Crédit Agricole bets on Italy: 'External growth opportunities'

Crédit Agricole is aiming for a group net profit of 8.5 billion in 2028, with a return on tangible capital (Rote) of over 14%. These are some of the objectives of the new medium-term plan Act 2028, with which Banque Verte wants 'to be a winning bank, a leader in Europe, a leader in transitions and a leader in new technologies'. The institution emphasises that 'these transformation and acceleration objectives are reflected in the achievement of three strategic goals by 2028: 60 million customers, almost 60% of revenues generated outside France, and a cost/income ratio below 55%'.

Target Italy

For Italy, the group's second domestic market, Agricole sets targets of 6.5 million customers and a 20% contribution to group profits by 2028. To reach these targets it will focus on 'increasing cross-selling, diversifying distribution channels and the offer, strengthening the brand and developing a digital bank for professionals'. All this 'while remaining attentive to external growth opportunities in Italy'.

'We are very attentive to what BancoBpm could offer us in a merger plan and if so we would view it very positively'. This was stated by the CEO of Credit Agricole, Olivier Gavalda, speaking to journalists in Paris. 'At the moment,' he added, 'we are focusing on our organic growth and our ability to develop on our own in Italy'. The French bank is BancoBpm's largest shareholder with a 20% stake: in July, the institution asked the ECB for permission to rise above this threshold with the aim of strengthening its investment but 'without wanting to acquire or exercise control over Banco Bpm'.

Between 2024 and 2028, the group expects revenue growth of more than 3.5% on average per year, with the contribution of "all divisions, in line with the development model based on a balanced and diversified business mix". In Italy, revenues are expected to increase by 1-2% per year with a cost/income ratio below 55%. "The European presence" of Agricole "remains solid and is expected to strengthen further outside France, while the customer mix remains diversified and stable". As for capital strength, Cet 1 is seen at at least 17% for the entire trajectory of the Plan, "enabling the optimised management of Credit Agricole Sa's Cet 1 at around 11%". Growth by external lines 'will continue to be based on strict M&A criteria: a return on investment in excess of 10% within three years, Rote growth, proven integration capabilities, clear cost and revenue synergies and strict alignment with strategy, risk level and regulatory requirements'. Finally, on the shareholder remuneration front, the plan to 2028 envisages a 50% cash payout and the payment of an interim dividend from 2026.