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