding the annual and consolidated financial
statements prepared in the European single electronic format, that
the preparation of the financial statements intended to be included
in the annual financial report mentioned in Article L. 45112, I of
the French Monetary and Financial Code (
Code monétaire et
financier
), prepared under the CEO’s responsibility, complies with
the single electronic format defined in Commission Delegated
Regulation (EU) No. 2019/815 of 17 December 2018.
On the basis of our work, we conclude that the preparation of the
financial statements intended to be included in the annual financial
report complies, in all material respects, with the European single
electronic format.
We have no responsibility to verify that the financial statements
that will ultimately be included by your Company in the annual
financial report filed with the AMF (
Autorité des marchés financiers
)
agree with those on which we have performed our work.
Appointment of the Statutory Auditors
We were appointed as statutory auditors of Crédit Agricole
Corporate and Investment Bank by the general meeting of
shareholders held on 30 April 2004 for PricewaterhouseCoopers
Audit and 20 May 1997 for ERNST & YOUNG et Autres.
As at 31 December 2021, PricewaterhouseCoopers Audit was
in its eighteenth year of total uninterrupted engagement and
ERNST & YOUNG et Autres was in its twenty-fifth year of total
uninterrupted engagement.
3.7. RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH
GOVERNANCE FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair
presentation of the financial statements in accordance with
French accounting principles and for such internal control as
management determines is necessary to enable the preparation
of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible
for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
it is expected to liquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial
reporting process and the effectiveness of internal control and
risk management systems and where applicable, its internal audit,
regarding the accounting and financial reporting procedures.
The financial statements were approved by the Board of Directors.
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Chapter 7 – Parent-company financial statements at 31 December 2021
STATUTORY AUDITORS’ REPORTON THE FINANCIAL STATEMENTSYEAR ENDED 31 DECEMBER 2021
3.8. STATUTORY AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL
STATEMENTS
Objectives and Audit Approach
Our role is to issue a report on the financial statements. Our
objective is to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with
professional standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
users made on the basis of these financial statements.
As specified in Article L. 823101 of the French Commercial
Code (Code de commerce), our statutory audit does not include
assurance on the viability of the Company or the quality of
management of the affairs of the Company.
As part of an audit conducted in accordance with professional
standards applicable in France, the statutory auditor exercises
professional judgment throughout the audit and furthermore:
y
Identifies and assesses the risks of material misstatement
of the financial statements, whether due to fraud or error,
designs and performs audit procedures responsive to those
risks, and obtains audit evidence considered to be sufficient
and appropriate to provide a basis for his opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
y
Obtains an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the internal control.
y
Evaluates the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management in the financial statements.
y
Assesses the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. This assess-
ment is based on the audit evidence obtained up to the date
of his audit report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
If the statutory auditor concludes that a material uncertainty
exists, there is a requirement to draw attention in the audit
report to the related disclosures in the financial statements or,
if such disclosures are not provided or inadequate, to modify
the opinion expressed therein.
y
Evaluates the overall presentation of the financial statements
and assesses whether these statements represent the under-
lying transactions and events in a manner that achieves fair
presentation.
Report to the Audit Committee
We submit to the Audit Committee a report which includes in
particular a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also
report significant deficiencies, if any, in internal control regarding
the accounting and financial reporting procedures that we have
identified.
Our report to the Audit Committee includes the risks of material
misstatement that, in our professional judgment, were of most
significance in the audit of the financial statements of the current
period and which are therefore the key audit matters that we are
required to describe in this report.
We also provide the Audit Committee with the declaration
provided for in Article 6 of Regulation (EU) No. 537/2014,
confirming our independence within the meaning of the rules
applicable in France as set out in particular in Articles L. 82210 to
L. 82214 of the French Commercial Code (
Code de commerce)
and in the French Code of Ethics for Statutory Auditors (
Code
de déontologie de la profession de commissaire aux comptes
).
Where appropriate, we discuss with the Audit Committee the risks
that may reasonably be thought to bear on our independence,
and the related safeguards.
Neuilly-sur-Seine and Paris-La Défense, le 22 March 2022
The Statutory Auditors
PricewaterhouseCoopers Audit
ERNST & YOUNG et Autres
Agnès Hussherr-Harel
Laurent Tavernier
Matthieu Préchoux
Olivier Durand
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Chapter 7 – Parent-company financial statements at 31 December 2021
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GENERAL
INFORMATION
424
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
1.
Articles of association effective
at 31 December 2021
........................................
426
TITLE I
........................................................................................
426
TITLE II
.......................................................................................
426
TITLE III
......................................................................................
428
TITLE IV
......................................................................................
430
TITLE V
.......................................................................................
430
TITLE VI
.......................................................................................
431
TITLE VII
.....................................................................................
431
2.
Information about the company
....................
432
2.1 CORPORATE NAME
...........................................................
432
2.2 REGISTERED OFFICE
........................................................
432
2.3 FINANCIAL YEAR
..............................................................
432
2.4 DATE OF INCORPORATION AND DURATION OF THE
COMPANY
..........................................................................
432
2.5 LEGAL STATUS
..................................................................
432
2.6 INVESTMENTS MADE BY CRÉDIT AGRICOLE CIB
OVER THE PAST THREE YEARS
.....................................
432
2.7 NEW PRODUCTS AND SERVICES
...................................
433
2.8 MATERIAL CONTRACTS
...................................................
433
2.9 RECENT TRENDS
..............................................................
433
2.10 SIGNIFICANT CHANGES
.................................................
433
2.11 ISSUER STATEMENT
.........................................................
433
2.12 PUBLICLY AVAILABLE DOCUMENTS
.............................
433
3.
Statutory Auditors’ special report on related
party agreements
...........................................
434
3.1.
AGREEMENTS TO BE SUBMITTED FOR THE APPROVAL
OF THE GENERAL MEETING
............................................
434
3.2.
AGREEMENTS ALREADY APPROVED BY THE GENERAL
MEETING
.............................................................................
436
4.
Responsibility statement
..............................
441
5.
Statutory auditors
.........................................
442
5.1 PRIMARY AND ALTERNATE STATUTORY AUDITORS ..442
6.
Cross-reference table
....................................
443
8
CONTENTS
Chapter 8 – General information
425
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
2021
Year 2021
HOW TO
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THE PDF
OF CACIB UNIVERSAL REGISTRATION
DOCUMENT?
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GO
to about us
> financial information
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on “Activity Report”
in the middle of the page
CLICK
on the Universal Registration
Document 2021, cover to access the
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Chapter 8 – General information
ARTICLES OF ASSOCIATION EFFECTIVE AT 31 DECEMBER 2021
426
CRÉDIT AGRICOLE CIB - UNIVERSAL REGISTRATION DOCUMENT
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1.
ARTICLES OF ASSOCIATION EFFECTIVE
AT 31 DECEMBER 2021
TITLE I
CORPORATE FORM – REGISTERED NAME -
CORPORATE PURPOSE - REGISTERED
OFFICE – TERM
ARTICLE 1 – CORPORATE FORM
The Company is a joint stock company [French
Société Anonyme
]
with a Board of Directors. It is governed by the laws and regulations
that apply to credit institutions and to French
Sociétés Anonymes
and by the present Articles of Association.
ARTICLE 2 - REGISTERED NAME
The name of the Company is: “Crédit Agricole Corporate and
Investment Bank”.
ARTICLE 3 – CORPORATE PURPOSE
The purpose of the Company, in France and abroad, is:
y
to enter into any banking transactions and any finance trans-
actions, and more particularly:
-
to receive funds, grant loans, advances, credit, financing, guar-
antees, to undertake collection, payment, recoveries,
-
to provide advisory services in financial matters, and especially
in matters of financing, indebtedness, subscription, issues,
investment, acquisitions, transfers, mergers, restructurings,
-
to provide custodial, management, purchasing, sales,
exchange, brokerage and arbitrage services with respect to
all and any stocks, equity rights, financial products, derivatives,
currencies, commodities, precious metals and in general all
and any other securities of all kinds,
y
to provide all and any investment services and related services
as defined by the French Monetary and Financial Code and
any subsequent legislation or regulation deriving therefrom,
y
to establish and to participate in any ventures, associations,
corporations, by way of subscription, purchase of shares or
equity rights, merger or in any other way,
y
to enter into transactions, either commercial or industrial,
relating to securities or real estate, directly or indirectly related
to any or all of the above purposes or to any similar or con-
nected purposes,
y
the foregoing, both on its own behalf and on behalf of third
parties or as a partner and in any form whatsoever.
ARTICLE 4 - REGISTERED OFFICE
The registered office is at 12, Place des Etats-Unis - CS 70052 -
92547 Montrouge Cedex (France)
ARTICLE 5 – TERM
The Company’s term of existence shall end on 25 November 2064,
except in the event of early dissolution or extension of its life.
TITLE II
REGISTERED CAPITAL - SHARES
ARTICLE 6 – REGISTERED CAPITAL
The registered share capital of the Company is set at EUR
7,851,636,342.00 (seven billion, eight hundred and fifty-one million,
six hundred and thirty-six thousand, three hundred and forty-two
euros). The capital is divided into 290,801,346 (two hundred and
ninety million, eight hundred and one thousand, three hundred and
forty-six) fully paid-up shares, each with a nominal value of EUR
27 (twenty-seven euros).
ARTICLE 7 – FORM OF THE SHARES –
ASSIGNMENT AND TRANSFER OF SHARES
7A. FORM OF THE SHARES
The shares must be registered in a pure nominative account at
the issuing company.
7B. ASSIGNMENT AND TRANSFER OF SHARES
I. The assignment of shares for the benefit of spouses, ascendants
and descendants is subject to no restriction.
The same shall apply to assignments for the benefit of Crédit
Agricole S.A. and of any company placed under its control, under
the terms of article L233-3 I & II of the French Commercial Code.
II. Except for cases mentioned under (I.) above, no private individual or
legal entity (hereinafter the “Assignee”) may become a shareholder
of the Company or the holder of a right stripped from any share or
any right derived therefrom in any manner whatsoever (hereinafter
the “Assignment”) if that person or entity has not been previously
approved by the Chairman of the Board of Directors under the
conditions set forth hereinbelow:
1°. The application for approval of the assignee shall be notified
to the Company by extrajudicial instrument or by registered mail,
return receipt requested, indicating the last name, first names
and address of the assignee, the number of shares of which the
assignment is envisaged, the price offered and the terms of sale.
Approval shall be constituted either by notification thereof, or by
the absence of such notification within a period of three months
as from the date of the application.
The decision to approve shall be taken by the Chairman. No reasons
need be given for that decision and in the event of a rejection this
shall under no circumstances be justification for any claim.
The assignor shall be informed of the decision within fifteen days of
receipt of the notification by registered mail, return receipt requested.
In the event of a rejection, the assignor shall have ten days from
the date of receipt and in accordance with same procedure as
above, to make it known whether or not he wishes to abandon
the proposed assignment.
2°. If the assignor does not abandon the proposed assignment,
the Chairman shall be bound, within a maximum period of three
months from the date of notification of the rejection, to arrange
for the acquisition of the shares either by existing shareholders
or by third parties, or, with the consent of the assignor, by the
Company with a view to reducing its share capital.
To that end, the Chairman shall inform the shareholders of the
proposed assignment by registered mail, return receipt requested,
Chapter 8 – General information
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2021
inviting each to indicate the number of shares he wishes to acquire.
Offers to purchase shares shall be sent by shareholders to the
Chairman by registered mail, return receipt requested, within ten
days of the date of receipt of the notification. The allocation of
the shares proposed for sale between the shareholders wishing
to purchase them shall be determined by the Chairman in pro-
portion to their respective holdings in the total share capital and
up to the limit of their applications.
3°. If no application to purchase shares is sent to the Chairman
within the above time limit or if the requests do not cover the total
number of the shares, the Chairman may arrange for the available
shares to be purchased by third parties.
4°. With the agreement of the assignor, the shares may also be
purchased by the Company. The Chairman shall seek such agree-
ment by registered mail, return receipt requested, to which the
assignor must respond within ten days of receipt.
If this agreement is given, the Board of Directors shall, upon pro-
posal by the Chairman, call an Extraordinary General Meeting of
shareholders for the purpose of deciding upon the redemption
of the shares by the Company and the corresponding reduction
in share capital. The Notice of Meeting must be sent out suffi-
ciently early to ensure that the three-month time limit is observed
as stipulated below.
In all the cases of purchase or redemption described above, the
price for the shares shall be set as indicated at point (6) below.
5°. If all the shares have not been purchased or redeemed within
a period of three months from the date of the notification of rejec-
tion, the assignor may complete the sale to the initial assignee
for the totality of the shares to be assigned, notwithstanding the
offers of partial purchase that may have been made.
The three months period may be extended by a court injunc-
tion issued in summary proceedings by the President of the
Commercial Court, and not subject to appeal, at the behest of
the Company, with the assigning shareholder and the assignee
being duly called to attend the hearing.
6°. In the event that the shares on offer are acquired by share-
holders or third parties, the Chairman shall notify to the assignor
the last name, first names and address of the purchaser(s).
Failing an agreement between the parties, the price for the shares
shall be determined under the conditions set forth in Article 1843-4
of the French Code of Civil Law.
The cost of the expert valuation shall be borne equally by vendor
and purchaser.
7°. Within eight days of the date of determination of the price,
notification shall be sent to the assignor by registered mail, return
receipt requested, indicating that he must, within fifteen days of
the receipt of that notification, make it known whether he wishes
to abandon the proposed assignment or, if not, attend the regis-
tered office to receive payment of the price, which shall not bear
interest, and to sign the share transfer form. Failing attendance
by the assignor within the above-mentioned time limit of fifteen
days, or failing notification to the Company within that time limit
of his intention to abandon the assignment, the assignment to
the purchaser or purchasers shall be formalised on the instruc-
tions of the Chairman of the Board of Directors or a specifically
authorised person, with effect from the date of the formalisation
of said assignment.
8°. The provisions of the present article shall apply generally to all
and any manner of transfer of ownership, whether free of charge
or not, by private deed or in any other manner, even where the
assignment is effected by public auction under a court order or
following a private decision, and whether such assignment is vol-
untary or enforced. They shall apply in particular to contributions
to corporate capital, partial contributions of assets, mergers, spin-
offs (scissions) and general transfers of property.
9°. The approval provisions contained in the present Article shall
also apply to the assignment of rights of allocation of shares in the
event of an increase in share capital by means of an incorporation
of reserve funds, profits or issue premiums. They shall further apply
in the event of the assignment of share subscription rights asso-
ciated with an increase in capital in cash or individual relinquish-
ment of subscription rights in favour of designated beneficiaries.
In either of these cases, the approval and the conditions governing
the redemption of shares stipulated in the present article shall apply
to all shares subscribed, and the time allowed to the Chairman for
the notification to third party subscribers of their acceptance or
rejection as shareholders shall be three months as from the date
of final completion of the increase in share capital.
Where the shares are redeemed, the price shall be equal to the
value of the new shares as determined under the conditions set
forth in Article 1843-4 of the Code of Civil Law.
10°. In the event of allocation of shares following the distribution
of the assets of a company holding those shares, allocations to
persons who are not already shareholders of the Company shall
be subject to the approval procedure described herein.
Consequently, any proposal to allocate shares to persons other
than existing shareholders shall give rise to an application for
approval by the liquidator of the company under the provisions
of paragraph (1) hereinabove.
Failing notification to the liquidator of the Chairman’s decision
within three months of the date of the application for approval,
such application shall be deemed approved.
In the event of a refusal to approve certain proposed recipients
of allocations, the liquidator may, within thirty days of the notifi-
cation of such refusal, amend the allocations in order to submit
only those recipients who are approved.
If all the proposed recipients are rejected, or if the liquidator has not
amended his proposed distribution within the above-mentioned
time limit, the shares allocated to the non-approved shareholders
must be purchased or redeemed from the company in liquida-
tion under the conditions set forth in paragraphs 2 to 4 above.
Failing such purchase or redemption of the totality of the shares
covered by the rejection, within the time limit stipulated at point
(5) above, the distribution may be completed in accordance with
the proposal submitted.
III. Transfer of ownership of shares through inheritance or related to
the liquidation of a common property between spouses is subject
to no restriction.
ARTICLE 8 - RIGHTS AND OBLIGATIONS
ATTACHED TO SHARES
Each share confers, in the ownership of the Company’s assets, the
distribution of profits and the liquidation bonus, a right proportional
to the number of existing shares, taking into account, where
applicable, redeemed and non-redeemed, fully paid-up and partly
paid-up capital, the nominal amount of the shares and the rights
of other classes of shares.
All present and future shares in the capital shall invariably be treated
equally with regard to tax liability. Consequently, all duties and
taxes which, for whatever reason, may become payable solely
in respect of certain shares further to their redemption, whether
during the life of the Company or upon its liquidation, shall be
spread over all the shares making up the capital at the time of such
redemption, in a manner such that all the present or future shares
shall confer upon their owners, taking account where applicable
of their nominal and non-redeemed amount and of the rights of
shares of other classes, the same actual advantages and right to
receive the same net amount.
On each occasion that it may be necessary to hold more than
one share in order to exercise any right, the ownership of a single
share or of shares in a number less than that required shall confer
no right with respect to the Company, it being the responsibility of
the shareholders to arrange personally for the grouping and, where
applicable, for the purchase or sale of the necessary number of
shares.
Chapter 8 – General information
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TITLE III
MANAGEMENT OF THE COMPANY
ARTICLE 9 – MEMBERSHIP OF THE BOARD OF
DIRECTORS
The Company shall be managed by a Board of Directors with
between six and twenty members. At least six Directors shall be
appointed by General Meetings of shareholders in accordance with
the provisions of Article L. 225-18 of the French Commercial Code
or any subsequent provision deriving therefrom, and two shall be
elected by the salaried employees in accordance with the provisions
of Articles L. 225-27 to L. 225-34 of the French Commercial Code
or any subsequent provisions deriving therefrom.
The following persons may also attend Board meetings in an
advisory capacity:
y
if applicable, one or more censeurs (non-voting members of
the Board) appointed in accordance with Article 17 below,
y
one member of the Economic and Social Committee, appointed
by said Committee.
1. DIRECTORS APPOINTED BY GENERAL
MEETINGS OF SHAREHOLDERS
These Directors shall be appointed, renewed or removed in
accordance with the legal and regulatory provisions in force.
Their term of office shall be three years. However:
y
by way of exception, the General Meeting may, for the estab-
lishment or maintenance of a staggering, appoint one or several
directors for a different term not exceeding three years, in
order to allow a staggered renewal of the directors’ mandates,
y
any Director appointed to replace another whose term of office
has not expired shall hold office only for the remainder of his
predecessor’s term.
In the event of a vacancy or vacancies subsequent to death or
resignation, or in other cases listed by law, such vacancies may be
filled provisionally by co-optation under the conditions laid down
by law and regulations in force.
2. DIRECTORS ELECTED BY EMPLOYEES
Two members shall be elected by the employees: one shall be
elected by executive level staff (cadres), the other by the other
categories of staff.
In any event, the number of members elected in this way may
not exceed one-third of the members appointed by the General
Meeting.
They shall be elected under the terms and in accordance with legal
and regulatory provisions in force or, failing this, as determined by
the Chief Executive Officer after consultation with the trade unions
represented in the Company.
Both these Directors are elected for a term of office ending the
same day:
y
either at the close of the Annual Shareholders meeting held in
the third calendar year following their election,
y
or upon completion of the elections organized during this third
calendar year when these take place after the annual share-
holders meeting.
Where a seat falls vacant due to the death, resignation, removal
or termination of the employment contract of a Director elected by
employees, the vacancy shall be filled in accordance with the legal
and regulatory provisions in force and the new Director shall take
office immediately. If replacement proves impossible, elections for
such member shall take place within three months.
In any event, the term for which a Director elected by employees
may hold office shall be limited to the period remaining to run until
the date on which his contract of employment ends.
ARTICLE 10 – OTHER PROVISIONS RELATIVE TO
THE DIRECTORS
Any Director turning sixty five is automatically deemed to be
resigning at the close of the annual General meeting of shareholders
immediately following his/her sixty fifth birthday.
The term of office of a Director appointed by the shareholders in
General meeting can however be renewed from year to year up
to a maximum five times, being specified that at no time can the
number of directors aged over sixty five exceed one third of the total
number of Directors. Should the total number of Directors not be
precisely divisible by three, that third part will be rounded upward.
ARTICLE 11 - PROCEEDINGS OF THE BOARD OF
DIRECTORS
The Board of Directors shall meet as often as is dictated by the
Company’s interest, and when called by its Chairman or at least
one third of its members.
If applicable, the Chief Executive Officer may request the Chairman
to call a meeting of the Board on a specific agenda. Any such
request is binding upon the Chairman.
Meetings of the Board of Directors shall be held either at the
registered office or at any other place indicated in the Notice of
Meeting.
Notice of Meeting may be given by any means, even orally.
In order for decisions at such meetings to be valid, at least half of
the Board’s sitting members must be present.
Any member of the Board of Directors may grant a proxy to another
member to represent him at a meeting of the Board. Each member
may hold no more than one proxy at any given meeting.
The Board of Directors’ internal rules may stipulate that for
calculation of the quorum and majority, Directors who take part
in a Board meeting using a remote telecommunications means
such as video-conferencing, the type and conditions of use of such
means being determined by reference to the regulations in force,
shall be deemed to be present.
Decisions shall require a majority vote of those Directors present
in person and by proxy. When voting ends in a tie, the Chairman
shall cast the deciding vote.
The Directors, as well as any other person called to attend the
meetings of the Board of Directors, shall be subject to an obligation
of discretion in respect of the proceedings of the Board as well as
in respect of information of a confidential nature or described as
confidential by the Chairman of the Board.
The chairman or at least one-third of the Directors may consult the
Board of Directors in writing under the quorum and majority rules,
on the following decisions:
y
Replacement of a Director by co-optation mentioned in 9.1 of
the articles of association;
y
Necessary amendment of the articles of association to comply
them with the law;
y
Convening of General Meeting;
y
Transfer of the head office to the same French department.
In case of written consultation, each Director, each Censor and
the representative of the Economic and Social Committee receive
by any means which enables to produce evidence of sending, a
form including the draft of the proposed decisions, with necessary
documents to vote, and the response time from the date of sending.
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During the response time, each Director can ask any explanation or
additional information as it may consider pertinent to him, related
to the consultation subject.
The vote of each Director is cast on the written consultation form
including the draft of the proposed decisions.
In case of failure to reply within the time limit, the Director is
considered as absent for the calculation of quorum. If a Director,
within the time limit, does not express in a clear and unequivocal
manner his vote on one or more of the proposed decisions, it will
be considered as an abstention.
Board decisions are considered to have been made after the
deadline response.
ARTICLE 12 - ATTENDANCE REGISTER AND
MINUTES OF MEETINGS OF THE BOARD OF
DIRECTORS
A register of attendance shall be kept at the registered office and
this shall be signed by the Directors attending each Board meeting.
The proceedings of the Board shall be recorded in minutes drawn
up in accordance with the legal and regulatory provisions in force.
Such minutes shall be signed by the Chairman of the meeting and
by at least one other Director. In the event that the Chairman of
the meeting is unable to sign the minutes, they shall be signed by
at least two Directors.
In case of written consultation of the Board of Directors, the
consultation method, the proposed decisions, the written
consultation results, and the list of the sent documents, are
recorded in the minutes signed by the Chairman or by at least
two Directors.
Production of a copy of, or an extract from the minutes of the
meeting shall suffice as proof of the number of Directors in office
and their presence or representation by proxy.
Copies of, or extracts from minutes of meetings shall be validly
certified by the Chairman and Vice-Chairman of the Board, the
Chief Executive Officer, or an authorised signatory duly empowered
therefor.
During liquidation, such copies or extracts shall be certified by a
single liquidator.
ARTICLE 13 - POWERS OF THE BOARD OF
DIRECTORS
The Board of Directors shall determine the Company’s business
policies and ensure that they are duly implemented. Subject to the
powers expressly allocated to General Meetings of shareholders
and within the limits set by the corporate purpose, it shall consider
any matter relating to the proper operation of the Company and
shall take its decisions on any relevant issues during the course
of its meetings.
The Board of Directors may carry out all checks and verifications it
considers appropriate. The Chairman or the Chief Executive Officer
of the Company shall be bound to provide each Director with all
the information required in order to carry out his assigned tasks.
The Board may decide to set up committees to examine issues that
the Board itself or its Chairman may submit to them. The Board
shall determine the members and powers of such committees,
and they shall act under the Board’s responsibility.
Unless expressly assigned by law, the Board may grant those
of its powers it chooses to any persons or committees it deems
appropriate, by means of a special authorisation and for one
or more specific purposes, with or without the possibility of
sub-delegation.
The Board of Directors shall decide whether the general
management of the Company shall be placed in the hands of the
Chairman of the Board or the Chief Executive Officer.
In general terms, the Board of Directors is vested with all the powers
granted to it under the laws in force.
ARTICLE 14 - REMUNERATION OF DIRECTORS
Directors may receive, in remuneration of their activity, by way
of Directors’ fees, a fixed annual sum, the amount of which shall
be determined by an Ordinary General Meeting and shall remain
applicable until otherwise decided.
The Board of Directors shall distribute the total amount of directors’
fees between its members as it sees fit.
It may also itself allocate exceptional remuneration in respect of
assignments or mandates entrusted to Directors. This remuneration
shall be subject to the legal provisions that govern related party
transactions.
In addition, the Chairman and the Vice-Chairman or Vice-Chairmen
may receive remuneration in an amount to be determined by the
Board of Directors.
ARTICLE 15 - CHAIRMAN OF THE BOARD
The Board of Directors shall elect the Chairman of the Board from
amongst its members. The Board shall determine the length of
his term of office, which may not exceed his term as a Director.
The Board of Directors may elect a Vice-Chairman or several Vice-
Chairmen. It shall also determine the length of his/their term(s) of
office, which may not exceed the length of his/their term(s) as
Director(s).
The Chairman shall organise and coordinate the work of the
Board and report on such activities to the General Meeting. He
shall ensure that the Company’s bodies operate satisfactorily and
ensure, in particular, that the Directors are in a position to carry
out their assignments.
In general terms, the Chairman shall be vested with all powers
granted to him by the legislation in force.
As an exception to the provisions of Article 10 paragraph 1 of the
present Articles of Association, the age limit for the performance
of the duties of Chairman of the Board of Directors is set at 67,
except where the Chairman also acts as Chief Executive Officer
of the Company.
He shall benefit from the provisions of Article 10, paragraph 2.
ARTICLE 16 - GENERAL MANAGEMENT
The Chairman of the Board of Directors, or another individual
appointed by the Board of Directors and having the title of Chief
Executive Officer, shall be responsible for the general management
of the Company.
Upon proposals by the Chief Executive Officer, the Board of
Directors may appoint one or more individuals to assist the Chief
Executive Officer, having the title of Deputy Chief Executive Officers.
1. CHIEF EXECUTIVE OFFICER
Within the limits set by the corporate purpose and subject to those
powers expressly allocated by law to General Meetings and to the
Board of Directors, the Chief Executive Officer shall be vested with
the widest possible powers to act in the Company’s name in all
circumstances.
He shall represent the Company in its relations with third parties,
especially with regard to legal proceedings.
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Taking into account the corporate purpose, and in accordance with
the law, sureties, endorsements and other guarantees in favour of
third parties shall be granted by the Chief Executive Officer.
The Chief Executive Officer may decide to set up committees to
examine issues that he shall submit to them for their opinion. He
shall determine the members and powers of such committees.
The Chief Executive Officer may entrust those of his powers he
chooses to any persons or committees he deems appropriate,
by means of a special authorisation and for one or more specific
purposes, with or without the possibility of sub-delegation of those
same powers.
Where the Chief Executive Officer is a member of the Board of
Directors, his term of office may not exceed his term of office as
Director.
The age limit for Chief Executive Officers is set at sixty-five (65).
Where the Chairman of the Board of Directors is responsible for
the general management of the Company, the provisions of this
article shall apply to him.
2. DEPUTY CHIEF EXECUTIVE OFFICERS
The number of Deputy Chief Executive Officers is limited to a
maximum of five.
The age limit for Deputy Chief Executive Officer is set at sixty-five (65).
When they are appointed, the scope and term of the powers of
each Deputy Chief Executive Officer shall be set by the Board of
Directors, in agreement with the Chief Executive Officer.
With regard to third parties, Deputy Chief Executive Officers shall
benefit from the same powers as the Chief Executive Officer.
ARTICLE 17 - CENSEURS (NON-VOTING
ADVISORY MEMBERS OF THE BOARD)
Upon proposal by the Chairman, the Board of Directors may appoint
one or more legal entities or individuals as
censeurs
(non-voting
advisory members of the Board).
Censeurs
shall be appointed for a term of office that shall expire at the
close of the first Board Meeting held after the Annual General Meeting
called during the third calendar year following the year in which they
were appointed as such. Any
Censeur
reaching the age of seventy
two is deemed to resign automatically at the close of the Board
meeting immediately following his/her seventy second birthday.
Each
Censeur
may be removed from office at any time by the Board
of Directors upon proposal by the Chairman.
Depending on the agenda,
Censeurs
are called to attend meetings of
the Board of Directors and General Meetings of the shareholders, and
may, if invited to do so by the Chairman, take part in the proceedings
in an advisory capacity.
Censeurs
may receive fees in an amount decided by the Board.
TITLE IV
COMPANY AUDITS
ARTICLE 18 – STATUTORY AUDITORS
An Ordinary General Meeting of shareholders shall appoint Statutory
Auditors to carry out assigned tasks as specified in law, at the times
and under the conditions provided by the legislation in force.
Statutory Auditors shall be eligible for reappointment.
They shall receive remuneration in an amount determined in
accordance with the terms and conditions laid down in the laws
and regulations in force.
TITLE V
GENERAL MEETINGS
ARTICLE 19 – COMPOSITION - NATURE OF
MEETINGS
General Meetings shall be composed of all shareholders, regardless
of the number of shares they may own.
Duly constituted General Meetings shall represent all shareholders.
Resolutions passed in General Meetings in accordance with the
laws and regulations in force shall be binding on all shareholders.
General Meetings shall be designated as Extraordinary General
Meetings where their resolutions relate to an amendment of the
Articles of Association; they shall be designated as Ordinary General
Meetings in all other cases.
Special Meetings of shareholders may take place involving the
owners of a specific class of shares, if any, to decide upon changes
to the rights attached to the shares of such class.
Such Special Meetings of shareholders shall be called and proceed
in the same manner as Extraordinary General Meetings.
ARTICLE 20 - MEETINGS
General Meetings shall be called in accordance with the provisions
of the laws and regulations in force.
Meetings shall be held either at the Company’s registered office or
at any other place designated in the Notice of Meeting.
General Meetings shall be chaired by the Chairman of the Board
of Directors or, in his absence, by a Vice-Chairman of the Board of
Directors or by a Director appointed by the Chairman of the Board
of Directors for that purpose. Failing this, the General Meeting may
itself elect the chair of the meeting.
The agenda shall be determined by the author of the Notice of
Meeting. Only proposals from the author of the Notice of Meeting
or from the shareholders shall be included in the agenda.
Each shareholder in the Ordinary or Extraordinary General Meeting
shall have a number of votes proportional to the fraction of the
Company’s capital corresponding to the shares he owns or
represents, provided however that such shares are not deprived
of the right to vote.
The Board of Directors may decide that shareholders taking part in
the meeting via videoconferencing facilities or by some other means
of remote telecommunications enabling them to be satisfactorily
identified shall be deemed to be personally present at the meeting
for the purposes of calculation of the quorum and the majority,
provided however that the type and conditions of use of such
means shall comply with the laws and regulations in force.
ARTICLE 21 - ORDINARY GENERAL MEETINGS
Ordinary General Meetings shall proceed in accordance with the
quorum and majority rules as provided by the laws and regulations
in force.
Shareholders shall be called each year to attend an Ordinary
General Meeting.
The annual Ordinary General Meeting shall consider the report of
the Board of Directors and the reports of the Statutory Auditors.
It shall discuss, approve or adjust the annual financial statements
and the consolidated financial statements, if any, and shall
determine the manner in which the net earnings for the financial
year shall be allocated.
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It shall appoint the auditors.
It shall consider any other proposals on the agenda which do not
fall within the remit of Extraordinary General Meetings.
In addition to this Annual General Meeting, Ordinary General
Meetings may be called in exceptional circumstances.
ARTICLE 22 - EXTRAORDINARY GENERAL
MEETINGS
Extraordinary General Meetings shall proceed in accordance with
the quorum and majority rules as provided by laws and regulations
in force.
Extraordinary General Meetings may make all and any amendments
to the Articles of Association.
ARTICLE 23 - MINUTES
The proceedings of General Meetings of shareholders shall be
recorded in minutes drawn up on a special register or on numbered
loose-leaf pages. Such minutes shall be signed by the shareholders
who have been appointed as officers of the meeting.
Evidence to third parties of the proceedings of any General Meeting
may be properly provided by copies or extracts duly certified as
a true record by the Chairman of the Board of Directors, a Vice-
Chairman of the Board of Directors, the Secretary of the Meeting,
or a company officer duly empowered therefor by any one of the
above-mentioned persons.
TITLE VI
COMPANY ACCOUNTS
ARTICLE 24 – FINANCIAL YEAR
The financial year shall begin on 1 January and end on 31
December.
ARTICLE 25 - ACCOUNTING DOCUMENTS
At the close of each financial year, the Board of Directors shall draw
up a detailed statement of assets and liabilities and the annual
financial statements and, in addition, shall prepare a report on the
management of the Company in compliance with applicable legal
and regulatory provisions.
ARTICLE 26 - ALLOCATION AND DISTRIBUTION
OF PROFIT
I - NET EARNINGS IN THE FINANCIAL YEAR -
STATUTORY RESERVE – DISTRIBUTABLE PROFIT
Those amounts laid down by the legislation in force shall be set
aside from the net earnings for the financial year, from which shall
be deducted any losses carried forward from previous years when
applicable.
The balance, plus any profit carried forward from previous years,
shall form the distributable profit.
II - ALLOCATION OF DISTRIBUTABLE PROFIT -
DISTRIBUTION OF RESERVES
1. Retained earnings and creation of reserves
An Ordinary General Meeting may set aside from the distributable
profit any amounts to be carried forward or to be allocated to
one or more reserve funds. Such reserve fund or funds shall be
available for allocation to any purpose determined by a General
Meeting of shareholders as proposed by the Board of Directors
and in particular for the redemption or reduction of the capital by
way of reimbursement or redemption of shares.
2. Dividends
The balance of the distributable profit shall be distributed between
the shareholders in proportion to their shares in the capital of the
Company.
3. Distribution of Reserves
The General Meeting may resolve to distribute sums taken from
reserve funds of which it may freely dispose. In such event, the
corresponding resolution shall expressly designate the reserve
funds from which the payments are to be made.
4. Limitations on distribution
With the exception of the case of a reduction in share capital, no
distribution shall be made to the shareholders if the shareholders’
equity is, or would subsequently thereto become, lower than the
amount of share capital plus those reserves that, under the laws
and regulations in force, may not be distributed.
5. Distribution of portfolio securities
An Ordinary General Meeting may, as proposed by the Board
of Directors, decide to allocate, for the purpose of all and any
distributions of profits or reserves, negotiable securities held
in portfolio by the Company, subject to an obligation for the
shareholders to effect groupings as may be necessary to obtain
the desired number of securities thus allocated.
III – PAYMENT OF DIVIDENDS
The manner in which dividends decided by the General Meeting are
to be paid out shall be specified by the General Meeting or, failing
this, by the Board of Directors, but payment within the period set
by the laws and regulations in force shall be mandatory.
The General Meeting called in order to approve the financial
statements for the financial year may grant each shareholder, for
all or part of any distributed final or interim dividend, an option for
the payment of that final or interim dividend in cash or in shares.
TITLE VII
DISSOLUTION – LIQUIDATION
ARTICLE 27
Unless otherwise provided by the laws and regulations in force,
at the end of the Company’s term of existence or in the event
of its earlier dissolution, a General Meeting of shareholders shall
determine the method of liquidation and appoint one or more
liquidators whose powers the Meeting shall determine.
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2.
INFORMATION ABOUT THE COMPANY
2.1 CORPORATE NAME
Crédit Agricole Corporate and Investment Bank.
2.2 REGISTERED OFFICE
12, place des États-Unis
CS 70052
92547 MONTROUGE CEDEX
France
Tel: +33 (0)1 41 89 00 00
Website: www.ca-cib.com
2.3 FINANCIAL YEAR
The company’s financial year begins on 1 January and ends on
31 December each year.
2.4 DATE OF INCORPORATION AND
DURATION OF THE COMPANY
The Company was incorporated on 23 November 1973. Its term
ends on 25 November 2064, unless the term is extended or the
Company is wound up before that date.
2.5 LEGAL STATUS
Crédit Agricole Corporate and Investment Bank is a French
société
anonyme
(joint stock Corporation) with a Board of Directors
governed by ordinary company law, in particular the Second Book
of the French Commercial Code (Code de commerce).
Crédit Agricole Corporate and Investment Bank is a credit institution
approved in France and authorised to conduct all banking
operations and provide all investment and related services referred
to in the French Monetary and Financial Code (
Code Monétaire et
Financier
). In this respect, Crédit Agricole CIB is subject to over-
sight French Regulatory and Resolution Supervisory Authority
(
Autorité de contrôle prudentiel et de résolution
). In its capacity as
a credit institution authorised to provide investment services, the
Company is subject to the French Monetary and Financial Code,
particularly the provisions relating to the activity and control of credit
institutions and investment service providers.
2.6 INVESTMENTS MADE BY CRÉDIT AGRICOLE CIB OVER THE PAST THREE YEARS
Completed acquisitions
Date
Investments
Financing
N/A
N.B.: Crédit Agricole CIB cannot disclose certain information about investment amounts without violating confidentiality agreements or revealing information to its rivals that could be
detrimental to the Group
Acquisitions in progress and upcoming
Crédit Agricole CIB has no significant investments to come and identified at this stage, and significant investments in progress.
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2.7 NEW PRODUCTS AND SERVICES
Crédit Agricole CIB has marketed an innovative offer in accordance
with the Paris Agreement. The offer consists of structured products
indexed to equity markets and provides investors with a sustainable
investment solution aligned with the European Union commitments
in terms of carbon footprint reduction.
2.8 MATERIAL CONTRACTS
Crédit Agricole CIB has not entered into any material contracts
conferring a significant obligation or commitment on the Crédit
Agricole CIB Group, apart from those concluded within the normal
conduct of its business.
2.9 RECENT TRENDS
Crédit Agricole CIB’s perspectives have not suffered any significant
deterioration since 31 December 2021, the date of its latest audited
and published financial statements (see the ”Recent trends and
outlook” section of chapter 4 “2021 business review and financial
information” of this present document).
2.10 SIGNIFICANT
CHANGES
Post-closing events that are not supposed to impact accounts
closed as of December 31, 2021.
Since 31 December 2021, there has been no significant change
in the Group’s financial or commercial situation has not occurred.
2.11 ISSUER STATEMENT
The present Universal Registration Document has been filed with
AMF as competent authority under Regulation (UE) 2°17/1129,
without prior approval pursuant to Article 9 of the said regulation.
The Universal Registration Document may be used for the purposes
of an offer of securities to the public or an admission of securities
to trading on a regulated market if completed by a securities note
and, if applicable, a summary and any amendments to the Universal
Registration Document. The whole is approved by the AMF in
accordance with Regulation (EU) 2017/1129.
This is a translation into English to the Universal Registration
Document of the company issued in French an it is available on
the website of the Issuer.
2.12 PUBLICLY AVAILABLE DOCUMENTS
The present document is available on the website:
https://www.ca-cib.com/about-us/financial-information
and on the French Financial markets authority (Autorité des
Marchés Financiers, AMF) website in a French version:
www.amf-france.org
The entire regulated information, as defined by the AMF (under
Title II of Book II of the AMF General Regulation), is available on
the website of the Company:
https://www.ca-cib.com/about-us/financial-information/
regulated-information
Caution:
information found on the website is not included on the
document, unless such information is incorporated by reference
in the prospectus.
Articles of Association are available on section 1 “Articles of
association effective at December, 31 2021” of chapter 8 “General
information” of this present document.
A copy of these Articles of Association can also be obtained from
Crédit Agricole CIB’s Head Office and/or the French Trade and
Companies Register (
Registre du Commerce et des Sociétés
).
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3.
STATUTORY AUDITORS’ SPECIAL REPORT ON
RELATED PARTY AGREEMENTS
General Meeting for the approval of the financial statements for the year
ended 31 December 2021
Crédit Agricole Corporate and Investment Bank - 12 place des Etats-Unis - 92547 Montrouge Cedex, France
To the Shareholders,
In our capacity as Statutory Auditors of Crédit Agricole Corporate and Investment Bank (“Crédit Agricole CIB”), we hereby report to you
on related party agreements.
It is our responsibility to report to shareholders, based on the information provided to us, on the main terms and conditions of the agreements
that have been disclosed to us or that we may have identified as part of our engagement, as well as the reasons given as to why they are
beneficial for the Company, without commenting on their relevance or substance or identifying any undisclosed agreements. Under the
provisions of Article R.225-31 of the French Commercial Code (Code de commerce), it is the responsibility of the shareholders to determine
whether the agreements are appropriate and should be approved.
Where applicable, it is also our responsibility to provide shareholders with the information required by Article R.225-31 of the French
Commercial Code in relation to the implementation during the year of agreements already approved by the General Meeting.
We performed the procedures that we deemed necessary in accordance with professional standards applicable in France to such
engagements. These procedures consisted in verifying that the information given to us is consistent with the underlying documents.
3.1. AGREEMENTS TO BE SUBMITTED FOR THE APPROVAL OF THE GENERAL MEETING
In accordance with Article L. 225-40 of the French Commercial
Code (Code de commerce), we have been notified of the following
related party agreements entered into during the past financial year
and which received prior authorization from your Board of Directors.
Agreement for Crédit Agricole CIB to assume
CA Indosuez’s corporate income tax liability on
the foreign exchange gains or losses relating to
the CHF-denominated investments received in
connection with the merger of CA Indosuez Wealth
(Group) into CA Indosuez on 1 July 2021
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Société Crédit Agricole S.A., shareholder; corporate officers in
common: Françoise Gri, Catherine Pourre and Philippe Brassac.
NATURE AND PURPOSE
The tax consolidation agreement entered into on 30 June 2020
between Crédit Agricole S.A. (CASA), Crédit Agricole CIB (CACIB)
and CA Indosuez Wealth France (CAIWF) stipulates that CAIWF will
bear a corporate income tax charge equal to that which it would
have borne in the absence of tax consolidation and that it will pay
its corporate income tax directly to Crédit Agricole S.A.
On 1 July 2021, as part of the merger of CA Indosuez Wealth
(Group) into CA Indosuez Wealth France (now CA Indosuez), CA
Indosuez (CAI) received all of the assets and liabilities of CAIWG,
including as assets, the CHF-denominated securities of CAI Suisse
(CAIS) and Azqore, and as liabilities, a CHF-denominated loan.
Unlike CAIWG, CAI is a credit institution and, pursuant to the
provisions of Article 38-4, paragraph 2 of the French tax code
(Code général des impôts), must include in its taxable income the
foreign exchange gains or losses on foreign currency securities and
loans as well as the income or expenses on hedging derivatives.
This will eventually lead to baseline tax neutrality, but, in the year
of the merger, CAI must include in its taxable income a significant
amount in respect of the first foreign exchange gains or losses on
the CAIS and Azqore shares (the “Initial Tax Spread”).
As the head of the tax consolidation subgroup, Crédit Agricole CIB
benefited, in its relations with Crédit Agricole S.A., from the “Tax
gain” resulting from the tax losses generated by CAIWG and,
therefore, it seems justified to take on the cost of the corporate
income tax on the Initial Tax Spread, up to the amount of the tax
savings generated in the past in respect of:
y
foreign exchange gains or losses on the CHF loan;
y
and net financial expenses on hedging derivatives;
y
as it would be unfair for CAI to bear this corporate income
tax cost.
CONDITIONS
The agreement aims to provide a framework for Crédit Agricole
CIB to assume the Initial Tax Spread, instead of CAI, pursuant to
the following terms and conditions:
y
the amount of CAI’s tax exemption for 2021, corresponding to
the Initial Tax Spread, capped at the Tax Gain related to the
CHF hedges, i.e., a maximum of €49,798,767
y
in the event that the taxable income declared by CAI for 2021
is less than the amount of the Initial Tax Spread and that
the amount of CAI’s contribution to the Group’s tax payment
before the exemption organised by the agreement (“2021 Gross
Contribution”) is less than the amount of the Initial Tax Spread,
the parties agree that the amount in excess over the 2021
Gross Contribution will be subtracted from the amount that
CAI contributes to the Group’s tax payment for the following
financial years, until the difference is zeroed out.
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y
Crédit Agricole CIB, as the head of the tax consolidation sub-
group having benefited from the “Tax gains” that resulted from
CAIWG’s deduction of foreign exchange gains or losses on
CHF-denominated borrowings and the net financial expenses
on hedging derivatives in respect of previous financial years,
agrees to pay the Initial Tax Spread, from which CAI is exempt.
y
Crédit Agricole CIB does not owe any compensation to CAI
for the losses generated by the absorbed CAIWG beyond the
tax savings previously generated by the foreign exchange gains
or losses on the CHF-denominated loan and the net financial
expenses on hedging derivatives.
REASONS JUSTIFYING WHY THE COMPANY
BENEFITS FROM THIS AGREEMENT
This agreement is a related party agreement governed by the
provisions of Article L.225-38 of the French Commercial Code.
While the strict application of tax consolidation rules (which
provide that the absorbed company CAIWG’s losses are forfeited)
would not in principle lead to Crédit Agricole CIB paying CA
Indosuez’s corporate income tax following the revaluation of its
CHF-denominated shares, it would seem legitimate to provide for
such payment for the benefit of CA Indosuez (which takes over
CAIWG’s rights and obligations) and within the limit of the tax
savings previously generated by Crédit Agricole CIB insofar as
Crédit Agricole CIB previously benefited from these tax savings
in past years thanks to the losses generated by CAIWG.
Guarantee granted to the corporate officers
CORPORATE OFFICERS CONCERNED:
Members of the Board of Directors
NATURE AND PURPOSE
To enable the Company to assume the costs resulting from
proceedings against all corporate officers, including directors,
the Board of Directors, at its meeting of 20 December 2012,
was asked to authorise the conclusion of a guarantee in favour
of directors, including the Chairman.
CONDITIONS
The purpose of this guarantee is to cover any risk of liability in
legal or administrative proceedings initiated against corporate
officers, notably in the United States, during the period set under
the statute of limitations applicable to the claims in question, plus
three months. It was submitted to the shareholders for approval
at the Ordinary General Meeting of 30 April 2013 based on
the Statutory Auditors’ report on related party agreements, in
accordance with Article L.225-42 of the French Commercial Code
(Code de commerce), the Board having recused itself insofar as
all Directors were concerned.
In view of the positions held by the Directors within the Company,
the Board was asked, at its meeting of 29 October 2015, to
authorise the amendment of the guarantee in favour of the
Directors in order to give it the same degree of clarity as that
authorised by the Board of Directors at its meeting of 30 July 2015
in favour of the members of Executive Management.
Having noted that all Directors were concerned and that they
could therefore not take part in the vote, the Board of Directors
submitted this agreement to the approval of the Ordinary General
Meeting of 9 May 2016 on the basis of the Statutory Auditors’
special report, in accordance with Article L.225-42 of the French
Commercial Code (Code de commerce).
All of the Directors benefit from this guarantee.
REASONS JUSTIFYING WHY THE COMPANY
BENEFITS FROM THIS AGREEMENT
During 2021, the Board of Directors authorised the application
of this guarantee to Laure Belluzzo, co-opted by the Board of
Directors on 2 November 2021, to Guy Guilaumé and Claude
Vivenot, appointed as Directors by the General Meeting on 3 May
2021.
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3.2. AGREEMENTS ALREADY APPROVED BY THE GENERAL MEETING
In accordance with Article R. 225-30 of the French Commercial
Code (Code de commerce), we have been notified that the
implementation of the following agreements, which were approved
by the Annual General Meeting in prior years, continued during the
past financial year.
With Crédit Agricole S.
A., shareholder
holding more than 10% of voting rights
Subscription for preferred shares or super-
subordinated notes (
titres super subordonnées
“TSS”)
NATURE AND PURPOSE
Within the context of the strengthening of the shareholders’ equity
made necessary by the transfer to Crédit Agricole CIB (formerly
Crédit Agricole Indosuez) of the Corporate and Investment Banking
activities of Crédit Lyonnais, the Board of Directors, at its meeting
on 4 March 2004, authorised one or more issues of super-
subordinated notes or preferred shares.
CONDITIONS
In this context, Crédit Agricole S. A. subscribed to two series of
USD-denominated super-subordinated notes issued in 2004 for
a total of USD 1,730 million.
During 2014, one of the issues for USD 1,260 million was redeemed
in advance on 28 February 2014.
For the only issue of USD 470 million, still outstanding and
partially reimbursed at the beginning of 2019 for an amount
of USD 270 million (the lifetime notional amount for 2021 was
USD 200 million), the total coupon due for 2021, excluding late-
payment interest, was USD 3,850,000.
Agreement relating to the payment of the Euribor
fine
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Philippe Brassac, CEO of Crédit Agricole S.A. and Chairman of the
Board of Directors of Crédit Agricole CIB, François Thibault (until the
end of his term of office at Crédit Agricole S.A. on 13 May 2020),
Director of both Crédit Agricole S.A. and Crédit Agricole CIB, as
well as, in the same capacity, François Veverka and Jean-Louis
Roveyaz until the end of their terms of office as members of the
Board of Directors of Crédit Agricole CIB on 4 May 2017.
NATURE AND PURPOSE
On 7 December 2016, the European Commission sentenced Crédit
Agricole CIB and Crédit Agricole S.A., considered to be jointly and
severally liable, to a fine of €114,654,000 after an investigation
carried out by the Commission concluding that a cartel existed
among seven banking institutions in relation to interest-rate
derivatives in euros by agreeing on the determination of the Euribor
benchmark interest rate.
As soon as the Commission’s judgement was delivered, Crédit
Agricole announced that it would appeal the decision before the
General Court of the European Union. An appeal was filed on
17 February 2017.
As the appeal did not stay the judgement, Crédit Agricole had to
pay the full amount of the fine by 5 March 2017.
Within this context, it was provided that Crédit Agricole S.A. and
the Company should enter into an agreement determining the
conditions relating to the provisional payment of the fine, and that
the conditions of the breakdown between them of the final amount
of the fine that may have to be paid would be decided after all
European judicial remedies had been exhausted.
CONDITIONS
At its meeting on 10 February 2017, the Board of Directors of
Crédit Agricole CIB authorised the draft agreement between Crédit
Agricole S.A. and Crédit Agricole CIB under which:
y
in the period prior to the obtaining of a decision by a court of
last instance having the force of res judicata, Crédit Agricole S.A.
shall provisionally bear and pay the amount of €114,654,000
in respect of the penalty;
y
the conditions of the breakdown of the final amount of the
potential penalty shall be determined by mutual agreement
between Crédit Agricole S.A. and Crédit Agricole CIB at a later
date, following a decision by a court of last instance having
the force of res judicata.
The agreement was authorised in identical terms by the Board of
Directors of Crédit Agricole S.A. on 20 January 2017.
In accordance with the delegation granted by their respective
Boards, this agreement was signed on 27 February 2017 by Crédit
Agricole CIB’s CEO and the CEO of Crédit Agricole S.A. The penalty
was paid within the statutory time limit, i.e., before 5 March 2017.
Business transfer agreement relating to the transfer
of the banking services division activities from
Crédit Agricole S.A. to Crédit Agricole CIB
This agreement was the subject of an amendment authorised by
the Board of Directors on 10 December 2020, which follows this
agreement.
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Philippe Brassac, CEO of Crédit Agricole S.A. and Chairman of the
Board of Directors of Crédit Agricole CIB, Françoise Gri, Catherine
Pourre and François Thibault (until the end of his term of office at
Crédit Agricole S.A. on 13 May 2020), Directors of both Crédit
Agricole S.A. and Crédit Agricole CIB, as well as, in the same
capacity, Jean-Pierre Paviet until the end of his term of office on
4 May 2018.
NATURE AND PURPOSE
In line with the “Strategic Ambition 2020” Medium-Term Plan,
which aims to refocus Crédit Agricole S.A. on its core activities,
Crédit Agricole S.A. and Crédit Agricole CIB agreed to transfer
Crédit Agricole S.A.’s Banking Services Division (“BSD”) to the
Crédit Agricole CIB’s Operations & Country COOs Division (“OPC”).
The transaction took the form of a business transfer agreement
including:
y
a settlement and correspondent banking activity consisting
for the Banking Services Department in account management
and the provision of services related to this account manage-
ment (particularly electronic transfers, cheque clearing, etc.) for
internal and external customers of the Crédit Agricole Group;
y
an account management activity for the Regional Banks and
some of the other Crédit Agricole Group credit institutions;
and level 1 filter alert processing.
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This processing transfer excluded the management of certain
accounts opened by Regional Banks with Crédit Agricole S.A.
in its capacity as central body in accordance with the applicable
regulations.
CONDITIONS
At its meeting of 12 December 2017, Crédit Agricole CIB’s Board of
Directors authorised the transfer of the BSD activities, as described
above, by means of a business transfer agreement effective 1
January 2018. Since that date, Crédit Agricole CIB has operated
the acquired business with the transferred human and material
resources.
However, for operational reasons and, in particular, IT system
migrations, Crédit Agricole CIB was not able to open accounts
for BSD customers on the transfer date. Consequently, accounts
opened by customers will continue to be administered by Crédit
Agricole S.A. during a transition period and will be opened by
Crédit Agricole CIB during and at the end of the transition period
according to a schedule based on progress made in the work to
be done by Crédit Agricole CIB, which is expected to be completed
no later than 31 December 2022 (this period was extended in
view of the amendment authorised by the Board of Directors on
10 December 2020). During this transition period, Crédit Agricole
S.A. will pass back to Crédit Agricole CIB the revenue from the
operations of the transferred business
received by Crédit Agricole
S.A. from BSD customers. At the same time, all expenses, costs
and liabilities incurred by Crédit Agricole S. A. in respect of the
transferred business will be paid by Crédit Agricole CIB.
The business transfer was granted and accepted in return for the
payment of fifty-seven thousand euros (€57,000).
As the business transfer agreement is not a routine business
transaction for Crédit Agricole S.A. or Crédit Agricole CIB and
thus cannot be considered as an “ordinary transaction entered
into on an arm’s length basis”, it falls within the scope of a related
party agreement governed by the provisions of Article L.225-38 of
the French Commercial Code (
Code de commerce
).
Amendment to the business transfer agreement
relating to the transfer of the banking services
division’s activities from Crédit Agricole S.A. to
Crédit Agricole CIB
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Crédit Agricole S.A., shareholder; corporate officers in common:
Françoise Gri, Catherine Pourre, Philippe Brassac and François
Thibault (until the end of his term of office at Crédit Agricole S. A.
on 13 May 2020).
DESCRIPTION OF THE INITIAL PROJECT
On 1 January 2018, Crédit Agricole S.A. transferred certain
activities managed by its Banking Services Division (“BSD”) to
Crédit Agricole CIB, by means of a business transfer agreement
entered into on 20 December 2017.
The management of certain accounts opened by the Regional
Banks with Crédit Agricole S. A. in its capacity as central body,
in accordance with the applicable regulations, was nevertheless
excluded from the scope of the transfer and maintained at Crédit
Agricole S. A.
For operational reasons, in particular the migration of IT systems,
Crédit Agricole CIB was not able, as of 1 January 2018, to open
accounts for the BSD customers. Consequently, it was agreed that
Crédit Agricole S.A. would maintain its contractual relations with
the BSD customers and would continue to manage the accounts
opened by the latter, during a transition period starting on 1 January
2018.
NATURE AND PURPOSE
Crédit Agricole CIB and Crédit Agricole S.A. decided to negotiate
and establish the terms and conditions of changes to the initial
project through an amendment to the business transfer agreement.
Crédit Agricole S.A. and Crédit Agricole CIB proposed to marginally
adjust the scope of the transfer so as to exclude the following
transferred activities, maintained at Crédit Agricole S.A. since
1 January 2018:
y
CRCA and AMUNDI “mandatory reserve” accounts;
y
BforBank “Investment” and “Refinancing” accounts;
y
Two embargoed accounts and one account held by a deceased
individual.
At the same time, Crédit Agricole S.A. and Crédit Agricole CIB also
planned to extend the time limit of the transition period.
TERMS AND CONDITIONS
The business transfer agreement is cancelled in part, with
retroactive effect from 1 January 2018, in order to expressly exclude
the activities maintained from the scope of the transfer, as well as
all the rights and obligations attached thereto such as existed at
the date of transfer, and to include them in the excluded activities
with retroactive effect from the date of transfer.
The partial cancellation of the business transfer agreement
does not give rise to the retrocession by Crédit Agricole S.A. to
Crédit Agricole CIB of a share of the transfer price relating to the
maintained activities, the latter having been valued at zero when
the transfer price was established.
The time limit for the transition period is extended until a date to
be mutually agreed by Crédit Agricole S.A. and Crédit Agricole CIB
when the IT systems migration will be completed and the other
operational constraints will have been lifted, and no later than 31
December 2022 (or possibly mid-2023). In addition, Crédit Agricole
S.A. and Crédit Agricole CIB may mutually agree to change the
time limit at any time during the transition period.
The conclusion of the amendment to the business transfer
agreement is not a routine business transaction for Crédit Agricole
S.A. or Crédit Agricole CIB. Consequently, the amendment to
the business transfer agreement cannot be characterised as
an “ordinary transaction entered into on an arm’s length basis”
either for Crédit Agricole S.A. or for Crédit Agricole CIB, and
both companies must comply with the related party agreements
procedure.
Billing and collection mandate as part of the transfer
of Crédit Agricole S.A.’s IT services management
activities (MSI) to Crédit Agricole CIB.
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Philippe Brassac, CEO of Crédit Agricole S.A. and Chairman of the
Board of Directors of Crédit Agricole CIB, Françoise Gri, Catherine
Pourre and François Thibault (until the end of his term of office
at Crédit Agricole S.A on 13 May 2020), Directors of both Crédit
Agricole S.A and Crédit Agricole CIB, as well as, in the same
capacity, Jean-Pierre Paviet until the end of his term of office on
4 May 2018.
NATURE AND PURPOSE
At its meeting on 12 December 2017, the Board of Directors of
Crédit Agricole S. A. approved the transfer of Crédit Agricole S.A.’s
IT services management activities (“ITSM”) to Global IT (“GIT”),
which performs the same functions for Crédit Agricole CIB.
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The transfer of the activity took effect on 1 January 2018.
The transfer itself does not constitute a related party agreement but,
as part of this transaction, Crédit Agricole CIB and Crédit Agricole
S.A. set up a temporary billing and collection mandate, which
falls within the scope of paragraph 2 of Article L.225-38 of the
French Commercial Code (Code de commerce) regarding related
party agreements. In this respect, this mandate was authorised
by the Board of Directors of Crédit Agricole CIB at its meeting on
12 December 2017.
CONDITIONS
During a six- to twelve-month transition period starting from the
ITSM transfer date, certain Credit Agricole Group entities may
benefit from ITSM services, on the basis of signed quotes. Billing
and collection services will be carried out by Crédit Agricole
S.A. under a billing and collection mandate, which includes, in
particular, Crédit Agricole S.A.’s warranty given to Crédit Agricole
CIB concerning the collection, from the entities benefiting from
these services, of the amounts billed by Crédit Agricole S.A. in the
name and on behalf of Crédit Agricole CIB.
At the end of this transition period, Crédit Agricole CIB may decide,
if appropriate, to perform the services for these Group entities,
through another Crédit Agricole Group entity, depending on the
result of the services performed during the transition period,
regulatory changes and any other reorganisation of activities carried
out within the Credit Agricole Group.
Tax consolidation agreement between Crédit
Agricole S.A. and Crédit Agricole CIB
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Crédit Agricole S.A., shareholder; corporate officers in common:
Françoise Gri, Catherine Pourre and Philippe Brassac.
NATURE AND PURPOSE
In 1996, Crédit Agricole S.A. signed a tax consolidation agreement
with Crédit Agricole CIB, which was renewed on 22 December
2015 for the period 2015–2019, its purpose being to govern
relations between Crédit Agricole S.A. on the one hand, and Crédit
Agricole CIB and its consolidated subsidiaries on the other.
Under this agreement, Crédit Agricole CIB is deemed to constitute,
along with its consolidated subsidiaries and sub-subsidiaries, a
subgroup forming a tax subgroup, and thus calculates its corporate
income tax on the basis of the overall results for its consolidated
subsidiaries and sub-subsidiaries in its subgroup.
In addition, when the result of Crédit Agricole CIB’s subgroup is a
loss, it receives the savings in corporate income tax generated by
the group for the amount of the loss of this subgroup effectively
allocated by Crédit Agricole S.A.
As the previous tax consolidation agreement expired in 2020, a
new agreement was signed for the period 2020-2024.
This tax consolidation agreement falls within the scope of the
related party agreements referred to in Article L.225-38 of the
French Commercial Code and must in principle be subject to prior
authorisation by the Board of Directors. As the renewal of the tax
consolidation agreement was signed on 9 December 2020 before
prior approval by the Board of Directors, it is therefore subject to
ex-post approval by the Board of Directors on 9 February 2021.
CONDITIONS
This renewal concluded in 2020 between Crédit Agricole CIB and
Crédit Agricole S.A. covers the period 2020-2024.
First, the amount of the definitive compensation for 2020 is zero (the
amount of the provisional compensation for 2020 was estimated at
€40.7 million in our letter of 16 March), and, second, the amount
of the provisional compensation for 2021 is also zero.
With Crédit Lyonnais
Agreement for the indemnification of Crédit
Lyonnais by the Company
NATURE AND PURPOSE
The Corporate and Investment Banking business of Crédit Lyonnais
was transferred to Crédit Agricole CIB (formerly Crédit Agricole
Indosuez) on 30 April 2004 with retroactive effect from 1 January
2004, except for outstanding short-, medium- or long-term
commercial loans for which Crédit Agricole CIB preferred to defer
the effective date until 31 December 2004 at the latest, mainly due
to the time needed to complete their transfer.
To comply with the principle of retroactive effect from 1 January
2004, Crédit Agricole CIB undertook to indemnify Crédit Lyonnais
for the counterparty risks relating to those loans from 1 January
2004.
CONDITIONS
The amount of the guarantee was €1.87 million at 31 December
2021. The amount of compensation due in respect of 2021 was
€4,431.04, excluding taxes.
With Crédit Agricole S.A., shareholder
holding more than 10% of voting rights,
Crédit Agricole
Technologies et Services
,
Crédit Agricole
Assurances Solutions
, CA
Consumer Finance, Crédit Agricole Group
Solutions, Crédit Agricole Payment Services,
Crédit Lyonnais and
Fédération Nationale
du Crédit Agricole
Shareholders’ Agreement on the rules of
governance of CA-GIP
This agreement was the subject of an amendment authorised
by the Board of Directors on 3 August 2020, which follows this
agreement.
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Philippe Brassac, CEO of Crédit Agricole S.A. and Chairman of the
Board of Directors of Crédit Agricole CIB, Jacques Boyer (until the
end of his term of office as member of the Board of Directors of
Crédit Agricole CIB on 3 May 2021), Olivier Gavalda, Luc Jeanneau
and François Thibault (until the end of his term of office at Crédit
Agricole S.A on 13 May 2020), Nicole Gourmelon (until the end of
her term of office as member of the Board of Directors of Crédit
Agricole CIB on 7 May 2019), Françoise Gri and Catherine Pourre,
executive officers and/or directors of the companies concerned.
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NATURE AND PURPOSE
Pursuant to the above-mentioned agreement, some of the parties
agreed to set up a new company, CA-GIP, to lead the project
concerning the merging of some of the Crédit Agricole Group’s
IT infrastructure and production activities. This company was
formed in order to host, as from 1 January 2019, SILCA and the
IT production activities of Crédit Agricole
Technologies et Services
,
Crédit Agricole CIB in France and Crédit Agricole
Assurances
Solutions
. Its role is to host the IT production activities of other
Crédit Agricole Group entities. Together, the shareholder parties
hold 100% of the share capital and voting rights of the company.
Within this context, the parties wished, through the Shareholders’
Agreement:
y
to supplement the rules of governance of CA-GIP provided
for in the articles of incorporation;
y
to organise their relationship as shareholders;
y
to determine the conditions that they intend to comply with
in the event of the transfer of all or part of their stake in the
Company’s capital.
The Shareholders’ Agreement relating to Crédit Agricole-Group
Infrastructure Platform notably lays down the following rules
of governance specific to Crédit Agricole-Group Infrastructure
Platform: a Board of Directors composed 50/50 of Regional
Banks and their subsidiaries or IT production entities and the
Crédit Agricole S.A. Group, with a Chairman of the company who
is also Chairman of the Board of Directors, appointed upon the
proposal made by the Regional Banks and a Chief Executive Officer
appointed upon the proposal made by the Crédit Agricole S.A.
Group.
Noting, in addition to the presence of executive officers and
directors in common, that the rules of governance described above
do not reflect the intended division of capital between the Regional
Banks and their subsidiaries (36%) and the Crédit Agricole S.A.
Group (64%), it was considered that this Shareholders’ Agreement
constituted a related party agreement within the meaning of the
provisions of the French Commercial Code (
Code de commerce
).
The Shareholders’ Agreement was signed on 8 June 2018.
CONDITIONS
The Shareholders’ Agreement specifies the rules of governance of
Crédit Agricole-Group Infrastructure Platform, as concerns both the
executive and the supervisory functions of the management body,
as well as those of the subsidiary to be formed in accordance with
the agreement. In particular, it organises the rules relating to the
financing of the company and the transfer of securities, as well as
any conditions of the exit of a shareholder and the conditions under
which the company’s services will be provided.
Amendment to the Shareholders’ Agreement on
the rules of governance of CA-GIP
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Crédit Agricole S.A., shareholder; corporate officers in common:
Jacques Boyer (until the expiry of his term of office as director
on the Board of Directors of Crédit Agricole CIB on 3 May 2021),
Philippe Brassac, Paul Carite, Olivier Gavalda, Luc Jeanneau, Odet
Triquet, Françoise Gri, Catherine Pourre, and Laurence Renoult
(until the expiry of her term of office as director on the Board of
Directors of Crédit Agricole CIB on 30 October 2021).
NATURE AND PURPOSE
For the record, the formation of CA-GIP concerned the merger of
some of Crédit Agricole Group’s IT infrastructure and production
activities. Within this context, several agreements were signed,
some of which were related party agreements.
The parties (CATS, CASA, CAAS, CACF, CACIB, CAGS, CAPS,
LCL and FNCA) notably entered into a Shareholders’ Agreement
on 8 June 2018 concerning the rules of governance of CA-GIP and
supplementing the articles of association of the latter, organising
the parties’ relationships as shareholders, and determining the
conditions with which the parties intend to comply in the event
of the transfer of all or part of their stake in the Company’s share
capital.
In accordance with Articles L.225-38 et seq. of the French
Commercial Code (
Code de commerce
), and due to the different
signatories having directors in common, this Shareholders’
Agreement is considered to be a related party agreement.
Consequently, any subsequent change or amendment to this
Shareholders’ Agreement must be submitted to the Board of
Directors for approval.
CONDITIONS
By this amendment, the parties intend to modify the clauses and
conditions of the Shareholders’ Agreement initially entered into to
facilitate the functioning of its governance bodies:
y
Facilitating the functioning of the Board of Directors of CA-GIP;
y
Ensuring flexibility in the appointment of the Chairs of specialist
committees (in particular, the Audit and Finance Committee):
Article 2.4.9.1(c);
-
Composition of the Audit and Finance Committee/Article
2.4.9.1(d);
-
Chair of the Audit and Finance Committee.
With Crédit Agricole S.
A., shareholder
holding more than 10% of voting rights,
Crédit Agricole
Assurances Solutions
, Crédit
Lyonnais, CA Consumer Finance, Credit
Agricole Group Solutions, Credit Agricole-
Group Infrastructure Platform and SILCA.
SILCA guarantee agreement on the representations
and warranties granted by the shareholders of
SILCA for the benefit of CA-GIP, as well as the
respective rights and obligations of the parties in
the event of breach or inaccuracy of one or more
of said representations
EXECUTIVE OFFICERS AND DIRECTORS
CONCERNED
Philippe Brassac, CEO of Crédit Agricole S.A. and Chairman of
the Board of Directors of Crédit Agricole CIB, Jacques Boyer (until
the end of his term of office as member of the Board of Directors
of Crédit Agricole CIB on 3 May 2021), Olivier Gavalda, François
Thibault (until the end of his term of office at Crédit Agricole S.A.
on 13 May 2020), Nicole Gourmelon (until the end of her term of
office as member of the Board of Directors of the Company on 7
May 2019), Françoise Gri and Catherine Pourre, executive officers
and/or directors in common of the companies concerned.
NATURE AND PURPOSE
At its meeting on 4 May 2018 during which it authorised the signing
of the agreement, the Company’s Board of Directors was informed
that the signatories would undertake that the agreements for the
contribution or divestment of business activities would provide for
clauses guaranteeing assets and liabilities relating to management
prior to the completion date and that, in the case of SILCA, a
special mechanism must be studied insofar as this entity would be
the subject of a merger before the expiry of the liability warranties.
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The purpose of the guarantee agreement authorised by the Board
of Directors is to set out the representations and warranties granted
by the guarantors (SILCA shareholders) for the benefit of Crédit
Agricole - Group Infrastructure Platform in respect of the merger of
SILCA with CA-GIP, as well as the respective rights and obligations
of the parties in the event of breach or inaccuracy of one or more
of said representations.
CONDITIONS
The main conditions of the SILCA Guarantee are as follows:
y
For a period of 36 months as from 1 January 2019, the
Guarantors undertake, each in proportion to its share in the
capital of SILCA at the date of completion of the merger, to
indemnify CA-GIP for:
-
any increase in liabilities or any reduction in assets caused by
or arising out of a fact or an event prior to 1 January 2019;
-
any damage suffered by CA-GIP as a result of the inaccuracy
or untruthfulness of a representation relating to the assets
transferred within the framework of the merger;
-
any damage suffered by CA-GIP following a third-party claim
relating to acts prior to 1 January 2019 attributable to SILCA.
The period of 36 months is replaced by the statute of limitations
concerning any damage suffered by CA-GIP due to the inac-
curacy or untruthfulness of a representation relating to SILCA.
The indemnification commitment for damage suffered by CA-GIP
relating to tax matters will expire at the end of a period of ten
working days as from the expiry of the statute of limitations.
y
A threshold of €10,000 (ten thousand euros) per claim has
been set for a claim to be taken into account.
y
The parties have not set any aggregate limit.
The agreement was signed on 21 November 2018. No claim was
made under this guarantee in respect of 2021.
Neuilly-sur-Seine and Paris-La Défense, 22 March 2021
The Statutory Auditors
French original signed by:
PricewaterhouseCoopers Audit
ERNST & YOUNG ET AUTRES
Agnès Hussherr-Harel
Laurent Tavernier
Olivier Durand
Matthieu Préchoux
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4.
RESPONSIBILITY STATEMENT
Person reponsible for the universal registration document
Jacques RIPOLL, Chief Executive Officer of Crédit Agricole CIB.
Responsibility statement
I hereby certify that, the information contained in the present Universal Registration Document is true and accurate and contains no
omission likely to affect the import thereof.
I hereby certify that, to my knowledge, the consolidated financial statements have been prepared in accordance with applicable accounting
standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and all entities included
in the consolidated scope, and that the management report, made up of the sections indicated in the cross-reference table included in
Chapter 8 of the present Document, provides a fair view of the development and performance of the business, profit or loss and financial
position
of the Company and of all the entities included in the consolidation scope, and that it describes the principal risks and uncertainties
that they face.
Montrouge, 25
th
March 2022
The Chief Executive Officer of Crédit Agricole CIB
Jacques RIPOLL
Chapter 8 – General information
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5.
STATUTORY AUDITORS
5.1 PRIMARY AND ALTERNATE STATUTORY AUDITORS
Primary statutory auditors
Ernst & Young and Others
Member of the Ernst & Young network
PricewaterhouseCoopers Audit
Member of the PricewaterhouseCoopers network
Member of the Versailles regional association
of Statutory auditors
Company represented by: Olivier Durand and Matthieu Préchoux
Member of the Versailles regional association
of Statutory auditors
Company represented by: Agnès Hussherr and Laurent Tavernier
Head Office:
1-2, place des Saisons
92400 Courbevoie - PARIS-La Défense - France
Head Office:
63, rue de Villiers
92200 NEUILLY-SUR-SEINE
Length of statutory auditors’ mandates
The mandate of Ernst and Young and Others as the Statutory Auditor
has been renewed for six financial periods by the Shareholders at the
General Meeting held on May 4, 2018.
The mandate of PricewaterhouseCoopers Audit as the Statutory
Auditor has been renewed for six financial periods by the Shareholders
at the General Meeting held on May 4, 2018.
Length of alternate auditors’ mandates
The mandate of Picarle and Associates as Alternate Statutory Auditor
of Ernst and Young and Others was not renewed by the Shareholders
at the General meeting held on May 4, 2018, in accordance with the
provisions of Section L. 823-1 of the Code of Commerce and Article
18 of the Company’s Statutes.
The mandate of Mr. Etienne as Alternate Statutory Auditor of
PricewaterhouseCoopers Audit was not renewed by the Shareholders
at the General meeting held on May 4, 2018, in accordance with the
provisions of Section L. 823-1 of the Code of Commerce and Article
18 of the Company’s Statutes.
Chapter 8 – General information
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6.
CROSS-REFERENCE TABLE
This cross-reference table contains the headings provided for in Annex 1 (as referred to in Annex 2) of the Commission Delegated Regulation
(EU) 2019/980 of the Commission as of 14 March 2019 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the
Council and repealing Commission Regulation (EC) No 809/2004 (Annex I), in application of the Directive, said “Prospectus”. It refers to
the pages of this Universal Registration Document where the information relating to each of these headings is mentioned.
Annexe 1 of the delegated regulation
Page number of the Universal
Registration Document
1.
Persons responsible
1.1
Identity of the persons responsible
441
1.2
Declaration of the persons responsible
441
1.3
Statement or report of the persons acting as experts
N/A
1.4
Information from a third party
N/A
1.5
Declaration concerning the competent authority
N/A
2.
Statutory auditors
(1)
2.1
Identity of the statutory auditors
442
2.2
Change, if any
442
3.
Risk factors
152 to 161
4.
Information about the issuer
250; 432
4.1
Legal name and commercial name
250; 432
4.2
Location, registration number and legal entity identifier (“LEI”)
250
4.3
Date of incorporation and lifespan
432
4.4
Registered office and legal form, legislation governing the business activities, country
of origin, address and telephone number of the legal registered office, website with a
warning notice
250; 432
5.
Business overview
5.1
Principal activities
5.1.1 Description of the issuer’s principal activities
(1)
19 to 22
5.1.2 New products or services, if significant
433
5.2
Principal markets
(1)
16; 20 to 22
5.3
Major events in the development of the business
18; 20 to 22
5.4
Strategy and targets
6 to 7; 18; 141
5.5
Dependence on patents, licenses, contracts and manufacturing processes
200; 342
5.6
Statement on competitive position
18; 137 to 138
5.7
Investments
5.7.1 Major investments made
(1)
432
5.7.2 Main current or future investments
432
5.7.3 Information on joint ventures and partner companies
337 to 338
5.7.4
Environmental issues that may impact the use of property, plant and equipment
68
6.
Organisational structure
6.1
Brief description of the Group
4 to 5; 8 to 9
6.2
Lis of important subsidiaries
364 to 366; 398
7.
Review of the financial position and performance
(1)
7.1
Financial position
7.1.1 Changes in results and financial position containing key indicators of financial
135 to 136; 139; 255; 257 to 258;
140 to 141
7.1.2 Forecasts of future development and research and development activities
140 to 142
7.2
Operating income
135 to 138; 146; 255; 383
7.2.1 Major factors, unusual or infrequent events or new developments
133 to 135
7.2.2 Reasons for major changes in revenues or net income
N/A
8
Capital resources
8.1
Information on share capital
139; 203 to 216; 257 to 261; 343
8.2
Cash flow
261
8.3
Financing needs and structure
196; 305 to 307
8.4
Restrictions on the use of capital
203 to 216; 338; 367 to 369
8.5
Expected sources of financing
432
9.
Regulatory environment
9.1
Description of the regulatory environment that could impact the Company’s business
activities
158 to 159; 203 to 204; 263 to 265
10.
Trend information
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Annexe 1 of the delegated regulation
Page number of the Universal
Registration Document
10.1
Description of the main trends and any material change in the Group’s financial
performance since the end of the financial year
140 to 141; 433
10.2
Events that could materially impact the outlook
11; 140 to 141; 370; 433
11.
Profit projections or estimates
11.1
Profit projections or estimates reported
N/A
11.2
Statement describing the main assumptions for projections
N/A
11.3
Declaration of comparability with the historical financial information and compliance of the
accounting methods
N/A
12.
Administrative, management, supervisory and executive management bodies
12.1
Information on the members
75 to 127
12.2
Conflicts of interest
85; 117 to 118
13.
Compensation and benefits
13.1
Remuneration paid and benefits in kind
93 to 94; 118 to 224; 377 to 379;
413
13.2
Provisions for pensions, retirements and other similar benefits
93 to 94; 118 to 224; 274 to 275;
340; 377 to 379; 393; 413
14.
Board practices
14.1
Expiry date of terms of office
95 to 116; 428
14.2
Service agreements binding members of the administrative and management bodies
118
14.3
Information on Audit and Remuneration committees
89 to 90 (audit) ; 93 to 94
(remuneration)
14.4
Declaration of compliance with the corporate governance system in force
76
14.5
Potential future changes in corporate governance
N/A
15.
Employees
15.1
Number of employees
(1)
16; 53 to 54; 377; 413
15.2
Profit-sharing and stock options
275; 379
15.3
Agreement stipulating employee shareholding
126
16.
Major shareholders
16.1
Shareholders holding more than 5% of share capital
343
16.2
Existence of different voting rights
126; 343
16.3
Direct or indirect control
126
16.4
Agreements that if implemented could result in a change of control
126
17.
Transactions with related parties
(1)
254; 337 to 338; 408
18.
Financial information concerning the Company’s assets and liabilities, financial position and profits and losses
(1)
18.1
Historical financial information
18.1.1 Audited historical financial information for the past three financial years and audit
report
15; 247 to 422
18.1.2 Change of accounting reference date
N/A
18.1.3 Accounting standards
263 to 280; 385 to 393
18.1.4 Change of accounting standards
N/A
18.1.5 Balance sheet, income statement, changes in equity, cash flow, accounting
methods and explanatory notes
15; 133 to 148; 255 to 370; 382 to
415
18.1.6 Consolidated financial statements
247 to 378
18.1.7 Age of financial information
14 to 15; 255 to 261; 382 to 383
18.2
Interim and other financial information (audit or review reports, as applicable)
N/A
18.3
Audit of historical annual financial information
371 to 377; 416 to 421
18.3.1 Independent audit of historical annual financial information
371 to 377; 416 to 421
18.3.2 Other audited information
N/A
18.3.3 Unaudited financial information
N/A
18.4
Pro forma financial information
N/A
18.5
Dividend policy
18.5.1 Description of the dividend distribution policy and any applicable restriction
344
18.5.2 Amount of the dividend per share
255; 344
18.6
Administrative, legal and arbitration proceedings
198 to 200; 340 to 342; 404 to 406
18.7
Significant change in financial position
433
19.
Additional information
19.1
Information on share capital
(1)
19.1.1 Amount of capital subscribed, number of shares issued and fully paid up and par
value per share, number of shares authorised
126; 343
19.1.2 Information on non-equity shares
N/A
19.1.3 Number, carrying value and nominal value of the shares held by the Company
126
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Annexe 1 of the delegated regulation
Page number of the Universal
Registration Document
19.1.4 Convertible or exchangeable securities or securities with subscription warrants
attached
N/A
19.1.5 Conditions governing any acquisition rights and/or any obligation attached to the
capital subscribed, but not paid up, or on any undertaking to increase the capital
N/A
19.1.6 Option or conditional or unconditional agreement of any member of the Group
N/A
19.1.7 History of share capital
147
19.2
Memorandum and Articles of Association
19.2.1 Register and company purpose
150; 426
19.2.2 Rights, privileges and restrictions attached to each class of shares
126; 426 to 427
19.2.3 Provisions with the effect of delaying, deferring or preventing a change in control
126
20.
Material contracts
433
21.
Documents available
433
1
In accordance with Annex I of European Regulation 2017/1129, the following are incorporated by reference:
- the consolidated and annual financial statements for the year ended 31 December 2020 and the corresponding Statutory Auditors’ Reports, as well as the Crédit Agricole CIB’s
management report, appearing respectively on pages 280 to 396 and 408 to 440, on pages 397 to 403 and 441 to 446 and on pages 130 to 140 of the Crédit Agricole CIB Universal
Registration Document 2020 registered by the AMF on 24 march 2020 under number D.21-0183. The information is available via the following link:
Universal Registration document 2020
.
- the consolidated and annual financial statements for the year ended 31 December 2019 and the corresponding Statutory Auditors’ Reports, as well as the Crédit Agricole CIB’s
management report, appearing respectively on pages 266 to 379 and 390 to 421, on pages 380 to 385 and 422 to 428 and on pages 119 to 129 of the Crédit Agricole CIB Universal
Registration Document 2019 registered by the AMF on 25 march 2020 under number D.20-0170. The information is available via the following link:
Universal Registration document 2019.
The sections of the Universal registration document 2020 and the Universal registration document 2019 not referred to above are either
not applicable to investors or are covered in another part of this universal registration document.
All these documents incorporated by reference in the present document have been filed with the French Financial Markets Authority (Autorité
des marchés financiers) and can be obtained on request free of charge during the usual office opening hours at the headquarters of the
issuer as indicated at the end of the present document. These documents are available on the website of the issuer
(Activity reports &
Universal Registration Documents | Crédit Agricole CIB (ca-cib.com)
and on the website of the AMF
(www.amf-france.org).
The information incorporated by reference has to be read according to the following cross-reference table. Any information not indicated
in the cross-reference table but included in the documents incorporated by reference is only given for information.
Chapter 8 – General information
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REGULATED INFORMATION WITHIN THE MEANING OF BY ARTICLE 221-1 OF THE AMF GENERAL
REGULATION CONTAINED IN THIS UNIVERSAL REGISTRATION DOCUMENT
This Universal Registration Document, which is published in the form of an annual report, includes all components of the 2020 annual
financial report referred to in paragraph I of Article L. 451-1-2 of the Code Monétaire et Financier as well as in Article 222-3 of the AMF
General Regulation and the Ordinance 2017-1162 of 12/07/2017.
Annual financial report
Page number of the Universal
Registration
Document
1 - Management report
Analysis of the financial position and earnings
133 to 147
Risk analysis
152 to 202
Performance indicators
15 to 16; 131 to 132; 135 to 139; 143; 146;
249; 255 to 258; 381 to 383
Objectives and policy for hedging each major type of transaction
196 to 197; 271 to 272; 307 to 312
Economic, social and environmental information
26 to 70
Information on accounts payables and receivables
145
Share buybacks
N/A
2 - Statement of Non-Financial Performance and Vigilance duty
N/A
3 - Corporate governance report
Board’s report on corporate governance
75 to 126
Positions and functions held by Corporate Officers
95 to 116
Agreements between a Senior Executive or a major shareholder and a subsidiary
118; 254; 434 to 440
Authorizations in force concerning capital increases
126
Methods for exercising General Management
75 to 127
Compensation policy
93 to 94; 118 to 124; 242; 347 to 349
Information on the organisation of Committees, Board and Executive management
75 to 127
Capital structure and articles of association
126; 343; 426 to 431
4 - Financial statements
Parent Company financial statements
382 to 415
Statutory Auditors’ Report on the parent company annual financial statements
416 to 421
Consolidated financial statements
250 to 370
Statutory Auditors’ Report on the consolidated financial statements
371 to 377
5 - Responsibility statement for the document
441
Pursuant to Articles 212-13 and 221-1 of the AMF General Regulation, this document also contains the following regulatory
information
Annual information report
N/A
Description of share buyback programmes
N/A
Fees paid to Statutory Auditors
316
Chairman’s report on corporate governance
75 to 127
GLOSSARY
Of the main technical terms /
acronyms used
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A
ABS
Asset-Backed Securities: securities which represent a portfolio of financial assets (excluding mortgage loans)
for which the cash flows are based on those of the underlying asset or asset portfolio.
ACPR
Autorité de Contrôle Prudentiel et de Résolution
/French Regulatory and Resolution Supervisory Authority:
French banking supervisory body.
AFEP-Medef
Association Française des Entreprises Privées - Mouvement des Entreprises de France
(Corporate govern-
ance code of reference for publicly traded companies).
AFS
Available For Sale.
ALM
Asset and Liability Management: management of the financial risks borne by an institution’s balance sheet
(interest rate, currency, liquidity) and its refinancing policy in order to protect the bank’s asset value and/or
its future profitability.
AMA
Advanced Measurement Approach.
AMF
Autorité des Marchés Financiers
/French Financial markets authority
AQR
Asset Quality Review: includes regulatory risk evaluation, review of the quality of the actual assets and stress
tests.
Asset encumbrance
Asset encumbrance corresponds to assets used to secure, collateralize or back up a credit facility for any
type of transaction.
Assets under
management
(1)
All assets under management by Indosuez Wealth Management
AT1
Additional Tier 1: capital eligible under Basel 3 made up of perpetual debt instruments without any redemp-
tion incentive or obligation. It is subject to a loss absorption mechanism where the CET1 ratio falls below a
given threshold, fixed in their prospectus.
B
Back-testing
Method used to check the relevance of models and the suitability of the VaR (Value at Risk) in light of the
risks actually borne.
Basel I
(agreements)
Regulatory mechanism established in 1988 by the Basel Committee, to ensure the solvency and stability
of the international banking system by setting a minimum, standardised, international limit on the capital of
banks. It introduced a minimum capital ratio out of a bank’s total risks of 8%.
Basel II
(agreements)
Regulatory mechanism intended to better identify and limit the risks of credit institutions. It mainly concerns
the credit risk, market risks and operational risks of banks.
Basel III
(agreements)
Regulatory standards for banks, which replace the previous Basel 2 agreements by increasing the quality and
quantity of the minimum capital that banks are required to hold against the risk they take. It also introduces
minimum standards for liquidity risk management (quantitative ratios), defines measures attempting to curb
the financial system’s pro-cyclicality (capital buffers varying according to the economic cycle) and tightens
the requirements on institutions considered as systemically important. In the European Union, these regula-
tory standards were introduced under Directive 2013/36/EU (CRD 4 – Capital Requirements Directive) and
Regulation (EU) No. 575/2013 (CRR – Capital Requirements Regulation).
BCBS
Basel Committee on Banking Supervision: institution made up of the governors of the central banks of the
G20 countries responsible for strenghtening the global financial system and improving the effectiveness of
regulatory checks and of cooperation between banking regulators.
Benchmark rate
Interest rate set by a country’s or currency zone’s central bank to regulate economic activity. Principal tool
in a central bank’s arsenal for fulfilling its role of regulating economic activity: inflation, stimulation of growth.
Bookrunner
Bookrunner (in investment transactions).
Bps
Basis points.
(1) APM-Alternative Perfomance Measures (details on Chapter 4, note 1.7, of this document).
9
GLOSSARY
Chapter 9 – Glossary
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C
Capital
requirements
Regulatory capital requirements, amounting to 8% of the risk weighted assets (RWA).
CCF
Credit Conversion Factor.
CCP
Central Counterparty.
CDO
Collateralised Debt Obligations, or debt securities linked to a portfolio of assets which can be bank loans
(mortgages) or bonds issued by companies. The payment of interest and the principal may be subordinated
(creation of tranches).
CDPC
Credit Derivatives Products Companies (companies specialising in selling protection against credit default
via credit derivatives).
CDS
Credit Default Swap: an insurance mechanism against credit risk in the form of a bilateral financial contract,
in which a buyer of protection pays a periodic premium to a protection seller, who promises to offset the
losses on a reference asset (sovereign debt securities, securities issued by financial institutions or companies)
in the event of a credit event (bankruptcy, default, moratorium, restructuring).
CGU
Cash generating unit: the smallest asset group identifiable which generates cash inflows which are largely
independent of those generated by sundry assets or asset groups, according to IAS 36. “According to IFRS,
a company must define as many cash generating units (CGUs) as possible which comprise it, these CGUs
must be largely independent in their transactions and the company must allocate its assets to each of these
CGUs. It is at the level of these CGUs that impairment tests are carried out occasionally, if there is reason to
believe that their value has fallen, or every year if they make up the goodwill.”
CHSCT
Comité d’Hygiène, de Sécurité et des Conditions de Travail
/Health, Safety and Working Conditions Committee.
CLO
Collateralised Loan Obligation: credit derivative relating to a homogeneous portfolio of business loans.
CMBS
Commercial Mortgage-Backed Securities: debt security backed by a portfolio of assets made up of corpo-
rate mortgage loans.
CMS
Constant Maturity Swap: contract which enables a short-term interest rate to be exchanged for a longer
term interest rate.
Collateral
Transferable asset or guarantee given, used to pledge repayment of a loan if the beneficiary of the loan is
unable to meet their payment obligations.
Common Equity
Tier 1
Common Equity Tier 1 capital of the institution which mainly consist of the share capital, the associated share
premiums and reserves, less regulatory deductions.
Common Equity
Tier 1 ratio
Ratio between Common Equity Tier 1 capital and assets weighted by risk, according to CRD4/CRR rules.
Common Equity Tier 1 capital has a stricter definition than under the former CRD3 rules (Basel II).
Corporate
governance
Any mechanism that can be implemented to achieve transparency, equality between shareholders and a
balance of powers between management and shareholders. These mechanisms encompass the methods
used to formulate and implement strategy, the operation of the Board of Directors, the organisation frame-
work between different governing bodies and the compensation policy for Directors and executive managers.
Cost/income ratio
(1)
The cost/income ratio is calculated by dividing operating expenses by revenues, indicating the proportion of
revenues needed to cover operating expenses.
Cost of risk
The cost of risk reflects allocations to and reversals from provisions for credit and counterparty risk (loans,
securities, and off-balance sheet commitments), as well as the corresponding losses not covered by provisions.
Cost of risk/
outstandings
The cost of risk/outstandings is calculated by dividing the cost of credit risk (over four quarters on a rolling
basis) by outstandings (over an average of the past four quarters, beginning of the period). Can also be cal-
culated by dividing the annualised cost of credit risk for the quarter by outstandings at the beginning of the
quarter. Similarly, the cost of risk for the period can be annualised and divided by the average outstandings
at the beginning of the period.
Since the first quarter of 2019, the outstandings taken into account are the customer outstandings, before
allocations to provisions.
The calculation method for the indicator is specified each time the indicator is used.
Coverage
Client follow-up.
Covered bond
Collateralised bond: bond for which the redemption and payment of interest are ensured by income from a
portfolio of high-quality assets which serves as a guarantee, often a portfolio of mortgage loans. The transferor
institution is often manager of the payment of cash flows to the investors (
obligations foncières
in France,
Pfandbriefe i
n Germany). This product is usually issued by financial institutions.
CPM
Credit Portfolio Management.
The impact of loan portfolio hedges is based on market movements in credit risk hedging and the level of
reserves linked to the market movements.
(1) APM-Alternative Perfomance Measures (details on Chapter 4, note 1.7, of this document).
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CRBF
Comité de Réglementation Bancaire et Financière.
CRD
Capital Requirement Directive: European directive on regulatory capital requirements.
CRD 3
European directive on capital requirements, incorporating the provisions of Basel II and 2.5, notably as regards
market risk: improved consideration of default risk and rating migration risk in the trading book (tranched and
non-tranched assets) and reduction of the procyclical nature of the value at risk.
CRD 4/CRR (Capital
Requirement
Regulation)
Directive 2013/36/EU (CRD 4) and (EU) Regulation No 575/2013 (CRR) constitute the corpus of the texts
transposing Basel III in Europe. They define European regulations on solvency ratios, major risks, leverage
and liquidity and are completed by the technical standards of the European Banking Authority (EBA).
Crédit Agricole
Group
This include Crédit Agricole S.A., Regional Banks and Local Banks.
Crédit Agricole S.A.
Listed company of the Credit Agricole Group. Its parent company is “Crédit Agricole S.A. Parent Company”.
Its consolidation perimeter includes subsidiaries (including Crédit Agricole CIB), joint ventures and associated
companies that it holds directly or indirectly.
Crédit Agricole S.A.
Parent Company
Legal entity that acts as central body and head of Crédit Agricole network and that guarantees the financial
unity of the Group.
Credit Rating
Measurement of credit quality in the form of an opinion issued by a rating agency (Standard & Poor’s, Moody’s,
Fitch Ratings, etc.). The rating may apply to a specific issuer (business, government, public-sector authority)
and/or specific issues (bonds, securitised notes, secured bonds, etc.). The credit rating may influence an
issuer’s borrowing terms (interest rate it pays, its access to funding) and its market image (see Rating agency).
Credit spread
Actuarial margin (difference between a bond’s yield to maturity and that on a risk-free borrowing with an
identical maturity).
CRM
Comprehensive Risk Management: capital charge in addition to the IRC (Incremental Risk Charge) for the
correlation portfolio of lending operations taking into account specific price risks (spread, correlation, recovery,
etc.). CRM is a value at risk of 99.9% i.e. the highest risk obtained after eliminating 0.1% of the most unfa-
vourable occurrences.
CSR
Corporate social (and environmental) responsibility.
CVA
The Credit Valuation Adjustment is the expectation of a loss linked to counterparty default and aims to take
account of the fact that it may not be possible to recover the full market value of the transactions. The method
for determining the CVA primarily relies on market parameters in line with the practices of market operators.
CVaR
Credit Value at Risk: maximum loss likely after elimination of 1% of the most unfavourable occurrences, used
to set limits for each individual counterparty.
D
Derivatives
A financial instrument or contract whose value changes according to the value of an underlying asset, which
may be financial (shares, bonds, foreign currencies,etc.) or non-financial (commodities, agricultural foodstuffs,
etc.). This change may entail a multiplier effect (leverage). Derivatives may exist in the form of securities (war-
rants, certificates, structured EMTNs, etc.) or in the form of contracts (forwards, options, swaps, etc.). Listed
derivative contracts are called futures.
DFA
The “Dodd-Frank Wall Street Reform and Consumer Protection Act”, usually referred to as the “Dodd-Frank
Act”, is the US financial regulation law adopted in July 2010 in response to the financial crisis. The text is wide-
ranging and covers many topics: the creation of a Financial Stability Oversight Council, treatmentof institutions
of systemic importance, regulation of high-risk financial activities, limits on derivatives markets, improved mon-
itoring of ratings agency practices, etc. The US regulators (Securities and Exchange Commission, Commodity
Futures Trading Commission, etc.) are currently working on precise technical rules on these different areas.
Dilution
A transaction is described as “dilutive” when it reduces the portion of net asset value (e.g. net book value per
share) or earnings (e.g. earnings per share) attributable to each share in the company.
Dividend
Portion of net income or reserves paid out to shareholders. The Board of Directors proposes the dividend
to be voted on by shareholders at the Annual General Meeting, after the financial statements for the year
ended have been approved.
DOJ
US Department of Justice.
Doubtful loan
Loan on which the borrower has fallen behind with the contractually agreed interest payments or capital
repayments, or for which there is a reasonable doubt that this could occur.
DVA
The Debit Valuation Adjustment (DVA) is mirror opposite of the CVA and represents expected losses from
the counterparty point of view on the liability of the financial instruments. It reflects the credit quality effect of
the entity itself on the value of these instruments.
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E
EAD
Exposure at Default: exposure of the Group in the event of counterparty default. The EAD includes expo-
sures both on and off the balance sheet. Off-balance sheet exposures are converted into the balance sheet
equivalent using internal or regulatory conversion factors (refinancing hypothesis).
EBA
European Banking Authority (EBA). The European Banking Authority was established on 24 November 2010,
by a European regulation. In place since 1 January 2011 and based in London, it replaces the Committee
of European Banking Supervisors (CEBS). This new authority has wide-ranging powers. It is responsible
for harmonising regulations, ensuring coordination between national supervisory authorities and acting as
mediator. The objective is to implement supervision at the European level without questioning the powers of
national authorities for the day-to-day supervision of credit institutions.
ECB
European Central Bank.
EDTF
Enhanced Disclosure Task Force.
EL
Expected Loss is the likely loss given the quality of the transaction and of all the measures taken to mitigate
the risk, such as collateral. It is obtained by multiplying the exposure at default (EAD) by the probability of
default (PD) and by the loss given default (LGD).
EMEA
Europe, Middle East and Africa.
ESG
Environmental, Social and Governance.
EURIBOR
Euro Interbank Offered Rate: reference rate of the eurozone.
F
Fair value
Amount for which an asset could be exchanged or for which a liability could be settled between well-informed,
consenting parties acting under normal market conditions.
FED
Federal Reserve System/Federal Reserve: Central Bank of the United States.
Finance, Technology
(FinTech)
A FinTech is a non-banking company which uses information and communication technologies to deliver
financial services.
Fides, Respect,
Demeter (FReD)
Initiative to implement, manage and measure the progress made by the Corporate Social Responsibility (CSR)
programme. FReD has three pillars with 19 commitments that aim to bolster trust (Fides), grow individuals
and the corporate ecosystem (Respect) and protect the environment (Demeter). Every year since 2011, the
FReD index has provided a measure of the progress made by the CSR programme being pursued by Crédit
Agricole S.A. and its subsidiaries. PricewaterhouseCoopers conducts an annual audit of this index.
FSB
The aim of the Financial Stability Board (FSB) is to identify weaknesses in the global financial system and
implement regulatory and supervision principles to ensure financial stability. It consists of governors, finance
ministers and supervisory authorities of the G20 countries. Its primary objective is thus to coordinate the
work of national financial authorities and international standards bodies at the international level to regulate
and supervise financial institutions. Created at the G20 meeting in London in April 2009, the FSB is the suc-
cessor of the Financial Stability Forum established in 1999 on G7’s initiative.
G
GAAP
Generally Accepted Accounting Principles.
Goodwill
Amount by which the acquisition cost of a business exceeds the value of the net assets revalued at the time
of acquisition. Every year, goodwill has to be tested for impairment, and any reduction in its value is recog-
nised in the income statement.
Gross exposure
Exposure before taking into account provisions, adjustments and risk reduction techniques.
Gross Operating
Income (GOI)
Calculated as revenues less operating expenses (general operating expenses, such as employee expenses
and other administrative expenses, depreciation and amortisation).
Green Bonds
Bonds issued by an approved entity (business, local authority or international organisation) to finance an eco-
friendly and/or sustainability-driven project or activity. These instruments are often used in connection with
the financing of sustainable agriculture, the protection of ecosystems, renewable energy and organic farming.
H
Haircut
Percentage deducted from the market value of securities to reflect their value in a stress environment (coun-
terparty risk or market stress risk). The size of the haircut reflects the perceived risk.
HQE
Haute Qualité Environnementale
/High Environmental Quality.
High Quality Liquid
Assets (HQLA)
Unencumbered high-quality liquid assets (see Asset encumbrance) that can be converted easily and imme-
diately in private markets into cash in the event of a liquidity crisis.
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I
IAS
International Accounting Standards.
IASB
International Accounting Standards Board.
ICAAP
Internal Capital Adequacy Assessment Process: process reviewed in Pillar II of the Basel agreement, via
which the Group checks whether its capital is sufficient in light of all risks incurred.
IFRS
International Financial Reporting Standards.
Impaired loan
Loan which has been provisioned due to a risk of non-repayment.
Impairment
Accounting of a reduction in the value of an asset.
Impaired (or non-
performing) loan
coverage ratio
This ratio divides the outstanding provisions by the impaired gross customer outstandings.
Impaired (or non-
performing) loan
ratio
This ratio divides the gross customer outstandings depreciated on an individual basis, before provisions, by
the total gross customer outstandings.
Institutional
investors
Businesses, public-sector bodies and insurance companies involved in securities investment, for example,
investing in the shares of listed companies. Pension funds and asset management and insurance compa-
nies come under this heading.
Investment grade
Long-term rating provided by an external agency and applicable to a counterparty or an underlying issue,
ranging from AAA/Aaa to BBB-/Baa3. Instruments with ratings of BB+/Ba1 and below are considered as
Non-Investment Grade.
IRB
Internal Rating-Based: approach based on the ratings used to measure credit risk, as defined by European
regulations.
IRBA
Internal Rating Based Approach.
IRC
Incremental Risk Charge: capital charge required in consideration of rating change risk and the risk of issuer
default over one year for debt instruments in the trading portfolio (bonds and CDS). The IRC is a value at
risk of 99.9% i.e. the highest risk obtained after eliminating 0.1% of the most unfavourable occurrences.
ISP
Investment service providers.
Issuer spread
Actuarial margin representing the difference between the actuarial rate of return at which the Group can
borrow and that of a risk-free loan of identical duration.
L
LBO
Leveraged Buy out.
LCR
Liquidity Coverage Ratio: this ratio aims to promote the short-term resilience of a bank’s liquidity risk profile.
The LCR requires banks to hold an inventory of risk-free assets that can be easily traded on the markets,
to pay outgoing flows net of incoming flows for thirty crisis days, without support from the central banks.
Leverage ratio
Simple ratio which aims to limit the size of an institution’s balance sheet. To do this, the leverage ratio brings
together Tier 1 regulatory equity and balance-sheet/off-balance-sheet amounts, after the restatement of
some items.
LGD
Loss Given Default: ratio between the loss incurred on an exposure in the event of counterparty default and
the amount of the exposure at the time of default.
LIBOR
London Interbank Offered Rate.
Liquidity
For a bank, this means its ability to meet its short-term liabilities. When applied to an asset, this term refers
to the possibility of buying or selling it quickly on a market with a limited reduction in value (haircut).
M
Market stress tests
To evaluate market risks, parallel to the internal VaR and SVaR model, the Group calculates a measurement
of its risks using market stress tests, to take account of exceptional market disruption, using 26 historical
scenarios, and 8 theoretical scenarios.
Mark-to-Market
Method which involves measuring a financial instrument at fair value based on its market price.
Mark-to-Model
Method which involves, in the absence of market prices, measuring a financial instrument at fair value using
a financial model based on observable or non-observable data.
Chapter 9 – Glossary
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Mezzanine
Hybrid financing between equity and debt. In terms of ranking, mezzanine debt is subordinate to senior debt,
but remains senior to common shares.
MiFID
Markets in Financial instruments directive.
Monoline
Insurance company participating in a credit enhancement operation, and which provides its guarantee by
issuing debt securities (e.g.: securitisation transactions), to improve the rating of the issue.
MSE
Medium-sized Enterprise.
MTP
Medium-term plan.
N
Net Banking Income
(NBI) or revenues
Difference between banking income (interest income, fee income, capital gains from market activities and other
income from banking operations) and banking expenses (interest paid by the bank on its funding sources,
fee expenses, capital losses arising on market activities and other expenses incurred by banking operations).
Net Banking Income
underlying
(1)
The underlying net banking income represents the stated net income Group share from which specific items
have been deducted (i.e. non-recurring or exceptional items).
Net income Group
share (NIGS)
Net income/(loss) for the financial year (after corporate income tax). Equal to net income less the share attrib-
utable to non-controlling interests in fully consolidated subsidiaries.
Net Income Group
share underlying
(1)
The underlying net income Group share represents the stated net income Group share from which specific
items have been deducted (i.e. non-recurring or exceptional items).
Non-financial rating
agency
Organisation specialised in qualitatively and quantitatively assessing corporates according to social and environ-
mental criteria, following specifications related to sustainable development and using a specific form of rating.
NSFR
Net Stable Funding Ratio: this ratio is intended to encourage longer-term resilience by introducing additional
incentives for banks to finance their operations from sources with a greater structural stability. This struc-
tural ratio for long-term liquidity over a period of one year is designed to give a viable structure to maturing
assets and liabilities.
O
OFAC
Office of Foreign Assets Control.
Offsetting
agreement
An agreement under which two parties to a financial contract (forward financial instrument), a securities loan
or repurchase agreement, agree to offset their mutual loans and receivables pursuant to these contracts; the
settlement of these only relates to a net offset balance, particularly in the event of default or termination. An
overall offsetting agreement extends this mechanism to different families of transactions, which are governed
by different framework agreements by way of a master agreement.
Operating income
Calculated as gross operating income less the cost of risk.
OTC
Over-The-Counter.
P
Pricing
Setting a price.
R
Raison d’Être
The
Raison d’Être
of Crédit Agricole Group was formulated in the Group project and MTP 2022. It engages
and irrigates all the Group’s activities and businesses. It does not fall within the scope of article 1835 of the
Civil Code according to which “the articles of association may specify a
Raison d’Être
, consisting of the prin-
ciples which the company adopts and for the respect of which it intends to allocate resources in carrying
out its activity”.
Rating
Evaluation, by a financial ratings agency (Moody’s, FitchRatings, Standard & Poor’s), of the financial insol-
vency risk of an issuer (company, government or other state authority) or of a given transaction (bond issue,
securitisation, covered bonds). The rating has a direct impact on the cost of raising funds.
Rating agency
Organisation specialises in assessing the solvency of debt security issuers, i.e. their ability to honour their
commitments (repay capital and interest within the contractual period).
Ratio Core Tier 1
Ratio between Core Tier 1 capital and risk-weighted assets according to the Basel II rules and their devel-
opment referred to as Basel 2.5.
(1) APM-Alternative Perfomance Measures (details on Chapter 4, note 1.7, of this document).
Chapter 9 – Glossary
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Resecuritisation
Securitisation of an exposure which has already been securitised where the risk associated with the under-
lying exposures has been divided into tranches and for which at least one of the underlying exposures is a
securitised exposure.
Resolution
Shortened form of “resolution of crises and bank failures”. In practice, two types of plan need to be drawn
up for every European bank: 1) a preventative recovery plan prepared by the bank’s senior managers, and 2)
a preventative resolution plan put in place by the competent supervisory authority. Resolution occurs before
bankruptcy of the bank, to plan its ordered dismantling and avoid systemic risk.
Risk Appetite
Level of risk that the Group is willing to assume in pursuit of its strategic objectives. It is determined by type
of risk and by business line. It may be stated using either quantitative or qualitative criteria. Establishing the
risk appetite is one of the strategic management tools available to the Group’s governing bodies.
Risks
The main types of risks specific to Crédit Agricole CIB are listed in the “Risks” section below.
RMBS
Residential Mortgage Backed Securities: debt securities backed by an asset portfolio made up of residen-
tial mortgage loans.
RWA
Risk Weighted Assets: Assets and risk commitments (loans, etc.) held by a bank weighted by a prudential factor
and based on the risk of loss and used, when added together, as the denominator for major solvency ratios.
S
SEC
US Securities and Exchange Commission (authority which controls the US financial markets).
Securitisation
Transfer of a credit risk (loan debts) to a body which issues, for this purpose, marketable securities sub-
scribed by investors. This transaction may result in a transfer of loans and receivables (physical securitisation)
or the transfer of the risks only (credit derivatives). Securitisation transactions can result in a subordination
of securities (tranches).
SFEF
Société de Financement de l’Économie Française
(French Financing Agency).
SFS
Specialised financial services.
SIFIs
Systemically Important Financial Institutions: the Financial Stability Board (FSB) coordinates all measures
to reduce the moral hazards and risks of the global financial system posed by systemically important insti-
tutions (G-SIFI or Globally Systemically Important Financial Institutions or even GSIB - Global Systemically
Important Banks). These institutions meet the criteria set out in the Basel Committee rules outlined in the
document named “Global Systemically Important Banks: Assessment methodology and the additional loss
absorbency requirement” and are identified in a list published in November 2011. This list is updated by the
FSB every November. Institutions classified as GSIB will gradually have to apply increasing limits on the level
of their share capital.
SMEs
Small and medium-sized enterprise.
Socially
Responsible
Investment (SRI)
Systematic and clearly documented incorporation of environmental, social and governance criteria in invest-
ment decisions.
Société
d’investissement à
capital variable
(SICAV) – open-
ended investment
company
A type of UCITS which enables investors to invest in a portfolio of financial assets without holding them directly
and to diversify their investments. It manages a portfolio of stocks or other assets and may specialise in a
specific market, an asset class, an investment profile, or a specific sector. From a tax perspective, a SICAV
unit is like a share.
Solvency
Measures the ability of a business or an individual to repay its debt over the medium to long term. For a
bank, solvency reflects its ability to cope with the losses that its risk profile is likely to trigger. Solvency anal-
ysis is not the same as liquidity analysis. The liquidity of a business is its ability to honour its payments in the
normal course of its business, to find new funding sources and to achieve a balance at all times between
its incomings and outgoings. For banks, solvency is governed by the CRD 4 Directive and CRR Regulation.
Spread
Actuarial margin (difference between the actuarial rate of return of a bond and that of a risk-free loan of
identical duration).
SREP
Supervisory Review and Evaluation Process
Stress tests
Exercise to study the ramifications on banks’ balance sheets, profit and loss and solvency in order to measure
their ability to withstand these kinds of situations.
Structured issue or
structured product
Financial instrument combining a debt product and an instrument (such as an option) enabling exposure on
all kinds of asset (shares, foreign currencies, rates, commodities). Instruments may include total or partial
guarantee, of the capital invested. The term “structured product” or “structured issue” also refers to securities
resulting from securitisation transactions, for which a ranking of bearers is organised.
Subordinated notes
Issues made by a company, the returns on and/or redemption of which are contingent upon an event (con-
ditional upon payment of a dividend or achievement of an outcome).
Chapter 9 – Glossary
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SVaR
Stressed Value at Risk: identical to the VaR, the calculation method entails a “historical simulation” with
“1-day” shocks and a 99% confidence interval. Unlike the VaR, which uses the 260 daily change scenarios
over a rolling one-year period, Stressed VaR uses a historical one-year window corresponding to a period
of significant financial stress.
Swap
Agreement between two counterparties to exchange one’s assets or income from an asset for those of the
other party’s up to a given date.
Systemically
important bank
Crédit Agricole Group, but not Crédit Agricole S.A., appears on the list of the 30 global systemically important
banks (G-SIBs) published by the Financial Stability Board (FSB) in November 2012 and updated in November
2021. A systemically important bank has to put in place a basic capital buffer of between 1% and 3.5% in
relation to Basel 3 requirements.
T
Tier 1 Equity
Made up of Common Equity Tier 1 capital and Additional Tier 1 capital. The latter correspond to perpetual
debt instruments without any redemption incentives, less regulatory deductions.
Tier 1 ratio
Ratio between Tier 1 capital and risk-weighted assets.
Tier 2 Equity
Additional capital mainly comprising subordinated securities less regulatory deductions.
Total capital ratio or
solvency ratio
Ratio between total capital (Tier 1 and Tier 2) and risk-weighted assets.
Total Loss
Absorbing Capacity
(TLAC)
Designed at the G20’s request by the Financial Stability Board. It aims to provide an indication of the loss-ab-
sorbing capacity and of the ability to raise additional capital of the systemically important banks (G-SIBs).
Treasury shares
Portion owned by a company in its own share capital. Treasury shares have no voting rights attached and
are not used to calculate profit per share.
TSDI
(Titres
subordonnés à
durée indéteminée
- Undated
subordinated notes)
Undated subordinated notes have no specified maturity date, with redemption being at the behest of the
issuer beyond a certain date.
TSS
(Titres super-
subordonnés
- Deeply
subordinated notes)
Undated subordinated issue giving rise to perpetual returns. Their perpetual maturity arises from the fact that
they do not have a contractual redemption date, with redemption taking place at the option of the issuer.
Should the issuer be liquidated, these notes are redeemed after all the other creditors have been repaid.
U
Undertakings
for collective
investment in
transferable
securities (UCITS)
An UCITS is a portfolio of negotiable securities (equities, bonds, etc.) managed by professionals (management
companies) and held collectively by retail or institutional investors. There are two types of UCITS – SICAVs
(open-ended investment companies) and FCPs (mutual investment funds).
V
VaR
Value at Risk: Synthetic indicator used to track on a day-to-day basis the market risks taken by the Group,
particularly in its trading activities (VaR is calculated using a 99% on 10 days-confidence interval, over one
day, in line with the regulatory internal model). Reflects the largest exposure obtained after eliminating 1% of
the most unfavourable occurrences over a 1-year history.
Volatility
Volatility measures the scope of the fluctuations of the price of an asset and thus its risk. It corresponds to
the standard deviation of the instantaneous profitability of the asset over a certain period.
VSB
Very small businesses.
Chapter 9 – Glossary
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1.1. RISKS
Credit Risk
•
Corporate & financial institutions risk:
Risk arising in the
event of default by a counterparty or counterparties consid-
ered to be a single group of related clients in the major client
scope, excluding the risk of sector and individual concentra-
tion and issuer risk.
•
Sector and individual concentration risk:
Risk arising from
exposure to counterparties considered to be a single group of
related clients, to counterparties operating in the same eco-
nomic sector or in the same geographical region, or from
the granting of loans relating to the same activity, or from
the application of credit risk mitigation techniques, including
collateral issued by the same issuer.
•
Country and sovereign risk:
Credit risk associated with
exposures to countries and sovereigns, including the risk of
concentrated exposures in credit and investment portfolios.
-
Country risk is the risk that the deterioration in the environ-
ment or the economic, financial, political or social situation of
a country may affect the Bank’s activities and the quality of
our counterparties in that country;
-
Sovereign risk measures the losses incurred by CACIB under
its commitments to sovereign counterparties in the event
of their default or due to them being unable to meet their
contractual obligations.
•
Counterparty risk on market transactions:
Risk arising
in the event of the default or the deterioration in the credit
quality of a counterparty or counterparties considered to be
a single group of related clients under financial contracts
(within the meaning of Article L 211.1 of the French Monetary
and Financial Code) entered into with those counterparties.
¡ Securitisation risk: Credit risk arising from securitisation
transactions in which CACIB acts as an investor, originator or
sponsor, including reputational risks such as those arising in
conjunction with complex structures or products
Financial risks
•
Global interest rate risk:
Risk of future loss on the net
interest margin following interest rate stress. This risk reflects
the potential impact of interest rate movements on the interest
rate margin, net banking income and equity capital.
•
Liquidity risk: Liquidity
Risk covers:
-
liquidity price risk: the risk of additional financial costs caused
by a change in refinancing spreads.
-
liquidity availability risk: risk of the funds required in order to
meet commitments not being available.
•
Risk of change in the value of the securities portfolio or
Issuer risk:
Risk of a fall in the value of securities held in the
banking book (excluding equity investments) and recognised
at fair value, where those securities were acquired to generate
a return and/or to manage liquidity reserves.
•
Market risk:
Risk of loss of value of financial instruments
arising from changes to market parameters, the volatility of
these parameters and the correlations between these param-
eters. These parameters include exchange rates, interest
rates, the prices of securities (shares, bonds) and commodi-
ties, derivative products and all other assets, such as property
assets.
•
Foreign exchange risk (banking book):
Risk arising from
structural foreign exchange positions (equity investments), as
operational foreign exchange risk is systematically hedged.
•
Transformation risk:
This risk exists when assets are
financed using resources with differing maturities. As a result
of their traditional business of transforming resources with
short maturities into longer term uses, banks are naturally
affected by transformation risk, which itself entails liquidity risk
and interest rate risk. Transformation is when assets have a
longer maturity than liabilities and anti-transformation is when
assets are financed by resources with a longer maturity.
Operational risks
•
Non-compliance risk:
Risk of judicial, administrative or dis-
ciplinary sanctions, significant financial losses or reputational
damage, arising from non-compliance with laws, regulations or
professional or ethical rules on banking and financial activities,
or instructions from the executive body, in particular pursuant
to the guidelines of the supervisory body. This sub-category
of risk also includes the risk of internal and external fraud and
the risk of misconduct.
•
Legal risk
: Risk of a dispute with a counterparty resulting from
any inaccuracy, deficiency or insufficiency that may be attrib-
utable to the supervised entity in relation to its transactions.
It therefore covers: legislative risk, i.e., breaches of the laws
or regulations that govern the exercise of the Bank’s activities
in any jurisdiction in which it operates and that determine the
legality and validity of its actions and their enforceability by
third parties; contractual risk, i.e., the risk that, as a result of
inaccuracy, deficiency or insufficiency, contractual documen-
tation is not suitable for the transactions carried out, with the
result that it does not fully and clearly reflect intentions.
•
Other operational risks (includeing accounting risk):
In
addition to the sub-category of risks referred to above: the risk
of losses resulting from inadequate or defective processes,
staff and internal systems or external events; operational risks
include risks associated with unlikely but high-impact events,
as well as security risks to information systems and physical
risks
Other Risks
•
Business risks
: Risk covering two specific risks:
-
strategic risk: the risk linked to losses or falls in revenue or
profits due to decisions over strategic choices and/or our
competitive positioning;
-
systemic risk: global risk related to the macroeconomic, poli-
tical and regulatory environment (in particular, the prudential
and tax environment).
•
Climate risk:
Risk covering:
- physical risks resulting from damage directly caused by
meteorological and climatic events (acute risks, as for ins-
tance natural disasters, and chronic risks, associated with
longer-term changes in climate patterns).
-
energy transition risks resulting from the effects of the imple-
mentation of a low-carbon business model (regulatory and
legal, technological, market and reputational risks).
This document is printed using vegetal-based inks, on wood-free
coated, acid-free, biodegradable paper , in accordance with ISO 9706,
manufactured in France, in factories that conform with ISO 14001,
and environmental standards.
C
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www.ca-cib.com
This universal registration document is available on the Crédit Agricole website
(www.ca-cib.com)
and on the
Autorité des Marchés Financiers
website in a French version
(www.amf-france.org).
C