Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Do you think the bank has structurally shifted to a materially higher Return on Tangible Equity (ROTE) versus previous plans? A: Jerome Grivet, Deputy CEO, explained that while the bank has achieved a high ROTE of 14% for 2024, the future medium-term plan will be updated by the new CEO, likely in the fourth quarter of this year. The bank aims to maintain a ROTE above 12% for 2025, considering both tailwinds and headwinds. The structural shift will be part of the new medium-term plan, taking into account Basel IV impacts and business breakdown modifications.
Q: What are your plans for using excess capital, and are you considering larger deals or bolt-on acquisitions? A: Jerome Grivet stated that the bank focuses on bolt-on acquisitions rather than transformational ones, as they are easier to integrate and align with current operations. The bank does not pre-decide acquisition targets but looks for opportunities that complement existing business lines and geographical footprints.
Q: Can you provide insights into the current situation in Italy and your strategic position there? A: Jerome Grivet mentioned that Credit Agricole aims to defend its interests in Italy and sees opportunities to leverage its stake. However, the reshaping of the banking landscape in Italy is not solely in their hands. The bank is actively monitoring the situation and is prepared to act in its best interest.
Q: Why is there no interim dividend, and what is your stance on this compared to peers? A: Jerome Grivet explained that the decision on interim dividends is not immediate and does not create additional value. The bank will observe competitors' actions and decide accordingly, but there is no inherent opposition or inclination towards interim dividends.
Q: What is your view on the competition in active fixed income funds compared to equities? A: Jerome Grivet noted that competition is increasing in all asset management categories. The key is to be a low-cost producer, and size can be an advantage if managed well. Amundi and Credit Agricole Assurance focus on maintaining low costs and leveraging their size to remain competitive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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